The Bad Guys are On Their Way . . .

You’ve probably heard a bit about the Equifax breach.  In light of this breach, I thought it may be useful to remind everyone about the things we can do to protect ourselves from unauthorized access to our financial accounts.

Equifax is one of the three major credit reporting agencies in the U.S.  They maintain credit reports for 143 million American consumers.  Hackers were able to access Social Security numbers, birth dates, addresses and drivers license numbers.  There are also a small number of people whose credit card numbers were accessed.

S-U-P-E-R   S-C-A-R-Y

With that information, scammers can obtain credit in your name, file a tax return and obtain your refund and basically wreak havoc on your life.  If they successfully do this, you’ll spend years and countless hours working to restore your good credit and obtain your tax refund.

What the experts say you should do to protect yourself: Continue reading “The Bad Guys are On Their Way . . .”

When Should YOU Claim Social Security?

Social Security is available from the time we turn 62 years old.  But there is a penalty for taking it before our full retirement age–the payment is lowered.  And there is a benefit for taking it later than our full retirement age–the payment increases for every year we defer until age 70.  There is no reason to defer past 70.

For most of my readers, your full retirement age is 67.  For those born between 1938 and 1959, your full retirement age is between 65 and 67.  For those born before 1938, your full retirement age is 65.

Conventional wisdom says if you are in good health, you should wait until age 70 to claim Social Security because that maximizes your payment.  The payment grows 8% per year from your full retirement age until 70.  8% sounds like an amazing increase until you realize you are trading twelve months of payments for that increase.

And conventional wisdom assumes you are living paycheck to paycheck.  You get your Social Security and you spend your Social Security.

If that’s your situation, then you’ll claim it when you need it to pay your bills and put food on your table.

But I suspect many of my readers are in our situation:  We will have other resources available to pay our bills.  We will claim Social Security so we optimize our long-term finances. Continue reading “When Should YOU Claim Social Security?”

10 Painless Things We Do To Save Money

If you need to reduce your spending in order to meet your goals, you have to focus on the BIG 3:  lodging, transportation and food.  These three categories typically make up the bulk of your expenses.

We didn’t always make the “smartest” decisions on these three–we own a stupidly big and expensive home, we bought new cars, and we eat in restaurants and buy expensive groceries on occasion.

But I think we were smart about a bunch of little things and those little things helped us grow our wealth and reach financial independence in our 40’s (me!) and 50’s (Mr. Ms. Liz!).

Save your money and the earth:

Don’t light up areas where you aren’t.  We have so few lights on, our neighbors probably wonder if we’re home.  This goes for exterior lights too–we turn them on when guests arrive and leave but they are otherwise off.

When we do need a bit of ambient light in an area–like when we’re running back and forth to the laundry room–we choose the switch that runs two lights rather than the switch that lights up the entire room.  Mr. Ms. Liz narrows it down even further by not using puck lights that are expensive to replace and burn a lot of electricity in favor of using our pendant lights.

Turn off your fireplace pilot in the summer.  This saves natural gas and that little sucker generates a surprising amount of heat. Continue reading “10 Painless Things We Do To Save Money”

But Budgeting Doesn’t Work For Me!

You’re busy, I get it–family, work, physical health, keeping the house clean, trying to get a healthy meal on the table . . .

Budgeting seems like a huge pain–no fun at all.  You know you need one but you’ve not made the time to make one and you know it will be futile; you’ll never track your money or follow a budget anyway.

You may not even need a budget.  What?  You gasp?  And I won’t even call you a slacker for not having one!

Just pay yourself first.

Each paycheck, direct your payroll department to contribute to your company retirement plan up to the company match.

Add the percentage your company matches to the percentage you contribute.

Subtract that from the following guidelines:

Starting in your mid 20’s?  10%
Starting in your mid 30’s?  15%
Starting in your mid 40’s?  30% Continue reading “But Budgeting Doesn’t Work For Me!”