Budgeting Basics – Taking A Look At Some Helpful Tips

When is the last time you reviewed bank fees? Your homeowner’s insurance? Life insurance policies? Probably not all that often and that’s okay. I am not here to berate you. What I would like to help everyone find a better balance and simply set a plan to review the basics, so let’s make this as painless as possible and stop the procrastination.

1. Bank statements – Take a moment, look at your transactions. Are you being charged fees for your accounts? Have you tried to negotiate with the bank to reduce your fees or see what other options are available? Are you earning any interest, minimal or not, it is still needs to be factored into your final balance. Online banks usually offer better rates for many accounts due to less overhead costs and physical locations. Set aside 30 mins to do this review.
2. Insurance – Do you have life insurance policies? What type – term, whole life, universal life, etc?  Are your policies bundled together with the same company – home, car, life? What are your deductible amounts? Many times if you bundle and are a long time customer there are discounts to be had.
3. Cable – This one is painful. Cable companies are the enemies of many. This one requires more time and patience than other categories in my opinion.  Bundling usually helps but only bundle what you really need. Don’t add a home phone line if you know you are not going to use it. If you find you don’t work from home and only waste time on the internet, drop it, at least for a trial period to see if you can survive. If or when you sign up again you will likely be able to re-negotiate a better rate yet again.
4. Groceries – Do you use coupons? If your answer is no, you NEED to start. The normal excuses include, “It takes too much time” or “I don’t have the patience” or “I don’t know where to find them” those are, in fact, all excuses. If you get the Sunday paper, you get coupons. You can sign up for various stores, manufacturers, and websites that will have them delivered and customized right to your email inbox! Not only will you save money but you will have the opportunity to try new products due to promotions and for less money than you normally would. It is a win-win.
5. Utilities – Most of us already utilize all the other energy saving features such as regulating temperature via LCD panels and programming the thermostat but if you have the option to choose an energy supplier and have not shopped for the best rate you need to. This is easy and one of the best ways to save pennies a day that can really add up by the end of the year.
6. Maintenance – Are you paying for extra services you don’t need for your home? Lawn care? Snow removal? Take a look and see if you can cut back on costs or in all honesty get up off the chair and to the tasks yourself.  You can also take a look at vehicle maintenance here as well. If you are paying someone else to do simply things like replace windshield wipers and then complain you are being nickeled and dimed to death at the mechanic’s you need to start doing it yourself. Many auto stores will install them for you as soon as you make the purchase in the store. Take advantage of these services!
7. Taxes – Everyone gets excited over a refund, however if it is due to your withholding (total number of allowances) on your W-4 being too high it is time to contact HR and change it.  As always, I suggest you consult with your qualified tax professional (CPA).

Remember, these are just some basics to help get you motivated to review some bills, make some calls and see what improvements you can make. The point is, every little bit helps!

Thoughts On Loyalty

It is interesting how one little moment during the day, a word, an email, a sentence in an article can get your brain moving. Whether it is positive or negative and as a chronic over-thinker as many would say, I am guilty of both extremes on the spectrum. This week a simple “ah ha” moment was the result of reviewing my Twitter feed and some emails.

Say what you will about social media but for now, it is here and in my opinion here to stay. Twitter happens to be one form I have truly embraced and use constantly, in fact, I adore it. It is the most public and efficient way to distribute information and thoughts. This can be in the form of positive or negative feedback. Consumers can praise people and companies letting others know of their loyalty to a person or brand or bash them in mere seconds for everyone to see. I happen to like this, it holds people accountable. Rewards those who continuously do a good job. I am a cheerleader for anyone who shows genuine concern and has actions to back it up. If I can see results my loyalty is fierce.

This isn’t the case with everyone. No matter how well you may perform, you may never win over everyone  in certain situations. Certain people may always side with what is cheaper, quick or even the current popular idea or item with the groups/peers they are around. Worse yet, they may choose to not follow through on a final decision and be in a constant defiant state. Maybe they fear the change or to be different but whatever the situation my 2 favorite quotes to summarize what loyalty means would be the following:

“When we are debating an issue, loyalty means giving me your honest opinion, whether you think I’ll like it or not. Disagreement, at this state, stimulates me. But once a decision is made, the debate ends. From that point on, loyalty means executing the decision as if it were your own.”

— General Colin Powell

“Talk to people in their own language. If you do it well, they’ll say, ‘God, he said exactly what I was thinking.’ And when they begin to respect you, they’ll follow you to the death.”

   — Lee J. Iacocca

Dear Society, We Need To Review Basic Life Rules

The news has been full of negative, sad and just a general sense of malaise lately. Is it reality? Yes. Is it necessary? Also yes. Ignorance is no way to function as a society. However, if we look at the underlying causes of such issues a few basic rules seem to apply. Whether it is a business matter or personal, we need to constantly re-visit our purpose, our input and our reactions.

1. Action. Your action or inaction can harm others. Choose wisely.
2. Invest. Spend less than you earn even if others around you are not.
3. Respect. Give people the respect they deserve. It is most valuable thing you can give a person.
4. Communicate. Most failures or successes are a result of communication.
5. Appreciate. Show your appreciation. One of the most hated yet valuable lessons from my mom was the art of the thank you note.

Stay on course by being accountable. Keep a journal, a blog, discuss things with your best friend, spouse, significant other whatever helps you. No one is perfect, it isn’t about that. It is about being the best version of you that you can be.

Attitude: How It Affects You

I had a meeting with someone who was in need of serious help budgeting and managing the household decisions. Now although I make no money doing this, she was a referred to me so obviously someone knew I could give her the tools she needed to achieve her goal to get household expenses paid and organized.

I treated her the same way I would anyone else: Allotted the same amount of time, same tough love moments and same advice. I felt she would either walk away and hate me or walk away with the same fiery desire she had when she first called. Her attitude told me she had the desire to change but her confidence in her abilities would determine the follow through.

Would she be able to motivate others in her household? Would she be able to be the sole cheerleader initially? Would everyone else stick with the plan? Only time will tell for certain but when I called her this week to check on her progress she read me a list of what she had already accomplished and finished with, “ I knew while I was doing all of this that you would be proud of me!”

I am very proud. She has a lot to manage and instead of continuing to ignore issues she took control and formed a plan and is working on it. She has a positive attitude about this project and the future. This will continue to feed her confidence and I would be willing to say it will have a definite positive effect in her household.

Attitude is more than half the battle.

Easy Ways To Help Teach Kids The Value Of Money

As a browsed some articles, some Pinterest boards and creating a little craft of my own this past weekend, I thought a quick blog post was needed.

There are countless ways to help instill a good work ethic early in life, the value of earning money, saving it and also the value of giving to others, or paying it forward.

My favorite happens to be beginning with having your child earn some money through chores around the house, more money can be earned through special chores or if they choose to even be more proactive with their assistance.

As a special project, take 3 mason jars and have your child decorate them. One should be labeled “spend,” another labeled “save” and the last “give.” This helps the child understand that they must make decisions on not only how and when they earn their money but also how, when and where to spend it yet makes it a fun way for them to have control of something they can all their own.

Hope to see and hear about feedback from anyone out there that either already has a system like this in place or starts one!