New Years Resolutions

Not Too Late To Make Personal Finance Resolutions

January 17, 2015 By Twila Van Leer

Paying bills online is the easiest way to pay your bills on time.

By now, most of the resolutions made on Jan. 1 are in the wastepaper basket. Experience shows that most of them don’t last into the second week of the new year. But if you’re willing to take a second shot at it, here are some ways you can improve your financial standing in 2015:

Analyze how you pay your bills. Many, if not most, utilities, credit card issuers and merchants, give you the option of paying online. If you decide that is a good approach, give some thought to whether you will direct your payments to the creditor’s online payment center, or utilize your bank’s bill pay program. Either will allow you to make payments directly from your checking account and in some instances, automatic withdrawal is available.

These payment options have benefits. They save you having to keep track of payment due dates. The bank’s online bill pay keeps all your payment data in one site. It can save you time for more productive things.

If you prefer paper payments, get a system for storing all bills and receipts correlated to your banking. Set a time to review each month and balance your checking account. Having all your bank accounts – checking, savings and primary credit card all at one institution streamlines accounting.

Track spending. Knowing how your money comes in and goes out is critical to good management. Monitor accounts weekly. Watch for unexpected fees or unauthorized activities. Be sure to note ATM withdrawals as you go. Keep a spending log, either on paper or electronically, documenting every transaction and purchase. Trim if you need to.

Build a budget. Knowing up front where your money needs to go lets you make more confidant decisions about spending and investing. It is the foundation for your personal finances, a plan in concrete that keeps bills paid and allows for working toward the “rewards” of your labor – vacations and travel, further education and retirement.

A session or two with a qualified financial planner may be useful, especially as you embark on this resolution to make you money work for you. It can be done. Just do it.

Family Budgeting For The New Year

January 12, 2015 By Twila Van Leer

Involve the whole family in planning your budget.

Making resolutions as you head into a new year is simple. But a good hard look at the year disappearing over the horizon is just as important. If better financial management is your objective, it becomes the basis for what to do next.

In fact, your family may be well served to think beyond 2015 as you go through finances with a fine-toothed comb. Involve everyone in the group by making specific assignments. Tweak past plans to meet new realities related to aging children, changes in employment and all the other eventualities that go with real life.

Start with a review of assets and liabilities. Savings, investments and loan status all will have changed and need to be considered, as well as income. There must be room for possible challenges to your financial standing. If you find that debt leaves you with a negative net worth, make that the focus for the near future. Plan how you can attack debt through increased payments or finding more sources of income to beat it down. Don’t be one paycheck from poverty.

Involve all household members in finding way to economize, while focusing on the “musts” such as housing, food, transportation, health, utilities, tuition and clothing and prepare to resist temptation to stray off into unnecessary expenditures.

Don’t plan how you can pay tuition before the student is ready for classes. Prioritize spending to meet the costs that can’t be deferred. Keep everyone in the loop so they won’t be surprised when austerity comes to visit. Learning about trade-offs early is good training for life.

If you have problems sticking to a savings plan, make it automatic at the bank. If you don’t have the cash in hand, it is easier to part with. Make the importance of savings a household commitment.

Plan meals in advance and shop in bulk where possible. Monitor waste in the kitchen. Make conservation of electricity, fuel and water regular habits by creating awareness among family members.

Investing has to be an action item. There is no other way to grow money. It takes study and time and resources. Make ongoing financial education part of the plan. Use your networks to learn more and identify mentors who can help you put your money to work. Get an “accountability” partner, a family member, if feasible, to encourage follow-ups and reviews of your action plan.

Make your resolutions based on practical experience and you’ll have more chance of actually keeping them.

Top Ten Financial Resolutions For 2015

December 31, 2014 By Twila Van Leer

The most popular financial resolution is to SAVE MONEY.

Fewer than one in three Americans will resolve with the beginning of the New Year to get their personal finances under control. That’s too bad, because the experts tell us that making changes in money management is easier than losing weight or dropping a tobacco habit.

If you are among those who, according to the sixth annual Fidelity New Year study, are determined to take on more productive financial control, there are approaches that will increase your chances of success. (The Fidelity study showed that three in four who made the resolution in 2013 saw progress toward their goals. And about one in four achieved all the aspects they opted for.) Here is the advice from experts:

1. Save money. Before anything else, set up an emergency fund. Most financial planners advise that three to six months’ salary should be in reserve in case of unforeseen life events, such as a medical emergency or costly car repairs. Put the money into a reserve that isn’t easily dipped into, such as an online savings account. Then resist the temptation to use the reserve for discretionary purchases.

2. Pay down debt. Start with the highest-interest account and add a little extra to each payment. If you come by a lump sum, advise the lender that you want to apply it to the loan principal. That means interest savings.

3. Look for ways to supplement your income. Avoid the hype of multilevel marketers who want you on board. But if you have a skill, a hobby or specialized industry knowledge, try to find a market for it. Sell unnecessary possessions on eBay or put your artistic creations on the Etsy outlet.

4. A budget is crucial to your success. Review your checkbook for several months and see if you can pare. Order a free credit report from one of the three reporting agencies. They will provide one a year. Use the information to plan which accounts should be paid off first.

5. Every member of your household needs to understand the elements of your finances. According to the experts, this is an area that often is neglected. If you are planning to marry, make a thorough financial review part of the pre-planning. Plan together exactly how you will handle more than one income and try to develop a shared vision of how you will approach spending, debt and other issues.

6. If your employer has a program for matching savings, take advantage of it. See if your bank or credit union offers free or low-fee financial planning. Ask if there are ways you can get better earnings from your savings and investments. Opt for an automatic savings deduction from your paycheck to help you keep your resolution. Contribute the highest amount allowed, if possible, to retirement accounts or other plans designed to give you tax advantages.

7. Have your records in good order so you can file taxes early. Apps such as Mint can be useful in keeping your financial data organized and track things like daily spending.

8. If you resolve to spend less, that’s nice, but not easy to conform to. Better to give yourself an allowance and stick with it. Study your budget and all aspects of your finances regularly to see if you can spot places to cut. For instance, are you paying more for insurance than necessary? Get a professional audit to see. An energy audit may offer suggestions for cutting costs in that category. Websites such as our site can give you hints about day-to-day expenses.

9. If you have time and energy, use them to improve your earning power. Take classes, which may be tax deductible, or investigate the job market to see if you can ease up the ladder. Learn about investing money in stocks and bonds. Or invest in your own business if that is feasible.

10. Set up your computer for automatic bill paying and automatic withdrawals for savings and to meet other financial goals. A financial program such as Quicken can provide an ongoing updated picture of your finances.

With all this in mind, get ready, get set, resolve to make 2015 your best financial year yet.

5 Experts Suggest New Year’s Resolutions For 2015

December 24, 2014 By Twila Van Leer

Every time you tear a page off a calendar, you gain a new day to make new ideas and progress. — Every time you tear a page off a calendar, you gain a new day to create new ideas and progress.

Deciding to do better in the New Year is a time-honored custom. But the custom also tends to become the butt of jokes when the majority of people fail to follow through. The usual resolves, such as losing weight, saving money and getting healthier, often drop by the wayside in very short order.

USA Today asked for advice from five leading national experts about how retirees can make – and keep- New Year’s resolutions. Their suggestions:

Dallas Salisbury, CEO of the Employee Benefit Research Institute: Focus on health issues by analyzing your attitude, exercise regimen, nutrition, sleep habits and quality time, including interactions with extended family. Work on the weak spots. Take a hard look at income and spending. If they are out of sync, make adjustments to fend off financial stress. Be on the watch for people who need help and do what you can to make life better for them.

Eleanor Blayney, consumer advocate for the Certified Financial Planner Board: Resolve to start early on tax issues. Don’t wait for April to plan to meet this year’s demands and to look beyond. Retirees have more leeway in managing their finances. Look at pretax options such as 401(k)s and after-tax options such as mutual funds, savings accounts and brokerage accounts. If you haven’t already opted in to Social Security, look at your possibilities. The longer you wait, the more income you can receive.

Dr. Elliott Antman, cardiologist and president of the American Heart Association: Commit yourself and those with whom you have influence to creating a health culture. Don’t wait until you have to focus on treatment when something has gone wrong. There are ways to minimize the risk of heart disease and stroke. The AHA is a resource to research these preventive steps. Visit Heart.org or the mobile app heat360 Coach, which advocates seven steps: get active, control cholesterol, eat better, manage blood pressure, lose weight, reduce blood sugar and stop smoking. Become an advocate to urge public officials to protect the environment against unhealthy pollutants.

Carol Ewing Garber, president of the American College of Sports Medicine: Resolve to sit less, do more intentional exercise. Sitting increases the risk of heart disease, type 2 diabetes and cancer. Even walking around your house can help. Get up and move at least once an hour. Try to walk at least a half an hour a day at least five days a week. Start slowly if you haven’t been exercising and do the exercise in ten-minute increments if necessary. Stretch, lift hand weights or do other resistance exercise, such as modified push-ups against a wall. Lack of exercise can contribute to loss of muscle and strength, impeding living requirements.

Vandana Sheth, spokeswoman for the Academy of Nutrition and Dietetics: Eat regular meals and snacks. Skipped meals affect energy and encourage over-eating at the next meal. Keep an eye on portions. Retirees may not need as much food as they did when they were younger. Increase protein intake by eating beans, lentils, nuts, seeds, lean chicken, fish, eggs, cheese, etc. Try for variety. Substitute whole grains for processed grains. Quinoa is an option that is as easy as rice and has more protein. Whole grain tortillas have more nutritional value than flour versions, as do whole grain breads. Stay hydrated, and no beverage beats water. Add a squeeze of lemon or a sprig of mint for flavor.