Tips for Successful Personal Finances
How about a movie marathon at home? Go to your local library, borrow several movies, and watch them on your own TV with homemade popped corn. If the library doesn’t have what you want, rent them from your local grocery store movie kiosk for minimal cost. Netflix members can use a Roku or compatible game console.
If you want something more than pot luck but don’t want to pay a fortune for dinner out, try a BYOB restaurant. Check around, some restaurants will let you bring your own bottle of wine. Ask first, because there could be a “corkage fee” for bringing your own bottle. When you buy wine from a restaurant, your favorite bottle can be double the price of what you would pay retail. Check with your state, because some states will let you bring the partial bottle home, and others won’t. This is one way wine lovers can enjoy dinner out and still save some money.
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April is Financial Literacy Month and I want to spread the word so that everyone can improve their finances.
For the month of April, we will be posting daily tips from my book Thrive In Five: Take Charge of Your Finances in 5 Minutes a Day on Twitter, LinkedIn and my Facebook Fan Page. We need you to share and repost to your connections and friends so that these simple tips spread across the internet. My goal is to increase my exposure and increase the number of people who subscribe, so we can ease the financial confusion that holds so many people back.
As new people subscribe to my newsletter, we will be asking them to tell us who referred them. Remember to ask them to use your name. The top person who gives us the most new subscribers by April 30, will win a free 30-minute coach session with me. It’s that simple. So tell your friends, family, co-workers and everyone else you know so you can increase your chances to win.
First, remember to connect with me through social media – Twitter, LinkedIn and Facebook Fan Page, or you can forward this blog post for them to sign up for the newsletter. Thank you for spreading the word.
If you want an additional way to win a free coaching session with me, tell us which tip has inspired you to make a change in your finances. What have you added to your routine, or what have you stopped doing? Maybe you read that you could keep the same routine if you just did things a little differently. Tell us your story in a few sentences that we can use as a testimonial. Don’t worry; we will only use your first name. We will select one quote randomly from all submitted and that person will also win a free 30-minute coaching session with me during the month of May.
We want everyone to have some extra cash this April, so let’s make it rain by sharing financial information that really works.
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!
Things that mean very little in a court of law:
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:
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
There 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:
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:
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.
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:
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.
The holidays are coming! The holidays are coming! Guard your budgets and hold onto your wallets. You might be thinking I’m crazy, but the retailers have positioned their holiday displays to disarm you of your cash.
Now is the time to remember how you felt last year when you overspent.
Can you make this year different? Can you stick to your list and not overspend? You can if you make a detailed plan. Write down exactly what you will be buying and the dollar amount you plan to spend.
Here are some suggestions that should help you with your holiday budget list.
1. Gifts
2. Entertaining
3. Travel
4. Traditions – this can be anything from an afternoon tea to a night on the town.
If you write it all down, you might realize you’re planning on spending $300-$500 on gifts for people who aren’t on your immediate family list. And hosting dinners can be expensive just because you want to put on a good appearance. Ever notice a big stain on the tablecloth and found yourself running to the store at the last minute to buy one full price?
Holiday fun can wreak havoc on your budget, but it doesn’t have to. Now is the time to get a jump start on planning, and to put away money for the details that are important to you. Think of it as your own layaway plan. Take money out of each check, in addition to your regular savings deduction, to create your own holiday fund.
Doing this now will make January 2013 less stressful.
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:
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.
Where do kids learn about banks and credit? I have gone into many schools and spoken with many teens about money. There are always a handful who say things that startle me. I have heard things like…
Sound unbelievable? Not only are these ideas commonly believed by kids, but there’s a logical thought process behind each one. If you don’t explain what you’re doing, your kids will make assumptions about money based on what they hear you say and what they see you do.
Take the idea that money from the ATM is free for you anytime you need it. The boy who believed that probably heard his parents complain about not having any money, then watched as they took money from the ATM. What other conclusion could he have drawn?
The idea that you don’t have to pay your bills back comes from a general assumption about the world based on ideas of fair play. You don’t have to run laps in gym if you have a sprained ankle. You can take a make-up test if you have a sick day. Why can’t you just put off the bills if you don’t have money because you got sick? If you can’t pay, they shouldn’t expect you to. That’s fair, right?
But kids grow out of these crazy ideas, don’t they. It’s not like they hold them onto them into adulthood. Trust me, they may not believe the exact same things, but their misconceptions and ignorance can still hurt them.
Here are some scary facts about college kids and credit cards from credit.com:
Does this scare you? It scares me! Don’t let your kids make assumptions. Teach your child about money and credit by speaking with them. You don’t have to be perfect (no one is), but showing your child the process behind your decisions can be eye-opening.