Consumer Scams? Don't Be Fooled

My good friend Penelope Pince, who writes at Pecuniarities, has put together a comprehensive and exhausting (yes, exhausting) list of resources to help protect ourselves against all kinds of fraud.  In Consumer Safety Resources from the Federal Government on SPAM, Scams, Fraud, Phishing, and Identity Theft, Penelope hits nearly every piece of information I can imagine.  It is a lot to digest at one sitting, so you might want to take Penelope's advice to bookmark it and come back so that you can digest it in small bits.  Penelope has done an excellent job of organizing the information so that you can come back and find what you need if you are faced with potential fraud.

Cutting Costs on Car Insurance

As I'm sure I've said before, we have all of our property insurance with USAA.  They are a solid company with excellent customer service and competitive rates.  I've actually heard rumor that we could find lower rates elsewhere, though I've never checked.

If you are looking to comparison shop on your insurance, Green Panda Treehouse has put together simple directions for how to do it in her article How We Cut Our Car Insurance Bill In Half.  She outlines the steps in a sensible manner to make sure that you are comparing the same kinds of coverage.

MSN Money also has a good article on Shopping for Auto Insurance, where they make the excellent point that "After a crash is too late to find out if your insurance policy is good enough."  This is one of the reasons that I've stuck with USAA without looking at other options - I have had two fairly large car accidents and USAA has been super spectacular after each of them.

One more article I'll recommend is from Edmunds.com, the car sales people.  Edmunds' thinks that car insurance shopping shouldn't be horribly boring because there is so much money to be saved.  They have an excellent point there, and I'll add another:  You only have to do it once in a while.  Unlike clipping coupons or keeping an eye out for sales, selecting the right car insurance policy doesn't have to be done regularly to produce big savings.

I'm not likely to leave USAA anytime soon, but if you are considering using another insurance company, be sure to shop smart and make good choices for a balance between savings and service.

photo by:  kevindooley

Gas & Electric Bill Update X2

You might remember that I have had two unpleasant utility bills already this year.  In order to get this big cost under control, I decided to made four changes:  limit shower lengths, seal windows & use curtains, stop using the space heater under my desk, and deal with the failing fridge in my basement.

Here's how it has gone:

1. Shower length:  I haven't yet designated a timer for showering, but I have been more diligent about reminding my kids that it is time to get out of the shower.  And reminding them again.  And again, until they get out.  There is still room for improvement but I think we've gotten better.

2. Sealing windows and using curtains:  I checked to make sure that all our storm windows were properly closed.  I didn't caulk or weather strip as planned.  I did put a throw rug up against the bottom of the laundry room door as it tends to leak a bit.  I also closed nearly all the curtains and blinds in the house, and I've been trying to open them when it is sunny outside.

3. Stop using the space heaters:  I stopped using the one under my desk everyday, and I don't think I've used it all month.  We had a small one in the family room for cold nights.  I think we've only used it one or two evenings.
   

4. Doing something about my downstairs fridge:  I tried to level the refrigerator so that the door would seal properly but I couldn't get it to work.  Instead, I removed all the food from the refrigerator section and turned it to the hottest setting.  I've been working on using up the stock-piled food in the freezer section.  Once the freezer is also empty, I'll unplug the whole thing.

One other thing that I have done is to set my programmable thermostat to a chilly 62 degrees for all times except for the morning wake-up time.  If we're home and I'm cold, I'll manually over-ride the thermostat to make it warmer and it will automatically reset at the end of that phase.

Even though I've only made small improvements, my gas and electric bill has dropped near $80 this month.  They haven't yet posted the breakdown of gas and electric usage, which also includes historical data and the average temperatures from each month.  From the weather information I have gathered, it seems as if it was slightly warmer this month than last, though it is possible that the amazing wind has offset the benefits of the higher temperatures.

I'll post an update once I'm able to see the actual figures, but I'm encouraged that my small steps have helped.  Yeah!

Updated update:  I've gotten the breakdown part of the bill today.  Yes, it was an average of 6 degrees warmer this month.  I'm sure that is a part of the 20% decrease in gas usage.  (We use gas for heat, hot water and cooking.)  The electric portion went down about 25%, which can probably be attributed to turning off the space heater and using electricity on the inefficient refrigerator.

So, what should be my action plan for this NEXT month?  Hopefully the temperature is going to go up, but I guess I can't include that in my plan.  I guess I should focus on getting the refrigerator completely emptied so that it can be unplugged, replacing incandescent bulbs with compact florescents where appropriate, and working on even heavier drapes for windows that currently have lighter curtains or blinds.

Let's hope next month is even better!

Quotable: Katharine Whitehorn

"The easiest way for your children to learn about money is for you not to have any."

Going Round the Carnival Wheel

I'm very excited that this week finds The Paycheck Chronicles in TWO blog carnivals.  Hosted by Student Scrooge, the Festival of Frugality recommends Debt Protection Insurance.....Don't Do It.  The Carnival of Personal Finance at Broke Grad Student has featured Lessons from a Non-Paying Tenant.

Elsewhere in these two carnivals, I've found some other fantastic reads:

1. Manshu Verma from One Mint writes about Altering Habits to Save Money in a guest post at Cash Money Life.  While all four of his points are good, I particularly agree with the first one:  Avoid Shopping Sites.  It is so easy to get sucked in a good deal on something that you might need, or free shipping, or whatever other amazing deal is being offered.  If you stay away from any online shopping sites, you can keep yourself from being tempted and keep your budget in check.

2. Modern Gal wonders about Redefining Frugal:  Identifying Big Priorities.  I struggle with this - how many school supplies does a family need, even when they're practically free?  Are cheap canned goods a bargain if you have to give them away when you move?  Is the jumbo bag of chips a good value if you will eat the whole bag no matter what the size?

3. As my husband and I discuss our next PCS, I was glad to find Moolanomy's Where to Sell Used Books and Textbooks.  While we're no longer over our weight allotment, our family still owns too much stuff, and we particularly love books.  While I don't really want to get rid of any books (ever), I'm sure that at least 10% of them could go without causing too much pain.  I've always used half.com but it is nice to know that there are other options.

There are so many great reads in this week's blog carnivals that I've spent the better part of two days reading them.  I'm sure you'll find something of interest there, too.

photo by:  NatalieMaynor

Real Simple Ways to Save Thousands

Will Chen, one of my favorite authors at Wise Bread, has culled a longer Real Simple article (71 Way to Spend Smarter) to pick out the best suggestions of the bunch.  The result is 15 Real Simple Ways to Save Thousands of Dollars.  It is a nice change from the usual "bring your lunch from home" and "stop buying lattes" advice, and most of it is pretty darn easy. 

Photo by:  LDCross

It's Deductible!

I'm sure than many of you have already finished your tax returns - Congratulations!  However, some people like me are procrastinating because our taxes are complicated and overwhelming.  If you haven't done your return yet, you might want to check out this excellent site from TurboTax called It's Deductible.  It's Deductible does require you to create an online account but it is easy and doesn't ask for a lot of personal information.

Once you're logged in, It's Deductible gives you the choice of working on your 2008 return, planning ahead for 2009, or going back to 2007 to do an amended return.  However, what I really love about this program is it's easy record-keeping. 

Photo by:  The Consumerist

For money donations, it allows you to specify the charity, the amounts and the form of payment.  It has a quick way to track repeat donations, for example, church offerings. 

For donations of items, the form calculates the allowable amount for each item while remaining within the IRS guidelines.  This is great because I never knew how to calculate those items and always ended up under-estimating.  The item form is quick enough that it isn't a burden to itemize the items being donated.  I'd always hated doing that part because it was so time consuming.

There are also portions to the donation of stocks or deducting mileage for volunteer work or making charitable donations.  The ease of record-keeping means that I will actually bother to take this deduction this year.

In addition to its forms and calculations, It's Deductible also has a sidebar that remains full of frequently asked questions that apply to the section that you are filling out.  The answers are not guaranteed, the respondents are often professionals and they are rated.

I wish I had found this software in the past.  I can see that it is going to make my record-keeping easier and help me maximize my deductions in the future.  I like it so much that I've already told my closest friends about it, and now I get to share it with you.  Yeah!

Free Quiznos

I love me some Quiznos, and I love free.  So when I saw an email advertising Free Quiznos, I jumped right over.  It appears that Quiznos is offering a free sandwich coupon in return for joining their email list.  I don't mind a few emails to get free Quiznos.  (Though I know that I should set up an advertising account, I just haven't done it yet.)  This offer is somewhat limited in that they're only giving away a million free subs.  According to the counter, they're at about 150,000 right now.  So click on over and see if this interests you!

Public Radio Discusses Military Finances

American Public Media is the second largest producer and distributor of public radio programming.  One of their largest products is a segment called Marketplace Money.  From the website, "Each week on Marketplace Money, host Tess Vigeland looks at major national and international stories that impact the average listener's wallet. It's "the money show for the rest of us."  Marketplace Money has put together a special series called Debt of Service:  Personal Finance In the Military.  Segments include Getting Personal Finances Ship Shape, Married to the Military, and I Will Take Care of My Son.  I was particular interested in Debt is A Target on U.S. Military Radar, which discussed the impact of personal financial troubles on the military's ability to do their job.

Also a Marketplace Money contributor, personal finance guru Chris Farrell does a "Getting Personal" column answers individual questions submitted by listeners.  He's compiled a list of military specific questions here.

It is always helpful when the mainstream media tackles issues of military finances.  I'm thankful for their attention and hope that it will help all of us.

Reading the Fine Print

I recently received a flyer from Navy Federal Credit Union advertising a good balance transfer deal from a organization who I trust and with whom I enjoy doing business.

The details of Navy Federal's deal are:

1. No balance transfer fee.

2. Low, fixed 6.9% APR

Sounds fantastic, doesn't it?  It is a pretty good deal.  Let's look further and check out the fine print.

"Offer expires March 31, 2009.  The 6.9% fixed APR will apply to the balance transferred until January 1, 2010.  After that period, the standard APR will apply to any unpaid portion of the balance transferred.  Rates for purchases, convenience checks and cash advances range from 7.9% APR to 18% APR.  Balance transfers are processed as cash advances (finance charges accrue from the date the balance transfer is posted to the account, standard rate applies.) ...Offer valid for balances transferred from other institutions.  Maximum total transfer amount is limited to your approved credit line and cannot exceed $30,000.  Balance transfers using convenience checks will be subject to the cash advance rate.  Rates are based on an evaluation of credit history, so your rate may differ.  Subject to credit approval.  No reward points with this offer.  This offer does not include Navy Federal business credit cards.  Offer can end at any time without prior notice."

So, what does all the small print mean?  Let's break it down:

"The 6.9% fixed APR will apply to the balance transferred until January 1, 2010.  After that period, the standard APR will apply to any unpaid portion of the balance transferred. "

What this means is that if you transfer a balance and don't pay it all off by January 1st of next year (which is a holiday, so basically we're looking at December 31st), then your interest rate will change back to the regular interest rate.  If you transferred a balance this week, you'd have about 10 months of the promotional rate before you'd be back to your regular NFCU rate.

"Rates for purchases, convenience checks and cash advances range from 7.9% APR to 18% APR."

This means that there are a variety of regular interest rates offered by NFCU.  You'll need to check your account to find out your regular rate.  If you log into your NFCU account online, and click on your credit card account, your current APR is listed at the bottom of the top blue section (though the interest rate itself is written in black.)  It will say "Effective Annual Percentage Rate" and then it will have a number, like 9.9%.

"Balance transfers are processed as cash advances (finance charges accrue from the date the balance transfer is posted to the account, standard rate applies.)"

So, when you do a balance transfer, NFCU will begin charging interest on the balance transfer as soon as they process it.  This is different from how the balance on purchases is calculated.  For example, if you have no balance on your credit card, make a purchase and pay it off before the due date for that bill, you won't pay any interest.  With a balance transfer, you could transfer a balance, pay it off in a week, and you would still pay interest.

"Offer valid for balances transferred from other institutions."

You can't move balances around within your NFCU, or even between other people's accounts (like your spouse.)  They do this to make sure that people don't use this offer to lower their interest rate on debt that they already have with NFCU.

"Maximum total transfer amount is limited to your approved credit line and cannot exceed $30,000."

The terms of this offer don't let you exceed your current credit limit with NFCU, and you can't transfer more than $30,000.

"Balance transfers using convenience checks will be subject to the cash advance rate."

You can't use convenience checks to do this balance transfer.  You must contact NFCU to set up the balance transfer directly.  If you use a convenience check to do a balance transfer, then you won't get the promotional rate.

"Rates are based on an evaluation of credit history, so your rate may differ.  Subject to credit approval."

NFCU does not guarantee that you will be able to get this promotional rate.  They may check your credit report.

"No reward points with this offer."

Well, darn.  But I guess that is only fair.  They're not going to give you rewards points for transferring a balance.

"This offer does not include Navy Federal business credit cards."

Self-explanatory.

"Offer can end at any time without prior notice."

NFCU can choose to end this offer before March 31st if they want to.

So, what do you think?  Most of these pieces of fine print are standard on credit card offers.  I don't see anything here that would make me think that NFCU is trying to do anything tricky or devious. 

Just to be sure, I gave NFCU a call.  I asked the representative if there were any terms that weren't listed on the flyer, and it turns out that there is a big one:  If you already have a purchase balance on your NFCU credit card, and you transfer a balance to that same card, any payments made will apply to the purchase balance first. Once all purchases have been paid, then your payments will start being applied to your balance transfer.  So, if you have $1,000 on the card today and transfer $500 from another card, you will have a $1,500 total balance.  You could make $1,000 in payments between now and January 1st, bringing your balance down to $500, but all those payments would be made against your higher interest charges, meaning that you'd still have the $500 transferred balance when the rate resets on January 1st.  You can work out the math many different ways, but basically this means that you need to make sure that your regular (non-promotional) rate with NFCU is lower than the rate on the card from which you are transferring a balance.

Still, it looks like a great offer for many people.  I'm not taking advantage of it because I only have a balance with NFCU and USAA.  I can't transfer my NFCU balance and I've got a fanastic interest rate with USAA.  What are some other reasons that I might not take advantage of this offer?  If my regular interest rate with NFCU was high and I didn't plan to pay off my balance by the end of December, if I didn't have enough credit available with NFCU, or if I plan to pay off my other account this month.

While this is a dissection of one particular offer from one particular credit union, you can use the same skills to understand any credit card offer.  Take each sentence individually and figure out what it means.  If you're not sure, call and ask them.  What seems like a fantastic offer might truly be great, or it might be full of little catches that will cost you in the long run.

Tax Breaks for Students

Do you have a student in your family?  You'll want to be sure and click on over to Independent Beginnings to read Olivia's great post about Tax Breaks Every Student Needs to Know About.  You won't want to miss any of these excellent credits and deductions.

Photo by:  foundphotoslj

Security for Your Laptop

At the Finance Challenge Event that I attended on Wednesday, I picked up about 30 flyers and brochures with good information on a variety of topics.  I'll be sharing them throughout this week (and probably the next as well.)

Today's info comes from a Federal Trade Commission bookmark entitled Laptop Security Tips, How to Keep It from Getting Lost or Stolen.  Here's what they suggest:

1. Treat your laptop like cash.
2. Get it out of the car...don't ever leave your laptop behind.
3. Keep it locked...use a security cable.
4. Keep it off the floor...or at least between your feet.
5. Keep passwords somewhere else...not near the laptop or case.
6. Don't leave it "for just a sec"... no matter where you are.
7. Pay attention in airports...especially at security.
8. Use bells & whistles...if you've got an alarm, turn it on.

I don't currently have a laptop, but I'm planning to buy one.  I'm glad to know how to keep it safe.

Making Sense of the Current Financial Crisis

Do you wonder what this financial crisis is all about?  I do, and I have worked in the financial industry and I've read a lot about our current situation.  Jonathan Jarvis has put together a simple video that explains part of what is happening.  In two parts, totaling about 10 minutes, Jarvis shows how our economy has been affected by the way that mortgages and investments have been handled.

Does this make sense to you? Does it help to explain what is happening? I'd like to know!

Quotable: H.L. Mencken

"The chief value of money lies in the fact that one lives in a world in which it is overestimated."

Next Week is Military Saves Week

What is Military Saves Week?  A part of America Saves week, it is a campaign to encourage financial awareness amongst service members.  There is a "Saver Pledge" and a competition to see which branch of the service can get the most members to pledge to save.

Individual installations and organizations around the country are having special events to celebrate Military Saves Week.  For example, the Southern California Fleet & Family service centers are having a variety of events, including Financial Challenge Events at several location.  Little Rock Air Force Base is having an event each day of the week.  (And they sound like fun!)  MCCS Barstow is offering free stuff to people who take the pledge.  SUBASE Groton, Connecticut has a great schedule of events that include a lot of prizes and participation for the children.  Fort Jackson's ACS is running two days of events.

Check with your local installation to see what type of events are planned for Military Saves Week.

Reviewing the Financial Roadshow

Yesterday, I attended part of the Financial Roadshow at Andrews Air Force Base in Maryland.  Due to family commitments and lousy weather, I wasn't able to participate in the entire event, but I'm going to let you know what I experienced to help you decide whether attending an upcoming event would be helpful for you.

I've heard a variety of names used to describe this event.  Yesterday's folder was labelled "Thanks for taking the Financial Readiness Challenge!"  and "Personal Finance and Transition."  I've also heard it called Financial Roadshow and Finance Challenge Event.  All these terms are talking about the same thing (as far as I can tell.)

When I registered for yesterday's event at Military HomeFront, the agenda said that it would run from 7:30 am to 4:30 pm.  I knew that I wouldn't be able to make it there at 7:30 since my children don't leave for school until 8:15 and I live nearly an hour away.  I was able to find a babysitter to stay with my kids after school so that I could stay until the end of the event.  The schedule listed several speakers in the morning and early afternoon, then breakout sessions on individual topics in the later afternoon.  There was also ample time to visit the exhibits and the opportunity to have personal financial counseling.

After much internal debate about the weather, and a slow drive through some snowfall, I arrived at the event around 9:30.

They were running a bit behind schedule and were beginning a break, so I the chance to sign in.  The sign-in sheet was several pages long and it looks like they had a lot of people pre-register for the event.  They were also allowing walk-in, which is good to know if your schedule is unpredictable.  Once I entered the theater, I was surprised to see that there were only about 40 people attending, and it seemed (from the shiny name badges) that many of them were part of the presentation team.

I had missed the first speaker, John Sileo, speaking about identity theft.  From his biography, it sounds like it was a really good session and I'm sorry that I missed it.  The second speaker was Rod Griffin, Director of Public Education for Experian, whose talk was titled "Truths & Myths of Credit Reports."  Mr. Griffin spoke for over an hour about all aspects of the credit reporting process and credit scores.  He was an interesting speaker who engaged the audience and encouraged questions throughout.  I took four pages of notes, which is pretty amazing since I already know a good bit about credit reporting due to one of my previous jobs.  I'll be doing a post on his speech later this week.

The breaks are long so that participants will have time to visit the various exhibits.  Unfortunately, the exhibits were set up in another building.  It was walking distance but it was raining and I didn't know the distance before I started.  Because the exhibits weren't readily available, the breaks were too long for a quick drink and not long enough to see the exhibits.

The third speaker was Susan Abentrod, who seems to work with the Military & Family Life Consultants program.  Her topic was "Take Complete Control of Your Finances - Avoid Drowing in Debt."  I found her presentation to be the most basic type of personal finance advice ("don't spend more than you make") and I had difficulty finding a sense of organization in her presentation.  I did pick up a few good tips but she also presented a couple of pieces of misinformation (in my opinion.)

After the third speaker, there was a break for lunch and to visit the exhibitor hall.  The lunch time was being shortened because the morning events had run over their allotted time.  I wasn't sure where to eat lunch so I drove to the exhibitor hall.  As I said, it could have been walked had I known that it was close, but it was several blocks and raining so it worked out okay.  Fortunately, there was a sports club type place attached to the Community Center with the exhibits, so I could get lunch there too.

The exhibitor hall had about 15 tables set up with various exhibits about personal finance, as well as a well stocked table from MilitaryOneSource and a large area devoted to TurboTAP, the military.com administered Transition Assistance Program Website.

Exhibitors included the Andrews Airman and Family Readiness Center, Andrews Federal Credit Union, the Military & Family Life Consultant Program, Personal Finance & Transition, Military One Source, the Maryland Association of Certified Public Accountants, the Federal Deposit Insurance Corporation, SaveAndInvest.org, the Better Business Bureau, The Federal Trade Commission, Freddie Mac, the DC Department of Insurance, Securities and Banking, the Maryland Insurance Administration, the Maryland Office of the Attorney General, and the GSA's Federal Citizen's Information Center.  At first, I thought that many of these exhibits seemed a little odd - what was I going to learn from the DC Department of Insurance, Securities and Banking?  I was very surprised how much really useful and relevant information was provided at each of these tables.  Much of the material was very military specific, which was great, and even the individual state representives had lots of good general wisdom.  I picked up an entire backpack full of material which I will be sharing with you during the next week (or two.)  Everyone was so helpful and pleasant but they were a little bored (and disappointed) because there wasn't much traffic through the exhibit hall.

The center of the exhibit hall was set up with Personal Financial Planners and other counselors who were demonstrating the online TurboTAP program.  TurboTAP.org is the Department of Defense's official website providing information for servicemembers on transitioning from military service.  TurboTAP.org is intended to supplement the services offered by the Transition Assistance Offices and other groups.  The DoD Transition Assistance Program was developed to assist in the transitioning of military personnel and family members leaving the service.  Returning to civilian life is an exciting time, but is also a complex undertaking. There are many steps to take, with questions to be answered.  The DoD Transition Assistance Program is here to help. TurboTAP is administered by Military.com and I have heard nothing but wonderful reviews about it.

I was having such a good time talking to all the exhibit representatives that I decided to forgo the Keynote Speaker, Larry Winget, "The Pitbull of Personal Development".  I usually enjoy motivational speakers, but something about his biography put me off.  Faced with the choice of remaining in the exhibit hall (and eating lunch) or driving back to the theater to listen to him, I chose to remain in the exhibit hall.  Under different circumstances, I might have made a different choice, but the combination of grey weather, ambivilence about the speaker, and hunger prevailed.

The keynote speaker was scheduled for an hour and a half, with a half hour break after him before the concurrent breakout workshops were scheduled.  There were five interesting topics:

• Panel on Foreclosure Prevention
• Home, Sweet HOme...Strategies for Home Buying
• Dream Big - Plan Now!  Make Your Ideal Retirement a Reality
• Before You Take Off - Financial Planning for Deployment
• The Wheels You Want - Successful Car-Buying Strategies

They all sounded interesting but I had chosen to go to the Deployment workshop because it was the closest to fitting my current situation.  The workshops were being held on different location around the base but they weren't listed on the agenda.  I was able to find an employee who told me that the Deployment workshop was being held next to the exhibit hall - perfect!

What I found was that after 45 minutes of exhibit strolling, a quick sandwich, and another 45 minutes of exhibit strolling, I had completely exhausted my interest in the exhibits.  It was still an hour until the breakout sessions were scheduled to begin and I was bored.  I decided that I would head over to the Airman & Family Readiness Center to drop off some Military.com materials and chat with a few people.  That only took about 15 minutes and I was debating what to do when the radio in my car had a traffic update.  It reported several accidents on my way home and though I wanted to attend the deployment workshop, I decided that I should probably be responsible and head for home.  (I'm glad I did because I couldn't find my way off of Andrews Air Force Base and wasted a lot of time driving around in circles.  The good news is that the accidents had been cleared by the time I got to them.)

Overall, I'm glad that I attended this event and I've just signed up for the event at Fort Meade on March 10th.  I picked up a ton of resources and learned a lot.  I would encourage you to check the list and see if there are events being held in your area.  Registration is now being accepted for events through March 10th, and additional events are in the planning stages.

Written a Budget Yet?

I came across this post at Free From Broke today, listing 9 Excuses Why You Haven't Started a Budget Yet.  I agree that many people have used at least some of these excuses at different points in their life.  One big excuse that he missed is that many people think that they don't know how to write a budget.  I have come across a lot of people that think that writing a budget is a confusing, mysterious process that requires a certain format or method.

The amazing thing, a budget is as simple as a list of your income (which is often just one number, so that is easy) and a list of your expenses and spending.  Your expenses and spending need to be less than your income.  It's that simple.  The key is planning ahead.  A budget is planning your spending before you do it, which is why I prefer the term "spending plan."

My point is, don't be scared by the idea of a budget.  It is just a list of where you plan to spend your money.  Some things you don't get a choice about, like rent or auto insurance.  Some things you need but you can control the amount, such as food or entertainment.  Other items are absolutely wants:  cable television, cell phones and beer.  Work your numbers around so that that you've planned to spend less than you make, and you've made a great start.

More GI Bill Info at Military.com

One of the most searched subjects at Military.com is the GI bill.  With the transition to the new GI Bill in August 2009, there are many questions.  While the final details of the bill have not yet been worked out, the  Military.com team has put together an excellent group of pages that answer most of the questions that have been resolved so far.  Check out these great resources:

Learn to Use Your GI Bill

New GI Bill Overview

Guidance for Choosing Between GI Bill Programs

New Bill Could Improve Post 9/11 GI Bill

The GI bill is arguably the best benefit of military service.  This year's changes are making it significantly bigger and better than before.  Use these articles to help understand the GI Bill and what it means to you.

Round-up!

It seems like this week is "new resource" week around the web.

First, Love My Tanker from SpouseBUZZ sent me a great article that talks about using online discount codes to help save money.  From the Wall Street Journal people, this Yahoo Finance article is called Coupon Web Sites:  Never Pay Full Price Again?

Over at Frugal Homemaker Plus, guest author River explains the mysteries of home-made cleaning supplies.  And guess what?  They're not that mysterious after all.  I love that they are environmentally friendly and frugal at the same time.

Have your finances reached the point where you need outside, professional help?  Check out this review of various debt consolidation companies from Star Review.  There are a lot of free resources inside the military community, and you should definitely try them first, but if you decide to use a debt consolidation company this list may help you find a good one.

If you are home for the holiday today, take some time to learn a little more from these excellent articles available on the internet.

Debt Protection Insurance ........... Don't Do It

I just opened the bill for my gas credit card (which I only use because I get 5% back on gas purchases) and I was disappointed to see a little advertisement fall out that suggested that I purchase debt protection insurance.  This type of insurance, which can also be called payment protection, credit shield, credit card protection, credit safeguard, or any number of other names, purports to pay your bills if you are dead, disabled, or unemployed.  The advertisement I received stated many myths about debt protection insurance as if they were true.  I'm going to address each myth stated and tell the truth about the subject. 

Myth:  "Debt Protection cancels your credit card payments in the event of death, disability, or involuntary unemployment."

Fact:  Note the use of the word "payments."  The only way in which debt protection pays off your credit card balance is if you die.  In the event of disability or involuntary unemployment, "there are eligibility requirements, conditions, and exclusions that could prevent you from receiving benefits under this program."  (this comes from the sales flyer.)  Even if you meet their requirements, conditions, and exclusions, it only prevents the needs to make the minimum payments due, up to $1000 per month (ack!), for up to six months.  Depending on your card's terms, minimum monthly payments will probably result in you owning more at the end that you did at the beginning.

Myth:  "Low-cost peace of mind.  Single Protection, which protects the primary borrower, is only $2.25 per $1,000 of your outstanding credit card balance."  (Note:  apparently this is a very inexpensive plan - I've seen rates as high as $1.50 per month for each $100 of coverage.)

Truth:  This insurance is very expensive. 

If you are looking at the death benefit coverage, SGLI (Servicemember's Group Life Insurance) costs 6.5 cents per month per $1,000 of coverage.

If you are interested in the disability insurance, you would be better off looking for disability insurance.  the way the military is structured, there is some form of disability coverage in the way that your benefits are structured.  If you are a civilian, you would find much better coverage, especially if you are eligible for an employer sponsored plan.   Keep in mind, this plan pays only the minimum monthly payment for up to six months.

The unemployment insurance is a little less clear cut.  If you carry a lot of credit card debt (let's say $50,000 to make the math easy), this insurance would cost you $112.50 per month.  The minimum payment due each month, assuming a common 2%, would be the maximum $1,000 per month payment on this policy.  If you were to become unemployed this month, and meet their requirements, exclusions and conditions, this could be a valuable benefit to you.  They would pay the $1,000 minimum payment every month for six months.  Of course, making that required minimum payment of $1,000 the first month would bring your balance down to $49,000.  Assuming an industry average 18% annual interest rate, you would be charged $735 in interest that month.  At the end of the month, you would be back to $49,735 in balance due, even without any new charges to your account.

If you have one of the cards that has recently changed the minimum monthly percentage to 4%, you're in big trouble.  With the $1000 minimum payment cap, someone with high debt won't have enough coverage to make their minimum monthly payment with this plan, resulting in late fees and other expenses.

Also, most plans (I hate to say all, even though I think it is true) require that the account be in good standing at the time that the claim is made.  This means not being over your credit limit, not having a past due balance, and your payments being completely up-to-date.  I have heard that the rate of refusing to pay on this insurance is amazingly high, and this is one of the most common reasons.  In addition, they rarely cover  second income or anything outside of the common "I have one job that pays me a paycheck" situation.  Also, if you lose your primary job but manage to secure a part-time or lower-paying job, they won't pay either.

If you have a smaller balance, and you anticipate involuntary layoff in the immediate future, and you thoroughly explore all the requirements, exclusions, and conditions, and your account is in good standing, and you have no emergency fund, this might be an option to consider.  Otherwise, take that $2.25 (per thousand dollars of balance) per month and put it towards paying off your credit card.   It is a much better use of your money.

Myth:  Protect yourself and your family.

Truth:  This insurance only covers the balance on one particular credit card.

Myth:  Ease your worries at a difficult time.

Truth:  Under certain, very specific circumstances, this statement might be true.  If you become unemployed or disabled, and if you meet their payment criteria, this will make the minimum payments for up to six months.  That might be helpful to tide you over until you find a new job or become full well again.

Myth:  Applying is fast and easy.

Truth:  It is easy to apply, and people who are eligible are usually approved quickly since this is such a good money maker for the insurance companies.  However, several groups are automatically excluded from coverage.  Depending on the plan, this will include people beyond a certain age (65 on my flyer), secondary borrowers, self-employed borrowers, those who have received unemployment compensation within the last two years, those who are presently unemployed, those who are on a leave of absence or receiving sick pay, and people who work less than full-time (definitions vary.)

As you can probably see, I don't like this type of insurance.  I am willing to concede that it might be a decent choice for certain people in very specific situations, but for 99% of the population, debt protection insurance is a bad choice.  As always, ask a lot of questions, do your homework, and make smart decisions!

Quotable: J. Paul Getty

"Money is like manure.  You have to spread it around or it smells."

Lessons from a Non-Paying Tenant

Most people agree that a non-paying tenant is a bad thing.  It is, but I've learned a lot from my current experience with a non-paying tenant and I think you will find these lessons valuable as well.

My family owns a rental property in the Hampton Roads area.  We chose to rent it instead of selling because it is in a big Navy area, it is in a great neighborhood, and the rent is high enough that we can pay the mortgage and all repairs with the money we receive in rent.  It helps that we bought it as newlyweds, so it is small, easy to rent, and the mortgage is small as well.

We've been renting out this house for 13 years, minus the three years that we were back in Norfolk and lived in our house.  We have been extremely fortunate that it has never been empty for more than two weeks, and it hasn't required a lot of repairs because it was new when we bought it.  The current tenant is lovely...she takes good care of our house and has renewed her lease several times because she likes it there.

So what's the problem?  Our tenant is a real estate agent, and business has been pretty bad for the last year or so.  While she had always paid her rent on time, payments have been getting later and later.  Sometimes she'll fall nearly a month behind, just to catch back up for a month or two.  However, she hasn't paid her rent on time since December, and though she has been bringing in small amounts regularly, she is currently more than two months behind on her rent, plus she has a large amount of late fees to pay as well.

photo by:  spyffe

My property manager and I have been in constant communication during this time, and I've given him permission to let it get to this point.  As long as she is talking to us and still paying something, I keep hoping that she'll miraculously have several good closings one month and suddenly all will be well.  Last week, however, my property manager and I decided that we didn't see this bad cycle coming to an end and that we were going to have to take action.

I did not want to start eviction proceedings because they cost everyone money and are very unpleasant.  In addition, I do not see this tenant as a deadbeat who is never going to pay what she owes.  Her security deposit would be able to make up a big chunk of her costs.  I feel confident that whatever happens, I will eventually be paid.  She is liable for rent until the end of the lease, or until she is evicted.  Eviction would make her eventual bill even higher, since she is liable for those costs, and leave me with an empty house, and leave her without a place to live.

Instead, I suggested that we talk to our tenant about putting the house on the market in hopes of finding a new tenant to take over the rest of her lease.  This is  a better option as it keeps the house occupied while it is being shown (meaning a nicer looking house) and allows her to continue living there until a new tenant moves in, which only seems fair since she is still liable for that rent.  Our tenant agreed to this plan and my property manager went out this week to inspect the property, put a sign in the yard and list the property in the Multiple Listing Service.  This isn't an ideal solution, but it seems the best plan possible under the circumstances.  I was glad that we were working towards some type of long term resolution.

This morning, my property manager called me and said that he had just talked to the tenant.  It seems that her teenage children didn't know about their mom's situation and were very upset when they saw the sign in the yard and realized what was happening.  They had a family pow-wow and were committed, as a family, to finding a way to stay in the house.  The tenant was wondering how much money she would need to produce before we took the house off of the market.

After some discussion, my property manager and I decided that we would take the house off the market if she could pay one and a half month's rent.  I don't know how this is going to work, but I feel good about our decision.

I have learned so many lessons from this experience.  Some lessons are about myself, and some I have learned from watching my tenant struggle through this real estate downturn and her own financial challenges.

First, I am thankful that my family has structured our budget so that we can still pay the mortgage without receiving our rent.  It has meant dipping into our emergency fund, but we can do it.  If our house were vacant for a long period of time, we would have to make some changes, but we could still get by.  One of the reasons is that our mortgage payment is only a small portion of our family's budget (less than 10%).  Like I said, it is a little house.  We would have had a lot of trouble if the mortgage payment were a quarter, a third, or even half of our monthly budget.  When we made the decision to rent and not sell this house, that was a big factor.

I guess this brings me to the second lesson, having an emergency fund.  Emergency funds are important for everyone, but doubly important for landlords.  Even with good tenant screening, you can't tell when unexpected things are going to happen in your tenant's life.  In a perfect world, I would have six months of mortgage payments in a separate account for just this reason.  In my imperfect world, I have tapped into our general emergency fund.  I don't really care that where the money comes from as long as I can still pay my bills.

The third lesson is the importance of requiring an appropriately sized security deposit.  I have often been tempted to lower my security deposit requirements because I know how hard it can be to come up with a security deposit and the first month's rent at the same time.  However, if our situation ends badly, that security deposit will make a significant difference in how much money I will lose.  I now have a much better understanding of why security deposits are required.

Fourth, one of the reasons my tenant is struggling is because of the nature of her work.  She works for commissions, and when houses aren't selling, she isn't making any money.  I've never been in a position where our family's entire budget is based upon inconsistant pay.  (That is a huge benefit of the military!)  I don't know all her financial details, if she had an emergency fund or how big it might have been, but I can see that having savings is very important if your income isn't guaranteed.  I wouldn't even know how much to save, but I'm thinking something like a year's worth of expenses.  That is a lot of money!  I don't know how I would save that, but I think it would be necessary.

Fifth, try not to put all your eggs in one basket.  By that I mean, figure out a way not to be completely dependent on one source of income without a plan B if that income disappears or decreases.  Admittedly, our family lived solely on my husband's military income for several years while our children were young and I was not working.  It wasn't perfect, but it was more secure than most, and I could always go get a job if needed.  As we get older, I see the value in having a variety of income streams and not raising our standard of living along with the income.  As we receive rent, and I have returned to work, we're trying to keep spending nearly the same amount as before and use the rest to pay off our debts and save more.  We're doing an OK job of it, but I can now more clearly see how important it is.

Sixth (and most importantly, I think), talk to your kids if your life is changing.  I understand why my tenant didn't want to talk to her kids.  I would want to shield my children from financial difficulties, too.  I bet it wasn't any easier once they saw the "for rent" sign in their front yard.  It honestly never occurred to me that her kids didn't know what was happening until I heard about their recent conversation.  It sounds like her teenage children are talking about getting jobs and finding other ways to pitch in during their family's challenging time.  I don't want to second guess, and I don't know their family, but maybe things wouldn't have gotten this bad if they'd been working as a team before now.  (Goodness knows, kids don't like to figure out stuff later.)

I wish this whole situation weren't happening, but it has been a good education for me.  I've learned six valuable lessons, some of which were new lessons and some of which were good reinforcement of stuff I already knew.  Maybe you'll learn a little bit, too.

Paring Our Possessions

It is a constant battle:  all our stuff against me.  But I'm winning, and it is making me happy and saving me money.  Apparently I'm not the only...there have a been a lot of articles lately talking about clearing out, saving up and enjoying the freedom of less stuff.  One of the top 100 blogs on the internet is Zen Habits, which covers "achieving goals, productivity, being organized, GTD, motivation, eliminating debt, saving, getting a flat stomach, eating healthy, simplifying, living frugal, parenting, happiness, and successfully implementing good habits."  Whew!  That's a lot.

I admit, I find the Zen Habits website overwhelming, but by scrolling through quickly or using the browsing tools on the right hand side, I can find the kind of articles that most interest me.  I love how the whole simplifying thing ties in with saving money, and I have definitely found it to be true. 

The Christian Science Monitor's article Less Stuff = More Freedom makes the same point in a shorter format.  Sharing your excess with others makes you feel good, improves your own life, and helps others at the same time.  The financial benefits are an additional bonus.

As PCS season approaches, many of us are looking at our possessions through the weight limit goggles.  However, it is a good time to view all our things through the value filter and see where they stand.  Consign some old clothes, donate those excess household goods, and recycle a box full of paper, and see if you don't feel lighter when you're done.  And if you are lucky, your wallet will feel a little heavier as well.

Photo by:  austinevan

Scholarship Deadline is Near

The application deadline for the Defense Commissary Agencies' Scholarships for Military Children is February 18th.  Applications can be obtained at commissaries worldwide, or downloaded from the Military Scholar website.  The application has to be mailed or delivered to a commisary for consideration.  A minimum of one $1,500 scholarship will be awarded at each commissary that has eligible applicants - that's a lot of scholarships!

Healthier Finances in Seven Hours

NCN at No Credit Needed has put together an excellent "how-to" series on organizing your financial life.  In seven segments, which should take about an hour each, NCN addresses the following topics:

1. Calculating net worth and monthly cash flow
2. Organizing important documents
3. Simplifying bill payment, organization & filing
4. Setting goals and working with your partner
5. Establishing an emergency fund
6. Creating or updating a career portfolio
7. Reviewing your insurance coverage

It is so easy to be overwhelmed by your money and paperwork.  (I struggle with the mountains of paper all the time!)  NCN has made it a little less daunting by breaking it down into smart steps.  If you can dedicate just an hour a week, you'll be together in less than two months.  Feeling enthusiastic - you could be done by next Monday!

Thanks to NCN for sharing this excellent series with us.

Carnival of Personal Finance

Do you know what a blog carnival is?  It is sort of like a best-of from the internet.  Stories are submitted and the best are chosen.  It is a fantastic way to find all the best stuff without having to read it all yourself.

I'm very happy that my post, Becoming A Landlord?  6 Ways to Prepare, was included in this weeks Carnival of Personal Finance.  I've learned a lot in the 13 years that we've owned a rental property and much of it was learned through trial and error.  With our constant moving, military folks are likely to be landlords at some point in their lives.  Might as well be prepared!

This week's Carnival includes several other outstanding articles.  Curtis at PennyJobs.com has put together a fantastic list of 9 Budgeting Myths.  I agree with every single one of them!  Though I do prefer the term "spending plan," budgeting is something that everyone should do.  Many people are scared and choose not to make a spending plan for their money.  Curtis helps to make it a little less intimidating, and reminds us that it takes practice to get good at using a spending plan.  Just because it hasn't worked in the past isn't a good reason to stop trying!

Hank at Own The Dollar reminds us that A Recession Is Not the Time to Shirk at Your Job.  It seems so obvious, doesn't it?  Unfortunately, some companies have developed a culture of not doing your best, and it can be hard to overcome the inertia.  If there is a time to start working extra hard, I think this is probably that time.

JSteele at Ask Mr. Credit Card has me hooked with Part 1 of his Interview With An Insider.  One part of me is completely shocked by what I've read, but another part of me knows this shouldn't surprise me.  Click on over and see what I mean.

There is so much amazingly interesting and useful advice out there.  Checking out the blog carnivals is one way to filter out some of the junk!  Enjoy.

photo by:  Pink Sherbert Photography

Wanting to Check Your Credit Score? Heads Up on This...

Under normal circumstances, I don't advocate paying good money to be told about my credit score.  However, an unprecedented decision by one of the big three credit bureaus has me reconsidering my position.  Experian, one of the three largest credit reporting bureaus, has announced that it will no longer allow consumers to access their credit score, effective February 14th.  You will still be able to see your credit report and associated information, you just won't be able to see your FICO score.

With three credit reporting agencies, and so much variable information, I usually only check my credit reports (by not score) once a year.  This allows me to make sure that all the information is accurate without any cost.   Because I haven't had a recent need for credit, my credit score hasn't been very important to me.  But this whole "no access" situation has me wondering:  should I check my score with Experian?  Does it matter?

Honestly, I don't really know.  If you are planning to make a major purchase, such as buying a house or car, within the next couple of months, then maybe you should check.  Otherwise, is it really worth it?

What do you think?

For more information, check out this article at The Digerati Life:  myFICO To Drop Experian Credit Score and Report: One Less FICO Score?

Do You TSP?

It's that time of year again...the new pay charts have gone into effect, and everyone enjoyed a nice little jump in their pay last month.  This is exactly the right time to increase or start your TSP contributions.  If you are already contributing to a TSP account, how much could you increase your contribution?  Even one percent makes a difference over time.  And it is easy to do.  Just log onto MyPay, click on the Thrift Savings Plan option, and increase your contributions.

You haven't yet started a TSP account?  Now is the perfect time to open an account, before that extra money is absorbed into your regular spending.  Check with your finance office or log onto your MyPay account.  You may choose a percentage of your base pay, plus a percentage of your allowances, special pays and bonuses.

Like I said before, even a small contribution will add up over time.  If you start with a small percentage now and increase it every January, you will eventually accumulate a nice amount in the account.

Becoming A Landlord? 6 Ways to Prepare

There are lots of reasons that you might be considering renting out part or all of your home.  Maybe you are PCSing and your house won't sell, maybe you want to hold on to a starter home while you move up to a larger house, or maybe renting out a room will help you cover your bills each month.  Whatever the reason, becoming a landlord involves a lot of decisions and preparation.

Here are the top six things that you need to consider when you become a landlord:

photo by:  james.thompson

1. Learn everything you can about being a landlord, landlord-tenant law, and other associated information.  Become educated about every aspect of the process before you begin.
2. Budget realistically.  Expenses will probably be higher than you initially estimate.  This could be a huge problem if your tenants don't pay on time or the house requires repairs.  It can be hard when you are a new landlord, but try to put aside a few month's rent for expenses and repairs.  Eventually you will need it!
3. Talk to your insurance company.  Make sure that you have the right insurance coverage for your home - it is a "fire" policy versus a homeowners policy.  It is a good idea to require that your tenants to carry homeowners insurance.  Consider an umbrella liability policy in case your tenant or their guest were to be injured while on your property.
4. Think about whether you want to hire a property manager or manage the property yourself.  In my experience, hiring a property manager was nearly essential.  We were thousands of miles away from the property and did not want to rely on friends or family to help with emergencies.  My property manager has been wonderful, but it took me 5 property managers in two years to find the right fit.  (He's in the Hampton Roads area, if you need a referral.)  Keep in mind that some property management fees might be negotiable - it never hurts to ask.
5. Put everything in writing.  Have a solid lease reviewed by a lawyer.  If you are using a property manager, read through the agreement thoroughly before you sign, and make sure that you have factored all the costs into your budget.
6. Consider the tax implications.  You will need to report all income and expenses to the IRS on a Schedule E, Rental Real Estate.  You can claim an immediate tax benefit if you depreciate your house as an asset, but that will affect the taxes that you pay when you finally sell the house.  Also, the rules for excluding capital gains on home sales changed in 2008.  Previously, you had to live in the home for 2 out of the 5 years prior to selling in order to be able to use the $250,000 per person capital gains exemption.  Now, your exemption will be prorated based on the amount of time that you lived in the house during the five years prior to selling.  For many of us, the amounts are big enough that it doesn't matter (2 people times $250,000 equals $500,000 of exemption, times the percentage of time you lived in the house, still equals a lot of exempt capital gains.)  However, if you purchased your home before the real estate boom and it's value has increased a lot, you will need to consider this carefully.  (Note:  don't forget that military members can defer their sale by up to 10 years if they meet certain qualifications.)

This hits on most of the major topics that you need to consider if you are renting out your home, but there is so much more to it.  Talk to your insurance company, do your homework, and consider hiring a property manager.  Renting your home can be a good choice in many situations, but without all the information, it can easily turn into a big headache.

Here's a link to CNBC segment  in which Carmen Wong Ulrich discussed the issues surrounding renting out your real estate:  http://www.cnbc.com/id/15840232?video=1022101685

Free Tax Webinar from USAA

USAA is producing another "sit in your jammies and learn" webinar called Tips to Save This Tax Season and Beyond.  The program will be featured on February 19th and then will be available to watch afterwards.  Featuring CERTIFIED FINANCIAL PLANNER™  J.J.Montanaro and Chartered Retirement Planning Counselor^SM Laurel Bragg, the program will provide tax-saving tips, ways to put a tax refund toward retirement, and answers to viewer questions about tax and IRA issues.

"With tax season upon us, this is a good time to understand the best strategies for dealing with tax returns, such as opening an Individual Retirement Account or starting an annuity.

USAA experts offer free financial advice to help with wealth management and retirement financial issues."

Go to the webinar registration page here to sign up.  In addition to the great information you'll learn, you will also have a chance to win your own TurboTax software package.

Quotable: Ludwig van Beethoven

"Recommend virtue to your children; it alone, not money, can make them happy. I speak from experience.”

10 Innovative But Obscure Sites That Put Money In Your Pocket

Gregory Go, one of the brains behind WiseBread, has compiled a list of 10 unusual websites that help to save money.  I've had some experience with some of them and the others I'm anxious to check out.

I've used FreeCycle in the past and it has basically worked well for me.  A giver posts some item that they don't want anymore and potential receivers email the giver.  An exchange plan is worked out, usually involving the receiver coming to the giver's house.  I know that some groups suffer from too many no-shows, too much junk, and too large an area to easily drive and pick up items.  I've been in one FreeCycle group that was wayyy to big, but my current area is quite reasonable.  I've given away a lot of things and picked up a few items as well.

I haven't used BillShrink, but I did write about it.  In that article, I also talked about a similar program called Validas.  I didn't find any value in using Validas, other than to reaffirm my belief that I have an exceptionally well priced cell phone plan.  (Sprint doesn't offer it anymore, sorry!)  However, if you've never analyzed your cell phone bill, or you have multiple lines, or you are spending a lot on your cell phone bills, it would certainly be worthwhile to check it out.

I also haven't used SmartPig, but I have done some research into it.  I see some big downsides:  you have to authorize automatic debits until you reach your goal, interest only accrues quarterly (not good if you take your money out just before the end of a quarter, and there are limited way to receive your money when you are done.  On the other hand, it is free, it pays a respectable interest rate, and it forces you to save.  I can see it is a specific tool for a very specific goal, but not good for most savings applications.

I'm curious if anyone has used any of these other ideas - let me know!

photo by:  justj0000lie

Searching Out the Discounts at Military.com

Have you spent any time perusing the Military.com Discounts page?  Every time I look, I find something that surprises me.  Like 10% off at Shoes.com - they are the only place that carries my tennis shoes.  And did you know that Converse outlets will give you 15% off when you show your military ID?  I didn't, until I saw it listed on the Military.com page.

There are also single location discounts, such as Buy One Sandwich get One Free at the Honey Baked Hams shop at Warner Robins, 10% Military discount at NorthSide Aquatics outside of Little Rock, Arkansas, and a complimentary room upgrade at the Radisson UCF hotel in Orlando, Florida.  Various search options allow you to quickly find the discounts you want.

Feeding a Family of Four on $50 per Week?

Everyone is concerned about their food expenses right now.  It is a hot topic around the internet, and I was intrigued by another post with the same title as this one:  Feeding A Family of Four on $50 Per Week.  The author, Mindi of Moms Need to Know, didn't include the question mark, as she's put together a series on how it can be done.

Mindi's article series is very informative and there are many ideas that can help cut your food bill.  I expecially like how she's linked to a lot of resources, such as how to make a price book or ideas for $5 family dinners. Some of her ideas won't work for everyone, though.  I think that the military lifestyle makes some of her suggestions hard to implement.

In the first installment, she talks about her freezer and well-stocked pantry.  I agree that they are both wonderful tools, but what if you are in a teeny apartment with no space for a freezer?  And there is a limit to how sensible it is to stock up if you might be moving soon.

In all, Mindi's ideas certainly show how you can cut your grocery bills dramatically.  One thing that she doesn't talk about (yet, anyway) is her meal planning.  I know that I keep my family's grocery bills much lower when I take the time to plan our our meals each week.  By eliminating that dinnertime dilemma, I avoid expensive convenience foods and succumbing to take-out.

In addition, I try to do the bulk of my shopping at the commissary.  It isn't very convenient for me, but I try to get to the commissary every 2-3 weeks and stock up on the basics that are so much less expensive there.  I still go to the local grocery stories for fresh produce, good deals, and organic milk (which is less expensive there.)

I'm sure I cann't feed my family (of 6, or 5 for the next year) for $50 per week, but I'm sure that I can make some improvements.  How about you?

More Scholarships

There are a couple of scholarships for military family member that are currently accepting applications:

If you have a child who will be attending college or vocational school during the 2009-2010 school year, click here to learn more about the American Freedom Patriot Scholarship Award for Military Dependent Children.  The 25 $1,000 scholarships are available to the children (ages 17-21) of active duty, retired, disabled or fallen service members.

The Joanne Holbrook Patton Military Spouse Scholarship Program, administered by the National Military Family Coalition, has extended the deadline for applications from the spouses of wounded and fallen military members until February 16th.  The regular deadline for application was February 1st, but the scholarship's sponsor is hoping to be able to offer more scholarship to the spouses of wounded and fallen members.  The link to the special application forms is here.

Also, be sure to check back at the NMFA website in March when the applications for the Military Spouse Fellowship for the Accredited Financial Counselor Program will be available.

The Marine Corps Scholarship Foundation offers scholarships to the children of current and former Marines.  The deadlines for the current year's application are March 1st for students who will be beginning their post-secondary education in the 2009-2010 school year, and April 15th for all other students.

Wonder How Our Lending System Developed?

I recently found this fascinating series of YouTube videos that explains how the lending systems work in this country.  They are a little complicated and about 10 minutes per segment, but the things I learned were abssolutely intriguing.  If you've been wondering how all the current lending situation could happen, these videos will make it clear.

I'm embedding the first segment here.  To watch the following segments, click on the "You Tube" symbol to go to YouTube.  The remaining parts will be featured on the right hand side of the screen.  Enjoy!

Time to Do Something Drastic

I've just gotten my second big gas and electric bill in a row.  After the first one, I made a few changes, but this second bill has caused me to consider bigger changes.  I've been doing some research and I think I have some ideas.   We use gas for heat, hot water and cooking, and electricity for everything else.  I'm going to look at them as two separate bills and figure out how to lower both.  Here's what I'm going to try:

Things I'm going to do to lower my gas bill:

1. Limit the length of our showers.  My daughters have just recently discovered the joys of a long, hot shower.  We're going to start using a timer to keep our showers down to a reasonable length.
2. Check to make sure that every storm window is tightly closed.  Caulk and weatherstrip as necessary.  Hang thick curtains, quilts or blinds over all the windows, but do a better job of opening them when the sun is shining.
3. Stop using the space heater and put on more clothes.  This one is going to be really hard for me as I really like the space heater under my desk.  I might even consider moving my computer upstairs where it is significantly warmer.
4. Do something with the old fridge in my basement.  It is about 13 years old, which is just on the borderline for being inefficient.  Also, the seal hasn't been exactly right since we last moved the fridge to paint.

One side of me think that I should make a more aggressive list, the other side thinks that this will be more than enough to keep me busy.  I wonder if it will help.  I guess we'll find out!

photo by:  Eddie~S

Carnival Time

I'm so excited that another Paycheck Chronicles post has been featured in the Carnival of Personal Finance!  (And I even got three red hearts to show that it was an "editor's choice.")  This week's Carnival is being hosted at Funny About Money and features my recent post, 5 Reasons That Not Saving Me Money is Saving Me Money.

I've read through this weeks submissions and a few particularly stand out.  

• Free From Broke makes an excellent case in 9 Reasons You Need A high-Yield Online Savings Account.  I don't agree with all his reasons, because I am able to find pretty good returns at my credit union and with USAA, but most of his other thoughts make a lot of sense.  The "out of sight, out of mind" reason works very well for me, and I like the idea that you can have sub-accounts within one major account.  Why don't all banks do that?
• At Monogamoney, Hannah looks back at The financial lessons I've learned from my younger self.  I often think about my first grown-up paychecks and how far I was able to stretch such a small amount of money.  As our income as increased, so have our expenses.  Hannah reminds me that I need to focus on the basics that got us through the lean times.
• RC at Think Your Way to Wealth writes about Discussing Money Issues With Your Husband or Wife.  As military families, I think that it is even more important that we learn the skills that keep financial conversations pleasant and productive.  RC provides solid suggestions for how to make it happen.

I'm always amazed by how many smart people there are in the blogosphere, and I love learning from new sources.  Check 'em out!

photo by:  ButterflySha

More Dates for the Financial Roadshow

Thanks to Love My Tanker at Spousebuzz  for letting me know that new dates for the Financial Readiness Challenge Financial Roadshow have been announced.  Upcoming locations include:

• Andrews Air Force Base - February 18, 2009
• Marine Corps Air Station Miramar - February 21, 2009
• Naval Base San Diego - February 23, 2009
• MCAS Beaufort - February 24, 2009
• MCRD Parris Island - February 24, 2009
• MCRD San Diego - February 24, 2009
• Murphy Canyon Chapel - February 24, 2009
• Camp Pendleton - two locations - February 25, 2009
• Naval Amphibious Base Little Creek. February 25, 2009
• USS PELELIU (LHA-5) - February 26, 2009
• Los Angeles Air Force Base - February 26, 2009

Registration is being handled through MilitaryHOMEFRONT, the Department of Defense website for official Military Community and Family Policy programs.

In addition to these confirmed sites, plans are in the works for Little Rock Air Force Base and Fort Meade in March, and Fort Polk in May.

I'm registered to attend the one at Andrews Air Force Base in a few weeks.  I'll let you know what I learn!