Archive for September, 2009

Lower Overdraft Fees from Some Banks

By: Green Panda | Date posted: September 29, 2009 (9:00 am)

I was reading an article in the NY Times last and saw something that will affect us. Some of the larger banks announced that they are lowering their overdraft fees. This is something we’ll keep in mind as we bank with Wachovia (bought by Wells Fargo).

Why are the banks lowering their overdraft fees?

NY Times reports that:
The moves come as lawmakers and regulators in Washington push proposals to reform what critics say are excessive charges of which consumers are unaware. The penalties, known as overdraft fees, bring the banking industry tens of billions of dollars in revenue annually.

What does this mean for you?

Bank of America and Chase will give customers an option to get out of overdraft protection. NY Times also reports the new overdraft fees will be much lower.
Chase and Wells Fargo will cancel fees for accounts overdrawn by $5 or less, according to separate statements. Bank of America will end fees on accounts that are short $10 or less, it said in a statement.
My personal feeling is banks have to come up with some way to make money, so expect some other fees. If you automate your income and expenses, you can avoid these fees in the first place.

Try online banks as a alternative or supplement

For some people this is a bit of too little, too late. If you want to lower fees and better customer service, look at some of the online banks, like ING Direct. They can offer features that can be a huge improvement over some brick and mortar banks.

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.
  • Earn real interest.

Even if you don’t use it as your main bank, you may have your savings account over there to test the waters. That’s what we did when we tried ING Direct 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, won’t get feed for everything, and can grow your money.

What do you think? Will lower overdraft fees affect your choice in banking?

New Job, New Expenses

By: Green Panda | Date posted: September 28, 2009 (7:00 am)

As I mentioned yesterday, I’m working a 9-5 temporary job for a bit. So while you’re reading this, I’m getting project started with the team. I’m working with some great people, so I think this should go well.

We’re planning on putting this income in our joint savings account and building our emeregency fund up. We also have to save money up for a refrigerator.dollar bill

Before we can save some money with this job’s income,though, we have to tackle some bills first:

  • We need to pay the vet for rabies shot for the cat. He’s due for his shots in October.
  • My ‘ABS’ light came on and off  so I have to call the mechanic today. I’m doing this as soon as the shop is open. I’m glad we have a mechanic to call. 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.
  • I’m going to order contact lens. My optometrist works part-time (semi-retired), so I’ll call his office Thursday.

Over the next few weeks, I’ll keep track of my paychecks and record how much we save. I’m hoping that keep us motivated not to waste the money.

Photo Credit: klynslis

Weekly Round Up: Working a 9-5 Again

By: Green Panda | Date posted: September 27, 2009 (8:00 am)

If one word could describe how I feel, it would be tired. I’m excited and happy with the temporary job and income. Just as income picks up, though, so do expenses. I have to take care of some things that have recently sprung up:

  • Rabies shot for the cat
  • My ‘ABS’ light came on so I have to call the mechanic Monday
  • Order contacts as I finished my last pair

Here’s some of what I noticed this week catching up on posts.

Personal Finance Carnivals

I also want to take a minute and point out two great personal finance shows you should be listening and joining in on: Personal Finance Hour and Frugal Coast 2 Coast. Both are high quality shows that can help you tackle different topics with personal finance and have wonderful communities. I think the strength of these shows rely on the bloggers behind them:

Personal Finance Hour

Frugal Coast 2 Coast

These bloggers are huge pillars in the personal finance community and have encouraged newer bloggers. They get the idea behind building a better network. If you haven’t please consider joining in.

Top Personal Finance Posts From this Week

  • Why My Kids will Drive a Piece of Crap: I really like this post because it hit close to home. I love my baby brother, but I think that he feels an undue sense of entitlement. I had to buy my own cars and they were pieces of crap, but I loved them as if they were a new car right off the dealer’s lot. I spent time taking care of them so I could go to school and work. My younger sister and brother received hand me down cars and did not have to pay for the car or for insurance. Once my sister paid for some of her car expenses, she appreciated the value of what she had. I’m hoping my brother does the same. He’s a good guy, he just needs to learn resourcefulness.
  • How NOT To Suck At Blogging: I’m just going to admit this right now, but I think Baker is an awesome blogger and I’m a huge fan. Love his blog and I LOVE this post.

Have a great weekend!

Congratulations Oblivious Investor!

By: Green Panda | Date posted: September 26, 2009 (10:50 pm)

Congratulations goes out to Oblivious Investor who won the The New Coffeehouse Investor: Book Review and Contest. Hopefully Oblivious Investor should be receiving it later this week.

Check out the The New Coffeehouse Investor.

Check out the The New Coffeehouse Investor.

It’s a good book and I gave a friend my copy to borrow and check it out.

If you’re just getting started with investing or need a guide to point you in the right direction, this a solid book. You’re going to find some useful information like:

  • Finding an asset allocation for your retirement portfolio
  • Indexing the Stock Market
  • Figuring out how much to set aside for saving

If you read the book or want to know more, check out the Coffeehouse Investor site. It has some great information.

Personal Safety and Security Tips

By: Green Panda | Date posted: September 25, 2009 (8:05 am)

Training is over today and we covered a lot of material. One topic we discussed was personal safety.This advice is very helpful for college students and the general public, so I wanted to share some applicable tips for safety. Please feel free to add your own tips in the comments.

Being Safe When You’re Walking Alone on Campus

When I took classes in college, my schedule included some evening classes. While you have to be alert anytime, be especially aware at night. My campus was relatively quiet, but there were still cases of muggings and other things. During class we reviewed osme tips with one another.

  • Stay on well lit areas when walking around campus. Don’t get close to potential hiding spots like shrubbery and doorways with poor lighting.
  • Keep your purse next to your body.
  • Wear comfortable shoes in case you have to run.
  • Beware of ‘black ice’ when the temperature drops.
  • Have your keys ready before you approach your car.

Auto Safety Tips

Have your keys out before getting to your car.

Have your keys out before getting to your car.

  • Drive defensively and be willing to yield to others to avoid accidents.
  • Observe speed limits and wear seat belts.
  • Keep your doors locked.
  • Do not pick up hitchhikers at anytime.
  • Make sure your car is in good operating condition; especially brakes, wipers, and tires.
  • Park in well lit places if you are going somewhere at night. Make sure you have your keys out and ready when you are leaving.
  • Pay attention to your surrounding as you approach your car.
  • If your car stalls and your cell phone isn’t working,  hang a bright rag from your car window. If someone offers help, stay inside the car and ask them to please call the police for help.

What to Do If You Have a Car Accident

Not my favorite topic, but during training we reviewed some things on car accidents. I’ve been a few accidents as a passenger and driver. It shakes you up and sometimes you forget what you should do.

Of course, the health and safety of all parties involved is paramount.  Call 911 if there are any injuries and give the best location description you can of the accident, so that the proper help can arrive quickly.

If you’re in a car accident and you’re not seriously injured:

  • Warn other drivers of the accident with hazard lights or flares.
  • Exchange information (name, address, driver’s license number) with all involved parties.
  • Don’t sign anything from any of the involved parties.
  • Wait for law enforcement to arrive before discussing the accident.
  • Contact your auto insurance to inform them of the accident.

Check to see if your state has any specific requirements for reporting car accidents.

Your Tips

Do you have any tips and ideas to increase your safety when at school or work?

Photo Credit: joelogon

Walking: Good For You, Good For Your Wallet

By: Green Panda | Date posted: September 24, 2009 (8:00 am)

Kelly Whalen can be found at The Centsible Life and on twitter. She writes about getting out of debt, organizing, and family life with 4 kids, 2 cats, a crazy puppy, and an amazing husband. Most days find her walking to and from the local elementary school.

Walking to Save Money and Improve Health

Just over a month ago we go the sad news that our 2nd car, or “clunker that didn’t qualify”, needed at LEAST $2,500 in repairs. The car was worth about that, and we had already sunk $2,500 into it in the last year so we decided to cut our losses. We considered buying another car temporarily, but our goal is to pay off debt, not add to it, so we quickly adopted a one-car lifestyle.

We live and work in the suburbs, so most people find our choice crazy. Fortunately, when we chose our home we chose well. We can walk to a multitude of places, including all the local public schools (K-12th), parks, multiple stores, including Target, many restaurants, and the local Y. I work at home part-time, and my husband works only 7 miles away, so if I do need the car we can drop him off at work.

We have been in our house for 2 years, but in the last month I have walked more than I ever have in the last 2 years. When you take away the other options, it becomes a simple choice!

Walking has become a new way of life for me, and I hope we will continue to increasingly rely on walking to get to where we need to go.

We’re saving money in several ways. The first and the most obvious is the car. We aren’t paying for gas, maintenance, and insurance on our second car. In the first month alone we saved over $200 (not to mention the maintenance that would have cost $3K). We are also saving by not going out as much. The days I’m carless I’m limited to where I can go, so we’re saving an average of $100/month on stuff we don’t even miss. Of course the biggest savings comes from the health benefits. Walking is such a wonderful and cheap exercise!

Other benefits of walking:

  • improved mood
  • weight loss
  • being in more in the moment
  • being a part of the community

If you live in an area where it is difficult to walk from your home, consider parking in a central location when you do errands in town, or in the city and walking to your destination.

If you live in a place that has no option of walking to where you need to go, consider these options:

  • carpooling
  • running errands all at once (start with the furthest away location)
  • staying home
  • parking as far away as possible when you drive somewhere
  • making time for a hike or walk at least once a week

How about you? Do you live in a walkable area? Could you make some adjustments to make walking easier to fit into your life?

Festival of Frugality #196: Juggling

By: Green Panda | Date posted: September 22, 2009 (8:19 pm)

Welcome to the Festival of Frugality! It’s been a hectic week juggling my activities. I’m starting another side job to bring some extra income as we work on buying the house. The Festival’s theme is juggling to reflect what I’ve been doing.

You can juggle anything, just focus on what's important to you.

You can juggle anything, just focus on what's important to you.

It also fits because many of these wonderful topics were hard to categorize as they had some great information. I hope you find what you’re looking for here.

Editor’s Choice

I really enjoyed these posts and think that they offer some good food for thought and practical tips.

Travel and Trips

Two great posts on a topic not mentioned frequently with frugality.

Saving on Bills

If you’re looking to cut down your bills, here are some wonderful articles. Redirect the money on what matters to you.

Banking and Money

Any edge you can get with your finances is great idea. Be a step ahead with these posts.

Balancing family, finances, and fun can happen if you're balanced.

Balancing family, finances, and fun can happen if you're balanced.

Frugal Food

Being frugal with you food doesn’t mean being cheap. In fact, I noticed frugal people tend to care more about food and getting the best value, not just the best price.

Spending

Do you have to spend money to save money? Where does tipping end? Are you allowed to splurge if you’re frugal? Find the answers to these questions below.man juggling

Misc.

These posts didn’t fit a specific topic, but you’ll some useful information.

Photo Credit: madaboutasia, ben matthews :::, and Pixel Addict

The New Coffeehouse Investor: Book Review and Contest

By: Green Panda | Date posted: September 21, 2009 (7:35 am)

I was reading another personal finance book this weekend, The Coffeehouse Investor, and it was a pretty good find. The Coffeehouse Investor has been a popular book for a few years. Schultheis shared his expertise as a stock broker and wrote a guide to help people invest wisely. Now Mr. Schultheis has updated his book and added four new chapters to his guide.

Check out the The New Coffeehouse Investor.

Check out the The New Coffeehouse Investor.

If you are looking at investing and want a book to get your started and give you advice with a winning track record, then you should add this to your list. I’m going to review just some of the chapters to give you an idea on the book’s content and style. It’s not a thick book and the author mixes life stories along with data to keep it interesting.

Introduction

In the preface, Schultheis start off  with sharing his 3 fundamental principles of investing:

  1. Don’t put all your eggs in one basket.
  2. There is no such thing as a free lunch.
  3. Save for a rainy day.

As you go through the book, you’ll see the numbers and data behind his principles.

The Coffeehouse Investor

Schultheis presents examples of how the transaction obsessed many brokers are Wall street are and how people can hurt themselves by following it.

An interesting fact I found was less than 10% of millionaires think of themselves as active traders, and a whopping 42% of millionaires in America makes less than 1 transaction per year for their portfolios.

This Thing Called Risk

Making a case for investing in the stock market, Schultheis provides data on returns from 1926-2008. Looking at one-year, five-year, and ten-year returns, the author shows how long term investing is not as risky as some imagine. The problem becomes when people think in more short term time frames.

Approximating the Stock Market Average

Schultheis lays some hard numbers out on how investing in individual stocks and actively managed mutual doesn’t lead to wealth as advertised. Did you know that only 36% of all managed funds beat the stock market’s average within the last 3 year period? Ramit Sethi also remarked how ineffective many mutual fund managers have been with their returns.

My Thoughts

If you’re just getting started with investing or need a guide to point you in the right direction, this a solid book. You’re going to find some useful information like:

  • Finding an asset allocation for your retirement portfolio
  • Indexing the Stock Market
  • Figuring out how much to set aside for saving

The New Coffeehouse Investor Contest

I have an extra copy of  The New Coffeehouse Investor to give away to a reader. Just leave one comment on this blog post about why you’d like to win this book. I’ll pick the winner this Thursday evening around 6pm EST.

Rules

  • You can only enter once.
  • You must be a resident of the U.S. or Canada

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