My Personal Finance Journey

Category Archives for Saving Money & Frugal Living

Totally Money Blog Carnival – April 23rd, 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.


Welcome personal finance fans to the 64th (April 23rd, 2012) edition of the Totally Money Blog Carnival, a weekly carnival that includes the top personal finance and money posts.

Listed below are the top 3 articles of this week’s submissions!

Top 3 Editor’s Picks

1. Emily presents The Slippery Slope of Separate Money posted at Evolving Personal Finance.


2. SFB presents Birth Control for the Financially Frugal posted at Simple Finance Blog.


3. Daisy presents Start Off On The Right Foot: Tips for Interns Or Newbies in General posted at Add Vodka. 


Listed below are the best of the rest! Enjoy!

 

Amanda presents Mileage Deduction for Volunteering, Moving and Medical Expenses posted at My Dollar Plan.

Sandy presents 4th Annual Earth Day Is My Birthday Giveaway posted at Yes, I am Cheap.

Ashley Lennon presents Why Having Guts is Key to Saving Money posted at Skint in the City.

Roger the Amateur Financier presents Celebrating the End of Tax Season posted at The Amateur Financier.

Mike Collins presents Will Generation X Be Ready For Retirement? posted at Wealthy Turtle.

eemusings presents From checkout operator to NZ’s most eligible bachelor posted at Musings of an Abstract Aucklander.

Everything Finance presents 5 Ways to Pay Down Your Debt without Living Like a Monk posted at Everything Finance.

JB presents Mint Review posted at My University Money.

Glen Craig presents Do You Have to Pay Tax on Airline Miles? posted at Free From Broke.

Echo presents 10 Fees That Are Worth The Money posted at Boomer & Echo.

Cash Flow Mantra presents How to Make a Grand Per Month with a Home Daycare Business posted at Cash Flow Mantra.

Steve presents Frugal or Self-Sufficient? posted at Brip Blap.

Ray presents 10 Ways to Lower Your Water Bill posted at Squirrelers.

Jeremy presents Establishing Spending Priorities posted at Modest Money.

Philip Taylor presents 10 Alternative Online Job Search Sites posted at PT Money Personal Finance.

FMF presents The Two Ways To Track Financial Success posted at Free Money Finance.com.

Mike Piper presents How Much Do I Need to Save Per Year? posted at Oblivious Investor.

PK presents Mega Millions Expected Value Calculator posted at Don’t Quit Your Day Job.

Pam Whitlock presents Raising Charitable Kids & Teens posted at The MoneyTrail Blog.

SB presents Basics of Insurance: Why we Need Insurance? posted at One Cent at a Time.

Steve Zussino presents How to save money with Tankless Water Heaters posted at Canadian Personal Finance.

Miss T. presents It’s Harley Time, but Is It Worth the Cost? posted at Prairie Eco Thrifter.

Dan presents What Makes an ETF Tax Efficient? posted at ETF Base.

Jon the Saver presents Avoid Starbucks and Make your Own Gourmet Mocha Coffee! posted at Free Money Wisdom.

MR presents Are You Trying to Become Financially Independent? posted at Money Reasons.

Shaun presents 10 things Entrepreneurs can learn from watching Ghostbusters: Top Ten Family Finance Posts #6 posted at Smart Family Finance.

krantcents presents The 3 L’s of Success posted at KrantCents.

Jeffrey presents Famous Money Movie Moments and Lessons with Video! posted at Money Spruce.

101 Centavos presents Building Raised Garden Beds, Part 1 posted at 101 Centavos.

Ashley presents Ask the Consumer Financial Protection Bureau posted at Money Talks Coaching.

FG presents Why Are Environmentalists Against North American Oil & Gas? posted at Financial God.

Jen presents Having Only One Car Saves Us Money-Even Though it Sucks posted at Master the Art of Saving.

Jason presents Should I Sell My Wife’s Wedding Ring? posted at Work Save Live.

A Blinkin presents Should You Sell Your Timeshare? posted at Funancials.

Don presents Saving Money By Negotiating Health Care Costs posted at MoneySmartGuides.

Jeremy Waller presents 5 Reasons to Keep Your Credit Report Up To Date posted at Personal Finance Whiz.

Kyle presents It’s Raining Cash! We’re Giving Away $550 bucks…. posted at The Penny Hoarder.

Princess P presents Why Females are Better Investors posted at Portfolio Princess.

KT presents Save Hundreds of Dollars a Year by Making These Four Drinks at Home posted at Personal Finance Journey.

Daniel presents You’re Emancipated From Paying Taxes…At Least For A Few Days posted at Sweating the Big Stuff.

Tushar presents Types of Common Stocks posted at Start Investing Money.

YFS presents Stop paying your mortgage today!… and be a victim! posted at Your Finances Simplified.

Kevin presents What If I Don’t File My Taxes On Time? posted at Thousandaire.

Debt Guru presents Use Incentives to Pay off Debt posted at Debt Free Blog.

PITR presents Is Passive Income only for the Rich? posted at Passive Income To Retire.

John presents Debt Payoff Calculator – How to Use One posted at Married with Debt.

Sustainable PF presents Public Service Compensation – The Next Bubble? posted at Sustainable Personal Finance.

Steve presents Our Bangkok Budget posted at Money Infant.

Amanda L Grossman presents Guests are Coming: Does the Entertainment Book or CityPASS Offer More Savings? posted at Frugal Confessions.

Suba presents Give Yourself Financial Hope posted at Broke Professionals.

TRL presents Why Investing in Real Estate Takes Time posted at The Retired Landlord.

Crystal presents We Found Our Dream Home!!! posted at Budgeting in the Fun Stuff.

Wayne presents The Price of Being Organized posted at Young Family Finance.

Hank presents Benefits Of High Deductible Health Insurance Plans posted at Money Q&A.

The Planner presents What is Rich? What does it Mean? posted at Provident Plan.

Aloysa presents Save Money by Shopping in Pawn Shops posted at My Broken Coin.

Eddie presents Tools to Boost Small Business Growth posted at Finance Fox.

Sean presents Gym Memberships – Using Money to Motivate You posted at One Smart Dollar.

Lazy Man presents Money Rules by Jean Chatzky Reviewed posted at Lazy Man and Money.

Money Cone presents In Pursuit of the Most Rewarding Rewards Card posted at Money Cone.

MMD presents How to Buy an Index Fund posted at MyMoneyDesign.

Well – that concludes this week’s edition of the Totally Money Blog Carnival. Submit your blog articles to next week’s edition (scheduled for April 30th) using the handy carnival submission form. Debt Black Hole will be the host. Get excited!

Also, if you are interested in hosting an upcoming edition of the Carnival, take a quick look at the hosting schedule and requirements, and then click here to sign up for an open slot. It takes a little bit of work, but hosting carnivals is a great way to meet new people in the blogosphere! I’d highly recommend the process to all bloggers! 

 

***Photo courtesy of http://www.lehmannmansion.com/uploads/dd/04/dd047d68df946ca2ef6b16fccf947902/from-Mary-Hill-BethMarkCar-in-Front.JPG

Don’t Fall For These Scams

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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!

Don’t Fall For These Scams
I consider myself to be a pretty trusting individual, but the sad fact of life is that there are a lot of individuals out there trying to scam and defraud you.  Below is a list of the most common scams in the United States right now according to the FBI, and what you can look out for to protect yourself.

Telemarketing Scams

There are a wide range of telemarketing scams going on right now.  Most of them are typical sales pitches, but most require payment prior to actually even hearing what you “win” or are going to get.  They may even be offers for credit cards or other financial products, but may require some type of upfront payment.  The bottom line is never give anyone payment over the phone before services are rendered.

 

 

Identity Theft

Identity theft is when someone steals your personal information and uses it to perform fraud or other criminal acts.  Many times, your identity will be stolen to open a line of credit, which is then used to purchase things.  The victim is on the hook for the debt, and the thief gets away.  To protect yourself, never give out your personal information, and immediately report any suspicious activity on your bank statements.  Also, make sure that when you throw away important papers, you are shredding them and not just putting them in the trash. 

Advanced Fee Scams

Advanced fee scammers are cons where the individual or company requests a fee in advance of some promised service.  Usually, the promise is something of greater value.  For example, there have been companies promising car insurance comparison and getting you the lowest price.  However, after paying for the comparison service, the company just disappears and you are out of the money you paid up front.

To protect yourself from this, make sure you know the business you’re dealing with is reputable, and that you fully understand the agreement you are getting into.  Be wary of dealing with people you’ve just met, or are online and you can’t verify them for sure.  A good resource for this is the Better Business Bureau, which can help you identify legitimate and illegitimate organizations.  

How about you all? Have you ever been a victim of any of these scam artists? If so, what happened? If not, what steps do you take to protect yourself? 


Share your experiences by commenting below!

    ***Photo courtesy of http://s0.geograph.org.uk/photos/17/85/178556_c5fe07d0.jpg

    How to Live a Frugal Life Without Being Cheap

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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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    How to Live a Frugal Life Without Being Cheap

    The following is a guest post by Andrew Schrage. Andrew lives frugally in Chicago and runs Money Crashers Personal Finance, where he works to spread the message of financial fitness to readers. Enjoy! 

    When people think of “frugality,” the word cheap automatically comes to mind. They envision uncomfortable households with no lights on, no TV, and barren of all creature comforts. In reality, that’s just not true. With the current state of the economy, being frugal is actually very much en vogue.

    In fact, there are a variety of ways to save money every day that don’t involve a change in lifestyle, taking out payday loans, and won’t make you look cheap in front of your friends:

    1. Electricity

    There are plenty of ways to save on utilities without setting your thermostat at 80 degrees in the middle of summer. For example, whenever you leave a room, there’s often no good reason to leave the light on. And if no one is watching television, why is it still on?

    Finally, if you have a guest bedroom that is only used sparingly, why are the alarm clock, television, and table lamp plugged in? Even turned off, but plugged in, these devices drain electricity and increase your bill. In a nutshell, you can cut costs just by changing simple everyday habits around the house.

    2. Water

    When you’re brushing your teeth or shaving, is the water wastefully running down the drain? Turn it off and rinse with a cup. Do you water your garden or flowers in the middle of the afternoon? If you switch to early morning or late at night, you won’t have to water as much. Do you drink lots of bottled water? Get a water filter instead. It’s more convenient and better for the environment.

    3. Television

    If you currently have a TV package that includes three movie channels and you consistently watch movies on each one, then by all means, don’t change a thing. However, if you can eliminate at least one, do it. Next, analyze your viewing habits. There are probably 10-15 channels you watch on a consistent basis. Look into all available channel packages and see if you can go down a notch or two. Better yet, take a look at these reasons to cancel cable and stop watching TV altogether, and see if they resonate with you.

    4. Gas

    Whenever I drive my usual routes, I pass close to six gas stations. A few years back, I surveyed these gas stations and found that the price differential in a gallon of gas was almost fifteen cents. So if I drive 15,000 miles per year and the car I drive gets 20 MPG, I can save more than $100 just by changing where I get gas. Of course, this approach only makes the most sense if you don’t have to go out of your way – thereby wasting time and gas money – to get cheaper gas.

    5. Clothes

    When it comes to clothing, I’m typically looking for two things: quality and price. You most definitely can save in this area, and you won’t look silly during your next night out. Consider discount clothing retailers, such as Ross or Kohl’s, pay attention to seasonal sales, and watch the savings roll in. These stores and others like them offer a variety of mid- to high-level clothing lines at rock bottom prices. And, if you time their coupons with their in-store sales, typical of extreme couponing, you can multiply the savings even further.

    6. Groceries

    If you don’t like the thought of having your friends and family see a fridge full of generic food items, don’t worry. There are lots of ways to save without going generic (although that is a great idea). The next time you’re entertaining, rather than pick up a pre-made cheese and veggie tray, do the work yourself. And find other low-cost recipes that you can serve as well.

    I am always more impressed by freshly prepared food at a party than the pre-made variety – it tastes better and I can tell that my friends put more thought into their spread. Plus, switching to a fresher diet in general allows you to save more money on groceries, and you’ll live a healthier lifestyle as well.

    Final Thoughts

    With any monthly household expense, such as gas, cable TV, cell phone, or Internet, you should always do one thing: Investigate the competition. In most of these industries, competition is high, and there are often great teaser deals out there just waiting for you.

    But in order to do this, you’ll need to stay free and clear of all contracts. I try to jump from one provider to the other regularly, and most transitions are seamless and have little to no effect on my daily life. But if that seems like too much effort, simply employ a few of the strategies above and save yourself hundreds of dollars annually. Chances are, you won’t notice a thing.

    How about you all? What are some other strategies you employ to save money without sacrificing your lifestyle? 


    Share your experiences by commenting below!

      ***Photo courtesy of http://www.public-domain-image.com/cache/objects-public-domain-images-pictures/money-bills-public-domain-images-pictures/money-coins-pictures/penny-cents-copper-lincoln-coin-macro_w725_h544.jpg

      Biggest Threats to Getting Out of Debt

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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 written by Eliza Collins. Enjoy! 

      Biggest Threats to Getting Out of Debt

      Paying off debt isn’t easy, but you probably already realize that. Perhaps knowing which obstacles to expect will help you overcome them as you go:

      Coming Up With the Money 

      If you had the money to purchase everything you have, chances are you wouldn’t be in debt. You’re going to need thousands of dollars to get out of debt. Most people won’t have access to that kind of money all at one time, which means you’ll have to pay it off little by little depending on your ability to live below your income.
      Track your spending and look for ways to cut back, making sure to spend the extra money on getting out of debt. If you get a windfall, like a bonus at work, put that towards your debt for an extra boost toward meeting your goal. Or, if you get a raise at work, automatically put the salary increase toward your debt rather than increasing your cost of living. Use a debt calculator to see just how much you’ll save on interest by putting more money into your payments.

      Discouragement 

      Because it can take so long to pay off debt, it’s easy to get discouraged. You may not make as much progress as you’d like as fast as you’d like. You might feel like you’re sacrificing endlessly for a goal that’s so far away. Remember that every single payment is progress that’s putting you closer to being debt free than you were before you made that payment.
      Look for ways to get motivated again. For example, calculate how much progress you’ve made since you first started paying your debt. Create milestones and do a small celebration when you meet one. For instance, you might go see a movie for every 25% of your debt that you repay.

      Your Family’s More Immediate Wants and Needs 

      The more people you support with your income, the more distractions you’ll have in reaching your goal. It may be relatively easy to get your spouse on board, but then you have to manage your kids’ desires to have what their friends have, what they see on TV, things they’ve seen on the Internet, etc.
      Try allocating a certain amount of money toward wants. If your children are old enough, let them know the amount and give them the ability to decide for themselves. If not, make a list that they add items to and only buy things from the list when the wants fund gets big enough.

      Lack of Support From Friends

      While your friends and loved ones may say they support your goal, the true test comes when they want you to do something that doesn’t align with your debt goals. For example, your friends might ask you to go on an expensive vacation or to splurge on an expensive dinner.
      Find less expensive ways to have fun with your friends, like a movie night or game night. Don’t be afraid to say no to things that would keep you from getting out of debt. People who truly care about you will continue to do so, even if you’re not spending money they way you used to. Alternatively, use another person as an excuse that is out of your control. Your boss at work is perfect for that!
      Yes, getting out of debt is difficult. Yes, it takes patience. Yes, it could take several years. But you can do it! Don’t get discouraged by setbacks, major or minor. Just recommit yourself to paying off your debt and keep going.

        ***Photo courtesy of http://s0.geograph.org.uk/geophotos/02/08/74/2087496_4db93dd0.jpg

        The Best Financial Calculators Government and Academia Provide

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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 from Amanda Green. Enjoy! 

        The Best Financial Calculators Government and Academia Provide



        Love it or hate it, the United States government is a source of unprecedented human capital and resources.  While we can’t say that Uncle Sam’s wealth trickles down to only the most necessary of places, it’s a guaranteed fact that the overwhelming majority of federal funds go to useful things, such as services to the public and grants to universities.  The existence of online financial calculators stemming from both government agencies and state schools is an example of the capability and reliability of public service and funding.

        While they won’t replace the expert advice of a financial advisor, the following six calculators available through various federal agencies and public universities are free to the web-connected public and above all, are trustworthy:

        University of Maryland Medical System Cost-of-Smoking Calculator

        For those of you who dealing with a cigarette addiction, this cost-of-smoking calculator puts the price of your daily pack on an annual scale.  While not the main reason to quit, the financial benefits are a definite perk.

        Department of Energy Fuel Economy Comparison Calculator

        Analysts say to prepare for $5.00 gallons of gas by the end summer.  Those thinking about trading their gas guzzler for a more fuel efficient ride can’t afford not to stop by the DOE’s fuel economy comparison calculator to see their options side-by-side.

        Department of Agriculture Cost of Raising a Child Calculator

        Before you and your loved one decide to start a family, make sure it’s the right time financially by using this cost of raising a child calculator.  It’s also useful for existing families looking to see the bigger picture regarding the expenses of parenthood.

        Federal Reserve Credit Card Repayment Calculator

        While minimum payments give you more spending money today, they’ll result in massive amounts of interest paid over time.  To get a glimpse at the long-term state of your credit card debt at the rate your going, use this repayment calculator.

        Penn State Living Wage Calculator

        Many cost-of-living calculators exist online.  But, none get as specific as this living wage calculator created through economics research conducted at Penn State.  While it focuses primarily on the necessary wages needed for low income living, it provides an accurate portrait of living conditions in cities across the United States.

        Lawrence Berkley National Laboratory Home Energy Savings Calculator

        By plugging in information about your geographical area, home, utility bills, energy habits, and existing efficiency efforts, this handy calculator will tell you the ways in which you can further increase sustainability and eliminate waste.  It’s ideal for families as well as college roommates.

        Uncle Sam has never had much of a glossy reputation, but our tax dollars do go to more useful things than we tend to think about.  The aforementioned online calculators, and the inevitable financial information you’ll gain from using them, are proof of the benefits of public funds and service.

        How about you all? Do you use any financial calculators online? Have the ones you’ve had more success with been provided by the non-profit (academia/government) or for-profit sector? 


        Share your experiences by commenting below!

          ***Photo courtesy of http://opencage.info/pics/files/800_4543.jpg

          Welcome Budgets are Sexy Readers!

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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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          Welcome Budgets are Sexy readers! Thanks so much for stopping by my site by way of the my guest post today over at J. Money’s blog listed below. I’m very happy to have you here! 🙂

          How to Save Even MORE on Hotel Rooms Using Both Priceline and Hotwire


          And, thanks to J. Money, I actually found out that the post was lucky enough to be mentioned at the following places as well. I’m glad that everyone seems to be benefiting from sharing this simple money saving strategy. 


          LifeHacker.com – Get Better Hotel Deals
          College Candy – Cheap Candy

          If you’re stopping by my site for the first time, I just wanted to give a little guide towards what I offer here, since information overload can occur quickly and time is our most valuable asset.

          To introduce myself, my name is Jacob. I started this site back in January of 2010, and since then, have poured my heart and soul in to the site to produce a product I am proud of and I think adds value to the world. You can read a little more on my background and even see a picture of me on the “About” or “First-Time Visitor” pages to find out more about us.

          WHAT I WRITE ABOUT HERE AT MY PERSONAL FINANCE JOURNEY

          In short, I like to offer actionable personal finance advice with the goal of achieving long-term success. 

          Specifically, I really enjoy writing about the following areas (I’ve also listed several posts related to each topic in case you’re interested in reading more):


          ARTICLES SIMILAR TO MY GUEST POST TODAY AT budgets are sexy


          Additionally, if you liked the theme (how to save money / frugal living) of the guest post I wrote for Budgets are Sexy today and are interested in similar posts I’ve written in the past, you might want to check out the ones below:



          WAYS TO STAY IN TOUCH WITH NEW CONTENT


          If after sampling some of the content above you think that my posts will add value to your life, there are many easy ways to stay in touch with new material when it goes up! See below for details:


          10% MONTHLY BLOG INCOME GIVEAWAY

          Also, each month, I give away 10% of any income I make from this site, with 5% going to blog readers and the other 5% going to a charity selected by the grand prize winner. You can read about all of the details by clicking here.

          So far, we’ve given away:

          • Current total given to charity = $334
          • Current total given to blog readers = $345


          If you want to enter in to the March 2012 giveaway, it will be on the way in a few days. Stay tuned!

          Thanks for visiting! Keep on learning!

            ***Photo courtesy of http://s0.geograph.org.uk/geophotos/01/29/34/1293468_818276a6.jpg

            How to Save Money on ATM Fees

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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 Anthony (a fellow Yakezie participant!) from Fiscally Sound. Enjoy! 


            How to Save Money on ATM Fees

            I recently heard the argument for removing the penny from the US currency. It made me wonder if we will ever get to the point where we don’t have currency at all since so many people use plastic. I mean, if you have a (debit) card that represents your money, what else could you need?

            Well, the problem comes in when you use that same card to get cash. At least that’s where the fees can come in, and they can add up too. It can turn a $2.00 ice cream fix into a $7.50 crime. Imagine you just want that ice cream fix but you don’t have cash. You are at a little ice cream stand that doesn’t take plastic, so you run to the closest ATM machine. They charge a $3.50 fee, but your bank also charges a $2.00 fee. But, you aren’t thinking about that. You are just thinking that it’s hot and you want some ice cream. When you sit down and do the math, that ice cream just doesn’t taste as good.

            So let’s chat about how to keep that from happening. Here are some tips for reducing ATM fees.

            1. Better Planning. If you use an envelope system for your budget, then you will either have the money or you won’t and if you stick to that, you will reduce random ATM runs.
            2. Get Cash Back. If you are using your debit card for a purchase, there is rarely – if ever – a charge for getting cash back from your transaction. Do some pre-planning when you are going shopping and think ahead to see if you will need any cash.
            3. Find a Fee Free ATM. You can do a Google search to find fee free ATM’s in your area, or you can visit AllPoint to find one of their fee free ATM’s. They also feature a mobile app for convenience.
            4. Find a Better Bank. Some banks or credit unions offer fee free ATM’s and reimburse you for any out of network ATM’s. If yours doesn’t, it might be a good opportunity to switch banks.
            5. Micro Emergency Fund. My dad taught me to always keep an extra $5, $10, or $20 bill in my wallet for the unexpected. That can really pay off these days, more so than when he recommended it.

            In the end (and thankfully) cash is still king. I have not heard of anyone charging surcharges for using cash, yet.

            Hopefully you found this helpful. If you want to put it in perspective, if you save one $3.50 ATM fee every week, that can add $182.00 per year to your savings. And if you compound that savings over 20 years at just 3%, you will have nearly an additional $5,000 in your retirement. Look, you just paid for your retirement cruise. 🙂

            How about you all? How often do you find yourself paying ATM fees for getting cash? Does it happen often, or only in rare occasions where you are in a bind/emergency? Does your bank charge you a fee to use the ATM? 


            In the future, do you think a fee will start being charged for using CASH?


            Share your experiences by commenting below!

            Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.

            • Great post here, Anthony! Thanks so much for sharing it with us today! 
            • It really breaks my heart when I am in a bar, restaurant, or convenience store and see someone using the “convenience ATM” within the establishment, as you can almost be assured that this person is paying a pretty hefty fee just to withdraw the small amount of money needed to cover their bill.
            • Personally, I think that in today’s competitive banking environment, people should not have to EVER pay an ATM fee, as there is almost always some way to avoid it (except maybe when you are traveling abroad in another country – it’s hard to get around it totally in that case!). 
            • @ How I avoid ATM fees –
              • For the most part, Anthony covered the main ways I save myself from having to pay ATM fees. 
              • First, my bank (Bank of America) does not charge fees in general to use the ATM. In fact, it seems that they prefer you to bank that way to save on cost of labor inside branches.
              • Second, I try to always carry around about $20-$30 in cash in my wallet at all times. I use this cash only in case of emergencies when credit cards/debit cards are not accepted. 
            • @ Will there ever be a surcharge for paying in cash?
              • Anthony brings up an interesting idea to think about – will stores start charging a fee in order to pay with cash vs. paying with plastic?
              • With the funds infrastructure the way it currently is (I don’t think it costs anything for a store owner to go to the bank and withdraw cash to use for change, etc), I think we’re still a good ways from this happening. 
              • What do you all think about this question?

            ***Photo courtesy of http://www.flickr.com/photos/z0/5544921651/sizes/l/in/photostream/

            The Importance of a Good Credit Rating

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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 $141.20 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 February 29th, 2012.


            The following is a guest post. Enjoy! 

            According to a new report by Avivia Family Finances, the average family owes £7,944 ($12,500 USD) in unsecured loans on credit cards, loans, overdrafts, store cards, etc. This figure represents a huge jump from the 2011 level of £5,360. It also equates to approximately 32% of the average per capita net annual income in the UK. 

            The Importance of Keeping Track of Your Credit Report/Score

            Any loan you take out, no matter how small, is recorded on your credit history for a sizable amount of time. Furthermore, how and when you pay your debts off is also registered. Failure to make payments on time and in full results in a poor credit rating. But how do you know what your credit rating is? Have you ever even told yourself, ‘I need to check my credit’? The answer is probably no. Most of us don’t think about our credit rating until we are refused credit based on its result. However, by this point, it is too late for you to do anything about it, at least for the loan you are trying to acquire at the time.

            Keeping up to date with your credit score, which will fluctuate over time, is essential if you want to be offered the best interest rates, loan deals, mortgage offers promotions and products. A poor score means you won’t get the loan you want and worse still you might be refused a mortgage so you can’t get that house of your dreams. You can check your credit score online. New customers get a 30-day free trial, which includes a report of your full credit history as well as text messages or emails if/when your credit rating changes.

            The Threat of Identity Theft

            Your credit rating will change if you miss or under pay payments or conversely, if you pay off all of your debts. Therefore, you are the one in control of your credit report. However, identity theft is a growing problem throughout the globe, and identity criminals are using ever more advance methods of stealing your personal information and using it for their own financial gain. They have no qualms about running up huge debts under your name, and this will obvious have a detrimental effect on your credit rating. 
            However, on average it takes 15 months for a person to find out they have been a victim of identity theft. This is why regular checks of your credit history are such a good idea. The sooner you find out about identity theft, the sooner you can act on it and do something about it. You can find more information about identity theft on the Crime Stoppers website.

            How about you all? How often do you check your credit report and/or score? What service do you use to check it? Do you have to pay a fee, or do you view it for free?


            Are you actively doing anything now to protect yourself from identity theft? 


            Share your experiences by commenting below!

            Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.

            • Good post here. It’s always worthwhile to get a reminder every once in a while about remembering to check my credit report/score occasionally. 
            • Right now, I probably check my credit report less than I should (once a year is generally how often I check it). When I do check it, I do so for free using AnnualCreditReport.com. Unfortunately, you can only view your credit report (not score) for free once per year. So, if you want to check in more often, you have to find another paid service to help you. But, they are easy to find.
            • I was also recently exposed to a service that claims to let you check your credit score for free – Credit Karma. However, one of my fellow blogging friends (Wealth Informatics) pointed out that the score reported on Credit Karma is not your actual FICO score, but rather something called the Transunion TransRisk score. The problem with using this credit score as your sole source of information is that not all lenders will use this score when assessing your ability to lend/repay money.
            • Regarding identity theft, this is becoming more of a prevalent problem in today’s society. 

            ***Photo courtesy of Image: David Castillo Dominici / FreeDigitalPhotos.net


            What Factors Contribute to the Increasing Cost of Car 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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            Click here to enter my free $141.20 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 February 29th, 2012.

            The following is a guest post by Denver Burke. Enjoy! 

            What Factors Contribute to the Increasing Cost of Car Insurance?
            Many households are becoming increasingly cash-strapped, and one factor that is not helping many is the rising cost of insuring their vehicle. Car insurance premiums have continued to soar over the past twelve months, and a report from the motoring organization, AA, has suggested that motor insurance has risen by as much as 40%.
            With no corresponding rise in road traffic accident claims, it can be difficult for drivers to comprehend why they are being forced to pay so much. The insurance industry says that despite the spike in insurance premiums, very few firms manage to make much profit on their policies because of a number of other factors, which are having an adverse influence.

            Contributing Factor # 1 – Fraud

            Fraud is a real problem for car insurers, and the incidence of deliberately staged collisions is on the increase. During 2010, 30,000 staged collisions were recorded by the Insurance Fraud Bureau, with each incident averaging around £17,000. As the cost of fraud has to be absorbed by honest policyholders, the net result is an increase even for drivers who have made no claims.

            Contributing Factor # 2 – Rising Number of Motorists Without Insurance

             

            Another reason for the rise that may rankle with honest drivers is the number of motorists who are on the roads without insurance. The Department of Transportation figures suggest that approximately two million drivers do not have insurance, and 23,000 people are hurt by uninsured motorists each year. The vast majority of insurance policies cover damage and expenses caused by uninsured and untraceable drivers, a cost which once again trickles down to policyholders.

            Contributing Factor # 3 – Rising Number of Personal Injury Claims

             

            Personal injury claims also have a small effect and the Association of British Insurers estimates that approximately 10% is added to each premium to pay for the costs of claims. Many insurers have to pay hefty legal expenses when dealing with personal injury claims, a reason why there are calls for more structure to be brought to the charges.

            Contributing Factor # 4 – New Legislation for Male vs. Female Insurance Premium Rates

             

            One factor that has not yet fully been felt but will have a significant impact on premiums is the recent ruling from the European Court of Justice. The court ruled that using gender to differentiate premium rates was discriminatory, so from December 2012, no insurer will be allowed to offer separate rates for men and women. 


            Rates for women, particularly amongst younger drivers, are currently lower than those offered to men, as statistics show they are less likely to be involved in an accident. The change in law means that insurance for women will become more expensive to take into account the higher incidence of claims amongst men, whilst insurance for males is likely to drop slightly but not significantly.

            Contributing Factor # 5 – Increase in the Cost of Fire and Theft Insurance

            In the past, third party fire and theft insurance was a far cheaper option than comprehensive insurance, but now, the average quote for this is £1,533. This is an increase of 82% and much higher than the rise seen in fully comprehensive cover. The AA says that one of the reasons why third party fire and theft has become more expensive is because not all insurers now offer this and also because it is the type of cover usually taken out by higher risk drivers.
            The Office of Fair Trading is investigating the reasons behind the recent sharp rises in insurance and, and everyone waits to find out the outcome. Although it is possible to get a cheaper premium by shopping around, car insurance remains a vastly inflated expense for the majority of drivers.

            How about you all? Do you feel you are currently paying a fair price for car insurance? Have your premiums increased very much recently?  


            How do you feel about the issue of different genders being charged different prices across the board for various types of insurance? Do you think this is justified and fair or is discriminatory?


            Share your experiences by commenting below!

            Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.

            • Good article here! To me, it’s always interesting to examine the reasons (and possible reasons) behind pricing differentials and changes for commonly purchased things, like car insurance.
            • @ My hypotheses for why car insurance premiums may be increasing – 
              • Personally, I have several hypotheses for why car insurance premiums could be on the rise, assuming that the total number of road accident claims has not increased (as mentioned in the study mentioned above).
              • Hypothesis # 1 –  With the unfavorable world economy, many people that are running low on money possibly elect to stop their insurance coverage in order to pay for other living requirements. Since there is a smaller pool of insurers to spread the overall risk among, insurance premiums for the remaining insurance clients could be increased.
              • Hypothesis # 2 – One of the primary ways that insurance companies work is that they take the small monthly premium payments from customers and invest the money in long and short term securities in order to make money. Since the interest rates on savings accounts are pretty abysmally low these days, the insurance money pool doesn’t grow as much, causing the company to tend to charge more in premiums from customers in order to make a profit and pay their expenses.
            • @ The occurrence of fraudulent staged accidents – Personally, I have never heard of this happening. Do people really stage fake accidents in order to collect insurance? Anyone out there have experience with hearing of people doing this?
            • @ Rising number of motorists without insurance – This factor makes a lot of sense to me. If someone else hits you who doesn’t have liability insurance, you and your insurance are stuck with paying the bill. This increases the amount that the car insurance company has to pay out, thus potentially increasing premiums for everyone.
            • @ Offering similar auto insurance rates for men and women – The issue of whether or not men and women paying different insurance rates is justified is rather fascinating to me.
              • As I found in the post mentioned above about how car insurance rates varied based on age, gender, and geographic location, it is clearly allowed by law in the United States to charge different rates based on gender.
              • In doing some research while writing these comments, I found out that legally discriminating based on gender and age seems to be allowable in the insurance realm (includes health insurance, where women sometimes pay 50% more than men), while discrimination based on race, color, religion, or national origin are not allowed in the field.
              • What is interesting to me is that discrimination based on age (well, as long as a person is of legal age) and gender is NOT allowed in most other realms of law – such as renting an apartment to a tenant or hiring for a job.
              • Looking at this current landscape, it begs the question of WHY age and gender discrimination is allowed in the insurance realm?
                • Of course, there is no one simple answer to this question, and I believe that this topic will continue to be debated for many years. But, it is interesting to think about nonetheless.
                • So, I’ll leave this question up to you all. Do you have any thoughts for why this is?

            ***Photo courtesy of http://images.cdn.fotopedia.com/flickr-201099447-hd.jpg

            What Are Your Options For Borrowing Money in Today’s Economy?

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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 $141.20 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 February 29th, 2012.


            The following is a guest post. Enjoy! 

            What Are Your Options For Borrowing Money in Today’s Economy?


            Even in the current economic climate, there are still numerous ways of borrowing money when you need it. Your bank or other financial institution usually provides a range of personal lending options, such as an overdraft facility, loan, credit card, or mortgage, depending on your needs and financial situation.

            Overdrafts


            There are two main types of current accounts – a basic bank account or a standard bank account. Your bank will not allow an overdraft facility if you only have a basic bank account, as it is normally only offered to people with a bad credit rating. If you have a standard current account, then you can apply for an overdraft facility. Your bank, if it agrees to provide you with an overdraft facility, will allow you to go overdrawn up to a maximum level, either for a specific purpose or for use in case of need.

            An overdraft is usually used for short-term borrowing requirements because the interest rate can be quite high.  And, if you remained overdrawn for an extended period of time, the interest payments could be considerable.

            An example of when an overdraft could be suitable is when you need to pay for a holiday as soon as possible to secure a good deal and you are due a bonus in a few weeks time (i.e. you are certain that you can pay off the overdrawn money in a very short time period). To pay for the holiday, you could use your overdraft facility, and once your bonus is received, the money would be used to clear the overdraft. You would only pay a small amount of interest for the period that you were overdrawn.

            Secured and/or Unsecured Personal Loans


            If you wish to buy a car but do not have the funds to do so, you could take out a loan and repay it monthly over several years from your income at a monthly repayment figure that is affordable. Normally, you can expect the interest rate on a loan to be lower than that of an overdraft facility/account feature.

            Credit Cards


            A credit card is often used to buy an item that you do not have the money to pay for in one lump sum. The credit-card company will give you a spending limit that you can have on the card. You will be expected to make at least the minimum monthly repayments, which are based on a percentage of the amount outstanding.


            Interest rates on credit cards tend to be higher than those for overdrafts and personal loans. If, however, you were to clear the full balance outstanding on your credit card by the due date, then no interest would be payable, which would make it cheaper than using your overdraft facility. If you make a cash withdrawal with a credit card, the interest rate is normally significantly higher than if you used your card at the retailer to buy an item. You also pay a cash handling charge to the credit-card company, which would not be the case if you took cash out of your bank account.

            Mortgages


            Normally a mortgage is used to buy a house, and you would then repay it over many years, usually 15-30. Interest rates on mortgages tend to be lower than other forms of lending (because of the security that home ownership represents and the payback probability), but because of the lengthy repayment term, the interest over 15-30 years can add up to a considerable sum.
            However, some lenders will provide a further advance (probably in the form of a home equity loan) on a mortgage, for example to buy a car. The interest rate will be much lower than those for personal loans, so it can be a good alternative if you can repay it within a few years.

            How about you all? What options do you currently or have you used in the past to borrow money? How was your experience with it? Did you have trouble paying off the balance in a timely fashion, or did it go pretty smoothly?


            In your experience, has paying off debt been a bigger priority so far in life than saving for retirement? 


            Share your experiences by commenting below!

            Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.

            • Overall, even though I am not the biggest fan of borrowing money/being in debt, I am also a realist and believe that since many people are short on money these days with no emergency reserves, it’s important to fully understand your options of where to obtain money if you truly need it. 
            • Personally, here’s my “mantra” on borrowing money that I feel people should shoot for in their personal finances: only borrow money (and pay interest on that money) in order to invest in and/or build appreciating assets. 
              • What this means is that in general, I believe that people should only borrow money to either:
                • Invest in a businesses, and 
                • Invest in other assets that are able to increase in value over time. 
                • I would also say that borrowing money to go to a public university (NOT an unnecessarily expensive private college, which, in my opinion, doesn’t provide enough of a return on your money to make it worth the cost).
              • All other expenditures should be handled through periodic savings, not through debt. Several examples of things that should not be funded through high interest rate debt are as follows:
                • Vacations/holidays.
                • Cars (It’s now more complex to fully explain why car financing isn’t a perfect solution since many auto dealers are now offering 0% interest rate loans. As such, this will be the topic of a future post).
                • Furniture.
            • So, described above is how I believe people should shoot for operating their personal finances and borrowing activities long term. 
            • However, I’ve learned in my dealings these past two years with blog readers and my friends that a lot of people in today’s economy either a) are already saddled with credit card and student debt and/or b) simply do not make enough money to save periodically in order to buy cars, furniture, or take vacations. Essentially, they feel that taking on more debt is their only choice.
              • As you can imagine, in this case, things become more complicated. 
              • For some non-essential items like taking a vacation or buying furniture, there are options for spending much less money (taking a cheap vacation near-by or buying used furniture come to mind).
              • However, for things like medical care or having an automobile to drive to work, these are essential items that are very difficult to do without in today’s society. 
            • So, all of this is to say that even though borrowing money is not ideal, it is important to know your options so that you can find the best deal. Just keep in mind that borrowing money should not be considered as “normal” in your life. It is only something to use in specific circumstances or when absolutely needed. 

            ***Photo courtesy of http://images.cdn.fotopedia.com/flickr-3274955487-hd.jpg

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