Online Financial Software: Is It For Me? (And You?)

Quicken has recently announced that it's online software will now be available for free, and it has me thinking.  I've been really, really slow about moving to software to help me keep track of my money.  I still use self-made Excel spreadsheets and notebook paper to do my budgeting.  I feel pretty sure that a software solution would give me better results.  I did try Quicken once, and after hours of trying to get my checkbook balance and its checkbook balance to match, I gave up.

The new generation of financial software works online.  This makes me very nervous - I don't really want all my financial information, including passwords, on some hackable website.  Of course, I do all my banking online already, so I'm not sure this is a different concern.

So I went off in search of financial software to try.  I found this clear, understandable article at Slate, but it deals with both online and offline software.  However, it's two favorites were online:  Quicken and Mint.  Now I'm trying to decide which one to try.  Maybe I'll try both and report back, but it seems like plenty of people have already done that for me.

So, do any of you have experience with online financial tools?  Which ones do you use?  Are you concerned about security?  Let me know - I'm really curious!

Seven Reasons Why Clutter is Costing Me Money

This week, I'm on a mission to clear out the unpacked boxes and excess stuff in my house.  I'm not a good unpacker, and I don't enjoy it, so I need some way to keep myself going.  I'm not talking about organizing (oh, how I love to organize!) but rather removing the stuff that doesn't need to be here in hopes of being able to manage the things that remain.  Hopefully the following list of the reasons why clutter is costing me money will help give me the drive to declutter my home!

1. Being disorganized can cause you to lose money.  How?  First, the obvious.  Have you ever found money in the pockets of your clothing?  Did you know that it was missing?  It happens to me  regularly, I'm sorry to admit.  I can be  careless with my actual cash, and I can be careless with checks, too.  I recently found a refund check (from our old cable company) in with a pile of newspapers that I was taking out to the recycling bin.  I thought that I'd already deposited that check.  I'm lucky that it didn't get thrown out - I would have lost that money and never even known it!  Second, having too much paper makes it easier to misplace bills.  That can result in those nasty late fees or other charges.  (Not to mention what you could do to your credit report!)  Starting today, I'm going back to the system I used when I was younger:  one medium sized basket for everything important that has to do with money.  Checkbooks, checks to be deposited, and bills will all live in this basket, and no where else.

2. When your home is a mess, you don't want to be there.  It is so easy to escape the boxes by taking the kids out to lunch, or going grocery shopping, or seeing a movie.  All these things cost money.  I know from experience that when my home is pleasant, all I want to do is stay home.  Clearing out the junk makes home an inviting place, and staying home saves money.
3. Not being able to find stuff causes you to spend money.  Have you ever bought something because you couldn't find the one you already had?  I do it every time we move.  Would you notice if your best wedding/funeral suit wasn't in your closet?  Not if it is crammed full of stuff and you can't see anything.
4. Having too much stuff takes up your time, and time spent dealing with stuff is expensive.  I can think of a number of ways that time can cost money:  If you have to buy prepared foods for dinner because you didn't have time to make something from scratch, if you have to hire a cleaning service because you have too much stuff to keep it clean yourself, if you can't find your car keys and are late picking up your kids at daycare.  If you need to take a couple of hours off work to figure out how to file a health insurance claim, then you've lost straight income.  Less stuff = a more workable system = lower costs.
5. Too much stuff makes you lose financial opportunities.  For example, have you ever tried to return something but you couldn't find the receipt?  Or it has been sitting on your closet floor for so long that you couldn't return it anymore?  What about rebates - have you ever not been able to send in a rebate because you couldn't find the right form?
6. An over-full and chaotic house is stressful, and stress is expensive.  Stress can make you sick, make you angry, heck, stress can even kill you. 
7. Space costs money.  Ever rented a storage unit?  I have, and I hope to never do it again.  What a waste of money.  I admit, there are unique situations where a storage unit is a good idea.  Deploying and giving up your apartment?  By all means, get a storage unit.  Removing half your furniture to make your house look spacious while it is for sale?  Great idea.  However, if you are using it to store regular old stuff because you don't have room at home, then it needs to go.  (Both the stuff and the storage unit.)  The same thing goes for your house.  Do you have a bigger house than you need because you have to have a basement or garage for all your things?  Do you have rooms that are unused except for storage?  Think long and hard about how much that space is costing.  Clearing out the clutter will allow you to enjoy the space you have, and possibly even live comfortably in less space than you thought necessary.

Lest you think I'm suggesting that you put all your things into neatly labeled plastic tubs:  I'm not.  I don't care if the important things are in piles on the floor.  What I'm suggesting is that you get rid of everything that isn't important.  I promise (truly) that you will improve your financial situation at the same time.

photo by:  Rob!

Planning to Pay off Debt

If you are carrying consumer debt, like a credit card balance, personal loan, or overdraft protection balance, you are not alone.  While the calculations vary, somewhere around 50% of Americans have consumer debt that they don't pay off each month.  Most experts agree that paying off that debt should be a high priority.  But how do you motivate yourself to do it?  Here are three steps that might just help you find a way to get rid of that debt:

1.  Make a list of every interest accruing debt that you have.  Include the balance, the interest rate, the minimum payment and, most importantly, the amount of interest that you are paying each month.  Take a moment to think about how you feel about that money, both the payment and the amount of interest you are paying each month.  What could you do with an extra $40 per month? (That's just an example, of course.)  You could save it, you could maybe buy a nice steak instead of hamburger, you could get a babysitter for some time without your kids.  What kinds of things make you feel really happy when you think about what you could do with that money?

2.  Make some sort of a plan, and then make a visual to help you see what you are trying to do.  I like to total up the amount I owe (rounding it to a nice, even number) and make a chart that shows how and when I plan to pay for it.  Here's what an example might look like:   (The big red turtle is my car, if you were wondering.)

I used $300 increments because that seemed like a reasonable amount to be able to pay off at once, enough that it would make fast progress but not so much that it would be overwhelming.

You don't have to use my kid-style chart, though.  Some people take a big glass jar and fill it with poker chips to represent their debt.  More debt, add some chips.  Pay some off, take some out.  Or you can show your debt using Monopoly money.  Using it as a dining room center piece or desk paperweight will remind you of your goals.  The downside to chips or monopoly money is that you can't assign planned days, but it will still work.  Another idea I've heard is to get a 100 piece puzzle from the thrift store or dollar store, break your debt down into 100 increments, and add a puzzle piece for every chunk you pay off.  This one wouldn't work for me, as it would become a kid toy, but it might work for some of you.

3.  Make a way to remind yourself of your goal.  If you need to put a chart on your refrigerator, do it.  Wrap a post-it around your credit card with a picture of a nice dinner on it.  Find a friend who is also trying to pay off their debt and keep each other motivated.  Hang a poker chip from your rear-view mirror.  Whatever creative thing you can think of, do it.

Using these three steps, you should be able to make and implement a plan to get out of debt.  It might not be easy, but it will be worth it.

Preventing Identity Theft During The Holiday Season

I was going to do a post about identity theft, but in my research I came across this well written and comprehensive article written by Janet Farley and posted at the Military Officers of Association of America (MOAA) website.  She's done such a good job that I think it would be better for me to link to it here:  Home Front:  Safe Shopping.  I know that I've been guilty of not being as careful as I should be.  Janet offers solid suggestions for keeping yourself (and your money) safe.

Check Your Credit Limits - They Might Not Be As High As You Think!

I've recently read some reports of banks lowering customers' credit limits unexpectedly, and the customers failing to noticed.  This can result in all sorts of problems, such as over-limit fees, declined transactions, a drop in your credit score, and also less available credit in case of emergencies.

While I like to think that we should all just pay off our credit cards completely and have a large emergency fund, I understand that is not the reality for some people right now.  Keeping an eye on your credit limits seems like a sensible thing to do.  I've just checked to make sure that mine haven't changed (they haven't) and I encourage you to do the same.

Here' an article at Smart Money Magazine, Banks Lowering Consumers' Credit Card Limits, that talks more about this potentially important issue.

Before Catastrophe Season Starts ..:

Before Catastrophe Season Starts ..: USAA Mission Your Money

Do You Know About Ask June?

I'm guessing that you have probably run across June at the Military.com website, but just in case, you should check her out her column, Ask June.  June Lantz Walbert is a CERTIFIED FINANCIAL PLANNER^TM who works for USAA Financial Planning Services, and she is also a member of the US Army Reserve.  June accepts questions at the Military.com site and also makes video segments available on YouTube.  I'll attach a few after this post, and try to keep you up to date as June creates more informative, helpful videos.

When Couples Disagree - Free

When Couples Disagree - Free Advice from USAA

Here's some of June's work available on YouTube. She's great, isn't she?

5 Things You Should Do When You Move Into A New House

We military people tend to move.  And whenever we move into a new house, there are a number of things we should do to make sure that our new home is energy efficient.  Which items work for you depends on a number of factors:  are you renting or did you buy?  are you paying for your utilities?  how long will you be there?

Here are some things to consider doing:

1. Turn the hot water heater down to 120 degrees.  You will save a lot of electricity and you'll also lower the chances of someone burning themselves with hot water.  If your hot water heater is more than 15 years old, consider adding a water heater blanket.  For $30-40, you can save a bundle on your water heating costs.
2. Put in compact flourescent lights (CFLs) or LED lights where appropriate.  Both use significantly less energy than traditional incandescent lights, plus they usually last longer.  CFLs can be used anywhere, but you can start with halls, outdoor lighting, basements and garages.  There does seem to be some different in the quality of CFLs - I would stick to brand name products for this.  LED lights don't produce as bright a light, so they are better for applications such as nightlights, hallways, and recessed lighting.
3. Replace (or clean) the air filter in your heating and air conditioning system.  Some military housing provides this service for you.  Find the filter, write down the dimensions, and pick up a replacement the next time you are at the store.  Not only will you save money, you might prevent your system from quitting on the hottest (or coldest) day of the year.  I once called my HVAC company because my air conditioning had stopped working.  The knowledgeable scheduler asked me a few questions to make sure it wasn't a simple problem and sure enough, my filter was old and completely clogged!
4. Keep furniture and draperies away from vents, radiators or baseboard heaters.  I know how hard this can be - sometimes it seems like they purposely put the vents in the only sensible place for the furniture!  However, the benefits are worth the drama of arranging around the vents.  You will be more comfortable, your furniture will last longer, and your utility bills will be a lot lower.
5. Seal doors and windows.  The options are nearly unlimited.  Start with caulk, expanding foam and weatherstripping.  Put foam gaskets behind outlet covers on exterior walls, and put safety plugs (baby-proof kind) in unused outlets.    Use heavy draperies - I've been known to hang quilts over drafty windows in the winter.  Replace drafty door thresholds, or put a rolled up towel in front of them.  Consider shrinkwrapping your windows.  There are all kinds of kits available.  Most use tape to affix the plastic to the window, after which you blow dry to shrink the plastic to fit.  I've even seen new types advertised that claim to be completely see through.  Staple some insulation to the back of the attic access door and weather strip around it.  Make sure that all storm windows are installed and closed.

These few, simple measures can help keep your utility bills lower.  While we transient folks can't make every possible change to save energy, these are things that we can easily do to make our lives a little more efficient and affordable.

Some Relief for Military Renters

The real estate meltdown can affect renters, too.  If your landlord goes into foreclosure, you will most probably have to move from your house.  One piece of good news is that the Joint Federal Travel Regulations have been adjusted to allow the military to pay for the moving expenses of service members who are impacted by their landlord's foreclosure.  This change, which has been made retroactive to July 30th, will help military members who are forced to move unexpectedly when their leases are terminated.  It does not apply to service members who move due to a foreclosure action on a property that they own.

For more information, you can also read the article at DefenseLink, and keep your eyes open here at the Paycheck Chronicles for a piece on tenants rights during the foreclosure process.  I hope to have it done today or tomorrow!

Online Discounts

As nice as it would be to never spend any money, some spending is necessary to live life.  If you are going to be making those purchases anyway, you might as well get the most for your money.  Online shopping often offers the easiest and least expensive way to do your shopping, especially if you are posted outside of the United States.  We did a lot of online shopping when we lived overseas!

Before you make your online purchase, make sure that there aren't any rebate or coupon codes available.  Try a Google search for "coupon code" plus the name of the website you're shopping to look for applicable offers.  If you are paying by a Visa credit card, check out their discount page.  (I saw some good ones there.)  Mastercard offers can be found at this page, though I find it harder to navigate than the Visa page and it seemed very slow.

Keeping costs down on necessary purchases is a great way to improve your financial future.  Take advantage of the internet to locate the best deals available.  You'll be glad you did!

Free Homebuying and Financial Advice

I can always use a little extra financial education.  Fortunately, Navy Federal Credit Union regularly offers seminars on Homebuying, Retirement, Estate Planning, and other financial topics.  Click here for the regularly updated schedule of events.  You do not need to be a Navy Federal members to attend, but pre-registration is required.  If you aren't near a Navy Federal, check with your bank or credit union.  This is a service that many financial institutions offer.  Be careful, however, that they aren't trying to sell you products that you don't need.  I know of a lot of "financial information" seminars that are really sales pitches in disguise.  That's the kind of advice we probably don't need!

Finding It All, Right Here at Military.com

Depending on how you've found The Paycheck Chronicles, you may not know about all the other personal finance resources available right here at Military.com.  There are links to pay charts, military discounts, and a wide selection of advice columns that hit nearly every aspect of life, plus forums where you can communicate with others. 

Some of the best pieces I've found recently include:  What If My Bank Fails by Kelly Johnson, Debt Crisis Stings Military Families by Michelle Singletary, a great post called Protect Your Children's Future by Joy Jackson, and the ever-popular Ask June column written by June Walbert, a Certified Financial Planner with USAA.

I invite you to take a few minutes and check out the offerings here at Military.com.  You never know what you might find!

New York Times Says: Financial Compatibility Makes for Happy Marriages

It seems kind of obvious, especially if you've been married for a while.  An article posted at the New York Times.com last month states The Key to Wedded Bliss?  Money Matters.  It has quickly become one of the most emailed and linked articles on the web right now.  In this article, Tara Siegel Bernard claims that the secret to a happy relationship is sharing the same financial values and goals.  I agree, but sometimes when you're busy falling in love, it is easy to gloss over the fact that you don't see eye to eye on issues like spending and saving.

Bernard lists seven strategies that couples can use to help improve their financial compatibility: 

1. TALK AND SHARE GOALS:  Ideally, this will happen before you are married.  However, even couples who have been together for years, sometimes years of fighting about money, can benefit from explicitly sharing their long-term goals.  Once you've heard about your partner's goals, you can digest how this works for you and how you can work together to reach these goals.
2. RUN A HOME LIKE A BUSINESS:  Business plan for their money.  They make a budget and stick to it as much as possible.  Key partners are all involved in large financial decisions.  Someone is responsible for making sure that the bills get paid and checkbook gets balanced.  Many couples find it helpful if that responsibility gets shared over the course of a year or two.  Military couples, in particular, need to make sure that both partners are on board with how their financial systems operate.
3. BE SUPPORTIVE OF CAREERS:  This seems so obvious to me.  How many people have you known that left the military because their spouse hated it?  There are few careers, military or civilian, that can thrive without the support of both partners.  Working takes time and energy and it is hard if your spouse resents your giving that time and energy to your job.  You'll find it doubly hard to be successful if your efforts at work are causing trouble at home.
4. ENJOY, BUT WITHIN REASON:  Take a little money to have fun with your life.  When you're paying off debt or building an emergency fund, keep your splurges small:  ice cream cones from the fancy shop or take-out shared on your patio.  As you improve your financial position, you might be able to afford a new TV or small trip.  The key is balance:  if your spending is going to put you back on the financial edge, then it is probably too much.
5. USE A MEDIATOR:  An independent third party, whether a financial counselor or a marriage therapist, may be able to find common ground between two partners who seem to disagree about everything to do with money.  Having an outsider's point of view can help bring you and your partner together to decisions that will make you both happy.
6. MAINTAIN SOME INDEPENDENCE:  Even if it is only $10 a week, each partner needs to have some money that they can spend however they want.  When we were first married, my husband and I each had an allowance for things that were outside our budget:  McDonalds, beer, new shoes.  Knowing that my Big Mac was coming out of my own special money made it easier to spend a little without upsetting our bigger financial plans.
7. INVEST IN YOUR MARRIAGE:  Even if it costs a little money, you must put time and energy into your marriage.  Depending on your family, you might need a babysitter for date night, or a weekend away from a house full of teenagers.  Most importantly, don't be so focused on your financial goals that you forget to keep your relationship strong.

Bernard makes excellent points that make perfect sense to me.  I know that I've been fortunate that I married someone who thinks basically the same ways about money that I do.  We didn't really talk about it much before we were married, so I know that I'm very lucky.  We have used many of these strategies over the years to help keep us on the same financial path.   I've noticed as we've been married longer, it gets easier to just keep on the same direction rather than revisiting our goals and plans.  I hope to use this article to jump-start some conversation so that we can keep moving in a positive direction.

Military Spouse Residency Relief Act

Over at Military Etc, Homefront 6 has written a fantastic post on the Military Spouse Residency Relief Act.  Currently under consideration in the House of Representatives, this piece of legislation will allow military spouses the same rights regarding residency as their active duty husbands or wives.  While not strictly a financial matter, it will impact the finances of military families, particularly with regard to the issues of personal property taxes and state income taxes.  The end of the article gives contact information so that you can voice your opinion about this bill.  Click on over and check it out!

The Case for Separate Credit Cards

Today, I'm going to tell you why I think that you and your spouse should have separate credit card accounts.  I know that there are some people who will disagree with me, and others who believe that you should never have any credit cards at all.  It is my opinion that a properly used credit card can be a useful tool, and that the benefits are increased if each spouses maintains their own accounts.

Here's why:

1. While it is easier to just pay one bill each month, having separate accounts will make your life much easier if your wallet (or entire identity) is stolen.  Last year, someone took my husband's things from a gym locker.  After canceling his cards, he had to get a new drivers license, over the internet because we don't live in the state from which his driver's license is issued.  Ordering the license required a credit card and because we have separate accounts, he was able to use my credit card to get a new license.  Were our accounts together, canceling his card would have inactivated mine until new numbers were issued.  It was a minor inconvenience, but imagine if this had happened while we were traveling or PCSing.  What a pain that would have been!  I know that there are ways to pay for hotel rooms without a credit card, but mid-move isn't the time that I want to figure out how to manage that.  Extend this small example of a stolen wallet to a widespread case of identity theft and I believe it is easy to see how helpful it would be to have your account separate while you are sorting out the chaos of someone using your personal information.
2. If you have already established a good credit history, opening and closing of accounts will negatively affect your credit score.  Eventually it will recover, but it may take a long time.  You particularly do not want to close your oldest accounts, as the length of that account makes up a sizable portion of your credit score.
3. If you are separated, divorced or widowed, your financial situation may be very challenging for a while.  The tumultuous times of divorce or death are not the right time for you to be trying to build up a credit history.  It is not fun to think about, but unless you and your spouse were to die at the same time, all of us will be managing our own money for some period of time.  When my grandmother was widowed, she was very unpleasantly surprised to discover that she didn't have any credit in her own name.  All of the family's credit accounts had been issued in my grandfather's name.  She was very fortunate that she had the time to slowly build up a credit history without any large life events, such as the purchase of a new home, in the meantime.
4. As long as we're on unpleasant subjects, maintaining separate credit can provide you with some safety in the event your spouse were to suddenly begin making bad financial decisions.  Depending on your exact situation, you may not be liable for credit card bills run up by your partner if you are not attached to the account.

I have friends who are convinced that having separate credit card accounts shows a lack of trust or even some bigger issue.  For me, it is a sensible and useful way to make sure that both partners are building positive credit histories, as well as helping to make our lives run as smoothly as possible.

What do you think?

Education Essential Intel

If you're trying to go to college, I'm sure that you are thinking about the best ways to pay for it.  Military.com has a wonderful resource for information about the finances of education:  scholarships, special programs and the GI bill.  This resource is called Education Essential Intel and it is written by Terry Howell.  I encourage you to click on over there to learn more.

Wishing I Was Army. And Overseas. And...

Thanks to Veteran Military Wife at Life Lessons of a Military Wife, I just learned about the Army Emergency Relief's fantastic Overseas Spouse Education Assistance Program (OSEAP).  It seems that AER offers assistance in paying for undergraduate education for the spouses of Army military personnel during the time when spouses and their soldiers are residing outside the United States.  There are a number of regulations and eligibility requirements, including a financial need requirement, but still it looks like a fairly straightforward program.  General information is available at the website now, and the applications for term 3 will be available at the website on October 14th.  The PDF of the description, with more details, is located here.  What a wonderful blessing if you are trying to pay for an education!  I encourage you to investigate this program if you've been interested in going to school but have wondered where you would find the money.

Free Online Magazine: Military Money

Military Money is a magazine and website devoted to financial information for military families.  You can subscribe to their online edition for free...just go to Military Money and click on the subscribe tab at the top of the page.  You'll have to respond to a confirmation email to activate your subscription.  Another tool to put in your financial management toolbox, and it's free.

Less Mail? Sometimes, It's a Good Thing

Is your mailbox a minefield of alluring credit card offers and enticing catalogs?  Even when you have a lot of self control, those offers can be enticing.  Plus, the credit card offers can give identity thieves an easier opportunity  to open credit in your name.  Make your mailbox a safer place by removing all these attractive offers.  Here's how:

To stop the credit card and insurance offers, you can telephone 1-888-5OptOut (1-888-567-8688) or go to www.optoutprescreen.com.  For more information about opting out of financial and insurance offers, you may go to the FTC Privacy Choices for your Financial Information page, the FTC Prescreened Offers of Credit and Insurance page, or the FDIC Financial Privacy page for more information.

For catalogs, you can start by calling the individual catalog companies, or you may contact the Direct Marketing Association at www.dmachoice.org.  Opting out through the DMA requires that you either furnish credit card information to verify your identity (but it is free and there will be no charge to your card), or print and mail a form with a $1 charge for handling.  I have not yet opted out through the DMA as I find it just as simple to call the few companies from whom I receive catalogs.  The DMA opt out program will only apply to companies that are members of the DMA and offers several choices to allow certain companies to still send you their advertisements and catalogs.  In addition, DMA opt out options include email.

Eliminating extra advertising and offers from your mail will help you maintain control over your spending and possibly help to curb the opportunities for identity theft.  Explore these options to see if they would help you!

Renters Insurance? You Need It, and You CAN Afford It

Insurance is important, there is no doubt about it.  Car insurance, health insurance, life insurance and disability insurance are all part of a good financial plan.  One insurance that is often overlooked is renter's insurance.  If you are living in military quarters or renting off-base, you really need to have renter's insurance to cover the cost of your things and also any liability that might arise from your occupancy.  It is very affordable, easy to obtain, and will make your life easier and more peaceful.

So, what does renter's insurance cover?

Renter's insurance pays for all kinds of damage, theft and other loss.  First, it covers your personal property.  You might be thinking that you don't own a lot of things.  You would be amazed at how quickly your books, CDs, uniforms and kitchen things can add up to thousands of dollars.  If you have a fully furnished house, you are easily looking into tens of thousands.  Renter's insurance covers your property from theft and damage from fire, smoke, wind and internal plumbing problems (but not external floods.)  In addition, renter's insurance provides coverage for your belongings even when they're not in your house.  Every policy is a little different, but usually your things are covered up to a percentage of the total value of your coverage.

In addition to personal property coverage, renter's insurance offers liability coverage.  What does that mean?  Well, if you accidentally have a little kitchen fire, renter's insurance will help pay for you to fix the kitchen (which your lease probably holds you responsible for.)  If someone trips leaving your house and needs medical attention, renter's insurance will provide you protection from expenses that result.

There are many questions to consider when purchasing renter's insurance:

1. How much coverage do I need?  Insurance carriers usually have worksheets or online calculators to help you figure out how much insurance would be right for you.
2. Is it replacement coverage, or actual cash value (the price you paid, minus age and wear)?
3. Do I need flood, earthquake, or other natural disaster coverage?
4. What items are not covered or have coverage limits?  Do you need a separate policy for your computer, jewelry, or other special items?
5. How much coverage do you have outside of your home address?  Will your iPod be covered if you are deployed?  Is your CD collection covered if it is stolen from your car?
6. How much coverage do you have if you damage your dwelling?  An overflowing sink or a fire can cause damage not only to your unit, but also to adjacent units.  You'd be amazed at how fast the costs can add up.
7. Will this policy pay for your extra housing expenses if you do have damage to your unit?
8. Does this policy cover everyone in the unit, or just the person who is named in the policy?
9. What kind of discounts are available?  Many companies offer discounts for particular safety features in the home, for military service, or discounts for customers who have multiple policies (such as your auto policy.)
10. What are the payment policies?  Do you pay for the entire year at once, or is there a payment plan available?  What fees are involved in a payment plan?
11. What is the policy's deductible?  A deductible is the amount of loss that you are responsible for before the insurance will start to pay.

Renter's insurance usually costs between $10 and $20 dollars per month.  It is easy to think that you don't need renter's insurance, or that it is too expensive.  However, it is valuable coverage that will protect you against many different kinds of loss.

New Checking Option from Navy Federal

I was over at Navy Federal Credit Union's website today, and I noticed a bit on the home page advertising their new Active Duty Checking Account.  This account requires a regular direct deposit of active duty pay, but it has the benefit of free checks and ATM rebates of up to $20 per month, in addition to the regular benefits of Free Web Bill pay, Visa Check Card, and no minimum balance.

If you hadn't yet heard, Navy Federal has recently opened their membership to all Department of Defense branches of the armed forces. Their field of membership now includes all Army, Navy, Marine Corps and Air Force active duty, retired, reserve, National Guard and DoD civilian personnel.  We've been Navy Federal members for over 20 years and have never been less than delighted with their service.  They have very competitive rates on loans and credit cards, plus their mortgage offerings are fantastic.  If you haven't yet checked into Navy Federal, I encourage you to see if they might be right for you.  Now that they've opened their membership to all branches, locations are opening on Army, Marine Corps and Air Force bases all over, so it is more convenient than ever!

Update:  A reader just commented to me that she going to call Navy Federal today to change her account type.  Guess what?  You don't even have to call!  If you go online and log into your checking account, there is a link on the right that says "change checking account type."  It is so quick and easy!

Christmas Already? The Tree, and Entertaining

For many families, the tree is a huge part of the Christmas tradition.  Buying it, decorating it, looking at the pretty lights - all these things contribute to the holiday excitement, and the holiday spending.  Here are some hints for keeping the costs down as you put up the tree:

1. Do some pre-shopping before you go out to buy the tree.  Prices vary dramatically from vendor to vendor!  See if any local charity groups are selling trees; they are often very affordable and you're also supporting a worthwhile cause.
2. Buy smaller.  Trees look a lot smaller outside.  Once you get the tree home and put it in the stand, you often find that you'll have to chop off a bit to make it fit and then scrunch your angel or star down.  This can be a huge problem if you have a large tree topper.  You can also stretch a smaller tree by placing it on a small table (like a nightstand) or sturdy wood crate covered with your tree skirt or other festive fabric.  This also keeps kittens out of ornaments, and lets the presents be seen instead of hiding under the boughs.  As a bonus, the smaller the tree, the fewer lights and ornaments you'll need.  If the emptiness below bothers you, wrap a few large empty boxes to set the scene.
3. See if there is a "cut your own" tree farm nearby.  They can be quite inexpensive, plus it is a fun family memory.
4. I've heard that the price of trees goes down as you get closer to Christmas.  I don't know if this is true, as we usually wait until near Christmas just so we won't have a tree drying out in our house for weeks.  (Though they were probably all cut at the same time.)
5. If you are placing your tree against a wall or in a corner, look for a tree with an unattractive side and ask for a discount.
6. Consider buying an artificial tree.  They are certainly cost effective, especially if you get one after the holidays when they are on clearance.
7. Warning:  Grinch Alert!!  If you are traveling and won't be home on Christmas, skip the tree.  Do all the other decorations, though.
8. Don't try to buy a lifetime of ornaments in a year or two.  Our first Christmas, my husband and I filled in between our few ornaments with bows, and made a big bow topper.  Over the years, we've picked up ornaments as we travel, received them as gifts, and the kids have brought home lots!  We can barely fit them all on the tree now.  I can't imagine if we'd run out and bought boxes of ornaments when we first married - it would have been very expensive and they'd be gathering dust as we use our more meaningful ornaments.
9. Buy LED lights.  They are a little more expensive, but they use up to 1/5 the electricity of traditional lights and they last a lloonngg time.
10. Teach your children to make paper snowflakes.  You can use already recycled paper, especially if it is colored.  (My kids bring home gobs of paper from school).  Challenge them to make smaller and smaller designs.  Then teach them how to sweep up all the little bits of paper!

Many people enjoy hosting holiday gatherings and they can be a lot of fun.  It's not fun, however, if you then discover that you spent your rent money preparing a lavish feast for your entire family.  There have got to be some frugal ways to entertain.  Here are some ideas to get you started:

1. Tried and true:  the potluck.  As people to bring a dish to share.
2. Appetizers only.  Timed right, a selection of small appetizer, chips and dips can make for a fun and inexpensive party.
3. Champagne and pizza.  There are numerous inexpensive champagnes available, plus frozen pizza baked up hot and bubbly from your oven.
4. Soups or stews can stretch to feed a lot of people for a little bit of money.  Chili can be made with lots of beans and not so much meat. 
5. Keep your eyes out for sale items.  Most of the big Christmas dinner type items go on great sales at some time during December.  This is probably not the time to be hoping for the Commissary to be your best bargain, as the chain grocery stores use the main parts of Christmas dinners as a loss leader to bring you into the store.
6. As your friends and family to bring the side dishes if you are cooking a big dinner.
7. Consider cost when planning your menu.  Turkey is much cheaper than prime rib.  If you love splurging on something special during the holidays, maybe you can splurge for just your immediate family and serve the inexpensive item at your big gathering.

This post has been hard for me, as I find it easy to overspend on food for entertaining.  I would love to hear your suggestions!

Don't Buy New!

It's rather hard to survive without buying anything, however, many things that you can buy used and save a lot of money.  In her article at MSN Money, Liz Pulliam Weston explains the 10 things you shouldn't buy new.  I agree with everything she says, plus I would add a few.  My additions:

• fancy children's coats.  In my family, we call them church coats.  Anything that you wouldn't let your kids wear to school qualifies.  I scour consignment shops and let friends know that we gladly accept hand-me-down.  Heck, I once had a friend with twin girls just a bit bigger than my oldest children.  When I noticed that they had new coats at Sunday School one week, I asked if I could buy the old ones from her.  She gave them to me, for free, and we've been loving them for 2 years now.
• pets.  Not only is it much less expensive to get your new pet from a rescue league or shelter, you are also giving a new home to an animal that doesn't have a home.  How great is that?
• baby gear.  I admit, I did purchase new car seats for my children, for safety reasons, and new strollers because old ones tend to get rather gross.  However, my children all managed to make it through their babyhood in used cribs, changing tables, bouncy seats and swings.  I did purchase a few new things when we were overseas because there was no place to buy a used exersaucer in our non-American community and I could have it shipped to my APO address for a resonable cost.  Similarly, used pack-and-plays were so expensive overseas that it was cheaper to buy new and have it shipped.  (Plus, then tend to be recalled a lot, which is pretty scary.)

What items have you successfully bought used?  What didn't work so well?  Share your tips and thoughts in the comments.

Pulling Together Pennies in a Pinch

Every once in a while, we all need to pull together some cash or other spendable assets quickly.  Here are five quick and relatively painless ways to find money fast:

1. Gather up your change.  Check everywhere:  in the car, near the dryer, on your dresser.  Search for a bank that won't charge you a fee.  Many banks have free coin counting for their customers, but some banks offer the service to non-customers as well.  In the Washington, DC, area, Chevy Chase bank has certain locations with coin machines that are free, even to non-customers.  Use this link to locate a location near you that offers the Change Express service.)   Special advanced Coinstar machines don't charge a fee if you turn the money into gift cards, which you could then use to buy something you need.  (Unfortunately, they don't have any choices that would fulfill true "needs," like a grocery store or pharmacy.)  I've heard rumor that some Commerce bank locations also offer free coin counting even if you don't have an account with them, though I couldn't confirm this.
2. Take the time to make returns.  Many of us have unwanted items sitting in our car, or in our closet, waiting to be returned.  Do it today, clear out your house, and make a little cash (or credit) at the same time.
3. If you have a rewards credit card, check your statement.  I recently redeemed the accumulated points on my Navy Federal card for two $75 Navy Exchange gift cards.  That will buy several tanks of gas.  I was so excited!
4. Consider selling your unwanted items on Craigslist or eBay.  This probably won't get you cash today, but it will work within a week or two.  If you don't know how to use these, ask a friend to show you how.
5. Cash in your excess books, CDs and video games.  There are hundreds of online resources, including half.com, Amazon, and SecondSpin.  Textbooks can bring big money; look at Textbooks.com or Bookbyte.  If you don't want to sell online, or you can't wait, check the telephone directory for local resale shop locations.
6. Submit any refunds or claims that you've pushed to the side of your desk.  Just yesterday, I found a $10 grocery rebate on my dresser, unmailed.  Plus, I have a receipt to submit to a volunteer group for reimbursement.  And, somewhere, I have the receipt for my kids' eye exams last month.  Better get that into Tricare, huh?

With a little effort, you should be able to pull together a little extra cash to tide you over.  Happy hunting!

Christmas Already? Ways To Save (Installment 3)

I hope that you've found the Christmas posts helpful so far.  Today, I'm going to hit on cards and decorating.  For me, decorating is the little expense that slowly eats into my holiday budget.  A few candles here, a new wreath for the front door, maybe that cute ornament I saw at the craft fair on base.  Next thing I know, I've spent all the decorating money and I'm not even done yet!

So, here are my ideas:

Cards:

1. Don't buy cards, just print a Christmas letter on festive paper (which can be found very cheaply sometimes.)  Put in regular envelopes.
2. As mentioned in the first post, send postcards instead of cards in an envelope.  You'll save 15 cents postage on each card.  That can really add up, especially if you've been a military nomad for years and have over a hundred cards to send.
3. Send ecards to your tech savvy friends.  Probably not a good choice for some of the older generation, but you can save a bundle this way.  (I know many people won't like this, including me, but it is a good way to save.)
4. Pick through the discount cards carefully.  Even at the dollar store, there are beautiful cards and there are cheap looking (and feeling) cards.  If you are going to all this energy, might as well choose the nice ones.
5. Consider paring down your list.  My family doesn't give cards to people that we see regularly.  I don't know why, that is just a line that we've drawn. 

Decorating:

1. Think simple.  You don't need a three foot waving Santa to make your house feel like it is the holidays.  Also, remember that you don't have to holiday-ize every room in your house.  The front door area and the living room are probably the areas that will have the biggest impact.
2. See what you already have, and be creative.  Too many ornaments for the small tree in this house?  Put the extras in a bowl for a snazzy centerpiece.  Tuck in holly leaves or greens for extra pizzazz.  Andi at SpouseBUZZ does a beautiful version - check it out here.
3. Scour your cupboards for linens that can be put into service.
4. Wrap your pictures.  Take down a picture, wrap the front in gift wrap, and tie a bow.  Rehang.  Very festive and elegant.  Pictures of a sample can be seen here.  I prefer a more subdued print, but that's just me.
5. Bring in the great outdoors.  Trim a nearby holly to decorate a mantle, snip evergreens to wind around your banister.  Bare twigs can make a dramatic display.  Pinecones are perfect - plain, beglittered, or spray painted to fit your decor.  Put them in a basket, a bowl, or a box covered with wrapping paper.
6. Think produce:  a bowl of apples, or orange, or lemons make a pretty decoration.  Include some cinnamon sticks of you're feeling crafty.
7. String popcorn for garland.  This can be very time consuming, so you might want to start now.  After several years of beginning popcorn strands, then giving up, I learned a secret:  you can keep them from year to year.  Just make sure that they are stored very securely to keep unwanted pests out.  Cranberries, or red wood beads, make a nice accent interspersed in the popcorn.
8. Gather up the random craft supplies that have been cluttering up your closet, and let your kids do the decorating for you.  It might not be your style, but it will be festive, and your children will absolutely love it.
9. Take a selection of your children's teddy bears and wrap holiday ribbon around their necks.  If you really want to make them special, gift wrap little boxes to put in the paws.  Group together on a rarely used chair or table.
10. Purchase a can of gold or silver spray paint and glitz up ordinary objects.  Dried flowers,
11. Use your lights when you'll enjoy them.  Electricity is getting expensive.  Turn off the lights at bedtime and don't turn them back on again until sunset the next day.
12. Use fragrance to decorate.  A pumpkin scented candle will make the whole house smell like the holidays.  Or, put an apple peel and some cinnamon on the stove and let simmer.
13. Candles, candles, candles.  This can be a bother to supervise, but candles will really impart a holiday atmosphere.  The children love it, and they think it is very special when you light the candles.

Tomorrow:  The Tree, and Entertaining