Jill Russo Foster

Credit Report Reminder from Jill Russo Foster: Get ready for holiday spending

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:

Select your state, then click Request Report.
Fill out your information, then click Continue.
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!

P.S. I’ll give you another reminder in January so you can get a great start on the New Year.

Lessons in Cheap Travel from an Expert: Me!

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?

Why Financial Envy is a Waste of Time (Update)

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.

Fair Weather Insurance is Useless in a Storm

Ugh, weather, am I right? It’s been strange in my corner of Connecticut – too cold, too hot, too snowy, and too stormy. Is it just me, or did the weather used to be mild and predictable in this state?

Spring and summer 2013 brought us wildly swinging temps and record-breaking rains. In the past few years we’ve endured major devastation from hurricanes, multiple snow storms, and tornadoes. And that’s just our corner of the world. It’s been tough all over.

You know you should have insurance to cover these disasters, don’t you? Contact your insurance company regularly to see if your most recent purchases and improvements are on your policy.

Once you have the right coverage, make sure you can prove that you actually had stuff that was worth an insurance claim. It’s not enough to say “I had a big screen TV. It was right there before the hurricane took down the north wall.”

You should have…

Photos or videos of valuable belongings with multiple views. Do front, side, and back with close-ups of identifying words or numbers like serial numbers, make, model and even the artist’s signature on artwork.

Original receipts with scanned copies for safekeeping. Try to keep proof of the date purchased, the store or website, and serial numbers if applicable.

Appraisals for valuable items such as artwork, jewelry, collectibles, and home improvements.

If you’re not sure, ask your insurance company to tell you how they want you to document your stuff.

Don’t think you’re safe just because you have homeowner’s insurance. Basic policies are the least expensive option because they don’t cover high risk items or types of damage. Are you covered for floods or tornadoes? Is your fence, pool, or home addition covered?

Be prepared to purchase additional coverage if the excluded items are valuable to you. And update your policy annually as new items are purchased and old items are removed.

Keep your proof of ownership in a safe place! And keep it in more than one place!

Sure, keep a copy at home or on your computer. But nature will laugh at your flimsy paper and fragile hardware. They’re no match for a flood, fire or tornado.

Keep a copy off site (safe deposit boxes, clouds, the insurance company itself, etc.) Being prepared will save you countless wasted and tearful phone calls with your insurance agent if disaster strikes.

Creative Ways to Get Paid

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Have you reduced your expenses to the bone, yet it’s still not enough? Maybe you just need to make more money? Ha ha. Who am I kidding, right? You can’t commit to a second job with your responsibilities and it’s not like you can ask for a raise in this economy. Hear me out, because you don’t have to get a part time job to pad your budget

Here are some ideas that might help your cash flow:

Sell things you don’t need or want online. I’ve used CraigsList.org to sell lots of things – everything from toothbrush heads to a car! Use EBay.com for collectibles. Newspaper ads really cut into the cost of selling things you don’t need, but the internet has made it profitable.

Hold a tag, garage or yard sale. You can go it alone or talk your neighbors into holding a block sale – that way you can share the cost of advertising. If you live in an apartment or condo, or simply don’t want strangers coming to your home, see if your town hosts a yearly “flea market”. To sell at our town’s flea market, you just have to pay a fee for the space. It’s a big popular event and attracts paying customers. If you have quality items, you’ll make your fee back, and pull in a good profit.

Try a consignment shop if your items are valuable. If you’ve got something that’s very gently used and still has value, this is the way to go. I have personally consigned clothing, and other small merchandise, and have been happy with the fair price received for my treasured items.

Have a great skill, or ready hands, but can’t commit to a second job? Check out TaskRabbit.com. This website connects people who need things done with those who are willing to do them. A woman I know grew up working a big yard and garden with her mother. All that drudgery paid off. Now she rents herself out for a day on weekends planting gardens. It’s the kind of second job that she can fit in her schedule because she only takes the extra work when it’s convenient. The plus side? She enjoys getting paid to spend time outside doing something she’s good at. As with anything do you research before moving forward.

Would you like to rent out space in your home? Airbnb.com “connects people who have space to spare with those who are looking for a place to stay.” The name means “Air Bed and Breakfast” but you don’t have to convert your home into a permanent hotel to make money. The upside for travelers is an authentic stay in a real neighborhood. It’s also great for business people looking to relocate because they want to get to know a neighborhood before they commit. There are restrictions to being a host. You’ll need to check the website to see if you qualify. As with anything do you research before letting someone in your home.

Take a survey or participate in a focus group. I’ve done it. Marketing companies actually gave me money to give them my opinion. I like that!

Odd jobs can make you extra cash. I’ve paid people cash to help with a tag sale, move furniture, haul things for me in their truck, walk the dog, pet sit, and run errands. What can you offer? Get your name out there as an odd-job doer. Like with TaskRabbit, you can accept work on your terms and turn it down when you don’t want it.

As with anything, watch for scams and try to stay with legitimate companies. Do your research before, and choose accordingly, based on your situation and needs.

How do you get extra money when you need some? Let me know.

Save Money with Simple Habits

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You know how to spend less on your purchases – shop sales, use coupons, buy used, or trade with a friend. But you don’t want to, because you’ve found that it takes a lot of work and your time is valuable. I complete agree – that’s why I keep it simple.

I am not someone who buys things just because the price has been reduced. I don’t spend hours cutting coupons or scouring sales fliers. I only buy what I need, and I only check for sales and coupons in the Sunday paper.

But, I have found that simple habits have made a big difference in our expenses.

My toothpaste habit: When we need to buy toothpaste, we always look for a sale at the local grocery or drug store. Typically, we can find a standard size tube of brand name toothpaste for 99 cents on sale. Then I check the Sunday coupons and usually find a 35¢ off coupon that the store will double (if it’s the grocery store). When I’m lucky, I only pay 29¢ for toothpaste – compare that to the normal $3-4 dollar price! It’s so easy. I know what I’m looking for, where to find it and it’s there when I need it.

My hairstyling habit: I used to get my hair cut locally, but my friend was shocked at the price I was paying. She suggested I go out of town to a less expensive area to get my hair done. That alone saved me 50% of the cost. But I didn’t let it stop there. I stopped getting my hair colored at the salon, (more money saved) and then I did some research and looked at beauty schools. I can get my hair cut at a school for about $25 including tip. Yes, they’re students, but I trust them because they’re working under the eyes of a professional. In addition, I try started waiting longer between appointments. I now try for quarterly instead of every 8 weeks (4x per year instead of 6). I went from spending $1,400 a year on my hair to $100 – not bad! And I love the way my hair looks.

My library habit: I love my library! Libraries aren’t just for books. You can borrow the whole season of a popular TV show on DVDs, borrow a music CD, audio books (DVD or mp3) and books (paper or for your device). All free. We log onto the library website to research what they have and place holds (saves us time and gas). Our library has free classes, speaking events, and now it offers free passes to local tourist spots. You can borrow a pass to go to the museum for free (or discounted). I can’t say enough good things about libraries. They’re the cornerstone for reducing entertainment expenses.

My friend habit: Our friends traveled to same vacation spot that we’re visiting this summer. They were nice enough to loan us their travel books and brochures so we can benefit from their experience. Then, a friend introduced me to someone who is actually from one of the countries we are going to. She shared her “must see and do” list with us and loaned us a DVD to watch. These are perfect examples of borrowing from friends.

I wasn’t always like this. I used to overspend. I’m good with my money, but I didn’t wake up one morning as a savings convert, going full throttle after deals like a fiscal zealot. It’s all the little steps that add up to big savings. And, I add new steps when I find that they’re convenient and fit into my routine.

If this is something that interests you, you’ll need to think outside the box. Find the little savings habits that are right for you. If you can’t think of anything new to reduce, recycle or reuse to lower your expenses (and reduce your clutter), then do a little internet research or try one of one of my favorite frugality books: Amy Dacyczan’s The Complete Tightwad Gazette or Judith Levine’s Not Buying It: My Year Without Shopping. If you haven’t read Amy’s book, it’s a quick read with tons of tips Judith’s is more of a journal of her year, chronicling what she did and didn’t do.

These are just a few examples of how little habits can make a big difference. I could go on and on.

And if that isn’t enough, in the next newsletter I will discuss increasing your income.

Social Security: When and How Much?

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You may not be thinking about Social Security for yourself yet, but if you, or someone you know, has reached age 50 or beyond, there are some things that you might want to consider before making your choices.

When can you receive your full social security benefits?

It used to be that everyone was eligible at age 65. Now, anyone born between 1938-1959 has to use the Social Security retirement age chart to find their exact retirement age. Why? Because in the early 1980’s they decided to increase the age to 67 but didn’t want to hold out on those close to retirement. Instead, they gradually increased the retirement age by tacking on an extra 2 months for each year by birth year.

Based on our birth years, my husband Dave can retire at age 66, but I need to wait until I’m 66 and 10 months. It finally evens out for those born after 1960 – they’re currently holding at age 67.

Of course, to qualify for Social Security you have to meet the required credits. If you work and pay taxes, you will earn social security credits (typically 4 credits per year worked). You need to work at least 10 years (40 credits) to receive your own retirement benefits. Other types of benefits are available depending on your circumstances.

What happens if you start early and take partial benefits?

During the holidays, a group of us were talking about social security and what age we planned to start taking benefits. The group consensus was to start with partial benefits at age 62. Yes, for some that makes sense, but not for everyone.

Consider this: If you take your benefits before your full retirement age, you’ll receive reduced benefits for life (by as much as 25% less). In addition, if you’re still working and collecting social security, you’ll have income limitations each year.

On the other hand, if you delay your benefits past your full retirement age, your benefits will increase both for delaying and by annual cost of living.

The bottom line: What your family and friends do may not be what is right for you. Our family conversation brought up some interesting questions. We decided to speak with one of our investment advisors to understand what was best for us. He had a novel option that worked really well for our situation. You see, the best choice for us wasn’t to take the benefits at 62… or to wait. When Dave turns 62, we’ll be using that advice to start our golden years in the best way possible.

Do your research and make a plan that is right for you and your family.

P.S. This important advice came courtesy of our readers. Thank you, Betsy!

Jill,

Another bit of information is that a wife can collect on her husband (or visa versa) at age 62 and then collect on themselves at full retirement age and not have the reduced benefits for life.

Betsy Thomas

Save Money with Vinegar and Tomatoes

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I am always asked for money saving tips. I’ve mentioned common tips like eating at (and from) home more often, using cash whenever possible, and buying off-season or used. But, what if you do all of these already, and you still want to save more money?

At a recent speaking event, I decided to share my more creative ideas – things I actually do myself – that might not be so common.

So, here are those two tips:

Produce Garden – yes, you heard me. If you’re a long time reader, you know that I’ve always gardened and feel that there’s nothing better than picking something right off the vine to eat right away. I’m not certified organic, but I don’t use chemicals or questionable practices. Let’s just say that if someone wanted to certify me, I’d be fine.

Even if you don’t have room, or interest in working in a garden, you can grow lettuce. It’s probably the easiest produce to grow and can be grown in a pot pretty much anywhere (even indoors). A pack of seeds costs about $1.50 and can give us (a family of two) lettuce for about 6 weeks. That’s a lot cheaper than buying a head of lettuce each week.

If you don’t eat salads at home, just because you feel bagged lettuce is expensive and doesn’t keep well, this is your solution.

Someone raised an objection about time. Lettuce is not time-consuming or fussy. You’ll need to thin the leaves out during the growing stages, but you’ll be eating it as baby micro lettuce – so it’s not like it’s fussing just because it has to be done.

This year I am trying vertical gardening. My whole garden, once it’s planted, takes me less than 30 minutes a week to maintain, and I have many plants – tomatoes, peppers, zucchini, squash, green beans, peas, a few types of lettuce and herbs. This year I am trying corn, blueberries and butternut squash.

Cleaning Products – make your own – I do! I use vinegar diluted with water in place of glass cleaner. Works great. I use baking soda with water to make a paste to clean the bathroom. These home-made products are completely safe, effective and chemical free and cost pennies.

What I haven’t yet found is a replacement for dishwasher or laundry detergent. Although, I do know that vinegar in the rinse cycle can get rid of excess detergent in your towels and get rid of that moldy smell if your towels have been out by the pool too long.

Ideas for home made cleaning supplies can be found on the internet, but make sure you’re looking at a trusted source for reputable information.

Let me know how you save money.

Maybe my garden photos will inspire you.

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2013-garden-03

Ghosting the deceased: Identity Theft Prevention

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Even after a loved one dies, they’re still not safe from identity theft or more specifically “ghosting.”

It’s reported that $2.5 million deceased Americans become victims of fraud – anything from new credit cards and loan applications to new utilities and cell phone accounts. Just when the family is dealing with their loss, before they’ve even touched the probate issue, they now have to take additional steps to protect their loved ones.

How does it happen?

We give our loved one’s identity to the world on a silver platter. For starters, most of the important identifying information can be found in the obituary.

Full birth name and married name
Mother’s maiden name
Home town
Date of birth
Nearest relatives and their relationships to the deceased
Last place of employment

It’s been reported that thieves take this information and purchase the deceased’s social security number for $10 from the Social Security Office’s Death Master File. With that, they have everything needed to set up new accounts, all while the family is still grieving.

You might be thinking, “Why do I care? It can’t come back on us because the person is dead.” Well, by using your loved one’s information, they can take yours as well. Remember, your name is in the paper too, listing how you’re related to everyone in your family, your probable home town, and your approximate age. At the very least, it will cause the surviving family members stress when new bills arrive at the house along with collection calls.

What can you do about it?

Limit the information listed in the obituary column – in this case less is more

Send copies of death certificates to all three credit reporting agencies, as well as to the banks, investment firms and credit card companies used by the deceased. Ask them to place a “deceased alert” on all accounts – this is especially important if they’re going to stay open until probate is completed.

When closing accounts (including utilities, phone, cable, rental services, etc.), ask them to tag the account as “account closed – holder is deceased.” That way, the account will be flagged as permanently closed. Closing an account may seem final enough, but it’s not. All paid services want you to continue service, so they won’t question a reopen request unless the word “deceased” is on the file.

Report the death to Social Security. If you let it go through normal processes, it can take months – in that time, an identity thief will have set up hundreds of accounts in your loved one’s name.

Cancel the deceased Driver’s License through your state’s Department of Motor Vehicles, so that duplicates will not be issued

Since deceased people don’t check their credit, I would recommend that you request a copy of their credit report from one of the three credit reporting agencies about a month after you’ve taken the above steps – just to double check their account status. Then check again a few months later.

Zip Code Harvesting

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Ever wonder why the cashier asks for your zip code? Maybe you thought they needed it for credit card approval (like a gas station). Maybe you thought they were looking to open a new store closer to the people who actually shop there.

Most of the time, they’re collecting zip codes so they can target you with marketing or to sell your contact information.

When you pay with a credit card, they can keep your full name in their records – add the zip, and they can find your exact address. They’re determining who their customers are, where they come from, what types of products they purchase, etc. They can develop a whole file of information about you with those two pieces of information which they can use themselves or sell to retail partners.

You may have noticed that some retailers will ask for your zip code no matter how you pay. They’ve asked for my zip code when I pay with cash. They might not know my exact address, but they may choose to target my neighborhood with flyers.

You can choose to be a part of this by giving the cashier your zip code – you’ll most likely get more mail and/or coupons. Or, you can decline to give your zip code to the cashier. I am vigilant about my mail (and privacy), so I personally choose not to give out my zip code. The choice is yours to make.

Note – this is not the case with unmanned transactions, such as self-service gas stations. In an unmanned transaction, you may be required to enter your zip code on the key pad to authorize the credit card transaction. In this case, the credit card company itself is attempting to verify your identity. This is NOT zip code harvesting because the gas station isn’t keeping your information.

Remember the choice is yours.