Don’t Get Caught with a Financial Holiday Hangover

By
Mark Nicolet, CFP®, MBA, ABFP™
December 17, 2018
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The holidays are meant to be a joyous time, one of socializing, gift-giving and charity. Multiple holiday influencers, such as our faith, family and even the media, can impress upon us what celebrating the holidays mean and possibly lead us to overextend ourselves. The result can leave us recovering physically, emotionally, and often, financially. With a little forethought and discipline, though, we can bring in the New Year without suffering from a financial holiday hangover.

The first step is to establish a holiday budget. If married, be sure that this is a joint project with your spouse. Start with a gift list – who do you want to gift and how much do you want to spend on that gift. Be realistic with what you can afford and who warrants a gift. Don’t feel compelled to give one just because you receive one. Most importantly, stay focused on the meaning behind your gift, rather than the price tag. Your recipient will value the thought and care you gave.

The budget doesn’t stop with gifts. Consider all the non-typical expenses that arise during the holiday season; décor, food for entertaining, tips for preferred vendors, dry-cleaning for the holiday parties, hostess and host gifts or dinner tabs, and travel. Also, don’t forget about charitable giving. Including this in your budget will deter you from being influenced by emotion and possibly overextending yourself.

Clearly, when all is considered, this can be quite an extensive budget. Ideally, you want to start saving in January as the last thing you want to do is use a credit card to cover these expenses. For those who find it difficult to stick to their budget, utilizing cash or prepaid cards can help you stay on track. There are many tools available if you’re willing to use them.

This may sound like a lot, but a little forethought and discipline can go very far for you. I wish a happy and healthy holiday season to all. More than that, though, I wish you a happy and healthy new year, free from the financial holiday hangover.

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By Trilogy Financial
July 28, 2023

Password managers are a key resource in maintaining your security. They allow you to keep track of your passwords and encrypt them before they leave your device. Some password vaults can also generate and change passwords for you in one click, as well as securely store other types of data like credit card information. Password managers may remind you to change passwords regularly, evaluate their strength, or scan the dark web to check if any of your logins appeared online. A password manager also makes sharing your data with family and friends safer.

When using a password manager, you’ll only need to remember one master password. Combine it with multi-factor authentication (MFA)and biometric authentication to increase your security.

While they can increase your security exponentially, even reliable password managers can’t keep you 100% safe online. Following are a list of possible risks and ways to mitigate them:

  1. Not all devices are secure enough. Password managers can be hacked if your device is infected with malware. Users should invest in a trustworthy antivirus that will secure all devices first and reduce risks.
  2. Not using biometric authentication. NordPass, RoboForm, and Keeper all offer a biometric authentication option, such as requiring a fingerprint or face scan which offers another level of protection.
  3. Utilizing a Bad password manager. Not all password managers are created equal. Make sure the software you use does not lack the necessary security features to effectively protect your credentials at all times.
  4. Forgetting your master password. Select a password manager that has a reset feature or store your master password in some physically secure place. Be sure to enable account recovery options.
  5. Know what data is in your password manager. Be sure to know which accounts are stored in your password manager so in the case of a breach, you know which accounts to take action on, thus leaving the attacker with less time to cause more harm.

In a digital landscape where cyber threats are on the rise, using a password manager is a proactive measure that can overall protect your personal information and maintain robust online security. It simplifies the process of managing passwords, strengthens your defenses against unauthorized access, and provides peace of mind in an increasingly interconnected world. If you don't already, consider integrating a reputable password manager into your digital routine to enjoy the benefits of streamlined and fortified password security.

 

By
David McDonough
September 23, 2019

For many young adults, college is the first time they are independently managing their own money. It can be a time marked with excitement and new opportunities, or anxiety and worry. Financial skills built at this time can have long-lasting benefits. Likewise, money mistakes made now will carry on into their future. That is why about 70 percent of college students worry about their finances[i]. However, with the right skills and habits, this can be a great time to lay a strong foundation for their future financial independence.

The first financial decision that most college students encounter are student loans. Before taking out student loans, make sure to explore other financial aid options, such as scholarships and tuition assistance from participating employers. Also, don’t forget the option of going to local community colleges for the first couple of years. If student loans are an option, it is best to resist the temptation to take the maximum amount one qualifies for. Instead, borrow only what is needed. This will help in the long run. College is an investment, and students need to be sure that their rate of return is worth it.

It is imperative that young people know how to budget, but unfortunately, that’s largely not the case. In fact, 43 percent of college students don’t track their spending[ii]. This is particularly crucial for those who have student loans. You can help your young people early by introducing them to the concept of budgeting well before you’re packing them up for college. A budget is not simply an account of where one’s money goes. It aids in making decisions, establishing financial priorities, and staying aware of how your money is working for you. Please always remind your college students that the less they spend now, the more they’ll be able to move forward in the future.

Another common first for college students is the first credit card. Credit cards are a good tool to establish small lines of credit, but monthly balances should always be paid off immediately. Not only does this avoid late fees, but it also avoids interest building on purchases. Also, protecting personal information is imperative. Students need to constantly be aware of who they are giving their information to and what is being charged to their account.

College is a busy time full of “firsts”. These experiences can have long-reaching consequences. Help your college students prepare a solid foundation to their financial independence by providing them with the proper education and tools for a bright financial future.

[i] https://news.osu.edu/70-percent-of-college-students-stressed-about-finances/

[ii] https://www.affordablecollegesonline.org/college-resource-center/student-guide-to-budgeting/

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

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