by MSE Staff | Published 1 Mar 2022 

It is Sunday evening, and you are visiting a festival in another town. It happens once a year and the food is out of this world. Waiting in line feels like agony but you finally get to the register. “We only take cash,” they say. A wave of embarrassment rushes through you. Of course! How could you forget! You walk over to the ATM and wonder if this will result in out-of-network fees. You are not even sure how much it will cost you. Thankfully, you saved for the festival throughout the year, and it will not be a problem.

 Deciding where to bank can include a lot of caveats like when and where you can access your money and any costs associated with managing your money. In this post, we will identify key differences between banks and credit unions so that you can be prepared in the future.

What Is a bank?

A bank is a for-profit financial institution that offers financial services like check cashing, checking accounts, savings accounts, direct deposit, online banking, branch banking, and automated teller machines (ATM) to name a few. Banks vary in size from small organizations to large organizations. A key feature of larger banks is convenience. They have vast networks with branched banking and ATM services in multiple countries. Of course, for-profit banks view you as their customers and aim to make money for their shareholders and investors. This means that banks generally have more expensive fees than credit unions which we’ll cover next.

What Is a Credit Union?

A credit union is a non-profit financial institution that offers the same types of services that you would find at a bank. And much like banks, credit unions vary in size with large and small organizations. However, credit unions focus on serving their community. They may have agreements with other credit unions to extend branched banking and ATM services to other communities. However, you may be required to be a part of that credit union’s community in order to become a member. Since credit unions are non-profit, their fees generally cost less than banks and they re-invest money they make to serve their members.

Final Thoughts

Choosing where to bank really does have an impact on our daily lives. As life circumstances change, you may want the convenience of a bank or the reduced costs of a credit union. Take a look at how often you travel and consider what you’re most comfortable with. Analyze and evaluate the fees and services offered by your prospective bank or credit union to see which one is a best fit for your lifestyle. It may take some due diligence on your part, but the peace of mind that comes with it will pay off the next time you need to use an ATM!

by MSE Staff | Published 15 Feb 2022 

As the 2021 tax filing deadline rapidly approaches, individuals and families alike are starting to think about their taxes. In this blog post, we will explore four major areas of taxes for personal finances: tax liability, taxable income, tax credits, and tax deductions. Each of these concepts is important to understand in order to make the most of your short-term and long-term financial planning. Keep in mind that this information is specific to individuals living in the United States; other countries may have different rules and regulations when it comes to taxation.

Tax Liability:

Your tax liability is the amount of money you actually owe in taxes for a given year. It's calculated by taking your taxable income and subtracting any applicable credits or deductions. If this number ends up being less than zero, then you will receive a refund from the IRS instead of paying more in taxes.

Taxable Income:

This is the amount of income that is subject to taxation. It's calculated by adding up all of your taxable sources of income and then subtracting any applicable exemptions or deductions.

Tax Credits:

Tax credits are a dollar-for-dollar reduction in your tax liability, and they can be claimed for a variety of reasons such as having children under the age of 18 or paying someone to take care of them while you're at work. There are three types: refundable, non-refundable, and partially refundable credits which we'll discuss below.

Refundable Credits - If your tax liability is less than $0 because these credits exceed your taxable income, then some portion (or all) will be paid to you as a refund.

Non-Refundable Credits - These credits can only be used to reduce your tax liability down to $0; any excess amount is not refunded to you.

Partially Refundable Credits - If your tax liability is less than $0 before because a portion of these credits exceeds your taxable income, that portion may be refunded up to a specified amount of the remaining credit.

Tax Deductions:

Tax deductions are expenses that you can subtract from your taxable income in order to lower your tax bill. There are two types of deductions: standard and itemized.

Standard Deduction - This is a fixed amount that everyone gets by default without having to provide any additional documentation or information about their finances/spending habits.

Itemized Deductions - These are expenses you have incurred over the course of the year which may be deducted from taxable income if they meet certain criteria. These expenses include things like mortgage interest payments or charitable donations, among others. Sometimes the total amount of itemized deductions doesn't exceed the standard deduction. It's important to hire a tax preparer you can trust to avoid overpaying taxes.

Final Thoughts

In sum, it's important to understand these four major concepts of taxes in order to make the most informed financial decisions for your future. Consult with a tax preparer if you have any questions about how these concepts apply to your unique situation; they can help you save money and avoid penalties from the IRS. Thanks for reading!

by MSE Staff | Published 6 Nov 2021 

Managing your money can be a challenge. It is not always easy to stay on top of the daily tasks that are required for managing your wealth. Curtis Banks, Wealth Mentor and Financial Educator, shares his Managing Money Tips with readers in order to help them manage their finances better. For those who want to build wealth, this article will give you some great tips that will help you get there faster!

Money Tip #1: Personal Development

Your ability to make sound financial decisions depends heavily on your financial knowledge and skills. This is known as your financial capability. A big part of your financial capability is your personal development. This includes things like improving your knowledge about finance, learning new skills and building better habits that will lead you to success in the long run.

Money Tip #2: Schedule Time to Review Your Accounts

Imagine you're reviewing your bank statement for the first time in over 6 months, and you notice that fraudulent charges started occurring 4 months ago. You promptly place the account on hold and attempt to get your money back. However, you may not get any of your money back if you report it beyond the 60-day limit according to the FDIC. This reporting timeline may change from country to country. However, it's important to review your accounts well within that timeline. There are a plethora of free calendar apps available that you can use to set reminders. Carve out time and honor it. Review your accounts regularly for accuracy.

Money Tip #3: Automate Your Money Management System

You've created a money management plan using Curtis Banks' Money Smart Allocation System. Depending on the payment options provided by your employer you may be able to have a portion of your income automatically deposited to meet your savings goals. As for your banking institutions, they may offer automatic transfers and automatic bill payment. All of these tools are useful in helping you manage your money and avoid fees.

Money Tip #4: Wealth Mentor (Your Team)

Managing money tips are an excellent resource for building financial awareness. They provide broad educational benefit to readers. A wealth mentor goes above and beyond providing education and resources specific to your individual needs. Because a wealth mentor is someone who has accomplished what you have set out to achieve, a wealth mentor is an indispensable member in your team of experts.

Have you identified who your wealth mentor could be? Curtis Banks has mentored tons of people on how to build wealth. If building wealth is one of your goals, feel free to book a discovery session to learn more about working with Curtis Banks.

Money Tip #5: Payoff Credit Cards Monthly

Curtis recommends that you pay off your credit cards every month to avoid carrying over a balance. This is an important strategy to avoid paying more and more money on interest. By paying off your credit cards every month you're freeing up money for growth opportunities. Additionally, keep each credit card balance within 25% of their credit limit and do not exceed 25% of your total credit limit. Your utilized credit shows up on your credit report and ultimately affects your credit score.

Money Tip #6: Have Adequate Insurance

Insurance is meant to protect you from financial hardship when pre-defined conditions occur. Insurance is a financial product with a variety of options in the marketplace. There are a variety of insurance products ranging from unemployment to healthcare and beyond to help reimburse you. Be a savvy shopper. Shop around for products that offer you an adequate amount of protection at an optimal price. Revisit your plan periodically to ensure that you're getting the best coverage and the best rates.

Money Tip #7: Buy Cash Producing Assets (Passive Income)

Do you plan to work forever? While the type of assets you purchase to grow your net worth should align with your financial goals, it's important to focus on assets that pay you in addition to growing in value. The benefits of cash producing assets have a snowball effect as you buy more and more. It is possible to replace earned income with income from cash producing assets. This can translate to more freedom to pursue other passions you have. Talk to your team of advisors and make a plan for passive income.

Money Tip #8: Grow Your Network

It's said that we are the sum of our social circle. Growing your network of mentors and mentees aids in the personal development of you and those around you. Don't limit yourself by being an island, look outside your immediate circle and expand on the wealth around you so it can be passed down to the next generation.

Money Tip #9: Leverage Tax Deductions

Working with a credible tax advisor and tax preparer can help you keep more of the money you make. Curtis Banks says that it's important to plan ahead and keep a record of deductible transactions. It's important to note that every tax situation is different. Please consult with your team of experts on how this applies to you and your unique financial goals.

Money Tip #10: Be A Savvy Shopper

Curtis says that being a savvy shopper is an important money management tip. Chances are the thing that you’re interested in purchasing is available at a better price from another seller. Comparing prices can save you money. Finally, be patient when shopping. The things you want to buy will still be there in a few days or weeks if you’re willing to wait for the price to go down.

We hope that you have found this article helpful in your journey to better manage your finances. If you want help from a wealth mentor who understands the challenges of managing money, we invite you to book a free discovery session with Curtis Banks. He is looking forward to meeting with you and helping make it easier for all those who are seeking financial freedom!

by MSE Staff | Published 03 Jul 2021 (Updated 5 Nov 2021)

In my earlier years, I noticed that there were seldom clear and concise instructions for how to build wealth. There were plenty of self-help books and books on how to budget. However, no one had put all of these things together to paint a complete picture. I did just that when I wrote The Book on Money Management which teaches the three secrets of money management and how to build a foundation for wealth. Today, I want to condense everything down into a wealth building checklist that you can use.

#1 Allocate your after-tax income using the Money Smart Formula.

The Money Smart Formula is part of the Money Smart Allocation system. When you apply the Money Smart Allocation system, you actively contribute 55% of your income to generating wealth. Unfortunately, a typical budget doesn’t set the conditions for building wealth. A budget typically focuses on cash flow each month. Positive cash flow each month is important, but it is not the big picture. The Money Smart Formula ensures that you are focusing your income in the right areas.

#2 Grow your cash flow to maximize the amount of money you keep for investment opportunities.

This may seem like an obvious thing, but many people miss this. Life is good when you have positive cash flow at the end of each month. Life is even better when you have a plan for that positive cash flow that builds wealth. What would you invest in with your positive cash flow? Make a plan to grow your money so that you can enjoy the economic security and freedom of choice that comes with wealth.

#3 Grow your net worth to build a foundation for wealth… Generational wealth!

Building further on checklist items #1 and #2, you should focus on growing your net worth. Consider where you were 10 years ago. How much has your net worth changed since then? Growing your net worth is the milestone for building wealth. Stay focused on growing your net worth and your financial wellbeing will increase along with it.

#4 Invest in assets to grow your net worth. Your assets should grow year over year to produce more income and net worth.

Are your investments growing your net worth at the right pace? It is wise to be selective about what you invest in. This is something that I want everyone to be critical about. While it is important to allocate 55% of your income for investments, your investments should include assets that produce more income and grow your net worth. Selecting the right investments comes with learning, understanding, and practice. Most importantly, selecting the right investments becomes easier when you have a mentor who is willing to guide you.

#5 Build and leverage a team of experts to advise you.

Those who take advantage of financial advisors in their financial planning outperform those who don’t. It’s common sense to consult an expert when making financial decisions. However, many people choose not to consult a financial advisor either because they don’t know any better or they believe they know more than the experts. Regardless of the reason why, the results are predictable. Be Money Smart and leverage the advice of experts.

Get the complete Money Smart Wealth Building Checklist.

So far we’ve covered five of the 10 items on this Money Smart Wealth Building Checklist. Can you feel the difference it makes when you have clarity? Request a FREE copy of the Money Smart Wealth Building Checklist when you attend a virtual coffee with Curtis.