moosmommy
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Post by moosmommy on Jan 10, 2013 22:06:37 GMT -5
I am a lower income individual has based on most people on the board. I would love to hear about your goals and achievements through this year. Also strategies to achieve these goals. Super excited to work on mine this year! ;D
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Rocky Mtn Saver
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Post by Rocky Mtn Saver on Jan 11, 2013 0:12:27 GMT -5
I think I am probably on the lower end too. I paid off all my debt (a vehicle and maybe 10k cc) in 2011 with the WIRR. Now I am focusing on building up my retirement and savings. For me, both goals came from writing out a medium sized budget and going cash only for a while. I also find a lot of help from reading various personal finance sites and blogs. I glean from them each what I feel works for me and discard the rest.
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grits
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Post by grits on Jan 11, 2013 0:36:32 GMT -5
I read daily financial posts. I try to live as cheaply as I can but still enjoy myself. I am now making more money but am not doing much different than I did when I first started. I can now afford enough food to eat. I can afford gasoline, and to keep my apartment heat in the 60's. I can live in an apartment that doesn't have rotting carpet coming up off the floor. (I did live in one of those starting out.) If I'd had kids back when, we'd have had to have assistance. Sometimes, I only got 2 days of work a week. I use the public library like crazy. I can get my magazine fix, rent movies, and use the internet. It was years before I had my own computer.
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Rocky Mtn Saver
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Post by Rocky Mtn Saver on Jan 11, 2013 1:13:39 GMT -5
I the local library! It offers so much these days!
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grits
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Post by grits on Jan 11, 2013 1:50:51 GMT -5
The library has a quiet reading space with couches/chairs that is by the periodicals. One chair is by the director's door, and it is a wing chair. I will sit there, and quietly read for hours. The staff will all stop by and visit with me. It is a pleasant escape.
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moosmommy
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Post by moosmommy on Jan 11, 2013 6:54:26 GMT -5
I have 3 debts that I want to pay off this year. They are all under $1000 but have been easy for me to put off in my mind since there is no interest. So I made it my goal to get them paid off by December making the regular payment and also making any extra to go to them starting with the lowest.
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ilovedolphins
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Post by ilovedolphins on Jan 11, 2013 10:12:24 GMT -5
I am making more now than ever before but compared to people I work with with 2 incomes it isn't much. But when I was making minimum wage and raising 2 kids by myself it was a struggle but I still managed to save some and get my debt paid off. Looking back I don't know how I did it. Now on the income that I make I try to save a lot for retirement to get caught up because I didn't have any extra money for retirement back then.
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Peace77
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Post by Peace77 on Jan 11, 2013 18:50:01 GMT -5
For low income folks, Dave Ramsey recommends saving $500 for a starter emergency fund.
Use the library to print papers. My county allows 5 free copies per day.
Use coupons but compare prices. Sometimes the store brand at regular price is cheaper than using a coupon on the expensive brand.
Save money on postage by paying online or paying bills in person (if they are on your way). Saves $5.40 per bill.
If you are paying down debt, pay the bill online as soon as the new account period starts. This is normally 5-7 days after the due date. When you look at your account online, it will change from saying $xx.xx due this month to $xx.xx due next month. If you pay the bill as soon as the new account period starts, the average daily interest will be less and the next month's interest charge will be less.
Round up the payments. Is the bill is for $87.23, round it up to $88.00 or $90, if you can.
Ask for help. Could a friend or co-worker give you their unwanted coupons? Does your city offer free energy audits? Do you know anyone with a farm or orchard or even a fruit tree or 2 that would allow gleaning or picking? Use Freecycle or the free section of Craigslist.
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twinmami30
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Post by twinmami30 on Jan 11, 2013 21:17:39 GMT -5
Peace in 2013 I love your suggestions and I actually use most of them. Especially round up bills and round down paychecks. I too am low income or at least compared to some on this board. I just take it one day at a time and celebrate one milestone at a time. Be realistic and stay realistic. Most people whose portfolios are very high had to start somewhere. My goal for this year is $4k ( $1500 in my emergency fund and $2500 for downpayment for a home) although I feel I can easily surpass this I wanted to start with simple realistic goals. I get happy with EVERY DOLLAR I save or dont spend. Dont bum yourself out when you read about everyone else's numbers like I said before CELEBRATE YOUR MILESTONES!
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Peace77
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Post by Peace77 on Jan 12, 2013 7:33:17 GMT -5
If you are looking to buy a home, check out first time homebuyer grants for your area. They may be offered by your state, county, city or bank. Wells Fargo is offering grants,for example.
There are grants available for down payment and for closing costs.
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moosmommy
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Post by moosmommy on Jan 21, 2013 23:03:28 GMT -5
Getting close to paying off my first debt. Been putting any extra money into a jar specifically for those debts. I have half of my first one saved. Want to have all of it to make that payment on February 1st.
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grits
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Post by grits on Jan 21, 2013 23:12:12 GMT -5
Congratulations moosmommy! I wish you all the best.
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InsertCoolName
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Post by InsertCoolName on Jan 21, 2013 23:19:22 GMT -5
I'm low income and can't save. Not because I don't want too. Because the rules for SS Death benefits the rules are the rules. Can not have a savings of more than 2k and can NOT use any of the money for college funds.
Any savings will have to be in a buried mason jar out back...
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Rocky Mtn Saver
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Post by Rocky Mtn Saver on Jan 22, 2013 9:12:34 GMT -5
ICN, do retirement accounts count toward that SS cap?
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Peace77
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Post by Peace77 on Jan 22, 2013 9:39:44 GMT -5
ICN,
the only thing that Social Security can check is your bank account.
You can stock up on non-perishable food, soap, shampoo, detergent, toilet paper, postage stamps, paper, printer ink, etc.
You can also buy gift cards for the grocery store, clothing stores, department stores, restaurants or even to give as gifts to your kids.
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midjd
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Post by midjd on Jan 22, 2013 14:31:45 GMT -5
ICN, are you sure about that? My mom received SS survivor benefits for 3 years after her mom passed away, and my grandpa made a decent income at the time. SSI does have asset limits, but SS survivor benefits don't, to my knowledge... www.ssa.gov/policy/docs/ssb/v70n3/v70n3p89.html
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InsertCoolName
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Post by InsertCoolName on Jan 22, 2013 14:59:35 GMT -5
Yes I am sure. I was told at the time of the interview. I am NOT allowed to save any of this money. I can NOT have no more than 2k in assets. Most of the time that means in the bank, cash. For the death benefits this goes beyond the cash/bank. If I have too many items worth too much in my home and they are told...I will lose the checks. If someone tells them that I am not spending the money correctly, I will lose getting the checks and another person will be put in charge of paying the bills and making sure the kids have clothes.
I didn't ask about retirement for myself, because I am currently not working. And I don't plan on going any time soon. The amount we are receiving is more than enough. I have NO money worries at all. But I have to 'spend' it and do so within their rules.
Once I do start working again outside of the home, I will ask them about my retirement then.
Basically I can not go out and buy whatever size those huge screen tv's are and get a surround sound set up. If we need new living room furniture I can buy that, but it can't be the top of the line stuff. If the kids need new beds, that's allowed. I can do improvements to the house as needed, but nothing out of the basic needs. So no new swimming pool!!
I have to spend the money. And at the end of the year they will send me a paper to fill out stating where the money was spent. So, I have to track ALL money. Every dime. But I can't spend it on useless things.
No hookers and blow, ya know?
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Rocky Mtn Saver
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Post by Rocky Mtn Saver on Jan 22, 2013 15:01:56 GMT -5
The reason to ask about whether retirement assets count is because you could be funding a Roth IRA that is easily accessible to you as an emergency fund. You can withdraw contributions you have made at any time without penalty or tax. That could be $5k you could save annually.
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InsertCoolName
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Post by InsertCoolName on Jan 22, 2013 19:42:04 GMT -5
The interview was 21 days after my husband died. I didn't think of every single thing I was suppose to know. When I need to know about it, I will then call and ask. For now, I don't care about retirement.
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moosmommy
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Post by moosmommy on Jan 22, 2013 19:51:48 GMT -5
Do you have to report for all or just what you get specifically for kids?
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InsertCoolName
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Post by InsertCoolName on Jan 22, 2013 21:26:03 GMT -5
I'm not sure what you mean report for all what?
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Rocky Mtn Saver
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Post by Rocky Mtn Saver on Jan 23, 2013 0:45:27 GMT -5
The interview was 21 days after my husband died. I didn't think of every single thing I was suppose to know. When I need to know about it, I will then call and ask. For now, I don't care about retirement. My point was that it could be your 'right now' savings option. A Roth could be a way to keep an emergency fund now. But do whatever works for you!
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grits
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Post by grits on Jan 23, 2013 1:03:32 GMT -5
IRA's are funded with earned income. She'd better check on whether or not she can put Social Security benefits into an IRA. I have a feeling the answer is a great big no.
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Rocky Mtn Saver
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Post by Rocky Mtn Saver on Jan 23, 2013 9:08:50 GMT -5
True, but the year is young. If she will be working at all this year, she will then have earned income. Plus, she could make contributions to a 2012 Roth before April 15, assuming that she earned more than $5000 last year. It's just an option.
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Peace77
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Post by Peace77 on Jan 23, 2013 10:27:21 GMT -5
It sounds as if ICN is rep (representative) payee for her children and their survivor benefits. This is the form that will need to e filled out: ssa.gov/pubs/10076.html#a0=6 it would be easier to keep track as you go and not wait until the end of the year.
Funds can be saved in insured savings accounts or in US Savings Bonds.
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moosmommy
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Post by moosmommy on Jan 24, 2013 15:12:07 GMT -5
Insert what I meant by my comment was I assumed you would have to report your SS for your children. But I didn't know if you received any death benefits for yourself.
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Honeylioness
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Post by Honeylioness on Jan 24, 2013 15:35:48 GMT -5
moosmommy - If you don't mind me asking, what is your definition of "lower income". I just went through 14 months of unemployment and recently started a contractor position (last week). Just looking for clarification before I jump in with my big feet and wind up having to fit them both into my mouth.
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moosmommy
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Post by moosmommy on Jan 24, 2013 21:51:12 GMT -5
Anyone is welcome! Being unemployed is a big strain on you emotionally and financially. Hope this helps motivate you like it has me!
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NastyWoman
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Post by NastyWoman on Jan 24, 2013 22:12:43 GMT -5
If you are low income and want to save at least a little for your retirement, please read the information in the link below, since there is a tax credit availble if you are low income. Something like save up to $2,000 and get a tax credit of up to $1,000. So your savings would be 50% subsidized by the tax credit. Just a thought. nafcc.org/index.php?option=com_content&view=article&id=242&Itemid=255Disclaimer: I am not affiliated with this website in any way, shape, or form. I just ran across an article regarding this issue a while back and thought it was worth knowing (and in this case passing on).
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DVM gone riding
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Post by DVM gone riding on Jan 25, 2013 20:46:16 GMT -5
ICN I went through the SSA page today after reading this and nothing there suggests that survival benefits are limited like SSI is to a savings/asset limits--of course since it is for the kids there are limits/controls on the spending. I really think you need to talk to your lawyer/case worker again. Unless of course you are receiving some sort of emergency aid or some other form of aid or if your DH wasn't eligable for his kids to have full survivors benefits. This seems really wrong from everything I know about SS and from what I was able to read on the SSA website--notably not the easiest website to navigate and find the info you need!
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