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By John Ingrisano
By John Ingrisano
Director, Family Finance Conference Center
If you’ve ever hired a moving company to transport your life’s possessions from one house to your new home, you know that sinking, fearful when the movers show up at your door.
Will you ever see your stuff again? Will cherished items turn up broken … or not turn up at all? Also, will the price quoted be the same as the amount demanded once the truck is loaded, or will the movers attempt to hold your life and possessions hostage for a ransom
?
If selecting a mover creates high anxiety, you are not alone … and you have good reason for your concerns. While most movers are honest, the industry is rife with corruption.
If you or a loved one is moving, here are some ways to protect you against moving scams:
- Take a video of everything in your home, concentrating on items of unusual value or worth. If you have time to write up a list of your possessions, do so. That way, if something disappears, you have proof.
- Get several quotes from different companies.
- No quotes over the phone. Make sure a representative comes to your house. Some movers, in order to save time, as well as to give themselves wiggle room in terms of adding costs, may ask you how many rooms you have or how many boxes you think you might need. You are not a moving expert, and you have no way of providing a reliable estimate of your needs. If you guess too high, expect no refund; if you guess too low, don’t be surprised if additional charges are added. Instead, let the experts do their jobs and take the responsibility.
- Insist on a getting a Not-to-Exceed form. In the moving business, that is a binding estimate, sometimes called a “not to exceed” form. Get it in writing and signed before anyone touches anything. Then read it carefully before you sign it. This also provides you with the best legal recourse if something goes wrong.
- Never pay in advance. Reputable movers expect to be paid when the job is complete. (Remember, they have your possessions on their truck. That should be enough.)
- Don’t let your goods be held hostage. Disreputable movers have been known to provide low-ball estimates, load up the van, and then announce that there will be additional charges. That’s why you need that binding estimate, which spells out what is included and what is not. No surprises.
- Check the movers’ proof of insurance. Don’t take anyone’s word for it; get a copy.
- Lock in a delivery date, and get it in writing (with penalties for delays, if possible). Some movers pick up several shipments along the way to your destination. While this is usually legal, it can delay your delivery by days, even weeks.
- Oversee the unloading process, whether at your new home or at a storage facility.
- Move highly valued items personally. Movers work fast and can be rough on your goods. So if possible, either hand-carry special items or have them insured and sent to a safe place via a specialized shipping company, such as FedEx or UPS.
Moving can be a traumatic experience. Follow the above steps to reduce the odds of it becoming a serious disaster. Good luck. – JRI
By John Ingrisano
By John Ingrisano
Director, Family Finance Conference Center
It’s grown from a trend to a movement to a downright lifestyle: Thanks to a lousy economy and zero-opportunity job market, 85% of this year’s college grads are moving back home with Mom and Dad (TIME News Feed). But wait, there’s more: A recent Pew Research Center study shows that 40 percent of 18 to 29 year olds are either jobless or out of the workforce altogether. It’s a tough time for the younger generation.
The result can be an emotional challenge when junior moves back into the basement; it can also be a financial strain for everyone.
A few tips to help both generations survive and maybe even thrive:
- Lay down rules … and put them in writing. These should include everything from use of shared resources (“Who ate the last piece of pizza in the frig?”) to house guests (“Mom, meet Cindy. She’ll be staying for a few weeks.”) to pets (“Monster’s not like other Pit Bulls; he’ll get along just fine with your Fluffy.”) to the use of tobacco, alcohol and drugs (“Hon, what’s that smell?”). Need help setting up the rules? Consider a pre-move-in contract.
- Decide who pays for what? Yes, you want to help your children, but if your son or daughter gets a job, consider asking for rent. Decide such things as who fills up the gas tank on the car, as well as who drives the vehicle.
- Decide how much you should/can help with debt. Between college loans and possible credit card bills, your boomerang child may return home with some major financial liabilities … and no money to pay them. Yes, you may want to help. At the same time, be careful not to jeopardize your own financial security. It is not uncommon for parents to tap into their retirement nest eggs to help. Only do so if it will not undermine your own plans. Seriously. If you are in your 50s, you may have ten to 20 years to retirement. That gives you very little time to recover if you begin siphoning off assets. (Also, if you are not yet 59 ½, you could pay tax penalties if you take qualified money.) Your children, on the other hand, may have 40 to 50 years before retirement. That gives them decades to crash and burn and still recover financially. So, do not automatically pick up your child’s bills when they come in. Maybe free room and board is not just all you can afford, but more than enough.
- Have a move-out date. This gives everyone something to look forward to. It also provides an incentive to help motivate your child to be aggressive in his or her job search. You can always revise the date as needed. However, setting one initially helps define an eventual exit strategy.
These are tough times for American families. If your child need to return to the nest, make sure everyone understands the pros and cons of the deal and is willing to work together. Good luck. – JRI
$ $ $
Want to learn more about how to get the biggest bang for
the money you save and spend?
Check out The Back to Basics Book of Money! A Couple’s Guide to Financial Peace. The book contains 10 valuable Couple Money Skills. Plus, the Back to Basics Book of Money Workbook (which dovetails with the main text) offers 31 practical, hands-on Wealth Builder activities that can help you and your partner build financial and domestic stability. Both the book and workbook, which retail for $31.98 plus S & H, are available at the Family Finances Conference Center website for $27.99 total.
The Family Finances Conference Center tailors programs to the unique and individual needs of client organizations and their members and employees, based on the principles of the book and workbook set, The Back to Basics Book of Money! A Couple’s Guide to Financial Peace.
For more information, contact me at the Family Finances Conference Center by email (john@b2bbookofmoney.com) or my direct phone line (920-559-3722).
John Ingrisano
Director
Family Finances Conference Center
209 Church Street
Algoma, WI 54201
(920) 559-3722
john@b2bbookofmoney.com
John Ingrisano is a business journalist, public speaker, author of The Back to Basics Book of Money! A Couple’s Guide to Financial Peace, and director of the Family Finances Conference Center. He can be contacted at (920) 559-3722.
By John Ingrisano
By John Ingrisano
Director, Family Finance Conference Center
The recession is taking its toll on families. If one of you gets laid off, finding a new job is almost impossible these days. Even when income is still coming in, however, there is a sense of financial doom just outside the campfire light. One wrong move and the wolf is through the door.
As a result, these days more than ever before, couples are tense over money, and it is taking its toll on relationships.
What to do:
- First and foremost, work together.
No secret, no games. Get on the same page. Your relationship, your marriage, your family, and your home depend on it.
- Talk about all money decisions on a regular basis. That means talk, not argue. Money issues are still the top reasons for domestic discord. The best way to begin working together and talking about money is to pay bills together. Discuss each bill as it comes up for payment.
- Put away the credit cards. Good advice at any time, this is crucial today. No plastic; cash only.
- Pay down your debt. That way, if one of you does lose his/her job, you will be in a better position to weather the storm. So, if you are making minimum payments on your credit cards, end that practice right now. Instead, figure out when you can be debt free, and work toward that goal.
- Do not skip payments. Your credit score will be downgraded so fast you won’t know what hit you.
- Defer big purchases. These are odd, strange, and dangerous times financially. Put off that new couch or cruise this winter. It won’t kill you … and, hopefully, this recession will end soon. In the meantime, watch your expenditures.
- Get on a budget. Calculate when, where and how you spend every penny. In no time at all, you will find that you are living better on less. Funny how that works.
Each of the above tips will help increase the probability that you will get through this recession financially intact. They will also help keep your relationship strong. Good luck. – JRI
By John Ingrisano
By John Ingrisano
Director, Family Finance Conference Center
If you can shave 10% off your $2,000 vacation travel plans this summer, that’s $200 back in your pocket. Do it a few dollars at a time. Best of all, it’s easy.
Here are some tips:
- Pack light and
gate-check airplane bags
. Most airlines are still charging $15 to $25 per bag each way. That alone can cost a couple $100 round trip … much, much more if you take the kids along.
Instead, pack lighter and use smaller bags. Or double up and use one bigger bag. (But watch the weight; there is usually a 50-pound limit.)
- Shop for the best rental care deal. Car rental companies sometimes play fast and loose, adding on extra charges like crazy. However, they are also in fierce competition with each other. Fortunately, in many airports, the counters are side-by-side. Do not be afraid to walk the line and ask for the best deal. (Even if you reserve a car, most rental companies do not take the credit card in advance, leaving you free to find a better deal on the spot.)
What else: Ask for the best rate and request a free upgrade. Especially with gas prices so high, the demand for big cars is way down. (I got a Hummer-size Dodge Nitro last month for the price of a compact.) Also, there should be no mileage charge (few companies do charge for miles driven anymore), no additional insurance costs (these can double your rental costs, but be sure to check with your insurance agent back home to make sure you are covered for driving a rental car on vacation), and always plan to return the car with a full tank of gas. (That convenient, we-fill-it-for-you offer means they will charge you for a full tank, even if you return it half full.) Finally, if you expect to need a GPS, bring your own; do not rent it from the car company. Depending on your needs, all this can save you $100 or more on your car rental.
- Look for the best hotel for the best price. Rates and amenities vary greatly. However, it is often the newest, mid-priced motels ($65-$85 per night) that not only offer quality rooms, but also the most no-cost amenities, even, in some cases, a hot-buffet breakfast (which can save you between $5 and $10 per person per day) and a pool.
Also, ask for every discount you can, from 10% off for Triple A to senior savings to an impromptu request for “the best rate you have.”
So, watch your dollars and your pennies while on vacation, just as you should be doing at home. That way you can have a fun vacation while saving a ton of money.
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By John Ingrisano
Are Money Worries Ruining Your Peace of Mind?
By John Ingrisano
Director, Family Finance Conference Center
[The following is taken from The Back to Basics Book of Money: A Couple’s Guide to Financial Peace, by John Ingrisano. For more information, click on the title above.]
Doubt that money plays a major role in your emotional well-being? Ask yourself how worrying about paying an overdue bill, using a credit card when you know you are already having trouble making payments, or finding that you have a 31-day month but only a 28-day paycheck – how all these distract you and reduce your ability to enjoy your life. You and your spouse or significant other should take the following mini-quiz. Answer the questions below, and give honest answers, checking all that apply.
She He
[ ] [ ] Have I ever lost sleep over money
concerns?
[ ] [ ] Have I ever argued with a family member over money?
[ ] [ ] Have I ever avoided someone to whom I owed money or
dreaded the arrival of the mail because it might contain bills?
[ ] [ ] Have I ever debated with myself over whether I could join
friends or family Members for an evening out or other fun time
because I could not afford to go?
[ ] [ ] Have I ever purchased something and experienced “buyer’s
remorse” after I’d gotten it home?
Now imagine how differently you would feel if you had no debt and adequate money in the bank to pay bills, with a little left over for a fun evening out.
Do NOT think about new things you could buy or another trip you could take. Instead, consider how much less you would worry and, quite frankly, how much happier you would be.
$ $ $
Want to learn more about how to get the biggest bang for the money you save and spend? Check out The Back to Basics Book of Money! A Couple’s Guide to Financial Peace. The book contains 10 valuable Couple Money Skills. Plus, the Back to Basics Book of Money Workbook (which dovetails with the main text) offers 31 practical, hands-on Wealth Builder activities that can help you and your partner build financial and domestic stability. Both the book and workbook, which retail for $31.98 plus S & H, are available at the Family Finances Conference Center website for $27.99 total.
The Family Finances Conference Center tailors programs to the unique and individual needs of client organizations and their members and employees, based on the principles of the book and workbook set, The Back to Basics Book of Money! A Couple’s Guide to Financial Peace.
For more information, contact me at the Family Finances Conference Center by email (john@b2bbookofmoney.com) or my direct phone line (920-559-3722).
John Ingrisano
Director
Family Finances Conference Center
209 Church Street
Algoma, WI 54201
(920) 559-3722
john@b2bbookofmoney.com
John Ingrisano is a business journalist, public speaker, author of The Back to Basics Book of Money! A Couple’s Guide to Financial Peace, and director of the Family Finances Conference Center. He can be contacted at (920) 559-3722.
By John Ingrisano
This is a horrible, true story I head this week: It’s about a life insurance death claim with no money. A few details have been changed for the sake of privacy, but the relevant facts are accurate.
A forty-something woman and her mother came into an insurance agency to pick up a claim form. The woman’s 47-year old husband, supposedly in good health, had died of a heart attack a month earlier. Bang. Just like that.
The widow had come in to request the life insurance proceeds on her husband’s policy. She believed the policy was for a term policy with a death benefit of approximately $500,000. This was money that would enable her and her teenage children to continue to live in their home and maintain their lifestyle. It was money that would have made the difference.
They were pleased to learn that the death benefit had actually been $700,000. However, they were stunned to hear the next piece of news: Her husband had cancelled his life insurance coverage just three months earlier, returning his premium notice with a handwritten note that read, “I can’t afford this!”
Term life insurance, unlike whole life and other permanent coverage, has no living benefits. When the policy terminates, so do all death benefits.
As the two women left the office, the widow commented to her mother, “I think we’ll have to sell the house.” (And BTW, that is going to be a challenge, too, in today’s lousy real estate market.)
My point: The husband just might have wanted to discuss his decision with his wife/widow before cancelling “their” coverage. That’s right, “their” coverage, because the life insurance decision — whether to buy, defer or cancel — impacts a whole family. Life insurance is not about money.
It is about people … their lives and their dreams.
I know people who are glib about life insurance and tend to look down their noses at agents. However, here’s the real fact: If you cherish your partner and children, you need to have life insurance. That man’s $700,000 of benefits his widow will never receive would have made the difference in lives of his wife and children.
Sometimes terminating a policy is the right decision. But think through your decision. Start by sitting down with a licensed professional and getting the facts, finding out what other options are available, and making sure you and your loved ones understand the potential consequences of your decision.
By John Ingrisano
By John Ingrisano
Director, Family Finance Conference Center
No, we will not ask for a show of hands. But truth be told, a lot of people don’t have a clue what to do with their money. They’ve just never given it a thought. They earn it, spend it, borrow it, repay it, and hope enough keeps coming in one door to cover what goes out the other.
That’s not a great way to “manage” money. So, here are four things you should NOT do with your money.
1. Spend what you earn…and then some. If you earn $125,000 and spend $126,000, you are broke. But if you earn $35,000 and spent $34,999, you are living within your means.
A better way: Whether you earn $25,000 a year, $100,000 or $500,000, set up a budget (also known as a spending plan) and learn to live on it. Treat your household as if it were a business, tracking income and expenses.
2. Ignore the difference between expenses and assets. Need that sports car? How about that super-sized flat-screen television? Or that gotta-get-away vacation? All fine things, yes, but what about the children’s college fund or paying down some of that long-term debt?
A better way: Recognize that some places to put your money are better than others. Example: What is the difference between buying a $25,000 boat and a $200,000 vacation home? Answer: One is an expense (sometimes referred to as a large hole in the water into which one pours money) that will steadily decline in value. The other is an asset, an investment that is likely to increase in value over time. Both have the potential to provide a lot of personal pleasure and satisfaction. However, one – that vacation home – also has the potential to enhance your financial stability and security.
3. Put off saving until next week…or next month…or next year. Saving money can be tough, which is why many people simply put it off.
A better way: Start paying yourself first. Allocate for the future a piece of each dollar that comes in today. As part of your budget, build in regular savings. Some people use a fixed dollar amount; others use a percentage of gross or take-home income.
4. Take advantage of all your credit. Some people act as if it would be bad manners to turn down a credit offer, or that it would be foolish to decline an offer with a radically low interest rate. This helps explain why the average person with a credit card carried a balance of nearly $8,500 in 2007.
A better way: If you can’t pay cash, you can’ t afford
to buy it. Period. You cannot borrow your way out of debt. Put away the credit cards, start paying off your debts systematically, and use cash as much as possible.
Want to learn more about how to get the biggest bang for the money you save and spend? Check out The Back to Basics Book of Money! A Couple’s Guide to Financial Peace. The book contains 10 valuable Couple Money Skills. Plus, the Back to Basics Book of Money Workbook (which dovetails with the main text) offers 31 practical, hands-on Wealth Builder activities that can help you and your partner build financial and domestic stability. Both the book and workbook, which retail for $31.98 plus S & H, are available at the Family Finances Conference Center website for $27.99 total.
The Family Finances Conference Center tailors programs to the unique and individual needs of client organizations and their members and employees, based on the principles of the book and workbook set, The Back to Basics Book of Money! A Couple’s Guide to Financial Peace.
For more information, contact me at the Family Finances Conference Center by email (john@b2bbookofmoney.com) or my direct phone line (920-559-3722).
John Ingrisano
Director
Family Finances Conference Center
209 Church Street
Algoma, WI 54201
(920) 559-3722
john@b2bbookofmoney.com
By John Ingrisano
By John Ingrisano
Director, Family Finance Conference Center
Not all couples with big debts get divorced. However, owing a ton of money does play a major role in marital blisslessness … and the bigger the debt wad, the greater the likelihood that the couple will head for the hills in different directions.
Too much debt “fuels a sense of financial unease among couples,” according to the 2010 article, Thrifty Couples are the Happiest. This “increases the likelihood that they will fight over money matters; moreover, this financial unease casts a pall over marriages in general, raising the likelihood that couples will argue over issues other than money….”
Similarly, having less debt and more assets strengthens marriage, research has shown.
The bottom line: If you haven’t already cut up those credit cards, now is the time to do so. Otherwise, not only can mounting debt make you generally unhappy (there’s that problem of “blissnessness” again), but it can erode your marriage.
By John Ingrisano
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By John Ingrisano
Director, Family Finance Conference Center
Rule # 1: ‘Tis better to live in comfort than in poverty. It’s natural to want to drive a nice car, live in a nice home, be able to give your children nice things and a good education. Well, if you’re just starting out – let’s say you’re in your 20s – here is how to do it:
1. Invest in an education. And if you have one degree, keep on going, even if it means being a part-time student. Or defer marriage until you have the education you want. Note: There is a direct correlation between level of education and income level.
Example: If you finished high school and decided jump into the job market, your expected income would be around $32,000 a year. Not bad. However, if you went on for a four-year college degree, your expected income (and this is in your 20s and early 30s; it gets better each year) would be around $46,000. That’s a pretty major lifestyle difference. So… GET AN EDUCATION!
2. Don’t have children unless and until you are married. Have a baby and every other plan goes out the window. Single parents live in poverty more than any other group. Why would you want to destroy your future and that of your children? So …WAIT!
3. Don’t have children until you are ready … even if you are married. Children are not like puppies. They are time-consuming and expensive. Have children before you are ready and you will find yourself financially struggling for decades. Instead, wait a few years until you can afford to do it right. Might as well wait. Once you have children, they’ll be around for years. So, again … WAIT!
4. Live below your means. You do not always need the best and newest of everything. Live a lifestyle that whispers, “enough,” rather than one that shouts, “More”! Stuff won’t give you happiness. A financially stable relationship just might. So … THROTTLE BACK ON THE SPENDING.
5. Save money, at least 10% of your take-home pay. That’s the simple but true not-so-secret to getting rich … a little bit at a time. If you’re bringing home $600 a week, shovel $60 into savings. So … SAVE.
6. Learn the # 1 “secret” to building wealth. That is: Put your money to work for you! There are two ways to make money: People at work and money at work. Imagine that you have accumulated $10,000 over three years.
Example: If you can put that to work in a reasonable investment and earn a 5% return, you will have an extra $500 in one year (that’s like having someone kicking in an additional $60 a week for eight weeks), and all you had to do was sit back and do nothing more than choose a reasonable investment. (And on that subject, be sure to get professional advice on where to invest your money.)
Best of all, if you keep your mitts off that dough and keep adding to it, it will keep on growing and the money grows and compounds. Eventually, you will be able to stop working and retire in style. And yes … ENJOY!
Congratulations. You have worked hard, saved money, lived comfortably though not extravagantly and built a good and solid life. That’s it; that’s all it takes. No, it’s not glamorous and there are no lazy-bones short cuts, but it is the only way that is proven to work.
$ $ $
Want to learn more about how to manage your money and your life? Check out The Back to Basics Book of Money!
A Couple’s Guide to Financial Peace . The book contains 10 valuable Couple Money Skills. Plus, the Back to Basics Book of Money Workbook (which dovetails with the main text) offers 31 practical, hands-on Wealth Builder activities that can help you and your partner build financial and domestic stability. Both the book and workbook, which retail for $31.98 plus S & H, are available at the Family Finances Conference Center website for $27.99 total.
The Family Finances Conference Center tailors programs to the unique and individual needs of client organizations and their members and employees, based on the principles of the book and workbook set, The Back to Basics Book of Money! A Couple’s Guide to Financial Peace.
For more information, contact me at the Family Finances Conference Center by email (john@b2bbookofmoney.com) or my direct phone line (920-559-3722).
John Ingrisano
Director
Family Finances Conference Center
209 Church Street
Algoma, WI 54201
(920) 559-3722
john@b2bbookofmoney.com
John Ingrisano is the author of The Back to Basics Book of Money! A Couple’s Guide to Financial Peace, and director of the Family Finances Conference Center. He can be contacted at (920) 559-3722.
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www.b2bbookofmoney.com
Copyright © 2010 John R. Ingrisano
By John Ingrisano
By John Ingrisano
Director, Family Finance Conference Center
Families tend to wait until it’s too late to discuss important issues…until after the one person who knows the answers isn’t able to provide them. How will the bills be paid while Dad is in the hospital? Has Bob designated a durable power of attorney? Where is Mom’s will? Who was supposed to get Grandma’s wedding ring? Has anybody found the key to the safe deposit box? Was Aunt Clara really promised the good crystal?
That’s why many families take an hour or so during a holiday get-together to hold a family finances conference. Below is a recommended checklist of topics to cover. (Feel free to copy and use it in your family meeting, adding items as needed.) All adult family members should be encouraged to complete it before meeting. Then use each item as a platform for discussion.
“Family Matters” Discussion Checklist
[ ] Do I have an updated will? (All adults should have one, not just senior family members.)
[ ] Are there specific family heirlooms I would like to receive someday (or give to a specific family member)? These decisions can be included in your will.
[ ] Do I have guardians for minor children?
[ ] Do I have a durable power of attorney
?
[ ] Do I have a medical power of attorney? You have a legal right to specify the level of care you wish to receive if you are incapacitated. Most of all, you can designate the individuals responsible for making such decisions.
[ ] Are my life insurance, pension, IRA and annuity beneficiary designations current?
[ ] Are all my important documents in one place, such as a safe deposit box? Are designated family members’ names on the signature card?
[ ] Do I have a list of important information, such as bank and other account numbers, life insurance policies, retirement accounts, and other assets, along with the names and contact information of my attorney, accountant, insurance and other advisors, and other professionals?
[ ] Do I need to contact my attorney or other advisors to update my will or to review my life insurance, retirement or estate plan?
