Each year there are several things I do in January to make a fresh start of our finances for myself and my family.

I take the credit cards out of my wallet and put them in my copy machine. Why do I do this?  So, I’ll have up-to-date information on my cards in case my wallet and/or phone is lost or stolen. If you want to do this, too, make sure to spread your cards out on the paper so you’ll have room to hand-write the contact phone numbers found on the back of the cards. This serves a few purposes:

1. You won’t have to go online or search past bills for contact numbers in case you need to cancel those cards in a hurry.
2. You will know exactly which cards you need to call on, and,
3. You’ll remember to take the credit cards off the copier.

I set a new file for 2021.  This includes my accordion multi-pocket folder for this years’ tax information.  If I am organized at the start of the year, I will be all set for the accountant at year end.  For last year, I am ready to give our accountant all the tax information so that I can file early.  (This is a good idea to file early, just in case someone steals your identity and files a false return).

I shred our pay stubs when the W-2’s come in. Check to make sure they agree first! (Yes, there are still companies that use paper pay stubs)

We review last year’s bills. We really like to save money on everyday expenses so we can afford the things we really enjoy. So, we look at how we’ve spent our money in the past year to see if we can make any improvements.  In the past, we have deregulated our electric, lowered our cell phone package, and cut out TV channels we don’t watch.  We have made choices about what subscriptions to keep and what not to renew, keeping only the most useful magazines and memberships.

January is a month we plan our extra spending. These are the expenses that aren’t in the usual monthly budget but are essential to our standard of living. If you want to plan your extra spending, here are some examples and tips:

1. What do you want to do this year for fun?  We usually already have a vacation or two in mind.
2. What big events are taking place for your family or circle of friends?  You usually know a year in advance if someone is planning a family reunion or getting married. Be sure to factor in travel costs.
3. What home projects do you need or want?  With this past year’s weather, you may be thinking its time for that major improvement to your home.  Last year, we replaced our roof.

If you need to spend money to have it, then it’s worth planning ahead.  It’s so much easier and less stressful to have the money saved than to try to figure out where can to get the money at the last minute.

Wishing you all a Happy and Healthy New Year!

2020 has been a challenging year – job losses / furloughs, pay decreases, health challenges and more.  This was the year that you needed your finances in order and an emergency savings to fall back on.  Plan ahead so that you will be financially prepared in your time of need.

Before 2020 ends, you may want to consider these steps to help with your finances and do them in this calendar year:

• If you pay estimated taxes, consider making your January payment before Dec 31.
• If possible, you can prepay your January installment of your real estate taxes before Dec 31.  This may be difficult to do if your taxes are escrowed in your mortgage payment.  You will need to check with your town’s tax department for details in your city / town.
• Fully fund (or as much as you can) your retirement accounts – IRA and Roth IRA’s (you can do this in 2021 for 2020 too).
• Fully fund (or as much as you can) your HSA (you can do this in 2021 for 2020).

These steps may work to your advantage with your income tax.  Always check with your tax preparer about your individual situation.

Want to take your finances to the next level?

Come to hear me and get your questions answered at Norwalk Community College (Norwalk CT):

Start Your Finances Off Right – Thursday      4/2/2020      6 to 8pm

Budgeting To Pay Down Debt – Monday      3/23 and 3/30/2020      (2 sessions)       6 to 8pm

What about your teens, do you want them to learn about finances?

Have them come hear me at Norwalk Community College:

Teens and Money:  Teen Personal Finance – Saturday      3/28/2020    10 am to 12 noon

For more information or to register, please call (203) 857-7080 or Email:  extendedstudies@norwalk.edu

I hope to see you there

As you know I am cleaning out stuff n in our home.  My goal is to clean out the basement, garage etc. and reduce the family items that have accumulated over the years.  We have made tremendous progress and are now down to items that may have value.

I have to admit that this is challenging.  I don’t want to toss something of value.  On the other hand, I don’t have the time to do all the research involved.  So what am I supposed to do?

I found a company that buys gold, silver, coins, stamps etc.  They seemed reputable.  I have sold items to them in the past.  I brought more items to them last month.  One item in particular, a Movado watch, I knew was worth something, but I had no ideas how much.  They offered me $40.  My gut told me that was too low, so I declined.  Before I left, he upped the offer to $50 – again I declined.

I took it to the local watch place that replaces my watch battery and asked them. The owner wasn’t in, so I left the watch.  Imagine my surprise, when the owner called and we spoke.  He offered me $123 for the watch.  $73 more that the other place.

In this case, seller beware.  Take the time to do the research necessary before you think about selling items.  You might get more that you expected (a pleasant surprise), but you don’t want to sell and item to find out that you practically gave it away.  I guess I have my work cut out for me over the summer.