Jill Russo Foster

Tips for Successful Personal Finances

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Financial Literacy Month – Tip #13

Monitor Your Accounts

Here’s the tip from July 28-Credit month:

Something that I personally do weekly is to monitor my accounts. I go online (from my home computer) and check my accounts, both bank and credit cards. I actually look at the individual transactions to see what is posted. Is there anything that I don’t recognize? Get in the habit of this and check even if you haven’t used the account. You never know who has.

To purchase a copy of either of my books Thrive In Five: Take Charge of Your Finances in 5 Minutes a Day or 111 Ways To Save

#JillRussoFoster  #30WaysToSave

Financial Literacy Month – Tip #8

Savings Accounts and ATMs

Here’s the tip from March 28 – Saving More month:

One thing that I have learned over the years is not to have my savings account linked to my debit / ATM card. That way, if I want to make an impulse purchase, I have to put some thought into it and move money either online or at the bank. This delay usually makes me think about the purchase and talk myself out of it.

An added benefit to this is if your card is stolen, the thief cannot access the money in your savings. This is a good thing since most of us keep our money in savings versus checking accounts

To purchase a copy of either of my books Thrive In Five: Take Charge of Your Finances in 5 Minutes a Day or 111 Ways To Save

#JillRussoFoster  #30WaysToSave

Financial Literacy Month – Tip #4

Lower Your Car Insurance

Here’s the tip from February 4 – Reduce or Eliminate Bills month:

Did you know that you can lower your car insurance by taking a safe driving class? I took a safe driving class and was able to lower my car insurance premium. For me, I took eight hours of classroom time (that’s the Connecticut requirement for the class) at a cost of $16 and was able to save $100 per year for the next three years. I even learned a thing or two. Check with your insurance company to see how much you can save, then schedule a class near you.

To purchase a copy of either of my books Thrive In Five: Take Charge of Your Finances in 5 Minutes a Day or 111 Ways To Save

#JillRussoFoster  #30WaysToSave

Financial Literacy Month – Tip #3

Use Cash

Here’s the tip from February 1 – Reduce or Eliminate Expenses month:

Use cash – sounds simple enough, but can you do this? When I say cash I mean the actual bills and coins, not a debit card. Using cash for your purchases makes you have to think about what you are purchasing, the cost and how much money you have with you. You can’t spend more than you have with you!

Try this – what have you go to lose? It really stops the impulse shopping and makes you think about your purchase. In addition, I personally find that if I have large bills in my wallet, I am less likely to break a $50 or $100 to make a purchase than if I am carrying smaller bills.

To purchase a copy of either of my books Thrive In Five: Take Charge of Your Finances in 5 Minutes a Day or 111 Ways To Save

#JillRussoFoster  #30WaysToSave

Financial Literacy Month – Tip #2

Unseen Bills

Here’s the tip from January 28 – Analyze Your Bills month:

These are those bills that you don’t get in the mail. Those things that you are set up to automatically renew. The service will tell you that they take the hassle out of remembering to pay by setting automatic payments up for you. Yes, they do take the hassle out of it for you. But, the other side is that you might not remember this bill and therefore don’t look at it to cancel it or to shop around for a cheaper service. Examples of this can be subscriptions and memberships. Today, think about what you have in your life that happens automatically. Is it that gym membership that you bought last January that you don’t use? Is it the magazine subscription that renews automatically and is billed to your credit card? What’s happening automatically in your life?

To purchase a copy of either of my books Thrive In Five: Take Charge of Your Finances in 5 Minutes a Day or 111 Ways To Save

#JillRussoFoster  #30WaysToSave

Spring Cleaning Your Finances & More

As I sit here and write this blog post about spring, I am glad it actually begins tonight.  The days are getting longer with the change to daylight saving time.

For us, it has been a mild winter with only one snow storm of a couple of inches back in January.  We have even had some record warmth days with one more coming tomorrow.  If fact, I know it’s spring is here because the daffodils and crocus are blooming.

In this difficult time, I am trying my best to stay present and not react out of fear.  For me, the best way is to accomplish something, such as learning a new skills or tackling a project.

Here are some projects that you might want to tackle:

  1. When was the last time you shredded your out dated paperwork.  Typically, after seven years papers can be tossed with a few exceptions.  Check with your tax preparer for your situation.  This is a good time to do this as many communities have a free paper shredding days coming up in April for you to take advantage of.
  2. Did you learn something from filing your taxes?  Maybe you need to make adjustments to your paycheck withholding or to save more to be able to pay the taxes you owe.  Take a look at your finances and make the changes now with your HR department.
  3. Where do your finances stand in relationship to your beginning of the year goals?  Maybe you set a goal to save a certain amount this year.  Are you one quarter of the way there?  We are about three months into the year, therefore you should be at 25% of your goal.  Are you on the path to achieving this goals? Do you need to make adjustments to your finances to achieve the goal?  Now is the time to take a look and make the changes needed, so you are not disappointed at year end.
  4. When was the last time you changed your passwords?  Update your accounts with strong passwords.
  5. How about organizing your paperwork?  Paper comes in everyday and seem to pile up.  Use this time if your home to create a system that works for you.

Stay healthy and use your time wisely this spring.

Required Distributions Are Changing – Make Your Plan

As we get older and start to think about reducing our working hours or retiring all together, it’s time to make a plan for your finances before you take the leap.  If you have been contributing to an Individual Retirement Account (IRA), 401K or other pre-tax account, you’ll need to start taking money out of your accounts. 

You might be thinking, I don’t want to take the money out until I need it.  Well, the government sees it differently.  They want there tax money since you have deferred the taxes.  Remember, this becomes taxable money and may put you in a higher tax bracket. As always you’ll need to discuss this with your tax preparer, bank / investment professional and/or attorney for what is right for you and your situation.

The old rule, is in the year after you turn 70 1/2 you were required to take a minimum distribution from your account by April 1 of the following year for the first year (then Dec 31 for year 2 subsequent years).  This rules is still true for people who turned 70 1/2 years old by the end of 2019.  Keep in mind that you can take as much as you want, but you have to take a minimum distribution each and every year after.

The new rule is part of the SECURE  (Setting Every Community Up for Retirement Enhancement) Act, passed in 2019.  Now, if you are younger than 70 1/2 by Dec 31, 2019, you can now wait until you are 72 years old before having to take the minimum distribution from your tax deferred account(s).  So you can let your money grow an additional two years.

Now, to avoid penalties with your required minimum distribution, you must take out a minimum each and every year.  To determine your amount, start with the value of your account on Dec 31 of the prior year and divide that by your life expectancy to come up with your amount.  If you take less than your are required, the penalties are ridiculously high.  They can be as much as 50%.  You have worked very hard for your money and you wouldn’t want to give it up to penalties.

Make a plan that’s right for you with your professionals, so that you get the money you need within the guidelines for the distribution.  Make sure to take at least what your are entitled.  You’ll have to pay the taxes on the distribution, but you don’t want to pay additional penalties to the government.  With this planning step, you can decide if you can afford to fully retire or if you need to keep working.

Is It Time To Switch Banks?

How long have you been with your bank?  Is it still convenient to your life?  Are you paying fees? The answer should be no to this question.  Are you earning the highest interest rate out there?

Look at your answers and take a look at your finances to make the right choices for you.  For us, last year we started to consolidate our accounts.  Rolling over our retirement accoun

t from past employers to one account.  Consolidating our accounts at two banks – one that offers totally free checking (no monthly fees, ATM fees and overdraft protection) th

at is a brick and mortar bank that is local and has convenient locations and hours that work with our lives.  The other is a virtual bank that also has no

fees and pays a high interest rate of savings accounts. It simplifies the monthly statements and it’s two online accounts.  That works for us.

Does yours work for you?  Here’s a great article from AARP Good Reasons To Consider Changing Where You Bank that will get your thinking about the different types of banks (major bank, community bank, credit union and online bank).  Which is best for you?

How To Spend Valentine’s Day On A Budget

Did you miss the Experian Credit Chat yesterday?  You don’t have to miss out.

Experian does a Credit Chat every Wednesday at 3pm EST.   Yesterday’s timely topic was Valentine’s Day on a Budget – pretty appropriate for tomorrow.

I was one of several panelist who participated in the Twitter chat.  There were some great suggestions by the panelist that may be something you are interested in for you to save money.  Here’s the link if you were unable to join.

Ways To Lower Your Heating Bill In The Winter

It’s winter here in the northeast, but you wouldn’t know it by mother nature.  The greater New York City area ended up with the tenth warmest January on record.  Personally, we had one snow storm and few days close to 60.  But there is still February, March and maybe April to get some winter cold, snowy weather. 

Here are some tips to save on your heating bill:

  • Can you lower your thermostat?  You can do this all the time or certain times of the day.  For certain times, think about your schedule – Can you lower it when you are out and no one is home? At night when you are in bed?
  • Do you have a fireplace(s)?  If the answer is yes, is your damper closed when your fireplace isn’t in use?  This can let cold air into your home (and warm air escape).  Remember to open the damper before you start a fire.
  • You know how nice it can feel with the sun shinning in on a bright sunny day.  It’s a favorite for our dog to lay down inside in the sun.  Well that’s really great in the day, but what about the night? Close your blind / drapes to keep the cold air out.  You can lose as much as 10% of your room’s heat during the night.
  • Check for drafts.  Yes, it’s winter but there are so many drafty spots on the inside of your home that you can fix from the inside.  Think windows and doors (sealing unused windows with plastic film),  electrical / cable outlets (outlet sealers), and check around your pipes (spray foam insulation).

These are some of the things that we do around our home to keep pour heating bill as low as possible.  There is more to do outside, before the weather gets cold.  Check out this past newsletter with those tips.