One of the keys to a healthy body is a healthy diet. Most Americans are familiar with the food pyramid. This chart breaks down the different food groups as well as the suggested daily consumption levels in a concise graphic. At the bottom of the food pyramid you have grains, then a layer of vegetables and fruits, then meat and dairy products and at the very top fats, oils, and sweets. It seems the tastier the food the higher its position on the pyramid. By each level of the food pyramid there is a “suggested” serving amount that decreases as you reach the top. Each food group by itself is not a healthy diet. Only by skillfully combining each group with the proper consumption suggested levels do you obtain a healthy balanced diet.

A healthy investments portfolio can also be viewed in much that same principle as the food pyramid. The key to a healthy investment portfolio is a healthy balanced asset allocation. Similar to the food pyramid, it is important to have a balanced mix of investments that is tailored to meet your individual objectives. Your blend of asset classes should be judged on your own personal goals, time horizons and risk tolerance. ‘One size does not fit all.’

The same is true with your investments. It is important to base your allocation on your own situation and personal goals and not on what you hear in the news, from friends, or from colleagues. Foods that we love aren’t always good for us and maintaining a healthy diet often takes work, but the pay off may lead to a longer healthier life. In times of volatility, investment portfolios can become skewed from the original allocation. To help maintain a healthy portfolio, it is important to work with your Financial Advisor to help ensure your allocation and financial strategies continue to keep you on the path of financial health.

There’s a big myth among college students that they don’t need to be aware of their credit history until after they graduate. Even if a student has never taken out cash advances, a credit card, or even a loan, it’s still an important practice to get a credit report drawn each year. The reason for that is simple. The very reason they think they don’t need it is why their identities are coveted by identity thieves. They basically have a clean credit report and thieves know they aren’t paying much attention to what’s going on in their credit history.

It Can Happen Close to Home

The other reason is that college students are very vulnerable to identity theft from relatives and people in their immediate family. Anyone who has access to their personal information can take out a credit card in their name and use it fraudulently for personal purchases. It might even be a credit card that lands on their credit history, it can be the phone or utility bill that somehow is now in their name. If these bills go unpaid, their credit score drops like a rock. Without monitoring their credit, it may not be noticeable until years later when they try to buy a car or a home and the incident pops up.

Protect Your Credit Score

The best way to protect yourself from identity theft is to by identity theft protection. These services are very inexpensive and can help you maintain a good credit profile without much supervision. In addition, you can also get free credit reports from the three major credit bureaus annually. That will help a student to keep them focused on their studies, while the service keeps track of their credit history. Should something suspicious happen, the student is alerted right away and this can help them save their credit history for when they really need it later.

A budget serves as a road map for your spending, helping you find ways to save more money for your financial goals.

Inefficient and wasted expenditures can be major impediments to accomplishing your financial goals. For a one-month period, keep track of every dollar you spend, whether by cash, check, or credit card. You’ll likely be surprised at how small expenditures add up over a month.
To make sure you get the maximum benefit from the budgeting process, keep these points in mind:

Use spending categories that make sense for your spending patterns. If there are areas with good potential for spending reductions, even if the amounts are relatively small, set them up in their own categories.

Set up enough categories to give you a good feel for your spending patterns, but not so many that

it becomes difficult and time-consuming to monitor your progress.

Include non-recurring items in your budget, such as gifts, tuition, insurance premiums, property taxes, etc.

Periodically compare your actual expenditures to your budgeted expenditures to find out where you are having problems.

Allow everyone in the family to have some cash that can be spent without accounting for it, but don’t make the amount so large that it detracts from your savings efforts.

Include savings in your budget and make sure you actually save that amount every month.
While at times a budget may not seem worth the effort, remember that it is a tool to help you accomplish your financial goals. Remain committed and stick with it.

If married couples can’t agree on basic money issues, they can become a constant source of conflict. To help avoid money conflicts, consider these tips:

Discuss your views on a wide range of money issues, paying particular attention to potential sources of conflict. Make sure you understand each other’s views about earning, spending, saving, investing, and borrowing. Does one of you like to save money, while the other prefers to spend it? Does one feel comfortable with high debt levels, while the other can’t stand the thought of paying interest? Different money issues will be more important at one stage of your marriage than at another. Thus, you may find you have no money disagreements for years, only to be faced with an issue you can’t agree on.

Set basic monetary goals and develop a written budget. Especially if you are having conflicts over money, it can be helpful to step back and really think about what you are trying to accomplish. Where do you want to be in 10, 20, or 30 years? What are your most important goals in life and how can you accomplish them?

The process of defining goals and setting a budget can help resolve differing views about money matters, forcing couples to compromise and make joint decisions about how money will be spent. While that might seem like a painful process, addressing these issues now can help prevent future misunderstandings. It is often easier to discuss spending preferences on a theoretical basis than it is to argue about an actual purchase.

Decide on joint or separate bank accounts. Some couples prefer to pool all funds, while others feel uncomfortable losing control of their money. For couples with vastly different spending styles, separate accounts may reduce tension. A joint account can be used for shared expenses, with each spouse contributing a designated amount to the account. Any remaining funds are kept in individual accounts, for each spouse to spend as he/she desires.

Develop credit in each spouse’s name. Each spouse should have separate credit cards to develop his/her own credit file. This can be especially important if one spouse dies or the couple divorces.

Split financial responsibilities. Decide who will handle financial tasks, such as paying bills, preparing tax returns, making investment decisions, etc. One person may be more suited for these tasks due to their background or time availability. However, the other spouse should not give up total control.

Discuss financial matters periodically. Set up a formal time, perhaps monthly, to go over financial matters. This keeps both spouses fully informed and provides a designated time to discuss spending or items of concern. You then won’t fret about how to bring up financial topics or let finances interfere during other times.

Money can be a source of continuing conflict or a means to help achieve your financial goals.

Two of the most common questions we hear are “What is the stock market going to do?” and “What is going to happen to interest rates?” The answer to both questions is, “They will go up, down, stay the same, or all three.” Each day we read differing opinions on what is going to happen in the near future from the “experts” who are paid to know.

No one can predict the future direction of the stock market or interest rates with total accuracy. There are just too many variables affecting them.

Should investors give up attempting to invest their money intelligently? No! There are many ways to help you reduce the effects of market variations and the associated risks over the long term. By diversifying portfolios and carefully acquiring and holding assets, the risks can be reduced.

The most common reason for not achieving financial goals is not the ups and downs of the market and interest rates. Instead, it is a combination of inertia, fear, and inconsistency that allows investors to lose sight of long-term goals and the means to help them reach them. Fast Financial Analysis can help you create a strategy to help you clearly define your financial goals as well as create a financial plan that will help you achieve these goals.

We are back! We took a vacation the last couple months so this is our first blog in a while. We took time out to visit friends and family in Texas, Missouri and Washington as well as had a few visitors from Denver, Atlanta and a few other places. Vacations are a great time to reconnect with what is really important in life and reduce our stress levels. They are needed but can be very expensive. As usual, I have a few tips to get the vacations that you want without going broke in the process. First, plan ahead. Plane tickets are always much cheaper farther in advance so book early. You can sometimes find last minute deals but you can never really count on them appearing. Second, not all vacations need to be in a Five Star hotel on a tropical Island. Staying with family and friends and friends can not only be much less expensive but can also provide a much-needed chance to catch-up. Unfortunately, most of us have hundreds of friends that we rarely see. Finally, when you really want to get away and you don’t have family or friends where you plan to go, research your accommodations thoroughly. Most people don’t know that you can rent an apartment or condo for less than a hotel room and save money on restaurants. You can also buy or rent timeshares on the resale market for a fraction of what the developers are selling them for. A website that I recommend is The Timeshare Users Group (http://www.tug2.net/) to learn more about this resale market. For other advice and help with budgeting for your vacation go to http://www.FastFinancialAnalysis.com/.

This week I want to switch gears to discuss something that I’ve been learning a lot about these last few years, starting a business. Starting your own business is a lot of hard work but can lead to greater financial and personal freedom. You should not expect to get rich overnight (if at all) but if done properly, starting a business can eventually give you much more control over your future. I also feel that this is the most visible way that most people will ever see their tax dollars at work because when you first start a business you need a lot of help from the government. Yes, taxes can help the economy. I find that the federal, state and local governments are the only organizations with a real interest in helping people start successful businesses since they directly benefit from the tax revenues. For most people, you need 3 things to start a business: a business plan, access to capital, and insurance.

I find that the first thing you need to do to build a business is to develop a business plan. This is a document, which clearly defines what you are going to do, how you are going to market your company, how much money you plan to spend and what the expected return on investment will be. The more detailed a business plan the better. You need to be realistic and conservative in your estimates. The best place to go for help in writing a business plan is a small business development center. There is one located in almost every city in almost every state. Many of these are affiliated with universities and do not charge for their services because these centers are normally supported by your tax dollars.

Access to money can occur in one of three ways, all of which require you to have a business plan: Angel Investors, Venture Capitalists and Small Business Loans. If you do not have a lot of very rich friends or an incredibly innovative idea forget about financing your company with Angel Investors. Venture Capitalists also only tend to invest in cutting edge technologies and they don’t so much want to invest in your company as they want to buy it. Working with a Venture Capitalist is more like working for them since they can fire you if your company is not producing enough profit and they always have an exit strategy (sell or take the company public in a few years). For most people, Small Business Loans are the best way to get started. These loans are backed by the government because if your business fails, there may not be anything for the bank to collect.

The last thing that you need to start your business is insurance (health, life and property). This is the most overlooked but important thing to any small business owner. As a full-time employee of a medium or large company, you can expect your employer to either provide health and life insurance or a means to purchase it. As an individual who is self-employed and starting a new business with no full-time employees, you are on your own. If you have a pre-existing condition such as cancer or kidney disease, you may not be able to purchase an individual policy. Insurance companies are much tougher on insuring individuals than groups, especially if they have a less than perfect health record. Ironically insurance is more important for people who are self-employed because if anything happens to them, their families may be hit with a one-two punch of medical bills and a failing business.

Currently there is no government help for people who are self-employed and uninsured. Hopefully this will change if and when the Obama health-care plan is approved. Until then remember that everything starts with a good financial plan. Go to http://www.FastFinancialAnalysis.com and get yours free today.

According to the Chronicle of Higher Education, college savings and investing in prepaid college plans have increased even as our economy got worse. I see this as proof of the value that many people put in their children’s education. As an educator, I applaud those who sacrificed to continue saving for college. Much of our country’s future depends on this. After all, we wouldn’t have a President Barack Obama if his parents didn’t know the value of an education.

Many people don’t know about the financial difficulties that our colleges and universities are experiencing. Private universities are losing money from their endowments through investment losses. Public universities are losing money from state support. This money was used to lower the cost of student education. As a result of these loses, many of these schools are being forced to raise tuition. The good news is that if you are using a pre-paid tuition plan, these increases in tuition may not affect you.

If you are not already enrolled in a pre-paid tuition plan for your children, I suggest you start. Even if your child chooses not to go to college in your state (or goes to a private school), there are still many advantages to these programs. For help in getting started, develop a budget at http://www.FastFinancialAnalysis.com and start researching pre-paid tuition plans in your state.

On March 9^th, the Dow (as well as all the other economic indicators) seemed to hit rock bottom. We had dropped from a high of around 14,000 to a low of just over 6500 in about a year and a half. We hit what may be the bottom and bounced. Over the next month, the market seemed to surge, gaining about 1500 points. Things were looking good for the first time in months. Now things are leveling off and we all want to know “when will this rollercoaster ride end?”

I can’t tell the future but I do know that we have to plan for the uncertainties that it may bring. The last year (including my own experience with Hurricane Ike), has really made me appreciate the value of an emergency fund. If you don’t have one, you should start saving for one today. If you don’t know how or don’t have a financial plan, we can help you develop one for free. http://www.FastFinancialAnalysis.com for free online financial planning.

I Am not writing as a expert but as a high school graduate, who worked any job I could find for 15 years, wife for 42 years, mother for 39 years and after working 27 years as a licensed practical nurse. My story is like many others just common sense approach to handling money, life and everything else that get thrown our way.

I graduated from high school in 1957 with high hope of getting a job and earning money to take care of myself and help my struggling parents. I had hopes of getting a small apartment that I could afford. When I finally landed a job as a usherette in a large movie theater, earning 75 cents per hour with take home after taxes and working 6 days per week of $37.00 per week I was on my way. I lived with family who did not charge me rent. I attended night school to learn office skills.

I got a better paying job making $1.00 an hour this time, this lasted several months when I was laid off I had not yet learned to save for my future. This was my first set back, I found myself out of work and out of money. I was blessed to have a wonderful family support system so I still had a home. I received $25.00 per week unemployment compensation and took care of my niece and nephews (4 children) for room and board. It was during this time that I did a complete inventory of what I had earned and where had it gone. I started a journal (small spiral note book) that I took everywhere I went and made entries of everything that I purchased and the cost down to the last penny. If I ever was in that situation again at least I would know where my money was spent. I learned how to save even with only $25.00 per week.

When I finally found a job that paid $265.00 per month I was the happiest person in the world. I immediately started to save money a little at a time. I purchased a $25.00 savings bond, cost of bond $18.75, once a month and saved $10.00 out of each paycheck which came twice monthly. I did finally get the little apartment for $65.00 per month.

Over the years 69 in all, I have learned a lot about many things most of them self taught. I am not an expert in anything but find myself researching everything that I get interested in doing. No mater what I need, I have learned to do research before I make a final decision to buy. We have the computer now it was a little more work back then we only had books and the knowledge of other people. I have had and accepted good advice from any one who was willing to share information with me. At 60, I taught myself to use the computer the same way I taught myself to save. I used information from family and friends to assist me in that adventure.

We raised our three children on one whole salary and my part time salary our high year of earning was around $60,000. We took our children on vacations at least once every year sometimes more. We found ways to save and still have a good time. Some of our vacations were Disney world, Disney Land, Hawaii twice, Canada, and many more. Some times flying and some of our trips were driving. Except for one vacation we always stayed at good hotels. One hotel was so awful my daughter wrote about it in one of her school essays. We had not planned ahead and when the hard rain came we had to take what was available for the night.

We helped to send our children to Universities and managed to buy and pay for two houses. We saved for cars and and buy some new and some resale. We retired early and live on our retirement and social security incomes. We have been blessed not to have to use our savings. We shop for bargains any where they can be found including thrift stores and yard sales.

I believe in saving and living within the income that we receive. I believe that credit cards should only be used to purchase what we needs and to pay it off every month. We buy good quality merchandise that will last but to buy after shopping around. We do not sacrafice comfort, good food, or things that we need. I believe that if we can do this anyone can it takes time, planning and patience. I had love of family, accepted advice from where ever it came and I have been blessed.