Jill Russo Foster

Identity Theft is on the Rise

It’s up to you to take precautions.

Take these steps to protect your identity:

Beware of solicitations asking for your personal information. They might call, email or text. If you didn’t initiate the communication, don’t give out your information. If they claim to be from customer service, hang up and call the number found on your statement.

Review your bank and credit card statements and question any activity you are unsure of.

Be careful with your paperwork. Take your receipts with you when you make a purchase or use an ATM. When it’s safe to dispose of old receipts, statements, or other paperwork containing your personal information always shred them. Never just throw them away.

Review your credit reports a minimum of three times per year for incorrect information and dispute it.

Keep your home computers up to date with antivirus software. Remember, it can get outdated quickly, so do your updates on a regular basis.

Change your internet passwords regularly. Don’t use easy to guess passwords.

Make sure you pick up your incoming mail as soon as possible and never use your home mailbox for outgoing mail. Always bring it to the post office or a mailbox.

None of these precautions will help you if someone has stolen your information from the database of a company you deal with. But, if you are vigilant about your identity, you can catch any fraudulent activity early on.

Prepare for Summer Storms

We’ve already had extensive damage from severe storms on the East Coast and across the Midwest. These storms caused power outages that lasted for days in the middle of a record-breaking heat wave and cancelled 4th of July celebrations.

Be Prepared for a Power Outage

A big storm can knock your power out for days. And, you really don’t want to be shopping for supplies during or after the storm when everyone else is trying to buy the same emergency supply items.

Make a list and stock up on a sunny day with no storms in sight. Here are some suggestions:

Keep extra batteries for your flashlight and radio
Have propane or charcoal for your grill so you can cook outside if needed
Fill up your gas tank before the storm (gas stations need power to pump gas)
Keep some cash on hand (Banks / ATM need power too)
Turn up the temperature on your refrigerator and freezer when a storm is predicted (remember to turn them back down after the storm)

Most importantly, be prepared to live without the modern conveniences that we have all gotten used to. You won’t have small appliances to heat up frozen meals or electricity for news and entertainment.

Be Prepared to Evacuate

Evacuation isn’t just for hurricanes. You should arrange a place to stay in case you have to leave during the storm. Think of conditions that could make your home unsafe, like flooding, fallen power lines, or structural damage from wind and falling trees. You’ll need to stay someplace close so you can get to work and manage repairs. If your closest relative lives 200 miles away that won’t be much help, and the closest undamaged hotels will be booked quickly.

Be prepared. It will make it easier for you to ride out the storm.

Beware of Summer “Deals”

Now that summer is here do you find yourself shopping more? It’s the long days and great weather. You feel more energized, more optimistic, and more willing to go somewhere and spend money.

Retailers are counting on your great mood to maximize their bottom lines. They’re using sales to get you into the store and tricks of the trade to get you to buy more products than you had planned.

Let’s look at the grocery store.

You walk in to buy milk and bread, and you walk out with two full bags, having spent way more than you planned.

How did that happen? Let’s look at a common marketing scheme. Most grocery stores have products they call loss leaders. These are often common staples, like milk or bread. They know these bring you into the store, so they’re willing to take a loss knowing that you’ll buy something else that will make up the difference. How can they be so sure? Product placement is a science and could be an article in itself. Just know that you’ll be tempted to open your wallet.

Here’s another common marketing scheme. Most flyers and sales offer a better price for multiple quantities – you were only going to buy one, but then you saw the sticker offering 50% off the second item, so you bought two. Some grocery stores offer mix and match sales, like 10 for $10 deals in the snacks, frozen food, or canned aisles. The store is obviously trying to get you to buy more than you intended, and because these deals are almost always on foods that will keep, you may feel that it doesn’t hurt to stock up. Does it work for the store? Yes, most people can’t pass up this type of deal.

What can you do about it? You can go to that grocery store, just buy the specific products you need, and leave.

Let’s look at other stores.

“Store Credit” is another trick to get you to spend money. At checkout, you may be offered an additional discount if you use store credit or even free financing for a specific period. They aren’t dong you any favors. They are counting on you having to make multiple payments with interest.

Furniture is a great example of free financing (no payment until 2015). You may be thinking you need a new bed, but with this offer you end up buying the bed with matching night stands and dressers because you have years to pay it off. Of course, the store is betting against you. They don’t believe you’ll actually pay it off on time, then they’ll collect interest going back to the date of purchase.

Let’s go back and take closer look at product placement. It’s not just for grocery stores. It’s no surprise that impulse items are always next to the register. These are small items that are usually reasonable in cost. While you are waiting in line, you find yourself putting one (or more) into your cart. Maybe it’s the magazine you started to read while you waited, or maybe they have your favorite flavor of gum. These little items add up, leading you to spend more than you intended.

Bottom line: Shop with a plan or list and stick to it. Don’t be tempted by multiple-item deals and bright displays. One way to stick to your list is to shop with cash. You can’t spend what you don’t bring with you.

Before you head out for your summer vacation…

Take these precautions so you can enjoy a safe and worry-free trip.

Call your credit card companies to let them know where you will be. Your credit card company will know it’s you making the charges and will let them go through.

Put a hold on postal mail, newspapers, and any other regular deliveries before you go. You don’t want mail piling up advertising a vacant house.

Clean out your wallet. Remove all items that will not be necessary (that includes your checkbook). Carry two credit cards, and if you are traveling with someone, have different credit cards in case one wallet is stolen.

If you need to use an ATM, use one at a bank (preferably in a lobby). They are less likely to be tampered with.

Be careful when using hotel computers and Wi-Fi networks. Do not access your financial accounts as identity theft can be right around the corner.

Beware of fake calls from the “front desk”. If you receive a call from the hotel front desk telling you your credit card didn’t go through, it could be a scam. Thank the caller, and then go to the front desk in person to straighten this out. Never give your personal information over the phone to someone who calls you.

Taking a few precautions before, and during, your vacation may save you from financial troubles when you get back.

Airline Tip: Fly Smart with Fewer Fees

If you’re a long-time reader of Quick Tips, you know that we like to travel. We’ve become expert at getting the most out of our vacations while keeping our travel costs low. In the last few years, the airlines have been adding so many fees… they kind of remind me of the banking industry.

But, there ARE ways to avoid or reduce those airline fees! Let me help you.

When I first started to travel, you paid for your airfare and all the little perks were included – checked luggage, beverage and a meal, the seat of your choice, and a movie. Those were the good old days.

Now back to today’s reality. All those little extras come with fees that can make even the most reasonable airfare seem expensive.

Baggage Fees

There is a real advantage to traveling light. Don’t over-pack. Choose clothing that you can mix and match. I personally pick three color themes for the trip so that all my clothes can be interchanged. Because I pack fewer clothes, I can bring my luggage as a carry-on to avoid the baggage fees and save time at the airport. If you try this, just remember to pack 3 ounces or less of toiletries because you won’t be checking your luggage.

Airline Food

If healthy eating is as important to you as your wallet, you will bring your food with you. Buying food on the plane, or in the airport, can be unhealthy and expensive. Pack what you like to eat, and you will be all set. Remember to bring an EMPTY water bottle. That can go through security, and you can refill before boarding the plane. Or, just purchase a beverage after the security check point.

In-flight Entertainment

Entertainment can be costly on the plane, but you can avoid it. Are you carrying your own electronics on the flight? If so, you can save money. Most mp3 player ear buds will work to watch the movie – you don’t need to rent or buy headphones from the airlines. Maybe you’d rather watch your own entertainment – bring it with you. While you can’t use Wi-Fi for free, you can watch what you already have downloaded to your laptop or tablet. This will save you even more money.

Choosing Your Airline (and your seating arrangement)

When you book your flight, there are so many options to choose from and all at a cost to you. Where do you want to sit? When do you want to board? All of your choices can cost money. Only you can decide if being one of the first to board the plane, and sitting up front, are worth the added fees. Personally, we fly one airline (and its partners), so we have frequent-flyer status with the airline, and get some seating benefits without paying additional fees.

If you’re a frequent flyer, you can do this too. If you’re not, you can participate with a credit card rewards program that can offer some of these perks without the fee. Beware: the types of credit cards that offer travel perks are usually the kinds that have an annual fee and/or a higher interest rate.

Look closely at how you travel, and consciously choose the perks you want to pay for.

Do you like to travel? How do you avoid added airline fees? Join the discussion.

Spring Cleaning with the Town’s Help

In our house, Spring is a time for cleanup. We start indoors and then finish outside. This year was different for us. The weather was warmer sooner, so the outdoors was tackled first. We groomed overgrown plants and shrubs, trimmed trees, weeded and mulched the flower beds, and more. Now it feels like it’s time to enjoy the year with family and friends.

Not quite…

Because Spring came early, our annual ritual was thrown off. We skipped the indoor clutter cleaning. Now we’re left with random deadlines that we are trying to follow.

For example:

There was our town’s Sneaker Recycling Day…

…That happened to be the same day as our town’s Paper Shredding Day.

We have an old/unused/outdated medication drop-off (to help us clean out our medicine cabinets without poisoning the ground or groundwater).

And then there was Hazardous Waste Day. We got rid of the last of the chemicals! We’re making great strides towards using all natural products.

That’s in our town. Does your town have programs to help you set clutter-clearing goals?

We are still left with many indoor projects that don’t coincide with a specific date, and those can get pushed off. Little by little, they will get done. We have been tackling scanning and tossing paperwork. No matter how hard we try, paper builds up.

To help you get your life simplified, check out the resources page on our website. We’ve added some new links to help you get rid of that extra stuff.

One resource we mention is Craigslist.org. We used Craigslist to give away an old TV. Just because we didn’t need it, didn’t mean that someone else couldn’t make good use of it. It’s better than having it go to a landfill.

If you try one of the resources on our list, or use another one we haven’t listed, let us know. I love hearing success stories and learning about new resources for getting rid of unwanted items.

Clean out your wallet before you take a vacation

While you’re packing your suitcase, don’t forget to properly pack your wallet. You want to bring only those items necessary for your trip.

This is one of those little tasks many people forget before leaving home on a vacation, a long weekend, or any other trip.

For example, you might want to carry only one or two credit cards. If you’re traveling with a spouse, don’t carry the same credit cards. If one of you loses his wallet and has to cancel the VISA card, you could still have your MasterCard or American Express.

What about the cards you leave at home? They should be locked up in a safe place (not left in a drawer). It’s impossible to keep your travels secret. The wrong people might know that your house will be empty for the next week.

But, back to your missing wallet. How did that happen? Did you forget it somewhere, or did you leave it unattended in the wrong place?

You may feel paranoid about leaving your wallet back at the hotel, but it’s much worse to keep your valuables in a beach bag while you’re in the water. Most hotels have safes which allow you to lock up you valuables before you head to the beach.

What if you’re just at the beach for the day? Leaving your wallet in the car is not a great choice, either. Parking lots near tourist destinations are popular targets. If you have to leave it in the car, keep it in a not-so-obvious place so it’s not easy to find in a smash-and-grab.

Taking a few simple steps to protect your wallet, and your identity, ahead of time can save your vacation, and hours of your valuable time. You don’t want to have to clean up an identity-theft mess after your vacation.

When you co-sign, you’re responsible for payments

When you co-sign a friend’s loan, you are taking out a loan. Yes, you read that right!

You are agreeing to make the payments if the borrower does not. But, the borrower is your friend and he would never do that to you, right…?

… Maybe. Not on purpose, but if he’s not very good with money, or has money troubles, it could “just happen.”

A lender only asks for a co-signer if the borrower isn’t creditworthy on his own. The lender could have good reason if your friend has a poor credit history, or doesn’t make enough money for a loan of that size. Or, it could simply be that the lender has no proof that your friend is good with money, because your friend has never taken out a loan or had a credit card before.

Because they are unsure about your friend, they’re counting on you to step up and take responsibility if things go badly.

Remember, if your friend doesn’t make the payments in a timely manner, or doesn’t make them at all, it will show up on YOUR credit history as well as his, and hurt your credit score.

If your friend is too embarrassed, or too disorganized, to tell you that he hasn’t been paying the loan, you might have to make a really big payment to get the loan current again.

And by then, the damage to your credit score will already be done. It will take years for the late payment history to drop off your report.

I know you want to help your friends, but, think carefully before you make a decision that could change your finances for the worse.

Make Your Dream Vacation Affordable

Last issue we talked about vacationing locally and all the things you can do close to home. But, what if you really want to get away? How will you save money, then?

We travel often and are able to save in a variety of ways. Here are some of them:

Travel during shoulder season (that’s somewhere between peak and off-season). We’re going to Aruba in the Fall. The Caribbean is off season at that time because of the hurricane season, but Aruba is usually too far south to be affected by hurricanes.

Comparison shop to get the best deals – there are so many websites that will do this for you. I like Kayak for airfares.

Reward Programs – if you find yourself using a particular airline or hotel, join their program. I know you’ve heard that you may not be able to use your miles for flights. I can tell you that I haven’t found that to be an issue. You do need to plan ahead to get the reward you want. We have used airline miles for many trips, including a flight to Alaska in August.

For rental cars, we make our reservation early, but don’t prepay. Then we check back regularly to see if the price has dropped. You will be amazed at how much the price can drop closer to your trip!

Discounts and coupons – don’t forget about those. We recently went to an aquarium because our water company sent a buy-one-get-one-free coupon with your bill. Coupons and offers can come from a variety of sources. If you have a membership with a service like AAA or a store like Costco, check their mailings or website. Once you reach your travel destination, the visitors guides typically have clip-out coupons (make sure you pick them up when you arrive).

Stay at a place with a kitchen (or at least a fridge) to help your budget. You can shop when you get there for meals and snacks.

Bring your own food on the airplane. Take carry-on food versus buying in the airport or on the plane. You can’t bring drinks, but you can buy a beverage in the waiting area, or get a free drink after boarding. Your own food will undoubtedly be healthier and more satisfying than anything they have to offer.

We’ve had trips in the past where we’ve traveled for next to nothing. Our airfare was paid for with miles and our lodging with hotel points. We only had to pay for food, local transportation, and entertainment.

What do you do to save money on vacation? Join the discussion.

Wise Comments from Readers

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!