By Marek Fuchs | MainStreet.com

Bank of America (Stock Quote: BAC) announced today they’ve raised $26 billion of the $34 billion the government told it to raise after the results of recent stress tests. That’s the amount of capital, according to the government, that the bank needs to absorb future investment losses.

But what about you? Can your finances withstand unpredictable, money-draining stress?

Financial planners say you should stress test your own personal finances. And it takes considerably less fuss and public debate.

“What we are really talking about is living beyond means,” says Scot Stark, the president of Stark Capital Management in Freeland, Md. “It boils down to whether or not you are being irresponsible.”

Personal Stress Test Simplified
Running an effective stress test on yourself is not complex financial engineering. If what is going out outweighs what is coming in, you fail.

Failing a stress test, Stark points out, is not much of an option. It a long time to resuscitate a credit score or your emergency fund. Moreover, you’ll need to change all your habits and make sure the new ones stick. It’s no easy lift.

The upshot: Catch yourself before you fail.

Toward this happy end, Stark has a secret. He sits down once a week to make certain his household expenses are not exceeding his income. Maybe that’s asking too much of a financial planning civilian, he allows, but once a month is absolutely mandatory.

Personal Stress Test: What to Look For
Besides making certain that inflows and outflows are matching up, you should make certain that your mortgage payment does not exceed 28% of your gross income, and that you have a stash of rainy day money.

If you work on commission or otherwise have a salary that fluctuates, you want nine months of salary to draw on in an emergency. If you work on salary and stand to earn a severance if fired, you can probably get by with three months and still pass. Anything less, in either case, is the equivalent of getting a warning notice from the school dean. “Watch it, Frosh, you are headed for failure.”

Beyond that, telltale signs of am impending failure of a personal stress test are:

* Not paying off your credit card every month;
* Your credit rating declines significantly;
* You are late on any mortgage, utility or car payments; or
* You’re getting any sort of late notices in the mail.

If you are starting to fall short in any of these categories, you need to recalibrate what you are earning or spending, or both.

And if your credit card is a stubborn part of the problem, “just cut it up,” said Stark.

When you’re auditing, remember that this is your life. You’re not adding up these figures for a school class. The cost of failure is steep.

“I don’t think the government can run a birthday party,” said Stark, no fan of the Treasury Department’s bank stress test. But when it comes to your own private version, it’s easy to do, wholly accurate and, in the final estimation, essential to your future well-being.

By Althea Chang | MainStreet.com

Being in denial about money matters can make a bad situation worse.

Most Americans feel today’s economy is riskier than the one their parents faced a generation ago. And the recession seems to be proving them correct. At the same time, the majority of those on Main Street think they’re doing pretty OK managing their money.

A whopping 93% of those surveyed say they’re doing a fair job or better at managing their economic and financial opportunities and risks, according to the Allstate-National Journal Heartland Monitor (Stock Quote: ALL), a series of surveys on how folks are dealing with personal finance issues.

Only 5% of the 1,200 polled said they’re doing a poor job.

The disparities with reality (um, that recession we noted above) are notable.

Sure, some consumers are making changes: 34% said they’ve cut back on wasteful spending and 22% have taken steps to live within their budgets. But it appears denial runs deep. Only 5% of respondents said credit card debt concerned them most—but the average credit card debt per household with a card was $10,679 at the end of 2008, according to a recent Nilson Report.

Are We Being Honest About Money Matters?
Same country, same consumers, different picture: In another survey, more than one in four respondents admitted they didn’t pay all of their bills on time. (This was part of the 2009 Consumer Financial Literacy Survey conducted for the National Foundation for Credit Counseling.)

And about 13 million adults have been contacted by debt collectors, are seriously considering filing for bankruptcy, or have already done so within the past three years, according to the survey. One third of adults say they have no savings whatsoever, according to the survey.

About 41% of adults gave themselves a grade of C, D, or F on their knowledge of personal finance, according to the National Foundation for Credit Counseling survey.

Are You in Denial?
So what’s the deal? Everyone’s deal is different, actually, but experts recommend that you ask yourself some tough money questions and seek honest answers.

“It’s common for people to be in denial of a difficult situation that they feel is out of their control,” says Dr. Nancy Molitor, a clinical psychologist in Wilmette, Ill. Molitor compares this tendency to people who underreport how much alcohol they drink. “Part of us wants us to be better than we are.”

To determine whether you’re in denial of a difficult financial situation, Molitor says you’ll have to ask yourself a few questions:

* When you have to make money decisions, do you feel a surge of adrenaline, physical aches or pains?

* Do you have a sense of dread when it comes to managing money? Do you have a visceral or intense reaction or shut down and tell yourself you’ll deal with bills tomorrow or next week?

* Do you have a past history of financial trouble? Do you chronically make late payments or have you made multiple loan modifications?

* Did you grow up in a family where money was used as a weapon or a means to buy love?

If you answer “yes” to more than one of these questions, you might want to get help. Ask a financial planner, a family member or spouse who reacts less emotionally to money, or even a therapist. And learn as much as you can about money and personal finance. When it’s less mysterious, it’s less frightening and you’ll be more likely to take control. Hey, that’s what MainStreet is here for!

Still, even though it is stressful, many of those surveyed in the Heartland survey said that today’s economy presents them with more opportunities to improve their standard of living than their parents had when they were younger. About 42% said they have more opportunities to improve their standard of living.

Improve yours by ditching money denial.

We previously mentioned some simple basics to keep in mind when it comes to budgeting and finance – just like your ABC’s.  In fact, were using the ABC’s to help keep it even more simple.  This time however, let’s look at some basics for your debt.

F - Figure out all of your debt – If you are wanting to budget in order to get control of your debt and pay it off, you need to know how much you owe and to whom you owe it.

G - Grow up! – It’s time to take responsibility for yourself and your actions.  If you are old enough to obtain debt, then you are old enough to pay it off.  You can’t rely on any one but yourself.

H - Have back up plans (Emergency Funds) – It’s important to save up enough money to have a cushion.  You should determine what your goal is.  For some it’s 3-6 months.  For others, they think that it is important to have at least a years worth.  This money should be enough to take care of you in an emergency, as well as if you lost your job.  If you were unable to find a new one, you would have enough money saved up to pay your bills at least for a time.

I - Include every debt – Don’t ignore a debt because you don’t think it’s important.  When paying off your debts, you should include all of them so you have have a full financial picture of where you are.

J - Just do it! – Sometimes you just have to suck it up and take care of your debt.  There are times when you may lack the motivation.  However, if that is the case with you, just start doing it, no excuses, and after a while, as the debt starts to decrease, then you will begin seeing how good it feels and want to continue.

Again, let Geezeo help you get a handle on your debt.  You can keep track of all of your accounts in one place to easily find out where you really stand with all of your accounts.

When it comes to investing for retirement there are a lot of factors to consider. Some common ones include your personal tolerance for risk and determining how much you’ll need to live at approximately the lifestyle you enjoy now. Many people find these topics overwhelming and confusing.

Enter: time horizon investing.

Time horizon investing simply means that you take into account the time you have until you need to tap into your investment. You’ll need to know four things in order to turn time into money:

1. Know Your Present Needs
Figure out how much you need to cover your basic expenses and other short-term financial goals.

2. Anticipate Your Future
Make a list of tomorrow’s needs, goals, dreams for yourself and your family.

3. Predict When You’ll Need the Money
You may determine you can retire early… or need to work for as long as possible. This is what is meant by narrowing down a “time horizon”. Use a retirement calculator to determine if you have enough saved or have a shortfall of cash.

4. Accept Some Risk
You’ll need to carefully weigh potential rates of return, your objectives, and, as previously mentioned, your tolerance for risk. Some risk will be necessary to outpace inflation.

The best bet is to figure out what you can afford every paycheck, TODAY, that you can invest for the long haul. If you are overwhelmed by choice, a good solution is a target-date mutual fund. Choose your approximate retirement date and the mutual fund will shift from aggressive to safer investments as you age. The most important thing? Just starting.

A user recently questioned whether or not Geezeo was really going to work for them.  And that’s understandable, considering there are so many different personal finance softwares to choose from.  Most people will say that it is all about personal taste, and which one works best for you.  Some will also tell you that they use them all in order to have the best possible chance to regain their financial life, and make better financial decisions in the future.

So let’s look at what Geezeo is all about, and how it can benefit you.

Geezeo provides the tools to help you manage and track ALL of your finances and have fun!  We’ll help you to create a budget, identify where all of your money goes each month, set up spending targets, and identify ways to cut back on spending in order to save your money.

Now you are probably wondering how can you have fun with your money?   Some people feel that finances should be a serious matter, kept within the four walls of your home.  However, talking about money is actually one way that you are able to find ways to save even more!  You can check out Geezeo’s Online Community of Groups and Goals.  Geezeo makes managing your money enjoyable, educational, and entertaining. It is safe and easy. Sign up here.

One of the best things about Geezeo is that it is 100% free!  You’ve got nothing to lose!

You may wonder how a company can provide you a free tool to use.  Well, we can assure you that we will never, ever! sell any of your personal information.  Geezeo currently has some advertising on our site to help keep Geezeo free to you. We will also be adding some other revenue generating features; however, Geezeo will remain free of cost and free of spam.

Still not sure if Geezeo is for you?  It may be that you already have access to your accounts online, and don’t see how adding another method of accessing the information would be helpful.  Well, for most, their accounts are not all at one place.  While you may have your checking at “Bank A”, you may have your car loan at “Bank B”.  What about all of your credit cards or student loans?  More than likely, you have several accounts at different banks.  Well, what we want to do for you is allow you to securely access all your data in one convenient and highly protected place so that you can see the whole picture.

And just in case you were wondering, we support many types of accounts.  For example:

• Checking
• Savings
• Credit Cards
• Loans (auto, home, personal)
• Brokerage (401k, IRA, and other stock accounts)

We previously mentioned our Groups and Goals sections.  Curious to know more about those?

Well, Geezeo Groups allow you to connect with other users about specific financial topics. Geezeo is not simply about tracking your money online. It is also a community for people to connect and share tips, goals and ideas. Geezeo Groups helps support our community. It’s your go-to place if you ever have a money related question. We also hope that you will share your experiences with others – good or bad. You can also ask our experts any money related questions by going to the Geezeo Experts section. They’re very knowlegeable and happy to help!

Geezeo Goals allows users to create a financial goal and share it with others. When creating your Geezeo goal, give it a title – go ahead, make it something inspirational! Next, describe your goal, maybe even how you plan to achieve it. You will then want to associate it with either a financial institution or a tag, as well as an amount. Since accounts are updated each day, the progress of your goal will be updated as well. Good luck!

Do you have any more questions about Geezeo?  Still like to know more to see if it is something for you?  Please visit our Live Chat, Monday through Friday, 9 am to 5 pm, EST, and speak to a member of our team!

By Jeffrey Strain | MainStreet.com

You don’t need a master’s of business administration degree to be financially savvy. It just requires a little common sense. In honor of financial literacy month, here are nine concepts you should understand:

The difference between “wants” and “needs:” Being able to distinguish between the two is essential to making basic financial decisions. Prioritizing your needs doesn’t mean you can never indulge in something that’s not essential. You just need to consider your wants after you’ve addressed your basic needs.

The power of compound interest: Over long periods of time, small amounts of money can grow as interest compounds and adds to your principal. That’s why financial books tell you to start saving as early as possible. Keep in mind that it also works the opposite way when you borrow: You pay more interest as your loan collects interest, increasing the outstanding amount.

How to use credit cards responsibly: Credit cards can be useful tools or a way to destroy your finances. Understanding how credit cards work and how much balances can cost over time is crucial.

How to live within your means: If you make less than you spend, you need to find expenses to cut or ways to increase your income.

How to plan for the future: You must know your financial goals before you can create a plan to reach them. They might involve paying your child’s college tuition and saving enough to retire early.

Understanding contracts you sign: When you sign a contract, you need to read the fine print and know all the terms involved. Failing to understand a contract thoroughly can get you into trouble later.

How to create and maintain a budget: By tracking your spending and knowing where your money is going, you’ll be able to work toward your financial goals.

How to protect your assets: Staying financially sound requires you to prepare for unexpected events, such as death and natural disasters. You should know how much insurance you need to protect your assets. After you’ve figured that out, you’ll need to adjust it as your needs change.

How to do your own taxes: Most people spend a lot of money on taxes. That’s why it’s important to know whether you’re taking advantage of all the deductions and credits available to you.

By Madeleine McBride | WomenCo.

Over my lifetime, I have come to recognize that my understanding of personal finance was greatly impacted by the attitudes and practices of my parents. It is impossible to overestimate the influence this lifelong home economics course had on me. My parents truly left their imprint on the psychic money manager toiling inside my head. So let’s talk about spending money.

My father was raised in public housing in the north of England. He graduated from the eighth grade; then he served an apprenticeship as a machinist. The second son and youngest child, he was the first in his family history to learn a highly skilled trade – at the time, the blue-collar equivalent of a college degree. My mother was a ward of the State of New Jersey. Raised mainly in foster homes and later in a convent, she graduated high school, dabbled in cosmetology and, with on-the-job training, became an operator for the telephone company. Her real dream was to get married and raise a family.

When she married, Mom had significant consumer debt. My dad had always worked hard and was a saver. When she told him about her debt, he pulled out a coffee can and placed hundred dollar bills, one after the other, on the table. My mother’s first thought was, “Oh my goodness! I’ve married a bank robber!” It never occurred to her than anyone could honestly earn and save that amount of money. It never occurred to him that there was a better place to keep his money than a coffee can.

My father is a very intelligent man. After a stint in the Royal Navy, during which he saw the world, he gained a solid education by attending evening classes on many subjects all throughout years before he married my mother. He was an extremely skilled technician and made a good hourly wage. However, he repeatedly turned down promotions to management positions at work. His explanation was that he did not want to engage in the political aspects of being a manager in his small but profitable company. He genuinely dreaded the idea of socializing during off-hours with other managers and customers and going on mandatory golf games over the weekend. He felt uncomfortable at the thought of living in that world. For that, and other reasons, he wanted no part of it. I sincerely doubt he spent much time considering the financial benefits of becoming part of management.

His hard work – he always put in at least 65 hours a week – and skill enabled him to provide well for our family. We did not have a lavish existence and we did not have significant savings. There was no discussion of investments in our house. The most sophisticated financial activity that I witnessed was my father’s monthly ritual of balancing the checkbook (to the penny) and watching him do the taxes every year. As a child, I couldn’t have told you a thing about a mutual fund or the stock exchange.

Mom and Dad talked about how to teach my brother and me about money. When I was about eight years old, they decided that I should receive an allowance of 50 cents per week. If I did my chores and behaved well, I received an extra 15 cents as a bonus.

Unlike my next-door neighbor, my parents did not reward good grades with cash. The expectation was that we should do our best in school because it was to our own benefit to do our best academically. I assure you, I did not live up to the expectation. I did not study in high school and pulled A’s and B’s. There is more to it than that but the bottom line is this: As a child, I was not induced to achieve academically.

My weekly allowance brought no specific obligations. Dad called it “spending money.” So that’s what I did with it: I spent it. Unlike my brother, I spent all of my money on candy within thirty minutes of receiving it every Saturday morning.

This pattern with money held true for me into adulthood. I was fortunate to have a successful career and earn a good salary. I married in 1993 and despite my enviable earning power, just as my mother had been, I was burdened by heavy consumer debt. I am both astonished and ashamed to reflect upon that now. I made more than enough money to pay off my debt and save a significant sum but I was reluctant to make a efforts toward those goals. Fortunately, my husband had no such reluctance and, taking temporary control of the checkbook, he paid off the debt within a year. We have been free of consumer debt ever since.

By the time I left my job in early 2006, my husband’s influence had permeated our personal finances. We had no consumer debt, 13 years left on a 15-year mortgage, and significant savings set aside. Left to my own devices, I am embarrassed to say that our financial situation would not have been anywhere near as substantive.

Given what I have learned from my husband, I know that I will always be extremely reluctant to take on any unsecured consumer debt. Our criteria for a purchase are: Do we need it? Do we already have the money? I now see the consumer debt that I accumulated as a single woman as having been more reflective of my search for something to fill an empty spot in my soul than something to fill my house or closet. I wonder how true that is for other people.

When the time came to grant our son an allowance, we were very deliberate in establishing its goals and structure. I hope it instills in him a better understanding of how to handle money than my allowance instilled in me.

For fulfilling regular, age-appropriate responsibilities around the house, he receives $4. Of the $4, 25% goes into his Superman bank, for his college fund. Cleaning the bathrooms and washing his dog’s slobber off both sides of the sliding glass doors are extra tasks and merit an additional $4 in compensation. Formerly, these tasks were performed by our weekly housekeeper. So not only is our son learning to earn and save money, he is also learning to help clean the house – important for a boy, I think. He does receive financial rewards for earning and maintaining good grades, a certain portion of which goes into his college fund. Cash birthday gifts are tallied and a portion goes into his college fund. Our goal is to teach our son to save – a lot earlier than his mother did!

Every year at his birthday, we empty the Superman bank and deposit it into a savings account. It is getting to the point where the savings should be placed into some financial instrument which will generate a higher return, even if it means taking on a little risk. We plan that our son will have some input into that decision. He will learn – with his own money – about CD’s, mutual funds, stocks, bonds, etc. By the time he gets into high school, this kid will know a lot more about personal financial instruments than I did!

With some discretionary counsel from his parents, our son is allowed to make purchases with the money he is not required to save. When we advise regarding a purchase, we explain our rationale in the hope that he will develop a more mature understanding of the elements that ought to be considered when making a purchase. For example: How many weeks did it take you to save that amount of money? How much time do you really play with the toys of that type which you already have? I have even asked him to give me an estimate as to how much time he will play with a toy before he gets tired of it. I don’t expect him to ever admit to me that he has grown tired of something, but if in the privacy of his own thoughts, he realizes that he vastly overestimated the length of time that something would amuse him, I think he will have learned a valuable lesson.

So how about you? How did your parents influence the way you viewed personal finance? How has your partner impacted your financial situation? What do you think about carrying consumer debt? How are you teaching your children about managing money? How are you increasing your own knowledge of personal finance today? If you aren’t doing so, why have you decided that it is not something that you need to do? I am eager to hear your thoughts.

Always The Planner is a 20-something anonymous blogger who lives in New York City currently trying to balance life, love, and personal finance.  Her blog is about planning more for her “financial future and less when it comes to life. It is about budgeting, saving, living, loving and having fun.”  We strongly suggest subscribing to her RSS feed so that you can stay up to date with all of her latest posts.

To start off with, she posted her very first book review – “Bank on Yourself”.  Check out what she thought of the book, and also don’t forget to read the comments.  There are a couple of commenters who have had a “Bank On Yourself Advisor”.  Could this be something for you?  Read the book, and then come back and let us, AND Always The Planner know what you thought of the book.

She also reviewed an article posted at Mainstreet.com regarding the simple pleasures that we aren’t quite ready to give up even during a recession.  See what her thoughts were on things like chocolate, alcohol, and video games.

Next to buying a new home, purchasing a car is right up there with one of the biggest decisions you are going to make in your life. Investing in a new car can be extremely expensive (depending on what you purchase) and create a lot of anxiety. However, be sure to make a check list before you go into buying your car, this way you make sure all your bases are covered.

Here are some things that you should definitely consider…

How Much Your Monthly Payments Will Be – If you are not paying all cash up front, you should really consider how much your monthly payments will be if you finance the rest of your payment. If you put money down and then finance the rest, this will decrease your monthly payments. The more money you put down, the lower your monthly payments are going to be. Really think about how much you can afford to put down up front because the more you put down the better off you will be in the long run.

How Much Your Insurance Will Be – One of the most important things to consider with a new car is the insurance. Depending on the type of car you get the insurance could be lower or higher than you had expected. Sometimes the cost of your insurance may increase for more sporty cars, red cars, or if you live in the city. Remember that although you may have paid for the car, insurance payments each month are something that you have to remember to pay and allocate for in your budget each month.

Consumer Reviews – One of the best ways to figure out what car to purchase is by reviews that others have done based on their experiences. Although you still need to test drive and look at different types of vehicles, consumer reports and reviews may point you in the right direction. Also make sure to ask your friends or co-workers who own the types of cars that you are looking at what they think, their opinions and experiences may influence your decision greatly.

What Type of Deal You Can Get – Right now dealerships are almost giving cars away. Because the auto industry is really struggling in the current economy, the deals you can get on cars are great! Make sure you do some competition shopping before you make a decision. Get prices and deals from each dealership and then make a list and compare features, safety, and cost. Once you have decided on the car you like best, make sure to bargain your way into the best price. If another dealership offered you two free oil changes for example, haggle this into your agreement with the car you really want to buy. You may be surprised by what dealerships are willing to offer you!

Gas Mileage – One of the biggest concerns people have nowadays is the price of gas and how many miles per gallon (MPG) a car gets. Make sure to really take this into consideration when you are looking at cars. If you do not think you travel far enough to worry about MPG then choose whatever car you like. But if you have a long commute or spend a lot of time in your car, factoring gas costs into your car purchase will save you a great deal of money in the long run.

Although purchasing a car can cause a lot of financial anxiety and uncertainty, ensuring that you have done your research and are confident in your decision will relieve some of this worry. Although the cost of new cars has dropped considerably, if you feel you would prefer a used car just make sure you know consider how to buy a used car. The decision is definitely a big one, but it can also be extremely exciting!

Photo by: faustfoundation

— By Hannah Waters, Geezeo.com

By Nicole Crimaldi | WomenCo.

Only Suze Orman could talk about two topics as sensitive as Women and Money so honestly and accurately. In her eighth book, Women and Money, Suze uncovers the mysterious stumbling blocks that so many women face when it comes to their finances, “It doesn’t matter if I am in a room full of business executives or stay-at-home moms, I find the core problem to be universal: When it comes to making decisions with money, you refuse to own your power, to act in your best interest.”

Women are typically the givers of the world: they are always putting others before themselves, nurturing their families, and sacrificing for others. Suze is NOT suggesting women replace “nurturer with narcissist.” She says, “I simply want you to give TO yourself as much as you give OF yourself. By taking care of yourself financially, you will truly be able to take care of those you love.” She asks why women don’t show their money the same attention they show every other relationship in their lives and claims it is because women have a dysfunctional relationship with money.

It is this dysfunctional relationship that has intrigued me personally to start a business to help educate women about their finances. My belief is that it is not intelligence or information that women lack, it is a mental “block” that is holding women back. Suze points out that so many women feel they must be all things to all people, “mother, wife, dutiful daughter, supportive friend, school volunteer, cheerleader at home and at work.” With the demands of life, it’s easy to keep denying the importance of learning new things that may be uncomfortable or hard to face. It is much easier to deny that money exists, say you are just “too busy” or blame others for your financial shortcomings.

My favorite chapter of Women and Money is called “The 8 Qualities of a Wealthy Woman.” I like it because it sheds light on what many women are not doing and clarifies how changing our thoughts and behaviors will improve our relationship with money.

For example, numbers 1 and 2 are harmony and balance. When you are in harmony, what you think, say and do are aligned. How many women do you know who say, “Oh I’m fine!” or “Ok daughter, you can have that new ___” even when they don’t feel that way or can’t afford it. That leads us to quality 3: courage. Courage gives you the ability to make sure your thoughts, feelings, and actions are aligned. So many women fear that if they say no, they may hurt someone else or not be loved as much. Suze points out, “It’s so much easier to hurt yourself than to hurt someone else, isn’t it?” When you think logically about that statement it is so true, yet women do it several times a day.

I believe that courage is important because it allows women to set boundaries with quality number 4: generosity. Women are known for being too generous with their time, support, love and money. Suze points out that the act of generosity must benefit the giver as much as the receiver, or it is not true generosity.

Quality 5 and 6 are happiness and wisdom. Quality 7 is cleanliness, which is really just another word for organization. And lastly, number 8 is beauty, which is a combination of the other 7 qualities.

Notice I haven’t gone into any detail about the technical side of money in my review. Suze Orman and I could sit here all day and tell you about the importance of saving, investing, and organizing your finances but if you don’t have a relationship with money first, you will never stick to making good decisions with your money. Just like losing weight, we have to get to the bottom of what is really causing that “stumbling block” in order to conquer it.