Archive for June, 2009

Carnival of Personal Finance #211: Burn Notice Edition

By: Green Panda | Date posted: June 30, 2009 (8:00 am)

Welcome to the 211th Carnival of Personal Finance! this week’s theme is based on a new favorite show I’ve been catching up on: Burn Notice. 

If you’re not familiar with the premise, the main character, Micheal Westen, has been let go as a spy is trying to figure out why. He’s in Miami working with his ex-girlfriend, old buddy, and his mom on small cases to keep afloat.

 

Editor’s Choice

As with many people, Michael doees not have endless resources in terms of cash, but he has a quick mind and is able to adapt. Handling your personal finances often means finding ways to make each dollar count. 

burn notice cast

 

Banking and Savings

Protecting your finances often means be savvy with banks and your savings. You want to get great customer service and a way to wisely use your money.

Budgets 

Some people feel restrained by a budegt, but usually that means they haven’t found a method that works for them. Be realistic with your planning and make sure you automate the tedious work  and it’ll seem so much easier.

Credit Reports and Government

Your credit score is a now a big factor with lenders. Be smart and keep your score healthy. Be wise with government programs to make sure it’ll really benefit you. 

burn notice couple

 

Debt Reduction

Reduce your liabilities is a way to build up your net worth and give you some peace of mind.

Money Questions

Smart people ask questions and financial geniuses apply the answer. 

 

Money and Psychology

Don’t deny the fears, habits,and goals you have with money. Learn to be proactive and sucessful.

burn notice couple 2

 

Investing and Retirement

Planning ahead is a way to have more control over your future. Investing and retirement both need a cool head and a strategy. 

Saving Money

Keep more of your cash in your pocket.

  •    Ultimate Money Blog talks about green living and frugalitywith Sweating My Buns Off!
  •  InsureBlog has the latest information in HSA Update: Early Summer Edition.
  • Christian Finances gives you some Tips for decorating on a budget.
  • No Debt Plan shares his expirience with Frugal Lawn Care: Using an Electric Lawn Mower.
  • The Paycheck Chronicles shows you a way to see if you can afford a new car payments Want a New Car? Try This Plan.
  • Miss Bankrupt shares her on list on What not to buy at Dollar Store.

    • sandy burn notice

    Misc.

    Some things just don’t fit in a box. These articles have some great ideas for you to look into. 

    Photo Credit: friskytuna

    »crosslinked«

    What to Carry in Your Car for Emergencies

    By: Green Panda | Date posted: June 29, 2009 (3:06 pm)

    The best way to save money is to prepare for emergencies. A couple of years ago, we went down to vist my mom and the tire went out. I had a spare tire to put on, but it was a little flat. We had to drive some miles before we hit a gas station that had an air pump. Now I try to check on the spare tire to make sure it is properly inflated.

    Being prepared is usually a very good thing.I decided to include a list of things you might need for your car.

    • First aid kit (A good one can be found for $10)
    • Flashlight (Wal-Mart has a large one for only $3)
    •  Fix-a-flat
    • Jumper cables (this has helped me numerous times)
    • Rags (old T-shirts, etc.)
    •  Road flares

    If I forgotten something, please add it with a comment.

     

     

    How to Find a Reliable and Affordable Mechanic

    By: Green Panda | Date posted: June 26, 2009 (1:05 pm)

    This week has been expensive for my car! I had a major repair and my state inspections completed I’m glad the car is paid off, so this wasn’t a huge burden. It still is a big chunk of money. 

    We just had the catalytic converter replaced for my VW Jetta. After shopping around, we decided to go with our usual mechanic shop and it was $700. We’ve been with this mechanic shop for over a year and it has worked out well. 

    My car has over 130,000 miles on it, so it was not a completely unexpected expense. 

    grey vw jetta

    I have to admit, though, I didn’t really plan when I bought the car. When this car dies and I get another on, I’ll do more research on maintenance. I will say this, though: I’d rather keep this car and fix it occassionaly than get another car payment. I know everyone is different, so this is just my perspective on our situation. 

    If you’re a VW owner and want to learn more, AutoHauz has some reasons why you want to keep your VW’s emissions system in good shape. 

    Tip #1: Increased fuel consumption, driveability problems (hesitation or surging), “Check Engine Light” lit or emissions test failure could all be signs of an oxygen sensor in need of replacement.

    Tip #2: An additional consequence of any oxygen sensor failure may be damage to your Volkswagen’s catalytic converter – a very expensive way to find out your oxygen sensor needs replacement!

    Tip #3: Checking the operation of the oxygen sensor and feedback control system should always be a priority anytime a vehicle fails an emissions test due to high HC or CO.

    Tip #4: Keeping your Volkswagen’s oxygen sensor(s) fresh may improve fuel economy as much as 10%-15% (which can save $100 each year in fuel costs on average). Keeping the sensor in good operating condition will also minimize exhaust emissions, reduce the risk of costly damage to the catalytic converter and ensure peak engine performance (no surging or hesitating).

    If you’re looking at a big car repair down the road here are some tips we’ve used to get a reliable mechanic shop. 

    Finding a Good Mechanic

    Here are some tips for those looking for a dependable mechanic. 

    • Look for a quality mechanic before you need a big job done. Make sure the shop has ASE certified mechanics and experience dealing with your car’s make and model.
    • Start small and build a relationship with a shop. How was the customer service? How well did they do the job? Did they go the extra miles? If they do well with smaller repairs, it gives you a bit more peace of mind.
    • Consult your owners manual for the schedule of replacement. You want to check the recommended miles and time for replacements.
    • Price shop to double check that your price is reasonable. I still called around to see what the price range is for the repair to make sure I’m getting a good deal. Cheapest doesn’t mean quality, but I don’t want to be at the top end either.

    I called the dealerships to get an idea of how much the part and repairs cost and they didn’t give me an estimate or a ballpark figure for labor. I did find out it’s $550-$560  for the part.  

    I’ve always had good service with the shop and their estimates are very close or I end up paying less when I pick up the car. 

    For my state inspection, I passed, but only after I got my right rear braking  bulb replaced. I had forgotten about that, but it’s now good to go. 

    Mechanic Recommendation

    By the way if you’re in the Hampton Roads area and need a great mechanic, please call Jason’s Big Truck & Auto at (757) 717-3160‎. He was our mechanic before we moved and he was fantastic! 

    Leave a comment with your mechanic and a story about why they are great to share a good mechanic with other readers.

    Photo Credit: Kevitivity

    Find a Bank That Works For You

    By: Green Panda | Date posted: June 23, 2009 (9:52 pm)

    If you’re looking for options on your bank accounts, I want to point out that we keep our joint checking account with ING Direct and we really enjoy it.

    They don’t have the highest rates, but their customer service has been great for us, so we’re staying with them for now.

    100 bill

    Have your money grow instead of getting fees.

    ING Direct: What We Like About the Bank

    Here what I personally like about ING’s Electric Orange checking account:

    • No fees. There’s no minimum balance on the account.
    • If the money is not in the account, they won’t pay the bill. This sounds like common sense. No money=no payments. Bank of America will just pay your bill and then fee you, which in turn can create more transaction fees. A relative actually had a horrible case when her monthly salary didn’t come in as scheduled (HR error) and Bank of America went ahead and charged her fees of hundreds of dollars.She explained to the bank what they error was, but to no avail. Fortunately, she went to her job’s Human Resource Department and got reimbursed for this problem.
    • Earn real interest. Unlike Bank of America, where our money was growing very,very slowly (a few cents every three months), ING had us earning a few extra dollars a month. With the rates lower now, it’s not getting higher, but much better than our old bank.

      How our old bank treated our savings.

      How our old bank treated our savings.

    Ok, here’s the gist of the savings account benefits:

    The Orange Savings Account

    • Better rate than my brick and mortar bank – no minimum balance required, a nice bonus.
    • No fees – I don’t have to worry about low balance fees.
    • 24-hour access to your account – You can login and transfer money quickly and easily.
    • FDIC-insured – It’s just like any other FDIC insured bank, your protection is up to $250,000.

    If you’re interested, I can email you a referral link. If you don’t have $250, please still sign up for asavings account. It’s a great deal and you deserve to see your money gain interest.

    High Interest Checking and Savings Accoounts to Check Out

    There are several other high interest savings accounts, if you are looking for other options. Don’t forget to check out their current rates.

    Just open an account somewhere that you feel comfortable and grow your money.

    Your Thoughts

    Have you switched your bank accounts? Why did you choose it? What do you like about it? Do you have any tips on switching?

    Photo Credit: TheAlieness GiselaGiardino²³ and colin.brown

    WalletWhiz Review and Contest

    By: Green Panda | Date posted: June 22, 2009 (7:02 pm)

    I contacted the people at WalletWhiz and they were kind enough to give me a code to review their app. They were also generous enough to give me a code for one of my readers! walletwz_bigger

    If you haven’t seen it, WalletWhiz is a budgeting tool for recording your spending habits against a budget.

    What I think is a bit unique and handy with WalletWhiz is the choice of tracking your budget with a calender view or the usual categories option.

    WalletWhiz has a wonderful calendar view to track your budget.

    WalletWhiz has a wonderful calendar view to track your budget.

     

    I’ve used WalletWhiz’s calendar view to keep track of my spending with eating out and gasoline. WalletWhiz has you decide the length of a ‘period’. For me, I used a month as my tracking period, but you can adjust that to your goals and use. 

    I found it handy to immediately enter my expenses as I made hem instead of holding onto receipts and hopefully remembering to put them in. 

    It’s a helpful app for only 99 cents so you’d want to get it even if you don’t win the contest. 

    I also dug up some other wonderful benefits of WalletWhiz’s app:


  • Export transactions to CSV format so you can easily view and re-use the data in your spreadsheet or financial application of choice;
  • Easily protect your data by setting a passcode;
  • Experience the benefit of iPhone’s built-in support for your currency and language

    • Twitter Contest for WalletWhiz 

    Winner receives the following prize:

    • 1 Code for a free download of WalletWhiz app for your iPhone/ iPod Touch

    To Participate:

    walletwz_bigger

    • Follow me on Twitter
    • Send a Tweet with “Win a copy of WalletWhiz http://bit.ly/walletWhiz #gpt Please RT! “
    • 1 entry per day per account (up to 5 chances to win) If the winning entry is a ReTweet, the original tweeter is considered the winner. 
    • Winner with be drawn using @tweetaways. Winner will be drawn on Friday, June 26,  2009 at 5:pm EST.

    Thanks again to WalletWhiz for providing the prize! Please follow them

    Weekly Round-Up: Five Cent Nickel

    By: Green Panda | Date posted: June 21, 2009 (12:11 pm)

    I’ve been writing weekly posts at Five Cent Nickel for the past couple of months. So far, I’m really enjoying it as it’s given me an opportunity to write for another audience, learn from Nickel and Matt’s writing styl e,and introduced me to some wonderful people.

    My main focus is still Green Panda Treehouse and I’m hoping that you’ve noticed an improvement on my posts here due to my other writing projects.

    Tomorrow, I’ll be having a giveaway for a free iPhone/ iPod Touch app called WalletWhiz. It’s a budgetting calender app that I think some of my readers could really use. Please check it out and spread the word. 

    Personal Finance Carnivals

    For those of you who already have and for those who would like to support my writing efforts at Five Cent Nickel, I want to say thank you. 

    I want to grow Green Panda Treehouse into a better site and have a bigger audience. I truly feel that writing at Five Cent Nickel on a weekly basis is a step in that direction.  

    If you have a moment or tow to spare, here are some ways you can support the posts both here and on Five Cent Nickel:

    Share your thoughts and stories in the comments. I’d like to have different view points on a topic. Comments help develop a good discussion and we can all benefit from each other’s perspectives. 

    Share your favorite posts with a friend. If you think there’s a post that someone specific would enjoy, please email them the link to the site. Hopefully if they enjoy the post they can subscribe through email. 

    Promote it on the web. If you love social media sites, would you please ocnsider highlighting some of your favorite posts on Twitter, Facebook, Tip’d, PFBuzz, or whatever you use. I’m on those previously mentioned sites, so please chat with me if I’m online!

    In case you missed any of the posts, here’s the entire list so far:

    Five Cent Nickel Weekly Posts

    Have a wonderful weekend!

    My IRA’s Asset Allocation (June 09 Update)

    By: Green Panda | Date posted: June 18, 2009 (8:57 pm)

    Since I spoke a bit about my Roth IRA, I want to share my asset allocation to give you an idea of how the money is distributed.

    What is asset allocation?

    Asset allocation is your plan for your investment contributions. Are you going to put it in stocks, mutual funds, bonds, ETFs, etc?

    Whatever choice you make, there is a risk involved. Stocks tend to preform well in the long run, but there is the risk of volatility. Bonds offer less risk in volatility but you also tend to get a smaller return.

    Why is asset allocation important?

    According to Financial Analysts Journal, asset allocation is huge factor in a fund’s variability. A benefit of having the proper asset allocation is to fit your goal of aggressive growth in the long term, stability of your money in the short term (for people retiring soon), or somewhere in between.

    If you’re retiring in a few years, don’t keep most of your investments in stock. You should be focused on stability as you’re planning on withdrawing the money and living off of it for a couple of decades.

    My Roth IRA’s Asset Allocation

    I started setting aside money for retirement when I was 21. Unfortunately when I switched jobs, instead of rolling it over, I foolishly cashed it out. I started again and opened up an IRA.

    After learning about the advantages of Roth IRAs, I moved my money into one. Right now, here’s what the asset allocation is:

    Roth IRA Asset Allocation

    I currently have my IRA at Sharebuilder. If you’re looking for a place to open up an IRA, here are some places to consider:

    • E-Trade (Annual fee and minimum are waived when you sign up for electronic statements)
    • Vanguard (Some funds require $3,000 minimum)
    • T. Rowe Price
    • Charles Schwab ($1,000 minimum is waived if you direct deposit $100/month)
    • Zecco( No minimum to open; $30 annual fee)

    I’m trying to adjust it to following a bit more of the David Swensen’s investment portfolio model. I use a mix of index funds and some ETFs in my Roth IRA.

    My general guideline for my Roth IRA.

    My general guideline for my Roth IRA.

    Chart: NPR

    I’m going to direct future contributions to base it around the Swensen model, even though I may keep less bonds than what he suggests.

    Just remember, the sooner you start saving for retirement, the better compound interest will treat you.

    Ask Reader’s Thoughts

    What’s your allocation for your investment account? How did you decide on them? Any tips or suggestions?

    Financial Guru Review: Suze Orman

    By: Green Panda | Date posted: June 17, 2009 (4:00 pm)

    This week’s Financial Guru Review is about Suze Orman. Suze is the author of best selling books such as Women and Money, The Road to Wealth, and Young, Fabulous and Broke.

    Suze is a very popular personal finance guru. She’s appeared many times on Oprah as a financial advisor and she has a show on CNBC. She’s also on Twitter and answers many questions sent to her.

    Suze Orman on Getting Out of Debt and Credit Cards

    Before 2009, Suze Orman’s advice was to use extra money to pay down your debt first. Now Suze is advises paying minimums on your debt until you have a solid emergency fund of 8 months.

    Suze explains exactly why she has changed her advice:

    With rising unemployment, having a big emergency cash fund is vital, even if it means curtailing your credit card repayment strategy.

    The sad reality is that the credit card industry is taking actions to protect themselves with no regard to your needs or how good you have been about paying your bills on time. …

    Many of you are even finding that when you do  finally pay off your credit card debt that the  issuing credit card company of that card is closing that card down as fast as they can so you cannot ever charge on it again. You did everything right, and yet still you could have your credit limit reduced, which can have a negative impact on your credit score…

    If you do not have a stash of cash in an emergency fund and you have been using all your extra money to pay down your credit card debt and they keep closing your cards down—what are you going to live on if you lose your job?

    I think she brings up a valid reason for building up an emergency fund before attacking high interest debt. This revised advice is an acknowledgement of what’s going on today with unemployment and credit card companies.

    My only concern is, how long it would take a family to build up their funds while their high interest debt is climbing?

    I do agree, though, that you should have a cushion set aside, I’m more inclined towards 3 months aside, and pay down debt with a small amount going towards fattening the emergency fund.

    Suze Orman on Building Wealth

    Suze is a big believer is building up and maintaining your FICO score. She has created services and products on monitoring and working on your FICO scores.

    Why is this important? By having a solid FICO score you can decrease your rates for car loans and mortgages. It’s a huge gain for you and save you thousands of dollars in interest.

    She also advises taking advantage of your employer’s 401(k) match while paying down debt.

    Her Recession Rescue Plan, as shown on Oprah, includes the following steps:

    1. Live on half your income. If you’re a two income family, appreciate your circumstances and see if you can cut your expenses.

    2. Put your all your savings into an emergency fund. Any expenses saved goes towards build your 8 month emergency fund.

    3. Use the stimulus package to help. If you’re laid off you can receive some assistance with your COBRA premiums. She also mentions the $8,000 tax credit for first-time home buyers. As always, Orman advises people to check their budget to see if this is feasible for them.

    4. Make sure your mortgage is affordable. Suze and Oprah provide links and information on The Homeowner Affordability and Stability Plan, which can help you modify your home mortgage with your lender.

    5. Focus on what you have. The last step in the plan is to focus on being appreciative on what you do have.

    Suze Orman and Buying a House

    Suze, like Dave Ramsey, encourages buying a home not based on what a lender tells you can afford, but what your budget can afford.

    Unlike Dave Ramsey, Suze advises not paying off your mortage until you’re around 45 and don’t have any plans of moving for a long while. She also point out that a home’s price doesn’t exceed inflation by much. Don’t anticipate your retirement based on it growing as quickly as it did with the last buble.

    My Tought on Suze Orman

    I found her Young, Broke, and Fabulous book helpful for those looking for a  foundation in finances. My only qualm is I wish she ran more numbers on some of her books. Her strength, though, is motivating people to get started, so that is a huge success right there.

    If you want more numbers, you may want to check out Suze’s Road to Wealth. It’s a good resource and it can point you in the right direction fairly quickly.

    What are your Thoughts?

    With everything, find out if this advice is useful for you. No one is going to care about your finances like you do. Following the guidelines of a financial guru doesn’t get you off the hook for personal responsibility.

    Do you listen to financial gurus’ money advice? If so, which one? Is there a financial guru you’d like me to review?

    My Life ROI shares his thoughts on Suze Orman and reviews her NY Times Magazine interview.

    Other Financial Guru Reviews

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