Plan for the Future

Get Your Vision Board Ready for 2015

In December, we take the time to sit down and reflect on the year, acknowledge the accomplishments, and plan for our future. We accomplish so much each year by setting intentions and goals. One way we do this is through our vision boards.

You can have your own vision board – all you need are pictures, scissors, glue and a board. I like to cut photos out from magazines or newspapers. You can also print them off the internet or use your own. If you don’t want the mess, you can use Pinterest, Oprah’s O Dream Board (when it becomes available again), or a free Photoshop alternative. Personally, I like creating the board with my hands and having the actual physical board to look at during the year.

Here’s an example of a board that combines work, fitness and travel goals:

What will yours look like? I’d love to see it. Send me a picture or link when you have it done.

Stay tuned and you will see my board for 2015 in the next newsletter.

Don’t Let Money Ruin Your Romance

In honor of Valentine’s Day, I want to talk to you about love and money. I have known many couples who were in love until they found out about the other person’s money habits.

Your money incompatibility doesn’t have to end the relationship. If this is the one, you can make it work. You just have to ask the right questions.

This is what you need to know about each other:

Financial Issues: Income, assets, expenses, debt and credit. Understand what is going on with each other’s finances. Are there debts and back taxes? Are the savings accounts available to use jointly? Should some of the assets be merged or sold off, and if so which ones?

Money Type: Are you a Spender or a Saver? If you know, you can use your joint goals to meet in the middle on common ground. If you’re habits are extreme, you might want to keep separate bank accounts. That way, one of you won’t feel pinched while the other is in a constant state of sticker shock.

Long Term Goals: What do you want from life? Do you want to be married or single? Do you want to be a homeowner or rent for the rest of your lives? Do you want to have children? These questions need to be answered so you can save towards the same goals.

CFO (Chief Financial Officer): Who is in charge of the money? Is it one of you or both? Will you split the responsibilities by category or do everything jointly? Knowing will keep “that’s mine” arguments to a limit.

With this information, you can decide if you want to keep your finances together or separate. Joining your bank accounts together with someone who has ignored debt or back taxes may mean your money is at risk (even if it’s not your obligation), and in the end, puts you both in the same deep hole with no way out.

Finances can be the doom of relationships. Being informed and making proactive choices is the best way to make the relationship work.

The Worst Things You Can Do With Your Money

This is my personal top five list of the worst things you can do with your money

no-1 1. Pay ATM fees (or for that matter, any bank fees) – There are banks out there that won’t charge you just for the privilege of having a checking account. You shouldn’t be paying a monthly maintenance fee or ATM fees. Ask your banker how to eliminate the fees. If they can’t, or won’t, move your money to a better bank.

2. Pay interest or finance charges on credit cards – Paying interest or finance charges is a complete waste of perfectly good money. It might have been a great deal when you swiped your card, but when you add interest, you’ll end up paying more than it was worth. If you currently have credit card debt, try moving it to a card that offers zero percent interest on transfers for the first 12-18 months. Once you are out of debt, pledge that you will not pay interest or finances charges ever again.

no-1 3. Sign without reading the fine print – Never sign anything that you don’t read. If you read it and don’t understand it, then ask questions or do your own research to understand it before going forward. I speak with so many people who just signed an agreement thinking they got a great deal, and then were blindsided hidden fees and additional charges. Were they really cheated? No, they just read the price in the big print, and not the details in the small print.

4. Pay for unused services (or things) – Are you paying a monthly fee for services you don’t use or could get for free? If you’re actually using them, that’s fine. But if you not, you could use that money for something that will actually make you feel good. I cancelled my magazine subscriptions because I wasn’t reading them. If you pay a credit monitoring service, you can do this for free with very little time investment. Are you paying for online services instead of using the free version? If so, are you actually making the most of it?

no-1 5. Duplicate Spending – Have you bought something at the store only to find out you already had one in the back of the closet? That is duplicate spending. You can resolve this by getting organized and getting rid of the clutter. If you know where to find something, you can easily access it before you go out and buy a duplicate.

In the comments, let us know where you stopped wasting your money!

Get Ready for 2014 with Smart Goals

What are your goals for 2014? Let’s see if I can guess… is it one of these?

Get organized
Lose weight
Eat healthier
Exercise more
Save money
Get out of debt

Almost everyone wants something on this list. Why do we keep setting and forgetting the same goals every year if these are the basics of a healthy lifestyle? Let’s step back and talk about goals in general.

All goals should be S.M.A.R.T.

Specific
Measurable
Achievable
Reasonable
Timely.

Your goal to “Save more money” is smart, but it’s not S.M.A.R.T. With a general goal, you’ll never know how well you’re doing. “Saving more money” could mean adding an extra $1 to savings. It’s not going to do much for your budget in the long term.

But, if your goal is to “Save an extra $500 by the end of 2014”, that’s S.M.A.R.T. You have a specific amount, it’s reasonable, you can track your progress and make adjustments to reach your time limit.

Back to 2014 goals – here are some resources that I use to make my goals a reality.

A Scanner

I’ve been tackling “getting organized” as a goal for a few years now, but I’ve been using the S.M.A.R.T. method, so I organized different items each year.

In 2012, I scanned all of our medical records.

For 2013, I scanned and saved all my recipes. My grandmother and mother, being great cooks, left me lots of family recipes. Plus, I had a cookbook collection, and lots of magazine and newspaper cutouts. So far, my scanned recipes have been a big plus in my life. They’re easy to find and share, my cupboards aren’t stuffed with paper, and we were able to donate 75% of my cookbooks.

For 2014, I am scanning all the family photos, slides and movies. This is going to be a big project for me because I’ve become the archiver of family photos as relatives have passed away. I have to admit that I have started a little early with my new all in one printer / fax / scanner.

Websites I’ve used to meet my goals

TripIt.com is how I organize all of my travel plans in one place – airline confirmations, hotel and car reservations, tours etc. All the information is in one place and easy to access. It’s as simple as forwarded the email receipt to Trip It and it appears on your itinerary.

For my goal of getting healthier (making better food choices, eating at home more and fitting in exercise), I use LoseIt.com. It’s helped me with my 2013 goal of leading a balanced life and making more time for me. Part of my goal was getting to know the feeds I eat so I can make better choices. LoseIt.com helped me to keep track of my food and to stay balanced (like watching the carbs to protein ratio). The website and app lets you input a recipe and save it for future use. There is a section for exercise too.

What are your tips and resources to help you achieve your 2014 goals? We’d like to know what you do.

To really get your goals started for 2014, you can join my new Facebook group. It’s a month long class that will help you set realistic goals for the year ahead.

A Facebook Group for Your Goals

Join me for the month of January for Taking Charge of Your Finances. Many people want to have more in savings, to spend less, to pay down their debt, save for their children’s education, save for retirement, buy a home, and more. This will be your chance to connect with other like minded people, and get your New Year’s resolution off to a solid start.

completely-free

Learn more here

I Created a Work / Life Balance on a Small Budget

This year my goal was to create a better work / life balance. Sound familiar? I know that others have tried it, and frankly I’ve tried before, too. This year I was determined not to fail. (Just like every other year.)

Well, we are in the 9^th month of the year and I’ve actually done it. My daily routine has been reformed. I’m still going strong on my first small action steps, and I’ve added more over the year. I didn’t go from nothing to full speed ahead. Instead I made little changes to clear the road and aimed for forward movement.

The first thing I did was to start meditating each morning. What I do, is get my iPod out and listen to a guided meditation. My mind is always racing on to the next thought, then the next thought, and so on. I need help so I can set aside my mental to-do list and work on relaxing instead. I’ve enjoyed meditations by Collette Baron Reid and The 21 Day Meditation Challenge from the Perfect Health series by Oprah and Deepak Chopra

Next, I wanted to get a grip on my eating and exercising. I still have my garden for fresh vegetables. There is nothing better than picking the lettuce and tomatoes from my garden for a salad and eating it that very day. Sadly, it’s Fall and the garden is winding down for the season. What will I do this winter?

With the help of my good friend, role model and inspiration, Vicki Heise of Live Your Health Life I tried LoseIt.com. It helps me track my eating and exercise. Most of the foods Dave and I eat are already programmed in by brand and restaurant – and I can add my own recipes. It’s a website and an app, so I can use it wherever I am – no more pad and paper for me. I check the calories and nutritional break down to see if I am eating too much of the same types of foods. The best news? There’s a free version.

Now for the exercise portion – I have always been a walker but recent vertigo attacks have made me nervous about walking by myself. Then I found a program called WalkWithADoctor.org. It’s a health program where you can take your walking exercise with a real, honest-to-goodness, right-there-with-you physician. The nearest location to me is Stamford, CT. I walk with two cardiologists for 45 minute sessions. This program has locations throughout the US. Now that the weather is getting cooler, it’s such a pleasure to be outside.

As you can see, I am moving forward with my goals and making lasting changes versus quick fixes. I’m not letting distractions or disabilities get in my way.

All the little improvements have come at a much slower pace than I’m used to. I make one small change, get used to it, then make another. That’s worked much better than the all-or-nothing, go-all-out-for-30-days-and-fail routine. And, I haven’t spent a whole lot of money. That’s good for the budgeter in me and it’s another step towards maintaining my work / life balance.

Why Financial Envy is a Waste of Time (Update)

You see this happen all the time. You are in a situation with other people and someone mentions his nice vacation plans. What is the first thing that pops into your head? Are you genuinely happy for him or do you automatically think about how much he’s spending (that includes jealous thoughts of the “he must be making more money than me” kind). You know what I mean.

But in the past few years, I have learned to stop comparing my financial situation with friends and family family (I’m not perfect but I am improving). I have come to realize that I am projecting my values and beliefs onto other people. What I think or believe about another person’s finances has no basis in reality. I am not in their shoes and don’t know what their situation is.

People spend money on things that are important to them. I know that some people may think I travel a lot. When one vacation ends, I am already planning the next. I personally always want to have a trip to look forward to. You might be thinking thoughts like “how can she afford it?” or “where does she get the money to travel?” You may even be envious. But you won’t know exactly how I make my little dreams come true because personal finances are just that – personal. .

Although in a few weeks,, I will shed some light on how we travel.

The other side of comparing your finances is the presumption that you are somehow morally better or worse than others. Grim tales of credit card debt are all over the news, often mixed with stories of foreclosure and homelessness. You may feel good about yourself because your debt is lower, but do you know why the person on the news has the debt? Was it really insane overspending, or was it a medical emergency or a layoff. Maybe the credit cards were used as a last resort to pay bills?

I have heard it said that “to compare is to despair.” This thought process of judging others is detrimental to you. You have no idea whether another household spends more money than they have, is in debt to their eyeballs, or has planned ahead to achieve their desires. You don’t know how much they earn or how much they give to charity. It is much easier to judge someone else than look inward at your own spending habits.

In the budgeting process, people track their daily expenses to see how much they spend and in what category. This can be a great exercise. Once you see where your money is going, you can make life-changing decisions. Where do you want to spend? What do you want to save for?

There are no right or wrong answers. There are only personal choices. Maybe you choose electronics over vacations. Maybe you choose decorating and entertaining over both. Maybe you choose to give your children spectacular holidays or birthdays over everything else. These are the kind of choices your neighbors, friends and family members made when they did something that impressed you and made you envious. They simply chose to spend their money in a different way than you.

So the next time you see someone order an expensive meal at a five star restaurant, purchasing the latest greatest electronics, or buying a designer outfit, don’t judge them. Not only is the thought process destructive, but it is a total waste of your time.

Creative Ways to Get Paid

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Have you reduced your expenses to the bone, yet it’s still not enough? Maybe you just need to make more money? Ha ha. Who am I kidding, right? You can’t commit to a second job with your responsibilities and it’s not like you can ask for a raise in this economy. Hear me out, because you don’t have to get a part time job to pad your budget

Here are some ideas that might help your cash flow:

Sell things you don’t need or want online. I’ve used CraigsList.org to sell lots of things – everything from toothbrush heads to a car! Use EBay.com for collectibles. Newspaper ads really cut into the cost of selling things you don’t need, but the internet has made it profitable.

Hold a tag, garage or yard sale. You can go it alone or talk your neighbors into holding a block sale – that way you can share the cost of advertising. If you live in an apartment or condo, or simply don’t want strangers coming to your home, see if your town hosts a yearly “flea market”. To sell at our town’s flea market, you just have to pay a fee for the space. It’s a big popular event and attracts paying customers. If you have quality items, you’ll make your fee back, and pull in a good profit.

Try a consignment shop if your items are valuable. If you’ve got something that’s very gently used and still has value, this is the way to go. I have personally consigned clothing, and other small merchandise, and have been happy with the fair price received for my treasured items.

Have a great skill, or ready hands, but can’t commit to a second job? Check out TaskRabbit.com. This website connects people who need things done with those who are willing to do them. A woman I know grew up working a big yard and garden with her mother. All that drudgery paid off. Now she rents herself out for a day on weekends planting gardens. It’s the kind of second job that she can fit in her schedule because she only takes the extra work when it’s convenient. The plus side? She enjoys getting paid to spend time outside doing something she’s good at. As with anything do you research before moving forward.

Would you like to rent out space in your home? Airbnb.com “connects people who have space to spare with those who are looking for a place to stay.” The name means “Air Bed and Breakfast” but you don’t have to convert your home into a permanent hotel to make money. The upside for travelers is an authentic stay in a real neighborhood. It’s also great for business people looking to relocate because they want to get to know a neighborhood before they commit. There are restrictions to being a host. You’ll need to check the website to see if you qualify. As with anything do you research before letting someone in your home.

Take a survey or participate in a focus group. I’ve done it. Marketing companies actually gave me money to give them my opinion. I like that!

Odd jobs can make you extra cash. I’ve paid people cash to help with a tag sale, move furniture, haul things for me in their truck, walk the dog, pet sit, and run errands. What can you offer? Get your name out there as an odd-job doer. Like with TaskRabbit, you can accept work on your terms and turn it down when you don’t want it.

As with anything, watch for scams and try to stay with legitimate companies. Do your research before, and choose accordingly, based on your situation and needs.

How do you get extra money when you need some? Let me know.

Social Security: When and How Much?

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You may not be thinking about Social Security for yourself yet, but if you, or someone you know, has reached age 50 or beyond, there are some things that you might want to consider before making your choices.

When can you receive your full social security benefits?

It used to be that everyone was eligible at age 65. Now, anyone born between 1938-1959 has to use the Social Security retirement age chart to find their exact retirement age. Why? Because in the early 1980’s they decided to increase the age to 67 but didn’t want to hold out on those close to retirement. Instead, they gradually increased the retirement age by tacking on an extra 2 months for each year by birth year.

Based on our birth years, my husband Dave can retire at age 66, but I need to wait until I’m 66 and 10 months. It finally evens out for those born after 1960 – they’re currently holding at age 67.

Of course, to qualify for Social Security you have to meet the required credits. If you work and pay taxes, you will earn social security credits (typically 4 credits per year worked). You need to work at least 10 years (40 credits) to receive your own retirement benefits. Other types of benefits are available depending on your circumstances.

What happens if you start early and take partial benefits?

During the holidays, a group of us were talking about social security and what age we planned to start taking benefits. The group consensus was to start with partial benefits at age 62. Yes, for some that makes sense, but not for everyone.

Consider this: If you take your benefits before your full retirement age, you’ll receive reduced benefits for life (by as much as 25% less). In addition, if you’re still working and collecting social security, you’ll have income limitations each year.

On the other hand, if you delay your benefits past your full retirement age, your benefits will increase both for delaying and by annual cost of living.

The bottom line: What your family and friends do may not be what is right for you. Our family conversation brought up some interesting questions. We decided to speak with one of our investment advisors to understand what was best for us. He had a novel option that worked really well for our situation. You see, the best choice for us wasn’t to take the benefits at 62… or to wait. When Dave turns 62, we’ll be using that advice to start our golden years in the best way possible.

Do your research and make a plan that is right for you and your family.

P.S. This important advice came courtesy of our readers. Thank you, Betsy!

Jill,

Another bit of information is that a wife can collect on her husband (or visa versa) at age 62 and then collect on themselves at full retirement age and not have the reduced benefits for life.

Betsy Thomas

Keep Your Savings Accounts Away from the ATM

savings-atm-1

One thing I’ve learned over the years is not to have my savings account linked to my debit / ATM card. 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 gives me time to talk myself out of wasting my savings on something I don’t really need.

An added benefit to keeping your accounts separate, is that if your debit card is stolen, the thief cannot access the money in your savings.

Transfer to Savings Automatically

savings-automatic

Have you struggled to save money because there never seems to be anything left over? Big surprise! We tend to spend the money we have in front of us. Getting a raise never seems to help, because that money disappears, too. There’s always something we think we need right now.

The best way to grow the money in your savings account is by setting up an automatic deposit from your paycheck. That way you never see it to spend it. If your company doesn’t offer this, that’s not a problem. Have an amount set up to be transferred automatically from your checking account to savings on a regular basis. The benefits here are that you are saving without any effort on your part and the money isn’t in your checking account to tempt you.

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