This page features articles on how to manage your money, insurance, and other financial planning tips, as well as local resources.

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(MS) — While politicians might be wary of admitting it, the nation seems to be in, or at least headed toward, a recession. In April, real estate information firm RealtyTrac reported foreclosure filings spiked 112 percent in the first three months of 2008, resulting in 155,000 families losing their homes to foreclosure over that span.

While the housing crisis is definitely a concern, the prospect of a recession is causing a stir in other areas as well. In the business world, a recession almost always leads to layoffs. While it might seem as though small business would suffer most in a recession, that’s not necessarily true. Analysts often note that the smaller the business is, the more capable it may be of surviving a recession. Unlike their larger counterparts that boast a hierarchy of employees and high overhead, small businesses are often more flexible. Also, small businesses tend to have more personal connections with their customers, a definite advantage when money starts getting tight. Small business owners looking to cultivate those customer relationships should consider the following tips.

• Do whatever it takes to keep customers satisfied. While it might be one-sided, customers are more likely to share an unpleasant experience with a business than they are a positive one. Consumer surveys note that a person who has had a negative experience with a company will tell roughly 10 people. During a recession, consumers place a greater emphasis on getting their money’s worth, so hearing a friend speak negatively about a local business could have a very negative impact on that business’ chance to gain new customers. When money is tight, small businesses should emphasize to employees the increased importance of satisfying all customers and keeping both the regulars and any new clients as content as possible.

• Increase trusted employees’ decision-making power. If a customer has a question but the owner or manager is not in, that could lead to a lost customer. By giving trusted employees the power to make certain decisions, such as whether or not to offer discounts on larger purchases, small business owners could be keeping customers they might otherwise have lost. In addition, customers will respect a staff that’s experienced enough to have several people capable of making decisions, and are more likely to return as a result.

• Keep track of any complaints. While some customers seem born to be difficult, it’s good to treat all complaints in the same way and to keep track of all customer complaints or problems. If the same complaint is brought up time and again, it’s not an aberration but rather a trend. A negative trend will result in diminished business even during boom times, and especially during a recession.

A second element to keeping track of complaints is the chance to develop an effective means of complaint management. Customers often appreciate the personal touch smaller businesses offer, and that includes a more empathetic approach to addressing complaints. Make your complaint management approach as personal as possible.

• Image is important. During a recession, many people cut back on their spending. That said, when people do decide to spend money, they want to get the most out of their money. A professional appearance and image makes a business seem more credible. Discuss with employees how they and their appearance are integral to the company’s success. Make sure facilities are clean and safe, and make sure employees present themselves in a professional manner, both in how they speak and how they dress. TF087060

(MS) — The summer season is one many people anticipate. A chance to get out, soak up some sun and generally relax is what summer is about for people across the country.

For homeowners and apartment dwellers responsible for paying the energy bill, summer is also a time to expect higher monthly expenses. According to the U.S. Department of Energy (DOE), roughly 45 percent of a homeowner’s utility bill goes for heating and cooling. Much of that is due to the use of air conditioners in the summer months. But there’s no reason for the rise in temperatures to automatically result in a rise in your energy bill. The DOE offers the following suggestions for keeping your energy bills down this summer.

Be wise with appliance usage. Air conditioners are not the most energy efficient appliances in a home. But that doesn’t mean they cannot be used in an efficient manner. Rather than cranking the air conditioner at full strength, place it on a lower setting and then use a fan to help spread the cool air throughout a home.

Another way to get the most out of your air conditioner while keeping bills low is to buy one with a programmable thermostat. Such air conditioners often have the ENERGY STAR® logo, and the temperature will adjust as the temperature changes throughout the day. Such energy efficient air conditioners can save users up to 50 percent on their cooling bills. When using such an energy efficient air conditioner, keep certain appliances, such as lamps or televisions, away. The heat emitted from these items will only fool the air conditioner into thinking the room is hotter than it is, thereby negating its energy-saving capabilities.

Make subtle changes around the house. Trimming some fat off the summertime energy bill doesn’t have to require taking drastic steps. Instead, several small changes can add up to big savings in the long run. For example, air dry dishes rather than using your dish washer’s drying cycle. Other small changes include:

• use the microwave or backyard grill instead of the conventional oven

• turn off the computer and monitor when not in use

• wash clothes in cold water

• lower the thermostat on the hot water heater

• plug home electronics (i.e., TVs, stereos, DVD players) into power strips and turn those strips off when not in use

Put your windows to work for you. Using your windows effectively can go a long way to helping lower energy costs. Sunny windows make the air conditioner work two to three times as hard, so install white window shades that will reflect sun away from the house. In addition, close south- and west-facing curtains during the day to keep the temperature down. Reflective films can also be applied to south-facing windows to reflect sun away from the house.

To learn more about conserving energy and saving money around the house this summer, visit the Department of Energy Web site at www.doe.gov. TF087046

(MS) — If one were to conduct a quick poll of people across the country about the one thing they’d like more of, chances are the majority of respondents would reply “money.” More than time or days off from work, most people seem to want and even need more money, especially as the country approaches a recession.

So what is it about money that proves so elusive to so many people? More often than not, it’s not the money that’s elusive, but saving the money. Most people would admit they have trouble saving money, which can create the illusion that they don’t make enough. For most people, not making enough isn’t the problem; it’s not saving enough. This sets a bad precedent, especially for those with an eye on retirement. In a 2007 analysis of surveys conducted into defined contribution plans such as 401(k) retirement programs, Watson Wyatt Worldwide found that, among lower pay employees ages 50 to 64, 66 percent have lower than one year’s pay in their accounts. Barring a miracle, that makes the idea of a comfortable retirement almost impossible.

While saving money can seem like pushing a boulder up a steep hill, it’s not as hard as it sounds. For those looking to save more, consider the following tips.

• Enroll in a retirement savings program: This is perhaps the ideal way to save money, as programs such as a 401(k) remove the money from a paycheck before taxes. Essentially, that money is being saved before an individual can even see it, acting almost as forced savings. In addition, employers may match 401(k) contributions up to a certain level, meaning you’re saving even more money. Those who do enroll in a 401(k) program should not look at it as an emergency fund, as there are tax penalties for removing the money early.

• Use public transportation whenever possible: Most people have seen their automobile expenditures skyrocket over the last several years thanks to the ever-rising cost of fuel. Also, people with low balances in their savings accounts often cannot put a large down payment down on a new vehicle if they need one. Therefore they have higher monthly bills and are typically only approved for vehicle loans after agreeing to higher interest rates. Essentially, it’s a domino effect that can all be avoided if reliable public transportation is offered. You can still keep your vehicle, but using public transportation to get to and from work will result in less money spent on gas, less mileage on the car (increasing its life expectancy and decreasing repair expenses), and will likely lower your insurance rates if you inform your provider the car is not used to commute to work.

• Cook and prepare your own meals: Many people waste a good deal of money on a daily basis by eating meals outside of their home. Cooking or preparing your own meals is a consistent way to save significant amounts of money each month. Instead of buying a muffin or bagel each morning for breakfast, buy such items in bulk at the grocery store each week, and prepare your own lunch as well. Coffee drinkers can also save substantial amounts of money by brewing their own coffee at home and taking it to work in a travel mug. It might seem like a small adjustment to make, and it is. But it will save you substantial amounts of money each month.

• Drink lots of water: While it might seem odd to suggest drinking lots of water as a means to save money, it actually makes more sense than it might seem. A notable symptom of dehydration is hunger, so people who do not drink enough water often feel hungry when they’re likely just dehydrated. By drinking the recommended amount of water, you’re avoiding spending money on those mid-afternoon snacks, the price of which adds up by the end of a typical week. Medical professionals recommend drinking eight to 10 glasses of water per day, or about 80 ounces.

• Avoid hidden fees and pay bills on time: Creditors and lenders make money hand over fist each month thanks to late payments or hidden fees. If your accounts have minimum balance requirements, know what the minimum is and make sure you have enough in the account to avoid the charges. Also, use only ATMs from your actual bank. ATM fees add up quickly, and some banks even charge their own customers ATM fees for using another bank’s ATM, meaning you’re paying double the fee simply to access your own money.

Bills also must be paid on time. Late charges, particularly on credit cards, are often exorbitant and are always wasteful. Know when all bills are due and be sure to pay them on time. EL086888

(MS) — Though the exact number is difficult to pin down, the percentage of single parent homes in the United States is growing. In 2002, the U.S. Census Bureau (USCB) reported that three out of every 10 children being raised in America was living in a single parent home.
With the cost of just about everything on the rise, getting by for many single parents is harder than ever. But while some single parents might feel financial planning is a luxury they simply cannot afford, in fact it’s one they must afford. With no second income to fall back on, single parents could very easily find themselves in a difficult situation in the case of an emergency or accident.
• Secure your earnings. While most single parents are aware of the need for life insurance to provide for their children in the event of the parent’s death, what about in the case of an injury that doesn’t result in death? Relying solely on disability insurance through an employer is a risk many single parents simply cannot afford to take. Typically, such disability insurance only replaces 60 to 70 percent of income — and that’s before taxes.
To put that into perspective, a single mother who makes $5,000 per month before taxes can expect that income to shrink to, at best, $3,500, and more likely closer to $3,000 if she’s forced to go on disability. Taxes will decrease take-home to even less than that. In that light, most single parents without a considerable reserve of cash would admit that a major injury that forces them to go on disability could spell disaster for their family.
To avoid such a fate, single parents should secure their income with an individual disability policy. Such policies can be tax-free and inexpensive. For those with sufficient disability policies through their employer, an additional individual policy to replace 20 to 25 percent of income should be sufficient, and not very expensive.
• Build an emergency cash stash. Particularly for single parents of young children, it’s impossible to predict what lies around the corner. Kids get hurt, need braces, grow out of their clothes — the list goes on and on. To prepare for these “surprises,” sock away any extra cash that surfaces each month in an interest-bearing account.
While many parents fret about the cost of a college education, and do their best to put as much money away for college as possible, this shouldn’t be a chief concern to single parents. Single parents who don’t earn exorbitant salaries should expect their children to receive substantial financial aid packages, reducing the urgency of saving for college. While it’s never a bad idea to save money for college, it’s imperative single parents have access to cash in the inevitable case of emergency, and this should come before saving for college tuition.
• Consult the IRS. While many hear the letters “IRS” and look for the quickest way to run in the opposite direction, the Internal Revenue Service (IRS) is actually an ally to single parents. Numerous tax breaks exist to make things easier on single parents, including credits for day-care, dependent exemptions, and child support breaks. Unfortunately, many single parents are just too busy to even know that these tax breaks exist. To learn more, visit the IRS Web site at www.irs.gov. FP085792

(MS) — Over the last half century, technology has done much to make life easier. From microwave ovens to iPods, electronic technology has affected nearly every aspect of life, be it cooking dinner or how we listen to music.
Though technology has produced many benefits, it’s also left those who rely on it more susceptible to identity theft, a relative non-issue at the beginning of the 20th century that quickly became a genuine concern around the turn of the century. With more and more people paying bills online, which requires entering personal information such as bank account numbers and social security numbers, a large, invisible number of criminals have taken to the Internet. While the concept of having one’s identity stolen is frightening, anyone concerned about identity theft can take steps, both in the virtual world of the Internet and in the real world, to protect themselves from falling victim to this increasingly common crime.
• Beware of spam e-mail. While we’d all like to believe we’re too Internet savvy to fall victim to e-mail campaigns aimed at stealing our identities, these campaigns are still prevalent, and criminals wouldn’t be conducting them if they weren’t paying dividends. These e-mails often offer pre-approved credit limits, and appear as an e-mail you might receive from a bona fide company. However, these e-mails are only interested in extracting person information, such as a social security number, from potential victims. It’s best to avoid solicitations via e-mail, regardless of how legitimate the solicitation might seem. When applying for credit, do so by contacting the company by telephone, and don’t use a number provided through an e-mail.
• Guard your social security number. Very few scenarios require you provide your social security number. Businesses can request but not demand you provide your social security number. Only a government agency or potential creditor (for which you’ll have to fill out a credit application) have the right to have a social security number stipulation. And even in those instances, a privacy notice must accompany the request. If no such notice is provided, and it’s still implied your social security number is demanded, do not provide it under any circumstance.
It’s also important to keep your social security number as well as home telephone number off of any outgoing checks. Once you mail a check, you have no idea who will eventually see that check (and what their intentions might be), particularly if it’s a bill sent to a billing center with many employees. By including your social security or telephone number on outgoing checks, you’re only increasing the amount of people with access to that sensitive information.
• Buy a paper shredder. Identity thieves are nothing if not resourceful, and many identity theft victims have had personal information stolen from them by so-called “dumpster divers” who think nothing of picking through trash cans looking for anything with personal information on it. The best way to avoid this is to purchase a cross-cut paper shredder to shred all important papers. This includes any pre-approved credit applications you might receive in the mail. Even if you didn’t solicit these, your name is still on them, and identity thieves can grab them out of your trash and get cards in your name. With a cross-cut paper shredder, you can easily and effectively destroy these applications, as well as old credit card receipts, bank statements, utility bills, or any other documents that might contain sensitive personal information.
• Cancel cards you don’t use. Open credit is one of the prime targets of identity thieves. If you haven’t used a card in several months, and the balance is zero, you’re more apt to ignore statements in the mail, figuring there’s nothing to see on the statements anyway. Identity thieves are well aware of this and target open credit as a result. If you don’t use a card anymore, simply cancel it.
• Don’t have mail delivered when traveling. If traveling, have mail held at the post office or arrange for a trusted neighbor, friend or relative to come over and pick up your mail each day you’re not home. A mailbox filled with letters and bills invites identity thieves to come pick through the mail, as it gives the impression no one is or will be home anytime soon.
Even if you’re not traveling but live in an apartment complex with an open mailbox, consider getting a P.O. box and using that as your mailing address instead. Open mailboxes invite thieves, and a P.O. box will eliminate this potential avenue for thieves to steal your identity.
• Be careful when paying bills and buying items online. Online shopping and bill paying have done much to make life easier, as many banks now provide ways to pay all monthly bills at once. While these sites are convenient, be sure they provide significant online protection from hackers. When setting up an online bill paying account with your bank, do so in person, inquiring as to what protection is offered and how successful it’s proven in the past. When shopping online, do so only from Web sites offering security. If any personal information must be provided beyond a method of payment, cancel the purchase and shop elsewhere.
For more information on identity theft, visit the United States Department of Justice Web site at www.usdoj.gov. TF085776