Sub-savings accounts and investment options set this app apart from the rest, executive says.
So many of us are focused on how we can make the maximum amount of money possible. While this is important, learning how to protect your money is equally as critical. There are many different threats and risks out there that you need to be aware of, such as fraud, identity theft, stolen bank cards, and hackers. Thankfully, there are a variety of measures you can take to help protect your money.
- Fraud: Fraud is a major risk that you need to be aware of. Fraud simply means somebody attempting to deceive you or someone else for either personal or financial gain. An example of this are the spam calls that all of us have been getting about your car’s extended warranty expiring. In this example, the scammer is attempting to deceive you into giving them your credit card or bank account information to then steal your money.
- Identity Theft: Identity theft, although it is a form of fraud, is an extremely dangerous risk to your money. Identity theft is where somebody attempts to steal your identity, usually by obtaining your social security number and other important personal information. In some cases they even use digital synthetic identities that are so realistic most fraud detection services are fooled. They then use your identity to open up new credit cards or bank accounts, among other things. The risk of this is that, as the account is tied to your identity, any debt can potentially be your responsibility and severely impact your credit score.
- Stolen Bank Cards: Most people, at least once in their life, have checked their bank accounts to see a bunch of charges they didn’t make. Usually, this happens through somebody illegally obtaining your debit or credit card, whether it’s through theft or you simply misplacing your wallet.
- Hacking: Another common risk you need to be aware of when learning how to protect your money is a hacker gaining access to your bank accounts. This can happen either through hacking the bank directly (which is extremely difficult, as banks and other financial institutions have a ton of safeguards in place) or by hacking either your phone, app, or username and password.
Best Practices: How to Protect Your Money
Now that we’ve shared a few common risks that you should be aware of, we’d like to give you a few basic, simple best practices that will help you protect your money. You might already be aware of some of these, but they are all important when thinking about how to protect your money.
Check Your Accounts Often
One of the easiest things you can do to protect your money is to check your checking, savings, and credit card accounts daily. Although it might sound a little extreme, taking the 5 minutes to briefly check your accounts allows you to stay on top of any potentially fraudulent transactions.
Monitor your Credit
There are many sources available to monitor your credit and even get notified if your credit is being checked or a new account is being opened in your name.
Lock your credit file when you are not applying for new credit. This can be a simple way to protect your identity and restrict fraudsters from impersonating you even if they gained access to your personal data. In order to lock your credit file, you will need to contact each of the following three credit bureaus: Experian, Equifax, and TransUnion.
Do Research on Your Bank
One of the most important steps you can take in learning how to protect your money is to thoroughly research your current and/or future banks. You will want to make sure your bank is FDIC-insured, which protects your money up to $250,000 per account. Another crucial thing to research is whether or not your bank has good customer service. Lastly, you’ll want to learn about any potential missteps that your bank has had in the past, such as the Wells Fargo scandal a decade ago, where employees were fraudulently opening new accounts without customer awareness.
Don’t Share Your Bank Info With Anyone
This seems like a no-brainer, but it’s actually one of the most common ways to have your identity or money stolen. Unless you are calling your bank directly, under no circumstances should you share your bank account information with anybody, even if they seem legitimate.
Use Strong Passwords & Multi-factor Authentication (MFA)
Strong passwords and MFA can help prevent unauthorized access to your accounts. By having long, complex passwords that you change frequently, you reduce the risk of somebody or a computer program guessing your password. Multi-factor authentication is another way to keep your accounts safe. MFA uses 2+ checks to confirm your identity, such as entering a password and then inputting a numerical code texted to your phone number.
Be Sure You’re Using Secure Devices & Networks
You should only log in to your financial information from a secure, personal device and secure (password-protected) wifi network. It’s much easier for hackers to gain access to your data if you are using an unsecured, public device or wifi network. In a perfect world, you’d have a dedicated computer to access your finances, but this obviously is not realistic for most.
Protect Your Money w/ Marygold & Co.
Marygold & Co. is a new financial services app that’s dedicated to helping organize your financial life and reach your financial goals.
Not only is it revolutionizing budgeting and expense tracking through a new feature called Money Pools, but Marygold & Co. is extremely concerned with safety and security. That’s why we employ state-of-the-art technology like biometrics with facial authentication to determine if a government-issued identification is authentic and a selfie of a live person matches the picture on the ID. This is highly effective because fraudsters don’t like to have their real picture taken and faking a real face is not an easy task.
Other security measures like multifactor authentication and fingerprint credentials offer additional layers of protection once an account is opened.
You shouldn’t entrust your hard-earned money to just anybody, and Marygold & Co. will not only help protect your money but it gives you all the tools needed to push towards your financial goals.
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):
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.
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.
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.
“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.
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 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 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
Switching to online banking has its obvious perks, most notably, having complete access to the bank and features without having to physically go into your local brick-and-mortar. However, mobile banking apps still have some consumers worried about the security threats that come with using the Internet. This brings us to the question– are mobile banking apps safe?
The Future of Mobile Banking
In today’s digital era, people globally are adjusting to the accessibility that fintech and mobile banking apps offer. Fintech, more formally referred to as financial technology, is an innovative economic industry banded together by companies whose main objective is to make financial services more efficient. Marygold & Co., a fintech service, offers a banking app that allows anyone in the United States to send, receive, save, and spend money directly from their smartphones.
Fintech companies are experiencing rapid customer growth, competing directly with big banks and credit unions. Other digital payment services like Marygold & Co., Venmo, and Paypal have made transferring funds over the internet swift and easy, surpassing traditional person-to-person payment methods. These online payment methods have eliminated geographical obstacles to participating in a global marketplace, making transactions everywhere more efficient.
Additionally, mobile and self-service banking has allowed customers to quickly transfer funds, check account balances, and deposit checks, directly from their smartphones.
How Safe is Online Banking?
Despite favoring the convenience of online banking, there still seems to be a certain degree of distrust with customers switching to online banking because of the ongoing threat of cyber-attacks. Due to this continuous risk, fintech companies are continuously improving security systems to prevent such occurrences.
Through secure servers, firewalls, and strong encryption, online banking is considerably safer than banking in person.
Online Security Risks
Mobile malware, app assurance, data protection, and identity management are other security measures taken by financial institutions to ensure your money stays guarded and accessible. Online banking is generally safer than other consumer activities online, which includes many types of shopping. Therefore the security risks from online banking won’t differ too much from the risks associated with other internet activity consumers are choosing to partake in.
Advanced Security Technology
The innovative and customizable Marygold & Co. app continuously employs rigorous encryption standards to protect your money and identity – ensuring your mobile banking experience is not only convenient but safe too. Marygold & Co. knows how important security is, which is why they have added extra security features like liveness checks, to ensure you are who you say you are. More personalized services can be provided through API (application programming interface) technology that can cater to an array of needs and preferences. This innovative app provides customizable security controls, giving the customer full control and security of their mobile banking.
All Marygold & Co. customers will receive their Mastercard© Debit Card fully equipped with an EMV chip as an extra layer of security. EMV chips are specifically encrypted to stop fraudulent transactions at the point-of-purchase, proving to be effective in reducing physical card counterfeit in regions where chip cards have outdated magstripe technology. Most banking cards have the EMV chip embedded in them.
On top of the magstripe technology and the EMV chip, Marygold & Co. incorporates a third level of security and embeds all Mastercard© bank cards with NFC chips (Near Field Communication). This NFC chip is the highest form of security available. These chips support tap and pay transactions that don’t require signatures or PIN numbers. An NFC chip is an innovative card chip technology that provides a secure method for businesses and customers to exchange and store credit card and debit card data. On top of embedding your card with an NFC chip, Marygold & Co. provides wearables items, such as bracelets and keychains, with the embedded NFC chip as well. Simply tap your item near the card reader and boom, transaction made.
Turn Card On & Off
One of the cutting-edge security features offered to Marygold & Co. customers is the ability to toggle a card on and off. If you’ve ever misplaced your bank card, you’re aware of the panic that overwhelms you at that moment. “What if someone finds my card and spends all my money?” is probably a thought that has crossed your mind. Thankfully, this innovative security feature allows you to disable your card through the app, preventing unauthorized purchases from being made on your account while you try to locate your card. Nothing is worse than ordering a new card and then finding your old one in between couch cushions.
Additionally, all accounts with Marygold & Co. are FDIC insured, meaning your funds are federally protected against bank failure or theft. You can rest easy knowing your funds are insured and safeguarded with a government-backed guarantee.
Online Security Tips
Although there are advanced technologies in place to protect you and your money, it’s essential to remain vigilant when using technology to manage your finances. Using secure connections and avoiding public wi-fi are extra ways to protect your account. Weak passwords can also make your account vulnerable to cyber-attacks; therefore, it’s crucial to stick to a challenging password but also something you will remember.
Online banking offers you 24/7 access, so frequently logging into your account may also make your account better at deterring any security threats. App users can easily access their recent purchases and transactions on their mobile devices and can enable transaction notifications, helping them track the movement of money in real life. Regular monitoring can help detect any changes or suspicious activity quickly. If you happen to catch any suspicious activity, make sure to contact your bank immediately.
Customizable Security Dashboard
Ultimately, online banking can give you a single view of all your finances while controlling and tracking all transactions in one place. Advanced technologies are making it easier for customers everywhere to stay safe while banking, but like with anything on the internet, individuals must remain careful.
Marygold & Co. holds the highest security standards to provide you with all the advantages fintech technology has to offer. This convenient and trailblazing app will give you access to your bank from the comfort of your home and an array of customizable security features, providing you with a banking experience that caters specifically to you.
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.
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.
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.
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.
There are many reasons to save money. It’s not just because some wise philosopher said, “Take care of the pennies and the dollars will take care of themselves”. It’s also not just because your parents advised you to “save for a rainy day” although they are both right. Those lessons on how to put money aside each month will soon pay off.
Why Set Aside Money?
You’ve probably heard about a rainy day fund or an emergency fund. It is important to have money set aside for emergencies like losing your job or a huge car repair bill to protect yourself from potential financial ruin.
Potential negative scenarios are not fun to think about, but they are necessary to plan for. Injuries, accidents, and illnesses occur. A savings fund should cover your living expenses for a few months until you can get back on your feet.
In tough economic times, having savings allows you to “weather” financial unrest.
Retirement is another good reason for building a nest egg. You don’t want to find yourself at seventy, too old to work but too broke to be able to enjoy retirement. Sixty-four percent of Americans don’t plan for retirement and the average American can’t save enough to retire comfortably.
What Gets in the Way of Saving?
An adage states, “If you fail to plan then you plan to fail.” The number one impediment to saving is not creating a budget.
The next problem is not sticking to your budget. When you aren’t maintaining your budget, people find themselves robbing from their savings account to meet emergencies or to pay monthly expenses.
Overspending on nonessential items is another problem we can all struggle with.
Let’s face it – sticking to a well-prepared budget is hard work. It takes the fun out of spontaneous purchases. However, disciplined saving brings peace of mind and long-term happiness.
People who often run out of money before the next paycheck may have an inaccurate or poorly thought out budget or they may have no budget at all.
To ensure you stay within your means, create a careful and accurate list of all your expenses.
Start with the essentials (rent, food, medical, etc.) Set aside the total amount each month to cover these essential costs.
Next, take the remaining amount and divide it amongst your non-essential categories (entertainment, luxuries, vacation, etc.) Now you see where your funds are being allocated. Do not exceed it.
Do not overspend.
Those little luxuries like morning coffee, wine, or dining out can mount up. Paying for them in cash will help avoid overspending. When the cash reserve is gone, buying your luxuries are too.
Create safeguards to keep you from robbing your savings. Actions like cutting up your credit cards could help deviate overspending. Ask your bank about safety measures to stop overspending.
Subdivide your savings into categories like Christmas gifts, retirement fund, kids’ education, family vacation, and entertainment. Every dollar you put into savings should have a label. This makes it harder to borrow from it.
Set aside an emergency fund that is separate from savings and household expenses. When your fund has roughly three to six months to cover your essential expenses, then you don’t need to keep feeding it.
Set a reasonable saving goal. Do the math. If you make $5,000 a month, and your living expenses are $3,000, you can’t possibly expect to set aside $2,500 in savings. It just isn’t there. Decide what is reasonable and proceed. Be consistent.
To ensure you stay consistent, try using an app to keep track of your expenses. An app like Marygold & Co. helps support and track your goals and funding options all within one place. With Marygold & Co., you can create custom Money Pool Savings Accounts to oversee the different accounts. These Money Pools help organize your finances all in one place while displaying your progress towards each prioritized goal.
No matter how long or short a time you have been earning, initiate and continue a savings plan. Your targets may change but there will always be reasons to save.
The Percentage Method of Saving
Instead of thinking of savings as dollar amounts, save a percentage of your net income each month by using the 50/30/20 rule.
Senator Elizabeth Warren reportedly referred to this method when she was teaching bankruptcy law and popularized it in her book. The rule is to divide up after-tax income then allocate the amount to spend by reserving 50% on needs like rent and food, 30% on wants like entertainment or luxuries, and 20% towards savings. Thus, you should aim to save 20% of your after-tax paycheck each month. You may have to adjust this percent, but use the 50/30/20 rule as a guideline.
The Easiest Ways to Ensure Savings
- Record every expense—no matter how large or small. Organize data into categories: gas, groceries, insurance, entertainment, and mortgage. Consider using a tracker app from your financial institution.
- Allocate 10 to 20 percent of your income into savings and investment accounts. Set clear prioritized goals with timeframes and target amounts.
- Look for ways to cut expenses.
- Find free or lower cost events in your community as alternative entertainment, to reduce entertainment spending.
- Cancel subscriptions and memberships if you are not making good use of them. This includes things like Netflix, Crave, and Prime.
- Make the event of eating out a special event and place it under your entertainment category. Eat and cook at home when you can. You will eat healthier and cheaper.
- If you think you need something, step back and think about it for a week. Your perspective on nonessential purchases may change.
- Think about fixing up rather than trading in.
- Set clear achievable goals. Give yourself confidence in your saving ability by setting a fun goal for you or your family. The achievement will reinforce your saving habit.
- Learn to set priorities with items for which you’re saving. For example, if your roof is going to need repairs, your car is getting old, or your washer is on its last leg, you know you need to start saving for those imminent costs.
With a mobile banking services app like Marygold & Co., you can arrange for an automatic deposit from each paycheck of a set amount into each “Money Pool” savings account you set up to give you direct control over how you reach each goal.
Money Pool Savings Accounts
Money Pool savings accounts help you organize your finances, establish goals, and set priorities.
How does it work? Money Pools align with your short-term and long-term savings goals. This is an organized and easy way to create and follow individual savings goals. Establishing these individual goals gives you direct control over how you reach those goals. The Money Pools define the target and the timeline of each specific goal. You can instantly track your progress each time you log in and prioritize your financial goals.
The returns on your Money Pools coincide with when the money is required to meet those established goals.
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.
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.
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.
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.
Life happens and we’re not always prepared for it financially. That’s why it’s important to keep an emergency fund as well as a savings account – and to know the difference between the two. Here we explain the difference between an emergency fund vs savings.
What is an Emergency Funds Account?
An emergency fund is an account into which you deposit a sum of money earmarked for major, unexpected expenses. These might include car repairs, unexpected medical expenses, home renovations caused by a fire or a flood, or unemployment.
What is a Savings Account?
Where checking accounts are intended for paying bills, savings accounts allow you to deposit money and get paid interest on it. Savings accounts let you deposit and withdraw money as often as you wish. You can do it through visiting your bank, at an ATM, move money from one account to another by using online banking, or make payments via a debit card or e-Transfer.
Savings accounts are not intended to be used for day-to-day expenses. They are not emergency funds, they are goal-oriented accounts. That’s the main difference between an emergency fund vs savings accounts.
A savings account is normally a general account where you save for several purposes. However, you might also have several different savings accounts opened which are designated for big-ticket items like a house or renovations and then another account earmarked for Christmas gifts, college education, vacation, and/or retirement.
There are regulations and rules with every savings account. This includes the number of allowed monthly transactions, the minimum amount of cash that must remain in the account, the number of transfers allowed, etc.
With most savings accounts, you can deposit and withdraw money whenever you want. This can be done at any bank branch, at an ATM, online, via email, or through money transfer.
There are so many different kinds of savings accounts that it’s difficult to choose which type. These might include: business savings account, youth savings account, seniors’ savings account, registered savings account, registered retirement savings account, or tax-free savings account, or you can create your own customized savings account.
These accounts also don’t earn as much interest as a GIC, a stock, or a bond, Therefore, they are not necessarily intended for long-term investments.
How Does an Emergency Fund Differ from a Savings Account?
An emergency fund is actually a special savings account. It should be used only for those situations deemed family or household emergencies. The main difference between an emergency fund vs savings is what you use the funds in each account for. Savings should be something you expect to spend on, something you are saving towards.
How Much Should be in the Emergency Fund?
Financial experts suggest that your emergency fund has no less than the amount to cover three months of basic living expenses. Six months of living expenses is a better cushion.
RateHub.ca explains how much to set aside.
Once that amount is in your emergency fund, it is not necessary to add more each month.
Can You Have Too Much in an Emergency Account?
BankRate.com contends that you can, indeed, have too much in an emergency fund.
Use this as a good measuring stick: If you have more than enough to cover six months of basic living expenses in your emergency account, then it is time to consider investing the money in places like stocks, bonds, or high-yielding GICs.
If you are so focused on your emergency fund that you aren’t saving for other things, it may be time to reassess your savings goals.
If you don’t have enough to cover basic living costs each month, then you might need to hold off on adding to your emergency fund until you can afford it.
How much is too much? It depends on your ability to save. It also depends on your comfort level. Consider what emergencies your family might face. Then, decide if your “rainy day” fund can cover those imagined crises. If you feel worried that it cannot, you need to increase your emergency fund.
Why Open a Savings Account?
Savings accounts pay interest where checking accounts do not. If you have money you wish to set aside for special occasions, a savings account earmarked for that purpose is a good way to save for a vacation, college, retirement, or a new vehicle.
While savings accounts pay only a little interest, this is a no-risk income, unlike stocks or bonds.
Advantages and Disadvantages to Savings Accounts
Savings accounts allow you to set aside money each month for purchases such as Christmas gifts or a vacation, retirement, or a college fund for your children.
Using your savings account, you can perform many transactions including:
- Making deposits
- Making withdrawals inside the bank or at an ATM
- Using a debit card to purchase items
- Paying bills
- Transferring funds
- E-mail transfers to individuals or businesses
Cons of using your savings account:
- While savings accounts pay some interest, it is not significant
Interest on a savings account is taxable. Often the interest paid does not keep pace with the rate of inflation.
Is an Emergency Fund a Good Idea?
In every household, things happen. Appliances break; the car needs new tires; little Cindy broke her arm; the roof is leaking.
An emergency only becomes a crisis when there are no allocated funds in your budget for medical supplies or that new roof.
The downside is that savings accounts—emergency and otherwise—don’t keep pace with inflation. This means that an emergency fund is a money-losing proposition. But, what are the alternatives?
Marygold & Co. Money Pools
Once people become wage earners, they should start to budget their income so bills are paid, savings are set aside for projected purchases, an account is established for unexpected emergencies, and a retirement fund is created.
Most earners find this is easiest to set up and continue if they have separate accounts for paying the bill, saving for big-ticket items like a house or a car, and putting money aside for retirement and emergencies. Some even open accounts earmarked for vacations, college for their kids, Christmas gifts, and/or home business.
What is a Money Pool?
It is an organized way to create various accounts and earn interest on them. This offers banking clients the ability to connect their accounts and customize their savings options.
Starting soon, Marygold & Co. will release its Money Pool innovation. Clients will be able to create multiple, FDIC-insured accounts which will help meet their budgeting goals and earn interest.
With a Marygold & Co. Spend Now Account, you can manage your money with introspective account notifications, automatic custom savings features, early payday perks, customized security features, and more, without worrying about paying ridiculous hidden fees.
For more information about Marygold & Co. Money Pool savings accounts and the app that supports your customized goals and saving options, you can read more about money pools on our blog.
Gone are the days of having to rush to the bank after work to deposit your check or get cash.
Cell phones do it all nowadays, including saving you time from having to go to the bank! The future of mobile banking is here, but even that technology continues to evolve and improve.
We have seen how mobile banking has shaped the way people around the world manage their money. Nowadays, it’s safe to say that the majority of Americans use some form of mobile or online banking as a way to access their accounts. Like online banking, it allows you to safely transfer funds, pay the bills, find ATMs, and find branch locations – all from the convenience of your mobile device.
The last decade has shown us that while mobile banking is relatively new, the trend is moving away from physical locations. Banks are changing and, as a result, the way we manage our finances is evolving. Companies like Marygold & Co. are looking for ways to adapt so that customers who want new features and services can stay “on the go.”
How Mobile Banking is Evolving
Considering how far mobile banking has come, what does the future of the fintech industry look like? Let’s take a look at the evolution of banking in the past to better understand where mobile banking and the industry are heading.
Drive-Thru Teller Service
The first real breakthrough was the “drive-thru.” People no longer had to park and walk in to possibly wait in line. They could accomplish everything they needed to do from the comfort of their car.
Next was the Automated Teller Machine, aka the ATM. This saved both the customer and the banks a lot of time. Customers can arrive and deposit/withdraw whenever they need to. In turn, fewer tellers/bankers are standing around waiting for the customer.
The biggest game-changer was the Internet. Being able to view your account remotely opened up the door for mobile banking to come in and introduce a plethora of new features. Customers have come to expect highly-personalized and engaging experiences.
There are plenty of emerging technologies mobile banking has introduced. Marygold & Co. will not only meet customer expectations but create a better customer experience. More convenience, more support, and more features. Some of the following are examples of how mobile banking has evolved and what to expect from future mobile banking:
More Security Features
With the emergence of new technologies comes the possibilities of new risks. Companies like Marygold & Co. have found a way to ensure your money is both safe and accessible. Having the ability to not only view what purchases you’ve made but also allow certain transactions depending on location help keep customers mind at ease. With that comes the ability to restrict it from being used internationally.
Security features like these allow for customers to feel safe and in control. Another helpful feature is the ability to toggle misplaced cards on/off. With a simple swipe, you have the ability to either find your card or avoid a phone call to automated machines. Having control like this can mitigate the risk of fraudulent charges.
Money (Saving) Pools
Marygold & Co. have improved on the idea of Money Pools and combined them with saving accounts. This can allow for both, short/long term financial goals to be met with reduced risk.
They allow for a more sophisticated investment structure – meaning you can earn more than a basic savings account while being FDIC insured. This is critical for anyone with long-term and short-term financial goals.
Banking had become truly mobile and moving towards a more efficient future. Not having to carry cash or even a wallet is now an option.
We are now at the point where the clothes and accessories you wear include payment options. It’s as simple as waving or tapping any wearable to make a transaction.
Reaching for a card or phone is an extra step that technology has the ability to eliminate. NFC technology (Near-Field Communication) is a step towards the future. The way it works is deceptively simple, using short-range radio waves to communicate compatible devices. This technology has been used for a while in a variety of different industries. Now it’s pushing the needle forward on how banking handles payments.
Payroll is Easy to Receive
If you think debit and credit cards are a thing of the past, wait till you hear about Marygold & Co.’s direct deposit features. Having the ability to get paid as soon as the date hits without needing to go to the bank is one of the most innovative features. For decades, people have had to deal with having to wait to cash in on their hard-earned money. Your employer having the ability to pay instantly comes with all the advantages and no downside. It’s extremely simple to set up, which also makes it fast. On top of that, you eliminate the risk of stolen or lost checks. What really sets this apart is that it offers incentives like waiving monthly fees, meaning it’s free. Marigold & Co. does not charge you to sign up for direct deposit.
Send and Receive Money Seamlessly
Employers sending you money directly isn’t the only innovation. Receiving and sending payments from anyone with a smartphone is now available from the palm of your hands. Anyone with a cell phone or email has the ability to make mobile payments in an instant. It is safe and has added layers of security. Biometric scanners and face recognition allows for secure and seamless transactions between friends, family, landlords, and more.
Marygold & Co.
Enter: Marygold & Co. Now money doesn’t grow on trees, but Marygold & Co’s banking app features will make your money “flower.” That is to say that by using Marygold & Co, you’ll get the most out of your money. The Marygold & Co app gives you access to your money from the tips of your fingers. It is convenient and innovative, giving you access to many of the new features mobile banking has brought into the finance world.
As a recap, here are some of the benefits you can receive:
- FDIC insured accounts
- No-fee ATMs
- Interest-earning savings account
- Easy money transfers
- Get paid early
- Customized security
**Marygold & Co. is a financial technology company and not a bank. Deposits insured by the FDIC, up to the allowable limit by our issuing and deposit bank partner(s).
**Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
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