Set SMART Money Goals!

Are you looking to purchase a new item? Instead of using credit to buy items you want, set a S-M-A-R-T savings goal.
 

• S = Specific. Make your savings goal specific. (For instance - rather than "I want to buy a TV", describe the type of TV you are looking to purchase...like 42-inch flat-screen plasma TV)
• M = Measurable. Creating a specific savings goal helps you comparison shop and find out exactly how much you need to save.
• A - Achievable. Ask yourself if your goal is achievable.  Look at how much money you need to save and divide it by the length of time (or months) you plan to save.  Is the amount achievable and within your budget?
• R = Realistic.  Is your savings goal realistic based on the time frame and your budget?
• T = Time. What is the date you want to make that purchase, or go on that trip? This helps you set a date to start saving and estimate how long it will take you to save.

If you answer “yes,” you have a plan! Start saving today! Set up a direct deposit to your savings account for that amount each month.

If “no,” change the total amount or time until you find a monthly amount that is more Achievable and Realistic.

Need a jumpstart on writing down your savings goal?  Download the SMART Saving Sheet!

New Credit Card Rules

The 2009 Credit CARD Act provides changes that may benefit the consumer.  Some of the new rules include:

Notification of Rate Increases

When a credit card company plans to increase your rate or other fees, they must send you a notice 45 days before they can:

• increase your interest rate
• change certain fees (such as annual fees, cash advance fees, and late fees) that apply to your account
• make other significant changes to the terms of your card
• Due dates must be the same day each month
• Creditors are prohibited from using double cycle billing.

Full Balance Information

How long will it take to pay off your balance?

Your new monthly credit card bill will now include information on how long it will take you to pay off your balance if you only make minimum payments. It will also tell you how much you would need to pay each month in order to pay off your balance in three years.

Changes to Fees Charges

Credit card companies can’t charge an “over the credit limit” fee unless the consumer has elected to permit the creditor to allow transactions over the limit.

The complete list of these changes is available at the Federal Reserve Website
 

The Miracle of Compounding

Retirement – is it a long time off? That’s a good thing! Time is a good friend when saving for retirement because of the miracle of compounding.

Start as early as possible with just 1% of your income. As your pay goes up, you automatically save more. Set a goal of increasing your percent each year over the next 10 years. At that point you will be at the recommended 10% savings rate. And it will have been pretty painless, too.

And make this mental shift - call your retirement savings account your "wealth" account. That simple change emphasizes future financial security rather than the small sacrifices you are making in the present.

For more information about planning for retirement, plan to attend the "How Can I Afford Retirement?" at the Main Library. They just completed a series and plan to repeat it in April or May, so watch for the new dates on their website.

Tip provided by: Anita McKinney, Duval County Extension Educator - a service of the University of Florida IFAS Extension and the City of Jacksonville.

For more info on saving, visit www.americasaves.org and make a personal commitment to be a Jax Saver!

Pay Down Your Debt

New credit card legislation now requires creditors to indicate on your monthly statement how long it will take to pay the debt if you make minimum payments. That bit of info might be a real eye-opener. How can you get out of debt faster? Pay MORE than the minimum! You may be able to delete your debt by the end of the year or, at the very least, make a significant dent.

If you have multiple accounts, focus your extra payments on one creditor at a time. Many people like to start with the debt with the lowest balance because when it is paid off, it gives you a psychological boost. However, you will save the most money by starting with the debt with the highest interest rate. If you cannot pay extra on a regular basis, try to do it when you receive periodic income, such as a tax refund or bonus.

To get more detailed help on paying down debt based on your personal situation, visit the Power Pay website. This site is a product of the Utah State Extension Service, so log on, create your personal profile...best of all, it's FREE!

Tip provided by Anita McKinney, Duval County Extension Educator - a service of the University of Florida IFAS Extension and the City of Jacksonville.

Saving

Do you find saving extra cash is hard to do? Here are some small, simple tips that may help you become more successful.

• When you get a raise or bonus, ask your payroll department or your bank/credit union to automatically deposit 10% of it into a savings account.
• When you pay off a loan, keep making that monthly payment – but to your own savings account instead.
• Take a thermos of coffee or a can of pop from home each day for a year and deposit the amount you saved by changing the vending machine habit. That's an easy $160 saved a year.
• Save your coins at the end of the day. It’s amazing how those nickels, dimes and quarters add up.

The U.S. Treasury estimates that the average household accumulates $50 of change every month. That's $600 a year. Invest that over 20 years at 5% and you would have $20,000.

Tip provided by Anita McKinney, Duval County Extension Educator - a service of the University of Florida IFAS Extension and the City of Jacksonville