Here's a 9-step guide to calculating your credit card interest - We Are The Mighty
MIGHTY MONEY

Here’s a 9-step guide to calculating your credit card interest

When it comes to credit cards, understanding your interest rate and how it works can be the difference between staying out of debt with an excellent credit score and falling behind in your payments and dipping to sub-par credit score ratings.

Your interest rate is the amount your credit card charges you to borrow money. If you pay your credit card balance in full and on time, you generally don’t need to worry much about your interest rate, which is expressed as an annual percentage rate (APR).

But if you’re carrying a balance on your credit card, you’ll notice you owe more over time, and that’s because of the interest rate. Credit cards are notorious for being one of the most expensive types of consumer debt, with an average interest rate of about 17%.


While in most cases you probably don’t need to calculate your credit card card interest rate — your statements should clearly reflect how much interest is owed on any unpaid balance and your APR should be clear on your statement and your bank’s website — you may want to get an idea of how much your balance is costing you on a day-to-day basis.

Here’s a 9-step guide to calculating your credit card interest

Here’s a quick cheat sheet to help you when it comes to calculating your own credit card interest rate.

1. Pull up your credit card information

Log on to your financial institution’s website or pull out your latest statement (if you haven’t switched to paperless billing yet, get on that!) to find the pertinent information you’ll need to calculate your credit card interest.

You’ll need to find:

  • your purchase APR
  • the number of days in your billing cycle

2. Get to know the terms

The way your credit card works boils down to a few different terms, two of which include annual percentage rate (APR) and, more generally, your interest rate.

Although APR stands for annual percentage rate, your credit card company uses this percentage number to determine the interest you’ll be charged each month when you don’t pay your credit card off in full and carry a balance.

Keep in mind that your credit card may have different types of APR, like a:

  • purchase APR (usually applied to the overall purchases you make with a card),
  • balance transfer APR (usually applied to any balances transferred from another credit card)
  • introductory APR (usually applied to purchases made during the promotional period after opening a new credit card)

3. Find your purchase APR

In order to calculate the interest you owe on any leftover balances on your credit card, you’ll need to find your purchase APR. If you can’t find this information readily, try calling your bank, or click on your card’s terms and conditions section.

Here’s a 9-step guide to calculating your credit card interest

4. Determine your average daily balance (or balance subject to interest)

This is the aggregate total of what you spent and either paid off and/or were refunded every day throughout your billing cycle, divided by the number of days in your billing cycle.

If you’ve always paid your purchases in full by the due date, you won’t have any interest payments to make and your average daily balance isn’t really a factor. However, if you plan to carry a balance, to calculate your average daily balance when you need to determine interest, log onto your bank account online and track the charges and credits that went through on each individual day, creating a rolling total as you move through the days of your billing cycle.

This will provide you with an aggregate total that you can then divide by the number of days in your billing cycle (which you’ll find in step five).

5. Get the number of days in your billing cycle

Different credit cards have different amounts of time between billing cycles. A typical credit card statement is paid out in 30-day billing cycles.

6. Divide your APR by 365

Since your APR is your annual interest rate, you’ll need to divide your APR by the number of days in the year to get your daily interest rate. So for example, an APR of 13.99% would become: 0.1399/365 = .00038 daily interest.

7. Multiply your daily rate by your average daily balance

Once you know what you’re charged daily for interest, you can multiply that number by your average daily balance to find the daily interest you’ll owe. So for example, if your leftover balance after paying your credit card is id=”listicle-2639175991″,000, you would get: .00038 x id=”listicle-2639175991″,000 = .38.

Here’s a 9-step guide to calculating your credit card interest

8. Multiply your daily interest rate by the number of days in your billing cycle

If you determined that you have a 30-day billing cycle, then the credit card interest you would owe on a balance for the 30-day cycle in this example would be: .38 x 30 days = .50 in interest.

9. Ask about your credit card’s grace period allowance

Some credit cards offer a grace period between when items are purchased and when they absolutely need to be paid off before accruing interest. Check in with your bank to learn if you have a grace period on your accounts and what the exact grace period is in order to better avoid paying interest.

Also read:

This article originally appeared on Business Insider. Follow @BusinessInsider on Twitter.

MIGHTY MILSPOUSE

Recent changes with the 2020 NDAA and how they impact you

The National Defense Authorization Act (NDAA) is an annual piece of legislation which gives authority and funding to the United States Military. While it is a detailed body of work that doesn’t make for light reading, it should be read. This legislation is filled with items that impact the military family directly.


It addresses military pay

The 2020 NDAA provided a 3.1% pay raise to military service members. This pay raise was the biggest one to be received in the last decade and was reflected in the first paycheck received by service members of 2020. The bill also extended specific bonuses and special pay. One of the big take-aways of this bill is the focus on supporting not just the member, but the military family as a whole.

Military spouse education and employment

Within the bill there are increases in support of professional licensure for spouses. With the new 2020 bill, spouses are currently eligible for up to 00 in reimbursement for licensure costs accumulated when moving. This is twice the amount that was authorized in last year’s bill. It also addresses license portability by giving authorization to the Council on State Governments to research ways to create reciprocity across state lines.

The bill also extended opportunities for spouses for education. The My Career Advancement Account program is an example of this, as it is a valuable resource for military spouses. It offers up to 00 in assistance for licensure, certification, or an associate’s degree in a field that is portable. The eligibility for this is limited to E-1 through E5, W-1 through W-2, and O-1 spouses. The initial pilot program had it available to all spouses but rising costs and enrollment forces restrictions in who can utilize this benefit. In this bill language, Coast Guard spouses were also included even though they fall under the Department of Homeland Security.

Military housing reforms

One of the key elements of this bill is that it addresses the issues within military privatized housing. The bill created new accountability for these companies by enforcing quality assurance measures. It also increased the number of required inspections. This bill provides an additional 1.8 million dollars to make sure that each housing office has the vital personnel it needs to ensure military families are taken care of.

One of the tools that will be utilized going forward is a way to assess and evaluate for risks within military housing. This includes things like mold and lead. It also allows for the BAH to be withheld from the private housing entity until issues or disputes are solved. Another key piece is that it forces transparency by requiring these entities to disclose repairs or issues prior to lease signing. There will also now be a required Tenant Bill of Rights and minimal livable standards established.

Military family needs

The NDAA also authorized million for the STARE BASE program, which is a DOD youth program. It is an American military educational program for grades K-12 that teaches science and math in hands on ways. It was created to tackle the low rates of readiness in these subjects by implementing a program that makes math and science fun and interactive. To learn more about this program and to see if it’s located in your area, click here.

One of the chief concerns outlined in the 2018 Blue Star Families survey was that 72% of military families cannot find reliable childcare. An amendment was included in the NDAA for 2020 that creates more coordinator positions on bases to assist with childcare and extends childcare hours for families.

Another key piece to this legislation is that it created the ability of military service members to sue under administrative claims for medical malpractice by a military provider. Although there was existing legislation for under the Federal Tor Claims Act, the United States itself was immune. After countless hearings within congress over a decade, this amendment passed within the NDAA. If a service member sustains injury or death they can file a claim and receive up to 0,000 as long as they file it within two years.

Surviving spouses receive relief

Finally, one of the biggest parts of the 2020 NDAA is the elimination of what is known as the “widows’ tax” in phases. For multiple decades surviving families have not received their full benefits as they deserve, even though they paid into the benefit programs. This is a piece of legislation that has been debated and fought over for almost twenty years. Finally, change is coming and it will be finalized by 2023.

If you’d like to look through the 2020 NDAA, you can find it here. Fair warning, it is 1119 pages long. However, a pro tip is to utilize the search ability within the document to enter terms that you want to specifically read about. This will bring you exactly where you need to go. Happy reading!

This article originally appeared on Military Spouse. Follow @MilSpouseMag on Twitter.

Articles

The 9 worst scams targeting military veterans

Numerous scams often target military members due to their consistent paychecks and many troops being young and financially inexperienced. From predatory lending to online scams, it’s important for service members to learn how to protect themselves from being taken advantage of. Here are 9 scams every military service member needs to be aware of.


1. Social Media Scams (Card Popping)
Here’s a 9-step guide to calculating your credit card interest

Fake accounts are being created on social media platforms such as Instagram and Twitter, where scammers often impersonate military personnel. They will then friend military troops and begin building a relationship through direct messaging. Eventually they will claim they can make you quick money by depositing money in to your account and in exchange you just send them a fee. They will ask for personal banking information such as your username, password, bank card number, and pin. Once the information is exchanged they deposit fraudulent checks and withdraw the cash, leaving you without money and possibly liable for the losses.

2. Rental Housing Scams

Here’s a 9-step guide to calculating your credit card interest

Scammers will post fake rental properties on classified websites in areas around military bases and communities targeting troops. Service members moving in to the area will be offered fake military discounts and be asked for a security deposit by wiring money to the landlord.

3. Military Loans

Here’s a 9-step guide to calculating your credit card interest

Military car and personal loans that require no credit check, have instant approval, upfront fees, or promise guarantees are highly likely to have hidden fees and terms that take advantage of service members, leaving them with crippling debt.

4. Veterans’ Benefits Buyout Scam

Military veterans hard pressed for cash may be lured into this buyout plan offering a cash payment in exchange for their future disability pension payments and benefits. However, these payouts are only about 30 to 40 percent of what their value is and structured in ways harmful to veterans’ finances.

5. Car Purchase Scams

Here’s a 9-step guide to calculating your credit card interest
Photo: Marine Corps Staff Sgt. Jennifer Brofer

Using websites that offer classified ads, scammers will create car ads targeting military members. They will pretend they are a service member who is being deployed or moving because they are being stationed somewhere else and need to get rid of their car quickly. They will ask for wire transfers or up front fees and will offer fake claims such as free shipping or discounts.

6. Employment Scams

Veterans and active duty members searching for jobs may come across employers who offer special consideration for their military service. Be wary of employers asking for personal information such as bank account numbers or that want to conduct a credit or background check. Some are scams that use your personal information to steal your identity and/or expose you to fraud.

7. Jury Duty Scam

Here’s a 9-step guide to calculating your credit card interest
Photo: Marine Corps Sgt. Rebekka Heite

Military members will be targeted by callers who claim they work with the court system and tell the service member has a warrant out for their arrest due to not showing up for jury duty. Fearing they can get in trouble by their command, the caller says it can be taken care of by providing personal information such as a social security or credit card number.

8. Veterans Affairs Scam

Military veterans are being targeted by phone scammers who call claiming they work for Veterans Affairs and say they need to update their information with the VA. The VA never calls and asks for your private information by phone.

9. Military Life Insurance Scams

Hard sales tactics are used by agents who target military members. They will make false and inflated claims about life insurance policy benefits which are expensive and most likely unnecessary.

Learn how to protect yourself!

Here’s a 9-step guide to calculating your credit card interest

To help military members and their families the Better Business Bureau has created a BBB Military Line to educate service members on how to protect themselves. Be sure to follow their Facebook page to keep up to date on all current scams and ways to protect yourselves.

(Note: The BBB has put out a warning about scammers trying to take advantage of the military and veteran community during Memorial Day weekend. Read how you can protect yourself.)

SEE ALSO: Army Captain saves 3 lives while wearing ‘Captain America’ t-shirt

Articles

Here’s a way for military families to get their taxes done for free

With the tax season upon us, service members and their families can access free tax-filing software and consultations to help them navigate the task of submitting their annual taxes.


Military members and their families can visit the Military OneSource website or call 1-800-342-9647 for the no-cost “MilTax” software, explained Erika Slaton, a program analyst with Military OneSource.

The Defense Department recognizes military members and their families have unique filing situations with deployments, relocations and various deductions and credits, she said.

Related: DoD extends online military exchange shopping privileges to veterans

The MilTax software, previously known as “Military OneSource Tax Services,” was created with the military situation in mind, Slaton said.

Expert Tax Consultants Ready to Help

Tax consultants are available via phone through Military OneSource, Slaton said. In-person tax filing assistance can be accessed at military installations at a Volunteer Income Tax Assistance location.

The tax consultants can inform eligible users about the unique tax benefits available to service members and their families, Slaton said.

Tax laws change each year, Slaton pointed out, adding MilTax consultants are experts on the nuances of the law and can help users get the tax credits they earned and deserve.

“That’s why it’s such a great program because it is a program that is specifically designed for those unique military tax situations,” she said.

Here’s a 9-step guide to calculating your credit card interest
U.S. Air Force photo illustration by Senior Airman Aubrey White

Confidential, Secure Resources

MilTax is confidential and secure, Slaton said. The online filing program allows users to submit a federal return and up to three state tax returns, she said.

Those eligible for MilTax include members of the Air Force, Army, Navy, Marines and National Guard. Coast Guardsmen serving under Title 10 authority are entitled to the services as well. Retired and honorably discharged members are authorized for up to 180 days past their separation. Spouses, dependent children and survivors are able to use the free services as well.

Calculations are backed by a 100-percent accuracy guarantee, Slaton said.

The deadline to file taxes this year is Tuesday, April 18. The traditional tax deadline day is April 15, but it falls on a Saturday this year, and the following Monday, April 17, is Emancipation Day, in the District of Columbia — a legal holiday — according to the IRS.

Call, Click, Connect

Slaton wants the military community to know about the range of services and resources available at no cost through the Defense Department-funded Military OneSource, including related to health, family relationships, education, employment, financial issues, deployments and transitions.

Military members and their families, she said, can “call, click and connect today” to access these services.

“We encourage service members and their families to learn more about Military OneSource, MilTax and all of the services that are available because it is a benefit that they deserve,” she said.

MIGHTY MONEY

There is no one in NFL history more devoted to veterans than Jared Allen

During his 12-year NFL career, Jared Allen was a heavyweight defensive player, making his presence known on multiple teams, especially the Minnesota Vikings. It was as a Viking that Allen went on a trip that touched his heart and soul, touring with USO to visit servicemen and women deployed overseas. He even told the assembled troops as much.

That’s what led to Jared Allen’s Homes for Wounded Warriors (JAH4WW).


“It has been one of the best experiences of my life – something that I’ll never forget,” Allen said of his time visiting troops. “We, as players, probably get more out of it than you do as soldiers and Marines.” Even though his grandfather and younger brother were Marines, the experience changed Allen, inspiring him to create his own charity to support America’s wounded.

Even after he was traded to Chicago and later Carolina, Jared Allen’s Homes for Wounded Warriors carried on no matter where Allen was playing. Even though he’s listed as one of the 50 Greatest Minnesota Vikings of all time, the uniform he wore on the field wasn’t what defined him. If you ask the man himself, he’ll tell you what he does off the field is what matters most.

“Football is what I do, it’s not who I am. The things that we do today — to impact these lives, to change people’s lives — can last forever,” he told SB Nation. “We have a great responsibility to the community that supports us, and to our veterans who allow us to do what we do.”
Here’s a 9-step guide to calculating your credit card interest

Former Vikings defensive end Jared Allen presents free Super Bowl LII tickets to eleven-year-old Tallon Kiminski, son of Minnesota Air National Guard member, Maj. Jodi Grayson.

(U.S. Air National Guard photos by Capt. Nathan T. Wallin)

When it comes to helping wounded veterans, Jared Allen is a godsend. On its website, the JAH4WW says, “Jared was moved by the commitment, dedication, and sacrifices that our soldiers make every day to protect our freedom. He wanted to say thank you to every soldier in the only way that Jared knows how. By embracing the conflict and making a positive life-changing difference in the lives of those who need it most, Jared and his JAH4WW will help make life for wounded vets just a little bit easier.”

Talk is big, but in practice, Jared Allen is much, much bigger than just words. Since its founding in 2009, his organization has helped raise funds to build or revamp homes for injured veterans of Iraq and Afghanistan, raised tens of thousands of dollars from corporations like Wal-Mart and Proctor Gamble to provide everyday household goods for veteran families in need, and on Veterans Day, you can always find the now-retired Allen doing something to help veterans in need.

Here’s a 9-step guide to calculating your credit card interest

NFL player Larry Fitzgerald signs an autograph for troops from the Washington Army National Guard at Camp Ramadi, Iraq, along with Will Witherspoon from the St. Louis Rams, Jared Allen from the Minnesota Vikings, and Danny Clark from the New York Giants in 2009.

(U.S. Army photo by Staff Sgt. Emily Suhr)

“I knew I had to do something to serve our country,” Allen once said of the Jared Allen Homes for Wounded Warriors. “I feel the best way to do that is serve those who serve us.”

If you’re a veteran of the wars in Iraq or Afghanistan who is in need of housing or alterations to suit your disability, apply to Jared Allen Homes for Wounded Warriors on the organization’s website. Jared Allen is one guy you definitely want in your corner.

MIGHTY CULTURE

How and when to tell a job you might be PCSing

Are you PCSing soon? Or is a PCS in the works? While it can be hard to tell exactly when you might be leaving before hard orders are issued, in the military world, it’s pretty much a given that you will be leaving. If not anytime soon, then soon after that.


It’s just a part of the lifestyle.

Why it’s a Potential Setback

As a military spouse who works as a civilian (but tied to military schedules and locations in “normal” careers), PCSing can throw a wrench right into your plans. Before you can promote, before you can achieve seniority … or just as you get settled, it’s time to move. That means finding another job, and wondering if you’ll have your frequent moves held against you.

But how do you tell your current job you’re PCSing? And when?

Look at Your Work Relationship

This is a tricky situation; there are horror stories of spouses suddenly being laid off once orders arrived. Don’t fall victim to this scheme. Consider the type of relationship you have with your current company and let it guide you. Do you get along well? Is there a hostile corporate environment where the competition is high?

Technically, you do not owe anymore more than two weeks of notice before you leave. But in most scenarios, it’s courteous to let your employer know when you’ll be leaving town 1) so they can start looking for a replacement and 2) you can be a part of the training process. OR secret option 3) you can start working with them on a remote position setup.

If you have a good relationship with work and get orders well in advance, tell them. Talk about possibilities for staying on, and what the change might look like. However, if you’re genuinely worried about getting the boot, keep mum. Your work is not owed any personal information, especially when you fear that sharing will hurt your income.

Here’s a 9-step guide to calculating your credit card interest

Staying on Remote

A growing option among military spouses is the ability to work for a single company remotely. With easier online access and accountability, telecommuting is not only viable as a long term career, it’s cost effective.

Bring up this move to your boss; go in with a plan so they aren’t worried about logistics. Talk about your hours, your workload, and how you’d love to stay on with them well into the future. Help your chances by including stats on remote work, platforms that can help keep everyone on track, and even savings that are in it for the company but not paying for an additional office seat.

Of course, the biggest perk to working as a remote employee is that your company gets to keep you. They don’t have to train a new worker or start over with brand nuances or expertise. Play up your specialties for a solid sell.

How To Drop the News

There doesn’t need to be anything formal about sharing military orders. A simple, “Hey we’re moving to Texas!” Or “Colorado will be seeing us soon.” Remember to drop in all the hard details, as well as the ones you don’t yet have. For instance, when you’re moving, how long you’ll be there, what it means for your availability, and any specific report times.

There can be light at the end of the tunnel by letting your current job know you’re moving, and when. Consider current working relationships and how that can plan into future moves for all involved, including the possibility of remote work.

Articles

The Air Force is running out of pilots

While the Air Force has gotten the F-35A to its initial operating capability, the service is having a ton of other problems — problems that could place the ability of the United States to control the air in doubt.


According to a report by FoxNews.com, the service is short by about 700 pilots and 4,000 mechanics. This is not a small issue. A shortage of well-trained pilots can be costly.

Here’s a 9-step guide to calculating your credit card interest
F-16s fly beside a KC-135 during a refueling mission over Ramstein Air Base, Germany. (U.S. Air Force photo/Airman 1st Class Preston Cherry)

In World War II, the United States had a strict policy of rotating experienced pilots back to the states. This is why John Thach, the inventor of the Thach Weave, had only seven kills in World War II, according to Air University’s ace pilots list.

He was sent back to train the pilots needed to fly the hundreds of F6F Hellcats and F4U Corsairs. By contrast, Japan kept pilots on the front line until they were shot down or badly wounded. It cost them experience.

Maintenance personnel also matter. A fighter on the flight line does no good if it can’t fly, and the mechanics are the folks who keep it functional. The thing is, no mechanic — no matter how good he or she is — can fix two planes at once.

Here’s a 9-step guide to calculating your credit card interest
Senior Airman Clay Thomas, a 355th Aircraft Maintenance Squadron load crew member, loosens paneling screws from an A-10C at Davis-Monthan Air Force Base, Ariz., Oct. 24, 2016. (U.S. Air Force photo/Airman 1st Class Ashley N. Steffen)

So why is the United States Air Force facing this much of a shortage? An Air Force release notes that the decline took place over the last ten years, but was exacerbated by the sequestration cuts of 2011.

“The risk of manpower shortage is masked and placed on the backs of Airmen,” Air Force Chief of Staff Gen. David L. Goldfein said in that release. “Because if you go back and look at the data and the way we measure readiness, did we taxi? Yes. Did we launch? Yes. Did we make the deployed destination and accomplish the mission? Yes.”

But accomplishing the mission came at a price, Goldfein explained. “What’s masked is the fact that the shortage of people has fundamentally changed the way we do business in terms of the operational risk day to day.”

Here’s a 9-step guide to calculating your credit card interest
Airman 1st Class Zachary Bradley (left) and Airman Joseph Glenn, 20th Equipment Maintenance Squadron aircraft structural maintenance apprentices, remove leading edge tape prior to painting an F-16CM at Shaw Air Force Base, S.C., Dec. 14, 2016. Leading edge tape serves as a repellent against rain and prevents the F-16’s wing edges and tail flaps from rusting and corroding. (U.S. Air Force photo/Airman 1st Class Christopher Maldonado)

When asked for a comment by the writer, Elaine Donnelly of the Center for Military Readiness said,

“I’m not aware of an official survey to confirm what may be going on, but it appears that the mystique of being an [Air Force] pilot has been eroded by a combination of budget cuts and social agendas; e.g., Air Force Secretary Deborah James’ Diversity Initiative Fact Sheet. Mandates such as this clearly indicate that qualifications and high standards are not very important, and certain types of applicants need not apply.”

Donnelly also pointed to aircraft readiness issues in the Navy and Marine Corps, as well as the many aging airframes in the U.S. inventory.

Also of note – FoxNews.com noted that in 1991, the Air Force had 134 fighter squadrons. Today, there are only 55, marking a reduction of 59% in the number of fighter squadrons.

MIGHTY MONEY

These 3 steps are crucial if you want to transition into your own business

Are you ready to start the business you’ve always wanted? Do you have a million dollar idea but are not sure what to do first, second and third? Are you excited to leave military service behind and earn a living through your own entrepreneurial drive? Military service is a wonderful background for business ownership.

But there’s a difference between military service and startup business management.

A key factor that affects startup viability is how fast entrepreneurs adapt to their new job description as a business owner.

Many entrepreneurs say they started their companies for the opportunity to pursue their heart’s desire. New bakery owners like to bake. Fitness coaches like to train clients. Contractors like to build. But successful entrepreneurship is not defined just by how well you bake or coach, but how well you manage your overall business.

You can direct a brilliant film, but if you don’t make money at it, you may not get a second chance to make another film. Besides your specific passion, other skills are required to succeed.

Being the boss of a prosperous business involves focus and careful decision-making.

New business owners who assume that entrepreneurship is all about the freedom to do “whatever I want, whenever I want,” are also at high risk of business failure. Too much managerial spontaneity and freewheeling fun cost more than a young company can typically handle.

Here are three strategies to help you make the mental shift to money-making self-employment with precision.

Joke about business management: The risk I took was calculated, but boy am I bad at math.

1. Pay attention to cash.

Businesses close when they run out of cash. It’s that simple. As the boss of your startup enterprise your top priority is to make sure your company always has enough cash to operate. This means that you have to embrace numbers and money issues; take full ownership of financial projections and understand what kinds of business decisions can drain cash faster than others.

You don’t need an MBA to manage cash well, just a desire to do it. Check out some accounting books or take an accounting class to boost your money management skills.

2. Plan to achieve

It’s not enough to hope to succeed; you have to plan to succeed. Hoping for customers, won’t get them to your website. Hoping to raise money from investors won’t get you in front of top check writers. Hoping the check is really in the mail is not the best way to collect past due invoices. Successful startup entrepreneurs set specific goals and then lay out practical day-by-day strategies to secure their first paying customers and profits.

3. Get help

Just because you are the boss of your new enterprise doesn’t mean you will always have all the right answers. You will across a lot of issues and decisions that you never encountered before in your military career. It’s only natural that beginner’s mistakes will be made, sometimes costly ones.

When you face business unexpected problems in product development, product packaging, sales, marketing, customer service, or finance, don’t guess the answer. Find someone who has already “been there and done that” and ask for help. Remember, every mistake you make now comes out of your pocket.

Here’s one last tip. It’s not enough to just get by in business; your managerial objective is to get ahead in business by using your head. You have a background of excellence in your military career; now just apply it to your new business.

You can do it!

Susan Schreter is a devoted Yellow Ribbon Reintegration Program workshop presenter and founder of Start on Purpose, a service organization that empowers business owners anywhere in America to find and manage business funding with confidence. Connect with her at Susan@StartonPurpose.

MIGHTY MONEY

5 times to consider putting your savings in a CD for at least a year

Since interest rates are down compared to last year — and likely to remain unchanged or fall even further in 2020 — it’s a good time to be strategic about where you save money.

A certificate of deposit (CD) can offer good earning potential without any of the risk of a stock market investment or the variable interest rates of a high-yield savings account.

When you open a CD, you agree to lock your money up for a specific period of time — usually anywhere from three months to five years — in exchange for a fixed annual percentage yield (APY). You typically can’t access your cash until the CD’s maturity date without incurring a penalty, which makes it a good place to safely grow money that you need at a certain date and not before then. It can also help curb impulse spending.


Currently, the best CDs are offering between 2% and 2.25% APY for varying minimum deposits and terms between 12 months and five years. Generally, the longer the term length, the higher the rate. Any term shorter than a year probably isn’t worth it right now, since the rates are comparable to the best high-yield savings accounts.

You can’t add money to a CD after the initial funding period (usually between 10 and 14 days), so it’s not the right type of account for actively saving money. But if you already have cash set aside for a future purchase, a CD is worth considering. Here are five times to open a CD for your savings:

Here’s a 9-step guide to calculating your credit card interest

1. You’re waiting to buy a house

Saving for a down payment can take years. But just because you finally reach your savings goal doesn’t mean you have to buy a house right away. Maybe mortgage rates aren’t where you’d like them to be or you just haven’t found a place you love yet. If you’ve decided to wait at least a year to buy a house, a CD can keep your down payment safe and earning a consistent return in the meantime.

Here’s a 9-step guide to calculating your credit card interest

2. You’re planning a home renovation

If there’s a home improvement project on your to-do list next year, but you already have the cash, consider opening a CD to earmark the savings. As long as the renovation isn’t something that needs attention right away (think: a big leak or a damaged roof), then you can lock in a high interest rate now to earn more on your money while you iron out the details of the project — and actually find the time to do it.

Here’s a 9-step guide to calculating your credit card interest

3. You spend a lot during the holidays

The end-of-year holidays seem to get more expensive every year. Make it easier for your future self by setting aside a cash reserve now that you can use next year for shopping, booking travel, and buying gifts. Once your CD matures, you can use the cash to put toward your holiday purchases if the timing is right or replenish the fund you pulled from.

Here’s a 9-step guide to calculating your credit card interest

4. You have big travel plans

If you’re actively saving for a travel fund, a high-yield savings account is the way to go. But, if you’ve already reached your goal, or even part of it, and want to make sure the money stays safe until you’re ready to jet off, try a CD. You won’t be able to dip into the account for impulse spending and you’ll wind up with even more money than you started with thanks to above average interest rates.

Here’s a 9-step guide to calculating your credit card interest

5. You’re preparing for a move

Between packing supplies, movers, and buying new stuff, moving can run up a lengthy tab. But setting up a moving fund? That’s something many of us plan to do, but never quite get around to.

If you know you’ll be moving in the future, whether to a new state or just a new neighborhood, consider setting aside some extra cash in a CD so you can be sure there’s no scrambling for money when the time comes. It doesn’t need to be a ton of cash — some of the best CDs require to open — but you’ll need to add something to start earning a return.

This article originally appeared on Business Insider. Follow @BusinessInsider on Twitter.

MIGHTY MONEY

These are the veterans that benefit from a higher minimum wage

Nearly 2 million US veterans would benefit from raising the federal minimum wage to $15 per hour.


Approximately 1.8 million of the 9 million veterans in payroll jobs across the US would get a raise if Congress raised the federal minimum wage to $15 per hour by 2024, the liberal-leaning Economic Policy Institute determined in an analysis on the Raise the Wage Act of 2017 in honor of Veterans Day.

Nearly two-thirds of the veterans who would get the raise are age 40 or older, over 60% have some college experience, and nearly 70% work full time, the EPI found.

Here’s a 9-step guide to calculating your credit card interest
Desert Storm veterans. (USAF photo by Ssgt. F. Lee Corkran)

“This means that despite their service to the country, the intensive training that they have received, and the access to additional education provided to veterans through the GI Bill, 1 out of every 5 veterans is still being paid so little that they stand to benefit from raising the minimum wage,” the Economic Policy Institute’s David Cooper and Dan Essrow wrote.

The debate over raising the federal minimum wage has heated up over the past few years. Those against raising it argue that a higher minimum wage could lead businesses to raise their prices or to cut jobs and benefits in an attempt to offset the cost.

Those in favor of raising it, on the other hand, argue that raising the minimum wage above the current $7.25 per hour federal standard would improve living standards, and would enable consumers to spend more. That increased spending would then give a nice, healthy boost to an economy that still shows some slack several years after the Great Recession.

The current federal minimum wage is at $7.25 per hour. Parts of the country have raised their minimum wages above that, including a number of states and major cities like Seattle, Washington and Los Angeles, California.

Also Read: This is how much troops were paid in every major American war

The Raise the Wage Act of 2017 was introduced by Sens. Bernie Sanders (I-VT) and Patty Murray (D-A), and Reps. Bobby Scott (D-VA) and Keith Ellison (D-MN) back in April, 2017. It would incrementally raise the minimum wage to $15 per hour by 2024, and starting in 2025 it would be “indexed” to median wages so that each year the minimum wage would be adjusted based on the growth in median earnings. It would also increase the subminimum wage for tipped workers (which has been at $2.31 per hour since 1991) and phase out the youth minimum wage and the subminimum wage for workers with disabilities.

The real federal minimum wage peaked back in 1968 at $8.54 in 2014 dollars, according to an analysis by the Pew Research Center. The chart below from Pew compares the real (adjusted for inflation to 2014 dollars) federal minimum wage to the nominal (non-inflation adjusted) federal minimum wage since 1939.

A study from The Economist in 2015 found that “one would expect America… to pay a minimum wage around $12 an hour” based on how rich the country is and the pattern among other developed economies in the Organization for Economic Cooperation and Development (OECD) .

Articles

What is Career Incentive Pay and why do you need it?

Here’s a 9-step guide to calculating your credit card interest
The Seawolf-class fast-attack submarine USS Connecticut (SSN 22) departs Puget Sound Naval Shipyard for sea trials following a maintenance availability.


Career Incentive Pay is another part of the U.S. military’s Special and Incentive pay system and is intended to help the Services address their manning needs by motivating service members to volunteer for specific jobs that otherwise pay them significantly more in the civilian sector.

Each career incentive pay amount is in addition to base pay and other entitlements.

Title 37 U.S. Code, chapter 5, subchapter 1 outlines several types of S&I pay, and sections 301a, 301c, 304, 305a and 320 address incentive pays that are career specific.

Section 301a

1. Aviation Career Incentive

Who: Military pilots

How much: $125 to $840 per month, dependent on number of years serving as an aviator. This lasts the duration of the pilot’s aviation career.

Section 301c

2. Submarine Duty Incentive (SUBPAY)

Who: Navy personnel aboard submarines.

How much: The Secretary of the Navy has the ability to set SUBPAY up to $1,000 per month, but it is currently between $75 and $835 per month.

Section 304

3. Diving Duty

Who: Service member divers.

How much: $340 for enlisted personnel and $240 for officers per month.

Section 305a

4. Career Sea

Who: Naval officers who’ve been assigned duties above and beyond what might be typical for an officer in the same rank and which are critical to operations.

How much: $50 – $150 per month, dependent on rank. There is a limit on payments made to O-3s to O-6s, and only a certain percentage of personnel in each rank can qualify for the pay.

Section 320

5. Career Enlisted Flyer

Who: Enlisted personnel on flight crews for the Air Force and Navy.

How much: $150 – $400 depending on years in the aviation field.

For more information on hazardous duty incentive pay and other S&I pays, check out Military Compensation.

MIGHTY CULTURE

USAA says, be safe—cyber threats never end

If you received an email advertising a new vaccine for the coronavirus, would you open it? If a doctor called you requesting payment to treat your family member for COVID-19, would you share your information?

While the world is focused on the coronavirus (COVID-19), criminals are taking advantage of the situation.

“We are seeing coronavirus-related phishing attacks and we are seeing them at USAA,” warns Michael Stewart, assistant vice president of information security at USAA. “We are seeing emails advertising alleged coronavirus-related benefits and others from a healthcare perspective.”


Other potential scams include fraudsters pretending to be members of the Centers for Disease Control and Prevention or World Health Organization to obtain personal information or selling fake coronavirus test kits and vaccines that do not exist.

“Fraudsters like to take advantage of these situations,” explains Stewart. “They will leverage the coronavirus and urgency around it to get people to click on things or give up information that they might not otherwise disclose.”

Here’s a 9-step guide to calculating your credit card interest
Hunter’s Den

media.defense.gov

Some additional scams during this pandemic period to be aware of include:

  1. Charity scams: Stay alert of scammers contacting you to donate to fake charities. Research the organization you desire to sponsor to ensure your information is protected.
  2. Product or services scams: Items like hand sanitizers, disinfectants and household cleaning supplies are often offered by scammers who will keep your money. Scammers also offer cures, coronavirus test kits and vaccines that do not exist. Services can range from house cleaning to doctor visits.
  3. Employment scams: Scammers create job ads to lure unemployed consumers to fake jobs. The scammers will wire money or send a fake check to you, asking to send a portion back or use the funds to purchase goods, which are directed back to the scammer

Tips to protect your information include:

  1. Secure your accounts: use multifactor authentication everywhere, especially with banks, phone and email providers. This extra layer of security helps keep you safe.
  2. Stay vigilant: scammers will contact you by phone, email or text offering products, services or humanitarian opportunities. They often pose as credible companies “phishing” for login or personal information Pause to confirm it’s a credible company before proceeding.
  3. Monitor your accounts: stay close to your personal bank accounts, report suspicious behavior and respond to alerts.
  4. Use trusted Wi-Fi networks: as more people transition to work from home, ensuring your Wi-Fi network is password protected is critical to safeguard your information.
  5. Be informed: visit the FTC’s Consumer Information site for more information at https://www.consumer.ftc.gov/features/coronavirus-scams-what-ftc-doing

More information is available at www.usaa.com/coronavirus.

Articles

6 things to know about the VA home loan

The Veterans Affairs home loan can be incredibly confusing, and it’s easy to get overwhelmed with all of the information found on the VA website. So we have broken it down into six basic questions for you: who, what, when, where, why, and how?


*As always, when making decisions that impact your personal finances, make sure you’re sitting down with a financial advisor. Most banks have financial advisors on staff who are always willing to work with customers.

Here’s a 9-step guide to calculating your credit card interest
Veterans Affairs employs assessors and appraisers to ensure that each home purchased by service members is priced correctly.(U.S. Army photo by Sgt. Eric Glassey, 4th Inf. Div. PAO)

1. Who:

Lendee eligibility is determined by service status:

Active duty personnel must have served a minimum of 90 continuous days to be eligible

Reserve or guard members must:

  • have six years of service in the selected reserve or National Guard, and
  • be discharged honorably, or
  • have been placed on the retired list, or
  • have been transferred to Standby Reserve or to an element of Ready Reserve (other than the Selected Reserve after service characterized as honorable), or
  • still be servicing in the Selected Reserve

Spouses can be eligible as well.

2. What:

The VA home loan program is a benefit for eligible service members and veterans to help them in the process of becoming homeowners by guaranteeing them the ability to acquire a loan through a private lender.

Utilizing the VA home loan, lendees do not make a down payment and are not required to pay monthly mortgage insurance, though they are required to pay a funding fee. This fee varies by lender, depends on the loan amount, and can change depending on the type of loan, your service situation, whether you are a first time or return lendee, and whether you opt to make a down payment.

The fee may be financed through the loan or paid for out of pocket, but must be paid by the close of the sale.

The fee for returning lendees and for National Guard and members of the reserve pay a slightly higher fee.

The fee may also be waived if you are:

  • a veteran receiving compensation for a service related disability, or
  • a veteran who would be eligible to receive compensation for a service related disability but does not because you are receiving retirement or active duty pay, or
  • are the surviving spouse of a veteran who died in service or from a service related disability.

3. When:

Lendees may utilize the loan program during or after honorable active duty service, or after six years of select reserve or National Guard service.

4. Where:

Eligible lendees may use the VA home loan in any of the 50 states or United States territories

5. Why:

Veterans Affairs helps service members, veterans and eligible surviving spouses to purchase a home. The VA home loan itself does not come from the VA, but rather through participating lenders, i.e. banks and mortgage companies. With VA guaranteeing the lendee a certain amount for the loan, lenders are able to provide more favorable terms.

6. How:

Eligible lendees should talk to their lending institution as each institution has its own requirements for how to acquire the loan.

Do Not Sell My Personal Information