Archive for November, 2008

Weekly Round Up: Goodwill Edition

By: Green Panda | Date posted: November 15, 2008 (5:02 pm)

Photo Credit: Williac

It seems like some of the Goodwill stores here have better items than our last place. Three stores in the area have a lot of nice dress clothes and coats for $20 or less. We went to look for a new winter coat for me and while I didn’t see my size; I saw alot of styles I liked. The cost for Ralph Lauren trenchcoat? $12. I’ll keep checking for something my size in the upcoming weeks.

I also found out that Target donates to the one downtown and they have a really good selection of bedding and curtain items. I saw some tan energy saving curtains for $10.  It’s a cheap way to lower your elecric bill and decorate your place. 

 

Top Personal Finance Posts This Week

Creating Our Own Cable, Phone, & Internet Bundle

By: Green Panda | Date posted: November 13, 2008 (5:42 pm)

It's possible to create your own bundle and save money.

Bundling Cable, Phone, and Internet -Always a Good Deal?

Does buying things in bundles really save you money or should you buy a la carte? I decided to show how we saved money and why I agree with Ramit’s a la carte ideas for cable TV, high speed Internet, and phone packages. By taking the time to see what our local cable company offered n their plans, we were able to build a cable, high speed Internet, and phone package that gave us what we really wanted without the extra costs.

It’s not just seeing if we can save money with a package. We need to ask ourselves do we use the cable, Internet, and phone bundle to justify buying the plan. Sometimes it’s cheaper to build your own package.

Time Warner Cable’s Package

Here’s an example using our cable, Internet, and phone company as an example.

Time Warner Cable offers a package for the three:

Standard Cable

$53.45 per month

Road Runner High Speed Online (up to 7 Mbps)

$47.95 per month

Digital Phone Unlimited Nationwide*

$39.95 per mont

Total

$141.35

Wow, this looks expensive, but the features look about right. Before we can figure out a plan let’s see what the cheap bundle look like.The very basic bundle is broken down like this:

Basic Cable

$12.25 per month

Road Runner Lite 768 (up to 768 Kbps)

$19.95 per month for 12 months

Digital Phone Local*

$19.95 per month for 12 months

Total

$52.15

 
*apparently voicemail is an extra $3.95/month

So we liked the price much better, but it didn’t have features we want like faster Internet and unlimited US calls.

My recommendation is to call the cable company to see if there are any specials you can get. If you live in an apartment complex, talk to the leasing office to see if they have any deals.

Our Cable, Phone, & Internet Bundle

Believe it or not,with some planning  we created our own cable, high speed Internet, and TV package. It’s been great for us.

  • TWC Basic Cable $12.25/month
  • Road Runner High Speed Online $34.95/month
  • Skype US/Canada $5.95/month

Total $53.15/month

By picking and choosing a la carte we came out with a bundle that is a dollar more than the cheapest bundle and we have better features for phone and Internet (Skype, a voip phone company, includes voicemail with price).

The beauty is that you can always upgrade later if you decide.

How did we save money on the bundle package?

  • We realized that we don’t watch too much television and decide to go with basic cable.
  • We asked the leasing office and our apartment complex has a special for the high speed internet and signed up.
  • We decided that Skype had the feature we wanted from a landline at the fraction of the cost.

So go look around and see if you can save a bundle by building your own bundle.

Photo Credit:  Midnight-digital

High Yield Online Savings Accounts

By: Green Panda | Date posted: November 12, 2008 (1:43 pm)

 

Photo Credit: Refracted Moments™

People spend time figuring out how to save some money in their budget and then just put cash in a low interest savings account.  There are many banks that are willing to offer higher interest rates for your deposits. If you haven’t already, consider opening a high yield savings account.

All these savings accounts are listed as FDIC insured and currently that is up to $250,000 (until December 2009).

ING Direct Review

We personally use ING Direct and have great customer service with them.

Opening an account

There are no monthly maintenance fees and it is very simple to open an account. Their current rate of 2.75% APY is not the highest, but it’s not too low to convince us to switch.

HSBC Direct Review

Opening an account

HSBC Direct is offering a savings account with 3.00% APY.  Like ING, there are no monthly fees.  Kiplinger has mentioned HSBC as one of the best online banks.

Emigrant Direct Review

Opening an account

Emigrant has the American Dream savings account for 3.00% APY. There are no monthly fees.

ShoreBank Review

I received an email about Shore Bank and its high yield online savings account. Since I really haven’t heard of it, I decided to look u some information.

Opening an account

There appears to be a $1 minimum to open the savings account. There are no monthly fees and the current rate is 3.50% APY. The bank also invests in social and environmental projects.

 

If you’re interested in learning more before you deposit any money, here are some articles I found.

 

 

 

»crosslinked«

No Spend Days and Gasoline Hedging

By: Green Panda | Date posted: November 10, 2008 (7:00 pm)

I’m finally updating on Ramit’s 30 Days to Save $1,000 challenge.  It’s been busy for me, but I really want to keep my goal and updating on the site keeps me focused.

The tip on hedging fuel expenses is something I wasn’t crazy about. l’ll explain why later. I did appreciate tip #7 on having a no spend day. I’m happy with how the challenge is coming along. I even managed to make some money (Tip # 3: Sell on Ebay).

Gasoline Hedging

Ramit’s breaks down how he creates and uses the gas hedge funds. It’s a clever way to prevent yourself from spending money carelessly. He explains how you can be smart with your ‘found money’:

When gas prices were at their highest in San Francisco, I was paying about $4.60/gallon, which was costing me about $60/week. But now, with a combination of lower gas prices and working at home once a week, I’m saving about $15/week off the peak.

Now, you can create an automatic transfer of the money you’re saving and put it in a “fuel hedge” account to protect you when prices go higher.

1. Set up a high-interest ING savings account
2. Open a sub-account
3. Automate deposits into sub account
4. Check every couple of months to see how it is working for you.

I use sub-accounts with ING Direct and I think they’re a wonderful tool. I just prefer to put my little snowflakes (savings) away into either one of three sub-accounts:

  • Savings
  • Debt Reduction
  • VW Repair Fund

When gasoline prices increase I adjust the budget accordingly. I also become a bit more aggressive with my conservation skills. I realize it’s simply an issue of reallocating funds if I just save it, whatever the account name may be.

If I use it for debt reduction, I see that as a long term move. With my car loan being at 13.75%, I get a great ‘return’ on my money. It will also puts a few hundred dollars back into play for my budget once my car loan is done.

‘No Spending’ Day

Creating a “No Spending” day once a week is something that I have followed for a bit. It started as a necessity as I was a broke college student for some time and wanted to keep my meager checking account in the black until my next paycheck. I still try to do this, as I’m working on reducing my debt and building some savings.

Having a no spend day also gets me into the mode of controlling my purchasing impulses. I ask myself why I feel like I have to spend money in this instance. Am I buying food because I’m really hungry or just because my friends are taking big lunches?

I surprised myself because even when I had a good breakfast at home, I wanted to spend money as a way to chat with my friends during break. I try to bring a snack with me and may either get a free water or just buy a drink. (This saves me cost of  meal that would only be half-eaten.) It’s better for my wallet and waistline.

30 Days to Save $1,000 Challenge Progress

For those keeping track of my progress on the challenge:

  • Tip#1 $45/month
  • Tip#2 $10/month
  • Tip#3 has brought me $15 for two books I haven’t used.
  • Tip#4: $10 for an ING Referral bonus
  • Tip#5: $7.25/month
  • Tip#6: $235/month once the car loan is paid off
  • Tip#7: $80/month
Grand Total: $167.25 ===> all of this can continue to be set aside on a monthly basis
Photo Credit: Ramit Sethi

Weekly Round-Up: Museum Edition

By: Green Panda | Date posted: November 08, 2008 (8:16 pm)

Photo Credit: Steve Keys

It’s great to have out of town guests. A dear friend is visiting us this weekend and we’re having fun. Having him over has motivated us to got to the natural history museum downtown and enjoy the exhibits. Even though the ‘regular museum’ is relatively free (donations always welcomed), the exhibit we wanted to see had a ticket price. 

I have to say it was well worth it and besides the good company we had, I also learned a lot about archeology and a different culture. My husband and I had wanted to go to see the exhibit for some time but didn’t. Our guest gave us the ‘umph’ to go ahead and I’m glad we did. I’d recommend going to your local museum for a fun and educational time. 

One thing that is a bit of trouble for me is the gift ship right after the exhibits. On one hand, I’d like a nice keepsake for the occasion, but the prices are ridiculous. I was happy to find some great gifts at $3 a piece. I got one for ourselves, my mom, and my mother in law. 

On different topic, I wanted to draw your attention to a link on the homepage under ‘resources’. This link will take you to FiLife which is a pretty neat site. The site has reviews of checking & savings accounts, credit cards, and CDs. My favorite part of this site is the stacker tool. It allows you to compare how you are doing with others. I use it for my credit score, as I’m working to raise it for when we decide to purchase a home. I like having a ballpark idea of where we stand. 

It also offers some basic tips on improving your savings with the household income stacker tool, like: 

 

  • Make Your Money Work Harder 
  • Keep What You Have
  • Make Sure It Stays in the Family
  • Ask for More Money
In the spirit of disclosure,  this site is a paid advertiser. I’m trying to sign up sites that are relevant to my readers and this had fit the general guidelines. Let me know your opinion on the sites, as I’m trying to improve the helpfulness of the blog and its sponsors. If you happen to see an ad that seems to contradict this theme and spirit of this blog, please contact me about it.

Carnivals I Participated in

Top Personal Finance Posts This Week

 

 

As always, subscribing to the site is the easiest way to be updated. I’m just trying to make it easier for everyone to follow the site.

Alternatives to Payday Loans

By: Green Panda | Date posted: November 07, 2008 (1:41 pm)

Payday Loans and Problems

Payday loans are part of a routine for some people making minimum wage and/or have expenses exceeding their income. While I try not to advertise payday loans (Google Ads might slip one or two), wishing them away isn’t going to help.

Payday loan centers are a business and make their money through fees and interest on their loans.  I don’t have a problem with that aspect. My problem is that many lenders do not explain how it is possible to pay 5x-10x the loan amount in a year. I also had a friend’s sister get repeatedly charged by a shady lender after she paid her loan off and had to close a bank account to end it.

How Payday Loans Can Harm You

A former lender of a payday loan center shared her story.

Rebecca tells how payday loans are rarely two-week loans. Most of her customers came in payday after payday to renew the loan—after the first time, they couldn’t afford to pay it off. Rebecca tells how she and her co-workers explained away the 400% interest rate, and how tough their collection tactics were. And she tells how she came to understand that rather than help her customers, these loans were “keeping them poor.”

What Do You do If You Need a Payday Loan?

It comes down to lowering your expenses or increasing your income. If you can at least do one, you’re in a better boat. Doing both leads to building wealth.

· Prioritize your bills. Housing and food should be first on your list. Being able to see what is really important and what isn’t can help you allocate your funds correctly.

· See why you’re short on money. Did an unexpected bill come up? Was your paycheck shorted? Do you lack a budget or don’t stick to one? Finding the reason can help you avoid being stuck in this situation again.

· Contact the all companies that you’re in debt with and set up a payment plan. If you’re unable to pay the minimum for your credit cards, call them to set up an affordable plan. At the very least, ask them to waive fees and lower your interest rate. Some credit card companies are more willingly to work with you as the economy has hit many families hard. They would rather get some money than no money. Some utilties like electric will work with you on catching up with bills. You have to ask them about their programs.

· Contact your bank or credit union and see if you can qualify for a short-term loan. I’d try a credit union first based on my personal experience. My credit union had better rates than some of the big banks around.

· Sell an unnecessary item. I actually had done times a few times before. I sold some of my video games and DVDs to a store and got a decent amount of cash. I also discovered I didn’t need as many things as I thought I did.

Payday loans are a business and will be around as long as there are customers. If you want to avoid taking out payday loans, then find ways to spend less than you earn. Try out Ramit’s 30 Day Challenge to Save $1000. Even if you can’t save $1000, you’ll have some cash to stash in the bank for an emergency. Building wealth isn’t difficult, but it does take effort. I wish you all the best!

Photo Credit: Pwbaker

AT&T Wireless: Can’t Quite Optimize, May Leave for T-Mobile

By: Green Panda | Date posted: November 05, 2008 (5:54 pm)

Photo Credit:  Ramit Sethi

 

So I’m trying to optimize our cell phone bill based on reading Ramit’s post on lowering cell phone expenses. 

I was going to see if I could downgrade our plan since we have 8,000 rollover minutes accumulated, but that would lead to us losing those minutes. AT&T’s policy:

The following conditions would cause you to forfeit your Rollover minutes:

Changing to a new Rollover plan where your existing Rollover balance exceeds the Anytime minutes of the new plan. Only minutes in excess of the Anytime minutes in the new plan are forfeited. This will take effect at the end of the billing cycle. 

 My husband talked to a representative of AT&T wireless to see if we can get a discount and to see if they’ll offer an Android phone in the near future. Starting with our next bill we’ll see a discount of 8%. As for the Android, no comment can be at this time. For now we’ll stay with AT&T, but I’m looking into T-Mobile as another option.

We’re going to see if anyone we know uses them and how they feel about their customer service and reception.  If we get a T-Mobile family plan with my favs include, we may be able to save $15/month, but it won’t be worth it if service is shoddy. 

At the very least, we saved 8%, that’s $87 for the year with little effort. 

Does anybody have any suggestions (either for or against) on cell phone providers?

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