Jill Russo Foster

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?

How do you save money at the pump?

With the price of gasoline going up every time you drive by the station, what are you to do? There are a couple of things you can do to save money at the pump.

1. Clean out your car. The more weight you carry in your car, the more gas you use. Take out the stuff you don’t need and make a habit of doing this regularly.

2. Combine your shopping. Run errands in one trip versus going out today for something, then again tomorrow for something else. Map out your stops to get your errands done in an efficient manner.

3. Drive at a steady pace. Quick starts and hard braking can use more gas than driving at a steady pace. While you’re at it slow down. Driving above the speed limit is a waste of gas.

4. Pay with cash. Many gas stations charge a premium to use your credit card at the pump. Save money by using cash for your fill ups.

5. Plan ahead. Use your computer to help you save money when you need to purchase gas. Websites like Gas Buddy can find you a lower price and apps like Cheap Gas can do the same from your smart phone. (Gas Buddy also has an app for Android)

So, how do you save money at the pump? Let me know in the comments.

How Do You Save Money on Groceries?

Food Prices
With Financial Literacy month starting on Sunday, I want to help you to save more money. I figure that the best way to do that is by consulting the experts, and by experts I mean you. I know you have some tried and true money savings tips! As they say, “Only the foolish learn from experience – the wise learn from the experience of others.”

I love picking up tips from other people. This April, I want you to show off your savings expertise. Watch Facebook, LinkedIn or Twitter. I’ll be giving you different savings topics throughout the month and asking for your advice.

The first topic is food shopping. How do you save money on groceries? I’ll start the conversation by telling you how I do it.

On Sunday, I sit down and make a list of what we need during the week. That includes a meal plan.

When I plan my meals, I make sure that I plan some leftovers so I don’t have to cook every night. Sometimes, I even cook ahead on the weekends and freeze the extra food. (Ordering take-out can be a downfall to my budget.)

My meal planning also revolves around sales. That’s why I like doing meal planning on the weekend with the Sunday paper in front of me.

Speaking of the Sunday paper… Yes, I do use coupons. I don’t make myself crazy. I cut them out of the weekend fliers and sometimes will even go to the manufacturer’s website to download them.

Then, I calculate how much my plan will cost me. I compare my cost to my budget and make adjustments to my food plan if it looks too pricey.

Finally, I shop for food with cash. This stops me from over-spending. If I use my debit card, I find myself adding items to the cart that I hadn’t planned on buying.

What do you do to save money when you food shop? Join the discussion.

Remember to follow us on Facebook, LinkedIn and Twitter to answer this and other questions throughout the month of April. You could literally save someone else’s bacon, and learn some new tricks yourself!

3 Important Tips for Paying off Credit Card Debt

Last Thursday, I talked about balancing debt repayment with building an emergency savings fund. This is the second part of that post.

For the actual pay debt repayment, there are two ways to do this.

If you are the type of person that needs to see forward movement to keep you motivated, then pay off the smallest credit card balance first, then work your way to the next smallest until you’re done. This will give you a feeling of reward and the financial momentum to keep this going.

If paying interest rates and fees bothers you, you will want to pay off the highest interest rate credit card first and then work your way down to the lowest interest rate. You will have the satisfaction of paying less and less in interest charges each month.

Either way excessive credit card debt is the enemy of your budget.

Live within your means.

Because your credit is so important to your finances, you will have to find a way to live within your means. That means only using your credit cards when you know that you can pay them off in full each and every month.

So many people struggle with credit card debt. Just as they get their debt paid off, something happens and they are in debt again. You can use your cards for the consumer protections and to keep a healthy credit score, but learn to use your credit cards the way you would a check or debit card – keep your purchases within your monthly cash flow.

Balance Debt Repayment with Savings

I get asked all the time for advice on credit card debt. We all know that credit card debt is the enemy of a monthly budget. Your money has better things to do than paying down finance charges and interest. But, if you are currently in debt, then you need to do something about it.

Most of my clients want to know the best way to pay off their credit card debt. Most people ask me if they should put all their resources into debt repayment. My answer to that is “no”. There is one thing that I believe everyone should do while paying off credit card debt – build an emergency savings fund.

You are probably saying that you have no money to save! I’m telling you that you need to find the funds. Your credit card debt may seem like your biggest priority, but if you take all your extra money to pay down debt, then you will find yourself running up credit card debt any time an unbudgeted expense pops up. These unexpected budget breakers are such regular events that we should learn to expect them. Your car breaks will need to be replaced, an appliance will need a new part, the roof will need new shingles. It’s inevitable. I could go on, but you get the idea.

You need to find a balance in your budget with savings on one side and debt repayment on the other.

The easiest way to build an emergency savings account

Each pay period you should have some money automatically transferred from your paycheck to a savings account. Start out with a small amount on a regular basis. That way you won’t feel the pinch and you will be setting aside money to use when something unexpected happens so you won’t have to use your credit cards.

A good way to pay off debt

To pay down your credit card debt:

Make a detailed list of each credit card, the amount owed, the credit limit, the interest rate(s) and minimum payment amounts
Look at your options – can you transfer the highest interest rate debt to a lower interest credit card (maybe you have room on a credit card you already have)?
If you are considering opening up another credit card, please think before doing so. There a number of factors that are involved here . Check my website www.JillRussoFoster.com for the five factors that make up your credit score.

On Monday, I will talk about paying down your debt.