Jill Russo Foster

Tips for Successful Personal Finances

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The Holidays Are Here

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The holidays are here. Yes, with many retailers starting there holiday shopping sales early this year, are you ready?  This is a good thing, if you need to stay within a budget, start early.

First, make a list of all the people on your holiday gift list, then see if you can make changes.

Could you give a family gift instead of individual gifts?

Can you go in on a gift with someone else and share the cost?

Would a name draw work for the family party? With a name draw, each person buys only for the person whose name they drew. It’s fun and inexpensive. Do a separate drawing for the children so each child receives one gift and gives one gift. Make sure to set a dollar limit that everyone can afford.

Once your list is complete, set a firm amount for each person and don’t go over. The grand total of all your gifts should be a realistic amount that you can afford. Be honest with yourself and don’t overspend.  You’ll regret it when the bills start coming in.

When shopping, keep your list of people and your budget amounts with you. Check the sales fliers now because holiday sales are already starting. Big retailers are also adding holiday layaway plans.  Layaway plans work great if you know your budget. They allow you to make affordable payments without using a credit card.

You could also try giving gifts that don’t cost a lot of money. Service coupons are a wonderful gift. For example, you could cater a meal for a family that has a busy lifestyle. Try an inexpensive but meaningful gift, like a photo CD or memory album. The choices are endless if you take the time to think of what each person might enjoy most.  This year with being at home more, I have come up with some great gift ideas that are meaningful, but not a budget breaker.  I can’t tell you what they are as family members ready my newsletter.

The most important thing this holiday season is to have fun and enjoy your time together. Create new memories instead of new debts.

2020 A Year For The Records Books – Part 2

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This is part 2 of 2020 A Year For the Record Books – click the link to read part 1.

We must learn to adapt our finances to changing times.If you live in the tri-state areas, we had a hurricane Esaias.  Many people had damage to their homes / property and lost power for days.  Having to replace all the food in your fridge and freezer is a huge expense, that you probably weren’t expecting.  Look into reimbursement from your renter’s / homeowner’s insurance (and possibly the power company) to ease your budget.

Spending more than you have. With more time at home and less going out, did you find yourself spending more online than your budget allows?  Just because something is a good deal, doesn’t mean you need to purchase it.  As they say, you don’t need to keep you with the Jones’s.

Credit card debt.  You know that debt is the enemy of your budget, so carry a balance month to month on your credit card in not good. Yes, I know that right now creditors are working with you if you are having trouble payment your debt.   But think long term, what is it costing you?  Make a plan to payoff your debt in full each and every month, so this won’t be an issue with your finances.

With the holidays just around the corner, that will be another big expense for many.  Think about what your plans are and how they may need to be adapted to fit your finances.  Another words, don’t overdue it.  Now is the time to make a plan and stick to it.

Now that I have shared with you some of the ways you might be accumulating debt, what are you planning on doing (or have done) to stop debt from accumulating?

2020 A Year For The Records Books – Part 1

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2020 has been a year unlike any other – from job loss / furloughs to pandemics to hurricanes.  All of this has signaled changes in our lives, not only in what we do (or don’t do), how we live and how it affects our finances.  We must learn to adapt our finances to changing times.

For many this is a year that you started (or continue) to accumulate debt.  Not a good thing!

Let’s first talk about all the ways that you may be accumulating debt:

Not having an emergency fund.  You have heard me preach over the years about having a savings account for life’s what ifs.  This was the year that many of us needed to fall back on our emergency savings as jobs were lost / furloughed and the unemployment system was overwhelmed, and payment were delayed.  Your emergency savings was the way to get you through in these uncertain times.

Adapting to change (the new normal). As your life changes, so should your finances.  Meaning that if you have job loss / less income coming in, you need to tighten your belt and cutback on your expenses.  Answer these two questions.  Think what can I get for free that I have been paying for?  Think what can I reduce or eliminate in my monthly expenses?  Want more information, check out my past newsletter, Budgeting By The Numbers.

Eating out / take out.  Food is one of the biggest expenses in a family’s budget.  Typically, when I coach a family, it the food that is an issue with their spending.  How much is it costing you to eat out, pick up take out, grab a beverage versus bringing and cooking at home?  Track this and see where your family stands.

Reimbursable costs.  In these uncertain times, you may have more medical than other years.  Make sure to utilize all your options such as FSA and HSA accounts, in network providers, etc.  I was speaking with someone who hadn’t submitted any expenses to her FSA account.  She potentially could be leaving a lot of money on the table by not timely submitting her expenses for reimbursement.  

Check out next week’s newsletter for part 2.

 

Simplifying By Making Choices

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This stay at home time, we have made changes to our routine.  Bills are still coming in and some are higher, but income stayed the same or was even reduced.  Something had to change.

For our electric bill that went up (even more now with summer air conditioning), we unplugged.  Think shutting the strips on the TV ‘s when not in use, unplugging the computers and printers when not is use, unplugging the kitchen appliances, and more.  By doing this we have reduce our bill by about $15 a month.  AARP has an article on lowering your electric bill during summer.

Previously, we have reduced our cable bill, by reducing it to basic TV service and internet.  Now we add whatever paid service that works for us – and only one at a time.  We have smart TV’s and can access programming through the internet apps that are free.  We use our local library’s digital collection for free.  Right now, we are using Sling TV for other channels.  In total, we spend about $110 a month total, by reducing the cord.  Hopefully, one day we can totally cut the cord!

We have also not renewed most magazine subscriptions and cancelled memberships.  For our warehouse club, I had to go into our profile and uncheck automatic renewal.  If you do this, remember to check that you are not being automatically being changed when you shouldn’t be.

Simplifying Home Improvements

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If you have followed my blog, you know that we do projects around our home all the time.  We typically a yearly list to do.

With more time on our hands and being a homeowner, means there is always a project / improvement that needs to be done, some by us and others by professionals.

Our first project this year was to replace the grass between the road and sidewalk with plants. Delivery trucks parking on the sidewalk and the salt from the winter storms always made this grassy area a mess.  Our hosta plants needed to be split, so this solved the problem.  We removed the grass and placed weed block down, added the plants and completed it with mulch.  No cost to us, just labor over two weekends.

Next, we starting to replace fence panels. We are still doing this ourselves, by replacing a panels or two when we have a few hours and the weather cooperates.  We’ll do what we can and at a slow pace.  It sounds easier than it is, because it’s not only replacing the panel, we need to breakdown and transport the old panel to the town’s transfer waste station.

As you know, home improvement projects and maintenance are easier to do now versus having a major emergency home improvement project later.

Simplifying By Reducing

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With more time on my hands, I got to thinking about what I could reduce or eliminate to save money.  Honestly, I always think about this.  For me, it comes down to spend that money now on something or save it for later.

What items do I purchase that I could use another option?  Here are some of the things I have changed in our house:

  • Swapped out a magnetic white board monthly calendar for buying a yearly calendar.
  • Used my cell phone sharable calendar instead of the paper planner.
  • Changed from plastic containers to glass jars and from plastic bags to silicone reusable bags.
  • Using essential oils to make my own cleaners versus buying individual cleaners for parts of my home.

How much can you save by making small changes?

Simplifying Our Entertainment

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Being home meant more time on my hands.  For me, this could lead to more spending and I (or my budget) wasn’t going to allow that.

For us, we have reduced our cable TV to basic and have one streaming service.  That’s all we have and I wasn’t going to pay for any more.

We have kept ourselves entertained with free stuff.  We have watched movies on the channels that we have.  I was able to watch the movie Hidden Figures that I had wanted to.  I highly recommend it if you haven’t watched it.  We explored a variety of free services. We have always used Hoopla from the library for free movies. We’ve toured places what we haven’t been to, such as virtual tours of museums and national parks.  I’ve read many books that I was planning on reading that I never got to.  We broke out our board games and played for entertainment.  We have explorer new locations for our daily walks.  All this without spending a penny.

If we can do this, you can too.

Simplifying By Opting Out Of Mail

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This was another biggy for us.  Way too much mail.  This needed to be simplified.

I do want all my bills in a paper format.  Personally, I keep them to see what’ happening – so I want this mail.

But I didn’t want a lot of the other mail – catalogues and magazines.  It seemed to me that if I made a purchase from a company then I would not only get that company’s catalogue list but on other’s too.  I am not going to kid you, this was a lot of effort to get off mailing lists.  You can visit my resources page to find that companies that you can opt out from.  But I took it s step further and called all of the catalogues and requested that I be removed from there list.  Yes, it’s time consuming but it has worked.  We simplified by eliminating these catalogues thus reducing that amount of mail that comes, reducing the temptation to make a unwanted purchase and saving trees.

As for magazines, we didn’t renew our subscriptions and let them run out.  I wasn’t finding the time to read them, so they were piling up creating clutter (not a good feeling).  Now, if I want to read a magazine I can check out the magazine through my local library and read it online.  RB Digital from the library works for us.  Again, we reduced that amount of mail that was coming in, reducing the clutter from the unread issues and saving money by not paying for the subscriptions and savings the paper.

We receive less mail now.  In fact, there are days with no mail at all.

Saving Money On Your Electric Bill

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Are you finding that your electric bill is going up?  With the past few months of being at home, ours has.  So I was bound and determined to reduce ours.

We have started to unplug electronics all the time.  We shut the strip on the TV when not is use.  We unplug the computer and accessories when we are not using them.  We have cleaned the back of the fridge to make it run more efficiently.  We are doing air drying with the dishwasher cycle.  We wash as much laundry as possible in cold water.

What are you doing?

For more suggestions, check out this article.

Financial Literacy Month – Tip #29

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Overdraft Fees

Here’s the tip from December 20 – Money Drains month:

This is a pet peeve of mine. Overdraft fees are a waste of your money and efforts to improve your finances. Knowing where your finances stand at all times will keep you from overdrawing your checking account and incurring this fee.

To purchase a copy of either of my books Thrive In Five: Take Charge of Your Finances in 5 Minutes a Day or 111 Ways To Save

#JillRussoFoster  #30WaysToSave