Be Your Own Santa Claus

                                                              

Santa Claus or St. Nicolaus is known as a legendary saint and is the symbol of generosity. He gives to the less fortunate, goes all over the world, carries a naughty or nice list, loves children and inspires imagination. Santa answers and fulfills the hopes, wishes, thoughts, and prayers of children all over the world.  Santa symbolizes a belief in something.  The mere belief in his existence shows faith, innocence and a strong belief system. Santa Claus is always happy and full of joy.  Santa is young at heart and has an open heart showing love for all mankind.  Santa provides gifts to children and has a vast knowledge and memory of what each child deserves as a gift for Christmas.

Giving unites people of all races, cultures and backgrounds.  Giving eliminates fear and helps to relieve your burdens.  Giving to others helps you discover who you truly are.  The best way to give to others is to give to yourself first. Start by being the best person you can be. 

Make a commitment to learn something new every day.  Make another commitment to manage your finances on a regular basis.  Many hopes, wishes, thoughts and prayers are not fulfilled due to lack of money or not properly managing your money.  Money will not solve all of your problems but effectively managing your money with help you develop good habits that will transcend into other areas of your life such as patience, discipline, accountability, and time management.  Here are 19 ways to be your own Santa Claus.

1. Change Your Mindset.  Change the way you think about money. If you believe you will always be in debt or always be broke you will.   
2. Develop a Financial Plan. Write a list of your entire total monthly expenses including debt and write down your total monthly income after taxes.  If you do not have any money left over (at least 10% of your monthly income) look at the areas where you can reduce spending.
3. Pay down debt. Pay ½ the balance with the 1^st paycheck then pay the remaining balance with the 2^nd paycheck or pay the minimum monthly payment when you get the bill, then each week pay as much as you can toward the balance.
4. Become debt free. Pay more than the minimum monthly payment which helps pay your balance down faster so you can get out of debt. Keep debt balances at than 10% of your monthly income.
5. Keep money in your pocket. Do an annual check on your heating system or insulate your attic. Automate thermostat settings and use the lowest setting. Seal drafts and cover floors to retain heat. Open blinds during the day to let heat in. Find other ways to save money.
6. Plan for the unexpected. Create an emergency savings account to cover all of your monthly bills and expenses for 9-12 months. Create a backup plan if some financial crisis occurs and you need extra money. Have a plan A, B, C and D.
7. Go green. Help save the environment by filing your taxes electronically and get your refund in 2 weeks from the date of filing. Use tax preparation software like Turbo Tax or Tax Cut to help with the tax filing process. Purchase energy efficient appliances.
8. Shop like the rich. Set a budget and find bargains online, use coupons or shop at holiday sales. Mix and match basic pieces with fashionable accessories such as belts, earrings, bracelets, shoes and purses. Buy knockoff pieces for extra style. Shop at discount stores and outlets.
9. Cut back. See what areas you can reduce spending in your budget. A balance budget recommends 35% should go towards housing, 15% towards debt, 25% towards transportation, 10% towards savings, and 15% towards other expenses.  Reduce spending by 30-50% each month.
10. Save. Do at least one thing a week to save money, i.e. bring your lunch to work or bring coffee from home one day a week.  
11. Limit Credit Card Usage. Use your credit card for emergencies only.  Keep credit card balances at 20% or less of the credit limit. Pay balances off at the end of each month.
12. Plan for the future. Open a retirement account and save at least 10% towards your retirement each month. You will need 70-80% of your pre-retirement salary for a minimum of 20 years to have enough money during retirement or at least $1,000,000. 
13. Don’t be a question mark.  Know your net worth (assets - liabilities). Verify your net worth annually. Know how much you earn, how much you owe and how many assets you have. Use the figure as a baseline to increase your net worth on a yearly basis. 
14. Get Your Financial House in Order.  Organize financial papers and store in a centralized secure location. Backup financial documents and records saved on your personal computer.  Make copies of all personal documents and store in a waterproof fire proof safe.  Develop a will and update beneficiaries for life insurance policies.
15. Get insured. Make sure you have adequate health, auto, life, disability and long-term care insurance.
16. Don't stop at retirement. Don't just plan for your retirement, plan for your children's retirement. If you plan for your children's retirement or your grandchildren's college education this will ensure you have more than enough money to retire and enjoy your golden years.
17. Do better than your parents.  If you parents retired at 65 or had to work until they were 70 and had nothing to show for it, do better than your parents. If you retire at 55 be sure you have at least enough money to live on for 20 years.
18. Further Your Education.  Take training classes or get a college degree to increase your skills set and salary. Plan to take at least one training course every year during your career to stay current with industry standards and technology advances.
19. Consult a professional.  Contact a financial advisor or financial planner to help you determine your financial goals, where you want to live, the age you want to retire and the lifestyle you would like to have when you retire.

 

Avoid the December Debt Trick: Don’t Skip a Payment

This past week, I received my December credit card monthly statement from my credit union and the minimum monthly amount due displayed zero in all capital letters.  When I first saw the amount I thought there was some kind of mistake.  As I read further down the statement there was a note that offered me the option of skipping my December monthly credit card payment. 

At first that may sound like a good idea.  But upon further reading the skip a payment option came with a "gotcha".  You could skip a payment but interest would still accrue on your balance.  So, on my January statement I would get the surprise gift of paying two months’ worth of interest plus whatever charges I made during the month of January.   Well, I declined the offer and sent in a payment for my December statement.

The Skip a Payment option is usually offered by mortgage companies, department stores, credit unions or credit card companies at the end of each year.  It can be difficult to resist this temptation.  The offer usually comes during the holiday season when most families are struggling to make end meet or need extra money to buy holiday gifts.

Skipping payments only reinforces bad spending habits.  It seems easy and convenient but costs you more in the long run.  The only one benefiting is the credit card company. 

If you didn't charge anything else on your credit card for the rest of the month of December, you would still owe more money due to the accrued interest added at the end of the month on what you already owed. Some companies charge a fee for using the skip a payment option which is added to the total balance. If you are considering using a "skip a payment" option here are 11 things to consider.

1. The longer it takes to pay off a credit card bill, more interest and finance charges are added to the balance.
2. The new minimum payment will be higher and depending on your balance and you may not be able to make the new payment.
3. The only one benefiting is the credit card company.  Instead of paying now you pay later.
4. Offers usually sent to customers who have consistently paid the bill on time.
5. Joint accounts require approval from both parties.
6. You will not be charged a late fee.
7. Your credit will not be affected.
8. Interest accrues during the month skipped and a processing fee generally $25 may apply, a fee may be 70% to 80% of typical late payment fee.
9. Any fees associated with the skip payment option are due prior to the start of the skip month.
10. May result in a higher final payment for mortgage loans or home equity lines of credit.
11. For mortgage loans interest accrues including the principal deferred.

 If something sounds too good to be true, it usually is.

13 Ways to Save Money When Buying a Christmas Tree

                                                              

According to the U.S. Commerce Department 80% of artificial trees worldwide are manufactured in China.  Most artificial Christmas trees are made of possible metal toxins such as lead, contain non-biodegradable plastics and are thrown in landfills. 

In 2011, the annual consumer tracking poll conducted by Harris Interactive found that consumers paid more when buying artificial trees versus real trees. Nielsen surveyed nearly 30,000 U.S. households on behalf of the American Christmas Tree Association and found that the average cost of a real tree was $46 and the average cost of an artificial tree was $78. That is an interesting statistic. 

Real Trees outsell fake trees more than 3 to 1.  Sixteen percent of consumers cut their own real tree.  Real trees can be purchases from tree farms, nurseries, discount stores such as Wal-Mart, Target or Costco, hardware stores, retail lots, non-profit groups such as Boy Scouts and churches, some grocery stores and the internet.

In 2009, over 28 million Christmas trees were sold in the U.S. resulting in $1.2 billion in revenue.  It can take a minimum of 4 years and up to 15 years to grow a real Christmas tree 6-7 feet.  The top Christmas tree producing states are Wisconsin, Oregon, Washington, Michigan, North Carolina and Pennsylvania.  The most common Christmas tree species are:  scotch pine, white pine, fraser fir, douglas fir, virginia pine, noble fir and balsam fir.  Here are 13 tips to save money when buying a Christmas tree.

1. Know the height and width of the room you want to put the tree. The width should be 80% of the height.
2. Make a list of the specifications you want for your tree, species (type of tree), height, etc. Visit pickyourownchristmastree.org to view a chart that summarizes the traits of common trees.
3. Negotiate you may be able to get a cheaper price.
4. Buy on Black Friday.
5. Buy on Christmas Eve or the week of Christmas.
6. Get a permit from the National Forest Service for less than $20 and cut your own.
7. Buy a damaged tree.
8. Go to a hardware store, nursery, and discount stores such as Costco or small vendors and ask if you can purchase a floor model for a cheaper price.
9. Pick a tree native to your area.  If you don’t know which trees are native to your area, go to a nursery and find out.  Then purchase a tree from the suggestions they provide. Trees not native to your area will be more expensive.  www.thisoldhouse.com/toh/article/0,,20159801,00.html
10. Ask about pricing.  Some vendors or stores charge by the foot while others charge a flat fee.
11. Comparison Shop. Go to at least 3 stores to get price quotes to help you find the best deal.
12. Shop online to find better deals.
13. Use coupons. Groupon and Living Social offer coupons for Christmas trees.