Online banking offers many benefits, including convenience, flexibility, and access to a wider range of financial services. However, it also exposes you to the risk of cyberattacks and other security threats.

To keep your important financial accounts secure when banking online, here are some tips, tools, and software to use:

Make Sure To Use Strong Passwords

Use strong and unique passwords for your financial accounts. Strong passwords are essential to secure your financial accounts. Avoid using easily guessable passwords like your name, date of birth, or phone number.

Instead, create complex and unique passwords that consist of a combination of letters, numbers, and special characters. We use a password software called Bit Warden to save all of our important passwords, and we use their tool to come up with un-guessable passwords. You can try it out here as well:

• Bitwarden Strong Password Generator

Enable Two-Factor Authentication On Your Accounts

Enable two-factor authentication (2FA) for your financial accounts. Two-factor authentication adds an extra layer of security to your financial accounts by requiring you to provide an additional authentication factor, such as a security code or biometric authentication, in addition to your password. This makes it difficult for hackers to access your financial accounts, even if they have your password.

One of the better 2FA tools is Google Authenticator where you can go into the app whenever you log in and enter the randomly generated codes in order to gain access. A third-party hacker won't be able to get access since they don't have the codes in your app.

Use A Secure Password Manager

Use a password manager to store and manage your passwords. Password managers are tools that help you store and manage your passwords securely. They generate strong and unique passwords for your financial accounts and store them in an encrypted form. This way, you don’t have to remember all your passwords, and you can access them with a master password.

Some to try include:

• Bit Warden
• LastPass
• 1Password

For more on the topic, check out this article from PC Mag about what some of the best password managers are.

Use A VPN When Accessing The Internet

Use a virtual private network (VPN) when accessing your financial accounts. VPNs encrypt your internet connection and hide your IP address, making it difficult for hackers to track your online activities and steal your financial information. When using a VPN, choose a reputable provider with strong encryption and a no-logs policy.

Some of our favorite VPNs to use when surfing online:

• ProtonVPN
• NordVPN
• Surf Shark

Avoid Public Wi-Fi When Banking Online

Avoid using public Wi-Fi networks to access your financial accounts. Public Wi-Fi networks are vulnerable to security threats, such as man-in-the-middle attacks, where hackers intercept and steal your financial information.

Here are some reasons to avoid public WiFi.

1. Security risks: Public WiFi networks are often unsecured, which means that anyone can access them without any authentication. This makes it easier for hackers and cybercriminals to steal sensitive information, such as passwords and financial data, that you transmit over the network.
2. Malware and viruses: Public WiFi networks are often used by hackers to spread malware and viruses. By connecting to these networks, you may accidentally download malware or viruses onto your device, which can compromise your security and personal information.
3. Slow speeds: Public WiFi networks are often congested and can be slow to use. This can make it difficult to access websites or use online services, such as streaming or gaming.
4. Limited bandwidth: Public WiFi networks often have limited bandwidth, which means that you may experience slow speeds or even disconnections when using the internet.
5. Privacy concerns: Public WiFi networks are often monitored by third parties, such as the network provider or government agencies. This means that your online activities and personal information may be accessed by these entities without your consent.

Be Wary Of Phishing Scams

Be careful when clicking on links and downloading attachments. Hackers often use phishing scams and malware to steal your financial information. Be cautious when clicking on links and downloading attachments, especially if they come from unknown sources. Always check the sender’s email address, look for typos and inconsistencies in the email, and avoid clicking on links or downloading attachments if you’re unsure of their legitimacy.

Here are some types of phishing scams to avoid:

Phishing scams are fraudulent attempts to obtain sensitive information, such as passwords and financial data, by disguising oneself as a trustworthy entity in an electronic communication. Here are some common types of phishing scams to avoid:

1. Email phishing: This type of scam involves sending fake emails that appear to be from legitimate companies or organizations. These emails often contain links that, when clicked, take you to fake websites that are designed to steal your personal information.
2. SMS phishing: This type of scam involves sending fake text messages that appear to be from legitimate companies or organizations. These text messages often contain links that, when clicked, take you to fake websites that are designed to steal your personal information.
3. Spear phishing: This type of scam involves targeting specific individuals or organizations with personalized and seemingly legitimate emails or text messages. These scams often use personal information, such as names and addresses, that are obtained from social media or other sources to increase their credibility.
4. Clone phishing: This type of scam involves creating fake copies of legitimate emails or text messages that are sent to the victim. The fake messages often contain links or attachments that, when clicked or opened, install malware or steal personal information.

Overall, it is important to be cautious and skeptical of any unsolicited emails or text messages that you receive and to avoid clicking on links or downloading attachments from unknown or suspicious sources.

Use Anti-Virus And Anti-Malware Software

Use antivirus and antimalware software to protect your devices. Antivirus and antimalware software help protect your devices from malware and other security threats.

Choose a reputable provider that offers frequent updates and real-time protection. Regularly scan your devices for viruses and malware, and keep your software and operating system up to date.

• AVG Antivirus
• Malwarebytes

Monitor Your Accounts

It is important to monitor your financial accounts for several reasons:

1. Detect fraudulent activity: By regularly checking your financial accounts, you can quickly identify and report any suspicious or fraudulent activity, such as unauthorized transactions or unauthorized access to your accounts. This can help prevent financial losses and protect your personal information.
2. Ensure accuracy: By regularly checking your financial accounts, you can ensure that all transactions and charges are accurate and legitimate. This can help prevent errors or mistakes that can lead to financial losses or disputes.
3. Identify and resolve issues: By regularly checking your financial accounts, you can identify and resolve any issues, such as incorrect account balances or incorrect personal information, that may affect your financial health or credit score.
4. Stay informed: By regularly checking your financial accounts, you can stay informed about your financial health and track your progress toward your financial goals. This can help you make better financial decisions and manage your money more effectively.

Overall, regularly monitoring your financial accounts is important for protecting your financial health and personal information, and for ensuring that your financial accounts are accurate and secure.

Only Use Banking Apps From Reputable Sources

Use mobile banking apps from reputable banks. Mobile banking apps offer convenient and secure access to your financial accounts. Choose apps from reputable banks that use strong encryption and offer security features, such as 2FA and secure login. Avoid using apps from unknown sources, as they may be scams or contain malware.

Stay On Top Of The Latest Threats

Be aware of the latest security threats and scams. Cybercriminals constantly come up with new ways to steal your financial information. Stay informed about the latest security threats and scams, and be cautious when accessing your financial accounts online.

There are several websites that can help you stay on top of cybercrime threats:

1. Government websites: Many governments have dedicated cyber security agencies that regularly publish reports and updates on the latest cybercrime threats. For example, in the United States, the Department of Homeland Security's Cybersecurity and Infrastructure Security Agency (CISA) regularly publishes reports on cyber threats and vulnerabilities.
2. Cybersecurity news websites: There are several websites that focus exclusively on cybersecurity news and updates. These websites often publish articles and reports on the latest cyber threats and vulnerabilities. Some examples include Krebs on Security, CyberScoop, and Threatpost.
3. Cybersecurity blogs: Many cybersecurity experts and professionals maintain blogs where they share their insights and experiences on cybersecurity issues. These blogs often provide valuable information on the latest cyber threats and risks.
4. Social media: Many cybersecurity experts and organizations use social media platforms like Twitter and LinkedIn to share information and updates on the latest cyber threats and vulnerabilities. By following these accounts, you can stay up-to-date on the latest cybercrime risks.
5. Cybersecurity conferences and events: Attending cybersecurity conferences and events can provide valuable insights into the latest cybercrime threats. These events often feature presentations and discussions from cybersecurity experts and professionals on the latest cyber threats and vulnerabilities.

In conclusion, online banking offers many benefits, but it also exposes you to security risks. To keep your important financial accounts safe and secure make sure to take advantage of all the security software and tools that are available to you, and be a good consumer. If you do, you'll likely come out ahead as hackers head to find an easier target.

The post How To Avoid Cyber Attacks: Keeping Your Financial Information Secure Online appeared first on Smart On Money and was written by Mr. Money.

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My husband works for a local university and has been home working for weeks now.  I honestly didn’t look ahead enough to see how much universities would be impacted, but that became very obvious to me when my husband's employer sent an email that he would have to take 39 furlough days over the next year.  Essentially, he is losing two months’ income over the next year. 

While I’m still very thankful that he has a job, we had to do some scrambling to make our budget work.  Here’s how we’re handling a sudden loss of income.

How We’re Handling A Sudden Loss Of Income

We're using a number of strategies to handle our income loss.

Refinance The House

We bought our house 5.5 years ago, and when the mortgage interest rates dropped last month, we contacted our mortgage broker and started the refinance process.  Our refinance will be complete this month and will save us $250 a month on our mortgage.  That will be a relief during the next year when our income takes a hit.

Cut Expenses

The next thing we did was carefully go through our budget to cut any unnecessary expenses.  Our budget was already pretty lean, but we told the kids that over the next year, there would be no unnecessary expenses.  No going out to eat (something we did rarely anyway), no extra expenses for school.  We’re on a beans and rice budget for now.

Save The Money From Temporary Relief Bills

We are blessed that the federal government has instituted a number of measures to protect people during this time.  We put our stimulus check in our long-term emergency fund. 

Also, while my student loans have been paid off for years, we’re still paying on my husband’s student loans.  Rather than continuing to make those payments during the six-month suspension that the president implemented, we’re taking the money that would normally go for payments and also funneling that money into our long-term emergency fund.

Paying The Minimum On All Other Expenses

A few years ago, one of our children had a sudden medical crisis. Unfortunately, some of the bills were not paid by insurance.  We also discovered mold in our house and had to have that remediated.  We still have credit card debt from that time, but we’ve been slowly whittling away at it. However, currently, we have reduced our credit card to the minimum payment due rather than paying extra on it as we had been doing. 

We are funneling all of the extra money into our emergency fund.

Continuing To Grow Our Emergency Fund Is Priority

Prior to this global health and economic crisis, we had been in debt pay down mode, eager to pay off our credit card and remaining student loans.  We had a small, one-month-of-expenses emergency fund.

However, my husband and I are both concerned that in another year, we may not be looking at a two-month loss of income but no income at all.  To that end, we’re saving as much as we can. Hopefully we can grow our emergency fund to at least three months by next year, ideally six months.

A Sudden Loss Of Income Can Be Tough

No matter your position, this pandemic is likely to affect your finances in some way, as it has ours.  We’re on emergency fund building mode.  I wish we were in a better financial position when this crisis hit. However, there’s nothing we can do about that now. 

Instead, we’re working on shoring up our financial position so that we’re better prepared next year if the worst happens and my husband loses his job.

How has this current crisis affected you and your finances?

The post How We’re Handling A Sudden Loss Of Income appeared first on Smart On Money and was written by Melissa.

Copyright © Smart On Money - please visit smartonmoney.com for more great content.

One of the major New Year’s resolutions that many people make, behind losing weight and quitting smoking, is saving more money. 

To that end, you’ll likely find hundreds of webpages filled with money challenges.  However, save your time.  Most money challenges don’t work, but there is a strategy that does work.

Money Challenges You Might See

There are many money challenges you’ll likely see if you search the web.

Save Your $5 Bills

One is to use cash for all of your purchases and then, every time you get a $5 bill in change, save it.  By the end of the year, you should have at least $1,000.

Save Your Change

Another money challenge again urges you to use cash and keep all of the change you receive and put it in a jar.  At the end of the year, you should have several hundred dollars.

One of the problems with this challenge is that change can be hard to keep track of.  Plus, since you don’t know the exact amount, family members can easily raid it for parking meters, laundry, etc.

Another problem with both the $5 bill challenge and the change challenge is that many people now find using cash cumbersome.  If you almost exclusively use debit or credit cards, you won’t be able to save much money at all using these techniques.

52-Week Savings Challenge

In this challenge, you save $1 in week 1, $2 on week 2, $3 on week 3, all the way to $52 on week 52.  This challenge especially is not likely to work.  The fatal flaw in this savings challenge is that in the four last weeks of the year, when you are likely already in a tight financial position because of the Christmas season, you’re saving $49, $50, $51, and $52 in December.  That means in December alone, you’re saving $202 while at the beginning of the year, in the first four weeks of January, you’re only saving $10 total.

Why Savings Challenges Don’t Work

There are two reasons savings challenges don’t work.  First, they rely on self-discipline, which is a struggle for many people who don’t save enough or have a good handle on their budgets.  Second, they’re often not realistic.  I’m especially looking at the 52-week savings challenge.  If you’re already on the financial edge, finding $202 to save in December is unrealistic.

What Does Work

There are two tried and true methods to saving money that do work.

Automatic Payroll Deposit

First, consider going to your payroll department and setting up an automatic deposit to your savings account.  For instance, let’s say you want to save $2,000 this year and you’re paid biweekly.  You’ll have 26 paychecks per year.  You simply fill out the payroll form and have $76.93 put in your savings account automatically every pay period.

In the first few pay periods, you will notice the missing money, but I guarantee, sometime in February, you will forget about the money being deposited to your savings account.  When you check the account a few months later, you’ll be shocked at how much has accrued.  This method does not require any self-discipline.  Automation makes the process successful.

Creating A Line In Your Budget

The other method that works is to set a line item in your budget for long-term savings.  I would recommend, if this is your first time saving, that you start small, say $10 to $25 a week, adding up to $520 to $1,300 at the end of the year in savings. 

Make this a regular line item in your budget that you pay every pay period just like you pay for groceries.  Doing so gets you in the habit on learning to save regularly.  Saving as little as $10 to $25 a week means that the goal is small enough that you will likely achieve your goal.

Final Thoughts

This year, don’t rely on silly, gimmicky savings challenges to try to develop the habit of saving money.  All those do is set you up for failure.  Instead, rely on automation and habit formation to begin learning how to save on a regular basis.

The post Why Most Money Challenges Don’t Work And What Does appeared first on Smart On Money and was written by Melissa.

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If you do, you know that you’re allowed to set aside a certain portion of your income, pre-tax, to pay medical bills and childcare costs.  You also likely know that you typically have until the end of the calendar year to use those funds or you lose them permanently.  If you have leftover funds from 2020, however, Congress has just changed some of the rules.  You now have a variety of options when it comes to what to do with leftover FSA money in 2020.

What Typically Happens At The End Of The Year

Your employer has the option to choose three different scenarios when it comes to what happens to your FSA money at the end of the year.

Healthcare FSA With Carryover

If your employer chooses this plan, you can roll over $500 in unspent funds from one year to the next.

Healthcare FSA With Grace Period

Under this option, you’re given a certain amount of time, usually 2.5 months after the end of the calendar year to use the remaining funds from the previous calendar year.

Standard Healthcare FSA

Under this plan, you’re only allowed to use the funds during the calendar year.  If the year ends and you still have money in your FSA, you forfeit those funds.

What Can Happen In 2020 And 2021

Under the new stimulus act that President Trump signed in late December, the rules for FSA funds have changed.  Now, FSA will rollover any leftover funds from 2020 to 2021.  The same rule will apply in 2021.  Any leftover funds from 2021 will rollover into 2022. 

This is a temporary change for these two years only (unless Congress plans to extend the law at a later date).  In addition, this change is not automatic.  Your employer must approve it, but likely most employers will.

How To Use Leftover Healthcare FSA Money

If you find yourself with a lot of leftover FSA money, there are ways to use it that you may not have considered.

Unusual Ways To Use Healthcare FSA Money

Of course, you’re familiar with using Healthcare FSA money for things like co-pays at the doctor, specialists, dentists, and psychologists.  However, there are other ways to use your FSA funds that you may not have thought of.

Feminine Care Products

FSA participants can purchase some feminine care products that are covered under FSA including some brands of pads and the expensive period panties.  You’ll need to check with your FSA provider first.  However, this year, I bought some of my children's period panties at $18 a piece, and FSA reimbursed me for that expense. 

Other Items

A surprising variety of other items may qualify including over the counter medicines and allergy pills, COVID-19 test kits, antacids, and thermometers.

If your employer allows you to use the FSA store, you can go there to see the wide variety of items that are covered under your FSA.  I think you will be pleasantly surprised.  I was!

Caveat

As always, if you’re not sure if any expense qualifies, check with your FSA administrator first and get approval so you’re not stuck with a purchase that is not qualified.

Final Thoughts

If you have an FSA, remember that in 2020 and 2021, the U.S. government (and your employer, if they sign on), is allowing unprecedented flexibility in the use of your funds.  In addition, many items may qualify for FSA purchase that previously did not.  There’s never been a better time to have a Healthcare Flexible Spending Account.

The post What To Do With Leftover FSA Money In 2020 appeared first on Smart On Money and was written by Melissa.

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She lived through the Great Depression, and the lessons she learned during that time stuck with her for the rest of her life. 

Likewise, for our generation, there are important lessons people may learn from the coronavirus outbreak and the subsequent shelter-in-place orders.

Important Things To Learn From The Coronavirus Pandemic

While not everyone will reach the same conclusion, there are likely many people who will learn these lessons during this difficult time in our nation’s history.

A $1000 Emergency Fund Is Not Enough

Many popular personal finance gurus suggest people should save a $1,000 emergency fund and then focusing all of their attention and money on paying down debt.  After the debt is paid down, then people should save a three to six-month emergency fund.

However, as layoffs and furloughs continue throughout the country, more and more people realize that $1,000 is much too small for an emergency fund.  After all, we’ve been in this tense situation for five weeks now, and there isn’t a real end in sight. 

For a family that has $4,000 in monthly expenses, a $1,000 emergency fund is only a one-week emergency fund!!  While better than nothing, in this type of situation, more money in the bank is reassuring.

Being Debt Free Is So Important

Having said that most people realize a larger emergency fund is important, they are also likely realizing it is just as important to live within their means and pay down debt.  Each person needs to decide on their own how they will conquer debt while building a larger emergency fund.  However, doing both should be a priority. 

There’s really no point in waiting to build a larger emergency fund if you have debt because, as we see now, life won’t wait.  There will always be emergencies, and we need to be prepared for them, with money in the bank, so we don’t go into debt again.

Buying Local Helps Everyone

Too many of us are dependent on the international food supply chain. As we shut our borders and as meat processing plants around the country close down, getting food isn’t as easy as it used to be.

This is a good time to recognize that the way our grandparents used to buy food—direct from the farmer—might be the better option.  We’re guaranteed a local food source, and we help the farmer stay in business.

Many people also wisely have a renewed interest in gardening and growing their own food.  After all, besides supplies, gardening is a free source of food.

There Is Wisdom In Having Food Storage

Speaking of food, there is wisdom in having plentiful food storage.  I am definitely guilty of not having enough food storage.  I regularly keep enough food in the house for one to two weeks.  Since we live in an area not prone to natural disasters, I figured that I didn’t need more.  Our power rarely goes out.  I felt safe. Until this year.

Now, I plan to keep at least a month’s worth of food in my pantry and freezer, or maybe six weeks’ worth.  As we’ve learned, you never know what will come.

Likewise, I would frequently let my toilet paper supply get down to the last roll and my cleaning supplies run out before I would buy more.  I can tell you, that will never happen again.

Final Thoughts

Our generation has never experienced an event as life-changing as the coronavirus.  As a result, there are important lessons people may learn from the coronavirus that will change the way they live for the rest of their lives.  Luckily, most of these changes are for the better.

How has the coronavirus outbreak changed your behavior and habits?

The post Important Lessons To Learn From The Coronavirus Pandemic appeared first on Smart On Money and was written by Melissa.

Copyright © Smart On Money - please visit smartonmoney.com for more great content.

This infusion of cash gave them the ability to pay bills, buy groceries, or simply save money.  However, some Americans were left waiting, and waiting, for their money. 

Finally, just recently some began to receive checks or debit cards.  But debit cards frustrated some people who didn’t want to run out and spend the money right away. 

Luckily, those who received debit cards do have other options.

Do I Have To Spend The Money On The Stimulus Debit Card?

The short answer to that question is no. 

Even though on the surface it looks like a stimulus debit card doesn’t offer as much flexibility, there are ways to get around this. 

Withdraw The Money

The easiest solution is to simply go to the bank and ask for the money on the debit card to be withdrawn and put into your savings or checking account.  There is no fee to do this.

Use The ATM

Another option is to use the ATM to withdraw the money.  There’s no fee for this, either.  However, the card does have a $1,000 per transaction limit on the amount you can withdraw.  If you’re a couple or a family with kids and received a larger economic impact stimulus payment, you’ll likely have to have several ATM transactions to get all of your money.

Utilize PayPal

Another option is to upload the debit card to PayPal and then transfer the money from PayPal to your bank account. 

This is an easy way to obtain the cash while limiting public interactions, especially if you are in the high risk category for the virus and continuing to stay home for the most part.

Use The Debit Card For A Designated Category In Your Budget

If you don’t have easy access to a bank or PayPal, you can use the money in a different way.  Let’s say you set aside $800 a month for groceries.  Rather than using your cash for groceries, use the stimulus debit card. 

Take the $800 in cash that you would have used for groceries if you hadn’t had the debit card and put it in your savings if your preference is to save the stimulus money. 

You can use this same strategy for any category in your budget where you can use the debit card instead.  You may need a few months to get all of the cash from the card this way, but you will be able to save the stimulus money.

Don’t Mistake The Stimulus Debit Card For Junk Mail

Many Americans have mistaken the envelope and letter with the stimulus debit card as junk mail and thrown it away!  Don’t make that mistake. 

Be on the lookout for a white envelope labeled, “Money Network Cardholder Services.” 

If you do lose the card, there is a small fee (less than $20) to replace it.

Who Will Be Getting The Debit Card

In general, individuals who didn’t provide bank account information on their tax returns will get a check or debit card. 

The debit cards will be issued to individuals from Maine, Maryland, Massachusetts, New Hampshire, Vermont, Florida, Louisiana, Mississippi, Oklahoma, and Texas.

You Don't Have To Spend The Debit Card Money, But Make Sure To Withdraw

If you’ve received a debit card from the government and are wondering, “Do I have to spend the money on the stimulus debit card?”, the answer is no. 

However, I would recommend taking the money off the card if you have bank access because there are always desperate scammers who are eager to get their hands on the cash on the debit card. 

The post Do I Have To Spend The Money On The Stimulus Debit Card? appeared first on Smart On Money and was written by Melissa.

Copyright © Smart On Money - please visit smartonmoney.com for more great content.

A pandemic has engulfed the world. Unemployment rates in the United States have jumped to the highest they’ve been since the Great Depression. 

The United States government recently passed the CARES Act, which offers many financial breaks to Americans including a stimulus check and a hiatus on student loan payments for six months. 

It also offers Americans the chance to take money out of their retirement account with fewer penalties than normal. 

But just because you can, should you take money out of your retirement under the CARES Act?

What Are The CARES Act Retirement Account Withdrawal Rules?

If you choose to take money out of your retirement under the CARES Act, there are a few details you should know. 

Have You Been Affected By COVID-19?

To  be eligible to withdraw money from retirement under the CARES Act, you must have been affected by COVID-19 in some way, whether that be you or an immediate family member being diagnosed with COVID-19 or having experienced a lay off or reduction in hours because of the pandemic.

No 10% Penalty

When you withdraw money from your retirement account, you must pay a 10% penalty if you’re under 59.5 years old.  The CARES Act eliminates this penalty.

Flexibility With Paying Taxes

In ordinary times, when you withdraw money from retirement, you have to claim that money on your next tax return. However, under the CARES Act, you have up to three years to claim the money on your tax return. That means if you withdraw $24,000, you can claim $8,000 on your tax return for each of the next three years.

Flexibility To Redeposit Money

Normally, when you withdraw money, you need to pay it back within 60 days if you don’t want to claim it on your taxes. However, under the CARES Act, you have up to three years to pay back the money and thus not face a tax penalty.

The Withdrawal Amount

Any person is allowed to withdraw up to $100,000 from their retirement account(s).  This is per person, not per account.

This Year Only

All of the rules stated above apply only to this year. Next year, unless the government intercedes, the rules for pulling money from your retirement account go back to normal.

Should You Withdraw Money?

The question is, should you take money out of your retirement account under the CARES Act?  This is a difficult and personal decision to make. 

Drawbacks To Taking Out Money

Obviously, if you take money out, you lose the ability to earn interest on that money and further grow your retirement savings.  For that reason alone, you should think carefully about withdrawing money because you may be irreparably harming your financial future.

Also, although you don’t have to pay a penalty for taking money out in these circumstances, you do have to pay taxes.  Depending on the amount you take out and your income bracket, the tax bill could be large.  This may be a hardship to pay at tax time.

Why You Should Take Money Out

If you’ve been financially hit by the pandemic and have utilized all options to help you make ends meet and are still struggling, then you may want to consider taking money out of your retirement.  If you do take the money out, make sure to take out the minimum you need, so you do the least damage possible.

Second, remember that these special rules are only in effect for this year, so if your hours have been reduced and you think they may be reduced further next year, you may want to take money out at the end of this year.  If you have the discipline, you can keep the money in savings.  If you don’t need it, simply pay it back.

Withdraw From Your Retirement Accounts, But Only If You Need To

This pandemic has affected people from all walks of life in a variety of ways.  If you’ve been directly impacted by COVID-19, you do have the ability to take money out of your retirement account penalty free and with more flexibility than at any other time.  However, only take this option if you have to.

The post The CARES Act Retirement Account Withdrawal Rules: Should You Take Money Out? appeared first on Smart On Money and was written by Melissa.

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If you haven’t received your check yet, head to the government’s Get My Payment web page. (Some people have had problems on that form, but after the IRS made updates to the Get My Payment database, it's much more helpful.)

This is a page that helps you check on the status of your stimulus check funds. If you haven’t received your stimulus check yet, it could be that your check is being mailed. Or it could be that you didn’t file your taxes for 2018 or 2019. 

The 2018 and 2019 filed tax returns are the primary gauges the Fed is using to determine stimulus check eligibility. 

Note that if you did not need to file a 2018 or 2019 tax return, you can go to the non-filers page and get information on how to receive your stimulus check. 

Note that the non-filers form will not help you if you are required to file your taxes but didn’t. This page is only for those who are not required to file tax returns for those years. If you still need to file your 2018 tax returns, your best bet is to get that done as soon as possible. 

CARES Act Second Stimulus Check

The stimulus checks are a much needed boost for most families during the COVID-19 shutdown period, as many businesses are completely closed down. That means many working Americans are now out of work.

When the government was working out details of the stimulus package, there was talk of a potential second stimulus check distribution as well. But will Americans see a second stimulus check due to the COVID-19 shutdown? 

As the COVID-19 events began to unfold, the government rolled out a series of aid packages to help individuals and businesses deal both with the virus itself and with the economic impact the virus has had on our country. 

The three aid packages Congress and President Trump have worked together to approve and sign into law so far include: 

1. An $8 billion aid package designed to fund testing, treatment, prevention (i.e. vaccine development) and other medical related expenses associated with COVID-19. This law was enacted in early March.
2. A $100 billion aid package that included a limited expansion of unemployment benefits. This package also included paid sick and family leave protections and funds to accommodate free testing for COVID-19. This law was enacted mid-March. 
3. The $2.2 trillion CARES (Coronavirus Aid, Relief and Economic Security) Act, which includes stimulus checks, expansion of unemployment benefits including $600 extra each week to unemployed persons, unemployment benefits to self-employeds and “gig” workers and more. 

As far as stimulus check details go, the law approved for each adult to get a$1,200 stimulus check, as long as they couldn’t be claimed on someone else’s taxes. Parents who had children under 17 years of age would also get an additional $500 per child. 

Income Limits For Receiving A Stimulus Check

There were income limits for the stimulus check payout as well. The following individuals would get stimulus checks for the fully approved amount.

• Single persons who had an adjusted gross income of under $75,000
• Head of households who had an adjusted gross income of under $112,000
• Married couples who had a combined adjusted gross income of under $150,000

If you made over that amount, you might still qualify for a stimulus check. Those who made over the maximum income limits to receive a full payout still received a reduced check amount based on their income. 

However, if you made over the maximum income limits as listed below, you got nothing. 

• Single persons who had an adjusted gross income of at least $99,000
• Head of households who had an adjusted gross income of at least $136,500
• Married couples who had an adjusted gross income of at least $198,000

The income numbers the government used to determine eligibility were based on your 2019 tax return. If you haven’t yet filed your 2019 tax return, they’ll use 2018 numbers to determine your eligibility. 

As stated earlier, those who are not required to file tax returns can use the non-filers form linked to above to get their stimulus check. 

However, if you are required to file your taxes and simply haven’t yet filed for 2018, you’ll need to get those taxes filed before you can talk to the government about getting a stimulus check. 

Stimulus Check Amount Examples

To further clarify, here are some examples on what an individual or family might get for their stimulus check based on the income limits set for this first round. 

Example 1: A single mom with four kids aged 12, 14, 16 and 19, and with an income of $105,000 (head of household filing) would get $2,700. That amount would include $1,200 for herself, and $500 for her three kids that are under age 17. There would be no stimulus funds for her 19-year-old, either directly or indirectly, provided the mom still claims the 19-year-old as a dependent on her taxes.

Example 2: A married couple with one child aged 6 and with an income of $145,000 would get $2,900. This would include $1,200 for each marriage partner and $500 for the 6-year-old. 

Example 3: A single woman with no dependents has an income of $85,000. She would be eligible for a $700 stimulus check. The amount would be reduced by $500 because her income is over $75,000 but under the $99,000 limit. 

Of course, there are hundreds of varying simulations we could give here. However, if you visit the H&R Block Stimulus Check Calculator, you can find out for yourself how much your stimulus check will be.   

How Does the IRS Determine Stimulus Check Payment Route? 

So, how will you get your check if you haven’t yet received it? If you file your taxes and include your bank account information for receiving a refund, the IRS will plan on sending your stimulus funds via Direct Deposit to that bank account. 

If you still receive your tax refund via mailed check, you can plan on receiving any stimulus funds you’re eligible for in the same manner. 

The first stimulus checks were deposited to individuals’ bank accounts starting on or around April 15. If you think you are eligible for a stimulus check but haven’t received one, check on your money by using the Get My Payment tool from the IRS. 

What About That Second Stimulus Check? 

So, if you’re eligible for a stimulus check, you might be wondering whether or not a second stimulus check is coming. There are a few different ideas and plans Congress and President Trump are throwing around in terms of a second stimulus check. 

Both the President and members of Congress have mentioned that one stimulus check may not be a big enough help in getting the U.S. economy back on track. 

From President Trump during an April 6th news conference:

“We could very well do a second round,” Trump said. “It is absolutely under serious consideration.”

The President seems to be committed to allocating more funds to help Americans stay afloat or get back on track if necessary. 

Emergency Money for the People Act

More recently, Congress members have made two separate proposals regarding additional stimulus funds. The Emergency Money for the People Act was introduced by representatives Tim Ryan (D-OH) and Ro Khanna (D-CA). 

This act, if approved, would allocate funds of $2,000 per month for every qualifying American over 16 years of age, for up to 12 months. The proposed income limits for this package would be much higher, up to $260,000 for married couples. 

And there would be additional funds for people with minor dependent children. 

Rent and Mortgage Cancellation Act

Another act, the Rent and Mortgage Cancellation Act, was introduced by representative Ilhan Omar (D-MN). This act would effectively cancel all mortgage and rent payments for qualifying Americans on their primary residences for up to one year. Or during the duration of the pandemic. 

The act includes features such as: 

• Full rent or mortgage payment forgiveness
• No accumulation of debt for renters and homeowners
• No negative impact on their credit history
• A relief fund for landlords and mortgage holders to cover losses

While neither of these acts have been passed as of this writing, they are both on the table as Congress and President Trump consider additional ways to get more money to struggling Americans. 

And if the American economy and the Coronavirus continue on the way they have been for the past couple of months, we can have some confidence that additional stimulus funds in some form will be approved. Or, at the very least, strongly considered. 

Don’t Wait for Another Stimulus Check

So many Americans have been impacted tremendously by COVID-19 and the economic fallout from it. With the most recent GoBankingRates survey showing that more than 70 percent of Americans have less than $1,000 in savings, it’s obvious that additional stimulus funds would help the people. 

However, you can create your own stimulus package as well. You could start selling items you own and no longer need, pick up a food delivery job or start your own side hustle gig. Here are some articles that can give you some ideas about how you could start earning more money.

• 10 Ways To Save Money When You’re On A Tight Budget
• 17 Weekend Side Hustles: Ways To Make Extra Money On The Side
• 21 Apps That Pay You Real Money Fast
• How Can I Make Money Fast – 34 Ideas for You to Try

The post Will There Be A Second Stimulus Check? appeared first on Smart On Money and was written by Laurie Blank.

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While that’s fun to watch, for many of us living on a tight budget, buying the house is enough of a financial strain. There is little money leftover for changing the house’s décor or even buying new furnishings. 

If you’d like to make some changes to your new home, there are strategies to decorate your home frugally.

First, Be Cautious And Grateful

First, before you do anything, evaluate your budget. 

Buying a new home is an enormous financial obligation. The last thing you want to do at this point is buy new furnishings and redesign the house and put yourself thousands of dollars in debt. 

When you own a home, being in a strong financial position is essential because you never know when a large repair might be necessary. 

Be cautious with the money you’d like to spend.  You can always wait until you’re in a better financial position.

We bought our home 5.5 years ago. The first thing I wanted to do was repaint the ugly living room walls that were done in a 90’s sponge paint fashion. 

Ugh. 

But guess what, that still hasn’t been done. We don’t have time for such a large project, and thanks to numerous expensive home repairs (replacing a water heater and an AC unit, for starters) and medical bills, we just haven’t had the money. And I’m okay with it. 

I know we’ll be in this house for years, and eventually there will be money (and time) to repaint the living room and redo the floors.

How To  Decorate Your Home Frugally

However, if you do want to make some changes and buy new items, try these low-cost techniques:

Join Your Local Buy Nothing Group On Facebook

Join your local buy nothing group on Facebook. There you will find people giving away all manner of items. 

Furnishing your home this way takes patience and flexibility, but it costs nothing. 

Many people have fun seeing how many items they need that they can get for free.

Use A Habitat For Humanity Store

Another option is to visit a Habitat for Humanity store in your area. 

In these stores, you will find new and gently used appliances, building materials, and used furniture. You’ll likely save up to 50 to 90% off retail prices. 

Again, the trick with these types of places is that you can’t have your heart set on one particular item. You must be willing to work with what you find at the store, and if you can’t find what you’re looking for now, you must be willing to wait until you can.

Visit Hobby Lobby

If you have a local Hobby Lobby, consider looking for your décor there. 

A friend of mine decorated much of her house with items she found at Hobby Lobby, several of them on clearance. 

Most Hobby Lobby stores are huge, offering you a wide range of items to choose from that change seasonally.

Decorating A New House Can Be Fun & Frugal

Congratulations on buying a new house. While it’s exciting to immediately go in and spend thousands of dollars to make your house uniquely yours, recognize that doing so makes for good television, but may not be possible for all new home owners. 

Take your time decorating and furnishing your new home, and use some of these strategies to make doing so as easy on the wallet as possible.  You’ll be glad you did, even if you need to exercise patience.

The post How To Decorate Your Home Frugally appeared first on Smart On Money and was written by Melissa.

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When he was young, his family went to Disney every couple of years, and he remembers really enjoying the vacations. 

He is the budgeter in the family, and he’s scrimping and saving for the trip dollar by dollar. He’s frustrated, however, because his wife, Sheila, keeps spending money that could be saved for Disney. 

Just last week she bought the kids new outfits that Roger feels they didn’t need. She spent $110, and Roger is angry because that money could have gone to the Disney fund. 

While Roger and Sheila are generally happily married, this issue is causing strife in their marriage.

How To Handle Your Finances When You Lack Shared Goals

While some may look at Roger and Sheila’s current difficulties as a financial issue, or even worse, a deeply seated relationship issue, there may be a simpler explanation. 

They simply don’t share the same financial goals.  

With clear communication and compromise, they can resolve this issue. 

If you find yourself in a similar situation, there are several steps you can take.

Decide If The Goal Is A Priority To Both People

Before you do anything, communicate clearly and see if a goal is a goal for both parties. 

In the above example, Sheila just does not care about a trip to Disney. She thinks it’s ridiculous to pay thousands of dollars for a trip to Disney. If she’s going to go on a vacation, there are many, many other places she’d like to go rather than a packed, hot amusement park. 

If The Goal Isn’t A Priority For Both People

If the goal isn’t a priority for both people, you can decide on a separate plan of action to resolve the conflict.

Save For The Goal Yourself

You could save for the goal yourself, without your spouse. This would definitely take longer, but it will likely reduce arguments. 

In the end, this is what Roger decided to do since Disney is so important to him. Roger will continue to save all of the extra money he has to go toward the Disney trip, and Sheila will use her spend money in a way that she sees fit.   Roger’s disappointed that it will take longer, but he understands Sheila’s point of view.

Alternate Goals

Another idea is to alternate goals. 

In this example, Sheila would get on board with saving and going to Disney.  After the Disney vacation, Roger would agree that the family will go on the ski trip Sheila has wanted to take the kids on.

If you and your spouse can compromise and agree, you’ll reach your financial goals much faster than if you saved separately.

Allow Room For Independent Goals

Just because you’re sharing finances doesn’t mean you have to always share goals.

For instance, my husband loves to go to the mountains because he was raised in a mountainous area. I’m scared of heights, so I find going up and down mountains terrifying.

Still, I recognize that my husband works hard for our family and rarely spends money on himself. Therefore, we do occasionally make trips to the mountains that he enjoys. I’m just along for the ride. 

While there are many other things I would like to do with our money, I recognize his individual interests.

Compromise and Communication Are Key

Compromising on goals and money can be difficult, but it doesn’t have to be, especially if you have open lines of communication. 

Some couples get around this problem by jointly paying for bills and having separate accounts to do with what they wish individually. However, you don’t have to go that route. It is possible to have joint finances and negotiate large savings goals.

How do you and your spouse handle disagreements in savings goals?

The post How To Handle Your Finances When You Lack Shared Goals appeared first on Smart On Money and was written by Melissa.

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