April 2012
Financial
Health
If a headache, upset stomach, or “under-the-weather” feeling hits at
the same time as a financial downturn, it’s not just by chance. Money
concerns can bring about a number of physical and emotional ailments.
Sleeplessness, a lack of focus, depression, and anxiety are all signs
that financial problems are impacting your wellbeing. Troubles multiply
if a person turns to destructive activities, such as drinking, gambling, or
misuse of medications, to combat stress.
The good news is that there are healthy ways to cope:
• Take part in healthy activities. Exercise relaxes your muscles
and puts you in a better mood. Taking a walk is inexpensive as
well as healthy.
By the numbers
Financial facts
• Eat healthy foods. Vegetables,
fruits, and protein will give you
lasting energy.
• Build connections. Have dinner
at home with your family. It costs
less than eating out, is often
healthier, and will strengthen
family bonds. Also, if you need
to talk, give friends or relatives a
call. Sometimes a good listener
makes a big difference.
SA
M
• John Jacob Astor, wealthy landowner
and fur trader, was America’s first
millionaire.
• Madame C. J.
Walker was
America’s
first selfmade female
millionaire.
• Taxpayers have
until April 17 to file their 2011
tax returns. Almost 80 percent of
taxpayers file electronically with IRS
e-file.
• 68 percent of workers surveyed are
confident about living comfortably
15 years into retirement, a Towers
Watson survey showed.
7 ways to ease financial strain
PL
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Wealth woes bring health woes
• Create and commit to a
plan. Write down specific
ways you and your family can
reduce expenses and manage
your finances. The American
Psychological Association notes
that, although it may provoke
some short-term anxiety, putting
things on paper and committing
to a plan can lower stress.
• Try something new. Look at economic challenges as an
opportunity to take advantage of low-cost entertainment options.
Visit a local park or library, or see if an area college offers free
concerts.
If stress continues to be overwhelming, contact your health care
provider, employee assistance program, or a local mental health
professional for assistance. Reducing stress can lower blood pressure,
improve sleep, and help with weight control, making it a goal worth
pursuing as you reshape your finances.
Keep financial concerns from becoming a
burden by making the most of your money:
1. Be ready. When a financial crisis occurs,
it’s often because of an unexpected debt.
To help prevent a crisis from sending
you into debt, have 10 percent of takehome pay sent directly to an emergency
savings account.
2. Avoid fees. Make sure you understand
your bank account agreement. You may
be charged a fee if you do not maintain
a minimum balance. Also, use only your
bank’s ATM, or an ATM
that does not
charge fees,
to avoid
paying when
you make a
withdrawal.
3. Use cash. In the
grocery store, restaurant, movie theater,
or for any other face-to-face transaction,
cash is best. It gives you a real sense of
how much you’re spending.
4. Bring your own. Rather than eating out
at lunchtime, bring your meal from home.
5. Be thrifty. Shop for food at the
supermarket rather than at a
convenience store. Look for bargains on
other items at consignment shops, outlet
stores, and garage sales.
6. Separate a need from a want. What
would happen if you didn’t buy an item?
Rather than buying on impulse, stop and
think about how many hours you have
to work to pay for it. What else could you
use that money for?
7. Save your raise. Place your next raise,
tax refund, or cash birthday gift right into
savings.
© 2012 J. J. Keller & Associates, Inc.®, Neenah, WI • USA • (800) 327-6868 • jjkeller.com • Printed in the USA
The word “retirement” may bring thoughts
of traveling, volunteering, or relaxing in a
hammock in the shade. Whatever you think
your retirement will look like in the future, the
best time to save for it is now.
An easy way to save for retirement is to take
advantage of a 401(k) plan if your employer
offers one. Contributions lower your taxable
income for the year, and with a traditional
401(k) you won’t pay taxes on your savings
until withdrawals are taken.
If your employer offers a matching
contribution, be sure to contribute at least
the amount your employer will match. It’s like
bringing free money into your account.
Even small contributions add up. Investing
$100 a month in a 401(k) plan will give
you approximately $20,000 in 10 years,
assuming an 8 percent rate of return. In
20 years, the account will be worth around
$60,000. You can build a bigger nest egg by
increasing your contribution rate over time.
Improve your credit
score
If it starts to slip, it pays to get
it back on track as soon as
possible.
“A good credit score can save
you thousands in interest
charges,” notes Paul Golden, a
spokesperson for the National
Endowment for Financial
Education.
A score ranges between 300 and 850 and is based on your credit report.
This report shows you’ve handled past debt and includes a number of
factors:
Payment history: Paying bills on time
makes the greatest impact on your
score.
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If your employer does not offer a 401(k),
another retirement savings option is an
Individual Retirement Account, more
commonly called an IRA. Taxpayers can
contribute earnings to an IRA although
— as with 401(k)
accounts — there is
a limit on how much
can be contributed
each year.
Since 1953
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P.O. Box 368
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Whichever
retirement savings
vehicle you choose,
it’s important to
contribute now.
This will give your
savings a chance
to grow over time,
and reward you with
a financially secure
retirement.
To check your credit report for
inaccuracies, look it over each year
through www.annualcreditreport.com
or by calling 877-322-8228. There is a fee
to see your credit score
number, but it is free
to see the report and
check the factors that
go into calculating
your score.
There are
other organizations
that offer to let you see your credit
score for free, but be careful — you may
be billed if you do not cancel a trial
membership in time.
A credit score is a threedigit number that can impact
everything from an apartment
lease to a mortgage, car loan,
and credit card interest rate.
How much credit you’ve
used: Reaching the limit on
numerous accounts will
negatively impact your
score, even if you make
payments on time. The
National Foundation
for Credit Counseling
recommends not owing
more than 30 percent of your
available credit line.
Regular saving can turn your retirement
nest egg into a sizable sum, but resist the
temptation to dip
into your 401(k)
account before
retirement. If you
are below age
59½, you may
have to pay taxes
and a penalty for
taking an early
distribution.
Check your report
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Retirement savings add up
10%
10%
35%
15%
Credit history: Longstanding
accounts will improve your
score.
New credit and inquiries: A
small percentage of the score
could be negatively impacted
by some credit report
requests.
Types of credit: Mortgages
and secured installment loans
will be weighed differently
than unsecured debt, such as
credit cards.
30%
Payment history
How much you owe
Length of credit history
New credit and inquiries
Types of credit
If your credit report contains negative information
about missed payments or bill collections,
making consistent payments and keeping
Next month:
credit card balances low will slowly
Fitness
improve it.
“It comes down to paying bills responsibly
and not abusing credit,” Golden said. “Build
positive habits.”
© J. J. Keller & Associates, Inc.®, Neenah, WI • USA
ISSN 2151-8173