Pay off Student Loans

Here's a trick to causing a little less pain during your student loan repayment years, and also a great way to stack up some savings to boot!
So its been 10 years, and guess what? I finally paid off my student loans-AND it ONLY took 10 years! Ach.

When I initially took out the loan, ten years to repay seemed like forever*; And as I was diligently paying my sum every month, it still seemed like forever...for the first couple years anyway!

However, as soon as I opened a separate checking account for some of my longer term loans (i.e. student, car, etc.); then, set up direct deposits from my paycheck into those accounts; and finally automatic loan payments from those accounts...everything became different.

Once these payments were out of sight-out of mind, these loans felt like they paid themselves off without me having to do a thing! The key was setting up this completely separate account (preferably at a different financial institution). This way, I did not even count this money into my budget every month since it never landed in my primary checking account.

This works for longer term loans (or short term loans), but also for savings. If you set it and forget it, and the money never hits your primary account, it will grow and grow (or pay down and pay down) without you even thinking about it! Before you know it, you will have a nice cushion in your bank account or a loan paid off.

I would definitely recommend at the very least setting up a separate account for your student loan payments. Most of us are on the 10 year repayment plan...and that can get long, so set it and forget it (especially if you have a decent interest rate...remember you want to focus on paying down your high interest debt FIRST; traditionally student loan debt carries lower interest rates).

 Another idea is to go ahead and set up a separate checking account for ALL of your fixed expenses AND savings**; and then set up automated bill payments. You should directly deposit whatever you need into that account every time you get paid and then have the rest go into your variable spending checking account. This way you know your monthly bills are being paid, and paid on-time, and you also know that your savings is on the up and up. Furthermore, you don't have to double check if you'll have enough money to make your car payment every time you want to go out to eat!

How is your student loan repayment going?

*And technically 10 years is a long time, a lot can happen in that time (say--move cross country- twice, get married, have kids, buy 2 cars, buy 2 houses- sell 1, get a cool job, met awesome people, etc etc).
**Only savings for emergencies and short term purchases should be held in a checking or traditional savings account due to lack of interest/ growth; you should consider other savings/ investment vehicles for longer term savings.

Fraudulent message from the IRS

Tax season is a ripe time for fraudsters to prey on the innocent public. This happens every year with everything from shady tax preparers to official-looking emails that mine for personal information that ultimately lead to identity theft and people losing money.

My parents just got an automated call from the "IRS". The message was that they were being sued by the IRS and they need to call the 'department' number immediately.

This is a SCAM. To begin with, the Internal Revenue Service would never send an automated message to someone that they are filing a lawsuit against. One would likely receive some sort of communication via the mail, probably certified mail. The number they ask you to call is not tied to any sort of IRS office.

This message is intended to scare people; the scammers then hope to get a call at the number they provide and will ask for personal identifying information or even money "to settle your IRS debt at a discount even!"

Share with your family and friends and don't let these scammers win!

If you are ever concerned that you may be in trouble with the IRS, go to the IRS website and find the number you need to call, never rely on a number someone sends you in an email or over a voicemail message.

Check out the message here.

Update: this number is already out of service, thank goodness. This clip is still a good example of what to watch out for!

Not Saving Enough for Retirement? Look at a picture of yourself in 40 years.

Gotta love Carl in the movie Up (Disney/ Pixar).

Why is it so hard for us to save for retirement? I mean we all hope/ assume that we will be around for a long time or at least the foreseeable future right? We have heard that Social Security may be just a fond memory from our past. We don't really want to work every day until we die either; we want to spend our golden years doing something...right?

Saving for retirement is logical. However, its surprising how few people actually contribute what they should in order to live a comfortable retirement lifestyle; more than half the US population will not be able to maintain their standard of living in retirement (read more here). So while saving for retirement is the logical, rational, thing to do... we as humans are notorious for not being logical or rational in many of our decisions (think eating habits, exercise, spending too much!).

So why don't we connect with the idea that what we are doing today, directly impacts our future selves? According to Ersner-Hershfield, Wimmer, and Knutson (2009), we humans, don't think about ourselves in the future as actually being ourselves in the future, our brain patterns actually showed that it was similar to us thinking about a complete stranger! So essentially when it comes to saving money its like we are choosing between spending our cash now or giving it to a stranger!

So more research was done based on the idea that maybe if a person can feel more connected to their 60, 70, 80 year old self, that they might be more inclined to save at a higher rate for their golden years. How can they feel more connected? What about having them view a digitally mastered image of themselves in the future?

What was found that when, we humans, were able to see our future self, we were better able to relate, and also see the 'person' (me) who would be dealing with the implications of our savings decisions. This led to "results suggest(ing) that interaction with a vivid version of one’s future self causes individuals to give modestly greater weight to long-term saving." Read the entire article from the National Institute of Health (NIH) here.

So why not check out your old(er) self! You can find many sites and apps that will do this; try the Aging Booth app (there's also one for Android), or this website. They may not be 100% true to form, but let me know if it freaks you out enough to save more for the future!

An additional note... companies could potentially provide some sort of visual aging software to their employees if they upload a picture, but there is still an impact if, when an employee is in the midst of selecting retirement options, sees an older avatar smiling with more savings and frowning with less- they tend to contribute a higher percentage. Interesting!

Another additional note...this research was done on college students, and for good reason. If we can get all our 20 somethings saving for retirement now...just think of what they could have in the future! Don't you wish you started saving earlier?

HERSHFIELD, HAL E. et al. “INCREASING SAVING BEHAVIOR THROUGH AGE-PROGRESSED RENDERINGS OF THE FUTURE SELF.” JMR, Journal of marketing research 48 (2011): S23–S37. PMC. Web. 20 Jan. 2016.

Fake a New High End Countertop for $150

When we bought our first home in Baltimore we put in lots of sweat equity especially when it came to painting. I went a little nuts; after finishing the walls in every room, I moved to the cabinets and kitchen counter top.

The cabinets were not easy as traditional wood cabinets, because they were the lovely white laminate stuff that doesn't like paint. I found the Gripper primer that makes anything stick and it worked great.  The first time I painted the kitchen cabinets I did them in red (lasted for a few years until I needed a change), the second time in an espresso faux wood grain finish (I just dragged a rag vertically to get a grain effect).

I even painted the counter-top in the kitchen by applying the gripper, 2 coats of high gloss black, I created texture by applying gold and silver paint using bubble wrap, and then sealed with 5 coats of Polyrylic (I probably didn't need to do that much but I wanted to be sure it was sealed). I sanded between each coat to ensure a smooth finish. It was a bit of a process but ended up looking pretty awesome. I had a hard time locating a picture of the black "granite" that I painted a while ago, but you get the idea here (you can also see the espresso cabinets which were just changed from bright red):

The counter lasted 5 years and it was still looking pretty good but we decided we wanted to lighten it up a bit. We still didn't want to spend a couple thousand on a new counter at this point so I did some research and found the Rustoleum Countertop Transformations product. It turned out wonderful and took a fraction of the time to complete (compared with my previous painting procedure!). I would highly recommend it if you are looking to enhance your kitchen for less than a couple hundred bucks (and don't want to spend 7 straight days painting, sanding, and waiting for 24 hour drying times). The both looked quite nice actually, but the Rustoleum product was a lot easier.

This picture shows what it looked like after the transformation, we used the Desert Sand color. This product created a lot smoother, more professional finish, in no time. We also later added a back splash that tied the cabinets in nicely! The pictures don't really do it justice, but it really looked nice! When we sold our house this year the Realtor wrote down high end counters- when we saw that we told him what we actually did and he was amazed!

7 Easy Ways to Reach your Financial Goals in 2016

Do you need a foolproof plan to get your butt into financial gear this year??

First step, what are your financial goals for 2016? Take a minute and write down the first 3 that come to your mind.

If you are like many others, you have likely listed one of the following:

• Save more
• Spend less
• Stick to my budget
• Pay down my debt
• Make more money
• Get organized

Second, be more specific. Do you want to save $100 more each month? Why? Is this for retirement, college savings, or just that vacation you want to take? All of the above?
Go through your list and make each one more specific, that way you can celebrate more and be comfortable that you are on your way to reaching your goal.

Now that you have your specific goal, what can you do to make it EASY to work towards and HARD to fall to the wayside?

Here are my 7 tips on making things EASY (or at least easier )on your financial mindset this year. Try them and let me know how they work!

1. Dedicate a separate checking account just for your expenses. Figure out what your fixed expenses are (rent, utilities, cell phone, internet etc.) and then have them automatically paid from this account. Divvy up your direct deposit, or paychecks so that the appropriate amount is going into your expense checking account and let it be. This way you know everything is getting paid and paid on time. And it helps with budgeting, since you don't have to constantly check in on yourself to make sure you didn't spend your rent money.
   
2. Set up a savings account for each goal. You might already have a retirement account or college savings set up. But what about for your other savings goals? Set up a separate account for each goal. This way you can track your progress and are less likely to pull out cash on an impulse. This means one for the emergency fund, one for the vacation fund, one for the house improvement fund etc. Even if you only start with tiny contributions to each, you have started.
3. Set up an automatic debt payment tied to every time you get paid. This should come out of your expense account. Whether you get paid twice a month or once a week, set this payment for the day after. This way, the payment is out of your face before you have a chance to spend it! 
4. Set up an automatic savings contribution tied to every time you get paid.  Same deal as the debt payment, set this up for the day after you get paid and bam! Before you know it you are on your way! This should also come out of your expense account (you are paying yourself). This takes 5 minutes or less. 
5. Transition to online statements. You not only reduce clutter in your house, but then you can find what you need quickly, oh, and help save the planet.
6. Switch to the envelope method for problem spending areas. Is one of your goals to spend less on take out? Or maybe its shoes? Give yourself a monthly cash allowance for these, and literally put it in an envelope. When its gone its gone.
7. Ask for a raise (if you deserve it)- its surprising how many people just go with the regular 1-2% annual raise and never think to ask for more! You don't know if you don't try! Don't deserve it yet? Enhance your skills so that you will. Whether its taking a free (or employer paid) class online or just dedicating a couple hours a week honing a skill/ hobby you enjoy. Just make sure that when you do get some more cash, you divvy a good chunk of it up to your monthly savings or debt reduction plan!

Do you have more? Let me know!

Snacking Makes you Immune to Advertising?

Photo credit: Alamy via the Huffington Post

Is there actually a benefit to munchin' in front of the tube?

According to an article in the Journal of Consumer Psychology, when you watch a commercial your brain "unconsciously practices how to say the name (even if you are not actually mouthing the words)". However, when you are chewing your "mouth cannot subtly whisper the products name". This prevents the brand from taking residence in your brain. This doesn't just work with snacking, but also chewing gum, or talking... but the catch is that it only works for brands that you are not familiar with... interesting!

So while we are told that eating mindlessly while watching sitcoms may not be good for our waistlines, it may help our wallets!

Now is it the same for kids not "wanting" something they see on TV just because they happen to be eating some Cheerios at the same time? Who knows, I don't really want to test that theory!


Topolinski, S., et al., Popcorn in the cinema: Oral interference sabotages advertising effects, Journal of Consumer Psychology (2013),

Read more at: http://phys.org/news/2013-10-popcorn-cinema-oral-sabotages-advertising.html#jCp

Make Dumplings - Save Money - Be Happy

I know its been a while... a lot has been going on!
We were out of town (back to the Minnesota homeland) for the month of December. Then we had a death of a very close family member while we were there. I also started doing a little more contract work, so I have been falling behind on my "fun" stuff!

Photo credit: http://www.closetcooking.com *

Its been about 6 years since my infatuation with dumplings began; steamed dumplings to be exact. My favorites are still the kind you can find only at your Chinese take-out place that are really doughy and have that wonderful blend of pork and who knows what else. And the sauce... oh the sauce... sweet, salty, & spicy maybe with a sprinkling of green onions and peanuts. I still have not quite figured out how to duplicate the sauce; and its a crap shoot if I order from a random Chinese place if they will happen to make the sauce the way I like it.

Moving on. I would love to eat those doughy dumplings every time I have a craving- but that obviously will not work for my checkbook (even though they are usually not too pricey considering, but still $4 for 6) or my waistline. So, I have tried several of the frozen variety that range from $5-$8 and you usually get between 15 and 20 dumplings; some come with sauce; most don't. And usually I am not extremely impressed with what's stuffed inside, not to mention the overall taste.

If you have about an hour (or less if you have helpers). You can whip around 50 of these babies for  for under $10 (depending on what kind of  meat you use). They are not as exotic as my doughy faves, but also not as sinful... and really are quite tasty.

Steamed Dumplings
1 lb ground (turkey, pork, beef etc.- leaner the better); I think turkey tastes great, and less fat to boot [$3-$6]
1/4 cup (more or less to taste) of chopped bamboo shoots or water chestnuts [$1 or less]
4 scallions sliced [$0.25]
14 oz bag of coleslaw (or broccoli slaw) mix (optional)[$2]
12 oz package of wonton wrappers [$3]
2 options for sauce to add to the wonton mixture: 1) Franks Red Hot Sweet Chili Sauce (1/4 cup); 2) Mixture of 1 tbsp each of soy sauce, rice wine vinegar, minced garlic, & minced ginger

Dipping sauce: if used Red Hot Sweet Chili- use that to dip; if used other mix 1/4 cup each of soy sauce and rice wine vinegar, throw in a tsp of ginger, sugar, and dark sesame oil and top with scallions, red pepper flakes, & chopped peanuts if you want!

• Grab your steamer basket and fill the pot with water to almost where the basket hits... bring to a boil. Fill a small bowl with tap water
• Mix meat, shoots or chestnuts, scallions, coleslaw, and whichever sauce you are using in a big bowl.
• Use one wonton wrapper and place tablespoon amount of mixture in middle; use water to moisten edges of wrapper and fold in half- secure.\
• Decide how many you want eat, throw the rest on a wax paper lined cookie sheet in the freezer. Once frozen, toss in zippie and take out as desired.
• Depending on the size of steamer you can cook 5-10 at a time for approx 5 minutes- 8 minutes from frozen (test to make sure meat is cooked). Try to make sure they don't touch one another to prevent sticking. You can use non-stick spray on the steamer or throw down some leftover coleslaw to keep the dumplings from attaching themselves to your basket.
• Dip, eat, love

 My 2 year old twins  really liked these; they prefer the sweet chili sauce ones to the other sauce.

* I vow to try this recipe soon, they really look wonderful

Grocery Shopping: Short & Organized = Sanity & Savings

Who doesn't want to stay sane AND save money while shopping?

Photo credit: ACEI Ch

With toddlers in tow, grocery shopping can be a challenge, if not a nightmare. While they love riding in those cars attached to the grocery cart, I never know when the window will close. Will they last all the way to the dairy aisle? Or will the meltdown begin by the bananas?

What I didn't realize, is what I learned from all this. My grocery shopping trips have become very efficient. First, I need my list to be in order of the store so I am not racing all over the place. Second, if I have coupons that I  may need to refer to while shopping, those must also be in order of the store.  Third,  I tend to only buy what is on the list, since that is all I have time to grab (and sometimes not even that).

When I do have the chance to go by myself, not surprisingly, I tend to spend more time in the store... and buy more as well. While I may have more time to price compare, I also have more time to take advantage of the all-too-frequent impulse buy.

While going to the grocery store with my kids is not my favorite thing, I am actually saving money because I have no other choice but to be quick and organized.

Simple but True: Short & Cheap

1. Make a list as you run out of things- keep it in your kitchen
2. Make a menu- add what you need to your list (you can base your menu on your coupons or whats on sale**)
3. Order that list based on your store. For example, produce, cans, breakfast, snacks, frozen, dairy, bakery- or however your store is laid out.
4. If you are a coupon clipper, keep them in order so you can grab and go while making your list. Then order your coupons based on your list.
5. Stick to your list (unless its truly something you forgot) and get out of the store promptly!

Oh! And don't go when you (or your kids) are hungry!

Don't get the paper? Online coupons are awesome: Coupons.com; Smartsource.com 

 **Check out FoodOnTheTable.com for menus based on what's on sale at the grocery stores you frequent. They give you recipes to choose from based on your preferences and then you can print out a grocery list as well!

High Interest Checking Accounts

Many financial institutions advertise interest bearing checking accounts (yippee!), but wait... they are as widespread on the interest spectrum as there are theories on how to raise your kids!

According to Bankrate,com, as of May 2012, high-yield checking accounts averaged over 2% while interest on traditional interest-bearing checking accounts was a whopping 0.06%. So you could be making 33 times more money if you just do your research (or read this!).

So of course you want the high-yield account... what's the catch? You will likely have to meet certain monthly requirements, and of course, you have to move your checking account (which can be a hassle with all the automatic bill payments these days). Read the fine print for the reqs before you sign up to make sure you can meet them (i.e. direct deposit, certain number of debit transactions, minimum balance etc.)

A great place to start:

• Check out the results of Bankrate.com's survey on interest bearing checking accounts for both banks and credit unions.

• Play around on DepositAccount.com's interest rate finder for checking accounts (both online/ national and those in your area). While Bankrate is very helpful, DepositAccount.com is a bit less biased by advertisers.

Islamic Banking and Saving for College

Graphic from thomaswhite.com

 There are special requirements in Islamic Law when it comes to finance. I find it very intriguing. Maybe our country would not have gotten into such a financial mess if we took advice from our ancestors and global neighbors!

 I met a woman this weekend who would like to start saving for college for her 1 year old. The problem is, she cannot have an account that accrues interest because of her religion, Islam. We were talking about two different 529 plans (a prepaid trust and a college investment plan). She was asking if either of these accounts accrue interest, because if they did, she could not take advantage of them.

To take a step back, a lot of folks intertwine the meaning of income (interest) that you earn on a savings account at your local bank/ credit union and income (interest) that you earn on an investment. The primary difference is the risk you are taking and the potential reward/ loss that you may receive.

The income that you earn on your savings account is determined by a set rate and is insured by either the FDIC (banks) or NCUA (credit unions). The income you earn on an investment is determined by how the company's stock or your portfolio fares in the market. It is not insured, so you can potentially lose your investment, however the reward can also be significantly higher.

So I had to determine if this woman was talking about any form of interest (including investments) or if it was just tied to one or the other. This led me to do some research on the topic of the Islamic view of money and saving to determine specifically if this woman can use a 529 plan to save for her child's education.

What I found:
First of all, Sharia is the moral code/ religious law of Islam; Islamic banking adheres to this code. Sharia prohibits the payment or acceptance of interest and/ or fees (known as riba) for monetary loans. The reasoning behind it, is that money is merely a medium of exchange, has no value in and of itself, and is purely a way to define a common value between things; therefore, 'money' should not be used to make more money on itself through interest (whether in a bank account, or lent to someone).

One can invest in a business or property however, as long as the business/ real estate venture does not provide products or services that go against Sharia.
(http://www.islamic-banking.com/prohibition_of_interest.aspx)

So, can you save for your kid's college education in a 529 plan if you are Islamic? 
Yes. However, since a person is not allowed to invest in businesses that go against Sharia, this may be a difficult thing to successfully accomplish. Technically, a person could have a prepaid trust or investment plan (as neither are providing mere interest on money) if they make sure that each investment in the portfolio complies with the Islamic law. This is one of the few if only options this person would have; they would not be able to save money in a Coverdell account or any other account tied to a traditional banking institution since that would be earning money, on just.. well, money.

If anyone runs across this post and has more information, please let us know!


An interesting find:
It appears as though the nation of Islam are not the only ones who feel this way (at least historically):

• “Very much disliked also is the practice of charging interest: and the dislike is fully justified for interest is a yield arising out of money itself, not a product of that for which money was provided. Money was intended to be a means of exchange; interest represents an increase in the money itself. Hence of all ways of getting wealth, this is the most contrary to nature." Aristotle

• “Do not charge your brother interest, whether on money or food or anything else that may earn interest.” (Deuteronomy 23:19)

• “If you lend money to My people, to the poor among you, you are not to act as a creditor to him; you shall not charge him interest.” The Holy Bible (American Standard Bible)

• [Jesus said], “If you have money, do not lend it at interest, but give [it] to one from whom you will not get it back.” Gospel St Thomas, V95

Tax refunds: when bigger might be better

Theoretically, you want to minimize your tax refund by claiming the correct withholding on your W4 so you can invest that money throughout the year instead of letting Uncle Sam keep it interest free. However, there are times when it makes sense to keep getting that large refund and not claim all your allowances to help reach your financial goals.

First things first: I am a huge proponent of claiming the correct withholding on your W4 so that you can make your money work for you instead of getting an interest free refund every year.

But I also want to get real. I was reading an article on Identity Theft where thieves were filing tax returns and then getting the refunds. Many of the victims are people that count on their tax refund every year. While the ID theft story was interesting (and frightening), the realization for me was that these folks are getting thousands of dollars back and this is truly a great saving vehicle for (some of) them.

For those of us that claim the correct allowance on our tax withholding and are diligent about saving that extra money, that's great, and the financially proper thing to do. On the other hand, there are folks that are not claiming the correct allowance, getting huge refunds, and then blowing it at the casino or on something that they can't afford. Then, there are the people that just can't seem to save monthly for whatever reason, so they purposely claim a low allowance to ensure the largest refund possible, and they use that as a savings vehicle. While it doesn't make as much financial sense to save your money this way. its the only way some people will save at all. So while they may not be receiving interest throughout the year, once they actually get the money, they might throw it in a CD or pay down their mortgage which is financially smart.

The Takeaway
You will get the most bang for your buck if you claim the correct withholding on your W4 (see this post for more info) and then invest your extra cash monthly in some sort of savings vehicle. If you blow your refund habitually- minimize the refund; your personality style would be better suited to getting more in each paycheck and setting up a automatic savings plan. However, if you know yourself and your habits, and you know that you just can't seem to stick with a consistent savings plan month to month... by all means, wait for that large refund, as long as you are smart with it. In this scenario, if you fail, don't  keep try, trying, again year to year and lose out on valuable time to save some green. Just do what works.

Fun Savings: "Love" money, "Play" money

Saving money is always more productive when you have dedicated savings accounts for different goals. This is a given when it comes to retirement, education, and emergency funds, but what about the other stuff?

Many of us lump our savings into one place for use on.. well, whatever comes up. It's important that we have some fun too! If your savings are all bunched together, sometimes it's hard to justify taking some out for fun without feeling guilty.

Make it Fun

A great way to have fun with savings is to have a physical place for your extra cash (assuming you can find some). Think coffee can, spaghetti sauce jar, or just about anything that will hold currency (I prefer transparency so I can see how we are doing). Then pop a colorful label that states clearly what this fun money is dedicated to (whether its words or a picture your kids draw). You and your signot (significant other) can have "love" money for hitting the town and your kids can have "play" money to contribute for whatever they decide. If you don't have the energy to clean out a dirty jar, you can find some fun ones at The Find!

Guilt-free and a Teachable moment
This is a great way for you and your partner to rid the guilt of going out when you are on a tight budget and a great way for your kids to learn to save and to learn delayed gratification. Of course, you can do this in an official savings account as well, but let's be honest, its fun to see that money grow on your counter too.

Some other ideas:

Love this concept: see what your cost-cutting measures have saved you. Another idea: when you go to the grocery store with all those coupons, get a subtotal before the coupons and then throw the cash in your jar with whatever those savings were!

The Takeaway
The next time you save some cash with coupons, clean out the couch, or find extra change in your pockets or purse- throw it in a fun (and visible) place and watch it grow!

Can you claim a loss on your taxes for real estate?

Is your family outgrowing your house? Are your offspring expanding while your walls seem to be closing in? Do you and your signot (significant other) just want to get out of dodge? What do you do with your house now that you can't sell it (at least not without a loss)?


First off, I am not a tax expert. However, I have done some research whether or not you can claim a real estate loss on your taxes. You may know (or not) that you cannot claim a loss on your primary residence. If you sell below your cost basis (what you bought it for plus improvements) you are out of luck. Many of us are in a situation where our homes are worth less than when we purchased them so this would be nice, but not true. So I was thinking... what if you converted your home into a rental property, and then sold it?

This could work, but only under certain circumstances. First, the property must be a rental property for at least one year. Second, (and this is the kicker) the cost basis that you use in determining whether you have a loss is the fair market value of your home when you convert it to a rental. So if you bought your house for $250,000 and now it's worth $175,000 (and this is when you convert to a rental), the cost basis you use when you sell your home will be that lower number. So if you sell it at $200,000 a year later, you will actually have a gain of $25,000. Now if you switched your property to a rental several years ago (before this whole mess), you may be in business to claim a loss on your taxes.

There are a lot of other tax issues to consider when renting your home. So if you are thinking about renting your primary residence-do your research! If you are willing to read long, boring jargon, the IRS website has an abundance of information on the topic (of course). Here's a good article to get you started. If you are more comfortable with just a Google search, just be aware of the source of the information; you do not want to make a decision based on a 13 year old "expert" posting on some random website or fall into a sales scheme of some kind! Happy hunting!

Time is Money

Whether its cutting coupons or physically going shopping, our time can be eaten up in a heartbeat. We cut coupons to save money; we go to the store so we can use those coupons. When is it no longer worth it financially?

If you are familiar with the term opportunity cost, its the "cost of an alternative that must be forgone in order to pursue another action". In other words, when it comes to shopping, its time that we are giving up to cut all those coupons and then physically go to the store (possibly with little ones in tow), pick out our goods, wait in line, pay, carry everything out to the car, and finally bring it in the house. So what is that time worth to you?

I am extremely fond of online shopping, particularly when it comes to purchasing the necessities for day to day living (i.e. toilet paper, diapers, food staples). Many times I am able to get free (and fast) shipping and I will always do a quick Internet search of that store's promo codes as well (which many times will include a free shipping code). Most of the time you are unable to use physical coupons when doing online shopping (a few that will let you send them in- see below); however, most of the sites I reviewed offer e-coupons and special online-only deals that will compensate for your inability to use your Sunday paper clippings.

A few of my favorites:

Diapers.com
What to buy? Diapers, wipes, baby food
Good prices, e-coupons, SUPER fast shipping (there have been several times I placed an order one day and it was at my house by 11AM the next day), free shipping for purchases $50 and over, accept manufacturers coupons

Soap.com
What to buy? Laundry Detergent, shampoo, personal care products, toilet paper, paper towels
Good prices, e-coupons, SUPER fast shipping, free shipping for purchases $40 and over

Diapers.com and Soap.com (the ones I have tried) are part of one parent site that has a total of 5 sister sites. The other 3 are: wag.com (pet supplies); yoyo.com (toys); and casa.com (things for the home- furniture, organizers etc. )You can order across all the sites and combine them into one cart. If you order across more than one site your minimum for free shipping is $40. ALL the sites accept manufacturer's coupons.

Safeway.com (check out grocery store delivery in your area)
What to buy? Food staples, bulk items, meats, frozen food, anything but produce (usually everything comes overly ripe, and then proceeds to spoil very quickly; however, you can specify to your personal shopper that you want 'green bananas' or 'firm tomatoes' if you choose). One negative is that they are frequently out of at least something I order, and you don't find out until they are delivered.
Good sale prices, online only deals, use your Safeway club card, select your own delivery window, free shipping offers (otherwise shipping charges vary, $3.95-12.95, with the time window you select); does not accept manufacturer coupons unless they are digital and can be uploaded onto your Safeway Club Card.

CVS.com
What to buy? Personal Care, snacks, vitamins, OTC drugs, prescriptions, CVS brand items
Good sale prices, online sales, free shipping $50+ otherwise $5.49-12.95(expedited). Especially nice if you get the 20-25% off coupons in the mail. Do not accept manufacturer coupons for online orders. Check here for weekly CVS online deals.

Wine.com
What to buy? Wine.Especially if it's a staple in your house!
Decent prices, find wine that you can't in your local store, shipping varies by location and order.
*Affiliate site wineshopper.com does the whole Groupon thing- wine style- if you are willing to submit your email.

Amazon.com
I don't have to say much about Amazon- because I think most of us know that you can order just about anything from the variety guru. However, I try to make sure it is fulfilled by Amazon as opposed to another business just using the site as a marketing tool. This way, you can utilize the free shipping on your purchase over $25 (assuming they are qualified items) and take advantage of Amazon's mammoth customer service if you need to.

Click.  Buy. Delivered. Done.

Should you buy life insurance for your kids?

Is it financially smart to buy life insurance for your child, and if you do, should you buy the type with a savings vehicle?

If you have kids, or are expecting, you have most likely received ads in the mail for life insurance for your child (i.e. Gerber Life Grow-up or Life College plan). Many of these plans tout a savings vehicle in addition to the life insurance. This is a big selling point for these plans as they push the savings piece as an added benefit, a "how can you go wrong?" type of product. Does your child need life insurance? Is it giving them a head start in life? Is the savings piece worth it?

Why would you even consider life insurance for your child?
Here's the sell: "Give your child (particularly your newborn) a financial head start in life! The premiums are cheap and you are guaranteeing your kid's future insurability to boot! You have enough to worry  about as a new parent, so give yourself some peace of mind. Now your baby can be covered regardless of an unfortunate illness and in the worse case scenario you will have the cash to cover final expenses. The best part? If you buy a whole life policy, and your child grows to be a strapping healthy lad or dame, they will have access to the cash value in the future! How can you go wrong?"


How you can go wrong.
First, the purpose of life insurance is generally a salary replacement tool to provide security for one's dependents. So unless you have the Gerber baby itself, whom is providing income for your entire family, baby life insurance doesn't fit that definition. The Consumer Federation of America (a consumer advocacy and education group), along with many financial planners in the industry, believe that its almost never a smart financial move to purchase life insurance for your kids. I don't even recommend life insurance to adults unless they have dependents; so I definitely would not recommend life insurance for those dependents, especially if you are not meeting other important financial goals.

Second, the amount of these kid policies are usually quite low (typically $5,000-$10,000). This amount will not be enough as a salary replacement in the future, and many times you can't increase this amount as they get older if they do indeed have a chronic illness.As of today, the maximum you can purchase under the Gerber life plan is still only $50,000 which will not be much especially in 20+ years. They state that the coverage automatically doubles once your child turns 18, but once again, even $100,000 of coverage in 18 years will not be much when you take inflation into account.

Finally, what about the savings piece? In general, insurance policies are not good savings vehicles regardless of who is the insured. These policies not only have steep hidden costs, but they also provide you with minimal return on your investment. If you are going to invest money for your child's future (education for example), do it in a 529 account, not an insurance policy.

The Takeaway
If you have dependents, obtain life insurance policies (preferably term) for you and your spouse (particularly the breadwinner), contribute 10% of your gross income to your retirement accounts, 6-9 months of expenses in an emergency fund, and then do what you can in a 529 for your kids' education. The key is to make sure you are protecting your kids in case something happens to you, but also protecting your future so your kids don't spend money taking you in down the road!

Once all this is taken care of and you still want to open a policy for your kids, do your research, look into your employer's benefit package (many times you can supplement your own policy with juvenile insurance for pennies a month) and do not opt for a insurance/ savings vehicle combo.

Can you afford to workout?

Really, we can't afford not to work out. Not only is it good for our physical well being but it plays a big part in our mental health as well.

Furthermore, if you have kids, staying fit will help all of us stay a little more sane, not only because we will have more energy to play with our lovely offspring, but it keeps us from having emotional breakdowns (at least reduces the chances) to boot.

So, when it comes to finances, can we afford that gym membership? The fees can go from one extreme to the other. Some places may have relatively inexpensive monthly dues, but they require you to pay an enrollment fee and sign a lengthy contract. Furthermore, once you do sign up, do you ever go?

So take your pick and try at least one of these suggestions!

• Take out your old workout DVDs and have at it. Free.

• If you have Netflix, there are a variety of workout videos you can watch instantly (some videos I like are Cardio Sculpt-30 min. and 10 minute yoga series-50 minutes broken down into 10 minute sections). 7.99 a month for online instant access. Update 9/13/12: recently I noticed there are no longer workout videos on streaming Netflix! I complained, hopefully enough people will- it was a great deal!
• Walk with a purpose. Walk your kids to the park. Walk to the grocery store. Walk your dog. If you are accomplishing something else while exercising, its easier to find the time. Free.
• Clean your house. Set a timer for 20 minutes and do the hard-core cleaning tasks that take some energy like scrubbing bathtubs or floors, sweeping, vacuuming etc. Free.
• Be a guest at a friends gym. Free.
• Pay for individual workout classes. There are many fitness clubs and community organizations that allow you to pay for one class at a time. Usually between $5 and $15. 
• If you want to stick with an official gym membership that's fine too... just make sure you go (and it fits into your budget)! If you sign up for a new membership, ask to see if you can have a no-commitment month trial and then you can see if it will work into your lifestyle.

The key to keeping up with staying fit is to do exercises that you enjoy (or don't even notice you are doing) and to mix it up. So maybe you do a video one day, take a walk the next, and then go to a class once a week- whatever will keep you motivated!

The steps to changing your name after marriage

OK, so I waited over 3 years to complete this whole list, which prompted me to communicate the steps so it doesn't feel so daunting to anyone who is approaching the process with trepidation.

1. Change your name with the social security administration. Go to your local SSA office with your marriage certificate (or a certified copy) and old SS card and done. This actually went very quickly.
2. Change your name on your license. Go to a DMV or MVA office (Express ones will do this as well) with your new SS card, marriage certificate, and old license (along with information regarding a current address if you moved). This also went very quickly- I went to a MVA express.
3. Tackle the financial institutions. This includes your checking and savings accounts along with credit cards, car loans, mortgage, and anything else you can tie to a bank or credit union. The easiest way (and fastest) is to waltz into a nearby branch. However, if you don't live near a branch, or just don't like live interaction, you may be able to do this via email/ mail (I did have to go into my credit union branch in person however). Shoot an email to the customer rep department and they will give you the steps that are required at their financial institution. This will include signing a new signature card (with your new name of course), you may need it notarized, and then send a copy of your marriage certificate.
4. Any website that has your financial information (credit card number) tied to your old name:  this can be changed on an as needed basis. Once your name is officially changed with your financial institution, the next time you make an online purchase, just type in your new name!

Restaurant coupons: are you really saving money?

I have become a bit of a coupon junkie especially when it comes to going out to eat. You can save loads of cash if you know where to go and when to take advantage of special deals.

Websites such as Restaurant.com and super daily deals like Groupon and Living Social can give you deep discounts on eateries in your area. However, you are not really saving money unless you already have plans to go out. Many of us jump at the opportunity to buy a $100 gift certificate for half the price, but its not worth it if you buy something that you wouldn't have used without the coupon (the same is true for any coupon).

So if you have plans to go out (think birthdays, date nights etc.), hop on to one of the above sites and see what you can find. If you sign up for email updates on Restaurant.com you will be notified when they have even deeper discounts like purchasing a $50 certificate for $4. However, make sure you read the fine print as you will still have to spend a minimum (i.e. $100 minimum purchase for most $50 gift certificates) and sometimes it excludes alcohol and weekends.

Happy Dining!

Don't be a Fool! Your 'Signot' and the checkbook

Who manages the money in your household? Many of our significant others (signot) think of, and deal with, money in different way than ourselves. It's no cliche' when I say that the most important thing when it comes to couples and money is that you have the same (or at least very similar) financial goals. It's how we reach those goals that may become ammunition for squabbles.

Here are a few rules not to break (and some ideas to help) when it comes to sharing the checkbook and bills:

• Talk about your financial goals and how you plan to save for them... write them down
• Have a budget
• Share that budget with your signot so they know what's up (or down) with the cash
• Designate who's responsible for which bills, make sure someone is accountable for each bill even if its just one of you
• Set up automatic bill pay so you don't forget!
• If you share a checking account, set a spending limit (i.e. $50) that neither you or your signot can exceed in any one purchase without consulting the other one first. 
• Consider setting up a second checking account just for your variable expenses (this way you know you're not spending your fixed expense money... like your mortgage)
• Use cash allowances for both parties; this way, once the money is gone, its gone
• Communicate throughout the month (i.e. "we only have $40 left to spend on entertainment this month... do we want to blow $30 tonight at the movies?")

Your W4 and Extra Cash

When you go from being single to being married and having kids a lot changes. One thing we may forget to change is how many withholding allowances we are claiming on our W4s. Quick Note: W4- is what you fill out when you start a job; W2 is what your employer reports as your wages for the year.

Folks love getting a tax return, but if you get a return, Uncle Sam is just holding your money and not paying you interest. If you are used to getting a hefty return, its time to make a change.

In my opinion, you want to pay enough taxes every paycheck so that you do not owe any money on April 15. However, you want to use your allowances wisely so you can minimize your tax return as much as possible so you can start making that extra cash work for you. Basically, you want to break even- or close to it.

So what do you claim?
My best advice is to use the calculator on the IRS website. You will need to have access to your most recent pay stub (which should have most of the information you need right on it) that includes: total federal income tax paid to date along with what was taken out of your most recent paycheck. You will also estimate the amount of bonuses or non-wage income you anticipate earning throughout the year. Have your child care expenses handy along with any student loan interest you may still be paying as well.

Even if you plan to claim more than the standard deduction with your itemized deductions (frequently the case if you own a home and/ or are paying off student loans), I would recommend still using the standard deduction in the calculator to play it safe (remember, we don't want to owe taxes!).

The calculator will tell you what the recommended withholding allowance is for your situation- placing you as close to breaking even on your taxes (assuming the information you entered is accurate). You can run with that number, or if you are not sure you entered everything 100% accurately, you can always reduce it. Not very mathematical, I know... but we would all rather be safe than sorry. If you are married, with one person employed, and 2 dependent kids- the calculator may tell you to claim 8, but maybe you claim a 5 or 6. That's still a big difference from the 1 or 2 (or even 0) you were claiming before!

So you know that your should take that extra money and make it work for your family. If you cannot make that commitment, and you use it for frivolous expenses... it may well be in your best interest to claim 1 or 2 again-assuming that you were using that tax refund for something productive. However, many people tend to use the bulk tax refund for something fun... instead of throwing it into savings. Its usually easier to save and not blow it if you are doing it throughout the year rather than getting a lump sum once a year. Sound familiar? "Oh, I can use just a little of that to buy that new tv... and I will save the rest!"

What can you do with that extra monthly income? If you were living with all your necessities before, there is no reason to blow this extra cash... make it work for you!

• Increase your retirement contribution- we should be aiming to save 10% pre-tax in retirement. Maybe open that Roth IRA you have been procrastinating on!
• Reduce high interest debt (credit cards etc.).
• Open a 529 college savings plan for your kid(s). Many plans allow you to start with a mere $25 a month. Check and compare all the states that have a college savings plan at College Savings Plans Network.
• Add to (or start) your emergency fund. Aim for 6 months of expenses.

The key here is to set up an automatic payment plan for whatever it is you decide, whether its saving or paying down debt. Do not let it sit in your checking account long (or at all) and risk it being spent on things you don't need!