Organization & Planning

Get Ready for 2014 with Smart Goals

What are your goals for 2014? Let’s see if I can guess… is it one of these?

Get organized
Lose weight
Eat healthier
Exercise more
Save money
Get out of debt

Almost everyone wants something on this list. Why do we keep setting and forgetting the same goals every year if these are the basics of a healthy lifestyle? Let’s step back and talk about goals in general.

All goals should be S.M.A.R.T.

Specific
Measurable
Achievable
Reasonable
Timely.

Your goal to “Save more money” is smart, but it’s not S.M.A.R.T. With a general goal, you’ll never know how well you’re doing. “Saving more money” could mean adding an extra $1 to savings. It’s not going to do much for your budget in the long term.

But, if your goal is to “Save an extra $500 by the end of 2014”, that’s S.M.A.R.T. You have a specific amount, it’s reasonable, you can track your progress and make adjustments to reach your time limit.

Back to 2014 goals – here are some resources that I use to make my goals a reality.

A Scanner

I’ve been tackling “getting organized” as a goal for a few years now, but I’ve been using the S.M.A.R.T. method, so I organized different items each year.

In 2012, I scanned all of our medical records.

For 2013, I scanned and saved all my recipes. My grandmother and mother, being great cooks, left me lots of family recipes. Plus, I had a cookbook collection, and lots of magazine and newspaper cutouts. So far, my scanned recipes have been a big plus in my life. They’re easy to find and share, my cupboards aren’t stuffed with paper, and we were able to donate 75% of my cookbooks.

For 2014, I am scanning all the family photos, slides and movies. This is going to be a big project for me because I’ve become the archiver of family photos as relatives have passed away. I have to admit that I have started a little early with my new all in one printer / fax / scanner.

Websites I’ve used to meet my goals

TripIt.com is how I organize all of my travel plans in one place – airline confirmations, hotel and car reservations, tours etc. All the information is in one place and easy to access. It’s as simple as forwarded the email receipt to Trip It and it appears on your itinerary.

For my goal of getting healthier (making better food choices, eating at home more and fitting in exercise), I use LoseIt.com. It’s helped me with my 2013 goal of leading a balanced life and making more time for me. Part of my goal was getting to know the feeds I eat so I can make better choices. LoseIt.com helped me to keep track of my food and to stay balanced (like watching the carbs to protein ratio). The website and app lets you input a recipe and save it for future use. There is a section for exercise too.

What are your tips and resources to help you achieve your 2014 goals? We’d like to know what you do.

To really get your goals started for 2014, you can join my new Facebook group. It’s a month long class that will help you set realistic goals for the year ahead.

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

Learn more here

New rules for stopping robocalls

When you get a robocall, should you…

hang up right away
follow the instructions for removing yourself from their call list
try to get through to a real person, then shame them for calling when you’re on the “Do Not Call List”

Although “C” was tempting, I used to do “B” thinking that it was the most logical way to get the calls to stop. But the calls actually increased! How could that be?

It’s because some of these calls are from fraudulent companies who have no interest in following FTC regulations.

Like many of you, we’re on the Do Not Call Registry. (If you’re not, do this today at DoNotCall.gov.) It stops most unsolicited calls. The calls we do receive are from scammers like “Rachel from cardholder services” and the new “Life Alert” phishing scam.

While it does help to report these calls to DoNotCall.gov, you should know that some originate from outside the US, which makes it difficult for the FTC to prosecute them. It doesn’t help to try to remove your number from their call lists, because they don’t actually have a list. They’re just dialing random numbers hoping to get a live line. In fact, any interaction on your part could actually put you on a call list!

If you want to keep track of calls that violate FTC regulations, you can put in a formal complaint on the Do Not Call website or by calling 888-382-1222. We’ve started to do this. In fact, I did this yesterday as I received a robocall on my cell phone – which is against FTC regulations in every state no matter the circumstances.

Calls you shouldn’t report to DoNotCall.gov

Political campaigns
Charities
Companies that you do business with

Unless they’ve called your cell phone, it’s perfectly legal for companies to call you for these purposes. If you report them, you’re just wasting the FTC’s time, which is unfortunate around election time and the holidays.

While doing the research for this post, I came across some interesting tips for stopping the calls. Some people are suggesting starting your voicemail message with the three tones you hear when you call a disconnected number. Do you think the robocallers have programmed their systems to ignore disconnected phone numbers? I’m not so sure, but it’s a fun idea.

Let me know what you are doing to eliminate unwanted phone calls from your life.

I Created a Work / Life Balance on a Small Budget

This year my goal was to create a better work / life balance. Sound familiar? I know that others have tried it, and frankly I’ve tried before, too. This year I was determined not to fail. (Just like every other year.)

Well, we are in the 9^th month of the year and I’ve actually done it. My daily routine has been reformed. I’m still going strong on my first small action steps, and I’ve added more over the year. I didn’t go from nothing to full speed ahead. Instead I made little changes to clear the road and aimed for forward movement.

The first thing I did was to start meditating each morning. What I do, is get my iPod out and listen to a guided meditation. My mind is always racing on to the next thought, then the next thought, and so on. I need help so I can set aside my mental to-do list and work on relaxing instead. I’ve enjoyed meditations by Collette Baron Reid and The 21 Day Meditation Challenge from the Perfect Health series by Oprah and Deepak Chopra

Next, I wanted to get a grip on my eating and exercising. I still have my garden for fresh vegetables. There is nothing better than picking the lettuce and tomatoes from my garden for a salad and eating it that very day. Sadly, it’s Fall and the garden is winding down for the season. What will I do this winter?

With the help of my good friend, role model and inspiration, Vicki Heise of Live Your Health Life I tried LoseIt.com. It helps me track my eating and exercise. Most of the foods Dave and I eat are already programmed in by brand and restaurant – and I can add my own recipes. It’s a website and an app, so I can use it wherever I am – no more pad and paper for me. I check the calories and nutritional break down to see if I am eating too much of the same types of foods. The best news? There’s a free version.

Now for the exercise portion – I have always been a walker but recent vertigo attacks have made me nervous about walking by myself. Then I found a program called WalkWithADoctor.org. It’s a health program where you can take your walking exercise with a real, honest-to-goodness, right-there-with-you physician. The nearest location to me is Stamford, CT. I walk with two cardiologists for 45 minute sessions. This program has locations throughout the US. Now that the weather is getting cooler, it’s such a pleasure to be outside.

As you can see, I am moving forward with my goals and making lasting changes versus quick fixes. I’m not letting distractions or disabilities get in my way.

All the little improvements have come at a much slower pace than I’m used to. I make one small change, get used to it, then make another. That’s worked much better than the all-or-nothing, go-all-out-for-30-days-and-fail routine. And, I haven’t spent a whole lot of money. That’s good for the budgeter in me and it’s another step towards maintaining my work / life balance.

Cards Declined in Copenhagen: Lessons in Travel

In the last edition of my newsletter, you heard about our amazing trip and how we were able to pay for almost everything with points and some smart pre-planning. (You’ll see photos today).

Now, you will hear what didn’t work. This was big lesson for me.

To stay on budget, we used mainly cash. We even bought foreign currency before leaving home. We were able to purchase Crown, Kroner, Euro and Rubles at our local exchange in Connecticut.

But we knew we would want to use credit occasionally, so we called our credit and debit card companies to let them know where we’d be travelling and on what dates (as I’ve told you to do many times).

Imagine our surprise when our cards were declined in Copenhagen. We had dinner with friends and asked the restaurant split the bill between us – half on their card and half on ours. Ours was declined. We knew it wasn’t the machine because they processed our friends’ card first. We could see that theirs worked because the staff at the restaurant actually processes the credit card at your table using a portable machine.

We wondered if it was because we were using our US debit card with a pin. So we ask them to do it again as a credit card. It still didn’t work. The staff said that a lot of US credit cards are declined for some reason.

And, it wasn’t just the restaurant. We tried using the credit card when we checked out of the hotel. Again, declined! It was very embarrassing.

When we returned, I called the credit card company to ask why they wouldn’t accept our transactions. After a lengthy conversation, and several people, they realized that they couldn’t see any of the attempted transactions in their system. Fortunately, I kept the receipt as proof, but even with the evidence right in front of them, they still couldn’t give me an answer.

The mystery continues. Thank goodness for our American Express card. It saved the day.

Remember, no matter how prepared you are. Things can go wrong. Make sure you have a back-up plan when you travel.

Update: A big thanks to Heidi for giving us an explanation! Apparently, their credit card machines are programmed to accept cards originating from countries in the European Union – and nowhere else. I guess that makes things easier for Denmark, but not for tourists! Read her full comment below.

Lessons in Cheap Travel from an Expert: Me!

We just returned from an amazing trip to Northern Europe and, surprise, surprise – it didn’t break our bank account. How did we do it?

Transferable frequent flier miles

When we fly, we usually use one airline so our frequent flier miles are easy to use. But, our first destination was Copenhagen and our favorite airline doesn’t fly to Denmark. Lucky for us, the airline was in the One World Alliance so we were able to transfer our miles to another airline to receive free flights – we only paid the taxes.

We earned extra miles just by eating out and shopping

Our airline has a dinning program so you can eat out at participating restaurants to earn miles. The program is free. You just need to register your credit or debit cards. The shopping program works great for us. When we shop online, we start at their shopping website. Then use their links to access popular retailers. Between flying, eating out, and ordering online our frequent flier miles really add up.

We used our hotel points

Our flight got us in to Copenhagen a day early, so we had time to explore and meet up with a good friend. We stayed at a hotel and our lodging points covered the cost of both nights. Even better, we used extra points to upgrade to a room with access to a hospitality suite that served breakfast and late afternoon snacks.

We used timeshare points for the cruise

As some of you know, we like to take cruises. So, when we found a cruise that visited the Baltic regions of Northern Europe, we were really excited. Neither of us had been, so it was a first. We were so happy to find that we could trade our timeshare points for the cruise. All we paid were the taxes and port fees. We sailed to Tallinn, Estonia; St Petersburg, Russia; Helsinki, Finland and Stockholm, Sweden.

Yes, it took a lot of coordination and advanced planning…

But, our travel, lodging and cruise were covered – we only paid taxes (which were minimal). Of course we spent money for some of our food, entrance fees to museums, the tours themselves and souvenirs. But we saved money by walking, taking public transport, or tour transports where the only cost was the tip for the guide.

So, that’s my experience and my expert advice. You can travel without killing your budget!

That’s several more countries checked off our bucket list. Where would you like to go?

Why Financial Envy is a Waste of Time (Update)

You see this happen all the time. You are in a situation with other people and someone mentions his nice vacation plans. What is the first thing that pops into your head? Are you genuinely happy for him or do you automatically think about how much he’s spending (that includes jealous thoughts of the “he must be making more money than me” kind). You know what I mean.

But in the past few years, I have learned to stop comparing my financial situation with friends and family family (I’m not perfect but I am improving). I have come to realize that I am projecting my values and beliefs onto other people. What I think or believe about another person’s finances has no basis in reality. I am not in their shoes and don’t know what their situation is.

People spend money on things that are important to them. I know that some people may think I travel a lot. When one vacation ends, I am already planning the next. I personally always want to have a trip to look forward to. You might be thinking thoughts like “how can she afford it?” or “where does she get the money to travel?” You may even be envious. But you won’t know exactly how I make my little dreams come true because personal finances are just that – personal. .

Although in a few weeks,, I will shed some light on how we travel.

The other side of comparing your finances is the presumption that you are somehow morally better or worse than others. Grim tales of credit card debt are all over the news, often mixed with stories of foreclosure and homelessness. You may feel good about yourself because your debt is lower, but do you know why the person on the news has the debt? Was it really insane overspending, or was it a medical emergency or a layoff. Maybe the credit cards were used as a last resort to pay bills?

I have heard it said that “to compare is to despair.” This thought process of judging others is detrimental to you. You have no idea whether another household spends more money than they have, is in debt to their eyeballs, or has planned ahead to achieve their desires. You don’t know how much they earn or how much they give to charity. It is much easier to judge someone else than look inward at your own spending habits.

In the budgeting process, people track their daily expenses to see how much they spend and in what category. This can be a great exercise. Once you see where your money is going, you can make life-changing decisions. Where do you want to spend? What do you want to save for?

There are no right or wrong answers. There are only personal choices. Maybe you choose electronics over vacations. Maybe you choose decorating and entertaining over both. Maybe you choose to give your children spectacular holidays or birthdays over everything else. These are the kind of choices your neighbors, friends and family members made when they did something that impressed you and made you envious. They simply chose to spend their money in a different way than you.

So the next time you see someone order an expensive meal at a five star restaurant, purchasing the latest greatest electronics, or buying a designer outfit, don’t judge them. Not only is the thought process destructive, but it is a total waste of your time.

Creative Ways to Get Paid

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Have you reduced your expenses to the bone, yet it’s still not enough? Maybe you just need to make more money? Ha ha. Who am I kidding, right? You can’t commit to a second job with your responsibilities and it’s not like you can ask for a raise in this economy. Hear me out, because you don’t have to get a part time job to pad your budget

Here are some ideas that might help your cash flow:

Sell things you don’t need or want online. I’ve used CraigsList.org to sell lots of things – everything from toothbrush heads to a car! Use EBay.com for collectibles. Newspaper ads really cut into the cost of selling things you don’t need, but the internet has made it profitable.

Hold a tag, garage or yard sale. You can go it alone or talk your neighbors into holding a block sale – that way you can share the cost of advertising. If you live in an apartment or condo, or simply don’t want strangers coming to your home, see if your town hosts a yearly “flea market”. To sell at our town’s flea market, you just have to pay a fee for the space. It’s a big popular event and attracts paying customers. If you have quality items, you’ll make your fee back, and pull in a good profit.

Try a consignment shop if your items are valuable. If you’ve got something that’s very gently used and still has value, this is the way to go. I have personally consigned clothing, and other small merchandise, and have been happy with the fair price received for my treasured items.

Have a great skill, or ready hands, but can’t commit to a second job? Check out TaskRabbit.com. This website connects people who need things done with those who are willing to do them. A woman I know grew up working a big yard and garden with her mother. All that drudgery paid off. Now she rents herself out for a day on weekends planting gardens. It’s the kind of second job that she can fit in her schedule because she only takes the extra work when it’s convenient. The plus side? She enjoys getting paid to spend time outside doing something she’s good at. As with anything do you research before moving forward.

Would you like to rent out space in your home? Airbnb.com “connects people who have space to spare with those who are looking for a place to stay.” The name means “Air Bed and Breakfast” but you don’t have to convert your home into a permanent hotel to make money. The upside for travelers is an authentic stay in a real neighborhood. It’s also great for business people looking to relocate because they want to get to know a neighborhood before they commit. There are restrictions to being a host. You’ll need to check the website to see if you qualify. As with anything do you research before letting someone in your home.

Take a survey or participate in a focus group. I’ve done it. Marketing companies actually gave me money to give them my opinion. I like that!

Odd jobs can make you extra cash. I’ve paid people cash to help with a tag sale, move furniture, haul things for me in their truck, walk the dog, pet sit, and run errands. What can you offer? Get your name out there as an odd-job doer. Like with TaskRabbit, you can accept work on your terms and turn it down when you don’t want it.

As with anything, watch for scams and try to stay with legitimate companies. Do your research before, and choose accordingly, based on your situation and needs.

How do you get extra money when you need some? Let me know.

Social Security: When and How Much?

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You may not be thinking about Social Security for yourself yet, but if you, or someone you know, has reached age 50 or beyond, there are some things that you might want to consider before making your choices.

When can you receive your full social security benefits?

It used to be that everyone was eligible at age 65. Now, anyone born between 1938-1959 has to use the Social Security retirement age chart to find their exact retirement age. Why? Because in the early 1980’s they decided to increase the age to 67 but didn’t want to hold out on those close to retirement. Instead, they gradually increased the retirement age by tacking on an extra 2 months for each year by birth year.

Based on our birth years, my husband Dave can retire at age 66, but I need to wait until I’m 66 and 10 months. It finally evens out for those born after 1960 – they’re currently holding at age 67.

Of course, to qualify for Social Security you have to meet the required credits. If you work and pay taxes, you will earn social security credits (typically 4 credits per year worked). You need to work at least 10 years (40 credits) to receive your own retirement benefits. Other types of benefits are available depending on your circumstances.

What happens if you start early and take partial benefits?

During the holidays, a group of us were talking about social security and what age we planned to start taking benefits. The group consensus was to start with partial benefits at age 62. Yes, for some that makes sense, but not for everyone.

Consider this: If you take your benefits before your full retirement age, you’ll receive reduced benefits for life (by as much as 25% less). In addition, if you’re still working and collecting social security, you’ll have income limitations each year.

On the other hand, if you delay your benefits past your full retirement age, your benefits will increase both for delaying and by annual cost of living.

The bottom line: What your family and friends do may not be what is right for you. Our family conversation brought up some interesting questions. We decided to speak with one of our investment advisors to understand what was best for us. He had a novel option that worked really well for our situation. You see, the best choice for us wasn’t to take the benefits at 62… or to wait. When Dave turns 62, we’ll be using that advice to start our golden years in the best way possible.

Do your research and make a plan that is right for you and your family.

P.S. This important advice came courtesy of our readers. Thank you, Betsy!

Jill,

Another bit of information is that a wife can collect on her husband (or visa versa) at age 62 and then collect on themselves at full retirement age and not have the reduced benefits for life.

Betsy Thomas

Zip Code Harvesting

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Ever wonder why the cashier asks for your zip code? Maybe you thought they needed it for credit card approval (like a gas station). Maybe you thought they were looking to open a new store closer to the people who actually shop there.

Most of the time, they’re collecting zip codes so they can target you with marketing or to sell your contact information.

When you pay with a credit card, they can keep your full name in their records – add the zip, and they can find your exact address. They’re determining who their customers are, where they come from, what types of products they purchase, etc. They can develop a whole file of information about you with those two pieces of information which they can use themselves or sell to retail partners.

You may have noticed that some retailers will ask for your zip code no matter how you pay. They’ve asked for my zip code when I pay with cash. They might not know my exact address, but they may choose to target my neighborhood with flyers.

You can choose to be a part of this by giving the cashier your zip code – you’ll most likely get more mail and/or coupons. Or, you can decline to give your zip code to the cashier. I am vigilant about my mail (and privacy), so I personally choose not to give out my zip code. The choice is yours to make.

Note – this is not the case with unmanned transactions, such as self-service gas stations. In an unmanned transaction, you may be required to enter your zip code on the key pad to authorize the credit card transaction. In this case, the credit card company itself is attempting to verify your identity. This is NOT zip code harvesting because the gas station isn’t keeping your information.

Remember the choice is yours.

Keep Your Savings Accounts Away from the ATM

savings-atm-1

One thing I’ve learned over the years is not to have my savings account linked to my debit / ATM card. If I want to make an impulse purchase, I have to put some thought into it and move money either online or at the bank. This delay gives me time to talk myself out of wasting my savings on something I don’t really need.

An added benefit to keeping your accounts separate, is that if your debit card is stolen, the thief cannot access the money in your savings.