Dec 5, 2012

The End of the World?!

Well, December 21, 2012 is looming around the corner. Are you feeling a bit unsettled? Is R.E.M.’s song, “It’s the End of the World as We Know It” constantly running through your head? Or are you blissfully unaware of the countless theories purporting that this day will be the last the earth sees?


Whether you’re sitting back, having a good laugh at all the nut jobs, or feverishly stocking Twinkies in your bomb shelter, it is a very wise idea to be financially prepared for any emergency. Some may be more difficult
to prepare for, e.g., the earth getting sucked into a black hole. However, there are some steps everyone can and should take to be ready for a “less cosmic” emergency.

Some general tips:

  • Have some cold, hard cash on hand. The whole economic structure may not crumble, but all it would take is a massive power outage for your little plastic card to become quite useless. It’s unfortunately not even edible. Experts have differing opinions, but consider having enough cash to cover one month’s expenses, or at least $200-$500. You probably don’t need to be reminded that hard cash can literally burn or be stolen, so keep an appropriate balance that allows you to sleep at night.
  • Have an emergency savings. This is extremely important for even non-apocalyptic living. Having at least some amount put away will help buffer you against job loss,deductibles, major repairs, unexpected taxes, solar flares, ANYTHING that might creep up on you. Experts again differ here, but consider working towards 3 to 6 to 12 months of living expenses. Where should you put it? More differing opinions, but check out savings accounts, money market accounts, certificates of deposit, online savings, etc. The key here is that the money is liquid enough for you to access it when you need it.
  • Write down or video tape all your major belongings. It will be a lot easier to prove to insurance companies that you did indeed own a 42” flat screen if you have video of it.
  • Have enough insurance. Not that it was intended to scare you silly when you were in elementary school, but the Wasatch front is indeed overdue for an earthquake. Don’t lie awake thinking about it, but definitely get earthquake insurance. It may be cheaper than you think. It’s also a good idea to evaluate your other insurances once a year, if not more: health, life, disability, homeowner, auto. Make sure you and family would be protected in the worst case scenario.
  • Have a plan. Make sure your family knows where to go, where the food storage is, where the emergency supplies are, etc.

It’s easy to get a little bogged down in all the emergency preparedness talk. It can also seem overwhelming to get everything you need in place. Just remember that steadily working towards your preparedness goals will put you in a much better position than never having started. And no worries; hopefully/probably we’ll all be sitting back, sipping hot cocoa on December 22nd.

Oct 9, 2012

Holy Energy Usage, Batman!

Did you open your utility bill last month and exclaim, “Holy energy usage, Batman! Either the dog has been refrigerating the whole house while I’m at work, or there must be some mistake…” If this is the case, you are not alone. Citizens across Logan have seen their utilities inexplicably skyrocket the past few months (check out this Herald Journal article to learn why).


Your wallet has probably already been gouged this summer. One can only anticipate that the onslaught of another painfully frigid winter will further sap your cash. So, why not make a preemptive strike and start trimming down that meter usage now? The Family Life Center presents just a few ways to cut down your utilities (for any season) and keep that cash in your pocket:

  • Use the dishwasher. Washing and rinsing dishes by hand three times a day uses more hot water and energy than washing one load a day in an automatic dishwasher. Run your dishwater only when it is filled to capacity.
  • Use task lighting when working at a desk or workbench and turn surrounding lights off. It makes for a better ambience anyway.
  • Consider using small appliances for cooking rather than heating the oven. A toaster oven may just change your life. Can you say, “Reheated pizza miracle??”
  • Don’t open the oven to preview food. The temperature drops 25-50 degrees every time you take a peek.
  • Use fans wisely. In just one hour, a hardworking bathroom or kitchen fan can expel a house full of warm air. Turn fans off as soon as they’ve done the job.
  • Turn the water heater down. A water heater should be kept around 120 F.
  • Use energy-efficient fluorescent lights inside and out. It may not be rock star lighting, but they use about one-third the power.
  • Sign up for budget billing for your natural gas and electric bills. This allows you to pay the same amount each month throughout the year. 

While forking out the dough for your utility bills can be thrilling, there may be EVEN MORE fun things to do with your money. Why not try some of these out and see just how much you can hold on to!

Sep 5, 2012

Special Thanks!


For those of you that don't know, the Family Life Center relies on grant funding to keep it's doors open.  We'd like to say a special thank you to American Express for its generous grant!  We love offering financial and housing resources to the residents of Cache Valley through our monthly workshops and one-on-one counseling sessions.  With the help of this grant, the FLC can continue to provide these valuable resources services to the community.

Jul 5, 2012

Fred & Certificates of Deposit

Fred, the intrepid saver that he is, managed to accumulate a whopping $3,000 last year. He’s been saving for a fully-loaded Chrysler LeBaron that is sure to increase his manliness by at least 200 percent. Fred estimates that he’ll reach his goal in about two more years.


A lot of people have been telling Fred where he should put his saved money in the meantime. His dad doesn’t trust banks and suggested that he cash out and keep the money under his mattress. A friend told him that if he really wanted to make his money grow at a quick pace, he should invest it in the stock market. Confused, Fred sought counseling at the Family Life Center, where a counselor educated him about several options, one of which was a certficate of deposit, or CD.

A CD is a relatively low-risk “investment” (if you could even call it that), typically made through a bank or credit union, that will offer higher interest rates than regular savings and checking accounts. If Fred were to purchase a CD, he would commit a fixed sum of money for a fixed period of time (six months, one year, five years, etc.). In exchange for coming this money, Fred would be compensated with higher interest paid to him by the bank. At the end of Fred’s two-year wait, he would withdraw his original amount ($3,000), plus  accrued interest (perhaps $60-90, depending on the interest rate he locked in). There are several different
types of CDs these days, meaning Fred won’t necessarily have to lock in an interest rate for the duration, or suffer big penalties for early withdrawal.

Fred weighs his options. His dad makes an interesing point. If the money is under his mattress, he could avoid any shenanigans from the banking system. But Fred is severely accident prone, and the chances of him burning down his home/his cash in a grease fire is fairly likely. He also lives in a bad neighborhood with a decent chance of a break-in and subsequent cash thievery. And to further deter this option, Fred also knows that if he were to cash his money out, inflation would eat away at it over the years. In some ways, Fred sees cashing out as more risky than investing.

His friend also makes an alluring argument. If he put his money in stocks, he would certainly have the potential to earn a higher return. But Fred suffers from insomnia, and he knows that he just couldn’t make peace with the universe if his investment lost half its value overnight. Since Fred needs the money in two years, he decides the stock market is just too risky for this kind of goal.

So, the take-home for Fred is that he wants to earn at least some return on his money, but he doesn’t want to take on too much risk to get it. He decides that a CD is a happy medium ground for this situation. He learned that as long as he invested in a CD issued by an FDIC-insured bank, his money is safe (up to $250,000, that is). And because Fred is just so stinking smart, he researched penalties for early withdrawal (in case he had an emergency), and found out that in most cases, the penalty was only 3 months worth of interest.

So Fred feels great about his decision to put his money in a CD, but when he checks what the going rates are today on a 24 month CD, Fred gets real sad. He sees it’s only at .5%. In fact, an 80 month CD is only offering 1.85%. (The longer the term, the higher the interest rate, he remembers). But before Fred gets really down in the dumps, he remembers that his counselor at the Family Life Center had told him just about all savings/investment rates are abysmally low right now. But everyone seems pretty hopeful they’ll come back up eventually. In the mean time, Fred has several other options for his LeBaron fund, all of which depend on several factors, including the going interest rates. Stay tuned for the next newsletter to find out!

May 1, 2012

America Saves: Credit History and Saving


April was Financial Literacy month and America Saves wants to make sure you understand the importance of your credit history and how this ties into successful saving. It is important for all Americans to have savings. Having a savings account allows you to pay for emergencies, gives you financial freedom, and can help you avoid credit problems that could hurt credit scores.

Having a strong credit history, reflected in good credit scores, allows you to qualify for lower interest rates and fees. This helps you to free up additional money to set aside for emergencies, retirement, and other smaller unexpected expenses.

The connection between successful savings and good credit plays an important role in your financial life. Not only is it essential for obvious things like qualifying for a loan or getting a credit card, but also for less obvious things like getting cellular telephone service, renting a car, and perhaps even getting a job.

Want to learn more about the importance of credit history and successful savings? 


Download the Importance of Credit History and Successful Savings packet (http://americasaves.org/images/newsletters/creditscore.pdf) which includes information on: 
  • What is a Credit Report and Score?
  • Why is Saving So Important?
  • How do I Start Saving?
  • What Savings Options Are Available to Me?
  • Why is Good Credit Management so Important? 
  • 5 Tips for Building Good Credit.
  • Frequently Asked Credit Questions.
  • FDIC Model Safe Accounts.

What are you waiting for?

Set a Goal.

Pay down debt, save automatically, and assess and improve your credit history. Go to www.annualcreditreport.com

Make a Plan.

Improve your credit history by making the minimum payment on all bills, keeping balances low on sources of credit, and applying for credit wisely.

Save Automatically.

In order to have good credit scores you must demonstrate a habit of good credit management over a long period of time. Set up direct deposit or put part of your check into a savings account automatically each month to pay down debt and ensure you have enough money for emergencies.

Are you ready to take charge of your financial future?

America Saves is here to help. America Saves can help you develop your goals and take action. When you join as a saver, you’ll receive the following benefits:
  • Free subscription to the quarterly American Saver newsletter
  • Free monthly e-mail newsletters with savings advice from national experts
  • Free access to the members-only Savers Tracking Tool to help you reach your goals

{This month’s post was brought to you by guest author Katie Bryan, America Saves Communications Manager}

Mar 8, 2012

Extinguish that fire, and save!


Let’s say you need to wash the dog, call your dad back, do your taxes, and take care of the fire that’s rapidly consuming your kitchen. It’s time to make a priority list! Let’s say you performed these tasks in the order they’re listed. By the time you tackle your taxes, there won’t be a house left to get those mortgage deductions.

The takeaway: prioritizing matters!

In this case, dousing the flames first is a no brainer. And here’s another no brainer: make savings a top priority! Now, of course there’s a caveat: if food and shelter are an issue, or emergencies pop up, your priorities will change. But in everyday life, as you’re crafting that superstupendous budget of yours, treat savings as if it were one of your most important bills. In a lot of ways, it is. Don’t go with the mindset, “Well, I’ll pay these important bills, get some needs, get some wants, and then if anything is left over, I’ll put it in savings.” That way of thinking isn’t going to get you an early retirement. You need to pay yourself first to get ahead!

You know your situation best, so make a plan, and write down some goals. Say you’d like to put $100 away per month. Instead of hoping it’s there on the 31st, put that money directly into your savings right along with your mortgage, utilities, and groceries. Make it a priority, and it’s far more likely to happen. All your other expenses tend to find a way to fit.

Say you’re loving this plan, you’re getting excited and want to save, but maybe you don’t trust yourself to actually part with your funds each month. One of the most effective ways to save is to have it taken out automatically. Just call up your bank or credit union, and ask to have whatever amount you’d like moved from account to account. So let’s say Steve is bringing in $2000 per month, and wants $200 automatically moved from checking to savings. Since Steve has quite the imagination, he decides to play a little game with himself. He pretends that he’s only making $1,800 per month. So sad. He got a pay cut at work for telling his boss how he really feels about TPS reports. He’ll have to tighten his belt and make a few adjustments. A year later, Steve takes a peak at his savings account, and BAM! He’s got $2,400 big ones sittin’ in his account! (Not to mention any interest he may have earned.)

Steve knows that to get ahead, he needs to pay himself first. He’s also the kind of guy who puts out the kitchen fire before washing the dog. Like Steve, once you get in the habit, it’s really not too difficult to save. Start small and work your way up. Even $10 per month is INCREDIBLY better than no dollars per month. Keep in mind that the habit is far more important than the amount!

Feb 11, 2012

10 Financial Principles To Live By

Money worries rank among the highest causes of marital stress and divorce. Few couples recognize that their spending habits might have more to do with their emotions, their upbringing, and their communication skills than with their net income.

Dr. Bernard Poduska, author of Till Debt Do Us Part: Balancing Finances, Feelings, and Family, offers 10 principles that can help couples deal with their finances. With Valentine's Day just around the corner, take the time to rekindle your relationship. These life-changing principles may help you develop good patterns for a healthy financial future together.

Principle 1: Financial problems are usually behavior problems rather than money problems.

Principle 2: If you continue doing what you have been doing, you will continue getting what you have been getting.

Principle 3: Nothing is worth risking the relationship.

Principle 4: Money spent on things you value usually leads to a feeling of satisfaction and accomplishment. Money spent on things you do not value usually leads to a feeling of frustration and futility.

Principle 5: We know the price of everything and the value of nothing.

Principle 6: You can never get enough of what you don’t need, because what you don’t need can never satisfy you.

Principle 7: Financial freedom is more often the result of decreased spending than increased income.

Principle 8: Be grateful for what you have.

Principle 9: The best things in life are free.

Principle 10: The value of individuals should never be equated with their net worth.

Jan 9, 2012

Get Movin' On Financial Upkeep

Well, it’s now 2012, and you’ve likely got a few resolutions. While losing weight and eating healthier are important, let’s not forget the financial side of things…You know, the things that ultimately keep all that money that you love so much in your pocket. Now is the perfect time to get some financial upkeep checked off your  list. Here are just a few ideas to get you movin’:
  • Evaluate your budget. First off, you have one, right? (If not, what better time to start than now!) Is  your current budget working for you? Have you consistently overspent in a particular category? Have your income or expenses changed? Netflix increased their prices, in case you haven’t heard or aren’t extremely mad about it—have you factored those kinds of increases into your 2012 budget?
  • Clear out the filing cabinet. Just make sure you hold on to important tax documents, receipts you’ll need, etc. Clear up some space for your 2012 documents. 
  • Side note: assuming you get a tax return, what are you planning to do with it? The Play Station 3 is ever so tempting, but why not beef up your emergency savings, or get the jump on some debt?
  • Check out your 401(k) and other investments. It’s good to check in at least once a year. You know, make sure no one has stolen your money and that your asset allocation is where you want it. You’re a year older now—are your investments too aggressive?
  • Run through your will to see if any situations have changed. You have a will, right? (If not, check out some of the free will making websites for less complicated situations). 
  • Make a plan to pay off debt! Check out powerpay.org, schedule a session with us, sit down with your spouse to plan it out—do whatever will work for you to get moving on reducing your liabilities. Even $20 extra per month toward your debt could potentially save you hundreds in interest. Now is the time to tackle it! 
  • Pull your credit history. Go to annualcreditreport.com and order your report for free. Remember, you get one free pull per year from each of the three bureaus, so that’s 3 histories per year. This free history does not give you your FICO score, but it’s more important that you scan through your history and make sure everything is accurate. You’d hate to get hit with higher interest rates because of a mistake. 
So there are the bare bones. Take these one at a time, and when combined with your other resolutions, you’ll soon be on your way to a skinny body and a fat wallet.

As always, the Family Life Center is here to educate and help you attain your financial goals.