Six Small Steps to A Money Makeover

Here are a few more tidbits of information about managing our finances.  These can apply to anyone, widow or not.  Got them from the September 2012 of "O" Oprah Magazine.  I hope you find these helpful!  :)

Do This Now:

• "Electronic bills are great - unless they are lost in a crowded in-box.  Set up a separate e-mail account (e.g. alexa.bills@emailhostdotcom) to keep your e-bills orderly."  -  Alexa Von Tobel, founder of the personal finance Web site learnvest.com
• "Challenge yourself with a 21-day financial fast, during which you eliminate all spending except or the bare essentials.  Halting unnecessary purchases forces you to reflect on how much you consume."  -  Michelle Singletary, "The Color of Money" columnist for The Washington Post.
• "Stop delaying your savings!  So many women say they haven't done enough research to enroll in a 401(k) plan, but it's far better to act now and tweak your allocations later than to delay building any security at all."  -  Mary Caraccioli, host of We Owe What? on the Live Well Network.

Do This Soon:

• Step back and look at the big picture.  Fifty percent of your take-home pay should be allocated for essentials, 20 percent should go toward savings and debt, and 30 percent can cover everything else."  -  Alexa Von Tobel
• "Keep a spending journal for 30 days.  A month's worth of data makes it easier to see where you can cut back."  -  Michelle Singletary
• "Pick one intimidating financial situation - whether it's saving for a house or getting rid of your debt - and meet with a financial advisor.  You can find one through the National Foundation for Credit Counseling (nfcc.org).  A single session can put you on the right path."  -  Mary Caraccioli

What's your favorite financial hint?  Share it with us so we can all benefit.  :)

Financial Tip #3 - Make an Emergency Fund

This is one of the best pieces of advice I got - set some money aside as an emergency fund for ... well, emergencies.

It isn't hard to do.  OK, in theory it's not hard to do.  But let's be realistic ... this can be a tough one.

Here are a few guidelines to get you started:

• Set a target for the amount you want to have in your emergency fund.  I like to have $1,000 set aside - that way I know I am covered when the washer gives out/the roof starts to leak/the lawnmower needs to be fixed/the car needs new tires/etc.  And you know those things don't just happen one at a time, right?!  We all know appliances gang up on you, and tend to quit in multiples.  Having enough to feel comfortable with whatever the near future may hold goes a long way in making you feel a little more secure.
• Reserve this fund for emergencies.  No, those darling shoes you saw on sale DO NOT count as an emergency!  Keep this fund "hands off" until you really need it.  If you're always dipping into it, soon it will be gone - and that kinda defeats the purpose of an emergency fund, don't ya think?!
• Yes, this comes straight from "Mr. Financial Peace" himself, Dave Ramsey.  This is one of his "baby steps" in taking control of your finances, instead of your finances controlling you.  And the whole idea of putting together an emergency fund is predicated on the assumption that you are not using your credit cards, or limited their use dramatically.  Don't use credit cards as your emergency fund!  This will only lead you further into debt - it's just too easy to use those blasted things.  And suddenly EVERYTHING looks like an emergency (see above.)
• Maybe you don't have your entire desired amount for your emergency fund at the moment.  Start saving it up -put a bit away each month into a savings account, money market, etc.  Somewhere that it's drawing interest (however little it may be) and that you can get at it quickly ... in case of an emergency!  Keep socking that money away until you reach your goal.

Then smile at the future!

"She is clothed with strength and dignity;
she can laugh at the days to come."
Proverbs 31:25 (NIV)

What is your favorite financial tip?  Share it with us!  :)

Financial Tips #2 - Online Banking

(Yes, this is me ... kicked back and doing my banking online.  Nope, just kidding!)

Dealing with all the changes and challenges of running a household myself, and having to re-arranging a budget to reflect a single income is stressful to say the least.  This coupled with the emotional upheaval of the past two years - stress magnified by 100.  That's why I want to share a few simple ideas that helped me in reorganizing our finances.

One of the most helpful things I have done when it comes to finances has to be paying bills online through my bank.  This has simplified things so much for me!  No more forgotten payments, no more late charges because I forgot to mail the check or couldn't find a stamp at the last minute.  Or because a bill went missing on my messy desk.

There are two categories I have set up with which to pay bills:  automatic payments and e-bills.
First  we'll talk about e-bills.

In the online banking section of my bank's website I have the option to signing up for certain monthly bills to be sent as e-bills; these are usually ones like my phone bill or credit card bills, and instead of getting a paper bill in the mail I get an e-bill notification in my email inbox. 

If you are banking online, look and see which bills are offered as e-bills and then sign up for them.  Your bill is sent electronically to your online bill pay section.  When you have a new bill your bank will send you an email to let you know an e-bill has arrived.  You can see and access your bill there, and set up the date and amount of the payment with just a few clicks.

I have set up automatic payments for such things as my monthly tithe to my church.  These are payments that are the same each month, like mortgage or car payments, or for credit card payments that are not offered as e-bills.  I love using this because I can set up a payment for a certain amount at a specific date each month, and then not worry about missing a payment or sending it late.

One word of caution - you still need to monitor your account!  I usually log in and check my account every other day or so, just to make sure that everything is the way it should be.  :)

Financial Tips from a Widow's Point of View

I am getting inspired to write a few upcoming posts about financial matters.  Specifically, things that I have learned or that have helped me in getting through the minefield of juggling finances as a single woman again; having to adjust to not only a single income but added pressure in the form of medical bills, credit card debt, etc.

I hope that these tips will be helpful.  One of my goals in writing this blog is to share what I have learned, in hopes of helping someone else.  Or maybe starting a dialogue and learning something new myself!  :)

So stay tuned.