Jill Russo Foster

Tipping – Should You And How Much

Do you ever wonder should you tip this person? Personally, the answer for me is sometimes “yes” and sometimes “no”. For me it depends on the service I receive – was it Thank You! good or exceptional, did someone go out of there way and do something extra?

When I am in a restaurant, yes I tip the server. When I use a car park service, yes I tip the attendant. Also, I tip for personal services – hair cuts, nails, porter at airport and more. The list goes on and on. There are so many to tip in our lives, and even more so now that the holidays are approaching. But who and what do you tip and how much?

And the next question for me is – how much? Cash is always a great option for giving, but may not be the answer for your budget. Other ideas, might be a thank you note, a call to a company to tell them what I great experience you received from someone that works there, a bouquet of flowers, baked goods, etc.

As the holidays approach, here are suggestions from Real Simple Magazine with who and what.

Asking Those Questions

With the holidays fat approaching and family gatherings, now is the time to assess your life.

For those of us in the sandwich generations (parents and kids), you need to think about your aging parents. Are they prepared for what comes next? Are you prepared for what’s next?

Where are some ideas for what you need to know:

What are their finals wishes
Do you know what assets, insurance policies, etc they have and where are those documents?
Do they have all the legal paperwork in place – wills, power of attorney, medical directives, etc

It’s a difficult conversation to have, but it’s extremely helpful to do this ahead of time.

Personally, my father was very forthcoming with this information, so I had it easy. But even then, there was still a life insurance policy he must have forgotten about. I found it through a search of unclaimed funds website for my state. It was probably a policy that he (or his parents) had taken out years before.

I can’t imagine not having this information and knowing where things are. What about you? Do your kids know this information about you?

Take some time to have this important conversation when your family gets together.

What’s In Your Wallet?

As the holidays approach, I want you to have a a happy, healthy and safe holiday season. Spend some time with family, friends doing the things that you like and want to share.

As you are having a great time out and about, I want you to consider this. To coin a phrase, what’s in your wallet? Here are a few things that should NOT be in your wallet for the holidays or other times of the year:

Social Security Card
Passport (carry only when traveling internationally)
Passwords List

The less in your wallet, the better it is for you, if it’s stolen. For more items, AARP’s article 7 Items To Leave Home.

When my purse was stolen, I was fortunate to be able to cancel my credit cards, cell phone etc. The transaction that occurred, took quite a while to have reversed and cleared. Don’t let this happen to you.

Bon Voyage to Your Debt – Part 5

Say Bon Voyage to Your Debt Part 5: Make a Custom Plan

Originally posted August 15, 2014 By Jill Russo Foster

With Step 5, we’re going to get into the hard stuff – the actual debt payoff. If you have kept up with the series of newsletters or the Facebook group, you have completed the following:

You have reflected on the actions, inaction, thought process, or events that got you into debt.
You have “faced the truth” by compiling a complete list of your debt.
You have reflected on ways that you can find more money in your budget or bring in more income.
You have started your emergency savings plan.

With these steps in place, it’s time to create your own custom action plan for paying off the debt.

To start, you need to do some brainstorming.

Sit down with paper and pen (or at your computer) and write down your answers to this question: “What can I do today to lower my debt?” Just write the first 20 ideas that come to mind – you can worry about whether they’re even possible later.

Your list might look like this:

“What can I do today to lower my debt?”

Consolidate my credit card debt into one monthly payment
Apply for a home equity line of credit for debt consolidation
Sell home and downsize
Live frugally and only buy essentials so that I can pay off the debt faster
Stop funding my / our retirement until the debt is paid off
Apply for zero percent balance transfer to pay off debt quicker

Now, put the list away and wait a few days. Stepping back from what might be a difficult choice will help you reevaluate your priorities.

After 2 or 3 days, come back to your list and choose one. There is no right or wrong answer. Remember, you are designing a plan that tailor-made for your individual goals and needs. You have to determine what is best for you and your situation.

Now, go through the process of exploring whether that choice will work for you. You may have to contact a third party like a bank, mortgage broker, real estate agent, etc. You may have to look for zero percent balance transfer offers. You may have to get the whole family on board to see if they can live on a smaller budget. If it all works out, then you can start your plan. If not, go back to your list, choose another option, and explore it thoroughly.

Because you didn’t accumulate your debt overnight, it won’t be going away overnight either. You will make your choice (you can try many choices on the list), and you may need to follow through on it for over a year or for several years.

This whole process is definitely worth your while, because you will gain control over your finances. You will stop working just to pay your creditors, and actually save money as you eliminate the finance charges you’ve been paying.

Yes, I know (and have been there) that these are hard choices to make. But if I can do it so can you.

Bon Voyage to Your Debt – Part 4

Say Bon Voyage to Your Debt Part 4: Prepare for Surprises

Originally Posted August 1, 2014 By Jill Russo Foster

Step four might surprise you.

I want you to start an emergency savings account and your goal is to save an initial $1,000. Yes, you read that right.

Why would I tell you to put money into savings when you’re trying to pay down debt? It’s not like the interest you earn is going to be more than the interest you’re paying, right?

Because, if you don’t have a savings account to fall back on, you’ll be back in debt the next time you’re blindsided by an unexpected repair or medical bill. Life happens. If you don’t have money in the bank, how will you pay for the surprises it brings? With a credit card or a loan? It’s a bad habit, and it’s better to start breaking it now rather than later.

Just like your debt didn’t happen overnight, your emergency savings isn’t going to happen overnight, either.

1. Make a plan to save money from each paycheck.

2. Start small with $5 per week and increase over time.

3. Remember to pay savings first (and automatically) before you pay the bills.

You can put money in savings automatically through your payroll department. If you don’t have a direct deposit service through work, you can set it up with automatic transfers at the bank.

As I said, start small and work your way up. The ideal goal is to put 10% of your income into savings. But first, start with the emergency fund so the little emergencies don’t discourage you from your quest of paying down your debt

Next issue: We will actually start paying off your debt – bet you thought we wouldn’t get to this.

Bon Voyage to Your Debt – Part 3

Say Bon Voyage Part 3: Finding the Money

Originally posted July 18, 2014 By Jill Russo Foster

In step 3 of Say Bon Voyage to Your Debt, we are going to look at ways to find more money.

One way to “find” money is by plugging the leaks in your spending. You’ll take back that wasted cash and put it where it can do some good. To do this, you need to know where your money is going, and that means tracking your spending. For more information on how to do this, see Step 2. We personally do this several times a year, and we are doing this for July along with the group.

You are going to have to make some tough choices by reducing and eliminating expenses. Here are a few common budget leaks to get you thinking:

Bring food and beverages from home versus buying out.

Rent a movie from the library and make homemade popcorn instead spending $20 each at the theater.

Have a potluck dinner with family and friends instead of splitting the cost of a restaurant bill.

Institute a “don’t buy” month (you can buy needs but not “wants”).

Do free activities – in summer there are lots of options. We attend festivals, and concerts and movies in the park.

Reduce your bills by eliminating unneeded services (lawn, cable TV, premium channels, etc.)

Do things yourself versus hiring someone. Some home projects can be tackled with the help of the internet and your hardware store’s advice.

Buy used versus new. About 20 years ago we bought our patio set used for $100 (table for six, including cushioned chairs, chaise lounge, and end table). We are still using this set and have only replaced the cushions. It would have cost ten times the price if we bought it new.

These are just suggestions. Think about your own lifestyle to find reductions that will work for you.

Another way to find money is to make money. You don’t have to get a second job, necessarily. Here are some creative ways to increase your income.

Sell unwanted items for cash. Think tag sale, online sales, free classified ads in a local paper, etc. People love a good deal! We’ve have sold everything from new toothbrush heads to a car online.

Earn some extra cash. There are websites that will help you connect with people who need your skills. Do your research before you commit.

Use your hobbies to earn extra money. Don’t start a business that requires lots of money. Instead, rent out your skills or sell your handiwork. If you’re a gardener, rent yourself as someone who does spring planting or puts the fall plantings to bed. If you’re a scrapbooker, organize other people’s photos. Do you have extra handiwork laying around? Sell it on Etsy.

Rent out extra space. Do you have extra space in your garage or a spare bedroom? Rent them out. Again, do your research and get references.

Now think about what you can do to earn money. You might be surprised at finding an enjoyable second income that works well for you and your family.

For more information and support, join my free private Facebook group “Say Bon Voyage to Your Debt”. We officially started on July 3, but you can still join to get the individual support and worksheets. Sign up here: www.facebook.com/groups/PayOffYourDebt/. To receive a bonus budget tracker, sign up through my newsletter

In our next issue, we will tackle something unexpected.

National Prescription Take Back Day!

Got any unwanted prescriptions lying around your home? Don’t know what to do with them.

You are in luck – Saturday, October 26, 2019 is National Prescription Take Back Day! So gather up those prescriptions and dispose of them safely. Drug Take Back to find a location near you.

Bon Voyage to Your Debt – Part 2

Say Bon Voyage Part 2: Face the Truth

Originally posted July 3, 2014 By Jill Russo Foster

The next step to getting out of debt is to face the truth. Yes it’s scary, but it’s time.

First, gather up your most recent credit card and loan bills. You are going to compile a list of how much debt you have. The statements will give you several key pieces of information that I want you to write down:

Balance Owed

Interest Rate

Minimum Payment

Number of months and/or
years to pay off

Now total the columns.

I know this is a big step, and I want you to congratulate yourself for doing it. Once you know the truth, you can take proactive steps to deal with it.

Now, explore options to pay off your debt as fast as possible. You could…

Pay a higher amount towards the highest interest rate debt while making minimum payments on the other debts. When that’s paid off, move on to the next highest interest rate until you are done.

or…

Pay a higher amount towards the smallest balance first, so it’s paid off quickly. That will give you a sense of accomplishment and keep the momentum going until all debts are paid off.

But is there another way? What if you could…

Find a balance transfer to lower or consolidate your debt? You’d ideally want to find 0% interest for the life of the balance. Yes, you will incur a balance transfer fee (typically 3%), but you will be saving the difference in the interest rate you’re currently paying.

Contact your creditors and ask them to lower your interest rate. You want to do your research first, and be prepared to ask for a supervisor if needed. An interest rate reduction of any kind will save you money and keep the overall balance lower while you pay the debt down.

For more information and support, join my free private Facebook group “Say Bon Voyage to Your Debt”. We officially start on July 3. To get individual support and worksheets, sign up here: www.facebook.com/groups/PayOffYourDebt/. To receive a bonus budget tracker, sign up through my newsletter

In Step 3, we will discuss ways to find money and change your spending habits.

Bon Voyage to Your Debt – Part 1

Say Bon Voyage Part 1: Reflect on What Went Wrong

Originally posted June 20, 2014 By Jill Russo Foster

I wanted to rerun this series of getting rid of debt. At this time of year, we are starting to think about the holidays and for most that means extra spending. Before you start to do your holiday shopping, take a look at your spending and current debt and make a plan to deal with it. This is a 5 part series to get you started.

We all know that debt (and the costs associated with it) is a national problem. In fact, it may be the biggest problem standing between you and a comfortable financial future. Putting a stop to accumulating debt, and dealing with it once and for all, is the answer.

Over the summer, I will be offering ideas to help you start on the path to paying off your debt and keeping it gone.

In my opinion, there are typically 6 steps to paying down your debt. Here is step 1.

Step 1 Getting Started

I want you to take time to reflect, and to determine why you have debt. I believe that once you know what got you into debt, you can make the changes necessary to improve your finances.

Maybe you simply spent too much. Judging by advertising and television, every waitress should be able to afford a home furnished by a mix of Crate & Barrel and Anthropologie. You wouldn’t be the first to want to live the American Dream… before you made it.

But, not all debt comes from overspending. Sometimes it comes from medical bills that accumulate due to illness or uncovered procedures, it could be a death in the family, divorce, a job loss or reduced hours. There are circumstances that can blindside you and throw the best financial plans off track.

The bottom line is that you are spending more today than you earn. You have been living in a “buy now and let my future self pay the debt” universe. But this isn’t a science fiction movie. That future self is you and you’ll be just as unhappy with debt tomorrow as you are today!

I don’t want you to think I am judging you. We all have reasons (or excuses) for the actions we take. If you want to get out debt once and for all, you have to make changes to your thought process and habits in order to see lasting changes.

Right now, I want you reflect on why you’re in debt. Go ahead and tell the whole story. Start from the beginning.

1. When did you first get behind on your bills?

2. What did the money go towards?

3. Do you have habits that make it easier to accumulate debt (and difficult to pay it off)? These might be shopping, eating, decorating, entertaining, recreation or work habits.

4. What needs to happen for you to pay off your debt? (We’ll revisit this question later – this is your first, knee-jerk response.)

5. Why do you still have debt today? List all the reasons. This is just for yourself to read, so feel free to be honest.

In the next issue we’ll begin the hard work, so get ready.

Getting Your Home Ready

Yes, I have to admit it, summer is winding down. While I love my long warm summer beach days here in Connecticut, I do love Fall. The cool crisp nights and the beautiful colors of the turning leaves. On to the part that always comes to my mind, what has to be done as Fall approaches and before the onset of winter to prepare our home.

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. 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.

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.

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, and matches if you want to cook on the barbecue grill.

For more ideas, here’s a helpful list from The Hartford insurance for getting your home ready for winter.

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.