Does Online and Mobile Banking Excite Or Scare You?

The following post is by MPFJ staff writer, Grayson Bell. Grayson, who runs the finance blog Debt Roundup, is a fan of personal finance, brewing beer, and working on cars.

More than two-thirds of the American public have basic banking privileges.

This means they have access to a bank or credit union to store their hard-earned cash. Yet with a majority of the population having bank accounts, why are many not utilizing online/mobile banking? According to the Pew Research Center, just 61 percent of internet users bank online, while only 35 percent of cell phone users bank using their phones. What is it about these services that scare us? This begs the question: Does mobile banking excite or scare you?

 

The Pros of Online/Mobile Banking

There are many advantages to online banking. Most are based around use and convenience for the account holder. There are also some advantages for banks to use such a service, mainly surrounding cost reduction. Here are some basic pros to using online banking.

• Quick Access – You can easily check your balance or see recent transactions with a few clicks of your mouse or swipe of your finger. With our account information available when we need it, we can be more informed. You can even transfer money to other people or accounts with ease.
• Better Rates – When you bank strictly online, you will most likely get a better rate on your checking or savings account. You can even get better loan rates. Online only banks can provide their customers with higher rates because they have less overhead.
• Convenience – You can now deposit a check without even driving to the bank. If you have a smartphone with a camera, then you might have the ability to deposit your check right from your couch. Most banks have mobile apps for this feature.

These pros translate to both online and mobile banking. As long as you have an internet connection or mobile data, you can be connected with your money at any time.

 

The Cons of Online/Mobile Banking

I am the type of person who doesn’t see too many issues with online banking. That said, I realize there is one big con for online/mobile banking and that is undoubtedly security. With massive data breaches from sites like Target and other retailers, we have to be very careful about our financial data.

When we get too careless, we tend to make mistakes. When people ask me about how I do my banking and I tell them I haven’t stepped foot in a bank in a long time, they look at me funny. I don’t have much need for my traditional bank. They hold my money for me and it is FDIC insured, so why worry about it? After they stopped looking at me in a funny manner, I tell them about how I try to keep my information secure. My main defense is keeping my passwords regularly updated and hard to crack. Sometimes they are so hard to crack that I forget them.

The other way I protect myself is by having money in different banks with different usernames and passwords. Yes, it requires more time for me to manage my money, but it is less likely I will be the victim of total loss because my money is spread out. When I use mobile banking, I make sure to never have the mobile app remember my username. I also have a security pin to unlock my phone. These are just small steps I can take to protect myself and make it harder to hackers or criminals to get access to my financial data.

 

Are You Excited or Scared by Online/Mobile Banking?

This question is more geared toward those who haven’t jumped into online/mobile banking. What is stopping you? Is it the lack of knowledge on how to do basic bank transactions online or via your phone? Does the advancement of technology scare you or make you feel intimidated?

As more and more of our financial lives move into the online space, we have to be cognizant about our security. It is extremely hard to get back on your feet from fraud. Since fraud just continues to rise each and every year, we have to be prepared. That doesn’t mean we should shy away from advancement or be slow to adopt new changes. Online and mobile banking are here to stay and taking the time to understand the security and how to protect your information is the key to enjoy the full benefits.

How about you all? Do you fully utilize online and/or mobile banking? Have you ever been a little scared of fully utilizing all of the tools due to security purposes?

Share your experiences by commenting below! 

***Photo courtesy of http://www.flickr.com/photos/84335369@N00/6791147275/

Strategies To Help You Choose Health Insurance When Taking A New Job

The following post is by MPFJ staff writer, Melissa Batai.  Melissa is a freelance writer who covers topics ranging from personal finance to business to organics to food.  She blogs at Mom’s Plans where she shares her family’s journey to healthier living and paying down debt.

My husband recently took a new job in Arizona.  We’re from Illinois, so the move itself was a big deal.  After the headache of packing up and moving halfway across the country, I discovered we had several other obstacles.

Namely, I couldn’t believe how complicated picking a new health insurance plan was.  We were faced with three choices–a health savings account (HSA), an EPO (similar to an HMO), and a PPO.  After we made that decision, we then had to choose between four insurance companies to meet our needs.  Geesh!  I don’t remember it being this complicated when I started my full-time job 14 years ago.

If you, too, are faced with choosing a health insurance policy from a new employee, consider using some of these strategies that made our decision making process a little bit easier:

 

What Providers Are Included?

If you’re new job doesn’t involve moving from your current location, you may want to give preference to the plan that lets you keep your current provider, assuming you like your doctor and are comfortable with the services offered.

We had to get a new doctor anyway since we’re new to the area, so this had very little weight in our decision.

 

What Are Your Own Biases?

My husband and I were trying to decide between the EPO and PPO plan.  Initially I was drawn to the PPO plan because I had heard bad things over the years about HMOs.  I had concerns because the EPO wouldn’t cover providers who were out of network, and I had heard that HMOs can sometimes not be a wise choice if critical injuries or illnesses occur.  Sometimes it can be difficult to get the treatment needed.

I entered the decision making process with a strong bias while my husband entered it with an open mind.  In retrospect, the decision making process would have been easier if I’d been a bit more open-minded.

 

Talk to Others Who’ve Used the Insurance

I called Human Resources for more information about the insurance plans.  The woman I talked to had been using the EPO for the past 10 years and had had no problems.  She highly recommended it.

When I called an independent insurance agent for homeowner’s insurance, she mentioned that her husband also worked where my husband’s got his new job.  I took the time to ask her what insurance plan she and her husband had chosen.  They’ve used the EPO for the past 12 years and have had no problems.  The insurance agent had even had a serious heart problem and a pacemaker installed, and the EPO covered her entire expense.  She paid nothing out of pocket.

Talking to others to get their opinion about the insurance coverage can help you choose which plan you’d like and make you feel more comfortable with the decision you make.

 

How Much Does the Plan Cost?

Although it can be tedious, take the time to do a side-by-side comparison on the policies you’re deciding between.  When I did this exercise, I was shocked!

The PPO would cost us over $6,500 per year in premiums alone!  Then, there was a $1,000 in-network and $2,500 out-of-network deductible to meet per year.

The EPO, on the other hand, would only cost us $2,200 per year in premiums.  There were no yearly deductibles to meet.

Both plans had the same co-pays for doctor’s appointments, prescriptions, and other expenses.

 

Do You Have any Special Needs?

You’ll want to consider your own unique issues.  For instance, if you and your spouse want to start a family, you may want to consider a plan that has the best maternity coverage.  If you are having trouble conceiving, you may want to choose the plan that has the most generous plan for fertility specialists.

Consider your own unique medical issues and look for the plan that best suits your needs.

In our case, my oldest son and I are dealing with food intolerances and see a specialist to treat the issues.  The EPO plan wouldn’t cover these expenses at all.  The PPO plan would cover them at 50%.  Still, even though the EPO wouldn’t cover the expenses, choosing an EPO and paying out of pocket for these expenses would still cost less than going with the PPO due to the high premium expense of the PPO.

 

Are There Any Tax Implications?

The plan you choose may have tax implications.  For instance, if you choose a health savings account (HSA), you reap several tax advantages.  The money to fund your account is taken out of pre-tax dollars.  The interest on the account accumulates tax deferred.  Finally, you don’t have to pay taxes when you withdraw the money for qualified health expenses.

However, when you withdraw the money for qualified health expenses, you need to put the withdrawal amount as “other income” on your tax return.  Before choosing a HSA, check the tax implications with your accountant.

 

Look Into More Ways to Save

Regardless of what plan you choose, you can always opt for a flexible spending account (FSA) or a health savings account (HSA) to help you pay qualifying out-of-pocket expenses.  (To qualify for a HSA you must have a yearly deductible of $1,200 or more.)  There are benefits and drawbacks to both.

The FSA works with any insurance plan, and the money is taken out from pre-tax dollars.  However, whatever money that you do not use by the end of the year is taken by the government.

The HSA, like the FSA, is funded through pre-tax dollars.  On the other hand, unlike the FSA, the balance continues to roll over year after year.  However, if you don’t have a high enough deductible, you will not be able to use an HSA.

 

Consider Other Alternatives

Unfortunately, not all employer based health insurance plans are created equal.  A friend of mine chose not to go with his employer’s insurance because the premiums are $10,000 a year, and the deductible is $5,000 per year!  He and his family simply could not afford to pay up to $15,000 a year out of pocket for health care.

In this situation, some people have looked at Christian-based health savings plans.  These plans are not health insurance per se.  Instead, members pay a standard amount every month (usually $350 to $500 depending on your family’s size and health), which goes to pay other members’ health care needs.  When you have health care needs, other members send their monthly payment to you for your expenses.  Those who join this kind of plan are exempted from the Obamacare penalty.

 

You Can Always Switch

While choosing a health insurance plan is a big decision, keep in mind you can always switch plans during the open enrollment period.  If you have one plan that you don’t care for, you can try out another one for a year.

 

Our Decision

Ultimately, we couldn’t ignore the high price difference between the two plans.  We decided to go with the EPO to save nearly $5,000 a year on premiums and deductibles.

The decision was much easier after I talked to two people who had no complaints about the plan, including one who had faced serious health issues.

How about you all? What other factors go into your decision when choosing a health insurance plan with a new employer?

Share your experiences by commenting below! 

***Photo courtesy of https://www.flickr.com/photos/68751915@N05/6793821977/

How to Choose the Right Financial Planner

The following post is by Tanya Oliver. Enjoy! 

There are a lot of areas in life where a DIY approach can save you money, but investing isn’t one of them. Unless you’re extremely financially skilled, you’re going to need professional advice to make the right investment decisions. And that means hiring a financial planner.

But where can you find the right financial planner for you? What questions should you ask to determine that a particular planner has the experience and integrity you’re looking for? Should you choose a planner who charges an annual fee, an hourly rate or a commission? The answers will vary somewhat depending on your financial position.

 

Where to Look for a Financial Planner

Often, the best way to find a financial planner who’s right for you and your financial place in life is to ask around. Your friends and co-workers, especially those who are in the same financial boat as you, may be able to give you a good referral to a financial planner who can help you get from where you are now to where you want to be in 20, 30 or 40 years. Whether you’re single or have kids, just starting out in the work force or several years into your career, choose a friend who’s in the same place in life and ask him or her to recommend a financial planner.

Alternatively, you could go online to look for financial advisors. Some good places to look are with the National Association of Personal Financial Advisors. Look for an advisor who is willing to meet you on your level and stick with you over the years.

 

Is Your Financial Advisor Reputable?

When it comes to searching for a financial advisor, don’t be afraid to shop around. Advisors know that you’re probably vetting several candidates, so they won’t be offended. Shopping around offers advantages — it allows you to find the most affordable financial planner, for a start. It also gives you the chance to find a financial planner with the qualifications and experience you’re looking for.

To avoid getting taken in by an amateur financial planner, look for a professional with the letters “CFP” after his or her name. CFP stands for Certified Financial Planner, and in order to get this credential, a planner needs to have passed a certification exam from the Certified Financial Planner Board of Standards. CFPs must maintain their certification with continuing education on ethics and other matters of personal finance.

While certification is important, it’s not all there is to it. Some important questions to ask a potential financial advisor include:

• Do you have staff committed to watching the markets?
• How do you apply current academic thought on the science of investing to your financial planning services?
• How do you ensure due diligence?

Run a background check on your financial advisor to make sure he or she hasn’t been convicted of a crime. Go here to learn if a CFP has ever been disciplined. Ask for and check references from current clients who are in the same financial position as you.

 

Should You Choose a Fiduciary or Suitability Advisor?

There are two basic compliance standards that financial planners adhere to — the fiduciary standard and the suitability standard. Fiduciary advisors have a commitment to giving you advice that’s in your best interests, and many people feel more comfortable with such a planner, even though they can cost more.

A suitability planner has a legal obligation to give you advice that’s suitable to you and your situation, even though it might not be your best option. However, don’t take that to mean that a suitability planner will definitely lead you astray. He or she wants to retain your business as much as any other professional.

 

Understanding Financial Advisory Fees

There are three basic pay structures for financial advisory services. You’ll pay a commission, pay an annual fee or pay by the hour. The one that’s best for you will depend on your financial position.

If you’re on the lower end of the income scale, or just want to get a few questions answered on a one-time basis, an advisor who charges by the hour may be for you. On the other hand, if you want ongoing financial planning and advice, you’ll probably want to go with a fee-based planner who will take a small cut of your assets — usually around one percent — in return for managing all of them. If you have a lot of assets, however, you may want to work with an advisor who is paid on commission.

Without professional financial advice, you could end up making money mistakes that could devastate your financial potential. Finding the right financial planner for you may take some legwork, but in the end, it’s well worth it.

5 Ways To Save On College Expenses

The following is a post by MPFJ staff writer, Derek Sall. Derek is the owner of the blog, LifeAndMyFinances.com, where he teaches people how to get out of debt, save money, and become wealthy.

As college prices continue to rise, students really need to focus on keeping costs down so that they don’t owe back monster loan amounts when they graduate. The fewer loans the student can get away with, the better they typically fair in life.

So what are some quality ways that students can save on their college expenses?

 

1) Live at Home

Many college students balk at the thought of living at home. According to them, “College is about independence and learning how to live on your own.” Well, somewhat, yes. But, if you talk to many grads that are struggling to pay back their student loans, their typical advice is to “live with your parents as long as you can.”

Living at home is not all bad. Most of the days you will be on the college campus anyway, and if you want the “college experience” you can always visit your friends that are living on campus. By avoiding the dorm life, you can save upwards of $10,000 per year! Over the course of four years, that’s $40,000! That’s a pretty huge savings if you ask me. Well worth the sacrifice.

 

2) Do Without the Car

The next largest expense when you’re at school is that car you’re driving around. You have to insure it, put gas in it, and pay for all the repairs that are inevitable. Often times, even if you own the car outright, you can spend $400 or more per month.

If you can get by with a bicycle, do it. Bum rides from your friends (you can throw them a couple bucks here and there) and stop taking senseless trips off campus. The savings will be quite noticeable.

 

3) Don’t Buy the Textbooks

Many colleges are still requiring you to buy the textbooks for your classes, but often times the professors cover everything that’s necessary anyway, which means that you could easily do without it. If you are required to answer questions at the end of each chapter, find the book in the campus library and make a free copy of those pages. Either that, or just borrow the book from your friend. By avoiding these purchases, you can save $500 or more per semester.

 

4) Keep Applying for those Scholarships

Quite a few students apply for scholarships before their freshman year, but then don’t bother to search out scholarships after that. There are so many funds that are designated for sophomores, juniors, and seniors that you should make a point to continue applying! A thousand dollars here and there can really help out a ton in the grand scheme of things. You’ll be glad that you got some of these scholarships when it comes time to pay for your student loans.

 

5) Learn to Buy Cheap Food

Believe it or not, pizza is really not all that cheap. If you are spending $10 on a pizza and devouring it in one or two sittings, then you are still spending $5-10 per meal! Instead of ordering pizza from the local restaurant, buy some cheap foods from the grocery stores – items like bread, tuna, eggs, pasta, rice, canned beans and corn, etc. Also, keep your eyes peeled for functions around campus that offer free food. After all, you can’t beat free.

How about you all? What other ways can you think of to save on college expenses?

Share your experiences by commenting below! 

***Photo courtesy of https://www.flickr.com/photos/smemon/5188351708/in/

Everything You Need To Know To Get A Peer To Peer Loan

The following is a post by MPFJ staff writer, Toi Williams, who is a professional personal finance blogger of Fine Tuned Finances. She has backgrounds in personal finance, sales, and real estate.

Peer to peer lending is an alternate funding method that is becoming increasingly popular across the United States.

This lending method is funded by individual investors willing to provide money for loans in return for an attractive interest rate on the money they invest in the loans. Peer to peer loans may be a viable alternative if you are unable to obtain a loan from a traditional bank or lender. Once obtained, the funds can be used for anything the borrower desires, including paying off high interest debt, purchasing a vehicle, or starting a business.

Peer to peer loans are often cheaper for borrowers than traditional loans. These loans allow borrowers to bypass the banks, which often have higher fees, higher interest rates, and lower loan limits for their loans. Investors earn a higher return on their money than they would using many of the saving options available at traditional banks, supplying borrowers with a large pool of investors willing to fund their loans. This keeps interest rates reasonable and payments low for borrowers.

 

Peer To Peer Lending Companies

Prosper.com

Prosper.com was one of the first players in the peer to peer lending industry. All of the loans made through the company are fixed rate loans with terms lasting either three or five years. Prosper’s website advertises a 6.73 percent starting APR for the best borrowers, meaning the borrowers with the highest credit scores. According to the website of the Better Business Bureau, Prosper has recently received an A+ rating from the rating agency.

 

LendingClub.com

LendingClub.com was founded shortly after Prosper.com. The company has helped thousands of borrowers secure millions of dollars in loans from private investors over the years. During Lending Club’s first year of operation, it facilitated more than $3.5 million in loans. That figure has since grown to $3.4 billion annually. LendingClub offers personal loan amounts up to $35,000 and interest rates as low as 6.78 percent on loans with terms of three or five years.

 

FundingCircle.com

FundingCircle.com is another popular peer to peer lending business. The company specializes in small business loans to finance expansions, inventory purchases, marketing launches, and the hiring of new employees. The company offers loans up to $500,000 at interest rates of little more than 9 percent for borrowers with excellent credit. The term of the loan can be three, four, or five years.

 

Obtaining A Peer To Peer Loan

Securing a peer to peer loan is easier than you may think. The first step in the application process is providing your personal information to the peer to peer lending company so a credit check can be performed. Most companies offering peer to peer loans require applicants to have a credit score of at least 600. The minimum credit score for both Lending Club and Prosper is 640. Funding Circle uses a complicated calculation process designed to determine the company’s ability to repay the requested loan.

Before applying for a peer to peer loan, make sure that your credit score is as high as possible so you will get the best rate for your loan. Obtain your credit report and go over it with a fine toothed comb for any errors that could be bringing down your credit score. You can obtain a free copy of your credit report from each of the three major credit bureaus annually from www.annualcreditreport.com.

Correcting errors on your credit report can increase your credit score by a significant amount. These errors could include someone else’s information combined with your own, missed payment entries for payments you know were made on time, or accounts in your name that you did not open. If any errors are found, you should alert the credit bureau that issued the report immediately to get the process started for removing that information from your credit report.

You will also be asked to disclose your debt to income ratio so the underwriters can determine your ability to repay the loan you are requesting, so it is important to reduce your debt to income ratio as much as you can before applying for the loan. After your personal and information has been reviewed, your request will be assigned a score based on your perceived credit-worthiness, essentially a credit score for the website. This score is typically displayed in the form of a letter grade, with AA or A1 ratings equaling the best ratings down to E or G1 ratings for riskier borrowers. The rating you receive determines the interest rate that you will be charged for the loan and the interest rate that the lenders will receive for funding your loan.

In order to obtain the loan, you must provide the peer to peer lending company with a valid bank account number. The requested funds will be deposited into this bank account and the payments for the loan will be automatically withdrawn from this account on the payment due date each month. Your loan may be completely funded by a single lender or divided into smaller portions by multiple lenders. Regardless of the number of people that fund your loan, you will make a single payment to the peer to peer lending company that facilitated the loan. That payment is then divided into the accounts of the investors that funded your loan.

 

Final Tips

In order to ensure that the peer to peer loan process goes as smoothly as possible, fill out the requested information completely and honestly. The information you provide will be scrutinized and any potential errors can hold up the process or result in your application being rejected. Depending on the funding process, it could take a couple days or a couple weeks for your loan to be entirely funded. Make sure that you read all of the terms and conditions associated with the loan so you will know how much you will pay in fees and interest as well as when the monthly payments will be taken out of your bank account.

How about you all? Have you obtained a peer to peer loan from one of these companies?

Share your experiences by commenting below! 

***Photo courtesy of http://pixabay.com/en/hand-finger-thumb-high-positive-105725/

5 Tips For Switching To A New Job Industry

The following post is by MPFJ staff writer, Catherine Alford. Cat is a freelance personal finance writer who blogs at www.BudgetBlonde.com. 

Once upon a time, I was an historian for the National Park Service. I knew very, very tiny details about the American Civil War and spent 40 hours a week tromping through the battlefields in Richmond, Virginia telling the public about the American past. I got chiggers on my legs, got harassed by old guys who thought female rangers were “hot” and received a lot of professional satisfaction from making history interesting and fun to a wide variety of people.

Despite the fact that I loved my job and later moved on to teaching at the college level, today I’m doing something completely different. As many of you know, now I spend countless hours of my week writing about finance.

I have no formal background in finance. I never even took a business class in college (note from Jacob – I got a finance degree in college, but I didn’t learn anything in it about personal finance, so you didn’t miss much! haha). However, my life experiences and ability to learn things quickly has allowed me to embrace this new path and really enjoy it along the way.

If you would have told me a few years ago that I’d be self employed and spending my Saturday morning researching Apple’s performance last quarter, I would have looked at you and laughed.

It’s amazing the twists and turns our life can take, especially for someone who is such a planner like me (who had her whole life figured out complete with a life-long career in the history field!)

Here is my advice for anyone who wants to actively switch to a new job industry:

 

1. Seek New Connections

Your network in your current job might not be able to carry you over to your new field, but you can use it as a place to start. Maybe one of your co-workers’ parents or spouses works in the field you want to be in, and you can ask for their contact information. You can also search on LinkedIn for people in your area who you might be able to take out to coffee or dinner to ask them questions about their work.

 

2. Self-Teach Important Advancements

If you want to make a move to marketing, for example, but you have no formal background, it’s important that you take the steps to get there. It will be hard for a boss to hire someone with no background over someone who has a marketing degree, so you’ll have to use all your resources and energy to really leverage yourself. Take some extra classes, work for free in order to learn more about the industry, and in general get as engrossed as possible in the new field so you can speak about it knowledgeably.

 

3. Gear Your Resume

Chances are, you can “gear” your resume to your new field, even though you’ve never worked in it before. By “gear” I mean you can take some of your current experiences, even volunteer experiences, and show how it makes you qualified for your next job. For example, if I was applying for a job at a finance company, I would point to all of my blog writing experience and not necessarily to my history degrees.

 

4. Exude Confidence In Your Interview

We’re pretty fond of saying “Fake it ‘till you make it” in my house. It’s said in jest, of course, but much of what my husband and I do requires a lot of confidence. With his career in medicine, medical students are definitely on the bottom of the totem pole and are often grilled with questions. An air of confidence or being confident enough to admit when you don’t know something is actually a good thing. Even if I don’t know how to do something in the world of finance or I’m not sure what a word means, I’m confident at least that I’m resourceful enough to figure it out. When someone questions my qualifications, I always point to my ability to find the answers – that’s one thing that my career as an historian taught me.

 

5. Work Harder than Everyone Else

When you switch to a new field without the background that other people likely have, it’s up to you to work harder than everyone else. You should get to work earlier and leave later than them. Show your boss that he or she was right to hire you. When you don’t know something, spend extra time looking it up or asking a trusted co-worker for advice. With enough hard work, you can definitely “catch up” or even speed past your co-workers who have years more experience than you do.

Ultimately, my own career switch was gradual and happened over a period of a few years, but if I were to make the switch all at once I would definitely utilize the tips above.

How about you all? Have you ever wanted to switch career fields or have you ever been able to do so successfully?

Share your experiences by commenting below! 

***Photo courtesy of https://www.flickr.com/photos/bionicteaching/10885834946/in/

Advice Needed On Health Insurance Coverage Gap Until Sept. 1st

Howdy everyone!

Among the many financial changes I am going through right now with finishing up graduate school this week, I learned today that my student health insurance ended (without notifying me) on August 14th.

Since I will likely not be starting a full time job until October, I needed to explore my options for maintaining health insurance (the top priority in the account hierarchy). Unfortunately, the health insurance plan I had does not have a COBRA extension coverage option.

Therefore, I had to scramble today to find a new individual insurance plan on my own. I went through the HealthCare.gov site and enrolled for a Gold level plan ($260 premium per month for individual plan), but the trouble is that the coverage doesn’t start until September 1st. 

Does anyone know if it is possible to obtain immediate health care coverage with Healthcare.gov, or am I simply out of luck and need to be careful for the next 10 days? 🙂

***Photo courtesy of https://www.flickr.com/photos/marinadelcastell/10273621876/in/

How To Save Big Money On Your Groceries

The following is a post by MPFJ staff writer, Derek Sall. Derek is the owner of the blog, LifeAndMyFinances.com, where he teaches people how to get out of debt, save money, and become wealthy.

When you think about saving money from month to month, you might initially think about your fuel bill or your cable bill, but these are probably not the areas where you can save the most money.

More often than not, the grocery bill is largely out of whack, and hundreds of dollars can be saved just by making a few tweaks to your food spending habits.

 

1) Avoid the “high class” grocery stores and discover the discount grocery stores

I used to do my grocery shopping at “high class” grocery stores that offered free popcorn and free coffee during the delightful shopping experience. While the experience was often a delight, I was certainly paying extra for these amenities.

When I started taking a closer look at my budget and saw all the money I was spending on my groceries, I figured there was a better way to buy my food. Low and behold, I was right! Instead of heading to the high class grocery store, I discovered places like Aldi and Save-A-Lot where I didn’t need coupons, but was finding groceries for an even cheaper price than Walmart! Also, since these stores are quite small, grocery shopping is unbelievably fast. This a huge perk for me and anyone else that doesn’t like to spend an hour in the grocery store. Instead, I spend 10 minutes. It certainly is a delight!

 

2) Buy in Bulk

If you are consistently purchasing the same types of non-perishable goods each week (like granola bars and cereal for instance), then you might want to consider buying these items in bulk. When you purchase three or more of a product at a time, start looking into purchasing these products from a large bulk store and run a price comparison to your per-item purchases. If the savings are severe (which is often the case), then you might want to buy 4-6 months’ worth at a time.

 

3) Pay Attention to Sales Patterns

The corporate headquarters are often in charge of scheduling the sales on various grocery products. Incidentally, a pattern typically forms around these sales – often 7-8 weeks at a time. When you see a sale on a product that you typically purchase, take note and keep your eye out for when that product goes on sale again. By nailing down the “sale cycle” you can be sure not to pay full price for your products ever again!

 

4) Eliminate Waste

The average American wastes about 25% of all the food that they purchase. So, if they spend $4,000 a year on groceries, that means they are typically throwing away $1,000 worth of food each year! By avoiding waste, you could save an immediate 25% on your grocery bill.

This savings starts out with a list. Plan out your meals each week and only purchase what is necessary for those meals. In the event of constant left-overs, designate one of the nights as “left-over night” and eat only what is already pre-made and in the fridge. With these methods, your fridge and pantries should stay fairly empty and will allow you to eliminate almost all of your waste.

 

5) Avoid All Restaurants

There are quite a few people that make life so busy for themselves that they start heading to restaurants instead of making a meal themselves. If you’re paying $12 for a meal at a sit-down restaurant, this can quickly blow your grocery budget. Even if you are driving through McDonald’s and spending just $5, you are still spending too much. There are quite a few simple, healthy meals that will only cost you $0.50 per meal or less if you put them together yourself. Heck, I just grilled up 9 pieces of fresh chicken that I bought for $11. This one cooking session will last me the entire week!

How about you all? Are you going to make any changes to save more money on groceries?

Share your experiences by commenting below! 

***Photo courtesy of https://www.flickr.com/photos/jlarnos/8200880966/in/

3 Changes to Your Finances When You Get Married

The following post is by MPFJ staff writer, Sally, who is the blogger behind TinyApartmentDesign.com, a blog about design, living well, and simple, tiny spaces.

I’ve been married for over a month and it still feels surreal. I’ll be honest; I still don’t know what to think about marriage. I spent my whole life terrified of marriage, never excited about the way long-time married couples treated each other, watching how awful going through a divorce can be, and generally unconvinced of the positive aspects of marriage. Plus, I consider myself self-sufficient and don’t need to rely on anyone’s income but my own. And yet, here I am, excited to be married to my best friend and partner. Now that we have officially combined forces, I expect some of our finances to change and some to remain the same.

 

New Goals

One of the biggest expenses we ever incurred together was our wedding. I am so glad we are done with spending money on the wedding, but we also now need to focus on saving for our future. My husband has no savings or retirement funds. We have opened a few in his name, but never contributed to it. I was previously saving 26% of my income automatically, but had put that on hold since February to pay for the wedding. Our goal is to start my husband on a weekly savings plan, and to get me back into saving at least 20% of my income. We’ve always been a team, and now that we are in our 30s, we want to make sure we are always moving forward financially. It’s not easy because spending is easy and can easily take up all of your disposable income, but we want to see out total savings grow quickly in the next 5 years.

 

New Tax Arrangements

We will be filing as a married couple for part of 2014, and we will also hopefully have some tax credits with the purchase of our first place. If you haven’t seen it yet, this Khan Academy video is a great way to figure out if you’re going to pay more taxes as a married couple. The other benefit to increasing our savings in pre-tax accounts will be the subsequent decrease in our taxable income. Someday, I’d like to be like Mitt Romney: $0 in wages, but plenty of money earned from investments and businesses. Since wages are punished by our draconian tax laws that confirm the federal government’s belief that the wage earner deserves to be punished, I will be focused on figuring out how to decrease my wages while increasing our income as a couple. Currently, all of our income is earned from either regular wages or self-employment income, so this is an important priority for us.

 

New Accounts

Many married couples will eventually get around to joint accounts, especially checking and credit cards. We’ll continue to put savings in our joint savings account, but our checking and credit cards won’t merge any time soon. We’ve had too much of a history of spending recklessly, and spending without consulting each other. This is something we are excited to work on, but we’re still not in any rush to merge accounts. We’ll continue to share all of our housing and living expenses, and I will continue to handle the actual payment of our bills, setting up online and automatic payments, keeping track of what’s due next and what we would like to buy for our house. Even though I have been the more financially aware member of our household, it’s going to be vital to our success as a couple for both of us to know where stand financially.

How about you all? Did you have any big changes to your finances when you got married?

Share your experiences by commenting below! 

***Image: http://www.freeimages.com/photo/1393177

Don’t Burn Your Bridges When You Leave Your Job

The following is a post by MPFJ staff writer, Kevin Mercadante, who is a professional personal finance blogger, and the owner of his own personal finance blog, OutOfYourRut.com. He has backgrounds in both accounting and the mortgage industry.

What do you do if you are working for an employer that you absolutely detest? Here’s some advice as to what you shouldn’t do: don’t burn your bridges when you leave your job.

That can be a tall order with some employers. You may be on a job where the employer is completely mistreating you, and even degrading your capabilities as a professional. That never means leaving on bad terms – like telling a few people off and trashing the company in your last few days on the job – otherwise it may come back to haunt you later.

 

Keeping a professional profile right up until the last day

How you leave a job says more about you than it does about the company you’re leaving or the people who work there. In the business world, your reputation is your most important quality. How you handle leaving a job – particularly an unsatisfactory one – will speak volumes about you.

You want to make sure that at any job that you’re on that you always maintain a high level of professionalism right up until the very last day that you’re employed there. That will include continuing to perform at a high level, even after you’ve given notice.

 

You never know if you might have to come back some day

As the saying goes, never say never, and that especially applies to returning to old jobs. Though you may be absolutely certain that you are so unhappy on a job that you will never return, you don’t know what the future holds. If the next couple of jobs you’re on are worse than the one you’re on now, your old job could start looking better all the time.

In addition, if your industry goes through a major squeeze, every employer in the field – including the bad ones – will be back in consideration for a new job. That might include the employer you’re working right now, that you’re desperate to leave.

Still another scenario could have an influential friend changing jobs into your soon-to-be former employer, but in a position of rank. If that friend wants to bring you along, it may not happen if you burned your bridges when you left the first time around.

 

You’ll very probably work with the same people in the future

Most career fields – even those that are common across the country – are fairly small at the local level. That means that there’s a better than even chance that you’ll work with one or more people from your current job at some point in the future. Should you leave your current job in a negative way, you could be building future enemies at a new employer when that time comes around.

People don’t always remember how good or bad a past employer might have been, but it always seems that they can quickly recall how a given coworker from that experience behaved. Even if you absolutely cannot stand the company you’re working for, you should be extra careful to make sure that you always leave a positive impression with as many coworkers as possible. Sooner or later you’ll be working with at least some of them in the future. One of them might even end up being your boss.

 

You need positive references

No matter how bad a job is, you’ll need to take at least a few good references away when you leave. In fact, it will be even more important the worse that the experience was. If the company will not speak well of you, you have to be sure that you have a few references who will. This can be coworkers, or even supervisors and managers in cooperating departments who are aware of your performance.

And as bad as your current job may be, if the next job that you’re on turns out to be even worse, the references that you will have from this job will be even more important.
The only time that you should ignore the reference factor is if the overall employment situation was so negative that you fully intend to leave it off your resume. But don’t even be sure that will work either. With all of the databases and snooping agencies available today, an employer can find out where you’ve worked in the past even if you don’t disclose it.

 

Leaving angry won’t fix anything

It’s absolutely true that there are lousy employers out there. They mistreat their employees, show favoritism, foster hostile competition, and seldom reward people for doing a good job. While you might feel particularly drawn toward letting your feelings be known once you give your notice, it probably won’t do any good if you do. Companies are often hell holes precisely because they seem to be completely immune to good advice.

Employers are also quick to declare that certain employees have a bad attitude – especially former employees. If you leave on bad terms you’ll simply justify the claim once your gone. And that won’t fix anything in the company that you’re leaving.

In fact, if you leave on bad terms the employer is more likely to assume that you’re part of the problem, and they’ll be happy to be rid of you. Any criticism you level against the company – no matter how legitimate – is likely to be completely ignored.

It’s much better to leave an employer on good terms, that way the company may solicit constructive criticism from you that might actually improve circumstances for your soon-to-be former coworkers. If they don’t, it’s no longer your problem.

How about you all? Have you ever had a job in the past that was so bad that you felt that you couldn’t leave on cordial terms? How did you handle it? Was there any negative fallout after the fact?

Share your experiences by commenting below! 

***Photo courtesy of https://www.flickr.com/photos/24051087@N08/2281414800/sizes/n/