Tuesday, October 29, 2013

Don't let Divorce lead you to a path of Financial Ruin



Don't let Divorce lead you to a path 
of Financial Ruin

By Keith Bunn Jr.
October 29, 2013


I've said it many times, the number one cause of divorce in this country is because of money issues. And if you have ever gone through a divorce, you know it is one of the most stressful times you can go through. And if we're not careful, we can turn this stressful time into a financial disaster.

In 1998, I went through a painful divorce myself. I felt hurt, ashamed and a failure. On top of that, my then wife had the kids and were living several states away, so I couldn't even see the kids as much as I'd wanted to. So I did what most people do in that situation, I medicated my pain with spending. I spent tons of money on myself to make me feel better, and on my kids to prove to them that I was still thinking about them and that I still loved them.

What to do if this is you

As you read, I didn't do so hot in this category when I was going through my divorce, but there are many things we can do to prevent a huge financial mess during a divorce. 
If you have kids that are old enough to understand what is going on, let them know this isn't their fault and that you're still there for them. 
If your kids are young, again just be there for them. They just want to see & be with you. The point is, with both older and younger kids, you don't have to spend tons of money to prove that you love them. Play games or watch movies you already have with them at home, instead of going out for entertainment every time you get to visit with them. Also, you don't have to go out to eat every time you get them either, cook something simple at home. Again, it is the time you spend with them not how much money you spend on them.
Another thing you need to do, if you're not already doing it, is get on a budget and stick to it! I know how much people hate the "B" word, but if you're not doing one, you can't believe how much it helps you financially. Think of it this way. If you manage your time better, you have more of it. Well the same thing goes for a budget. It causes your money to go further, perhaps further than you thought it would.

Child Support

This is a sensitive subject for most people, but paying or receiving child support can either help or bust a budget. If you are ordered by the courts to pay child support, then PAY IT!! Even if you aren't ordered by the courts, you should still pay some child support. Like it or not, you helped make that child, you need to help support them!
If you are to receive child support, that money is meant for supplementing the income you should already have or soon to get, to help care for your child(en). It is not a free ride! So treat it as such. If you are not receiving child support, but should, you need to start getting it! Make an appointment to get one set up today.
If there is a reason why either parents think that the support is too much or not enough because someone has a job change, or something else changed in their lives, then go through the proper channels to get it reviewed and possibly changed. But be careful! By having your income reviewed, you may not get the results you intended.
The best thing I did when I had to pay child support was to have it directly taken out of my paychecks. I never saw the money so I never missed it. On top of that, I had a paper trail that said I paid my support.
Also, it never hurts to do a full audit on your support record or account at least once a year, whether there is something wrong or not. You never know, the audit may uncover something wrong you didn't know about.

I hope this little bit of insight helps you out. I sure do wish someone told me this stuff when I was going through my divorce.

The reason I do this, is to give people hope and to try to inspire others. To make people think about their finances, whether they are young or old, so they can win financially.
If you have any questions for me about my posts or if you need help learning how to live on less than you make and creating a budget, you can call me at (616) 454-2046 or e-mail me at cavuscoaching@gmail.com. I’d be happy to help! 
You can also find more money news, facts and ideas, on my Facebook and/or Twitter pages. I'd be grateful if you followed me. Thank you!


Monday, October 21, 2013

Credit Cards for Gas Usage



Credit Cards for Gas Usage

By Keith Bunn Jr.
October 21,2013

I was asked a question the other week if using credit cards for gas usage was a good idea or not, if you get the 5 to 10 cents off per gallon and pay them off right away. Well, if you've following me for 30 seconds, you'd know that I absolutely hate credit cards! I think credit cards are nothing more than legalized "Loan Sharking".
But I have to admit, I really didn't have a good answer to the question other than, "I hate credit cards!" So seeing that the person's question was about a specific, local grocery store/gas station credit card, I went and got the application and read it over.

Information Found

After reading over the information on the application, I came to find out that there are 2 different cards. A regular one that is nothing more than an in store credit card that could only be used in the grocery store or gas station. The other one is a Platinum Master Card which can be used anywhere that takes a Master Card
The in store card has an annual percentage rate (APR) of 26.99%, but the application also says, "This APR will vary with the market based on the Prime Rate." 
The Platinum card has 2 different types of accounts, which are based on your "creditworthiness". Type #1 has an APR of 19.99% and type #2 has an APR of 23.99%. And again it says, "This APR will vary with the market based on the Prime Rate."
And just like any other credit card that is out there, there are fees you must pay if you're late making a payment. And for both cards it could either be a $25 to $35 late fee. 
I know what you're thinking, "This is all fine and dandy, but you won't have to pay any interest or fees if you pay it off each and every time it's due, like the question was asked." And you would be right, "IF" people paid the cards off when they were due each and every time. And that's a big word, "IF".

You Have to do the Math

Statistics show us that only 55% of credit card holders pay their cards off each and every month. So that means 45% don't. So by someone thinking, "I'll get the card to save on gas and pay it off right away." doesn't always happen. I know we plan on doing things a certain way, but life sometimes steps in and screws up our plans. Job loss, car breaking down, someone gets sick, a death in the family, etc... can all happen and cause us to lose sight of our goals.
Let me explain it this way... On an average fill up, you'll be saving 75 cents (.05 cents per gallon) when you use either one of the cards talked about above. And if the grand total you had to pay was $40 and you put that on your gas credit card and didn't pay it off at the end of the month, at best, you would have to pay $75 for the same amount of gas that would have cost you $40. At worst, you would have to pay $86. Over double the cost for the same amount of gas. By not paying off that monthly credit card bill just that once, you'll have lost every once of savings you signed up for in the first place.
Now I don't know about you, but I get gas every other week. So if I were to use one of these gas credit cards, bought my gas for the month and forgot to or couldn't pay my bill at the end of the month, I would then have to pay between $121 to $137 for $80 worth of gas. Folks, that's just screwing up once. Imagine doing that month after month. You can see how much that adds up. So again, using credit cards for anything, even just for gas usage in my opinion, is not a good idea.

Something to think about

When any store, company, or institute offers you some kind of rewards program, look it over first before signing up. Do the math if necessary to really see if it is a good deal for you or for them. There are good deals out there if you look for them. They haven't all disappeared yet, even for gas usage.  So look for them and just don't take things at face value.

The reason I do this, is to give people hope and to try to inspire others. To make people think about their finances, whether they are young or old, so they can win financially.
If you have any questions for me about my posts or if you need help learning how to live on less than you make and creating a budget, you can call me at (616) 454-2046 or e-mail me at cavuscoaching@gmail.com. I’d be happy to help! 
You can also find more money news, facts and ideas, on my Facebook and/or Twitter pages. I'd be grateful if you followed me. Thank you!

Monday, October 14, 2013

Trick or Treat, Smell my Feet...



Trick or Treat, Smell my Feet...

By Keith Bunn Jr.
October 14, 2013

Do you remember saying that as a kid? "Trick or Treat, Smell my Feet, Give me something Good to Eat!" Those were good times! Halloween is one of my favorite holidays of the year. I would normally go all out and buy a ton of decorations for both inside and out, but it seems like every year, Halloween gets more and more expensive. And with today's economy, it is estimated that consumers will spend slightly less then they did last year.

Second only to Christmas

But don't worry, Halloween is second only to Christmas in terms of spending on decorations, consumers are still estimated to spend tons of money on this holiday. According to the National Retail Federation (NRF), Americans will spend billions on Halloween this year. In fact, the President and CEO of the NRF, Matthew Shay stated, “(Halloween is) Still one of the most beloved and anticipated consumer holidays, Halloween will be far from a bust this year. After a long summer, the arrival of fall will put millions of Americans in the spirit to partake in traditional and festive activities. Retailers recognize that when it comes to Halloween, consumers’ creativity abounds. We expect retailers to stock their shelves with unique costume ideas for adults, children and pets, a variety of candy options and never-seen-before home and yard decor.”

You Don't have to Lose your Head

Or your cash for that matter, when it comes to Halloween spending this year or the next if you plan ahead. There are tons of great ideas all over the place when it comes to decoration that are not too expensive. The pumpkins, gourds, corn, & corn stalks can be bought this year, but if you save the seeds and dry them out, you can grow your new and unlimited supply next summer. Other decorations can be made out of simple scrap material you may have lying around your home. Years ago, we took some scrap wood and made tombstones.


With some specialty paint and a little time, we had a small cemetery in our front yard. I even took a broken skeleton decoration and stuck it into the ground and made it look like the dead was rising.
As for costumes, you could always make your own. Again, there are tons of ideas all over the place, and with a little imagination you can make your own awesome costumes for both adults and kids alike. So whether you go all out for Halloween or not, there are always cost cutting steps to save some cash and still have a great time on Halloween.

Share your ideas! 

If you have done something on Halloween that saved you some money, please share your ideas. I'd love to see photos and read about them. I'll even post them on my Facebook page to help others save some cash too!

The reason I do this, is to give people hope and to try to inspire others. To make people think about their finances, whether they are young or old, so they can win financially.
If you have any questions for me about my posts or if you need help learning how to live on less than you make and creating a budget, you can call me at (616) 454-2046 or e-mail me at cavuscoaching@gmail.com. I’d be happy to help! 
You can also find more money news, facts and ideas, on my Facebook and/or Twitter pages. I'd be grateful if you followed me. Thank you!

Monday, October 7, 2013

What can Credit Buy you that Cash Can't?



What can Credit Buy you that Cash Can't?

By Keith Bunn Jr.
October 7, 2013

Back in the Day

Before I was doing all this financial coaching stuff, I was never really concerned with what my credit score was. I didn't care what was on it, good or bad. If I tried to get a loan of some kind and it was denied, it was no big deal. I'd just figure out another way of doing what I wanted to do. 
But I have borrowed money plenty of times in my early years. I've had a mortgage, I've had a couple of credit cards, and a couple of car loans. I even financed a 50 foot section of chain link fence, a gate, and gutters on my house from Sears once. So don't think I'm that guy who has never had debt or loans and keeps telling you that credit is bad, never borrow money, because I've been there, and done that.

Credit vs Cash

So it was towards the end of last month I was thinking, what can credit buy you that cash can't? Now you would think that this would be an easy thought process, but it really wasn't. I mean, if you really think about it, when you are talking about material things (cars, homes, toys, etc...) and possibly trips, like vacations. Cash can buy all that, just as well as credit can. Can we always get what you want, when we want it with cash? No, not always. Depending on what we want and how much it cost, it may take awhile to save for it.

So what can Credit Buy that Cash Can't?

After thinking about it for awhile, I came up with four things that credit can buy you that cash can't, and its probably not what you'd ever think of.

1) Credit buys you a FICO score: There is no way to get a FICO (credit) score unless you use credit to get it. When we use cash, that doesn't get reported to the credit bureaus.

2) Credit buys you Instant Gratification: As mentioned above, we can't always get what we want, when we want it when we use cash. Sometimes we have to be patient when using cash. But if you look up the meaning of the root word 'gratify', it means, to afford pleasure to. And it is my belief that if you can afford it without payments, you have no need for credit, but I'll give this one to credit anyway.

3) Credit buys you Risk: When we buy something on credit, we open the door to risk. We have the chance of something greater happening to us that normally wouldn't when we use credit. Example: when you lose your job, how are you going to make the car payments, etc... When you use cash to buy things and you lose your job, you don't have to worry about creditors coming to get your stuff.

4) Credit buys you Stress: Or should I say, more stress. As mentioned above, we have added stress when we are worried about someone coming to take away our stuff when life came along and smacked us. When we use cash, that stress never comes around. Yes, there is some stress when there is a job loss or something like that, but not as much when you know for a fact that your stuff is yours and not someone else's.

Well, those are the things that I came up with that credit can buy you that cash can't. If you can think of some other things, I'd sure love to read them. So let me know what you came up with.

The reason I do this, is to give people hope and to try to inspire others. To make people think about their finances, whether they are young or old, so they can win financially.
If you have any questions for me about my posts or if you need help learning how to live on less than you make and creating a budget, you can call me at (616) 454-2046 or e-mail me at cavuscoaching@gmail.com. I’d be happy to help! 
You can also find more money news, facts and ideas, on my Facebook and/or Twitter pages. I'd be grateful if you followed me. Thank you!