Twila Van Leer

Make Couponing Worth The Effort

December 24, 2017 By Twila Van Leer

With new shows devoted to couponing coming online all the time, even those who have been doing it for years can learn new tricks.

Finding a strategy that suits your own lifestyle and budget is critical. Here are some of the major do’s and don’ts that should guide your online couponing activity:

Look for a coupon any time you shop online. Before clicking the “buy” button, search for “your store of choice” for coupons and deals. Use a search engine or go to reputable websites that have a record of providing quality coupons.

Don’t go overboard. There is little benefit in spending hours searching for a $3 “bargain.” Know when to quit.

Look for alternatives to shipping costs. Many retailers offer site-to-store options so a quick trip to a local outlet will replace the $5-to-$10 shipping fee.

Don’t buy an item simply because it offers a coupon. Evaluate the big picture and hold off buying until you are sure it is financially sound. Impulse buying is fatal.

Ask for help in finding deals. One of the advantage of couponing online is that you can share the experiences of others. When you have a question, ask. Using the network is more efficient than unspecific hours of browsing and searching.

Be aware of too-good-to-be-true bargains. Almost inevitably, they are. Be realistic about what deals you might find. Be willing to settle for “good enough” if you feel uneasy about a prospective bargain.

Don’t expect that you will be a couponing guru in the first week. Being able to get the best results is largely a matter of experience. It takes skill and some people just naturally get better results than others. On the other hand, don’t be too quick to give up. This is a process that needs practice.

Don’t become obsessed. You can make your life very stressful and develop bad qualities such as stinginess, false expectations and spending money for dubious bargains. If you are not enjoying it enough to be worth the effort, quit.

Strike a balance. It’s all about time-management, resourcefulness and efficiency. For more information, follow Investopedia on Facebook.

Holiday Spending And Stress

December 22, 2017 By Twila Van Leer

If it’s getting to you, coming up with ideas for just-right gifts compounded with worry about what the spending will do to your finances when the holidays are over, read on for eight tips on how to cope.

Set limits on spending. Look on it as an opportunity to get your budget in shape. Let reason reign. It’s a simple fact that you can’t spend more than is available and stay on an even keel. Your gift-buying budget just can’t be allowed to dip into the bills you must routinely pay. If you feel you must have a little more to spend, it has to come from such things as eating out, entertainment, etc. that are expendable.

Make your own “naughty and nice” lists. You aren’t Santa. You don’t have to give to everyone in the world. If you still compelled to spread holiday cheer, bake some cookies, make some fudge or put your talents to work on simple gifts that don’t deplete the budget.

Budget realistically. Consider your place in life at the moment. If you are paying off student (or other) loans, for instance, let that guide your buying choices. Remember that your parents and other older people on your list got where they are through years of working and being careful of spending. Likely, their gift-giving was more modest then.

Coupon. The stores are full of bargains for the holiday shopping frenzy, but don’t overlook the potential for additional savings in online purchases by doing a quick web search for coupon codes for your favorite online outlets. Look through the advertising that arrives in your mailbox during the holidays. Comparison shop for the items you intend to buy.

Give time instead of gifts. Some of your family and friends would value a visit that includes little gifts and lots of hugs. Consider calling cards that will give them the opportunity to chat despite the miles between you.

Develop better spending habits. For every dollar you spend on gifts, try to squeeze out a way to offset that dollar by economizing somewhere else in the budget. If you can keep the budget even, there will be more to save at the end of the season. Or put the difference into a special savings account that will ease your way through the next holiday surge.

Give personalized gifts that are of more value to the recipient than something expensive but not so meaningful. If you have special talents, share them. Bake a cake or pie for a family member who is kitchen “impaired.” Give a friend a kitchen tool and a recipe for something he or she particularly likes. Make a personalized card – anything that speaks of you.

Organize group volunteer efforts. It’s likely your friends are coping with the same holiday challenges you are. Get together and spend a day at a local charity instead of giving gifts. You’ll spend quality time together and get an infusion of the spirit of the holiday. Take photos of the volunteer project and share them after the fact.

Bottom line: Don’t let debt rob you of the joy of sharing. A year-long headache as you struggle to repay is not worth it. If you can come out of the spending season with your finances intact, it will be the greatest gift you can give yourself.

Get A Handle On Retirement

December 20, 2017 By Twila Van Leer

The future is a murky place. No crystal ball has yet been invented that will tell you exactly what financial realities you will face in retirement. Today’s Millennials, GenX-ers and Baby Boomers are all approaching the zero hour with lots of questions. So many variables! Marriage, babies, divorce, bills, bonuses, job changes and the country’s shifting economy all play into the equation.

Without offering a rigid, one-size-fits-all solution, here are some ideas that you might consider as you contemplate the end of your working years:

Those in their 20s and 30s are at the entry end of careers, often straddled with student debt, credit card debt and high living expenses. Nevertheless, now is the time to start thinking about retirement savings. It comes faster than you’d suppose.

Consider saving 15 percent of your pre-tax income. Sounds like a lot. But that is the figure experts in the field say is necessary to have a health retirement.
Take advantage of ”free money” such as employer-sponsored 401k programs, which often offer a matching contribution to expand the benefit. If that seems too high a goal now, put whatever you can into a work-sponsored savings option or into personal savings. Look into profit sharing options if your employer takes this approach to helping employees to a healthy retirement. If you have to start small, plan to add a percentage to your savings each year until you reach the 15 percent goal.

Plan and budget conscientiously, not haphazardly. Keep your must-have expenses at a level not more than 50 percent of your take-home pay. Some items, such as housing, food, health care, transportation, child care and debt, can’t be avoided, but they may be flexible. Study your own circumstances and determine if there are places to cut, even if it means a little temporary sacrifice to make it work. Turn down the thermostat in winter, up in the summer, to save on heating and cooling. Buy groceries and clothing when they are on sale and brown -bag it to work. Minimize eating out.

Try to have three to six months of essential expenses in a savings account in case of an extended emergency. Think of a contribution to this fund as a monthly expense, not separate from other “musts.” After you have this three-to-six-month cushion, save for short-term expenses that pop up unexpectedly. Consider having these savings taken from your paycheck and deposited in separate accounts automatically.

Especially if retirement is some decades in the future, it gives you time to ride out the inevitable rises and falls in the stock market. Stocks have traditionally produced higher long-term returns than bonds and cash, despite the volatility.

Keeping a balance between accounts where retirement withdrawals are taxable and those where withdrawals in retirement are taxable and those where withdrawals are tax free can help manages taxes when you are living on that retirement income.

An annuity is one way to create a simple and dependable income stream that is guaranteed for as long as you or your spouse lives.

Since Social Security may be a significant factor in your retirement, make the most of the government’s program. The longer you wait to take out Social Security, the higher your monthly benefit will be. For instance, in a very simple example, a person retiring at 62 may receive $1,200 per month, while one who waits until age 66 to retire will receive $1,600. If you wait until age 70 in this scenario, the monthly benefit will be $2,112 per month. The average life expectancy for a woman now is 89 years.

Married couples should look at a number of options that would maximize their retirement income through Social Security. Divorced persons also may be able to claim a former partner’s benefit, if it is larger than their own.

Although there are many variables in trying to determine how much you need to have to live on after retirement, there is a general sense that between 55 percent and 80 percent of the amount that you earned is necessary. While some expenses you have routinely paid while working, such as savings, taxes and insurance, you may find that out-balanced by new expenses such as health care, travel and new insurances.

If you are coming close to retirement, make a detailed budget to see how your money will need to be re-directed. Check your expected expenses against all potential sources of income. Personal finance experts advise that you plan to withdraw not more than 4 percent to 5 percent of your retirement assets per year, adjusted for inflation.

It is essential to have an estate plan with clear directions about who is to inherit your estate when you die. Planning goes beyond a will. You may need expert advice to help you plan distribution in a way that will help your heirs to pay less in taxes, fees and potential legal expenses.

When retirement is a considerable way down the road, it is easy to minimize the importance of budgeting and saving and chafing to have to part with money you could spend making life better in the here and now. But thousands of elderly Americans who are now scratching their way through retirement will tell you that it is worth it.

Save Or Spend? Why Not Both?

December 18, 2017 By Twila Van Leer

Spend or Save — A successful balance between spending now and saving for the future depends on having a thorough understanding of your earning and spending habits.

No one who is committed to financial well-being would deny that savings is part of the plan. But do you deny yourself adequate spending on the here and now to meet those future goals? People who advise young couples, in particular, spend time in discussing the issue.

Striking a successful balance between spending now and saving for the future depends to a large degree on having a thorough understanding of your earning and spending habits.

If you want more money either to spend now or to put toward the years ahead, it has to come from the resources you have. You must understand your current spending habits and practices if you want to make an adjustment in either category. Check your weekly spending. That’s easier than making a monthly check and makes it easier to implement changes if need be. See if there are areas you can trim spending in favor of savings, but without sacrificing essentials.

Analyze your wants and needs and decide where your priorities lie. The more clear you are about what you want to accomplish with your money, in both long and short terms, the easier it will be to say “no” to temptations to overspend. For instance, if what you really hope to do in the long haul is travel as a couple, it will be less difficult to bypass eating out. Rewarding yourselves with an actual trip after a period of economizing will make it worth the sacrifice.

To whatever extent possible, limit monthly bills. Things such as rent, utilities, student loan or other loan payments fall into the “must pay” category. Adding to this list by such things as buying a new car you want but don’t really need is limiting your ability to put money elsewhere, including savings. Committing money to new “wants” diminishes your ability to choose.

Automate your savings to meet current and future goals. Having savings automatically withdrawn from your paychecks reduces the temptation to spend the money. Direct deposit also gives you the option of setting up separate savings accounts for different purposes. You can more easily see the progress you are making toward certain goals. Over time, as your pay increases, you can put a portion of each additional amount into savings. That should satisfy your appetite both to spend and to save. Ditto cash gifts. Bequests and other unexpected windfalls you might receive.

Allow for a little spontaneity. Build it into the budget if necessary, so that if you decide on a little splurge, it won’t make a difference to your long-term goals. A soul-satisfying spree now and again makes careful budgeting more satisfying.

Do A Year-end Financial Checkup

December 16, 2017 By Twila Van Leer

As 2017 fades into history, it’s time to take stock of your financial health. Visit your financial advisor if you have one. If not, ask these questions to gauge how well you are doing and prepare to make adjustments if necessary.

Income: Is your income likely to increase or decrease in 2018? Will you be making a job change or starting a new business in the upcoming year? Be certain you are aware how this might affect the status quo.

Retirement savings: Are your personal, 401(k) or IRA savings enough to reach your retirement goals? Be sure you are taking full advantage of your employer’s retirement options.

Housing: Are you house-broke? Considering a new home or a refinance? Look carefully before you leap. Maybe it’s time to think of a reverse mortgage.

Savings: If your income is likely to see an uptick, consider putting more into savings and an emergency fund.

Estate planning: Have you looked at all the tax provisions that will help your heirs retain more of your estate?

Insurance: Reassess your life insurance. Does it provide sufficient coverage at an affordable rate? There are dozens of options. Look for the one that fits your needs.

Health care: Are you covered for all possible health needs? Is it possible to start or beef up a health savings account? The field is very volatile at present, so adequate coverage is essential.

Medicare: You are a year closer to being able to enroll in the national health program if not already there. Have you looked at a supplemental plan to cover what the plan does not?

If you opt to meet with your financial advisor to do the year-end analysis, be sure to take mortgage statements, details about investments, your latest retirement prognosis and any other relevant documents. Discuss long-term and short-term goals, lifestyle changes, savings strategies and any other relevant issues.

Head into 2018 confidant that you have a finger on your financial pulse and are moving in a positive direction.