Marysville Public Library Recommendation
http://www.marysvillelib.org/taxes
BOOKMARK
Library branches launch financial literacy program
By Ann Knutson, Sellwood Branch Library
The Bee, Mar 2, 2011
Traditionally, literacy has been defined as the ability to read and write. Recently, the concept has been expanded to cover a range of skills needed to function and thrive in today’s world.
The Multnomah County Library branches now offers a financial literacy program called “Smart Saving”, to help people in our community take control of their finances.
The program includes a collection of Internet websites, books, and presentations for people in every financial situation, from kids just starting a savings account to seniors trying to live well during retirement.
From the “Smart Saving” website, www.multcolib.org/smartsaving , you can browse the library’s entire recently-updated personal finance collection. Be sure to look for new titles, like “Be CentsAble: How to Cut Your Household Budget in Half”, “Living Large on Less: A Guide to Saving Without Sacrifice”; and “One Year to an Organized Financial Life”.
The “Smart Saving” website also offers a comprehensive compilation of websites dedicated to personal finance. No matter what your income or personal financial state, this is an excellent source of information from trustworthy, vetted sources.
Need help with your taxes? There are hotlinks to forms, tax help sites, and organizations that will help you file. Are you or a child preparing for college? Find information about financial aid and “529” savings accounts.
The community resources links offer a wealth of information, and provides help that everyone can tap into and use during these challenging economic times. There are even games to play, to sharpen your financial skills — and there’s a section just for kids.
As always, the Multnomah County Library branches strive to offer balanced and unbiased information to meet the community’s needs. Stop by your library branch today, either online or in person, and check out these resources for honing your financial literacy skills.
“Smart Saving” is made possible by The Library Foundation, with a grant from FINRA Investor Education Foundation through “Smart investing@your library®”, a partnership with the American Library Association.
7 building blocks of good credit
Make these moves and you'll have a good score. Guaranteed
By Jodi Helmer
Does improving your credit score seem daunting? It doesn't have to be. Taking a few small steps now can mean the difference between a 550 and a 780. Follow these tips to see your score improve.
1. Request a copy of your credit report
You're entitled to a free credit report each year from each of the nationwide consumer credit bureaus -- Experian, Equifax and TransUnion -- thanks to the Fair Credit Reporting Act.
"It is important to remember that consumers have more than one credit report. Since there are three different credit reporting agencies, the information on each of their credit files may differ," says Clifton M. O'Neal, senior director of corporate communications for TransUnion. Requesting a free credit report "can help consumers keep tabs on all of their financial activities."
O'Neal advises checking each report for fraudulent activity and correcting any errors that appear. Each credit bureau's website has information on how to fix errors.
2. Take steps to improve your credit score
The credit bureaus and other companies track the information contained in your credit report, and crunch them into a three-digit number called a credit score. Having a low credit score will raise a red flag for lenders and could lead to having a loan application rejected. Or even if the application is accepted, your interest rate could be much higher. In other words, if you want to buy a house or a car, improving your credit score is an essential first step.
"If you are going to be applying for credit at any point in the future -- whether a new credit card, a mortgage, a home equity line of credit or a small business loan -- your credit score will largely determine how little or much you are going to have to pay for that credit ... if you get it at all," says Russell Wild, certified financial adviser and co-author of "One Year to An Organized Financial Life."
You can improve your credit score by paying bills on time, keeping your debt below 35 percent of your available credit, paying down debt and disputing errors on your credit report.
3. Read (and understand) the terms and conditions of your credit card contract
No one wants to read the fine print, but it contains all the important information about payment terms, interest rates, annual fees and penalties.Your credit card contract -- also called a card agreement or "terms and conditions" -- lays it out, though it often takes strong eyes and college-level reading comprehension.
"Most people don't bother reading the terms and conditions, and that's a mistake," says David Jones, president of Association of Independent Consumer Credit Counseling Agencies (AICCCA). "You shouldn't be surprised when your interest rate goes up because you missed a payment. It's all there in black and white."
Most credit card agreements are hard to understand, but that could change: As part of the 2010 Wall Street Reform and Consumer Protection Act, a new Consumer Financial Protection Bureau will have the power to mandate changes in contracts to make them easier to understand.
4. Read your monthly statements carefully
According to Jones, credit card statements are easier to understand than ever. The Credit CARD Act of 2009, whose major provisions took effect in February 2010, required new design and disclosure requirements to make statements more reader-friendly. Among the requirements, the fees for making late payments and how much is being paid in fees and interest on different types of accounts must be shown. CreditCards.com has put together an interactive look at the new credit card statements, using examples from all the major card issuers.
If there's something that doesn't make sense, call your credit card company or a credit counseling agency accredited by the AICCCA or the National Foundation for Credit Counseling to ask questions.
5. Pay down -- or pay off -- your credit card balance
"As soon as the January bills come in and cardholders realize how long it's going to take them to pay off their holiday spending, paying down credit card bills becomes a priority," Jones says.
One of the changes mandated by the CARD Act was that card statements must show how long it will take to pay off a balance if you pay only the minimum.
When it comes to paying off credit card balances, avoid making new charges, focus on paying off the card with the highest interest rates first and always pay more than the minimum payment.
"Even if you can only pay $5 over the minimum balance, it's a good idea because it goes straight to the principal and helps reduce your debt, even a little," says Jones.
The CreditCards.com calculators will help you customize a credit card payment plan and see the true cost of paying just the minimum.
6. Use credit cards that match your spending habits
Choosing the "right" card at the checkout can save you a bundle, according to Wild.
Consider the payment terms, he says, "most notably the interest rate you'll pay if you don't pay off your debt at the end of the month."
Cardholders who don't pay off their balances at the end of the month should be willing to sacrifice rewards to get a card that has a lower interest rate.
Wild also suggests using caution with store cards, especially those promising zero interest. If you have a history of late payments, interest rates can skyrocket which is an expensive mistake.
Annual fees can also add up. If you're paying $50 per year on several airline rewards cards but have never cashed in a single air mile, those accounts might not be the best fit for your spending habits.
7. Think twice before canceling cards
Your credit score is determined, in part, by the variety of accounts you have, and whether you have eaten up a lot of your available credit by carrying balances. In other words, outstanding balances on multiple cards will affect your credit score. Wisely manage those balances and don't be in a hurry to close out accounts.
"Any major changes in your credit habits, including canceling cards, will throw up a red flag and impact your credit score," says Jones. "If you want to reduce the number of cards you carry, cancel one card and a few months later cancel another instead of canceling them all at once."
Having multiple lines of credit and low balances gives you a low credit utilization ratio, which is good for your credit score. Be sure to keep your balances low -- overall, and on each credit card you have. And use each card every so often so the credit card company doesn't cancel the account.
If you're struggling with debt and having too much available credit may lead to the temptation to spend, you might be better off canceling those credit cards. It's better to let your credit score take a hit for closing accounts than to face the consequences of charging too much debt and not being able to pay it off.
Organization Site
Emily Wilska
BellaOnline's Organization Editor
A Great Guide to Organizing Your Finances
There's perhaps no type of disorganization that's more stressful than the financial kind. Feeling like you're out of touch with your money--how much of it you have, how much of it you owe, what your bank and brokerage and retirement accounts are doing--can be unsettling at best, and sometimes downright terrifying. It follows, then, that getting your finances in order can go a long way toward making you feel more in control.
But that kind of organization can be a big job, especially if you're starting from what feels like sheer money-related chaos. The good news is that there's a guide for those of us determined to forge a better relationship with our cash: One Year to an Organized Financial Life, by Regina Leeds and Russell Wild. Here's what I liked about the book, and why I think it's a worthwhile addition to your bookshelves.
What It's Like
As the title suggests, One Year to an Organized Financial Life is a year-long approach to getting more in touch with and more control over your money. The book is divided into months, with a different area of focus for each month (January's is Take Control, for example, while July's is Make Long-Range Financial Plan). Within the chapter, there's a habit of the month, a tool of the month, and a separate mini project for each week, designed to help you accomplish the month's overall goal.
Sprinkled throughout the book are sidebar tips on everything from when to get the best deals on essentials throughout the year to how to cut down on things like catalog clutter and unwanted credit card solicitations.
There's also a thorough list of resources at the end of the book, including recommendations on finding financial planning and organizing help.
Why It Gets My Thumbs-Up
A Few Small Downsides
I'm a firm believer in the benefits of having someone to guide you through the process of getting organized, especially when that process involves a topic as complex as money, and I enthusiastically believe that One Year to an Organized Financial Life is a worthwhile guide.
Top 10 Tips for Investing on Your Own
MORE.com Editors
Want to be your own investment manager? Here's how to make the most of your efforts and avoid the most common pitfalls:
1.Realize the trade-off between risk and return: Anything that gains 50 percent in a year can lose 50 percent (or more) in a year. Take only as much risk as you can handle.
2.Invest in stocks only for the long run (at least five years).
3.The most successful portfolios are those with the lowest costs, typically those made up of mostly index funds.
4.Make efforts to minimize taxation.
5.Keep your portfolio in proper balance. (For example, if you set out to have a portfolio that is 50 percent stock, and the market has soared so that your portfolio is now 70 percent stock, your portfolio is out of balance).
6.Most investors are overconfident, and you probably are, too. Realize that you aren't smarter than every other investor out there.
7.Don't listen to the talking heads on television every night that chatter about the markets' every twist and turn. Listen to soothing music instead or watch a good police drama.
8.Pass on the "How to Get Rich Quick" stories, and read something more realistic, like a science fiction novel!
9.Don't assume that what happened in the markets yesterday will happen tomorrow. Financial markets are unpredictable.
10.You've heard this one before but if something is too good to be true, it really is too good to be true.
Excerpted from One Year to an Organized Financial Life: From Your Bills to Your Bank Account, Your Home to Your Retirement, the Week-by-Week Guide to Achieving Financial Peace of Mind by Regina Leeds. Excerpted by arrangement with Da Capo Lifelong, a member of the Perseus Books Group. Copyright © 2008.
Personal Productivity & Finance
by Regina Leeds
July 9, 2010
Regina Leeds is the author of One Year to an Organized Financial Life, as well as New York Times bestseller One Year to an Organized Life. She believes in step-by-step processes to get organized, whether you're talking about organizing your home, your work or your personal finances.
There was a time when I believed you had to have a trained business mind to enjoy a successful financial life. In my youth I made stupid mistakes that caused seismic financial consequences. Now I know better. If you have common sense and just a touch of self-control, you can master the basics. While it's true that Ben Bernake will never call for my advice, I've got my personal debt under control, I'm saving for a home and I know the big culprit that got me into trouble in the past. (Hint: it's small, obvious and cumulative.)
There's a common denominator unifying all the various aspects of my life from my finances to my physical space: organization. Ask me how much I owe on my credit cards (I have a personal use card and one for business expenses), I can tell you in seconds. Ask me to produce an important document like my social security card or will and I'll have it for you in a flash. Would you like to see any of my tax returns? Not a problem! It isn't rocket science nor does it take a huge amount of time to get and/or stay organized. It does however take a little old-fashioned elbow grease to create a system and then a commitment to keep it going.
Classic Objections
What's that you say? You don't have time to devote to this project? Or were you the one who said you get organized all the time and it never lasts more than a week or two? Or maybe that was you I heard say that no one in your home honors what you organize. Let's take a minute to deal with each.
A few personal questions...
The Bottom Line
Let's look each question and consider the appropriate response.
Pay your bills on time to avoid late fees and other exorbitant (and unnecessary fines). Watch the credit to debt ratio on all of your cards. And always pay more than the minimum even if that's only $10. Need help remembering to pay your bills? Try this trick: pay them on line on the first of every month. You can select the due date on your account as the day the funds are to be taken from your bank account. The five or so minutes it takes to log on and pay bills is minor. The time, energy and potential money you save will be priceless.
One stop shopping...
In my new book One Year to an Organized Financial Life
(written with financial planner Russell Wild), you'll find detailed instructions for setting up a file system, building a healthy FICO score, creating a realistic budget, finding hidden money in your home and more. It's the book I wish I had had to read years ago when I assumed that understanding basic personal finance took a Harvard MBA. There's an old Zen proverb I love to quote: 'The way a man does one thing is how he does everything.' If your finances are in disarray the odds are good that so are other aspects of your life. Make a commitment in the financial area and watch everything else start to shift as well. As I said at the start, this isn't rocket science. If I can do it, trust me, so can you.
Make Friends With The B Word!
Posted By Regina Leeds
June 14, 2010 @ 02:11 PM
Tell me the truth. What did you think the 'B' word was? I'm going to bet you came up with the word for a female dog, right? Well, for our purposes, the 'B' word is Budget! It may not offend people but it certainly does strike fear in the heart. It's too bad really. A budget isn't a document that guarantees you will never, ever again have a good time because you are now living like Scrooge himself. It does mean that you can have the best that life offers but in a timely, sensible fashion that will not cause your credit card bills to soar or your FICO score to plummet. Never looked at it that way, did you?
In 'One Year to an Organized Financial Life', I go into the mechanics of creating a budget in great detail. It's the basis of your blossoming financial acumen. How are you going to buy a house, make investments or save for a rainy day if you only have a 'good idea' what's happening in your financial world each month? Let's take a look at the simple basics.
When you add up your expenses you may find you aren't making enough money. Your next task is to go back over your expenses with a fine tooth comb and see where/how you can save. Here are three common areas:
If you are one of the lucky people who come up with a surplus each month, start saving for a 3 to 6 month fund that will cover you and your family in the event of an emergency. If you already have that in place, while you march to the head of the class, you can decide if you'd like to start an investment portfolio or save for a big-ticket item like a new home or car.
Your budget isn't static. As your life, income and goals change, you need to tweak it. It's got to be as alive and vibrant as you are. It's a companion on your financial journey. Otherwise it's just a boring homework assignment you did one afternoon. You don't know where it is nor do you follow it. But then, who cares? You're off for another latte and, like Scarlet O'Hara, you'll think about that tomorrow. Or will you take the reins and think about it today!
Maintaining Your Portfolio
Excerpt from "One Year to an Organized Financial Life: From Your Bills to Your Bank Account, Your Home to Your Retirement, the Week-by-Week Guide to Achieving Financial Peace of Mind"
By Russell Wild and Regina Leeds
Spring 2010
Maintaining Your Portfolio
This week, you can
Let's say you set aside an afternoon to pick up around your house. You might wash all the dishes in the sink, toss out old magazines and newspapers from the family room, and do a load of laundry. But if your only goal is to "get rid of this mess," I'm going to make a bet. The mess will soon be back. Why? Because tidying up and getting organized are not the same. The former is temporary and the latter is about putting systems in place. Systems also need to be able to grow and evolve over time. You change and so should the way your life is organized. And what is the glue that holds those systems in place? Maintenance.
It's no different when it comes to personal finance. You might set aside a Saturday and tend to some aspects of your financial life, while other parts get put on your mental to-do list, and you assure yourself that you'll come back to them eventually. When? "Oh, one day when I have the money," you tell yourself. It's as if that day will arrive without any real planning on your part. This is called magical thinking, and we do it all the time. But just as you need to schedule time each year to handle routine chores such as cleaning the gutters and washing the windows, so do you need to make time regularly to maintain your finances.
Let's say that today you work on reducing your debt and securing an emergency fund. Maybe you have to wait six months or a year before you start investing in saving for college. Very few people can do everything that is suggested in this book all at once. What's important is that you make a plan to guide you from financial step to financial step so that no aspect falls through the cracks. And part of this plan that moves you forward must be steps to check on the progress you have made. Notice your credit card rates. Be sure you have the best rates on your insurance policies. Research new investment opportunities from time to time. Money is energy and you don't want it to stagnate!
Rebalancing Your Portfolio
After you have created your portfolio, it will need your attention from time to time. A buy-and-hold portfolio, which I strongly advocate, is not synonymous with a portfolio you ignore. It can't just sit there forever and maintain itself, for the primary reason that portfolios get out of whack. Suppose you have one that is a reasonable mix (for you) of 50 percent stocks and 50 percent bonds. That portfolio may evolve, through no fault of your own, into one that is, say, 70 percent stock and 30 percent bonds, which is way too risky for you.
When the asset allocation in your portfolio becomes uneven, you'll need to rebalance it and get back to your original allocation. If your stock allocation has risen beyond its original set point, rebalancing means selling stocks and buying bonds. Or you could perhaps avoid selling your stock holdings by directing new purchases into bonds.
Many financial experts recommend that you look over your portfolio every year or two. I think eighteen months is fine for most people. (Mark the date in your calendar or planner.) If the urge strikes you to shuffle things around more often than that, resist. Buy-and-hold investors (but not ignore-your-portfolio-entirely investors!) tend to be the most successful investors over the long run.
The main reason to rebalance your portfolio is to mitigate risk. For instance, it may become seriously overweight in stocks as a result of a gangbuster year in stocks. If the following year is a gangbuster as well, what was once a nice mix of stocks and bonds may find itself with the lion's share in stocks. So what? Well, more stocks mean that your portfolio has become more aggressive. And as you grow older, it should probably be adjusted to become more conservative, not more aggressive. Otherwise, if you are just about to retire, and suddenly the stock market falls 57 percent, as it recently did, you can say good-bye to your long-awaited retirement.
Proper rebalancing requires more than reallocating your stocks and bonds. It means putting all your investments back in place. Again, you can do this by either selling your winners and adding money to investments that have sagged in the past months (easier said than done) or directing new savings into your "down" investments. Let's take a look at a sample portfolio, and how it might be rebalanced.
Suppose in March 2010 you set up the following simple portfolio, after a careful analysis that it is the right one for you:
Let's assume that the next eighteen months are gangbuster months for stocks, especially foreign stocks, and especially stocks of emerging-market nations ("emerging-market nations" is a euphemism for poor countries that we hope are emerging). At the end of eighteen months, your portfolio looks like this:
Let's assume that the next eighteen months are gangbuster months for stocks, especially foreign stocks, and especially stocks of emerging-market nations ("emerging-market nations" is a euphemism for poor countries that we hope are emerging). At the end of eighteen months, your portfolio looks like this:
What should you do now that you find yourself with a portfolio that was 50 percent stock and is now 67 percent stock? You'll need to sell off some stock, especially the foreign funds, and buy bonds. It's the only way to keep your portfolio on an even keel. In the example, you'll want to compare the numbers in each of the two lists, and sell and purchase accordingly.
Buying and selling may involve transaction costs, and sometimes selling means having to pay capital gains tax. You'll need to compare these expenses with fine-turning your portfolio too much. In general, I wouldn't worry much about rebalancing until any one part is more than 5 percent out of whack in either direction.
Summarizing the Points of Portfolio Maintenance
The last section described rebalancing your portfolio. But maintaining your portfolio in proper working order requires other tasks, which are listed in the following table.
Investment Portfolio Do's and Don'ts
Do
Don't
Predictions of a paperless society have yet to come true
By Eileen Ambrose
May 25, 2010 - The Baltimore Sun (MCT)
Save it or toss it?
It's a question we face whenever confronted with canceled checks, utility bills, ATM and credit card receipts, 401(k) statements - that mound of paper taking over our homes.
If you're like many, you err on the side of caution and keep each piece, letting the stack of papers grow, throwing them in an overstuffed drawer or stowing them in a box that won't be reopened for months or years.
Or you may be paper-averse, especially if you're Generation Y or younger, and save digitally instead.
"People in their 20s run everything from their phones and don't understand the value of paper," says Regina Leeds, co-author of "One Year to an Organized Financial Life." "There are times when you do want paper records. Some things are too important to trust to cyberspace, like your birth certificate or Social Security card."
You don't want to be in the extreme of either camp. Save everything, and you end up with so much clutter that you - and someday your heirs - won't be able to quickly find documents. Worse, go entirely paperless, and you could one day face the time-consuming and sometimes impossible task of trying to retrieve old records.
Getting papers well-organized can take hours, but in the long run it can save time, money and help you monitor your financial progress. It can also help detect fraud.
Just ask Anna Sergunina, a planner with MainStreet Financial Planning in Odenton, Md. Sergunina often hears clients gripe about the difficulty of keeping records, and recently launched a service where she will set up a filing system for a fee of $290, which includes travel to your house.
Weeks ago, Sergunina organized a client's records, which included unopened statements, and discovered $7,500 in unauthorized charges over three months. The bank and credit card companies restored the funds, but the theft could have been uncovered sooner had the client been organized.
James Doyle is among those using Sergunina's organizing skills.
Doyle cleaned out some records a couple of years ago when he moved from a house to a smaller place at a retirement community in Washington. But the semiretired consultant still had two file cabinets full of papers needing sorting, labeling or shredding.
Sergunina spent half a day creating a filing system and disposed of a few bags of papers. She condensed Doyle's documents into two boxes of files, with instructions on when to jettison records.
"It's a tremendous help," Doyle says.
Of course, you can organize records on your own.
Suzanne Hall of Financial Consulate in Hunt Valley, Md., helps people get organized and says you could start by sorting papers into different categories, such as real estate and investments, and then sticking each category into a file. Keep the number of files to no more than 20, she says. Then go through each and weed out what you don't need.
"It could take a lengthy time if paperwork has never been organized," warns Hall, whose fee starts at $75 an hour.
Her biggest project to date: spending five full days earlier this year arranging the records of a 75-year-old woman who saved papers going back to 1960.
How do decide what to purge and what to keep? Here are guidelines:
Legal documents
Many records you'll keep for life, including birth certificates, passports, adoption forms, marriage and divorce papers, military records, Social Security cards, wills and other estate documents. Store them in a fireproof box for protection.
Taxes
The disposal of many documents depends on how long the Internal Revenue Service might want to see them.
The IRS will go back no more than three years for a routine audit of a tax return. But it will look back twice that far if you under-report your income by more than 25 percent. Fail to file a return or submit a fraudulent one, and there is no limit to how far back the IRS will go.
To play it safe - and assuming you're honest - dump a tax return after seven years along with the documents supporting deductions or income claims made in the filing, tax experts say.
Granted, tax returns do contain lots of useful financial information, and some money experts say they should never be thrown away. If you don't want to part with tax forms, scan the returns and store them in a computer file to reduce paper.
Investments
Keep monthly and quarterly investment statements throughout the year. Toss them later when you receive the year-end summary statement. You'll want to hold on to these statements for as long as you own the securities and several years beyond, again for tax purposes.
Some brokerages and investment firms maintain records on what you paid for securities - the cost basis - which can help you figure your gain or loss when you sell. And beginning with stock purchases next year, brokerages must report your cost basis to the IRS when you sell, which should reduce your paperwork.
But you'll need statements for older securities. Plus, maintaining your own records is important in case you switch brokers or the investment firm merges with another and your records are lost, says Theresa Bandell, a tax director with Stegman & Co. in Towson, Md.
Home improvements Retain records of substantive improvements made over the years to your house, such as adding a deck, replacing windows or remodeling the kitchen, Bandell says. The cost of improvements can be added to the original purchase price and lower the gain on a house when it's sold.
You can exclude from taxes up to $250,000 in gains - $500,000 if married - on the sale of a house. Most sellers don't end up paying the tax. But if you're house appreciates above those limits, having records of home improvements will lessen the tax bite.
Medical records
Keep receipts for medical expenses throughout the year. You can deduct expenses that exceed 7.5 percent of adjusted gross income. If you don't meet that threshold during the tax year, you can throw out the records.
Bills and receipts Sergunina recommends that credit and debit card receipts be chucked after one to three months, along with recurring bills for cable TV and telephones. Credit card statements, pay stubs and insurance policies that are in force should be kept for a year.
If you buy a big-ticket item with a credit card, keep the statement with the warranty, Hall says.
Also, if you plan to sell your house, prospective buyers often want to see a year's worth of utility bills, Bandell says.
Eileen Ambrose is a personal finance columnist at the Baltimore Sun. Send her e-mail at eileen.ambrose@baltsun.com. She cannot give individual advice.
Review - One Year To An Organized Financial Life
Mrs January
Saving Money to Live a Better Life
May 19, 2010
A little while back, I received a book from author Regina Leeds. It is titled One Year To An Organized Financial Life and I said I would review it on here.
Well, let me tell you - this is one of the best financial books I have ever read. Regina is a professional organizer and you can tell just by reading the book that she is a sweet, kind-hearted person. She genuinely cares about her clients and wants to see them succeed. She had certified financial advisor, Russell Wild, help her with the financial bits and she contributed all of the organizing mumbo jumbo.
This book is full of awesome tips on getting your finances in order and it all goes on a monthly schedule so that you do not get overwhelmed. By the end of one year, you should have all of your financial stuff in order (if you can put the book down to get started! I read this book in about a week. It is THAT good.). For example, here's what Regina teaches you in March:
WEEK ONE - Gather, sort and file tax-related papers.
WEEK TWO - Tally those sorted receipts.
WEEK THREE - Determine whether to use a tax pro, software or do your taxes yourself.
WEEK FOUR - Check for errors on your tax forms. Also, how will you use your tax refund?
... and here's what she teaches you in July:
WEEK ONE - Decide if you need a financial advisor.
WEEK TWO - Learn the ins and outs of savvy portfolio maintenance.
WEEK THREE - Decide who will inherit, starting with creating a will.
WEEK FOUR - Understand how beneficiary forms work and review yours periodically.
I can't tell enough people about this book. I just really, really loved it. I was so impressed with this book, that I actually went out and bought Regina's other organizing book - One Year To An Organized Life. I haven't read it yet, but if it's anything like this financial one, I'm sure it will be fantastic!
Book Review: One Year to an Organized Financial Life
Financial Eyes & Ears
Posted by admin In: Personal Finance
May 12, 2010
There's a reason we tend to talk about getting our finances in order. More often than not, the first issue we have to deal with is organization. That may mean sorting through stacks of paper for bills and statements we didn't really want to see in the first place, or it may mean dealing with clutter that distracts us from even starting on the paperwork. It's just about impossible to improve your finances if you don't have them organized.
That's the premise of One Year to an Organized Financial Life, by Regina Leeds and Russell Wild. Leeds is a professional organizer as well as the author of such books as One Year to an Organized Life, while Wild is a NAPFA-certified financial advisor. The two have put together an organized approach to getting organized, breaking down the monstrous task of dealing with financial issues into small steps that can be handled without stress.
One Year to an Organized Financial Life is not written with the idea of completely fixing your finances overnight, though. It can take months or even years to build up a snarl of financial paperwork and plans, and Leeds and Wild know that it takes plenty of time to resolve such a situation. The book is organized around a calendar, offering a year-long guide. In January, the plan is to start work on the clutter and implement a filing system. With step-by-step instructions and bullet points, the book navigates through taxes, budgeting, credit, long-term savings and other key considerations for your finances. There's even a well-timed section in November on budgeting for the holidays.
This book is meant very specifically for readers who are fairly busy. If you've found yourself struggling to actually get specific parts of your finances in order, it's ideal because it's not just general advice, like some personal finance books. Instead, Leeds and Wild have created a resource that explains each action you need to take, along with the steps you can use to keep from having to come back and re-organize in the future. They go much deeper than explaining that a person should save more and spend less, discussing the reasons you may handle your finances the way you do.
There is always an emotional component when it comes to money and One Year to an Organized Financial Life takes that fact into account. Leeds brings in her experience as a professional organizer to discuss the symptoms that can go along with financial issues, such as physical clutter, as well as how you can handle those symptoms as you resolve the underlying concerns.
One Year to an Organized Financial Life is 288 pages long - a fast read, but a book you'll likely come back to again and again. It's published by Da Capo Lifelong Books and is available for $16.95.
Disclosure: I received a free copy of the book for review.
Organize Your Financial Life
Posted by budgetsmartgirl, The Budget Smart Girl's Guide to the Universe
April 21, 2010
Having a professional organizer make over my home office has been on my gift want list every Christmas. It hasn't happened yet, but I think I found the next best thing - an interview with Regina Leeds who's been named the Best Organizer in L.A by Los Angeles Magazine. She's the author of seven books, including One Year to an Organized Financial Life. She's been an actress who's appeared on The Young and The Restless and is now organizer to people like actress Meg Ryan. Along the way she's endured some of her own setbacks with regards to money and offers advice based on her own experiences. Here she shares her tips for keeping our finances in order. www.reginaleeds.com.
Budget Smart Girl (BSG)-Tell us about yourself and how long you've been a professional organizer?
Regina Leeds (RL)-I have been a professional organizer for 21 years. Before that I was a professional actress. There was a crossover period of about 10 years. When I gave up acting, I embraced writing. I knew I'd write one book about organizing so I could reach folks who would never be able to work one on one with me. Today I'm writing book number eight and number five was a New York Times best seller! When you follow your bliss, you never know what surprises are waiting for you. Brooklyn, New York is my home town by the way but today I live in Los Angeles.
BSG-You've written other organizing books, why did you decide to write one focusing on organizing finances?
RL-When "One Year to an Organized Life" became a best seller, Perseus (my publisher) asked if I could apply the concepts of 'Zen Organizing' to the office and "One Year to an Organized Work Life" was born. Finance seemed like a logical next step. This year I'm writing about babies and pregnancy and next year I will cover toddler to ten. There's no end to how these simple concepts can be applied to all the challenges of life. It's at once exciting and gratifying to see my life's work being applied in such a creative way.
BSG-What are some of the biggest problems people run into when they tackle organizing things like bills and bank statements?
RL-First of all they don't have a clue how to organize paper. So they come out of the starting gate overwhelmed. Secondly numbers don't lie. They have no emotion. They show you aspects of your life without judgment. It may however be a painful reality so we avoid taking responsibility. Money and finance are very emotional experiences for most people. It's one of the reasons in the book we start with your earliest 'lessons' about money and how it was managed by your parents. That's the seed ground for today's reality.
BSG-Any recommendations for low cost items for keeping things in order?
RL-You need a file cabinet but whether it's a literal 4 or 2 drawer metal cabinet or simply a rattan or wood box you can plop a lamp on in your living room, the key issues are these: is it adequate to meet your needs? Is it inviting enough for you to use on a regular basis?
As far as smaller, file oriented tools I think in addition to regular hanging file folders, people should make use of 2″ wide hanging box bottom file folders because they can hold large categories of material. I also use the long file tabs rather than the short ones that come with your hanging file folder purchase. The longer the tab, the more literal space you have to give a creative title that you are apt to remember.
A label maker is an absolute must and can serve you in many areas of your home or office.
A shredder is a must. If you don't have a lot of paper to shred or you lack space, The Container Store has a scissor that shreds!
Finally, let me say that sometimes people place material directly into the hanging folder. You must in fact place it in a manila folder and then put that inside the handing folder. The manila folder allows you to take out information, work on it and return it with ease. You don't want a soup of papers oozing across your desk. You'll have to stop and sort and that should only be done once!
BSG-Any sites or software that are great for organizing?
RL-I wouldn't recommend any 'organizing' sites per se. I think all organizers are saying the same thing. You have to find the one who gives the message in a way you strongly relate to. When that happens, find your organizer on line, at Facebook & Twitter, buy her books etc. Turn your favorite organizer into your personal mentor rather than shopping around and never making progress. I've had clients whose file cabinets had 2 or 3 systems they had tried out over time. You couldn't find anything! The organizer you relate to will recommend products, give you tips and tricks etc. Focus your energy rather than scatter it at every turn in your quest to get organized.
BSG-Any sites or software that are great for specifically organizing finances?
RL-You can trust www.mint.com and www.bankrate.com. We have a large Resource section in case you want more but I'd say these two are the best and most extensive.
BSG-In the book you mention you've had a few major setbacks yourself but have bounced back. Any advice for people who feel overwhelmed by not being able to pay their bills or know they're heading for bankruptcy?
RL-Everything in life is a teaching/learning moment if you pay attention. I literally fell to my knees and wept the minute I realized I needed to declare bankruptcy. It wasn't a casual decision. It was humiliating and I felt like a failure. My attorney was a kind, wonderful man who said to me at the end: "Regina, go out and rebuild your life." I learned I was a money drunk. I had no concept how it all worked. I was a child financially. The choice was to grow up! Last year I hit the 10 year mark and the bankruptcy is gone. I decided to write about it so that others in my situation would know you can indeed come out the other side. But you have to show up and do the work! If readers in trouble follow the simple guidelines in our book they have the mentor in their hands I was seeking 11 years ago. I've written the book I needed.
BSG-I'm terrible about throwing things away. In the back of my mind I think 'what if I need this one day'. How long should we hang onto items like credit card statements and tax returns?
RL-You want to hang on to your tax return forever. If you itemize, you have lots of back up materials. The IRS mandates you keep that for 3 years if you are an individual and 7 if you are a corporation.
But then each state has a time line. For example in CA, it's 4 years. You want to check with your tax preparer, tax attorney or CPA to be sure you are following the latest guidelines. The rules are subject to change because the laws change. The only exception of course is if you are suspected of fraud. All bets are off under those conditions!
If your credit card doesn't have any tax deductible expenses, you can shred it the following month when you see that your payment has been recorded. If it does show deductible expenses, save it for the time required. You might also want to save any big ticket purchases that are under warranty like a new computer or washer/dryer.
Save your bank statements if you are freelance. You might have to explain some deposits to the IRS in the event of an audit. They will want to know if you hid any income.
Shred any materials that have account numbers.
Get Organized: Tricks for keeping track of your household expenses
By Lylah Alphonse, Shine contributor
April 18, 2010
I've always thought I was pretty organized when it came to my finances, but I've recently realized that I'm not. Sure, I've got a couple of metal file cabinets in which I store all of my paperwork -- when I take the time to actually sort and file everything. But as bills get paid they usually get dumped in one of two places: in a pile on my desk or in folder in my work bag. When I have too many pieces of finance-related paper in one place, I transfer the pile to another location. It all gets filed away eventually, but sometimes "eventually" can be a long way away.
Getting organized means more than just paying your bills on time and balancing your checkbook. It's a way of life and a way of thinking that can lead to a better way of managing your money.
Regina Leeds, the New York Times best-selling author of "One Year to an Organized Life" recently teamed up with NAPFA-certified financial advisor Russell Wild to write "One Year to an Organized Financial Life," and she tackles money matters with the same step-by-step, week-by-week methods she uses for kicking clutter to the curb permanently.
In her book, she divides the task of complete financial organization into a 12-month plan that makes organization much less overwhelming. (She's known as "The Zen Organizer" for a reason!) She suggests that you start by decluttering and organizing your workspace, touches on everything from taxes to managing credit to retirement planning to holiday expenses, and ends with ways to keep monitoring your financial goals and moving forward.
It's impossible to keep track of your household expenses without knowing exactly what those expenses are. Leeds suggests taking a look at your bank statement as well as your credit card statements and bills in order to find recurring expenses. Then, separate the nondiscretionary, fixed items -- the ones that absolutely have to be paid each month -- from the discretionary, variable costs. Need examples? Your rent or mortgage, utility bills, health insurance, taxes, loans, and child care expenses are nondiscretionary. Magazines, movies, lattes, and the latest lipstick? Discretionary. Some things -- groceries and gas, for instance -- are fixed items with wiggle room; you can't do without them, but maybe you can whittle those bills down a bit.
It can be hard to get a handle on your discretionary spending. One way to do it is to keep track of every penny for a week or more (tip: save your receipts). "Most people are unconsciously bleeding money from relatively small purchases," Leeds points out. Think of it this way: A latte costs about $5. A latte on the way to work every day, five days a week, will run you about $1,250 a year. That's a lot of caffeine -- and cash.
Once you know how much money is already going out, figure out exactly how much is coming in regularly, and create your budget, keeping in mind that it doesn't have to be set in stone. If you're financial situation is such that you can't pay your bills each month, Leeds offers some advice on how to prioritize your payments:
1. Pay Uncle Sam first. "The IRS can make your life miserable like few other creditors can," she writes.
2. Pay the people who can repossess your stuff next. "Your mortgage company and the auto dealer come next in order of importance," Leeds says. "You obviously don't want to come home to find your furniture on the street or your vehicle towed."
3. Seek the lowest cost. Pay down the credit card with the highest interest rate first, while making at least the minimum payment on any others.
4. Consider the little guy. If you have to choose between paying a big box store or a mom-and-pop shop, consider that the smaller creditor may need your money in order to pay his own bills.
What's your system for keeping track of household expenses?
How To Make Doing Next Year's Taxes Less Painful
Posted by: Catherine Strawn
April 16, 2010
If you're like us, you probably spent the better part of the week ripping out your hair as you collected and combed through bank statements, pay stubs, and W-2s to get your taxes finished on time. (You sent in your taxes by yesterday, right?!?!) Since we don't want to experience a similar last-minute meltdown next April, we asked Regina Leeds and Russell Wild, authors of One Year to an Organized Financial Life, for advice on what we can do now to make next year a lot less painful.
1. Why clutter up your home with unnecessary paperwork? Once you've reconciled your bank statement each month (that means checking to make sure all of the transactions actually happened and the amounts are correct), feel free to toss deposit and withdrawal slips, as well as paid utility bills, provided you don't work from home and plan to deduct a portion of these.
2. Save receipts for all tax-deductible purchases. Figure out a system for keeping these organized, and stick to it, because sorting through hundreds of tiny scraps of paper at 12 a.m. on April 14 is no fun. Regina recommends getting into the habit of emptying your purse of receipts daily or weekly, and aggregating them in one specific spot.
3. Not sure whether a certain spending is deductible? "If you work as a salaried employee, almost nothing is deductible," Regina and Russell note. "But if you work on your own, almost everything is deductible!" Things like home improvements and auto maintenance might also count as deductible expenses. "You can never keep too many receipts," the authors advise, and saving and logging them will give you control over your financial records. Mint and Bankrate are two web-based programs that might help you keep track of your income and expenses.
4. Establish a method for keeping track of essential paperwork, from pay stubs and bank statements to insurance documents and medical bills. While it would feel nice to start fresh each year, throwing out bank statements and receipts once you've dropped your tax returns off at the post office, the IRS generally wants you to save this stuff for at least three years, though each state has its own guidelines.
5. Make sure you can access past month's bank statements at any time, especially if you've moved on from paper statements to e-statements, which can help reduce physical clutter. If you store them on your hard drive, back it up on a regular basis - try using online storage like Mozy, which is free up to 2GB.
6. Keep tabs on your finances year-round, because filing your taxes on April 15 is simply the grand finale. Make all charitable donations and big-ticket purchases that are deductible (i.e., buying a new car for business purposes) before December 31, and all retirement plan contributions before April 15.
In short, don't sit back, relax, and do nothing for the next 364 days ... unless you want to be cursing yourself once again at this time next year.
Finance Blog | Your financial advisor
Book Review: One Year To An Organized Financial Life By Regina Leeds
My home office looks like a filing cabinet (or two) threw up in it. I have books, papers, notes, and knickknacks scattered everywhere. While I sort of know where everything is, it is not as organized as it could be for maximum efficiency. Not by a long shot!
The same can be said for a lot of people's finances as well. How many of us have little scraps of paper receipts that we have to dig through during tax season to help us file our deductions? Do you carry a huge purse with everything you would ever need in it? Did you know that that could be a reason why your finances are in disarray? Or, worse yet, how many people are scared to invest for retirement or save for a rainy day because they feel overwhelmed by the sheer choices and the potential complexity of it all? Boy do I have a book for you this week!
Now there is hope for all of us. Regina Leeds has a book out called, "One Year To An Organized Financial Life". It is a great read, and I would highly recommend it to anyone looking to organize their lives and their finances. The book would be especially helpful and is geared towards people who are just starting out managing their personal finances. But, there are some wonderful tips in the book that can benefit investors and money mavens of every level of sophistication and skill.
I love how the book is broken down into sections. While you can start reading the book at any time of the year and in any order, the book's chapters each represent a month on the calendar and are then further broken out by that month's weeks. So, for example, June looks like...
Chapter 6. June - Build A Nest Egg
Week One: Establish a Retirement Plan
Week Two: Calculate How Much You Need To Save
Week Three: Assess How Much Risk You Can Afford
Week Four: Max Out Where It Pays
Other topics covered throughout the months and the book include: accessing your finances, spending less and saving more, getting ready for taxes, borrowing smartly, long range planning, children and money, and many other great money topics. It is a week by week guide to finding the financial piece of mind that you deserve.
"One Year To An Organized Financial Life" has it all. The author uses a Zen philosophy to bring clarity, simplicity, and order to your personal finances. The book builds on a slow and methodical way to bring your finances under control and lays out certain tasks or goals that you have to accomplish each week. Some of the tasks that I found very helpful were cleaning out my wallet of unneeded receipts and business cards, setting up a financial filing system, and streamlining my home office. There are tips and tricks that are recommended in this book that you normally would not think of or you wouldn't even think that they have much to do with personal finance. Leeds starts the reader out by examining his or her entire situation and not just the financial one. Are you drinking too much coffee or soda? Are all your dollar bills in your wallet facing the same direction and in denominational order? I know what you are thinking...no! And, so what? It matters!
"One Year To An Organized Life" is a great book full of practical money and life advice for everyone. You should definitely check it out and add it to your reading list.
Side Note: Regina Leeds also wrote "One Year To An Organized Life" and "One Year To An Organized Work Life".
Get the Most Out of Your Money
Financial advisor Russell Wild, co-author of "One Year to an Organized Financial Life," offers these powerful moves that could turn around your family's sagging finances in six months or less.
By RUSSELL WILD
Spring 2010
Last year's turmoil in the stock market, bond market, job market, and credit market has left some Hispanics in financial hardship and many skittish about making financial decisions. In three areas of finance especially-cash flow, savings, and jobs-questions abound as to how to best proceed in this highly uncertain economy. These sure-fire strategies can help boost your sagging finances.
Tighten your budget
Perhaps last year you were banking on a raise or bonus that never came. Or you counted on earning more than the paltry 1 percent you're now earning on your savings. Although Hispanic spending power is predicted to reach $1 trillion this year, many Hispanics are having to adapt to lean times. Experts say that many households, with a little creativity, can lower their expenses without hardship.
What to do: Hispanics' largest monthly expenses are housing, followed by transportation. "One way Hispanics can save money without lowering their standard of living is to look for better car insurance deals," says Alicia Morga, chair and CEO of Consorte Media, a marketing firm focused on Hispanic consumers. The average driver spends $120 to $130 a month on car insurance. Often, simply by combining auto and home policies and perhaps increasing deductibles, you can save 10 percent or more, says Morga. "Just call your insurance provider and ask for a quote." Get quotes from competitors, too.
Cathy Pareto, MBA, CFP, of Cathy Pareto and Associates, a financial planning firm, recommends negotiating. From retail stores to newspaper subscriptions to doctors' bills, you can often knock dollars off every bill you have, simply by asking. "El que no llora, no mama" (If you don't ask for it, you won't get it), she says. While U.S.-born consumers are just waking up to the power of negotiating, it's second nature to people raised in Latin American countries, where negotiating is a way of life, she says.
Finally, says Alejandro Marguia, with the McLean Asset Management Corporation: "I've seen Hispanics spend $10,000 to $15,000 [on quinceañeras]. I suggest spending perhaps half as much on a party and putting the other half into a college fund."
Invest with confidence
Wild volatility in the financial markets has led many investors to rush to cash (held in savings accounts and money market funds, if not under the mattress) to safeguard their savings. Such cash hoarding may be especially prevalent among Hispanic investors, who, says Pareto, "even in good times, lean strongly toward conservative investments. There's a tradeoff between risk and return, and going too safe with your money-by storing it in such things as low-yielding savings accounts-can be detrimental to your wealth in the long term."
What to do: The antidote is to have a well-diversified portfolio that includes "safe" money as well as investments that can fluctuate in value but tend to produce greater returns. Yes, even the portfolio of retirees and near-retirees, which should lean conservative, often warrant the inclusion of some stocks.
Marguia knows that many Hispanics, especially those born outside the United States, tend to be cynical about stock investing. "Because of where they came from," he says, "they see the stock market as a rigged game, rather than a legitimate way of investing in our economic system." Even they, he adds, need to round out their portfolios.
If you decide to beef up your stock or bond positions, a good place to start would be low-cost index funds that allow you to invest in the entire stock or bond markets, or large sections of them. Consider the offerings of better-known index fund providers such as Vanguard or iShares.
Finally, says Marguia, "Perhaps the best way to start investing in stocks is your employer's 401(k)." Hispanics typically participate less in those plans than non-Hispanic whites. "If you have an employer offering matching funds, and you don't contribute to your 401(k), you are, in effect, tossing money to the wind."
Improve your position in the job market
The unemployment rate among Hispanics is 13 percent, versus 10 percent for all workers, according to the Bureau of Labor Statistics. According to Wilhelmina Leigh, at the Joint Center for Political and Economic Studies, Hispanics have been hardest hit in large part because they tend to be overrepresented in two of the industries affected most by the recession: construction and manufacturing.
What to do: Identify industries and professions in your area that are growing. "Health care, for example, offers many opportunities, especially in certain professions, such as x-ray technicians," says Carlos Sanchez, a manager with Saludos Hispanos, a company devoted to helping bilingual professionals find better jobs. Sanchez recommends taking advantage of community colleges and technical schools to beef up employment credentials. "The days are gone where street smarts alone will get you a job," he says. "Today, having specific skills is crucial."
Take full advantage of your bilingualism, urges Sanchez. "There are 400 million Spanish speakers in the world, and being one of them offers you a huge advantage." Sanchez, of Mexican descent, also recommends that older job seekers look deep within themselves for skill sets they may already have. A parent who has raised several children and kept a tidy house for many years, for example, may already have all the skills necessary to take a job working with children as a teacher's aide in a local elementary school or perhaps as a cook or retail sales clerk. Or perhaps over the course of your lifetime, you've developed decorating skills, mechanical abilities, or marketing and sales talents.
Spring cleaning: Get your finances in order
Posted by Kerry, YourMoney.ca
March 2010
The snow is melting, the birds are chirping, and you've just removed those salty winter tires from your car. Yes, spring is here!
Although spring is traditionally the time to clean house and start anew, you may find a fresher start this season by giving your finances a little dusting off. A year of spending and saving can leave a cluttered trail of financial paperwork in need of some fiscal organization.
Regina Leeds, co-author of One Year to an Organized Financial Life with Russell Wild, knows that cleaning up your credit and removing the cobwebs from unpaid bills can net you a tidy sum, and even increase your self esteem.
"There is an emotional peace to being in control of your finances," says Leeds. "Creating a budget and cleaning up your files can show you that money is not complicated."
One Year to an Organized Financial Life is a thorough 365-day journey that tackles everything from debt to teaching kids about money. But if you're tight on time and need a quick financial decluttering fix, Leeds offers these tips for organizing your finances in a week:
1. Build a budget
Start your financial spring cleaning by building a simple budget.
"Add up your expenses for the entire week, multiply by 52, and see what you get. Are your expenses for the next year likely to outstrip your income for the year? If so, you need to do some figuring out," says Leeds.
"In just one week, you can create a budget for yourself that can stop the bleeding, and set yourself on the path to financial fitness."
Be sure to categorize your expenses to see where your money is going and where balance can be found.
2. Cut through your costly clutter
The next step is to take a look at the physical area where you work on your finances.
"If it's in chaos, guess what? Thinking clearly is going to be really difficult! Set a timer and give yourself 20 minutes to move as fast as you can," says Leeds. Here's how to cut the clutter:
Leeds, a professional organizer since 1988, has seen her share of paper clutter. If you have many boxes of paper in need of shredding, she suggests taking it to a professional. "A service is cheaper than you spending your time to do it," she says.
3. Cash in on savings
Perhaps the best part about spring cleaning your finances is finding places to save money. "There is always a better deal to be had with some of your providers like cable or phone," says Leeds. Selling your clutter for cash through garage sales or on eBay can also help you give this spring a fresh start.
Delicious Living
Spring clean your life
By Kate Hanley, Feb 25, 2010
Capitalize on the season of renewal by weeding out what's not working
Spring is a natural time for renewal. The weather warms, days lengthen, windows open. As clean air and light pour in, you may feel inspired to let that freshness into everything-your physical space, your mind, your body. And it turns out that doing so is intricately tied to your overall health and well-being. Studies show that the rituals of cleaning and getting rid of what's no longer serving you-such as worn-out possessions, old habits, emotional ties, or unhealthy thoughts-can actually improve your physical and mental health. So start by tackling the piles of old bills, the crumbs under the refrigerator, the much-neglected bathtub (see "Five Essentials of Nontoxic Cleaning," page TK, for tips), and then apply some of those same principles to other areas of your life, such as your workout routine, diet, or relationships. We guarantee you'll feel a whole lot better if you do.
Declutter your physical space
Tackle stuff the smart way
Do you feel rotten when clutter levels rise past a certain point? Consider this research: Self-identified hoarders (who have a tendency to collect and an inability to dispose of things) and family members of hoarders are nearly three times more likely to be overweight and have more medical and mental health issues than their family members, according to a 2008 report in Psychiatry Research. Although hoarding is an extreme example, people with typical clutter problems report anxiety, guilt, and depression about the clutter in their homes.
Whether it's the garage, the trunk of your car, or the playroom, you probably have at least one spot that seems impossible to organize. Rather than rushing out to buy shelves or bins, it's better to start with the big-picture, says Peter Walsh, organizing expert for The Oprah Winfrey Show and author of Does This Clutter Make My Butt Look Fat? (Free Press, 2008). Ask yourself, "What do I want from this space?" For a bedroom, your goals might include serenity, rest, intimacy, or comfort. Then remove anything that doesn't contribute to those key words. "Once you've removed things that don't serve your vision-either by moving them to a more appropriate part of the house or getting rid of them altogether-you can focus on organizing the things that do."
Commit to two basic tasks
1. Make your bed every morning. 2. Designate a spot for your keys and glasses if you wear them. "Getting organized is a project. Staying organized is a habit," says Regina Leeds, professional organizer and author of One Year to an Organized Life (Da Capo, 2007). In order to make the benefits of your spring purge last, make organization part of your daily ritual. Leeds recommends these two simple tasks for their ability to bring calm to your environment (making the bed) and saving you time and angst (designating a spot for your keys). "Once you see how these small actions have big benefits, you'll be inspired to bring a similar sense of serenity to other parts of your life."
The New York Times
New Titles Cover Personal Finance From All Angles
By THE ASSOCIATED PRESS
Published: February 26, 2010
Filed at 10:34 a.m. ET
Financial well-being can be reached from a variety of paths. Several are charted out by money experts in new personal finance books.
In ''One Year to an Organized Financial Life,'' the message to readers is to get off your assets and put your financial life in order, month by month, topic by topic. Organization, then, is the way to success.
The second title, ''Put Your Money Where Your Heart Is,'' follows a more inspirational strategy en route to ''portfolio peace of mind.''
An alternative way of approaching things gets explored in ''The Money Book for Freelancers, Part-Timers, and the Self-Employed.'' Its target audience may have no choice but to march to a different personal finance drummer in what the authors characterize as a world of mass layoffs and ever-shrinking benefits.
Here's a look at the new titles:
TITLE: One Year to an Organized Financial Life
AUTHOR: Regina Leeds with Russell Wild
PRICE: $16.95 (paperback)
SUMMARY: The Los Angeles-based Leeds, who dubs herself the ''Zen Organizer,'' takes on finances in her third ''One Year'' book. Her overarching premise is that when things are in order, you'll feel calmer and more inspired.
To help put readers' financial lives in order, Leeds brings in Wild, a financial adviser with a few books of his own. But this book isn't about how to invest or where to stash cash; it's about taking control.
Leeds offers a month-by-month approach written in simple, straightforward language that begins with understanding your relationship with money and moves to decluttering your wallet, briefcase and office space. She offers a schedule for making sense of different topics, from bills to spending, taxes, credit cards and retirement accounts.
There's a chapter for kids and money, and one on controlling holiday spending. And while the book is set up like the calendar, Leeds notes you can start the 12-month plan at any time.
QUOTE: ''Your budget is the foundation of your financial life. Without it you might be robbing Peter -- say your 401(k) -- to pay Paul -- perhaps that four-star vacation you just put on a credit card.''
PUBLISHER: Lifelong Books (Da Capo Press)
-- Eileen AJ Connelly
'Ask The Organizer'
How to Relieve Tax Time Stress
By Regina Leeds, The Zen Organizer
Nothing I have to share is going to make your date with Uncle Sam on April 15th pleasurable. There is something about preparing for one's taxes that is the emotional equivalent of being called to the principal's office when you are in grammar school. (I presume you let a pro do the actual return.)
Let's take some of the sting out of the process. If you have all of your receipts and papers organized, the process is reduced to a few hours of mechanical arithmetic. Let's get started with these easy to follow steps. You will find detailed instructions in all of my 'One Year to...' books.
Space & Time
Be sure you set aside a few hours for tax-time work. If you work in fits and starts it's not only going to take longer, you'll probably make a mess in several spots around your home.
Clear the area you have chosen as your designated work zone. You won't be able to concentrate on your paperwork if the area looks like Katrina just blew through. A good way to tackle this is to set the timer for 15 or 20 minutes. I like to say you want to move as if your hair were on fire. That is the image you need to make your 'Speed Elimination' a success! What are you looking for?
Here are a few of the usual suspects:
invitations to events that have passed
magazines, newsletters and periodicals older than two months
newspapers older than two days
expired coupons
receipts for miscellaneous items you can't deduct on your taxes
department store sales that have passed
duplicate catalogues
Now is not the time to find an old love letter and drink in the romance. Set it aside. It was lost in the debris. It can wait a few hours to find a place of honor.
Cemetery or Power Source
I'm thinking about your file cabinet. This is where you want to store your business files after they are created. What most people have is a cemetery in their cabinet drawers: a monument to past interests, accomplishments and projects. Take some time to clear this out. Your best friends will be a shredder and some sturdy garbage bags.
Create a separate area for material you need to hold onto but not deal with on a regular basis. A prime candidate is 'tax back up' material. Save your return forever but hold onto the back up papers for 3 years if you are a private citizen and 7 if you file as a corporation. Caveat: those are the Federal guidelines.
Each state has its own time requirements. The state of California, for example, requires you to hold onto this material for 4 years. Check with your tax preparer, tax attorney or CPA to be sure you are doing what they suggest.
Tools make the man ... or woman. You want to work with office tools that make you more powerful.
Here are the basic items I get for all of my clients:
manila folders (I save colors for projects)
long tabs
hanging file folders
one box of 'box bottom hanging file folders' in the two inch wide size
a label maker
There are famous organizers who say you should file every file folder alphabetically. I say cluster related items into categories. You will save space. That's what box bottom hanging folders allow you to do.
Here's a practical example. Let's say you have a large family and everyone drives a car. If you have a folder for each vehicle, they will be scattered throughout your system. If you create a category called 'Automobiles,' you will have all the cars in one area - in alphabetical order of course!
It might look like this:
Automobiles (your tab name)
BMW
Camry
Humvee
Mercedes
Saturn
Now all of the paperwork (repairs, purchase, insurance etc.) for each vehicle is in one folder and all vehicles are in one area of the file cabinet. If you have a lot of material you can use more than one box bottom. Just don't go wider than two inches: the material will be too heavy and the folder will tear. We're trying to save time not make more work down the line!
The Bottom Line
If the world of organization has been an area of challenge for you, consider this: getting organized is just a skill. If you wanted to play a musical instrument like the piano, master a sport like tennis or learn how to dance, what would you do? You'd read some good books, find a qualified teacher, practice and hope to reach your individual potential. Getting organized requires the same steps. It isn't solely for those who seem to have been born with a natural proclivity for order. Learning a new skill is one of the best ways to keep our brains active and stay youthful.
There's no time like the present to begin the journey. And "One Year to an Organized Work Life," "One Year to an Organized Life" or "One Year to an Organized Financial Life" will help you create a file system that will make you powerful at home and certainly more valuable at your place of employment.
Every month LAmag.com highlights titles of local interest that are hitting bookshelves.
Here's what's new
Compiled by Wendy WitherspoonLAmag.com, January 2010
One Year to an Organized Financial Life: From Your Bills to Your Bank Account, Your Home to Your Retirement, the Week-by-Week Guide to Achieving Financial Peace of Mind
(Da Capo Lifelong, paperback, $17)
By Regina Leeds and Russell Wild
Leeds, a professional organizer based in Toluca Lake, teams with financial advisor Wilds to makeover your piggy bank in the third volume of her organizing series.
Out: Jan. 1
Feature - Los Angeles magazine
January 2010
These random acts are a sure-fire way to turn that frown upside down
By Amy Wallace, Mary Melton, Kari Mozena
Random (Organized) Act: Penny Wise
Especially after the fiscal disruption of last year, who hasn't been meaning to get their affairs in order? L.A. professional organizer Regina Leeds has a book coming out this month that should help. In One Year to an Organized Financial Life: From Your Bills to Your Bank Account, Your Home to Your Retirement, the Week-by-Week Guide to Achieving Financial Peace of Mind (Da Capo Lifelong Books, 272 pages, $16.95), Leeds addresses the underlying causes of chaos, replacing them with routines. If it sounds Zen, that's by design.
Calgary Public Library
One Year to an Organized Financial Life, by Regina Leeds
How are your New Year's resolutions coming along? Have you - like most - veered off course? If you need a source of motivation, check out One Year to an Organized Financial Life, by Regina Leeds.
There are some books that pepper good advice with hokey anecdotes. This isn't one of them. Instead, every page - really, every page! - includes several sensible, practical tips. One could certainly follow it week by week, but there's no need. It's organized so that anyone can readily find relevant information, whether it's as basic as evaluating your relationship with money, or as complex as playing the stock market.
One Year to an Organized Financial Life is simple, straightforward, and packed (and I use that term deliberately!) with useful information. No pictures, anecdotes, or "filler" material. Check it out today!
Financial 'Zen' here we come
Book Review: 'One Year to an Organized Financial Life'
By Tara-Nicholle Nelson, Tuesday, February 9, 2010.
Inman News
Most financial how-to books start with some sort of inventory or assessment. The experts seem unanimous on the point that you can neither eliminate your money woes nor commence wealth-building until you have an orderly catalog of what you have and what you owe.
However, for so many real estate consumers, the last couple of years have involved simply battling to keep their homes -- more or less successfully, as the case may be. When your home and real estate assets are down in value, all the other elements of your financial life seem secondary or even lower down on the priority list. With all the talks of personal economic recovery as the reigning theme and aim of 2010, though, it's time to get back to basics and revisit the whole picture of our finances. And it's a topic that deserves more than a single chapter.
A little organization can save a lot of money
By Gregory Karp, The Morning Call (Allentown, Pa.)
Jan. 28, 2010
Do you find that money "slips through your fingers" or you're constantly surprised it runs out before the month ends?
That might be a signal that you earn too little, spend too much - or maybe you're simply disorganized.
Poor planning and disorganization can cost you big-time, said Russell Wild, a financial adviser and co-author with Regina Leeds of "One Year to an Organized Financial Life."
"I'm often astonished by people who come in and are well-organized in other areas of their lives but are completely disorganized when it comes to finances," he said. "They're bleeding money."
Poor organization is expensive in countless ways: Credit card late fees and checking account overdrafts. Paying additional taxes. Overspending on last-minute gifts because you didn't plan ahead. Failing to brown-bag a lunch. Not filing for a cash merchandise rebate. Paying for memberships you don't use. Losing out on discounts at retail stores and the supermarket. Paying more interest on loans than you need to.
"Spending time taking care of finances is an investment just like putting away cold cash," Wild said.
Here are tips:
Bill paying: Does your system work? Have you checked out online bill paying? Do you at least have automatic deposit of your paycheck?
Don't be afraid to spend a little money on file folders or a label-maker or other inexpensive tools that will help you stay organized and avoid clutter. Develop a system for keeping receipts. You might need them to return items, file for rebates or claim tax deductions.
Couples should determine clear responsibility for bill paying.
Credit: If you won't get organized about anything else, pay careful attention to your credit cards. Paying interest on balances, incurring penalties and damaging your credit score will hurt your money health. Look up your credit report at AnnualCreditReport.com. Mistakes on those reports are rampant and can lower your credit score, which means you will pay more than you have to for loans. You're entitled to one free report a year from each of the three credit reporting agencies. Pull one every four months to keep constant tabs on your credit.
Shop smart: Disorganized people don't use coupons, store loyalty cards or online promotional codes. They don't seek out store sales, comparison shop or try to negotiate prices. That wastes money. If you haven't re-examined your TV-Internet-phone package, insurance, investment fees and monthly subscriptions, you might be spending more than you need to. "People are busy these days, which leads them to take a default position with their finances," Wild said. "By blocking off time to comparison shop, people can often save a lot of money. I think people tend to overestimate the time involved."
Budget: "Most people know where their money is coming from; few people know where their money is going," Wild said.
For just a few weeks, keep a log of where the money is going. If you mostly use debit and credit cards, much of that spending will be recorded for you on a statement. Don't get hung up on methods. Pencil and paper, spreadsheet, finance software or budgeting Web sites all work.
Armed with real information about spending, you can develop goals, which involves nothing more than answering a simple question: Is my money going where I want it to?
If not, get organized and make changes.
Gregory Karp is a personal finance writer for The Morning Call newspaper in Allentown, Pa. Readers may send him e-mail at greg.karp@mcall.com.
One Year to an Organized Financial Life: From Your Bills to Your Bank Account, Your Home to Your Retirement, the Week-by-week Guide to Achieving Financial Peace of Mind
Author:Leeds, Regina
Publisher:Da Capo Lifelong - The Perseus Books Group
From the "New York Times" bestselling author of "One Year to an Organized Life", this title presents a week-by-week, month-by-month system to improve your finances and ease your money worries by getting organized. Do you continually feel stressed about money? Have unopened credit card statements piled up on your desk? Are you forever losing receipts for items you meant to return? When it comes to personal finances, many of us simply close our eyes and hope for the best. As the world economy tumbles, taking charge of your financial well-being is more crucial than ever. But the steps to clarity and financial security are easier than you might think. "One Year to an Organized Financial Life" is a unique week-by-week, month-by-month plan that makes saving money simple and automatic, not overwhelming. For decades, professional organizer Regina Leeds and financial advisor Russell Wild have helped thousands of their clients get their lives in order. Using Leeds' unique 'Zen organizing' approach, Leeds and Wild now show you the steps to effortlessly: assess your current financial situation; organize your files (plus your wallet and purse); get your bills paid on time; stick to a budget; get out of debt; cut costs while saving time and personal energy; improve your income; save on your taxes; maximize your retirement savings; find the right insurance you need; clean up and sell valuable clutter; teach your kids about money; curb your holiday spending; and, live a calmer, richer life.
Book reviews from Larry Cox
New Self-Help Books for a New Year
by Larry Cox on Jan.08, 2010
One Year to an Organized Financial Life: From Your Bills to Your Bank Account, Your Home to Your Retirement, the Week-by-Week Guide to Achieving Financial Peace of Mind by Regina Leeds with Russell Wild (Da Capo, $16.95)
With the uncertainty of our present economic climate, most Americans need all they help they can get. That help might be as easy as getting organized. Regina Leeds, a professional organizer, and Russell Wild, a NAPFA-certified financial advisor, have designed a week-by-week plan so that controlling personal finances can be achieved with a minimum of pain. Whether you're unsure where to invest, disorganized in your bill-paying methods, or procrastinating it all for fear of what the bottom line might be, this guide will provide the structure needed to get on track. The advice includes how to organize files, determine the right insurance coverage, pay bills on time, clear the clutter, cut costs, and even protect identity and establish a retirement plan. From sticking to a budget to getting our of debt, One Year to an Organized Financial Life is essential and accessible.
One Year to an Organized Financial Life: From Your Bills to Your Bank Account, Your Home to Your Retirement, the Week-by-Week Guide to Achieving Financial Peace of Mind Review
Bankrate Calculator
January 14, 2010
Just released in 2010, One Year to an Organized Financial Life is the latest installment from Regina Leeds, the "Zen Organizer". I've previously read her book "One Year to an Organized Life" and found it a refreshing change in the field of organization. This book continues a winning pattern and expands it to an area where I (and many others) especially need some serious help - our finances.
Overhauling any aspect of our lives can be an intimidating. There are so many things we could do differently. So many small and large habits that need changing. Regina approaches this problem by having us concentrate on only one issue at a time, one per week, over the period of a year. Every month she introduces one key habit for the month, one helpful tool for the month, and then introduces one change or habit each week, in nice bite-sized pieces. Follow through on these easily manageable assignments, and in one year, ta-dah! you're financially organized. Or at least in a lot better shape than when you started.
One of the beauties of this approach is that you can pick up the book any time during the year and start the program. You don't need to start in January (although January would make a great time to start). Some of the months deal with items specific to that time of the year. for example, in November Regina deals with gift-giving, holiday spending and organizing holiday parties and get-togethers economically. The fact that I tend to start thinking about these things in December instead of November is an indication of just how much help I need.
The chapters and assignments give some really exceptional ideas for spending less money, making more money, saving for the future and protecting yourself from life's uncertainties. Regina covers insurance (of all kinds), investments, retirement, college planning, budgeting, entertainment, and the aforementioned holiday spending. In this book, she has a certified financial adviser (Russell Wild) along to supplement her organizational knowledge with expert financial knowledge about such things as various kinds of tax-deferred savings accounts and tax-loss harvesting (if you don't know what that is... you need this book).
When I open up a book on financial organization, I generally expect to hear that I should spend less, save more and make spartan cuts in my lifestyle. Perhaps that's why I don't generally like such books. The ideas in this book, however, are surprisingly fresh. I am getting a lot more new information out of it than I expected. And, like her previous book, Regina doesn't focus exclusively on the mechanics of organization, but also explores and rehabilitates your feelings about financial issues, through such tools as journaling tasks. The goal, after all, of "Zen Organizing" is a feeling of peace and security - not organization for its own sake.
So, if you feel your financial life needs some serious help (we know who we are), this is a gentle program that takes you by the hand and leads you through a year of easy steps to feeling much much better about your economic situation. There are no theories without simple, practical steps. Take the first step and give the book a try.
Good Advice For Organizing Your Finances
Posted in Budgeting by Jen Stryker
January 16, 2010
Is one of your New Year's resolutions to get your financial house in order?
Check out a new book called One Year to an Organized Financial Life: From Your Bills to Your Bank Account, Your Home to your Retirement, the Week-by-Week Guide to Achieving Financial Peace of Mind by Regina Leeds and Russell Wild.
It will change the way you manage your money and set you on the road to financial security.
Leeds (a professional organizer) and Wild (a Certified Financial Planner) pack a lot of information into a book under 300 pages. They never dive too deeply into a sea of financial jargon, either, so if you're a newbie to this money-saving game, you will understand this book.
The March section is particularly helpful, especially week one, which is about what tax-related information you can save or shred.
June and July are on point in describing how to prepare to retire, and if you're looking to cut back, flip immediately to April (Spend Less, Save More) and August (Refinance and Downsize Options) - plus September if you have kids (Children and Money).
What don't we like about the book? It's big on organizing. Huge. Annoyingly so if you aren't big on what's proper feng shui or Zen when it comes to the placement of your desk.
Leeds has written other books, including One Year to an Organized Life and One Year to an Organized Work Life. She views "unorganized people" with the same distain I usually reserve for Bravo's "Real Housewives".
January (time to take control) is so full of hanging file folders, slotted tabs and Container Store mentions that we wonder if they're paid endorsement fees.
And if you're drowning under financial stress and have no idea how much you have, owe and what interest you're paying on your debt, advice to re-paint your office and remove family photos from your desk (yes, really), aren't going to help.
Some of the tips and advice are un-finance related, too, and more comments about lifestyle than money. If I've shoved my credit card statements in a drawer for the last three years and had collectors calling me all day, do I really need the advice to drink more water?
Oh, and please disregard the book's advice to sign up for overdraft protection. Don't do it. Here's why.
So here's what we recommend. Since the month is already half over, read through the January chapter. Maybe it'll speak to you. Maybe it won't. Not everyone works in a zone of perfect organization, nor should everyone spend days on making a Zen-approved office.
February is where you should start to pay attention.
The authors also admit that they're not doing in-depth analysis of these topics, so if you want to know more about a chapter, your best bet is to get an entire book on the subject.
Two we'd recommend are Suddenly Frugal: How to Live Happier & Healthier for Less by Leah Ingram if you're looking for a book on cutting back, and 10 Laws of Career Reinvention by Pamela Mitchell if you want more information on how to make money from your passions.
Stress Less: How to Conquer 5 Life-Changers
By Michele Bender, Special to Lifescript
Published January 22, 2010
Even life's small events - a water leak, the revised deadline - can make you frazzled. And big, life-changing situations, like moving, breakups or losing your job, bring real turmoil. But constant stress doesn't have to wear you down. Find out how to tackle life's 5 toughest moments with more calm. Plus, how do you handle difficult emotions? Test yourself with our quiz...
The only sure thing in life is its unpredictability. And when you're already juggling kids, hubby and work, unforeseen events - good or bad - only pile on the stress.
Believe it or not, short-term stress helps our bodies, prompting a fight-or-flight response from the nervous system that revs our heart rate, blood pressure, breathing and even our sweat glands. It's what puts the "go" in our get-up-and-go, allowing us to accomplish tasks.
But chronic stress is a different story: It puts your body's motor in constant overdrive, raising your risk for heart disease, diabetes, autoimmune disorders and even obesity.
So how can you stay cool and collected when life shakes you up?
For starters, manage your reaction. How you respond largely determines how well you fight off chronic disease.
How you view the problems in your life "is more important than the events themselves," says Philadelphia-area psychotherapist Dana Lightman, Ph.D., a motivational speaker who has developed a program called POWER Optimism.
We asked experts for their advice on managing 5 real-world situations. Read on... and breathe deep:
1. Moving
You or your partner just got a new job and you have to relocate. Whether you're headed across the county line or country, moving tops the list of life's biggest stressors.
That's because "there's comfort in the 'same old, same old' that gets shaken up," says professional organizer Regina Leeds, author of seven books, including One Year to an Organized Life (Da Capo Press).
Moving makes us "re-adjust our relationship with the world, which can be scary," she says.
Self Help
Dollars and change
By Caroline Leavitt
Globe Correspondent / February 21, 2010
Looking for some advice you can really take to the bank? To understand money matters, you might want to invest in "The Cartoon Introduction to Economics: Volume One: Microeconomics" by cartoonist Grady Klein and economist Yoram Bauman, which not only helps clarify a difficult subject for students and lay people, but is also uproariously funny, practical, and relevant.
Understanding economics can help you win that Persian rug on eBay (use automatic bidding to shade your bid) and explain part of the reason even healthy people can't get health insurance at a reasonable price (companies can't predict who will be sick and who will stay healthy, so they employ the theory of adverse selection to charge more in order to cover the expected costs of everyone). Klein's exuberantly puckish drawings use pirates, cavemen, hippies, and mad scientists to make complex economic concepts like risk and game theory and competitive markets a hoot, while Bauman, an entertainer who explains the economy at comedy clubs and universities across the country, makes the topic so cool and entertaining, you'll want to pre-order the upcoming Volume Two.
Once you've got this basic understanding of economics, you may want to grab "One Year to an Organized Financial Life: From Your Bills to Your Bank Account, Your Home to Your Retirement, the Week-by-Week Guide to Achieving Financial Peace of Mind" by certified financial adviser Regina Leeds. A nuts-and-bolts guide to organizing your files, paying your bills, and cutting costs and clutter, the book uses what Leeds calls a Zen approach, creating an environment and financial system that not only nurtures, but offers week-by-week routines and habits-of-the-month (like writing expenditures down) that can help you control your finances. Her advice is simple (create a set place for items that are always being lost), practical (check your phone bill because you may be paying for services you don't need), and essential (she includes a template for a living will). Calm and empowering, this handy guide is so well thought-out that just leafing through the pages might make you feel more in control.
Finances can be an equal-opportunity thorn in both male and female sides, but two books opt for an intimate "just among us girlfriends" slant. "Get Financially Naked: How to Talk Money With Your Honey" by personal finance experts Manisha Thakor and Sharon Kedar advises women on the havoc poor financial planning can wreak on a relationship. Women often avoid discussing finances with their partners, say the authors, because they find it stressful, boring, or awkward, but financial compatibility is part of being a couple. The authors guide you through getting your financial house in order, right down to how much home you can really afford, where your money drains are, and how to talk to your significant other so you're both on the same page about saving, spending, and your financial futures. Frank, witty, and filled with quizzes and worksheets, this invaluable little guide reveals that when it comes to using four letter words you really need both "love" and "save".
Although being called a bitch every few pages may be a little off-putting to some readers, author Rosalyn Hoffman in "Bitches on a Budget: Sage Advice for Surviving Tough Times in Style" means it to be an empowering term for tough-as-manicured-nails women who know what they want and aren't afraid to go out and get it. A former buyer for Bonwit Teller and Lord & Taylor, Hoffman advises women on how to be both fiscally responsible and utterly fabulous, with tips that are thrifty, ingenious, and still manage to feel like indulgences. Shop for looks, not labels, she urges, by cruising expensive stores for styles and then finding facsimiles at cheaper places. Color your crowning glory at home or trade in cabs for car sharing, public transportation, or bikes. Forget pricey theater tickets and hit free cultural events. "Bitches on a Budget" is all about living in style without breaking the bank.
Dealing with money can carry all sorts of baggage, but those stresses don't have to rule and ruin your life. "Mindsight: The New Science of Personal Transformation" by Daniel J. Siegel, UCLA clinical professor of psychiatry, explores how our emotional responses are not as hard-wired as we think they are. Siegel promotes what he calls "focused control," a method to sense and then alter emotional storms. By paying attention to a difficult moment without being swept up in judgment, you can begin to realize that emotions are just neural firings that you can keep in check. Full of remarkable case histories of people who used this system to control borderline personality disorder, depression, and addiction, this revolutionary book can make you look at your feelings differently, one investment that can pay untold dividends.
Caroline Leavitt's ninth novel will be published by Algonquin Books in August. She can be reached at www.carolineleavitt.com.
Review: One Year to an Organized Financial Life
Published to Financial Advisers
Every other Sunday, The Simple Dollar reviews a personal finance book.
The title of this book pretty much sums it up.
One Year to an Organized Financial Life by Regina Leeds basically lays out a week-by-week plan for getting your financial house in order. The book is divided into twelve chapters (months), each containing four subsections (weeks in a month), and each of those sections details how to take control of a specific aspect of financial life.
The end result is something that feels very much like a detailed plan to follow. Personally, such a plan gives me mixed feelings - while it's great for a person who just wants to be told what to do, I'm a big believer in understanding your finances and your motivations and, at times, this book feels more like a "just follow these steps" kind of guide than a "understand what you're doing" book.
The big question, though, is whether the information is worthwhile. Let's dig in.
January: Take Control
More than anything, this opening chapter focuses on information management. Quite often, people's personal information is in a very unorganized state, with cards and receipts jammed in purses and papers tossed into boxes and filing cabinets. The solution? Start from scratch. Clean out your purse and figure out a good place to put that stuff. Start a real financial filing system. Even more important, go through your mind and start asking yourself why you make the choices that you do.
February: Assess Your Finances
This month is all about creating a budget. The process is standard by now: record all of your expenses, then parse them into groups that make sense to you, then from there figure out what you should be spending in each category and shoot for that new target. My concern here, though, is that to set up a really accurate budget, you need more than just a month. You have to record your expenses over a longer period of time than a mere month to get an accurate grasp on your money. Although the procedure here makes sense, stuffing it into such a short timeline does not.
March: Get Ready for Taxes
This chapter summarizes the process of doing your taxes. Collect your documents and your relevant receipts. Decide whether or not to use a professional or do it yourself. Then, take the plunge - fill out the paperwork and file. It's a process that most of us (painfully) have to go through each spring. A big key suggested here is to start a filing system now to store all tax-related documents throughout the year so that when you do your taxes the following year, all of the receipts and other materials you need are ready to go.
April: Spend Less, Save More
Frugality is the buzzword here. This chapter focuses strongly on cutting your expenses - much of the advice is right in line with the ongoing "Trimming the Average Budget" series on The Simple Dollar. Hand in hand with that kind of trimming, though, is the need to actually save what you've been cutting, because the tendency often is to take that money and spend it on things that you seemingly couldn't afford before, thus raising your standard of living and sticking you right back in the spot you started in.
May: Borrow Smart
Leeds covers the ins and outs of borrowing money here, largely supporting the good debt, bad debt dichotomy. The advice is smooth and straightforward: trim the "bad debt" (high interest debt) as quickly and efficiently as you can and don't take on any more of it. Leeds does subscribe to the idea that "good debt" is largely good and mostly focuses on shopping around for home loans and auto loans, but as time goes on, I'm less and less of a fan of any kind of debt.
June: Build a Nest Egg
Retirement savings are next. Leeds' advice is pretty straightforward: max out your 401(k) and then run the numbers to see if you need even more using a reliable retirement calculator. She also advises against underestimating what you need for retirement, making it clear that you're better off with more than you need at retirement time than not enough.
July: Make Long-Range Financial Plans
What about your other long-term savings goals, like saving for your dream home? Leeds encourages most people to get a financial advisor for this task. On the other hand, given the great tools available on the internet, I think that most people today can actually handle their own long-term savings. The big keys are to make sure you've clearly specified your goals and to automate your savings so that it's building on a regular basis over time without your manual intervention.
August: Refinance and Downsize Options
Sometimes, the old home mortgage gets to be overwhelming. In those times, refinancing and downsizing are two choices that people usually consider, and Leeds walks through these optiosn here. Ideally, of course, the tactics from the earlier chapters have put you in a better place with your money so that this isn't a worry. A big key: maintain your good credit. Put a priority on maintaining a high credit rating and things like refinances will go much easier - plus you'll find that your insurance rates are lower.
September: Children and Money
This chapter is of particular interest to me, since I'm a parent and I enjoy reading ideas for teaching good money values to my kids. Leeds suggests giving your child as much practice as possible with managing their own money, from an allowance to a job in their teen years. For college, parents should start a 529 as soon as possible and, perhaps more importantly, should get their children actively involved in saving and preparing financially for college.
October: Protect Your Assets
Here, the book felt perilously close to insurance salesmanship, as several different types of personal insurance are pushed hard. Leeds also encourages people to pay more in order to lave lower deductibles on their medical bills, which actually is a policy that I feel runs contrary to the advice given elsewhere in this book. After all, when you have your financial house in order with a nice emergency fund, you can afford the higher deductibles, so you should save on the premiums if you can on your health insurance.
November: The Season for Sane Spending
How do you keep your holiday spending under control? The best way to do it is to plan your shopping carefully. Instead of heading into the store with a head of steam and a big list, spend some time coming up with great gift ideas for each person you need to buy for, then researching how to get those items for a great price. Don't let your impulsiveness run the day or you'll find yourself spending a lot more than you ever intended to spend.
December: Year-End Money Moves
Most of the year-end money moves involve reviewing your spending and financial activity over the course of the past year (an awesome idea) and preparing for your taxes by doing things like harvesting any investment losses by selling now and making sure your charitable contributions are taken care of and adequately recorded (another great idea). In short, you should end the year by making sure all of your ducks are in a row and ready to set sail for the next year (and the coming tax season).
Is One Year to an Organized Financial Life Worth Reading?
One Year to an Organized Financial Life doesn't offer many new ideas, perspectives, or angles on personal finance. Instead, what it offers is a clear organizational scheme - a very thorough step-by-step plan for people who simply prefer to have a plan to follow. In that regard, One Year to an Organized Financial Life is a home run.
I think what it comes down to is this: do you learn better by figuring things out for yourself, or do you learn better by following the patterns that someone else has set in place? If you're in the former group - and I'd put myself there - One Year to an Organized Financial Life won't do much for you. If you're in the latter group, One Year to an Organized Financial Life will be an incredibly useful read.
One Year to an Organized Financial Life depends more on the reader than on anything else, as it provides exactly what the cover promises: a one year, step-by-step plan to financial organization.
Submitted on January 24, 2010
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http://ownthedollar.com
http://dianeschallenge.blogspot.com/2010/06/my-beautiful-bedroom-sanctuary-at-last.html
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