Tips for Successful Personal Finances
Ever wonder what budgeting app is best for you and your family? Not sure where to start? I am asked this all the time and I don’t have a recommendation for you. I still use a manual method and am happy with that for us.
For those of you that do want to use an app, how do you make the right choice? Here is a great article from The Hartford comparing several apps to help you make the right choice.
Let me know what one you use and why. I would love to hear from you.
Last time we spoke about couples merging finances together. I have witnessed many couples who keep their finances separate. While I am not opposed to this, it can create problems down the road. 
I have a friend currently who is trying to piece together her deceased spouses finances. It’s unfortunate, he passed away unexpected and suddenly. Their finances were totally separate. Now she is having to search for where his bank accounts are, where his life insurance is and so much more. Yes, they were fortunate to have the legal paperwork in place – will, estate plan etc. but there are issues with the legal paperwork too. It more complicated for the surviving spouse as they are not only mourning their loss, they have to deal with the financial fallout.
When my mother passed away, my father was lost because he didn’t handle the finances. My mom was a bookkeeper and she handled all the bank accounts and bill paying. He never paid a bill in his life up to this point. He actually made piles on the dining room table of bills. Then the calls started to come in that the bills were past due. He assumed that things were automatic but they weren’t. The story of a spouse in the dark.
Make sure the surviving partner / spouse is aware of your financial situation and has access to the accounts. They should know how to access the bank / investment accounts. They should know where your life insurance policy is. They should know how to access your passwords. Take the time to have this discussion before it’s too late and have a plan in place.
Weddings are an emotional celebration. We love the idea of a bride and groom starting a new life together. We use words like “two becoming one” or “sharing your lives as one,” meaning that everything will be shared as though the couple are no longer individuals. I believe this puts a lot of unnecessary sentimental pressure on a couple to share all their finances even though it’s not always necessary, or even wise, to do so for every single account or property.
So, how do you merge two separate financial lives? There are many successful ways to do this. Some couples keep their individual incomes and expenses separate by having separate bank accounts, credit cards etc. Then, they have a joint expense account for their household bills that they each put money into. Sharing the joint account can be as simple as having each person responsible for different bills, or figuring out the bill totals and having each put in their half. Some people base the joint account total on a salary percentage (this works great when one spouse earns more money that the other). And, of course, some people merge everything and all accounts are joint.
You need to think about what type of financial people you are. Here are 3 questions to think about that will help you decide (and could possibly save some financial squabbles):
Answers to these questions can be tricky, but worth the discomfort. Proactive thought can be a financial life saver for your future. Double check your answers by looking at your account statements and credit reports. You may not be as good at finances as you think you are, or you might be better than you thought. Discuss your habits with each other, as well as any outstanding issues that could affect you both.
I am a firm believer that you both should participle in your finances. You have joint goals in your future, so you should do the financial planning for this together as well. Don’t let the responsibility fall to one person. If something were to happen to the “responsible” one, then the other party would be left completely in the dark, not knowing anything about the accounts or how to deal with them. I have seen many situations like this. It may seem kind, or convenient, to handle the money if your partner doesn’t know how, but it’s not.
Whichever way you choose to handle your finances as a married couple, make sure it’s a mutual decision based on real knowledge of your habits and goals.
Whether you are just starting out or nearing retirement, there are things you can do now to make retirement easier for you. You don’t want to retire and not have the money to do what you want. Here are some things you should think about:
According to AARP, more than half of the full-time workers age 50 years and above will lose their job involuntarily. Keep track of your finances, live below your means and be prepared for whatever comes your way.
2020 was a year for the record books. This past year has brought many issues for many people, from job losses, reduced wages, not to mention healthcare issues. If this past year didn’t convince
you that you need an emergency fund, I am not sure what will.
For us personally, we have had job furloughs and reduced hours – therefore less income. Luckily, we have an emergency savings to help us out. In addition, we took on part time weekend jobs for additional income. What about you, how are you surviving?
Our goal for 2021 is to get our finances back on track – replenishing our emergency savings and eliminating debt. Fortunately, we are back at work and earning income (and we have kept the additional part time work). So here is our plan:
Notice that we are doing both at the same time. Personally, I don’t believe that all your money should go to paying down your debt while not saving anything. If you have an unexpected expense, then what will happen? You will go into more debt. That’s why I believe in doing both at the same time.
For us, we are using the snowball method to payoff the debt we have accumulated. What is your plan to get back in track in 2021?
I met a woman who asked me some questions when she found out what I do for a living. This subject is one that all of you should be aware of and in honor of Valentine’s Day, I wanted to discuss joint finances. You wouldn’t believe how many people this affects.
Are you married or in a relationship with joint finances? Even when couples share accounts, living space, or property, it’s typically one person who handles the finan
ces in a relationship – paying the bills, savings, investing, etc. But the other person shouldn’t be left in the dark. Think about your future, I have meet many who have no clue on how their finances are handled and then something happens and they now have to take charge.
Because this is your joint future, both should know what is going on and how to access the information at any time. The definition of the word joint is defined by Merriman-Webster as “united, joined, or sharing with others”.
Both of you should be making decisions together, understanding where you are today with your money and where you want to go for the future. You should both know the names of your banks and investments and how to access these accounts, especially if you use online accounts. Think of it this way, if the person handling the finances is not able to do it – what would happen? Could you put food on the table? Would the utilities be paid to be kept on?
Remember, too, that your children can see how the money is handled in your relationship. What you do, and don’t do, shows them just as much as what you tell them.
I also believe that each person needs to establish credit in their own name and if you are listed as a co-owner on the assets you should also be listed as a co-owner on the liabilities. What that means is that if you own a home (your name is on the deed) you should also be on the mortgage.
Many partners are left out of the finances. If that’s you, and something happens to the person who handles everything, you are going to have a difficult time. You may find that the bank accounts that you thought were joint are not. You may find that you thought you owned the home you live in, but you don’t. You may find that you need to open a credit card or take out a loan and you have no credit in your name.
All this happens more times than I can count. If this describes you, then you need to have a conversation today with your partner. You need to what know what assets you have, what liabilities you owe and have a plan for moving forward to achieve your goals. The first step is having this conversation.
Do you ever wonder how your financial pictures stacks up? Are you on track to meet your goals? What do you need to still do? These and other questions are always on the man
y people’s minds.
I have discussed the importance of having an emergency savings, a budget to know where your money is going, great credit /score to have the best interest rates when you need to borrow and minimal high interest debt. Check out some of my past emails for more information on these topics.
This is a great article Six Numbers Reveal the State of Your Financial Health. How well do your finances compare to these six areas? All are important areas that should be goals for you to accomplish with your finances.
Planning Ahead
Here’s the tip from October 20 – More Income / Planning Ahead month:
While we are in a month of More Income and Planning Ahead, today would be a good time to begin thinking about your financial future and the documents that you should have in place to make sure things are carried out according to your plans and wishes. Think about this today and over the next few days we’ll talk about the specific documents that I think are absolutely necessary for you to make sure you have taken care of regardless of your age.
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
April is Financial Literacy Month and I want to spread the word so that everyone can understand and 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 therefore increase the number of people who improve their finances.
First, remember to connect with me through social media – Twitter, LinkedIn and Facebook Fan Page, or you can forward this blog post to your family and friends for them to sign up for the newsletter. Thank you for spreading the word.
We want everyone to have some extra cash this April, so let’s make it rain by sharing financial information that really works.
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
Watch for my first post on April 1st. 🙂
#JillRussoFoster #30WaysToSave
Have you struggled to save money because there never seems to be anything left over?Big surprise! We tend to spend the money we have in front of us. Getting a raise never seems to help, because that money disappears, too. There’s always something we think we need or want right now.
The best way to grow the money in your savings account is by setting up an automatic deposit from your paycheck. That way you never see it to spend it. If your company doesn’t offer this, that’s not a problem. Have an amount set up to be transferred automatically from your checking account to savings on a regular basis. The benefits here are that you are saving without any effort on your part and the money isn’t in your checking account to tempt you.
In addition, don’t have your saving account linked to your checking account on your ATM card. Why you ask? It’s too easy to transfer the funds without any thought. Also, you might want to have your saving account at another financial institution. You can access when you need the funds, but it isn’t that easy – so you will have time to think about withdrawing the funds.
Start to put your savings on automatic pilot today.