Jill Russo Foster

Tips for Successful Personal Finances

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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.

Free Checking Accounts May Not Be Free

Question: Is my free checking really free? If so, how does the bank make money?

Great question Yes, there are free checking accounts as long as you meet the banks requirements These are typically a minimum balance in the account, direct deposit to the account or a certain number of debit card transactions It’s your responsibility to know what you can and can’t do according to your banks requirements so that you avoid these fees.

Banks make their money on the fees they charge their customers The checking account can be free, but the other optional costs are not These optional costs can include overdraft fees for either writing a check and/or using your debit card for more money than you have in your account, uncollected fees for using the money in your account before the deposited funds are available to use, stopping payment on a check that you have written, purchasing bank checks (money orders, certified checks) or using an ATM from a different bank All these fees add up.

There still could be more fees If your transaction is not honored, then the person or company you did the transaction with incurs fees that they may charge you too That ATM that you used from the different bank may change you a fee as well The most cost effective way to save your money, is to keep accurate records (checkbook records with a ledger or software) so that you know how much money is in your account at all times and to never run short on cash so that you have to use the most convenient ATM and incur a fee A little planning on your part can save you money.

How to Prepare for Retirement

Will you have enough money to live the lifestyle you want when you retire? That’s a hard question for most people to answer I usually hear that I don’t have enough money to live today, so how can I possibly save for my future?

Let me start by giving you some history of how retirements worked When our parents were working, they worked for one company their entire career For that loyalty, the company took care of them in their retirement Once your parents retired, they would collect a monthly pension from the company for the rest of their lives That, with the added benefit of social security, paid for their life style.

Then companies changed and 401K’s and 403B’s were introduced These are savings plans that are offered and sponsored by the company you work for You, as the employee would designate a portion of your income to go into this account pre tax and the company would match a certain percentage An example of this would be for each dollar the employee put into the account, the company would match that at a percentage up to a maximum amount Companies have almost eliminated the pension in favor of this savings plan.

This has altered your retirement and your financial future, along with the fact that employees don’t typically stay with one company for the entire career Instead of being set with a pension, you now have to be proactive and plan for your own retirement.

If you want to live the lifestyle that you are accustomed to, you have to do two things prior to retirement First, you need to save for your future by making funding your retirement a priority You need to find the money to be able to save for your future Second, you need to enter into retirement with minimal of no debt Someone who is living in a home that has no mortgage and has no other debt (car payment, credit cards etc), will need far less money per month, than someone who does.

Bottom line, you need to find the money today to save for tomorrow.

A Mortgage and A Divorce: Not a Love Story

In a divorce, the best way to handle the mortgage is to refinance. This is to protect both parties. If you’re making the payments, the loan should be in your name. If your ex is making the payments, then take your name off the loan.

Why is it so important? Because your mortgage company considers a divorce decree to be a personal matter – not a legal matter. A divorce agreement can’t prevent foreclosures or repossessions. It also can’t prevent your ex from ruining your credit if he or she refuses to make payments. The loan document is all that matters.

What if the divorce decree put your ex in charge of mortgage payments, but he or she is refusing to make payments or agree to a refinance. You could always make the payments yourself. That would save the home and your credit.  The courts will (eventually) order your ex to reimburse you, just don’t expect it to happen anytime soon.

Sometimes, the biggest income earner is ordered to pay the mortgage even if that person no longer lives in the home. This is more common when children are involved. In that case, both parties may be reluctant to refinance the mortgage, because they feel the original mortgage agreement gives them control over the other person or the home. This is a bad situation for everyone. If the person left in the home can’t afford the payments, and the person out of the home refuses to pay… then you could lose your biggest investment.

If you can’t agree to refinance, then sell the house and move. Regardless of how much you love the home, or the idea of your kids living in it, it is best if both parties move to a more affordable home than to endure the continued heartache of credit problems and payment disputes.