Financial Health

New Year’s Resolutions Revisited

2012 Glasses The new year held so much promise. A new beginning … New dreams … New goals. We could start fresh in 2012, so we gave it lots of thought and decided on a New Year’s resolution. Odds are it was one of the top ten New Year’s resolutions.

It’s the end of April and many New Year’s resolutions are long forgotten. How are you doing with yours?

Lose Weight and Get Fit
With all the weight loss products and systems, why can’t we lose weight and keep it off? Athletes know the secret: It’s leucine. Leucine helps you keep muscle while you lose weight. And since your metabolism is in your muscles, you lose the weight and keep it off. Stop the vicious diet cycle. Losing weight can be a Cinch!

Quit Smoking
Smoking is the number one preventable cause of death in the United States. There’s no good reason to smoke and every reason to quit. My Top 10 Reasons to Quit Smoking and links to resources to help you quit.

Learn Something New
Great for brain health. Take a class, learn to dance, volunteer at church or a hospital. These are just a few suggestions. The possibilities are endless.

Eat Healthy
Goodbye pizza, chips and Coke. Hello broccoli, apples and green tea. You don’t have to do it all in one day. I believe that continuing to make little changes adds up to a big difference over time. Make one little change today. I love salad. Make it interesting, add a protein and you have a healthy meal.

Get Out of Debt and Save Money
If you spend more than you earn, you’re heading in the wrong direction. The sooner you balance your spending to your income, the sooner you can start saving for larger purchases, vacation, children’s college and retirement. Make a plan and stick with it. You can Calculate your way back to financial health.

Spend More Time with Family
The number one regret people have is spending too much time working. While you’re at the office or the factory, the children grow up and sometimes spouses grow apart. You wonder where the years went. But, you can never get them back. It took me many years to realize that not everyone works 60-80 hours a week at a job. What If you could work from home, be your own boss and be there for your family?

Travel to New Places
Vacation in a distant land or close to home. There are many places in all price ranges. Even a weekend getaway can be fun and exciting.

Be Less Stressed
Suggestions: Deep breathing, meditation, yoga and Baroque music are all ways to de-stress. You may not be able to change what happens during the day, but you can change your reaction to it.

Volunteer
When you can see past your own life, you see a bigger picture.

Drink Less Alcohol
At a party, make every other drink non-alcoholic. If you have a glassful of sparkling soda with a slice of lemon or lime, you cut your calories and alcohol in half. At home, try drinking out of a smaller glass or have one less drink. Drink slowly and enjoy every sip.

Marilyn Kvasnok

Retirement Planning

Aug 11th, 2010

by Marilyn.

2 comments

A lot of people believe that Social Security and Medicare will finance their retirement. But, Social Security was never meant to be a total retirement income. We all need to fund our own retirement. And the sooner you start, the more you’ll be able to save. If you haven’t been able to save anything from your current income, how will you be able to live on less when you retire? Here are some ideas to jump start your retirement nest egg.

Stop Spending
When you’ve dug yourself into a hole, the first thing to do is stop digging! Think about your purchases and only spend what’s truly necessary. No, a Starbucks latte is NOT necessary.

Make a Budget and Stick to it
Do you really know how much you spend? It’s easy to see the rent/mortgage, utilities and car payment. But, what about the impulse spending? Keep track of every penny you spend for a month. Sort it into categories. At the end of the month, you’ll have a true picture of what you really spend. Now, add all the other expenses that occur throughout the year: Real estate tax, car insurance, homeowner’s insurance, AAA, Costco membership, credit card interest, etc. Next, the trick is to make your expenses total less than your income. The difference can be saved for retirement.

Pay Yourself First
Once your budget is under control, choose a savings vehicle. I like The Vanguard Group mutual funds. If you can’t meet the minimum contribution, start with a savings account at a bank or savings and loan. The idea is to get the money out of your hands and put it where it will earn income, even if it’s minimal to start. Set up an automatic monthly transfer from your checking to the savings account. One goal would be to live on 90% of your income and save 10%.

Don’t think you can live on 90% of your income? The Richest Man in Babylon is a short, easy to read book, written like a fable. It has a common sense approach to saving money – No matter how much or little you make.

Roth IRA (Individual Retirement Account)
One good way to save for retirement is to open a Roth IRA. It’s funded with after tax dollars, so it grows tax free. That means you pay income tax on the money you deposit into the IRA account. When you withdraw the money, it’s all tax free because you’ve paid the tax on your contribution. You can open a Roth IRA at many financial institutions, including banks, brokerage firms and mutual fund companies like The Vanguard Group.

The alternative is to open a Traditional IRA and fund it with pre-tax dollars. It grows tax deferred, so you don’t owe tax until you withdraw the money. But, if you contribute every year and your investment grows, you’ll have to pay tax on all the money you withdraw – Not just your contributions.

Free retirement planning info and programs: Analyze Now!

Yahoo Finance, Financially Fit: A Guide to Saving Smart and Living Well

Yahoo Finance, Financially Fit: Boost Your Social Security Benefits

Social Security Administration: What You Need To Know When You Get Social Security Disability Benefits

What else can you do to plan for retirement? Comments are welcome.

How Much is One Trillion Dollars?

Jul 21st, 2009

by Marilyn.

2 comments

A really long time ago, I remember when $20 in my wallet seemed like a lot of money. By the time my family was growing and the economy was booming, I needed $100 when I was shopping. Today, I need a credit card.

There’s a lot on the news lately about the federal budget and the national debt. I remember when a million dollars sounded like a lot of money. Then, it was a billion. Now, I often hear a trillion dollars on the news. How much money is that? Watch the video to learn more . . .

Video compliments of www.mint.com, a free site where you can track your finances and create a budget. You need to add your bank, credit card, home loan and investment account information – Not something I recommend. Then, Mint pulls in your balances, purchases, stock trades, etc. to give you a complete picture of your finances.

Who Are You?

Feb 19th, 2009

by Marilyn.

No comments yet

Are you defined by the things you have? The things you buy? Are you in debt beyond what you can reasonably expect to ever repay? Are you always trying to keep up with your family and friends’ lifestyles?

Or are you defined by WHO you are? What are your values? What are your priorities? What do you truly believe in? Isn’t this much more important than stuff?

The recession is real and it’s not going away any time soon. It’s making all of us take a long, hard look at who we are.

Suze Orman had very good advice on the Today Show today. She said, “If you have the money – Spend it. But if you don’t have the money – You need to save it.” Great advice from an expert. If you’re digging yourself deeper and deeper in debt, it’s time to stop. It’s time to prepare for the future. Pay your bills – Mortgage/rent, utilities, car payment. But stop the non-essential spending – Going out to eat, movies, vacations. Find the money to start saving. If things get worse before they get better, you’ll be glad you have some money put away. And when the economy improves – And it will – You’ll have a habit of savings AND money in the bank!

Health Insurance For One

Jan 27th, 2009

by Marilyn.

1 comment

I’ve been self-employed for many years. Even when I had a job in the early 90’s, the company didn’t provide health insurance. So, I have an individual health insurance policy. It started out at about $100 a month. It seemed expensive, especially because I rarely used it. The premiums increased every year, but, I knew I couldn’t go without health insurance any more than I could go without car insurance. So, I paid … And paid … Every month … Year after year.

Starting January 1st, my premium rose about $40 to $550 a month. And I still don’t use it. So, I knew I had to do something. I’ve lowered my premium in the past by raising my deductible. But this time, I wanted to REALLY lower it.

My policy is with Blue Cross Blue Shield. I learned that if I stay with them, I can change to any other policy they have without worrying about passing a physical or even filling out an application.

I found a plan that sounds good. It has a $5,000 deductible. That sounds high, but the policy works a little different from most. Wellness visits and routine tests are covered. If I go to a doctor with a medical issue, I pay the preferred, negotiated rate – Thanks to Blue Cross Blue Shield. There’s no co-pay. When I reach my $5,000 deductible, medical bills are covered 100% – Not 80/20.

I thought one drawback was going to be the network providers that I had to use. My policy is Ohio based, but I spend winters in Florida. According to the insurance agent, I can use any Blue Cross Blue Shield provider in the US. There are even providers internationally. At this point, I’m just about sold on this policy.

The deciding factor was the premium. I now pay $225 a month. That’s a savings of $325 a month that I can use for doctor visits. And if I don’t go to the doctor, I get to keep the $325.

This plan is called Lumenos HSA 100. Learn more of the plan details. Mine is an Ohio plan, but it may be available in other states.