Jill Russo Foster

Tips for Successful Personal Finances

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If You Can’t See Your Money, You’ll Spend More

Don’t let your bank profit from overdraft fees! In 2009, it’s estimated that banks earned $20 billion (yes, with a b) in overdraft fees Transactions from ATM machines, debit cards and reoccurring bill payment transactions are mainly responsible for record overdrafts These are invisible money transactions because you can’t see how much you’re spending or how much you have left in your account.

With the new Credit Card Act of 2009, things are changing.You will not be able to automatically overdraw your bank account.Instead, your transaction will be declined.But, that information may come too late to save you from difficulties with creditors and merchants.

The only way to prevent overdrafts is to keep good financial records You must know how much you have available at any given point Better yet – use cash According to studies, people who use actual cash spend 20% less than using other forms of payments That’s because they can see how much money they have left after making a purchase If you choose to use cash, use larger bills The larger the bill, the less likely you are to spend it It is so much easier to spend $5, $10 and $20 It doesn’t seem like much if you spend $20 in 5 different stores But if you have to break a $100 bill, you will have a true understanding of how much you’ve spent.

If you still want to use invisible money, and you aren’t going to track your account, you will have to opt-in with your bank to have your transactions pre-approved Remember that you will still have the fees associated with overdrawing your account.Those fees are typically over $35 for each transaction.

Spend wisely by avoiding fees Avoid fees by keeping good records or by using cash Overdraft fees are a total waste of your hard earned money.

Are you confused about where to get your FREE credit report?

The ads tell you that you will get a free credit report, but then you learn you have to pay for a service to get the report. Those ads have confused so many people.

If you have been following this blog, you know to visit AnnualCreditReport.com. This website is the ONLY authorized source for a free annual credit report that’s yours by law.

As of April 1, the Federal Trade Commission has amended their law to combat this confusion. The other websites that offer free credit reports (with the purchase of another item and/or service) will have to have a statement that says you have the right to a free credit report from AnnualCreditReport.com, the ONLY authorized source under federal law and provide a link. Never again will you have to pay for your free credit report.

In addition, the AnnualCreditReport.com home page will no longer display ads from the three credit reporting agencies (Experian, Equifax and Trans Union). Some were lured away with these ads and were charged a credit monitoring fee by the credit reporting agencies. After you’ve ordered your free report, you’ll see the ads, but it won’t be as confusing.

Note that the radio and TV advertisements have until September 1 to comply with this change. Free means free! Remember that anything for free should not have you buying another service.

Energy Efficient Rebate Programs Help Replace Appliances

Many states have been affected by severe weather this spring Wind and rain can cause significant damage, not only to the structures of our homes, but our possessions inside Severe weather can cause power outages and power surges, not to mention flooding, structural damage, and fires.

If you have to replace one or more of your appliances (for any reason), you might want to see if your state offers a rebate program.

I live in Connecticut Our is one of 14 states participating in the Energy Efficient Appliance Rebate Program The Federal Government gave Connecticut $3.4 million to use for this program The program started January 25, 2010 and will run out when the funds are used up So if you are thinking about replacing that old appliance for a more efficient one, or you lost one in the storm damage, this is the time to consider buying something new.

This program is designed to stimulate the economy with sales that will help retailers and to provide you with a more efficient appliance that will lower you energy usage (therefore lower you utility bill) For Connecticut details go to www.ct.gov/opm/ApplianceRebates If you live in another state, check your state’s website for more information.

In Connecticut, you could get the following:

  • Clothes washer $100 rebate
  • Refrigerator $50 rebate
  • Freezer $50 rebate
  • Room Air Conditioning units $50 rebate
  • Central Air units $500 rebate

You are allowed one appliance per each home (except for room air condition units – you are allowed 3 for each home).

Only buy an appliance if you can afford it or if you know your insurance company will be reimbursing you for your claim Buying something because of a rebate or sale that you don’t need or can’t afford is not doing you any good Before you buy, consider how you will pay for it This is one of those things that you should have money in your savings account for, not put it on a credit card and make minimum payments for years to come.

Cash Savvy Kids

Are your kids cash savvy? Should they be? Here are some things to think about:

  • High debt levels are taking their toll families and our youth!
  • As many as 65% of graduates are moving back home.
  • Scary that both kids and adults have committed suicide over credit card debt and financial matters!
  • Your children could have a healthy marriage later if you taught them to be financially smart early in life.

Kids need to learn about money BEFORE they get into financial trouble! Join me today at Cash Savvy Kids, the free teleseries for you and your kids.

Sign up for the free teleseminar at: Cash-Savvy-Kids.com

Jill Russo Foster

Take 5 Minutes Each Day to Improve Your Finances

One little step each day may be the answer to your finances being in order Are you the type of person who procrastinates about your finances? Do you dread the thought of addressing issues? This is your solution.

Take 5 minutes each day and do something to better for your financial picture These are some examples of how little things can add up Make a call to your credit card company to question a charge that you are unsure of Call and cancel that unwanted service that you are paying for to save you money on your bill Make that appointment to take that class Spend 5 minutes filing your receipts so that you’re able to easily balance your checkbook when the bank statement arrives Open that high interest bank account so that you earn more interest on your money Set up the automatic deduction so that you save money on a regular basis.

I personally called and cancelled a service that I wasn’t using on my phone bill I have registered for a driving class that will lower my auto insurance premium I called a doctor’s office to question a charge instead of just paying it without thought These little steps took me less than 5 minutes each We all can find 5 minutes in our day to address these issues that get put off.

These tasks may seem overwhelming all together But if you do one each day, your financial picture will improve and you will be taking care of your finances and saving money.

How to Avoid Bank Fees

Banks make their money from the fees they charge you the customer Your goal is to not pay these fees, so that you keep more money in your account For 2010, I want you to avoid the following bank fees:

Checking account fees These fees can be avoided all together so check with your bank Typically banks will waive their fees if you have a savings account with the bank and they can link the two accounts together Some will ask you to have a deposit direct deposited to your checking account to avoid the fees Ask your banker and then do what they say to avoid this fee.

Uncollected Funds When you deposit a check, the check has to become available (the funds go from one bank account to yours), before you can use that money Uncollected funds occur when you attempt to use this money before it is available This will cause an uncollected funds fee to your account You need to check with the bank or to check online to see what your available funds balance is before using your money.

Non-Sufficient Funds This is when you write a check, withdraw money from the ATM or make a purchase with your debit card for more money than you have in your account If this happens the bank will charge you a fee for this transaction (you could incur this fee for each transaction that goes through your account) You need to know how much is in your bank account to avoid this fee.

All these fees are money makers for the bank and it’s to your best interest to avoid them and keep your money for you Keep good accurate records and you can eliminatethem.