I hate to sound like a whiner but there are some common customer service issues that really bug me as a consumer. I’ve listed three here but I’m sure you probably have a few complaints of your own.

1. Tough to get live customer service reps on the phone. This problem goes hand in hand with long waiting times and annoying automated phone systems. For example, the three big credit scoring companies can shut off my access to credit at any time yet I must contact them in writing if I find a mistake on my credit report.

I should be able to speak directly to someone if my credit is in jeopardy. Companies with long hold times should either hire more customer service agents or extend their phone hours.

2. Not respecting scheduled appointments. Doctor offices are probably the worst offenders in this area. What’s the point of setting an appointment time if you’re still going to be sitting in a waiting room for an hour or more anyway?

I understand that doctors are busy people and that their days can be unpredictable. But that doesn’t make it okay to waste my time. I’m a busy person too just like everybody else. If you can’t see me within 30 minutes of my scheduled appointment, regardless of your profession, then at least call me as early as possible to explain the situation.

3. Investor education materials go to waste. I am referring mainly about the massive prospectus reports that get shipped annually to individual investors. For example, I recently received a 300 page prospectus from my annuity provider. Does anybody actually read these things?

I know companies are required by law to send them to investors but there’s got to be a better way to spend the millions of dollars that go into printing and shipping costs. Could investment firms provide prospectuses upon request instead? Any other suggestions?

You’ve probably heard the horror stories about people having their identity stolen along with their money. Fixing the damage can also be a long and costly battle so don’t become an ID theft victim. Here is a list of tips to help protect your identity:

• Protect personal information. Opt out of mailing lists to keep your mailbox free of identity theft temptations.

• Avoid sharing unnecessary credit card information. Resist providing your social security number.

• Shred documents with personal information before throwing them away. It is very common that important account numbers and statements are simply tossed in the trash where they can be easily retrieved.

• Keep documents with personal data secure.

• Choose PINs and passwords that cannot be easily guessed, and do not reveal them to anyone. Be sure to change these codes frequently.

• Never write down PINs and passwords, especially on the outside of envelopes or checks.

• Regularly check your credit report for fraudulent information.

• Exclude personal information from company and family websites.

• Be sure your information is not available via online directories and searchable databases.

• Subscribe to an identity scoring and monitoring system.

*Courtesy of AlliedBarton Security Services

I woke up in a great mood this morning. The sky looks a little bluer and the palm trees seem a little taller on this beautiful Florida day. The reason for my sunny disposition can be attributed directly to my rediscovering the joy of entrepreneurship due to recent changes here at Young Money.

In May, Young Money Media was purchased by a startup business based in Maryland. The sale meant that I went from working at a mid-sized, non-profit organization with about 500 employees to doing the same job for a private company with a much smaller staff. Some people would look upon this ownership change as a humbling step down but instead it turns out the experience has re-energized my career.

For years, I interviewed and wrote about the best student entrepreneurs in the country. I admired these young business owners for their passion and willingness to take risks. But yet I could never truly relate to them because I had never been an entrepreneur myself. Joining a startup gave me the chance to help re-launch Young Money as if it was a hot new brand in the college marketplace. Lifting the restrictions imposed by our former parent company also makes it possible for us to go after new sponsor and partnership opportunities that were never an option before.

I may not actually own Young Money but I am now more personally invested in the future success of the company than ever before. If the business prospers, then I will profit equally along with the rest of our team. If our venture fails, then we will all be looking for new jobs soon. Knowing how much is on the line gives me a rush of excitement and a strong sense of urgency. This fresh start made me recall what I felt like right after graduating college when my spirits were sky high and the possibilities seemed endless.

Of course, being part of a startup does mean that you also wind up having a large workload. Does that challenge discourage me at all? No way! That’s because our new owners are just as passionate as I am about Young Money’s core mission of changing the way young adults earn, manage, invest and spend money.

I really believe we are building something special here and I’m eager to see how quickly we can grow in the near future. I also think that I’ll be able to understand entrepreneurship from a completely different perspective as a result of this experience. I’ve finally joined the entrepreneurs’ club and it feels pretty good to me.

Q:   I’ve been working at a large company since graduating from college four years ago. I’m frustrated that my career is not progressing as quickly as I’d like. I’ve considered starting my own business, but I hardly have any money saved. My family can’t afford to help me financially. Do I have to wait until I have more money saved to own my own business? 

A:  Don’t let your bank account dictate or limit your business decisions. For those that need financial assistance to start a business, choosing to own a franchise could be a wise decision because it is easier to get financed when opening an existing business. There are several financing options available when you pursue franchise ownership. Some franchisors have partnerships with lenders and offer in-house financing programs. There are also home equity lines of credit, traditional financing plans through banks and loans that are backed by the Small Business Administration (SBA). Angel investors, wealthy groups or individuals that are looking for solid investments may also be interested in lending you money to start your business and some franchises are savvy enough to help you connect with these people. Smaller, private lenders offer non-traditional financing plans, some of which can be found online. With a variety of financing options available, you’ll surely find a plan that fits your goals and your lifestyle.

There are franchises in every industry imaginable. So whether you’re interested in owning a business services company, home decorating business, fitness center, salon, specialty restaurant or a store of your own, you’re sure to find a business that interests you. There are even low-investment opportunities available that will allow you to get into business for yourself for as low as $10,000. Many franchises can be operated from your home, which reduces your overhead and gives you lifestyle flexibility and freedom. Franchises are also an excellent choice because they are established businesses, with proven concepts and built-in brand awareness.

Owning a franchise is easier than starting a company from scratch because you benefit from an established business model and you get extensive training and support. In addition most franchise opportunities don’t require you to have prior experience in a particular industry. Franchises are typically looking for a savvy, motivated business person with the desire to grow a company. So whether you decide to enter a new field, or build on the industry experience you have, there are several opportunities for owning a franchise- and receiving the financing you need.

Answer provided by Jocelyn Chavez. Ms. Chavez is a business advisor for Franchise Solutions, Inc.

Q: I read stories suggesting that twentysomethings put a portion of their earnings into a high-interest CD savings account. The best rate offered by my bank is 2.70% APY. But the most recent inflation forecast says that the inflation rate will be over 3%. So it seems to me that investing in a CD means I am losing money, not making it. Is there a better place to put my savings?

A: You raise an important issue. Unfortunately, inflation erodes the value of our savings and investments. Right now, “core” inflation which excludes food and energy is about 2 to 2 1/2%. Obviously, if we add in food and energy, the inflation rate is considerably higher. Therefore, if all your investments are in CDs that pay 2 1/2 to 3%, you are losing money.

Typically, however, we do not put all our investment eggs in one basket. You “diversify” your investments. Your total “portfolio” of investments might include some very safe investments like CDs, but it might also include investments like stocks or mutual funds that will provide you with a higher return over time but not necessarily within the next month or year.

In selecting your mix of investments there are several factors to consider. First, when do you need the money? If you need it within the next 6 months to pay tuition or the down payment on a house, you probably don’t want it in a risky type of investment. Second, what is your tolerance for risk? CDs don’t pay a very high interest rate, but, if they are insured, they are perfectly safe. Alternatively, you have no guarantees with things like stocks or real estate, so you would be taking more risk.

The Playbook for Life Website discusses different types of investments and key issues such as liquidity, risk, and return. Go to http://www.playbook.thehartford.com. When you get to the site, click on “Tools” and then click on “Kinds of Investments.”

Answer provided by Dr. Susan Coleman, Professor of Finance at the University of Hartford and Educational Advisor to The Hartford’s Playbook for Life program. To download or request a Playbook for Life and get more tips on everything from taxes to insurance to evaluating job offers, visit www.playbook.thehartford.com.

Do you have what it takes to be a millionaire by age 30? The authors of the book “Millionaire By Thirty: The Quickest Path to Early Financial Independence” claim they can “put young people on the path to financial independence through investing in real estate, budgeting effectively, avoiding unnecessary taxes, and using life insurance to create tax-free income…everything they need to know to become young millionaires.”

I haven’t seen the book yet but they’ve created a brief Millionaire By Thirty quiz to see how well today’s twentysomethings (and older!) know their money. The quiz features multiple choice questions such as “Which of these are mistakes that many people in their twenties make?” and “According to the U.S. Census Bureau as of 2006 how many people under 25 owned their own home?” I actually learned some things from taking the free quiz so it’s worth checking out. Hopefully you’ll score better than me (8 out of 12 right).

The rising cost of a college education has become a serious national issue so parents and students need to be smart consumers when deciding how to pay for college. According to student loan company MyRichUncle, the rules of thumb for student borrowing are:

1. Do not borrow a dollar more than you really need.

2. Assume the cost will rise by approximately 5% to 6% each year.

3. Look for and secure grants and scholarships before loans.

4. Look for cheap money: Federally-guaranteed Stafford loans are less expensive than private student loans.

5. Look for the “cheapest cheap money”: Some lenders charge less than others for federally-guaranteed student loans. (The government does not set the rate; it sets the maximum rate.)

6. Private student loans should only be considered as a way to fill any gap.  (Know that private student loans are almost always cheaper than credit cards.)

7. When going for private loans, shop hard and thoroughly, and do the math: One percentage point of interest can make a big difference in terms of the total amount you have to pay back.

8. Carefully consider the pros and cons of loan repayment options, including deferment while in school.  Deferring reduces the strain of making payments while so much capital is being spent on tuition and other expenses.  However, deferring does increase the overall cost of borrowing.

9. Do not borrow more than you believe you can afford based on your expected income post-graduation.

Q: Do U.S. credit card companies offer lifetime free credit cards? I mean with no annual fees. Such cards make a lot of sense, especially for those who don’t use their cards much.

A: Wouldn’t it be nice if something was free for life?  Unfortunately, aside from your parents’ affection, not much falls into that category.  Credit cards can have a number of features.  Some have no annual fee, others have a low introductory rate, others give you airline miles or cash back.  You should select the credit card that has the best features to meet your needs.  To help you evaluate options, one of the Websites that I like is bankrate.com.  It allows you to search for credit card options by annual fee, interest rate, airline miles, etc.

A word of warning, however.  The fact that you get a certain deal from a credit card company today does not guarantee that that benefit will remain in existence indefinitely.  You need to read your cardholder’s agreement carefully for terms and conditions, and you need to examine your credit card statement each month to see if there have been any unannounced changes.

I once had a credit card that started out charging no interest on unpaid balances during the grace period.  Without telling me, they suddenly shifted to charging interest on balances from the date of the purchase.  If I had not been reading my statements each month, I never would have known.  I ended up canceling that card because of those extra interest charges.  The message here is do your homework, be vigilant, and serve as your own best advocate.

Answer provided by Dr. Susan Coleman, Professor of Finance at the University of Hartford and Educational Advisor to The Hartford’s Playbook for Life program. To download or request a Playbook for Life and get more tips on everything from taxes to insurance to evaluating job offers, visit www.playbook.thehartford.com.

Q: I have a full-time sales job that pays me based solely on commissions earned. My income can vary anywhere from $1,500 to $3,500 per month. My expenses  are fairly steady but I never know how much money I’ll earn each week. How can I make a practical personal budget when my monthly income varies so much?

A: You are smart to be thinking about these issues!  Budgeting is important, and having a variable income makes the task of budgeting somewhat more complicated.  It does provide you with some opportunities as well, however.

First, if you know that your income will be at least $1,500 per month, your monthly fixed costs should come out of that.  These costs include things like rent and utilities.  If your employer has a 401k program, be sure to participate in that also.  You should save an amount at least equal to your employer’s match.  In other words, if your employer will match up to 5% of your salary, you should save 5% and your employer will match that with an additional 5%.  The employer match is like “free money.”

You also indicate that your monthly income can be as high as $3,500 per month.  Thus you have the potential to have as much as a $2,000 “surplus” in some months.  This “surplus” should go to 2 places as follows:

1)    Use 1/2 to set up a “contingency” fund to cover additional variable expenses and fixed expenses that do not occur each month.  Variable expenses would include things like food, entertainment, vacations, and clothing.  Fixed expenses that do not occur monthly would include things like payments for insurance, car repairs, or health related expenses.  Within the contingency fund, budget to make sure that the fixed expenses get paid first.  You can always adjust your variable expenses up or down.
2)    Use the other half of your “surplus” to save for intermediate or long term goals.  These could include things like buying a car, paying for a graduate degree, buying a house, saving for a child’s education, or saving for retirement.

The fact that you have a variable income does pose some additional challenges, but if you follow the strategy outlined above, you will also have the opportunity to save a substantial portion of your “surplus” earnings for longer term goals.  You will thank yourself for that!

Answer provided by Dr. Susan Coleman, Professor of Finance at the University of Hartford and Educational Advisor to The Hartford’s Playbook for Life program. To download or request a Playbook for Life and get more tips on everything from taxes to insurance to evaluating job offers, visit www.playbook.thehartford.com.

Today’s college graduates are in the perfect position to start their personal financial lives on the right foot. Here are some helpful tips on how to build financial security offered by Ethan Ewing, president of Bills.com, a consumer education and comparison shopping website.

“The average American graduates from college with around $20,000 in debt, a starting salary around $30,000, and a burning desire to live it up now that cash is coming in,” Ewing said. “But the first few years of your working life are the perfect time to invest in your future by getting rid of as much debt as you can and investing in yourself.”

Follow these steps from Bills.com to lay a foundation for years to come.

1. Calculate your net worth. Your salary might look good. But take a realistic look at the complete picture by tallying your net worth. Add up the value of your assets (investments, resale value of a home or automobile or other major assets, and the value of cash, savings and checking accounts). Total your debts, including mortgage or car loan, student loans, personal loans and credit card balances. Subtract debts from assets. “If the number is negative, you have significant work to do,” Ewing warned. “If it is positive, work to make it stronger.”

2. Pay off credit card debt first. Of all personal debt, credit cards typically have the highest interest rates, and their issuers often are the most aggressive creditors when payments are missed. “If you have multiple credit cards, a car loan or other debt, begin paying the most on your debt that carries the highest interest rate while making minimum payments on other debt,” Ewing explained. “When the debt with the highest interest rate is paid in full, move to the next-highest-rate debt and implement the same strategy.”

3. Tackle student loans. For most people, student loan interest is tax-deductible, and the debt was accrued for a good cause: an investment in the future. Still, the sooner the debt is paid, the sooner graduates can use their money to purchase a home, invest in retirement or pursue another goal. “Trust us: In 10 years, you will be thrilled if you eliminated your loan payment early,” Ewing said. “After paying your credit card debt, apply as much of your free cash flow to student loan payments with an eye to paying them off as early as possible.”

4. Save part of your income. Get into the best habit — saving for the future. Set up paychecks so that 10 percent is deposited directly into a savings or money market account. The goal should be to accumulate enough funds to cover expenses for three to six months in case of an emergency. This emergency fund also can help avoid putting unexpected costs on a credit card.

5. Plan for retirement. Any employee whose employer matches contributions to a 401 (k) fund should contribute the maximum amount that is matched. Today’s savings will pay off amply for the future, with the benefit of compound interest. People who are on their own for retirement savings should first establish an emergency fund, then put that 10 percent savings into IRAs and other retirement savings. “Even when your salary increases, keep saving 10 percent of the amount,” Ewing suggested.

6. Live within your means. Last, but not least, do not go into debt to fund a new lifestyle. Plenty of people who live in posh apartments or drive the newest cars do so under a tremendous debt burden. “Instead of joining them, live modestly and enjoy the knowledge that you can balance your checkbook with a clear conscience,” Ewing urged

“Every step you take today to get out of debt frees up options for your future,” Ewing reminded graduates. “You will be able to purchase a better home, have more options for everything from vacation to children’s education, and plan for a more secure retirement if you get — and stay — in the habit of making wise financial choices today.”