Breaking Out From Financial Paralysis

Whether the problem is being house poor, a layoff, overspending, or too little money chasing too many expenses - the result is often paralysis, the inability to do anything to combating financial paralysis.

REMEMBER, start small, build confidence and bigger things will follow. Reinforce your success by stashing the daily savings in a piggy bank, jar or sock and plunk it on an outstanding debt every week. The next step is to aim for something bigger - AXE unnecessary spendings (ie gym membership, do your own nails, chop extra services on your cell or land line, reduce your tv package, etc).

Take heart. Baby steps are all you need to eliminate financial paralysis.

Protect Yourself From Fraud

March is Fraud Prevention Month, which is a good time to focus on how you can help protect yourself through good banking and shopping habits.

Although banks have sophisticated fraud prevention centers that work with local law enforcement to investigate fraud and find those responsible, it's in your best interest to follow some simple steps to protect yourself against fraud:

1) Shred before recycling - one of the best way to protect yourself from identity theft is to shred or destroy your transaction records, bills and bank statements when you no longer needed.

2) Your PIN is your secret - selecting a personal identification number (PIN) that's easy for you to remember but difficult for others to guess is one way you can ensure your banking information remains secure. Avoid the obvious like your telephone number or date of birth. Additionally, shield the keypad everywhere you use your debit card and never give out your PIN over phone, internet, or by email. No one should know you PIN but you - not event your bank knows it.

3) Guard your cards - Unless you are the one initiated the call, don't give out your credit card number over the phone and never send the number by email, even to your family members. Email is not secure and it is possible for others to see what you are transmitting.

4) Never respond to an email request for personal or account information - reputable merchants will not ask you to confirm your credit card details by email. Enter your credit card number through secure website only. Also, watch out for "phishing", where you receive a fake email that looks like it is from your bank asking you to confirm your personal information. If you receive something like this, delete the message and do not open any attachments. Also, note that your financial institution would never request personal information through email.

Savings Tip

Maximize Your Contribution:
1-start investing now (starting early, even with a small amount)
2-diversify (saving account, low-risk investments & etc)
3-contribute monthly (even a modest amount)
4-be patient (your money will grow even at a snail's pace)

Set-up a rainy-day fund before you need it. The *Rule of Thumb* suggest having an emergency reserve equal to about 3 months' income, but if your income is irregular or you have extra financial commitments, aim for 5/6 months' net income.