How to Effectively Market Your Small Business on Social Media

Social media marketing is no longer optional for small businesses in 2018.

I see this problem all too often when I’m consulting small business owners. They have this mentality that social media won’t benefit their companies.

“Our customers know who we are, and they know where to find us.”

Does this sound familiar to you? Don’t get me wrong: it’s great that you have established a steady customer base. But using social media to market your small business will help you get more money from your existing customers in addition to acquiring new ones.

Failure to have an effective social media strategy can be detrimental to your small business.

While you may not think your lack of a social media presence is having an impact on you today, it will eventually catch up with you down the road. So don’t wait until it’s too late to get started.

You’ve got to keep up with the latest social media trends and apply them to your small business.

If you’re a small business owner not quite convinced you need to use social media to improve your business, you’ll benefit tremendously from reading this guide.

If you are currently using social media to market your small business but not seeing the results you hoped for, I’ll steer you toward the path to success.

Follow the marketing tips and strategies I’ve outlined in this guide, and you’ll set yourself up for sustainable growth today and in the future.

Create profiles on multiple platforms

“We’re on Facebook.”

I hear this all the time when I’m talking with small business owners about their social media strategies.

If you have a Facebook page for your business, that’s great. You’re headed in the right direction.

But Facebook alone won’t be enough to maximize your reach. You need to establish a presence on as many social platforms as possible.

Here’s a look at the social media channels that small businesses use the most:

As you can see, Facebook leads the way for small businesses.

Less than half of small businesses use Instagram, YouTube, and Twitter to market their brands. Furthermore, less than one-third of owners are taking advantage of LinkedIn and Snapchat.

Before you rush to create a profile on all the channels listed above, it’s important you understand your target market.

For example, LinkedIn is more beneficial to B2B companies. That’s because 80% of leads generated by B2B brands come from LinkedIn.

Let’s say your small business is targeting Generation Z as your primary audience. Well, 71% of Gen Z uses Snapchat at least six times each day. More than half of this generation uses Snapchat over 11 times daily.

But if your small business is trying to generate leads from Baby Boomers, it wouldn’t make sense to prioritize Snapchat.

For the most part, starting with a Facebook profile is a safe bet. With nearly 1.5 billion daily active users, you can assume your target audience has a presence there.

Believe it or not, after all these years, Facebook is still the fastest growing social network. So it’s not going anywhere in the near future.

After you create a Facebook page, you need to determine which other channels are suitable for your brand and marketing strategy. I’d recommend creating a YouTube channel.

The video content you upload to YouTube will be easy to repurpose for your other marketing channels. These videos will give you an excuse to post content on other platforms when you’re running low on ideas, but we’ll talk about that in greater detail shortly.

Define your marketing goals

You can’t just blindly start posting content on social media without some sort of rhyme or reason. Before you do anything else, you need to identify your marketing goals.

These are some of the top goals that small businesses are trying to accomplish with their social media strategies:

While lead generation, brand awareness, and customer engagement are all good reasons to use social media, it doesn’t mean these should be yours.

You may be using social media to provide better customer service or directly drive sales.

Whatever your reasons, make sure they are clearly defined. Think of it as you would of any other marketing strategy for your company.

You wouldn’t run an ad on the radio or a print advertisement without establishing a goal first, so you need to treat your social media strategy the same way.

Once you decide the purpose of your social media campaigns, it will be much easier for you to come up with content to post. As we’ll discuss soon, it can be tough to think of ideas for new posts.

But if you can establish what you want to accomplish with your content, you’ll know what to post to achieve those goals.

Post content on a daily basis

Now that you have a social media profile on multiple platforms, you’ve got to make sure those accounts are active.

If someone stumbles upon one of your pages and the most recent post was from three weeks ago, they aren’t going to follow you. What’s the point of following a brand that doesn’t post content?

Furthermore, think about all the people already following your business page.

These people won’t just navigate to that page on their own to see what you’re up to. You need to post new content that will appear on their homepages and timelines.

Let’s take a look at how frequently small businesses are posting on social media:

As you can see from this graph, just over half of small businesses post on a daily basis.

This is your opportunity to stand out from your competitors. If your competition is only posting once a week or just a handful of times per month, it will be easier for you to make a lasting impression on your followers by posting daily.

Each time you post new content, you remind your followers that your brand exists.

When they need or want whatever you’re offering, they’ll think of your company as opposed to another small business in the area.

One of the reasons why small businesses aren’t posting content daily is because they simply don’t know what to post. If you fall into this category, refer back to your marketing goals.

For example, if your goal is to promote new products for sale on your ecommerce site, then post a promotional offer for those products.

Repurpose previously published content. I briefly mentioned this earlier when we discussed why you should create a YouTube channel.

Let’s say you have an instructional guide or tutorial on how to use a product that you published to your YouTube page. You can post that same video or snippets of that video to your other distribution channels.

Share new content from your website. Post links to your most recently published posts.

In addition to posting content daily, it’s also important for you to respond to your customers. I’m referring to direct messages as well as comments.

48% of consumers say that when a company is responsive on social media, it will prompt them to make a purchase.

Give consumers a reason to follow you

In order to have a successful social media marketing strategy for your small business, you need to have lots of followers. Otherwise, nobody is going to see your content.

Once you’re able to grow your social following, it will be easier for you to convert your followers into customers.

That’s because consumers are more likely to buy from brands they follow on social media.

Here are some of the top reasons why people would be interested in following your small business on social media:

• they’re curious about your products or services
• you offer exclusive promotions
• your content is entertaining
• they need to reach a customer service representative
• you offered an incentive
• their friends or family follow your brand

So make sure your content is worth following. As you’ve seen, getting more followers will ultimately increase your chances of driving more sales.

Run a contest. Promote flash sales and discounts.

Just don’t post too many promotions, or it will cause people to unfollow you. In fact, 46% of consumers say they’ll unfollow brands that post too much promotional content.

There is a difference between posting daily and spamming your followers.

People don’t just want to see posts from your brand. If you’re posting several times per day, these posts will flood the timelines and homepages of your followers. Nobody wants to see that.

If you want to post content multiple times per day, consider sharing ephemeral content, which we’ll discuss in greater detail shortly.

Form relationships with social influencers

What if I told you there was a way for you to increase your social media presence without posting any content to your page?

Well, as I’m sure you were able to guess, this is definitely a possibility.

When people think of social influencers, they think of celebrities and athletes. But partnering with a celebrity probably won’t fit within the marketing budget of a small business.

However, influencer marketing is the fastest growing method for customer acquisition in the digital world.

Furthermore, 67% of brands are planning to increase their influencer marketing budget within the next year.

So how can a small business afford to implement a strategy like this? You can find social influencers who are much more cost-efficient than a celebrity.

Try partnering with micro influencers to increase your product credibility.

This type of influencer may not have millions of followers, but you can get them to post content about your brand for a few hundred dollars. You may even be able to get away with offering just offering them free products in exchange for a post about your brand.

This strategy is effective because micro influencers have stronger engagement metrics with their followers. That’s because they are just regular people.

An average citizen can’t relate to the lives of Kanye West and the Kardashians. But they can definitely relate to someone who has a regular job.

Consider searching for social influencers who live within the area or region of your small business. It’s more likely that their followers will be interested in supporting your brand.

Implement automation tools

I know what you’re thinking. Everything that we discussed so far sounds extremely time-consuming.

As a small business owner, you need to wear multiple hats throughout the day. Depending on the size of your business, you might be handling the majority of the company’s responsibilities.

Becoming a social media content manager wasn’t something you planned for, and it might feel as if there aren’t enough hours in the day for you to handle this.

Plus, hiring someone to take on these tasks can be expensive. That may not be something that your business can afford right now.

Fortunately, automation resources will solve this problem for you. Check out my favorite time saving social media marketing tools.

Using an automation platform will allow you to schedule your posts in advance. You can take time once at the beginning of your week to set the dates and times for your posts in the future.

Another benefit of using an automation tool is the ability to respond to messages in a timely fashion.

Rather than having to check each social platform individually for these messages, you can find software that sends all messages to one inbox. Then you can reply directly from the software.

I highly recommend these tools for small business owners who feel they don’t have enough time to effectively manage their social media profiles.

Don’t let that impair your marketing strategy.

Encourage user-generated content

This connects to my discussion about the type of content you should be posting.

You can’t go wrong by sharing content that encourages UGC.

As you can see from these numbers, user-generated content has a direct correlation with the consumer buying decision.

UGC will also help you build brand awareness. Here’s why.

Let’s say you run a contest on Instagram where participants have to post pictures featuring them using one of your products.

Your small business just got exposed to a wider audience. Anyone who follows people who enter the contest will see your brand being promoted, even if those people don’t follow you.

A whopping 92% of consumers say they trust a referral if it comes from someone they know.

UGC is a great way for you to get more followers and ultimately turn those new followers into buyers.

Take advantage of ephemeral content

Ephemeral content is different from a regular post. This type of content is only displayed for a short period of time, such as 24 hours.

The most common places where you’ll find ephemeral content for social media is on Instagram and Snapchat. Both of these platforms have a “story” feature.

I highly recommend using an Instagram story to promote your business.

I briefly mentioned this earlier when discussing how frequently you should post content.

If you want to post several times per day, do it on your story. This won’t spam the timelines of your followers.

If you haven’t used ephemeral content just yet, give it a try in your next promotion to see how it goes.

Broadcast live video streams

Small businesses can also benefit from broadcasting live video content on social media platforms.

Facebook, YouTube, and Instagram all have options to do this.

Just take a look at some of these statistics about Facebook Live:

Basically, your live stream will boost your engagement metrics. It will also give you a more authentic interaction with your audience.

You can use your live broadcast in many different ways. But one of my favorites for small businesses is a behind the scenes look.

Show your followers what happens behind closed doors at your business. Give them a tour of your production facility, office, and introduce them to your staff.

This will make them feel as if they are seeing something that’s exclusive and ultimately bring them closer to your brand.

Live video is also a great distribution method for product demonstrations, events, or Q&A sessions.

Your live audience will be able to comment on your stream in real time. Make sure you acknowledge those comments and respond to your followers.

Conclusion

Your small business needs to use social media to stay relevant in today’s day and age.

Just having a Facebook profile alone is no longer acceptable if you want to maximize your social media marketing proficiency.

Create profiles on multiple platforms as long as your target audience is active on those channels.

You need to post content on a regular basis. Just make sure your posts are all related to your clearly established marketing goals.

Your profiles need to be appealing to consumers. Run campaigns designed to get more followers.

To further extend your reach, find social influencers to promote your business. Encourage user-generated content.

Add ephemeral content and live broadcasts to your social media marketing strategy.

If you don’t have time to manage all your social media pages, consider using automation tools to make your life easier.

Follow the advice I’ve outlined in this guide, and it will bring the social media marketing strategy of your small business to the next level.

How is your small business leveraging social media to increase brand awareness and drive sales?

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Revisiting the Last Little Bit in the Container

Tubes of toothpaste. Bottles of shampoo. Soap dispensers. All of these things are easy to use at first when they’re full, but eventually they empty out, leaving just a bit of the soap or paste inside.

This isn’t just in our imaginations, either. Most packaged liquids and pastes tend to leave a little behind in the bottle or the tube:

In order to determine how much product does not come out, Consumer Reports conducted tests. A total of 22 products were tested, including glass cleaners, lotions, liquid detergents, and toothpaste. The tests found out that lotions were the hardest to empty, and pump bottles leave 20 percent of the lotion behind. Glass cleaners delivered most of the product. Plastic squeeze tubes can trap 10 percent of the toothpaste.

Last fall, Consumer Reports conducted similar tests on skin lotions, liquid detergents, condiments, and toothpaste. Testers emptied a product “in the usual way,” and waited a couple of days for the remains to settle. Then they “pumped, poured, squeezed, shook, and tapped as much as any frugal but rational consumer might.” Lastly, the testers weighed what was left inside. The results revealed that skin lotions left the most product, about one-fifth of their total contents. Toothpaste left one to 13 percent behind. Colgate and Crest brands were used in the tests.

Everyone seems to have a strategy for getting the last little bit out of the container.

For toothpaste tubes, for example, I’ve seen people roll the tube up carefully from the end, pressing down with every turn. There are even “keys” – little metal devices that help with this process by “turning” over the tube as you use it up. I’ve run toothpaste tubes over the edge of a countertop in order to get a few more uses out of the tube.

With things like shampoo, it’s a common strategy to add a little water to the bottle. Shaking it around with the water in there can produce enough “shampoo” to get another wash or two before the bottle is officially empty. I’ve seen bottles turned upside down (with the lid on) in order to cause all of the remaining shampoo or conditioner or body wash to drip down to the part of the container where the cap is, just to get one or two more washings out of the bottle.

My favorite trick? I take the cap off of the old shampoo bottle and tip it up so that it dumps into the capless top of the new shampoo bottle for 24 hours or so, until my next shower when I discard the old fully empty bottle.

Are these tactics really worth our time? It can be useful to squeeze another use out of these items when you forgot to pick up more at the store, but is it actually much of a money-saving tactic for the time invested?

Years ago, I concluded that it’s only worthwhile to do this if it’s trivially easy and takes no extra time or effort. If you’re spending 30 seconds getting just one more use out of that tube of toothpaste, you’re probably only gaining a few cents for that time and effort, and that’s not worth it. However, if it’s something trivially simple, like sitting your shampoo bottle upside down, then it’s worthwhile to use that tactic to get another use out of the bottle.

Over the years, I’ve discovered a few additional tactics that help solve this problem.

First, focus on using the actual recommended amount of whatever it is you’re using and the last little bit becomes a little less relevant. With toothpaste, you’re generally supposed to just use a pea-sized amount, but the commercials show huge amounts being used and that’s often the pattern we follow in our own use. Similarly, things like dishwashing detergent and shampoo and body wash flow so freely that it’s easy to use far more than you should.

My solution is to use a dispenser that dispenses the right amount easily. Whenever I come across a good pump dispenser, I put it to use for things like shampoo and dish soap. I use wide mouth dollar store dispensers for both of those things. Whenever I buy a new bottle of shampoo from the store (for example), I turn it upside down on the dispenser, leaving it sit upside down on top of the container to get every last bit out. Then, with a pump container, I don’t run the risk of using far too much shampoo or dish soap. I just get a single pump and use it and then only get a second if the first doesn’t provide enough. This causes me to get far more out of the package.

If using the right amount of a particular item rather than too much of a particular item means that you cut the amount you use in half each time, then you’re cutting your costs related to that item by 50%. Let’s say, for example, that you buy a tube of toothpaste for $4 every other month, adding up to $24 a year. Cutting your toothpaste use per brushing in half means that a tube now lasts four months, meaning your cost adds up to only $12 per year. If you can do the same for shampoo, conditioner, hand soap, bath soap, dish soap, laundry soap, window cleaner, and so on, the savings add up to a pretty serious amount of money.

Second, I cut open toothpaste tubes with some tough scissors I keep in the bathroom. I have some really hefty scissors that stay in the bathroom by default and when a toothpaste tube gets low, I just cut off both ends with a single snip, then cut down the side with about two snips, which takes me maybe five seconds. I then just rub my brush around on the inside of the tube and the end of the tube to get the last bits of toothpaste out. I don’t even bother to roll up the tube as I go or anything – I just cut it open when it starts getting tough and from there I’ll get about ten or fifteen more brushes out of the contents for about five seconds of effort. My guesstimate is that this adds about 10% to the life of that tube, so if a tube costs me $4, that five seconds of effort saves about 40 cents. If I do that by default with every tube we use – and my wife and I go through about six or so tubes a year – that adds up to an hourly rate of about $288.

A quick principle here: things that take very little time and save a few cents are almost always worth making into part of a routine. If you can do something that saves a few cents in five or ten seconds or less, it’s almost always worthwhile to do it. Something that saves five cents for five seconds of effort adds up to a $36 an hour rate after taxes. To me, that’s always worth it.

Finally, you can turn the containers of thicker liquids and pastes into a mini-“jar”. Hand lotion is a perfect example of this.

All you have to do is use the product until it’s beginning to get difficult to squeeze out more of the contents. Then, cut the mostly empty tube in half the short way and scoop out the stuff remaining in the smaller end of the tube. Put the content you scoop out of the smaller end into the other end, then use the smaller end as a “cap” over the top of the other end to keep it from drying out. After that, you just use it like a jar – store it vertically and, when you need to use the contents, pull the smaller end off of the other end and scoop out what you need with your fingers. If there’s a pump in there, just cut off the pump’s straw as you won’t be needing it any more. This whole process takes about 30 seconds to set up and enables you to get quite a few more uses out of the tube’s content.

This is a great tactic to use if you have an expensive hand cream or something where you spent a healthy amount per use and don’t want the 15% or 20% still stuck in that tube to go to waste. This lets you use virtually everything that’s left in the tube or bottle with ease.

My general rule is this: if I can’t conveniently get at what’s left in the container by destroying/modifying the container or turning it upside down, then it’s not worth the time and effort. Those two tactics are so quick and slick that I don’t bother with anything else.

However, the real secret is to use the actual recommended amount. Just doing that will save you far more than just getting the last little bit out of the container.

Good luck.

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Freelancers: What You Should Consider Before You Set Up An LLC

The transition from working a “normal” job to becoming a full-time freelancer is always full of surprises. One of them? Hiring professional tax-time help.

Which is how I found myself across the table from a local CPA, hesitantly showing her my color-coded income spreadsheets. Honestly, I couldn’t believe I was in an accountant’s office in the first place – talk about adulting. And now, she was suggesting another mysterious challenge: moving my fledgling freelance business to the LLC level.

Calculated risks had always proven to help my business in the past, and this one was sanctioned by someone who knew a whole lot more than I did. So I followed the precedent I’d set in all other aspects of my freelance career: I dove in head first and figured it out as I went along.

Should You Take Your Freelance Business to the LLC Level?

What’s the benefit of upgrading your freelance business to an LLC in the first place?

For one thing, it protects your personal assets in the event you run into any legal trouble. That’s why it’s called a “limited liability company;” you’re only liable for the assets you’ve put specifically toward the business.

Especially as a freelance writer, that can be an important consideration. I’m meticulous about fact-checking my work, but I liked the security of knowing I’d be able to distance myself (and my belongings) in case I were ever, for example, charged with libel.

There are lots of other benefits to incorporating, too, some of which we’ve covered here before — as well as how to get going.

But the main reason I took the dive was purely monetary. By moving to an LLC and taking the S-corporation option, I’d avoid paying self-employment tax on a significant portion of my income.

Instead, I’d hire myself through the business as an employee and pay regular income taxes. (Yes, this is perfectly legal and fairly common, often referred to as a “pass-through” taxation structure – and yes, it means I got to file a W-2 as both hiree and employer, which was pretty weird.)

All told, I’m glad I made the decision. Not only is it helping me save money, but it also – arbitrarily, I admit – makes me feel like a more legitimate entrepreneur.

But there are a few things I wish I’d known before I’d started filling out the paperwork.

Red tape is a real thing – and it is, in fact, pretty annoying.

The magical line of demarcation between freelancer and business owner is formed by a pile of paperwork – and I’m not talking about filing the business name. That’s the fun part.

Once I’d secured the LLC itself, I still had to get legitimate with the city.

To make myself legitimate, I’d need to obtain a business license; to obtain a business license, I’d need to visit zoning; to appease zoning, I’d need to assert that my workspace (i.e. home office) was appropriate and that my business wouldn’t be disruptive to my neighbors. And to do all of this I’d need to take myself, in person, to the courthouse.

It wasn’t that big of a deal, and most of it was only a one-time hassle. But anyone who’s ever waited through an interminable DMV line knows that government offices can be … frustrating.

What I thought would be a straightforward afternoon trip ended up with me ping-ponging between a variety of different buildings to hit all the requisite departments, each of whom wanted at least a little bit of my money. (They were all deductible expenses, but still.)

And in fact, I got off pretty easy; it could have been a lot hairier if I’d lived in the historical downtown part of my city, which requires a second, more stringent license – or if my business model necessitated in-person client meetings, which may have caused my residentially zoned home office space to be denied.

Your experience with this part of the process will vary depending on your specific business type and location, but just be prepared to spend an annoying amount of time and money to get a little piece of paper that says your work is legal – even if it’s the exact same work you’ve already been doing for a while.

It makes the money tree more complicated.

Part of the point of going LLC is separating your assets, but doing so can complicate your personal finances. In order to get the tax benefits of the S-corporation selection, I have to put all my earnings into a business account, from which I pay myself payroll – which, by the way, costs money to process. That is, I have to pay to get paid.

It also means I’m back to waiting for a paycheck, which I thought I’d left behind with my office days. And since freelance income is notoriously fickle and payroll is timely, there have been some instances where I’ve had to transfer money from my personal savings into my business account to make it work. (On the plus side, it is a nice change to know exactly how much money I’ll have my hands on, and when, throughout the month.)

In short, the LLC structure can definitely save you money … but it might limit or complicate your access to it in the short term. These days, my finances feel a bit more like a set of Russian nesting dolls than a simple flow chart.

Timing is everything.

My accountant had first suggested making the LLC move back in the summer of 2017, when I’d only been freelancing for a few months. I didn’t feel ready to add another set of obstacles to my business, so I put it on my 2018 to-do list.

Of course, once the new year rolled around, other goals had my attention. I didn’t end up incorporating officially until Jan. 23 … which means I still had to pay regular estimated quarterly taxes, including self-employment tax, on three weeks’ worth of income this year.

Furthermore, the business licenses in my county run Sept. 30 – Oct. 1, and although it was pretty darn cheap in my case – less than $30 – it’s not prorated. So I won’t get a full year of licensing for what I paid. Moral of the story: Things would have been a little smoother if I’d done a bit more planning.

Is an LLC Right for Your Business?

Despite the minor headaches outlined above, I’m glad I took my accountant’s advice – and not just because it feels super snazzy and official when I put business expenses on my company credit card. (It is true I expense things more often now, though that’s in part because I’m doing more expense-able things like going to conferences; I was too busy flailing to do so during year one.)

Even with the additional expense of payroll and the minor gaffs I made with timing, the math plays out. My various business taxes and the income taxes on my wages add up to a total about 10% smaller than what I’d been paying as an individual.

In the end, whether moving to an LLC or taking the S-selection works for your business depends on personal circumstances, and should probably be a decision you make with the help of a qualified accountant.

But no matter what you decide, one thing’s for sure: It feels pretty awesome to have – that is, be – the kind of boss who lets you work from home in your pajamas.

Jamie Cattanach (@jamiecattanach) is a writer based in St. Augustine, Florida. She’s written for Yahoo, SELF, The Establishment, Ms. Magazine, Roads & Kingdoms and other outlets.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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Are You Checking Your Credit Reports Often Enough?

Trying to earn and maintain healthy credit without checking your credit reports is like trying to lose weight without ever stepping on the scale.

Your odds of success are much better if you’ll take the time to check your credit reports on a regular basis, not just when you’re about to apply for a loan or you hear about the latest data breach on the news. It’s quick and free, so there’s really no reason you shouldn’t do it as soon as you get done reading this.

Your Free Annual Credit Reports

As an American citizen, you have the right to a free copy of all of your credit reports once every 12 months. You’ve had this right since 2003, when the Fair Credit Reporting Act was amended by an act called “FACTA.”

Although this federally mandated right to free annual credit reports has been around for about 15 years, a staggering number of consumers continue to ignore this option. Several years ago, a representative of the credit industry’s trade association told me, off the record, that only about 4% of free reports are claimed every year through their website, annualcreditreport.com. That means 96% go unclaimed, and they don’t roll over like cell phone minutes. Claim your free credit reports each year, or lose them.

• Related: Why You Need to Check Your Credit Report With All Three Credit Bureaus

Annual Credit Checks Are Only the Beginning

Your credit reports will change almost constantly over the course of a year. So while checking your three reports once is a year is a great place to start, there’s still a lot of room for surprises.

As a credit savvy consumer, you’re going to want to develop the habit of checking your credit reports every month, hopefully around the same time that you’re combing through your credit card and bank statements. Monthly credit checks will not necessarily protect your credit reports from problems, but they can certainly empower you to act quickly when and if problems arise.

Here are some of the key areas you should review during your monthly credit checks.

Incorrect credit reporting: It’s true that credit reporting errors can and do happen. Unfortunately, mistakes on your credit reports can potentially be a problem where your credit scores are concerned. You should check your credit reports carefully each month for any incorrect information. If you discover a problem, you can contact the creditor that’s reporting the error and/or dispute the mistake directly with the credit bureaus themselves.

Unauthorized inquiries: One of the first signs that you may be a victim of identity theft is a record of someone applying for credit in your name. Thankfully, your credit reports feature a way to track any time your credit has been accessed. Whenever a lender pulls a copy of your credit report(s), a record of that access, known as a hard inquiry, is added to your report(s). If you discover an unauthorized hard inquiry on your reports, you can take action with disputes, add a fraud alert to your reports, or freeze your credit reports if you’re worried that someone has stolen your personal information.

Fraudulent Accounts: Another indication that your identity may have been stolen is the appearance of unrecognized accounts on your credit reports. According to the Fair Credit Reporting Act (FCRA), you have the right to dispute any incorrect information on your credit reports, including accounts that don’t belong to you. If you’ve been the victim of true-name credit fraud you can file an official Identity Theft Report at IdentityTheft.gov or at your local police department. You can then send that report into the credit bureaus along with your dispute. The FCRA requires that any fraudulent accounts that are properly disputed be blocked from your reports within four business days.

Related Articles: 

• Problems That Can Haunt Your Credit Forever
• What’s a Good Credit Score?
• Which Bills Affect Your Credit Score, and Which Don’t?

John Ulzheimer is an expert on credit reporting, credit scoring, and identity theft. He has written four books on the topic and has been interviewed and quoted thousands of times over the past 10 years. With time spent at Equifax and FICO, Ulzheimer is the only credit expert who actually comes from the credit industry. He has been an expert witness in over 230 credit related lawsuits and has been qualified to testify in both federal and state courts on the topic of consumer credit.

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Fund Briefing: how to invest in strategic bonds

Billions of pounds have been invested in strategic bond funds over the past year, this enthusiasm ensuring it was the best-selling sector in 2017 – and in seven of the past 12 months.

There is now £52.6 billion invested in strategic bond funds – compared to £39.5 billion a year ago, according to statistics compiled by trade body the Investment Association (IA) – and industry observers expect this figure to rise due to ongoing global uncertainty.

There is certainly a lot to like about these funds. Their flexibility to invest in a wide variety of government bonds, investment-grade corporate bonds (bonds with a relatively low risk of default) and high-yield bonds makes them attractive for anyone wanting diversified exposure to fixed income.

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Allowing managers of these funds to focus on any part of the bond market they view as attractive enables them to maximise the opportunities, regardless of the backdrop, points out Adrian Lowcock, investment director at multi-manager Architas.

“This makes them particularly useful for individual investors who don’t necessarily have the time or expertise to make informed decisions on how to navigate bonds,” he explains. “The manager of a strategic bond fund will do that for them.”

Given the volatile and uncertain economic, political and stock market outlook, it’s unsurprising that these funds, which can be found in the IA Strategic Bond sector, have grown in popularity over the years. As a result, there is no shortage of choice.

Mr Lowcock suggests the best managers operating in this area will be fairly active and aware of the prevailing environment, with a very flexible mandate that enables them to benefit if there is an increase in either interest rates or company defaults.

“Given the volatile outlook, these funds have grown in popularity”

“They need to combine technical bond knowledge with being able to maintain good stock-picking skills and excellent macro knowledge in order to change portfolios to reflect the changing economic climate and outlook,” he adds.

Stephen Penfold, senior investment manager at Seven Investment Management, believes strategic bond funds could be useful over the next couple of years, with fixed income expected to face challenges on the back of interest rate rises.

“They can act as a safe haven and while we are underweight [in this area of the market], the exposure we do have is spread between US treasuries, European and Japanese government bonds, and emerging markets,” he explains.

He suggests investors focus on quality and look at bonds with a combination of the highest grade fixed income exposure, good diversification, and the lowest equity correlation – even though he accepts this may be easier said than done.

Quick guide: Is this approach right for me?

Consider investing in strategic bonds if…

• You want the fund to invest in all types of fixed income
• You want the manager to have flexibility to decide where to invest
• You expect ongoing global uncertainty

“Remember there’s no such thing as a free lunch, especially since some of these funds may hold a considerable amount in high-yield bonds that carry a certain amount of equity market risk,” he adds. “The higher the potential returns, the higher the potential risk.”

Gavin Haynes, managing director at investment management firm Whitechurch Securities, agrees that strategic bond funds have a role in a well-diversified portfolio, but emphasises they needed to be carefully selected.

“While the environment for bond investing will be more challenging and returns will most likely be more muted, bonds still have a part to play to generate yield and add diversification to a portfolio,” he says.

Mr Haynes adds that the most successful strategic bond fund managers will have to take a flexible approach to continue to find value and manage risk across global markets. He cites Ariel Bezalel, manager of the Jupiter Strategic Bond fund*, as a favoured name.

“His current focus is on a barbell approach (investing in long and short duration bonds) with a core exposure defensively positioned to preserve capital with key positions in US government bonds,” he says. “This is complemented by selective yield plays in bank debt, high yield and emerging market debt.”

• Inflation remains 'surprisingly' static

There is a lot of choice within the strategic bond fund universe, so investors must do their research to understand the approach the manager is taking, according to Patrick Connolly, a certified financial planner at financial adviser Chase de Vere.

“They can vary considerably in terms of the amount of freedom given to the fund manager, the types of bonds they invest in, where they invest geographically, the number of holdings they have and the term remaining on individual holdings,” he explains.

In theory, strategic bond managers have the best opportunity to succeed when fixed interest in general is performing well, and to protect investors’ money when it’s performing poorly. However, this relies on fund managers making the right calls.

“History shows time and again that many won’t make the right decisions,” he says. “This makes it really important for investors to select the right managers and investment teams and to understand the risks those teams are likely to take.”

Mr Connolly therefore, doesn’t believe having just one such product makes sense. “It’s sensible for investors to hold more than one strategic bond fund and to blend together different manager styles so they don’t have too many eggs in the same basket,” he adds.

* Denotes a Moneywise First 50 fund for beginner investors; see the list at: Moneywise.co.uk/first-50-funds.

Fund: Janus Henderson Strategic Bond fund

Value of £100 invested in the fund over five years

Year	2013	2014	2015	2016	2017
Fund percentage movement in year (%)	3.92	6.02	1.53	3.68	5.24
Value of £100 * (£)	103.92	110.18	111.86	115.97	122.05

*£100 invested on 1 January 2013. Source: Moneywise.co.uk.

Manager	John Pattullo, Jenna Barnard
Launch date	11-Oct-86
Total fund size	2.09 billion
Minimum initial investment	Lump sum: £1,000 Subsequent: £100
Max intitial charge	4%
Ongoing charge	1.4% (inc annual mgmt charge)
Performance fee	None
Contact details for retail investors	Janushenderson.com/ukpi/howtoinvest

Fund to watch: Janus Henderson Strategic Bond fund

Fund-briefing-managers.jpg

The aim of the fund is to provide a return by investing in higher-yielding assets, including high-yield bonds, investment-grade bonds, government bonds, preference shares (where dividends are paid to investors before common stock dividends) and other bonds. It may also invest in equities (company stocks).

The fund, which is designed to be used as one component in a diversified investment portfolio, takes strategic asset allocation calls between countries, asset classes, sectors and credit ratings.

It has 28.9% invested in government bonds, 19.4% in investment-grade non-financial corporate bonds, 18.3% in high-yield non-financial corporate bonds and 13.5% in investment-grade financial corporate bonds, according to the most recent fund factsheet.

As far as its credit rating breakdown is concerned, there is 23.7% in AAA, 22.6% in BBB and 21.3% in BB. The other areas, including AA, A and B each account for less than 10% of assets under management.

Its approach is favoured by Gavin Haynes. “The managers take a dynamic approach,” he says. “They have very robust risk management and this has proved to be a good defensive fund.”

The fund’s managers, John Pattullo and Jenna Barnard, are also co-heads of strategic fixed income. Mr Pattullo joined Henderson in 1997 after four years as a chartered accountant, while Ms Barnard worked as a credit analyst before becoming a portfolio manager in 2004.

Rob Griffin writes for the Independent, Sunday Telegraph and Daily Express

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Roughing It: How the ‘Last Alaskans’ Live Off the Grid and Hunt for Their Food

How One File Can Protect Your Business From Anything

It doesn’t have the most polite name, but a CYA file will cover your you-know-what in case of a problem related to your business venture. You never know what you’ll face — a financial inconsistency, a legal dispute, etc. — so you should keep backup copies of all of your important papers in the same place. And […]

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Weis to sell beer/wine in Mt. Pocono store

Weis Markets today announced it has opened a beer-wine café in its Mt. Pocono store on Route 940.The café received final PLCB approval to open on Friday morning. The café sells 550 varieties of domestic, imported and craft beer, including a local beer section. It will also offer more than 300 varieties of imported and domestic wines including ones from Pennsylvania vineyards, as well as a chilled section.This is Weis Markets fifth beer-wine café in Monroe [...]

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3 Places to Score Sweet Deals on Frozen Custard This Wednesday Only

There seems to be a national day for everything nowadays. But hopefully, this one will make it easier to get through the week, because it involves something sweet, creamy, frozen and free.

This Wednesday, Aug. 8, is National Frozen Custard Day, and that means free — or nearly free — sweet and creamy treats!  

Where to Celebrate National Frozen Custard Day 2018

There are a few places celebrating National Frozen Custard Day with some sweet deals and freebies, but first: What exactly is the difference between frozen custard and ice cream?

While ice cream is usually made with milk, cream and sugar, frozen custard is made with all of the above and egg yolks, which give it a thicker, creamier texture. In fact, frozen custard is so dense and creamy, it’s often referred to as a “concrete” or a “concrete mixer” when you add in more sugary good stuff like cookie dough and chocolate chips.

Now that you know what makes frozen custard so sweet and creamy, here’s where to get it for cheap or even free on National Frozen Custard Day.

BurgerFi

BurgerFi is celebrating National Frozen Custard Day with totally free frozen custard! Stop by your local BurgerFi any time on Wednesday, Aug. 8, to enjoy a free small custard. And no purchase is necessary — all you have to do is show or mention this offer to receive your free frozen treat.

Freddy’s Frozen Custard & Steakburgers

Do something sweet while enjoying something sweet on National Frozen Custard Day at Freddy’s Frozen Custard & Steakburgers. Freddy’s is celebrating with single cones, dishes and custard cookies for 99 cents apiece, and the chain is making the day even sweeter by donating 50 cents for each item sold to the Kids In Need Foundation.

Rita’s Italian Ice

Although the name might not imply it, Rita’s Italian Ice also offers frozen custard and is celebrating National Frozen Custard Day all day with promotional-size frozen custards cups for 99 cents apiece.  

Nothing makes a Wednesday better like frozen treats, so don’t forget to grab yours on National Frozen Custard Day!

Jessica Gray is an editorial assistant at The Penny Hoarder. She admits national day celebrations are the bane of her imaginary diet.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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6 Strategies From a Dad Who Ditched a Stressful Job and Now Works From Home

When Your Career Is Comfortable, But You Yearn for a Change

You’re at a job that’s comfortable and secure and, frankly, fairly easy in many ways. There might be a few elements that you don’t really like, but for the most part, it’s fine.

Here’s the catch, though: you’re still pretty unhappy at work. You don’t enjoy going to work. You don’t enjoy most of the things you do at work. The little problems at work are like little pebbles in your shoes, building a minor issue into something that’s almost intolerable. Perhaps you simply yearn to be doing something different, maybe something a little more challenging or something that’s a little less stressful.

Does this sound like you?

It certainly sounds like my own situation several years ago. I held down a job that was about 20% interesting tasks, 20% meetings, 15% tangling with bureaucracy, 25% maintenance, and 20% travel. I really enjoyed the 20% of my work that was interesting and I enjoyed my relationship with my coworkers, but I basically dreaded the rest of the job.

I tried a number of different approaches, most of which I’ll talk about below, but eventually I decided that a career change was the right decision for me. I now work from home as a freelance writer, and it was perhaps the best professional decision I’ve ever made, flipping those percentages around to a proportion that I am very happy with (I’d call it about 70% interesting work, 0% meeting, 10% tangling with bureaucracy, 20% maintenance, and 0% travel). (However, that path came with a catch: it involved a big drop in income for quite a while – an issue we’ll get back to in a bit.)

At the same time, I have a few friends – and quite a few readers – who find themselves at a similar crossroads, and simply switching careers isn’t necessarily the best option for them. Every situation is different – some people in this situation are young and some are old, some have a ton of financial responsibilities while others have few, some have skills that are easily transferable, while others do not.

Here are six strategies you might want to consider if you’re in a comfortable place in your career but you’re yearning for a change.

Stick With It

The first and most obvious option is to simply stick with your current job and current career trajectory. While this might not seem like a great choice, if you do it in a smart fashion, it can be quite worthwhile. Your job provides security and good pay and benefits and it’s at least comfortable if not exciting.

There are a few things you can do here to accentuate the positives and minimize the negatives without putting your job at risk, though.

First of all, you can simply start spending a little less and putting more away for retirement. Just bump up your retirement contributions at work and look for a few simple ways in your life to cut back, like buying store brand dish soap. Having a financial target can put a light at the end of the tunnel like nothing else.

Another tactic is to master contentment. Don’t spend your time dwelling on the irritating aspects of your life. Rather, spend your time looking at the good things in your life. One practical way to work on this is to start a gratitude journal. Each day, simply list five things about your life that you’re grateful for, particularly things you noticed within the last day, and intentionally not repeating anything more often than once per week.

A third tactic is use your non-working time with more purpose. Rather than coming home and crashing, find something purposeful to do with that time. Volunteer work? A serious hobby? Community involvement? Figure out a thing or two that you really want to get involved with in your life and start committing time and energy to it rather than just going home and vegetating.

Benefits: You keep your pay and benefits. You keep the security.

Drawbacks: You’re still stuck where you are and generally unhappy with it.

Strategy in a Nutshell: Start spending less than you earn and saving aggressively for retirement, perhaps even an early retirement.

Talk to Your Boss About New Projects

Even the best job in the world can sometimes become boring and routine, and for people who relish challenges, that can lead to a sense of unhappiness. The solution is pretty easy, though: find a new challenge within the framework of your job.

If you want to largely keep things as they are but would like some new challenges at work, just sit down and talk to your boss about helping you find those new challenges. What kind of projects can you take on? What kind of tweaks to your current work can you handle?

My strong recommendation is to have a realistic and well-considered idea of what you might want to actually do at work that you’re not currently doing. What kind of project do you have in mind? Spend some time envisioning what exactly you’d like to be doing and, perhaps even more importantly, how it would benefit the organization more than it would cost the organization.

For example, in my previous job as a programmer, I would often take on different side projects and fill up as much as half of my week with them. I’d contribute to key open source projects that we relied on. I’d rewrite and optimize some of the underlying software libraries that we used, just to make everything a little bit faster. I’d thoroughly document everything and, near the end of my tenure there, I converted all of that into a wiki. The goal was to find new challenges as much as I reasonably could and it helped greatly.

Trust me: if you are a valued employee who has a record of producing good work, your boss will likely be supportive of your desire to find new challenges at work. Just make sure that you have some clear ideas and an explanation of how they’ll be beneficial to the business without detracting from your other responsibilities.

Benefits: You keep your pay and benefits. Your job is still pretty secure. You’ll take on some new and interesting challenges.

Drawbacks: You might have a little less security than simply doing nothing at all, as there is a risk that you fail at the new projects if you and your boss don’t pick appropriate ones.

Strategy in a Nutshell: Meet with your supervisor and keep a positive tone about your current job, but ask for new projects and challenges.

Switch Jobs in the Same Career Path

It may be that you don’t dislike your career as much as you dislike the circumstances of your particular job. Perhaps you’re frustrated by workplace dynamics, or maybe you find yourself doing uninteresting tasks while being regularly turned away from interesting and cutting edge tasks.

If that sounds like your situation, changing jobs within your career path might be a good move. It does come with some risk – you might find that the new workplace is somehow worse than your current one – but there are a number of ways to mitigate that risk and a number of strong benefits of switching to a new job. Let’s consider both.

First of all, there’s a good chance that you may be able to increase your pay by switching jobs. This is a common tactic for people, particularly early in their career, to bump their pay. They jump from job to job, seeking a higher salary. This strategy can still hold true later in one’s career as well. The key, of course, is to not let an increase in pay inflate your lifestyle. If you see a big increase in pay due to a job switch, keep your spending the same and set up a very healthy 401(k) or Roth IRA contribution to gobble up most of the increase.

Second, the actual process of switching jobs can add a bit of risk to your current job. During the process of interviewing, word can get back to your current employer regarding your job search, which can put you on shaky ground at your current job. A good approach here is to start your job search by talking to people you trust in your own professional network and see what they know of. Often, when you use a good mutual contact as a reference, you can get in with a position without your current employer knowing about it.

Finally, don’t burn bridges during this type of transition. Do everything you can to make the transition as smooth as possible. Give notice of your exit and stick by that notice. Don’t destroy any relationships on your way out the door, even if the relationships aren’t all that strong to begin with. You may end up in a situation where you need to move back to this previous employer or may need a relationship with one of your fellow employees there. Don’t destroy those things in a desire to vent all of your feelings as you exit.

Benefits: You have a good chance at increasing your pay. You get a fresh start within your current career path.

Drawbacks: There is some risk in switching jobs, both in the applying and interview process and whether the new job is a good fit for you.

Strategy in a Nutshell: Quietly check your professional network for opportunities. Apply for new jobs when they truly seem like compelling opportunities. Don’t burn bridges at your current job.

De-Emphasize Your Job’s Place in Your Life

This is a surprisingly effective strategy if you have a job that doesn’t require much of your effort to do well. Many people find themselves in a “maintenance” position that they can handle easily and thus only have to actually “work” a small number of hours per week, or the work that they do doesn’t require intense effort on their part.

If that sounds like you, start considering your work as something you do to support the main focus of your life, rather than letting the work be the focus.

I have a friend who has a job as a loan officer at a bank. His focus, however, is on his church and his community, where he is a leader. He focuses his thoughts and energy on those two communities, even doing tasks related to them while at work if there’s nothing else to do. He views his job purely as a way to obtain the resources he needs to do the things he cares most about.

This can be a great strategy to use if you have something else you want to focus your energy on, whether it’s something that will never return a financial reward (like charitable work or community building) or something that requires a very long runway (like writing science fiction novels or designing board games).

The challenge, of course, is that it can become obvious at work that your focus isn’t on the workplace. If you’re able to maintain your quality of work while doing this, then that’s great; if you’re not, then you can end up putting your job at risk. The real risk is when your work starts slipping and you don’t notice it because your focus is elsewhere. Be attentive to performance reviews if you’re taking this approach.

Benefits: You keep your pay and benefits. You can focus your energy and thoughts on something else that’s more important to you.

Drawbacks: Your job is probably going to become less secure, especially over time, as you move close to doing the minimum at work.

Strategy in a Nutshell: Find another area of your life to focus on. Figure out ways to use downtime at work to accentuate that focus. Stop worrying about work when you’re not there. Spend less than you earn and save the difference so that you have a cushion against the risk of a downturn in your career.

Start a Side Gig

Some people have the entrepreneurship bug and dream of starting their own business where they can set their own hours and decide for themselves what needs to be done. The dream of owning a restaurant or a lawn care business or a comic book store or a Youtube channel runs deep in some people, but they believe they don’t have the opportunity to make it happen.

The truth is you can always make entrepreneurship happen. There are always avenues to use your spare time doing something you enjoy by your own rules and make money. It might take a long time and might not earn a lot of money per hour (especially at first), but it gives you a sense of control and self-determination that you can’t get as an employee, and some people yearn for that.

For those who don’t want the risk of entrepreneurship, another side gig option is to simply take on a second job or some form of consulting related to your career path. Those opportunities are safer, but in many career paths, they won’t earn as much as your main career path.

Naturally, the disadvantage here comes from figuratively burning the candle at both ends. It takes a lot of time and energy to make entrepreneurship work, and the same is true for a second job.

Benefits: You keep your pay and benefits. You gain some interesting challenges and likely some additional pay.

Drawbacks: You run the risk of burnout as you’re essentially adding a second job to the mix. You likely slightly decrease your security at work as your effort devoted to work slips a little.

Strategy in a Nutshell: Find something that meshes your skills with something you’re interested in. Dive into doing that in your spare time. Worry about making money later – start by doing something of value first.

Go Back to School

A final option is to simply reboot your career by going back to school for education in a new career path that’s more in line with what you’ve discovered about yourself since your teen years (where many people made career choices before realizing who they actually were).

For example, one member of my family went back to school in her forties, transitioning from a career in microbiology to a career in nursing. Another friend of mine rebooted his career from teaching into computer programming.

For most, this kind of reboot requires returning to school for some type of education or training. Not only is this often expensive, it also may require a period of no employment, which can be really challenging. Of course, you may be able to obtain much of the education you need during the evenings or weekends to flex around your current career, and community college prices can help lower the costs.

Another concern is that your new career may not be as lucrative as your current one (of course, the opposite may also be true). If this appears to be the case and you’re considering this path, you should cut back on your spending now rather than later and get your finances in healthy shape for this change. Set it as a goal a year or two from now and spend that time planning carefully, minimizing debt, and maximizing savings.

Benefits: You keep your pay and benefits, at least for a while. You’re heading toward a more meaningful and enjoyable career path.

Drawbacks: Your new career might pay less and have fewer benefits, especially at first. The costs of schooling might be intense.

Strategy in a Nutshell: Start spending less than you earn and start saving for the cost of your career change. Figure out what you’d like to study. Seek out evening classes that can get you started on that educational path without causing you to walk away from your current job.

Final Thoughts

If you spend your days dreaming of a big career change in your life, there are many options for making that dream happen. Perhaps you can start from scratch with a fresh education or by starting a side gig. Maybe you can alter your current path by seeking new responsibilities and challenges or finding a new job. Or, perhaps, the best option is to simply stay put.

Whatever it is that you choose, it is far better to have considered the options and settled on the one that works best for you. It’s also worth noting that it’s almost always better to be working for something you care about, even if it’s harder, than to drift through something that just leaves your days feeling empty. The key is to make changes with some financial responsibility and intelligent long term plans.

Good luck!

The post When Your Career Is Comfortable, But You Yearn for a Change appeared first on The Simple Dollar.

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Single Parent Finances: Six Tips to Find Financial Success When It’s All on You

During your most challenging, stressful, and uncertain moments, being a single parent can seem like the craziest financial decision you’ve ever made.

I’m talking about those moments when you’re deciding between whether to buy gas for your car or groceries to feed your family (while trying to avoid using a credit card for either purchase yet again). And the moments when you’re staring at your retirement account wondering if you’ll ever make any real headway. Not to mention those long, exhausting nights when many other parents are likely resting comfortably in their beds while you work a second or third job to help make ends meet and pay for the extra things you’d like to be able to give your family.

Becoming a parent is easily one of the most profoundly rewarding things I’ve ever done with my life, and living each day as Aidan’s mom is my deepest honor, one I wouldn’t trade.

But that doesn’t erase the fact that being a single head of household can wreak havoc on your finances, your time, and your career trajectory, presenting challenges dual income households often do not face.

In 1960, nearly 90 percent of children lived with two parents. But by the mid-1990s, the number had fallen below 70 percent and remained there as of 2017, according to Census Bureau data.

Robert Epstein, of New Jersey-based Access Wealth Planning, says single parents typically live with numerous challenges, finances being just one of them.

“Single-parent households face issues that are often heightened by the limitation of not being able to have two earners in the family, as well as the need for one person to combine work, household, and child-rearing tasks,” begins Epstein.

In fact, while the median income of married couples was $85,300 in 2017, it was just $35,400 among single mothers, nearly a third (31.6 percent) of whom faced food insecurity, according to the National Women’s Law Center.

Still, single parenting doesn’t have to be a financial boondoggle. There are countless single moms and dads who have mastered the art of rearing children, budgeting, and living frugally while still leading a full life and preparing for the future.

I’m not talking about the doctors, lawyers, CEOs, and supermodels for whom economic challenges don’t necessarily apply. I’m talking about those who don’t pull in six figures (or more) as a matter of course. For the latter category, here are some of the ways to improve your overall financial picture.

Have Confidence in the Plans You’re Making for the Future

As someone who unexpectedly became a widower left to raise two children, Epstein learned first-hand how difficult it can be to juggle the responsibilities of a single parent. It’s a reality that can inspire a great deal of self-doubt.

“A lot people go through a trauma of one sort or another and lose their self-confidence and then end up not pursuing goals actively,” explains Epstein.

The problem with that, says Epstein, is the longer you wait, the more difficult it is to achieve things, particularly with regard to financial planning, because timing is so important. So, take the time to think about and plan for the future and have faith in yourself and your goals and dreams.

“If you see that you’re not doing something every day to reach your goals, work with someone who can help you do that,” Epstein adds. “Everyone needs someone to talk to, especially about their financial issues because many people have fears about them.”

It’s also a good idea to surround yourself with people who can keep you accountable yet support your financial goals and dreams, says Arizona-based personal finance coach Kalen Omo.

“Being single leaves you more vulnerable to the impulses of life, so have someone or a group of people who can walk with you and motivate you to succeed,” said Omo.

• Related: Your Money Missteps Don’t Define You

Get Control of Your Budget and Debt

In addition to maintaining self-confidence through the challenges and valleys, it’s critical to gain a clear understanding of your monthly spending.

“It’s remarkable how many people are not aware of what they’re really spending. Maybe it’s tied to the issue of financial fear, maybe they don’t want to think about it,” says Epstein.

Being a single parent is a big responsibility – financially and otherwise. Getting your budget under control and understanding where your money is going and how it’s spent enables you to prioritize, eliminate, or reduce unnecessary expenses and focus on what’s important.

There are any number of personal finance websites and apps that make this easier than ever. Options like Mint, You Need a Budget, Pocket Guard, and Prism (to name a few) allow you to link all your accounts and expenses in one place, so you can easily view the overall picture.

“With one income stream coming into the household, knowing what money is coming in and having the power to tell your money where to go is important,” says Omo.

Another important step toward securing a better financial position is banishing debt: Every ongoing obligation you can wipe out frees up more money each month to do what you need for yourself and your family.

A debt elimination strategy like the snowball method can help: List your debts from smallest to largest, and make the minimum payment on everything except on the smallest balance; throw every extra dollar at that one until you knock it off completely. Then, do the same with the next-smallest balance until it’s paid off, too, and keep repeating the process.

“The goal is to build up momentum in your debt elimination by paying off the smallest, then the next smallest, and so on,” said Omo.

• Related: In What Order Should I Pay Off My Debts?

Help Your Children Understand That Happiness Is Available Within Your Budget

Don’t be afraid to talk to children and be open about the reality of your financial situation. Engage them in discussions about living within a budget, which helps establish proper expectations.

“Explain to your children, ‘You can’t do two dance classes, you can only do one,'” says Epstein. “We didn’t do as many vacations as others in the neighborhood. We took one vacation per year. Neighbors’ kids took two or three vacations per year. But both of my kids, looking back on it, don’t regret it. When you have less vacations, you appreciate the ones you had even more, and your life is rich in other ways.”

What’s most important to the child is your love. If you do everything you can for them, they’re going to appreciate you, and they will also grow up with good values.

• Related: Fancy Vacations? What Kids Really Want Is Your Time

Develop a Plan to Increase Your Earning Potential

Running a household and raising children on your own leaves little time to plot a course for a better future. Not to mention finding the time to do the work to reach that brighter horizon.

“You’re in a situation where your budget is tight, where you’re not able to accomplish all of your financial goals, but you want to make sure you’re going to improve your financial situation in the future, and that takes time,” explained Epstein, who suggests taking courses in an area that will improve your marketable skills.

Educate yourself for the next step, so that in five, 10, or 15 years, you will succeed.

Keep in mind, however, that it may take a few years to complete that education and obtain a position in your chosen field. And beyond that, it may take a few more years before you realize your true earnings potential.

“You want to reach a place where you have the money you need and that gives you internal satisfaction with what you’re accomplishing every day,” said Epstein.

• Related: Nine Strategies to Earn More Money in the Coming Year

Don’t Cheat Your Retirement

We all want to do as much as possible for our kids, and that often includes helping pay for college, which can be particularly challenging on a single parent’s budget.

But at the end of the day, establishing financial security also means taking care of yourself, so that you don’t eventually become a burden to your children, says Rafael Rubio, senior partner at Michigan-based Oray King Wealth Advisors.

“Everyone is so worried about investing for kids’ college. Yes, that’s good if you can afford it, but it’s important to take care of yourself first,” he explained. “There’s financial aid available for kids to pay for college,” he adds, and federal student loans offer various perks and protections. Meanwhile, you’re pretty much on your own in retirement.

“Your kids are going to be your first and foremost priority, you want to make sure they’re taken care of and fed, but you want to make sure you’re taken care of and fed too.”

• Related: Three Reasons New Parents Shouldn’t Stress About Saving for College

Don’t Try to Keep up With the Joneses

The bottom line is that as a single parent household, you can’t and won’t be able to keep up with the Joneses. Nor should you try. It will be frustrating, disappointing, and ultimately self-defeating. And it’s not where true happiness or financial security lies.

“Practice discipline, be frugal, and don’t try to keep up with what you see your friends and neighbors doing,” says Triplemint real estate agent and single parent Tami Kurtz. “Gratitude about kids, health, and a roof over your head can go a long way towards realizing you don’t need everything you want.”

And while you’re at it, make every day count, adds Epstein. There will be ups and downs and twists and turns in life. No one goes through life without difficulties.

“But as you face the challenges, as long as your keep your mind on your long-term goals, you will overcome the inevitable difficulties,” said Epstein. “In the end, you’ll be proud of many things – having raised your child and bettered yourself, and those things will be more important than whether you could buy something or go on vacation.”

Related Articles: 

• Raising a Kid Costs How Much? Ways to Whittle Down the Price of Parenthood
• How to Teach Kids About Money, from Toddlers to Teens
• Rethinking These ‘Normal’ Behaviors Can Save You $100,000 or More

The post Single Parent Finances: Six Tips to Find Financial Success When It’s All on You appeared first on The Simple Dollar.

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How U.S. Maternity Leave Policy Stacks Up to the U.K. and Germany

If American Airlines Messed Up by Charging You Bag Fees, You May Get $200

One of the more annoying realities of modern travel is paying to check luggage when you fly.

And one airline is now dealing with a class-action settlement after a lawsuit accused it of overcharging customers to check those bags.

American Airlines charged fees for baggage that should have been checked for free between July 2013 and June 2018, according to the suit.

“American breached its contract with certain customers by charging them to check one or more of their bags, despite promises that they could do so at no additional cost,” the settlement website states.

By settling the case, the airline does not admit to any wrongdoing but does agree to compensate customers.

American Airlines travelers who haven’t already received a refund for incorrectly charged checked baggage may file a claim. The airline will refund all wrongly charged bag fees from the case time frame, plus interest. Depending on what you paid, your refund could range from $18.75 to $200 (plus interest!) per bag.

If American Airlines’ records indicate you’ve been impacted by the glitch, you may receive a letter or email inviting you to submit a claim. Not sure if you deserve a refund? You can file a claim without details about when you flew or what you paid.

To submit a claim, visit the settlement website and submit your form by Oct. 19. You may also submit your claim by mail. Once the settlement is approved in court and claims are verified, refunds will be sent by check or PayPal.

Lisa Rowan is a senior writer at The Penny Hoarder.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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Take a Shot at This $200K Scholarship from NBA Player Derrick Rose

In the game of life, leadership skills and drive are important to success. NBA player Derrick Rose is looking for high school students with those qualities to apply to his newly formed scholarship program.

Last week, Rose launched the Rose Scholars Scholarship Competition, which will award one high school student up to $200,000 toward his or her future college expenses. The grand prize scholarship winner will receive $25,000 each semester over four years to be used for tuition, books, housing and food.

The scholarship program will also award two other students up to $20,000 each for tuition and housing costs to cover one year of college expenses.

“Through this initiative, we are hoping to empower the next generation to pursue their dreams,” the Minnesota Timberwolves point guard wrote on his Facebook page Wednesday, announcing the scholarship program.

The scholarship is open to civic-minded U.S. high school students in their sophomore, junior or senior year. A family member or friend could also apply on behalf of a deserving student.

Students need to have a GPA of 3.0 or higher to be eligible for the scholarship and have an SAT score of 1230 or higher and/or an ACT score of 21 or higher. To complete the application form, students must write an essay describing — in 600 words or less — what they’ve achieved in their lives thus far and how this scholarship will “change the game” for them.

Applicants must also upload a photo or video to their social media accounts that shows how and why they’ve been a leader in their community and includes #RoseScholars2018 in their caption.

The application period ends September 30, 2018. Scholarship winners will be announced on or about October 15, 2018.

Nicole Dow is a senior writer at The Penny Hoarder.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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Easy ways to cut your inheritance tax bill

If you hate the idea of HMRC receiving a large chunk of your estate when you die, read these expert tips on how to reduce your ‘death tax’ bill or, better still, leave your heirs with no tax to pay. 

Inheritance tax (IHT), commonly known as the ‘death tax’, is a tax on the estate – property, money and possessions – of someone who has died.

It’s a tax dreaded by the middle classes almost as much as the Grim Reaper himself. Yet, surprisingly, it doesn’t affect a huge number of people. According to figures from Her Majesty’s Revenue and Customs (HMRC), for deaths in 2014/15, the number of estates with a liability to IHT was 23,250, which was about 4% of all the estates left on death in the UK (approximately 597,000 in total).

Yet, IHT receipts have increased year on year since 2009/10, on average by 11% each year. Moreover, with house prices having risen, in the South East in particular, an increasing number of people are finding themselves liable for it. According to HMRC’s own figures, approximately £4.8 billion was collected in the 2016/17 tax year.

• Inheritance tax revenue breaks £5 billion barrier for the first time

The IHT allowance

IHT is normally charged at 40% of the value of your estate above a certain amount, known as the inheritance-tax threshold or nil-rate band, which is £325,000 for the current 2018/19 tax year.

However, married couples can combine their IHT thresholds, meaning that up to the first £650,000 of their combined estate is IHT-free, as any unused nil-rate band can normally be passed on to the surviving spouse.

In April 2017, an IHT tax break was also introduced on the family home. This means an individual can transfer an additional £125,000 this tax year to their direct descendants – rising to £150,000 in the 2019/20 tax year and £175,000 in 2020/21.

Adrian Lowcock, investment director at multi-manager Architas, explains: “This effectively means that, by 2021, an individual will have IHT-free allowances of up to £500,000, and married couples or civil partners, who can inherit any unused allowance from their spouse, could pass on up to £1 million before they have to pay IHT.”

Nevertheless, after years of grafting, saving and paying taxes, most are reluctant to allow the tax authorities to take money from their estate.

Avoidance measures

IHT law is relatively complex, but there are plenty of legal ways to avoid it. Danny Cox, head of communications at financial provider Hargreaves Lansdown, stresses that “one of the best ways to reduce the amount of IHT that will be paid on your death is to reduce the value of your estate”.

Moneywise reveals three top tips to cut your IHT bill.

1. Gift smaller sums

Gifts to your spouse or registered civil partner and to registered charities and political parties are IHT free.

In addition, you can gift £3,000 of capital each year, which is known as your annual exemption. If you didn’t use last year’s allowance, this can also be used.

You can also make regular gifts from your income, but you must show that such gifts leave you with sufficient money to maintain your standard of living.

IHT law is complex, but there are plenty of legal ways to avoid it

Wedding or civil ceremony gifts are also allowed. You can give up to £1,000 to a relative or friend, up to £5,000 to a child or up to £2,500 to a grandchild or great-grandchild.

In each tax year, you can also gift up to £250 to any number of people completely free of IHT, provided you’ve not used another exemption on the same person.

2. Gift larger amounts

You can also reduce your IHT by giving away larger financial sums, but you must live for at least seven years from the date of the gift for it to be completely free of IHT. These gifts are known as potentially exempt transfers and are taxed on a sliding scale known as taper relief (see box, below).

Tim Fullerlove, a partner at Wilsons Solicitors, warns, however, that you must not benefit from the money or assets you give away. If you do, even in a small way, your estate will still pay IHT on the asset when you die.

Mr Lowcock adds: “Much IHT planning involves giving away some of your money early and, as such, you lose the benefit and access to that money.

“This needs consideration, because, while you might not need the money today, you could find you might need it later in life, for healthcare, for example.”

One common concern when making large gifts, particularly to younger children, is whether the recipient will spend it wisely. Fortunately, it is possible to give money away while retaining control over its use by way of a trust arrangement.

• Sharp rise in taxpayer challenges to HMRC

How taper relief on gifts works

Number of years between gift and death	Percentage of gift liable for inheritance tax (%)	Effective rate of inheritance tax (%)
Less than three years	100	40
Three to four years	80	32
Four to five years	60	24
Five to six years	40	16
Six to seven years	20	8
More than seven years	0	0

Source: Gov.uk, 5 July 2018.

Mr Fullerlove explains: “Trusts are a complex topic, but there are a variety of structures that allow you to give money away, achieving the tax savings of a gift, without giving the children or other recipients control over it.

“You, or other chosen trustees, can hold the money on behalf of the recipients and use the funds to support them until you feel they are financially mature enough to have the funds themselves. If you give more than £325,000, on current values, to a trust you will trigger an immediate tax charge – but gifts up to this threshold will, again, be free from IHT if you survive for seven years.”

3. Invest your cash

Some investments also qualify for relief from IHT after two years – although there are risks and the rules can, again, be complicated.

Julia Rosenbloom, private-client tax partner at accountancy firm Smith & Williamson, explains that if you’re a small-business owner, for example, and have held the business for two years before death, then it may be that the value of the business qualifies for business property relief (BPR) at 100%.

However, she warns: “Sometimes the way people operate or structure their businesses, or the assets held by the business, can jeopardise either the amount of IHT relief available or even whether IHT relief is available. Therefore, business owners should review how they manage things, to ensure they qualify for BPR.”

If the business premises are owned (rather than leased), for example, but are held outside the company, only half the business value will qualify for IHT relief, compared with 100% if held within the company structure.

Qualifying Enterprise Investment Scheme (EIS) companies, certain AIM (Alternative Investment Market) shares and unquoted shares also qualify as free from IHT if held for two years.

Unfortunately, BPR is not available for AIM stocks where the business mainly deals in land or buildings or the making or holding of investments.

It is possible to give money away while retaining control of its use

However, if you choose wisely, it’s possible to have AIM shares in an Isa that benefit from tax-free growth and dividends which, if held for two years, can also be passed on free of IHT after death.

Mr Cox points out: “There are packaged schemes offered by selected investment companies that invest in AIM portfolios and unquoted shares for their IHT benefits.”

Of course, all these investments carry additional risks, and Mr Lowcock stresses: “Investors should be wary of jumping into these investments both feet first, as you could easily lose more than you gain from the tax avoidance. Don’t let tax drive your investment decisions; any investment should be sound on its own merit first.”

pay-no-IHT.jpg

Ensure money is accessible on death

Ian Dyall, head of estate planning at wealth management firm Tilney, adds that the final step in IHT planning is to ensure that your executors have the money available, prior to the grant of probate, to pay any remaining tax liability.

He advises: “This can often be most efficiently achieved by holding life-assurance policies in trust to pay any remaining liability.”

• Surrey pensioners pay most tax

How Mr & Mrs Smith’s estate could pay no IHT

Tim Fullerlove, a partner at Wilsons Solicitors, provided the following example of how IHT can potentially be avoided.

Mr and Mrs Smith have assets together worth £1.25 million. They both die in 2021 and leave their entire estates to their three children. In the tax year 2020/21, their combined IHT allowances will total £1 million. Their estates will pay IHT on £250,000, resulting in a tax bill of £100,000.

However, imagine that Mr and Mrs Smith have been making tax-saving gifts for the seven years before they die. They have each given £1,000 to each child each year, using up their £3,000 annual allowance and giving away £42,000 between them over seven years. All three children have got married over the past few years and Mr and Mrs Smith each gave each child £5,000 for their weddings, giving away another £30,000. They have felt able to give away another £10,000 each from their income to each child each year, for another £420,000. This means they have given away a total of £492,000 over the seven years.

These gifts are all immediately IHT-free, with no requirement to survive seven years. As a result, no IHT will be due on their estates.

CHRIS MENON is an editor and writer who has contributed financial articles to the Telegraph, Guardian and Independent on Sunday

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