OCR Text |
Show Suo Advocate Price, Utah Tuesday June 25, 2002 3B ' Savvy consumers prepare to handle 'cash hungry budget crunches by JOHN FORD financial adviser There are times when even the best budgeters in the Car: bon County area will become hungry for cash. Whether the money is for a minor item like car repair or a major one such as a new roof, everyone faces the unexpected budget busters from time to time. ' But what if Carbon County residents are laid off or suffer a major illness that puts them out of work for an extended period of time? There are ways to plan for emergencies that require cash and sometimes individuals have to get creative. Recommendations include: Establishing a short-teremergency fond. Expect the unexpected. It may be impossible to predict when the hot water heater will finally give out, but its good basic planning to have a budget that covers irregular ; ; m expenses. Residents should specifically earmark some facings to include regular payments into a money market account, certain certificates of deposit or short-tergovernment bond m funds. The money is kept liquid or immediately available without any penalties for withdrawal. People who must use money from the fund should make repaying the cash a top priority. Short-teremergency funds should contain approximately three to six months living exm penses. ' People should consider depositing a portion of each directly into the cushion savings account. ' The primary goal is to have three months of living expenses in the fund. Residents who are currently living from paycheck to could achieve the objective in 30 months by saving pay-che- ck pay-che- ck percent of 10 monthly incomes. People who are living from check to check could reach the designated goal or in 15 months by saving 20 percent of their monthly incomes. How can Carbon County residents save when they feel that their households and families can barely live on what they earn? Get creative. A fairly painless first step for individuals to take involves set- oughly evaluate monthly telephone bills and determine ex- -. actly how much money family members or individuals are spending per minute for the service. Residents should also look at their monthly cable televi- I sion coverage. Are the members of the household using the movie packages the family pays for each month? Consumers who are not using the value of monthly premiums should consider opting for less expensive services. Residents who are confident that the cash crunch is short-terand will be resolved in less than 60 days might siphon money from an individual retirement account. People with IRAs can withdraw funds at anytime. But any of the amounts are income taxable and subject to a 10 percent premature withdrawal penalty unless an exception applies. Residents who know they are going to need a major home renovation in a few years should determine how much money they need to save. Tb cover longer term expenditures in the future, Carbon County consumers should consider keeping revenue in something that has a higher potential return than the majority of money markets, such as mutual funds. When people are close to reaching the date they will need the cash, they can transfer the . revenues to a money market account. Of course, mutual funds are not FDIC insured and may be worth more or less than the original value upon redemption. Carbon County consumers may also want to consider lowering monthly mortgage costs and saving the difference in payments a longer term emergency fund. First, residents in the Castle Valley area should take a careful look at the monthly interest rates hey are currently paying with regard to existing home mortgages. m . make the loan. In addition, members of the local labor force should focus on setting up the home equity credit lines while they are still gainfully employed and before they experience a pressing cash crunch. In the event Carbon County residents lose employment positions, they should be aware of the fact that home credit lines considerably more diffi- cult for people without jobs to obtain. Residents should consider refinancing loans to slash interest rates. Consumers can minimize monthly debt repayments if their cash reserves are too small to carry them through financial tough times. In addition, people should try to first eliminate more expensive loans to avoid accumulating interest charges. For example, individuals may need to focus on paying high interest credit card bills while minimizing payments on debts, such as mortgages. insurance. In certain situations, the money in individual retirement accounts can also be used to help people cover longer term expenditures. The standard 10 percent penalty fee is waived if resi-- . dents are unemployed and the money is used for health ance or for expenses. e 'First-tim- higher-educati- insur- on homebuvers can take out as much as $ 10,000 penalty free. Consumers also have the option of taking substantially equal periodic payments to avoid the IQ percent penalty. But the periodic payment approach is effective only for investors who are willing to lock in distributions during a period of five years or until they reach age 59 12, whichever is later. If local residents cannot reach personal emergency fund goals without going into debt,' they should follow one basic piece of advice - Consumers should only borrow money to create something of lasting value, including a new business or home improvement Consider securing a home equity line of credit If residents find they need to borrow money, the home equity line rates are still relatively low and the interest is generally tax deductible. However, before consumers decide to set up a home equity line, they should make sure that the transaction involves available credit, not a loan. In the case of available credit, there is no cost unless people actually write a check on file home equity line and ve . Residents should consider reassessing the deductibles for various types of insurance coverage. If consumers can financially afford to raise insurance polity deductibles, they will drop the amount of the premiums charged for coverage. Perhaps more importantly, Castle Valley residents should review the different types of family or individual insurance coverage they currently carry. Consumers should make sure families are covered ip the event real emergencies occur involving health, disability and life insurance. Reducing allergic reaction health risks associated with insect stings With the arrival of the summer season, legions of stinging insects have started a carnivorous assault on outdoor enthusiasts in Carbon County and across America. The marauders can leave not painful stings, but the risk of death in allergic victims Carbon County residents should resist the temptation to launch a counter strike against the insects. Retaliatory action is best left to the professionals. But for individuals who become sting victims, a trip to the hospital may be in order. According to the American College of Asthma, Allergy and Immunology, most insect stings result in a normal reaction. Symptoms indude pain, swelling, itching and redness confined to the sting site. Recommended treatment indudes gently disinfecting the area, using ice to reduce the swelling and applying topical steroid ointments or oral antihistamines to relieve the itching. Sometimes a normal reaction can be rather large, extending well beyond the sting site. For example, an insect sting on the wrist may cause the victims entire arm to swell. If the situation persists for more than a day or two, a physician should be consulted. For 1 percent to 2 percent of the general population, an insect sting reaction will be allergic in nature. An allergic reaction is characterized by. ' Hives, itching and swelling m areas other than the sting site. Tightness in the chest and difficulty in breathing. Dizziness or a sharp drop in blood pressure. Unconsciousness or cardiac arrest An allergic reaction can occur in minutes after the sting and may become life threatening or even fatal Immediate medical attention is required and may involve the administration of drugs and, in some cases, intravenous fluids, oxygen and other treatments. Because there is a 60 percent likelihood of a reoccurrence allergic patients should seek follow-u- p care. upon Medical porfessional; will evaluate a patients allergic condition and may prescribe an insect sting kit for emergency treatment andor immunotherapy. A study published in the Journal ofAllergy and Clinical Immunology indicates that most people who are allergic to insect vaccination program will have a stings and undergo a two-yeprolonged benefit. The findings are good news for the two million Americans who suffer from potentially life threatening ' allergic reactions. g, ar For additional information, residents may contact the American College of Asthma, Allergy and Immunology at toll-fr- ee . Since mortgage interest rates have dropped considerably during the last year, people may save hundreds of dollars per month by refinancing existing home mortgages. Next, consumers in Castle Valley should look at the private mortgage insurance premiums they have been shelling out in the event they did not have a 20 percent down pay- ting aside extra chunks of ment change and saving die money in question. Savvy consumers and budgeted tend to squirrel away all cash holiday gifts, income tax Refunds, bonuses and raises in their emergency funds. O Second, Carbon County residents should shop wisely when purchasing household or personal necessities. When consumers become Once the equity in an individual home becomes greater than 22 percent of the property value, federal law allows consumers to demand that lenders cancel the private mortgage Will drop prices to avoid ing sales. o boy, Ihk 4IHIHI7T comparison shoppers, (hey realize that many retailers giood los- From computers to mat- tresses, local residents should find out what a competitors lowest rates are and then negotiate for the best possible price from the retail dealer. Review agreements with Eousehold vendors, including telephone ser-pproviders. For example, consumers in Saibon County should thor fong-distan- ce ce ARIES Kathy Smith, Ptt Jones, Kent Wibon.Jeaica Bauo, and David Hmlcins at the College 86. East 100 South 637-550- and 6 oz. Lobster i WE MEET REGULARLY WITH LOCAL COMMUNITY LEADERS TO , ENSURE WE PROVIDE FINANCIAL SERVICES TAILORED TO YOUR NEEDS. At Zions, we understand that every community is unique. And when it comes to banking, one size does not fit all. If you want to offer products and $17" Soup, Salad, Baked Potato . - Beer Menu Planning a Wedding or Party? i neighbors that we rely on to help us understand you and your commiinity'better. Some might call it But thatk why it works. In this era of global this, find automated that, we want each and every one of our customers to know that there's still a bank out there that ed. hasnt forgotten how to listen. ZIONS BANK I WE HAVEN'T FORGOTTEN WHO KEEPS US IN BUSINESS. Catering Available . ' to really serve the needs of a community, then youd better know that community firsthand. ' Thats why Zions works with Advisory Boards in every area we operate in. A group of friends and services Catfish Dinner Call or Lunch Moo-S-at Prehistoric Muteuin. 0 8 oz. Steak , of Eaitem Uteh 11:00-2:3- 0 lute 4;00-Clos- e i4 t call 637-21- 62 637-26- for ourbnnch at 45 S. cdbon Ave. in Price, far our branch inside Smiths at 1075 E Main Street in Price. 04 1 ' i |