Winter Weather: Time to organize!

In much of Iowa, our recent winter weeks have held lots of days suitable only for staying indoors. We’ve canceled or postponed many plans, and some of our dogs have missed lots of walks because some days were just too cold or windy.

So what can we do with those snow days?  I have an idea!
No, it’s not binge-watching your favorite shows or movies, nor does it involve baking. You don’t need ME to suggest those!

My idea is less recreational, but much more valuable in the long term: go through your files!

Cleaning and organizing files is a task we tend to procrastinate. But in an emergency, and even in many non-emergency situations, we sure would like to turn to our files and immediately put our hands on the document(s) we need. When need arises, we’ll be glad we invested some time in getting organized.

Here’s the good news: it’s a task that can be broken up into small doses.

  • If you already have a filing system, you can just go through one or two files a day, to pull out old materials that are no longer needed, and make sure the most current information is in front.
  • If you do not have a filing system in place, start with a small stack of papers from wherever you’ve been storing them. Create file folders or envelopes for each category of papers you run across. For example, if the first paper you come to is about your car insurance, then create a car insurance file. Perhaps the next item will be college transcript – if so, create an education file.

Well-organized files have three characteristics:  1) they are clearly labeled; 2) the newest and most important information is in front; and 3) out-of-date and unimportant documents are removed. Determining what is important can be a challenge. Some tips for starters: 

  • Insurance – keep the most recent summary of coverage (declarations page). In addition, keep the full policy booklet if you have one, and any updates you receive about coverage details.
  • Mutual fund accounts – keep your quarterly statements until the year-end statement arrives; that should include all activity for the year, so you can discard the quarterly statements. Keep all year-end statements, with the most recent in front. Keep the most recent prospectus. There is no need to keep annual reports.
  • Monthly bills – once you get the next statement showing that your payment was received, you can safely discard the previous statement, unless you need it for tax purposes.
  • Warranties and purchase records for warrantied items – keep as long as you own the item. Keep the purchase information longer if the item affects your taxes.
  • Taxes – after six years, they can be discarded.

Personally, my biggest filing problem is old folders with labels that have fallen off – I need to go through and re-label files. Which filing task most needs your attention?

Barb Wollan

Barb Wollan

Barb Wollan's goal as a Family Finance program specialist with Iowa State University Extension and Outreach is to help people use their money according to THEIR priorities. She provides information and tools, and then encourages folks to focus on what they control: their own decisions about what to do with the money they have.

More Posts

A Book to Read

How’s your New Year’s resolution going?  Maybe I can help. Add a short term goal to read one book about money or personal management by the end of January and use the content to improve your original plan to improve your well being. Here are few I recommend:

The Millionaire Next Door identifies seven common traits that show up again and again among those who have accumulated wealth. If your resolution was to slow down the purchase of stuff, adopt a minimalist approach to life, or start recycling/reusing what you have, the book could give additional reasons to stick with it.  Authors are  Thomas Stanley, PhD and William Danko, PhD

 

 

Loaded by Sarah Newcomb, PhD, introduces you to behavioral finance. The book explains how our experiences with money have a psychological basis and can often run counter to what we’d like to accomplish. She explains that money is just a tool and how we use it is entirely a matter of personal choice.  The book offers advice about overcoming negative behaviors, so if you are concerned that you might fail to follow through with plans to change your use of money in 2019, this book offers tips that could help you change your goal and make it more achievable.

 

Charles Duhigg is a business reporter. The Power of Habit describes why habits exist and how they can be changed. Your resolution might be failing because you haven’t really examined why you are repeating the same behavior loop over and over again. Taking advantage of his tips to find your weak links and embrace change could lead to success.

 

Finally if you use this suggestion and read one book before the end of January, don’t forget to celebrate.   One short term resolution accomplished!!!

Joyce Lash

Joyce Lash

Joyce Lash is a Human Sciences Specialist in Family Finance who wants to keep you ahead of the curve on financial information.

More Posts

Auto-Pilot vs Mindlessness

Two cardboard boxes delivered to a residential home wait outside a black metal front door on a brick patio, Midwest, USA

We have frequently talked about strategies for making good financial habits. One strategies is to “make it automatic”. For example, if I want to save 10% of my monthly paycheck, I would have a greater chance of making it happen if I were to set it up with my employer. Each month, a portion of my paycheck could be auto-deposited in a savings account while the remainder of my check would go directly into my checking account. Basically, I made the decision once and it happens monthly without me having to remember to transfer money from my checking account to my savings account.

For the last couple of years, I have done a lot of on-line purchasing, including a large portion of my gifts and a few household consumables. Within the online shopping platform, I have always compared prices, companies, and options. I would also check Consumer Reports to compare brands and quality reviews. I considered myself to be a good shopper. When this online platform first arrived on the scene, I was diligent in comparing prices with our local stores to make sure I am getting the best deal.  In recent months, though, I haven’t done much comparison shopping;  …I just assumed…which I am sure is what online “stores” were counting on.  They hook consumers with the price, convenience & variety, and then later, when the prices rise, we either don’t notice or don’t care because we are hooked on the convenience.

This past week, a new study revealed that when compared to local store chains, this online shopping platform (the one I had gotten used to using) was not always a less expensive way to shop. This is NOT what I wanted to hear! I LOVE the convenience and the speed at which things arrive at my home. I WANT (but I don’t need) more brands to pick from.

So I have a mixed scorecard as an effective consumer. On the plus side, I have been effective in putting my savings account deposits on auto-pilot; but on the minus side, my desire to save money while shopping has slipped as it became a bit mindless. Now the I have to decide if the convenience is worth a slightly higher price.

Brenda Schmitt

Brenda Schmitt

A Iowa State University Extension and Outreach Family Finance Field Specialist helping North Central Iowans make the most of their money.

More Posts

Holiday Break – Things To Do And Not Break the Bank

Since we are on holiday break – and have already spent our money on holiday gifts and entertaining — what are some ideas that can entertain the family at little or no cost?

Whether it is checking out a DVD at your local library or from the Red Box or playing card or board games in the evening, there are ways to find entertainment without putting a hole in your pocket.

If you have young children, you may have a chalk mural on your driveway if the weather is warm. Even baking cookies together can be a fun family event.  I remember as a child, my mom would sometimes make a batch of yeast bread dough and my sister and I would shape the dinner rolls.  In addition to being an enjoyable family activity, working together in the kitchen is also a chance to start teaching your child cooking skills that they will use in their later years.

To be healthier, how about a hike in the woods or taking the children to play in the park?  With help from seed catalogs, why not plan your own garden? You will reap the produce next summer. As a family, go for a bike ride.  Have a family pick-up game of one-on-one basketball or invite the neighbors over for a game of volleyball. Invite the neighbors in for a potluck barbeque and have activities for the kids and adults.

In the summer, visit a drive-in movie theatre or tour a dairy farm or a police or fire station.  Enjoy a free concert in the park or community festival.  Visit the public library, check out movies, books, games, music, and take advantage of the programs that the library offers.  Read a good book for enjoyment.

Best to you and your family as we start a new year!

Susan Taylor

Susan Taylor

Resources are important whether you are looking to rent your first apartment, pay your bills, buy your first home or send your child to college. There are many ways to save money to reach your goals, and hopefully ISU Money Tip$ will be one of them. I enjoy traveling, needlework and am a novice gardener.

More Posts

Holiday Wishes

Revisiting a holiday post from a previous year, and renewing happy holiday wishes for all!

For all you readers who celebrate ANY of the December holidays, today is probably NOT a day when you’re looking for a message or tip about wise use of money.  In my experience, by this point in the holiday season the die is cast — the money is pretty much all spent, or at least the decisions are made and the funds are committed. There’s not much I can say that will matter for now. (In a week or two it may be time for a clear money message — time to start new habits and/or address existing problems – but not now).

For now, in the midst of celebration and family time, now is simply the time to enjoy what life brings. To me, the key is to recognize that the most important gift you or anyone else can bring to holiday festivities is a gift of good cheer.

  • That means not comparing how much you spent with how much someone else spent on a gift. Instead, simply trust that you and everyone else gave with good intentions; this will bring the most joy to your celebrations.
    Note: this includes not judging yourself, as well as not judging others.
  • It means giving the best possible interpretation to the contributions and comments of others. Holiday festivities can bring stressful situations and poorly-thought-out comments; for everyone’s sake, this is a time to tune in to the positive to keep celebrations bright.
  • It means that maintaining and building relationships is more important than any detail that is amiss or any aspect of the feast that is less or more than past celebrations.
  • There is always something to enjoy or be grateful for. Bring a grateful or joyful attitude to celebrations, meals, and to giving and receiving.

No matter how much money you spend on holidays, it is gifts of good cheer, kindness, friendship and joy that will mean the most to you and all those in your world.

We at MoneyTip$ wish you very happy holidays!

Barb Wollan

Barb Wollan

Barb Wollan's goal as a Family Finance program specialist with Iowa State University Extension and Outreach is to help people use their money according to THEIR priorities. She provides information and tools, and then encourages folks to focus on what they control: their own decisions about what to do with the money they have.

More Posts

Packages on the Doorstep

When will it be delivered?  I’m learning that tracking services offered by vendors vary with accuracy and details. Packages I mailed at Halloween took a broom stick ride in the opposite direction of their destination and then circled back for a late delivery.  I have a purchase that has been “out for delivery” for a week and there are no details.

The Federal Trade Commission enforces rules for online and mail order sales. Packages have to arrive within 30 days. If that isn’t possible, you must be notified and have an option to cancel the order.

Where will I find it? I have an inspection routine at my house when I receive confirmation of delivery. Packages have been found in multiple locations: on the front porch; the back porch; the bushes near the doors; and the back of the mailbox.  I’m thankful I don’t have my son’s dog (shredded packages) and I’m not on a busy city street. There are alternatives to consider: work address, neighbor, requiring a signature for delivery (usually involves a separate charge), using the carrier’s designated pickup and delivery location.

I’m not complaining. “Mail-order” shopping has come a long way from the days of the Montgomery Ward catalog.  I remember when you mailed in an order and instead of a package, the vendor’s letter arrived informing you the item was “sold out” or “not in stock”. Sometimes they sent a substitute item, which wasn’t always satisfactory. Inventory control with access from your home computer has reinvented “mail-order” shopping, and it’s definitely on the up swing.

 

 

Joyce Lash

Joyce Lash

Joyce Lash is a Human Sciences Specialist in Family Finance who wants to keep you ahead of the curve on financial information.

More Posts

Someone May Be Watching You

Last November, my brother-in-law’s vehicle was broken into at the nearby grocery store parking lot.   He had done some banking prior to pulling into the grocery store to pick up a pizza for the night’s meal. While he was in the store, his money and cell phone were stolen.  There was also damage done to both driver and passenger doors, his console, and the car’s paint. There were surveillance cameras in grocery store’s lot, but it was hard to identify the perpetrator.

When my sister and brother-in-law returned from the holidays, they picked up their held mail at the post office; while they were there, a man had money stolen from his vehicle parked outside the post office, also after a visit to the bank.   Note: Both of these incidents occurred in daylight in a large U.S. city.

Based on his recent experience, my brother-in-law was able to encourage the man to call the police and file a complaint;  this would help him to file a claim with his insurance company. Depending what was taken, he might also want to contact his bank, and/or place a fraud alert on his credit reports.  In addition, he would need to make arrangements to have his vehicle fixed.  These were all steps my brother-in-law had needed to take a few weeks earlier, plus he had to deal with the theft of his phone; fortunately, since my brother-in-law’s information on his phone was backed up in the “cloud,” he was able to be back in business soon after the phone was replaced.

We do not always think about who is watching us, but in both of these cases, someone was watching while they visited their banks. These incidents remind us: don’t let your guard down, and watch your surroundings. That guidance is especially important during the upcoming holiday season when many of us make more purchases than usual and may leave things in our cars.

How many times do we go somewhere feeling we are safe, and therefore do not pay attention to the environment around us?

Susan Taylor

Susan Taylor

Resources are important whether you are looking to rent your first apartment, pay your bills, buy your first home or send your child to college. There are many ways to save money to reach your goals, and hopefully ISU Money Tip$ will be one of them. I enjoy traveling, needlework and am a novice gardener.

More Posts

Charitable Giving and Taxes

We’re entering a busy time of year for charitable donations, perhaps because the winter holiday season brings a sense of gratitude followed by a desire to share our abundance. The availability of tax deductions for charitable giving may also contribute to the concentration of donations near year-end.

According to Giving USA, Americans donated a record $410 billion to charities in 2017. What’s more, over 70% of that giving came from individuals, rather than foundations, corporations, or bequests.  However, tax law changes this year mean that for many people there will no longer be an advantage in itemizing deductions; many taxpayers will get better results using a standard deduction. For those households, the tax benefit of charitable donations will be reduced or eliminated.

Will Americans still give?  I have always hoped that the main reason most Americans give is that they care about the organizations they are giving to, and that the tax benefits are just an incidental benefit.

If you are wondering whether you should continue making charitable donations even without the tax deductions, I offer two thoughts:

  • If your standard deduction under the new tax law is larger than your itemized deductions would have been, then you are still coming out ahead. You can give, and still have more available funds than you would have had under the old tax law.
  • There are other strategies that can enable some taxpayers to get tax advantages for charitable donations.
    Clustering donations. Some taxpayers may be able to hold back all their 2018 donations until the beginning of 2019; if they then donate a “normal” amount throughout 2019, they will have twice as many donations as usual to report for the 2019 tax year, which may make itemizing worthwhile in 2019. Following this pattern of no contributions one year and double-contributions the next may enable you to donate the same total amounts as normal, and gain tax benefits by alternating years between itemized and standard deductions.
    Qualified Charitable Distributions (QCD) from an IRA.  If you are at least 70-1/2, you can transfer funds directly from your traditional IRA to a charitable organization; the distribution will not be taxable income to you, AND it can satisfy your required minimum distribution. If your RMD for the year is $5,000, and you are interested in donating $5,000 to a particular organization, then making the contribution through a QCD has the same ultimate impact on your taxes as a tax deduction would have had. IRS Publication 590-B provides details.
    Donating as a business expense.  If you are self-employed or own a business, you may be able to make charitable contributions as a business expense.  For example, farmers can give commodities (e.g. 500 bushels of corn) to a charity. This reduces your business income, and therefore has impact similar to the impact of a tax deduction. Consult with your tax adviser for details.

As always, the best decisions about how to use your money are based on your personal goals and priorities. As you consider your charitable giving decisions, focus on why you want to give when deciding whether and where to make donations. Giving to organizations you know (often local organizations) can ensure that your gifts are used well; when considering larger national charities, check them out with organizations that evaluate charities, such as  www.give.org, www.charitywatch.org, www.charitynavigator.org, or www.givewell.org.

Barb Wollan

Barb Wollan

Barb Wollan's goal as a Family Finance program specialist with Iowa State University Extension and Outreach is to help people use their money according to THEIR priorities. She provides information and tools, and then encourages folks to focus on what they control: their own decisions about what to do with the money they have.

More Posts

Five Minutes to Make Your Home Healthier

With the upcoming time change (from Daylight Savings back to Standard Time), take a few minutes this week to make your home healthier for your family.  Here are six tips:

  1. Test your smoke alarm and replace the battery. Using smoke alarms in your home cuts your risk of dying in a fire in half.
  2. Wash your hands with warm, soapy water for at least 20 seconds – enough time to sing “Happy Birthday” twice. Each year about 48 million Americans get sick from eating contaminated or improperly prepared foods.
  3. Make your home smoke free. Never let anyone smoke anywhere in or near your home. Parents are responsible for 90% of their children’s exposure to smoke.
  4. Program the number for poison control into your cell phone: 1-800-222-1222.  If you use a land line, post the number near the phone.  Each day in the United States over 300 children (ages 0-19) are in emergency rooms for poisonings.
  5. Do a 3-minute “clean sweep” Pick one small area of your home- like your junk drawer or stairs and take 3 minutes to sort the items. Get rid of what you do not need. Clutter can collect dust, mold, and other allergens and gives pests a place to hide.  If clutter is on the floor or stairs, it can cause you to trip and fall.
  6. Check your locks. Make sure locks function correctly and that a child can operate them in an emergency.

 

Susan Taylor

Susan Taylor

Resources are important whether you are looking to rent your first apartment, pay your bills, buy your first home or send your child to college. There are many ways to save money to reach your goals, and hopefully ISU Money Tip$ will be one of them. I enjoy traveling, needlework and am a novice gardener.

More Posts

Stocking the Grocery Pantry

I threw a list of Pantry items together in 2004 and went shopping. My goal was to confirm or dispel what participants in my budgeting classes would argue: that it was cheaper to purchase groceries at larger markets, especially those in larger towns where there is more than one grocery store.

What I challenged them to consider was the cost of transportation and the added time it took to make a 1 hour round trip each week for groceries; especially if the sale items were the same price in a local store.  Did they save enough to off-set those costs? Even though the cash register receipt is lower for the same items, it wasn’t enough savings to cover the cost of transportation.

I took my list shopping to the local grocery in 2007 and again today.   Here’s what I’ve learned from the comparison:

  • The cost for store brands, 2004-2018, increased 54.7%, the national brands increased 34.3%.
  • The margin between the cost of buying a store brand and buying a national label continues to erode. In 2004 the difference was 30%, in 2018 the difference is 24%. Store brands still cost less, but not as much.  Quality becomes more important.
  • The changes in package sizes has slowed. I found several items in smaller packages between 2004 and 2007; but only Oat Cereal was found in a smaller package in 2018.
  • Some items are lower priced. Brand name stick margarine is priced lower than the 2004 cost and the store brand is equivalent to the brand name price. Oat Cereal, when broken down into price per ounce, is 27 cents today. In 2004 it was 26 cents an ounce.  Brand name green beans have declined slightly since 2007, with store brands getting close to equivalent price.
  • Items on my pantry list with a larger than average increase in price are: a 2 lb. block of processed cheese food – the national brand increased 100%; a 5 lb. bag of national brand flour increased 61%.

A new player in the pantry shopping list is a local dollar store.  My grocery sack included a combination of store brands and national brands. The sizes were equivalent. Not everything on the list was available. Some items were lower, but others were higher in price. In the end my combination sack cost the same as the store brands at the local grocery.   If you have the time and pay attention to prices you could lower your total grocery costs by shopping at both stores if they are close to each other.

Visit the Spend Smart, Eat Smart website for low cost recipes and other tools to manage your grocery dollars.

 

Joyce Lash

Joyce Lash

Joyce Lash is a Human Sciences Specialist in Family Finance who wants to keep you ahead of the curve on financial information.

More Posts

    

Subscribe to “MoneyTip$”

Enter your email address:

Delivered by FeedBurner

Archives

Categories