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Financial Spring Cleaning

Spring is the season for cleaning and that shouldn’t just end at home. Your finances should go through a little spring cleaning themselves. Having an organized financial life can help you better understand the flow of your money. Tracking your income, how you spend it, and how much of it you save can give you the information you need to set financial goals for yourself.

So, while you’re decluttering your closet, remodeling your back patio, consider some financial spring cleaning, as well.

Here are some ways to organize your finances this spring (or anytime, really):

financial spring cleaning

Review and Establish a Budget

To ensure your finances are in order and that they remain that way, it’s best to set up a balanced and realistic budget, if you don’t have one already. Review your monthly income and expenses then establish what your financial goals are. You could be saving for a long-term investment like a down payment on a home or you could be saving for a new gaming system or a getaway.

Whether it’s a long-term or short-term goal, budgeting is essential to making sure those goals are achieved. Organize your budget on a simple spreadsheet and review it often to ensure you are on track.

Having a budget will make it easier for you to reach your savings goals because it’ll help you determine how much money you can spend and how much you need to put away. You don’t need to plan out the rest of the year perfectly but instead start by creating a monthly budget, then track your finances for that month. Once you get into the habit, you’ll find yourself becoming a budgeting expert.

organize your finances

Set up a Money Pool/Automated Savings

One way to keep yourself organized financially is to set up automated savings, or an interest-earning Money Pool, like the one we offer at Marygold & Co.

Having a Money Pool allows you to separate and categorize your finances all within one account, making it easy for customers to track multiple savings goals at once.

Each individual can customize their automated savings to best align with their goals and current financial standing.

You can choose to contribute to your savings goals on a bi-weekly or monthly basis, and the amount you deposit is up to your discretion as well.

Automating your savings will help prioritize your goals and will reduce the temptation to overspend. You don’t even have to worry about making those regular deposits, it’s all done for you!

Pay Off Outstanding Payments

Look over any outstanding payments, if you have the means to pay them off, then do so. If not, this is the time to work out a way to pay your debts off.

Is there anything laying around your house you could sell? Are there extra shifts you could pick up at work?

Find opportunities that’ll help you earn that extra income to help you pay off your debts.

If you are unable to pay everything off right away, setting up a debt repayment plan can help you stay on track. While you may not pay everything off in one go, at least you have taken steps to reduce that debt and eventually eliminate it.

Make sure you include your debt payment plan in your budget.

This will help you stay on top of your payments by ensuring there is money available in your checking account to contribute to this payment plan.

Automatic Billing and Investments

Having your bills automated can help you ensure that they are always paid on time and that you’re not rummaging around for extra cash to meet your phone bill payment at the end of the month.

The best part about automatic billing is you don’t even have to think about it, it is automatic after all.

Additionally, you can even set up automatic deposits to your IRA or 401k investments. Automating deposits into these accounts will ensure you’re continually investing your funds.

The advantages of investing your money include reducing your taxable income for the year.

control your spending

Analyze Your Spending Habits

Analyzing your spending habits will help you point out your spending habits, bad and good. When looking over your spending habits, you might find some patterns that are preventing you from achieving your financial goals.

An important step while spring cleaning your finances is to look over your spending habits and find areas where you can save.

Are there any unnecessary monthly subscriptions billed to your credit card?

Are there unnecessary transactions you can eliminate?

These are important questions to ask yourself when analyzing your spending habits. Find areas in your daily life where you can save. Maybe pack a lunch instead of ordering out every day, you’ll definitely see big rewards from the small changes you make in your daily habits.

If you lack financial discipline, the Marygold & Co. app can help. The customizable security dashboard allows customers to limit where the card can be used.

Accounts can also be turned on or off – which can also remove the temptation to unnecessarily spend.

Clean Up and Shred Old Paperwork

It’s easy for those paper bills and bank statements to pile up on the corner of your table.

Marygold & Co. can help you keep your finances organized. The best part about the Marygold & Co. app is that you won’t have to worry about paper – checks, receipts, pay stubs, etc.

Take the time to shred and discard any old paperwork. Make sure you dispose of these documents properly as they contain very sensitive information including personal information and bank statements. We recommend using a shredder to ensure these documents are properly destroyed.

Marygold & Co. Makes It Easy

Marygold & Co. can help you sort your finances and keep them organized throughout the year through an innovative new app launching this spring.

The FDIC-insured fintech app offers customers interest-earning savings accounts and allows them to send, receive, spend and save securely through their mobile device.

Control and organize your finances easily with Marygold & Co.

Your finances will never have to go through a spring cleaning again – instead, you can keep them clean and organized.

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Investing vs Speculating

“We engage in the folly of short-term speculation and eschew the wisdom of long-term investing.  We ignore the real diamonds of simplicity, seeking instead the illusory rhinestones of complexity.”

– John C. Bogle, Enough: True Measures of Money, Business and Life

The idea of investing to achieve our goals CAN BE very straightforward.

Focus on the long-term, diversify, and do not use products with high fee structures.

The world of investing does not need to be complex and stressful. However, there are some investment firms that seem to do a pretty good job of making it seem so complex that most of us could not figure it out on our own, and this is just simply not true.

Long-term investing can and should be easy to understand.

investing vs speculating

Trading Options

I’ve had several people talk to me about trading options recently.

Perhaps because of recent congressional hearings or perhaps because now even the more conservative retail investment firms are running TV commercials talking about trading “iron condors”.

My opinion is, for the large majority of retail investors, options involve more risk than upside and should be avoided.

Ask yourself, “Who is on the other side of that trade? For me to win my bet, who has to lose?”

Then perhaps ask if you feel you have better information than the large Wall Street firms?

wall street buildings

“Wall Street investment banks are like Las Vegas casinos: They set the odds. The customer who plays zero-sum games against them may win from time to time but never systematically, and never so spectacularly that he bankrupts the casino.”

– Michael Lewis, The Big Short: Inside The Doomsday Machine

It is important to understand the difference between investing vs speculating.

Do you understand the investment you are considering, and why it is going higher or lower?

Do you have experience in the industry and know who is taking the other side?

We have numerous media outlets that now focus on short-term trading, which is fine, as long as we understand that this is speculation, not investing.

investing vs speculation

Investing should not be stressful! 

We should feel good about putting our money to work for us. And if we have a long-term approach it doesn’t take a lot of work on our part. As long as we understand our goals and match our investment strategy to meet those goals, it becomes a straightforward endeavor.

And stay away from get-rich-quick schemes and short-term speculation that is difficult to understand. Knowing the difference between investing vs speculating is empowering.

In the profound words of John C. Bogle…

“The obvious conclusion: investors win; speculators lose.”

– John C. Bogle, Enough: True Measures of Money, Business and Life

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Customized Security

The Appeal of Online Finance

Simplifying your financial life on an app offers unique opportunities that a physical branch can not match. 

At any time, any day, any device, and anywhere in the world, you can access your account balances, transaction history, transfer funds, pay bills, receive customized notifications and set up automatic savings and security tools. 

future of online banking

As technology advances, the convenience of online banking helps clients save both time and money.

In fact, many of us celebrate not having to drive to a physical location to retrieve money or deal with transactions. According to a 2019 American Bankers Association survey, 73% of Americans access their bank accounts online or through a mobile app. The future of online banking will continue to evolve and it’s important to know what that means for security and usability for banking customers, including features like turning your debit card on and off.

Why Security is Critical to Online Banking

The future of online banking relies tremendously on the security measures implemented. First and most importantly, financial institutions must manifest and maintain trust for their clients to ensure their finances and assets are secure. Secondly, online banking must be a user-friendly experience with everyday accessibility from anywhere. 

As technology grows, fraud and data breaches are becoming more commonplace, and thus advanced security for online banking is imperative. The number of new malware variants posed for mobile increased 54 percent in 2017, according to Symantec’s Internet Security Threat Report 2018. In order to protect our most valuable assets, reliable security is of vital importance.

Lost, Stolen, and Compromised Cards

It is easy to believe you’ll never be a casualty of identity theft or credit card fraud as the prevalence of this type of crime seems to be a rare occurrence. In actuality, fraud is a growing worldwide problem, especially within the United States. With losses to credit card fraud topping $24 billion dollars in 2018 alone. Almost 40% of that reported card fraud occurred in America. And between 2017 and 2018, card fraud increased by nearly 20%.

According to credit reporting firm Experian, between 2017-2018, identity theft made up 15% of card fraud, new account fraud increased by 35%, and takeover of existing account fraud increased nearly 25%.

Because of the open nature of the Internet, online banking is inherently subject to virus attacks, unauthorized access, identity theft, and fraudulent transactions.

Cardholders need security measures that will thwart fraudulent actions.

online security

Locking Debit Cards with On and Off Switch

Not long ago, cardholders whose card was either lost, stolen, or compromised, had to spend a great deal of time contacting the bank in order to have their card frozen for future transactions.  Now having the ability to lock and unlock your card immediately on your mobile phone provides peace of mind and convenient security when you want it.

Instead of dealing with the hassle of going into the bank to cancel a card, order a new one, and then wait for the teller to issue you a temporary card or make a cash withdrawal, Marygold & Co. introduces the convenient option to simply control transactions from your debit card with a lock/unlock switch. Essentially, this feature grants you the ability to  “freeze” your card until you’re able to straighten your debit card mishap or when you don’t plan to use it. Nothing is worse than canceling your card and then finding it on the car floor.

Know Your Customer

Traditional brick-and-mortar banks require you to apply for an account in person, checking your identification and confirming you are you when opening an account. 

Online banking solutions typically leverage basic Know Your Customer (KYC) required information including name, address, social security number, date of birth, email, phone, and other specific data to confirm a new customer’s identity when opening an account.  Unfortunately, more and more of that information has become compromised and for sale on the Dark Web.  

To protect potential victims from having an account fraudulently opened in their name, additional authentication methods are highly recommended for opening online banking accounts.

Marygold & Co. introduces advanced technology that verifies your government-issued identification and the picture matches your selfie taken in the onboarding process.  This technology uses liveness checks and a biometric comparison to make sure you are you before opening an account.

Assuming All Is Well and Not Setting Up Security Measures 

You’d be surprised how many people let days, weeks, even months pass by without seeing the activity on their traditional savings and/or checking accounts. App-led financial accounts can keep nefarious activity at bay by sending you a text about all activity instantaneously. When your finances are top of mind without thinking twice, you are able to monitor your accounts more closely, be aware of suspect transactions occurring and immediately inform your financial institution of suspect transactions. If you don’t have security alerts set up on your phone or email, identity thieves are able to use your information 75% longer.

Having Predictable and/or Unchanging Passwords

It’s easy to use the same password forever and for everything. It’s comfortable to use that password for several cards or services. But, it won’t seem like such a good idea when identity thieves can easily access all your cards and accounts after discovering the password used unlocks access to all of the accounts. Don’t use the same password. Change your passwords often. Write down the new ones and store them in a safe place.

customized security

Marygold & Co.’s Customized Security

Marygold & Co. is offering an innovative online banking experience with customized security at the forefront of their services – the future of online banking.

What is ‘Customized Security’?

As the name suggests, this provides security uniquely tailored to the needs and preferences of the individual clients. 

The Marygold & Co. Mastercard® Debit Card and mobile app offer clients a safer, more user-responsive alternative to traditional banking. The FDIC-insured card allows users to take complete command of their finances.

In response to cardholder’s mounting concerns about fraudulent activity and identity theft, Marygold & Co. gives users more control over how their card is being used than ever before. With an easy-to-use toggle in the mobile app, users can easily switch their card on or off, set restrictions on where exactly the card will be used and spending limits.

Customized Security Features

  • Debit card on/off capability 
  • Sleep mode
  • States/merchants/merchant categories/countries on/off switch
  • Spending limits tied to time and/or places
  • Text notifications when the card is used
  • Two-factor and biometric fingerprint login protection

The Future of Online Banking

These scenarios demonstrate the ease of Marygold & Co’s customized security. 

No plans in the near future to leave your typical surroundings?  From the Marygold & Co. banking app, you can simply restrict card usage to a specific geographic area in order to prevent fraud. 

Planning to take that trip to Europe now?  Open up the limits, or even bound usage to only the location of your intended travel within the Marygold & Co. app. No phone call needed!

Lost track of your card and are not sure whether it is lost or misplaced? Thanks to Marygold & Co’s customized security, you can easily disable your card with the debit card on/off switch in the app while you search for your card. 

The different scenarios the Marygold & Co. Mastercard® Debit Card offers are almost unlimited, which is why security is now customized to a client’s specific need.  We want to give you as much power and control over your financial life as you want, including what types of things you allow and how strong your security should be. That’s why Marygold & Co. offers customized security right in the app!

Marygold & Co. is paving the way for a more user-friendly and customizable security experience than any other online banking app. We invite you to join the waitlist for Marygold & Co. today to take control of your financial security. 

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Organizing Your Financial Life

The end of the year and/or beginning of the next year is usually a time when finances and money seem to be top-of-mind. Often when we think about money, we think about how to best manage it and stay organized. As you take this time to figure out your goals, organizing your financial life is a goal you may want to consider if you haven’t already.

Organizing Your Financial Life

Why Organize Your Finances?

Financial planning helps you understand how much money you have coming in, where and how you are spending it, and how much you have left for savings. With this knowledge, you can then set short and long-term financial goals.

Financial planning helps you prepare for emergencies. With basic budgeting and setting priorities, you can sleep better because you have considered contingencies. Financial planning nurtures prudent spending and careful investing in your future.

Ways to Better Organize Your Finances

Ramsey offers these suggestions.

It is shocking to note that over half of earners do not have a budget. They frequently run out of money before their next paycheck without a clue of how that happened. Setting up a budget should be a priority as soon as you start to earn money. It is not wise to delay doing this.

Fortunately, there are several easy apps and software programs (as well as tips) to help you do this.

  • Check out these popular budgeting tools for first-time budget organizers.
  • Set aside some time for budgeting. An effective budget behavior is to block a day and time (monthly) for budgeting.
  • Calculate what to spend on such items as rent, groceries, loans, transportation, work clothes, and leisure. Figure out how much you can set aside for long-term and short-term savings.
  • Try to pay your bills online. Almost forty percent of wage earners do this. Pick a time in the middle and at the end of each month to look after bill paying. It also helps to manage those days of the month and try to space them out or consolidate them, depending on your preference.
  • Get into the habit of collecting and organizing your receipts. Keep records of them so they are part of your budget.
  • If keeping receipts doesn’t sound feasible, you can use a financial services app like Marygold & Co. to keep track of your transactions taking place in the account.
  • Create categories for your budget. These will help you get organized and stay within your guidelines.
  • Designate a portion of your earnings transferred to savings. When you get paid, pay yourself first. A good aim is ten to twenty percent earmarked for savings. When the money is automatically deducted from your account, it makes saving a lot simpler and more secure. Out of sight, out of mind.
  • Get rid of those credit cards. People who use credit cards instead of cash or debit cards spend at least 35% more. Instead, use cash or your debit card. This avoids both overspending and interest on unpaid credit card bills.
  • Couples should combine expenses and an account for paying bills. Combine your incomes and do your bill paying, vacation saving, and investing.  Working as a team improves money management and communication about financial decisions.
organize your financial life

General Tips for Wise Financial Organizing

If you are new to a financial organization, Investopedia.com offers these practical tips for getting started:

  • Learn self-control. Spontaneous purchases are one of the major reasons for personal debt. Unless a purchase is essential, hold off until you’ve saved enough to buy it. Many times this delay gives you time to rethink the wisdom of owning the item.
  • People who find themselves out of money before their next paycheck (or living paycheck-to-paycheck) often have no idea where their money went. That’s one of the biggest reasons to set up and stick to a budget.
  • Find a time-honored financial software that is user-friendly. Learn how to manage various parts of your financial life. These areas should include budgeting, debt tracking, setting savings goals, and investment coaching.
  • Check with your financial institution to see if they have free apps or software to help you manage your money.
  • Learn how to use spreadsheets like Excel to manipulate and perform calculations on your financial data.
  • Look for opportunities to learn and research more about financial planning from sources like YouTube, free seminars, webinars, and podcasts.
  • Explore all features of financial apps or software from paying bills, tracking the value of your assets, and computing your total net worth to invest.
  • Set up an emergency fund. This should be separate from savings and general expenses. Things happen. Appliances need to be replaced. Your car breaks down. Your business downsizes and you’re out of work. Advisors suggest your emergency account should have enough to pay expenses for three to six months. If you put this in a high-interest account, it will earn money while it sits there.
  • The time to start saving for retirement is when you get your first paycheck. Set aside a little each month in an account earmarked for retirement. That way, you will not be part of almost 35% of Americans who cannot afford to retire.

How Has Technology Made Organizing Your Financial Life Easier?

Technology has changed the way individuals organize their personal finances. Business Insider notes several innovations. These include free apps offered by some banking institutions, user-friendly software, and expense trackers.

What are the advantages of using technology in organizing your personal finances? Finance software and apps allow you to increase your efficiency in money management. Using technological aids, you can learn new and improved ways to set and meet short and long-term goals.

Some of the newest finance software teaches you to set up a budget and track your spending. Other software and online courses assist with setting up a portfolio and making wise investment choices.

how to organize your financial life

Key Feature of Marygold & Co.

One of the most important aspects of organizing your finances is to establish specific, money-saving priorities and goals.

Marygold & Co. offers an innovative way to empower clients to reach their financial goals through the apps Money Pool savings options.

What is a Money Pool Savings Account?

Essentially, a Money Pool is a prioritized goal-specific savings account. Marygold & Co. Money Pools provide a complete and transparent view of your progress towards each goal; short and long term. Money Pools allow you to clearly define your goals, set timelines, and track your progress. Say you want to save for a down payment on a house: you simply create your custom Money Pool within the app, set the amount, time frame, and automatically divide a portion of your pay into your ‘Pool’. These interest-earning accounts help you achieve your financial goals faster.

Coming Soon in 2021!  Money Pools will be structured around the specific timeframe and target amount of the associated goal.  As a Registered Investment Advisor, Marygold & Co. Advisory Services will offer unlimited Money Pools comprised of highly liquid Exchange Traded Funds.

Marygold & Co. lets you create customized, individual accounts for your unique and personal goals all in one place, marrying high tech with high touch solutions.

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Why Me?

“Managing our finances can feel overwhelming, and sometimes it even feels like financial companies want to keep it that way.  The “paradox of choice” is real – way too many options, but not enough information on how we can pick the right solution.  And then we question the financial decisions we’ve made.”

– Timothy Rooney, President, Marygold & Co. Advisory Services

Welcome to Marygold & Co.!  We are building an easy-to-access community for financial assistance, for people to learn about their finances, share their experiences, and make decisions for their financial futures – all from a mobile device!

So, Why Me, Timothy Rooney of Marygold & Co.?

What makes me qualified to assist others in reaching their financial goals? Because I’ve been building new products and businesses for large financial companies for longer than I’d like to admit!  I’ve created mutual fund businesses, exchange-traded funds, and retirement plan products, to name a few.

Why Marygold & Co.?

We want to share our experience with you to help you make knowledgeable financial decisions, so you can reach your goals. We can’t wait to get the conversation started, and hopefully provide some support to a happy, healthy, and inclusive community!

At Marygold & Co., we believe that financial decisions don’t need to be overly complicated, and it typically starts by asking a few questions about what we plan to do with our money:

  • What are the goals or outcomes we hope to achieve?
  • Should I invest or pay down debt?
  • If we’re looking to invest our money, is it a short-term or long-term investment?
  • Am I saving for a vacation next year?  To buy a car in a few years?  Or to retire – hopefully at a much younger age than my parents?

Financial Assistance with Challenges

By answering some basic questions about our goals we can remove much of the “clutter” that makes financial decisions appear to be so complex.  Complexity creates paralysis, or what large firms like to describe as inertia.  Studies have shown that when faced with a complicated financial decision we have a tendency to do nothing, afraid of making the wrong decision.

We believe there is a better way.  We want to help you break down and simplify these financial challenges.  Focus on the outcomes you want to achieve.  And tune out the clutter!

Let’s learn, share, & do our finances together! I can offer you financial assistance.

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F.I.R.E. (Financial Independence, Retire Early)

“Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.”

– Albert Einstein

What is F.I.R.E.?

FIRE is a lifestyle movement that grew out of the GFC (the recession of 2007-2009 called the Global Financial Crisis).  Its goal, as the name suggests, is for people to gain their financial independence and retire early.  You can see more about it on Wikipedia.

Some great people who give advice about it and that we follow are:

We know we have missed a lot of quality people and if you would like to be added to the list or have a recommendation, drop Nicole an email.

What is interesting about the movement is how down-to-Earth and full of common sense it is.  It is not a “get rich quick” scam but rather uses time-tested methods for living a good life.  Charlie Munger, Warren Buffett’s longtime partner at Berkshire Hathaway, has said, again and again, that the best way to live a long and happy life is to live beneath your means when young so you don’t have to when you are old.  Ben Franklin broke up a person’s life into three parts; getting an education, being productive, giving back.  Albert Einstein is reputed to have said, “Compound interest is the eighth wonder of the world. He who understands it earns it; he who doesn’t pays it.”

FIRE boils down to:

  • Save a lot
  • Start early
  • Be nice to others ( I added this last one)

Financial Independence Through Saving Money

One of the best ways to save money is to make sure you never see it.  Apps and savings accounts that automatically round up a credit or debit card purchase to the nearest dollar and put the extra money into a saving or investing account are an example of this.  Another good way is to pay a bit extra in money you owe for credit cards or mortgages.  Never pay only the minimum if you can.  Also, make sure to pay off your credit cards before other debts as they usually have the highest interest rates.

Once you have saved some money, invest it, and then don’t look at the balance every day.  If your money is in the stock market and the market takes a 20%+ tumble which it does every few years, you might panic and take your money out at exactly the wrong time.  As the advertising slogan for the lottery says- “You have to be in it to win it”.

Financial Independence Through Investing

Being in the stock market has historically shown to be a winner.  Since 1926, there have only been two periods when keeping your money in the S&P500 with dividends reinvested over ten years would have resulted in a loss and then, it would have only been for about 10% of your money.  Those two periods were during the Great Depression and the GFC.

If your time horizon for the use of money was 20 years, you would have never had a loss of principal.  Of course, past experience is not an indication of future returns which is why professional advice is helpful as is diversification.  But time is your friend when it comes to investing so don’t look at your account statements too often.

A long, long time ago, in a far off place called New England, there was once a traveler who came upon a small village.  He noticed someone locked in the stockade.  “What have they done?” inquired the traveler.

“He dipped into principal.”

 

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