One of the things I always shake my head at in the grocery store is the pre-packaged herbs and spices. Not long ago I found a retailer in my area that offers herbs and spices in bulk containers -- I measure out exactly how much I need, the cashier weighs it, and I save dollars per ounce. What an epiphany it was!
Buying in bulk provides a tremendous cost savings and typically fresher products. Bulk herbs and spices are not everywhere in our state, but I'm sure there are numerous online vendors.
Apart from the lower cost (b/c we're not paying for packaging, large processing facilities or national marketing), bulk is also less wasteful -- I usually only need a small quantity of each product; if I had a whole jar it would likely lose its flavor and I'd have to throw it out.
And now that I buy bulk, I have a reason to reuse the nice little glass jars from my previous pre-packaged buying mistakes (rather than have them stored at the landfill -- I heard today that Cheyenne has a mountain of glass that they're waiting for someone to recycle).
Happy bulk shopping!
Tuesday, September 29, 2009
Friday, September 25, 2009
Understanding Your Credit Score
As I was thumbing through a copy of Readers Digest the other day I came across a great article explaining how your credit score is computed and what your score means to you. Check it out at Readers Digest online and let me know what you think or if you have any questions that I can answer.
Julie
Julie
Wednesday, September 23, 2009
Access to Credit Card Information
I'm just returning from a trip having experienced a travelers nightmare. I was standing in the check out line of a busy store and realized that my credit card was gone. Immediately my mind raced through "when did I last use the card" and "where did I put it". I stood in that line and proceeded to thumb through my wallet fighting a sense of panic and dread. Fortunately I had enough cash to cover the transaction. So I proceded to my car to empty the wallet (twice) before I continued the routine of checking every pocket of my travel purse.....the card was gone.
I teach money management and have completed my lesson "What's in your wallet"....a lesson which approaches the topic of identity theft and the reality of how difficult it is to recreate what we have in our wallets and purses from memory. I had a list of my card numbers and the companies phone numbers in a file one thousand miles away, locked in a file cabinent that noone was going to be able to get into. EEgaad, so much for being prepared.
Fighting back the panic I decided to retrace my steps of the previous evening. I had a receipt from the last purchase I had made and couldn't imagine why I'd have a receipt and no credit card. Fortunatley, an honest waitress realized that I had left the card with the signed receipt and she had put the card in the managers office. I drove through rush hour traffic in a strange town to retrieve that card as quickly a possible. And thanked God for honest people all the way back to the restaurant.
The lesson learned which I offer to you today. It is a wonderful thing to keep back up records secure at home. But we need to think about the possiblity of being one thousand miles away and having noone at home to access the locked file.
I've come up with these thoughts to help in case this incident happens again.
a. Keep a small card with the telephone number(s) for the credit card companies in my wallet or purse. This would have made solving my situation easier in this incident but wouldn't help had my entire purse or wallet been lost.
b. Keep a list of credit card contact numbers readily filed in my desk at work.
There's probably other options available. The point is to think about what your options might me to protect yourself should your card be left behind or taken from you.
I teach money management and have completed my lesson "What's in your wallet"....a lesson which approaches the topic of identity theft and the reality of how difficult it is to recreate what we have in our wallets and purses from memory. I had a list of my card numbers and the companies phone numbers in a file one thousand miles away, locked in a file cabinent that noone was going to be able to get into. EEgaad, so much for being prepared.
Fighting back the panic I decided to retrace my steps of the previous evening. I had a receipt from the last purchase I had made and couldn't imagine why I'd have a receipt and no credit card. Fortunatley, an honest waitress realized that I had left the card with the signed receipt and she had put the card in the managers office. I drove through rush hour traffic in a strange town to retrieve that card as quickly a possible. And thanked God for honest people all the way back to the restaurant.
The lesson learned which I offer to you today. It is a wonderful thing to keep back up records secure at home. But we need to think about the possiblity of being one thousand miles away and having noone at home to access the locked file.
I've come up with these thoughts to help in case this incident happens again.
a. Keep a small card with the telephone number(s) for the credit card companies in my wallet or purse. This would have made solving my situation easier in this incident but wouldn't help had my entire purse or wallet been lost.
b. Keep a list of credit card contact numbers readily filed in my desk at work.
There's probably other options available. The point is to think about what your options might me to protect yourself should your card be left behind or taken from you.
Monday, August 31, 2009
AG IN UNCERTAIN TIMES - helping producers and others meet the challenge…
The AG IN UNCERTAIN TIMES site provides current information to farmers, ranchers and educators about the challenges in today’s agricultural economy. Their current webinar series, "Operating in the face of uncertain markets", is filled with useful information and advice on getting ahead in today’s commodity, niche, specialty crop, and alternative markets. The September series begins September 9 at 9AM Pacific. (10AM Mountain, 11 AM Central, and 12 noon Eastern).
For more information on their current series as well as accessing previous webinars go to www.farmmanagement.org/aginuncertaintimes/.
For more information on their current series as well as accessing previous webinars go to www.farmmanagement.org/aginuncertaintimes/.
Wednesday, July 15, 2009
Planning for Retirement
Planning for retirement is a challenge for everyone. The earlier you begin, the longer you will have to accumulate funds and capitalize on compound interest. A plan designed to meet specific retirement goals may be separate from or part of the investment building block.
Some people have given a great deal of thought to retirement, but others have not. Less than half (42%) of working Americans have made a retirement savings calculation, according to the 2006 Retirement Confidence Survey, and 70% have begun to save for retirement. Unfortunately, this means that 30% of workers have not yet begun saving. Most experts believe that regular, systematic savings is a habit that is best established early and maintained, not only throughout the working years, but into the early stages of retirement since people are living much longer. Today, many people spend as many years in retirement as they spent in the workforce.
Financial experts have long described sources of retirement income as the three-legged stool: Social Security, company pension, and personal savings. Now with the growing concern over the future of Social Security, the reduction in benefits offered by employers, and the low personal savings rate, many see the three legs of the retirement income stool becoming shaky. Many say that the stool may need a fourth leg—paid work after retirement.
Now that the Social Security Administration has phased in automatic mailing of Personal Earnings and Benefit Estimate Statements to all wage earners, check yours for accuracy. It contains information that provides an excellent basis for retirement planning. Contact the Social Security Administration (Call 1-800-772-1213 or visit the Social Security Online Web Site www.socialsecurity.gov) to obtain a benefit request form.
Another source of retirement information is your employer’s personnel department which may have general tips on retirement as well as specific information about investments available in your pension plan. Many online sites provide information about retirement planning (See American Savings Education Council www.asec.org). The following definitions should be useful in helping you to understand your retirement options.
DEFINITIONS:
12(b)1 Fee
A marketing fee levied on mutual fund shareholders to pay for advertising and distribution costs as well as broker compensation.
401(k) PlanAn employer sponsored, tax deferred, retirement plan. It uses pre-tax contributions from an employee’s regular compensation to invest for that employee in a number of possible financial instruments. Some companies will match investments. Plans vary widely between companies.
403(b) PlanA tax deferred retirement plan very much like the 401(k) Plan, but the main difference is that the employer is a non-profit organization.
Account Maintenance FeesFees charged by financial institutions and companies for maintaining accounts. For financial institutions, such as banks and credit unions, the fee may be based on the amount in the account or the number of transactions. For investment companies, such as stock brokerage firms and firms working with mutual funds, the fee is often charged for keeping an account going even though it’s too small for the fund to make a lot of money from it. A fee is also charged by both groups for custodial accounts such as Individual Retirement Accounts.
Annual Percentage Rate (APR)The periodic rate times the number of periods in a year. For example, a 5% quarterly return has an APR of 20%. APR is a yearly interest rate that includes all fees and costs you pay to a lender (such as a credit card company or financial institution) when you borrow money. By law, lenders are required to tell you the APR.
Annual Percentage Yield (APY)
The yearly interest rate received from an investment. Also known as the effective yield. It takes into account how often the interest in paid (compounded). If two interest rates are the same, the one with the most compounding periods will have the highest APY (7% with daily compounding has a higher APY then 7% with quarterly compounding). It is important to always compare APY when comparing different interest rates before making an investment.
Some people have given a great deal of thought to retirement, but others have not. Less than half (42%) of working Americans have made a retirement savings calculation, according to the 2006 Retirement Confidence Survey, and 70% have begun to save for retirement. Unfortunately, this means that 30% of workers have not yet begun saving. Most experts believe that regular, systematic savings is a habit that is best established early and maintained, not only throughout the working years, but into the early stages of retirement since people are living much longer. Today, many people spend as many years in retirement as they spent in the workforce.
Financial experts have long described sources of retirement income as the three-legged stool: Social Security, company pension, and personal savings. Now with the growing concern over the future of Social Security, the reduction in benefits offered by employers, and the low personal savings rate, many see the three legs of the retirement income stool becoming shaky. Many say that the stool may need a fourth leg—paid work after retirement.
Now that the Social Security Administration has phased in automatic mailing of Personal Earnings and Benefit Estimate Statements to all wage earners, check yours for accuracy. It contains information that provides an excellent basis for retirement planning. Contact the Social Security Administration (Call 1-800-772-1213 or visit the Social Security Online Web Site www.socialsecurity.gov) to obtain a benefit request form.
Another source of retirement information is your employer’s personnel department which may have general tips on retirement as well as specific information about investments available in your pension plan. Many online sites provide information about retirement planning (See American Savings Education Council www.asec.org). The following definitions should be useful in helping you to understand your retirement options.
DEFINITIONS:
12(b)1 Fee
A marketing fee levied on mutual fund shareholders to pay for advertising and distribution costs as well as broker compensation.
401(k) PlanAn employer sponsored, tax deferred, retirement plan. It uses pre-tax contributions from an employee’s regular compensation to invest for that employee in a number of possible financial instruments. Some companies will match investments. Plans vary widely between companies.
403(b) PlanA tax deferred retirement plan very much like the 401(k) Plan, but the main difference is that the employer is a non-profit organization.
Account Maintenance FeesFees charged by financial institutions and companies for maintaining accounts. For financial institutions, such as banks and credit unions, the fee may be based on the amount in the account or the number of transactions. For investment companies, such as stock brokerage firms and firms working with mutual funds, the fee is often charged for keeping an account going even though it’s too small for the fund to make a lot of money from it. A fee is also charged by both groups for custodial accounts such as Individual Retirement Accounts.
Annual Percentage Rate (APR)The periodic rate times the number of periods in a year. For example, a 5% quarterly return has an APR of 20%. APR is a yearly interest rate that includes all fees and costs you pay to a lender (such as a credit card company or financial institution) when you borrow money. By law, lenders are required to tell you the APR.
Annual Percentage Yield (APY)
The yearly interest rate received from an investment. Also known as the effective yield. It takes into account how often the interest in paid (compounded). If two interest rates are the same, the one with the most compounding periods will have the highest APY (7% with daily compounding has a higher APY then 7% with quarterly compounding). It is important to always compare APY when comparing different interest rates before making an investment.
Monday, June 22, 2009
Build a Solid Credit History
A solid credit history can be one of your most useful and powerful financial assets. A record of prudent credit use and prompt payments can enable you to not only qualify for credit when you need it, but it may also enable you to get a lower interest rate on your borrowing.
There are three main credit agencies that gather financial information on individuals and then make that information available to lenders to help them determine whether to make a loan to someone. The information they compile includes a great deal of basic data such as age, Social Security number, current and previous addresses, employers and marital status. They also get information on your borrowing history from places you have borrowed such as with credit card issuers, mortgage lenders and others. Your credit report probably includes all the credit relationships you have, date established, maximum allowed credit, current balances and payment history.
Indications of a solid credit history:
• Some, but not extensive borrowing.
• Prompt payment of monthly bills.
• Paying down balances over time.
• Steady employment.
Items that can hurt your credit report:
• Filing for bankruptcy.
• Too many credit cards.
• Too many applications for credit.
• Late payments.
• Increasing credit card balances.
• Several credit cards with balances close to their limits.
Lenders will use a credit report, along with evaluating your capacity to repay, your character and any collateral in making decisions to lend you money. Many lenders also take these same issues into account in deciding what interest rate to charge or type of loan to offer.
It is important to make sure your credit report is accurate and up to date. A federal law enables you to receive a free credit report once a year. You can get this free report by using the website – www.annualcreditreport.com. You can also get copies by calling the credit agencies, but there may be a small charge unless you have recently been denied credit.
• TransUnion – 800/888-4213
• Experian – 888/397-3742
• Equifax – 800/997-2493
If you see an error on the report, be sure to contact the credit agency in writing. Tell them of the error and ask that it be corrected. Negative information generally remains in your credit report for seven years and bankruptcies may remain for 10 years. However, most lenders pay particular attention to your most recent couple of years of activity.
Being aware of your credit report, making sure it is accurate, working to improve your credit characteristics, and understanding the importance of your report can all help you ensure that credit will be there when you need it.
There are three main credit agencies that gather financial information on individuals and then make that information available to lenders to help them determine whether to make a loan to someone. The information they compile includes a great deal of basic data such as age, Social Security number, current and previous addresses, employers and marital status. They also get information on your borrowing history from places you have borrowed such as with credit card issuers, mortgage lenders and others. Your credit report probably includes all the credit relationships you have, date established, maximum allowed credit, current balances and payment history.
Indications of a solid credit history:
• Some, but not extensive borrowing.
• Prompt payment of monthly bills.
• Paying down balances over time.
• Steady employment.
Items that can hurt your credit report:
• Filing for bankruptcy.
• Too many credit cards.
• Too many applications for credit.
• Late payments.
• Increasing credit card balances.
• Several credit cards with balances close to their limits.
Lenders will use a credit report, along with evaluating your capacity to repay, your character and any collateral in making decisions to lend you money. Many lenders also take these same issues into account in deciding what interest rate to charge or type of loan to offer.
It is important to make sure your credit report is accurate and up to date. A federal law enables you to receive a free credit report once a year. You can get this free report by using the website – www.annualcreditreport.com. You can also get copies by calling the credit agencies, but there may be a small charge unless you have recently been denied credit.
• TransUnion – 800/888-4213
• Experian – 888/397-3742
• Equifax – 800/997-2493
If you see an error on the report, be sure to contact the credit agency in writing. Tell them of the error and ask that it be corrected. Negative information generally remains in your credit report for seven years and bankruptcies may remain for 10 years. However, most lenders pay particular attention to your most recent couple of years of activity.
Being aware of your credit report, making sure it is accurate, working to improve your credit characteristics, and understanding the importance of your report can all help you ensure that credit will be there when you need it.
Thursday, June 18, 2009
Budget Helpers
There are a number of free or low-cost programs available on the Web for helping people manage their money. Here are four – each is different, so play around with them and find something that works for you
PearBudget
A downloadable spreadsheet that runs in MS Excel – functional and easy to use. It advertises being able to set up a budget in 10 minutes and maintain it with two 10-minute sessions a month. Creator Charlie Park originally built it for his own use, saying he couldn’t afford a commercial program (like MS Money or Intuit’s Quicken). Download at pearbudget.com.
SimpleD Budget
A downloadable, Windows-based program, SimpleD Budget was created by programmer Soichi Hayashi for his wife. It has charts and visual aids to see where you’re at on expenses and income versus the amount you’ve budgeted. When setting up the program it offers templates for various stages of life (college student, parent, etc) that provide different categories for expenses. Download at dsbudget.sourceforge.net.
MySpendingPlan.com
A web-based budget tool, My Spending Plan can be managed by different people at different locations. Offered by the American Homeownership Association, it offers more than just budgeting; you can also set up reminders about bills. However, the site includes commercial promotions, and because it is online, it operates slower than the downloadable programs. Also, the tool is in the beta stage, so it’s a work in progress. Sign up at myspendingplan.com.
Microsoft Office Personal Budget Template
A downloadable spreadsheet that runs in MS Excel – a very basic budget, so it’s very easy to use. Microsoft offers several choices. The simplest is the ‘personal budget’ in which you can track expenses and income for a year on one page, but there is also a personal monthly budget (which provides detail for one month only, not a year), a family monthly budget, and a number of other budgets for things such as job expenses, events, a garden, a wedding, and marketing. There’s also a personal financial statement (which is a good idea to have so you can track your net worth). Download at office.microsoft.com/. Search for ‘personal budget.’
It’s worthwhile to take a look at them all – it may be helpful to build a budget using the categories of one system, then use, for example, SimpleD to track the spending.
Of course, there are other, less technology heavy systems. A spiral notebook and a pen and calculator are one. The envelope method is another. The envelope method goes like this: get a separate envelope for different household expenses such as housing, food, travel, etc., allocate expenses to the different categories according to your income, put the allocated money in its respective envelope, and then use the money from a particular envelope to pay the corresponding bills. The envelope system was designed for cash – actual money would go in the envelope. But you could modify the system so that you just write the amount of money assigned to each category (envelope) on the outside, then subtract that money from the balance. Then when you get to zero, you’d have to quit spending in that category or 'move' money from another envelope.
PearBudget
A downloadable spreadsheet that runs in MS Excel – functional and easy to use. It advertises being able to set up a budget in 10 minutes and maintain it with two 10-minute sessions a month. Creator Charlie Park originally built it for his own use, saying he couldn’t afford a commercial program (like MS Money or Intuit’s Quicken). Download at pearbudget.com.
SimpleD Budget
A downloadable, Windows-based program, SimpleD Budget was created by programmer Soichi Hayashi for his wife. It has charts and visual aids to see where you’re at on expenses and income versus the amount you’ve budgeted. When setting up the program it offers templates for various stages of life (college student, parent, etc) that provide different categories for expenses. Download at dsbudget.sourceforge.net.
MySpendingPlan.com
A web-based budget tool, My Spending Plan can be managed by different people at different locations. Offered by the American Homeownership Association, it offers more than just budgeting; you can also set up reminders about bills. However, the site includes commercial promotions, and because it is online, it operates slower than the downloadable programs. Also, the tool is in the beta stage, so it’s a work in progress. Sign up at myspendingplan.com.
Microsoft Office Personal Budget Template
A downloadable spreadsheet that runs in MS Excel – a very basic budget, so it’s very easy to use. Microsoft offers several choices. The simplest is the ‘personal budget’ in which you can track expenses and income for a year on one page, but there is also a personal monthly budget (which provides detail for one month only, not a year), a family monthly budget, and a number of other budgets for things such as job expenses, events, a garden, a wedding, and marketing. There’s also a personal financial statement (which is a good idea to have so you can track your net worth). Download at office.microsoft.com/. Search for ‘personal budget.’
It’s worthwhile to take a look at them all – it may be helpful to build a budget using the categories of one system, then use, for example, SimpleD to track the spending.
Of course, there are other, less technology heavy systems. A spiral notebook and a pen and calculator are one. The envelope method is another. The envelope method goes like this: get a separate envelope for different household expenses such as housing, food, travel, etc., allocate expenses to the different categories according to your income, put the allocated money in its respective envelope, and then use the money from a particular envelope to pay the corresponding bills. The envelope system was designed for cash – actual money would go in the envelope. But you could modify the system so that you just write the amount of money assigned to each category (envelope) on the outside, then subtract that money from the balance. Then when you get to zero, you’d have to quit spending in that category or 'move' money from another envelope.
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