3 Smart Expenses You Can Avoid

Looking at your spending plan, it’s fairly easy to anticipate the regular monthly expenses, and with a bit of planning, the gift occasions, school activities and annual fees.  What is frequently not anticipated are the expenses that others try to include without our pre-approval.  They offer, and we accept the opportunity to spend our precious money.

Awareness is the key to this conversation, and please understand the choice placed before you is optional.  You can start to realize that commitment or acceptance of others’ expectations can “force” you into an expense you didn’t even realize you wanted! 

Here are some examples that I have experienced in my own family’s finances:

•       When our family plan had an available phone upgrade, they went to our teenage son for a few years as he wore them out quickly.  Now, when the upgrade becomes available, there’s the anticipation of using the latest technology.  As soon as we had a chance, we upgraded my husband from a flip phone to the newest iPhone.  He primarily uses it to make calls.  Should we have waited a little longer, or selected a less expensive phone?  It is not a mandatory upgrade. We had a choice.

• Our kids, or we as parents, want to experience every sport, musical instrument, and community organization available.  Youth build lifelong skills and friends through activities.  Each pursuit has fees, equipment, travel and various expenses to contribute.  We will spend all afternoon and weekends driving them all over the place to participate.  Parents end up with no free time, and a lot less money.  Who says it has to be this way?  Set a limit on time and money for activities, which is VERY important with blended families who need to ensure all guardians are on board with the plan and able to give money and time.       
• Can you politely decline a destination wedding, family reunion of 3^rd cousins, or a weekend in Vegas with friends you don’t really enjoy anymore?  If you truly don’t want to go, save the money and precious time and say no.  Tell them you didn’t budget for it, you don’t have that much time, or whatever honest answer you can give.  Other people’s desires and priorities do not need to be forced onto you.  Feel comfortable telling the truth, and not participating out of guilt or responsibility.  You really have the power to make your own choices.

Wouldn’t it feel delightful to have more control of your cherished time and money?  Could you remove the culpability of not doing the things above, and replace it with the empowerment of making smart choices?  This is my goal at MoneyWise Advisors, to encourage you to take action and power to control your finances, and start achieving your goals and dreams.  Your personal finance strategy becomes the tool to increase your earning power.  What choices do you have in front of you today?

Balance Your Checking; Control Your Money

By Susan Wilson, MBA

Controlling your finances means understanding all of the money-related statements that your receive online and in the mail.  I don’t look forward to reviewing them; it’s a tedious task, but an important step to see everything is o.k. with your checking and savings accounts.  Here’s a list of things I have found myself and heard through my clients:

Life Insurance on Boat Loan (my hubby before we married)

 

Forgotten Gym Memberships

Unwarranted Overdraft or “Convenience Fee”

ATM and Credit Card Fees

Purchase Amount Errors

Unwanted Payment Protection Plans or Subscription Services

 

Yikes!  These are usually not small fees, and removing that $15 monthly life insurance on the boat loan (yes, the heirs would get a paid-for used boat) is instant money saved.  I just look through the line items and make sure they are legitimate. I look for any surprise fee hikes or excessive ATM fees I didn’t anticipate.  This is how you take control – know what is happening to ALL of your money.

One more thing - make sure you receive all of your statements if you have more than one account.  Awareness of address changes can prevent identity theft.  (Think exes and businesses you frequent.) It’s not the latest Moscow gang taking our ID’s, it’s most likely someone we know. 

This is one more action to take towards controlling your finances that doesn’t take money out of your pocket.  Hopefully, you’ll find some places you can recover money.  Now, don’t take all the findings and celebrate – pay off that nagging credit card bill that won’t go away.  Now, that’s control.

Please share what you found on your statements.  Learn more about taking control of your money at www.moneywiseadvisors.com 

First Step to Control – Review your Bills

A strong first step for you to take to control your finances is to review all of your bills.  Gather a month’s worth of paper or online statements.  Get settled in a comfy chair with a shredder highlighter and your stack of papers (or computer with electronic statements). 

Here are some things to look for:

1.   Look at whose name(s) are on the account – is there an ex who shouldn’t be?

2.   Is the address right so you don’t miss any statements?

3.   What kind of fees did they charge you: over limit, late payment, payment processing

4.   Does the balance appear to be correct

a.   What is the minimum payment?  How much will it take to pay off in three years? They are required to provide that information on your statement.  Pay Off Loan Calculator

b.   What is the due date? 

c.   Review the interest rate(s) for the balance(s)

5.   Review all transactions every month

a.   You typically have 60 days to dispute an error with the card issuer and have the charge removed

b.   Credit card fraud sometimes starts with a very small charge to see if the card number is valid – catch it quickly and report

6.   Ensure your most recent payment recorded correctly

7.   Review the special messages section to see if they are increasing any interest rates, or making other changes to your account

The point of this review is to help you control your finances, and not every action step requires throwing money at it to make it go away.  One of the big things this review does is ensure you are not a victim of credit fraud, a lingering ex using your card, or a processing error by the credit card company.  Prevention and early resolution of errors will save you from the larger crisis that looms around the corner.