I have often read that one of the ways to prevent identity theft is to never share one’s Social Security Number (SSN), unless it is absolutely essential. Of course anybody with a reasonable amount of common sense will never do so, but I cannot help but wonder – how do we determine when it is necessary?  

My husband and I have just invested in a piece of land, and are currently in the process of building our home on it. The land is owner-financed, and the sellers are a charming retired couple who live next door. We have known them for over two years now and share a great rapport. The other day they said that their new CPA has asked for our SSNs. Now I have very high regard for this couple and will trust them with all I own, but sharing our SSNs did sound off the warning bells in my head. Since their previous CPA did not need these details, why does the new CPA need them and how will I know that this kind of sensitive information is safe with her? All these thoughts made me do some digging up on matters relating to sharing SSN details. I wanted to make sure whether I was under any obligation to furnish this information since it has been requested, or whether it is optional. 

Why Must You Be Very Careful With Your Social Security Number?

For starters, the 2010 Identity Fraud Survey Report states that identity fraud claimed over 11 million U.S residents last year, resulting in a total cost of $54 billion. When in the wrong hands, your SSN can leave you in a mammoth financial mess. The good news is that most of those victims did not lose more than an average of $373, though it took each victim 21 hours to get things sorted out.  

How Can You Safeguard Your SSN? 

It is quite simple really, if you just take a few precautions:

•Always keep your Social Security card in a safe place, and no, your wallet does not count.

•Your SSN is confidential, period. Never jot it down behind checks, even if asked to do so. If anyone uses your SSN as your account number, get it changed immediately. 

•Always ignore phone calls or email requests for your SSN, even if you are familiar with the organization.  

•Sometimes you cannot avoid sharing your SSN, like when you have requested for an online insurance quote. In such cases, always ensure that the company you are dealing with is trustworthy, and the server that is carrying the information is a secure one.  

•Make sure you receive your free credit reports every year and look out for any unusual credit lines.

When Is Sharing Your SSN Necessary?

There are some instances when you must provide your SSN, like the following:

•When you take up a new job, you have to give your SSN to your employer, for payroll purposes. Your employer’s payroll records and W-2 must show your accurate name and number, as Social Security has to credit your earnings.

•Financial institutions you deal with must have your SSN for purposes of tax reporting. 

•Government agencies like motor vehicle departments will ask for your SSN. However, you must know that all government agencies, be it local or federal, are obligated to inform you whether your SSN is necessary or optional, how they intend to use it, and the authority under which it is being asked for.

When Your SSN Is Requested, But Not Required

Most businesses will ask for your SSN, and unfortunately, there aren’t any stringent restrictions on how they can use it. Businesses like health care organizations, consumer reporting agencies and information resellers can use your SSN in a number of ways. The law gives you the right to refuse sharing your SSN details, but then the business may refuse to provide you their services. When faced with such a dilemma, make sure you ask the following questions:  

•Why do you need my SSN?
•How do you intend to use this information?
•Is it mandatory by law and if yes, which one?
•What security measures does your company take to safeguard customer SSNs?
•If I refuse to provide it, how will it impact our association?

Clearly express your concerns about identity theft with a manager or supervisor of the company and find out if they are willing to accept an alternative identifier instead of your SSN. If they do not and you are not comfortable, find someone else to business with.

Coming back to our story, eventually we did not have to share our SSNs as the sellers did not need them any more. It seems they had asked for our numbers as it was required for filing taxes online, which they opted out of. Of course I had not suspected any kind of fraudulent activity here, but prevention is always better that cure, right? Remember, keeping your SSN confidential is vital, and a request for it is not always a necessity.

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If you have mastered the art of frugal living then you are one of those lucky people who can make do with what they already have. It is not only a great way to curtail unnecessary expenditure, but also stops the hoarding of stuff that you forgot you own and probably would not need anyway.

However, if you are like me, chances are you often land up buying something that you think you need and are thrilled with the great deal you found on it, only to later realize that you already have the same thing at home, never used and forgotten about. I cannot remember how many times this has happened with me – I gloat about a great buy, and then am forced to sheepishly smile at my husband and  confess that not only did I spend money on a duplicate, but by the time I found that out, it was too late to return it.

I have three young children and literally go crazy at sales, without realizing that they already have all they need. In the bargain, it would eventually turn out that all of them had tons of casual wear but not a decent pair of pants! I finally got out of this cycle by implementing a plan, where I sort their clothes by sizes instead of simply storing them haphazardly in the attic. Also, I never go to a sale or a thrift store without a list in hand, so I always know what I need and can avoid unnecessary spending.
 
Once you learn how to keep your home de-cluttered, you will be pleased to see how much money you end up saving. Instead of hoarding all those old clothes, broken furniture, kitchenware and loads of other stuff that you will never use again, organize a yard sale, use EBay, or donate to a charity and get a deduction from your taxes.   

Organizing your bookshelves from time to time will also help you save money. Every time I do the same, I find a handful of unread books, which gives me enough reading material and stops me from picking up new books. Now I do the same before going grocery shopping too, since I always find unused stuff on my pantry shelves or in the refrigerator.

Even when you practice frugal living, it is quite possible that there some things that you tend to accumulate more than you need. Hence it is a good idea to take inventory and de-clutter from time to time.

Easy steps to de-cluttering your home:

1. Be a smart shopper and avoid buying duplicate items. You do not really need them, even at an extremely enticing sale price. No point buying another pair of black pants when you already have so many of them.

2. Get rid of all the broken stuff that you have stashed away in the attic. If you really needed them, you would have had them repaired a long time ago. Go through each and every item and unless you are sure that you will need it and can get it repaired, lose it. Also, when it is possible to get it fixed, do not go out and buy a replacement.

3. Most of us have a hard time getting rid of old stuff that we no longer use. We keep old clothes, books, CDs, stationery and loads of other stuff, hoping that some day soon we will need them again. Guess what, if you haven’t used them in a year, you may never use them again, ever. Heirlooms, antique collections, and of course, the fire extinguisher, do not fall in this category.

4. Before you hit the stores, jot down all the things you need to buy and keep it in your purse or wallet. This will help you save lots of money and time. This list will also come in handy when the question of gifts for the family comes up.

5. Learn to organize things simply. For example, a bottle opener or your sewing kit should be kept within easy reach. Things that are not required often can be stored in the upper shelves, and stuff that is needed once in a while can be stashed away from your regular living space. Your home will look so much neater, and you will always find things when you need them.   

Being frugal does not mean living a life without the things you enjoy. It simply means smartly using all the resources already available with you. Just by spending a little time to take stock of what you have and listing down all that you need, you will be able to buy wisely and make the best use of stuff that you already own.

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In today’s economy you might want to think about investing in CDs.  The returns might not be that terrific but they are guaranteed.  Umbrella Bank is offering a top paying CD that might be worth looking into.

It’s offering 2.75% APY on an 18-month CD, beating most yields on 12- and 24-month CDs.

The minimum deposit is only $1,000 and if you’re looking for the income, you can get monthly or quarterly interest checks.

UmbrellaBank.com is the online division of New South Federal Savings Bank, which has one full-service branch in Birmingham, Ala., and mortgage offices across the region.

New South is losing money and its portfolio of bad loans nearly tripled last year, so it earns only one star out of five stars on Bankrate’s Safe & Sound ratings.

But that’s so typical of banks offering the best rates and it’s FDIC insured, so your deposits are guaranteed.

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