Jill Russo Foster

Tips for Successful Personal Finances

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A Note from Jill

budget-tracker

Last month (as we do every January) we got back on track after holiday spending.  We looked at our finances and made some changes.  This year, we tracked our spending to see where our money was going.  Not many surprises for us – that’s a good thing.

We find that when we track our spending, we think twice about those little impulse expenses: bringing lunch from home instead of eating out, planning dinner ahead versus picking up take-out.  All these little things add up for us.

I encourage you to do this for 30 days.  It takes less than 5 minutes a day and can be eye opening.  Let me know what you find out about your spending habits. If the thought is overwhelming, my budget tracker could make things easier for you. You just enter the numbers and it adds it all up for you.

We’ve received some great name suggestions, but we’re still looking for more. Quick Tips will become something new, fresh and inspiring and we need a new name. We’d love to hear some creative new ideas.

Want to help? Submit your name suggestions to jill@jillrussofoster.com or on Facebook, LinkedIn,  Twitter or here. I know you have some great ideas, so share ’em with me!

Passing the Fees on to You

cashier

You know I like to save money, so I was a little disturbed by this news. You may be charged an extra fee when you use your credit card – both in stores and online. I don’t want to confuse you, because there are a lot of “if’s, and’s or but’s”. Where do I start? I want to explain this as clearly as possible.

  1. This will affect your credit cards not your debit cards.
  2. This will affect your Visa and MasterCard, but not your American Express card.
  3. This may only affect your online purchases if you live in, or are visiting, an exempt state. Check the list on consumer-action.org

Why the extra fee?

Because merchants are tired of footing the bill for credit card fees. They get charged up to 4% for every credit card transaction, and that eats into their profits. If they’re a small retailer, it can really hurt their bottom line. They want to make it convenient for you to buy, but the fees can be painful and costly.

What are the rules?

  1. They can’t charge you more than they’re charged. If they pay 1.45% on every credit card purchase, they can’t add more than 1.45% to your bill.
  2. The charges must be clearly posted – in store and online. Look around and be sure to read the small print on checkout. If you’re not sure – ask!

My thoughts on the new fees

I’m not going to stop using my credit cards. Sure, I live in an exempt state, but that’s not why. It’s because I don’t use my cards for everyday purchases so the fees won’t affect my budget in a big way. You know I recommend using cash and debit cards for daily expenses because it will help you stay on budget.

Why shouldn’t we be outraged? Swiping a card is an easy way to pay, but it’s not magic. A lot work takes place in the background – work that must be paid for.  Convenience always has a price.

Is it ever worth it to pay the fee?

I think so. I want the added protection offered by credit card companies. I know they will assist me if a company doesn’t make good (like if they go out of business). For me, the choice to decline rental car insurance when I travel far outweighs the cost of the surcharge. I’ll continue to use them for online purchases as well. Credit cards offer added protections for misrepresented and/or never received merchandise. For me, that’s worth it (in certain circumstances.) Some credit card benefits / rewards outweigh the fee.

Ultimately, it’s up to you to make informed choices that are right for you. Like me, you may decide to keep using your cards, but only in certain circumstances.

A Note from Jill

Cash-heartWho Gets Your Stuff? I asked you to think about that in Friday’s Quick Tips.We just opened our Health Savings Checking Account and we had to list a beneficiary.  That got me wondering who we had listed on our other accounts. Things change. The person who seemed like the perfect beneficiary five years ago, may not be our first choice today – not because we’re cutting people off or choosing new favorites, but because we have lost some loved ones and gained new people to love and care for.

Our Newsletter is getting a name change – but what will it be? We’re going to do some branding changes around here. Quick Tips will become something new, fresh and inspiring and we need a new name. We received a few suggestions, but we’d love more.

Want to help? Submit your name suggestions to jill@jillrussofoster.com or on Facebook, LinkedIn,  Twitter or reply to this post. I know you have some great ideas, so share ’em with me!

Jill Russo Foster

You’ll have to prove it. Make sure you have the paperwork.

will-inheritance

Things that mean very little in a court of law:

  • Your memories
  • Your mother’s memories
  • Your friends opinions
  • Photos of you smiling with some of your stuff in the background.

What am I getting at? I want you to face the fact that paperwork is part of life.

You can have a lot of wonderful things without legal documents: love; a nice meal; a beautiful sunset. But, you can’t get legally married, register the birth of your child, or insure your home without them. So, if you’re basking in the glow of a beautiful sunset in your own backyard, enjoying a barbecue, and surrounded by family and friends – there was paperwork involved.

Don’t slack on it. Strive to keep it up-to-date on an annual basis. Neglecting your paperwork can be just as bad for your family life as neglecting a loved one’s birthday.

Go through your files and check up on your:

  • Life insurance
  • Long Term Care insurance that may combine with life insurance
  • Retirement accounts – IRA’s, 401K / 403B, Roth IRA’s
  • Savings bonds
  • Bank accounts that are payable on death
  • Investments (stocks, bonds etc)

Legal documents are too often overlooked and the results can be devastating. Who’s in charge of your stuff if you suddenly pass away. If you haven’t updated your paperwork, you may have left everything to an unreliable friend, or a deceased parent instead of your spouse or adult child. In this case, I suggest that you name a second beneficiary.  For our wills, we even have a third beneficiary.  My attorney suggested this and it’s terrific.  When my father passed away, I didn’t have to update my will.  My second choice was already in place.  How easy was that?

I know you’re busy, but when you, or your family, are dealing with a major life crisis, you won’t want to spend time thinking about these things. Make a habit of reviewing your important documents on a regular basis so your loved ones will receive the things you labored to give them.

If you need more convincing, check out this ABC news story

Who said taxes are free?

taxes and uncle sam
 

Yes, it’s that time of year again – tax time. We’ve had some delays on the government’s end. You won’t be able to file early in January (if that was your plan). That’s tough luck if you were hoping to get your refund right away. But, it could have been worse. We may have had to wait until late March.

The delay is caused by last minute tax changes.  Forms have to be adjusted before your tax preparer can submit your taxes.  The earliest you can file electronically this year is January 30th. And, you may have to wait until late February or early March if you’re claiming credits related to energy, property or business,

In the meantime, you can get your taxes prepared. 

Don’t delay things on your end just because you can’t file. You don’t want to wait until the last minute then realize you can’t find the all important paperwork to back up your tax return.

You may be able to get your taxes prepared for free AND from a reputable source.

There’s help if you’re a senior or have a low to moderate income.

Go to www.IRS.gov to find information on the VITA program (Volunteer Income Tax Assistance), the TCE Program and AARP Tax-Aide.

There you can learn

  • If you qualify for the program
  • What to do bring to the meeting
  • Locations near you

You don’t have to be afraid to use these services. The tax preparers at these programs are certified volunteers who work under a qualified supervisor.  The location near me is at the local community college and is supervised by a CPA and Chair of the Accounting Department.

Each location will have different hours, so check before you make the trip. Some will take appointments and some are walk-in only.

If you qualify, you may save yourself a few hundred dollars. You’ll get the work done at no cost to yourself and a trained preparer can catch details that might net you a bigger return.

Credit Report Reminder from Jill Russo Foster: Start 2013 with good financial information

It’s January 2013! Time to start the year off right!

This month use Experian

credit_report_januaryHello, it’s Jill again, reminding you to get your finances in order for the New Year by checking your credit report.

Order your credit report from www.AnnualCreditReport.com. This is the ONLY authorized source for the no cost annual credit report that’s yours by law. You have the right to know. Exercise your rights! Learn more.

When ordering online:

  1. Select your state, then click Request Report.
  2. Fill out your information, then click Continue.
  3. When it asks you to select a service, select Experian.

Not comfortable ordering online? There are three ways you can order your report:

  • Order online at www.AnnualCreditReport.com. By ordering online you can have your report back in minutes!
  • Mail your postal order by downloading the form at www.AnnualCreditReport.com
  • Call in your order at 1-877-322-8228

It doesn’t matter how you get your report, the most important thing is that you do! Then…

  • Review it for accuracy!
  • Follow the instructions with the report to correct any errors.
  • And, always remember to keep copies for your records.

Were you hoping to get your credit score instead? Try CreditKarma.com. CreditKarma does not supply a FICO score, but it does provide scores from TransUnion and VantageScore. And, there’s no charge for you. CreditKarma funds their service through website advertising.

May you have a blessed and successful year!

Jill Russo Foster

P.S. I’ll give you another reminder in May and September to help you stay up-to-date on your credit throughout the year.

Get things done to start the year right!

NewYear-resolutionsThere are several things I do in January to make a fresh start for myself and my family.

I take the credit cards out of my wallet and put them in my copy machine. Why do I do this? So, I’ll have up-to-date information on my cards in case my wallet is lost or stolen. If you want to do this, too, make sure to spread your cards out on the paper so you’ll have room to hand-write the contact phone numbers found on the back of the cards. This serves a few purposes:

  1. You won’t have to go online or search past bills for contact numbers in case you need to cancel those cards in a hurry.
  2. You will know exactly which cards you need to call on, and,
  3. You’ll remember to take the credit cards off the copier.

I set new files for 2013.  This includes my accordion multi-pocket folder for this years’ tax information.  If I am organized at the start of the year, I will be all set for the accountant at year end.

I shred our paystubs when the W-2’s come in. Check to make sure they agree first!

We review last year’s bills. We really like to save money on every day expenses so we can afford the the things we really enjoy. So, we look at how we’ve spent our money in the past year to see if we can make any improvements.  In the past, we have deregulated our electric, lowered our cell phone package, and cut out TV channels we don’t watch.  We have made choices about what subscriptions to keep and what not to renew, keeping only the most useful magazines and memberships.

January is a month we plan our extra spending. These are the expenses that aren’t in the usual monthly budget, but are essential to our standard of living. If you want to plan your extra spending, here are some examples and tips:

  1. What do you want to do this year for fun?  We usually already have a vacation or two in mind.
  2. What big events are taking place for your family or circle of friends?  You usually know a year in advance if someone is planning a family reunion or getting married. Be sure to factor in travel costs.
  3. What home projects do you need or want?  With this past year’s weather, you may be thinking it’s time for that major improvement to your home.

If you need to spend money to have it, then it’s worth planning ahead.  It’s so much easier and less stressful to have the money saved than to try to figure out where can to get the money at the last minute.

Happy Holidays!

Wishing You a Peaceful Holiday Season
and a Prosperous New Year!

What Free Teleclasses Can I Offer You?

Take the survey and tell me what you need to know!

You will be entered into a drawing to win a free 30 minute coaching call with Jill Russo Foster. On the call, you can ask any financial question you need to know in complete privacy and confidentiality.
 
Thank You!We have some exciting things happening here for 2013. We’ll be offering free teleclasses with you in mind. The topics will be based on the answers you give in the survey and your suggestions.  This is your chance to make 2013 the best year for you and your finances.

Everyone who takes the survey will be entered into a drawing to win a free 30-minute coaching session. Feel free to share the survey with your friends and family and give them to a chance to win! You can spread the word by sharing the links to my Facebook, LinkedIn, and Twitter accounts or my blog.

Take the survey here!