Jill Russo Foster

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!

Save Money – Stay Local this Summer

Share Your Vacation Story!

Planning a great money-saving vacation? Share your tips! You can post your story in the comments below or on Facebook, LinkedIn or Twitter. Or, you can email me at book @ jillrussofoster.com. I can’t wait to be inspired by your summer plans!

Here are my suggestions!

Now that it’s Spring, you’re probably thinking about summer travel plans. I know I am. But, with the price of gas going up, you might be thinking, “Can I afford to do something this summer?” You can if you stay local. Here are some free or low-cost suggestions:

Local museums – Museums can be pricey, especially if you’re bringing the whole family. But most museums have free days or discount days. Check the website or call the museum to see when their next discount day is, then plan a vacation day around that.

City parks for movies, concerts, or theater – Many Parks and Recreation Departments host events. These might be free, or low cost, and all you need to do is pack a picnic. In our area, we have movies in the park, many music concerts and Shakespeare on the Sound. Check out your town’s website to see what they offer.

Libraries – Check your library’s event listings (we use our library all year long). Many libraries host interesting talks, movies, and even musical events.

Holiday Celebrations including parades and fireworks – What is your town doing? Check out nearby towns, too.

State Parks – You’ll get a change of scenery and a day outside.

Tourist activities – Be a tourist or visitor in your town (or nearby) and check out the sites. Try to see your town with new eyes and check out the funny little restaurants, art stores, outdoor art, and important town landmarks.

Get together with family and friends – Plan a get together to reconnect. We have one planned for July already.

Go to the Beach – This is one of my favorite places to relax.

Street Fairs and Festivals – Many areas have multiple festivals throughout the summer. There are arts and crafts fairs, ethnic celebration festivals, and antique car shows. You can buy pottery one weekend, and dance the polka the next. Use the internet to see what’s happening in your area.

What do you have planned? Join the discussion.

It’s May! Relax this summer knowing you’ve checked your credit!

It’s time to order your next credit report
This month use Equifax

Hello everyone! This is your quarterly reminder from me.
Order your free credit report from www.AnnualCreditReport.com.

AnnualCreditReport.com is the ONLY authorized source for a truly FREE 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 Equifax.

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.

Do you want to know your credit score? Use CreditKarma.com. Credit Karma will give you a close approximation of your FICO score, and it’s free.

May you have a sunny and profitable summer!

P.S. You will receive another reminder in September, allowing you to stay up-to-date on your credit throughout the year.

What Don’t You Do with Your Money?

I’ve shared two ways we save money in our household – careful food shopping and credit monitoring. Now I’ll tell you what we don’t do that saves us money.

We don’t have a data plan with our cell service

We have cell phones, but that’s it – just cell phones. We don’t have text messaging or a data plan. We lowered our minutes to the lowest plan available and we regularly come in way below our limit.

We don’t have HBO.

Only in the last month have we upgraded to an HDTV and that’s because one of our two TV’s needed to be replaced. We still have one older TV and we don’t plan on replacing it unless it stops working. We have a basic cable package and get our movies free – either from the library or the free on-demand selection our cable company provides. We gave up our paid movie channels a while back. We don’t have a DVR either – still using the VCR.

We don’t hire home contractors (often).

We do a lot of home maintenance and repairs ourselves. Last year, we painted the garage. This year we painted the bathrooms ourselves. We don’t have a landscaping service to take care of our yard. (It helps that we don’t have a big yard to take care of.) I really enjoy gardening. There is nothing better than picking fresh vegetables and eating them within minutes while they’re still super fresh.

We don’t buy new cars.

We drive older cars. Mine is a 1995 with 167,000 miles and it runs fine. I just had a tune up and the mechanic says the car is in great shape. Having older cars works perfectly for us, because we don’t like making payments. I’m not into fancy cars – all I need is reliable transportation.

You might be thinking that we lead lives of deprivation, but I can assure you that we are not missing out on anything. We only spend money on things that are important to us. If we spent money on things that we didn’t enjoy (but made us look good to other people), that would mean having less money for things we do enjoy – like nice vacations.

What don’t you do with your money? Join the discussion.

Are you preparing for retirement?

It is so important to prepare for retirement. It really is better to put aside money now so you can have those happy golden years later.

So, what should you do?

You can contribute to an IRA, or Roth IRA, by depositing up to $5,000 each year. If you are at least 50 years old, you can contribute $6,000 for each year. (Those guidelines could change, so visit www.IRS.gov if this is an older post.)

Also speak with your tax preparer, investment person, and/or your banker; all will be willing to give you their professional advice. Depending on the type of account you have, and your income level, the contribution to your retirement account may be tax deductible for you.

If you are thinking, “I don’t have $5,000 to contribute!” (that’s $416.66 a month or $96.15 a week), it doesn’t have to be an all or nothing situation. Make a plan so you can contribute an affordable amount on a regular basis, then increase it over time. Remember to have it withdrawn automatically so that it bypasses your checking account. It will add up over time.

The earlier you start, the more money you will have when you retire.

That’s my advice. What are you doing prepare for retirement? Let me know in the comments.

Don’t Pay a Service! You Can Easily Monitor Your Own Credit

Credit Report Shock

Identity theft is one of the biggest fears plaguing consumers these days. It was interesting to catch a scene on a crime show recently where a waitress is caught hiding a portable credit card swiper under her apron, then using it to steal her customer’s credit card information. YES, this does happen in real life.

Identity theft isn’t the only thing that can hurt your credit. Banks make mistakes, family members make late-payments on jointly shared accounts, you might have a payment dispute with a fraudulent company. I could go on, but you get the idea. Life happens.

The only way to protect yourself is to consistently monitor your credit. Most people believe that you have to pay an outside company to have your credit monitored. I disagree! I do it myself.

Once you get in the habit of monitoring your credit, it gets easier and becomes an almost compulsive habit. You’ll feel that you have much more control over your life and finances.

How to Monitor Your Own Credit

1. Look over your credit report three times per year minimum. You can do this by visiting www.AnnualCreditReport.com and ordering one report every four months. It’s completely free. If you subscribe to Quick Tips, you’ll get a reminder email with instructions in January, May and September.

2. Check your credit score at www.CreditKarma.com every month to see if there are any changes. This is also free. Monitoring changes in your score can alert you to hidden issues.

3. Monitor your bank accounts (checking, savings, etc.) to see if there are any unusual transactions. Most banks have online access, so you can easily check any time you get online. My virtual bank accounts actually email me with every transaction, so that’s an added plus.

4. Monitor your credit card accounts. I get online and check each and every account to see what’s happening. I do this every week or so, just to be on the safe side. These days, people can even scan credit card information through your wallet or purse from a distance. It doesn’t hurt to be careful.

Yes, taking these steps can take up some time, but it’s well worth it. Even with my busy schedule, I am able to find the time to monitor my credit. I am comfortable checking my accounts and credit, and I don’t feel it’s necessary to pay for a monitoring service. You may not find that it’s worth your time, but remember, it’s absolutely free to give it a try.

If you’re in a relationship, how do you handle finances as a couple?

Are you in a relationship? If you are, you know what it’s like to share your life with someone you love: your joys, your sorrows… and your money.

One of the biggest reasons for divorce (or breakups) is finances. I know you don’t want that to happen, so what can you do about it? Talk. Communication is the key to handling joint finances.

People have different ways of handling their finances. One person might be a saver who really values the money saved for future dreams and needs, while the other might be a spender who lives in the moment. If these two individuals become a couple, there can be disagreements about money that can escalate to divorce.

Take a minute to talk with each other about your money habits. It can be a really eye opening conversation. Really listen and try to understand the other person’s point of view. What did they learn about money growing up? What do they want right now? Where do they want to be in 1, 5, 10 years and beyond? With this understanding, you can choose a path that will work for the both of you. Meaning, the spender will save a portion and the saver will spend some money. Come up with mutual goals and agree on how you will achieve them together.

The goal is to handle your household finances and your goals in a blended way so that both people are comfortable. To do this, communication and action is key so that all feelings are heard and considered.

If you’re in a relationship, tell me how you handle your finances as a couple. Who handles the money? Who makes the budget? Who sets the goals?