2003 TIMELY
TIPS ARCHIVE The
material presented in our archive is for informational purposes
only. TTS has no control over content on web sites that may have
links within this archive.
It's the first of the year and one
of the most important resolutions you can make is to get your
financial house in order.
An important tool for organizing your
finances is a budget. In order to track your spending,
keep a record of everything you spend money on, including pocket
change, for a month. Collect receipts and keep a log in a notebook
or even on an index card. At the end of the month, you'll know how
much you're spending on incidentals.
Add how much you pay for fixed expenses such as mortgage or rent,
utilities, automobile expenses and debt. Your fixed and
nonessential spending (incidentals) must be less than your monthly
salary.
Look for ways you can spend less (even if you're within your
budget) by a certain percentage each week. If you're spending $200
a week and figure out how to spend $50 less per week, you've cut
your spending by 25%. Some ways to save are by not getting that
latte, taking your lunch to work, not falling for impulse
purchases. You can think of lots more.
Look for ways to trim your fixed costs. What expenses can you cut
or do without? Cheaper cell phone plan, shop around for insurance,
get rid of cable TV, etc.
Savings should also be included in your
budget. First put the maximum you can afford into your
403(b), 401(k) or 457 plan. The government helps you fund your
retirement by not taxing the money you contribute to these plans.
You will be taxed when it is withdrawn.
You need 3-6 months of living expenses in a short-term savings
account for emergencies. An easy way to accumulate this is to have
it automatically deposited from your paycheck. You won't feel it
so much if you've cut your spending as discussed above.
Put your pocket change in a container every night. At the end of
each week, put it into your short-term savings. You'll be
surprised how quickly this adds up. This could be used at the end
of the year for vacation expenses or Christmas gifts.
After your emergency account is funded, make a habit of saving a
minimum of 10% for long-term goals. If you've been making monthly
payments for a car or appliance, once you pay it off, continue to
make that payment into your savings account.
It is very important to pay off your
debt. You'll be able to save much more money once that
is accomplished. If you have a credit card and are carrying a
balance, make it a priority to pay it off first. Most cards have a
very high rate of interest. Once you have paid it off, do not use
it unless you have the money budgeted to pay the balance each
month. If you had $10,000 charged to a credit card and only paid
the minimum the company required, it would take you 100 years to
pay it off!
As you watch your account balances grow and spend according to
your budget, you'll find you have more financial freedom and have
developed habits that will carry you throughout life.
Now that your finances are in order, make a resolution to
organize your important documents and
records. Keep your statements, 1099's, W-2's and other
records necessary for claiming your tax deductions together. This
will make it easier when you start preparing your tax return.
Check them immediately for errors. It will be easier to resolve
them now than when you are in the middle of doing your taxes.
Filing cabinets or file-sized boxes are fairly inexpensive these
days, and you can file away your bank and other financial
statements, insurance papers, mortgage or lease, and other
important documents. They'll be readily available when you need
them. There's nothing worse than trying to find a document quickly
when it's in a pile of papers.
September
11th Attack:
The
IRS has a special toll-free hotline to answer questions from
taxpayers whose ability to meet their tax obligations was affected
by the September 11th terrorist attacks: 1-866-562-5227. It
also has a website which contains links to IRS notices and news
releases on relief to the victims: www.irs.gov/relief/index.html.
Stolen
Wallet or Purse:
If
your purse or wallet is stolen call and cancel your credit cards
immediately AND contact the national credit-reporting agencies to
have them flag your credit file with a fraud alert. The
thief could apply for and obtain credit in your name.
Contact Equifax at 1-800-525-6285 (www.equifax.com);
Experian at 1-888-397-3742 (www.experian.com);
and, TransUnion at 1-800-680-7289 (www.transunion.com).
Stolen
Social Security Cards:
Report
stolen Social Security cards to the Social Security Fraud Line at
1-800-269-0271 (www.ssa.gov).
Financial
Planning Client Rights:
To
find out your rights as a financial planning client contact the
Certified Financial Planner Board of Standards (www.cfp.net).
House
Fires:
It
has been reported that the number of house fires from burning
candles in the home have doubled over the last ten years. Be
careful when burning candles. Never leave a burning candle
unattended or leave one with a child. Always extinguish a
candle before going to bed; half of the fires were the result of
falling asleep with a lit candle in the bedroom.
Educators, here are some
tips for first aid and accidents:
Burns - run cold water over the burn or wrap ice in a towel (or use a package of frozen peas) and place on the burn. Never put ice directly on the skin.
Nosebleeds - allergy season and dry heat can bring on nosebleeds. Put a compress on the upper lip pressing against the nostril. Keep the pressure on until bleeding stops. Do not hold the head back. Blood goes down the throat and can cause the student to vomit.
Lost tooth - Many a tooth is lost during school. Don't worry about the baby teeth. For an adult tooth that is knocked out, put it in milk or if the child is over 12, they can hold it in their tooth socket. Get them to their dentist immediately. The tooth must be reimplanted within an hour and a half.
Poisoning - Call the poison hot line immediately. The national number is
800-222-1222. Do not make the child vomit or give them milk, treatments have changed. The hotline will tell you what to do or the emergency personnel will administer the proper treatment. More than 75% of calls to the hotline can be handled entirely by phone.
Seizures - Place the child on their side in case they vomit. Do not put anything in their mouth.
Do you teach younger kids? Help them
learn right from left by putting a happy face on their right shoe or show them how the left index finger and thumb form an "L" for "left" when they hold them up.
Ways to help older kids not become victims over clothing at
school: If there are gangs at school, find out their styles and colors then encourage students not to wear them. Also, discourage students from wearing jewelry or expensive watches, leather jackets, or athletic shoes. Caution them to not wear clothing with offensive or derogatory messages. Warn girls to avoid see-through and midriff blouses, too low hiphugger pants and short shorts.
Did you know if a child's backpack weighs more than 20% of their body weight, they're at risk for back strain or injury? Students should leave things in their school lockers and remove all unnecessary items. Shoulder straps should be tightened so the backpack is flat against their back. There are some
new great backpacks out there with rollers on them.
If you have an email address, you've experienced spam. Most of it seems to be mortgage and insurance rates and online drugstores. However, there's a new pusher to deal with, kids are getting
illegal drugs online. Be aware. Parents should check credit card statements thoroughly and investigate unusual charges.
With interest rates down, many people are buying homes and refinancing their mortgages. If you're shopping around for a mortgage, don't give out your social security number. That way it won't be reported to the credit bureaus. Your credit score includes how often you authorize lenders to view your credit report and could make it harder to get a mortgage. Lenders could think you have too much credit or you've been rejected.
Now is also the time many people may be thinking about buying a
car, new or used. When you go for a test drive, be sure to drive the car the way you would if you owned it. If you travel, drive it on the highway but if you drive in town running errands, practice stop and go driving. Try parallel parking and parking in lots. Stop suddenly and see how the car responds. Check out the heating and air conditioning systems and any other features the car has.
Here are some web sites that give price quotes for new
cars:
If a manufacturer offers a rebate, don't let it affect your price negotiations. Since it comes from the manufacturer, it won't affect the dealer so get your best price before the rebate.
Try to start a bidding war between dealers. Get the best price from one dealer and call another to see if they will give you a better price.
If you're looking for a used
car, have the car inspected by a
mechanic you know and trust. He can look for signs that the car was in a flood or has been repaired after an accident.
The following web sites can help you research a
used car's
history: www.carfax.com
or www.autocheck.com.
Type in the VIN found on the driver's side dashboard for a full report. Cost is around $15.00.
