Jill Russo Foster

Tips for Successful Personal Finances

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Unique Passwords – Do You Use Them?

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How to use a unique password for every account without going crazy

In honor on Cyber Security Month, I am rerunning this newsletter to help you access your accounts safely.  You know you should have completely unique passwords for every online account, and you’re not supposed to write them down anywhere. But that’s not enough. They also have to be hard to remember.

If you’re like me, that’s just not possible because you use a lot of online services. The internet has made my life easier in so many ways, but it comes with its own risks.

So, how do you keep your online accounts safe? Many people are turning to Password Managers.

A password manager is software that stores and organizes your passwords in an encrypted state, which makes them hard to hack.

The most popular versions will fill login forms automatically. Once you’ve downloaded the software and stored your passwords, they’re fairly easy to use.

Are they safe? The experts are mixed on this point. Some feel that it’s never safe to store your passwords. Others are comfortable with the encryption used on the best versions.

My assistant swears by LastPass. It’s free for your PC, but the is a cost for using it on your smartphone.

If you want to use a password manager, you can choose between a web-based or a local service. LastPass is web-based as is Dashlane and Roboform. The information is stored in the cloud so you can easily use it on all your computers and devices. Keepass and SplashID are local, meaning they’re stored on your PC.

To do your own research, check out the links below.

If you use a manual system, remember to use unique passwords for each site.  When was the last time you changed your passwords?  One of the most common passwords in the actual word “password”.  Not a good choice.  Be creative and make something you can remember that isn’t public information (mother’s maiden name, pet’s name, etc.).

Two factor identification is another great way to keep your accounts safe.  You’ll receive a text or email with a code, that you have to enter so that you can prove you are you.  Yes, it can be an added step that takes time, but it can save you in the long run.

How do you manage your passwords? Let me know in the comments.

Fourth Quarter To Do’s

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Can you believe it, it’s fall and the year end is in sight!choices

For me, there is lots to do (and I am not thinking the holidays yet).

This time of year means it’s time to review my health insurance choices.  Open enrollment for health insurance is here (or just a week or so away).  Medicare is already in the open period, the state of CT will open up the 1st of November and many company plans have the open enrollment at this point too.  It’s time to reevaluate and determine if I want to stay on the same healthcare plan or make a change.

If you have a FSA (Flexible Spending Account), start to look at the balance and determine how to use the funds.  This is a use it or lose it type of account. You wouldn’t want to lose money, would you? If you have an HSA (Health Savings Account), have you maximized your contributions for 2020?  This can be a great way to lower your taxable income.  Make sure you pay all your eligible medical expenses with this account.

Take the time now to do your research and make the choices that are right for you and your family now.

The Holidays Are Here

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The holidays are here. Yes, with many retailers starting there holiday shopping sales early this year, are you ready?  This is a good thing, if you need to stay within a budget, start early.

First, make a list of all the people on your holiday gift list, then see if you can make changes.

Could you give a family gift instead of individual gifts?

Can you go in on a gift with someone else and share the cost?

Would a name draw work for the family party? With a name draw, each person buys only for the person whose name they drew. It’s fun and inexpensive. Do a separate drawing for the children so each child receives one gift and gives one gift. Make sure to set a dollar limit that everyone can afford.

Once your list is complete, set a firm amount for each person and don’t go over. The grand total of all your gifts should be a realistic amount that you can afford. Be honest with yourself and don’t overspend.  You’ll regret it when the bills start coming in.

When shopping, keep your list of people and your budget amounts with you. Check the sales fliers now because holiday sales are already starting. Big retailers are also adding holiday layaway plans.  Layaway plans work great if you know your budget. They allow you to make affordable payments without using a credit card.

You could also try giving gifts that don’t cost a lot of money. Service coupons are a wonderful gift. For example, you could cater a meal for a family that has a busy lifestyle. Try an inexpensive but meaningful gift, like a photo CD or memory album. The choices are endless if you take the time to think of what each person might enjoy most.  This year with being at home more, I have come up with some great gift ideas that are meaningful, but not a budget breaker.  I can’t tell you what they are as family members ready my newsletter.

The most important thing this holiday season is to have fun and enjoy your time together. Create new memories instead of new debts.

Are Your Prepared?

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2020 has been filled with challenges – COVID 19, wildfires, hurricanes, tornadoes and more.  What will come next?  Are you ready for whatever comes your way?

Are you prepared for a fire?  Several months back, the home next to us had a fire and we were talking to the firemen about many things.  We discussed an emergency action plan.  We talked about several things that we needed to be prepared:

  • Carbon monoxide / smoke detectors in the home
  • Escape plan for evacuation
  • Meeting place to gather outside the home

We personally were fine with #1 and #2 but had not considered #3.  We have wired carbon and smoke detectors in our home and just replaced them this summer.  When was the last time you replaced yours?  Hardwired detectors need to be replaced every 10 years.  For battery operated ones, when was the last time you tested them and replaced the batteries?  Please check into this for your own well-being,

The fireman suggested the meeting place for us to be across the street on the neighbor’s porch.  That way everyone could meet and know the others are safe.

How well are you prepared for a disaster?  Take the time to be prepared if disaster strikes in your neighborhood.

If you have to evaluate your home in minutes, what do you need to do and bring with you?  You will need food, water, clothing, medicine, important papers and more if you have pet(s).  Be prepared.  Here are several lists from Ready.gov to help you prepare all different types of disaster kit.

Prep Your Home For Winter

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It’s time to get your home ready for the upcoming winter months. I’m not sure we will be as lucky with winter as last year, with only one minimal storm here in CT.

Here are some things that we do at our house:

1. Get all the patio furniture cleaned and put inside if possible.  We have a lot – and most comes inside – but there are a few pieces that are too big and heavy.  For the pieces that stay out, we put those orange cones atop the table and cover with patio furniture covers.  This prevents the water from puddling up.  Make sure to secure the covers tightly.

2. Turn off the outside water and drain the lines.  You don’t want to have to call a plumber in the middle of winter to fix a frozen line or burst pipe.  Remember to bring in the outside garden hoses once you have drained them.

3. Clean those gutters before you have problems.  Scoop out the debris from inside (even if you have gutter guards), so that the water can flow easily.  Remember to clean out the down spouts too.

4. While you are on your roof… Check for leaks that might need fixing, cracks, and moss growing in the roof (not a good thing as moss holds moisture and that can mean rot).  Don’t forget to look around the chimney. All these could become a major problem as we get into winter.  As I have told you, it’s easier to fix a small issue now rather than a major issue later.  You can either do this yourself or call a professional for help.  While you are checking the roof, do any trees need to be trimmed?  Now is a good time to do this too.

5. Get your heating systems tuned up and serviced before winter to make sure it’s in working order.  There is nothing worse than waking up to no heat on a cold winter morning.

6. Caulk around the windows to seal up any drafts.  You don’t want leaky, drafty windows sucking the heat outdoors.  You should caulk every few years as preventative maintenance.  Don’t forget to remove window air conditioners, as they create drafts.

7.  Because winter storms can mean loss of electricity… You will want to check up on your emergency supplies – lanterns, batteries, flashlights, battery powered radio, warm blankets, non-perishable food with a manual can opener, bottled water, portable power chargesrs and matches if you want to cook on the barbecue grill.

It’s much better to prepare ahead of time and do little projects now while the weather is nice. You don’t want to deal with emergency repairs in the winter.

Tackling Your Debt – Part 2

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In the last issue we talked about paying off your debt with some methods that you could do on your own.  Let’s talk bout other options to payoff your debt, that you will need to consult a professional and make some tough choices before moving forward.

A Home Equity Line of Credit or Home Equity Loan: this is a mortgage against the equity in your home.  This is similar to debt consolidation except for using your home as collateral.  While this can be a much lower interest rate (and may be tax deductible), you are taking possibly unsecured debt and securing it with your home.  In addition, there may be closing costs, attorney fees, etc. involved with the mortgage process. And if you cannot make the monthly payment, there can be substantial consequences involved up to and including the loss of your home.

Debt Settlement sound like a great option to settle your debt for a lesser amount.  You would be paying a smaller agreed upon amount to pay off your debt.  While it sounds good, first do you have the cash to do this?  Second, there could be tax implications on the amount you save (the IRS can consider this taxable income).  In addition, this will be a negative factor on your credit report / score.

Bankruptcy, this is typically the last resort.  The is a legal / financial decision that you will need to discuss with your professionals (lawyer, tac preparer, etc.) before moving forward. There are two types of bankruptcy. One you will enter a payment plan to payoff your debt for a fixed period of time.  The other option, you will eliminate your debt entirely.  But you need to think about what is involved in the big picture – your will have legal fees that will need to be paid, your credit will most certainly be affected, and your will have difficulty receiving new credit at a reasonable interest rate for a period of time.  You will be able to get credit but at a much higher interest rate initially. Until your credit is reestablished.

One tool that I find useful is a financial calculator and BankRate.com is one of my favorite websites that offer a variety of calculators to help you make a decision that is right for you. https://www.bankrate.com/calculators/index-of-credit-card-calculators.aspx

Now that you have several options, make the choice that is right for you and your situation.  Talk to your professionals to get their option.  Then consider the benefits and costs involved.  These are not easy choices, but one that you need to make if you have substantial debt that you want to payoff once and for all.

Tackling Your Debt – Part 1

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Now if you are someone who has accumulated debt in 2020 (or previously), lets talk about ways to payoff your debt.  You have heard the ads on the radio and see the commercials on TV, but are they legit? Maybe, but do you want to try and find out you have been scammed?

Here are some of the ways that you can payoff your debt by yourself:

There is the snowball way:  Here is an example:  you have a $500 medical bill, a $2,000 credit card balance and a $10,000 car loan.  You would make the minimum payments to the credit card balance and the monthly payment to the car loan, while paying as much as you can to the medical debt.  Once the medical debt is paid off, you would start to pay off the credit card debt.  You payoff your debt by paying the smallest balance first and moving to the next smallest debt and so on.

The avalanche way: In this scenario you will pay the minimum payments to all your debt except the one with the largest balance.  Here is an example:  you have a $7,500 credit card balance on one card, $9,000 on another and $1,000 balance on a personal loan.  With this method, you would pay the minimum amount due each month on the $1,000 loan and the $7,500 credit card.  You would pay as much as you can (more than the minimum due) on the $9,000 credit card to pay this off faster.  Once this is paid off, you would move to the next largest balance and so on.

Debt consolidation is another option:  You would apply for an unsecured loan and consolidate all your debt into one loan and have one monthly payment to deal with.  Depending on what type of debt you are consolidating, you may have a lower interest rate. Typically, this would be lower than credit card rates, but may be higher than student loan debt.   You would need to compare terms and costs to see if this method is right for you.

A Balance Transfer can be an option:  With either your current credit card or opening a new one, you can transfer your debt to this credit card with zero percent interest for a fixed term.  A few cautionary notes: look at what fees might be involved for your situation.  Also, if you chose this option on a credit card that you have a balance on, your payments will be applied to the highest interest balance first.  Meaning you are not paying down the zero percent balance until the higher interest rate balance is paid.  This might take longer than the zero percent offer is good for.  If you do this, plan your payments wisely.  Take the balance and divide it by the number of payments during the zero payment term.  This is the amount you will be nee to be able to pay every month to pay this balance off.  If you fail to payoff the balance during the zero interest period, you will owe the remining balance with the new interest rate back from the date of the transfer.

Next issue, we will discuss other options that are available, that you will need to think about before moving forward.  Remember that debt is your financial enemy, so make a plan to tackle your debt now rather than later.

You will need to check with the appropriate professionals to discuss the pluses and minuses of each option before you make a choice.

2020 A Year For The Records Books – Part 2

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This is part 2 of 2020 A Year For the Record Books – click the link to read part 1.

We must learn to adapt our finances to changing times.If you live in the tri-state areas, we had a hurricane Esaias.  Many people had damage to their homes / property and lost power for days.  Having to replace all the food in your fridge and freezer is a huge expense, that you probably weren’t expecting.  Look into reimbursement from your renter’s / homeowner’s insurance (and possibly the power company) to ease your budget.

Spending more than you have. With more time at home and less going out, did you find yourself spending more online than your budget allows?  Just because something is a good deal, doesn’t mean you need to purchase it.  As they say, you don’t need to keep you with the Jones’s.

Credit card debt.  You know that debt is the enemy of your budget, so carry a balance month to month on your credit card in not good. Yes, I know that right now creditors are working with you if you are having trouble payment your debt.   But think long term, what is it costing you?  Make a plan to payoff your debt in full each and every month, so this won’t be an issue with your finances.

With the holidays just around the corner, that will be another big expense for many.  Think about what your plans are and how they may need to be adapted to fit your finances.  Another words, don’t overdue it.  Now is the time to make a plan and stick to it.

Now that I have shared with you some of the ways you might be accumulating debt, what are you planning on doing (or have done) to stop debt from accumulating?

Third Credit Report Reminder From Jill Russo Foster

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It’s September – Get ready for the holidays!  For this month use TransUnion for your credit report.

Hello, it’s Jill again, reminding you to get your finances in order before you start spending for the holidays.

Order your credit report from www.AnnualCreditReport.com. This is the ONLY authorized source for the no cost 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 TransUnion.

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.

Were you hoping to get your credit score instead? Try CreditKarma.com. CreditKarma does not supply a FICO score, but it does provide scores from TransUnion and VantageScore. And, there’s no charge for you. CreditKarma funds their service through website advertising.

Wishing you the best for the school year and the coming holiday season!

2020 A Year For The Records Books – Part 1

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2020 has been a year unlike any other – from job loss / furloughs to pandemics to hurricanes.  All of this has signaled changes in our lives, not only in what we do (or don’t do), how we live and how it affects our finances.  We must learn to adapt our finances to changing times.

For many this is a year that you started (or continue) to accumulate debt.  Not a good thing!

Let’s first talk about all the ways that you may be accumulating debt:

Not having an emergency fund.  You have heard me preach over the years about having a savings account for life’s what ifs.  This was the year that many of us needed to fall back on our emergency savings as jobs were lost / furloughed and the unemployment system was overwhelmed, and payment were delayed.  Your emergency savings was the way to get you through in these uncertain times.

Adapting to change (the new normal). As your life changes, so should your finances.  Meaning that if you have job loss / less income coming in, you need to tighten your belt and cutback on your expenses.  Answer these two questions.  Think what can I get for free that I have been paying for?  Think what can I reduce or eliminate in my monthly expenses?  Want more information, check out my past newsletter, Budgeting By The Numbers.

Eating out / take out.  Food is one of the biggest expenses in a family’s budget.  Typically, when I coach a family, it the food that is an issue with their spending.  How much is it costing you to eat out, pick up take out, grab a beverage versus bringing and cooking at home?  Track this and see where your family stands.

Reimbursable costs.  In these uncertain times, you may have more medical than other years.  Make sure to utilize all your options such as FSA and HSA accounts, in network providers, etc.  I was speaking with someone who hadn’t submitted any expenses to her FSA account.  She potentially could be leaving a lot of money on the table by not timely submitting her expenses for reimbursement.  

Check out next week’s newsletter for part 2.