Family Finances

Save Money with Vinegar and Tomatoes

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I am always asked for money saving tips. I’ve mentioned common tips like eating at (and from) home more often, using cash whenever possible, and buying off-season or used. But, what if you do all of these already, and you still want to save more money?

At a recent speaking event, I decided to share my more creative ideas – things I actually do myself – that might not be so common.

So, here are those two tips:

Produce Garden – yes, you heard me. If you’re a long time reader, you know that I’ve always gardened and feel that there’s nothing better than picking something right off the vine to eat right away. I’m not certified organic, but I don’t use chemicals or questionable practices. Let’s just say that if someone wanted to certify me, I’d be fine.

Even if you don’t have room, or interest in working in a garden, you can grow lettuce. It’s probably the easiest produce to grow and can be grown in a pot pretty much anywhere (even indoors). A pack of seeds costs about $1.50 and can give us (a family of two) lettuce for about 6 weeks. That’s a lot cheaper than buying a head of lettuce each week.

If you don’t eat salads at home, just because you feel bagged lettuce is expensive and doesn’t keep well, this is your solution.

Someone raised an objection about time. Lettuce is not time-consuming or fussy. You’ll need to thin the leaves out during the growing stages, but you’ll be eating it as baby micro lettuce – so it’s not like it’s fussing just because it has to be done.

This year I am trying vertical gardening. My whole garden, once it’s planted, takes me less than 30 minutes a week to maintain, and I have many plants – tomatoes, peppers, zucchini, squash, green beans, peas, a few types of lettuce and herbs. This year I am trying corn, blueberries and butternut squash.

Cleaning Products – make your own – I do! I use vinegar diluted with water in place of glass cleaner. Works great. I use baking soda with water to make a paste to clean the bathroom. These home-made products are completely safe, effective and chemical free and cost pennies.

What I haven’t yet found is a replacement for dishwasher or laundry detergent. Although, I do know that vinegar in the rinse cycle can get rid of excess detergent in your towels and get rid of that moldy smell if your towels have been out by the pool too long.

Ideas for home made cleaning supplies can be found on the internet, but make sure you’re looking at a trusted source for reputable information.

Let me know how you save money.

Maybe my garden photos will inspire you.

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Ghosting the deceased: Identity Theft Prevention

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Even after a loved one dies, they’re still not safe from identity theft or more specifically “ghosting.”

It’s reported that $2.5 million deceased Americans become victims of fraud – anything from new credit cards and loan applications to new utilities and cell phone accounts. Just when the family is dealing with their loss, before they’ve even touched the probate issue, they now have to take additional steps to protect their loved ones.

How does it happen?

We give our loved one’s identity to the world on a silver platter. For starters, most of the important identifying information can be found in the obituary.

Full birth name and married name
Mother’s maiden name
Home town
Date of birth
Nearest relatives and their relationships to the deceased
Last place of employment

It’s been reported that thieves take this information and purchase the deceased’s social security number for $10 from the Social Security Office’s Death Master File. With that, they have everything needed to set up new accounts, all while the family is still grieving.

You might be thinking, “Why do I care? It can’t come back on us because the person is dead.” Well, by using your loved one’s information, they can take yours as well. Remember, your name is in the paper too, listing how you’re related to everyone in your family, your probable home town, and your approximate age. At the very least, it will cause the surviving family members stress when new bills arrive at the house along with collection calls.

What can you do about it?

Limit the information listed in the obituary column – in this case less is more

Send copies of death certificates to all three credit reporting agencies, as well as to the banks, investment firms and credit card companies used by the deceased. Ask them to place a “deceased alert” on all accounts – this is especially important if they’re going to stay open until probate is completed.

When closing accounts (including utilities, phone, cable, rental services, etc.), ask them to tag the account as “account closed – holder is deceased.” That way, the account will be flagged as permanently closed. Closing an account may seem final enough, but it’s not. All paid services want you to continue service, so they won’t question a reopen request unless the word “deceased” is on the file.

Report the death to Social Security. If you let it go through normal processes, it can take months – in that time, an identity thief will have set up hundreds of accounts in your loved one’s name.

Cancel the deceased Driver’s License through your state’s Department of Motor Vehicles, so that duplicates will not be issued

Since deceased people don’t check their credit, I would recommend that you request a copy of their credit report from one of the three credit reporting agencies about a month after you’ve taken the above steps – just to double check their account status. Then check again a few months later.

Of Love and Shared Bank Accounts

I recently led a discussion about relationships and money: how to blend, and end, your finances with someone else. Questions were asked, and there were some interesting conversations going on in the room. Then, a few weeks ago, a long time reader of Quick Tips asked about shared bank accounts. I decided it was time to write about this subject again.

First of all, you may choose not to blend your finances at all. Many couples keep separate accounts and actually have happier and more successful partnerships because there are fewer arguments about who spent money on what and who overdrew the bank account. Others choose to handle their money and debts together, and they do just fine. The choice is yours.

Look at your habits and goals when you consider whether to combine your accounts or keep them separate:

How does each of you handle savings and debt repayment? Do you have similar philosophies, or are your bank balances mirror opposites, with one carrying a large debt balance and the other carrying a large savings balance?

Do you have the same financial goals? Or, is one of you saving mainly towards retirement, while the other wants to save for amazing vacations and a nice car.

Does one, or both, of you have any issues that you would bring into a blended financial arrangement? For example, are there any debts that are currently in collections or that were charged off; bankruptcy; judgments; wage garnishments; or tax liens?

Some people find this subject to be a touchy one. I even received an angry comment on my blog by someone who insisted that married people should share everything equally. But, keeping separate accounts isn’t about holding out, or being less in love. Sometimes, it’s about protecting each other and making decisions that will carry you furthest towards your mutual goals.

If You Have Separate Accounts, How Do You Split Expenses?

Most people assume 50/50, but there are other options. You could choose different percentages based on incomes, family size, habits and hobbies. For example, if you have shared custody of your 3 kids with a former partner, then you might pay a higher percentage of the food bill. If your hobby raises the electric bill (gaming, woodworking, sewing), then you might pay a higher percentage of the utilities. You don’t have to use percentages – you can divide up the bills, where one of you pays for this expense and the other pays for that expense. The choices are as varied as the couples who make them.

The bottom line is that you need to make informed choices that are right for you individually and as a couple. Money is the biggest source of friction in relationships. Have the conversation before you get married or move in together, so you know what to expect ahead of time. If you’re already living together, it’s not too late to make changes.

Next issue, I’ll talk about separating your finances after the relationship ends.

What I Learned about Money from Sitcoms

I love to watch old sitcoms on TV Land and Nick at Nite. They’re like comfort food for the brain. I’ve seen the episodes already so there’s no suspense, and I certainly don’t expect to learn anything.

But sometimes they surprise me.

A couple of weeks ago, I was watching reruns of The Nanny. In the episode “Close Shave”, Fran is having trouble paying her credit card bills.

Here’s the conversation between Fran and Niles:

Fran: I have to pay my American Express because if I buy a piece of gum, the S.WA.T. team storms the building. Meanwhile, I pay my MasterCard with my Discover Card, my Discover card with my Optima Card, My Optima Card with my City Trust Visa.
Niles: But doesn’t that leave a very high balance on your Visa?
Fran: Exactly! And that’s why they gave me an espresso machine which I sell to pay off my American Express, thank you.

This reminded me of the Cosby episode “Theo’s Holiday.” It’s the one where Theo wants to move out using money from a modeling career (that he doesn’t have). Cliff and the family show him the real costs of living on his own.

(Start at 3:32) To see the full episode watch Part 2 and Part 3

For sitcoms, these episodes are very realistic in the way they portray people who are uninformed about money. But, the solutions weren’t realistic at all. How nice would it be if we could solve our problems in 23 minutes just like they do on TV?

Now, imagine you’re a child watching the same episodes for the first time. What would you learn? There’s a telling discussion on TV.com.

How will your kids learn about money? Will they learn from TV, or because you took the time to teach them like Theo’s family taught him? What about yourself? You’re old enough to know that your problems won’t magically go away like Fran’s. Be informed and make informed choices that are right for you.

People want their finances to be perfect – like a TV show. But most of us don’t go from a plan to success by receiving a windfall. There’s usually a long journey and detours in the road. What matters most is how you get yourself back on track. Keep yourself moving forward towards your goal and you will accomplish it.

And, if you need a little comfort, try an old sitcom. They’re cheap, there are no calories and you might learn something… but don’t count on it.

The Must-Have Documents to Prepare for Death

In the last few weeks, I have had several people talk with me about end-of-life financial planning. They’ve told me what they’ve done and what they’re stuck on.

I was at an anniversary party and one of the guests told me that he discussed his finances with his adult son for the first time. After reading one my Quick Tips articles, he took the initiative to map out his financial picture so his son would know where to find all the details if the worst happened.

In another conversation, a reader shared that she was having trouble choosing the right person to be the executor of her will. This can be a touchy decision for all of us. She wasn’t sure there was anyone in her family who could handle it. I suggested looking outside the family for a trusted friend or professional. She was able to think of someone, but her new dilemma is moving forward.

Lastly, I was coaching a woman in her early 30’s whose goal is financial security. Her husband recently passed away leaving her a single parent facing all of life’s challenges alone.

These are people in all stages of life dealing with the financial complications of death.

That brings me to today’s tip – the must-have documents.

Do you have a will?
Do you have a living will?
How about a healthcare agent?

You need these documents regardless of your age. Any estate attorney will be able to help you with preparing these documents, but here is some basic information to get you thinking:

Your Will – Who will be the executor of your estate? You should choose someone that you trust with the intimate details of your life. My suggestion is to think of a few people. If your first choice declines, you move onto the next until you find a willing partner who can handle the responsibility.

Next, think about what you own and who you want to leave it to. Be specific with your possessions and your choices. It’s really not enough to leave all your jewelry to your nieces. You don’t want your legacy to be a family feud over who gets the first pick. Your attorney will be able to get you a questionnaire to help you through the process.

Your Living Will – If you are incapable of making medical choices for yourself, what will happen to you? Yes, this is a difficult question to ask yourself, but you need to write your wishes out. That way you can make your own choices even if you can’t express them yourself.

Your Healthcare Agent –Do you want someone to be able to make your medical decisions when you are not capable? Then this is the document you need. Most hospitals will require you to have this before a procedure. This should be someone you trust to make the decisions you would want made.

Check with an attorney for guidance and start working on your must-have documents today.

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.