Jill Russo Foster

Tips for Successful Personal Finances

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Finances and Money

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Finance and money is more than paying your bills on time.  Yes, this is extremely important – paying bills late may effect your credit and can cost you money with late fees / finance charges.  But there is more getting your finances organized.  Do you have the money to pay your bills each and every month?  You will want to have money for today and for the future.  Do you have goals you want to achieve?

There are many ways to deal with your finances and money and you have to find the plan that works for you.

The major parts of finances and money:

Determine your goals – what do you want in life?  Maybe a short term goal is having your month last all the way to the end of the month, or to be able to pay all bills in fulls each and every month.  What about long term goals?  How about saving for …. (insert goal such as paying for college, a car, home, vacation) all the way to financial independence.

Action plan – how are you going to achieve your goals?  Break this down into action steps, using the smart goal formula.  What is the first step you need to do to start down this financial road?  Maybe it’s starting to save … (insert amount every pay period).

Budgeting – now’s the time to put your money on the table.  How much money do you need to achieve your goals?  Start by tracking your net income and your expenses (every penny) to see where you stand.  Don’t think your have money to save, then you need to make changes to reduce your expenses and/or increase your income.  Remember that making a budget is not a one time thing, your are making a budget, review and sticking to it.

Savings money – break it down into manageable amounts and be realistic.  Your not going to be able to save $1,000 in a month, but your could start out by planning to save $20 or more per paycheck.  Automating your saving is the easiest and best way to stick with this goal – paying yourself first before you paying anything else.

Paying down debt – we all know that the finance / interest charges are the enemy of your budget.  This is money that could be used in other ways.  Don’t stick you head in the sand, we have all been there at one point or another.  Make a plan to payoff your debt – avalanche or snowball methods are way to start.

Take some time and take a look at your finances and start to deal with your finances and money to get on a path to achieve your goals.

This is very simplified and not all plans work for everyone.  Take the time to modify or find a plan that works for you and your finances.

If you want more information, please visit my website for my upcoming workshops.

 

Increasing (or Starting) That Emergency Fund

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Are you one of those people that sets a goal to have or increase your emergency savings fund each year.  As we reach the year end, did you accomplish this?

An emergency fund is something that each and every one should have.  If life hands you an unexpected expense and you really need to pay for this now, how will you handle this without that emergency fund?  That unexpected expense can be a car repair, loss of a job, a home repair and more.  These expenses typically come when you don’t have any extra money.  If it’s something you need to do immediately, without this savings you will be adding debt to your budget.  That’s where your emergency fund comes into play.  If you have one, you wouldn’t have the stress of figuring out how to pay for it.  That’s why you need to start or increase yours today!

Have you made your plan to start or increase your emergency fund? Don’t get overwhelmed thinking you need thousands of dollars now.  Nobody starts off with thousands, think baby steps to increase your emergency savings with each and every pay check. 

Steps to start your emergency fund:

  1. Open a new savings account for your emergency fund – don’t link it to your ATM. debit card.
  2. Set an amount to save each pay period – can you find $10 or more to save each pay period?
  3. Set up automatic withdrawals from your paycheck – either through your payroll dept. or with your bank.  Think pay yourself first attitude (you won’t spend it if you don’t see it).

Follow these steps to start out and increase the dollar amount at least annually. A good time to do this is when you get a raise at work – more money coming in, the more money can go to your emergency savings.  Suze Orman’s suggests that everyone needs eight months in their emergency savings.  That can be overwhelming, so let’s start with a goal of saving $1,000 in a year – you can do this as it’s on;y $20 a week.

If you haven’t started or at the level you want / need to be at, these are some great tips from WIFE – Women’s Institute for Financial Education to get you started.

Happy Savings!

When Disaster Is Coming To Your Door

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My heart truly breaks for all the people effected by these disasters.  The latest one being the California wild fires.  It seems that no matter where you live something could be coming your way.

For us here in Connecticut, we get Nor’easters and this year plenty of rain. For other parts of the country it could be a hurricane, wild fire, major storms with repercussions and so much more in the way of natural disasters.  Unfortunately, these aren’t the only situations you have to be prepared for in today’s world. Are you ready for what could be coming your way?

You need a plan and possible several plans (for all that’s involved in your life).  Here are something you may need to consider:

  1. How will I know what’s going on?  Think your power is out and many items need to be charged or do you have a manual option.
  2. Where do I go if I need to evaluate or should I stay in place?  Remember, you may have to plan for your elderly family members, young children and pets too.
  3. What are the important things to take with you or have available to access?
  4. How will I communicate to / family others that I am safe?

Just this week on the news, someone tried to abduct a young girl.  Her family had a plan in place with a “code word”.  She asked the potential abductor what the code word was.  They didn’t know, so she was able to figure this not to go with that person and run safely away.  This was great plan and it worked for them.  What’s your plan?

There are so many questions and situations that you need to be prepared for.  One place to start is with the government website.

Have You Checked This Lately?

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Every year around my birthday is the time I check my social security.

No, I am not ready to apply.  But it’s something I do annually to make sure all is correct.  Every year social security posts your income to your account (the same income you file on your federal tax return).  I like to double check to make sure mine is correct.  It’s much easier for me to check now, then to figure it out when I apply for social security down the road.  My records are easily accessible and easy to review to double check.

When was the last time you looked at your social security account?

Money, Life and Savings

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A reader asked me about how to save to purchase a home, when your money doesn’t allow much for savings.

That’s a great question. But not an easy one to answer.

We all know that saving should be a priority.  But we have monthly obligations.  So here are so general steps to achieve what you want (in this case a home).

  1. Track your spending – many people overlook this step.  Trust me this is the most important step in achieving your goal.  Write down every penny that you spend for at least a month.  Track everything from the rent payment to purchase of the newspaper.
  2. Weekly (or more often) take your tracked numbers and put it in to a budget.
  3. Analyze where your money is going and make a plan to spend less.  Even saving $5 a week will add up.
  4. Automate your savings goals and pay yourself first.  You will learn to live off less if you don’t see it available in your checking account. You may want to unlink your checking and savings (or have them with separate banks).
  5. Lastly, look into home ownership programs in your community.
  6. Check out to see if you qualify for an Individual Development Account to save for a down payment.

While it’s hard to save money each and every month.  It a necessary step in life to achieving your goals.

 

Make 2018 Your Best Year Possible!

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Yes, I know it’s a busy time of year to add anything to your do to list.  As the year begins, it’s important to make time to complete this check list of items to make 2018 the best year possible.

Investment Accounts
Think about maxing out your 2018 contributions, especially if you have an employer match. You don’t want to miss out on the free matched funds. If you can’t max out, then add as much as you can. Now is the time to look at your investments, it may be time to re-balance and/or make changes to your accounts.

Health Insurance
Understand what your health insurance covers and what it doesn’t.  If you have a deductible to meet,if possible schedule your appointments so that you can afford the bills.  Remember you may be able to use your FSA (Flexible Spending Accounts) or HSA (Health Savings Account) to plan for some or all of these expenses. Your plan has a list of eligible items you can use the money towards.

Charitable Giving / Donations
If you itemize your taxes, make sure to discuss your charitable giving with your tax preparer as the new tax rules are in effect.

Starting the new year off right will help you throughout the year.

Paying For College – FAFSA

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It ‘s that time of year.  Your teens are making their college choices for the fall and all the excitement that goes with it. What school should they go to?  Will they stay near or go far? What will I need to do next?

First let ‘s start with the paying for college.  If you have the money saved for the cost of college for all four years (or more), then you can stop reading.  If not, you need to start or continue to figure out the finances.  FAFSA – Free Application for Federal Student Aid – is the first step.  Apply now, even if you don’t think you qualify – you may be surprised.

Here is a great article by Consumer Reports for financial aid that will tell you what you need to know.