Guest Blog: 5 Simple Steps to Saving Money and Getting Financially Healthy

We all want financial health but achieving it can sometimes be daunting to get started. But, pushing yourself to move forward with a plan can pay off big. There are many things you can do, but keeping it simple can help jump start the process and give you some definite objectives that are both reachable and easy to put in motion. Because financial health has such a positive impact on our daily lives taking the steps towards your goals should be a very important priority. 

To help, here are five easy steps to get you going: 

Begin with a Budget
Budgets get you thinking about your money and help you take control of spending. First, identify how you’re spending your money now. You might be surprised to see that morning cup of coffee is costing you over a $1,000 a year when it would cost pennies to make it at home. Second, decide what you could live just fine without, and what is necessary like your mortgage payment and groceries. Use available websites or apps to help. Set a goal to spend no more than 80-90% of your total income with 10-20% left to save. 

Pay Off Credit-Card Debts
Tackling your credit-card bills can be daunting, but it’s necessary for financial health. Begin by making a list of your credit cards as an extension of your budgeting process above. Then, set a plan to pay off the one with the highest interest rate first, regardless of the amount owed on the card. Once done, move onto the second card and so on, but continue making at least the minimum payment on the other cards as well. If you are able, try to transfer balances from high interest rate cards to lower rated ones.

You should also be checking your credit report at least once a year and checking for any inaccuracies, identity theft, etc. Under the Fair Credit Reporting Act, you are entitled to a free credit report every year at annualcreditreport.com. If there are inaccurate items on your credit report, you can use our Free Credit Report Dispute Kit to make sure you get them items corrected and protect your rights.

Build Your Emergency Savings Fund
Because you never know what the future holds, it is important to build a financial cushion or emergency savings fund in cased you lose your income or have an unforeseen expenditure. Credit cards should not be the fall-back since using them for life expenses can end up costing you much more in the long run. Begin by saving 5 – 10% of your income until you have at least 3 – 6 months’ worth of basic living expenses set aside. A low impact way to get there is by saving a tax refund, a bonus, or the difference in income from a recent raise.

Target Your Savings 
A great way to help you save is to take the thinking about it out of it. Have a portion of your paycheck direct deposited into your savings account each pay period. You are less likely to spend it if you never see it in your regular account. Instead of having your entire paycheck deposited to your checking account, have 5-10% put directly into your savings account.

Save for Retirement
It is never too early to start saving for retirement and permanent financial health. If you have access to a 401K plan with a company match, it’s an easy choice to participate and make sure you are getting the full benefit. Start by setting aside 3% of your salary to the 401K. This deduction is pre-tax so you will hardly notice, plus, it will reduce the amount of taxable income you are bringing home. Increase your savings by just one percentage point a year until you get to 10% and you’ll hardly feel a pinch. It’s also good to start saving your emergency fund before your retirement fund because if you get stuck and need to use some of the money, you will be taxed on the withdrawals and may even be hit with penalties. If you’re self-employed or your company does not provide retirement benefits, opt for an individual retirement account (IRA). For specific advise on your particular financial situation, you should consult with a reputable financial planning professional to help you make the most of your money.

Start moving towards financial health using these steps and an overall savings plan that works for you. As with any positive step forward, soon you will begin to feel the benefits and greater peace of mind. 

Culik Law is a Massachusetts Attorney / Law Firm. The post is not intended as legal advice.

Culik Law is a BBB Accredited Business located in Woburn, MA. They have been Accredited since 2010.

Good Business Practices – Your Personal Commitment and Background

Here are a couple insights into the personal aspects of getting ready to get financing.

-If you are asking an investor or bank to risk money on your business, you will need to show that you (and your partners, if any) have a deep commitment to your business. Typically you will be asked to show a personal investment of about 25% of the total amount needed for a particular loan purpose.

-For small businesses, especially new ones, the collateral may need to be personal assets of some kind, such as a home, other valuable property or a co-signature. It is important that you and your family members understand the risk and benefits of offering up personal property as collateral.

-Talk with your family members about the effort necessary to make your business a success and be sure that you can count on them to help you along the way. Running a small business can be exhausting, require long hours, and result in a lower standard of living for the owner in the growth years, lack of family support could seriously hurt a start-up business.

Have you ever been affected by financing in the past?

Important Tips for Businesses Regarding Checks

A BBB-accredited ad agency in San Antonio, TX recently discovered that bogus checks claiming to be from their company were being used in an over payment/money wiring scam. The checks looked very professional, with the company name and actual routing and account numbers.

People who answered work-at-home want ads on Craigslist were caught up in the scheme. One woman was asked to send out fake checks on behalf of the scammers and was paid by Western Union. When she noticed the Western Union payment was in someone else’s name, she called the real ad agency and asked, “Am I working for you?” The answer was “no.”

She had already sent out 200 bogus checks.

According to the ad agency, the scammers somehow intercepted a check that was sent to a client. They knew something was wrong when someone tried to cash it in another state. Scammers “washed” the check and used it as a template for numerous fake checks in the ad agency’s name.

Which brings up some important tips for businesses regarding checks:

• Monitor your accounts payable. Stop payment on the check and send out another one if too much time goes by and the check appears to be “lost.”
• Use tamper resistant checks. Checks with security features make it harder for crooks who may intercept them to counterfeit or alter them.
• Keep track of check orders. Notify your check supplier and bank if you order checks that don’t arrive in a reasonable amount of time.
• Keep checks secured. Keep reserve supplies of checks, deposit slips and other banking documents locked up and limit the number of people who can access them. 
• Keep your eye on the ball. Don’t leave checks or other bank records unattended while you serve customers. Someone might take them while you aren’t looking.

Is a Smartphone Credit Card Processor Right for Your Business?

These days, no matter how large or small the business, employees don’t even need to be near their store’s credit card processor to make a credit transaction with their customer. Using smartphone credit card readers, businesses have the capability of taking their sales to the next level, but Better Business Bureau is advising business owners to make sure that such a system is right for their business.


For businesses looking to add the credit card reader capability to their sales, BBB recommends the following tips:

Do your research. Just like a landline-based credit card system, you’ll need a merchant account to process payments, a scanner device to read the card, and software (app) to make it run. Don’t skimp on research. Start with your bank or your credit card service for suggestions on recommended services and devices. Check out all vendors at www.bbb.org. Ask for references.

Choose the right combination. Your smartphone merchant account might interface with your existing landline-based account, and that will make life easier. Build from there; find the app you feel comfortable using that has the features you want. There are over a hundred apps available for different smartphones; each is usually compatible with a number of different swiping devices. The reader itself is the last step (and the easiest to replace or exchange).

Read the fine print. Using a smartphone credit card reader might be a great 
way to increase your sales while on the road. However, make sure to read the fine print for the smartphone app to make sure that you won’t be charged while you’re not using it.

Offer the customer service your shoppers expect.Some shoppers may not be familiar with this kind of payment method. Be sure to offer them the option of having a receipt emailed to them, or even offer to print the receipt there with a separate smartphone printer. This will reduce the hassle should your customer want to return the product.

Beware of scams! As with any emerging technology, scammers are figuring out how to exploit vulnerabilities. Don’t buy the devices or apps from vendors you don’t know.

How to Manage Your Business' Credit Wisely

Whether you’re in the beginning stages of starting up your own business or looking to manage your current business’ credit more efficiently, it’s always important to stay on top of your finances. As your business starts to grow, it’s important to build a good credit record for your business that is separate from your personal credit record.

BBB recommends following these simple steps to manage your business’ credit:

Establish a consistent identity. Always use the same business name, address and phone number from the beginning, so it will be easy for the credit reporting agencies to keep your records in one file. Consider incorporating to legally establish a business identity that is separate from your personal identity.

Open your first accounts. Get a separate checking account for your business. Also open an account with an office supply firm or other supplier that reports the transactions to business credit reporting agencies. Make small charges and pay them immediately — before the invoice even arrives (unlike personal credit scores, you’ll get extra credit for paying before the due date).

Provide key documentation. Lenders will generally ask for your business’ tax records and earnings statements for the past few years so they can see how much you have earned in the past. And they may also ask for a business plan so they can assess your potential for future earnings. They are often interested in looking at your cash flow in relation to expenses and your total debt in relation to your earnings. Provide all of this documentation along with explanations to present the strongest case, especially if you have irregular earnings throughout the year, to prove to lenders that you expect to earn enough money to pay your bills in the future.

Apply for a DUNS number from Dun & Bradstreet, one of the major business credit reporting agencies (go to www.dnb.com). It usually takes 30 days to establish a DUNS number, or you can pay extra for an expedited account. Then make sure that the companies where you have trade accounts are reporting the information about your on-time payments to Dun & Bradstreet. It’s also a good idea to provide extra information about your business for your credit file. This is where potential lenders and others will find out about your business and the likelihood that you’ll make on-time payments for your loans, equipment leases and office leases, which will affect the terms and rates. After you have a DUNS number, open a few more trade accounts with other companies that send information to the credit-reporting agencies, make small charges, and pay those bills early, too. Check your account for errors and to make sure you’re getting credit for your early payments.

Check your business’ credit score. Similar to a credit score for individuals, a PAYDEX score distills the information in your Dun & Bradstreet credit report into one number, which shows potential lenders the likelihood that you’ll make your payments on time. These scores range from a low of 0 to a high of 100. A score of 80 to 100 generally means that you pay your bills before the due date; 50 to 79 means a medium risk of late payment (averages 30 days or less beyond the loan’s terms); and a score of 0 to 49 means a high risk of late payment.