Outrageous Overdraft Fees

If you've been reading for a while, you have probably noticed that I'm a huge fan of Navy Federal Credit Union, USAA, and Pentagon Federal Credit Union.  They have always provided good service without any crazy fees and I appreciate it.

Perhaps living in this world of outstanding banking organizations has made me lose a little bit of touch with reality, because I was truly astonished when I read this article today:  Banks Can Manipulate Your Transactions, Then Charge You 1750% Overdraft Fees.  When I first read the title, I though to myself, "What?  That is crazy.  What type of whacko, small bank account is pulling this sort of scam on people?"  After I read the piece, I was even more astonished.  These are big banks, and they seem to think that this is a legitimate business practice.

You certainly don't have to use one of the three banks that I prefer, but be sure to shop around and do your research.  There are plenty of fine credit unions, and a few fine banks, that won't use deceptive practices to steal your money from you.

(And set up overdraft protection - it should be free, and it provides good peace of mind.)

Old Navy 50% Coupon Today

This may be the strangest promotion I've seen lately, but I'm willing to work with it.  Old Navy is doing a Thanksgiving weekend promotion called Gobblepalooza, with its very own website and a variety of sales and discounts next Thursday, Friday and Saturday.  There is also some sort of tie-in with the Rock Band video game.

Anyway, the Gobblepalooza website offers you the opportunity to create your own imaginary band.  If you go to the website today, make a band (it is only one step, not difficult) and print the band logo (still not hard, but two steps (for me), you can take the band logo to an Old Navy store and get 50% off a single item.  If you are planning to do some Old Navy shopping anyway, this is a great way to save some money on your purchase. 

Quotable: Eli Broad

"There is no substitute for knowledge. To this day, I read three newspapers a day. It is impossible to read a paper without being exposed to ideas. And ideas.. more than money.. are the real currency for success."

Income Tax Info on the MSRRA

Well, my previous post on the Military Spouse Residency Relief Act has generated a lot of comments.  I love it!  Obviously, there are many questions about what this Act is going to mean once it is fully interpreted and the individual states change their laws and practices.

Today, I'm going to talk about the income tax aspect of the Act.  This is the part that has interested me the most.  We've usually kept our cars in my husband's name (to make Virginia happy) and I've always kept my Florida driver's license and voter registration.  This was only a problem one time, when I wanted to take some college classes in Virginia, but it was a long time ago and those issues have been resolved by previous legislation.  However, paying taxes in multiple states is annoying and time consuming!  Any change that makes tax time easier is a good change in my book.

While this act was being written and passed, there was a lot of discussion about whether it meant that military spouses would be able to pay income taxes to their permanent residence state instead of the state in which they lived or worked.  Now that the dust has settled, it appears that is the case.  Based upon my reading of individual state replies and President Signs Military Spouses Residency Relief Act, published in the Journal of Accountancy, it seems that military spouses will be able to pay state income tax to the state that they claim as their residence.  If that state does not tax income, then the spouse will not be required to pay state income tax.  Whooohoooooo!!!!  What a blessing for military families.

So far, most information of the information available has come from individual emails that have been published at the Military Spouse Residency Relief Act's Facebook page.  I'm not going to cut and paste them all here - you can click on the link to see what people have heard from your individual state.  However, I will compile a list of links once the individual states begin to publish their new directions online.I know that we're all excited to learn more, but it will take time for it to be organized and implemented.  Hang tight and I'm sure it will all come clear in the coming weeks.

Military Finance Network

If you are looking for more information on a variety of military finance issues, you might want to look at the Military Finance Network.  The blog's owner, Patrick, is a veteran who has a keen interest in personal finance.  He's been writing for over two years and while he doesn't post frequently, his articles are smart and helpful.

Are there any other sites that you find useful?  Leave them in the comments so we can all learn from them.

2010 Commissary Scholarships

Every year, the Defense Commissary Agency (DECA) offers a huge scholarship program, awarding at least one scholarship at each location that has a qualifying applicant.

The 2010 program has opened and applications can be obtained at your local commissary, through the link at the DECA website, or more directly at the scholarship website.  Eligibility requirements include:

1. Unmarried, children under the age of 23.


2. Dependent of active duty, reserve/guard and retired military, plus survivors of active duty or retired members.


3. Enrolled in DEERS and have current dependent ID card.


4. Enrolled in a full-time undergraduate program.


5. Community college students must be enrolled in a program that transfers to a 4 year school.


6. Minimum GPA of 3.0 (out of 4.0).


7. Not be receiving a full scholarship or attending a military academy or military academy prep school.

This is a great opportunity to help pay for college.  More details can be found at the scholarship website.  Applications require an essay and must be received by the commissary by February 17, 2010, so don't procrastinate!

What? Credit Card Questions

If you have a credit card, you've probably gotten a letter or email notice informing you of changes to your credit card account.  I've gotten one for each of my credit cards.  They both said that my current interest rate would remain the same but the formula was changing to a variable rate instead of a fixed rate.  I knew that I needed to look into this more, but it kept slipping further down on the to-do list.  Then my friend mentioned that one of his cards was changing his interest rate from the single digits to the high 20 percents.  Yowzee!  That got me really interested.  Here's what I found out:

It seems that the Credit Card Accountability, Responsibility and Disclosure Act of 2009 has a provision that governs how banks and credit unions can change the interest rates on cards.  Previously, a card issuer could change the interest rate on a fixed rate card by giving the borrower proper advance notice.  Under the new law, a fixed rate is a permanent fixed rate - it can't be changed.  A variable rate, which is structured to be tied to an outside rate, like the prime rate, can and will fluctuate as the markets change.

Most of the major banks and credit unions are saying that they felt forced into this change by the provisions of the Credit Card act.  I can see the point that banks can not be tied to offering the current (historically low) rates forever.  At some point, the banks' cost of lending will rise and they will need to raise credit card rates accordingly.

On the other hand, it seems like some banks are using this opportunity to reset their customers' interest rates excessively high.  If you find yourself in this situation, you have a few choices:  transfer your balance to a lower-rate card, pay off your balance, or live with the change.  There are pros and cons to each option.  Obviously, the best choice is to pay off your balance.  Be sure your card doesn't charge a fee for not carrying a balance.  If you decide to transfer the balance, be sure that it has completed the transfer process before you consider closing the old card.  You may want to keep the old account open if it is one of your oldest accounts and you are trying to keep your credit score super-high, such as right before you buy a house.

I hope that this explains why the credit card issuers are changing the way that they calculate rates.  Let me know if you have any other questions and I'll find out the answers!

Christmas is Coming: Do You Know Where Your Money Is?

If you celebrate Christmas, you know that December is an expensive month.  A few years ago, I decided that we needed a separate budget for December.  I was amazed at how much money we spend.  Here is a list of the items that I include in our budget:

(I've put them in a loose chronological order)

1. Cards and postage:  Military people tend to send lots of cards.  Gets expensive fast!


2. House decorations.


3. Gingerbread house party, a family tradition.


4. Nutcracker ballet, also a family tradition.  Cheap tickets can be found if you look early and are flexible.
   


5. Christmas party at our house - food and drink.  We've skipped this the last few years and I miss it, but I don't really feel like having a big party when my husband isn't here.
6. Teacher gifts.


7. Tree, and decorations if we need anything new.  I guess this could be free if you had an artificial tree and never needed anything new for your tree.


8. Gifts!  Plus wrapping.


9. Babysitters for other Christmas parties, and possibly for shopping if the kiddos are little.


10. Special meals, like Christmas eve dinner, Christmas breakfast, and Christmas dinner.  That stuff really adds up fast!


11. Travel, including gas, food, possibly hotels, airfare, and pet sitting costs.

In some ways, my family has been doing it the most expensive way possible:  we stay home through Christmas day, hosting all the big events so that my kids can have Christmas at home, then we hit the road the day after Christmas.  That tradition has been a little altered these last few, busy years, and it costs a lot less to not have all the stuff at your house.  But I love having people come to my house!

If you are a super-organized person, you've been putting aside a little money each month to pay for all this Christmas madness.  For the rest of us, there is still time.  Make a list of your expenses, then figure out how you can shave a little bit of money off of each category.  This might be the right time to cash in your change jar, trade in your credit card rewards points, or offer to work a few extra hours (if you get overtime!)   The most important part is making sure that you don't charge it all and figure it out in January - that is not a fun feeling!

I was inspired to write this post after reading How To Set Your Christmas Budget by Craig at Christian PF.  This article only deals with presents, and that's why I shared my overall list.  Happy budgeting makes for happy holidays!

Quotable: David Bach

"Financial education needs to become a part of our national curriculum and scoring systems so that it’s not just the rich kids that learn about money.. it’s all of us."

Appreciation Days at Old Navy

Old Navy is once again honoring the military by offering a 30% discount (in stores only) from November 12th to 15th.  The ad is pretty simple and states "Be sure to bring your valid U.S. Military ID to show us when you check out," and also, "Offer valid for all eligible active, retired, and reserve US military personnel and family members.  Offer valid at Old Navy stores in the US only.  Not valid at oldnavy.com."  I guess we'll find out if it is off all prices or if it is only on regularly priced merchandise.  I'm going to my local Old Navy today to check out some possible holiday shopping, and I'll let you know what I find out.

Veteran's Day Offers

Don't forget to enjoy these great Veteran's Day offers today!

Many national and local businesses are offering specials for Veteran's Day.  Here is the list I've found so far:

Applebee's Restaurant is offering a free meal, from a limited menu, for vets on November 11th.  Their webpage lists the required documentation:  a military ID, an LES, a membership card from a Veterans' organization, a photograph of you in uniform, actually wearing a uniform, a copy of your DD214, or a copy of a citation or commendation.  It's nice that they list those so clearly.  It appears that they are offering the free meal all day.

Pizzaria Uno is offering a free entree or individual pizza, with purchase of the same, to all veterans and active duty military members.

Outback Steakhouse is offering a Free Blooming Onion appetizer and beverage (type not specified) on Wednesday.

Free Doughnut at Krispy Kreme on Wednesday 11/11!  mmm, doughnuts...

In the Midwest, Hy-Vee stores with in-store dining are offering a free breakfast from 7-11 on Wednesday.

While not a national chain, Masala Wok, of Northern Virginia and various Texas locations, is also reported to be offering free meals to vets on Veterans' Day.  I'd call the individual location first but if you are nearby anyway, it might be a good way to try a new place.

Every year, Golden Corral does an offer for Veteran's Day that includes a free meal for all military members or veterans.  The 9th Annual Military Appreciation Monday is being held on Monday, November 16th, from 5 p.m. to 9 p.m. and includes a free meal for all veterans, retirees, active duty military members, and members of the National Guard or Reserves.  In addition, individual stores are supporting various veterans' groups through raffles and other fundraising efforts.

Military Spouse Residency Relief Act

Good news on the homefront!  The Military Spouse Residency Relief Act was passed by Congress last week and is awaiting the President's signature.

Here is the body of the press release:

Washington, DC –Tuesday, November 3, 2009. A comprehensive military family legislation, the Military Spouses Residency Relief Act (S 475 and HR 1182), which will legally recognize military spouses by providing them the option to claim the same state of domicile as their active duty spouse, passed through the House and Senate with strong bipartisan support, and is now being brought before the President to become a law.

The bill was introduced by Congressman John Carter (R-TX), who represents Fort Hood, the largest military installation in the country. “This is fantastic news for our service families worldwide,” says Carter, who has been pushing the legislation for the last three years.

Senators Richard Burr (R-NC) and Dianne Feinstein (D-CA) introduced the companion bill into the Senate, which passed unanimously in August. The legislation will amend the Servicemember’s Civil Relief Act (SCRA) of 1940 allowing military spouses to share a home state with their spouse, the service member.

Currently, military spouses experience impediments in voting and property ownership as well as deterrents in employment and education. The bill offers fair treatment of the military spouse and improves the quality of life for military families by allowing the stability of a single state of domicile to call home.

Over 8,000 military spouses, friends and family members united to support the Military Spouses Residency Relief Act on Facebook. http://www.facebook.com/pages/Military-Spouses-Residency-Relief-Act/51457362877 They shared their individual stories as they contacted Congressional representatives to ask for support. Initially, Army Spouse, Rebecca Poynter and Navy Spouse, Joanna Williamson, approached Congressman Carter with their request to petition. “It has been a grass roots effort by thousands of spouses across the country, who have campaigned to get this passed, by telling their stories,” explains Poynter.

“The support from Military Officers Association of America (MOAA) and the Veterans Service Organizations who testified in our support is greatly appreciated,” said Williamson, “and together we claim this victory for all military families.”

This is exciting news for military spouses and will undoubtedly save us all time and possibly even money.

More info on how the MSRRA impacts your income taxes.

Back to the top

2010 Pay Charts Approved

The 2010 Defense Authorization Act has been signed into law, which means that the 2010 pay charts are definite!  This is a good sized raise for military members, especially considering the economic situation in the civilian world.

Used Auto Parts Can Save

Let me start by saying that I'm sure that there are lots of issues around used auto parts.  I don't claim to know much of anything about them.  However, the other day, the window in my car made a funny noise as it went down, and then it wouldn't go back up.  I took it to my favorite shop and unfortunately discovered that my favorite mechanic was GONE!  Ack.  However, I left the car there anyway and figured that I'd use this as an opportunity to discover if I liked these new people.

The verdict?  A blown motor, to the tune of like $450 with labor.  Given that I'm only nursing this car along until we PCS in June, that makes me very cranky.  On a whim, I called a (relatively) nearby auto part recycling/junkyard place to see how much that part would cost if I purchased it used.  $125.  And they could install it for $75.  Hmmm, a $250 savings.  It would take me an hour to get there, plus I'd have to sit and wait, plus an hour back, but I thought that was worth it.

I called the shop and told them that I was going to come pick up the car.  I said that I could get the part at Brandywine and then just get it installed there.  The shop staff countered that I could have the part mailed, then they would install it.  They even offered to discount my labor.  Sounded good to me.  I was ordering the part when the shop called back again, and said that they'd magically found a new part at about the same price as the used part I was ordering.  Outstanding!

Granted, their labor is a little more expensive than the junkyard's labor, but it is saving me at least three hours of driving (with the window stuck down) and sitting.  I will be saving at least $150 off the originally quoted price.

If you need a non-essential part on a car, it seems that used parts would be worth the look, especially if the car is older and you don't anticipate having it for a very long time.  Just looking for the used part could pay off by making your auto repair shop get creative.

Using Tools Makes Couponing Easy

I used to be an avid coupon clipper, and spend a ridiculous amount of time shopping at different grocery stores, matching up sales with double or triple coupons so that I rarely spent much on food.  It was great for our budget, but it wasn't great for our lives.

As our family's schedule has evolved, I've been couponing less and spending more.  It isn't a great situation, but it works.  Then, yesterday, I saw a grocery store advertisement offering triple coupons up to 99 cents this week.  My inner coupon queen started getting a little antsy and I decided that I'd take a little time, sift through the exploding drawer of coupons, and see if I could make any good deals.

On a hunch, I googled "Shoppers Food Triple coupon" and after a few false leads, came upon a site called Redemption Unlimited.  It lists all sorts of deals and coupon savings, including a huge list of coupons that can be used with the Shoppers triple coupon deal.  They list the date of the coupon flyer that the coupons were published in, which works out great for me since I've been doing nothing but shoving the flyers in the drawer for months now.  A few minutes of organizing the coupons, then going down the list, locating the coupons, and I was out the door.  It was way faster than any other way I've ever done it before!

I had such a successful trip at Super Fresh that I then did the same thing for Walgreens.  I happened to remember that a site called The Thrifty Mama listed the best of the Walgreens ads each week, so I went over to that site to check it out.  I was able to match up a few coupons with sales and register rewards and make a great deal.

If you like to coupon but want to extend your savings, or you are just learning about couponing, or you need to shave time off your couponing, you will definitely want to use the internet tools available.  I'm amazed at what I found, and how much time I saved.

Quotable: Ayn Rand

“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.”

Umbrella Insurance 101

Umbrella insurance - what's that?  I can't imagine insuring an umbrella!  Oh, that's not it.  So what is umbrella insurance?

Umbrella insurance is a liability insurance that covers you for liability in excess of the coverage that you already have as part of your existing insurance policies (auto, homeowners, renters or boat insurance.)  If you are found responsible for an accident that has property damage or bodily injury, the judgments against you can accumulate pretty quickly.  And that is just for legitimate claims - what if you are involved in a situation where someone makes a fraudulent claim against you?  One bad accident could wipe out all your savings, assets, and even result in a judgment against your future earnings.

Umbrella liability insurance acts as a broad coverage that is on top of your existing liability coverages (hence the umbrella name.)  Umbrella coverage does not kick in until you have exhausted the limits of your existing coverage, and because of that most umbrella policies require that you maintain certain level of liability coverage on the underlying policies.  The good news is, liability insurance is really inexpensive!  Our family's policy is about $274 a year ($23 a month).

I think that umbrella insurance is part of any good insurance plan, but there are some times when it seems particularly necessary.  If you own a rental property, there are any number of ways that claims could be made against you.  Some property management companies actually require umbrella insurance of their property owners.  If you have any particularly dangerous stuff on your property, such as a trampoline or a swimming pool, your need for excess liability insurance is higher.

USAA's June Walbert does a great video on umbrella insurance.  It doesn't embed, but you can find it here.  I recommend umbrella insurance to my friends and family and you should seriously consider if it is something for you.

Saving on Vacation

Laura at Five Cent Nickel has written a great piece called How to Save Money on Vacations.  While military families often spend their vacations "going home" or PCSing, many of these tips still apply.  As usual, the comments are also helpful.  I haven't found a way to make traveling as inexpensive as staying at home, but there are certainly lots of ways to lower the costs.

Top Three Tips

I just finished a radio interview on the F.R.A.Z.L.E.D. Military Wives Christian Network's Blog Talk Radio Show - wow that is a lot of words.  While I was preparing for the interview, I jotted down the three things that I wanted to talk about during the show.  I didn't exactly get to them all, but I'll share them with you now:

1. Know where you are - sit down and write down every debt, every bill, and every bit of income that you have.  Just making the list is incredibly helpful.  Take some time to look at it, and then begin your planning from that list.


2. Keep it simple.  Automate your bills whenever possible.  Don't have a crazy number of bank accounts all over town.  Limit the number of accounts that you need to manage.  Simple is good!


3. Figure out what is important to your family, and manage your money to fit your values.  Make room in your budget for the things that you want, and save elsewhere.

This is just a short list that I jotted down before the show, but I think it is a pretty neat summary of the most basic personal finance concepts.

The entire radio show can be heard at the FRAZLED MWCN website.  Thank you to Shannon and Sara for letting me visit their show!

Veteran's Day Offers

A few national Veterans' Day promotions will be coming up in the next few weeks.  So you can plan ahead, here is the list so far:

Every year, Golden Corral does an offer for Veteran's Day that includes a free meal for all military members or veterans.  The 9th Annual Military Appreciation Monday is being held on Monday, November 16th, from 5 p.m. to 9 p.m. and includes a free meal for all veterans, retirees, active duty military members, and members of the National Guard or Reserves.  In addition, individual stores are supporting various veterans' groups through raffles and other fundraising efforts.

Applebee's Restaurant is offering a free meal, from a limited menu, for vets on November 11th.  Their webpage lists the required documentation:  a military ID, an LES, a membership card from a Veterans' organization, a photograph of you in uniform, actually wearing a uniform, a copy of your DD214, or a copy of a citation or commendation.  It's nice that they list those so clearly.  It appears that they are offering the free meal all day.

McCormick & Schmick Restaurants are also offering free meals to veterans, on Sunday, November 8th.  Most locations are participating and you can find the list here.  There is a special menu being offered, reservations are suggested, and parties are limited to 6 people.  I've never actually been to a McCormick & Schmick, mostly because I am cheap, but this might be a nice way to try them without spending the full amount of dinner.

Update 11/7:  Pizzaria Uno is offering a free entree or individual pizza, with purchase of the same, to all veterans and active duty military members.

While not a national chain, Masala Wok, of Northern Virginia and various Texas locations, is also reported to be offering free meals to vets on Veterans' Day.  I'd call the individual location first but if you are nearby anyway, it might be a good way to try a new place.

With all these deals, you could really splurge and eat out a lot during Veteran's Day week, without spending quite as much as you usually would.