My Personal Finance Journey

Category Archives for Saving Money & Frugal Living

Saving Money on Your Health Insurance

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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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The following is a guest post. Enjoy!

Saving Money on Your Health Insurance
 
Healthcare is an understandably divisive issue at the moment, with healthcare reform still causing controversy at the government level and the current financial crisis making it more and more difficult for people to afford their policies. One thing people can do regardless of their political affiliations or financial situation is find ways to save on the cost of healthcare, and here we take a look at a few ways to cut costs.
 

Get Expert Advice

 
Firstly, speak to an insurance agent. They understand the market and know what’s available and should be able to find you a policy that matches your needs. They occasionally will have access to certain plans from insurance companies which aren’t freely available, so they could save you money if it’s a good match.
 
They can also discuss add-ons that many people neglect to consider, such as dental or vision cover and seeking out sites who can give you the best information on the different levels of cover such as basic, standard and comprehensive. While these won’t be necessary for everyone, they can be beneficial in the long run and could save you money in the future.
 

Getting the Right Policy for Your Circumstances

 
Choosing the right plan is vital if you’re looking to make substantial savings. The cheaper of the two main policies available in the USA is an HMO (Health Maintenance Organisation) policy, however if you’re looking to use a doctor that’s not in the insurers preferred treatment network, the costs can mount up. If the network provides quality facilities close to your home, then this is the type of plan you should consider, however if they’re not suitable or you’d prefer to see a certain doctor, then it might be worth looking at a PPO (Preferred Provider Organisation) plan.
 
A PPO is a bit more expensive than an HMO, but it can be more cost effective if you insist on visiting an out-of-network facility. Customers who opt for this type of plan are also entitled to open a Health Savings Account, which can be used to save money tax-free to put towards any medical expenses which they may incur. Many people save a substantial amount of money each year using these accounts.
 
The internet is a massive help when trying to source policies, with many sites now offering a comparison service to help compare the benefits and the price of various plans. While it may be tempting to go for the cheapest policy that the comparison engine highlights, it’s important to consider what’s covered and if the policy could end up being more expensive over time.
 

Making the Most of Your Policy

 
Once the policy is in place, it’s worth contacting the treatment providers in your network to get prices for various treatments. Hospitals will often compete on price, and if they are aware that a consumer is shopping around, they may be willing to be more flexible. Having the information on-hand will help save a lot of time and expense in the event you become unwell.
 
The same is true of pharmacies, with many charging different prices for prescription medication. Some will encourage pill-splitting as a way of saving money on prescription costs, and although it’s not applicable to every kind of medication, it’s something worth enquiring about.
 

Check Your Bills

 
After you’ve received treatment at a medical facility, it’s important to check your invoice to ensure you were billed correctly. Human nature means mistakes will be made from time to time, so always double check bills from both the insurance company and the hospital to ensure they are correct.
 
Of course ,the main way to save of medical bills is to stay as fit and healthy as possible by eating well and getting regular exercise. Taking preventative measures will mean fewer visits to the doctor, which in turn reduces the amount of medical bills you receive. If you can get healthy and stay healthy you’ll find you save a small fortune on medical bills every year. 
 

How about you all? What techniques do you use to save money on health insurance other medical-related expenses?

Share your experiences by commenting below!

***Photo courtesy of http://www.public-domain-image.com/cache/science-public-domain-images-pictures/medical-science-public-domain-images-pictures/medical-staff-working_w725_h482.jpg

CarMax’s MaxCare Extended Service Plan Dissected and Other First-Hand Account CarMax Car-Buying Experiences

About a month or so ago, I went along with my girlfriend to help her purchase a car at our local CarMax.

While I could probably spend an entire post talking about the reasons for and against choosing CarMax to purchase a used car, overall, I have to say that the buying experience at CarMax was a rather positive one.

In particular, my girlfriend liked the ‘no-haggle’ pricing structure they have going on there and the fact that their cars are high-quality/not going to be ‘lemons.’ Perhaps the only drawback to buying a car from CarMax is that it is very difficult to find cars below $10,000 there. This is due in part to the fact that their cars are high quality, but in my opinion, also to the fact that because of their dependable reputation, CarMax knows people are going to be willing to pay a slight premium for cars purchased there.

Apart from the CarMax buying experience being overall very positive, there were two things that were mildly “pushed” on us to buy that I thought would be interesting to share with you all (described below):

  • A 9.0% APR interest rate car loan.
  • CarMax’s MaxCare Extended Service Plan for only $1,000.
 

CarMax’s Attempt to Push Car Loan Financing On Us

Because of some prior research I had done on the subject of car buying, I knew that while NEW car dealers were offering very low-interest rate loans in order to sell NEW cars, USED car dealers made a significant amount of money off of selling loans/financing options for used cars.

And, it turned out that the situation with CarMax was no different. My girlfriend was able to secure a loan from Bank of America for a pretty good rate of ~3.8% APR, while CarMax was willing to give her the same loan but at a 9% APR interest rate. Talk about some good mark up here! As you can imagine (since my girlfriend and I are still going out and have not broken up – haha), she ultimately chose the lower interest rate loan from Bank of America.

However, the strategy that the car salesman tried to entice us in to going with the CarMax in-house financing was rather interesting. What had happened was that the letter guaranteeing the loan from Bank of America needed to be confirmed over the phone by CarMax, but they were unable to make the call since the bank was closed for the weekend (and we needed to wait until Monday). When CarMax heard about this, they gave us an OFFER. They wanted us to walk out of the dealership with the car that night by simply using CarMax’s financing. Since CarMax is apparently nothing but our friend, they even were going to give us the option of coming back within 1 week and canceling the loan (if we decided to go with the Bank of America loan) with no fees or interest involved.

To us, this sounded like a whole lot of complication in exchange for simply getting the car 1.5 days earlier. So, we ultimately decided to simply stick with the Bank of America financing and wait until the bank opened on Monday to go back to finish the car purchase.

However, I was quite fascinated with CarMax’s willingness to swap us in and out of their financing with no fees or interest. It made me wonder if 1) are they just being nice? or 2) do they know from experience that X% of people that walk out with their financing won’t take the trouble to come back and change back to financing that they had secured from the bank?

 

CarMax’s Attempt to Push the MaxCare Extended Service Plan On Us

So, even though it took me a couple hundred words to explain what transpired with our refusal to take the CarMax in-house financing option for my girlfriend’s used car purchase, it really wasn’t too big of an issue at all. We simply said, “no,” to the nice salesman, and moved on with the paper(/electronic)work.

However, the CarMax MaxCare Extended Service Plan was pressured on us slightly more aggressively.

As a general rule of thumb, I operate on the belief that insurance and extended service add-ons to purchases (large or small) are generally NOT worth the money and are a better deal for the people selling the plan to you than for you the buyer. So, my girlfriend and I had done our homework on this MaxCare Extended Service Plan pumped by CarMax, and we were convinced that it was unnecessary.

Because we had done our homework about the extended service plan, we figured that when we sat down with the salesman at CarMax, it would be fairly simple to ‘just say no.’ Alas, this was not the case. During my girlfriend’s various initial talks with the salesman and subsequent discussions while we were finalizing the paperwork, I would say that the CarMax Extended Service Plan was mentioned no less than 5 times. By the end of it, I felt like we were almost made to seem like we would be IDIOTS for not taking the plan and that ALMOST EVERYONE who buys a car from CarMax gets the service plan. The salesman even threw in a story about one of his friends that is happily using the extended service plan when his car broke down! It was a nice touch! Was it true? Maybe.

When we finally got to the last screen where he could sign us up for the extended service plan and we still said ‘no,’ he actually asked us WHY we didn’t want to take advantage of such a great deal. In reply, I simply said, “NAME OF SALESMAN, let’s just proceed with the sale of the car,” because I didn’t want to give him the chance to bring up some doubts, regardless of how good his intentions were. And, he respectfully followed our wishes. So, overall, despite knowing that the MaxCare Extended Service Plan was not necessary for us, my girlfriend and I still felt very pressured in to buying it, and she felt rather guilty for not doing so at the end of the episode.

Now, this is not to say that CarMax is evil by any means. As I mentioned above, the overall result was quite positive, and I know it’s just part of the game of buying a car. But, it was interesting since I had never gone through the used car-buying process before.

 

Details of the MaxCare Extended Service Plan from CarMax

During the car buying process at CarMax, the Extended Service plan emerges as a very appealing option. On one hand, the initial cost of the plan is tacked on to the amount you are financing, making it so that you don’t necessarily consider the full cost since you will be paying it off over time. Second, many people coming to CarMax are looking for relief from an unreliable car that they had to make a lot of costly repairs on, so the Extended Service Plan very much catches their eye.

Especially in these slightly elevated pressure buying situations, it’s particularly good to know the facts about what you’re buying in to. So, I wanted to spend a little bit of time in this post discussing what exactly the CarMax MaxCare Extended Service Plan entails, and what it does not!

How Much Does the MaxCare Extended Service Plan Cost? 

At a high level, the CarMax Extended Service Plan is a smaller, specialized insurance policy in a car service plan wrapper. The costs of the service plan are summarized below:

  • You pay $1,000 at the time of purchase of the plan/your new car.
  • Then, each time you need to bring in your car for a repair, you pay a pre-selected deductible, ranging from $100-$500 per visit.
However, the thing that surprised me was that the specific details about the price of the plan and what is and is not covered is somewhat difficult to discern, especially during the car buying process where decisions are being made very quickly.

How the MaxCare Extended Service Plan is Presented and What is and is Not Covered by the Plan

Essentially, what happens is that you are handed over this wonderfully crafted brochure “describing” all of the details of the plan. But, instead of this brochure listing the specific details that I expected such as price of the plan and different deductible levels, etc, it basically seems to be designed to overwhelm the car buyer in to thinking that it covers EVERY POSSIBLE REPAIR THAT COULD EVER HAPPEN WITH THE CAR. This is done by listing out about a thousand or more parts of a car that are covered by the plan, as shown in the picture below:
broch

The catch is that if you read through the listing of parts covered by the plan and then compare it to the back side of the brochure where the plan exclusions are shown, it quickly becomes clear that 90% of the repairs that you will most likely incur on a reliable used car are NOT covered by the service plan (i.e. – they are all listed in the exclusions section).

I’ve highlighted several things not covered by the service plan below:

  • Regular maintenance services described in your car’s manufacturer manual. This includes major 30k and 60k mile services and other major component replacements described in your owner’s manual.
  • Engine spark plugs and ignition wires.
  • Batteries, air conditioner refrigerant, engine coolant, drive belts.
  • Brake pads and shoes.
  • Suspension work, tires, wheels, catalytic converter, manual transmission work.
  • Painting, bumpers, alignment of body parts.
  • Repairs made to meet government emission standards.

I don’t know about you all, but looking at the list above on what is EXCLUDED from the plan pretty much encompasses every single costly repair I’ve ever had on my 2004 Honda Accord in the 8 years I have driven the vehicle.

You can view complete details about what is covered by the plan by clicking here and what is NOT covered in the plan by clicking here.

Conclusions

Because of the large amount of exclusions from the MaxCare Extended Warranty Plan, we ultimately decided that it was not the best move for us. And, by sticking to our guns, we were able to resist the pressure from CarMax to buy the service plan and their higher-interest rate in-house financing. And in the end, my girlfriend walked out of CarMax an altogether satisfied customer and is happy in her new, dependable car.

How about you all? Have you ever purchased a used car? If so, did you ever consider CarMax? 

Did CarMax or the other used car dealer try to pressure you in to obtaining their financing options or their extended warranty/service plans? Do you think these extended service plans are a good deal?

Share your experiences by commenting below!

***Photo courtesy of https://upload.wikimedia.org/wikipedia/commons/thumb/b/bd/CarMax_Logo.svg/1000px-CarMax_Logo.svg.png

Yakezie Blog Swap # 20 Roundup

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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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On Friday of this week (4-May-2012), My Personal Finance Journey participated in the 20th Yakezie Blog Swap (can you believe we’re already on the 20th edition!? Crazy!). In this event, members and challengers of the Yakezie Personal Finance Network paired up and exchanged posts on a common topic. 


This month, the topic selected for us all to write about was as follows relating to wedding spending. According to the Huffington Post, the average wedding cost in 2011 was $27,021. Looking at this statistic, why do you think people spend so much on weddings? Do you think it’s worth the money? How do people afford weddings that cost $27k if the national savings rate is so bad? What are the long-term financial ramifications of an expensive wedding? What tips do you have to help people save money on weddings? 

There were 10 bloggers who participated in the swap this time around. The various posts written are described below:


My Favorite Swapped Post

Emily from Evolving Personal Finance shares first-hand experiences from her wedding planning about why weddings cost so much, how people finance weddings, and also money saving tips on Edward Antrobus. I really liked how she placed on emphasis on the importance of prioritizing what is important to the bride and groom in the wedding in order to maximize value.   

My Swap

Kathleen from Frugal Portland wrote about if a wedding is worth the down payment on a house on My Personal Finance Journey. 


I wrote about why people spend so much on weddings and possible ways to save some money on Frugal Portland.  

The Rest

Nick from Step Away from the Mall writes a fascinating article about his first-hand experiences with inviting 350-400 people to his wedding and how it can easily cost a ton of money on Daily Money Shot. 



Jana from Daily Money Shot wrote about the various ways she saved money on her wedding on Step Away from the Mall. 

Edward Antrobus wrote about why weddings cost so much these days and how he kept the cost of his wedding to $200 on Evolving Personal Finance. 

eemusings from Musings of an Abstract Aucklander shares some thoughts about how she intends to save money on her upcoming wedding on Fiscal Pheonix. 

Melissa from Fiscal Phoenix restores faith in the idea that a 250 person wedding can cost only $6,000 on Musings of an Abstract Aucklander. 

Marissa from Thirty Six Months shares several tips to save money on a wedding on Call Me What You Want Even Cheap. 

Call Me What You Want Even Cheap wrote about how weddings don’t need to cost an arm and a leg on Thirty Six Months. 

How about you all? Why do you think people spend so much money on weddings these days? Is it worth it? What tips do you know of that people have used to save some money?


Share your experiences by commenting below!

    ***Photo courtesy of http://www.public-domain-image.com/cache/people-public-domain-images-pictures/male-men-public-domain-images-pictures/man-reading-and-writing-at-table_w725_h544.jpg

    Is a Wedding Worth the Down Payment on a House?

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    Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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    The following is a guest post by fellow Yakezie participant, Kathleen, from Frugal Portland. It was written as part of a “Yakezie Blog Swap,” an event where each month, participants from the Yakezie Personal Finance and Lifestyle Blogging Network pair up and write on a common topic and then swap posts with their partner. 

    This month, the topic selected for us all to write about was as follows relating to wedding spending. According to the Huffington Post, the average wedding cost in 2011 was $27,021. Looking at this statistic, why do you think people spend so much on weddings? Do you think it’s worth the money? How do people afford weddings that cost $27k if the national savings rate is so bad? What are the long-term financial ramifications of an expensive wedding? What tips do you have to help people save money on weddings? You can read my swapped article on Kathleen’s site today by clicking here.

    Hi, I’m Kathleen, and I write about saving money, getting out of debt, and having fun in my city over at frugalportland.com. I’m excited to participate in this blog swap about whether a wedding is worth the same money as a down payment on a house!

    Background

    I am 30, and I have never been married. I’ve been in many weddings, and attended many more. I love weddings. My dream job is “professional wedding guest” — can anyone make that happen?

    A Wedding is the Biggest Party of Your Life


    Here’s the thing. Too many people focus on a wedding and not enough people focus on a marriage. I get it. Weddings are like birthday parties only bigger! More impressive! And, you get to be the center of attention much more than at a birthday. Everyone has a birthday every year, but, in an ideal world, each couple has just one wedding. And, the bride feels like going out of her way to make her party great.

    Keeping up with the Kardashians


    The average cost of a wedding is somewhere around $28,000. To put that in perspective, my 2005 Toyota Corolla is worth about $7,000. So, the average wedding costs four Corollas. And no, you cannot drive home a wedding. In fact, the things you get after you’ve had your big party are limited to kitchen toys, a marriage license, and 489 tea lights.

    In a wedding, as in all things, you compare yourself against your peers. Whether you are the first in your age group to marry, or you’re like me, and have been to more than 20 weddings, it’s darn near impossible not to compare. Just look at the social cues: a picture of the ring is the universal sign for “I’m engaged!” because women want to see how your ring compares to theirs. They’re happy for you, sure, but they also want to know if you “did better” than they did.

    More shockingly, the four-Corolla price tag for this mystical “average” wedding does not include the ring or the honeymoon. The dress is the first surprise. I haven’t purchased a formal gown since my senior prom, so inflation might have happened a bit, but if I could buy a prom dress for under $200 why on earth is a $2000 wedding dress considered a bargain?

    All ranting aside (I don’t want this to become the ravings of an over 30, never been married bitter bridesmaid), it’s a bad idea to go into debt for your wedding. The success rate of marriage is so low, partly because two people spend x amount of time developing an intimate relationship and at least x amount of time planning a party. The wedding is the party, the marriage is forever. The more time you spend setting expectations and discussing what married life means to you, the less your color scheme matters.

    Focus on a marriage and not a wedding. Your friends and family love you, and will have fun celebrating the beginning of the rest of your lives together. Don’t get caught up in the details. Have a blast. Love your spouse. Don’t marry someone until you’re absolutely, 100% sure you want to be old with them.

    How about you all? What are your thoughts about the current levels of wedding spending? Do you think people are spending too much on this one-day event, or that it is worth the money? 

    What tips do you have to save money for weddings?


    Share your experiences by commenting below!

      ***Photo courtesy of http://farm4.static.flickr.com/3223/2760437873_13e50463fa.jpg

      Bringing Down the Cost of Delivery

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      Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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      The following is a sponsored guest post. Enjoy!

      Bringing Down the Cost of Delivery


      A major purchase can be a big strain on your budget, but often, by making the internet your first port of call, you can save a fortune.

      With online auction sites like eBay or Craigslist, you have access to thousands of items that match your needs. But often, with the more expensive or larger items, they’re only available for ‘pick-up only’ which can be a major problem if you find your dream sofa at an extremely affordable price but is too big to fit in your car or even worse, if the seller lives in Austin and you live in New York!

      Before you had two options:

      1. Pay for one of the ‘big-boy’ couriers to transport the item, which could end up being more expensive than the cost of the item itself, or
      2. Settle for something else that’s closer to you, or go to a high street retailer and a pay a higher cost for the item.

      Luckily for you bargain hunters there’s now a third option….

      Online shipping platforms are helping regular consumers save large amounts of money on the cost of shipping. With their reserve auction format and load sharing options, couriers bid for your shipment, meaning that the cost of shipping for gets lower and lower.  It works because, instead of just transporting your item, they will transport many goods on the same route, passing the cost saving on to you.

      For your added peace of mind, these platforms use a feedback system, so that if you book through the provider, you can view feedback and reviews of the transport providers, meaning that you can make a safe and informed choice.

      Using online auctions or classified sites can help you realize huge savings, find good quality items, and increase the number of items that you can consider. 

      So now, if your sofa suddenly collapses or computer explodes, you can choose a new one and have it delivered without breaking the bank!

      How about you all? Do you worry much about the transporting/shipping costs when you order online? Do a lot of items you’re considering purchasing require pick-up only? Have you ever used a delivery service for items that are pick-up only but are too far of a drive?


      Share your experiences by commenting below!

        ***Photo courtesy of http://nopsa.hiit.fi/pmg/viewer/images/photo_5349064598_7cb8115bef_t.jpg

        Carnival of Personal Finance #359 – Most Expensive Bottles of Wine – April 30th, 2012 Edition

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        Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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        Click here to enter my free $46.95 giveaway for a chance to win 5% of My Personal Finance Journey blog income and give another 5% to a charity of your choosing! Deadline to enter is April 30th, 2012 (today at midnight Eastern Time!).

        Welcome to this week’s Carnival of Personal Finance, a weekly listing of the top personal finance articles around the blogosphere in the following categories – taxes, money management, investing, career, debt, frugality, credit, economy, finance, real estate, saving, and budgeting.

        The theme for this week’s carnival is a listing of 5 of the most expensive bottles of wine ever sold in the world!         I hope you enjoy the posts and that you can stop by My Personal Finance Journey on my non-carnival days as well! 

        Listed below are this week’s top 5 editor’s picks. Congrats to the five winners! Some truly great articles here!


        1. Our #1 pick of this week is by Darrow Kirkpatrick from Can I Retire Yet?, who presents Is the 4% Safe Withdrawal Rate Obsolete?, and says, “The era of the simple 4% Safe Withdrawal Rule in retirement may be drawing to a close. We are now hearing from some respected voices that it is rigid and simplistic — relying too much on historical data, and not enough on current financial conditions. Most alarmingly, we are being told that it might be too generous for these extreme economic times, that the actual safe withdrawal rate for today’s retirees could be less than half of the traditional 4% rate.”  

        Jacob’s Comments – In this article, Darrow expands on the ongoing analysis by others such as Rob Bennett, Todd Tressider, Robert Shiller, and Wade Pfau concerning whether and/or how long term market price valuations should be taken in to consideration to make investing decisions. In this case, Darrow examines whether or not a 4% withdrawal rate during retirement is applicable in today’s environment. This is truly a very important topic for everyone, and this article definitely warrants a thorough read!

        2. The #2 pick of this week is by         Sean from One Smart Dollar, who presents What is the Best Day to Buy Specific Items, and says, “Did you know that you can save money just be purchasing items on a specific day of the week? ”  

        Jacob’s Comments – This article examines the very interesting subject of price variations involved in purchases in the following categories across various days of the week: gas, hotel rooms, airfare, cars, clothing, and eating out. To me, the most surprising find was that Wednesday morning is the cheapest time to buy airline tickets.

        3. Our #3 pick for this week’s Carnival is by FamilyMoneyValues from Family Money Values, who presents Parents As Resources for Adult Children, and says, “Now that I am the parent of adult children, I am beginning to understand at least some of the reasons Mom and Dad offered what they did. Here are four things I wish I hadn’t been so stubborn about.”  

        Jacob’s Comments – There are so many ways that parents can give their children a head start financially. However, the children have to be ready to accept that help. This article highlights several very interesting first hand experiences regarding this issue. 


        4. Our #4 pick for this week’s Carnival is by Barbara Friedberg from Barbara Friedberg Personal Finance, who presents Why I Don’t Invest in Individual Stocks Anymore, and says, “As anyone in the investing field understands, no matter how many winners one holds in a portfolio, there are bound to be a few losers. Learn about my personal investing voyage.” 


        Jacob’s Comments –  When I first started out investing, I too bought and sold individual stocks. I had some winners, but overall, did not make any money above the market return. After reading about investing more, I now follow a passive investing approach using index mutual funds and ETFs. Barb’s journey in this article is somewhat similar to mine, and was quite interested to read! 

        5. Our #5 pick for this week’s Carnival is by Peter from Bible Money Matters, who presents Paying Down Debt with Gazelle Intensity? How Much of an Emergency Fund Do You Need?, and says, “I am a big fan of Dave Ramsey, and as we pay down our debt, we follow a hybrid approach to his debt snowball method. Followers of Dave Ramsey know that another part of his debt reduction plan is to first save $1,000 in an emergency fund before beginning aggressive debt reduction. Yet is this good advice for everyone? Should some families have a larger emergency fund? What is the right amount for your family to set aside in an emergency fund?” 


        Jacob’s Comments –  Dave Ramsey is a significant force in the personal finance community. I like his advice because it provides a simple guide and empowers people to take action quickly to get rid of debt. This article analyzes how much emergency fund a person needs. Personally, I think that most people need a larger emergency fund than the $1000 recommended by Dave, but $1000 is a good starting place for sure! 

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        1865 Chateau Lafite: $27,000
        This cheap ($27,000 per 750 mL) wine is an amazing ~150 years old! I can’t even begin to imagine what tasting a wine from the 1800’s would taste like! haha
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        And, listed below are the rest of this week’s great article submissions.

        Squeezer from Personal Finance Success presents Why investing in dividend paying stocks is a smart move., and says, “There are several different ways you can grow your passive income. One method includes investing in dividend paying stocks. Dividends are when a company shares its profit with the shareholders.”
        Adam from Magical Penny presents The Reality of Self Employment, and says, “Strangely enough, I had not intended to become an entrepreneur. But here’s how I did it…”
        Cl from TotallyMoney presents What will a double-dip recession mean for you?, and says, “What the British double dip recession means for you.”
        Martin from Studenomics presents How to Switch Bank Accounts, and says, “How you can switch bank accounts in a few minutes.”

        Mike from Experiglot presents Do You Need to be An Accountant to Understand Personal Finance?, and says, “We explain why finance isn’t just for accountants.”

        Mike from Do Not Wait presents Saving For Retirement With Your First Apprenticeship, and says, “Why you should start saving money right off the bat.”

        Mike from The Financial Blogger presents April Net Worth Report +012% – Never Spend Money You Haven’t Earned Yet, and says, “A look at where my money has gone.”

        Green Panda from Green Panda Treehouse presents 3 Reasons Why You Need a Credit Card Right Now!, and says, “The case for signing up for a credit card.”

        Div Guy from The Dividend Guy Blog presents Can Dividends Save The Economy?, and says, “Are you investing in dividends?”

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        1775 Massandra: $43,500
        If you’re like any other normal person, you’ve probably always wondered what wine tasted like that was made from grapes the year that the US Declaration of Independence was signed. And, for a cool $43,500, you can have that privilege! 
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        Rob from Dough Roller presents What’s New for IRA Retirement Accounts, and says, “Here are the updates for 2012.”

        J.P. from Novel Investor presents Shorting A Stock: Profiting On The Way Down, and says, “Everyone and their brother wants the market to go up, not the short seller. Shorting a stock is not the popular choice, but there are profits in going against the crowd.”

        Jeff Rose from Good Financial Cents presents Best Jobs for Retirees After Retiring, and says, “For those who made it to the age of retirement and have no real desire to actually quit being involved, there are a multitude of job options available to keep going strong in your later years.”

        Glen Craig from Free From Broke presents Think Twice Before Borrowing from Your 401k, and says, “Some people talk about a 401(k) loan like it’s an easy option. But, there is a lot of risk, and borrowing from your 401k is something you need to carefully consider.

        Michelle from See Debt Run presents I Ain’t Sayin’ She’s a Gold Digger, and says, “I discover an entry in my kid’s notebook where he writes “My Mom Loves Money!” While true, I wonder what prompted him to write it, and ponder what it really means to be rich.”

        Ryan Yates from Deliver Away Debt presents Budgets Are For Poor People – Right?, and says, “Budgets aren’t just for people who might have trouble earning money, they’re for anyone who has ever been involved in spending money. But they won’t do you any good if you don’t respect their necessity. No matter what your income level, if you aren’t serious about gaining control of your finances, having a budget will be of little help.”

        Boomer from Boomer & Echo presents Preparing For Retirement: Some Things To Consider When You’re Turning 50, and says, “There are plenty of reasons why people put off planning for their retirement. The future has a way of arriving faster than we ever thought. No matter how well you are doing today, making sure you have the financial resources you will need for a secure future takes careful planning.”

        Philip from PT Money Personal Finance presents 6 Common Credit Report Errors, and says, “Discusses PT’s personal experience with credit reports as well as other errors that commonly occur in them.”

        Nicole from Nicole and Maggie: Grumpy Rumblings of the Untenured presents Freelancing: Thoughts on Scalzi’s you’re not fooling anyone, and says, “Nicole and Maggie discuss freelancing as a second job and why they have decided pursuing secondary employment is not really worth their time.”

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        1947 Château Cheval Blanc: $304,375
        This wine, obtained for the astronomical price of $300,000 per bottle, is considered to be the greatest Bordeaux wine of all time! Well worth the price! 🙂
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        Justin from The Family Finances presents The Mini-Max Rule, and says, “The “mini-max” rule is pretty basic yet explains the reasoning behind almost all our decisions. We tend to make decisions we think will minimize our cost and maximize our benefit”

        Everything Finance from Everything Finance Blog presents Stay at Home Parents. . .Denied!, and says, “I recently read a US News Article about how the stay at home parent must ask the breadwinner for permission before opening a charge account. What??? Yes, even in the year 2012 this is true. The article sheds light on the Federal Reserve’s decision: No paycheck, no credit card.”

        Robert from The College Investor presents Invest Simply! Unless You Are Getting a Degree in Stock Picking, and says, “Everyone could be lucky once and pick a good stock. But to do this systematically requires more than luck. I think that picking more often than not the right stocks, is very hard work, very competitive and without exceptional talents, impossible. I’m not one of the lucky ones. Here is what I do instead.”

        Andy from Saving to Invest presents Buying a Used Car: Unnecessary Hassle or Financially-Savvy?, and says, “But is buying a used car instead a hassle or a panacea? Like anything financial, it depends….”

        Teacher Man from My University Money presents How To Use Your Liberal Arts Degree To Get a Government Job, and says, “I have been someone negative about the job prospects out there for people like me with a liberal arts degree before. While it is still not what I recommend for most people coming out of high school, it can be a valuable tool in your career tool belt if leveraged correctly.”
        FMF from Free Money Finance.com presents The Two Ways To Track Financial Success, and says, “How do you know if you’re reaching your financial goals or if you’re making financial progress? And what can you do to get to where you want to be at a faster rate? These questions get to the heart of one simple matter: you need to keep track of your finances by calculating two simple measures on a regular basis.”

        Miss T. from Prairie Eco Thrifter presents How to Choose an Ethical/Green Financial Planner, and says, “If you feel that you need some guidance in choosing the right ethical financial products, a financial planner can help you to select ethical funds that match your criteria and manage them for you. As far as ethical products are concerned though, not all financial planners are equal. Many financial planners are marketing themselves as having ‘green’ credentials but this does not automatically mean that they have enough knowledge of ethical finance to provide the guidance that you are looking for so don’t just take their word for it – go ahead and delve a bit deeper to see how much expertise they actually have.”

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        1907 Heidsieck: $275,000
        This wine was scheduled to be delivered to the Russian Imperial Family in the early 1900’s, but was sadly lost in a shipwreck. Fortunately, it was discovered by a diver, causing the price to be jacked up considerably! Finder’s keepers! haha
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        PK from Don’t Quit Your Day Job… presents Predicting S&P 500 Closing Prices – April 2012 Edition, and says, “If you don’t trade options, are they still useful? Well, anything which gives constant quotes is useful as an indicator. Here’s an example of using options pricing to predict the movements of the S&P 500 over the next 8 months!”

        Betty @ Control Your Cash from Control Your Cash presents Nothing is your fault or, student loans are killing our economy part CXXV, and says, “Everyone’s pissing away their money on a useless college degree. Even the President.”

        Grand Per Month from Grand Per Month presents Does Your Side Business Need Insurance?, and says, “We have been looking at various ways to make extra money, some of which could develop into full-time businesses such as cutting grass or cleaning houses. Both of these services could lead to enough business such that you would have to hire employees. You are also working at various locations and on the property of many clients. One way to protect yourself and your personal assets is to form a limited liability corporation, but the other is to make sure that you have the proper insurance coverage.”

        Kacie from Sense To Save presents Our plan for maxing out our IRAs this year, and says, “It’s going to take a lot for us to contribute $10k to our IRAs this year. We’re automatically contributing some, and we have a plan for making up the rest.”

        Clint from Accumulating Money presents 5 Worst Pieces of Advice for Raising Your Credit Score, and says, “For those who are currently striving to raise their credit score, it is important to get good advice. Moving forward with certain activities – even though they may appear to make sense – could end up backfiring in the long run and cause your overall score to drop.”

        Earth and Money from Earth and Money presents Planning a Green Frugal Wedding – Food, and says, “Being either frugal or environmentally responsible when it comes to weddings often requires you to challenge the status quo or the established wedding traditions, and food is no exception when it comes to this.”

        Christopher from This That and The MBA presents Would you work for free?, and says, “Today more than ever we rely on volunteers to fill a void that we just cannot afford to pay a person to do. I have been a volunteer for many years and the past few weeks we have had Earth Day and National Volunteer week. I think it is appropriate to recognize all the work that they do.”
        Mr. Money from Smart on Money presents Are You Letting Your Kids Ruin Your Retirement, and says, “In many cases, helping your kids out occasionally with their finances won’t bankrupt you, or even put your retirement at risk. Unfortunately, though, a pattern of poor financial decisions from your children can result in a situation that eventually puts your finances at risk. Even some items of financial responsibility, such as paying for college, can leave your retirement plans in ruins.”

        eemusings from Musings of an Abstract Aucklander presents How to reclaim your work mojo, and says, “Stuck in a work rut? Here’s how to find your groove again…”

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        1787 Chateau Lafite: $160,000
        This bottle of Lafite was part of Thomas Jefferson’s wine collection. Unfortunately, the wine is no longer drinkable, but since it bears the President’s initials, the price is still rather palatable! 
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        Ray from Squirrelers presents Email and Job Searching, and says, “Communication is vital to success on the job. Thus, shouldn’t it be important to communicate well when trying to find a job? Given that email is often a step in the hiring process, it is important to avoid mistakes. This post discusses how email can play a role in your job searching success and ultimately income generation.”

        Jason from One Money Design presents Study Shows Following Your Passion Leads to Greater Success, and says, “If you follow your passion the money is likely to follow. A recent study proved this to be the case.

        Well, that concludes this week’s edition of the Carnival of Personal Finance! To all of this week’s participants – it was an honor to be able to read and get involved with such high quality articles! Please remember to link back to this post if your article was included here and to promote via social media when possible.

        Next week’s carnival (#360) will be hosted by Money Talks Coaching, and is scheduled to take place on May 7th, 2012. Be sure to submit your articles for next week’s edition, using the following handy submission form.


        Also, if you’re interested in hosting a future edition of the Carnival of Personal Finance, you can apply using this form.  

          ***Photo courtesy of http://nopsa.hiit.fi/pmg/viewer/images/photo_2857498721_0910907411_t.jpg
          ***Expensive wine bottle stats courtesy of http://www.huffingtonpost.com/2011/11/10/most-expensive-wine_n_1084988.html#s463410&title=1865_Chateau_Lafite

          The Credit Card Dilemma: Prepaid or Not Prepaid?

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          Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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          Click here to enter my free $46.95 giveaway for a chance to win 5% of My Personal Finance Journey blog income and give another 5% to a charity of your choosing! Deadline to enter is April 30th, 2012.


          The following is a guest post. Enjoy!

          The Credit Card Dilemma: Prepaid or Not Prepaid?


          If you’re asking yourself this question, it is likely that you have had a bad credit run in the past, or that you don’t qualify for credit because you’ve never had any. Prepaid credit cards offer a way for you to break the cycle of having no credit or bad credit by providing a way for you to build credit and earn the trust of your lending institution. And, because they are prepaid, they eliminate risk for the card issuer.

          First, it is important to verify whether you are getting a prepaid credit card or a prepaid debit card. It may seem that the difference is all in the semantics, but prepaid credit cards help you build credit where debit cards do not. If your primary goal is to improve your financial standing, this could be a critical difference.

          The Pros of Prepaid Credit Cards


          In terms of the process of using it, having a prepaid credit card is just as convenient as having a regular credit card. You can get a card with any of the major issuers such as Visa or Mastercard, and you can use your card both in person and online. The only person who knows it is prepaid is you.

          You may be asking yourself why not skip the trouble and just get a debit card. Prepaid credit cards may not operate on borrowed money, but they are linked to a lending institution, which gives them the opportunity to monitor your spending and payment habits. It also gives you the chance to prove that you are a credit-worthy consumer, which is why prepaid is a good way to build a path to a regular credit card.

          Prepaid cards are also useful if you are trying to budget your money because they only allow you to spend what you have. If you want to break away from the “buy now, pay later” spending habit that leads to debt, a prepaid card can help you curb impulse shopping.

          The Cons

           of Prepaid Credit Cards


          Prepaid credit cards usually have more fees than other kinds of cards, so you’ll find that it is a more expensive way to put your money to use. In addition to an initial sign-on fee, you’ll also have to pay transaction fees every time you use the card, a fee for reloading your card, and a monthly fee for account administration. And, these are just the tip of the iceberg. Considering that you’re paying all of these fees to use your own money, having a prepaid card may not be worth the expense to some.

          Also, what you initially count as an advantage can quickly become an inconvenience with prepaid cards. While having a set amount of money available to spend can help you budget effectively, it can also make for an inconvenient — or worse, embarrassing — situation when you have reached that limit. The balance for many prepaid cards cannot easily be checked because they don’t operate like normal credit cards or debit cards. So, if you’re heading out to make a big purchase, it is best to check your balance before you leave home.

          Conclusion


          Whether you decide to get a prepaid card or not depends largely on your financial goals and your current financial situation. Like any card, it will have both advantages and disadvantages, but you can minimize the cons if you read the fine print.

          How about you all? Have you ever used a prepaid credit or debit card? If so, did you incur a lot of expenses in order to use it? 


          If not, why have you steered clear of prepaid cards? 


          Share your experiences by commenting below!

            ***Photo courtesy of http://farm4.static.flickr.com/3050/2919245129_276a62a19d.jpg

            Home Damage Caused by Vermin and How to Remedy the Sitauation

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            Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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            The following is a guest post. Enjoy! 

            Home Damage Caused by Vermin and How to Remedy the Situation

            Little black droppings on your kitchen surface are a bad start to anyone’s day, but the worse is yet to come. If you find tell-tale signs of mice in your home, you could find you are just at the beginning of a larger vermin problem.

            Common house vermin includes mice, rats, cockroaches, fleas, bedbugs and woodworm. It’s not nice to think about creepy crawlies living in your home, but if you don’t address vermin issues quickly, you may find that things get out of control.

            How Can I Tell if I Have Vermin in My Home?


            Each vermin leaves a different trace when it’s nesting in your home, but some signs include droppings, bad smells or damage to your property. You may even see the vermin yourself, which is perhaps the most unmistakable proof of vermin in your home.

            What Damage Will Vermin Cause in My Home?


            Imagine a very dirty, smelly, disrespectful lodger moving into your home, who then invites all their equally dirty, smelly, disrespectful friends and family to stay – that’s what having vermin in the house can be like. Suddenly your food isn’t safe, your property is damaged and these unwanted house guests don’t seem to be leaving.

            Common Damage Caused by Vermin Is:


            Mice: chewing through wires, leaving droppings which stain, chewing through wood, eating food
            Rats: carry disease, chewing through wires and contents of your home
            Cockroaches: carry disease and spread germs
            Bedbugs: biting and creating an itchy rash whilst you sleep
            Woodworm: damage wooden furniture

            What Can I Do About Vermin in My Home?


            You should seek professional help from vermin control and from your home insurance provider if you have vermin in your home. Not many people realise that your home insurance plan can also help you remove vermin from your home. Before you contact a specialist to solve your vermin problem, you should contact your insurance provider in case they have an approved company you should use. They may be able to advise you on the best cause of action to take if the type of vermin is covered by your home insurance policy.

            How Home Insurance Can Help


            Home insurance can cover certain types of vermin, which might protect you financially against removing the vermin and recovering damage they cause. Your home insurance might not cover all types of vermin, however, so you should check with your provider to ensure you are fully covered.
            Having vermin in your home can be a traumatic and upsetting experience; your home should be a haven for you and your family – not for unwanted house guests! With professional help and good home insurance, you should be able to reduce damage and resolve the vermin problem swiftly.

            How about you all? Have you ever had a pest infestation in your home? If so, what damage did it cause? Did you home insurance cover the removal? 

            Share your experiences by commenting below!

              ***Photo courtesy of http://s0.geograph.org.uk/geophotos/02/66/90/2669099_6db9bac5.jpg

              Double Glazing Your Home Windows – Financial and Security Benefits

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              Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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              The following is a guest post. Enjoy! 
              Double Glazing Your Home Windows – Financial and Security Benefits

              Increase home security with double glazing in your home and conservatory. Double glazing is fantastic for heat and noise insulation – but not many people realise there can be added security benefits to double glazing too. 

              Home security is understandably a big concern for home owners. Whether it’s opportunist thieves or a planned robbery, windows and doors are easy targets for thefts from the home. Windows are often a weak point in a home’s security system, as the windows necessarily have to open and close; whilst an open window brings a welcome breeze of fresh air, you may also be welcoming burglars into your home with an open or unsecured window.  

              Some security factors you may want to consider when it comes to your windows include:
              • Double glazing: by fitting recognized, quality assured double glazing you may reduce the risk of home theft. Newly fitted, secure windows may be recognized by your home insurance company and help keep your insurance premium low. 
              • Opening mechanism: vulnerable windows, such as those on the ground floor or above an easily accessible flat roof, should have limited opening mechanism. You can choose windows which only open a fractional amount, whilst still letting the air in, so as not to make life easy for burglars. 
              • Locking mechanism: a secure, modern locking system is essential. You can have an easy locking device, which locks at the push of a button, but requires a key to open. Do not have all your windows in your home fitted with the same lock – as that makes for easy opening! You should also keep all window keys out of sight from the outside of your home. 
              • Breaking point: double glazed, anti-theft windows will usually resist breaking more easily than older windows. All a thief needs to do is put a foot through an old window to gain access to your property. Once they have access through the window, they would be able to open the door to their accomplices.  

              By securing your home with new double glazing in your windows and conservatories, you will be taking active steps to preventing home burglary.

              How about you all? Have you ever had any problems with theft in your home? What was the cause of the break in? Did your home insurance cover the damage and/or replace anything that was taken?

              Share your experiences by commenting below!

                ***Photo courtesy of http://s0.geograph.org.uk/photos/88/74/887452_58db226d.jpg

                Meeting Your Financial Obligations Despite Poor Credit Using Bad Credit Loans

                 

                The following is a guest post. Enjoy! 

                It is a difficult challenge to make ends meet when you have poor credit. Fewer lenders are likely to give you the money that you need, and this will make it harder for you to get the money you need when you need it. You likely have many financial obligations that must be met every month. It is important to try and repair your credit rating and still pay the bills.

                 

                Pay Bills on Time

                The best way to keep your credit in good standing or improve your credit is by making payments on time. If you start to fall behind in your payments, you could be sent to collections. When that process begins, you will likely be reported to the credit bureaus. This means that your credit score will go down, and you will have fewer opportunities to get the money that you need.

                 

                How to Meet Your Obligations

                The best way to meet your obligations is by detailing exactly when all of your monthly payments are due. This will give you a strategy to pay everything on time. You can then make your income match your payment schedule. You need to be diligent and only pay what you need to according to the schedule. If you do not follow the schedule, you will have difficulty making the next set of payments. You may also find that this schedule may be difficult to pull off each month. If that is the case, you will need to play around with the payments periods. Many companies will offer you a grace period. You should check with the companies that you do business with to see the exact date that the bill is due before you are actually overdue. This may help you to meet your obligations with less stress.

                 

                Find More Income

                Many people have discovered that the key to meeting their financial obligations is by finding some extra employment. You can do many things online that will help you to get more money each month. Many people have discovered the power of the internet to make extra cash. Online auction sites have really helped make people the money that they need. All that you need to do is sign-up and start selling. Some people have also found that they have some unique skills. People are creating homemade items and selling them online. Other people have discovered a love of freelance writing. This can be a profitable experience if you have the knack that it takes to write well. You can also put your skills onto an online marketplace. Many people are looking for people to do work around their home. Think about the skills that you can perform for other people. You may be able to do some painting, cleaning, or lawn mowing jobs.

                 

                Take Out a Loan

                Still other people will take out a personal loan to help with the current financial problems. You may be able to secure some cash to help you get through your troubled time. Remember that all personal loans must be repaid. It is important to learn all that you can about the loan before you take it out.

                 

                Be a Wise Consumer

                The final way to meet your obligations is by being a wise consumer. Look to purchase things as inexpensively as possible. Many stores offer generic items that are very similar. You also need to try and only buy what you need, rather than buying everything that you simply want.

                How about you all? What key thing do you do each month to ensure that you meet your monthly obligations? Have you ever had trouble getting a loan when you needed one? 

                Share your experiences by commenting below!

                ***Photo courtesy of http://s0.geograph.org.uk/geophotos/02/44/30/2443013_dc85e2f0.jpg

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