by Judy Corbus | Mar 15, 2016
Photo credit: pixabay.com
In spring cleaning mode? If so, now is the perfect time to de-clutter your financial life. Organizing important papers as well as purging unnecessary ones will reduce paper clutter and stress and help you to locate what you need when you need it. Let’s get started!
Store home files as follows:
- Current files – day-to-day records. These include bank account information, bills and receipts, loan agreements, and certain medical information. For a list of suggested categories, check out Financial Recordkeeping: Organizing Your Financial Life.
- Permanent files – on-going records used infrequently, such as employment and education records and health benefit information.
- Dead storage – anything you feel uncomfortable discarding, such as old tax records or real estate you’ve sold. These can be stored in less accessible drawers or boxes.
Discard the following monthly: Credit card, grocery, ATM, and debit card receipts after they appear on the statement unless they are needed for taxes, business, or proof of purchase.
Keep these items for one year:
- Paycheck stubs – save until you compare with your W-2 and Social Security earnings statements then shred.
- Canceled checks and bank statements – shred unless needed for tax purposes or can be retrieved online.
- Quarterly investment statements – double-check with year-end statements then shred.
How Long to Keep Tax Records
The IRS recommends 3-6 years for income tax records, worksheets, and documentation of deductions. Keep records for as long as needed for administration of the IRS code. Tax records often are useful in situations where financial history is relevant.
Do Not Toss:
- Birth and death certificates, adoption decrees
- Marriage licenses and divorce decrees
- Social Security cards
- Military discharge papers, including spouse, even if deceased
- Immigration documents
- Pension plan information from current and former employers
- Estate planning documents
- Life insurance policies
- Titles for property still owned
De-clutter a section at a time – if the task seems overwhelming, work at it 15 minutes a day until you’re finished. Then, enjoy less stress with organized files!
Adapted from De-Clutter Your Financial Life, Julie England, UF/IFAS Extension Lake County, and Lisa Leslie, UF/IFAS Extension Hillsborough County, 02/16.
by Judy Corbus | Feb 10, 2016
As W-2 forms and other receipts start rolling in, we’re reminded that tax season is upon us once again. It’s exciting to get back some of your own hard-earned money in the form of a tax refund! Saving a portion of your tax refund can be a big step toward meeting your savings goals, so it’s no surprise that a 2015 tax season survey found that a majority of those who receive a refund planned to save it.
This tax season, reward yourself for saving some of your refund by entering for a chance to win $25,000 through SaveYourRefund. SaveYourRefund has 101 cash prizes, including 100 weekly prizes of $100 and one grand prize of $25,000. Making smart financial decisions isn’t always easy, but splitting your refund couldn’t be simpler. Follow these quick and easy steps to enter to win in 2016:
- Use Form 8888 to split your refund. Entry to win with SaveYourRefund starts with splitting your refund into savings.
- Save $50 or more of your tax refund. In order to enter, use Form 8888 to save at least $50. There are a number of accounts you can save into including a savings account, a U.S. Treasury Direct account (savings bond), and a myRA retirement account.
- Visit SaveYourRefund.com to enter. You will automatically be eligible to win one of ten $100 prizes that will be given away every week from the start of the contest until the end of tax season.
- Upload a picture here that represents your savings goal or motivation, and you’ll be entered to win the $25,000 grand prize!
Need tax assistance? Take advantage of a Volunteer Income Tax Assistance (VITA) program. VITA programs offer free tax help to those who generally make $53,000 or less, persons with disabilities, the elderly, and limited English speakers.
Get ahead of your financial goals by splitting your tax refund into savings, and reward yourself with SaveYourRefund!
Source: Tammy Greynolds, AmericaSaves.org.
by Dorothy C. Lee | Nov 27, 2015
It’s the season to be jolly, but for many of us it’s the season to be overstressed as well. If getting ready for the Holidays is beginning to feel like a full-time job, start rethinking your holiday plans and consider streamlining, or even scaling back, some of your activities.
Following are some holiday survival tips that can help you save time and money, and preserve the holiday spirit in your heart.
- A few shopping strategies can help you save time and reduce the hustle-bustle stress. Shop early in the month and early in the day.
- Take advantage of free gift boxes and free or low-cost wrapping services. Wrapping presents can take as much time as shopping for them.
- Shop online and have the company wrap and ship gifts directly to recipients. Make sure you are shopping on a secure site. Look for the padlock icon.
- Simplify gift giving by choosing a theme. For example, buy a book or a sweater for everyone on your list.
- Suggest exchanging cards instead of gifts at the office.
- To keep packages sorted, wrap all of each person’s gifts in the same wrapping paper color or pattern.
- Instead of exchanging gifts with a friend you haven’t seen in a while, suggest a Dutch treat lunch date at a nice restaurant.
- Call a family meeting or, if family members are distant, arrange a conference call, or a mass text or email to discuss gift giving. You are probably not the only one who wants or needs to scale back on gifts. Strategies to discuss include drawing names so each individual buys a gift for only one person; giving family gifts; or giving gifts only to the children.
- Establish a spending limit and stick to it. If your holiday cash is limited, make gifts well in advance or think of creative ways to give of your time AFTER the holidays.
- Simplify your plans. You don’t need to decorate every room in your house or give gifts to everyone who sends you one.
- Reduce your entertaining requirements. Plan a themed potluck instead of dinner parties for which you are responsible for all the food. The same goes for family get-togethers. Ask each participant to contribute a dish for the meal.
- Keep your priorities straight: take time to think about what is really important to you; be realistic about how much you can do; don’t be afraid to say no.
- Setting priorities will help keep your schedule manageable. Draft a schedule that includes all the tasks you have to complete, how long you think each task will take, and when each needs to be done.
Most importantly, enjoy the holidays!
For further information contact:
Dorothy C. Lee, C.F.C.S.
UF/IFAS Extension Escambia County
3740 Stefani Road
Cantonment, FL 32533-7792
(850) 475-5230
dclee@ufl.edu
For additional information, go to the University of Florida Solutions for Your Life website, http://www.SolutionsForYourLife.com
by Shelley Swenson | Oct 30, 2015
Holiday Spending
The holiday season will soon be upon us. It seems to begin earlier each year placing more stress on both retailers and consumers. Retailers struggle to sell more products while consumers are subjected to a bombardment of messages via ads and media to encourage us to buy more! Through careful planning, the journey can be more emotionally and financially stable.
It is not about sacrifice; it is about opportunity to…..
- Make the commitment to be debt free from holiday expenses on January 1, 2016 through good planning.
- Create a spending plan and log each expense. Use cash and/or debit cards when at all possible. Money coming directly out of your pocket will likely make you think harder about your purchase.
- Stay motivated by finding a support system of people who have similar goals. Share your vision and ask for assistance and support.
- Think of ways to find alternatives to pricey presents. Holidays are about spending time with family and loved ones so don’t let gifts be the focus of your holidays or break your holiday budget.
- Track and assess your spending. Recommit daily to being debt free on January 1, 2016 from holiday expenses.
- Learn more about this subject with worksheets to assist with your planning at https://edis.ifas.ufl.edu/pdffiles/FY/FY140500.pdf FCS5267
by Elizabeth | Aug 29, 2015
Large Screen TV
Very few of us have money ready to cover an emergency, never mind the money for the larger purchases we’d like to make. This is why it’s so important to prioritize savings to cover both the items you need as well as those you want.
Whether you’re saving for a new computer or a car, the security deposit for an apartment or a house down payment, a little planning and an easy-to-maintain budget will be instrumental in making your big ticket purchase a savings reality. With these direct and easy steps, big ticket items don’t have to be limited to big dreams:
Set Your Goal. It’s easy to keep dreaming of the things you want or even things you might need, but making it a point to establish your big ticket item as an actual savings goal is a necessary first step in making the goal a reality.
- Do Your Research. Start with the most important question: how much is your large purchase going to cost? Some items, like a computer or a security deposit, will have a set dollar amount that you’ll need to save for, while other items, like a car or a home, will need to include associated costs for maintenance, insurance, and taxes/fees.
- Make a Plan. Once you know your goal and all of the costs associated with that goal, it’s time to dig into your BUDGET to determine how much you’ll be able to save each month. You might need to make some changes to your spending to make savings (or additional savings) happen. Dividing your goal’s costs by the amount you’ll be able to save will also let you know how long you’ll need to save. When you know these two items, head over to AmericaSaves.org to take the pledge and put your savings plan into action.
- Automate Your Savings. Start a good saving habit by automatically moving the predetermined amount into your savings account each month. Employer-based direct deposit can move the amount straight from your paycheck into your savings account or you can set up an automatic transfer through your banking institution. Regardless of which method you choose, be sure to keep your savings in a separate savings account to watch your money accumulate with interest (and the harder to access those funds, the better).
- Earmark windfall income. Depending on how long you’ve determined it will take to reach your savings goals, you may want to plan to move any additional unbudgeted income directly into savings. Receiving an end of year bonus? How about a tax refund? Since those funds aren’t a part of your established budget, you won’t miss the additional income by moving a portion of it into savings – plus, you’ll cut the time it takes to reach your goal!
To learn more about saving for a large purchase and take the America Saves pledge, visit AmericaSaves.org. Article adapted from AmericaSaves.org Saving for large purchases.
by Elizabeth | Jul 15, 2015
Do your homework on tuition costs before entering college.
The decision to go to college may seem to be a no-brainer, however, paying for the constantly increasing costs of college can be quite challenging. Given the increase of costs to attend a university, most prospective students are driven to borrow money to cover tuition and other costs associated with attending college. Like everything that requires large sums of money, planning and saving is key. Lack of financial planning may result in huge debt loads among young adults aspiring to obtain a college education. Personal financial planning for college tuition should begin as soon as a person enters high school or even earlier. Students should be asking for assistance from counselors who can help them decide both their major in college as well as how to pay for the degree. Doing this earlier will help students become focused and not change majors, which may result in taking more time and classes to graduate, thus requiring more financial assistance.
Before signing any type of financial documents students need to READ the fine print and calculate the cost of borrowing. Here are a list of websites to help you navigate the cost of attending college.
http://www.collegedata.com on this site you can type in a college name and find out the cost of attending that college. By doing this you can decide whether an in-state or out of state college is right for you financially.
The Florida Department of Education, Office of Student Financial Assistance (OSFA) http://www.floridastudentfinancialaid.org/FFELP/ffelp_homepage.html helps you determine what financial aid you qualify for.
The Consumer Financial Protection Bureau (CFPB) website http://www.consumerfinance.gov/students/knowbeforeyouowe/ gives you access to worksheets that you can fill out to compare the different loans available to attend a college.
Armed with information from these sites, you can make an informed decision based on affordability. Graduating with little or no debt at all is ideal, however, not all of us have that opportunity. Therefore, a little homework on tuition costs before entering college may result in less debts upon graduation.
