A second job can bring much-needed money into the household to help get out of debt, pay off specific bills, or even save up for large purchases or vacations that are important to you. Before you dive in with dreams of a financial Easy Street ahead, there are a few considerations to keep in mind. Making More Money vs. Spending Less The big question is, can you do more good for the household budget by spending less money rather than taking on that second job, hoping to make more? How much extra money do you need to make each month to ease your budget concerns and solve the bulk of your financial problems? Alternatively, can you find a way to cut $200 per month in spending? $400? Start simple with your afternoon coffee run, explore your mobile phone plan, and consider nixing Netflix and borrowing DVDs from your local library instead. You will be surprised by how quickly your savings can add up. Even cutting out one meal out each week for a family of four can make a world of difference to your household budget. Consider the Added Costs of a Second Job Don’t forget to take into account important things like the added costs involved in taking that second job. Things like child care expenditures, added vehicle expenses, the potential interference with your current job, impact on your health and health expenses, and the costs of convenience meals and food because you do not have time or energy to cook all need to be factored into the equation. There are also costs that don’t show on a spreadsheet. These are things like the costs of time lost with friends and family, the costs of the drudgery of working two jobs, and the cost of quality of life when you sacrifice sleep and entertainment because you are too busy working to enjoy the fruits of your labor. Other Pros and Cons While the promise of a second income certainly sounds attractive, it is an excellent idea to consider the pros and cons below before making your final decision. Pros of a Second Job These are just a few of the benefits you might enjoy when you take on a second job. They are not inconsequential in the least. Considerations for a Second Job However, there are some things you must consider before making a weighty decision like this that can take time away from your family, like those listed below. Depending on how great your financial need is or how crucial your goals may be, you might find that you need to cut costs rather than make more money. One good option might be to work with a financial planner to help get your budget under control and look for ways to cuts costs while getting more mileage from the money coming into the household budget. In the end, deciding whether or not to get a second job is a decision that only you (and your family) can make after considering the pros and cons, alternatives to cut expenses and finding other ways to make ends meet.

Should You Get a Second Job?

View Resource Should You Get a Second Job?
You’ve resolved to pay off your debt. The bad news? You have loads of debt to tackle. The sheer number of your creditors is overwhelming. You owe thousands of dollars to multiple credit card providers. You have unpaid medical bills. Also, the utility company is wondering where your last payment was. The good news? There are several strategies you can take to reduce your debt. The key to finding the right one? It is all about looking at your personal habits and your financial situation. The snowball method The snowball debt repayment method works well for those consumers who want to see quick results. It also helps those that are so overwhelmed by the sheer number of their creditors that they need to reduce that number as quickly as possible. In the snowball method, you’ll pay off your creditors one at a time, paying off the creditor that you owe the least to first. For instance, if you have five credit cards that are accumulating debt, you’d pay off the card on which you only owe $250. Once that debt is paid off, you move on to the creditor to which you owe the next greatest amount of money. The benefit of this method is simple: It provides quick satisfaction. You will feel a sense of accomplishment every time you tick a creditor off your list. The snowball method also helps you gain more control over your debt quickly by reducing the number of creditors about which you have to worry. The drawback here is that you will spend more money in the long-term tackling your debt. That is something that the next debt-payback method addresses. The avalanche method Under the avalanche method, you again tick off your creditors one by one. However, instead of initially targeting those creditors to whom you owe the least, you target the creditors that are charging you the highest interest rate. If you’ve maxed out three credit cards, pay off the one that comes with the highest interest rate first. The reason? You’ll save a significant amount of interest by paying down your high-interest-rate cards first. On the downside, this method will not produce positive results as quickly as the snowball method. However, you will reduce the debt that is costing you the most money first. Over the long-term, you’ll save money by embracing this approach to paying your debts. Making additional payments You can reduce the amount of time it takes to pay off debt by making additional payments, too. The best news? You can make these extra payments according to your schedule. This is an excellent option for consumers who regularly receive bonuses or commission checks. When these consumers acquire a bit of extra money, they might be able to make an additional payment to their credit card, mortgage loan or auto loan company. For instance, consider if you owe $2,500 on a credit card and have an interest rate of 18 percent and only pay the minimum payment each month of $62.50. It would take you 62 months to pay off your debt. During this time, you will have paid a whopping $1,346 in interest. However, if you had that same debt with the same interest rate and you instead pay $150 a month, it would take you 20 months to pay off your debt. You would pay $398 in interest during this time. What works for you These are just some of the several debt-reduction strategies that you can use to pay back your creditors. Before relying on one of these strategies, though, make sure to take a honest look at your household finances. Before beginning any debt-repayment plan, you’ll need to determine exactly how much you can afford to pay each month to reduce your debt. You can only do this if you first determine how much of your monthly income your total monthly debt obligations consume.

Debt Payoff Strategies

View Resource Debt Payoff Strategies
Companies of all sizes are being targeted by criminals through business email compromise scams. In these scams, cybercriminals gain access to an employee’s legitimate business email through social engineering or computer intrusion. The criminal then impersonates the employee, often a senior executive or someone who can authorize payments, and instructs others to transfer funds on their behalf. First Federal Lakewood recommends the following tips to help businesses and employees avoid business email compromise attacks: • Educate your employees. You and your employees are the first line of defense against business email compromise. A strong security program paired with employee education about the warning signs, safe practices, and responses to a suspected takeover are essential to protecting your company and customers. • Protect your online environment. It is important to protect your cyber environment just as you would your cash and physical location. Do not use unprotected internet connections. Encrypt sensitive data and keep updated virus protections on your computer. Use complex passwords and change them periodically. • Use alternative communication channels to verify significant requests. Have multiple methods outside of email – such as phone numbers, alternate email addresses – established in advance through which you can contact the person making the request to ensure it is valid. • Be wary of sudden changes in business practices or contacts. If an employee, customer or vendor suddenly asks to be contacted via their personal e-mail address, verify the request through known, official and previously used correspondence as the request could be fraudulent. • Be wary of requests marked “urgent” or “confidential. Fraudsters will often instill a sense of urgency, fear or secrecy to compel the employee to facilitate the request without consulting others. Use an alternative communication channel outside of email to confirm the request. • Partner with your bank to prevent unauthorized transactions. Talk to your banker about programs that safeguard you from unauthorized transactions such as call backs, device authentication and multi-person approval processes. For more tips, see the FBI’s Internet Crime Complaint Center’s public service announcement. If you fall victim to a business email compromise scam: • Contact your financial institution immediately to notify them about the fraudulent transfer and request that they contact the institution where the fraudulent transfer was sent. • Contact your local Federal Bureau of Investigation office as they might be able to freeze or return the funds, if notified quickly. • File a complaint, regardless of dollar loss, at www.IC3.gov.

6 Ways to Protect Your Business from Business Email Compromise Scams

View Resource 6 Ways to Protect Your Business from Business Email Compromise Scams
Couldn’t we all use a little more storage space? Lifestyle trends indicate that more people are gravitating towards smaller spaces than ever before. An increasing number of empty-nesters, first-time homebuyers, and people downsizing in a slow economy mean smaller spaces are here to stay. Let’s look at a few easy ways to maximize the space you have, in every room. Everything in its right place It may sound easy, but how many of your kitchen utensils or bath products are really in the exact place they were when you first organized them? Taking a little extra time to store household items consistently makes them easier to find and frees up extra space. Need it often? Move it forward Arrange items so the most frequently used are at the front of your shelves or cabinets. You’ll save time and avoid the hassle of digging to the back when you need them. Sliding shelves for cabinet convenience Cabinets are a lot more user friendly when they include sliding shelves. You won’t have to struggle to reach the back of the cabinet to grab that skillet that always falls behind everything else, and you’ll be able to use every inch of space because you can easily bring everything to you with a simple pull. Use it or lose it If you haven’t used an item in years, you probably don’t need to keep it. Every room can use an annual clean out to reduce the clutter. Reorganize those closets, cabinets and shelves and decide what you really need to keep and what can go.

Maximizing Storage Space for Everyday Items

View Resource Maximizing Storage Space for Everyday Items
“Smart” homes, or homes with features you control from a phone or other connected device, have become extremely popular in recent years. In fact, according to CNET the number of smart homes in the U.S is expected to triple by the year 2018. Adding a few smart features to your home is easy and relatively inexpensive, with connected products available for as little as $50. Here are five simple ways to make your home just a little smarter: Programmable light switches Make it look like you’re home when you’re away with smart lights that turn on and off at select or ran-dom times. It’s a great security feature, and one of the easiest ways to start automating your home. Most home improvement and electronics stores sell smart light systems for about $50. Automated garage door Around 70% of U.S. homeowners use the garage as the main entry to their homes. Monitor and control the most active door in your house with smart phone alerts that let you know when the garage has been left open. Smart controls also let you open it from anywhere in the world for guests, deliveries or contractors. Smart door locks Lock and unlock your front door from anywhere with your smart phone, or give others access to your home without having to lend out your spare key. Smart locks start at about $200 and feature automated alerts to let you know when the door is locked or unlocked. Streaming home security video For about $150, a home video camera adds security by streaming live video to your smartphone the instant any movement is detected in or around your home. Smart temperature control Smart thermostats let you adjust your home’s temperature from wherever you are. Remotely switch your settings to vacation mode if you forgot to do it before you left, or turn on the heat before coming home to get the house comfy. Prices start around $250, and you’ll save up to 20% in energy costs annually.

Five Essential Smart Home Features

View Resource Five Essential Smart Home Features

Its always a good idea to have savings tucked away for a rainy day. Emergencies such as legal or medical bills or loss of a job can all force you into ‘rainy day’ mode. Planning ahead can make these types of events easier to cope with. Determine how big your rainy day savings need to be by factoring in emergency spending needs and essential spending needs if your source of income is interrupted. Once you know what you’ll need, put together a plan based on your current savings, monthly savings and the number of months you want to take to build your rainy day fund.

Save for a Rainy Day

View Resource Save for a Rainy Day
You know you need to save more money, but it seems impossible. After all, you are barely paying your bills now. Moreover, it does not look like your income — thanks to the sluggish economy — is set to grow anytime soon. Saving money, though, should be a priority. If you do not have any savings, how will you handle losing your job or suffering a costly injury? The odds are, you’ll run up loads of debt to cover these financial emergencies. The good news is that saving money is not as difficult as you might think. You can save, at least a little, even if you feel that you have few dollars to spare. Your Budget Your first step is to draft a budget. You cannot save money if you do not know exactly how much money you have coming in and how much is going out each month. At the beginning of every month, estimate the amount of money that will flow into your household. Then subtract your monthly expenses from this figure. Don’t forget to be realistic. Budget enough for groceries and entertainment. If you create a budget that’s not realistic, you’ll have little chance of following it. At the same time, you need to be spending less than you are taking in. So, if you have to, that means cutting back on things that shouldn’t be a priority over saving money. Once you know the difference between your income and your expenses, you’ll know how much money is available for saving. Force Yourself to Save You might get discouraged when you see the results of your budget, especially if you only have a small amount of money left over once you calculate your expenses. Here’s a simple truth, though: What’s important is that you start saving something, not how much you are actually saving. Thanks to compounding, depositing money in an interest-bearing savings account will help your money grow faster. This is a strong case for making regular deposits in your savings account, even if these investments are small ones. So, if at the end of the month you’ll only have $50 for your savings account, don’t get discouraged. Instead, deposit that money. Your Savings Account It is important to select the right savings account. You’ll want an account that pays interest. Your money will not grow as quickly in a savings account as it might in a riskier investment vehicle. However, remember: Your money will remain in your savings account for the long haul. It will grow steadily over time, not necessarily quickly. Secondly, be wary of accounts that require minimum balances. If you do not have a lot to invest early, you’ll need to make sure that you will not face any fines for not having enough dollars in your savings accountant. Direct Deposit If your employer offers direct deposit, it makes sense to ask to have some of your money from your paychecks automatically deposited not only in your checking account, but also in your savings account. This way, your savings account will grow without you having to think much about it. Just make sure that the amount you are automatically depositing is not more than you can afford. You need to be able to pay your bills as well as save your dollars.

Budgeting a Savings Plan

View Resource Budgeting a Savings Plan

The future value of your savings plan is dependent on the starting balance, additional monthly savings and the rate of return you receive on those savings. For the most accurate valuation, you’ll have to to separate taxable accounts such as savings and CDs from your tax-deferred accounts such as 401(k)s and college 529 plans.

What Will My Savings Be Worth?

View Resource What Will My Savings Be Worth?
December comes with a whole slew of expenses that can really break your budget if you haven’t been saving up for them. Between buying gifts, hosting parties, and traveling to visit family, you can easily spend hundreds, or even thousands, of dollars. Unless you have been saving money throughout the year, you will probably end up putting these expenses on a credit card. You’ll be stuck paying for them all year next year, or longer, and the interest expenses will add up. Instead of going into debt next year, consider opening a Christmas club account to help you reach your savings goals. How Christmas Club Savings Accounts Work A Christmas club account is a savings account offered by many banks and credit unions. You typically open the account at the beginning of the calendar year and set up automatic contributions to the account on a regular schedule, whether you choose to make them weekly, bi-weekly, monthly, or quarterly. The bank or credit union often pays interest on the balance in the account throughout the year so your savings will grow. Near the end of the year, you can withdraw the money saved and all of the accrued interest and use this money to make your holiday purchases. Many banks and credit unions charge penalty fees if you withdraw money from your Christmas club account before the designated withdrawal period. Each bank or credit union has its own specific details that you need to read and understand before opening the account. Advantages and Disadvantages The main advantage to a Christmas club account is that it forces you to save money throughout the year for your holiday spending. Because the money is in a separate account that may have early withdrawal penalties, you are much less likely to dip into it than you would be if you just left the money in your checking account or stashed cash in your home. Another advantage is that Christmas club accounts often pay higher interest rates than other types of savings accounts with similar deposit amounts. And of course, your Christmas club savings has the advantage of helping you avoid accumulating credit card debt while doing your holiday shopping. Christmas club accounts are not the best choice for everybody, though. For example, if you like to do your shopping throughout the year, you will have trouble if your money is stuck in the account until the fall. Another potential disadvantage is that some accounts automatically deposit the account balance into your checking account in the fall, and you might accidentally spend your Christmas money on other expenses if you didn’t notice the deposit.

How Christmas Clubs Get You Ready for Christmas

View Resource How Christmas Clubs Get You Ready for Christmas
How you legally structure your business affects your tax status and your liability. It has a significant impact on how investors, banks, and credit unions perceive your worth. So taking the time to investigate your choices makes sense. The organization structure you select is especially crucial with the recent passage of the Tax Cuts and Jobs Act of 2017. In addition to making significant cuts to corporate tax rates, the Tax Cuts and Jobs Act altered how many small businesses structured as ‘pass-through’ entities will pay their taxes. For these companies, income that passes through to their individual federal tax return from the pass-through entity will be taxed at individual tax rates less a deduction of up to 20% to bring the rate lower. However, there are qualifying rules for this treatment that with which you will need to become familiar. Changing from one structure to another after you have been in business awhile is possible, but there is paperwork and legal tasks to perform. These functions may include transferring licenses and permits, dissolving the entity, registering with local and state agencies, and notifying the IRS, banks, credit unions, and vendors. Plus, you might need to hire an accountant and lawyer to ensure the change is properly executed. Here is a look at the most common ways to structure your business and their ramifications. Types of Organizational Structures In the United States, there are four main types of business structures: Each has its pros and cons. Sole Proprietorship A sole proprietorship is a way many small businesses start because it is simple to get started. As the owner, it gives you complete control over the operations of the company. Many home-based businesses and one-person consultancies choose this, as well as small shops and retail and service-based firms. With a sole proprietorship, you need to keep your records and pay the IRS with self-employment taxes. To reduce the burden of once a year tax payment, you can spread it out in four equal payments throughout the year, using estimated tax as your basis. This structure does have limitations. You are afforded no safety net for liability, debt, and financial obligations, so your personal assets are at risk. However, it has tax advantages, especially helpful in the early days of a business. You can use your business losses to offset other income since everything is reported on your personal tax return. Partnership If you join up with a colleague to put together a business, your organizational structure is the partnership. There can be two or more people in the partnership, each with an equal share of both the net profits and the net losses. Each partner reports his income on his personal IRS tax form and pays self-employment taxes. If the partnership gets sued, each partner is personally liable for debt and obligations, as well as the actions of each of the other partners. LLCs and S Corps Both LLCs and S Corps are hybrids of the corporation form of organizational structuring. A corporation is the most complex of all the types. Its most significant advantage is that any liabilities and obligations get borne by the corporation, not the individual owner. Corporations are taxed as separate legal entities at specific corporate tax rates. Individual states regulate corporations. Limited liability corporations have become popular because they offer some protection in liability cases, as the name implies, just like a corporate structure does. With an LLC, even if you are the sole person in the business, you are viewed as a member of the company, not the owner. Some LLCs are partnerships. With an LLC, both earnings and losses are passed through to the person who owns the business, who then includes them on their personal tax return. Keep in mind that with the recent passage of the Tax Cuts and Jobs Act of 2017, the rate you will pay will be dependent on how your income is earned and the type of business you operate. Subchapter S corporations, usually called S corps, can pass both losses and income on to their shareholders. This gives them a legal avenue to avoid paying federal income taxes, eliminating the chance of double taxation of the profits of the corporation. It is wise to ask an accountant or lawyer for input as to which structure will work best for your business and the future you envision for it. As your business grows and its needs change, rest assured though that your business structure can most likely be altered to meet these changes. Many startup businesses begin as a sole proprietorship or partnership and grow into an LLC or corporation.

Organization Structures

View Resource Organization Structures