Twila Van Leer

Spring Is Great Time To Do Digital Cleaning

May 14, 2016 By Twila Van Leer

Add digital spring cleaning to yearly to do list.

When the spring cleaning mode is upon you, don’t stop with the house, garage and closets. It’s a good time to get rid of digital clutter and assure that you are hacker-safe.

Change Passwords

Look over your passwords and change them if it’s been awhile. Remember that the more complicated and lengthy a password is, the more difficult it will be for an unscrupulous hacker to replicate it. Passwords should contain both letters and numbers.

Don’t Use Family Data For Passwords

Avoid using kids’ birthdates or names or any other reference to family data. Remember the hackers regularly troll for such connections. People still are tempted to use obvious combinations such as Password123, but that’s just making it easy for the hackers. Update software and examine your personal information on devices and online. Passwords, even the tough ones, should be changed every few months. Recycling an old one may seem an easy solution, but the longer it has been around, the easier it will be for the crooks to find it.

Use Different Passwords For Important Accounts

Don’t use the same password for routine family business, such as school sites, etc., as you use for your banking account. Multiple-factor identification that require a second form such as a code texted to your phone, gives extra protection. If it seems that all this is getting too complicated, consider a password management service such as LastPass or DashLane.

Back Up Your Information

Ransomware is one of the latest ploys hackers use. If they are able to lock down your computer, they will threaten to wipe your data unless you pay them not to. The problem often arises from malicious software resulting from clicking on a link in a phishing email or through fake online ads. For a monthly fee, you can back up your data through services such as Carbonite. Mac and Windows PCs have tools for backing up to external drives. The Mac version is Time Machine. Windows 10 has Update & Security and Windows 7 Systems and Security or System and Maintenance. Unplug the drive after each backup to prevent malware creeping into the copies.

Keep Software Up To Date

New versions fix flaws that give hackers entry into your device. This applies not only to operating systems, but to apps such as browsers and media players. Most software now comes with auto-updating features. Get rid of software you aren’t using any longer. Don’t forget your wireless router and the assorted “Internet of things” devices, Consult the manufacturers’ website if you have older equipment that doesn’t automatically update or allow you to do it through a phone app.

Restrict Social Media Accounts

Lock down social media accounts by restricting posts to actual friends. But even if you restrict your audience, just assume that what you are posting will be seen by everyone everywhere. For one thing, employers may be checking Facebook or Twitter for information about a potential employee. Don’t be embarrassed by what you have posted.

Make The Best Deals On Discounts

May 13, 2016 By Twila Van Leer

Learn how to get the best deal at discount stores. — Learn how to get the best deals at discount stores.

Discount stores, such as T.J. Maxx and Nordstrom Rack and others, exist to offer bargains, but a little savvy on your part can multiply the benefit. You can save an average 60 percent on brand name goods, even in season if you follow some simple suggestions,

The discount stores saw a real boom during the Great Recession More than 1,000 stores have been added to the rosters of major providers such as Marshalls, HomeGoods and T.J. Maxx since 2009, bringing the total to more than 4,000.

Sales topping $5 billion in clothing and footwear alone have been reported, a 40 percent increase since 2009, according to RBC Capital Markets, and the figures continue to climb.

Seven Tips To Help You Get In On The Trend

Shop Frequently And Do The Research

At least once a week, check out what’s going on at your favorite discount stores. Have in mind up front what look you are hoping to cultivate. The stores receive new merchandise almost daily.

Time Your Buying

Become acquainted with a favorite clerk or the store manager. Each store has a rhythm as to what merchandise will be featured and when. They will be glad to share that information. Sign up with the store’s Twitter and other social media so you’ll receive alerts. Expect the discount outlets to be a few weeks behind the traditional stores, when they receive what is left from the parent store’s sales. This is especially true of winter holidays.

Sign Up For Loyalty Programs That Offer Extra Savings

At Saks Off, for instance, regular customers get updates and extra savings by signing up for the More program on the website. TJX’s loyalty program sponsors an occasional give-away and some private parties in which you can get first chance at discounted merchandise. The TJX Rewards card offer a $10 added bonus for every $200 you spend.

Look For The Real Thing

More than half of the merchandise offered in the discount outlets is made specifically for the company, many of the items brand name quality. The rest of what you find in the store is excess inventory from brands or full-price retailers. If you see many racks of a specific brand with good variety in sizes, it is likely the goods were created for the chain. Check seams for quality. Some of the outlets don’t buy merchandise made for the off-price stores, offering only items designed for full-price stores or the best of their clearance goods. Macy’s new Backstage products fall into this category.

Study Prices

Don’t rely solely on the manufacturer’s suggested list price. It may be inflated to make the discount look better. Compare prices of the item you want and what they actually sold for on Amazon.com and other websites.

Inspect For Flaws

The off-price stores have largely stopped being outlets for damaged merchandise, but it still pays to look carefully. Check expiration dates for food and beauty products and examine clothing for holes and snags in the material. If you detect a flaw, but think you could live with it, ask for an additional discount.

Stay Reasonable

Faced with racks and racks of items with deep price cuts, don’t be tempted to overspend. Stick to your allotted budget and buy what you really need, not items you merely crave because of the discounted price. A bargain is no bargain if it is never used.

Quit Making Excuses. Be Debt-Free

May 3, 2016 By Twila Van Leer

Quit making excuses when it comes to eliminating debt. — Making excuses only keeps you in debt.

Excuses are one of the most available of commodities. Easy to find. Easy to use. But if they are what’s keeping you from becoming free of debt, ditch them and get on with making your personal finances more healthy.

Sometimes, it’s attitude more than finances that keep you shackled to debt. Some self-examination of your beliefs may convince you that you can do better. Here are five common reasons that people stay debt-bound:

I Deserve It

This attitude leads some people to opt for a pricey vacation or a new car of electronic gadget (on credit, of course) that would require only a swift glance at the budget to see it is clearly out of reason. What you’re really saying is “I deserve to be in debt.” And it’s true. The result, however, is more stress, less savings and planning for retirement.

I Don’t Know Where To Start

If you don’t want to look honestly at your debt and accept responsibility for it, this may be the point at which you stop trying. It can be overwhelming to see what a mess you’ve created. But there are some options to consider. Debt consolidation may give you some more wiggle room. Balance transfer credit cards may offer lower interest. Or go to an expert for help. You have to be willing to face the magnitude of your debt load, but keep always in mind that things will be better if you get a handle on it.

I’ll Deal With It Later

The procrastination approach is just another excuse. Waiting for a better job, for your rich uncle to die and leave you wealthy – whatever allows you to delay the process will do just that – delay the process. This is one of those situations in which there’s no time like the present to act. It falls into the same category as the “I’ll diet next week, as soon as the company party is over” delaying tactic.

I Only Need To Make The Minimum Payment

Paying as much as you possibly can on credit card or other debt is a wise move. They longer it takes to pay off a balance, the more interest you pay and the longer you are burdened with the debt. Don’t look at your monthly statement and focus on the lowest figure that catches your eye. Adding a little extra to each payment, even if it is a small amount, will erase the debt faster. And of course, adding to the balance faster than you pay it off will leave you scrambling forever. You damage not only your current financial state, but may rack up less-than-satisfactory credit reports.

I’m Not Responsible

Placing blame on other people or circumstances, even emergencies, is the ultimate excuse. It allows you to refuse to accept responsibilities for your actions. Emergencies happen to all of us and do, inevitably, require changes in financial arrangements. Many creditors recognize genuine budget stress and will cooperate. But too often, debt is caused by trying to live like an upper-class family on a middle-class paycheck. When you get serious about debt reduction, you may have to steel yourselves to bypass your favorite high-end shopping outlets, avoid friends who tend to encourage free spending, and economize on things like eat-out lunches and high-cost entertainment. The best thing you can do is accept that your debt is your debt and you are responsible for it. Getting control of it may be the best feeling you’ve ever had.

Be Aware Of Health Insurance Glitches

May 2, 2016 By Twila Van Leer

A large percentage of insured Americans receive unexpected bills. — Check to see if your medical appointments are covered by your insurance company. Don’t let your bill be a big surprise.

If you thoroughly understand every twist and turn of your health insurance, you’re one of a rare minority in America. Insurance plans have become so complex it’s hard to tell when you might be stepping outside your network’s coverage.

Unexpected fees

When you are recovering from a medical procedure is not a good time to learn. Unexpected fees might add to the misery. The problem is huge. Nearly a third of insured Americans who have financial difficulties can blame part of the problem on medical bills they were not anticipating, according to a survey conducted by the Kaiser Family Foundation.

Unexpected bills

Some 70 percent of those who received unexpected bills didn’t understand that they were receiving services outside their insurance parameters. Problems often occur when there is a hospitalization in which a number of health professionals are involved. Payment guaranteed to your primary care physician often does not extend to emergency care doctors, anesthesiologists, radiologists and others who provide services.

Out-of-network services

A New York study in 2011 showed that the average cost of out-of-network services was $7,000. Often, medical costs are accrued in an emergency, so it is not likely the patient will be able to ask if those who take over his/her care are on their covered network. They are at the mercy of the system.

How to protect yourself

If you know you are being hospitalized in advance, call the hospital and try to determine who will be involved in your care and if they are part of your network. It isn’t foolproof, since the hospital may not know in advance which individual in a group of experts will take care of you. Also, ask that necessary tests done outside the hospital be sent to network providers.

Call your insurance carrier

If you’ve made those efforts and they don’t fully protect you from unexpected bills, the first thing you should do is call your insurance carrier and tell them the circumstances. Some employer-sponsored plans have policies that consider charges that were made without the patient’s understanding, particularly if they occur during an emergency. Your insurance company may be willing to negotiate with the providers for a lower charge.

Consumer protection agency

See if your state has a consumer protection agency that deals with medical payment issues. At least 10 states do have a program that will help consumers who are hit with unexpected medical charges.

Changing the laws

Experts who have made in-depth studies of the problem say that it will take changes to several laws, usually at the state level, to address the issue. New York has taken steps to protect patients in such instances. Its’ law does not eliminate the fees, but requires the insurance carrier and providers to negotiate.

As the scope of the problem grows, it is likely that resolutions will be sought. In the meanwhile, the majority of patients who are billed for out-of-network services have little recourse except to pay the bills.

On-Demand Workers: Be Aware of Tax Issues

May 1, 2016 By Twila Van Leer

Tax issues with on demand workers. — Uber workers are considered self-employed and have to set aside money for taxes.

If you make your living doing on-demand jobs, defined by the Internal Revenue Service as an “online marketplace or application that connects free lance providers with customers,” you need to be aware that Uncle Sam will tax your income.

About 10 percent of the U.S. workforce falls into this category – some 14.6 million people. It’s a business and is regulated by the same tax requirements that apply to more usual businesses.

Set Aside A Portion Of Your Income

The smart thing to do is set aside a portion of your income through the year so the April l5 deadline doesn’t catch you by surprise. For instance, people who drive for Uber or Airbnb or otherwise routinely do jobs that are on-demand, may be considered independent contractors. They are likely to receive a 1099 form reporting their income, rather than a W-2. And since there is no automatic withdrawal of taxes, the individual is responsible for keeping track and anticipating tax charges.

Self-Employment Tax

Not only are these self-employed persons responsible for routine taxes, they also may be required to pay a self-employment tax, which has been imposed by the IRS as payment for Social Security and Medicare.

Keep Track Of Possible Deductibles

Anticipating taxes should prompt on-demand workers to keep track of possible deductibles. Drivers, for instance, can deduct the costs of car washes, providing water or snacks for passengers, etc. Accurate records will be invaluable when you sit down to fill out the tax forms.

Schedule C

Schedule C is the form you need to report profit and loss from business income. SE is used to compute the self-employment tax.

Rental Income

Some people add to their income by renting out their home for special occasions. Think Super Bowl. They may realize big bucks for their efforts, but the income is taxable. A one-shot rental is not taxable, but two or more triggers taxes. If you rent your home out for 15 days or longer, you must start to report the rental income and the particulars associated with the rental, such as deductions for utility expenses, etc. That means you have to separate your own expenses from those associated with the rental.

Making estimated tax payments through the year will help fend off the shock you might experience when it comes time to file.

More information is available through Publication 334, the IRS Tax Guide for Small Businesses. Publication 527 focuses on rental income and expenses and Publication 463 offers guidelines on the use of your vehicle for business purposes.