Visit http://www.visualeconomics.com/how-the-average-us-consumer-spends-their-paycheck/ to see the full-size graphic.

I’ve tested a few of the calculators and they seem accurate, but I can’t offer any guarantees about them or about the website’s publisher: CCH*.  I learned about the site from the Wall Street Journal’s Small Talk column about small business, which I believe is written by Kelly Spors.

*(from the About Us page of their website) “CCH INCORPORATED, a leading provider of business, legal, and tax information and software to the business community in the U.S. and abroad since 1913. More than four generations of business and tax advisors have trusted our products for their accuracy, reliability, comprehensiveness, and timeliness.”

Good luck, and happy calculating!

The key here is to look at the defensive side and eliminate a hefty expense.

Let’s say you have a checking account with a $6 monthly fee if your balance falls below $1,000.  $6 per month multiplied by 12 months is $72 in annual fees that you pay with after-tax dollars.  Simply keep $1,000 in your checking account at all times to avoid this fee and you will enjoy a guaranteed 7.2% after-tax rate of return.

Wow – that’s so easy even a lowly author of a book such as “The It’s All Right Here Life & Affairs Organizer” can understand it.

A will (sometimes known as a “last will and testament”) is the legal instrument that enables a person (the “testator”) to make decisions on how, after death, his/her estate will be managed and distributed.

It is very important that you have a current and valid will.  Otherwise:

(1) If you die without a valid will (“intestate”), the laws of the state you live in will determine such critical issues as who raises your children and what happens to your assets.  Moreover, if you have no will when you die and you have no heirs in the eyes of your state’s law (e.g. living children or parents), all of your assets will become the property of the state, instead of the friends, relatives or charities you would have chosen to inherit them; or

(2) If you die and have an out-of-date will, it may be declared invalid if it doesn’t properly meet legal requirements (see “intestate” above); or

(3) If you die and have an out-of-date will that is valid, it will require that old decisions be carried out, even if they don’t reflect your current wishes or circumstances.  For example, you may end up leaving your entire estate to an ex-spouse instead of your favorite charity (or book publisher).

- Source: “The It’s All Right Here Life & Affairs Organizer” (www.AffairsOrganizer.com) written by yours truly.

It’s based upon interviews with David Swenson, manager of Yale University’s endowment and one of the world’s very best long-term investors.

http://www.npr.org/templates/story/story.php?storyId=89324244

(1) Check for Errors – the nonprofit agency Medical Billing Advocates of America estimates 90% of the thousands of inpatient hospital bills contain costly mistakes. “One of the most common problems is duplicate billing of services under different descriptions.”

(2) Stay on Top of the Insurance Company – make sure the insurance plan is paying its share. “If there is a dispute between a doctor and a health plan, the physician will eventually just bill the patient … find out if any bills aren’t getting paid and what the issue is, such as wrong billing code, and try to get it resolved as quickly as possible.”

(3) Negotiate – medical care is negotiable, especially “for patients who are paying out-of-pocket for services because they either don’t have insurance or have a high deductible health plan … physicians and hospitals don’t want to get stuck with unpaid bills so they often grant discounts to those who pay before they leave the office … when haggling with a hospital, ask for the rate Medicare pays, which could be 50% less than the full price.”

(4) Ask for Help – many hospitals have government funds to help patients who can’t afford their medical care. “To find out what help you might be eligible for, ask your doctor for information or contact a hospital’s financial counselor … there are many independent nonprofits that will provide financial assistance.” resource: http://www.patientadvocate.org/index.php

(5) Ask for a Payment Plan – “not only will the debt go unreported to the credit bureaus, but medical facilities also typically don’t charge interest, says Rod Griffin, a spokesman for credit bureau Experian. “

(6) Deal With Collections Agencies – “Hospitals are getting more aggressive about sending unpaid bills to collection … Even if (not) a mistake, you don’t necessarily have to pay the entire bill. Like doctors, collection agencies are often willing to negotiate.”

This tip was sent to me in an email that’s been circulated several times, so I’m afraid I don’t know who to credit.

Hopefully, if your card is lost or stolen and someone tries to make a fraudulent purchase, a conscientious person at a cash register will ask for a photo ID and prevent the transaction from going through.

This is a good suggestion that’s been found in several places over the years, so I’m not sure who to credit as the original source.

Web link: http://www.caringinfo.org/stateaddownload

You may also reach them via their HelpLine at 800/658-8898 or email at caringinfo@nhpco.org

The site provides free, comprehensive and very useful information about mortgages, buying a house, and home ownership.

It’s a public service from Jack M. Guttentag, Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania. Earlier he was Chief of the Domestic Research Division of the Federal Reserve Bank of New York, on the senior staff of the National Bureau of Economic Research, and managing editor of both the Journal of Finance (1974-77) and the Housing Finance Review (1983-89).

Thanks to Prof. Guttentag for generously providing such great information.

This the ONLY authorized online source for you to get a free credit report under federal law. You can get a free report from each of the three national credit reporting companies every 12 months.

Some other sites claim to offer “free” credit reports, but may not be secure or may charge you for another product if you accept a “free” report from them.

Another route to the same destination above is to visit http://www.ftc.gov/bcp/conline/edcams/freereports/psa.html to go to the U.S. Federal Trade Commission (FTC) page about obtaining your free credit report (on that page, click on the “annualcreditreport.com” link in red bold text near the top, with a light blue background).