Quotable: John Ruskin

“Every increased possession loads us with new weariness.”

NMFA E-News

From the current NMFA Government and You E-News,

1. Association Testifies at Appropriation Hearing

2. Five States Pass Compact in the Month of the Military Child!

3. Military OneSource Expands Counseling Sessions

4. Post 9/11 GI Bill Applications Accepted

5. New VA and SG Positions

6. Swine Flu Information for Military Families

7. Scholarships for Military Children and Spouses

8. Last Week to Apply for Free Training in the Personal Finance Profession

31 Cent Scoops at Baskin-Robbins - Tonight Only

Tonight is a great promotion at Baskin-Robbins.  From 5 to 10 p.m., ice cream is only 31 cents per scoop.  More information can be found here.  A store locator can be found here.  Enjoy!

Deadline Soon! Military Spouse Career Advancement Account

The Military Spouse Career Advancement Account is a Department of Defense initiative to help military spouses (including activated Guard and Reserve spouse) prepare for portable careers.

There is a lot of information and it isn't all easy to understand.  Basically, the program was tested in many locations last year and is expanding to the rest of the DOD.  I'm having trouble finding exact dates, but I have seen it published that applicants should do the preliminary registration by the first week in May.  In order to register, go to MyCAA Homepage and click on the Create An Account link.  The registration process is pretty easy and doesn't require you to have a plan yet.  At the MyCAA, you can also look for programs of study and participating colleges.

Links to more information include: Military One Source info page, MyCAA FAQ page, Army.mil announcement page.

This has the potential to bring advanced training to lots of military spouse.  Without any firm details, it seems smart to go ahead and register today.

Festival of Frugality: The Spring Has Sprung Edition

I'm very excited to be hosting my first blog carnival, and I'm quite glad that it is the Festival of Frugality because it was one of the first carnivals I ever entered.  There are a ton of fantastic submissions this week, though it seems like that is true every week.  I hope that my regular readers will find all these great posts to be a valuable addition to their financial education.

Where I live, in the mid-Atlantic, spring has come with a vengeance.  Or maybe it is summer...it was well over 90 degrees today.  With spring comes many things:  people are graduating, the earth is turning green, all sorts of things are growing up, and people are getting out and about.  (I'll be the first to admit that I'm really stretching these categories, but I was determined to write about spring.)

But first, the Editor's Picks:

It's Frugal Being Green presents How to Want Less posted at It's Frugal Being Green.  This is one of the most important changes that I am always working towards.

Peter presents Days Like This Make You Realize What Is Important: It Isn’t Your Possessions posted at Bible Money Matters.  So true!

MLR presents Breakdown of a Car Insurance Policy (What Do All Those Numbers Mean?!) posted at My Life ROI, Getting the Best Return On Life.  This is a great informative piece - I actively try to keep up on my auto insurance and I still get confused sometimes.

Jeff@StretchyDollar presents Don’t Envy Debt posted at StretchyDollar.  I think we all get stuff envy sometimes, but it is a lot easier when you think of it as debt envy.  Ick!

FFB presents Don’t Let Money Ruin Your Marriage! posted at Free From Broke.  I am thankful that I married someone who is financially compatible, but it was just luck.  Such a conversation would have been a smart thing to do before we got married.

And now, the rest!

Graduating and moving on to the next stage of your life:

Raymond presents Personal Finance Books Top Picks posted at Money Blue Book.

Nate Desmond presents 9 Essential Free Programs Every College Student Must Have posted at Debt-free Scholar.

Momma presents How to stretch your budget and get free groceries! posted at Engineer a debt free life.

Pinyo presents How To Create A Budget posted at Moolanomy.

FMF presents 5 Key Sacrifices to Make if You Really Want to Save Money posted at Free Money Finance.

Jim presents Free FICO Credit Score posted at Blueprint for Financial Prosperity.

Renee V. Rouse presents Family Meals for Under $5 posted at Frugal-Living-Skills Blog.

Paul Piotrowski presents The Importance of Saving Money posted at Inspired Money Maker.

That One Caveman presents My Frugal Story: Generic Pain Killers and Pre-Buyer’s Remorseposted at One Caveman's Financial Journey.

Savings Toolbox presents Squeezing More Savings Out Of Your Budget posted at Savings Toolbox.

Jeff Rose presents 7 Pointers On Buying First Home posted at Good Financial Cents.

ChristianPF presents Total Money Makeover Audio book giveaway posted at Christian Personal Finance.

Finance Tips 101 presents What You Need to Know about Academic Scholarships posted at Finance Tips 101.

Tushar Mathur presents How to choose a financial planner posted at Everything Finance.

d. ninja presents Dude, where's my negative net worth? posted at Punch Debt In The Face

Manshu presents Store Brands: Money Saving Idea posted at OneMint

Kate presents Steps For Stockpiling posted at Our Red House.

Patrick @ Cash Money Life presents How to Make Chicken Stock posted at Cash Money Life.

Thursday presents 3 Steps to Take When Buying Used posted at Wealth Junkies.

Martin Roth presents MW Boone and Associates - interview with Christian Counseling Services posted at Christian Counseling Services.

Jenn Fowler @ Frugal Upstate presents A Full Cup Coupon Challenge posted at Jenn @ Frugal Upstate.

Destroy Debt presents My Credit Limit Got Lowered Below My Outstanding Balance posted at Destroy Debt.

Heather Levin presents Grocery Store Tricks And How To Avoid Them posted at The Greenest Dollar.

MoneyNing presents What Drives You to Be Frugal posted at Personal Finance Blog by Money Ning.

vh presents Bankbooks and Financial Records: Things people say about themselves posted at Funny about Money.

Raj Patel presents Ways to Use Plastic Wisely? posted at DebtGoal.

Madison presents SwagBucks Sign Up Bonus and Gift Cards posted at My Dollar Plan

Going Green:

GrrlScientist presents Meme: My Earth Day Resolutions posted at Living the Scientific Life.
 
Wren Caulfield presents Why Commute by Bike? posted at True Adventures in Money Hacking.

Erin aka Conscious Shopper presents Save Money and Plastic with Bulk Bins posted at The Conscious Shopper.

Make it from Scratch presents Homemade Carpet Refresher posted at Make It From Scratch.

Aryn presents Five Simple Ways Go Green in a Bad Economy posted at Sound Money Matters.

Kris presents 156 Cheap, Healthy Recipes for Ten Common Leftover Herbs posted at Cheap Healthy Good.

Tom Drake presents 10 Ways To Reduce Your Electricity Bill posted at The Canadian Finance Blog. 

Elizabeth G (Modern Gal) presents My Modern Frugal Kitchen posted at Modern Gal.

Kristia presents Small changes in your home can protect your earth and your balance sheet posted at Family Balance Sheet.

The Smarter Wallet presents How To Sell Used Items: Profit From Your Gently Used Stuff posted at The Smarter Wallet.

RC presents 20 Ways To Reduce Your Household Energy Use posted at Think Your Way to Wealth.

Rob presents Learn a lesson with the Power Hog posted at Energy Saving Gadgets.

Joe Caterisano presents How To Save Money When Doing Laundry posted at Penny Pinching.

Fabulously Broke presents Receiving Gifts posted at  Fabulously Broke ....in the City.

Growing Up (and on to more complicated stuff):

Mark Aucamp presents Credit crunch means talking about money and the lack of it posted at Money Saving Expert.

Investing School presents OptionsXpress Review posted at Investing School. 

Neal Frankle presents Investment Strategies That Work - Day 4 - Asset Allocation posted at Wealth Pilgrim: Money Management Advice, Financial Stess Management, Addiction Recovery Plan & Resources.

FIRE Finance presents Why do we get laid off? A complicated corporate work culture .... posted at FIRE Finance.

MBR presents Savings Account Rates posted at Monitor Bank Rates.

Bank Savings Review presents Is Citigroup Vikram Pandit’s Job Safe? posted at Bank Savings Review. . 

Money Beagle presents Easy Way To See If People Are Cutting Back posted at Money Beagle.

DR presents Citi Forward Review posted at The Dough Roller.

Jason presents In This Economy … posted at Automatic Finances.

Steve Faber presents Is My Auto Insurance Company In Trouble? - Signs to Watch Out For posted at Cheap Car Insurance.

Miss M presents A Tale of Two Economies posted at M is for Money.

Mr. CC presents Costco Amex vs. Blue Sky Amex posted at Ask Mr Credit Card's Blog.

Jesse Moran presents How to Protect Everything You Have Worked For posted at Compgifts - The Frugal Way of Life.

Getting Out:

anotherjen presents The Next Rich Girl: 7 Cheap Luxuries to Soothe the Recessionista's Soul posted at The Next Rich Girl. 

J. Money presents Life Experiences Far Outweigh The Cost of Attaining Them posted at Budgets are Sexy.

Silicon Valley Blogger presents Name Your Price With Priceline: Get A Bargain Vacation posted at The Digerati Life.

The Happy Rock presents $10 cheese - Living The High Life While Blowing The Grocery Budget posted at The Happy Rock.

kathryn presents Stretch the Budget for a Family Vacation posted at Out of Debt - Christian Finances and Debt Help.

Broke Grad presents Why I Never Bring My Lunch To Work posted at Broke Grad Student.

Submit your blog article to the next edition of Festival of Frugality using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Military Spouses - the Biggest Phone Tree Ever!

The Military Spouse Residency Relief Act (Senate Bill 475 and House Resolution 1182) has the potential to impact military families in a variety of ways, including several provisions that will have an economic impact.  It is coming up for a Senate hearing on Wednesday, April 29th.  This would be a great time to contact your legislators and let them know how you feel about this bill.  If you are able to call or write, or even attend the hearing in DC on Wednesday, you would participating in our government at the most basic and important level - letting our elected officials know how their constituents feel about the issue upon which they are deciding.

At it's heart, the Military Spouse Residency Relief Act will allow military spouses to choose to maintain a home-of-record like their active duty spouses do - a single place for the entire family to pay taxes, register to vote, and maintain their automobile registration and driver's registration.  It will make life more convenient and less expensive for military spouses who move due to their sponsor's reassignments.

I admit, there isn't a lot in this bill that will impact me personally.  We've organized most of our affairs such that we don't have too many problems - my husband is the sole owner of both of our vehicles, and I maintain my driver's license and voter registration in his home-of-record state (and haven't run into any problems yet.)  If it passes, I will surely be glad to file just one set of income tax documents, and it would be nice to put my name on the title to a car once in a while (meaning one less Power of Attorney to worry about.)

If you are on Facebook, the Military Residency Relief Act has an information page here.  If you click on the NOTES section, there are sample letters and lists of the bills' co-sponsors.

There is a lot of information on this bill, and I didn't want to make this post five miles long.  You can google it, or comment, or email me for more information.

Using USAA Discounts

A fellow military spouse just reminded me about the great car rental discounts that can be found at USAA, and it made me think that I should probably highlight the variety of discounts that USAA offers.

If you go to the USAA homepage, then click on Products & Services, there is a button for Shopping & Discounts.  If you go to that page, you will find USAA's discounts on diamonds and other jewelry, travel savings, bargain Avis, Budget & Hertz car rentals, 20% off all Teleflora orders, huge discounts on FedEx services, and ADT home securitysystems and monitoring.   You will have to log into your USAA online account to access the discounts, but it is surely worth your time.

New Credit Card Offering from Navy Federal

Navy Federal has a new credit card offering that might interest you.  It is called the cashRewards card, and it offers a 1.0% cash rebate on purchases.  (1.5% on total yearly purchases in excess of $10,000.)  It appears that you have to request your cash rewards and you have to have a total rebate of at least $20 to redeem it.  It has no annual fee, no balance transfer fees, and no cash advance fees.  The interest rate on this account is variable.

I'm not choosing to switch my card to this one due the variable interest rate, but it may be a good choice for you if you never carry a balance.

Don't forget...Navy Federal membership is now available to all branches of the service, including National Guard and reserves, and DOD civilians.  Plus, your family is eligible to join.  So far, I've converted my mom and two of my three siblings, and they're all delighted with Navy Federal.  I imagine you'd be delighted, too.

Quotable: Richard Needham

"When money is seen as a solution for every problem, money itself becomes the problem." 

Places to Go and Stories to Read

The Paycheck Chronicles has been featured a few places this week:

The Money Hacks Carnival, hosted by The Personal Finance Playbook, included Can Fitness be Frugal and Successful?

The Festival of Frugality, hosted by My Life ROI, offered No Spend Days.

The Carnival of Pecuniary Delights, hosted by Living Well on Less, selected The Case for Separate Credit Cards.

The Case for Separate Credit Cards was also included in an interesting article at Green Panda Treehouse. Joint Banking, Budgets and Savings addresses many of the issues surrounding money when you're part of a couple - what to share, what to keep separate, and how to make it all work.

Outside of our little world at Military.com, I've noted a couple of interesting ideas:

From Suburban Dollar, who was inspired by ManvsDebt, who got the idea from Jim at Bargaineering(whew!):  My Financial Network Map.  I think this is a very interesting concept and it seems like a great way put all this information into an easy to understand picture.  This would be useful to put with your emergency documents, so that another person could take over your finances if necessary, or to share with a spouse who doesn't regularly handle the money.  I've put it on my to-do list!

6Bubblesdiscusses Strategy vs. Tactics- the difference between a financial plan, and the steps that are involved in the execution.

Mrs. SD does a series of guest posts at StretchyDollar, talking about how she converted her husband from a spender to a saver.  It can be so hard when couples aren't together on finances, and I love how she helped the evolution happen.

I'm off to the Milblogging conference in Washington, DC this weekend, so I'm not sure how the posting is going to go.  If you're coming to the conference, look for me!  Have a great weekend.

From USAA: The End of Easy Money

This article was written by Kerry Hannon and furnished by USAA.

Shakespeare's famed line from Hamlet, "Neither a borrow nor a lender be," never seemed more fitting.

As the worst financial crisis in decades has taken hold, banks have put the squeeze on all sorts of consumer loans.  They're taking steps to ease their risk, as unemployment rates climb and the number of delinquent borrowers swells.

If you want a new home or a new set of wheels and have less-than-stellar credit, you might have a hard time finding a lender and a decent rate.  "The bar has been raised on who gets the very best rates," says Greg McBridge, senior financial analyst at Bankrate.com.

Lenders are ratcheting up minimum credit scores, requiring heftier down payments and upping interest rates for borrowers with less-than-pristine credit histories.  The end of easy money has arrived, and lenders nationwide are ready to help you learn how to live within your means the hard way, by not lending you any more dough until you prove you can pay it back in a timely fashion.

As the ever-wise Shakespeare penned, "Put money in thy purse."

BEING A GOOD BORROWER

For most, an unblemished credit score and a steady pay-check will make landing a loan no more difficult than in years gone by.  "You need to be financially fit and have the documents to prove it," McBride says.

"Yes, the credit environment has changed, " acknowledges USAA Federal Savings Bank President David Bohne, "but our bank is strong and we continue to help members meet their credit needs.  If you have a good credit history, we'll offer you the best terms we possibly can."

By far, the biggest change in the credit environment is what lenders consider a good FICO credit score.  That's the three-digit number, generally ranging from 300 to 850 and devised by the Minneapolis-based Fair Isaac Corp., that often determines whether you'll get credit and what interest rate.

THE NEW IDEAL

The credit-worthiest borrower a year ago was someone with a 680 to 700 FICO score.  Now it's someone with mid-700s and up, McBride says.

It's not that Fair Isaac has changed how it calculates the score, it's that lenders are looking for higher numbers than they did even six months ago.  "Essentially, your credit report had better be as good as it possibly can."  says Carol Kaplan, a spokeswoman for the American Bankers Association.  That said, every lender has "its own standards, so there is no one specific credit score that means you're scot-free."

But in general, scores need to be at least 50 and often 100 points higher than they needed to be a year ago to get the best rates, Kaplan advises.  If you're shopping for a loan, here's what to expect.

MORTGAGES:  The basics are back.

Gone are the days when breathing was enough to qualify to get a mortgage loan," says Keith Gumbinger of the financial publisher HSH Associates, which tracks rates on mortgages and consumer loans.  "We're back to a more normal credit environment for mortgages."

Loans may still be available for those with scores as low as 620 and perhaps lower, but you'll pay for it with a much higher rate, say, more than 10 percent versus around 5 percent for a 30-year, fixed-rate, $300,000 loan.

In addition, to show you have the whetwithal to pay, lenders are eyeing an overall debt-to-gross income ratio that falls below 40%.  That's down fromt he 55 or 60 percent that some lenders approved before the mortgage meltdown, Gumbinger says.  The maximum ratio to qualify for a VA loan is 41 percent.  Even if a lender does not hold you to this, you would be smart to do so yourself.

And you'll need cash for a down payment.  "Lenders want you to have skin in the game," he observes.  The amount is creeping back to 20 percent for the best rates, but plan on putting down at least 10 percent.  Lower amounts are still available on Federal Housing Administration loans, if you qualify.  Moreover, you will need the paperwork to prove your income, assets and overall balance sheet.

Borrowers looking to refinance with reasonably good credit and a home that hasn't lost too much value will find ample mortgage money.  But to qualify for the premier rates, those refinancing need to have pristine credit and at least 10 to 20 percent equity in their homes.

AUTO FINANCING

Expect tougher financing and say goodbye to no-cash-down deals.  "The credit market is definitely tighter now than it was a few months ago, but credit is still available for car shoppers," says Jesse Toprak, an industry analyst with automotive information website Edmunds.com.  "The key is, if you qualify.  Those with good credit histories can still get the car and the deal they want and terms just as favorable as ever."

Interest rates currently range from 0 percent financing for borrowers with excellent credit up to more than 16 percent for a borrower with a score in the 500s.  The national average rate for a borrower iwth a 720 score is now 6.68 percent on a $25,000 loan amount.

And down payments are back.  You'll probably need a score of 700 or above to finance a car without a down payment, up from 650.  Borrowers below that score might be asked to pony up as much as 20 percent in cash.  But lenders are even requiring consumers with average credit to throw in at least 5 percent, and more frequently 10 or 20 percent.

And lenders are restricting the length of loans.  So for many consumers, signing up for a loan that's longer than five years, a common practice the past few years, might not be a choice.

CREDIT CARDS

For credit card holders, there are fewer offers for 0 percent balance transfers or low-interest cards landing in mailboxes.

Card companies have been reducing credit limits, raising interest rates and fees and closing idle accounts in response to rising business costs and charge-offs, which occur when banks treat delinquent accounts as a loss.  "Days of a $25,000 credit card limit with a credit score in the 600s are gone," says John Ulzheimer of Credit.com, a consumer credit information and application site.  "Getting approved for a new credit card is definitely more difficult, but it's not Armageddon, as some people say,"  he adds.  "As with other consumer loans, it's all about your credit score.  Try to get it well above 700 for the best deals."

The big danger from a credit picture perspective is having a credit card's limit reduced or closed for non-use, Ulzheimer.  Reducing credit lines has hurt some consumers by affecting their debt-utilization ratio, which is the percentage of available revolving credit they're using on credit cards.  A high debt utilization can lower a credit score, which then makes it toughter to get credit or at least get credit under favorable terms.  Make a habit of using each card once every six months at least, and they pay the bill before the grace period expires and you start to owe interest.

In Case of Emergency

I often think that we military folks are pretty good at planning ahead.  Some of that is due to the nature of the job, and some of that is the nature of the military:  you have to decline SGLI coverage if you don't want it, and your command is probably always reminding people to have up-to-date wills.  However, there are a multitude of details that even prepared people often miss.  Fortunately, Pete at Bible Money Mattersis putting together a series, In Case of Emergency, that talks about these details.  Yesterday's installment discussed the physical storage of documents and data, and today's article talks about how to organize all those account numbers, telephone numbers, and other information.  I'm really looking forward to reading the rest of this series because the first two segments have been so good.

One smart thing that I did several years ago (and have failed to update ever since) was to make an account list (like in Pete's post) and send copies to each set of parents.  That way, there would be somewhere to get important information if something happened to our home, or if something happened to us!  With today's technology, you could burn it to a disk or send it in a spreadsheet.

I encourage you to make a comprehensive list of all your important account inforrmation and take whatever steps are necessary to make sure that information can be accessed if there is a death or disaster.  Preparation will save a lot of stress, either for yourself or for your loved ones.

June Walbert Talks about Emergency Funds

More than ever, an emergency fund is an important part of your financial plan.  In this video, USAA's June Walbert talks about creating and keeping emergency funds.

A Financial Back-Up Plan

Most days, I am pretty financially aware:  I know how much money is in my bank accounts, I know if there is anything on our credit cards, and I know what bills are coming in soon.  I keep it all on paper (or software) but it also sits in the back of my brain.  Keeping on top of my finances is a key to making sure that everything gets paid on time, I don't spend more than I have, and that I don't overdraw my bank accounts.

During every life, however, there are going to be short periods of time when your brain is occupied with other stuff and you can't keep up with all the details of your financial life.  A family emergency, a new baby, or an unexpected deployment can temporarily distract you from fiscal matters.  Military life seems to bring a larger than normal share of surprises.  Good preparation can keep an emergency evacuation or urgent hospital stay from creating chaos.

There are a few ways to set up your finances so that short-term inattention doesn't result in long-term disaster.  Take a little bit of time to pick the tools that will work best for you and then put them into place.  When life gets complicated, you won't have to worry about your money.

1. Have an emergency fund. How big? That depends. Are you single, living in the barracks, and just started your enlistment, or married with a mortgage and four kids? Are you locked into the military for a chunk more time, or are you nearing the end of your enlistment? To figure out the size of your idea emergency fund, try to envision your worst possible financial month. Plane tickets to go home? Huge car repair? Leak in your upstairs bathroom (and subsequent flood of the rest of the house?) Someone in the hospital and you have to eat in the cafeteria for two weeks? Try to estimate cost of this worst possible month. Obviously you can't save up that much money all at once, but look at that as your goal. Any emergency fund is better than none!
2. Set up overdraft protection on your checking account  Check with your bank or credit union to make sure that you are only paying for the overdraft protection when you need it, and that there isn't a huge fee when it is used.  This is only to be used by accident or for true emergencies.  If you are using it more than twice a year, you need to look at your situation and find out what is wrong.  One thing I've learned - get more overdraft protection than you think you'll need.  Inevitably, the one time you miscalculate will be the one time that you have an unusually large check go through.
3. Set up a default automatic bill payment.  For example, I have our mortgage on EasyPay.  I always pay manually before the due date, but if I were to forget, the money would automatically be transferred on the due date.  For my credit cards, I have them schedule to pay the minimum payment due on the due date.  Since I rarely have a balance and/or I've already paid, no payment comes out.  Just make sure with your bank that it will work the way you think it will.  Every financial institution has unique procedures and it is important that you understand how it will work.  Having just this minimum payment made automatically will prevent you from having your interest rate increased due to the default rules.
4. Simplify your finances.  Don't create complicated money-saving schemes that require more work on your part.  Try to work out of just one or two checking accounts, and don't have balances on multiple credit cards.
5. Pay non-automated bills when they come in.  This is a huge problem for me...we get a water bill every other month, and rarely at the same time.  If I don't pay it as soon as it comes in, it is forgotten and the late payment fee is quite big.  Plus, if we were to be on vacation or otherwise distracted when the second notice came, they would turn off our water.  That would be a huge bummer.
6. Use all this snazzy new technology to help you keep on track.  You can set your computer, your PDA, even your phone to remind you to pay certain bills on certain days.  If you are unable to pay that instant, use the "snooze" features to remind you again until it is done.  Just make sure the alarm is on a piece of gear that you will have in the event of an emergency, and that you will have a way to pay the bill if you are not at home.
7. Have a credit card with a goodly amount of credit available on it.  In the event of an unforseen circumstance, this might be the easiest way to manage your finances until the situation has ended.

Obviously, this isn't a one-size-fits-all sort of plan, but more of a do-what-is-going-to-work-best-for-you situation.  Some advance planning will alleviate a lot of stress in an urgent situation.  The last time I needed to go to a funeral, it was a blessing to be able to tell my husband, "Don't worry about the money.  Just do what you need to do, and I'll sort it all out when I get back."

Many thanks to the contributors at the WiseBread forums board for their suggestions for this article, including Philip Brewer, Starshard0, KevinW, StephenDress, Megan, and financialnut.

Another Scholarship Opportunity

I've just read about another scholarship for the children of military members who have been killed or permanently disabled in an operational mission or training accident.

From their website, "The Mission of Freedom Alliance is to advance the American heritage of freedom by honoring and encouraging military service, defending the sovereignty of the United States and promoting a strong national defense."

The Freedom Alliance Scholarship is available to high school seniors, graduates, or undergraduate students.  For more information, see the website at www.fascholarship.com.  If you know anyone who would qualify for this scholarship, please be sure to pass the information on to them.

Can Fitness Be Frugal and Successful?

(This is an adaptation of a post at SpouseBUZZ.)

I have reached a point where I need to do something drastic about my exercise and body.  I don't have the energy I should, my health is not as good as it could be, and I'm tired of feeling lousy when I see pictures of myself.

Being the planning geek that I am, I was making a little chart of my options and their pros and cons.  My ideas included continuing to do what I'm doing now but being more dedicated, joining a gym, joining a gym and getting some sessions with one of their personal trainers, or doing one of those intensive one trainer - one client places.  As you can see, I've listed them in order from least cost to highest cost, which unfortunately is exactly the opposite order of how likely they are to be successful.  I was struggling with the balance between cost and results.   On one hand, why should I pay money for something I should be able to do by myself?  On the other hand, doing it myself hasn't exactly been working, and you can't really put a price on my health.  I'm sure many of you struggle with this question as well.

On Wednesday, I had a free introductory workout at a Fitness Together about 1/2 mile from my house.  My brother runs a Fitness Together studio (in Alexandria, tell him I sent you :) and while he admits that it is expensive, he says that it is the best program he's ever worked with and it will definitely work for me.  (Being my brother, he also mentioned that I might want to lay off the wine and McDonalds, but that is another story.)  The studio was very nice and I liked having the individual attention of a trainer who could get all my weights right and make sure I was using good form.  On the other hand, I'm still a little confused about how you can get results with such a small amount of work.  I guess it is all about quality over quantity.  They advertise the advantage of being alone in the workout space.  That isn't really an issue for me  but I can see how that is really valuable for some people.  Of course, this type of personalized attention comes with a hefty price tag.  I decided I would have to think about it and explore my other options.

I was chatting with a friend yesterday about my dilemma, and how I probably needed to go check out the three gyms in my smallish town and that I needed to not procrastinate.  She mentioned that the local Naval Station had a gym (duh!) and she thought that they had personal trainers there.  It is about 15 minutes from my house, versus 5 minutes for the Fitness Together, but I'm down that way pretty regularly going to the commissary, the bank, and all those other chores that just need to be done on base.  On my way to the commissary, I stopped in and checked it out.  The facilities are free (bonus!) and while the spaces aren't fancy or even really appealing, they have all the equipment I need to get some strength training.  Plus, they have a small collection of classes and they have a personal trainer who is less than 1/3 the price of Fitness Together.  I feel that the expense of a personal trainer is worth it to me right now because what I've been doing alone hasn't been working.

I'm going to give the Naval Station gym a shot.  You can't beat the price, and I might actually keep food in the house if I'm driving by the commissary three times a week.  They don't have child care, so I'm not sure what I'll do once summer comes, but I figure I'll give it a shot for the next 7 weeks until school gets out.  That should be a decent amount of time to see if this plan works for me.  If it doesn't, I'll have to reconsider the more expensive options.  I hope that this balance of price, convenience and effectiveness is a winner!

I'm at an odd place where the money isn't quite as important as the results, but I still don't want to spend money unnecessarily or wastefully.   I would love to hear if you have any other ideas about ways that we can keep our bodies fit and healthy without making our wallets unfit or unhealthy.

Quotable: Jim Rohn

"Time is more valuable than money. You can get more money, but you cannot get more time."

Three Carnivals

Due to Easter, my visiting in-laws, and a surprise visit from my husband, I didn't enter many blog carnivals last week.  Two articles were picked up, however...

The Festival of Frugality, hosted by Stretchy Dollar, tops off their Funds section with Is This Balance Transfer a Good Deal?

The Carnival of Pecuniary Delights, hosted by Miss Thrifty, included What If Your Landlord Is Foreclosed Upon?

The Money Hacks Carnival, hosted by Consumer Boomer, listed Regaining Control of Your Credit Cards.  This is actually a duplicate from last week's Money Hacks Carnival...I'm not really sure what happened there.

As usual, there were a variety of great reads elsewhere on the web this week:

Christian Personal Finance has put together an excellent list of 10 Free Household Budget Spreadsheets.  These are perfect if you want to start tracking your money but don't know where to start.

Suburban Dollar offers a UPromise College Savings Review.  I've often wondered about the UPromise account, but thought that I don't shop "out in town" enough to make it worthwhile for me.  Why am I passing up free money, even if it is just a little bit?  I'd bend down to pick up a penny, why not register for something that has the potential to earn a lot more?

Peak Personal Finance addressed 3 Smart Personal Finance Tasks You Are Probably Putting Off.  I know I have been guilty of all three at various points in my life...how about you?

I firmly believe that the more you know, the better you will be at making smart money choices.  Browse through these articles, and the carnivals from which they come, and you'll find an amazing amount of knowledge there.

Free Pamphlet from Kiplinger

Kiplinger Personal Finance Magazine and the Better Business Bureau Military Line have put together a free, downloadable pamphet called Personal Finance for Military Families:  Your One-Stop Guide to a Secure Financial Future.  Topics include Savings Strategies, Financial Fraud,  Be Prepared, Home Sweet Home, Transition, At Your Service, and Organize Yourself.  It includes a form to record your financial account details and a list of resources.  This is a great primer on basic financial issues that affect military families, and at 20 pages, there isn't too much to read or print out.  Enjoy!

Uncluttering: It's a Win-Win Scenario

Hi, my name is Kate and I have too much stuff.

Having too much stuff is a common problem, and it can be costly.  Fortunately, over at Unclutterer, Gregory Go has written a guest post called Seven Benefits of Uncluttering.  In addition to providing inspiration, Gregory includes resources to help you actually go through your stuff and clear it out.

PCS season is approaching fast, and what better time to reevaluate the things in your life.  Decluttering is a win-win situation, where you can make a little cash with your things plus improve your life at the same time.

I took a load of clothing to the consignment shop today, plus I posted a book for sale on half.com and put together another pile of clothes to go to the store in the next few days.  What kinds of decluttering activities are you doing right now?

Stretch Your Dollar Challenge

iVillage, the online community, puts together some interesting online challenges.  In May, they are putting together a new financial challenge, the Stretch Your Dollar Community Challenge.  The coach for the Challenge is personal finance author Mary Hunt.  I have been a long time fan of Mary Hunt for her personal understanding of financial challenges, and her enthusiasm for maintaining financial fitness as a lifelong journey, not a one-time, get-out-of-debt activity.

Starting May 4, you will begin receiving emails with money-related assignments. These emails are the basis of a four week action plan to save you money in all areas of your life.  By the end of the four weeks, you will have a solid financial plan and the tools to continue with your smart decisions.  During the challenge, you will have access to the "Challenge Board," an online forum where you will be able to interact with other participants. 

To sign up, enter your email address at the Stretch Your Dollar homepage by May 3rd. I signed up today so that I wouldn't forget to do it, and I'm sure I'll be pleasantly surprised when the emails start hitting my mailbox on May 4th.

Is This Balance Transfer A Good Deal?

I recently received an email with an enticing offer:  2.99% balance transfer for the life of the balance.  I usually dismiss these sort of offers because I'm really happy with my current credit cards and I know that I've got great rates right now.  However, for the sake of education, I decided to compare this offer with my current situation and figure out what was better for me.

The card offering the balance transfer offer is Pentagon Federal's Platinum card.  I used this as a gas charge card because it offers a 5% rebate on gas purchases.  I pay it in full each month and never pay any interest on this credit card.  The default interest rate on this card is 13.99%, which quite high compared to my regular credit cards which are at 6.00% and 7.99% and don't have any balances on them either.

The balance I'm interested in transferring is my home equity loan.  At a little over $24,000, it is a lot of money!  We structured the loan aggressively, paying a little over $1000 per month.  We pay 5.65% interest on this loan, which means this month we'll pay $119 in interest.

As I begin to consider the math, there is a lot to consider:

1. Balance Transfer Fees:  Pentagon Federal charges a balance transfer fee of 2.5%, with a minimum fee of $10 and a maximum fee of $100.  Balance transfer fees are one reason that I don't usually consider balance transfers.  However, with the $100 maximum fee, it seems that would pay for itself within two months.  So I keep doing math.

2. Credit Utilization:  Moving this balance from the home equity loan to the credit card would effectively max out this credit card.  This will temporarily decrease my credit scores.  We don't plan to make any big purchases in the next 24 months, so I decide this is OK with me.

3. The Default Interest Rate:  If I somehow manage to mess something up, and fail to pay on time one month, this $24,000 in debt is now at 13.99% interest.  That would be disastrous and exactly the opposite of what I'm trying to accomplish here.  How could I prevent this from happening?  Most banks have some provision for making automatic payments.  I don't usually keep much money in my Pentagon Federal regular bank account, but I could move some of my emergency funds to that account and set it up so that it will automatically pay the minimum payment if I fail to make a payment during a billing cycle.  This seems like it would cover me for the possibility that I could somehow fail to make a payment and wreck this good deal.

4. Payment Application:  If I transfer a balance, I'm not going to be paying off my entire balance on this card every month.  I'm going to start accruing interest, including interest on my gas purchases upon which I'm I'm not currently paying interest.  The transferred balance will be at the 2.99% promotional rate, but the new gas purchases will be at the default 13.99% rate.  The representative couldn't exactly tell me how payments would be applied, but she said that "most" of my payment would be applied to the balance at the lower interest rate.  Standard industry procedure is to pay off the balance with the lower rate first, then pay off the balance with the higher rate, so I'm going to assume that is what Pentagon Federal will do as well.  There are two ways I could proceed: a) In order to maximize this deal, I'll have to stop charging my gas to this card and pass up the 5% rebate, or b) I can factor the 13.99% interest on the gas purchases into my calculations.  This isn't a huge problem, but it is one more factor to consider.

5. Interest Deduction:  We are currently able to deduct the interest on our home equity loan on our federal income taxes. However, because my husband is deployed this year, we will be in a very low tax bracket (probably 10%). The interest on this loan is about $800 for the rest of this year, which means approximately $80 in interest deductions lost.  Next year the interest will only be about $651, but we're likely to be in a higher tax bracket (probably 15%), so the interest deduction lost would be about $98.  There's about $100 worth of interest in the third year, for another $15 or so in lost deduction, for a total estimated lost deduction of $193.

Here's what I'm looking at:  I make amortization tables for my current loan, and the balance transferred at 2.99%.  In my current loan, I will pay a total of $1404 in interest.  At the transferred rate, I will pay a total of $737 in interest.  Even if I add the $100 fee to transfer the balance and $193 in income tax deductions lost , that is a savings of $374 in interest over 24 months. 

These calculations assume that I stop using the gas card and just have the transferred balance on this account.  Now I need to factor in the gas/rebate/interest rate factor.  I average about $100 in gas purchases per month, which means I earn about $5 in rebates each month.  Multiply that times 24 months and that is $120 less in rebates, bringing my total savings to $254 for 24 months.

But what if I keep using this as a gas card?  I'm still getting the rebates, but I'm paying 13.99% interest on the accumulating gas balance.  That means $1.65 the first month, then $3.30 the second month, until I finally am paying $32 in interest the 24th month.  When you add up all that interest, it equals $383 in total interest, minus $120 in rebates, for a net of $263 in interest paid on the gas purchases.  Subtracting the $263 in gas interest from my balance transfer savings decreases the total savings to only $111 dollars for the 24 months.  Clearly, continuing using this account as a gas card isn't the best plan.

So, what should I do?  I can transfer the balance, pay the $100 balance transfer fee and lose the interest deduction, and save $254 in interest over two years.  That seems like an obvious choice, but I'm still not convinced.  Plus, I have a nagging feeling that there is some other factor to consider.  What do you think?

GI Bill Updates

The Department of Veteran's Affairs has released the final version of their rules on the Post 9/11 GI Bill that will become effective in August of this year.  Terry Howell of Military.com has done an excellent piece on the key points of the lengthy document:  VA Sheds Light on Post 9/11 GI Bill Rules.  Nearly every question has been answered here.  To keep up with the developments on the new GI Bill, follow Military.com's Military Education Blog.

Quotable: Suze Orman

"People first, then money, then things."

Our Reading is Recommended!

Check out the great places you'll find The Paycheck Chronicles this week:

The Carnival of Pecuniary Delights, hosted by WiseBread, selected 8 Ways to Save at Restaurantsas an Editor's Pick.

The Festival of Frugality, hosted by Ask Mr. Credit Card's Blog, features Five Tricks Retailers Use.

The Money Hacks Carnival, hosted by Greener Pastures, picked Regaining Control of Your Credit Cards.

As usual, there is a world of financial education available on the internet this week.  Some of my favorites include:

Another Carnival of Pecuniary Delights Editor's Pick, 110 Financial Calculators posted at Millionaire Mommy Next Door.  I'm a pretty big geek when it comes to this sort of thing - I love to make hypothetical projections about our finances, and the calculators make all my projections that much easier -  I don't even have to do the math myself.

The Smarter Wallet makes organizing your finances easy with Control Household Debt With 5 Smart Saving Strategies and Budgeting Ideas.  Simple is good, and this post makes it simple.

Sound Money Matters helps families clear out their excess stuff with an article on How to Set Up a Toy and Clothing Exchange.  Perfect for this time of year!

There's lots to learn, so click on over and see what you find.

Answers About the Making Home Affordable Program

The hot topic of conversation lately has been the federal government's Making Home Affordable program:  who qualifies, what it does, and how it works.  In doing my research, I found this fantastic article called Government Making Home Affordable and Loan Modification Program:  Do I Qualify?  Written by Pete from Bible Money Matters, it includes the most comprehensive explanations and links that exist anywhere else on the web.

If you have been wondering if the Making Home Affordable program can help you, this article probably has the answer.  This program may provide a solution for the many homeowners who are in unaffordable mortgage and can't refinance due to low home values, or who need to have their loans modified due to changes in their financial situation.

photo by:  striatic

Pat Tillman Scholarships

The Pat Tillman Foundation, created to "carry forward Pat's legacy by inspiring people to make positive changes in themselves and in the world around them," has announced their two generous "leadership through action" scholarship programs, one for military members and one for dependents of military members.  These scholarships are available to most current and former military groups, including all branches of the services, the National Guard and Reserve, and include veterans.  I think that these scholarships are a little unique in that they offer support for undergraduate, graduate, post-graduate, 2-year, 4-year, public, private, vocational, and trade degrees or certifications - that's pretty much any sort of education you could desire!

The Servicemember Scholarship Application and instructions are located here.

The Dependents of Servicemember Scholarship Application and instructions are located here.

The deadline for applications is May 14th, 2009.

Contest for Military Kids

United Concordia, who administers the Tricare Dental Program, is celebrating the Month of the Military Child with a contest.  For each of the six regions, they are offering 3 prizes for each of 5 age groups,  (That's a total of 90 prizes!)  Each child may only be entered once, and they need to be entered by their parent or guardian.  Click here to reach the information page, or click here to get to the entry form.  Entries may be submitted between now and April 29th.  Good luck!

No Spend Days

Have you heard of "no spend" days?  The concept is simple, to have days where you don't spend any money, and there are two ways that you can implement it.  You can either plan to have no spend days (like every Tuesday, or whatever works for you), or you can let them happen naturally and then celebrate.

In the first variation, you pick a day and just decide not to spend any money.  I envision this as being good for very organized people who can plan their lives, but if you are that organized, then maybe you're still spending the same amount but doing it the day before or the day after your no spend day.  Anyone who has tried that, I'd love to hear what you think.

The second variation seems like it would work better for me.  If I realized that I've got a day without any scheduled expenses (grocery shopping, needing gas, dentist's co-pays), then I can make it a goal to keep the rest of the day spend free as well.  I have noticed that these days seems to present themselves pretty regularly.  They are usually days where I don't leave my house!  Maybe I should set a goal for myself to have a certain number of no spend days each month.

Another similar idea is to have months where you don't buy anything that isn't a need (again, food, gas, tuition.)  By deferring wants to the next month, you often discover that you don't really want that this so much, or you forget about it, or you can't get it anymore.

If you are looking for creative ways to help yourself spend less money, a no spend day challenge might work for you.  Let me know if you try it, and how it goes.

Free and Inexpensive Things to Do In Hampton Roads

I'm in Virginia Beach, Virginia, today, for SpouseBUZZ Live Hampton Roads.  At the Fleet & Family Support Center table, I picked up this great little brochure called "Free and Inexpensive Things to Do in Hampton Roads."  I thought that I would include the list here, but it is a lot longer than I expected when I picked up the brochure.  There are sections for Museums, MWR, Virginia Beach City Recreation Centers, City Parks & Recreations Departments, Parks, Historic Houses, Beaches, Miscellaneous, and other places of interest.  If you are in the Hampton Roads area, either living, visiting, or TDY, I suggest you stop by the FFSC and pick up this jam-packed brochure.  You'll keep your free time full of neat activities, and your wallet will stay full, too.

Quotable: Barack Obama

"Money is not the only answer, but it makes a difference. "

Five Tricks Retailers Use

Every time that you make a purchase, you are working within the retail system:  they offer a product that you want, you check out the price, and you decide whether you want to purchase the product at that price.  Sometimes you can negotiate the price, like on a car or other large purchase.  However, there are tricks that certain merchants will use to make it harder to figure out the actual price, or come to a sensible agreement on a price.  If you know the tricks, you will be able to make better decisions and wiser purchases.

So, what are these tricks?

1. Bait and Switch:  There are a number of variations on this maneuver.  Usually it involved advertising a product at a great price, but either being out-of-stock on the item or having only a very few.  Once you are in the store, the sales people can then upsell you to a more expensive purchase.

2. Limited Offer/One Day Only/Last One:  These tactics are becoming commonplace in American retailing.   These offers benefit the retailer because you don't have time to comparison shop before the offer is gone.

3. Low Monthly Payments:  In this scenario, the salesperson concentrates on the amount of the monthly payment instead of the price of the object.  Often you will be deflected if you ask the sales price.   Persistence will pay off in this situation.

4. Individual prices for the parts:  This happens with cameras, cell phones, all sorts of things.  Want a charger for that?  Only $19.99!  Be sure to find out what is and isn't included before agreeing to a purchase.  Sometimes they are things that you wouldn't even think of - I recently purchased a new printer, and had to go back to buy a cord to hook it up to the computer.  Silly me, I just figured that it would have a cord in the box!

5. Silly negotiation tactics:  There are a variety of these, including the famous "let me talk to my manager" ploy, where the sales person goes off to confer with his or her boss.  This wastes your time and gets you emotionally involved in the purchase.  Other variations include keeping you in the store or showroom after closing time, which makes you feel obligated to make a purchase, or adding up the total incorrectly in hopes that you'll agree to a higher number. 

There are an infinite number of variations on these ways that stores and salespeople can manipulate us into spending now and spending more.  Of course, most stores and sales people are honest and not trying to be deceiving.  It does seem, however, that these strategies are becoming more mainstream.  If you know them and remain alert, you'll be able to make good shopping choices.

Ten Ways to Shop Safely Online

Shopping online can be convenient and help you find great prices on exactly the item you're hoping to buy.  However, shopping online can also allow your personal information to be spread places that you didn't plan it to go.  These ten tips can help make sure your identity and information remains safe:

photo by:  Army.mil

1. Keep your computer's anti-virus, anti-virus and firewall software up to date.  Use pop-up blockers to make shopping easier and also protect you from fraudulent sites that look like they are part of the legitimate site you are shopping.

2. Stick with familiar sellers.  If using a company you don't know, check for the Better Business Bureau OnLine or TRUSTe logo. Check online ratings companies such as Epinions or Bizrate to hear about other customers' experiences.  Look for a street address and working telephone number.  If using an auction site, check the sellers feedback rating.

3. Use a complicated password.  Think up some way to remember them or keep them listed somewhere safe and away from your computer.   Use a variety of numbers and letters, including both lower case and capitals.

4. Check policies and terms carefully before purchasing.  Look especially for shipping and handling fees and return fees and procedures.

5. When giving out personal information, look for the "https" or "shttp" at the beginning of the website address.  The "s" means secure.  You can also look for the closed lock or unbroken key symbol at the bottom of your page.  (The site probably won't go to secure until the ordering page, so don't be worried if it is a regular http address while you are shopping.)  Don't send payment information through email as it is not secure.

6. Be aware that personal information is collected every time you fill out a form online.  If a site looks sketchy, don't do business with them.  Never enter personal information in a pop-up window or screen.

7. Pay carefully.  Under federal law, credit cards allow you to dispute payment if you don't receive what you've ordered, however, they also share your credit card details with the merchant.  Services such as PayPay and Revolution Money keep your personal payment information private, but they offer less ability to dispute payments if something is wrong with the order.  Debit cards and checks offer the least protection.  Many sites try to retain your credit card information for future purchases - think carefully about whether this is something you want to do.  Some credit card companies offer "virtual" credit card numbers, which are one time use numbers that are linked to your real credit card number.

8. Keep a printed copy of your order, and hold on to it until after you are sure that everything is OK with the purchase.

9. Don't open unsolicited email.  Delete it without opening.  Do not purchase anything through an unsolicited email.

10. Keep an eye on your bank and credit card statements.  Dispute unknown or unauthorized transactions immediately.

Online shopping can be convenient, cost-effective and fun.  By making sure to hit all these points while you shop, you can avoid any problems that could make it a problem.