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.)

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.

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!

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!

26 October Military Report

Financial news from the Military.com 26 October 2009 Military Report:

Armed Forces Offering Cyber Security Tips - The Department of Defense's seven cyber-security tips to help you stay safe online.

Beware of Dangerous Downloads - Persons using peer-to-peer programs such as LimeWire, BitTorrent, and the infamous Napster may get more than they bargained for.

Board of Veterans Appeals Expanded - VA announced the addition of four new Veterans Law Judges to the Board of Veterans' Appeals (BVA), which will enable the board to increase the number of cases being decided.

Deal of the Week: Up to 87% off - Limited time offer for US Military. Microsoft Office Standard 2007 for only $49.99.

Eat Free at Applebee's - Military veterans and active-duty servicemembers will be able to eat for free at any Applebee's across the U.S. on Veterans Day, Wed., Nov. 11, 2009.

Is SGLI enough? - SGLI may not be enough to protect your family. USAA Military Protection Plus life insurance can help provide the coverage you need. Contact us today at usaa.com/MPP.

Liberty University Offers Tuition Discounts to Military - In today's economy, you need a degree to complement your military training. At Liberty University Online, it's easy for service members, veterans, and military spouses to get an in-demand education.

Military Career Expo Coming to Jacksonville, NC on Oct. 29 - Meet with top companies such as Northrop Grumman, MAC Tools, Lockheed Martin, ManTech and more.

Respite Child Care Available - This month YMCA respite child care expanded to licensed child care programs at YMCAs in all states that wish to participate in the program.

Stop Loss Compensation Pay - Current and former servicemembers who were involuntarily held on active duty as a direct result of stop loss, may be eligible for a Retroactive Stop Loss Special Pay compensation.

You can find the complete Military Report here.

Free Snack at Barnes & Noble

Do you have a Barnes & Noble nearby?  What a great way to spend an autumn afternoon, curled up in a bookstore with a warm drink and a snack.  Especially if that snack is FREE!

Today, October 24, 2009, Barnes & Noble is offering a free kids' size hot chocolate and cookie with a printable online coupon.  Yum, yum..it is almost enough to make me wish for a rainy afternoon.

SaveAndInvest.org's Military Page

You might want to have a look over at SaveAndInvest.org - they've got a great Military page that links to a variety of articles and sites of interest to military members and their families.  I guess it has been there all along but it looks new to me even though I've spent time at their website before.

SaveAndInvest.org is a free service of the Financial Industry Regulatory Authority (FINRA) and provides all sorts of information to help protect consumers from fraud and provide quality information that helps people manage their money with confidence.  Their military page includes news updates, program explanations and timely tips so that you can make great money decisions.

Avoiding the Impulse Buy

This is a huge issue for me:  I go into the store to buy a particular item, and I come out with a bunch of other stuff that I justified as necessary.  That is why I recommend this article:  Overcome Impulse Buying   Not rocket science, but a good reminder and I loved the Wikipedia definition and the links to other articles.

Staying On Track Can Be Hard To Do

Dealing with your finances in a responsible manner is a lifelong journey.  You don't get to quit paying attention just because you've got things under control; if you do that, you will soon find that you're back in trouble again.

That's why I like this article by NCN at No Credit Needed:  How to Stay on Track.  He acknowledges up front that this isn't always fun but that it is necessary, then breaks down the steps and discussed the ways that you might be deviating from your plans.  Even people like me, who think about personal finance all day, need to be reminded to remain focused.  (Ok, so I think about personal finance and html all day long.)  It is so easy to get distracted!

This article is a good way to renew your enthusiasm.

23 Action Items

Don't you hate those articles that tell you to switch to generic toilet paper and stop buying overpriced coffees?  I see the purpose, because a lot of people don't realize that those things can save them money and also because it helps build a mindset of being thoughtful with your money.  But seriously, I'm looking for real, substantial steps to help chip away at debt.

Fortunately, DR at Dough Roller has put together a truly useful list of steps that you can take to get your debt under control.  I've used several of these steps myself, particularly step #1:  Put your debts on paper.  I can't emphasize that enough.  I don't know if it is the realization of seeing it all written down that motivates you to get moving, but it seems to help a lot.

DR includes lots of good action items in this timeless piece on debt reduction.  If you are looking for some new inspiration or a fresh perspective, this might be a good place to start.

Internet Interest

These two articles from The Paycheck Chronicles were featured in Blog Carnivals last week:

At the Money Hacks Carnival, Patrick of Cash Money Life selected Pump Up the Savings.

At the Festival of Frugality, Green Panda of Green Panda Treehouse highlighted Watching Carefully at the Warehouse Clubs.

Both carnivals feature tons of great articles on personal financial issues, and they're neatly packages so that you don't have to go wandering around the internet to find them.

Financial Fails

For some reason, this post just cracks me up.  Carrie at Carrie...on the Cheap writes about Personal Financial Fails That Drive Me Crazy. 

There are several aspects to this post.  First, she is absolutely right about these being dumb things to do.  Second, she is also right that they are common situations, and situations that most of us have been guilty of at one time or another in our lives.  Third, it seems that people who makes these mistakes can't see that they are mistakes.

Another thing thing that I thought was that I've managed to eliminate all these fails from my life, and while my financial life is definitely better for it, I haven't suddenly become uber-rich or stopped needing to count my pennies.  What I think, however, is that this list definitely points people in the right direction and it is part of creating a general mindset of making smart money decisions.  Small steps like these join together to make a larger change over time.

Anyway, I liked it.

"I Just Need..."

How many times have you said those words, followed by something that could, possibly, be categorized as more stuff.  I know I have.  Today, I came across a nice article by mnmlist.com:  Buying is not the solution.  It is short but a good reminder that more stuff isn't the solution to problems.  More stuff isn't going to make me smarter, more organized, a better parent, or prettier...it is just going to fill my house and empty my wallet.

Breaking Up is Expensive to Do

While getting into my email this morning, a great article popped up:  Don't Get Caught Carrying Your Relationship's Financial Baggage.  Being part of a couple often involves financial decisions, and you need to be sure that your decisions are right for both of you.  This article certainly doesn't hit every aspect of relationship finances (it would have to be a book!) but it does point out the importance of planning and communication.

Carnival of Pecuniary Delights, Edition 21

Aha, it is my turn to host the Carnival of Pecuniary Delights and I get the lucky 21st edition.  Originated by my friend Penelope at Pecuniarities, the Carnival features some of the best personal finance reading available.  Due to a lack of sleep and some less-than-sound thought, I decided to dissect the carnival name and group the articles that way. We'll see if it works!

But first, the Editor's Pick. I've only chosen one because I think this is such a fantastic post and it deserves star billing. The Happy Rock from The Happy Rock presents A New Stage In My Financial Journey. I don't want to give away too much (I like that the title is enigmatic) but I think he's on to something here and he's given me a new goal.

All definitions from Merriam-Webster.com:

• Main Entry: car·ni·val
• Pronunciation: ˈkär-nə-vəl\
• Function:  noun
• Etymology:  Italian carnevale, alteration of earlier carnelevare, literally, removal of meat, from carne flesh (from Latin carn-, caro) + levare to remove, from Latin, to raise
• Date: 1549

1. a season or festival of merrymaking before Lent
2. a: an instance of merrymaking, feasting, or masquerading, b: an instance of riotous excess <a carnival of violence>
3. a: a traveling enterprise offering amusements, b: an organized program of entertainment or exhibition: festival <a winter carnival>

Carnivals can be expensive - it seems like the money just falls right out of your pockets. Unfortunately, real life can seem that way, too. J. Money from Budgets Are Sexy helps us get a handle on the lost money with his post Find Out Where Your Spending Leaks Are, and Fix Them.

Once upon a time, when I was a child, my father was working at home one night and I asked him what the project was about. He told me that they were mapping out the world so that they could put up satellites to cover most of the earth's surface, and someday everyone would be able to carry a phone around in their pocket instead of using phones at home. I was pretty sure that he had enjoyed the 70s a little too much - phones in pockets? Crazy. Well, 20 some years later, Wojciech Kulicki from Fiscal Fizzle presents The Days of Land Lines are Numbered. I guess that my dad wasn't so crazy after all.

Whether you love him or hate him, Dave Ramsey has certainly had a huge impact on the world of personal finance education. jim from Bargaineering.com (plus his commenters) offer an excellent overview and discussion at Dave Ramsey’s Total Money Makeover Review.

I'm including this one in the carnival section because it is starting to seem like the entire investment world is just one big celebration of excess.  Fortunately, Natalie MacLellan from Before You Invest presents Choosing a registered financial adviser - one step in fraud prevention.  Hopefully her tips will help you to chose wisely.

Finding just the right rewards credit card can make you feel like you've hit the jackpot, or at least fill you with a happy feeling. david from Credit Card Offers IQ presents 10 Super Cool Credit Card Offers (You’ve Never Heard Of).

• Main Entry: >pe·cu·ni·ary
• Pronunciation:\pi-ˈkyü-nē-ˌer-ē\
• Function: adjective
• Etymology: Latin pecuniarius, from pecunia money
• Date: 1502

1. consisting of or measured in money
2. of or relating to money

Online bank accounts can be useful tools for many reasons. CPF from Christian Finances presents Where to open a free online bank account?

No one wants to talk to a collection agency, but talking is probably your best strategy. Fortunately, Ray from Financial Highway presents Dealing with Collection Agencies- Tips on Handling Collection Agencies.

I'm not much into investing outside my retirement accounts, so this subject is pretty foreign to me. The Digerati Life from The Digerati Life presents Best Online Stock Brokers For Cheap Stock Trades and helps a newbie like me to understand a little more.

As the worlds financial markets change, some people are finding that their access to affordable, prime credit is shrinking. As a result, the sub-prime credit market is reaching out to more people. There are plenty of things to know about sub-prime credit. The Smarter Wallet from The Smarter Wallet presents Credit Crisis and Subprime Card Traps.

Ever wondered what this "dollar cost averaging" stuff is? Learn from Investing Toolkit, who writes Dollar Cost Averaging Basics. Not a glitzy and exciting post, but certainly important, Banker Saver from Banker, Saver presents Living With Low Interest Rates and Poor Investment Performance. 

• Main Entry: de·light
• Pronunciation: \di-ˈlīt, dē-\
• Function: noun
• Date: 13th century

1. a high degree of gratification: joy; also: extreme satisfaction
2. something that gives great pleasure <her performance was a delight>
3. archaic: the power of affording pleasure

A great reminder from Baker at Man Vs. Debt: What Money Can't Buy: Share Your Priceless Moments. What a lovely combination of lighthearted-fun and a serious prompting to look around and enjoy the gifts that life has given.

The comments fmd included with this submission sum it up better than anything I can say: "It is easy to make a budget. It is harder to make a budget that works. Read this article and get some help." He's right, so click on over to My Findependence Day to read Making a Budget that Works.

A different sort of delight: a good credit score! If you are striving to improve your score, DR from DoughRoller presents 11 Simple Ways to Improve Your Credit Score Today I found it interesting and I hope you find it helpful.

First time homebuyers are a huge part of the current upsurge in sales. PT Money from Prime Time Money presents $8000 First-Time Home Buyer Tax Credit Details. Don't forget that you must close by November 30th in order to be eligible for the credit - time is running out!

I keep a separate line item in my budget for pet supplies, and sometimes the numbers make me wonder about pet expenses. Even so, I was amazed by the analysis that Darwin from Darwin's Finance presents in How Much is that Puppy? The Most Detailed Dog Cost Analysis You’ve Ever Seen. Wowsers - that is a lot of money.

Some people may find this odd, but I delight in checking out new personal finance software. Chance from Personal Finance Software Reviews presents New Personal Finance Software Review - Weekly Envelope. (Just so you aren't confused, Weekly Envelope is the name of the software being reviewed.)

For many people, a small business or work at home job sounds positively delightful. Check out this article where Buck Weber from The Buck List presents Nine Ways to Find a Job or Work at Home.

I was so impressed with the quality of submissions in this week's Carnival of Pecuniary Delights. Thank you for joining me and be sure to check out next week's edition hosted by The Canadian Finance Blog.  Submit your articles here for consideration.

Old but still Good

Last week, the Carnival of Pecuniary Delights, hosted by Counting My Pennies, featured The Paycheck Chronicles post:   5 Reasons Not Saving Money is Saving Me Money.  It is a useful read even if you read it before, because the ideas are timeless and it is easy to slip into the "gotta run around and save money" mindset.  I've spent a few weeks shopping for school supplies and have definitely been guilty of it!

.

Perspective is a Good Thing

While doing a random internet search, I found this article that really touched me.  It is a poignant reminder of how lucky most of us truly are:  She's on top of the world with $400 a week.  Just the day before, I read an article about how "rich" most of the world is - ice for drinks, a rodent free place to sleep, a chance of medical care - compared to a few hundred years ago.

While there are families who are truly struggling, I ha've been trying to reframe the troubles in my life in terms of the blessings they represent:  Oh, my gosh, I have so much laundry to do!  What a blessing to have so many clothes.  The kids won't stop fighting!  Thank goodness they are all healthy.  It is so hot in this house!  How wonderful to have a secure home.  (Plus, I could choose to turn on the air conditioning if I wanted to.)

It isn't an easy exercise and I don't know how much longer I can keep it up, but it certainly is interesting and very educational.

The Many Values in Food

You know I struggle with my time...those 24 hours I get each day don't seem to go very far!  I guess that why I was so struck by Credit Loan's post:  Thoughts on a Low Grocery Bill.  CL's thoughts on food are very close to mine, and I found his way of stating his opinion to be quite lovely.  His conclusion about personal values sums it up beautifully:  you do what is more important to you, not only about food but about all the other parts of your life, as well.  A good read!