Tips for Successful Personal Finances
That’s a question on a lot of people’s minds. Should I take it early at 62 or at my full retirement age or wait until I am 70.
Well wouldn’t it be great if you had a crystal ball to get the right answer for you. Well, we don’t and you want to make the right decision for your situation.
Here is an article from the Motley Fool that could give you some information that may help you make a decision that’s right for you.
Emergency savings are for when your car breaks down. It’s for an unexpected medical expenses. It’s for covering your bills if you’re between jobs. It’s for unexpected home repairs. An emergency is something that must be taken care of right now or you won’t be able to get to work, have a place to live, or when you might have to choose between medical bills and utilities.
What it’s not: a savings account for things you think you need. No matter how much you think need to book a cruise, a nice vacation is a want. You will survive if you vacation at home with trips to the local beach. You will also survive without a smart phone, or cable TV, or a Kindle. You get the idea.
Once you have an emergency savings equal to one year of your expenses (yes, I said one year), then you can start saving for the fun things you want in life. Today, plan on how you are going to start saving for emergencies. Set up a regular savings amount from your pay that automatically goes to this account.
I always hear that there is never any money leftover to save. I used to think that way too until I implemented an automatic savings plan where I pay myself first. Each pay period, I have money automatically taken from my check and put into my savings. It’s as easy as that!
Setting up automated savings puts money into your savings first – either having your employer split your paycheck into two accounts or doing this through your bank. Once you set it, it’s done. No more saying “I don’t have money to save”.
Start with a small amount and increase it yearly or when you receive an increase in pay. $5.00 a week will get you $260; $10 a week will get you $520.
Once you get this set up, you might want to think about the different types of savings you will need in your life. Everyone needs an emergency savings for unexpected expenses. In addition, start think about your goals that need funds – auto, children’s education, security deposit for an apartment, down payment for a home, retirement, travel plans and more. Set up a savings account for your specific goal and set up an automated amount so that you can reach your goal in your time frame.
It’s never too late to start saving for what you want. You can achieve it if you want to.
This is a favorite of mine. I am always looking to reduce the cost of things. Here are some ways that we have reduced our expenses:
What bill bothers you the most? Have you looked into ways to reduce or eliminate it? Have you checked out the competitions pricing? Have you asked your family and friends for suggestions?
This is an important lesson that we all have to learn with our finances. If we spend less than we earn, we have money to save and can pay our bills in full each and every month. If we spend more than we earn, we will incur debt. Debt creates a future obligation which is another expense for our budget.
Not all debt is bad debt, but debt can be the enemy of your budget. Good debt is paying for education that is going to give you a better job / career path. Bad debt is I want this now and I don’t have a way of paying for it, so I will use my credit card.
How do you know if you are living below your means? You need to track your spending for at least a month. Track your net income and all your expenses to see if you have more money coming in or more going out. This is the only way to see where your money is going. You might be surprised where your money is going. Once you see where your money is going, then it’s time to determine if you want or need to make changes to your expenses. It’s not always about reducing or eliminating your expenses. Sometimes the choice is that you need more income. You will never know until your see where your money is going.
Life is always unpredictable. Just when you think you are all set with your finances, here comes an unexpected expense.
Here are some of the unexpected expenses we have incurred:
Ruptured toilet feeder line damaging the bathroom and bedrooms floors
Car breakdown that needed immediate repair
Unexpected high medical bills that insurance didn’t cover
Pet / Vet expenses
Unexpected loss of income / non-payment from client
So, what do you do when something happens to you and your still have bills to pay? Yes, you can use credit cards as an option. It wouldn’t be my first choice, as this creates another bill to pay. My choice would be to have an emergency savings account to have the funds to pay for what life sends your way.
Experts agree that you should have 3 to 6 months of your income saved in an emergency fund. Personally, I think you should build up to a year in an emergency fund. If you want to start to save, see my post Save for Your Future.
How do you feel about your finances? Are you feeling good about where you are today? Do you wish you had more savings? Do you wish you had less debt?
Be honest with yourself, take a financial check up and ask yourself the following questions:
Do you have a great credit score?
Are you insured (home / apartment, auto, life, disability, etc.)?
Did any of your answers surprise you? Is there any area that you want to delve into?
This is American Saves Week and I will be writing about a different topic each day, so check your inbox or social media. If I don’t cover the area you want more information about, please visit my website www.JillRussoFoster.com to read more about what personal financial information you are interested in.
As we are at the start of the new year, I wanted to share one of the things I do each and every year. 
I copy everything in my wallet. Many years ago, my purse was stolen on a Saturday night. I had to recall every item in my wallet. Never again! The thief charged hundreds at the gas station and even more at a local restaurant. No, I wasn’t responsible for any of the charges, but it was still a pain to close out accounts, open new opens, change all the automatic charges that happen to my credit card.
Now, I make a copy of all the items (drivers license, credit cards, medical cards and anything else). To make sure you don’t eave items in the copier, I only copy the front of each card. Then with the space in between each item, I write the phone number and website of the item. This way you won’t leave them in the copier. This may seem old school, but I can’t tell you the times I have referred to this list.
Also, here is a link to an article from AARP about what not to keep in your wallet.
Welcome to 2022!
It’s time to think about your finances. What are your financial goals for the upcoming year? Are you looking to save for an emergency fund, retirement, a new home or home improvements, education, an emergency fund?
There is so much to accomplish and never enough money. Well, that is how I used to think. But not anymore. 
I started by taking small steps to achieve my financial goals. My first goal was to create an emergency fund of $5,000. Sounds overwhelming, but I broke it down into small steps:
$5,000 in one year is $416.66 a month – $5,000 in one year is $96.15 a week – $5,000 in one year is $13.70 a day
Next, I needed to find this money in my budget. What could I cut back on or do without? It turns out it was multiple ideas to come up with this money. We spaced out haircuts, we stopped buying beverages for work (we bring our own), we trim our dog’s nails ourselves and more.
Lastly, we automated the savings. Each paycheck we save $100.00 into our emergency savings automatically. It’s set and done.
Now we have the emergency fund we need to be prepared for whatever happens in our life.
Please know that it’s never too late to start to save for your goal. Obviously, the earlier you start the better off you are. But not starting is a mistake. Make a plan and decide to start now. You too can achieve your financial goals this year.
Getting your finances ready for the upcoming holiday season. With two months left to the year and all the news reports to shop now, what can you do?
First let’s start with your list. Who are you planning on making purchases for? 
Next, let’s take a look at your budget. How much do you have saved? How much can you afford to spend? Remember that the season typically includes more than gifts. You may have opportunities to attend gatherings, participate in events, and more. Don’t forget to include this in your budget too.
How is it looking? Are you all set and ready to shop? Or do you need to tweak your plan?
Some of the things we have done to reduce our spending is to cut back on gift giving, give one family gift as opposed to individual gifts and have get togethers instead of gifts. Take your list and think outside the box for what is right for you.
This is not the time to open a new credit card account, because you can get a discount. This is will lower your credit score with a new inquiry and new credit line. Probably not in your best interest. Plus, you don’t want to start off 2022 with holiday debt added to your budget.
Make a plan and decide what is right for you and enjoy the holidays.