I like my slow cooker - I like it a lot. Putting food in while I'm still firing on all cylinders (which seems to end around lunch) make dinner time a lot more pleasant at Casa Kate. But I lack inspiration. Even my beloved Allrecipes.com doesn't always inspire me.
Which is why I was so glad to come across this website, A Year of Crockpotting. The author, Stephanie, has amazingly used her crockpot every day for 2008. Trying everything from 5 Layer Brownies to Corn on the Cob to Rotisserie-Style Chicken to bread (really! and read the comments to learn about making non-gluten free bread, too), Stephanie critiques her results, includes the kid's opinions and makes me laugh at the same time. In addition, she has helpful information about slow-cookers, common problems with solutions, and lots of helpful tips in the comments section.
I know that using my slow cooker saves my family money by using fewer processed/prepared foods, including inexpensive ingredients, and keeping us from driving through our neighborhood fast food palace. I'm going to bookmark Stephanie's site and see how often I can use my slow cooker in 2009.
For those families that have non-military income, a valuable benefit can be a Flexible Spending Account. However, they're not a very good benefit if you don't spend the money. Jim at Blueprint for Financial Prosperity has put together a list of things that you can buy to spend those last few dollars before the deadline tomorrow. If you're in danger of losing money in your FSA account, check out his list, and add your suggestions in the comments.
In response to From USAA: 5 Ways to Save on Taxes - Before December 31st, Chris from Florida asks, "If you make your January mortgage payment in December to save on this years taxes, aren't you just shorting yourself on your 2009 taxes?"
Good question, Chris. And you are exactly right - it's not like you can take the deduction for both years. The USAA article doesn't fully explain that you should think ahead and decide which year is better for your particular situation. Particularly in military families, your tax situation can be dramatically different from year to year. Deployments, TDYs, PCSs and changes in spouses income can change your taxable income, often by a lot. With this in mind, plan your deductible expense clumping so that you can put your deductible expenses in a year that has high taxable income. For example, if you know that one member of your family is going to be in a tax-free combat zone for most of 2009, then it would make sense to bunch your deductions in 2008. Of course, the opposite is also true - if your spouse is going back to work in 2009 and increasing your family's income, then save those charitable contributions for next year.
Just in case you've already followed USAA's advice and made your January mortgage payment, but now realize that your taxes will be higher in 2009, don't fret. Depending on your mortgage company, there are some things that you can do. Give them a call and explain the situation. They may be able to "back out" the payment, put it into "suspense" and reapply the money in January. I can't guarantee that it will work for you, but you've got nothing to lose by asking. My mortgage lender has been quite accomodating with similar requests, and we regularly moved things around when I was working in mortgage banking.
Thanks for the question, Chris. I look forward to hearing more from you - send on the questions!
As much as I try to limit our restaurant eating, there are three events that seem to increase the number of times we eat out: birthdays, traveling, and moving. With four kids and two adults, eating in restaurants gets expensive pretty quickly. There are a couple of strategies that we use to make sure that our final bill doesn't exceed our budget. Check them out:
Choose your restaurants wisely. Ask around, search the internet, or check the local family magazine for good choices. Our family is fond of Friendly's (mostly because the kids get ice cream with their meals.) Look for special nights such as half price burgers or all-you-can-eat pasta.
Drink water. We do let the kids get drinks if they are included in the kids' meal, but the grownups usually stick to water, with the occasional splurge on iced tea or coffee (free refills!).
Check for deals. Resort towns usually have a lot of newspaper offers, especially in the freebie mags in the hotel foyers. You might find early birds or similar promotions in regular newspapers. Many restaurants, especially chains, offer printable on-line coupons at their websites.
Keep an eye out for "kids eat free" offers. I usually google the name of the town plus "kids eat free." There are a couple of websites that are trying to put together a comprehensive list of kids eat free offers: Kids Eat 4 Free, MyKidsEatFree, and Coupon Diva's Kids Eat Free page are the best country-wide sites I've found so far. Always call ahead to verify that they're still offering the deal. Most end at age 10 or 12, and they usually have a limit of one or two free kids' meals with each adult entree purchased.
Join restaurant birthday clubs. Many restaurants offer birthday deals, and you can sign up for the chain restaurant's lists online. Freebies4Mom has a comprehensive list on their Birthday Freebies page. Some offers will have short expiration dates, but others will be good for a long time. I sign up each member of my family, and keep the offers in my glove box when we travel or move. Sometimes we are only able to use one or two coupons on a visit, but I've been known to get lucky and use four at a time! (I always ask to use all that I have - the worst they can do is say "no."
Consider purchasing an Entertainment book, which offers 2-for-1 dining and a variety of other substantial discounts. The books are good from their publishing in August through the following November, for a total of 15 months. They are a little pricey, at a regular price of $25-$40 per book, but the price starts to go down before Christmas and continues to drop through the summer. Check this list to see if books are available for the area in which you live, travel or move to! From this page, you can look at the offers available in each individual book and see if it would work for you. I have heard people say that they would never get their money's worth out of an Entertainment book, but I can't imagine how that is true. My local book retails for $30 (but I can get it for $20 if I wait a couple of months) and includes $20 in local grocery store coupons on the front page. Add in one nice restaurant meal and I've paid for the book already. In addition, I find that the Entertainment book offers for hotels and rental cars are often the best deals I can find.
Order wisely. Even if you're just getting pizza or driving through a fast food place, take a moment to consider your options. Would three medium pizzas be cheaper than two large? Can you split an entree, or order an appetizer for your meal?
Hit the buffet line. Chinese buffets are a favorite in my family, but other kinds of buffets can also work well. While you won't find the most elegant food on your average buffet, they do usually include a nice variety of fresh fruits and vegetables, plus enough variety to please even your pickiest eater. Lunch buffets are less expensive than dinner buffets, and children's prices are almost always based upon age.
As you can see, there are many ways to keep restaurant dining affordable. Combine a couple of strategies to make sure that your next trip, celebration or move doesn't break the bank.
Have you ever had your wallet stolen, lost your purse, or just misplaced a credit card? While I can't make it painless, a few simple steps can make sure that you lessen the chances of long-lasting trouble. Here's what I suggest:
Be prepared: Know the telephone numbers to report your credit cards stolen. Keep them in your cell phone, and keep a hard copy accessible. You might want to keep a copy in your glove box - you usually aren't at home when things are lost or stolen. Don't carry unnecessary credit cards with you, especially when you travel.
Act fast: Don't waste valuable time looking for your things. You can always call the companies back if you find your wallet. Call your creditors as soon as you suspect a possible loss.
Consider if you want to put a credit freeze on your credit bureau accounts. Last time my husband's wallet was stolen, we took a long time to decide whether to use a credit freeze. At that time, we decided not to, but it was a hard decision. I'm still trying to learn more so that I know what to do next time.
.
Here's a short video clip from USAA that talks about stolen wallets:
"The
only reason a great many American families don't own an elephant is
that they have never been offered an elephant for a dollar down and
easy weekly payments."
In-person financial counseling is
now available in most locations through Military OneSource, in
partnership with National Foundation for Credit Counseling (NFCC). NFCC
provides financial education and counseling services at hundreds of
local offices nationwide. Military OneSource arranges for you to meet
face-to-face with a financial consultant in your community.
This program is specially designed to provide short-term,
solution-focused financial counseling for service members and families
who may be experiencing a financial setback. Whether you need advice
for a specific debt problem or basic assistance with money management,
a financial expert can help you analyze your situation and develop a
debt management plan.
Six counseling sessions per issue, per calendar year are
allowed for each eligible client. The sessions are available to
active-duty, Guard, and Reserve members (regardless of activation
status) and families located in the continental U.S.
For those unable to attend in-person counseling or in locations where
in-person counseling is not available, Military OneSource will provide
telephone consultations.
Contact Military OneSource at 1-800-342-9647 to schedule an appointment with a financial consultant.
One of the (many) unique things about being in the military is that you get regular pay increases every January, when the new pay tables are implemented. This gives you the opportunity to plan your spending for the following year. New housing allowances and BAS rates were recently posted, so I took a few minutes to look at my family's financial plans for 2009. If I don't plan ahead, that extra money will slip into our everyday spending instead of working towards our financial goals.
Here's what I did:
I started by getting a copy of my husband's last LES. These can be printed at the MyPay website.
Then I made a note of the new, updated amounts. (Thanks to rate
protection, BAH amounts won't go down even if your areas rate falls.)
I did some estimating for changes in taxes, social security and
medicare, and figured out what the net change would be. Then, I
thought about what would be the best use for this extra money? There
are three main choices:
Pay off debt: This is obviously very important. Debt
reduction should be a very high priority for everyone. I have a pretty
ambitious debt reduction plan and we're meeting our goals so far.
Save for retirement: In a perfect world, we would all be
maxing out our IRAs and putting a good chunk into TSP each month. We
recently reduced the amount that we're saving for retirement to pay
down our debt faster. This makes me very nervous.
Build an emergency fund: Experts say that you should have
3-6 months of expenses in an accessible account. I used to think that
we didn't need that much because military paychecks are pretty secure,
but then I started thinking about the unexpected expenses that
sometimes come with military life, and I heard a few horror stories of
people's paychecks being messed up. Now I'm thinking that maybe 3-6
months expenses wouldn't be such a bad idea. So far, we've saved about
month's worth of expenses.
For my family, I am putting a chunk away each month into an
emergency fund, and I am putting the rest into TSP and IRAs. We're
already paying down our debt pretty fast, and we have a small emergency
fund. We aren't saving as much for retirement as I'd like, so that is
my highest priority. Your family's choices will probably be different,
depending on your debt situation, the size of your emergency fund, and
your retirement plans.
I've attached an example (I got the LES from Wikipedia):
In this case, this Staff Sargeant at McGuire Air Force Base will be
earning an additional $119 per month in January, minus a little extra
in deductions for taxes. She could pay that money towards a credit
card, put some in her TSP account, put some into a savings account, or
some combination thereof. Her choices will depending on her situation.
What we all need to avoid is letting that extra money disappear into our existing budget. A yearly increase is a benefit that very few people can count on. Let's use it to our financial advantage!
The 2009 clothing allowances, basic allowance for subsistence (BAS), and special pays for medical professionals have been announced. BAS rates have been set at $326.87 per month for enlisted service members, and $223.04 for officers. That rate is an increase of about $32 per month for enlisted, and about $20 per month for officers.
As usual, the holiday season has been hectic here. Parties, presents and putting up the Christmas tree have taken a chunk out of our usual schedule. However, as I thought about yesterday, I wonder about some of the choices that I made regarding time and money.
Yesterday was supposed to be the last "getting things done" day, so that I could write all day today and then enjoy my family Wednesday and Thursday. I did get many things done, but not all of them. I ran all over town looking for the greatest bargains on a few last minute items. I found a few, but not all. I found some great sales and snagged a few fantastic bargains. What I didn't do, however, was plan ahead.
I only had my debit card and some cash - cash that ran out before I got
to the store that didn't take my debit card. I didn't check the
holiday hours on stores before I left, and found myself driving to a
store that was already closed. And in mid-day desperation, I decided
that the best thing for dinner was to swing past the commissary for a
big frozen entree (you know the one, it comes in a red box), a loaf of
bread and some frozen vegetables.
I guess it could have been worse - I could have ordered take-out or had
fast food. Both of those choices would have been more expensive and
less healthy. Or, I could have planned better, passed up one or two of
those bargains, and made an inexpensive, healthy dinner from scratch.
As it was, my husband made two sides to go with our boxed dinner, so
there was cooking involved anyway. There was clearly enough time to
prepare a proper dinner. In my mind, however, I was too busy getting
the best possible deal to make the time to plan for it.
I find that this happens to me a lot. Where do you draw the line? When you have 50 things on your to do list, does it make sense to add "stop at CVS for the 99 cent toothpaste" to the list? What if that stop at CVS means that you end up spending more money some place else? And it doesn't have to be an obvious connection - what if Tuesday's CVS stop means that you didn't get that extra load of laundry done, so you have to do the laundry on Wednesday when you were supposed to go grocery shopping, and then that means that you ended up stopping at the gas station for overpriced milk for Thursday's breakfast?
I'm curious how you balance the desire to save money with the fact that there are only 24 hours in a day. What do you think?
With Christmas coming very quickly, many of us will be picking up a few gift cards. This video segment highlights a few tips to be sure that you make good choices.
Amongst the hustle of the holiday season, I always keep an ear (and eye) out for the new BAH (Basic Allowance for Housing) rates. You can find your 2008 BAH rate at this webpage. According to the Department of Defense, housing allowances are increasing an average of 6.9% for 2009, which will result in an average increase of $95 for each of the approximately 950,000 service members who draw BAH each year. However, based upon geographic differences, some service members will not receive an increase, and rates will go down for certain area. Thanks to the individual rate protection law, no service member will see a decrease in their actual paid BAH rate as long as they remain in the same posting. Service members who change duty stations after January 1st will receive the new rate.
It may seem too early to think about taxes, but you can possibly
save hundreds of dollars or more by getting your deductible ducks in a
row before the year ends. As with most deductions, income restrictions
may apply so check with the Internal Revenue Service to get details. For starters, see if you can take advantage of these five tax-saving moves:
1. Donate. Spend a Saturday morning going through
stuff you don’t want. “Take those clothes and items [in good, used
condition] to your local charitable organization right away,” says
Sally Herigstad, a certified public accountant and author of Help! I
Can’t Pay My Bills. “Be sure to get a receipt to verify the donation
was made.” Popular tax-preparation software packages have charitable
donation calculators built in, making this one of the easiest
deductions you may be able to take.
2. Pay deductible expenses early. Make your January
house payment in December so the interest deduction is included in your
2008 tax return. And, in December, pay your property tax that is due in
January (for the same reason).
3. Tax-loss harvesting. In light of this year’s
stock market struggles, you may want to consider taking some of the
losers and selling them to realize the loss for tax purposes. Check
with your tax advisor regarding your situation.
4. Put money toward retirement. If you haven’t
started contributing to a 401(k) or similar retirement account, now’s
the time to begin. Your 401(k) contributions are not deductible, but
the money you put into them comes from pretax dollars. So, in effect,
you’re reducing your taxable income. If you have an IRA, don’t forget
that contributions made to Individual Retirement Accounts
may be tax deductible. And, in many cases, you can claim IRA
contributions made after Dec. 31, 2008 — right up through tax day,
April 15, 2009. For 2008, taxpayers under age 50 can contribute up to
$5,000; up to $6,000 for those 50 or older. For accurate information
based on your personal financial situation, you should consult a tax
professional or get more tax tips online from the IRS.
5. Make smart moves — now. Pondering a job move?
Decide quickly if you want to deduct it from your 2008 tax return. You
can deduct job-related moving expenses in any given year if you move at
least 50 miles from your old home and remain employed full time for at
least 39 weeks after the move. If you haven’t met the time test by tax
day, you can still deduct moving expenses on your 2008 return, provided
you expect to stay in the job for at least 39 weeks. But if you quit or
get fired before the time period is met, you have to report it to the
IRS. See IRS Publication 521
for details. Military moves due to a permanent change of station also
qualify for the deduction, but don’t have to meet the distance and time
requirements, says J.J. Montanaro, a CERTIFIED FINANCIAL PLANNER
practitioner™ at USAA.
I really appreciate all the advice that USAA provides for us - good suggestions from smart people.
I recently received a question about refinancing a car loan. In a perfect world, none of us have to take out a loan to buy a car, or we get such a small loan that it is paid off very quickly. Unfortunately, it doesn't always work that way. For a variety of reasons, many Americans have car loans, and some of them are quite large. A lot of people don't know that car loans can be refinanced, it can be easy, and it can save you a lot of money. I have personally refinanced two car loans during my life, and I also got my bank to lower the interest rate on one (in lieu of a refinance.) Altogether, I saved hundreds of dollars in interest on those loans. With current car loan rates advertised as low and 5 and 6 percent, refinancing might benefit you. Want to know how? Here are the steps: (it's not hard, I promise.)
First, figure out the terms of your current loan. You will need to know the current balance, the interest rate, your monthly payment, and any special info. One piece of information that is important is whether your current loan has any "gap" insurance (which guarantees that the lender will pay the entire loan even if car is totalled and you owe more than it is worth.) Another thing to know is how your lender feels about allowing the vehicle outside of the US - some companies won't let you take your car on PCS orders outside of the country while they have a lien against it. Make sure that your loan doesn't have a prepayment penalty - it isn't common with car loans but some bad loans do have them. You can call your lender to ask.
Pick one or two reputable banks or credit unions to check with. I have personally refinanced with Navy Federal Credit Union and USAA Federal Savings Bank. I also know that Pentagon Federal Credit Union has excellent rates, and so far their service has been good. You don't have to use these companies, but they are the companies with whom I've had good experiences. Whatever credit union or bank you use is okay. While I don't have any proof, I have found that service seems to be better with credit unions or banks. I wouldn't recommend using a company that specializes in auto lending - I have yet to see an auto lending company with the service, interest rates and fee-free policies that a good credit union or bank offers.
Check online to see their current interest rates. Decide if your vehicle qualifies as new (usually this model year and next model year), used, or refinance, based upon your bank/credit unions definitions.
Looking at your current information, decide whether should you pursue a refinance. The main reason that people choose to refinance a car loan is that they can get a better interest rate. However, that isn't the only reason. Sometimes borrowers would like to shorten their loan term, or are unhappy with their current company for some reason. I'm sure there are more reasons that I can't think of.
Once you've chosen a bank (or two, or three), call and ask questions.
Are there any fees associated with refinancing a car loan? Are you
eligible for the advertised interest rate? Are there any rate
discounts available, such as for automatic payment? Take notes so you
don't get confused. Check to see if they prohibit vehicles on which
they have liens from
leaving the US - even if you have no plans to PCS, this is an important
thing to know. If you do get unexpected orders outside the US, dealing
with an uncooperative lender will make your life difficult.)
Call your current lender and tell them that you are considering refinancing. Let them know the best interest rate that you have found and ask if they would be able to match that rate. I know this has worked with USAA in the past. I have heard that other lenders won't go for this, but I think the possibility warrants the time for a phone call. The worst they can say is "no." If they do agree, however, you've saved the retitling fee, plus the time required to process a refinance.
If your current lender won't lower your interest rate, call or go online to your first pick bank or credit union. Apply for a refinance. You will usually get an answer very quickly, within a day or so. Sometimes it is even faster! Make sure to ask if there are any interest rate discounts available, such as the automatic payment discount I talked about above. Once you are approved, you will have to go to the bank or credit union, or have the papers delivered to be signed, for the new loan to be processed.
You will have to pay to have a new title issued for the car. The reason is that the car will then be retitled with the new lender's name listed on the title. Fees vary by state but usually run between $10 and $50. Your state motor vehicle administration can tell you about the fees before you decide to refinance. The lender usually takes care this for you; just check to make sure that it is done. Make sure to retain the release of lien from your previous lender - you don't want to discover several years from now that they failed to release the lien on your car.
All this can take as little as half an hour, or a couple of hours at the most. Obviously, people with the larger loans or the higher interest rates will benefit the most from refinancing, but even lowering your car payment by $20 a month can help during these challenging economic times. Take a few minutes today to see if vehicle refinancing will work for you. I hope to be hearing success stories soon!
I really like Suze Orman. Her advice is solid and she doesn't dance around the hard facts of straightening up your financial life. Suze recently did a bloggers-only Question and Answer session. Will Chen of WiseBread was one of the lucky invited bloggers, and he has posted a transcript of the event at WiseBread. It is an interesting read, both the questions from the bloggers and Suze's answers to the questions that were asked. They were tough questions with tough answers. Suze's answers always motivate me to make some positive changes in my financial position. I hope that you enjoy read about this interview, and maybe find a little motivation yourself!
I imagine that most of us have been in this position at some point in our lives: figuring out exactly how many bills to pay so that you can still eat until the next paycheck comes in. Living paycheck to paycheck is stressful, but if you are overburdened with expenses, it can be hard to get out of the cycle. What's a person to do? NCN at No Credit Needed has written an really excellent article, 10 Steps to Escaping The Paycheck to Paycheck Cycle. I absolutely love this direct and uncomplicated list of doable steps. He didn't come up with fancy plans and charts (though you know I love a good chart!), but rather made it plain and simple. If you are currently counting the days between now and the next payday so that you can figure out when you can afford to pay your bills, I know that you will benefit from this article. Check it out!
Have you heard of the Department of Defense Savings Deposit Program (SDP)? This high-yield savings account is a benefit of serving in areas that authorize the receipt of Hostile Fire/Imminent Danger Pay. Want to know more?
Eligibility: Service members (including National Guard and Reserve members) receiving Hostile Fire Pay and deployed for at least 30 consecutive days (or 1 days in each of three consecutive months) are authorized to make deposits into a SDP account.
Deposits: Service members may begin making deposits on their 31st consecutive day in designated area. Deposits can be made via allotment, check or cash. Cash and check deposits are made to the finance office in your deployed location. Deposits are accepted in $5.00 increments, with a minimum deposit of $5.00. If you are depositing via allotment, be sure to stop the allotment when you leave the combat zone and before requesting a withdrawal.
Interest: Interest is computed at 10% per year - much higher than any other savings product I can find. It is compounded quarterly. Deposits made during the first 10 days of the month will accrue interest from the first of the month. Deposits made after the 10th will begin accruing interest on the first day of the following month. Basically, the money must be in the account the entire month to earn interest for that month (except for the 10 days grace period for making deposits at the beginning of the month.) Interest will only be earned on total deposits up to $10,000, and that $10,000 includes any accrued interest. The interest accrued is taxable even though the money deposited into the account is not taxable - that can be a little confusing if you don't know.
Withdrawals: You may only close your SDP account after departing the combat zone. Interest will continue to accrue up to 90 days after losing eligibility, ending on the first day of the month during which you have been out of a combat zone for 90 days. You do not have to remove the money from the account when you leave a combat zone, but it will stop earning interest on the first day of the month during which you have been out of the combat zone for 90 days. SDP allotments must be stopped prior to requesting a withdrawal. Withdrawals typically take between 10-14 business days to process. There is a provision for emergency withdrawals, if the health or welfare of the service member or dependents is endangered.
From these details, you can see that it sounds like an excellent program. A service member serving in a Hostile Fire area who deposited their $225 in Hostile Fire Pay into the account for 12 months would earn $150 in interest during the twelve months they were deployed, and another $50 in interest during the next two months post deployment. Here's the chart (and please, feel free to double check my math):
Just imagine if you could save more than just your Hostile Fire Pay, or if you could deposit a small chunk into the account at the beginning of your eligible time. What if you had $2500 in a savings account and deposited that into a SDP account during your first eligible month, and still deposited your Hostile Fire Pay? During that one year, you would earn $412 in interest, plus another $95 during the two post deployment months. In contrast, money kept in my current emergency fund would earn approximately $25 in interest during the same period of time. That is almost $500 difference!
Is it as good as it seems? As always, there is no clear cut answer to that question. With other current investment options paying such low rates, it seems like a good choice for many people. I have heard criticisms about the interest payment and compounding schedule, but I'm not sure they are enough to make it a bad deal. Another suggestion is putting the same money into your TSP account instead. It probably won't grow as much, but it will tax-deferred and it will really give your retirement account a big boost.
I am anxious to hear your experiences and thoughts about this program. My husband is considering participating when he deploys next year and we want to learn as much as possible!
Military.com is working with their sponsors and other companies to improve the quantity and quality of the discounts offered through Military.com. Click here for the main discount page, then link through for specific discounts that will help your family save money. I have a couple of discount resources that I use when I shop, and the Military.com list has saved me a bundle. The list includes both online and bricks-and-mortar (real stores) locations. Post your savings here to let us know where to look for good discounts.
We often talk about the costs and problems with credit cards, but they can also offer some benefits as well. However, here's an excellent segment from CBS News' Early show that talks about the perks that come with some credit cards:
I knew about rental car coverage and theft insurance, but I've never heard of return protection or medical assistance. I'm going to call my credit card company to learn about the hidden benefits that come with my card. I'm curious to hear what you learn about your card, too!
Elsewhere on Military.com, 5 Money Mistakes that Smart People Make is short and useful! I know that I'm especially guilty of number 1 and number 4. I easily stress over small expenses, while neglecting large ones. And I definitely let cash slip through my fingers - a Diet Coke here, a little snack there - they all add up. I seem to spend my little bits of cash on food and drinks. What about you?
I just wanted to say that I've fixed both my internet connection, and my issues with Typepad (the service that we use to write this blog) and things should return to normal around here. The last few postings were actually ones that I'd put in the queue to be published before all things electronic stopped working. It has been frustrating, but I think I've got everything working properly again.And now back to our regularly scheduled programming...
USAA often produces "webinars," which are presentations that are shown over the internet. In addition to watching (and participating) during the designated time, they are also available to be viewed for a period of time afterward. Here is the link to a recent webinar on retirement planning. It features J.J. Montanaro, Certified Financial Planner, and Laurel Bragg, Chartered Retirement Planning Counselor, and offers good information on retirement planning. It will be available for viewing until January 30th, 2009. It is almost an hour long, but it can be paused and watched in bits. I have an older computer and it did take a while to load, so be patient! I think it is worth the time to hear the excellent advice of these investment professionals.
University of Maryland University College (UMUC) announced a new
scholarship fund to assist active-duty, enlisted Servicemembers and
their families. The $200,000 fund will cover the cost of textbooks for
enlisted, active-duty members of the U.S. Armed Forces as well as
tuition assistance to spouses. All awards will be need-based,
renewable, and contingent upon the student's academic standing. For
more information, servicemembers and their spouses stationed in Europe
may contact Edna Roy at eroy@ed.umuc.edu; those in Asia may contact Michael Kulyk at mkulyk@asia.umuc.edu. UMUC currently enrolls an estimated 60,000 military servicemembers, dependents and veterans each year.
Remember:
Not applying for scholarships is like turning down free money. Get
started on your search for scholarships today - visit the Military.com Scholarship Finder.
Would you like a little in-person financial education? Do you have specific questions and wonder who to ask? Well, the Department of Defense has something just for you! In conjunction with installation commanders, the DOD has begun offering Financial Readiness Challenge Events at locations across the country. Available to military members and their families, these events will provide both workshops and individual financial counseling.
"Hands-on workshop sessions will provide
information on debt elimination, investing, car- and home-buying
strategies, the Thrift Savings Plan and retirement planning, building a
better budget and spending plan, paying for college, identity theft,
credit reports, and what to do in today's economy, officials said."
At some locations, special children's programs and child care may be available with pre-registration.
This is the current schedule:
TODAY: Lackland Air Force Base
January 7th: Beale Air Force Base (child care available)
January 24th: Fort Belvoir, Virginia
February 23rd: Naval Base Kitsap, Washington
February 25th: Norfolk, Virginia
March 7th: Fort Polk, Louisiana
I'm sure that more are being planned, but I couldn't find any exact dates for other locations yet.
Registration is available through MilitaryHomefront.
The site also includes flyers, agendas, and other information as it
becomes available. What a great program! I can't wait to attend -
I'll be sure to tell you all about it.
Last week, the bank called to say that they believed that my husband's credit card information had been compromised. They were wrong, thankfully, but it got me thinking about my credit cards and their security. Fortunately, there are easy steps that you can take to minimize the chance that your credit card information will be stolen and used. There are many ways that identity theft can occur, but for this post I'm going to focus on credit cards.
Empty out your wallet and only put back the things that you need. I carry one credit card and one debit card. I'd notice pretty quickly if anything was missing! If you have physical cards for accounts that you never use (and won't use), you might want to destroy the cards. You can always get replacements if your plans change.
Make a photocopy of the front and back of your card. If you use the enlarge option, you'll be able to read the information clearly on the copies. Lock them someplace secure. Make a list of the customer service numbers for all your accounts
Go paperless - receive and pay bills electronically to prevent the possibility of your mail being stolen.
Pick up your mail daily, consider buying a locking mailbox, or use a post office box. Know roughly when your bills should come and call the issuer if you don't receive it when expected. Get to know your mail carrier, and contact the post office if you don't receive any "real" mail for a few days.
Be vigilant at ATM machines and Point of Sale (POS) debit machines in stores. It is often very easy to see people putting in their PIN numbers.
Check your credit report, at least annually, and be sure to check with all three major credit reporting agencies (Experian, Transunion, and Equifax.) Use AnnualCreditReport to obtain your credit report as it is the correct way to get it for free, without going through any outside companies or signing up for any services.
Sign your credit card. I know how tempting it is to write "SEE ID" in the signature block, and the logic seems sound. However, the agreement between the credit card company and you requires that you sign the card, and the agreement between the merchants and the credit issuers requires that the merchant verify a signature. The merchant is not really supposed to accept the card if it isn't signed, but they can allow anyone (even a thief) to sign the card in front of them. In addition, the merchant isn't technically allowed to refuse to process a transaction based upon the customers ability or desire to present additional identification. If you are living or traveling overseas, merchants seem to be much more serious about not accepting unsigned credit cards.
Keep your receipts and match them to your statements. (I'm terrible about this.) Stick a basket in a drawer, the corner of your desk or on a bookshelf to keep them together until the bill comes in. Check your online statement regularly. It is a lot easier to remember transactions if you don't wait for the entire month's bill to review.
If you rent a car, be sure to remove the rental contract from the glove
box when you return the car. It contains a lot of personal information.
If you can't find your card, report it missing immediately. Don't wait for it to turn up, or waste time looking for it. If you find it, you can call back and have it reactivated, or wait a day or two for the new card to come. The faster you report a card missing, the better the chances of preventing someone else from using it.
I'm pretty sure that number 10 is the most important thing, but combined these tips can minimize the hassle of credit card theft and fraud. Happy shopping!
This blog is published with TypePad, which is upgrading it service. I seem to be having trouble linking properly right now, and I'm discovering a lot of broken links. If you find any, will you please email me (using the link on the right) or leave a comment on this post? I'd really like to get them fixed - nothing more frustrating than a bad link! Thank you for your help.
One of the ups and downs of military life is that sometime you need washer and dryer, and sometimes you don't. I'm guessing that military people probably buy (and sell) more washing machines during a lifetime than your average American. Plus, you don't always know that your new housing will need a washer and dryer until shortly before you move in. Using a laundromat is an option, but research shows that the average family will spend $700.00 more per year to wash their clothes at a laundromat that using a washer and dryer at home. Plus, it is so convenient to have your own machines in your house! So, how do you make sure that you're getting the best washer and dryer at the best price?
Before you head out to the store, do a little research and think
about your usage to figure out a few models that might be a good choice
for your situation. Some questions to consider include:
How many loads of laundry do you wash each week? How big are
they? (More small loads? a few large loads? Lots of laundry every
day?)
How much space do you have?
Will your dryer use gas or electricity?
Are you likely to use special wash cycles, or do you always use the same basic cycles?
Do you need to buy new, or would used work for you?
Once you've gotten a general idea what machines might work for your family and your budget, check out this great post, at MyTwoDollars, called Saving Money On An Unexpected Expenses - A Washer & Dryer.
In this article, David talks about the ways that he saved nearly $1,000
on a top-end washer and dryer set. Ask around, or check on the
internet, to see if there is a warehouse or scratch'n'dent center near
you. Often you can find outstanding deals on mismatched or older model
machines. Ask at your local retail stores to see if they have any
scratched units that they would like to sell at a discount. If you
live near a military exchange, make sure to check out their offerings.
I don't often buy things at the exchanges, but we purchased our last
washer and dryer there because they had the best prices around.
If you'll only be needing the washer and dryer for a few years,
consider buying a used set. They can sometimes be found for less than
$100. They may not be the most beautiful or energy-efficient option,
but they will keep your clothes clean and save a lot of money. Check
your local Craigslist, classified ads or local notice boards to locate used washers and dryers.
With a small amount of research, thought, and comparison shopping,
you should be able to find a washer and dryer that will meet your needs. With your own washer and dryer, you'll save both time and money - how great is that?
Wow! If you're in the southeast (Florida, Georgia, South Carolina, Alabama and Tennessee) and you live near a Publix, you can take advantage of their offer to fill prescriptions for selected oral antibiotics for FREE! Check out this page to learn more. Included antibiotics include amoxicillin, ampicillin, Cephalexin, Ciprofloxacin (excluding Ciprofloxacin XR), Doxycycline Hyclate (capsules), Erythromycin Stearate and Ethylsuccinate, Penicillin VK, and Sulfamethoxazole/trimethoprim (SMZ-TMP). You can locate a Public pharmacy at this webpage. If you aren't near a military treatment facility, this could be a great benefit - convenient and free.
I'd love to know if any of you have tried this offer, and hear about your experiences!
I love my cell phone. I love that my children's school can reach me if I'm not at home, I love that my husband can call me whenever he's got a minute, and I absolutely love being able to plan on the fly:- "You call me when you get to the amusement park, and we'll figure out where to meet." And I'm happy with my carrier and calling plan. However, I do make a point to check and make sure that our family's plan is the best plan for our cell phone usage. I think I've finally hit on the right plan for us, but it took some experimenting. You should review your plan and usage regularly until you find a plan that meets your needs, and check again whenever your usage changes. Here's what to do:
Get a copy of your most recent bills. Three months if your usage is pretty consistant, more if it is erratic. (My husband uses his phone a lot when he is TDY, but hardly at all when he is at home.)
Go to your provider's website and see what deals they are currently offering. Compare the plans that are being offered with your usage and your current plan. Some carriers offer an "Analyze My Usage" option that might work for you.
Call you provider and ask what plans they are currently offering. Ask them to recommend a better plan based upon your usage. Ask a lot of questions! In particular, make sure that you can change plans without a penalty and that changing plans doesn't extend your contract. Also ask about any special offers for deployed military members. Will they allow you to freeze one phone of a two phone account while your service member is gone? Are there any other ways that they can help minimize the costs of maintaining that phone line during deployment?
Consider an independent review. Validas is a website that allows you to upload a copy of your cell phone bill and it will review it for you. A preliminary review is free, and for more details you will be asked to pay a $5 fee. I tried their service recently. It wasn't difficult to upload a digital copy of my bill. Validas claimed that they could save $26 a month on my cell phone bill. After reviewing this recommendations, I don't think that they were able to accurately assess my odd plan. However, I do know several people who have had great success with Validas. If you've never assessed your plan, it might be worth $5 to see what Validas suggests. I must note that Validas did noticed that I'm paying $1 per month for data services on my husband's phone, which doesn't even support data service. Another independent website that reviews cell phone bills is BillShrink. BillShrink either lets you estimate your usage or asks for your account information so that they can access your cell phone account online. BillShrink estimated that there was only one other cell phone plan that might save me money, but it was less than $6 a year and it was with another carrier, which isn't an option as I've still got a year left on my current contract. BillShrink's services are free!
With a little research, you may be able to find a less expensive alternative to your cell phone plan, without having to change cell phone companies.
Well, I'm knee deep in holiday expenses: gifts, travel and entertaining. It is so easy to spend "just a little more." A nicer bottle of wine for a hostess gift, another present for the in-laws, stopping at Applebee's instead of packing a cooler when you are driving. What's another five (or fifty) dollars here or there?
For many people (myself included), these little things can wreck a budget. If you are not in debt, those extra expenses can push your budget out of whack. And if you are already in debt, it doesn't seem to make much difference. If, for example, you owe $2,000 in credit card debt, another $20 doesn't seem like much of a difference. It's only 1%! However, if you are making the minimum payments, that $20 will be haunting you for years to come - long after the hostess has consumed the wine, the in-laws have finished with their gift, and certainly long after you've digested that Applebee's. Do it a couple of times, and you may have tacked a few hundred dollars onto your debt.
So, how do you stop that kind of thinking? It isn't easy, that's for sure. Here are some strategies that may help you:
Define a pretty big financial goal: "I want to be free of credit card debt before our next PCS."
Make a visual: A big chart on the wall with your debt numbers should keep you honest.
Calculate: what you will be able to do with the money that
you're currently spending on debt repayment. What would you like to do
with an extra $200 a month? Maybe you could save for a new car, or
start an Individual Retirement Account, or order pizzas on Friday
night, or let your child take horseback riding lessons. Imagine what
your financial life would feel like with that extra chunk of money
available each month.
Think back: to how you got into debt in the first place. I don't imagine that many of us woke up one day and discovered that we had $10,000 in credit card debt. Your first card probably had a low limit, and you charged a little, then you paid a little. Over time, the charging was a bit more than the paying, and your balance crept up. I bet if you went back over your charges, most of them were small. Individually, not much money, but collectively, it sure is a lot. If you are in debt, and feeling the weight of the debt each day, then imagine how you would feel if you had twice as much debt. (Shivers!) That's a pretty good reason not to add to your debt.
It's good for your marriage! Statistics show that a huge chunk of maritial problems are based around money. Marriages are hard work under the best of situations, and military marriages have extra excitement: deployments, moves, injuries, and general worry. Keeping your finances under control will be one less stressor in your marriage.
I'm going to try to avoid those impulse purchases this month, and even see where I can make a few cuts. Won't you join me?
The nice people at USAA sent me over an article on teenagers and holiday spending. The holiday season presents an excellent opportunity to talk with your teenager about money. Here's the article:
Many families will use the power of
plastic to make cash registers ring this holiday season. But that might bring
bad tidings after the first of the year, according to a recent survey by USAA
that asked teens how they learn about money. And unfortunately, racking up
holiday debt may be another way parents are teaching bad money management
skills to teens.
According to the survey results,
nearly three out of four of high-school teens say they learn “a lot” or “a
decent amount” about money management from their parents. But it doesn’t come
from lectures – it’s from watching how their parents spend.
“Parents are raising a generation of
big and possibly irresponsible spenders,” explained USAA CERTIFIED FINANCIAL
PLANNERTM practitioner J.J. Montanaro. “Nearly half of the parents
surveyed confessed that their money management habits range from ‘OK’ to ‘horrible’.”
There’s still hope for the upcoming holiday
season, though. Montanaro offers these four suggestions for how parents can
turn holiday shopping moments into lifelong money lessons:
Put
Holiday
Budgets on a Diet
Just as splurging on extra holiday
dessert can add up around your waistline, the same applies to holiday
overspending, which can fatten up your debt. With more than 40 percent of
parents in the survey admitting they don’t have a household budget, many teens
aren’t subject to the financial discipline they need. Turn this statistic
around and sit down with the whole family to develop a spending budget for each
family member for the holidays. This will help teens develop the financial
discipline they’ll need in the future, while still allowing them the
opportunity to do some holiday shopping.
Making the Most of the Christmas Credit Crunch
For many revelers, the holidays may
seem like a bottomless bowl of treats with no long-lasting consequences. The
same goes for teens who don’t realize that abuse of an ATM or credit card can
cause just as much long-term damage to their financial health. Start by
encouraging teens to avoid the “invisible money” of the ATM until they have the
skills to manage it effectively. Have them set out what they want to spend so
they can see a direct connection between their budget and their spending. Also
don’t be afraid to get out the credit card bill and outline how payments,
interest, and expenses add up to the number on the bottom line, and show your
teen how interest can build up when credit cards are used irresponsibly and the
balance isn’t paid in full.
Give the Gift of the Hard-Earned Dollar
Getting teens to understand the
value of all the hard work that parents put in so they can buy Christmas
presents can be difficult. “Many teens may be missing out on the real value of
the dollars they’re spending, because they aren’t making a connection with the
effort that was put in to make that money,” says Montanaro. With almost half of teens not working for
their “fun money,” according to the USAA survey results, a holiday season job
could be just the ticket to learning the value of a dollar. Encourage your teen
to get their own job so they can see their hard work turn into the cold cash
they’ll spend on their friends and families during the holidays.
Stuff Stockings with Savings?
Also, remember that there’s no
better way to teach teens to be accountable for their spending than by
empowering them to manage their money. Set up an online savings account and
debit card for them, and show them how to manage and monitor their spending on
the web. When teens can see how their debit card takes money from their savings
account, they’ll better understand how that piece of plastic isn’t an endless
supply of spending power.
Using the holidays to teach teens good
money management habits may make you feel more like Scrooge than Santa Claus, but
learning to be financially savvy is a priceless gift. Visit usaa.com
for more information about teaching your children ways to develop good money
management skills.
USAA means United Services Automobile Association and its
affiliates.
If you own a home, it is a good chance that a deployment or PCS will cause you to leave that house. Then you'll have to decide - rent or sell? Never an easy question, I've gathered several articles that will help you figure out which choice is best for your situation.
From the Military Officers Association of America comes this article: To Rent or to Sell
As you can see, there are many things to consider. My family owns a house that we rent out, and we've been very fortunate that we have a fantastic property manager and that we purchased when houses were still somewhat affordably. Our current home is tough to rent because the market is so expensive and we don't have a good professional to take care of it for us. Hopefully, these articles will help you to look at all sides of the situation and make a decision that you feel good about.
The computer sales are heating up, and there seem to be lots of good deals out there. How do you know what computer is right for you? Check out Military.com's Computer Buying Guide for solid information on selecting and purchasing the best computer for your needs and your budget.
Well, I finally found my Christmas book. Whoohooo! It is a green binder in which I keep all my holiday information - addresses for cards, what gifts we gave last year and what we plan to give this year, menus from parties, and other holiday season info. It has been missing since we moved in May! During the last few weeks, I've been a little concerned because I wanted to get myself organized and I didn't want to start from scratch. Thankfully, I found a small box that somehow been stashed behind the curtains in the corner of the living room and there was my binder!
This morning, I vowed to catch up on my holiday planning and sat down with binder, new paper and pen in hand. The first page I found was my budget. Have you ever made a total budget for all the money you spend from before Thanksgiving to after New Years? The first year, I thought that I would about fall over - by the time I added up the tree, cards and postage, extra food for the big meals and our holiday open house, babysitting for holiday events and tickets to the Nutcracker (our big family tradition), plus gifts, I calculated that we'd spend more than $1,500 extra between mid-November and early January. And I thought we were pretty frugal! Here's what it looked like:
Gingerbread Party: 8 houses at $6 each, plus extra decorations, $60
Holiday Open House: Food, $100; Beverages, $100
Christmas Dinner: $30 more than a usual dinner
Tree: $35 Decorations $15
Nutcracker Tickets: $150
Cards and Postage: $60
Travel: Gas, $300; Cat Sitter, $70; Meals on the road plus incidentals, $150
Babysitting for holiday events: $120
Teacher Gifts: $100 (and that is counting every teacher that each
of my four kids have - even at a $3 hand soap from Bath and Body Works,
that really adds up fast.)
Kid's Gifts: $300
Gifts between the parents: $100
Gifts for other family members: $100-$200
Now, I'm sure that some of you will look at this list and think that
we are amazingly extravagant. Others will think that some of those
numbers look awfully low. However, the numbers aren't really the
important part. The most important part for me is seeing how all those
"little" expenses come together to make a huge whammy by the end of the
month.
So, how do I cope with an extra $2000 of spending in one month?
There are a couple of different ways. In really organized years, I put
a little bit aside each month in a separate account that is designated
for holiday expenses. This year has been a little chaotic and I
haven't been as diligent as I should have been. I also make purchases
throughout the year, particularly gifts. I try to pare each category
down just a little bit each year - maybe we have ham instead of prime
rib for Christmas dinner, or we take the kids to that holiday party
that is family friendly instead of getting a sitter.
While it is overwhelming to look at all the costs together, it helps me make sure that I have enough money to pay the bills on January 1st, and it also helps me to make good decisions throughout the holiday season.
I'm curious: how do you plan for holiday expenses?
Welcome to Military.com's Finance channel blog, hosted by military spouse and finance writer Kate Kashman. The military money experience is unique and challenging. The Paycheck Chronicles is here to help with daily tips on the special financial situations of military servicemembers and their families
Got a question or advice based on a real world money experience? Click on the "Tell Kate" link to the right and let us know about it.
The content on this blog are my personal opinions and thoughts. I am a blogger and writer with a strong personal finance background. However, I am not a certified financial planner or financial professional of any sort, so content on this personal finance blog should be treated as entertainment only. Listen to what works with you, verify it with the real professionals, and make your own decisions.
I like my slow cooker - I like it a lot. Putting food in while I'm still firing on all cylinders (which seems to end around lunch) make dinner time a lot more pleasant at Casa Kate. But I lack inspiration. Even my beloved Allrecipes.com doesn't always inspire me.
Recent Comments