Tag: Financial Planning

  • 3 Traits of Financially Successful People

    Financial success, in many ways, is a game that everyone is trying to master.

    We did extensive research on how some of the biggest winners at this game play it and concluded that these 3 traits describe financially successful people:

    #1: Financially successful people live below their means.

    This may come as a surprise to some, but not many. I have met a handful of financially successful people in my life and the #1 similarity between these individuals was that all of them had a hard time spending their money. All of them talked about how they stick to a budget, only spend when necessary, and try to put money in their savings or toward their retirement fund. Emergencies come up sometimes, and having funds to take care of those situations is extremely helpful, especially in dire situations.

    #2: Financially successful people always look for a bargain

    Sometimes we assume that financially successful people spend their money on anything they want and don’t check the price tag. Though this may definitely be true for some, I wouldn’t say it is true for all. After doing much research online and reflecting on the financially successful individuals I have encountered myself, I’ve found that these individuals are always looking for the best deal. They don’t settle on the first item they see. Instead, they compare prices online, leave the store, check out another for the same item, and even negotiate. Just because they can afford it, doesn’t mean they are willing to spend all that money on the item(s). Financially successful people stay financially successful because every penny counts.

    #3: Financially successful people have an aversion to debt

    Most financially successful people you meet or read about usually say that they keep their debts to a minimum or pay them off quickly. They typically talk about their debt payoff strategy and target ones that are small and easy. These individuals also make sure that when they do take out any loans, they pay attention to interest rates! This is extremely important when taking out any loan or opening a new credit card. Credit cards, like TomoCredit, offer credit with 0% APR/interest, so it is helpful to those who don’t want to rack up a ton of interest fees when opening a new line of credit.

    In conclusion, we feel that financially successful people have these 3 traits. That’s not to say that all financially successful people do or don’t and that others who are not financially successful yet do or don’t either. But if you do have these traits, you are on your way to financial freedom!

  • 8 Tips to Maximize Your Tax Refund

    Tax season is here! The IRS just announced that Monday, 1/23/23, was the first day they would begin accepting and processing 2022 tax year returns. The deadline to file is 4/18/23, so save the date on your calendars! If you plan on making some big purchases with your refund, you might want to read on for some tips and tricks to help you get your biggest refund yet!

    Here are 8 tips that will help you maximize your tax refund:

    #1: Take advantage of an FSA account if your employer offers it

    As part of Tomo’s benefits, we offer all of our employee’s the option to contribute to an FSA account. An FSA account, or Flexible Spending Account, allows you to put money in an account for eligible FSA expenses. When you need to use your FSA dollars, the money is deducted automatically from your paycheck before taxes are taken out. You can save on average 30% by using pre-tax dollars to pay for eligible FSA expenses.

    #2: Donate to charity

    According to the IRA, you may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions. Generally, you may deduct up to 50 percent of your adjusted gross income, but 20 percent and 30 percent limitations apply in some cases.

    #3: Claim credit for energy-efficient home improvements

    This credit offers a maximum value of $1,200 per year from 2023 through 2032 and can go toward investments like qualified energy efficiency improvements made to domestic residences (i.e. improvements towards qualified exterior windows, doors and skylights, and building envelope components).

    #4: Max out your IRA.

    IRAs are a great way to save towards your retirement while reducing your taxable income. Make sure the IRA account is a traditional IRA and not Roth. Roth IRA accounts are not tax deductible now, but traditional IRAs offer tax deductibility in the present.

    #5: Reconsider filing status if you are married

    Filing status is important because it determines your credit eligibility, filing requirements and standard deductions. If you and your spouse have similar or identical incomes, a marriage penalty could affect your tax return. Consult a tax professional if you are unsure if you should file jointly or separately.

    #6: Itemize deductions

    According to IRS, you may benefit from itemizing if any of the following circumstances apply to you:

    • You cannot use the standard deduction.
    • You racked up pricy uninsured medical and dental expenses.
    • You paid interest or taxes on your mortgage.
    • Your employee business expenses were unreimbursed.
    • You gave money to charities.

    #7: Start your tax preparation now to avoid delays!

    If your tax return is simple to prepare and you only have a w-2, it is better to get it done as soon as possible. The IRS processes over 100 million returns each year and can sometimes experience delays due to heavy incoming tax forms. Choosing a direct deposit method for your return may also be the best and quickest option.

    #8: If you are a gig worker, count your work as income

    If you are/were a delivery driver, Uber driver, or did any other work as an independent contractor, you must report your earnings and file your income on your tax return.

    We hope that this information was helpful for you to get your biggest refund yet! For more financial tips and tricks, be sure to subscribe to our Medium page and also check out our website www.tomocredit.com.

  • How to Get a Perfect 850 Credit Score

    If you suffer from a low or (in many cases) no credit score, it may be quite difficult to achieve some of your personal financial goals. Some of these goals include: obtaining an auto loan, mortgage, or applying for any other types of loans.

    According to FICO’s most recent statistics, only 1.6% of 232 million U.S. consumers have a perfect credit score at 850. This feat may seem unachievable, but it isn’t impossible.

    We surveyed 100 people in San Francisco and asked them what their credit score is. Many answered in the mid-600s to 700 range, with a handful above 800 and some at a PERFECT 850.

    We asked those that were above 800 how they achieved this. The following are some tips and tricks they shared:

    1. Pay your bills on time and always pay over the minimum.
    2. Don’t max out your cards.
    3. Keep a low or 0 balance. Some companies, like TomoCredit, feature autopay, so you never have to worry about making a late payment. Tomo’s autopay triggers weekly, so you’ll also never keep a balance.
    4. Only spend on what you need, not what you want.
    5. Have a budget and stick to it. Seems simple, but can be difficult and challenging in practice.
    6. Create a strategy for your credit card usage — designate a credit card to the spending type. For example, if you have more than one credit card, use one for gas and groceries only and the other for major purchases.
    7. Don’t open too many accounts. Retail stores usually have people fall prey to their credit card programs and many tend to forget they signed up for the card until they receive a late payment notice in the mail.
    8. Understand your APR/interest rates. Know how much you are paying and what you will need to pay.
    9. Don’t close your credit card accounts. This factors into your FICO on credit card length history.
    10. Check your score for free. Experian, Transunion, Equifax all have annual free credit reports. Some of your current accounts may also show you your current score on the dashboard when you log in, like Tomo’s dashboard for instance.

  • How to Financially Prepare Yourself During Layoff Season

    How to Financially Prepare Yourself During Layoff Season

    2022 saw a mass of layoffs from many companies, with tech at the forefront. Thousands of people were left unemployed, with many having to figure out how to survive the unexpected news, impacting them mentally and financially.

    More recent news of layoffs is the cryptocurrency exchange platform, Coinbase. They announced last night that they would be cutting 20% of their workforce, after already reducing 18% of their staff in June ‘22.

    Amid these layoffs, we thought it would be helpful to provide a “how-to-guide” on surviving (financially) through unexpected circumstances.

    TomoCredit’s Step-by-Step Guide on Financially Surviving a Layoff:

    1. Make sure you have between 3 to 6 months’ worth of salary in case of a layoff or other unexpected circumstance(s).
    2. File for Unemployment immediately. The quicker you file, the faster you will be able to obtain any funds you qualify for. The process can be lengthy, so do not wait!
    3. Organize your bills and create a strategic plan. Make sure you know what bills are due, if there are any plans you can cancel until you can afford them, and call your providers to see if they offer any program to delay your payment dates.
    4. Check your benefits. Depending on your case and your employer, you could qualify for benefits extension (also depending on what state you live in), i.e. COBRA.
    5. Be frugal! Now is the time to pinch every penny and not spend frivolously on things you don’t need.
    6. Create a savings account and a savings plan if you haven’t already. Put money away that you are not spending on necessities. Practice differentiating between needs and wants.
    7. Evaluate your current debt. This can be student/credit card/auto/etc. You should start to look at all your open debt and reach out to companies to see if they offer any sort of forbearance while you are in a time of uncertainty.
    8. Be open to opportunities. Take advantage of any opportunity dealt your way. Even if the opportunity does not make you a ton of money or is equivalent to what you were making before, this can help pay the bills. And who knows, this opportunity could turn into something better in the future.
    9. Track your spending. Create a spending tracker in Excel and make sure you record every penny you spend. You can also use the “cash diet” method to track expenses. This tactic allows you to be more transparent about your spending and can trick your mind into thinking it is harder to let go of paper money.
    10. Use your credit cards wisely. In times like these, you will want to use any credit card you have, strategically. Stay away from your cards that have high APR/interest. These fees rack up quickly and you’ll be in a lot of trouble. Cards like TomoCredit, with 0 interest/APR, will keep you in a win-win situation by helping you build credit without burning a hole in your pocket.

    We hope these steps will help you get back on your feet. If you have any questions about our latest blog on financially surviving a layoff, feel free to reach us at press@tomocredit.com

  • This startup helps you be credit card debt-free in 2023

    Credit card debt, or any debt for that matter, can be a huge headache. No one likes to borrow money, especially if there is interest accruing on top of that. This New Year, make sure you are well organized and have a plan focused on your financial goals. SF based startup, TomoCredit, helps their users manage credit debt through one of their unique card features — weekly autopay. Users don’t have to worry about remembering to pay on time or carrying a large balance. Instead, the autopay feature triggers weekly on users’ full balance. This means a quicker credit score boost AND 0 credit debt! You start with a 0 balance every week.

    Nothing says “new year, new me” like a freshly paid-off credit card every week! Asides from the nifty autopay feature, TomoCredit also features a 0% APR/0 interest AND you don’t have to have credit history to apply!

  • 6 Tips for First Time Credit Card Holders in 2023

    It’s 2023 and you’ve finally decided to open a credit card. Congrats and welcome to the credit building family! We’re so proud of you for taking action towards your personal financial journey 🙂

    TomoCredit wants to share with you 6 tips that will help you maximize your Tomo card:

    1. Pay your bills on time. Luckily, the TomoCard has a weekly autopay feature that allows you to build credit with ease. No need to remember to pay your bills and risk late fees, we got you!

    2. Check your credit score. The Tomo app dashboard displays your credit score as soon as you log into your account. We want to make it easy and convenient for you to understand your credit building journey.

    3. Pay the full balance/keep balances low. Try not to keep a balance on your credit card and try to maintain a low or 0 balance. This will help build your credit fast and document healthy spending habits. With Tomo, you will never hold a balance, since our card triggers weekly autopay on the full balance.

    4. Monitor fraud charges! Always make sure to keep an eye on your account and check frequently for any errors of fraudulent charges. The New Year typically brings in good deals for savings, requiring personal information and payment methods. Make sure that you are diligent and pay attention to where you shop and give your money to.

    5. Be strategic with your credit card. For first time credit card holders, a good tip would be to use the card for one bucket, so you know exactly where your money is going and how much to expect when you spend. For example, delegating the card to use for groceries and gas only, or subscriptions like Netflix/Hulu only. This makes it easier for you to keep track of your spending while easily boosting your credit score.

    6. Use your perks! Many people forget to take advantage of all the benefits and services that their credit cards offer. TomoCredit card is among many that offer great benefits for its members. Because Tomo is partnered with MasterCard, we offer World Elite Benefits, which include:

    • Cell Phone Protection: Pay your cell phone bill with your Tomo Card and you’re protected for up to $1,000 against damage or theft.
    • Zero Liability Protection: As a Mastercard cardholder, you’re not responsible in the event that someone makes unauthorized purchases with your card.
    • Mastercard Global Service: Get emergency assistance and in any language. Also helps with reporting a lost or stolen card, obtaining an emergency card replacement or cash advance, finding an ATM and answering questions on your account.
    • Mastercard ID Theft Protection: Activate your card by registering your card number and receive alerts when suspicious activity is detected and resolutions services if needed.
    • DoorDash: Cardholders that are new to DashPass will receive a three-month membership. Cardholders will also get a $5 discount on their first order each month (valid until September 30, 2023 or while supplies last) — this $5 discount requires having a DashPass membership.
    • Lyft: Get a $5 credit for every three rides taken in a calendar month (capped at one per month).
    • HelloFresh: Get 5% back on each HelloFresh purchase that can be used towards a future HelloFresh order.
    • ShopRunner Membership: Get free two-day shipping and free return shipping at over a hundred online retailers.
    • Fandango Credit: Get $5 off your next purchase when you spend at least $20 on movie tickets or streaming with Fandango.
    • World Elite Concierge: 24/7 access to a concierge service that can help you with tasks such as obtaining hard-to-find event tickets.

    Hope these tips were helpful! To apply to the TomoCard, check out our website: www.tomocredit.com.

  • Goodbye BNPL in 2022, Hello BNPN (Buy Now, Pay Now) in 2023!

    BNPL has taken consumers by storm in the last few years. But these apps, like Klarna, Afterpay, etc. should not be expecting the same results from spenders in 2023.

    Consumers this new year are much more diligent and smart with how they spend their money. With more tools and education on financial literacy and startups, like TomoCredit, placing the importance on smart spending, consumers are all ears (especially in this economy).

    Consumers are finally being hit with the high interest they spent on their electronic devices from last holiday. They are learning from their mistakes and to not “bite on an easy hook.”

    SF based startup, TomoCredit, announced that they’ve seen a huge spike in applications in 2022 because of their no interest/0 APR card feature. CEO and founder, Kristy Kim, explains that consumers are feeling the aftermath of easy spending with BNPL options, but don’t understand the repercussions until they see interest fees charged to their account.

  • This startup wants you to reach the highest credit score FAST in 2023!

    As many of us are planning our New Year’s Resolutions, it seems safe to say that Financial Resolutions usually make the top of the list.

    This year, TomoCredit, an SF based startup, wants to help millions reach their highest credit score, as FAST as possible. TomoCredit is targeted towards GenZ and Millenials and aimed at helping those who don’t have any credit history/bad credit.

    The TomoCard has some unique features that make it the best credit card of 2023 to help build credit fast. Here are 5 key features:

    1. Weekly Autopay — this means on-time payments and 0 balance every week. Because of the weekly payoff, your healthy spending habits are being reported more frequently to all 3 credit bureaus (Experian, Equifax, TransUnion). Frequent reporting = credit building FASTER.
    2. 0% APR/interest — yes, you read that right
    3. Up to $10,000 credit limit
    4. SSN not required to apply!
    5. Free benefits worth over $500!

    So, what are you waiting for? Start your 2023 with Tomo.

  • How to get approved for credit cards when you have no/bad credit score

    This New Year, TomoCredit, a fintech startup based out of San Francisco, CA, wants to help you build credit even if you don’t have a credit history! (or if you simply need to rebuild your score).

    The Tomo card, better known as “GenZ’s favorite credit card”, lets you build credit without having ANY credit history. The card also has 0% APR/interest and since it is MasterCard “World Elite,” there are a ton of perks for members, including: $1000 cell phone protection and Lyft/DoorDash/HelloFresh credits. Talk about a win-win!

    The Tomo card also features weekly autopay, which allows users to boost their credit FAST. What better way to start the New Year than with good credit?! The Tomo card reports to all 3 credit bureaus — Equifax, Transunion, and Expedia.

    So if you plan on buying a home, car, or any other expense requiring a loan, this card will help you reach your credit score goals.

    Check out how we are on a mission to help millions of others reach their financial and credit score goals by visiting our website: tomocredit.com

  • Tomo’s Guide to New Year Healing

    As we continue into the month of January, there’s no better time than now to revisit the topic of new year’s resolutions. It is common for the start of a new year to present us with a mix of emotions; excitement and anticipation often come with feelings of unease and anxiety. After the champagne is popped and the ball drops, the world holds its breath for the next calendar year to come. New year’s resolutions make their appearance in the collective consciousness, and while last year taught us that plans often fall through, it is human nature to continue striving for excellence and to find the light through difficult times.

    The crucial lessons that we learned in staying resilient through the adversities of life means that this year carries the weight of hope, rebuilding, and growth. We hope that this short guide to mindful, soulful, and financial healing will help you build your best resolutions so that you may prosper through 2021 and beyond.

    Mindful Healing

    As the widely recognized saying goes, “health is wealth.” You don’t need us to remind you of the truth in this statement and that it can be applied to more than just physical health. It is always helpful to keep this motto close to the top of your mind when making even small decisions in your everyday life, which likely still looks like the “new normal” of working and studying from home.

    In taking care of your health, your mind should be a top priority. Stress, lack of sleep, and poor diet can keep you from functioning at your full potential. When our minds are tired, it’s difficult to be clear-headed and productive. A clear separation between work and personal life will help you maintain your sanity as stay-at-home orders continue for the time being.

    Physically separating work from home can be done by designating work space, and further solidify this by trying to limit your productive hours. It is easy to get caught up in work or school, especially now that it seems to have bled into the home, but making the conscious effort to separate these worlds will help you in the long run by preventing burn-out. In addition, this allows you to take time to focus on personal self-care, such as yoga, meditation, reading, or napping.

    In short, treat your mind like a muscle that needs time to rest and recover after moments of strenuous usage.

    Soulful Healing

    Whether you identify as a spiritual person or not, everyone can find little joys in life that can contribute to soulful healing. Deciding what your soul is seeking this year may require some insightful contemplation, as each person’s soul is unique. For many, this may be taking on a creative hobby such as embroidery, painting, or playing an instrument.

    Finding time to engage in self-expression through creation heals the soul, as it is something that you are choosing to do based on your interests and passions alone. There are many resources available online in the form of free and paid courses for nearly any topic you want to try. Any sort of creation is a great way to heal soulfully, even if you don’t see yourself as a creative person. Learning how to cook or bake by trying out recipes online is another fulfilling way to nourish your body and soul.

    In a modern world where much of our time is spent working towards career or academic goals, it’s necessary to allocate some parts of your day to creating something just for yourself.

    Financial Healing

    We get it, talking about money isn’t always comfortable, but it is one of the most common topics when discussing new year’s resolutions. The previous year’s events have affected everyone differently, but what is especially notable is that these events revealed that circumstances can and do change frighteningly fast. We want to balance hope with realistic expectations, and the truth is that we can not expect our lives to shift back to normal anytime soon.

    Taking a large financial hit during uncertain times would find anyone anxious, but building healthy foundational knowledge of your financial situation will help. Financial security has always been an issue, now even more so, meaning that it’s important to enter the new year with a plan to ensure your present and future financial livelihood.

    If you haven’t already, do your research in order to improve your financial literacy so that you can be informed when you start to map out your finance goals. Some great sources include Refinery29’s Money Diaries, Ellevest Magazine’s Money and Life section, and Tomo Credit’s own blog. Understanding which aspects of your finances you can actually take control of will help you greatly, especially when you start early.

    For starters, if you haven’t established a credit score yet, check out Tomo Credit’s zero-interest, no-fee credit card. Since Tomo Credit doesn’t require a previous credit score to apply, this credit card can help you wisely build a good credit reputation with responsible use, helping you grow healthy financial habits. Financial healing starts with reflection, understanding, and planning.