Organization & Planning

It’s too much! Stop the junk mail and sales calls

Is your phone ringing when you sit-down to dinner? Do you come home to find your mailbox overflowing with junk mail that you’ll have to sort, shred and recycle? Do you want it to stop?

I’m vigilant about my family’s privacy and do what I can to protect our personal space. I don’t want to waste a second of my precious spare time on unsolicited calls or credit card offers. Sometimes it feels like an uphill battle. Between social media, email, the phone and your mailbox, it’s like being pressure-cooked in sales offers.

First, make the calls stop!

We have been registered on the Do Not Call list since 2003 (www.donotcall.gov). But, they can’t protect you from charities, political campaigns, surveys, or companies that you have a relationship with. You’ll have to tackle those individually. When they call, take a moment to ask to be removed from their list. They’re supposed to comply with your request.

Reduce the sales flyers

We’d been getting unwanted mail and realized we’d gone over the 5-year limit at www.optoutprescreen.com. When we renewed our preferences, we were pleasantly surprised to find that you can now opt-out permanently. It’s a similar process to the 5-year opt-out with one additional step: you have to mail in a confirmation. This should cut down on all unwanted mail and offers… forever!

Stop the credit card offers and checks that you’ll have to shred.

We fill out the privacy options for all of our credit cards. You can find these on the inserts that come with the bills. You may have tossed them out without looking.

How did you get on these mailing lists in the first place?

So, you opted-out a year ago and suddenly you’re receiving mail and phone calls? Why? How? Well, there are quite a few ways to get back on a company’s mailing list. For example, we just went to a home show and almost every booth was offering a “free give-away”. When you fill out the form, you’re giving them permission to contact you with sales offers. Think twice before signing up. Are the odds of winning worth the unwanted calls and mail? For myself, the answer is no. But, we do take any literature they may be offering so we can contact them if we want to.

I want my home to be a sanctuary not a fortress where I’m forced to fight off unwanted contact. Here’s hoping that we can come home to minimal mail and eat a cozy dinner in peace.

Stop Doing What You Do!

beach-sign

“If you keep on doing what you’ve always done, you’ll keep on getting what you’ve always got.” If you want to make changes with your life and finances, then you need to do something different.

When I imagine my perfect life, it’s like a sunny day at the beach – calm and bright with a peaceful, beautiful feeling. This year, I’ve decided to do some things differently, in the hopes of making my real life closer to my ideal life.

My Morning Meditations: I have trouble quieting my mind. When I finish one task, the next item on my to-do list pops into my head. Since January, I have started my day with a guided morning meditation. Maybe someday I’ll be able to meditate on my own, but for now it works best to listen to someone guiding me to a state of relaxation.

Results: This is really new to me. So far, I’ve seen changes in the amount of stress in my life. I am much calmer and more easily cope with my long appointment driven days. I have noticed subtle changes in my body. I now have trouble keeping my purse on my shoulder. Less stress has lowered my shoulders.

My Intention Journal: I’ve kept a gratitude journal for years, ever since reading Simple Abundance. It was difficult to think of even 5 things to be grateful for at first, but now I have to stop myself after one page. This year, I added an intention journal to my routine. In the morning, I set an intention for what I want to happen that day, and then I journal about the results before bedtime. My intention can be anything from “I easily completed this project” to “I achieved this outcome for this meeting.” I word it as an affirmation as if it already has happened.

Results: Setting my intention in the morning gives my day focus. Writing down the intention helps to keep it foremost in my mind. This compliments my gratitude journal. I recommend it to everyone. It’s worked great for me.

Going Paperless in the Kitchen: I am continuing to get rid of more paper. This year I am organizing all of my recipes in a folder on my hard drive. This includes all the old family recipes that I had on scraps of paper or recipe cards and the new ones from magazines or friends that I want to try.

Results: No more recipe cards, or notebooks with torn out recipes in my kitchen. That’s been really nice. Have you ever wanted a specific recipe, but couldn’t remember if it was in a book, card box, or ripped-out magazine page? It’s not fun.

Minimizing My Possessions: Over the last few years, I’ve been streamlining and simplifying my life. I used to keep too many things, “just in case”. But, going through things can lead to new piles because I want to give them away to just the right person. This year, I am giving myself a one-week time limit on the stuff. If I think that someone, or an organization, can use the item, I have one week to contact them, and get it to them (if they need it or want it). Otherwise, it’s at the curb.

Results: As I clear things out of my home, I’m making way for new energy (not things). I have several new projects on the horizon and have given three talks to new organizations just in the month of February alone.

I can’t wait to see what’s next. What are you willing to change in your life to get different results?

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

Of Breakups and Closed Accounts

In our last issue, we discussed whether you should blend your finances when you get into a relationship. Money will be your biggest source of friction, and having boundaries doesn’t hurt. I listed some of the different financial relationships couples choose. There are different options besides “What’s mine is mine and never ‘ours’ or “It’s all or nothing or I’m out of here.”

Sometimes your best efforts to create a life together fail, and the relationship ends. Today, we’ll discuss how to unblend your finances. Whether you decided to share all of your accounts, or only share expenses, you should separate your finances as soon as possible, because you can be sure that someone’s name is on the wrong paperwork.

Take a look at your…

Rent or Mortgage: Who is on the lease agreement or loan? It should be the one who actually lives there. Ignore that piece of wisdom and risk having your home sold out from under you.

Utilities, cable, and cell phone: Whose name is on the accounts? They should be in the name of the person using them. If you don’t transfer ownership, you could have your utilities cut off without notice.

Insurance: This includes car, apartment, home, life, and medical. You don’t want to be without insurance, and you don’t want your money going to the wrong person if you don’t update your beneficiaries.

Credit cards and loans: Do you want to have your credit affected by charges that aren’t yours, or be forced to make payments on a car you don’t use?

“But Jill,” you say, “these all sound like things that happen in a hostile breakup. We’re not like that.” Even if your breakup is friendly, and your ex is as trustworthy and competent as a super hero’s alter ego, you still need to separate your accounts to protect yourself in case something happens to one of you. If one of you dies, or is mentally incapacitated, the law won’t recognize verbal agreements or promises. They only see whose name is on a piece of paper.

Let’s talk about verbal agreements. Let’s say the house and car loan are in your name, but you want to be nice. You don’t need them, and your ex does. Your ex has agreed to make payments, so it’s no big deal, right?

Wrong. Your credit will take a hit with the first missed, or late, payment. And, you may not be able to get a new car or house for yourself because your debt to income ratio is too high. The bank won’t take verbal agreements with your ex into consideration when you apply for your loan.

Here’s something else to think about: Can you maintain your current lifestyle if you live separately?

If you end up with the house or the car, can you afford the payments? Can you pay for the utilities, the maintenance and the insurance? You may have to make tough decisions, because you could be without the things you need to live if you don’t plan ahead.

Too many people have found themselves temporarily homeless, or had their credit ruined, after a breakup. Don’t let this happen to you.

Of Love and Shared Bank Accounts

I recently led a discussion about relationships and money: how to blend, and end, your finances with someone else. Questions were asked, and there were some interesting conversations going on in the room. Then, a few weeks ago, a long time reader of Quick Tips asked about shared bank accounts. I decided it was time to write about this subject again.

First of all, you may choose not to blend your finances at all. Many couples keep separate accounts and actually have happier and more successful partnerships because there are fewer arguments about who spent money on what and who overdrew the bank account. Others choose to handle their money and debts together, and they do just fine. The choice is yours.

Look at your habits and goals when you consider whether to combine your accounts or keep them separate:

How does each of you handle savings and debt repayment? Do you have similar philosophies, or are your bank balances mirror opposites, with one carrying a large debt balance and the other carrying a large savings balance?

Do you have the same financial goals? Or, is one of you saving mainly towards retirement, while the other wants to save for amazing vacations and a nice car.

Does one, or both, of you have any issues that you would bring into a blended financial arrangement? For example, are there any debts that are currently in collections or that were charged off; bankruptcy; judgments; wage garnishments; or tax liens?

Some people find this subject to be a touchy one. I even received an angry comment on my blog by someone who insisted that married people should share everything equally. But, keeping separate accounts isn’t about holding out, or being less in love. Sometimes, it’s about protecting each other and making decisions that will carry you furthest towards your mutual goals.

If You Have Separate Accounts, How Do You Split Expenses?

Most people assume 50/50, but there are other options. You could choose different percentages based on incomes, family size, habits and hobbies. For example, if you have shared custody of your 3 kids with a former partner, then you might pay a higher percentage of the food bill. If your hobby raises the electric bill (gaming, woodworking, sewing), then you might pay a higher percentage of the utilities. You don’t have to use percentages – you can divide up the bills, where one of you pays for this expense and the other pays for that expense. The choices are as varied as the couples who make them.

The bottom line is that you need to make informed choices that are right for you individually and as a couple. Money is the biggest source of friction in relationships. Have the conversation before you get married or move in together, so you know what to expect ahead of time. If you’re already living together, it’s not too late to make changes.

Next issue, I’ll talk about separating your finances after the relationship ends.

What I Learned about Money from Sitcoms

I love to watch old sitcoms on TV Land and Nick at Nite. They’re like comfort food for the brain. I’ve seen the episodes already so there’s no suspense, and I certainly don’t expect to learn anything.

But sometimes they surprise me.

A couple of weeks ago, I was watching reruns of The Nanny. In the episode “Close Shave”, Fran is having trouble paying her credit card bills.

Here’s the conversation between Fran and Niles:

Fran: I have to pay my American Express because if I buy a piece of gum, the S.WA.T. team storms the building. Meanwhile, I pay my MasterCard with my Discover Card, my Discover card with my Optima Card, My Optima Card with my City Trust Visa.
Niles: But doesn’t that leave a very high balance on your Visa?
Fran: Exactly! And that’s why they gave me an espresso machine which I sell to pay off my American Express, thank you.

This reminded me of the Cosby episode “Theo’s Holiday.” It’s the one where Theo wants to move out using money from a modeling career (that he doesn’t have). Cliff and the family show him the real costs of living on his own.

(Start at 3:32) To see the full episode watch Part 2 and Part 3

For sitcoms, these episodes are very realistic in the way they portray people who are uninformed about money. But, the solutions weren’t realistic at all. How nice would it be if we could solve our problems in 23 minutes just like they do on TV?

Now, imagine you’re a child watching the same episodes for the first time. What would you learn? There’s a telling discussion on TV.com.

How will your kids learn about money? Will they learn from TV, or because you took the time to teach them like Theo’s family taught him? What about yourself? You’re old enough to know that your problems won’t magically go away like Fran’s. Be informed and make informed choices that are right for you.

People want their finances to be perfect – like a TV show. But most of us don’t go from a plan to success by receiving a windfall. There’s usually a long journey and detours in the road. What matters most is how you get yourself back on track. Keep yourself moving forward towards your goal and you will accomplish it.

And, if you need a little comfort, try an old sitcom. They’re cheap, there are no calories and you might learn something… but don’t count on it.

Start Small to Have It All

This is Part 2 of my “Having it All” series. The first part is “Step One to Having it All”

Everyone has a different definition of Having it All. In the first article, I asked you to list a few goals based on what you want out of life. Now, I want you to pick one for this exercise.

Living Debt Free with Enough Money for Expenses

That’s part of the “Having It All” dream for many people, so I’ll use it to illustrate how to start small and take action steps towards your goals.

As an example, I am going to use “Save $20 per week to build $1,000 in emergency savings in 1 year.” See how specific this goal is? That lets you check your progress and feel good about your success.

It’s also a good example of starting small. It may not seem like much, but $1,000 can cover a leaky roof or a brake repair. The less often you use your credit cards, the more your savings accounts will grow. One thousand in emergency savings is a good base for building the “debt-free” dream.

Now let’s break down the goal into action steps by first asking a simple question…

Do you have $20 a week to save?

If the answer is Yes…

Step 1. Set up a separate savings account in a different bank or credit union than the one you normally use. This way you won’t have easy access and it won’t be linked to your ATM/debit card.

Step 2. Visit your HR department to set up an automatic transfer from your paycheck, or, visit your bank to have $20 per week transferred from your checking account to your new savings account, or if you do online banking you can set this up yourself.

If the answer is No…

Step 1. Reduce expenses until you can save $20 per week.* (I’ll write more on this below.) Can you bring your lunch to work? Can you cut out the impulsive shopping? Think of how you can reduce your spending to come up with the $20.

Step 2. Return to the top and take Steps 1 and 2 above.

Step 3. Tracking and celebrating your success

I want you to check in on your progress throughout the year. Are you on track to meet your goal or did something happen to throw you off? We all want to be perfect, but that’s not real life. Things happen that get in our way. You have to understand this and get back on track as soon as possible to achieve your goal.

Keeping track also allows you to celebrate and feel good about what you’re doing. This is your baby that you’re nurturing – your future, your wealth, and the beginning of your dream life.

*Just a note about personal austerity measures. “What…” you might ask, “…does giving up eating out and impulse shopping have to do with having it all!? That’s my dream lifestyle!”

First, I’ll have you know that a lot of millionaires are pretty tight fisted. They spend their money selectively instead of blowing it on any old thing that comes along. So, I challenge you to think like a millionaire.

Second, many successful entrepreneurs like Bill Gates, Mark Zuckerberg, Julia Childs, Martha Stewart and Oprah Winfrey started with small budgets. They built their fortunes by working hard and investing their money back into their businesses, making a little bit go a long, long way. They had the discipline to put off luxury living until after they had money.

Third, cutting back doesn’t mean living unhappily. Take joy in building your dream life from the ground up.

I used saving money as an example. I challenge you to break down one of your goals into simple action steps. Let me know what you’re working on and join the discussion.

Step One to Having it All

One of my clients told me that a 6-figure income would give her everything she wanted. She could pay the bills, have a home, save for the future, travel, and indulge in all the little things.

I gently pointed out that there are a lot of 6-figure earners who wished they made more money. A bigger income means a bigger mortgage and a more expensive lifestyle. High earners often find themselves pushed to their budget limits, balancing debt against what feels like a meager paycheck.

That’s human nature for you. We pick up more than we can carry, then blame nature for not gifting us with extra arms. We grab for everything, instead of just those things that make us feel fulfilled.

You can have it all (maybe not at once), as long as you know what having it all means to you. The key is in knowing what will really make you happy, having a plan, and working towards your goals.

When my client dreamed of making 6-figures, I believe she was really fantasizing about the freedom of living debt-free, with money in the bank for travel, retirement and a comfortable home life. But, without a plan and goals, she would have fallen into the big-earner/big-spender debt trap.

You may already know what you want, but, if you are living your life day to day with no goals, how do you expect to get to where you want to go? You may not even know if you are headed in the right direction without action steps to judge your progress.

The first step is to set a goal. What is it? Do you want to eliminate your debt, save for a vacation, save for a down payment on a home, start an emergency fund, save for retirement, your children’s education, or something else? Remember the goal must be reasonable and measurable.

Examples of wishy-washy goals:

I want to get out of debt by the end of the year (may not be reasonable).
I want to have an emergency fund (not measurable).

Examples of reasonable and measurable goals:

I want to pay an extra $100 per month, and stop creating new debt, to eliminate my debt in two years.
I will save $20 per week to build an emergency savings of $1,000.

This is Step One: determine your goal(s). Write them down and put them where you will see them every day.

In our next Quick Tips, we’ll discuss Step Two and the action steps you’ll take to have it all.

Before you head out for your summer vacation…

Take these precautions so you can enjoy a safe and worry-free trip.

Call your credit card companies to let them know where you will be. Your credit card company will know it’s you making the charges and will let them go through.

Put a hold on postal mail, newspapers, and any other regular deliveries before you go. You don’t want mail piling up advertising a vacant house.

Clean out your wallet. Remove all items that will not be necessary (that includes your checkbook). Carry two credit cards, and if you are traveling with someone, have different credit cards in case one wallet is stolen.

If you need to use an ATM, use one at a bank (preferably in a lobby). They are less likely to be tampered with.

Be careful when using hotel computers and Wi-Fi networks. Do not access your financial accounts as identity theft can be right around the corner.

Beware of fake calls from the “front desk”. If you receive a call from the hotel front desk telling you your credit card didn’t go through, it could be a scam. Thank the caller, and then go to the front desk in person to straighten this out. Never give your personal information over the phone to someone who calls you.

Taking a few precautions before, and during, your vacation may save you from financial troubles when you get back.

Airline Tip: Fly Smart with Fewer Fees

If you’re a long-time reader of Quick Tips, you know that we like to travel. We’ve become expert at getting the most out of our vacations while keeping our travel costs low. In the last few years, the airlines have been adding so many fees… they kind of remind me of the banking industry.

But, there ARE ways to avoid or reduce those airline fees! Let me help you.

When I first started to travel, you paid for your airfare and all the little perks were included – checked luggage, beverage and a meal, the seat of your choice, and a movie. Those were the good old days.

Now back to today’s reality. All those little extras come with fees that can make even the most reasonable airfare seem expensive.

Baggage Fees

There is a real advantage to traveling light. Don’t over-pack. Choose clothing that you can mix and match. I personally pick three color themes for the trip so that all my clothes can be interchanged. Because I pack fewer clothes, I can bring my luggage as a carry-on to avoid the baggage fees and save time at the airport. If you try this, just remember to pack 3 ounces or less of toiletries because you won’t be checking your luggage.

Airline Food

If healthy eating is as important to you as your wallet, you will bring your food with you. Buying food on the plane, or in the airport, can be unhealthy and expensive. Pack what you like to eat, and you will be all set. Remember to bring an EMPTY water bottle. That can go through security, and you can refill before boarding the plane. Or, just purchase a beverage after the security check point.

In-flight Entertainment

Entertainment can be costly on the plane, but you can avoid it. Are you carrying your own electronics on the flight? If so, you can save money. Most mp3 player ear buds will work to watch the movie – you don’t need to rent or buy headphones from the airlines. Maybe you’d rather watch your own entertainment – bring it with you. While you can’t use Wi-Fi for free, you can watch what you already have downloaded to your laptop or tablet. This will save you even more money.

Choosing Your Airline (and your seating arrangement)

When you book your flight, there are so many options to choose from and all at a cost to you. Where do you want to sit? When do you want to board? All of your choices can cost money. Only you can decide if being one of the first to board the plane, and sitting up front, are worth the added fees. Personally, we fly one airline (and its partners), so we have frequent-flyer status with the airline, and get some seating benefits without paying additional fees.

If you’re a frequent flyer, you can do this too. If you’re not, you can participate with a credit card rewards program that can offer some of these perks without the fee. Beware: the types of credit cards that offer travel perks are usually the kinds that have an annual fee and/or a higher interest rate.

Look closely at how you travel, and consciously choose the perks you want to pay for.

Do you like to travel? How do you avoid added airline fees? Join the discussion.