Let’s rename “budget” to “spending plan”


Are you able to stick to a family budget? Do you have trouble getting your family on board?

It’s not uncommon: She’s a saver, he’s a spendthrift or vice versa. But no one – even spendthrifts – really doubt the value of saving money for a rainy day. At the same time, no one wants to feel controlled, and no one wants to be the one doing the controlling.Getting family spending on track takes more than just one person. It needs the support and participation of the whole family. So kudos for trying to get everyone on board.One idea: Get away from the term “budget.” The word often feels negative, say some experts. Others who have tried to stick with a budget and failed report they felt like the budget controlled them, rather than the other way around. To maximize your chances of success, try these tips:

  1. Call it a spending plan – and ask your spouse to help you create it. After all, he’s a lot more likely to adhere to a plan he helped develop than to one he feels was imposed upon him.
  2. Build in an occasional splurge. Just control it! Make it part of the plan. A “date night” (movie, a dinner out, etc.) a weekend away – whatever it is. Some people blow it once and give up, thinking it’s hopeless. But if you plan for it, you will still stay on track.
  3. Save for a goal. Some people don’t want to save just to save. But if they know they are saving for something specific and worthwhile, such as a down payment, or to become debt-free and see progress being made, they are more committed to making it happen.
  4. Get the kids involved. For example, tell them you’ll take them to their favorite restaurant, or a beach outing once you reach a certain milestone. Track your progress on the refrigerator door, where the kids can see it. They won’t hesitate to remind you to stay on track!

    *This worked well for me when our house was on the market.  We needed the house in “show condition” every day and anyone who has a teenager will understand the struggle of keeping things neat and tidy.  We offered a beach trip if the house sold quickly which motivated our daughter to help out.

  5. Try online tools, like Budget Tracker. But keep in mind that some people just do better with an old-fashioned paper system! Whatever works for you, do it. Don’t get hung up on a particular tool or system. Focus on your goals, not the gadgets!

Above all, remember that perfection is the enemy of the good. A decent spending plan that your family accepts, and one they can start now and stick with, is much better than a perfect spending plan that no one else in your family will accept.

What has worked for you?  Please share your thoughts in the comments below.

6 Ways to Reduce Your Utility Bills

Electrical MeterMost of us don’t think about the rates utility companies are charging us.  Why not?  Because most of the time we don’t have a choice of suppliers if we want water, electricity, and gas.  The only way we can save money on our utilities is to make some changes around our home.  So, here are some tips on how to reduce your monthly utility bills.

Install an irrigation meter

Most of us don’t realize that we’re charged twice for the water we use.  Once to pump it in into our houses and again when we pump it out as sewage.  If you use a lot of water to irrigate your lawn or garden or fill your swimming pool, then you should consider installing a separate irrigation meter if your water utility allows.  By installing an irrigation meter, you only get charged once for outdoor water usage.  You don’t get hit with a sewage charge for water that doesn’t even make it to the sewer.

Turn it off

Do a nightly sweep and turn off all  your electric devices before going to bed.  In addition to the lights, consider appliances you can unplug.  For example, the Department of Energy states you can save $17.83 per year by turning off your cable box each night.  While that may seem like a small savings, it adds up when combined with turning off or unplugging appliances that don’t have to run overnight.  However, if the item you’re going to turn off requires you to reset it each time, it may not be worth it.

Set your water heater at 120 degrees

Setting your water heater at 120 degrees should be sufficient to let you take hot showers.  However, many are set higher.  The EPA estimates that a heater set at 140 degrees or higher will cost you $36 to $61 more annually than a heater set at 120 degrees.  You’ll waste more than $400 to bring fresh water up to higher temperatures.

Use reusable AC and furnace filters

Sure you have to clean them regularly, but reusable AC and furnace filters will save you money in the long run. Cleaning your air filters regularly will save you money too.  Filters free of dust and dirt allow your HVAC system to work more efficiently cutting your electric costs.  They also prevent costly damage or untimely HVAC unit deaths.

Go crack hunting

Find and seal the cracks in your home.  According to the EPA, the cumulative effect of the small cracks in your home is equal to leaving a window open all year long.  Use expanding foam or caulk to seal cracks around windows and door frames, around the top of the basement wall where it meets wooden frame, known as the rim joist, and around the holes where pipes enter and exit your house.

Paint it white

This tip is a little extreme for homeowners and may not be practical but it could be an option if you have the means (and approval). The Lawrence Berkeley National Library’s Heat Island Group found in a study that buildings with white roofs in sunny climates required up to 40 percent less energy for cooling than buildings with black roofs.  By painting your roof white, you could save more than $100 per year to cool your home at current electric company rates.

Making these changes will help you create a more energy efficient home and save on your utility bills in the years to come.  What tips do you have to share?

Weekly cartoon about signs

this-is-not-a-good-signI’m always interested in feedback about my cartoons.  Feel free to tell me what you think in the comment section.  If you really liked it, please share it with others.

Happy Valentine’s Day!

Hope you can spend some quality time with the one you love.date-from-hell

I’m always interested in feedback about my cartoons.  Feel free to tell me what you think in the comment section.  If you really liked it, please share it with others.

Tips for Saving Money Around the House During Winter

Energy savingAs the temperature continues to drop, here are some great tips on things you can do around your house to save money this season.

Turn your thermostat back

Turning your thermostat back 2 to 3 degrees for about 8 hours a day will help slash your annual heating bill. Some digital systems let you program them, so the heat is turned back while you’re out of the house and back up when you’re there. Some systems can help you save about 12 percent a year. I have a programmable system and it works great.
Some energy companies allow their customers to see the energy they’re using and when, so they can better manage their usage and save.

Use your fireplace less

You might think using your fireplace will save on your heating bills. Unfortunately, that’s not true. Unless a house is very small, a fireplace doesn’t produce enough heat to warm the whole house. Your heating system will still run even if you have a roaring fire. While the ambiance is nice and relaxing, cold air from outside replaces the hot air going up your chimney. In turn, your heating system has to warm that cold air up.

Make sure your fridge and freezer are shut

To ensure you’re not spending more on your energy bill than you should, be sure your fridge and freezer are tightly shut. Stick a dollar in your refrigerator door, so the bill is half in and half out of the refrigerator. If you can easily pull the dollar out, then you may need to adjust the door latch or replace your seal.
To optimize your freezer’s performance, defrost it once the frost builds up to 1/4 inch.

Watch your gaps

According to Energystar.gov, up to 30 percent of the air that goes through your home’s ductwork is lost because of leaks. Check the exposed ducts throughout your house, such as in the attic or basement, and seal any leaks. Caulk between window and door frames and the walls to plug leaks and keep heating from escaping.

To avoid costly repairs to your roof, walls and gutters, clean leaves and debris out of your gutters regularly. Clogged water freezes in and may cause damage.

Take advantage of bargains

For long-term savings, consider buying outdoor furniture offseason. Just like summer fashions, prices on patio furniture are slashed at the end of summer. Find what you like and take advantage of the excellent bargain.

Don’t let the cold air and high heating bills get the best of you. Take steps to follow these tips so you don’t pay in the long run.

Weekly cartoon: Careful ordering flowers.


I’m always interested in feedback about my cartoons.  Feel free to tell me what you think in the comment section.  If you really liked it, please share it with others.

6 Tips To Prepare for Tax Season

Mature Adult man working in the officeTax season is almost here, so it’s time to get ready. Here are six tips to help you prepare and make filing your taxes as easy as possible.

Get organized

It’s important to have everything in one place.  As you receive tax documents, such as your W-2 and 1098 or 1099 forms, place them in a large envelope or file folder. Gather receipts and documents for charitable donations, tax payments and other deductions, and put those in the folder too. When it’s time to complete your tax return, you’ll be ready.  However, not everyone may be as organized as you are and some documents may not be ready on time.

Maximize contributions to your retirement plan

Try to contribute the maximum amount allowable to your employer’s 401(k) or deferred pension plan. Your contributions are tax-deferred and grow tax-free. Not only do you get a tax benefit, but you also might get matching funds from your employer.

Consider making a contribution to a traditional or Roth IRA if your company doesn’t have a retirement plan. You may get a tax deduction for your contribution to a traditional IRA. Both types of IRAs offer tax-deferred gains.

Remember the EITC

If you earned less than $53,505 in 2016, you may be eligible for the earned income tax credit (EITC). The IRS states that one out of every five workers fail to claim the credit. If you don’t know whether you qualify for the EITC, use the EITC Assistant tool.

Make withholding adjustments

Check your year-to-date withholding. Are you expecting a large refund?  If so, think about changing the amount of taxes withheld. If you plan on claiming the earned income tax credit (EITC), this is very important. A new law requires the IRS to hold all refunds on returns claiming EITC until February 15 to prevent tax fraud. If you decide to change your withholding amount, complete Form W-4 and submit it to your employer.

Donate what you no longer need

Do you really need all the clutter around your house? Make a New Year’s resolution to clean out your closets, attic, basement and other storage areas, and donate those items to charitable organizations. A charitable donation deduction is limited to the donated good’s fair market value, and the item must be in good or better condition. You have to file Form 8283, Noncash Charitable Contributions, if the value of noncash donated items is more than $500.

Take advantage of education tax breaks

You may receive tax savings if you, your spouse or dependents had high education expenses in 2016. The American opportunity credit, the lifetime learning credit, and the tuition and fee deduction all offer tax benefits. Various requirements may limit your benefit. Use the Interactive Tax Assistant tool to determine which one is best for your tax situation. You’ll need Form 1098-T, which your school will send to you, to complete IRS Form 8863, Education Credits.

No one enjoys preparing and filing their taxes, even if they expect to get a refund. However, these tips will save you time and money during this year’s upcoming tax season.

Do you smell funny?


This is a different version on the same gag as last week.  Which one is better?  Let me know in the comments below.

Preparing yourself for financial freedom

financial advisor with young family

Creating the financial future you’ve always dreamed of is not as difficult as you’ve been led to believe. It will require some discipline and lifestyle adjustments, but it can be accomplished by those who are committed and willing to make changes. This is where the average U.S. consumer needs to begin getting your financial big picture into shape.

Consolidate Smaller Loans into One Single Loan

This step is the practical first step that is the best one to take if you can swing it. There are three major benefits to this process that make it well worth completing.

  1. It pays off several smaller loans. They are finished and you are free and clear of those obligations.
  2. You’ve whittled down several monthly payments to keep with into one single payment.
  3. You’ve eliminated countless hundreds if not thousands of dollars in interest.

Paying out less money over the life of the loan should be incentive enough. The other two simply make it more convenient to repay your debt and maintain or rebuild your credit rating.

Create a Budget

Now it’s time to explore your income verses your outflow each month and establish a budget you can live with. If you’re married, you’ll need to work with your spouse to establish priorities in spending and identify expenses you can live without. It’s important to have a budget that not only allows you to live within your means, but also to enjoy the occasional splurge while saving money for rainy days and retirement.

Change Your Spending Habits

This is the hardest part for most people. We live in a consumer driven society. Do you really need 10 gigs of data on your mobile phone plan or can you rely on Wi-Fi more frequently? Can you limit your afternoon latte to one day a week? How much money can you save by reducing meals eaten out to once or even twice a month? What monthly expenses can you eliminate completely? Cable, movie rentals, pedicures? These expenses add up if you’re not careful.

Consult with a Financial Planner

Seeking financial advice and guidance from someone trained and qualified to look at your current financial situation and offer practical advice for saving, paying taxes, and building a nest egg for the future can help you get on the same page while getting your financial affairs in order – with an eye on tomorrow. The earlier in life you get your financial affairs in order and start looking at the big picture, the more comfortably you will be able to retire. These tips will help you get started on the right path. All you have to do is commit to following them.

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