Jill Russo Foster

Connecticut income tax increases begin this month

Changes for Connecticut Residents

When you open your paycheck in August you will notice that it’s smaller. The new CT income tax deduction took effect August 1, but it went into effect retroactively from January 1st (7 months past).

With only five months left in the calendar year, the money has to be made up. From now until the end of the year, you will be having more than double the CT income tax withdrawn from your paycheck to catch up.

Come January 1, 2012, you will go back to paying the regular new income tax amount.

Check with your tax preparer, but it is my understanding that the tax increase will not affect you if you are filing your taxes as single and earn less than $50,000, or married and earn less than 100,000. If that’s you, you won’t see a difference in your paycheck now or in January.

Connecticut Sales Tax Increases

No matter your tax bracket, you will be paying more sales tax when you shop in CT. In case you didn’t know, CT shoppers are now paying 6.35% as of July 1 (up from 6%). And you will pay it on more items. Some items that were tax exempt in the past are now taxable. For example, you didn’t used to pay sale tax on clothing under $50, but now you will as you shop for back-to-school. Remember that there is a tax-free week for clothing from August 21 to 27 for purchases under $300.00, so you may want to plan your shopping ahead.

How to get the best price on a new car

Are you in the market for a new or used car? How can you tell if you’re getting the best price?

You don’t want to pay more than the car is worth. Here are some tips to help you get started.

Myths Busted

People say to shop later in the month because the sales staff will sell at any price to meet their quotas. The truth? You don’t know how they calculate their quotas. Maybe it’s quarterly. Maybe the dealership tallies sales on the 3rd Friday of each month. Maybe they’ve had a great month and don’t need to cut you a deal. You won’t get a good price by guessing the salesman’s income. Do your car research instead.

Research Your Car Online

You can research ahead of time if you’re looking for a specific make and model. Or, you can research online after the dealer makes his offer. One website is Overstock.com. You can select the car make and model, and all the options, and it will give you a suggested price that you can take to the dealer. Another website is CarsDirect.com. There, you can select the make, model and your zip code. You can also try Kelly Blue Book and the Insurance Institute for Highway Safety. Both sites give good information on car repair and safety features for current makes and models.

Save Money on Financing

If you need financing, do the research ahead of time. Start by reviewing your credit and making any corrections that are necessary. Once your credit is handled, then it’s time to research for the best terms for your loan. Don’t just rely on the dealer for their financing. Check with your bank or credit union, and then other lenders, for the best terms.

Bottom line, do your research so you can negotiate with real up-to-date information. That way, you’ll know you’re getting the best deal.

KEY ~ Feed Your Body How to Simplify Your Life and Save Money

by Vicki Heise, CHC, CHHP/AADP

Did you know that not only can you save money by cooking at home but it doesn’t have to be complicated?

If you think you don’t have time to add another thing to your to-do list, with a little planning you can not only save money, but feed your family great tasting nutritious food and not spend lots of time in the kitchen.

Here’s how:

1. Use whole foods. Buy whole foods, the ones you find around the outer edge of the grocery store. That’s where you’ll find the fresh herbs, fruits, vegetables, meat, chicken, fish and dairy. Add some things from the bulk bins like grains, beans and nuts (a huge money saver) and don’t forget to get some canned beans and frozen vegetables that are real time savers.

2. Prepare them simply. You don’t need lots of recipes with long lists of ingredients. Save the complex, full of ingredient recipes for when you have the time to enjoy the whole cooking experience.

3. Make large batches ahead of time of the things that take a while to cook like beans and grains. Yes they do take time, but it’s on the stove time, not you actively being involved time. They’ll be ready when you get home so you can quickly put all the pieces together. Use a quick cook method for the other ingredients and make extra to have leftovers for lunch/dinner the next day or later in the week.

4. Add flavor. How about letting everyone season their own meal? Prepare the food simply and have favorite condiments, spices and dressings on the table. Everybody gets to decide how much and what flavors they want to add. This make it easier on you and keeps everybody happy!

Take a little time to plan ahead to save yourself time and money starting this week!

If you’d like a copy of the Live Your Healthy Life meal planning and grocery list, just email Vicki at info@liveyourhealthylife.com. She will email it to you and also send a complimentary subscription to the weekly Live Your Healthy Life e-newsletter full of healthy tips and ideas AND your 12 page special report on the 7 Keys Every Woman Needs to Unlock Her Healthier, Happier Life™ (Retail Value $27). Privacy is important to me, so I will never sell, rent or give your name or address to any third parties.

Vicki Heise, Your Healthy Life Mentor is the founder of LiveYourHealthyLife.com and creator of the “7 Keys Every Woman Needs to Unlock Her Healthier, Happier Life™”.

Getting Packed for College – Part Two

Last week we talked about text books, technology, and medical expenses for your child at college. Let’s get into a few other areas that can break your budget.

Student Housing

While freshman typically have to live on campus, other year students may not. Compare the cost of these options:

Renting a bedroom in a local residence
Sharing an apartment or house with multiple roommates.
Being a dorm resident advisor (see if it will reduce rates).

Bed and Bath Items

Many stores right now offer back-to-college shopping lists. Start one of your own so nothing gets forgotten. You may want to consider areas such a:

personal toiletries
linens and towels
kitchen and laundry needs
supplies for studying
entertainment needs
storage containers/bags

Check to see if there are chain stores near campus. If there are, you can shop there instead of lugging everything from home. All this requires planning ahead.

Access to Spending Money

Last but not least: money and finances. Your child will need to have access to cash and you want to be proactive here. Look into which banks are on campus, so your child won’t lose money on ATM fees for withdrawals. It’s more important that it’s convenient for him than you.

With today’s banking, you can link his account to yours so that you can put money into his account when needed. Don’t assume he’ll know what’s appropriate.

Discuss needs versus wants
Be clear on what expenses you’re willing to cover and what you won’t cover.
Never doubt that your child will spend as much money as you give him. It’s too easy to overspend money with no guidance.

Planning ahead will save you a considerable amount of money. Now is the time to make these additional college expenses fit into your budget.

Getting Packed for College – Part One

It’s time to think about getting your children ready for college next month. While you’re making a list of supplies, consider this:

Text Books – don’t wait until you get to the bookstore.

With recent changes, text book prices have to be printed on the course schedule. This will give you an idea of the cost of each class’s books.
Don’t stop there. You can see if there are used copies to purchase, saving you some money. But make sure they are the same edition.
Another way might be to look into www.BookRenter.com and www.Chegg.com. These will help you price shop for your children’s text books.

Doctor – near campus and in your network

Kids don’t think about needing a doctor ahead of time. If you have medical insurance that covers your child at school, do some research. You want your child to have this information before he gets sick or hurt. That way you won’t have out-of-network medical expenses.

Printer – do you really need one?

Talk with the school and see what options are available to use on campus.
If that’s not the answer, then look for an office store, such as Staples or Kinkos, that is easily accessible.
You might think a printer is not a big expense, but the paper, ink and toner can be.

These types of expenses can put a kink in your budget.

Next week I will continue with a few more things to think about before your child heads off to college.

I Challenge You to Track Your Spending

Have you ever written down a budget to see where your money is going? Well, we did this earlier this month and everything looks fine, meaning that we make more than we spend.

That means we can pay our bills – great! That’s check one. Check two – are we saving enough? No, we’re not, but where do we get the money? We won’t find extra money to save until we find out exactly where our money is going.

If you want to do this process with me, follow these steps:

1. Write down a couple of short and long term goals. (Just so you’ll be inspired to do the work.)

Short term goals can be planning for a vacation, buying a car, paying down debt, saving for something that you want, and starting an emergency fund.

Long term goals can be saving to purchase a home, saving for your children’s education, retirement planning, and paying off debt/mortgage. What are yours? Imagine what you want or need and write it down now.

2. Track every penny you spend. That means finding a way to record your spending as it happens.

Don’t wait until the end of the month and use your bank statement or receipts. A single store can fall under many spending categories and receipts don’t always list items by name (or by names that you can decipher). Don’t think for a minute that your grocery store trip can be lumped under food. You may buy your pet food there, as well as cleaning supplies, shampoo, or even magazines.

I know this sounds time consuming, but it’s worth it. You can carry a pen and pad with you and write down everything by hand. Another way to track your money is by using a phone app. Choose the way that works best for your lifestyle.

3. Write your totals in a budget worksheet to see where you stand. Once you see a month’s worth of numbers, than you can begin to analyze what is going on. With this clear picture, you can make changes – lower bills to save money, get rid of unused services, check out the competition to switch etc.

Tell me what you have discovered with this exercise. Next issue, I will tell you what we have changed.

Download my budget worksheet here.

The little purchases can break your budget

Have you ever wondered what happened to the cash in your wallet? You cashed a check or used the ATM and suddenly the money was gone!

If this is you, you are not alone. It’s the little spending that gets forgotten. It’s also the little spending that can break any budget and lessen the amount you have to save. A restaurant meal, a few coffees, a movie, some lottery tickets, and poof! The $60 dollars in your wallet is gone.

You have to know where you spend your money to make your goals a reality. This month my husband and I are tracking every penny we spend. That means we are writing down all the credit and debit card purchases, checks written, bills paid, ATM withdrawals, and cash spent.

How do we do it? Each day we come home and put it into a tracker. How you track your spending is up to you (written, spreadsheet, or online). Already at midmonth I can see some areas that need addressing.

Our next step is to make the changes we feel are needed, by cancelling services we don’t use, calling to see if there is another option, checking out the competition for pricing, etc.

Just like us, you will see areas that need changing. We had no idea we spent so much on little things that really aren’t that important to us. Then, it’s up to you to decide if you need to address that area or not. Through your efforts, you will be able to lessen some areas of spending and put the savings towards things you really feel are important.

All these little changes will add up to extra money you can put towards your financial goals.

Tracking your expenses is the first step to understanding your spending habits as they really are. If you want a copy of my tracking form, email me. You have to see your spending to believe – only when you believe will you make the necessary changes. Saving a few dollars here and there can help you make a big start on your emergency savings.

The Must-Have Documents to Prepare for Death

In the last few weeks, I have had several people talk with me about end-of-life financial planning. They’ve told me what they’ve done and what they’re stuck on.

I was at an anniversary party and one of the guests told me that he discussed his finances with his adult son for the first time. After reading one my Quick Tips articles, he took the initiative to map out his financial picture so his son would know where to find all the details if the worst happened.

In another conversation, a reader shared that she was having trouble choosing the right person to be the executor of her will. This can be a touchy decision for all of us. She wasn’t sure there was anyone in her family who could handle it. I suggested looking outside the family for a trusted friend or professional. She was able to think of someone, but her new dilemma is moving forward.

Lastly, I was coaching a woman in her early 30’s whose goal is financial security. Her husband recently passed away leaving her a single parent facing all of life’s challenges alone.

These are people in all stages of life dealing with the financial complications of death.

That brings me to today’s tip – the must-have documents.

Do you have a will?
Do you have a living will?
How about a healthcare agent?

You need these documents regardless of your age. Any estate attorney will be able to help you with preparing these documents, but here is some basic information to get you thinking:

Your Will – Who will be the executor of your estate? You should choose someone that you trust with the intimate details of your life. My suggestion is to think of a few people. If your first choice declines, you move onto the next until you find a willing partner who can handle the responsibility.

Next, think about what you own and who you want to leave it to. Be specific with your possessions and your choices. It’s really not enough to leave all your jewelry to your nieces. You don’t want your legacy to be a family feud over who gets the first pick. Your attorney will be able to get you a questionnaire to help you through the process.

Your Living Will – If you are incapable of making medical choices for yourself, what will happen to you? Yes, this is a difficult question to ask yourself, but you need to write your wishes out. That way you can make your own choices even if you can’t express them yourself.

Your Healthcare Agent –Do you want someone to be able to make your medical decisions when you are not capable? Then this is the document you need. Most hospitals will require you to have this before a procedure. This should be someone you trust to make the decisions you would want made.

Check with an attorney for guidance and start working on your must-have documents today.

Pay More than the Minimum

You know that little box on your credit card bill that tells you how long it will take to pay off the balance if you only pay the minimum due? Does it scare you? It should. You may be tired of hearing it, but I can’t tell you this enough. Pay more than the minimum.

Here are a few things you should know:

Let’s say you have a $10,000 balance at 12% interest and the minimum payment is $200 per month. You should know that if you stop using this credit card, and that means no more charging on this account, it will take you 70 months – almost 6 years – to pay off the balance and will cost you over $9,000 in interest.

Now think about this: Was whatever you purchased worth that additional cost?

Enough about that. You have debt. What are your options?

You could pay it off with your savings (I am not talking about retirement savings). But, chances are if you had the money in savings, you wouldn’t have made the charges.
You could figure out a way to get more income. Get a part-time job, turn a hobby into some extra cash, or sell items that you don’t need.
You could reduce your expenses. Mow your own lawn, cancel cable TV, stop eating out, etc. (Read my upcoming Quick Tips article on July 22nd for more information.)

Paying the balance off as quickly as possible is in your best interest. Let’s use my example above:

If you could increase your payments by $50, you would save 18 months of payments.
Increase it even more to $100 extra per month and you would cut the time to 41 months.
Pay $200 each month (that’s double the minimum) and you could have the balance paid in 29 months and only pay about $1,600 in interest versus the original $9,000.

Paying your credit card balances off as quickly as possible is a great thing. Make your new budget plan and get started.

How to Prepare for a Summer Power Outage

It’s summer – hurray! But with summer comes the possibility of storms and power outages. This has been a year of unpredictable weather. Are you prepared for whatever comes next?

These are things we have to think about.

Batteries: Needed for flashlights and/or lanterns, battery operated radio, etc.
Water: If you have well water, have water stored in containers (both drinking and for washing). Your pump will not work without electricity.
Non-perishable food: We all have some canned food, but could you make a meal with it? Do you have a manual can opener to use when the power is out?

The difference between winter and summer storms is the outside temperature. With this being summer, you have to think about preserving and using the food in your refrigerator and freezer.

How long will it last?
Do you have grill supplies handy to grill the food if necessary?
Do you own a cooler to store food if need be?

If you hear of a possible storm coming, take precautionary steps before it strikes.

Turn up the temperature in the fridge and freezer (food will last longer).
Fill up the gas tank on your car (gas stations can’t pump gas without electricity).
Get cash (if there are stores open they may not be able to accept credit cards).
Charge your electronics
Get bottled water if needed and be prepared to live without life’s conveniences.

The more you do to prepare, the better you will be able to weather the storm in your own home.