To help navigate what may be treacherous waters for many when it comes to personal finance, today on the Rules of Thumb blog from MoneyThumb we are sharing below 5 money experts to follow who will help guide you concerning your finances. We've been careful to include more than just the usual suspects like Dave Ramsey and Suzie Orman to make sure the guidance you receive is not regurgitated:

Danetha Doe--“Doe is a personal finance expert.” -Wall Street Journal and Fast Company. Her work has been featured in Entrepreneur, Elle, The Chicago Tribune, Cosmopolitan, NBC, and more. Danetha Doe has one mission: to elevate the self-worth and net worth of women. Doe is a Jamaican-Ghanaian money mentor, writer, entrepreneur, and the creator of Money and Mimosas, a financial well-being resource and social club for influencers, bloggers, and creatives. The San Francisco-based personal finance expert also starred in the web series “Going From Broke,” produced by Ashton Kutcher, which got over 12 million views in its first season, according to her website.

Jully-Alma Taveras--Also known as Investing Latina, Ms. Taveras shares personal finance tips and tricks through her YouTube channel and Instagram account. In her videos, Taveras speaks about her own financial journey (she’s the daughter of immigrants from the Dominican Republic), how anyone can become an investor, and topics such as budgeting, saving, and relevant financial news. She’s also a contributor to NextAdvisor—check out her latest story, where she shares how she calculated her “survival number” of $581, which represents the bare minimum amount of money she needs to get by each month. She includes a downloadable spreadsheet to help you calculate your own survival number.

Erin Lowry--Helps millennials “get their financial lives together” by offering advice on how to make more money, get out of debt, and build savings. Through her “Broke Millennial” blog, books, lectures, and workshops, Lowry tackles questions like whether you should share personal financial information with your partner and how to manage student loan debt after college. She’s also a contributor to NextAdvisor and offers advice on how much to save for retirement in uncertain times. “Whatever your nest egg goal, this shouldn’t be a ‘set it and forget it’ situation. You need to check in on your goal as your life changes,” Lowry writes.

Jill Schlesinger--A certified financial planner and Emmy-nominated business analyst for CBS News. She regularly appears on CBS radio and TV stations across the country and is the host of the “Jill On Money” podcast and nationally syndicated radio show. Schlesinger has a talent for breaking down complex personal finance ideas and topics into understandable, relatable themes. She not only tells you what you’re doing wrong and how to fix it—she tells you why, too. She’s recently written an article for NextAdvisor about the importance of having a will and other essential estate planning documents in place during the pandemic, and has also shared her thoughts on mortgage forbearance options, refinancing, and how much you should have in savings.

Ramit Sethi--A New York Times best-selling author and founder of iwillteachyoutoberich.com, which focuses on strategies for investing and earning more. Sethi doesn’t believe in saying “no” to spending on everything, so he won’t shame you for buying lattes or avocado toast. Instead, he encourages big-picture thinking—moves like getting a raise or starting a side hustle that can have a transformational approach on your wealth. Sethi teaches readers how to make financial choices that align with what they value most, so his definition of “rich” is subjective. He spoke to NextAdvisor about the importance of having an emergency fund--he recommends saving three to six months of expenses during non-pandemic times and a year’s worth of expenses given the current pandemic and financial crisis.

We hope you get a lot of great financial advice from the above-listed finance experts. We would appreciate it if you could share this blog post on your social media page so that your peers can benefit from the information. Also, don't forget that MoneyThumb has a PDF financial file converter specifically designed for home use and personal finance maintenance.

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I don't like to make broad statements like that without proof to back it up. Although I know for a fact that it is true, your relationship and attitude toward money determine how it works for or against you, the moment I wrote the above paragraph I knew I needed some factual backup, so below I have listed opinions and facts from the money experts:

Financial guru Suze Orman sums it up best. “People really do not have a clue at all,” she says with deep conviction. “They think the reason they are miserable — that they are an emotional wreck — is because they have absolutely no money. They honestly think that if they had more money they would have fewer problems. The problem is that it’s not true! The reason they don’t have more money is because of how they feel about their life and who they are. Who you are determines what you have and get to keep. You define your money. You define the things around you. But money and the things around you can never truthfully define who you are.”

9 Facts About Money, Love and Happiness by PSYCHOLOGIA

Also, here is the link to a test courtesy of BBC that tells you what your relationship with money says about you.

All in all, yes, our attitude toward and relationship with money CAN and WILL determine what financial success, and to even stretch it a bit further, personal success, looks like in 2018.

The post Personal Finance: New Year, New Attitude Towards Money appeared first on MoneyThumb.

Today the Rules of Thumb blog from MoneyThumb is going to be brutally honest. When we talk about money, many of us cringe at the thought. Not because we don't have any, or that we have a lot, but because money and our relationship and that of our families with money is for the majority of people a private, personal matter, and nobody else's business. That is one freedom we have that belongs strictly to us. How we choose to spend and save, or not save, our money.

However, one of the joys of reading blogs and articles online is that it is also very personal and can be anonymous, and therefore we can be assured that the following information is yours to read, use, save, or even disregard., with no one the wiser.

So let's get to it. What is your true relationship with money? And if you find the relationship is unhealthy, how can you go about changing it? Hopefully the research we have put into this article and the advice we offer here will help you decide if your relationship with money is good or bad for your particular situation and you will come away with a new found respect for money and your power over it.

What is Your True Relationship With Money?

One thing we know for sure; what you put out into the universe is what you get back. There is no other way it can work, the universe is neutral, so if you decide you are poor and concentrate on lack, the universe, designed to give you what you desire with your thoughts, will deliver in kind.

Not to get all metaphysical, just stating fact. Whatever we think about money is what our reality will be. Many gurus have said it, and it is so true, "Change your perception and you change your reality." Your thoughts are your perception, and therefore your reality.

Let's also face another truth; We live in a world where presentation is everything. Nice car, nice home, nice clothes, money to burn, isn't that the totally American dream? How about starting with changing THAT mindset? We are never what we have, and if we think that is the answer we will always be sorely disappointed. Money DOES NOT buy happiness. Cliche? Maybe, but many cliches are true. There are many wealthy people who are miserable and very poor people who are filled with joy. You are probably thinking, whatever! So I will stop the philosophy lecture and go straight to the heart of the matter.

When I decided to write this blog post I did some Googling. First I typed in "why poor people stay poor," and then, "why rich people stay rich." Simple enough. The results of my research are as follows:

This article from Linda Tirado at Slate.com is right on target with what I have stated above. The article is an excerpt from Ms. Tirado's book, Hand to Mouth: Living in Bootstrap America. "It’s amazing what things that are absolute crises for me are simple annoyances for people with money." This one sentence really struck home with me. Growing up, we were poor, and I can remember my daddy saying,"Chicken today, feather tomorrow." What that meant for our family was, since there was never enough anyway, why not enjoy yourself a bit? Makes me think of poor people spending money they don't have on tons of lottery tickets. Sadly hoping they might for once get lucky. But they might as well wish to be struck by lighting. This mindset is self-defeating, of course, but I am sure there are many people living in a state of lack who feels this way.

If you find yourself living in a mindset of lack, please take a few minutes to read the above article in full. It really can change your life.

As far as the answer to my second inquiry on Google, "Why do rich people stay rich?" Kind of self-evident, isn't it? It has been said millions of times that it takes money to make money, and that is the formula used by the wealthy. I did find this particular article that I really like from WomenCEOProject.com. The author has worked extensively with self-made millionaires, so her advice is wealthy in experience. The article is titled, "23 Ways Rich People Stay Rich."

At the conclusion of the article, the author states, "Soooo after reading what the rich folks do, I’m sure you’re wondering about the rest of us blokes…what should we be working on to get to that level. Well, since I’m in the growing phase, I can tell you, that I have not gotten to that level, but I am definitely headed there, first, by claiming it, second by knowing that I deserve it, next, by learning where I make mistakes ( shopping ) and instead, making better decisions that will ultimately lead to my goals.

The fact is, we CAN change our mindset and relationship with money. Hopefully this article will help you reach beyond your comfort zone and attempt to change the reality of your situation, by changing your perception.

Have a great weekend!

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Out of simple curiosity, we decided to find out where this phrase, "pay yourself first" originated. Come to find out, the saying was coined by George S. Clason in his book Richest Man in Babylon. The phrase caught on like wildfire and is used by many personal finance experts, blogs, books.

Now let us explain why we here at MoneyThumb believe that consumers should always follow this sage advice, "Pay Yourself First, and how to go about doing this while still getting the bills paid and living a comfortable life.

Why You Should Follow the Sage Advice, "Pay Yourself First"

To pay yourself first means simply that before you pay your bills, before you buy groceries, before you do anything else, set aside a portion of your income to save. Put the money into your 401(k), your Roth IRA, or your savings account. The first bill you pay each month should be to yourself. This habit, developed early, can help you build a beautiful nest egg.

Why pay yourself first?

For the majority of young people, saving may seem impossible. You have rent, a car payment, and groceries: the basics. You think of saving money, but there’s just none left at the end of the month. And that’s the problem: Most people save what’s left over — left over after bills and after discretionary spending.

The problem is that if you don't develop the saving habit now, there are always going to be reasons to delay. Here are three reasons to start saving now instead of waiting until next year (or the year after):

You’re prioritizing saving

When you pay yourself first, you’re mentally establishing saving as a priority. You’re telling yourself that you are more important than the electric company or the landlord. Building savings is a powerful motivator — it’s empowering.

You’re developing good financial habits

Paying yourself first encourages sound financial habits. Most people spend their money in the following order: bills, fun, saving. Unsurprisingly, there’s usually little left over to put in the bank. But if you bump saving to the front — saving, bills, fun — you’re able to set the money aside before you rationalize reasons to spend it.

You’re prepared for money emergencies

By paying yourself first, you’re building a cash buffer with real-world applications. Regular steady contributions are an excellent way to build a nest egg. You can use the money to deal with emergencies. You can use it to purchase a house. You can use it to save for retirement. Paying yourself first gives you freedom — it opens a world of opportunity.

I’ve never met anyone who does not wish they had started saving earlier. Nobody tells themselves, “Saving was a mistake.” No matter what your age, begin saving now. And if you already save, consider boosting how much you set aside each month.

How to pay yourself first

The best way to develop a saving a habit is to make the process as painless as possible. Make it automatic. Make it invisible. If you arrange to have the money taken from your paycheck before you receive it, you’ll never know it’s missing.

Part of your savings plan will probably include retirement, but you should also save for intermediate goals too, such as buying a house, paying for a honeymoon, or purchasing a new car. Here are three easy ways to begin doing this yourself:

• If your employer offers a retirement plan — such as a 401(k) — enroll as soon as possible, especially if the company matches your contributions. Matched contributions are like free money.
• Starting a Roth IRA is one of the smartest moves a young adult can make. These accounts allow your investments to grow tax-free. Because of the extraordinary power of compound interest(and compound returns), regular investments in a Roth IRA from an early age can lead to enormous future wealth.
• Open a high interest savings account. Set up automatic transfers into this account, either directly from your paycheck or from your regular bank account. Treat these transfers like you’d treat any other financial obligation. This should be your first and most important bill every month.

We certainly hope this article has been of great help to our personal finance and consumer audience. Please share with your friends and business acquaintances on your social media channels so that they too can learn to "Pay Yourself First."

The post For Consumers: Why You Should Follow the Sage Advice, "Pay Yourself First" appeared first on MoneyThumb.

For fraudsters however, the start of a new year also marks the beginning of something much more sinister: tax identity theft season. From 2011-2014, identity thieves claimed $23 billion in fraudulent tax refunds; money that was supposed to go to legitimate taxpayers, but instead ended up in criminals’ pockets. In 2015, thieves used fraudulent tax and wage information to defraud nearly a quarter million of Americans, making this kind of identity fraud the fastest-growing type of identity theft, according to the Federal Trade Commission (FTC).

Tax ID fraud occurs when a scammer files a tax return using someone else’s personal information, then illegally collects the victims’ tax refunds. Filing a false tax return is surprisingly easy and only requires a victim's name, Social Security number, date of birth, and a falsified W-2 form. Victims often only find out they’ve been defrauded after they try to file their own legitimate tax return and receive a letter from the IRS stating that someone else already filed in their name.

The IRS has been steadfastly fighting this scam for years and they’ve been able to significantly—but not completely—reduce the amount of fraud committed. And this year, thanks to a new law, they will have more time to stop scammers before the fraudulent checks get mailed. However, this may cause a delay in some consumers receiving their refunds.

Fortunately, there are several steps consumers can take that may help reduce the risk of tax ID fraud, save money on tax preparation, and prevent filing errors on returns.

1. File early. Filing early in the tax season is the easiest way to reduce the risk of an identity thief beating you to it and stealing your refund. The sooner you file, the better. Starting January 23, 2017, the IRS will begin accepting federal tax return filings. Waiting until closer to this year’s deadline (April 18) to file gives identity thieves more time to file a return in your name, receive your refund, and take your check to the bank.
2. Get educated about the law. A new law called the Protecting Americans from Tax Hikes (PATH) Act requires the IRS to hold refund checks until February 15 for consumers who claim the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC). While you may have to wait a bit longer to get your refund check this year, the delay will help the IRS identify and stop more tax  fraud. Beware of tax preparation companies who claim to be able to get you your refund sooner than February 15. Tax preparers who promise this will almost certainly be giving you a high-interest loan that will eat into your refund.
3. Check with IRS on the status of your refund. Due to weekends and the President’s Day holiday, some consumers who claim the EITC or ACTC may not get their refunds in their bank accounts until the week of February 27. To check the status of your refund, visit the IRS’s Where’s My Refund? website ‎or take advantage of the IRS2Go smartphone app.
4. Take advantage of free tax preparation help. For those who generally make $54,000 or less, you may qualify for free tax help. Skip the high-cost tax preparation outfits and, instead, take advantage of free tax preparation assistance from Volunteer Income Tax Assistance (VITA) programs in your community. VITA programs are staffed by IRS-certified volunteers who can help you navigate this year’s delay and prepare accurate returns safely and securely. For more information and to find a local VITA site, click here.
5. Use Free File to e-file. Consumers who make up to $62,000 per year qualify for the IRS’s Free File program, which allows the use of free, name-brand tax filing software from some of the biggest names in the tax prep business.For more information, click here.

It’s critical to act quickly if you fall victim to tax ID fraud. Take these tips to help reduce the damage:

1. Once you receive the letter from the IRS informing you that someone has already filed a tax return with your Social Security number, file a 14039 form with the IRS and follow the submission instructions at the bottom of the form. This will notify the IRS that you believe that your identity has been stolen.
2. If a fraudster is able to file a phony tax return with your personal information, they may have enough information to commit other types of identity theft, such as taking out credit in your name. To prevent this, consider placing a freeze on your credit report. By placing a freeze on your report, you will prevent any credit from being granted in your name unless you personally lift the freeze. For more information, visit the Federal Trade Commission’s frequently asked questions on credit freezes.

Lastly, file an identity theft report with your local police department and fill out a secure online complaint form at IdentityTheft.gov. This consumer watchdog shares complaints with a network of nearly 200 law enforcement and consumer protection agency partners who can and do put fraudsters behind bars.

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