Tired of eating beans, soup and tuna everyday? Get hit with the sticker shock at your local grocery store? On a special diet due to health or religious restrictions, but your hours got cut at work? Even if you're working, you may be able to qualify for food stamps. Think food stamps are a shameful welfare handout? Not really. Consider the following:
FOOD STAMPS ARE NOT WELFARE
The Food Stamps program, now called SNAP (Supplemental Nutrition Assistance Program) is not run by the Department of Social Services. Although you apply for food stamps at your local DSS office, the SNAP program is run by the Department of Agriculture. It is actually a stimulus for the farmers. When there is a recession, people buy less food and the farm industry suffers. The USDA has also eliminated the actual "stamps." When you use food stamps today, you will be using a pre-loaded debit card.
Because its a stimulus, many single people and working families are eligible to receive food stamps. To find out if you are eligible, you can prescreen yourself on the USDA Website.
FOOD IS RIDICULOUSLY EXPENSIVE
Everyone has suffered that pesky sticker shock at the grocery store. During the recession, it seems that food prices have increased 50% to 75% percent. Trying to feed a family with a reduced income is difficult. People are switching to the generic or store brand at the major grocery stores. Some have begun shopping at discount grocery stores like Save-A-Lot. Some people have started shopping for food at non-grocery stores, like the Dollar Tree, just to get some relief! However, the selection may be sparse and quality may be questionable.
If you have dietary restrictions due to health, allergies or religion, it gets even trickier. For instance: Many of the cheaper foods are made with peanuts or peanut oil. Many foods are made in facilities that also produce nuts. You don't lose your nut allergies if you're poor. You cant start drinking cow's milk if you are lactose intolerant. If you're Muslim, you still cant eat pork. If you're diabetic you will still need to eat a sugar substitute. With food stamps, you can buy healthy foods of your choice that also maintain your dietary restrictions.
FOOD PANTRIES ARE FRIENDLY
If you are ineligible for the SNAP program for any reason, you can look into local food pantries. Food Pantries are private organizations that distribute free groceries to the public. Some are funded by corporations or donations. Some are based in houses of worships, shelters or community centers. There are national websites such as feedingamerica.org and foodpantries.org . However, if you Google your own hometown and the words "food pantry," you will probably find a local organization or list of places to go for food and/or soup kitchens. You may have to register with the food pantry to receive food. This is not an invasion of your privacy. They need to record how many people they help, so they can continue to receive their funding and donations. Make sure you bring your ID and a shopping cart and/or your car.
Of course, because the food pantries are private, you can go to a food pantry even if you are a SNAP recipient. If your food stamps run out before the month does, take a look at your local food pantry to fill in with the basics, temporarily, until you get back on your feet.
GET WHAT YOU NEED
You can use food stamps for almost everything in a grocery store and most non-prepared food everywhere else. So in other words, you cannot use them at your local pizzeria. But you can use them to buy a frozen pizza from your favorite big box store. Because you can use the food stamps to purchase food at non-grocery stores, you can also shop around for the best prices. If your local big chain drug store has eggs on sale, you can grab a couple dozen from there. Eggs are covered!
Also, even though you sign up for your food stamps at your local DSS office, they originate from the Department of Agriculture (the federal government), so they are good nationwide. If you move out of state to find work, you can use your food stamps in your new state, or you can open a case with DSS in your new state.
Use your income, unemployment, severance pay, family donations for your housing, utilities, transportation, etc. Food is expensive, perishable and something you need to use and replace everyday. Find as much healthy free food as you can. Apply for food stamps if you are eligible, use the food pantries when you need to.
DONT BE ASHAMED
Don't ever be ashamed to get what you need for yourself or your family. If you or any of your family has ever held a job in the United States, you've already paid into the system. If you need temporary help due to a financial emergency of any kind, don't be afraid or ashamed to get help.
If it makes you feel better, offer to donate time, food or money at a local food pantry when you are able. They will be glad to have you.
Let's Be Careful Out There!
Wednesday, April 24, 2013
Sunday, April 7, 2013
ITS OKAY TO 401K
Your job offers a 401K. It's an extra deduction from your paycheck and you need all the money you can get today, not sometime in the future when you retire, so why would you participate in your workplace 401K program? It's so crazy, it just might work. Consider the following:
WHAT IS A 401K?
401K is actually the name of the chapter of the Internal Revenue Code that allows for tax deferred income to be used for retirement with maximum limits set by the IRS. This retirement benefit has been around since 1978. You can put aside pre-tax income to be used for your retirement. After age 59 1/2 you can withdraw the money for retirement. These funds will be taxed on withdrawal.
WHAT IS A ROTH 401K?
Roth 401K also allows for tax deferred income to be used for retirement with maximum limits set by the IRS. This retirement benefit has been around since 2006. You can put aside after-tax income to be used for your retirement. After age 59 1/2 you can withdraw the money for retirement. The account must be at least five years old before withdrawal. Since these funds were already taxed, they can be tax free on withdrawal. The Roth 401K was due to be phased out in 2010, but was reinstated by an Executive Order and is still available to workers today.
HOW DOES IT WORK?
Usually, a small percentage of each paycheck goes into a retirement account. The amount is then invested in a package of stocks, municipal bonds, mutual funds, etc. Many companies will match a percentage of what you put in. For instance, if your paycheck is $1000 before taxes and your 401K contribution is 3%, $30 per paycheck would go into this account. If your employer matches your contribution at 50%, your retirement account will receive an additional $15 per paycheck.
HOW DO I PARTICIPATE?
Speak to the HR Department at your job to determine if such a program is available. It's also a good idea to speak to the "plan administrator" if one is available. This is the person who works for the company that administers the actual retirement accounts. He or she will be able to help you choose the group of investments that is right for your package. If you are younger, you may put together a package that contains less aggressive, long term investments. If you are closer to retirement age, you may want to go with more aggressive investments because you have less time to build your account.
Your employer may bring a plan administrator in to speak to the employees in a workshop setting. Attend this workshop to gather more information, even if you haven't decided whether you will participate.
AN ASSET IN A TIME OF TROUBLE
Your retirement fund is also an asset. In case of emergency, you can borrow against it. However, because these funds are meant for retirement, they will not be as liquid as a bank account. If you are not yet retirement age, you can withdraw the funds with substantial penalties in case of certain specified financial emergencies.
PLAN FOR YOUR FUTURE
Lets face it. The retirement funds our parents and grandparents relied on will not be available to anyone after the Baby Boomer generation. Anyone born after 1959 will likely have to plan for our retirement with an assortment of extended work life, social security, pension, retirement investments, savings and our own children! Don't wind up as an eighty-five year old Greeter at Walmart.
Plan properly for your retirement!
Let's Be Careful Out There!
WHAT IS A 401K?
401K is actually the name of the chapter of the Internal Revenue Code that allows for tax deferred income to be used for retirement with maximum limits set by the IRS. This retirement benefit has been around since 1978. You can put aside pre-tax income to be used for your retirement. After age 59 1/2 you can withdraw the money for retirement. These funds will be taxed on withdrawal.
WHAT IS A ROTH 401K?
Roth 401K also allows for tax deferred income to be used for retirement with maximum limits set by the IRS. This retirement benefit has been around since 2006. You can put aside after-tax income to be used for your retirement. After age 59 1/2 you can withdraw the money for retirement. The account must be at least five years old before withdrawal. Since these funds were already taxed, they can be tax free on withdrawal. The Roth 401K was due to be phased out in 2010, but was reinstated by an Executive Order and is still available to workers today.
HOW DOES IT WORK?
Usually, a small percentage of each paycheck goes into a retirement account. The amount is then invested in a package of stocks, municipal bonds, mutual funds, etc. Many companies will match a percentage of what you put in. For instance, if your paycheck is $1000 before taxes and your 401K contribution is 3%, $30 per paycheck would go into this account. If your employer matches your contribution at 50%, your retirement account will receive an additional $15 per paycheck.
HOW DO I PARTICIPATE?
Speak to the HR Department at your job to determine if such a program is available. It's also a good idea to speak to the "plan administrator" if one is available. This is the person who works for the company that administers the actual retirement accounts. He or she will be able to help you choose the group of investments that is right for your package. If you are younger, you may put together a package that contains less aggressive, long term investments. If you are closer to retirement age, you may want to go with more aggressive investments because you have less time to build your account.
Your employer may bring a plan administrator in to speak to the employees in a workshop setting. Attend this workshop to gather more information, even if you haven't decided whether you will participate.
AN ASSET IN A TIME OF TROUBLE
Your retirement fund is also an asset. In case of emergency, you can borrow against it. However, because these funds are meant for retirement, they will not be as liquid as a bank account. If you are not yet retirement age, you can withdraw the funds with substantial penalties in case of certain specified financial emergencies.
PLAN FOR YOUR FUTURE
Lets face it. The retirement funds our parents and grandparents relied on will not be available to anyone after the Baby Boomer generation. Anyone born after 1959 will likely have to plan for our retirement with an assortment of extended work life, social security, pension, retirement investments, savings and our own children! Don't wind up as an eighty-five year old Greeter at Walmart.
Plan properly for your retirement!
Let's Be Careful Out There!
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