July 5, 2016

http://www.investopedia.com/articles/personal-finance/040915/how-much-cash-should i-keep-bank.asp

Everybody has an opinion on how much money you should tuck away in your bank account. The truth is, it depends on your financial situation. What you need to keep in the bank is the money for your regular bills, your discretionary spending and the portion of your savings that constitutes your emergency fund. Knowing how much you should keep in the bank depends on one crucial word: budget. The author outlines two techniques: the 50/30/20 rule and Dave Ramsey’s strategy. The 50/30/20 comprises 50% for fixed costs, 30% for discretionary money, and 20% for financial goals. 50% of your money should be for costs such as rent, water, electricity, car payment, internet etc. 30% of your money is for spending on wants vs needs. 30% can be spent on entertainment or food. 20% of your money should be for the future either as setting up an emergency fund or saving for an IRA, a 529 plan, or other investments. Dave Ramsey recommends this strategy based off of what you receive via paycheck: charitable giving – 10-15%, food 5-15%, savings 10-15%, clothing 2-7%, housing 25-35%, transportation 10-15%, utilities 5-10%, and medical/health 5-10%. Beyond your monthly living expenses and discretionary money, the major portion of the cash reserves in your bank account should consist of your emergency fund. Regardless of much you set aside, you want to make sure your money is instantly accessible so you can use it right away. Personally I have two savings account, one that is directly connected with my checking account, and the other is at a different bank earning a higher rate of interest. From time to time, I will transfer from the localized savings to earn the higher interest rate, however I make sure I have enough in case I need it. It is important to bring order to your finances as soon as possible so you can get into the habit of saving and building an emergency fund. If you are interested in learning the process I do then go to the contact me section. The most recent Federal Reserve data from the “Report on the Economic Well-Being of U.S. Households in 2015” surveyed Americans and mentioned that “[f]orty-six percent of adults say they either could not cover an emergency expense costing $400, or would cover it by selling something or borrowing money.”


A cartoon reproduced on Firstclassflyer.com shows a pilot in the cockpit making his welcome-aboard announcement to the passengers: “The flight time today is five hours in first class and 12½ hours in coach.” Although that may not be literally true, ask passengers who sit “up front,” and you will often hear them remark on how fast the flight seemed to go and how comfortable they were. Here are five points comparing business and first class: the waiting game, boarding privileges, getting comfortable, food and drink and attention paid. Many airlines are boarding first and business class together, however on a few first class flights, the passenger will literally be escorted from the arriving terminal to the lounge, and from the lounge to the departing terminal. When you’re considering the getting comfortable option, it’s important to know the type of plane you are flying on and if the seat will turn into a bed. Depending on what airline you fly, it’s best to call ahead and ask about those kind of options especially if you’re flying overseas. Food and drink is where business and first class differs the most. On first class you often have food prepared under the auspices of a famous chef – Air France, rated No.1 for in-flight food by the Robb Report – offers menus designed by Michelin-starred chefs. For a year, starting in March 2016, select U.S. to Paris flights will feature entrées from Daniel Boulud. Finally, in attention paid, a passenger in first class will have service which is much more proactive instead of reactive. The major differences between first class and business class are the seats and the service but the actual differences greatly depend on airlines, routes and airplane models. Still, according to USA Today, first class always supersedes business class on international flights.


Robocalls—those pre-recorded, unwanted phone calls—are at a record high. Over 10 billion calls have been made in the US at the time of this article. These robocalls can both be aggressive and friendly. These calls have been occurring even on our smart phones. These calls are happening as a result of technology having access to lists and lists of phone numbers that are placed into a computer program and are then sent through the Internet in literally seconds. The purpose of these calls is to allow identity thieves to gain access to your personal information. One way you can fight back is through the FTC’s do not call list – donotcall.gov. Another way to fight back is if you don’t know the number than simply hang up and don’t answer the phone. You can also use a call blocking app called Hiya which can add the number to a block list. The best service is called nomorobo. This service is available on LAN lines, and will soon be available for iPhone and Android phones. It sees when a lot of phone numbers are being sent out or spoofing and then it hangs them up or notifies the person to not pick up. We live in an age where criminals will use technology in order to gain access to your identity, and in response we should use technology to our advantage to fight back. However, If you don’t have identity theft protection, I recommend you get a plan in place just in case. You can find out more about an identity theft protection plan by reaching me at the contact me section. “A good name is more desirable than great riches; to be esteemed is better than silver or gold.” (Proverbs 22:1 NIV).

If you need agreement in prayer, or if you’re in need of a financial checkup you can reach me in the contact me section.

“But those who want the best for me, Let them have the last word—a glad shout!— and say, over and over and over, ” GOD is great—everything works together for good for his servant.” I’ll tell the world how great and good you are, I’ll shout Hallelujah all day, every day.”

Psalm 35:27-28 MSG


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