Jill Russo Foster

Less Junk Mail Equals Less Spending?

Having trouble controlling your spending? Try something new – control your mail!

You heard me. Control your mail. For the past five years, I have worked extremely hard to get off advertisement mailing lists. My mailbox is no longer stuffed with unwanted fliers and catalogs. Oh, I still get catalogs and fliers, but only from my favorite stores. And, I have asked each of my favorites not to share, rent, sell or do anything else with my contact information. Thanks to privacy laws, I can completely trust all of them to keep my personal information to themselves.

This has reduced my mail considerably.

You are probably wondering, “What’s the connection here? I thought you were talking about controlling spending not junk mail.” Easy. What I don’t see won’t tempt me. No more impulse buying because a slick ad has convinced me I need it. If I didn’t know I needed it before, then I will probably live without it. And if I do need it, I won’t need a glossy image to sell me on it.

I don’t think I’m weak minded. These ads are designed to make you hunger for the kind of ideal life that only an expensive food-processor can give you. If you’re like me, you’ve spent many a weekend morning browsing through Sunday fliers, lusting after small appliances and “just in time for spring” capris.

Now, I have less mail to go through and more money saved. This is a bonus for my time and my budget. Try it yourself. You won’t believe how much less spending you have to list on your budget tracker with this little step.

How did I do it? By contacting these companies:

Direct Marketing Association, Mail Preference Service, P O Box 9008, Farmingdale, NY 11735
Mail Preference Service, Preference Service Manager, Direct Marketing Association, P O Box 3079, Grand Central Station, NY 10163
Companies that I receive subscriptions from (example – magazine subscriptions)
Store credit card companies and banks – request not to receive offers from them or their partners
www.OptOutPrescreen.com or 1–888–567–8688 to limit the offers you receive for pre-approved credit cards

That’s all you have to do! Yes, it takes some work, but it will pay off in the long run. You don’t have to tackle this every day or even during precious relaxation time.

What I did, was set aside the junk mail and take it with me for those annoying “hurry up to wait” appointments. Then I would make the phone calls from my cell. You know, when you’re sitting in the doctor’s exam room for 20 minutes waiting for a physical. Or when you have to leave early to meet someone across town “in case of traffic” then end up sitting in the parking lot waiting for the other person to show up. If you do it that way, you’ll be regaining time, not just saving time.

You may have a savings bond and not know it

Have you ever received a savings bond as a gift? In my family, that was what you received as a gift for most birthdays and holidays. My parents always gave savings bonds even to their grandchildren. It was a big thing in my family.

The US Treasury began issuing saving bonds back in the 30’s. Now, many of those bonds have stopped earning interest. If you remember receiving these as a child, you should locate them and cash them in. You may have been too young to remember receiving a bond as a gift when you were a child, so check with your parents and family members to see if they remember.

If you have the physical bond(s), you can look up the current value with the serial number. If you are not sure, you can check if you have a bond by going to Treasury Hunt at https://www.treasurydirect.gov/indiv/tools/tools_treasuryhunt.htm. You will look up bonds by your social security number. Back in the day when I was younger, my savings bonds were purchased with the purchaser’s social security number, so you may need to know their social security number to check. You may need several family members to check their social security numbers to check for unclaimed bonds.

For more information, you can contact the US Treasury by calling 800-722-2678 or through the website www.trasurydirect.gov. Also, paper savings bonds will not be issued anymore (as of January 1, 2012).

Double Your Savings with Matching Funds

I get this question all the time: “How can I make my money grow faster?” I’m not an investment broker, so I can’t give you advice on buying stocks or bonds. And, personal savings accounts don’t pay as much interest as they used to, so I can’t help you there either.

But, there are two types of savings plans that offer matching funds, which means that your employer, or your state, will put their own money into your account to increase the money you put into the account. Never turn down FREE money! (Normally, I would tell you that there is no such thing as free money, but with these 2 plans there really is.)

Employer Matching Funds in Employee 401K Plans

If you work for an employer that offers a 401K or retirement savings, participate in the plan as soon as you are eligible. If you are eligible and you haven’t signed up yet, find out how soon you can start. Many companies offer to match your contributions. Not only that, but you will be putting your pre-tax dollars into this account, which means you can report less income for income tax purposes. That could mean a bigger tax refund or a smaller tax bill.

If you think you don’t have enough money to contribute, start out small and then increase your contributions. I have clients who did just that, who haven’t felt the loss in their monthly budgets. Remember: the first decision is to start to save. After that, you’ll find a way.

State Matching Funds from an Individual Development Account (IDA)

Another way to get matching funds is from an Individual Development Account (IDA). These accounts were designed to promote good money management and to teach savings habits. To open an IDA account, you need to have a specific goal in mind, such as saving for a home down payment, starting a small business, tuition for post-secondary education, etc. Once you meet eligibility requirements, you will put money in your IDA account on a regular basis, and your funds will be matched. Check with your individual state for eligibility and participating organizations.

But, what if you aren’t eligible for a 401K or IDA?

Don’t be discouraged. If you’ve made the decision to save on a regular basis, set it up to happen automatically. It’s the best way to make your money grow. If you have to go to the bank to put cash into savings, something will come up and you will decide to spend it instead. You will tell yourself that you’ll save next week, then next week comes and goes and you still won’t deposit the money into savings. When you have it taken out of your paycheck automatically, you never see the money, so it’s less tempting to spend it. With interest and time, your money will grow.

Reliable Tax Preparation for Budget-Challenged Families

Yes, it’s that time of year again – tax time! If money is tight, you may be hoping for a refund. But, like many people, you probably have to use part of your refund to pay for having your taxes done.

But, what if you didn’t have to pay a tax preparer? If you have a simple tax return, and you earned less than $50,000, you can qualify for FREE tax preparation with VITA (more on VITA below). Or, check out AARP Foundation Tax-Aide, which has different guidelines by state.

These are the two safest and most reliable options for no-cost income tax preparation (that I know of.)

I know there are some other companies that promise free preparation, but watch for these restrictions:

Do they offer to do your federal return for free, but charge you for the state return?
Do they restrict your appointment to the first two weeks of February? (I’m really organized, but even I have to wait for W-2’s and 1099’s, etc.)

With VITA and AARP, you don’t have to rush and they do both Federal and State (if local rules allow).

Find out if you qualify for VITA (Volunteer Income Tax Assistance)

Volunteer Income Tax Assistance (VITA) has volunteers trained by the IRS to do tax preparation for people who are low to moderate income (families earning less than $50,000.) There are locations in every state, typically at public buildings (like libraries, schools, or town government offices). All have different days and hours. Find the location that meets your schedule by visiting the IRS website or calling (800) 906-9887.

Find out if you qualify for AARP Foundation Tax-Aide

AARP also offers tax preparation services under their program AARP Foundation Tax-Aide. The program gives special attention to those over 60 years of age. There are eligibility requirements that must be met to take advantage of this service. For more information go to AARP.org

These programs are both designed for those with relatively simple tax returns. People who have more complicated returns that include rental property, buying and selling of investments, or businesses are usually not eligible. Check with each organization for locations and eligibility requirements.

Remember: this year April 15 falls on a Sunday and Monday is a Federal holiday, so you have two extra days to file your taxes!

Tips for reducing car insurance costs

While you’re doing your taxes this month, you can be assessing your finances and looking for ways to save. Here are some tips that might save you money on your car insurance:

Most insurance companies will offer a discount for multiple policies, so try to have all your insurance policies with one company.

Consider a higher deductible. Remember, the deductible is the amount of money you might have to come up with if you have an accident.

Pay your premium in one yearly payment instead of monthly. Companies will sometimes add installment fees for multiple payments. There will also be late fees if your payment is not received by the due date.

You may be able to lower your car insurance premium by taking a defensive driving class.

Talk to your agent or insurance company to make sure that you’re taking advantage of all available discounts. Do you commute to work by bus instead of using your car? Do you have students on your policy who are away at school and only drive a limited amount of time. Does your car have certain safety features? Any of these scenarios could mean a lower premium.

In addition, you may want to check with other companies to see what they charge. It never hurts to comparison shop.

A bad credit score can also increase your car insurance. Join me on February 20 for our call Could Your Credit be Costing You Money?

February is a great time to work on clutter

The holidays are long over and the new year is here. It’s time to clear clutter and get organized! With tax season underway, you can start shredding papers.

If you’ve gotten your W-2 for income tax purposes, you can shred your paystubs for the year. Make sure the W-2 matches your final paystub.

If your bank and credit card companies offer you an annual summary statement, take it. If you agree with all the information, you can shred your statements for the period that it covers. One statement versus twelve – much less to organize!

Go through your receipts. I only keep them for purchases that have a warranty (or if I think I may return the item.) I store the receipt in the product manual so that I know exactly when and where I purchased the item.

For any paperwork that you are not sure whether or not to keep, check with your tax preparer.

For the stuff in your home that seems to accumulate, my best advice is for you to take a small amount of time on a regular basis and sort through a small area. Empty out that catch-all drawer, tackle a desktop, or one kitchen cabinet. The trick is to do just that one spot. You’ll find that by tackling one small area twice a week you will see progress in no time without feeling overwhelmed.

To me, walking into a room that has been organized and clutter free is one of the best feelings I can have. Try it – it makes finding what you need easy.

Join Jill on February 27 and Never Waste Your Time Looking for a Piece of Paper

Maybe you CAN refinance

Are you tired of hearing about low mortgage interest rates? You’re not alone. Many of us don’t have enough equity in our homes to refinance – thanks to falling home prices. Homeowners who are underwater need rate reductions more than anyone, but they’re finding it difficult to get them.

If you have a FNMA (Fannie Mae) or FHLMC (Freddie Mac) mortgage, and are current with your payments, there might be a way for you to get a lower rate. The Home Affordable Refinance Program (HARP) has been extended. This program was established in 2009 and is designed to assist people who cannot refinance with traditional mortgages because their property values are too low, and therefore do not meet underwriting qualifications.

There are guidelines that have to be met:

The mortgage must be a Fannie or Freddie mortgage.
The payment history must be current and not have any late payments in the recent past.
You must live in the home. This does not apply to investment property.
You must be able to afford the new payment.
The new payment must be more affordable or more stable.

You may want to look into this program – especially if you have an adjustable mortgage and are planning on staying in your home. This is a great time to get that rate fixed. I don’t think they can go any lower.

You will need to discuss your individual circumstances with your lender to see if you qualify. Talk to your mortgage professional today! You never know when the rates will go up.

2012: Wishes, Goals, and Plans

Most people by this point of the year have given up on their goals. How are you doing with yours? Maybe you didn’t even set goals for 2012 because you didn’t want to break them. Even if you didn’t set goals, you probably still have wishes. What are your financial wishes for 2012? Is it to pay down debt, make better spending choices, save more, or improve your credit score? Don’t worry, I’m not psychic. That’s just what most people want.

Wishes and Goals

Wishes rarely come true because they are too vague and fanciful. After the holidays, most of us wish for a lottery win. Goals are usually more realistic than wishes, but many goals fail because they aren’t specific enough. You need something achievable to work towards, and you need the satisfaction of knowing when you’ve achieved it. If your goal is to “pay off debt” does that mean you failed if you take a loan on a new car, or if you paid off some debt, but not all? A better way to word your goal might be “reduce credit card debt by 50% by December 31, 2012.” You were specific about the type of debt, the dollar amount, and the date you plan to celebrate your achievement. That’s a great goal and worthy of a wish.

Goals and Plans

What’s your specific goal? Don’t worry if you don’t know yet. I’ll help you figure it out, then I’ll help you make a plan to achieve it.

There are three steps I want you to take. Step 1: figure out exactly where you are today (the starting point). Step 2: Create your specific goal based on your current reality. Step 3: make your plan to achieve your goals.

This is not meant to be overwhelming. Let’s follow the financial story of Jason (a completely made up person):

Jason completed steps 1 and 2. He added up all his credit card debt and set a specific goal to cut that debt in half by 2013.

Jason’s Current Reality: $12,000 in credit card debt
Jason’s Goal for December 31, 2012: $6,000 in credit card debt

In order to complete Step 3 (make a plan), Jason needs to look for ways to pay $6,000 in debt during the year. To be more specific, he needs to pay an average of $500 per month. That’s assuming he is not adding new charges to his credit cards. He’ll have to pay more each month if he is. (He may need to pay more to cover his interest charges as well.)

Plans and Achievements

You might be wondering how Jason will find an extra $500 each month to pay down his credit cards. The simple answer? Earn more, spend less, or a combination of both. Jason has already cut his spending down, so he will need to earn more money.

You are probably thinking “Easier said than done!” It’s not always easy to achieve your dreams, but it’s usually worth trying.

A business coach once gave me an exercise that I found really helpful. She told me to write down 20 things I could do to increase my income. This is what we’re going to ask Jason to do.

Here are some ideas to get his creativity flowing:

1.       Work 3 more hours a week for overtime
2.       Find a part time job
3.       Sell unwanted items
4.       Turn his hobby into cash
5.       Ask for a raise

This is a brainstorming session, so Jason shouldn’t worry that his ideas aren’t realistic. The idea is to write down all the possibilities without judging them. Once he’s done writing, then he can determine which ideas to use over the next year in order to get that $500. He has a plan to earn extra money, and he has a list to follow that will help him achieve his goal.

If, like Jason, you’re trying to make your financial wishes come true this year, remember to reassess your progress during the year. Don’t wait until December 15 only to find out that your plan isn’t working. Check in with yourself monthly and make adjustments as needed. Join me for my upcoming teleclass in February to learn more. Visit JillRussoFoster.com/YourMoney

Make this year count – Free Audio!

Free Audio available from Jill Russo Foster

This year could be different!

Do you want to know where your money is going?
Do you want to make changes so that you can save more for fun things in your life, pay off your debt, plan for your retirement, or your children’s education?
Do you want to improve your credit and therefore your score?
Do you want to be able to have a system for your financial paperwork?

Download the Audio

Visit JillRussoFoster.com/YourMoney

I look forward to helping you improve your finances.

With help, this year could be different

Details on how Jill can help below.

Now that it’s January, have you noticed that your year is starting just like years past? Are you vowing to pay off your debt, save more money, spend your money more wisely, and just get your finances organized?

Have you ever wondered where your money goes?

Do you look at your wallet or bank account and wish there was more money there?

Do you wake up during the night, and just lay there, wondering how you will pay your debt?

Do you dread looking into your finances? Is there a hidden part of you that believes, somehow, that not looking means that maybe the problems don’t exist?

You are not alone. Most people have no idea where their money goes. Most people can’t answer questions about how much debt they have, or what their credit score is.

This year could be different!

Do you want to know where your money is going?
Do you want to make changes so that you can save more for fun things in your life, pay off your debt, plan for your retirement, or your children’s education?
Do you want to improve your credit and therefore your score?
Do you want to be able to have a system for your financial paperwork?

Download the Free Call Audio

Visit JillRussoFoster.com/YourMoney