We had some great comments from readers in April.

What Don’t You Do with Your Money

Cheryl emailed:

“This one really hit home…we think the same way as you…we are frugal in some areas so we can do other things that we like to do.  We recycle a lot of things; save them and then reuse; like door knobs, drawer pulls, mini blinds etc. We reuse what our parents and grandparents used…no need to buy new; ie: garden tools, kitchen appliances and kitchen utensils. My husband uses old tools, (old but well made and efficient); He will put a new handle on, sharpen blades and so on. Our wood curtain rods with decorative end caps were also my grandmother’s that had been saved by my parents. Thank heavens they had a large attic!!

Today I pulled my grandmothers wooden wheelbarrow out to work in the garden!!!”

I love it, Cheryl. If the old tool still works and is in good shape, why replace it! I can understand replacing prominent appliances if they don’t match this decade’s styles, but most tools pop in and out of the closet as needed. And, you’re lucky to have access to grandma’s attic for those lovely curtain rods!

“What systems do you use to organize your finances, so that your bills are paid on time?” (Facebook)

On Facebook, Vicki Heise wrote:

Hi Jill! I use a single sheet of paper that lists bills in due date order to make sure I don’t miss anything. It has columns for accounts, amount due, bill received, due date, amount due, how to pay, and online usernames and passwords. Most of the info is pre-filled so it’s easy to check if any bills are missing and see if the info is correct. Recently I added incoming monies to the list so I can see the cash flow too. It’s made paying bills and handling the $$$ so much easier!

I love it, Vicki! Whether you use paper or a software spreadsheet, there’s something to be said for seeing your payment and income schedule all on one page!

And Amy J. R.  wrote:

I pay bills once a month through bill pay directly from checking account. It works great because I can see everything so nothing is missed and it’s quick and easy. Some bills are withdrawn automatically every month. I save the bills as they come in the mail throughout the month and check them before I pay just to be sure I have the amount correct.

You’re brilliant, Amy! Not only are you keeping track but you’re double checking to make sure you’re being charged the right amount.

“How do you find extra money to put into savings each month?” (Facebook)

On Facebook, Amy J.R. wrote:

We use ING savings accounts where a set amount is automatically withdrawn each month from our checking and put into various individual accounts.

Automatic withdrawals are the way to go! I love that you have individual savings accounts for different purposes.

Which bills or services have you eliminated in an effort to balance your household budget?

On Facebook, Whitney B. wrote:

Unused memberships, subscriptions and cut back on cell phones and cable services.

And Jennifer C. wrote:

Have not eliminated but renegotiated fees etc.

Renegotiating what you do use and cutting back on what you don’t use. These are great ways to save money without giving anything up!

Thank you for your sharing your wisdom in April everyone!

Share Your Vacation Story!

Planning a great money-saving vacation? Share your tips! You can post your story in the comments below or on Facebook, LinkedIn or Twitter. Or, you can email me at book @ jillrussofoster.com. I can’t wait to be inspired by your summer plans!

Here are my suggestions!

Now that it’s Spring, you’re probably thinking about summer travel plans. I know I am. But, with the price of gas going up, you might be thinking, “Can I afford to do something this summer?” You can if you stay local. Here are some free or low-cost suggestions:

Local museums – Museums can be pricey, especially if you’re bringing the whole family. But most museums have free days or discount days. Check the website or call the museum to see when their next discount day is, then plan a vacation day around that.

City parks for movies, concerts, or theater – Many Parks and Recreation Departments host events. These might be free, or low cost, and all you need to do is pack a picnic. In our area, we have movies in the park, many music concerts and Shakespeare on the Sound.  Check out your town’s website to see what they offer.

Libraries – Check your library’s event listings (we use our library all year long). Many libraries host interesting talks, movies, and even musical events.

Holiday Celebrations including parades and fireworks – What is your town doing?  Check out nearby towns, too.

State Parks – You’ll get a change of scenery and a day outside.

Tourist activities – Be a tourist or visitor in your town (or nearby) and check out the sites. Try to see your town with new eyes and check out the funny little restaurants, art stores, outdoor art, and important town landmarks.

Get together with family and friends – Plan a get together to reconnect. We have one planned for July already.

Go to the Beach – This is one of my favorite places to relax.

Street Fairs and Festivals – Many areas have multiple festivals throughout the summer. There are arts and crafts fairs, ethnic celebration festivals, and antique car shows. You can buy pottery one weekend, and dance the polka the next. Use the internet to see what’s happening in your area.

What do you have planned?  Join the discussion.

It’s time to order your next credit report
This month use Equifax

Hello everyone! This is your quarterly reminder from me.
Order your free credit report from www.AnnualCreditReport.com.

AnnualCreditReport.com is the ONLY authorized source for a truly FREE annual credit report that’s yours by law. You have the right to know. Exercise your rights! Learn more.

When ordering online:

1. Select your state, then click Request Report.
2. Fill out your information, then click Continue.
3. When it asks you to select a service, select Equifax.

Not comfortable ordering online? There are three ways you can order your report:

• Order online at www.AnnualCreditReport.com. By ordering online you can have your report back in minutes!
• Mail your postal order by downloading the form at www.AnnualCreditReport.com
• Call in your order at 1-877-322-8228

It doesn’t matter how you get your report, the most important thing is that you do! Then…

• Review it for accuracy!
• Follow the instructions with the report to correct any errors.
• And, always remember to keep copies for your records.

Do you want to know your credit score? Use CreditKarma.com. Credit Karma will give you a close approximation of your FICO score, and it’s free.

May you have a sunny and profitable summer!

P.S. You will receive another reminder in September, allowing you to stay up-to-date on your credit throughout the year.

I’ve shared two ways we save money in our household – careful food shopping and credit monitoring. Now I’ll tell you what we don’t do that saves us money.

We don’t have a data plan with our cell service

We have cell phones, but that’s it – just cell phones. We don’t have text messaging or a data plan. We lowered our minutes to the lowest plan available and we regularly come in way below our limit.

We don’t have HBO.

Only in the last month have we upgraded to an HDTV and that’s because one of our two TV’s needed to be replaced. We still have one older TV and we don’t plan on replacing it unless it stops working. We have a basic cable package and get our movies free – either from the library or the free on-demand selection our cable company provides. We gave up our paid movie channels a while back. We don’t have a DVR either – still using the VCR.

We don’t hire home contractors (often).

We do a lot of home maintenance and repairs ourselves. Last year, we painted the garage. This year we painted the bathrooms ourselves. We don’t have a landscaping service to take care of our yard. (It helps that we don’t have a big yard to take care of.) I really enjoy gardening. There is nothing better than picking fresh vegetables and eating them within minutes while they’re still super fresh.

We don’t buy new cars.

We drive older cars. Mine is a 1995 with 167,000 miles and it runs fine. I just had a tune up and the mechanic says the car is in great shape. Having older cars works perfectly for us, because we don’t like making payments. I’m not into fancy cars – all I need is reliable transportation.

You might be thinking that we lead lives of deprivation, but I can assure you that we are not missing out on anything. We only spend money on things that are important to us. If we spent money on things that we didn’t enjoy (but made us look good to other people), that would mean having less money for things we do enjoy – like nice vacations.

What don’t you do with your money? Join the discussion.

It is so important to prepare for retirement. It really is better to put aside money now so you can have those happy golden years later.

So, what should you do?

You can contribute to an IRA, or Roth IRA, by depositing up to $5,000 each year.  If you are at least 50 years old, you can contribute $6,000 for each year. (Those guidelines could change, so visit www.IRS.gov if this is an older post.)

Also speak with your tax preparer, investment person, and/or your banker; all will be willing to give you their professional advice. Depending on the type of account you have, and your income level, the contribution to your retirement account may be tax deductible for you.

If you are thinking, “I don’t have $5,000 to contribute!” (that’s $416.66 a month or $96.15 a week), it doesn’t have to be an all or nothing situation.  Make a plan so you can contribute an affordable amount on a regular basis, then increase it over time.  Remember to have it withdrawn automatically so that it bypasses your checking account.  It will add up over time.

The earlier you start, the more money you will have when you retire.

That’s my advice. What are you doing prepare for retirement? Let me know in the comments.

Identity theft is one of the biggest fears plaguing consumers these days. It was interesting to catch a scene on a crime show recently where a waitress is caught hiding a portable credit card swiper under her apron, then using it to steal her customer’s credit card information. YES, this does happen in real life.

Identity theft isn’t the only thing that can hurt your credit. Banks make mistakes, family members make late-payments on jointly shared accounts, you might have a payment dispute with a fraudulent company. I could go on, but you get the idea. Life happens.

The only way to protect yourself is to consistently monitor your credit. Most people believe that you have to pay an outside company to have your credit monitored. I disagree! I do it myself.

Once you get in the habit of monitoring your credit, it gets easier and becomes an almost compulsive habit. You’ll feel that you have much more control over your life and finances.

How to Monitor Your Own Credit

1. Look over your credit report three times per year minimum. You can do this by visiting www.AnnualCreditReport.com and ordering one report every four months. It’s completely free.  If you subscribe to Quick Tips, you’ll get a reminder email with instructions in January, May and September.

2. Check your credit score at www.CreditKarma.com every month to see if there are any changes. This is also free. Monitoring changes in your score can alert you to hidden issues.

3. Monitor your bank accounts (checking, savings, etc.) to see if there are any unusual transactions.  Most banks have online access, so you can easily check any time you get online. My virtual bank accounts actually email me with every transaction, so that’s an added plus.

4. Monitor your credit card accounts. I get online and check each and every account to see what’s happening. I do this every week or so, just to be on the safe side. These days, people can even scan credit card information through your wallet or purse from a distance. It doesn’t hurt to be careful.

Yes, taking these steps can take up some time, but it’s well worth it. Even with my busy schedule, I am able to find the time to monitor my credit. I am comfortable checking my accounts and credit, and I don’t feel it’s necessary to pay for a monitoring service. You may not find that it’s worth your time, but remember, it’s absolutely free to give it a try.

Are you in a relationship? If you are, you know what it’s like to share your life with someone you love: your joys, your sorrows… and your money.

One of the biggest reasons for divorce (or breakups)  is finances.  I know you don’t want that to happen, so what can you do about it?  Talk. Communication is the key to handling joint finances.

People have different ways of handling their finances.  One person might be a saver who really values the money saved for future dreams and needs, while the other might be a spender who lives in the moment.  If these two individuals become a couple, there can be disagreements about money that can escalate to divorce.

Take a minute to talk with each other about your money habits. It can be a really eye opening conversation.  Really listen and try to understand the other person’s point of view. What did they learn about money growing up? What do they want right now? Where do they want to be in 1, 5, 10 years and beyond?   With this understanding, you can choose a path that will work for the both of you.  Meaning, the spender will save a portion and the saver will spend some money.   Come up with mutual goals and agree on how you will achieve them together.

The goal is to handle your household finances and your goals in a blended way so that both people are comfortable.  To do this, communication and action is key so that all feelings are heard and considered.

If you’re in a relationship, tell me how you handle your finances as a couple. Who handles the money? Who makes the budget? Who sets the goals?

With the price of gasoline going up every time you drive by the station, what are you to do?  There are a couple of things you can do to save money at the pump.

1. Clean out your car.  The more weight you carry in your car, the more gas you use.  Take out the stuff you don’t need and make a habit of doing this regularly.

2. Combine your shopping.  Run errands in one trip versus going out today for something, then again tomorrow for something else.  Map out your stops to get your errands done in an efficient manner.

3. Drive at a steady pace.  Quick starts and hard braking can use more gas than driving at a steady pace.  While you’re at it slow down.  Driving above the speed limit is a waste of gas.

4. Pay with cash.  Many gas stations charge a premium to use your credit card at the pump.  Save money by using cash for your fill ups.

5. Plan ahead.  Use your computer to help you save money when you need to purchase gas.  Websites like Gas Buddy  can find you a lower price and apps like Cheap Gas  can do the same from your smart phone. (Gas Buddy also has an app for Android)

So, how do you save money at the pump? Let me know in the comments.

With Financial Literacy month starting on Sunday, I want to help you to save more money. I figure that the best way to do that is by consulting the experts, and by experts I mean you. I know you have some tried and true money savings tips! As they say, “Only the foolish learn from experience - the wise learn from the experience of others.”

I love picking up tips from other people. This April, I want you to show off your savings expertise. Watch Facebook, LinkedIn or Twitter. I’ll be giving you different savings topics throughout the month and asking for your advice.

The first topic is food shopping. How do you save money on groceries? I’ll start the conversation by telling you how I do it.

• On Sunday, I sit down and make a list of what we need during the week. That includes a meal plan.

• When I plan my meals, I make sure that I plan some leftovers so I don’t have to cook every night. Sometimes, I even cook ahead on the weekends and freeze the extra food.  (Ordering take-out can be a downfall to my budget.)

• My meal planning also revolves around sales. That’s why I like doing meal planning on the weekend with the Sunday paper in front of me.

• Speaking of the Sunday paper… Yes, I do use coupons.  I don’t make myself crazy.  I cut them out of the weekend fliers and sometimes will even go to the manufacturer’s website to download them.

• Then, I calculate how much my plan will cost me. I compare my cost to my budget and make adjustments to my food plan if it looks too pricey.

• Finally, I shop for food with cash.  This stops me from over-spending. If I use my debit card, I find myself adding items to the cart that I hadn’t planned on buying.

What do you do to save money when you food shop?  Join the discussion.

Remember to follow us on Facebook, LinkedIn and Twitter to answer this and other questions throughout the month of April.  You could literally save someone else’s bacon, and learn some new tricks yourself!

Last Thursday, I talked about balancing debt repayment with building an emergency savings fund. This is the second part of that post.

For the actual pay debt repayment, there are two ways to do this.

If you  are the type of person that needs to see forward movement to keep you motivated, then pay off the smallest credit card balance first, then work your way to the next smallest until you’re done.  This will give you a feeling of reward and the financial momentum to keep this going.

If paying interest rates and fees bothers you, you will want to pay off the highest interest rate credit card first and then work your way down to the lowest interest rate.  You will have the satisfaction of paying less and less in interest charges each month.

Either way excessive credit card debt is the enemy of your budget.

Live within your means.

Because your credit is so important to your finances, you will have to find a way to live within your means. That means only using your credit cards when you know that you can pay them off in full each and every month.

So many people struggle with credit card debt.  Just as they get their debt paid off, something happens and they are in debt again.  You can use your cards for the consumer protections and to keep a healthy credit score, but learn to use your credit cards the way you would a check or debit card – keep your purchases within your monthly cash flow.