Personal Finance

Forgive and Move On – The Wise Money Path

I caught up on my emails last week. Some were personal, some were business, and some were newsletters. I love reading email newsletters – I subscribe for much needed inspiration, and to receive free tips, recipes and deals.

As I was writing this newsletter, I had just read Cheryl Richardson’s newsletter on forgiveness. You may be wondering what forgiveness has to do with finances.

Many of us have struggled with our finances at some point in our lives. We made mistakes because we didn’t know how to manage our own money. Why is that? It’s partly because finances aren’t considered a polite topic of conversation. It’s unthinkable to ask questions about a topic you never hear anyone discuss freely and openly. We’ve had to learn about money as we go, and that means learning from our embarrassing mistakes. Those missteps may have cost you dearly – both financially and emotionally.

Forgive yourself and move on.

Now is the time to forgive ourselves, and others who have hurt us, for our financial missteps. You may need to forgive the person who never repaid the money you loaned them, or you may need to forgive the person who damaged your credit because they reneged on a loan you cosigned. You may have to forgive yourself for overspending in the past and now you wished you had saved that money instead. You cannot wave a magic wand and change the past. Somehow you have to find a way to move forward. You do that by forgiving yourself.

Forgiveness is not an easy process.

You can make the decision to forgive, but it takes some work to actually let go of the shame, guilt, anger or regret that is keeping you from moving forward. It’s a process. I would encourage you to read books or speak to an expert about the path to forgiveness so that you can get closure in your life, move on, and claim the wisdom earned from experience.

Resolve that today is your first day on the Wise Money Path and that you are going to forgive the mistakes you made while you were on the spend-thrift freeway. You are going to take expert advice when you need it and make informed choices that work best for you and your family from now on.

Remember that I support you in your journey.

A Facebook Group for Your Goals

Join me for the month of January for Taking Charge of Your Finances. Many people want to have more in savings, to spend less, to pay down their debt, save for their children’s education, save for retirement, buy a home, and more. This will be your chance to connect with other like minded people, and get your New Year’s resolution off to a solid start.

completely-free

We will run the private group through Facebook. You do need to have a Facebook account to join. Simply click here -> www.facebook.com/groups/takecharge2014/ then click the Join Group button, and we’ll approve your membership.

You can participate in this group from the privacy of your home, and on your own schedule. I’ll post questions and assignments for you, give you ideas and resources to use to help you succeed in your goals. In turn, you can share as much as you want about your goals and finances, so you can discuss your challenges and learn from one another. This is a closed group, which means your posts will only be visible to each other, and not to your Facebook friends.

Your first assignment

We’ll start out with you telling us what personal financial goals you want to achieve. The goals can be short term (something that you want to complete in 2014) or a long term goal that needs your attention in 2014 if it’s going to continue over the years.

We will limit the group size so make sure you sign up today!

https://www.jillrussofoster.com/4625/

Living Within Your Means

live-within-means-chalkboard

Whatever your goals are, you have to learn to live within your means. That means that you cannot spend more than you earn. For every dollar you bring in, you need to spend less than a dollar so that the remaining amount can be saved.

Go back to the numbers you did earlier this month. Are you including money for savings? If not, you need to figure a way to do that. In a perfect world, you need to have savings for emergencies, savings for retirement and savings for wants. Today, think about how you will get that money to save.

Make it rain! Spread the word about financial literacy

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April is Financial Literacy Month and I want to spread the word so that everyone can improve their finances.

For the month of April, we will be posting daily tips from my book Thrive In Five: Take Charge of Your Finances in 5 Minutes a Day on Twitter, LinkedIn and my Facebook Fan Page. We need you to share and repost to your connections and friends so that these simple tips spread across the internet. My goal is to increase my exposure and increase the number of people who subscribe, so we can ease the financial confusion that holds so many people back.

As new people subscribe to my newsletter, we will be asking them to tell us who referred them. Remember to ask them to use your name. The top person who gives us the most new subscribers by April 30, will win a free 30-minute coach session with me. It’s that simple. So tell your friends, family, co-workers and everyone else you know so you can increase your chances to win.

First, remember to connect with me through social media – Twitter, LinkedIn and Facebook Fan Page, or you can forward this blog post for them to sign up for the newsletter. Thank you for spreading the word.

If you want an additional way to win a free coaching session with me, tell us which tip has inspired you to make a change in your finances. What have you added to your routine, or what have you stopped doing? Maybe you read that you could keep the same routine if you just did things a little differently. Tell us your story in a few sentences that we can use as a testimonial. Don’t worry; we will only use your first name. We will select one quote randomly from all submitted and that person will also win a free 30-minute coaching session with me during the month of May.

We want everyone to have some extra cash this April, so let’s make it rain by sharing financial information that really works.

You’ll have to prove it. Make sure you have the paperwork.

Things that mean very little in a court of law:

Your memories
Your mother’s memories
Your friends opinions
Photos of you smiling with some of your stuff in the background.

What am I getting at? I want you to face the fact that paperwork is part of life.

You can have a lot of wonderful things without legal documents: love; a nice meal; a beautiful sunset. But, you can’t get legally married, register the birth of your child, or insure your home without them. So, if you’re basking in the glow of a beautiful sunset in your own backyard, enjoying a barbecue, and surrounded by family and friends – there was paperwork involved.

Don’t slack on it. Strive to keep it up-to-date on an annual basis. Neglecting your paperwork can be just as bad for your family life as neglecting a loved one’s birthday.

Go through your files and check up on your:

Life insurance
Long Term Care insurance that may combine with life insurance
Retirement accounts – IRA’s, 401K / 403B, Roth IRA’s
Savings bonds
Bank accounts that are payable on death
Investments (stocks, bonds etc)

Legal documents are too often overlooked and the results can be devastating. Who’s in charge of your stuff if you suddenly pass away. If you haven’t updated your paperwork, you may have left everything to an unreliable friend, or a deceased parent instead of your spouse or adult child. In this case, I suggest that you name a second beneficiary. For our wills, we even have a third beneficiary. My attorney suggested this and it’s terrific. When my father passed away, I didn’t have to update my will. My second choice was already in place. How easy was that?

I know you’re busy, but when you, or your family, are dealing with a major life crisis, you won’t want to spend time thinking about these things. Make a habit of reviewing your important documents on a regular basis so your loved ones will receive the things you labored to give them.

If you need more convincing, check out this ABC news story

Balance Debt Repayment with Savings

I get asked all the time for advice on credit card debt. We all know that credit card debt is the enemy of a monthly budget. Your money has better things to do than paying down finance charges and interest. But, if you are currently in debt, then you need to do something about it.

Most of my clients want to know the best way to pay off their credit card debt. Most people ask me if they should put all their resources into debt repayment. My answer to that is “no”. There is one thing that I believe everyone should do while paying off credit card debt – build an emergency savings fund.

You are probably saying that you have no money to save! I’m telling you that you need to find the funds. Your credit card debt may seem like your biggest priority, but if you take all your extra money to pay down debt, then you will find yourself running up credit card debt any time an unbudgeted expense pops up. These unexpected budget breakers are such regular events that we should learn to expect them. Your car breaks will need to be replaced, an appliance will need a new part, the roof will need new shingles. It’s inevitable. I could go on, but you get the idea.

You need to find a balance in your budget with savings on one side and debt repayment on the other.

The easiest way to build an emergency savings account

Each pay period you should have some money automatically transferred from your paycheck to a savings account. Start out with a small amount on a regular basis. That way you won’t feel the pinch and you will be setting aside money to use when something unexpected happens so you won’t have to use your credit cards.

A good way to pay off debt

To pay down your credit card debt:

Make a detailed list of each credit card, the amount owed, the credit limit, the interest rate(s) and minimum payment amounts
Look at your options – can you transfer the highest interest rate debt to a lower interest credit card (maybe you have room on a credit card you already have)?
If you are considering opening up another credit card, please think before doing so. There a number of factors that are involved here . Check my website www.JillRussoFoster.com for the five factors that make up your credit score.

On Monday, I will talk about paying down your debt.

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 http://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).

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.

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.