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Tarra Jackson

Tarra Jackson, known as Madam Money, is a seasoned Personal Finance Expert with over 20 years experience in the personal finance sector as a corporate trainer, loan officer, Vice President of Lending and Executive Vice President at several major financial institutions. Tarra is the author of the best-selling book “Financial Fornication” as well as a nationally acclaimed speaker, commentator, consultant, author, & syndicated blogger covering topics from cash and credit management to insurance and investment basics.

Oct 15
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3 Retirement Savings Tips For Millennials

By Money Management, Relationships, Saving No Comments

A typical high school curriculum offers anything from the traditional subjects – language arts, algebra and U.S. history – to the not-so-traditional subjects, such as gardening, therapeutic dance and business technology.

But despite all those academic options, the educational system is leaving a void in the lives of many students, says CERTIFIED FINANCIAL PLANNERTM professional Eric Hutchinson.

“One thing not being taught in schools is how to manage money and prepare for retirement,” says Hutchinson, author of the book The Financial Briefing. “A lot of students are leaving high school without knowing what they need to know.”

As a result, Hutchinson says that many students – whether they attend college or go straight into the workforce after high school – don’t grasp how important the time factor is when it comes to saving for later in life. Too many people wait too long to start stashing away money for retirement, so that their retirement fund ends up being tens or even hundreds of thousands of dollars less than it might have been.

“If you take the right actions early in life, it will make your retirement much easier,” Hutchinson says. “It’s a whole lot harder to play catch up.”

Hutchinson offers some tips for those young people entering the workforce so they aren’t left with little or nothing once their careers are complete.

Think about saving before a life event forces you to.

Hutchinson says that often a major life event will cause people to begin thinking new thoughts about their futures. The event could be a death in the family, being laid off from a job or a debilitating injury. Hutchinson says it shouldn’t take a major life event to remind people to begin to build a nest egg to ensure the financial security of their families.

Technology can’t replace the human touch.

For all the convenience that technology provides us, it still can’t replace the experience of a connection with another person. An experienced personal financial advisor can ask the right questions, provide ongoing guidance, and be an important resource for those who want to plan for retirement, Hutchinson says. A computerized robo advisor or even a live advisor supporting a robo advisor service often doesn’t deliver the same depth of advice or relationship.




Don’t abandon the ride. Let time be your ally. 

Most people have been on a roller coaster. Even though the downhill plummet can be a little scary, most people don’t choose to jump off the ride, although they may think that thought! Investing in the stock market* with retirement savings can be a similar type of ride. There will be plenty of ups and downs, but the descent is no time to jump off, even if you do get jittery. Market history suggests that eventually things may work out, if you allow enough time. “Although past performance doesn’t guarantee future results, time can be an extremely valuable asset for a young person making retirement investments,” says Hutchinson. “Even with the worst of circumstances, people may be OK. As an example, 2008 was one of the worst periods for the stock market since the great depression. By the end of 2010, stocks had recovered enough to erase most of the damage done in the fall of 2008.”

“If you are trying to get rich overnight, it can be a high-risk proposition,” Hutchinson says. “Too many people are looking for instant gratification. Money and life don’t work that way.”

*Equity investing involves market risk, including possible loss of principal.

Eric Hutchinson (http://erichutchinsonfinancial.com) is a Certified Financial Planner™ with more than 30 years of experience in the areas of financial planning, investments, estate and tax planning. Hutchinson has professional affiliations with The Financial Planning Association, the Certified Financial Planner Board of Standards and the Investment Management Consultants Association. His new book The Financial Briefing, distills time-tested wisdom based on decades of professional experience and provides an overview of many of the financial and life issues everyone will face at some point.

Oct 01
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Confessions of a Financial Fornicator

By Money Management No Comments

It’s rather ironic if you think about it. When we are born until we leave home to go out on our own, it’s supposed to be our parent’s responsibility to teach us everything we need to know to be productive citizens of society. They teach us manners, right from wrong; they even give us the “sex talk,” the talk about how vital a good education is, and the importance of not drinking and driving.

Yet, there is one subject that the majority of parents tend to skip over in their lives’ lessons, and yet, it may be one of the most critical of them all…how to manage our finances. A lot of times parents bi-pass this important topic because they feel it’s a touchy subject that may open doors into their personal finances, which they may not want to share with their children. The problem with this is they are sending their children out into the world with no knowledge or skills of how the world of personal finances works. Because of this, a lot of people end up drowning in a sea of debt or, in my case, become a “financial fornicator.”

You see, when I was younger I didn’t really understand the value of my credit, how important it was, or how it would impact my life in the future. I wasn’t taught how to manage my cash flow. Money & credit management wasn’t taught in school, and it wasn’t a topic open for discussion at home.

[ctt template=”8″ link=”6luqz” via=”no” ]I vaguely remember having the #SexTalk with my parents, but I don’t recall ever having the #CreditTalk.[/ctt]

Most of what I did learn about cash flow management was what I observed of my family and friends.  Essentially by having minimal financial education, I learned how to be a Financial Fornicator.

[ctt template=”8″ link=”0TmBY” via=”no” ]“I learned how to be financially promiscuous by using multiple credit cards that I would use to buy stuff.”[/ctt]

See … What had happen was …

I had financial one night stands by buying “stuff” with those credit cards when I should have used cash. By living this way, I ended up with Financial STD (Substantially Tremendous Debt). I had so many financial diseases that it paralyzed my financial ability to live the life I was trying to buy with credit.

I realized how significant good credit was, when my bad credit limited my access to the things I needed and when it closed doors of opportunities.

“I should have saved my money and been responsible with credit. Instead, I abused it trying to get things to make it look and feel like I was living my dream.”

It can happen to anyone …

It’s so important that people understand that anyone can become a financial fornicator. For example; I was an financial institution executive. I was the one that helped people with their money management. What I realized was that just because I knew how to successfully run a financial institution, didn’t mean I was successful with managing my own finances.  I was a great steward of other people’s money as well as corporation’s fiscal soundness, but not as great at being a steward of my own fiscal stability.

“I had to shut down my ego, humble myself and admit that I needed help.”

I hated Budgets …

Then there is budgeting, I hated budgets. But, Why? Most financial fornicators will rebel if you tell them they can’t or not to spend money. I realized that my distaste for Budgets was because I was never taught how to use a budget as a tool to get what I needed and really wanted. Once I learned that a budget is a road map to my desired final financial destination, I became hooked on naming my dollars and planning my spending.

Time for Financial Rehab …

Once my credit mismanagement caught up with me and I could no longer hide from the huge amount of debt I had incurred, I knew it was time for help. In order for me to move forward and overcome my financial challenges, I had to go through a Financial Rehab. My financial rehab program was so successful that it is now a staple in my business of helping other financial fornicators.

10 Steps to Overcoming a Spending Addiction …

Being a Financial Fornicator means that you have a spending addiction. A Spending Addiction is just as real and serious as a drug or alcohol addiction.

This 10 step program has helped my clients and me. It’s a quick yet challenging process, but it works.

Step One: Admit that you have a problem and that your finances have become unmanageable.

Step Two: Identify what in your past developed your financial value system. We spend based on our value system that develops over time.

Step Three: Take ownership and responsibility for your financial situation. It’s no one else’s fault but your own. You have to be true with yourself and understand that you have to own what you’ve done or allowed to be done.

Step Four: Forgive yourself.  You’ve made a mistake. It’s Ok. Forgive yourself so you can move on.

Step Five: Get help.  Seek help from a financial services professional, preferably with one that has professional and/or personal experience with dealing with and resolving financial challenges.

Step Six: Get educated. Improve yourself & your situation through information. Find out how to help yourself, as a spender.

Step Seven: Plan your prosperity by creating a finical vision map. You have to be able to see what your final financial destination is going to be. Develop your Financial GPS…Goal Planning System to create action plans.

Step Eight: Take action, you can plan all you want, but you need to take action.

Step Nine: Hold yourself accountable. It’s great to have accountability partners and mentors; but at the end of the day, even if they don’t call or you’re not around them, you need to hold yourself accountable. You need to remember your final financial destination and how important it is to you, which is your why you’re doing the rehab.

Step Ten: Reward yourself responsibly. When you’ve reached a certain goal, reward yourself, but be responsible about it.

Are you a Financial Fornicator, too?

If you are not sure if you are a Financial Fornicator, I’d like to share with you a few tips to tell if you may be one.

So, here goes … you may be a financial fornicator if …

  • You use multiple credit cards to buy multiple things. You may have several credit cards or charge cards and they are either maxed out or almost maxed out.
  • You “have” or feel the need to spend money, whether it’s on food, alcohol, clothing, shoes or whatever. If something makes you sad, you want to buy something. If something makes you happy, you want to buy something.
  • You’re not answering your creditors’ calls because you may be late on your loan payments.

Credit is Not Bad …

Just keep in mind that Credit is not bad. Credit is meant to be a tool and leverage, not a anchor or lifesaver.

[ctt template=”8″ link=”qK4bN” via=”no” ]Credit is like Sex. Just because you can, doesn’t mean you should. And if you do, use Protection – a Budget![/ctt]

I’m proud that I am beating my addiction and that every day I manage to keep fighting. I encourage you to keep fighting for your financial freedom. For more tips on how to cure Financial STDs, read my book, “Financial Fornication.”

Oct 01
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5 Money Tips for College Freshmen

By College, Money Management, Saving No Comments

As a college freshman, you are about to embark on an exciting and new adventure of college life.  This great experience requires new responsibilities. So, here are 5 Financial Tips for College Freshmen.

Protect Your Credit Cookies!

One of the most precious and valuable assets that you will have in your life is “Good Credit.”  Your credit history and credit score will either make it easier for harder for you to get what you need or want, like your first apartment, your first car, your own cell phone account, etc.  So don’t just let anyone look at your credit, regardless of the minuscule discount or cheap give away gift you’re offered. Also, avoid getting loans that you will not be able to afford to pay.

[ctt template=”8″ link=”a86pl” via=”yes” ]Don’t just let anyone look at your Credit Cookies! – #MoneyTipsForFreshmen[/ctt]

Use Used!

Used Text Books are the BEST!!!  Trust me. Not only are they more cost effective and less expensive than new text books, but you might get lucky and get a text book with highlighted information by students who previously took the class.

Be a Financial Techy

Don’t just use technology for Social Networking.  Use it to help you manage your bank accounts to avoid unnecessary and excessive fees. Set up online banking and account balance alerts to text or email you when your account balances reaches a certain dollar amount.  This will not only help you stay on target with budget, it will also help you avoid those pesky overdraft fees.

You can also manage your accounts and create a budget using the Mint app or at Mint.com.

Be a Coupon King or Queen

Don’t be the one that eats ramen noodles all semester.  Master the art of virtual couponing. Websites like Groupon.com offer deals on dining out and other services that can help you maintain your budget. You can also take those unused gift cards you don’t want and trade them for cash on sites like Raise.com.

Also get a grocery store discount card to add coupons to it through their website.

Saving is Sexy! 

Being broke or begging for money is not Hot!  But … Saving is Sexy!  Make sure you set aside at least 10% of your income from your job, money from parents, or monetary gifts and put it in a savings account for emergencies or for monthly splurging.  Saving early ensure financial security later.

[ctt template=”8″ link=”ZjJ4b” via=”yes” ]Being Broke is Not Hot! But … Saving Is Sexy! – #MoneyTipsForFreshmen[/ctt]

By following these five easy tips you will be the envy of your broke friends!  Best wishes.

Sep 26
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Your Credit Score Is Not Your Story

By Credit, Money Management No Comments

Remember the time you went to a bookstore? You were surrounded by millions of books and magazines. Your intention was to buy one, maybe two or three books about a general subject. You go to the Subject section and now … you must choose. Hmmmm.

How did you choose?

Was it the cover?

Was it the Title?

Was it the Author?

Did someone refer you to a specific book?

Generally, most book buying consumers look at the cover, then the title to determine if they are going to pick up the book to read the book summary on the back, open it to read the table of contents or a few paragraphs of the 1st chapter.

Ironically, this is how most financial institutions make their judgmental decisions to approve or decline a loan request. Right, wrong or indifferent, the Credit Score is the “Title” to the story that is in your credit report, the “Book.”

If the Credit Score (title of the book) is “attractive,” aka good credit, the lender will look at the credit report based on the loan request (read the table of contents or begin reading the book). If the lender likes what they see (the request and credit is within their lending policies and guidelines), they approve the loan (buy the book).

If the Credit Score (title of the book) is “unattractive,” aka bad credit, the lender will deny the loan request (put the book back on the shelf).

Related: How Credit Scores Are Calculated

Although, not all lenders may be this cut and dry, most DO base their credit request decisions based on the credit score.

Have you ever missed out on an awesome book because it had a horrible title or crappy cover?

It was only when friends, family, or Oprah said that the book was a Must Read that you decided to check it out.

Have you ever missed out on an awesome relationship with someone because they did not fit your desired requirements, physically?

It was only when they married someone else and you later found out that they were a millionaire and wanted to take care of you — for life.

Ok, maybe that one is a stretch, but you get my point.

Lenders may be missing out on wonderful customers who may have a very low credit score and “colorful” credit, but may be a less credit risk because they now have a job or a better job and are willing to do automatic payments (using payroll deduction or direct deposit) to pay on their loan to re-establish their credit.




Yes. There are many people with low credit scores because they were negligent with their credit and intentionally had no intent to pay. These people are DIFFERENT and I’ll deal with them in another article.

We’re focusing on people who low credit scores because of an unfortunate, unforeseen and unexpected life interruption, like medical expenses, being laid off, furloughed, divorced, etc. When they are finally getting back on their feet, they may need a loan. And, they have a Story.

For these individuals who have a willingness to pay and desire to reestablish their credit, here are a few helpful hints when your loan request has been denied due to your credit score:

Ask for Specific Reasons why you were denied.

You will get a standard letter with 1 to 3 denial reasons. Call the lender to get specifics as to why your loan request was denied.

For example: You applied for an auto loan, but there is a recent Repossession on your credit report. The lender, may not want to take the risk of you defaulting on the auto loan with them? As a consumer with a story, the repossession may have been because you were laid off and you had to turn in the vehicle because you could not afford it. Now you can!!! How about THAT!

Related: 5 Easy Ways to Improve Your Credit

[ctt template=”8″ link=”Bsx32″ via=”no” ]Denied? Call the lender for specific reasons why your loan request was denied. You can’t fix what you don’t know.[/ctt]

Request to meet with the Loan Manager (or their supervisor) in person, if possible.

Since your Credit Score (the Title of your book) may be … crappy, you may be able to get a second look. Remember, Perception is Everything! So, if you are able to meet with the manager in person, go to the meeting like you would a job interview and be prepared to share your story, answer their questions and ask lots of questions.

Ask for your Loan Request to be reconsidered.

Some lenders may have a loan appeal process. If they do not, ask for a loan manager or supervisor to review your loan request again. Make sure you send this request in writing with Your Story and supporting documentation, if available or necessary.

Related: Anatomy of a Credit Report

Offer to do Automatic Payment (Payroll Deduction or Direct Deposit). 

If the lender knows that they are going to “automatically” receive the loan payments on time, they may see the loan request as less of a credit risk and may reconsider.

Consider a Counter Offer / Ask for a lesser amount.

The more the loan amount, the more the risk to the lender. If the lender does not offer a counter offer, ask for a lesser loan amount.




For example: Ask if they will consider approving $500 for 6 months instead of $1000 for 12 months. Let the lender know that you are open to negotiate.

Consider a Credit Union.

If your bank still won’t consider your loan request, try a local credit union. Unlike many banks, credit unions understand that Credit Scores are not the full story. Therefore, they may pay more attention to what is in the report, rather than just the Credit Score. Even if the credit union cannot approve your loan request, they may provide you with resources that will help you become more creditworthy in the future.

The reality is that not everyone will be approved for the loans they want. BUT… if you have a legitimate story as to why your credit is so “colorful” and you now that the means (income and ability to pay) to restore you credit, these tips may just help.

BTW … don’t forget to get a free copy of your credit reports at www.annualcreditreport.com. No one should know more about what’s in your credit than you do.