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A National 501(c)(3) Non-Profit Organization
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CACC Moneywise Monthly
Budgeting & Savings News You Can Bank On
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September 2013
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Celebrate National Coupon Month...all year long
By Kendall Perez
Regular users of coupons likely won't find anything remarkable about September's designation as National Coupon Month. Despite distribution of coupons being down slightly from 2010, the extreme-couponing wave seems to have solidified their status with shoppers everywhere. Coupons still represent one of the easiest ways to save money, but you can make things even easier when you follow these seven hassle-free ways to use them.
1. Use your phone. I turned my coupon-averse mom into a discount diva this way. Mobile coupon usage is on the rise, with close to 40-percent of people using their devices to redeem a coupon. Download a coupon app and try searching for discounts while you're in-store.
2. Have them delivered to you. Some people poo-poo retailer newsletters, but I find them useful in scoring savings. I created a separate email account to give to cashiers and to use during newsletter sign ups. When I'm ready to shop, I log into that email account and look for exclusive offers and current promotions.
3. Flip over your receipts and ticket stubs. Coupons can be found just about anywhere these days, including on the back of receipts and ticket stubs. I usually take a gander at my receipt as I'm walking out of the store in case there's a discount I can use. Same goes with concert and sports ticket stubs.
4. Search as-needed. The simplest way to save is to search for discounts when you need them. The Internet makes this task pretty easy, especially when you're shopping online. You can find online coupons by typing in the merchant name plus "coupon code" in any search engine.
5. Read more. Some of the best coupons I've used are pulled from the pages of my favorite magazines. For example, I redeemed a coupon at New York & Co. from Glamour magazine, where I scored $50 work pants for just $10. I also found a $10 off coupon to Sports Authority in my Yoga Journal magazine.
6. Just ask. A friend of mine asked the cashier at a high-end department store if they had any available discounts, and she was rewarded with 20-percent off her purchase. How easy is that? I've also been offered a similar discount at checkout in exchange for filling out a short survey. Don't mind if I do!
7. Earn rewards. Apps can give you rewards for walking into stores, points that can lead to discounts and free items. Additionally, my credit card offers cash back from rotating retailers and restaurants, resulting in a pleasant surprise on my credit card statement. I'm saving money without even trying!
Kendal Perez is a frugal fashionista and bargain shopper who helps fellow shopaholics find hassle-free ways to save money
TAKE ACTION:
If you currently use coupons, challenge yourself to save another $10 per week. If you don't use coupons, challenge yourself to start using just a few each week to get yourself started. Setting small, achievable goals for yourself is a key to improving your financial performance.
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Don't let Money issues keep you up at night
Savings expert and bestselling author Pamela Yellen says the answer is to ask yourself: "How much does your financial security depend on things you can't predict or control?" For many of us, the answer is a lot, which is why so many people lose sleep over money matters. This is especially true since so many people lost so much of their retirement savings, and their sense of security, during the economic crash.
Here are three tips from Pamela to get rid of financial stress so you can sleep at night:
Step 1: Build a Sizeable Liquid Rainy Day Fund
Life happens, and we should all expect the unexpected. Without safe and liquid cash reserves, how will you cope with: A medical emergency? Disability? A broken major appliance or leaky roof? Loss of a job? A family member needing assistance? Without a sizeable liquid rainy day fund, you may be forced into selling or liquidating your nest egg assets prematurely-the investments you planned on keeping over the long haul. When this happens, the timing is often terrible. You're at the mercy of current market conditions and forced to sell at the worst possible time. Unfortunately that's how the majority of people live. Their fortunes depend on Wall Street, the Dow Jones, or the next paycheck coming in. But when you have a foundation of safe and liquid cash reserves, life is a lot less stressful.
Step 2: Convene a Family Financial Discussion Night
Can we agree that families in past generations had a little more time around the family dinner table to discuss what was going on in their individual and collective lives? But that was then, and this is now. In order to have good discussions with one another, we have to schedule them. "One thing I recommend is to hold a monthly Family Financial Discussion Night during which you focus together on the things like a family budget," explains Yellen. "Much like diets, budgets are no fun. But a strategic spending plan can be, and even children as young as four or five can get involved." Your children will not only learn good financial skills through this process but they'll take pride in being part of it.
Step 3: Ask, Do You Need It or Just Want It?
Today Madison Avenue has got us surrounded! And Madison Avenue is fully aware that spending is triggered by emotion. They've hypnotized many of us to react to our emotions and go on automatic pilot when it comes to spending. Before each purchase, get yourself off emotional auto pilot. Take a deep breath (and a couple of days) to consider whether you really need whatever it is.
** Do you need help creating your family budget? Talk to a CACC Credit Counselor toll-free 1-800-763-1874 or visit www.caccdebt.org.
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How to pay for Senior Care with limited resources
Expert Offers Tips for Troubleshooting Health-Care Woes
We don't often think of living a long life as a problem, especially for those we love. But what happens when Mom, Dad, a spouse or another beloved family member are in need of regular health care yet are apparently short on finances?
Actually, paying for care may be well within your loved one's means, says insurance expert Chris Orestis.
"It's a secret the life insurance industry has managed to hide for decades: Your policy can be used to pay for long-term health care such as home care, assisted-living or nursing home expenses," says Orestis, a former insurance industry lobbyist.
"Many people who need long-term care can't afford it, so they drop the policies they've been paying on for years in order to qualify for Medicaid. The life insurance companies profit from the fact that they get all those years of premiums and never have to pay out a death benefit."
Orestis, who's been lobbying state Legislatures - including Texas - to make the public aware of their legal right to use this option, says seniors can instead sell their policy for between 30 and 60 percent of its death benefit value. The money can be put into an irrevocable fund designated specifically for their care.
He offers more tips for paying for a senior's health care:
* Don't go straight to Medicaid. If your first thought is skipping right to Medicaid, the government's health-care safety net for the very poor, then you may be heading for a trap. Once you have Medicaid paying the bills, you and your loved ones have little say in how you're cared for and by whom. This policy conversion option allows you to live in a place where you're happy and comfortable and it saves taxpayers millions of dollars every year. Also, with 30 percent of the Medicaid population consuming 87 percent of Medicaid dollars spent on long-term care services, more individuals will be forced to find their own resources to pay for those needs.
* Consider what you've already paid for; The practice of converting a life insurance policy into a Life Care Benefit has been an accepted method of payment for private duty in-homecare, assisted living, skilled nursing, memory care and hospice care for years. Instead of abandoning a life policy because your loved one can no longer afford the premiums, policy owners have the option to take the present-day value of the policy while they are still alive and convert it into a Life Care Benefit - Long Term Care Benefit Plan. By converting the policy, a senior will remain in private pay longer and be able to choose the form of care that they want but will be Medicaid-eligible when the benefit is spent down.
* Think again before tapping other assets. It costs more than $80,000 a year on average to pay for a loved one's stay at a nursing home, according to the National Consumer Voice for Quality Long Term Care. And, $178 billion is spent out-of-pocket by individuals and families, accounting for 22 percent of the money spent on nursing homes, according to the Kaiser Family Foundation. This can lead down a costly path of tapping other forms of wealth, or even seeking loans. Before doing this, consider utilizing a life insurance policy first. Conversions include provisions for funerals, and whatever money is not spent on care goes automatically to policy beneficiaries.
Chris Orestis, is a nationally known senior health-care advocate and expert
**Never make a change to any insurance plan without first consulting with a licensed and knowledgeable professional experienced to do business in your State!
If you have the desire and the ability to make extra payments towards your DMP, contact CACC Customer Service to coordinate making the extra payment. Since your DMP is set up to pay a certain amount each month changes must be handled properly to make sure you do not get removed from the Creditors DMP.
CACC Customer Service: 1-800-763-1874
Do you know someone who would benefit from money management strategies and information?
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Getting the most out of your Social Security benefits
Financial Expert Offers Tips
Too many people end up getting less than what's due them from Social Security when they retire because they don't know the rules and the real financial impacts, says independent retirement advisor Gary Marriage, Jr.
"There's a lot of talk about the future of Social Security, but we still have this benefit and if you're 50 or older, you should be planning to make the best use of it," Marriage says.
Marriage, CEO of Nature Coast Financial Advisors (www.naturecoastfinancial.com), which specializes in maximizing retirees' finances, shares important facts to keep in mind as you plan for how Social Security will factor in your retirement:
* "Can I convince you to wait a few more years?" Many people are understandably eager to retire as early as possible; others fear Social Security retirement benefits will suddenly vanish, so they want to get what they can as quickly as possible - at age 62. But if you're counting on those benefits as part of your income, you should wait until you're eligible for the full amount. That's age 66 if you were born 1943-54, and age 67 if you were born in 1960 and later. If you're in the older group, retiring at 62 cuts your benefits by a quarter; for the younger group it's nearly a third. "Chances are, you'll be better of mentally and physically if you wait anyway," Marriage says. "Many studies show that people live longer and are more vital the longer they remain employed; more importantly."
* The reductions in Social Security add up to a considerable sum. The average retirement benefit in June of this year was 1,222.43, according to the Social Security Administration. People born in the 1943-54 group who are eligible for that amount at age 66 will get just $916.82 a month if they retire at 62. If they live to age 90, that's a total of $308,052.36. By waiting just four years, they'll net an additional $44,007.48. Waiting until age 70 can make you eligible for a bump in benefits - up to 8 percent a year - but there are no increases if you delay longer.
* If divorced, were you married for at least 10 years? Were you married for a decade and aren't currently remarried? You may be eligible to received benefits based on the former spouse's work record. Here are some of the other requisites: you must be age 62 or older, and the former spouse must be entitled to receive his or her own benefits. If the former spouse is eligible for a benefit, but has not yet applied for it, the divorced spouse can still receive a benefit. Additionally, two years must pass after the divorce.
Thank you for choosing Consumer Advocates Credit Counselors. We welcome your comments and suggestions for future issues. Please email education@caccdebt.org with your ideas.
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8 Tips for Halloween Savings Online
By Scott Fitterman of CouponCactus.com
1. Maximize value with online coupons: When purchasing Halloween costumes, decorations, and candy online always search for coupon codes to save money. Make sure to review your final checkout screen before you make your purchase. Be sure to confirm the items in your checkout are correct and that your promotional codes have been applied.
2. Stay Current. Make sure your results are the most up-to-date discounts and codes online. Take note of any expiration dates for discounts and use discount websites to help you locate the newest deals for a particular merchant.
3. Take advantage of Cash back: Some websites earn commissions from sales made through the site and can share their commissions with you in the form of cash back. It's just like a cash back credit card. You can earn cash back from thousands of online merchants. If you're not shopping through a cash back site, you're throwing money away.
4. Exercise caution when combining coupons with cash back: You can use online coupons and combine the savings with cash back features for extra value, but exercise caution. Some coupon codes disqualify the order for cash back benefits, so read the cash back site's coupon details very carefully.
5. Make sure you're really getting a deal on all your Halloween essentials: Most of the time stores offer actual discounts, but as with all things you should do your due diligence and check online to determine how good the price really is.
6. Compare Sites. If you know the exact Halloween Costume you want to buy for October, it pays to shop around at different online retailers to compare prices. Some sites help consumers by providing a list of all online stores in a particular category.
7. Pay attention to shipping costs. Some retailers make up their low prices by adding costs to the shipping. Be sure you're getting the lowest possible overall price, by double checking your shipping.
8. Exclusivity Pays. Research before you buy to find coupon or cash back websites that offer consumers exclusive online deals for Halloween. If you don't search before your buy, you may miss it.
Have a money saving idea that you'd like to share?
Send it to us for possible publication in this newsletter!
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5 warning signs you are living beyond your means
By Steven B. Smith
"A budget tells us what we can't afford, but it doesn't keep us from buying it." - William Feather
Impulse buying is alive and well in America. Statistic from the USA TODAY/CNN/Gallup Poll states that spending too much and saving too little is the most common issue that causes strife among married couples.
How about these stats from Mediascope, Inc. on impulse buying:
- Younger consumers with higher incomes have a greater percentage of impulse purchases.
- 90% of people make occasional impulsive purchases.
- Statistics state that 20% of what shoppers buy at the grocery store is bought on impulse.
Living beyond our means has become the norm. Financing our lifestyles with easily available credit is almost expected, and anyone who is living on "cash only" basis is rare species about to go extinct. We buy more homes than we can afford, we drive cars that drain our monthly budgets and we eat our savings away.
If you suspect that you may be living beyond your means, here is a quick checklist of five common warning signs combined with practical tips on overcoming those challenges.
1. You constantly wish for "just a little bit more."
Do you find yourself constantly wishing for more? Is it hard for you to watch others upgrade to nicer cars, bigger homes, better furniture or even pricier, more prestigious private schools for children? If you're quietly saying yes, then your discontentment may be driving you to impulse financial decision-making. Reflect on your spending habits and evaluate whether many of your purchases are done out of true need or out of a need to fill in an internal void or measure up to social pressures. Decide today that you will no longer live to impress others by spending money you don't have on the things you don't really need.
2. You can't lose your income for a 3-6 month stretch.
If today you, or you and your spouse, lost your income, would you be able to survive for the next 6 months only on what you have set aside in your savings? If the answer is a definite NO, you may be overspending on today's wants while sacrificing tomorrow's needs. If that's the case, take a hard look at your current spending. Do you have a spending plan or a budget? Make one. Are you fully aware of how every dollar you earn is spent? Get to the bottom of this and make sure that you assign every penny to a specific budget category. Track your spending for the next 30 days to reveal all potential "waste" areas.
Your goal should be to eventually have 6 months of your living expenses set aside and available in case you experience a complete income loss.
3. You use and abuse credit on regular basis.
Credit has become so accessible that any college student who does not have a steady income is bombarded with offers of easy money. Do you have a revolving balance on your credit cards? Are you using one credit card to pay off another one? Is your monthly credit card balance growing instead of declining? If the answer is yes, then you are most likely financing a "beyond your means" lifestyle.
Take the next few days, look over your credit card purchases and see exactly what you are buying. Is it expensive clothing? Maybe it is time to move to a cheaper clothing line or to live out this famous great depression motto: Use it Up, Wear it Out, Make it Do, or Do Without. Have you fallen for the buy now and don't make any payments until who knows when offers? Now that the payment time has come, are you struggling?
Whatever "it" is that you are using credit for, first make a decision to use credit wisely. Create a realistic debt repayment plan in order to pay off your balances off as quickly as possible.
4. You aren't saving at least 10% of your gross pay.
Saving is truly the foundation of healthy finances, yet so few of us actually save. One of the most common excuse for not saving is "I have too much debt." What people don't realize is that, unless saving is prioritized, debt will always be an issue. Our goal should be to set aside at least 10% of gross annual income. Portions of it may go into a retirement fund while the rest into a regular savings account.
While setting saving goals, focus on both short-term as well as your long-term goals. Short-term should include having an emergency fund, 6 months of living expenses, a vacation fund, a Christmas fund, etc. Your long-term goals should focus on retirement, car replacement fund, and college funds for your children, etc.
5. You spend more than 25-30% of your gross pay on your mortgage.
Buying more home than you can afford has been a common phenomenon in the last decade. Long gone are the days when 20% down payment was the minimum in order to purchase a home. No down payment and borrowing more than can be afforded, combined with a stagnant job market, has plunged too many families into foreclosures and short sales. Are you counting on two incomes in order to make your mortgage payment? Are you spending more than 35% of your gross income just to pay your monthly note? Would you be in deep trouble if you experienced a reduction in income? (going from two to one incomes due to job loss, having hours cut, having pay reduced, etc.) If the answer is yes, you may be paying for more home than you can afford. Here are two rules of thumb to follow in regards to mortgage payments:
- Stay within 25-30% of your gross income
- Are you a two-income family? Buy as if you had just one income. This way you are creating margin in case of a job loss
Living beyond your means can be overcome. It isn't an issue of not earning enough, but an issue of reconciling your spending habits with your income. Understanding your spending and correcting waste will lead you to financial freedom!
To order your free credit reports, visit annualcreditreport.com or call 1-877-322-8228. |
Countdown to Healthcare Reform
How to use the Health Care Marketplaces
It is just days until the start of Open Enrollment for all Americans on the brand new State Health Care Marketplaces or Exchanges.
You can apply for health coverage, compare all your options, and enroll in a plan in one streamlined application through the Health Insurance Marketplace for your state. When open enrollment begins October 1, 2013, you can, by yourself or, with the help of a licensed Insurance Agent, fill out your application and see the health coverage options available to you.
Here are the steps outlined on the Federal Government's Healthcare.gov website.
1. Create an account
First provide some basic information. Then choose a user name, password, and security questions for added protection.
2. Apply for Marketplace coverage
Enter information about you and your family, including your income, household size, and more. Use this checklist now to help you gather the information you'll need.
3. Pick a plan
Next you'll see all the health insurance plans and programs you're eligible for and compare them side-by-side. You'll also find out if you can get lower costs on Marketplace coverage.
4. Enroll
Choose a health insurance plan that meets your needs and enroll! Coverage starts as soon as January 1, 2014.
If you need help with your Marketplace application, there are people trained and certified to help you understand your health coverage options and enroll in a plan in every state. And remember that you can contact Healthcare.gov by phone or live web chat for help with a Marketplace question. Visit the Web site for details.
Learn more about the Affordable Care Act requirements and your State's Health Insurance Marketplace at:
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Your friends and neighbors are suffering with money problems!
They need your Help! CACC is a non-profit, IRS approved 501(c)3 educational and counseling organization. Our expenses and operations are supported through generous contributions from corporations and individuals like you. Will you please consider providing some financial support so that we can continue our mission? The donation you make today will help fund debt relief programs, education and client services while providing help and hope to thousands. Won't you help us give the gift of Debt Relief?
YES, I'd like to help fund CACC's Debt Relief and Education efforts with a contribution of:
( ) $25 ( ) $50 ( ) Other $___________.
Please Mail your Donation to:
CACC Education Development
23123 U.S. 441, Suite 107
Boca Raton, FL 33428
Thank you for your generosity! ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Support CACC while you save up to 85% on your favorite Magazines! Now that's a Win-Win!
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Free Workshops and Seminars 
As a non-profit Credit Counseling and Financial Education organization, CACC is dedicated to reaching out to the community. CACC provides financial education seminars and workshops at community centers, local organizations, and companies.
Popular Topics Include:
- Managing Money in Tough Times
- Creating and Using a Spending Plan
- Managing Debt
- Fighting Identity Theft and Financial Fraud
- Understanding Your Credit Report and Boosting Your Credit Score
- Creative Ways to Teach Kids About Money
- How to Get Out of Debt
Ask about customized seminars for your group, staff, congregation, organization, or club!
Call 1-800-763-1874 or e-Mail: education@caccdebt.org
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Consumer Advocates Credit Counselors, Inc. is a 501 (c)3 non-profit credit counseling organization providing credit counseling, financial education, and debt management services. Please visit our website at: www.caccdebt.org
Additional consumer resources:
Free Birthday Gifts
Stay Safe On-Line
US General Services Administration Federal Citizen Information Center
National Drug Abuse Hotline 1-800-622-HELP
National Domestic Violence Hotline 1-800-799-SAFE
Suicide & Depression Hotline 1-800-999-9999
National Council on Problem Gambling 1-800-522-4700
Fair Debt Collection Practices Act
Homeowners Hope Hotline for Mortgage Counseling and Assistance 1-888-995-4673
Benefits.gov
Learn about a variety of Government Benefits, how to qualify and how to apply.
Supplemental Nutrition Assistance Program (SNAP)
SNAP is the new name for the federal Food Stamp Program.
Temporary Assistance for Needy Families (TANF)
TANF is designed to help needy families achieve self-sufficiency. States receive a block grant to design and operate their programs to accomplish the purposes of TANF. These are:
-assist needy families so that children can be cared for in their own homes
-reduce dependency of needy parents by promoting job preparation, work and marriage
-preventing out-of-wedlock pregnancies
-encouraging the formation and maintenance of two-parent families.
Medicaid
Medicaid is health insurance that helps many people who can't afford medical care pay for some or all of their medical bills.
Good health is important to everyone. If you can't afford to pay for medical care right now, Medicaid can make it possible for you to get the care that you need so that you can get healthy and stay healthy.
Supplemental Security Income (SSI)
is a Federal income supplement program designed to help aged, blind, and disabled people, who have little or no income.
It provides cash to meet basic needs for food, clothing, and shelter.
Low Income Home Energy Assistance Program (LIHEAP)
If you can't afford to pay your home energy bill, your home may not be safe, and you may be at risk of serious illness or injury. The LIHEAP may be able to help keep you and your family safe and healthy.
National School Lunch Free Lunch Program (NSLP)
Established in 1946, The National School Lunch Program (NSLP) is a federally assisted meal program operating in public and nonprofit private schools and residential child care institutions. It provides nutritionally balanced, low-cost or free lunches to children each school day.
Federal Housing Assistance/Section 8 (FPHA)
Public housing assistance was established to provide decent and safe rental housing for eligible low-income families, the elderly, and persons with disabilities. Public housing comes in all sizes and types, from scattered single family houses to high rise apartments for elderly families.
Home Affordable Modification Program (HAMP)
888-995-HOPE
If you are struggling with your monthly mortgage payments or have already missed a payment, now is the time to take action.
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Contact Us:
phone: 1-800-763-1874
CACC Money Wise Monthly Editor in Chief:
Mike Schiano, "The DebtBuster"
'Til Next Month, Consumer Advocates Credit Counselors, Inc.
This newsletter is designed to provide accurate and authoritative information with regard to the subject matter covered. This information is given with the understanding that neither CACC nor the Editor and Writers are engaged in rendering legal, accounting, or other professional advice. Since the details of your situation are fact dependent you should always seek the services of a competent professional before making any financial decisions.
Copyright©Consumer Advocates Credit Counselors, Inc. 2013. All Rights Reserved.
Use of all or part of this newsletter is allowed with proper attribution and link: Source: Consumer Advocates Credit Counselors, Inc. www.caccdebt.org
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