HTTP versus HTTPS

The following information is sourced from Wikipedia:

1. HTTP is short for Hypertext Transfer Protocol, and is the foundation of data communications for the World Wide Web (WWW)
2. HTTPS is short for Hypertext Transfer Protocol Secure, and is a combination of the Hypertext Transfer Protocol (HTTP) with SSL/TLS protocol to provide encrypted communication and secure identification of a network web server. HTTPS connections are often used for online payment transactions.

HTTPS is a simple a way for the website to protect data. So, whenever a transaction on a banking or loan site is completed, it is done so safely.

VeriSign Trusted

The VeriSign Trust Seal brings trust to businesses by helping them establish credibility online. The VeriSign Trust Seal appearing on a site, means that VeriSign has verified the identity and the rightful owner of the Web site. Visitors can click the seal to confirm the information. Displaying the VeriSign Seal also means that the site has passed a daily malware scan.

Tips For Staying Safe Online

It’s easy to stay safe online if you take a few precautions as suggested by VeriSign:

• Click the VeriSign Check to verify the identity of the site.
• Be cautious if a website appears poorly built or programmed and doesn’t provide any verifiable security information. Email or call the company before providing any information if you’re still not sure whether it’s legitimate.
• A genuine website should include the company name immediately before the suffix in their URL. For example, http://www.trust.com is a valid site, presented by VeriSign. However, http://www.trustthecheck.1234.com could be a fraudulent Web site spoofing VeriSign’s site.
• Financial websites will never tell you that you must provide your username, password, PIN, or other sensitive information.
• The address bar for a secure webpage should begin with HTTPS not HTTP.  The extra “s” stands for “secure.”
• Use a new high-security Web browser that recognizes websites using Extended Validation (EV). When using a high-security browser, verify that the address bar turns green before entering any personal information.
• Avoid websites that have many obvious typographical errors, because many phishing and spoofing sites originate in foreign countries and are written and programmed practically overnight.

Check The Address Bar

For an even easier tip, remember to check the address bar every time you’re about to make an online transaction. Sometimes you will see the address bar highlighted in Green or Blue.

Check out his short tutorial video on budgeting for 2012.

Recently, U.S. News came out with 50 Ways to Improve Your Finances in 2012.  While 50 might be a bit high as a number of resolutions, adding a few of these tips to your yearly goals can lead to a healthy boost in financial confidence. Here are 5 that are definitely achievable.

Live Below Your Means

Start out with small changes such as staying away from purchases that you know you can’t afford. Use a bargain or store brand whenever possible. Avoid acquiring more debt by taking the time to plan out finances. Balance your checkbook each month. Want more ideas? Check out Danny Kofke’s book A Simple Book of Financial Wisdom, where he explains how he’s been able to live below his means even while supporting a family.

Update Passwords

One way to avoid becoming a victim to online scams is by creating stronger passwords and have different passwords when using multiple sites. The easier and shorter a password is, the easier it is for scam artists to figure out it out, hack into your account, and retrieve your private financial information. Easy ways to add complexity to your password choice is by adding numbers and symbols or using full sentences as one long word.

Decrease Utility Bills

If you can’t make a bigger change like reinsulating your home, start by using a programmable thermostat that automatically shuts off at a certain temperature. Small changes like turning off lights in rooms you aren’t in, shutting off the air vents and doors in rooms you aren’t using regularly, and unplugging appliances at night can make a difference. They even make power strips not that automatically cuts power to devices that don’t need it when they are in the off position.

Utilize Tools From Your Bank

Get discouraged when trying to plan out your monthly expenses? Just turn to your bank. From apps to websites, banks are continuously creating easier ways for people to be able to tack their expenses and budget their finances. The best part is that these are usually free so take advantage of the organizational help.

Double Check Your Insurance

As you shift into spring-cleaning mode, it’s a good idea to look over your insurance polices and make sure that you are paying for the most efficient plan. Analyze you and your families needs and make sure that the policy you are currently paying for covers these. If not, it might be time to shop around and see what other providers have to offer.

• Gather receipts – If you haven’t itemized deductions before, maximize your tax return with commonly missed income tax deductions. Deductions such as charitable contributions, business expenses and childcare can add up.

• Make a checklist of income sources – Make a list of what you should be expecting from income sources in the mail. Identify all income sources such as employers, banks, and mutual funds. This way no form is overlooked.

• Consider IRA contributions – Contributions made up until the tax filing deadline will still count for the previous year.

• Reassess withholding instructions – It has always been known to minimize withholdings to have money at your disposal throughout the year. However, with savings account interest rates near zero, those savings account rates will earn you very little on your take-home pay during the year.  They will earn you nothing if those incremental amounts never make it into your savings account. Those savings rates may improve if you set withholding levels so you receive a refund you can deposit as one lump sum.

• Prepare for next year – Learn from any mistakes this year to prepare for 2013. Keep all receipts and important tax documents in one place so they are ready for the following year. Creating a process and keeping tax forms in order is the best way to avoid filing at the last minute.

Taxpayers will have an extended deadline this year (until Tuesday April 17, 2012) to file 2011 tax returns and pay any tax due. The IRS has also made a few improvements to help make this tax season easy for taxpayers, including new navigation features on IRS.gov and an interactive video to help with tax issues.

Homeowners who have been holding out on refinancing their homes are about to be rewarded.

Annamaria Andriotis from the Wall Street Journal stated in her December 31st post, “The average interest rate on a 30-year mortgage fell to 4.05% for the week ended Dec. 23, the lowest in 60 years, according to HSH Associates, a mortgage-data firm. And rates on jumbo mortgages—private loans that in most parts of the country are larger than $417,000—also have hit new lows, averaging 4.61%.”

The Savings Can Be Impressive For Homeowners.

Due to the new low rates, banks have been creating specific incentives to get homeowners refinancing and taking advantage of these excellent deals. For example, New Jersey homeowners are now charged a flat fee of $499 by Valley National Bank for closing costs on mortgages as high as $1 million, and since closing costs typically run around 2% of the total loan, that’s a significant savings. Around $15,500 for a person with a mortgage of $800,000.

Another example of excellent discounts involves Union Bank. Most banks will only refinance mortgages under $2 million, but Union Bank will refinance mortgages up to $4 million for it’s customers. This is an effort to bring more high-net-worth customers into the bank.

While the majority of homeowners in the United States are in this bracket, it’s a positive sign of an impressive mortgage rate and homeowners cashing in on the savings.

Current Refinance Rates (as of 1/3/2012)

The following rate information is taken from MonitorBankRates.com

Conforming Adjustable Home Loans

• 1 year adjustable refinance rates today are averaging 3.63%, down from last week’s average 1 year adjustable jumbo refinance rate of 3.71%
• 3 year adjustable refinance rates current are averaging 2.54%, down from last week’s average 3 year adjustable refinance rate of 2.71%
• 5 year adjustable refinancing rates are averaging 2.83%, up from the prior week’s average 5 year adjustable refinance rate 2.73%
• Current 7 year adjustable refi rates are averaging 2.91%, down from the previous week’s average 7 year adjustable refinance rateof 3.00%
• 10 year adjustable refi rates currently are averaging 3.50%, a decline from last week’s average 10 year adjustable rate of 3.54%

Adjustable Jumbo Loans

• Current 1 year adjustable jumbo refinance rates are at 4.50%, unchanged from last week’s average adjustable jumbo refinance rate
• 3 year adjustable jumbo refinance rates today are averaging lower at 3.36%, unchanged from last week’s average 3 year jumbo adjustable refinance rate
• 5 year adjustable jumbo refinance rates currently are averaging 3.00%, down from last week’s average jumbo adjustable refinance loans rate of 3.07%
• 7 year jumbo adjustable refinance home loan rates today are averaging 3.47%, down from last week’s average 7 year adjustable refinance home rate of 3.50%
• 10 year jumbo home refinance rates are averaging 3.82%, down from the prior week’s average 10 year jumbo refinance rates of 3.90%

Conventional Adjustable IO Adjustable Home Loans

• 3 year interest only adjustable refinance rates and are averaging 3.21%, down from last week’s average interest only refinance rate of 3.22%
• 5 year IO adjustable loan refinance rates today are averaging 2.89%, a decrease from last week’s average five year interest only home refinance rate of 2.97%
• 7 year interest only adjustable loan refinance rates are averaging 3.16%, down from last week’s average 7 year interest-only refinance rates of 3.25%

Adjustable IO Jumbo Loans

• Today’s 3 year jumbo refinancing rates are averaging 3.66%, up from last week’s average jumbo adjustable interest only refinance rate of 3.62%
• Current 5 year adjustable jumbo interest only refinance rates are averaging 3.38%, down from last week’s average IO home refinance rate of 3.48%
• Today’s 7 year jumbo interest only adjustable refinance rates are averaging 3.64%, down from last week’s average jumbo 7 year home refinance  loan rate of 3.76%

Trust Your Gut

Diane Diamond reminded everyone in a recent article for the Huffington Post, “If it seems too good to be true, it probably is.” Getting tempted by the promise of a designer bag 70 percent off or a camera advertised for a fraction of the typical sale price often means that you might actually be looking at counterfeit or pirated products.  The FBI and Immigration and Custom Enforcement (ICE) have been aggressively pursuing these illegal sites and alerting consumers. Diamond recommends that the best way to protect your purchases though, is to stick with companies that you know and trust.

Never Send Personal Information Through a Text

Earlier this year, a series of SMS phishing or “smishing” attacks hit consumers through one of their most intimate accessories–their phones. USA Today best defined smishing as being “like phishing, a technique that uses e-mails that look legitimate to trick victims into handing over vital information, but instead with messages to a mobile phone, not a computer.” Most of these messages are sent from what looks to be your bank with messages such as there has been suspicious activity in your account or your account has been closed. But make no mistake–banks will NEVER ask for private financial information in this way. Should you ever receive this type of text, MSNBC’s Herb Weisbaum says that it is always a good idea to alert your bank or financial institution directly. Do not reply or click any of the links.

Avoid Pop-Ups

Just because you are on a trusted website, don’t necessarily trust the pop-up windows that come up. Some of these contain threatening computer viruses or might be looking to steal private financial information. Be extra leery of pop-up ads when they show up right before pressing the purchase button, CBS financial contributor, Carmen Wong Ulrich cautions. To avoid these threats, she recommends disabling pop-ups in your browser settings and be cautious of feedback request forms that pop up right before or directly after a transaction. For more on the different types of holiday scams that are out there, check out Consumer Reports’ recent list.

Send E-cards

Instead of sending out paper invitations, save money on postage by sending out email invitations instead of paper ones. Websites such as evite.com and pingg.com offer free customizable and artist-designed invitations to send to all guests.

Organize a Potluck

Don’t prepare a large feast this year on your own. Ask friends to bring side dishes, drinks and desserts to the bash to help cut costs and prep time.

Secret Santa Exchange

If exchanging gifts at the party, make it a Secret Santa exchange where guests draw names prior to the party and give gifts anonymously. Invitees would need to only purchase one gift instead of buying everyone presents. However, if you’re feeling generous this year, request that guests bring one gift to be donated to a charity such as Toys for Tots or Salvation Army.

Dress It Up!

Handbag.com offers a fun money-saving conversation starter — fill a box with items around the house or purchase inexpensive hats, glasses, wigs and other props at dollar stores or thrift stores for guests to wear.

Create and Recycle Decorations

Get crafty and make your own eco-friendly decorations like homemade paper snowflakes or paper christmas wreaths. FavorAffair.com writer  KarenSullen suggests organizing a holiday swap party to trade old decorations with family and friends or a Trim-A-Tree Party, asking guests to donate an ornament or a decoration that can be used at home.

Holiday parties can still be a blast without spending hundreds of dollars. There is no need to spend money on elaborate entertainment or decorations. Keep it simple with these tips and your party will be the talk of the town into the new year!

Whether it’s Facebook classifieds, Groupon deals, or Foursquare offers, being social can save a lot of money in meals, clothes, vacations, outdoor experiences and more. Suppose golf at a fancy club is a little too pricey. LivingSocial has a deal to play 18 holes for $15 (weekdays) or $18 (weekend). That’s a 50% savings and at the time this was written, 572 coupons had been sold.

So why are companies doing this? Why would a restaurant sell a $40 coupon for $20? What’s the catch?  According to Groupon, they can create a “large number of sales in a short period of time.” The company offers an online “word of mouth” that can be spread through Facebook and Twitter, an investment in committed customers, risk-free promotions (merchants pay nothing up front), and the ability to customize the offer to meet customers’ needs. Looking back at the golf course example, 572 coupons times $15 is more than $8,500 in sales. That doesn’t count repeat business, purchases of food and drinks at the club, membership sales, items bought at the club store, and so on.

Facebook Marketplace

Oodle.com has reinveted the online marketplace right on Facebook. Think classified ads, with all of the convenience and share ability of Facebook. Users can buy, sell and trade to their hearts content while searching for excellent deals.

Honk & Car Gurus.

Buying a car can be a frustrating experience, which is why people are tapping into “group wisdom” to save money and find vehicles that relate better to the buyer’s lifestyle. Honk.com claims that customers can find out what other people really paid and avoid haggling by getting up-front pricing.

Between Friends.

Hate asking people for a favor? FriendlyFavor may change your mind. This “all-purpose request tool” helps with everything from offering babysitting to getting car repair by letting users convert thier time into “time dollars.” Users can even trade favors for such things as a cabin in the woods, pet care, French lessons, etc.

FourSquare.

You may have noticed that your friends are “checking in” and “earning badges” and “becoming mayors.” No, it’s not the Boy Scouts – it’s Foursquare. This smartphone application/website allows users to notify friends where they are via “check-ins”. Venues can offer any multitude of savings and freebies for users checking in. For example, a free appetizer with your first check-in at a favorite restaurant.

Huffstetler states that in less than three hours, she can help get a household’s finances back in working order.

So here’s some tools needed:

• A copy of your bills
• A calculator
• Pen and paper

Remember, for the advice to actually improve a financial situation, keep the following in mind:

1. Be honest about spending habits; how much is spent every month?
2. Make sure to leave room in monthly budgets for fun and entertainment; budgeting isn’t about total deprivation.
3. A budget can change; a good budget should be continuously evolving.

Let’s get started:

1. Examine monthly expenses: Make a list of all typical expenses in a given month.
2. Total monthly earnings: How much money is needed each month?
3. Subtract expenses: Subtract monthly expenses from your monthly earnings.
4. Rework the month: If the budget comes out in the negative, rework it. Look for places to cut costs.
5. Leave room for debt reduction: The monthly budget should ALWAYS include the minimum payments needed each month to help pay off debt.
6. Make room for savings and investment: Emergency fund? Retirement investments? Vacation funds? Make a list, and start saving for the future.
7. Get the budget back to work: The month is planned and thoroughly budgeted—now, it’s time to put it to the test!
8. Assess and reassess: As Huffstetler states, “A frugal budget is never finished!” Budget every month for areas of overspending. Look for ways to reallocate funds.