HealthyLife Articles

Tag: Manage Money

Refinancing Pros & Cons

FINANCIAL HEALTH

There are pros & cons to refinancing your home. It may not be the best choice for everyone, depending on their unique situation.

Pros

* Lower interest rate: When refinancing at a lower rate, monthly payment decreases, and you’ll pay less over your mortgage life.

* Changing the term of your mortgage: When you refinance, you essentially take out a brand new mortgage. This allows you to set new terms, meaning you can either lengthen or shorten the term.

* Cashing out on home equity: If your home is worth more than the remaining mortgage, you may be able to do a cash-out refinancing.

Cons

* Refinancing costs: There can be a lot of expenses involved in refinancing your home. Calculate whether the savings from a lower interest rate will balance out the fees.

* Prepayment penalties: Some lenders charge a penalty for paying off a loan early. Determine if any penalties apply and what they are, as that may add to refinancing costs.

* Refinancing restarts amortization: In the early years of a loan, you pay more on interest and less on principal. In later years, you pay more on principal and less on interest. Refinancing may set you back to paying more interest.

© American Institute for Preventive Medicine

January 23, 2026
4 Financial Health Steps

Financial Health

1. Track your monthly expenses.

– List fixed costs. These include mortgage or rent, car payment, phones and child care.

– List costs that vary, such as clothing, eating out, personal care, and entertainment.

2. Make and follow a plan to pay down debt. Do this on your own or with professional help.

3. Plan a budget. From your net income, aim for:

– 50% for basics (house, food, transportation)

– 30% for lifestyle choices (hobbies, phone and cable, personal care, pets, eating out)

– 20% for short-term savings and retirement

4. Get tools to help you manage your financial health frommymoney.gov.

Take Action: Keep Your Numbers Safe

1. Protect your bank account, credit card, driver’s license, social security, and other personal ID numbers.

2. Use secure websites, passwords, and PIN numbers. Change passwords often, using upper and lower case numbers and symbols. Consider using multi-factor authentication (MFA). This is an added layer of security to your information where a system requires you to present a combination of two or more credentials to verify your identity.

© American Institute for Preventive Medicine

January 23, 2026
Avoid Holiday Debt

Financial Health

Give yourself a present. Keep holiday spending within your means.

* Set a limit on what you will spend.

* Make a list before you shop.

* Buy from stores that offer layaway plans.

* Avoid impulse buying. Leave your credit cards at home.

* Shop less – in stores, online, and while watching TV.

* At family gatherings, discuss ways you can all spend less on gifts. Make a resolution to start a monthly savings account to use for holiday spending.

* Comparison shop. Check out prices online and in-store ads. Use coupons for items on your list.

* Pay with cash or a debit card.

* Don’t go overboard, even during sales. You’ll save 100 percent on items that you don’t need.

* Don’t charge more than you can pay off when your balance is due.

© American Institute for Preventive Medicine

January 23, 2026
Build A Budget

Financial Health

Make a plan to live within your means.

No matter what your income, having a budget helps you plan and manage your money. It also helps you get a grip on your spending. You can use a budget-making tool, such as a free one from the websitewww.mint.com. You can write one on your own with a pencil and paper.

Track your expenses:

First, list your fixed monthly must-haves − mortgage or rent, phone, cable, Internet access, car payment, or public transit costs. Include other regular set monthly expenses, such as loan payments, tuition and/or student loans, insurance premiums, church donations, and gym and other monthly membership fees. Next, identify your variable expenses. These include what you spend weekly, monthly, two or four times a year, and yearly for:

* Groceries

* Restaurant meals, snacks, coffee and other drinks

* Gas and upkeep for your car

* Electric, gas, and water bills

* Property taxes

* Credit card payments

* Entertainment – Movies, DVDs, concerts, golf, toys, and social events

* Clothes and shoes

* Haircuts, cosmetics, and toiletries

* Gifts for birthdays, holidays, weddings, etc.

* Household items and home improvements

* Vacation

You can get amounts for many of these from monthly statements for your credit cards, debit cards, and checking and saving accounts. Otherwise, get and keep receipts for everything you pay for. You may be surprised by how much you spend on coffee drinks, food, liquor, and tips when eating out.

Put some of your income into a savings account. Do this yourself from your take-home pay or have a pre-set amount automatically deposited into a savings account.

Start by listing your total monthly income:

Include your take-home pay, alimony, child support, unemployment, social security, and public aid. If you work on commission or freelance, your income can vary from month to month. Just estimate a monthly amount.

Action Step

If you are spending more than you earn, cut back on variable expenses. If you still have money left over after paying your bills and putting money into savings, carry over the extra for future expenses.

© American Institute for Preventive Medicine

January 23, 2026
Deal With Debt

Financial Health

Get out of debt on your own or with help.

Whether it’s from living above your means, expensive medical bills, a job loss, or supporting your parents, you can eliminate debt. The first step is to avoid getting deeper in debt. Limit spending to essentials and follow a plan to pay down the debt.

On your own:

* Cut up credit cards or put them away until they are paid off.

* Rank order what needs to be paid off – student and other loans, credit cards, etc.

* Contact your creditors right away to work out payment plans that you can manage. Do this before debt collectors get involved. If you can’t work out a plan with your mortgage company, contact the local office of the Department of Housing and Urban Development or the housing authority in your state, city, or county for help in finding a legitimate housing counseling agency near you.

* Bring in more income from a part time job and selling household items you no longer need at a garage sale or online site, such as Ebay. Consider selling some of your gold and silver jewelry for cash.

Get professional help from:

* A professional financial planner through work

* The Financial Planning Association (FPA) at 800.647.6340 orwww.fpanet.org

* The National Foundation for Credit Counseling at 800.388.2227 orwww.nfcc.org/FirstStep/firststep_03.cfm.

Beware of any debt relief service that*:

* Charges any fees before it settles your debts

* Pressures you to make “voluntary contributions,” another name for fees

* Touts a “new government program” to bail out personal credit card debt

* Guarantees it can make your debt go away

* Tells you it can stop all debt collection calls and lawsuits

* Guarantees that your credit card and any other debt not tied to an asset, such as your house, can be paid off for just pennies on the dollar

* Offers to enroll you in a debt management program (DMP) without teaching you skills to budget and manage your money

* Adapted fromwww.ftc.gov/bcp/edu/pubs/consumer/credit/cre19.shtm

Action Step

Pay off the credit card or other debt with the lowest balance first. After this is paid in full, pay down the next debt with the lowest balance.

© American Institute for Preventive Medicine

January 23, 2026
Declare Your Independence From Credit Card Overuse

Financial Health

* Limit your number of credit cards.

* Use 1 or 2 major credit cards that have low interest rates. Individual store and gas cards have very high interest rates.

* Only charge what you can pay in full when you get the bill. Or, aim to keep the balance to less than 25 percent of the total amount you can charge.

* Pay with cash. If you are an impulse buyer, leave your credit cards at home when you shop. Avoid or limit shopping online and through TV shopping channels.

Dos

* Make payments on time to avoid late fees and a possible increase in your interest rate.

* Make more than the minimum payment.

Don’ts

* Don’t open new credit cards to save 10 or more percent. For each new card you open, your credit score could go down 10 points.

* Don’t use your credit cards for cash advances.

© American Institute for Preventive Medicine

January 23, 2026
Financial Wellness

Financial Health

Having financial security to meet your needs and enjoy your life is, well, priceless. But if you’re struggling and juggling bills, the stress can make you sick. Your financial well-being is an important part of your overall well-being. Money-related stress can trickle down to affect every area of your life, including your health.

Making wise financial choices can help you take control of your money, so it doesn’t control you. It’s a small price to pay for peace of mind.

© American Institute for Preventive Medicine

January 23, 2026
Collecting Unclaimed Funds

FINANCIAL HEALTH

Could you have money waiting for you? Learn about unclaimed money or property from bank accounts, tax refunds, insurance policies or wages and pensions.

You can find your unclaimed money for free. Here’s how:

* Search in every state where you have lived. Look up each state’s unclaimed property office. You can also try contacting the state treasurer’s office.

* Search the FDIC database. If your bank or credit union closed, you could have unclaimed deposits. You can also check out the National Credit Union Administration (NCUA) atwww.ncua.gov/support-services.

* Current or former VA life insurance holders can check for unclaimed life insurance funds. Go toinsurance.va.gov/UnclaimedFunds.

* Look for tax refunds from an FHA-insured mortgage. If you earned income but your wages were below the tax filing requirement, you might have a refund waiting. Go toirs.gov/refunds to check. If you bought mortgage insurance from the Federal Housing Administration (FHA), you might have a refund. Go toentp.hud.gov/dsrs/refunds.

* Do you have unclaimed back wages or pension money from a past employer? Go to the Workers Owed Wages (WOW) website atwebapps.dol.gov/wow. You can also check the Pension Benefit Guaranty Corporation atpbgc.gov.

Notice that these websites include “gov.” They don’t have a “com” or “org.” The “gov” means it’s an official U.S. Government website. You should never have to pay any money to find or claim your unclaimed money. It’s FREE. Watch out for scammers and people who want to charge you for this service.

Source: usa.gov

© American Institute for Preventive Medicine

January 23, 2026
Make Thrifty Count

Financial Health

Building personal wealth starts with making wise financial decisions. Be strategic about where you save money, so it is sustainable. Make it fun and economical, such as cooking a gourmet meal at home with your family and then turning off the lights to have a “candlelit” dinner. Or, get an annual state or national park pass and plan outdoor weekend adventures with your family, saving money while also making memories!

Be More Earth-Friendly

Many products we use regularly consume more energy than is needed. Choose energy-efficient products, such as ENERGY STAR certified LED light bulbs, which use up to 90% less energy than standard bulbs and last 15 times longer.

© American Institute for Preventive Medicine

January 23, 2026
Debt-To-Income Ratio: Faqs

FINANCIAL HEALTH

A healthy debt-to-income ratio is an indicator of financial stability. Just as the term implies, this ratio compares the amount of money you pay toward debt against your income.

A stable debt-to-income ratio is anything 43% and lower. Someone with a higher percentage may struggle to make ends meet and keep up with their payments.

When applying for a mortgage, lenders will use this number as a determining factor, so it’s essential to know where you stand. In most cases, you must have a debt-to-income ratio under 43% to get a qualified mortgage when buying a home.

Calculate debt-to-income ratio

The equation looks like this: Total monthly debt payments ÷ monthly gross income (before taxes) = debt-to-income ratio

Here’s an example: Let’s say you make $6000 each month before taxes, and you have an $1800 mortgage, $300 car payment, $150 student loans, and $50 credit card payment.

($1800 + $300 + $150 + $50) ÷ $6000 = debt-to-income ratio

$2300 ÷ $6000 = 0.38

Your debt to income ratio is 38%.

Bills as debt

* Monthly rent or house payment

* Auto, student, or other monthly loan payments

* Monthly alimony or child support

* Monthly credit card payment

* Any other debt

© American Institute for Preventive Medicine

January 23, 2026