Tips for Successful Personal Finances
We celebrated Thanksgiving with family early this year. Here’s our family photo. We are so thankful for each and every one of them!
Here’s my Thanksgiving video greeting to you. Be sure to watch through to the end, if you’ve been struggling with carving that big roast turkey every year!
Stay safe and have a happy holiday!
When you get a robocall, should you…
Although “C” was tempting, I used to do “B” thinking that it was the most logical way to get the calls to stop. But the calls actually increased! How could that be?
It’s because some of these calls are from fraudulent companies who have no interest in following FTC regulations.
Like many of you, we’re on the Do Not Call Registry. (If you’re not, do this today at DoNotCall.gov.) It stops most unsolicited calls. The calls we do receive are from scammers like “Rachel from cardholder services” and the new “Life Alert” phishing scam.
While it does help to report these calls to DoNotCall.gov, you should know that some originate from outside the US, which makes it difficult for the FTC to prosecute them. It doesn’t help to try to remove your number from their call lists, because they don’t actually have a list. They’re just dialing random numbers hoping to get a live line. In fact, any interaction on your part could actually put you on a call list!
If you want to keep track of calls that violate FTC regulations, you can put in a formal complaint on the Do Not Call website or by calling 888-382-1222. We’ve started to do this. In fact, I did this yesterday as I received a robocall on my cell phone – which is against FTC regulations in every state no matter the circumstances.
Calls you shouldn’t report to DoNotCall.gov
Unless they’ve called your cell phone, it’s perfectly legal for companies to call you for these purposes. If you report them, you’re just wasting the FTC’s time, which is unfortunate around election time and the holidays.
While doing the research for this post, I came across some interesting tips for stopping the calls. Some people are suggesting starting your voicemail message with the three tones you hear when you call a disconnected number. Do you think the robocallers have programmed their systems to ignore disconnected phone numbers? I’m not so sure, but it’s a fun idea.
Let me know what you are doing to eliminate unwanted phone calls from your life.
The gift-giving holidays are around the corner. If you don’t believe me, go buy some Halloween supplies. You’ll have to walk around Christmas decorations to get to the costume aisle. My warehouse club had Christmas decorations on Labor Day weekend. That’s way too early, even for me.
Depending on which holiday you celebrate, you have about a month for Chanukah and about two months before Christmas. Where does the time go? It seems that we were just talking about planning your summer vacations.
Don’t panic. You still have time to tackle your to-do list so you can stay within your budget.
Here are my suggestions to keep the holidays bright on a budget:
1. Make a list. Write down all the names of the all people you want to give gifts to. This includes family, friends, coworkers, teachers, service people (baby sitters, hair dressers, delivery people, etc.). Then, don’t forget the additional expenses that happen at the holidays: special entertainment events, parties, and travel.
2. Set your budget limit. This is how much you can afford to spend without having credit card debit in January.
3. Put dollar amounts next to each person and event on your list. Don’t forget to include shipping and travel costs. Also, add in the hostess gifts and food for the events you participate in. Those should be part of the budget, too.
4. Compare your budget limit and your list. How is that working? Do you have more people than your budget allows? If so, go back and make adjustments. You don’t have to leave people out – think of fun alternatives, instead. Can you do a family gift, a gift-less potluck, or a name-draw gift exchange? You want to be able to afford the holidays and enjoy them. You do NOT want to spend more than you can afford. There’s nothing worse than greeting the New Year with January credit card debt.
5. Start shopping. Comparison shopping is by far the best way to shop. Know what you want to buy, do your research and don’t stray from your list. Compare retail and online for the best deal, but, don’t forget the after-sale deals. You should watch for rebates and make sure the store will give you a refund if you purchase something before it goes on sale (within a reasonable time period). Keep those receipts handy.
6. Buy hot items early. These are gifts that are guaranteed to go out-of-stock because every child (and some adults) think they have to have it. It might be a video game or console, or a new kind of toy. Whatever it is, if it’s important to your gift plans, don’t wait.
Remember that planning ahead and taking your time will help your stress level. Pace yourself, and follow your list, so you can relax and enjoy your special time with family and friends.
Have I ever had credit card debt? Yes! There have been times in my life when I haven’t been able pay my balance in full when the bill arrives.
Credit card debt is the enemy of a good budget, but life happens. Even the best budgeter can have unplanned expenses.
According to a recent study by Trans Union, the average US adult carries $4,878 in credit card debt. That doesn’t include zero percent balances. That means the average US adult owes almost $5,000 plus the additional interest.
If this is you, I want you to take a deep breath. Debt repayment is just financial housework. There’s nothing to be afraid of here.
Do you know what’s really scary? Having company due in 5 minutes when the bathrooms aren’t clean. When that happens, do you lock the front door and pretend you’re not home? No! You walk into the bathroom and decide which part needs to be cleaned first (just in case you run out of time before the doorbell rings).
That’s right. I just compared paying off credit card debt to scrubbing the toilet. 
That’s because you want to use the same thought process with your credit cards. Some cards will need more attention than others, so you need to make a list of your debts which includes the interest rate and minimum payment amounts.
There are two methods to setting priorities on your credit cards.
Option 1: Pay the highest interest rate first. Your list will look something like this:
| Priority | Interest Rate |
Minimum Payment |
Current Balance |
| Card #1 | 19% | $100 | $5,025 |
| Card #2 | 15% | $47 | $2,141 |
| Card #3 | 11% | $177 | $9,056 |
This is the best option if you want to save money. Using the example above, you pay as much as your budget will allow on card #1, and only the minimum on cards #2 and #3. When #1 is paid off, you make card #2 the highest priority. Rinse and repeat until all cards are paid in full. When you pay the highest interest rate first, you pay less overall.
Option 2. Pay the smallest debt first. Your list will look something like this.
| Priority | Interest Rate |
Minimum Payment |
Current Balance |
| Card #1 | 15% | $47 | $2,141 |
| Card #2 | 19% | $100 | $5,025 |
| Card #3 | 11% | $177 | $9,056 |
This option is good if you need to see results to stay motivated. Receiving a bill with $0 due is really satisfying. A positive emotional boost can really keep the momentum going. You can compare it to housework, dieting, or exercise. We like to see improvements.
Bottom line: You have chosen to get out of debt (your goal) and the actions that will get you there (your plan). You’ll know the best option for you and your family, and you can change tactics whenever you want as long as you’re moving forward.
Let us know which option you choose and how you are doing.
Does this ever happen to you? You go to the grocery store to buy a few recipe ingredients. After walking the aisles, you find yourself at the checkout with 2 full bags of groceries and a receipt for $60-$90.
Here are some tips to prevent grocery store overspending. The most important (and easiest) fixes are on top.
1. Use cash! This is the most important and the easiest rule to follow. In the example above, if you’d only brought $10 in cash to the store, you would have walked out with just the butter, eggs and cinnamon you needed for your baking project. You cannot spend more cash than you bring with you – as long as you leave your credit and debit cards at home. (I do this myself)
2. Don’t shop when you’re hungry! This is also an easy rule to follow. If you shop hungry, your body will tell you that everything you see is delicious and that you must buy it right away. In fact, you’ll think it’s a good idea to get 2 or 3 packages of all kinds of foods you’ll regret buying later.
3. Compare prices in store. As long as you’re standing there, it’s not too hard to try to choose the best price on a can of tuna or package of grated cheese. Store brands are usually the best deal, but if they want you to buy 2 to get the sales price, the brand name could be a better deal.
4. Plan your meals and shop from your list. This is a little harder because it means you have to plan before going to the store. Once you have your meal plan, check your cupboards and fridge to see if you already have any of the recipe ingredients. This prevents you from buying something you already have at home.
5. Rewards cards. You have to plan to get the best use out of them, but when you do, you can save substantial cash. They give you discounts and coupons, but you won’t get the same discounts on the same items every week. You’ll need to be on top of what’s in your cupboards, be careful to buy only the items you’ll actually use, and sometimes you’ll have to wait on a purchase until the discount cycles around again.
Make your trip to the grocery store less costly the next time you shop. What do you do to save money in the grocery store? Tell us in the comments below.
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 9th 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.
In the last edition of my newsletter, you heard about our amazing trip and how we were able to pay for almost everything with points and some smart pre-planning. (You’ll see photos today).
Now, you will hear what didn’t work. This was big lesson for me.
To stay on budget, we used mainly cash. We even bought foreign currency before leaving home. We were able to purchase Crown, Kroner, Euro and Rubles at our local exchange in Connecticut.
But we knew we would want to use credit occasionally, so we called our credit and debit card companies to let them know where we’d be travelling and on what dates (as I’ve told you to do many times).
Imagine our surprise when our cards were declined in Copenhagen. We had dinner with friends and asked the restaurant split the bill between us – half on their card and half on ours. Ours was declined. We knew it wasn’t the machine because they processed our friends’ card first. We could see that theirs worked because the staff at the restaurant actually processes the credit card at your table using a portable machine.
We wondered if it was because we were using our US debit card with a pin. So we ask them to do it again as a credit card. It still didn’t work. The staff said that a lot of US credit cards are declined for some reason.
And, it wasn’t just the restaurant. We tried using the credit card when we checked out of the hotel. Again, declined! It was very embarrassing.
When we returned, I called the credit card company to ask why they wouldn’t accept our transactions. After a lengthy conversation, and several people, they realized that they couldn’t see any of the attempted transactions in their system. Fortunately, I kept the receipt as proof, but even with the evidence right in front of them, they still couldn’t give me an answer.
The mystery continues. Thank goodness for our American Express card. It saved the day.
Remember, no matter how prepared you are. Things can go wrong. Make sure you have a back-up plan when you travel.
Update: A big thanks to Heidi for giving us an explanation! Apparently, their credit card machines are programmed to accept cards originating from countries in the European Union – and nowhere else. I guess that makes things easier for Denmark, but not for tourists! Read her full comment below.
It’s September – Get ready for the holidays! This month use TransUnion
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:
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It doesn’t matter how you get your report, the most important thing is that you do! Then…
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Wishing you the best for the school year and the coming holiday season!
P.S. I’ll give you another reminder in January so you can get a great start on the New Year.
We just returned from an amazing trip to Northern Europe and, surprise, surprise – it didn’t break our bank account. How did we do it?
Transferable frequent flier miles
When we fly, we usually use one airline so our frequent flier miles are easy to use. But, our first destination was Copenhagen and our favorite airline doesn’t fly to Denmark. Lucky for us, the airline was in the One World Alliance so we were able to transfer our miles to another airline to receive free flights – we only paid the taxes.
We earned extra miles just by eating out and shopping
Our airline has a dinning program so you can eat out at participating restaurants to earn miles. The program is free. You just need to register your credit or debit cards. The shopping program works great for us. When we shop online, we start at their shopping website. Then use their links to access popular retailers. Between flying, eating out, and ordering online our frequent flier miles really add up.
We used our hotel points
Our flight got us in to Copenhagen a day early, so we had time to explore and meet up with a good friend. We stayed at a hotel and our lodging points covered the cost of both nights. Even better, we used extra points to upgrade to a room with access to a hospitality suite that served breakfast and late afternoon snacks.
We used timeshare points for the cruise
As some of you know, we like to take cruises. So, when we found a cruise that visited the Baltic regions of Northern Europe, we were really excited. Neither of us had been, so it was a first. We were so happy to find that we could trade our timeshare points for the cruise. All we paid were the taxes and port fees. We sailed to Tallinn, Estonia; St Petersburg, Russia; Helsinki, Finland and Stockholm, Sweden.
Yes, it took a lot of coordination and advanced planning…
But, our travel, lodging and cruise were covered – we only paid taxes (which were minimal). Of course we spent money for some of our food, entrance fees to museums, the tours themselves and souvenirs. But we saved money by walking, taking public transport, or tour transports where the only cost was the tip for the guide.
So, that’s my experience and my expert advice. You can travel without killing your budget!
That’s several more countries checked off our bucket list. Where would you like to go?
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.