Archive for February, 2008

Reduce and Eliminate ATM Fees

By: Green Panda | Date posted: February 19, 2008 (9:34 am)
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Keep More of Your Money

My friend was willing to pay $6 in ATM fees to access his own money. That’s insane! As far as I know Bank of America, Chase, and Wachovia are among banks that have the highest ATM charge, $3.00 for out of network users. My friend used a Bank of America ATM this weekend to get cash. (Note: Our friend’s goal was to always know what was in the account.) Banks were getting richer from him withdrawing his money.

I don’t disagree that there should be a fee for out of network customers, but $3 is ridiculous. The good news is that you are able to drastically reduce and in some cases eliminate those ATM fees.

How Can You Save on ATM Fees?

Go to your bank  or credit union’s ATMs to withdraw your money. It may be a little less convenient, but it saves you some cash. This is something completely doable on your part.

You may say that the ATMs are really out of the way and cost that amount in gasoline. I’d doubt you, but maybe that is the case.
If your bank doesn’t have enough ATM machine to fulfill your needs, then you have some options:

  1. Make a bigger withdrawal when you’re at your bank’s/credit union’s ATM. Try ti reduce the amount of trips you make to the ATMs. If you kept track of your spending, you’ll have a general idea of how much money you need to withdrawal. If you want to stay with this bank and not continue to lose money, then you have to change your behavior.
  2. Switch your bank or credit union with more convenient ATM locations. Sometimes we get comfortable with a place and just stay there to avoid headaches. Today is a great time reevaluate the pros and cons of your financial institution. Does it offer no fee checking? Are there enough ATMs to fit your lifestyle? It’s not that hard to switch.
  3. Instead of withdrawing money from a machine use the card to purchase items/services. Buying with your check card make sit easier to track, but if you’re inclined to spend more with a crd, then pass on this one.
  4. If you still need cash, just get cash back from your purchase. There’s the cash back option. I’m not too crazy about this as you have to make a purchase to access it. In some cases it’s cheaper to get a candy bar and some cash then visiting an out of network ATM.
  5. Try using the Allpoint network. ING Direct and other banks use this network for their banking ATM services and it’s a great feature. Why?

Allpoint is America’s largest surcharge-free ATM network. With over 32,000 ATMs, Allpoint is your single source for surcharge-free access coast to coast.

Reduce Tranactions Fees

Look at the five options above and choose which will work on reducing this  transaction fee from your budget. Personally I think #1 and #2 make the most sense, at least for me. Get a better bank/credit union and modify your behavior to reduce charges.

It is unlikely that banks will lower their ATM fees; there’s just too much money involved in it. Almost $4 1/2 billion dollars were collected by banks from ATM fees.

Make no mistake: this behavior is making banks richer while consumers are losing their cash. Don’t be an ignorant consumer. Plan ahead and make sure your bank/credit union treats you right.

Photo Credit: Arthaey

We Got Cards!!

By: Green Panda | Date posted: February 18, 2008 (9:09 am)

My husband and I got home from visiting my mother out of town. When we came home, my husband checked to see if any mail came. We found out our car insurance premiums will go down $20/month. Yea! We got even better news, a school program we donated through donorschoose.org sent us a thank you note from the teacher and some cards from the students.

To give you an idea ,here’s the program description from the teacher:

I teach 8th grade English at an inner city middle school. With tightened budgets, it has been impossible to get classroom sets of high interest books that our students will read with enjoyment. During the 3 years that I have been teaching at the school, no class sets have been purchased for student reading and enrichment in my classroom.

Students will recognize the power of words to affect change as they read, write, and increase their vocabularies. They will become more tolerant of others and appreciate differences.

If we acquire the books that I have requested, ‘Diary of Anne Frank’, ‘Zlata’s Diary’, and ‘The Freedom Writers’ Diary’, my students will recognize the power of young people, to promote awareness of issues and to even change policies.

I believe that my students’ self-esteem will be improved, their knowledge of the world around them will be improved. I believe that they will identify with adversities in the literature and will recognize that they can overcome many obstacles.

We will read the books, we will write journals, and respond to the readings. We will create a tolerance project which will include audio and video presentations, letter writing, and a field trip. We will identify a cause affecting young people which we will embrace and support as a class.

In addition to boosting reading skills, donors who select this project will be promoting tolerance and global awareness and concern.

The pictures were wonderful as we got to put faces with the site. Since these are minors, I’m leery putting their pictures up without permission. We didn’t by any means donate much money (we‘re not rich in case you didn’t know), but if you read the cards, you’ll get a sense of how much these students appreciate the books.

Here’s two of the cards we got:

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Let me say that it made my day.

If you want to support a charity, but have no idea which one, please consider Donors Choose. It’s easy and quite affordable. Myfirst donation was $25, which was scraped up with not eating out for a week. You choose the project that means the most to you personally.

I enrolled in my company’s 401(k)

By: Green Panda | Date posted: February 15, 2008 (1:38 pm)

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Photo Credit: David Dennis

I’m excited! My one year anniversary was a bit more than month ago, so I can enroll in my company’s 401(k) program. I’ve been bugging Human Resources to try and get my benefits. I wasn’t pushing for the health insurance since my husband’s plan is cheaper and has better coverage.

When we did our taxes, we were advised to contribute more to retirement. I currently have an IRA and my husband has a 401(k) with his company.

I’ve been bugging Human Resources to try and get my benefits. I wasn’t pushing for the health insurance since my husband’s plan is cheaper and has better coverage.

I’m currently signed up to contribute 5% of my income which is the maximum that the company matches. I want to get as much free money as possible. I’m not allocating a higher percentage yet because I need whatever money I can save going towards paying down the car loan. Once the car loan has been pay then my retirement contributions will increase.

I want to continue on my retirement contributions. They not much in amount but I’m trying to maximize on the power of compound interest (Thanks Ramit!)

There some choices for allocation, but less than what expected from a company this size.

I’ve currently divided it with an aggressive target fund, an index fund of the S&P 500, and an index fund of ‘stable and established’ international companies. Surprisingly those were the only two index funds I saw.  I went with the aggressive target fund because the expense fees were low and it fit my goal of aggressive growth. The other options didn’t appeal to me as many of them had high expense fees and they were did worse on the 5 year average then index funds.

I made sure that I got no load funds. I’m already on a budget, no need to give my money away. How do I know this? Researching on line gave me this information:

It’s a commission that has no real benefit for you. The Fool.com observed:

….that there is no real difference historically between the performance of load funds and no-load funds in terms of year-to-year performance. In fact, according to the latest survey by the mutual fund data analyzer Morningstar, even excluding the drag on returns if the load were included in the calculation, no-load funds actually have a superior record to load funds over the last 3-year and 5-year periods.

This fact is also confirmed on the U.S. Securities and Exchange Commission’s site!

One thing that bothered me was the customer service. The representative was nice and friendly, but did not recommend the best fund for me. She had me birth date and other my account in front of her. Here’s the gist of what happened:

Me: “I’d like to get a target fund for my age.”

CSR: “Ok, ma’am (wow, I’m a ma’am now  J  ), *talking to self* 26…ok we have a target fund for 2020. Would that be fine?”

Me: “*pause* …excuse me did you say 2020?”

CSR: “Yes. Would you like to enroll in it?”

Me:: “No, I’m looking for something more distant and aggressive. I’m 26.”

CSR: “*pause* We have a 2030 and a 2040.”

Me: “I’ll sign up with the 2040 if that’s your most aggressive.”

CSR: “Yes. It is.”

So she was originally thinking of giving a 26 year old a retirement fund set to expire in 12 years. Well, it’s Friday, so maybe she started the weekend early. I know I would if I could. After I got my account set up I went online and tweaked everything in my account.

How is the 401(k) at your jobs? Do they give you options or is it limited? When did you qualify to enroll in it? When did you actually enroll?

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Organize Your Finances

By: Green Panda | Date posted: February 14, 2008 (3:15 pm)

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I think the biggest barrier for people trying to improve their finances is getting started. We may start and get halfway done on a budget only to then quit following it within the next two weeks.

The key to coming up with a plan that works for many people is making it easy to do and even easier to maintain. Here are some steps you might want to consider:

  1. Simplify your accounts. Clever Dude had 10 accounts and he’s slowly consolidating them to make it easier for him to track. If you have several accounts lying around, see if you can reduce it. It’ll save you time from trying to remember what goes where and you can qualify for better rates if you balances are higher.
  2. Track your actual spending. Unless you follow your budget to the T, then get online with your bank and download/print last month’s statement. Add up the different categories or use some money management software to automate it. See what your biggest expenses are.
  3. Pick 1-2 areas to work on for the next month. Don’t try to ‘fix’ everything at once. Build some momentum by working on one or two areas of your budget. My suggestions are eating out and movie tickets/rents. These are two unnecessary expenses. Put a note in your wallet about your goal for the month. It’ll be a reminder to cut back.
  4. Only try to reduce those areas, don’t just cut them out completely. You don’t have to abstain from these activities, but be choosier with the expenses. Do you have to eat out every day? Can you have leftovers for lunch twice a week? It’s better to start somewhere then plan everything.
  5. Keep your receipts in a small pile on your desk. If you keep it in the car or at work, you’re less likely to check what you’re spending. Keep it by your home computer. It takes less than 5 minutes if you do it 3 times a week. Remember if it’s easy to do, then you’re more likely to do it. (Not guaranteed because of the laziness factor of some people.)
  6. Repeat steps 2-5 for the next area. Now that you’re working at it and seen it work, then move on to another area you feel you can improve. It’s an ongoing process, but if you chip at it, then it’s much easier.

What gives you a hard time when working on your finances? What part of your spending was easiest to cut down on? What expense was the hardest?

Photo Credit: Aaron Jacobs

Rich College Student: Emergency Fund 101

By: Green Panda | Date posted: February 13, 2008 (1:55 pm)

Feed me my pennies!!!

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Keep your money safe with a proper emergency fund.

Everyone needs  an emergency fund whether you’re in debt or not, whether you make a lot of money or not. College students are not exempt from it. Bad things happen and usually it is at the worst possible time. An emergency fund can gilave you some control over your situation.

Here are some frequently asked questions about emergency funds, if I left anything out, then please let me know. If you have any tips or stories about building and using an emergency fund, please share them.

How much do I need?

Ideally you should have 3-6 months of expenses in your emergency fund. The key is to look at essential expenses like food, rent, gasoline, etc. This does not mean movie tickets, bar money, etc. If you have high interest debt, like credit cards, then tuck away $500-$1000 away first then go ahead and pay that debt down as fast as you can. Build up the emergency fund to the point that if you lose your job, you’re not immediately having a meltdown.

How can I save for one?

Here’s a reprint from my post, Easy Ways to Get an Emergency Fund Started:

  • Look at your package deal for cable, phone, and Internet. Sometimes the deal they advertise on TV isn’t the best deal. Call your cable provider to see if they can give you a better rate. It works sometimes, but if they don’t, then consider cutting back on the cable package for a month or two, just to get your emergency fund started. You may not notice a big difference and keep the change. Either way you can save $30-50/month for this and that’ll help with your fund.
  • Examine your cell phone plan. Can you change your plan? With Alltel you can change it without getting an extension on your contract. I’m sure about the other plans.
  • Look at your land line plan. It didn’t make sense for my husband and I to have a land line AND our cell phone plans. So far, so good. If you must have a land line and a cell phone, you may want to take off long distance with your land line. More and more people are ditching the landline. You may want to find the best cell phone plans in your area, pick one that suits you and make it your primary phone line.
  • Compare insurance companies for auto insurance rates. I saved $50 a month on car insurance for the same amount of coverage. Shopping does pay off. Just make sure you’re given a policy that can comfortably cover you and your situation.
  • Go during happy hours when you decide to eat out. I know that many college students hang out as a part of the cultural, so it would be impractical to tell you stop going out, but at least save money while you’re there. There a great place down the street that offer 50% drinks and has 50 cent tacos. So we plan our eat outs around that time (4pm-7pm). It’s still just as fun, but a lot cheaper.

The article also gives a step by step process of automating your system.

Lynnae at Being Frugal also has some ideas on building your emergency fund when money is tight:

    • Use financial windfalls to build up your savings. Tax returns, inheritance money, unexpected gifts…..when you receive “extra” income, deposit it straight into savings. It’s tempting to want to blow the extra, but don’t do it. You will feel much better knowing you can afford to have the car repaired if it breaks down.
    • Snowflake toward your emergency fund. Do online surveys for a little extra cash. Sell a few things on eBay or Craigslist. Sell your books on Amazon or half.com. You could even pledge to only spend paper dollars. Put any change toward your emergency fund. There are lots of ways to “find” extra money.

Where do I put my emergency fund?

Put your money into a high yield savings account. I keep my emergency fund at ING Direct. There are several other banks like Emigrant Direct and HSBC Direct. The point is that you’ll put your money somewhere where it will grow faster since it has higher interest rates than at a conventional bank. You don’t want to be risky with your emergency fund, so that’s why you wouldn’t invest in stocks with that money. You also need it easy to access in case of an emergency. You need keep it apart from the account that you spend. You want this money to grow undisturbed.

Can I Use My Credit Card For an Emergency Fund?

NO!!!! If you’re depending on your credit card to bail you, then you have a financial problem.

What qualifies as an emergency?

Basically an emergency fund is for an unexpected expense that will ruin your budget. This is something that is necessary, ie. Your car broke down and you need it repaired so you can go to school and work. Tapping into the emergency fund for a concert that you just found out about and didn’t save for already is not an emergency.

Photo Credit: Cliff Johnson

What’s in My Wallet?

By: Green Panda | Date posted: February 11, 2008 (8:22 am)

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Photo Credit: Kaleid 

“What’s in Your Wallet?”

Answer: “Not a Capital One Card”

PT tagged me to share my wallet’s contents and I guess I’ll spill my guts…er…wallet. It’s not exciting, but it’s working for me.

Here’s what I have in center of my wallet:

  • Driver’s License (I don’t like the picture, so it’s hidden.)
  • ING DIRECT Electric Orange Debit/Credit Card
  • Local Credit Union Debit/Credit Card

I have a left section for medical:

  • Medical Directive (Easy to find, if I’m unconscious it lists my medical conditions and contact information for my husband.)
  • Blue Cross Blue Shield Insurance Card

I have a right section with one pocket:

  •   A copy of my Car Insurance information in there.

I currently have $20 in my cash fold and no change. I put change in the jar at the end of the night.

Note: My policy is not to keep my credit card in my wallet unless I’m on a trip.  I’ve been known to keep it in there for a few days after a trip because I can be a bit lazy. This little trip has helped my keep my credit card spending to a minimum. I do pay my balance in full each month.

Yeah, I keep my wallet light, but it’s easier for me to spend less using this et-up. I want to thank my friend “Ani” for picking me up this wallet. Interested to find what’s in other people’s wallets? Here’s a few on the web:

Another Reason Why I Hate Bank of America

By: Green Panda | Date posted: February 08, 2008 (1:53 pm)

I’m so glad Ana from DebtFree Revolution brought this scheme to her readers’ attention. I felt so outraged about this rate jacking that I want to pass this on to people that could possibly be affected.

Business Week released an article about the rate hike. Even Bank of America’s spokesperson had no reasonable explanation.

Bank of America had sent out a letter to its customers notifying them that their rates would increase. In fine print there was an opt-out clause requiring them to send a letter to Bank of America. Interestingly, calling the bank is not an option. If they did not do this then their old balances and new balances would increase.

The shady part of this hike was how Bank of America was calculating it. Business Week explains it:

What’s striking is how arbitrary the Bank of America rate increases appear, credit industry experts say… JPMorgan Chase (JPM) and Citigroup (C) announced ahead of Levin’s hearing that they would stop the practice of raising card rates based solely on FICO scores.

But Bank of America appears to be taking an even more aggressive stance because, beyond credit scores, it is using internal criteria that aren’t available to consumers. That makes the reason for the rate increase even more opaque.

I’m glad we didn’t get a credit card from Bank of America. What can you do? Here’s some things I thought:

  • If you have a card with them and a balance on it, please opt-out of this rate hike. They make it difficult, but spare yourself a larger headache.
  • Try to pay the debt off as soon as possible. You may want to use your income tax return if you got one.
  • See if you can transfer the balance to a card with a lower rate, preferably one with 0%.
  • Try to pay the debt off as soon as possible.
  • If your Bank of America card is one of your oldest cards, don’t cancel it, as it could lower your FICO score. Just don’t carry a balance on it.

I understand banks are a business. What I don’t get is when they try to increase revenue by hurting their customers. That’s so short-sighted.

If you’re looking for a different bank, try ING Direct or a local credit union. I use both and I’m satisfied.

How to Remove Your Phone Number Off of Google

By: Green Panda | Date posted: February 08, 2008 (12:50 pm)

Google Knows Where You Are

 

 

Do you check random things like I do? I have checked to see if my phone number was listed on the web. I checked my number and it was not listed on Google or ZabaSearch and neither was my husband’s number. Whew, a sigh of relief.

What if it was though? How could I remove my number off of Google?

I did what any self-respect writer does when I posed with a question, I researched. How did I go about this intricate and deep probe? I typed into Google Search “How to Remove Phone Number Off of Google”. Guess who had the #1 answer? Google! It’s not  complicated. Here’s all you have to do:

  • A Phone Icon will be next to your number, click it.
  • Fill out a form requesting that you have your number removed and submit.
  • Wait 48 hours and check to see if it actually was removed.

Note: This is a permanent request. You cannot change your mind and add it later.

Also it should be noted that you may also check to see if any other website has your number (White Pages, etc) and requested them to remove your number.

It’s easy and it only takes a few minutes.

If you enjoyed this post, please check some of my best personal finance posts.

Photo Credit: garryknight

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