Jill Russo Foster

Tips for Successful Personal Finances

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Teens and Money

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Last week I had the honor of teaching a Teens and Money class at Norwalk Community College – 5 afternoons of teens in grades 9 to 12.

We discussed money management, credit, credit cards, banking, car buying, paying for college, budgeting and more. Teaching teens is a passion of mine.  This is something they don’t seem to be getting elsewhere.

Here are two of the teen comments:

  • I definitely learned a lot about money and how to pay for college and a car.
  • I liked the hands on simulations, like the dilemma packets we were given free range with, so that we could play with the elements of rela life situations in a safe setting.

Make sure to talk with your children about money and finances, so they can make educated choices based on knowledge that are right for them, making them look at their choices both the pros and cons.

If you are in the area, I will be teaching a shorten version of this class on Saturday, October 20 at NCC.  To register, call NCC at 203-857-7237.

The Cost of a Pet

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We adopted Willow this past weekend, so I wanted to rerun an article about the cost of pets.

I am passionate about travel, but it doesn’t compare to how I feel about my dogs.  Brownie has been a member of the family for seven years now.  We rescued her at about 8 weeks when she was only 12 pounds, a far cry for her 70 pounds now.  We love her just as much as any of our other dogs.

But owning a pet can be a budget breaker.  Pets are expensive.  You need to consider their day to day costs – food, supplements and services – which can range in price from affordable to “how am I supposed to pay for that?”

The Initial Costs

According to peteducation.com, the first year can cost between $500-$6,600 depending on how much you’re willing to spend.

You have the simple comforts and necessities: bed, leash, collar, food bowls, toys – these aren’t too expensive individually, but can add up when you’re buying them all at once.

Then there are your legal requirements, like puppy shots, license and tags.

You may also want to consider having your puppy neutered and micro-chipped.  Thank goodness where we rescue the cost of puppy  neutering is included, so it’s not an extra cost for us.  If you rescue, ask to see if you can save too.

Finally, depending on the dog’s personality or medical issues, you may have other expenses.  Brownie went through the teething stage, as puppies do, but she wasn’t interested in inexpensive items like shoes or pillows. She chewed the molding around the door so that we needed a carpenter to make the repairs.  That was expensive.

The Costs Going Forward

According to the Pet Education, the annual costs can be anywhere between $300-$2,500.

Brownie’s annual vet check-up and shots cost about as much as a car payment and are due every summer along with her license.  That’s not including any extra trips to the vet for illness, injuries, etc.  All these need to be planned for.

Your homeowners / renter insurance can increase depending on your dog’s breed.

Lastly there is caring after your dog’s emotional and physical well-being.  Do you need to have a dog walker while you’re at work or to board your dogs when you’re traveling?  More costs.

Lots to think about. Besides just selecting the right pet for your family, make sure to plan the financial part, too.

Overdraft Line of Credit Saves The Day!

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Do you have an overdraft line of credit associated with your checking account?  We’ll we do.  Sometimes it’s a life saver – literally!

This week I paid our mortgage as I always do, but something happened.  I must have selected the “other” checking account and I didn’t notice it.  Now you know that I check our bank accounts at least weekly, just to keep tabs on what’s going on (we don’t use a credit monitoring).

Well imagine my surprise to see the mortgage payment coming out of that checking.  One of the worst things you can do is to bounce your mortgage payment and yikes this could have happened.  But thank goodness it didn’t.  Our overdraft line of credit saved the day by covering the overdraft.  So the mortgage payment is paid and all is well there.  I noticed it quickly, so we transferred the funds to pay back the overdraft and all is well.

If you don’t have overdraft protection on your checking account, you may want to think about it.  It saved us this time.

Home Maintenance

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If you are a homeowner, you will understand.  Yes, there are many advantages of home ownership and I love being a homeowner most of the time (except summer).  To me, summer is the time for being outdoors and having fun.

spring cleaning

But along with the advantages comes the maintenance.  Yes, the upkeep – doing the maintenance now so that you don’t have a bigger issue later.  We do most of our own so that takes up time (time away from the summer fun), but it’s a part of home ownership.

Here is a great checklist of summer maintenance suggestion for your home.

Money, Life and Savings

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A reader asked me about how to save to purchase a home, when your money doesn’t allow much for savings.

That’s a great question. But not an easy one to answer.

We all know that saving should be a priority.  But we have monthly obligations.  So here are so general steps to achieve what you want (in this case a home).

  1. Track your spending – many people overlook this step.  Trust me this is the most important step in achieving your goal.  Write down every penny that you spend for at least a month.  Track everything from the rent payment to purchase of the newspaper.
  2. Weekly (or more often) take your tracked numbers and put it in to a budget.
  3. Analyze where your money is going and make a plan to spend less.  Even saving $5 a week will add up.
  4. Automate your savings goals and pay yourself first.  You will learn to live off less if you don’t see it available in your checking account. You may want to unlink your checking and savings (or have them with separate banks).
  5. Lastly, look into home ownership programs in your community.
  6. Check out to see if you qualify for an Individual Development Account to save for a down payment.

While it’s hard to save money each and every month.  It a necessary step in life to achieving your goals.

 

Need Your Thoughts!

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You, as loyal readers of my newsletter, I need your thoughts.

For years, i have been writing my newsletter and informing you about personal finances issues.  I wants to know what you want to hear about.  What topics are of interest to you?  What do you want to learn more about?

Here are some suggestions (but please feel free to add your thoughts)

  1. Personal Finance General
  2. Getting Out Of Debt
  3. Savings For Your Future
  4. Money and Kids
  5. Retirement
  6. Money For The Fun Things In Life
  7. Organizing Your Finances
  8. Your Choice __________________________________

Let me know by responding to this post on social media, blog post or an email to book@jillrussofoster.com.  Thank you in advance for taking the time to respond.

Money Habits To Avoid (Part 3)

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This is part 3 of Money Habits To Avoid.  If you missed part 1 or 2, please search my blog post.

 

6. Keeping up with the Jones’ — There is always going to be someone with a nicer home, car, clothing, etc. That’s just life. Your budget cannot survive trying to keep up with others. This habit will send your budget off a cliff. You going to need to get comfortable with where you are and what you have.

 

  1. Ignoring Your Finances — I met some people who don’t open their mail, don’t answer the phone, and are totally oblivious to their finances. Ignoring your finances won’t make them go away, they will be there untilyou deal with them. In fact, you will owe more with added interest and additional charges. If this is you, take baby steps to get acquainted with your finances.

If you see yourself in any of these habits, the first step is awareness.  Once you are aware, you can make the changes necessary to break the habit.

Money Habits To Avoid (Part 2)

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This is part 2 of Money Habits To Avoid.  If you missed part 1, please search my blog post.

3. Using Credit Cards to Get By — You know what I mean, you use your credit card because you don’t have the cash to purchase … This is a red flag if this is an every day, week, or month occurrence. Credit cards definitely havea place in your finances, but they are not the means to spending more than you can afford on a regular basis.

4. Discretionary Spending to Impress — This may have happened to you, I know it did for me when I was coming out of college. You are out with friends and you offer to pick up the tab. Maybe you want them to think you are doing better than you actually are, maybe you want to seem on par with your friends, whatever the case, no one expects you to pay more than your fair share. If you can’t afford to do something at this point, maybe you politely decline.

5. Emotional Spending — Just like emotional eating, emotional spending can be a problem. You are upset, and you go out and buy a …… Yes, you feel great in the moment, but did you need a … ….? Was it money you were planning on spending? Probably not. You know what you need to purchase, make a plan and stick to it.

Check out the next posts to find out the rest of the Money Habits To Avoid.

Money Habits To Avoid (Part 1)

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In my opinion, there are seven money habits you want to avoid.

 

You may be currently doing these or have done them in the past (and I have been guilty of them myself), but now is the time to break the habits and get on with your finances.

  1. Lending Money — I think we all did this at some point in our lives, whether it be loaning $5 to a friend and not getting paid back, or lending more. Not only does this put a strain on your finances but it can affect your friendship. Make a resolution to give up lending. If you want to help someone out, then make it a gift with no repayment expectations.

 

  1. Spending It All — Yes, you know what I am talking about — living paycheck to paycheck. We all have choices we make with our finances — whether to spend this today or save for tomorrow. Budgeting is about choices that your make. So make the choice to not spend it all and save. Making this decision is the first step to starting to save and the next step is to actually do it (automate the savings process to make it foolproof).

Check out the next two posts to find out the rest of the Money Habits To Avoid.