Sage Personal Finance

It’s difficult for most Americans to know where to start when reviewing their household budget.  It can seem like a daunting task when every last penny seems to be going to bills, groceries, and other expenses.  But it can help to review some of your smaller expenses to see where the money goes.

Re-Evaluate the Morning Routine

Mornings are when many of us waste the most money.  For instance, over half of all Americans drink coffee in the morning.  Buying your coffee at the Starbucks or Dunkin Donuts on the corner for an average price of $2.50/cup can really add up.  The monthly cost can be as high as $77.50!  You can purchase a single cup brewer such as the Hamilton Beach single scoop brewer which will pay for itself within one month.

Almost 20% of all Americans also smoke.  Mornings are often when smokers pick up a pack of cigarettes.  If you can’t kick the habit for health reasons, consider the impact on your wallet.  The average pack of cigarettes costs $8.  That’s $248/month for the typical pack-a-day smoker.  That’s money that could be going towards a car payment!

Finally, take a look at your morning commute and get inspired from the Europeans.  Driving yourself may be the most expensive way to get to work in time, gas, and wear and tear on your vehicle.  If you live close to work, consider riding your bike.  Go green and save money at the same time!  If biking to work is not practical for you, check out public transportation.  Bus and rail lines are often much cheaper than driving and offer a great way to relax and escape the stress and hassle of commuting.

Save on Entertainment

Most of us are not willing to give up our date nights and periodic meals out and that’s ok, but there are ways to splurge and still be savvy.  Instead of spending extra on a babysitter for date night, try to set up arrangements with other parents of young children.  Work out date night schedules so that you all get free babysitting and time to yourself!  This can be a huge help to parents of young kids.

Sign up for deal sites like Living Social and Groupon.  These sites often offer deals of 50% off or more on local dining and events.  Restaurant.com also offers great deals on restaurant gift certificates – just be sure to read the fine print!

Look For Discounts and Avoid Fees

Pay off credit cards in full every month to avoid interest fees that can bury you.  Use your check register religiously to avoid bank overdrafts that can cost hundreds of dollars in fees.  Talk with your bill collectors, such as your insurance agent, to find out what discounts are available if you pay your annual premium in full.  While this may be a large amount to come up with at once, it will be one less expense to worry about for the year and you can usually save a large amount in the long run by paying it all at once.

If you’re ready to get back in control of your financial health, visit Sage Personal Finance for the mandated financial management course during bankruptcy filing.

-Suzy S.

At Sage Personal Finance, our amazing support representatives are out on the front lines every day, helping folks through the final steps of the bankruptcy process – and we get questions. One of the questions we hear most often is, “Now that I have a clean start, how can I work on improving my credit?”

While we aren’t professional finance experts, we do know that knowledge is power – and knowing the ins and outs of your credit profile is one of the simplest and most powerful ways to take charge of your financial life.

In our course, we let our students know that all consumers are entitled to at least one free credit report annually from the three major credit reporting bureaus (Experian, TransUnion and Equifax) through the Federal Trade Commission’s government website, annualcreditreport.com – but there are several other sites that provide a means to stay on top of your credit profile the other 11 months of the year…and they are 100% free of charge.

Quizzle offers a wealth of financial monitoring tools (both free and paid subscription-based) available to curious consumers, including free credit scores and reports twice a year. Quizzle also offers paid subscription services that offer a variety of credit monitoring “add-ons” – but these additional services do cost extra. If you’re simply looking to keep an eye on your credit report a couple of times a year, stick with Quizzle Free.

Credit Karma digs a little deeper into a user’s credit history with its “free” plan. In addition to four free reports (with scores) annually, Credit Karma offers a unique “Credit Report Card” —  a simple summary of your credit report details and ways to see how different financial decisions impact a consumer’s overall credit profile. It also offers a credit monitoring alert program that notifies users of important changes in his/her credit report as soon as those changes are reported to the credit bureaus. Consumers that enroll receive this very useful tool at no extra charge.

Credit Sesame offers a free credit score (and report) every month courtesy of credit reporting agency Experian. As with Credit Karma, Credit Sesame also provides users with real time credit monitoring to alert users to such things as “hard” and “soft” credit inquiries, payment history and credit ratios.

On their own, any of these free services can empower consumers, allowing anyone to better understand the world of credit, and what activities can raise or lower a user’s credit profile. Check them out and let us know if any (or all!) of these free services have helped you become a savvier consumer post-bankruptcy!

-Cindy M.

For individuals living in the Los Angeles area, the L.A. public library system is sponsoring a series of free workshops this month that will help you get into financial shape!  Topics include: “Understanding Your Credit Report”, “Protecting Yourself Against Investment Fraud”, “Investing for Beginners” and “Budgeting & Saving”.  They are 1-2 hours long and will be hosted at different libraries in L.A. County.  Their website (lapl.org) has more info!

-Allison

Today, everyone is looking to save money, whether you are trying to find ways to add more to your savings each month or just pay down debt to avoid a disaster or bankruptcy.  Saving on utilities is a major component of personal financial management, and cell phone bills are no exception.  Here are a few ways to cut down on this major expense.

Monitor Your Usage 

One of the easiest and most obvious ways to cut down your cell phone bill is to use your phone less.  Take a look at your usage for the past few months and compare that to your plan.  Are you paying for more than you need?  If you have an unlimited plan but only use 500 minutes of talk time on average, you may be able to downgrade your plan.  Are you paying for unlimited texting but only sending a few texts a month?  If so, paying per text may work out to be a less expensive option.  Alternatively, if you are consistently paying overages each month, consider upgrading to an unlimited or more comprehensive plan to avoid higher fees.

Also take time to consider if you need a data plan.  Most cell phone companies charge a fee for internet and media usage for a smart phone.  Consider how often you access the internet with your phone and for what purpose.  Do you need your phone for work or is it just for personal use?  You may be able to cut out your data package, saving yourself hundreds of dollars a year.

Share Your Plan

Many cell phone companies offer additional lines at reduced costs.  Companies including Verizon will often allow customers to add up to five or six additional lines under one contract.  Sharing these additional lines with friends or family members who are independent and sharing the total cost of the bill helps everyone save on their total expense.

No-Contract Plan

Some cell phone companies now offer “no contract” plans, meaning you pay a monthly premium for a set number of minutes and data, but are not bound to the company.  If you decide not to pay, your phone is deactivated and you owe nothing further.  Nextel, Straighttalk Wireless, Virgin Mobile and even major carriers such as T-Mobile offer various monthly use plans. This is often a less expensive option than a contract plan.  An unlimited “no-contract” plan is typically less than $50/month and includes talk time, texting and data.  These providers also offer an increasingly wide range of popular phones and smart phones.

Again, consider your usage and if applicable, your family’s usage before changing your plan. It’s also important to consider how often you plan to upgrade your phone as “no-contract” plans do not offer free or discounted phones.  Phone costs can range from $30 for a basic phone to over $400 for an iPhone.  To get the full value, you should plan to keep your phone for at least two years.

Most financial management advisors stress the importance of honing in on the real necessities and reducing extra costs.  Cell phone expenses are a major area to consider when performing your own assessment of needs vs. luxuries.

-Suzy S.

I was just reading an article in the Wall Street Journal called “How to Fix a Credit Report Error Before It Bites Back:” by Karen Blumenthal.  She reported on a recent study of 1001 people who reviewed their credit reports.  262 out of 1001 (or 26%) of these individuals found an error!  They presented the errors to their credit report bureau (either Experian, TransUnion, or Equifax) and in 79% of these instances, the credit bureau made a change to their report based on the feedback they received.  Although not all of these mistakes might have altered the individuals’ credit scores, some may have been significant enough to do some damage to those scores.

To prevent errors from staying on your report, be sure to check your credit report every once in awhile.  Everyone is entitled to one free review each year at annualcreditreport.com.  If you see a mistake, write to your credit report bureau, explain the mistake, and provide supporting documentation.

Credit reports are used nowadays for determining the interest on a home mortgage or car loan and even determining whether to hire an individual for a job.  Be sure to check your reports at least once a year to ensure they are accurate.

-Allison G.

In this tough economy, it becomes increasingly difficult to pay for the basic necessities in life such as food, clothing, and shelter.  As many of us have hungry mouths to feed, the question becomes, “How do I feed my family a healthy diet without breaking the bank?”

Here are some tips to help with your grocery purchasing, and to help you make good choices, both nutritionally and financially.

1. Always use a Shopping List.  This will remind you of what you need, and will also help to avoid impulse buying.
2. Don’t be “Brand Loyal”.  You may have that favorite brand of peanut butter, but instead of buying the higher-priced favorite, buy what is on sale.  If you compare the ingredients, you will find that many store brands also provide similar versions to the higher-priced varieties.
3. Plan One Weekly Shopping Trip.  If you limit trips to the grocery store, you will probably reduce the amount you spend, as this eliminates “impulse” buying.
4. Plan a Weekly Menu:  If you can plan out your dinners for the week, you can put all of the items on your weekly shopping list.
5. Buy in Bulk:  Stocking up on many items including paper products, cereal and much more at wholesale stores such as Costco or Walmart can help you avoid having to continually shop for these items at the more expensive corner grocery stores.   In addition, if you buy the larger packages of chicken and beef, you generally get a better deal.  Simply break the larger quantities into smaller packages suited to your family size and use freezer bags to store them in your freezer.
6. Buy Items in Season.  The price of strawberries can vary from $1.50 (in season) to $7.99 (out of season) per quart.
7. Read Store Circulars and Clip Coupons.  Many local grocery stores send out their circulars in newspapers.  They can also be found at the store.  Be aware of the dates of the sale items and only buy the advertised items during the sale dates.  Pay attention to the coupons that print at the register at the time of your receipt.  A couple of websites that can offer free printable grocery coupons are coupons.com and shopathome.com.  Also check out athriftymom.com to get some menu ideas, coupon advice, and grocery store deals.
8. Always Review Your Receipt.  I will never forget a trip to the store that I made about 12 years ago.  I bought a large amount of groceries, so I was expecting a big bill.  I happened to check the receipt as I was leaving the store, and noticed that a package of Muenster cheese, wrapped by the store with its own bar code stating a price of “$5.55” was scanned at the register as “$55.55.”

-Lory M.

Whether you are in the process of regaining your credit standing after tough financial times or are merely trying to safeguard your personal information and prevent fraud, here are a few tips to help protect yourself from identity theft on-line:

1.  Use strong passwords and change them frequently.  Refrain from using your name, child’s name or even your dog’s name!  Instead, use a mix of lowercase letters, uppercase letters and numbers.  In order to remember the passwords, write them down and keep them in a safe place away from your computer.
2. If a site you are using requires registration, only fill in the required fields.  Also, deny sharing permission.
3. Never click on suspicious links or on unknown email attachments.  Keep your web browser up to date.
4. Use credit cards instead of debit cards when making purchases online.  Credit cards offer stronger fraud protection.
5. Never email your credit card number to anyone.  Also, be sure to check your monthly credit card statements each month for possible fraudulent charges and report them immediately.
6. Use firewall and antivirus software.
7. Never click on any links sent to you about any problems with your bank.  Call the bank directly or go to the bank’s website.
8. When you visit websites, search for the LOCK symbol.  Look in your browser’s status bar and “https” in the address bar for a lock symbol.  Even though it is not guaranteed to be secure with the symbol, there is usually no security if the symbol is missing.
9. On social networking sites, mark your profiles as ‘private.’
10.  Teach your children about not sharing any personal information online or through social media sites.

Visit staysafeonline.org, a site powered by the National Cyber Security Alliance, for more in-depth tips on staying safe in the cyber world.

-Lory M.

1)      Set up direct deposit.  If you don’t have your paychecks automatically deposited into your bank account, get that set up right away.  Just by directly depositing the money, it will help you prevent impulse spending and it will help ensure your money doesn’t get lost.  Even better, have a portion of your checking account get automatically transferred to a savings account each month and don’t touch it.

2)      Write up a will.   Most folks don’t enjoy making plans for after death, but writing up even the simplest of wills can help ensure that any money you do have squirreled away will go to the right people in the way you intend it to. In addition, if you have kids, you can ensure that the individuals you feel would be the best parents wind up obtaining custody if something happens to you.

3)      Re-evaluate your non-essential expenses.  Go through a month’s worth of expenses and see if any can be eliminated without affecting your lifestyle.  For instance, do you pay for cable TV but don’t watch it much?  Eliminate it.  Do you pay for unlimited text messages but don’t text much?  Change to a pay-per-text plan.  Do you buy books when you could check them out of the library?  Stop buying and start borrowing.

4)      Do your research.  It never hurts to educate yourself about finances.  Read a book or two that can explain the definitions of some common financial terms, or provide some answers to questions you might have had.  These are fun and helpful: “The Millionaire Next Door” and “Personal Finance for Dummies”.

We wish you a happy, healthy, and financially prosperous 2013!

-Allison @ Sage Personal Finance

It doesn’t matter if ours still has that “showroom smell” or is so old and beat-up, prayers are regularly offered up to the car gods just before turning the key; for many of us, cars aren’t always “just” a luxury. For many of us our automobile is a necessity, a lifeline to the things we need to do, and the places we need to go, every day.

While we at Sage Personal Finance are fans of walking, biking, carpooling and public transportation (those actions are not only green, they save you cash), for some folks, a car can be the only way to get to work, to school, or to the grocery store.

If you have to have a car, it’s always wise to keep the vehicle in good repair, take steps to increase fuel efficiency and look for practical ways to save on gasoline.

DriverSide is a great general maintenance and repair site (it can help you buy or sell a vehicle too) that covers the lifecycle of car ownership. In addition to buying tips and practical repair and maintenance advice from experienced mechanics, the site notifies users about recalls and recommended repairs. A must-have resource if you “must have” a car.

In addition to offering maintenance and repair tips for car owners, The US Department of Energy’s website, FuelEconomy.gov offers advice on driving more efficiently to keep fuel costs as low as possible.  Even if driving is a necessity, following some of the common-sense advice on the site will help drivers to “sip” rather than “guzzle” gasoline on the open road.

Now that your car is primed, tuned and ready to roll out of the driveway, it’s time to find cheap fuel. Where to begin?

AAA’s daily Fuel Gauge Report is a great starting point. The site helps consumers gauge the average price a consumer can expect to pay for gasoline in any state and on any given day of the week.

Once you know what gas stations charge on average for a gallon of fuel, it’s time to zero in on finding the best possible prices for gasoline in your neighborhood — and GasBuddy is where thousands of volunteer “price spotters” gather to report and share information about fuel prices in the US and Canada. In addition to real-time reporting of gas prices, the site has a “trip cost” calculator, gas price charts and even smartphone apps for finding (and reporting) cheap gas on the fly.

How are you saving money on your car and on transportation in general? Tell us about sites that help green the planet – and your wallet!

-Cindy M.

Today, a majority of individuals attend college, and a large proportion of them will wind up owing money after college. In fact, the average amount of debt college students carry upon graduation is $25,250.  Although for most, going through bankruptcy doesn’t change student loan debts, there are a few ways to reduce or eliminate them.

First, individuals going through bankruptcy may file a special request to get their student loan debt forgiven.  This can be accomplished by filing a written complaint and serving it together with a summons on the applicable lender(s).  The individual going through bankruptcy may file it, or their lawyer may file it.  This document must be in a special format and must include the reasons why the student loan debt is causing undue hardship (see Court Form B-16; http://www.uscourts.gov/uscourts/RulesAndPolicies/rules/BK_Forms_09_Official/Form_16D_Caption_Adversary_Proc_INSTRUCTIONS_0509.pdf for the instructions).  In response to this filing, the judge will decide whether or not to forgive the student loan or some part of the loan.  Usually, the individual’s income and financial/medical circumstances, and whether or not the individual tried in good faith to make the loan payments, are all considered.  In up to 40% of all cases, the filing of this suit results in at least partial student loan forgiveness, so it can be very worthwhile to do this.

Second, there is a special program called the Public Service Loan Forgiveness Program (PSLFP), which was developed in 2007 as an incentive to attract quality workers to public service jobs.  This program provides forgiveness on federal student loan debts for individuals who work in public sector jobs after they have made a minimum number of payments on the loans.  See http://www.studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service for more information.

If you have a large amount of student loan debt, it may be very helpful to consider these options.