Tips for Successful Personal Finances
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.
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
In our last issue, we discussed whether you should blend your finances when you get into a relationship. Money will be your biggest source of friction, and having boundaries doesn’t hurt. I listed some of the different financial relationships couples choose. There are different options besides “What’s mine is mine and never ‘ours’ or “It’s all or nothing or I’m out of here.”
Sometimes your best efforts to create a life together fail, and the relationship ends. Today, we’ll discuss how to unblend your finances. Whether you decided to share all of your accounts, or only share expenses, you should separate your finances as soon as possible, because you can be sure that someone’s name is on the wrong paperwork.
Take a look at your…
“But Jill,” you say, “these all sound like things that happen in a hostile breakup. We’re not like that.” Even if your breakup is friendly, and your ex is as trustworthy and competent as a super hero’s alter ego, you still need to separate your accounts to protect yourself in case something happens to one of you. If one of you dies, or is mentally incapacitated, the law won’t recognize verbal agreements or promises. They only see whose name is on a piece of paper.
Let’s talk about verbal agreements. Let’s say the house and car loan are in your name, but you want to be nice. You don’t need them, and your ex does. Your ex has agreed to make payments, so it’s no big deal, right?
Wrong. Your credit will take a hit with the first missed, or late, payment. And, you may not be able to get a new car or house for yourself because your debt to income ratio is too high. The bank won’t take verbal agreements with your ex into consideration when you apply for your loan.
Here’s something else to think about: Can you maintain your current lifestyle if you live separately?
If you end up with the house or the car, can you afford the payments? Can you pay for the utilities, the maintenance and the insurance? You may have to make tough decisions, because you could be without the things you need to live if you don’t plan ahead.
Too many people have found themselves temporarily homeless, or had their credit ruined, after a breakup. Don’t let this happen to you.
We’ve already had extensive damage from severe storms on the East Coast and across the Midwest. These storms caused power outages that lasted for days in the middle of a record-breaking heat wave and cancelled 4th of July celebrations.
Be Prepared for a Power Outage
A big storm can knock your power out for days. And, you really don’t want to be shopping for supplies during or after the storm when everyone else is trying to buy the same emergency supply items.
Make a list and stock up on a sunny day with no storms in sight. Here are some suggestions:
Most importantly, be prepared to live without the modern conveniences that we have all gotten used to. You won’t have small appliances to heat up frozen meals or electricity for news and entertainment.
Be Prepared to Evacuate
Evacuation isn’t just for hurricanes. You should arrange a place to stay in case you have to leave during the storm. Think of conditions that could make your home unsafe, like flooding, fallen power lines, or structural damage from wind and falling trees. You’ll need to stay someplace close so you can get to work and manage repairs. If your closest relative lives 200 miles away that won’t be much help, and the closest undamaged hotels will be booked quickly.
Be prepared. It will make it easier for you to ride out the storm.
Summer has ended and we are now into Fall. Do you know what that means? There are important preparations to make! Yes, of course, you need to rake, and bake, and make costumes, and shop for the holidays. But isn’t there something you’re forgetting?
You need to prepare your home for winter weather! Those of us in Connecticut have seen unusual weather this year: earthquake, tornados, hurricane, not to mention feet of snow… and 2011 isn’t over. I hate to think how much snow we’ll get this year.
Here are several things you might want to do before winter sets in and why you should do them:
Have your heating system cleaned and tuned up for winter
Why? It may seem counterintuitive. How can paying for a tune-up save you money? For starters, it’s much more expensive to replace or repair a furnace. And, obstructions and dirty vents can reduce your energy savings. That’s not to mention the dangers of carbon-monoxide poisoning. Check to see if your utility offers a free annual checkup.
Seal up any drafts from windows or doors.
Why? Leaks cost you money, every day, every minute that your furnace is running. Our front door developed a crack in the wood that we repaired to seal up the draft. If you need to replace windows and doors, check to see what energy tax credits are available to you.
How do you check for drafts? Here’s a fun trick: Have someone aim a hair dryer from outside while you hold a lighted candle inside – carefully! If the flame moves or goes out, you know you have a heat leak.
Have your roof inspected for leaks before the snow piles up (we should have done this last year)
Why? Learn from my failure. You don’t want to deal with a roof repair in winter. Trust me on this.
Have your chimney inspected.
Why? Chimney bricks are more exposed to the elements and quicker to crack than the bricks on your walls. They’re also difficult to repair in winter because the cement mixture that holds them together needs to dry. You don’t want to cope with water damage in February when it can be prevented with an inspection in October.
Trim trees and bushes (or remove them)
Why? What do you see after every single snow storm? Photos of damaged property from fallen limbs and trees. Taking care of dead or weak branches can help protect your home.
Let me know what you are planning on doing for your home.
It’s summer – hurray! But with summer comes the possibility of storms and power outages. This has been a year of unpredictable weather. Are you prepared for whatever comes next?
These are things we have to think about.
The difference between winter and summer storms is the outside temperature. With this being summer, you have to think about preserving and using the food in your refrigerator and freezer.
If you hear of a possible storm coming, take precautionary steps before it strikes.
The more you do to prepare, the better you will be able to weather the storm in your own home.
Are you prepared to handle anything life throws at you? This can include anything from an immediate crisis to a major life hurdle. Take a good look at your life and think about some of the situations I am talking about, and think about what you would need to do in your life to be prepared.
If we have to evacuate or run for cover, take this folder…
If you had to leave your home within a short amount of time (storm approaching, fire, flooding etc.) would you know what important papers to take with you? Could you gather all of them in 30 minutes or less? This should be a goal of yours, to have your papers organized and ready so you only have to grab one container (a hard drive, a file box, or a folder) – and go. In addition, what about those personal items that are irreplaceable? Could you grab those, too?
If something happens to me, you know what to do…
What if the person who handles the finances passes away? Would anyone else know where all the financial records are? Do you know where all your assets are? Do you know what liabilities you are responsible for? In many families, one person handles everything. Both people should know what is going on – just in case. That’s especially true for the paperless households who do everything online. More than one person must be able to access all of the accounts because there won’t be a file cabinet to sort through.
If you are prepared and organized ahead of time, it will make life much easier for you. Start to think about this today and make a plan that works for your situation. Being ready and knowing what you should do will save you so much time and effort if you find yourself in a bad situation.
The first four months of this year have provided all sorts of weather challenges all over the country. We started the year off with record breaking snow storms, in April, there were major tornadoes (over 300 in one day), and now flooding. What is going on with this weather?
Are you prepared for whatever weather disaster comes next? Read and find out!
There is more to worry about than the actual storm. You could experience long term affects like power outages, flooding, wind damage, and more. Don’t assume that you won’t experience a weather disaster just because it has never happened in your area before.
These tips will prepare you for any kind of disaster, so read on.
Do you have proper insurance coverage? When was the last time you discussed your policies or updated them with your insurance company or agent? It could be well worth your time to do this in the next couple of weeks. While you’re there, you should also ask about umbrella coverage if you don’t have it already. As the name implies, this is a general purpose policy which provides additional protection above and beyond your existing policies. It is a relatively low cost insurance that can make a huge difference if you have to file a claim.
Do you have a well thought-out evacuation plan? You can’t use a general plan created by someone else. Personalize yours to fit your needs. Here are some things to consider:
Do You Know How to Prepare for a Storm? Here are a few other general tips for you to think about. If a storm is forecast, make sure you:
This way you will be ready for whatever weather comes next. Is there something else that you do that I didn’t include? Tell me in the comments section.
I have no idea what is going on with the weather around here. First, we start the year with a record number of snow storms and now the rain. What are we supposed to do? We need to be prepared for whatever weather comes our way.
How can you prepare?
Start by talking with your insurance company and/or agent and discuss what your insurance covers and what it doesn’t. You should be doing this every couple of years. If you can’t remember the last time you did this, then it’s time. You may find that you need to add or increase certain coverage. You should also discuss flood insurance. It doesn’t cover everything and usually has a high deductible, but you might regret not having it.
Next, do you have emergency supplies in your home? If you lose power, do you have lanterns (better than candles and not a fire hazard), battery operated items (radio, can opener ) barbeque grill for cooking, full tank of gas for your car (gas stations can’t pump gas without power), emergency cash on hand, etc. Do you know where these items are? I keep mine all together in one basket.
If you had to evacuate your home in a short period of time, do you know what you would need to take with you? You should have your important papers and records in one easy-to-grab place so you can get out fast.
Being prepared ahead of time makes it easier to ride out a storm in comfort or evacuate your home quickly.
Have you been thinking about replacing an appliance for another more efficient one? Were your appliances damaged in one of the storms this spring? Now may be a good time to make a purchase.
Connecticut is one of 14 states participating in the Energy Efficient Appliance Rebate Program The Federal Government gave Connecticut $3.4 million to use for this program The program started January 25, 2010 and will run out when the funds are used up So if you are thinking about replacing that old appliance for a more efficient one or you lost one in the storm damage, this is the time to consider buying one or more.
This program is designed to stimulate the economy with sales that will help retailers and to provide you with a more efficient appliance that will lower you energy usage (therefore lower you utility bill) If you live in Connecticut, go to www.ct.gov/opm/ApplianceRebates If you live in another state, search your state government’s website for more information.
You will get the following rebates:
Clothes washer $100
Refrigerator $50
Freezer $50
Room A/C units $50*
Central Air units $500
*You are allowed one each except for room a/c where you are allowed 3.
Only buy an appliance if you can afford it, or if you know your insurance company will reimburse you for your claim Buying something you don’t need or can’t afford will not do you any good, even if you get a rebate As always, consider how you will pay for it before you buy This is one of those things that you should be able to pay for from money in your savings account This is not a good purchase for to put on a credit card and make minimum payments for years to come.