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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.

Sep 01
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3 Exit Strategies For Leaving A Financially Abusive Relationship With Your Bank

By Money Management No Comments

Many consumers are in financially abusive relationships with banks that are “not that into” them. These consumers are dealing with ridiculously high loan interest rates, very low deposit rates, too many and extremely high fees, as well as poor customer service.

When I was in a financially abusive relationship, it not only angered me, it made me feel weak and hopeless because I didn’t know how or if I could escape. Then one day … I did! I left my “un-wealthy” financially abusive relationship with my bank.

Here are three effective Exit Strategies for getting out of a Financially Abusive Relationship from my book, Financial Fornication.

Exit Strategy 1: Talk About It

The opportunity of improving your financial situation happens by talking with the right person at the bank. So, before deciding to break up with your bank, be sure to …

  1. Share concerns with a Customer Service Representative, in person if possible.
  2. Speak with a Branch or Department Manager about concerns for resolution.
  3. Write a letter to the Senior or Executive Manager about concerns if they are unresolved at the branch level.

If efforts to resolve the matter are not addressed appropriately or ignored, move to the next strategy.

Exit Strategy 2: Start Financial Dating

Begin the process of financially dating other financial institutions to find one (or two) that meet most of your required financial needs (deposit accounts, loans, internet banking, etc.). In my book Financial Fornication, I share in detail the 5 phases of Financial Dating to avoid getting into financially abusive relationships.

  1. Explore financial options (banks vs. credit unions).
  2. Investigate the financial institution(s) via the internet or word of mouth (research).
  3. Experience the Introduction by going to the branch(es) or calling customer service to ask questions.
  4. Start slow by Courting the financial institution by using one or two of their financial services (open a savings or checking account), when your ready to make a commitment!
  5. After all 4 phases have been executed, then Commit to your new primary financial institution (PFI) by using more of their products and services.

These phases should not be skipped. It is necessary and worth taking the time to get to know financial institutions to make sure they are right for your personal or business financial situation.

Once your new financial “main squeeze” is found, it will make it easier to leave your existing bank.

Exit Strategy 3: Exit Slowly & Deliberately

Whether a new financial “main squeeze” is on standby or not, slowly stop using the bank’s products and services.

Be sure to…

  1. Review bank statements carefully to identify all direct deposit or automatic payments coming out of the account(s).
  2. Stop or change automatic payments from the account(s) and update payment information with the new bank account information, when available.
  3. Ensure that all accounts are in good standing or current. This will ensure a clean break. The last thing you want is a reason for the bank you’re breaking up with to have to keep contacting and mess up your relationship with your new bank “boo” by telling your messy money biz to chexsystems.
  4. If possible or necessary, refinance loans to your new money “main squeeze.” If this is not possible, keep this in mind … having loans with a bank is like having a child(ren) with an estranged spouse or mate. Leaving the relationship does not diminish the responsibility of the child(ren). Therefore, leaving the financial institutions does not diminish the legal responsibility of the credit obligation. If refinancing is not an option, continue to make loan payments to your ex-bank on time until it is paid in full to avoid collection and credit report drama.
  5. Lastly, stop or reduce direct deposit into the account.

Once these steps are executed, a clean break is relatively easy.

Even though the financial relationship may seem extremely challenging right now, just know that all financial institutions are not the same. There are lots of really good banks and credit unions out there that value and appreciate their customers. Once you find them, some of them even provide an easier method of transiting automatic payments and direct deposits to them through what is called Switch Kits.

So don’t give up. There is hope. And most importantly, you deserve better!

For more tips on how to have a more wealthy relationship with your money, read my book, Financial Fornication on Kindle or Amazon.com.

Aug 30
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What Cardi B Taught Me About Making Money Moves

By Business, Money Management No Comments

Cardi B hit the music industry by storm with her song “Bodak Yellow.” But don’t get it twisted, she’s been in the entertainment game for a long time. To be honest, I didn’t know who Cardi B was until I saw her name trending on Twitter. After hearing “Bodak Yellow,” I was hooked and a new fan. I’m not sure what everyone else got from the song, besides a catchy hook, but her story in her song reinforced a few lessons about money and business moves.

Here’s are the lessons Cardi B reinforced about “Making Money Moves.”

Change Your Mindset to Change Your Money

“I don’t dance now, I make money moves. I don’t gotta dance, I make money moves.”

Yeah, Cardi B was a stripper and her dance moves may be what made her money. However, when she advanced out of the nocturnal ballerina game to the world of social media, television and now the music industry, her focus is on making money moves. That requires a major mindset shift. Having a Money Moves mindset means thinking big, setting goals, and making better decisions when it comes to personal and business finances. So, change your mindset from “your current financial situation” to what you want and where you want to be, financially.

Pay Attention to Your Bank Accounts

“And I just checked my accounts, turns out, I’m rich, I’m rich, I’m rich. I put my hand above my hip, I bet you dip, he dip, she dip…”

Checking your bank accounts often is a part of money management. Knowing how much is coming in, and more importantly, what is going out of your bank account will help you control your finances. Whether you call it a Budget or Spending Plan, tracking your spending and naming your dollars will help you get excited about checking your accounts. Use Mobile Apps like Mint to make money management easier and fun.

Buy Nice Things You Want When You Can AFFORD It

“…These expensive, these is red bottoms, these is bloody shoes. Hit the store, I can get ’em both, I don’t wanna choose …”

Buying nice things is not a problem when you can afford them. Many people buy stuff to look “rich” or look like they have more than they really have. Let’s face it, buying a $200 purse without having $200 or more in the bank is not cute. However, if you want to buy those haute shoes or that Michael Khors bag, save UP for it instead of using credit. Rule of thumb for small ($100 – $1000) or medium ($1000 – $5000) purchases: have the amount more in your savings account than the cost of the item your want to buy. That way, you can buy the things you want guilt-free and “you ain’t gotta choose.” 😉

Be Intentional About Your Actions and Outings

“You in the club just to party, I’m there, I get paid a fee. I be in and out them banks so much, I know they’re tired of me.”

I learned the easiest and fastest way to lose your money is to go to every networking event without a purpose. Not every networking event or meeting is right for your bank account. Look for opportunities that will positively add to your life, business and bank account.

Comment the “Money Moves” you learned from Card B below.

Aug 24
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Dear Credit … Let’s Just Be Friends

By Credit, Love and Money, Money Management No Comments

Dear Credit,

I was so excited to meet you that I had to have you! But, I think we rushed into our commitment. Instead of being patient and learning more about you, I fell in love with what you I could acquire with you without realizing the cost of our relationship. So, our financial one-night stand turned into a long-term financially abusive relationship.

You didn’t change … I did.

I was surprised when your “giving” demeanor changed into “Debt,” the “Taker.” But, that is just a part of your personality.

Now that I am wiser, I realize that our relationship is financially and emotionally unhealthy. For example, when I started having financial problems, you were relentless in your demand of my money, time and emotions to satisfy you.

It’s not you … It’s me.

Credit, you are who you are. And because I was financially promiscuous and did not use financial contraception (a budget) with you, I wound up with Financial STDs (Substantially Tremendous Debt). That financial dis-ease not only infected and affected me, it infected and affected everyone around me, especially my family. I took time away from my family to work to make enough money to relieve the financial hardship I was in with you. I have just decided to make the changes required to have a better financial life for my family and me.

I’m in love with another.

I can’t go on treating the one I love like a financial side-piece. Even though you think that you are the center of my universe, I will no longer work and live my life enslaved by you. I’m actually in love with Money and he’s been helping me get a handle on stabilizing the financial roller-coaster I’ve been riding on with you.

You’re not bad.

Credit, you are not Bad. You are actually a good business partner and friend. I just got consumed with you and became overwhelmed when you turned into your alter ego, Debt.

Let’s just be friends.

Credit, I don’t want to lose you, but our current relationship is financially abusive. I do believe that there are some awesome opportunities for us to partner in the near future. But, this time, I am better prepared to handle this partnership.

Thank you for being there for me.

I do appreciate everything you helped me to acquire. It was indeed a learning experience. Now that I know better, I look forward to having a more productive and profitable relationship with you as “friends.”

Sincerely,

Tarra

Aug 16
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7 Tips for Financial Freedom

By Credit, Money Management 3 Comments

Do you desire financial freedom? I DO!

While interviewing a few millionaires and people who are considered “Financially Free” and living the life of their dreams, each of them shared some tips about how to become financially free. So, here are 7 Easy Tips to Achieve Financial Freedom.

Set a SMART Goal.

Your first goal doesn’t have to be big. Your goal should be Small, Meaningful, Attainable, Reasonable & Timed, which will put you in a better financial position than you are right now. Making your goal too big or too difficult may make you feel defeated if you don’t or cannot reach it. For example, start by trying to save $500 in 6 months. Once you reach your goal, work towards the next one.

Control Spending.

Overspending is the assassin of savings and can keep you in financial bondage. By controlling your spending through a spending plan or budget will help you make better purchasing decisions. Also, do small things to avoid miscellaneous spending that takes a big chunk out of your budget. For example, avoid getting that $5 cup of coffee every morning; bring your lunch to work instead of eating out every day; look for season sales where you can get 50-75% discounts for clothes or technology; and cook dinner instead of eating out every night. You will see that you will save a heap of change over time.

Save with a passion.

You have to be passionate about your savings in order to make real substantial progress. Being half-hearted about your goals won’t get you anywhere. You maintain momentum when your saving is driven by your passion. Remember, financial freedom doesn’t come free, it comes with a price. In order to reach your goal of financial freedom for your future, you must first make small sacrifices now. Develop a monthly savings goal with an actual dollar figure and use discipline and self control to reach it.

Avoid high cost mistakes.

Major money mistakes are by far the best way to sabotage your financial future. We are all probably guilty of at least one big financial blunder in our past. In life there are always setbacks, delays, obstacles, and problems to overcome. If you can avoid high cost mistakes by staying focused on your priorities and goals, you can continue on your path with minimal or no disruption. If life throws a monkey wrench at you, remember to keep focused with positive thinking. Stay optimistic, even in the worst of times. Our attitude towards each problem, dictates our success or failure in overcoming them. Use any disruption or setback as a motivator to work harder, catapulting yourself forward.

Invest with diligence.

You don’t have to be a stock broker to know how to invest. All it takes is a little self-education and desire to do so. You can start by starting a 401k with your employer, if they offer it. If they don’t, then open a Traditional IRA (Individual Retirement Account) or Roth IRA. Start making small contributions to the retirement savings account on a consistent basis. For a 401k, you should make sure to contribute enough to get the company match, if they offer it. Most companies match contributions up to 6% of your weekly gross pay. Of course it will vary from one company to the next. Start contributing as soon and as much as possible. Starting at a young age will increase your chances of having a nice nest egg at retirement. Time and compounding will work for you.

Timing is Everything.

Bad timing in finances can be devastating. Moving ahead too quickly by making a purchase of a big ticket item before you can really afford it can be detrimental. Timing is crucial with purchasing and investing. For example, when purchasing a vehicle, go shopping in October, close to the end of the month. This is when most dealerships get their new shipment of the new year vehicles. They usually have great deals on current and past years models to make room for the upcoming year’s new models.

Create 7 Streams of Income.

Identify at least 7 ways that you can create revenue. Work on the first 2 – 3 by establishing a plan of action, seek assistance, and execute. Then work on the next 2. Streams of income could include Employment income, investments, home-based business, etc. This is powerful because if one of your streams of income is stopped or reduced, you will the others to fall back on. Helpful Hint: Be creative!!! Remember all great new businesses or ventures start with one small creative idea. Steve Jobs, the founder of Apple Computer started his business by selling his car for supplies and building his first computers in his parent’s garage.

Using these 7 easy tips will help you on your journey to financial freedom.

Comment your tips for financial freedom below.