Category Archives: Tips & Tricks

Scrutinize Your Bills

Go over your bills to check for errors….

It is human nature to make mistakes.  Hopefully, we learn from them.

And banks, mortgage companies, stores are not exempt from making mistakes too. That said, it is up to you to check and make sure that their mistake(s) are not on your account(s). So, make it a habit to check each and every one.  If you don’t, you could be paying for something you shouldn’t be paying for.

Most people will, when a bill comes due, they will just pay it. Before you do that, check to make sure it’s correct.

Check you bank statements to make sure you aren’t paying for fees that shouldn’t be there.

Check your mortgage statement and escrow account to make sure the taxes and insurance bills are correctly being paid….. my mortgage company paid taxes out of my account and applied the money to another clients’ taxes!!!!!  So, this does happen.

Keep tabs on where your money is going at all times…….  you work too hard to get it to just waste it.

Be diligent about checking…… it only takes a few minutes for each, and can possibly save you hundreds of dollars.

Let checking become a habit.

 

How Your Credit Score Affects You

Check and Keep Your Credit Score High

Years past there were no credit cards….. everyone paid by cash.  Actually it was a good thing, because if you didn’t have the cash, you didn’t buy the item.  A perfect way to stay within budget.

Remembering back, my Dad was buying a new car. He had the cash and brought it to the car dealer. But the car dealer said ‘you need credit’…. to which my Dad answered, “But I have the cash.”  No…. he needed credit.

He put a down payment of cash towards the car, paying the rest ‘on time’. And he opened up his first credit card (this was in the 1960’s).

The credit card was through a large department store (still open but under a different name). And I don’t believe he ever used it.  However, I did.  I was a recent high school graduate and was working in the city where the store was located.  Dad told me I could use the card (he’d given my name to the credit department at the store, and the rule was (Dad’s rule was):  “You can use the card. Ask me for it and use it for your purchase. When you get home from work, put the card on my bureau, and on Friday (when I got paid), put the money for the item(s) along with the sales slip(s) on my bureau so that when the bill comes in, I can pay it in full.

This was the one and only time he said this. I used the card often, followed his rule, and he had an excellent credit score because of it.

I, however, learned a lifelong lesson……  I learned how to properly use a credit card.  I’ve done so for 6 decades, and never, not once, have I ever had to pay a late fee or a finance charge.  Dad’s advice was the best advice and because of it, I have saved potentially thousands of dollars because I learned from that first purchase.

So, use a credit card, buy only what you know you can pay for when the bill comes in. Pay it in full and on time avoiding late fees and finance charges and when you check on your credit score, you will be pleasantly surprised.

You credit score will allow you (if it’s high), to get a loan, an apartment, a mortgage etc. These places can and do check to see what kind of a risk you are.

If you can’t follow these simple rules, don’t use a credit card!  It’s for your own benefit.

 

Ways To Lower Your Grocery Bill

Tips on grocery shopping and saving….

Eating is fundamental to existing…… and grocery shopping for home cooked meals is far cheaper than eating out. That said, some tricks to stay within your budget are all doable.

You should have a good idea already of what you spend on your grocery bill, so keep that figure in mind and now start using some easy tricks to whittle down your grocery bill, thus saving money in the process.

Never go food shopping when you’re hungry….. you are more apt to adding snacks and goodies into the cart when, in fact, you really don’t want/need them.

Check the store ad for the week, make a list, and stick to it. The ‘end caps’ at each aisle are the sale items but they also have other items on the regular shelves too.  You’ll get used to how your favorite store does this. And, although they have other ‘come buy me items’ in easy view, stick to your list.

The sale items usually will go on sale about every six weeks on a rotation basis.  So, if you’re running low on something, but can last another six weeks, wait.

If you have children, and they shop with you, the store will have things a child would recognize and ‘want’ at the child’s eye level, so watch that those little hands don’t reach out and add things to your cart.

If you can, use coupons…. newspaper coupons will usually be printed out to coincide with the store ads, saving additional money.  And every penny helps.

Stay away from the snack aisles….. snacks are unbelievably pricey and can be gobbled up without a thought while watching TV.  Try a week without putting any bag snacks in your cart.  Then check your total grocery bill.  I know you’ll be saving $10 – $15 each week by not buying them.  Put that savings into your savings account.

Instead of the bag snacks, make popcorn, or a vegetable / dip tray….. these are far cheaper snacks and better for your health.  Think….. bet you always have some veggies and dip at a get together with friends…… why not make one for yourself?

Don’t waste food….. cook a meal….. use leftovers for another meal the next day or two. Or pack the meal and freeze to thaw and re-heat on a night you’re running late or just want to avoid cooking.

Make your own coffee and put it into a take along mug….. any leftover coffee…. pour it into a container and keep refrigerated to use as iced coffee.

These are just a few ideas, but I’m sure you can come up with more of your own.  The idea is to save money while grocery shopping and add the savings to your savings account(s).

 

Choose ‘No Fee’ Accounts

Banks and Credit Card Fees = Zero

There are plenty of banks and credit cards to choose from….. some with fees, some without.  Choose the ones without…… it’s common sense.

Why pay a bank to use your money? Look around, compare and choose one that does not charge monthly fees or fees to withdraw over a certain number of times etc.  And some, without fees, do have a minimum to hold the account open.  Be sure you don’t go below that figure. Other than that, shop around, you’ll find one that still fits your needs.

Credit cards will sometimes have an annual fee…… if so, find another ‘no annual fee’ card.  There are plenty.

But, ……unless you know how to properly use that free of annual fee card, don’t open it, or any other for that matter.  Because, if you use a credit card there will be pricey late fees if you don’t pay by the due date, as well as steep finance charges if you pay only the minimum (or any other amount) other than the full amount of the charges for that time period.

Most credit cards will have ‘rewards’ of some sort, ….. cash back, travel points, or gift card purchases…… choose the one that best fits your needs.

So, open a ‘no annual fee’ card, and use it properly…. buy the item(s), and when the bill closes, pay the full amount of the bill in its’ entirety for the charges you made.  That is the only way to have a free fee credit card.

After all, those fees add up, and instead should be the money put into your one of your savings accounts.

 

 

Stay Away From ‘Add to Cart”

Online shopping can ruin your budget.

Used to be if you wanted/needed something, you had to get ready, and drive to the store to get it. Now, with the internet….and there are many, many wonderful things we have now to thank for the internet, however, shopping online, and the convenience of it, can truly ruin your finances.

It is so easy, any time of day or night, to open your computer and scroll until you see something you want/need, and often will, as you scroll through, see other things and click onto the ‘add to cart’ button.

And so, the one thing, becomes two or maybe three, with a charge for your account that needs to be paid within 30 days. So, did you even think of the cost to your budget bottom line??????

The items will, within a day or two, arrive at your door….. the bill for these things will arrive within the next 30 days, and, unless you have the money to pay for the whole order, the finance charges for them will arrive 60 days and beyond…..

So….. before you shop online,……..before you click on the ‘add to cart’ button……. know, for a fact, that you can pay in full for the items you’re putting ‘in the cart’.

Stick to your budget…… be disciplined……. it’s to your benefit.

Are You a Saver / Your Partner a Spender??

You’ll need to get on the same page quickly……

You save, your partner spends……. now what??

Honestly, this is the main reason you should….. before you become a couple….. check these things out.  But since you didn’t, there’s no time like the present.

Gather all of your bills, anything financial, savings, retirement accounts, checking accounts, credit/debit cards and bills….. ALL of the bills….. no hiding bills from purchases made unbeknownst to your partner.

Start adding up the bills… outstanding balances, and new bills not received (show the receipts for these).  Add them up….. really, all of them. Now, hide or cut up the credit/debit cards. Use cash only, and continue to use cash only until all the credit cards have a zero balance. Yes, how ever long it takes.

Once that is done, put the amount you’ve been paying those bills into your savings instead. You need an emergency fund of a few thousand dollars to cover only emergencies such as a dental emergency, a plumbing issue etc.

Then you’ll need to save at least 6 months of your income (eventually 9-12 months), should you lose your job or for a unexpected medical or family leave.  This way you will have ‘your income’ ready and waiting for that time.  But remember, this is money for living expenses only, no outside entertaining or eating out, just rent, utilities, food, insurance, car expenses. Nothing else!

By this time, you will both know what is going on financially in your relationship.  A must for all couples.  And should you need to dip into the emergency or 6-12 month reserve accounts, you’ll need to replenish whatever you took out.

If you’re in a relationship now, but not married yet, now is the time to do this, before you ‘tie the knot’.  In that way you won’t run into any financial surprises down the road.

 

Prenup – What Is It??

Getting married?

A Prenup is a legal document drawn up because either one of the couple getting married ‘has money’…… whether it is ‘family’ money or money held in a trust for them or maybe because one of them owns or co-owns a business.

The Prenup will keep whatever that money is and however it is involved with the person, it will keep it totally separate from the marriage money, and in the event of a divorce it will also keep it ‘safe’ from any payments or sharing of it to the other individual.

The Prenup is drawn up and signed ….. Before….. the marriage takes place.

And yes, sometimes it may seem unloving or cold or some other adjective to describe it, but it truly is not. It is a ‘vehicle’ to keep the money as safe as it was before, during and after the marriage.

The ‘other’ person of the couple will usually share in the benefits of it during the marriage, ie: a home, car, clothing, entertainment etc, but should the marriage dissolve for any reason, that money is safe from the divorce and any ramifications of it…… as though it weren’t there.

If either of the couple has money or owns a business, a Prenup is definitely something that should be drawn up legally and before you say ‘I do’.

Things I Wish I Did or Did Sooner

Ahhh Wishing…….

Maybe because I grew up just post WWII where money, food, actually just about everything was hard to come by, or maybe it was because I was one of 7 children growing up (or a combination of all), I learned early on to ‘make do with what we had’, never, never, never waste anything, if we were done with an item and it still had ‘life’ in it, pass it on to someone who could squeeze the life out of it. And, share.  All these things were good lessons, wise and used by all (or most) around me. Second hand clothes, shoes, and everything else was perfect for us. And we may not have known where it had come from, but we were sure either Ma or Dad had been very thankful as were we, because it was ‘new to us’.

Maybe all that is reason enough to know I was very good at saving money when I earned it. When I earned any money, one half of it went directly onto Ma’s bureau as my ‘room and board’, and to be put to bills. The other half I could keep, and had to use it wisely as I’d now be purchasing my clothing, bus fare, or anything else I needed.

Dad was the one who taught me how to use a credit card…..with only a few sentences…..’if you use it, have the cash ready and waiting when the bill comes in’…..and I’ve followed this rule all my life, and so, I’ve never, not once have I ever paid a late fee or finance charge in the decades since. These things … all good.

However, although I did save, and save something from every dollar I earned (I paid myself first), I wish I had put that hard earned savings into better ‘vehicles’ for the long haul to retirement.

I allowed a financial adviser talk me into putting the bulk of savings into an annuity. At the time, the interest rate was 3%, which was a bit better than a CD at a bank…… and so……. 20 years later, it is still getting that same 3% because I couldn’t take it out (there are rules), and now that I can, but am still limited to a 10% withdrawal or pay a penalty if more than that, I also have to pay taxes on everything I do take out……. This basically dwindles down the total amount I see when they send my my quarterly or annual statement.

Had I put my money into a Roth IRA, I would have paid taxes at the time when I was working and it would have been taxed on my income level, but when I wanted to take any (or all) out now) there would be no taxes to pay on it because it would have grown all those years tax free.

And so, there is nothing I can do for my benefit now, but what I want to do instead is to tell you… If you are working, you are allowed to put $6,000.00 per year into a Roth IRA tax free account, which will compound and grow.

Yes, this is only $6,000.00, but if you’re able to do more, there are other ‘retirement vehicles’ out there….. just run the other way if someone mentions an annuity.

These annuities are ‘sold’ by insurance companies, through some financial ‘advisers’, who all get a large commission chunk from you for opening up the annuity account.

If you are hiring a Financial Adviser, get a Fiduciary Financial Adviser….. one who is legally bound to act with your best interest at heart.  So, always ask…… “Are you a Fiduciary?”….. if he/she says ‘no’, then run the other way.

De-Clutter For Less Stress

Start clearing out…….

If your home has too much in it… too much furniture, too many clothes, duplicates (or more) of the same things……  then it’s time to de-clutter.

We often, and unconsciously, collect things we truly don’t need or won’t use…it’s human nature. But what it does actually is it brings stress into your life. Your home gets bogged down with stuff. Stuff you bought because of instant gratification, or trinkets you bought on a trip, or clothes purchased on sale because of the price, but actually don’t fit properly, or worse, you don’t love on you. Again, human nature.

If it’s knick-knacks, it means you have to dust them, if it’s clothes your closet is jammed with unworn items causing an ironing job each time you wear an item, or shoes and boots have become a mountain of those you forgot you had and so bought another pair (hidden at the bottom of the pile). Or maybe it’s kitchen items you have duplicates of, or gadgets you use only at holidays or maybe once or not at all.

If any of this sounds familiar, then it’s time to clear things out.  And though it could appear as an ominous task, just take it category by category….. your bureau one day, your shoes another, closet next, kitchen another day and so on.

As you do this, think of the money you spent on all this stuff…… okay, lesson learned.

Start clearing, see if you know someone who can use the item, or donate it to a shelter (they can use most anything, even hangers).  Doing so, gives you a dual good feeling, your home is becoming clutter free and you’ve helped others.

Moving forward only purchase what you truly love, truly need. Stop impulse buying or buying something just because it’s on sale or that you’ll barely use.  Think of the cost and how much use you’ll get from the item…..  If it costs $50. and you use it once, it costs $50 for its’ use, but if it costs $50. and you use it dozens of times then it’s a small cost for its’ use.

With less clutter in your life, you will have less stress……and more money in your savings account.

Don’t Wind Up Being House Poor

Don’t strap yourself with too much house.

There are definitely some things you need to  consider when choosing a home you’d like to purchase. Location is right up there on top, and of course, price and size.

Since it’s best to put at least 20% down payment on it to avoid mortgage insurance. Keep your budget in mind as you shop for a lender who will go to the high side of what you ”can afford”. You set you highest price keeping in mind that there are always costly surprises over time, and you need to be sure to have money set aside for the ‘what ifs’. So stay under their figure.

Don’t go for all the bells and whistles. They are where the dollars rise sharply in the listing price. And remember, once in there, you may want something different such as paint, carpet, flooring, larger shower etc.

Don’t buy too many rooms. Remember, you have to fill them and heat/cool them….and pay taxes on them. It’s always nice to have an extra bedroom which can be utilized in many ways. This home may be your forever home, but you more than likely will use it at a first step towards home ownership, giving you ideas and lessons as you move forward.

Remember, your PITI, principal, interest, taxes, and insurance should be no more than 30% of your take home income, and ideally, 28%. This will keep you more in line with staying within your budget.

You’ll want to put aside approximately $500. for a home inspection.  This will tell you what is wrong with the property and approximately costs to repair it.  If it is too costly, now is the time to have the sellers pay for the repairs, or give you the money to do so. A home inspection is very important, don’t neglect it. Also, don’t forget that at closing, you’ll need approximately $5,000 for closing costs (Registry of Deeds, Lawyer, etc).

And it is a very good idea to do a Homestead Act at the time of closing. It costs only $35. and is money well spent.  Mention it to your Lawyer that you want it at that time, and it will protect your home from anyone who may sue you. It covers about $300,000. and protects your home for as long as you own it.