Every Day Finances

Reduce Interruptions, Retake Your Time

This is the second part of streamlining the interruptions in your life.

As of January 1, 2005, the Do Not Call list went in to effect Adding your phone number(s) to the list prohibits companies with who you do NOT have a direct relationship (non-profits and political organizations are exempt) from contacting you for solicitation purposes You can register your telephone number(s) (cell phones too) so that unwanted calls are substantially reduced To register your phone numbers go to www.DoNotCall.gov or call 800-382-1222 Registration takes 31 days to take effect and numbers remain on the list for 5 years, at which time you should re-register So if you registered when the law started, it’s time to re-register.

Also in 2005, the Junk Fax Protection Act was enacted Each fax should include the option for you to remove yourself from that companies fax list, by providing you with a toll free number to call to get your number removed from their list.

Sometimes after all your efforts, you continue to receive unwanted communications, and you have made it clear to the company that you do not wish to be contacted and you have no relationship with them or a sister company and you continue to get contacted, you have the option of reporting the company to their regulatory agency For example, for calls and faxes contact the FTC to file a complaint.

The system is not perfect, but I personally have eliminated most unwanted mail, calls and faxes.

Jill interview in the Greenwich Time

Small steps make big difference for financial health: experts

Karen Kovacs Dydzuhn
Published 3:51 pm, Thursday, June 24, 2010
Original article link in the Greenwich Time

Given today’s shaky economy, more women are seizing control of their finances and, at the very least, are determined to learn more about the basics of money management and how to invest their assets wisely.

Last Tuesday’s “Living A Health Financial Life” seminar, sponsored by Mutual Security Credit Union, in partnership with Hearst Media and its HealthyLife magazine, drew a large turnout of women — and men — eager to listen to financial experts talk about budgeting, credit reports, estate planning and finding a competent financial planner.

Against picturesque views of the Long Island Sound from the Inn at Longshore’s Grand Ballroom, four panelists — including Westport’s own local radio celebrity Lisa Wexler — offered the audience tips on how to make small changes that could positively affect their personal finances.

Noting that people today are living longer lives, Stephanie Giletto, divisional vice president of Nationwide Financial, stressed the importance of getting organized, determining one’s goals and taking actions, no matter how small a step it may be.

“Do not procrastinate,” she advised. “You came here tonight for some information, so use it. Knowledge is not power; it is the application of knowledge that is power.”

Jill Russo Foster, a financial coach and author of Cash, Credit and Your Finances: The Teen Years, also encouraged people to take control of their finances by making a budget. Russo described budgets as “the starting point” that will lead to increased savings.

“You know the big items, such as your mortgage or car payments,” Foster said. “It’s the holes in the budget that get you in trouble. It’s the things that you don’t realize that you are spending money on that are the problem. It’s the little things that add up.”

Ideally, she added, you want to change your habits so that you could maintain your lifestyle but spend 10 percent less.

Foster also described the importance of having stellar credit. This could be obtained, she said, by paying bills on time and keeping a balance on credit cards that is no more than 30 percent of the card’s total limit. “This is not the time to max out your credit cards,” she said.

Likewise, if you are planning to buy a house in the near future, Foster said that it’s not a good idea to open up new credit cards. Contrary to what many people think, having credit cards is a good thing.

“Throw it in the refrigerator if you’re afraid that you will use it, but don’t close out your account,” Foster said. “Having long-term credit cards show that you can handle it regardless of what the economy is like. You have to learn to act responsibly, which is what this whole seminar is about.”

Wexler, acting as the seminar’s master of ceremonies, as well as its keynote speaker, pointed out that change happens in “small steps.” However, she also added that “The enemy is complacency.”

She described in detail her own journey of moving from owning her own law practice to essentially taking on two new businesses in the radio broadcasting industry.

“I am now responsible for creating a really fabulous show that people want to listen to, and selling advertising and marketing the show so it’s a financial success, too,” she told the audience.

Wexler recently wrote and published with her mother, Gloria Kaman, and sister, Jill Zarin of “The Real Housewives of New York,” what is becoming a best-selling book, Secrets of a Jewish Mother.

On Tuesday night, she credited her mother, who was in the audience with Wexler’s father, for instilling in her an entrepreneurial spirit.

“My mother taught me that women need to be financially independent,” Wexler said. “We must pass this along to our daughters.”

Also referring to family members, Dr. David Carboni, a certified financial planner and expert on retirement issues, spoke about the need to have an up-to-date will, durable power of attorney, health care representative and appropriate life insurance beneficiaries in place.

Vivian Werner, of Stamford, said that all of the speakers made interesting points. She was initially drawn to the seminar for its opportunity to network. Werner recently got laid-off from her marketing manager position at IBM after 30 years of service.

As a single woman, though, Werner explained that she has already “done a lot of work on my finances.” In fact, she used money received from IBM’s final package to pay for tuition to an interior design program. Werner’s goal is to open a marine upholstery and canvas business, she said.

And, referring to Giletto’s advice about using a financial planner, Werner said that she is presently working with someone she trusts.

Giletto — whom Werner described as a “dynamic speaker” — stressed the importance of letting one person get to know your entire portfolio.

“Everyone sitting here today is long-term investors, even if you think you are more short-term,” Giletto said.

Larry Holderman, president and chief executive officer of Mutual Security Credit Union, was pleased with the seminar’s turnout.

“Providing information to the people in the communities that we serve is a large part of what we do,” he explained.

Is convenience hurting your wallet?

Yes, we all want convenience We all work, have families, a household , and we all want to do it all, but there is never enough time Convenience saves time and that’s of huge importance to us all But look at it from the wallet side convenience can cost more money.

Can you have convenience cheaply? If you’re willing to plan, yes! Here are a few examples:

Pizza night: Who doesn’t like to have pizza delivered to the house But, how about a store-bought cheese pizza at $5.00 that you bake at home versus a delivery pizza at $10 (plus the cost of delivery and a tip).

Fruit and Vegetables: Pre cut fruits and vegetables are more costly than the actual item If you don’t like to cut them up yourself, choose fruits and vegetables that are easy to eat without cutting.

ATM machines: I know many people who take out $20 today to buy lunch and then another $20 tomorrow when they are at the store again If you are using an ATM that isn’t free this all adds up How about planning for the week and making one withdrawal at your bank’s machine That way there are no ATM charges.

Books, music and DVD’s: Convenient to buy, rent and/or download for a small fee But, did you know that you can borrow these from your local library at no cost?

All these little amounts add up This could be the difference between having a savings account versus living paycheck to paycheck.

Trust me – you need to see where all the little money is going and start to make conscious choices about whether to spend your money or not Convenience saves you time but it might be costing you more in the long run.

If You Can’t See Your Money, You’ll Spend More

Don’t let your bank profit from overdraft fees! In 2009, it’s estimated that banks earned $20 billion (yes, with a b) in overdraft fees Transactions from ATM machines, debit cards and reoccurring bill payment transactions are mainly responsible for record overdrafts These are invisible money transactions because you can’t see how much you’re spending or how much you have left in your account.

With the new Credit Card Act of 2009, things are changing.You will not be able to automatically overdraw your bank account.Instead, your transaction will be declined.But, that information may come too late to save you from difficulties with creditors and merchants.

The only way to prevent overdrafts is to keep good financial records You must know how much you have available at any given point Better yet – use cash According to studies, people who use actual cash spend 20% less than using other forms of payments That’s because they can see how much money they have left after making a purchase If you choose to use cash, use larger bills The larger the bill, the less likely you are to spend it It is so much easier to spend $5, $10 and $20 It doesn’t seem like much if you spend $20 in 5 different stores But if you have to break a $100 bill, you will have a true understanding of how much you’ve spent.

If you still want to use invisible money, and you aren’t going to track your account, you will have to opt-in with your bank to have your transactions pre-approved Remember that you will still have the fees associated with overdrawing your account.Those fees are typically over $35 for each transaction.

Spend wisely by avoiding fees Avoid fees by keeping good records or by using cash Overdraft fees are a total waste of your hard earned money.

Cash Savvy Kids

Are your kids cash savvy? Should they be? Here are some things to think about:

High debt levels are taking their toll families and our youth!
As many as 65% of graduates are moving back home.
Scary that both kids and adults have committed suicide over credit card debt and financial matters!
Your children could have a healthy marriage later if you taught them to be financially smart early in life.

Kids need to learn about money BEFORE they get into financial trouble! Join me today at Cash Savvy Kids, the free teleseries for you and your kids.

Jill Russo Foster

Take 5 Minutes Each Day to Improve Your Finances

One little step each day may be the answer to your finances being in order Are you the type of person who procrastinates about your finances? Do you dread the thought of addressing issues? This is your solution.

Take 5 minutes each day and do something to better for your financial picture These are some examples of how little things can add up Make a call to your credit card company to question a charge that you are unsure of Call and cancel that unwanted service that you are paying for to save you money on your bill Make that appointment to take that class Spend 5 minutes filing your receipts so that you’re able to easily balance your checkbook when the bank statement arrives Open that high interest bank account so that you earn more interest on your money Set up the automatic deduction so that you save money on a regular basis.

I personally called and cancelled a service that I wasn’t using on my phone bill I have registered for a driving class that will lower my auto insurance premium I called a doctor’s office to question a charge instead of just paying it without thought These little steps took me less than 5 minutes each We all can find 5 minutes in our day to address these issues that get put off.

These tasks may seem overwhelming all together But if you do one each day, your financial picture will improve and you will be taking care of your finances and saving money.

How to Avoid Bank Fees

Banks make their money from the fees they charge you the customer Your goal is to not pay these fees, so that you keep more money in your account For 2010, I want you to avoid the following bank fees:

Checking account fees These fees can be avoided all together so check with your bank Typically banks will waive their fees if you have a savings account with the bank and they can link the two accounts together Some will ask you to have a deposit direct deposited to your checking account to avoid the fees Ask your banker and then do what they say to avoid this fee.

Uncollected Funds When you deposit a check, the check has to become available (the funds go from one bank account to yours), before you can use that money Uncollected funds occur when you attempt to use this money before it is available This will cause an uncollected funds fee to your account You need to check with the bank or to check online to see what your available funds balance is before using your money.

Non-Sufficient Funds This is when you write a check, withdraw money from the ATM or make a purchase with your debit card for more money than you have in your account If this happens the bank will charge you a fee for this transaction (you could incur this fee for each transaction that goes through your account) You need to know how much is in your bank account to avoid this fee.

All these fees are money makers for the bank and it’s to your best interest to avoid them and keep your money for you Keep good accurate records and you can eliminatethem.

Free Checking Accounts May Not Be Free

Question: Is my free checking really free? If so, how does the bank make money?

Great question Yes, there are free checking accounts as long as you meet the banks requirements These are typically a minimum balance in the account, direct deposit to the account or a certain number of debit card transactions It’s your responsibility to know what you can and can’t do according to your banks requirements so that you avoid these fees.

Banks make their money on the fees they charge their customers The checking account can be free, but the other optional costs are not These optional costs can include overdraft fees for either writing a check and/or using your debit card for more money than you have in your account, uncollected fees for using the money in your account before the deposited funds are available to use, stopping payment on a check that you have written, purchasing bank checks (money orders, certified checks) or using an ATM from a different bank All these fees add up.

There still could be more fees If your transaction is not honored, then the person or company you did the transaction with incurs fees that they may charge you too That ATM that you used from the different bank may change you a fee as well The most cost effective way to save your money, is to keep accurate records (checkbook records with a ledger or software) so that you know how much money is in your account at all times and to never run short on cash so that you have to use the most convenient ATM and incur a fee A little planning on your part can save you money.

Hidden Fees in Foreign Travel

Going out of the country? If so, there are hidden fees to address before you go. Foreign transaction charges can turn an affordable trip into an overpriced nightmare.

If you plan to use credit, you should know that most credit card companies tack an additional percentage on purchases made across the border or overseas. MasterCard and Visa start at 1%, Discover at 2% and American Express at just under 3%. These hidden fees can ruin your travel budget.

There are credit cards that don’t charge a foreign exchange fee. Check with your credit card company. It might even be worth it to apply for a new card.

If you plan to use cash, watch the exchange rates. Airports usually have the worst rates. You’ll probably get the best rate if you can buy foreign currency at home – that way, you’ll already have foreign currency with you when you arrive. Do your research.

Using an ATM in a foreign country could cheaper than an exchange – even free – if…. your bank is international or has foreign partners. Check with your bank before you go. Remember to ask how many ATM machines they have and where they’re located.

For an inexpensive and hassle free trip – plan ahead.

Can You Spend Ripped, Burned or Damaged Cash?

What is damaged or mutilated currency? What can you do with it?

Damaged and/or mutilated currency is paper money that has been damaged in a major way. I’m not talking about money that’s faded and a little soft from being washed along with your jeans. This is paper money that has been ripped, burned, or even partially digested.

Let’s say you have a piece of a $100 dollar bill. You can’t spend it at the store, so what can you do with it?

If you have more than 50% of the $100 bill, you can exchange it for a replacement. Why? Because that means you probably have at least one full serial number and a portion of the second. Don’t bring it to your local bank branch – they won’t accept it. You have to either mail it, or bring it, to the Bureau of Engraving and Printing in Washington, DC. If you mail it, take precautions. Ask about insurance at your post office or other delivery service. If you go in person, bring ID.

If you have less than half of the $100 bill, you may still be able to exchange it. The treasury will consider your claim if you have other documentation to support your loss.