Cash Money Life

Roundup – Cutest Little Tax Deduction Edition

Patrick — Sun, 12 Jul 2009 14:16:20 +0000

My wife and I are trying to get into a schedule with our new baby. Like most babies, she has decided she likes to sleep all day and wants to play at night. I think that is partially our fault because we like to hold her throughout the day while she sleeps (She’s so cute, it’s hard not to!). But the problem is that she gets used to sleeping in our arms, which makes it more difficult to put her down for bed at night. So our new plan is to put her in her crib for naps and leave her alone. Hopefully that will do the trick!

Thanks to this week’s guest writers. This past week I published 5 guest articles from other personal finance bloggers. I appreciate them offering an article to share with my readers. It was a great chance for me to spend some time with our new baby. Thanks to Jim @ Bargaineering.com, Jeff Rose @ Good Financial Cents, DK @ Debt Kid, and FFB @ Free From Broke.

Cutest Little Tax Deduction. The standing joke in the financial world is that babies are a great tax deduction, which of course, they are for many people. The last couple years, TurboTax has held a contest called America’s Cutest Last-Minute Tax Deduction, which awards a $5,000 US Savings Bond to the contest winner.

TurboTax’s PR folks read my site and found out we had our first baby and sent us a onesie like the one pictured in the TurboTax file photo at right. I had a nice chuckle when I opened the package. It’s too big for our little girl right now, but it should fit her soon enough. Thanks, TurboTax!

Everyone Else Knows Your Credit Score

Patrick — Fri, 10 Jul 2009 13:40:54 +0000

Do you know what your FICO credit score?

If you’re employed, your employer probably knows. In fact, if you are working, living in an apartment, using a cell phone, or insuring your car, house, apartment, etc… all those companies have checked your score.

If you’re wondering why they’re checking your score, you aren’t alone. A lot of people are asking these questions, especially with unemployment up and incomes down. Unfortunately, companies are also in a similarly difficult financial position and many are turning to credit scores to find an edge.

Here’s why companies use your credit score and credit history:

Employers: Whether it’s right or wrong, employers believe that financial health is a good determinant of whether a potential employee will steal. Reviewing a credit history has become standard in background investigations, especially if they are security related, because someone in difficult financial shape may be tempted by bribes. While bankruptcy can’t be a factor in a hiring decision, everything else in the history is fair game.
Insurance companies: It’s unclear why insurance companies use credit in their decisions but the fact they do is very clear. The lower your credit score, the higher your premiums will be. For whatever reason, their actuaries have determined that lower scores mean more claims.
Landlords: Landlords have been checking credit scores and histories since the beginning of time because they’re essentially “lending” you the value of rent each month. If you’re unable to regularly meet other obligations, you might not be able to make rent and that’s a problem. This same logic applies to service contracts, like cable or cell phone service.

While you don’t necessary need to know your credit score, it’s important that you review your credit history so that your score is as accurate as possible. It’s being used in places you probably didn’t expect and in places it was never intended for. Keep your nose clean.

This is a guest article by Jim, who writes about personal finance at Bargaineering.com.

~$~

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7 Things To Consider When Moving Offices

Patrick — Thu, 09 Jul 2009 14:27:12 +0000

Jeff Rose is an Illinois Certified Financial Planner and co-founder of Alliance Investment Planning Group. He is also the author of Good Financial Cents, a financial planning and investment blog. You can also learn more about Jeff at his website Jeff Rose Financial.

At the beginning of the year, after being in our temporary office for all of 2007, we had the pleasure of moving to a beautiful brand new office. I’ve had the pleasure of moving apartments several times while I was in college, but moving an office is an entirely different experience. There are many things that you have to plan ahead for to make sure that your day to day operations are not affected by the big move. Here are seven things to help you prepare if you’re ever looking to move offices in the near future.

1. Line up the movers.

Having five completely furnished offices and not having any type of large moving truck to get going, we knew that we were in for a treat trying to get everything moved over in one piece. We were lucky enough to strike a deal with the business that we order most of our office supplies through and secured two movers and a box truck to get going. The rate was very very affordable and better yet, these guys were professionals, so they were able to move all of our stuff in a timely fashion without any scrapes or major catastrophes for any of the furniture.

2. Call the phone company ASAP.

Since our business is pretty imperative to have an open line of communication with our clients, and we knew that once we moved, we wanted to make sure that it was a seamless process where we could pick up right where we left off without missing a beat. By calling the phone company two months in advance, we were able to set up the exact dates that the move was going to happen. This is very imperative, especially if you have a business that is very customer oriented. You don’t want to miss that potential phone call that could end up going to the competitor down the street.

3. Don’t forget about the DSL.

In our case, our phone service was a different provider than our Internet service. Just like our phone service, our DSL is very very imperative to our day to day operations. We were able to call the Internet service provider two months prior as well to make sure that everything would be a seamless transfer.

4. You’ve got mail.

Whenever moving offices, you can’t forget about having your mail redirected to the new address. One thing that we were told by the post office is that if we had changed our address then the mail will be redirected to the regional office which would be in St. Louis. This then would have our mail delayed anywhere from three to four business days. We knew that if the mail was redirected up the regional office that it would cause a delay in our day to day operations. We instead opted to keep the mail going to our old location since our location was a temporary office building that would still have a receptionist to receive our mail. We then just had all our records and updated to the new address and continued to pick up our mail at the old location for the first month. This was to ensure that we would keep all our mail coming and not miss out on anything.

5. Plan for additional needs.

Moving into an office there is always the little things that you don’t think of that you need until you actually move in. At our old office we didn’t have to have furniture for a waiting room, conference room, bathroom, etc since it was a shared office space. With the new office we had to furnish these on our own. We knew it was imperative to set aside money to take care of any unexpected expenses that we would incur with the new office.

6. Don’t forget to tell your customers.

Similar to the “Save the Date” reminder cards that many soon to be newlyweds will send out prior to actually sending out their wedding invitations, we sent out two letters letting our clients know of the move. The first was just giving the heads up that the move was getting ready to happen and the second letter was letting them know that the move was official and we were now in our new building. We wanted to make sure that we gave enough of a heads up so that they were not in the dark by our new move.

7. Make the announcement.

When it comes to your business you want to make sure that customers know how to find you . Once you are in your new office and things are settled in, it is time to let people know where you are at. Send a letter out to prospects. Do press releases in your local newspaper and inform all your networking channels and media outlets about your new location. That way business will continue on as planned and you will be able to enjoy your new office.

Have you moved offices recently? What was your experience?

~$~

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Debit Card Versus Credit Card – Which Is Better?

Patrick — Wed, 08 Jul 2009 17:48:08 +0000

The following is a guest post by DebtKid, who writes about his journey to get out of debt, and achieve financial stability. He runs a small software development company in Seattle and recently launched a new coupons section on his blog.

Visa reported that for the first time ever debit card purchases surpassed credit card purchases in the last three months of 2008. It would seem that consumers are finally getting on the band wagon that spending more than they can afford is not the best route for healthy finances.

Which card you should use when making purchases has been a topic of conversation for some time and many people lean decided in one direction while others could care less. One thing is certain, since 2003 Americans have been using plastic in each form more than cash or checks. Obviously the largest distinction between using the two lies in the origination of funds for purchases. Debit cards use money that is already in your checking account while credit cards use “credit” that you will be responsible for repaying at a later date. Here are a few other differences between the two cards.

Differences Between Credit Cards and Debit Cards

Security And Protection. Regulations and policies protect you in the event your credit or debit card are lost, stolen or used by an unauthorized person. While the protection is there for both, the level of protection differs for each card. If your credit card is lost or stolen and you notify your card company before charges have posted to your account you are not responsible for any unauthorized charges. If charges have already posted you will only be responsible for the first $50 of charges. Debit cards offer this protection as well, however you must notify your card issuer with two days of discovering unauthorized charges or the loss of your card. Notifying your card holder within two days limits your liability to $50. If you don’t notice the transaction within two days and report the charge between 2 and 60 days your liability increases to $500, after 60 days your liability could be limitless. In the meantime you are out that cash and even if you are credited the amount in the future, don’t expect the credit to appear in a timely manner.

Zero-liability policies. Visa and Mastercard offer zero-liability policies for credit card holders which means you are not responsible for any charges made when your credit card is not present. This covers online purchases or instances where credit card numbers are entered manually versus swiping the physical card at the merchant location. While zero-liability policies exist for debit card holders, it only applies to transactions that do not require use of your PIN.

Availability of Funds. When using your debit card you must first ensure you have the resources available in your checking account to cover your purchases. Consumers who are not particularly organized may find it difficult to track expenses and risk overdrawing their checking account if transactions are not noted properly. When using your debit card, know that transactions which require a signature generally take up to three days to clear while PIN transactions can clear immediately or within 24 hours.

Credit card purchases generally do not post to your account immediately, however an authorization to hold funds takes place. If you are close to approaching your credit limit using your card on several occasions in a short period of time may result in going over your credit limit resulting in additional fees and higher interest rates being applied to your balance.

Which is better – credit or debit?

It is clear that consumers enjoy the convenience and ease of using both debit and credit cards. Both options have benefits as long as they are used responsibly. The best way to manage your personal finances does not begin with how you pay for your purchases but with your spending habits themselves. If you stick to a budget and live within or below your means both options should serve your purchasing needs sufficiently.

~$~

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Life Is A Stradivarius Violin

Patrick — Tue, 07 Jul 2009 15:59:06 +0000

This is a guest article from FFB, who writes about personal finance and related topics at Free From Broke.

You’ve heard of Stradivarius violins haven’t you? There are instruments that were built in the 1700’s and are considered some of the greatest sounding violins in existence. These violins have been known to sell for millions of dollars as their beauty is virtually unmatched!

Why do I mention this? Because life is like a Stradivarius violin!

As wonderful as they are, collectors and musicians must be extremely careful when using a Stradivarius. As a musician uses the violin the risk wearing down the instrument over time. Care must also be taken in handling and transporting the instrument. There is also risk of it getting stolen. Think about it – If someone told you your car was worth $20 million you would become the most careful driver in the world! You probably wouldn’t even take the car out for a drive. (Work with me here, if I had a $20 million car I’d be selling it ASAP!).

And therein lies a problem – Use the instrument and you risk damaging it or devaluing it. There are only so many out there and to lose any would be a shame. Once one is gone it’s gone!

But in locking i away the world misses out on it’s true beauty – it’s sound! An instrument is meant to be played not stored away. What’s the point of an instrument if it isn’t heard?

So what does a collector do? He has to balance it’s use. Keep it stored away and bring it out for special use so the listeners remember how beautiful it is.

And this is where our lives and finances come into play – Balance.

We only get so much money coming into our lives. If we use up our income it’s gone. You have to work to earn more. So we save. But if all we do is save then what’s the point of the money? We miss out on a lot if the money is socked away and we live a Spartan life. We need to live and should enjoy what our work produces.

So what to do? We have a similar situation as the violin collector. We need to strike a balance. We need to save money for the future so we have it when we need it. At the same time we should spend and enjoy life now.

How do we accomplish that?

Always put away something for the future.
Figure out what you truly love and use your money for that. Ask yourself when you spend if what you’re buying is worth the work time it takes to earn.
Live but don’t waste. Strike a balance so you enjoy your life now but still put away enough to enjoy life later.

Just like a Stradivarius violin your life is beautiful and precious. You need to live but also balance your life and finances so you can enjoy life not just now but in your golden years as well!

~$~

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The Eight Secret Financial Scores

Patrick — Mon, 06 Jul 2009 15:06:22 +0000

The Fair Credit Reporting Act shed a bright light on the credit scoring industry when it gave you the ability to review, for free, your credit history at each of the three bureaus. In addition to credit reports, the FCRA also gave you access to other specialty reports like your insurance claims reports via CLUE and your check writing history via ChexSystems.

However, credit scores are just the beginning. Like an iceberg, it’s what we don’t get to see that often has the great impact on our life. Liz Pulliam Weston recently wrote about 8 secret scores that various financial institutions keep about you.

You are probably familiar with Credit-risk scores which you probably know as your FICO credit score, though various institutions may keep their own version of your score without use of the FICO equation model. However, many people may not be aware of the following financial scores:

Response score – This is a score based on the probability you’ll respond to an offer they send you.
Application score – This score incorporates all the data on your application.
Bankruptcy score – This score tries to predict how likely you will to declare bankruptcy.
Revenue score – This score tries to predict if and how profitable you will be to the institution.
Attrition-risk score – This score tries to predict how likely you will stop using their products.
Behavior score – This score tries to predict future behavior, as nebulous as that sounds.
Transaction score – Every time you charge something to your card, a transaction score is calculated to determine whether to approve the charge.
Collection score – This score is used on accounts in collections by collection agencies to determine how “collectible” it is.

As you can see, some of the other scores are a lot scarier than the standard credit-risk score. Unfortunately, you can’t get access to those scores and there isn’t any pending legislation that would give you access. For now, we’ll have to be content knowing they exist.

This is a guest article from Jim, who writes about personal finance and other money issues at Bargaineering.com.

~$~

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Roundup – Independence Day Edition

Patrick — Sun, 05 Jul 2009 15:21:04 +0000

I hope everyone had a happy and safe Fourth of July weekend. I usually go to a friend’s house each year because he throws a huge party complete with BBQ, beer and fireworks. His fireworks display is not your run of the mill back yard fireworks show either – he and a friend typically buy over $1,000 worth of fireworks and put on a synchronized show. It’s a big hobby of his and one he does well. I missed his party this year because our baby is less than two weeks old, and let’s face it… that is no place for a newborn! I’m already looking forward to next year’s party!

This year my in laws came out to visit us and our new baby, so we took it easy and grilled some burgers. It was a relaxing weekend, which is just what we need right now.

Charity: Please Give Just $1 For The Charities That You Help To Choose. David from The Good Human is running a charity campaign in conjunction with several other organizations. Head on over and see how you can help make a difference in others’ lives.

Free EBook on saving money. The Dough Roller recently released a free EBook titled 99 Painless Ways to Save Serious Money. DR is a great blogger and this is a solid book. I highly recommend it!

A Special Delivery

Patrick — Fri, 03 Jul 2009 19:09:40 +0000

My wife and I had a wonderful surprise last week. Our baby girl decided she was ready to enter the world – 5 weeks early. Baby Emma was just over 5lbs. She was born early, but the doctors and nurses gave her a clean bill of health. It has been an amazing experience to watch her grow and change over the last week. Time has passed so quickly!

Timing. The Friday before our daughter was born was my wife’s last day of work. We wanted to give my wife a month or more away from work to prepare for the transition to motherhood and becoming a stay at home mom. We spent that weekend cleaning the house and preparing for our girl. At the end of the weekend we asked ourselves what we still needed to do if our daughter came the next day. The only thing remaining on our list was packing the bags for the hospital and installing the car seat. We decided those could wait. It turns out you can pack an overnight bag in about 2 minutes when the baby is coming and an ambulance is on the way!

The labor experience. Late last Wednesday night my wife went into what she and the doctors thought was a false labor. They examined her and ran some labs, and decided she should go home and take it easy. 4 hours later my wife was in full blown labor. It happened so quickly that I needed to call an ambulance to pick her up for the 10 mile ride to the hospital. The guys from the fire department were the first responders and they were wonderful.

The same doctor was on call at the hospital. He took one look at my wife and said “you are going to deliver this baby tonight,” and Emma was born within the hour. We are still amazed at how quickly the labor went and how unexpected the timing was.

Babies are a lot of work. I know that is an understatement! To be honest, I have no idea where my time has gone. Over the last few days my wife and I have made a few trips to the hospital and clinic for checkups and made a couple trips to the grocery store and Babies R Us to pick up some last minute supplies. The rest of the time has been spent getting to know our daughter and trying to get caught up on sleep. Baby Emma has her days and nights mixed up and likes to play at night and sleep all day. Hopefully we can get her on a normal schedule in the near future.

A few random thoughts about being a new parent:

I have an amazing amount of love, respect, and admiration for my wife.
Having a baby is like falling in love all over again.
I have a new found respect for my parents and grandparents.
My life has been forever changed, and I love it.
I understand how every new parent can state his/her child is the most beautiful and precious thing ever – and mean it.
I can look at my baby girl all day and not notice time going by.
My Mom says my daughter looks like me, my mother-in-law says she looks like my wife, and I don’t know who she looks like. But she is beautiful.
We are thankful for our friends, family, and church members, who have been very supportive with phone calls, visits, and bringing meals.
My baby girl has 423 nicknames already – the most commonly used are Baby Pants, Baby Goat (she makes a little goat sound), and Eagle Eye Emma (she often looks at us and the world around her with one eye open and one eye closed).
The best recipe for a nap is a baseball game, a warm baby on your chest, and a recliner.
I’m constantly singing made up songs to my baby girl. I even find myself humming the tunes when she is away from me or sleeping.
I haven’t seen the hospital bill or ambulance bill, and right now I don’t care.
The book Baby Bargains has been invaluable for product ratings and suggestions.
I love our Boppy… and the Diaper Geenie.

This past week has been a whirlwind of emotions and new feelings, but it has been worth every moment. Thanks for all the kind e-mails and well wishes sent our way.

~$~

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Things to Consider When Leaving Your Job

Patrick — Wed, 24 Jun 2009 13:19:45 +0000

Last Friday was my wife’s final day of work before becoming a stay at home mom. This was a big change for her, and we spent Friday evening going over her out-processing meeting with her Human Resources rep and going over her options – benefits, retirement accounts, etc. We are using my health insurance, so that won’t require any changes. But we have some decisions to make regarding retirement accounts and a few other things. I changed jobs a year ago, so most of this was relatively fresh for me. But if you haven’t left a job recently, these tips can help make for a smooth transition.

Things to consider when leaving your job

Leaving your job can have a dramatic impact – it is often a time of mixed emotions. The feelings can be even more mixed when you are dealing with a layoff or other unforeseen event. Since not everyone can plan their exit, these tips may make your transition easier.

Update resume. You should update your resume as soon as you know you will be leaving your job because your recent accomplishments and job duties are still fresh on your mind. Having an updated resume will be helpful in finding a new job in the near term, or if you are taking a long break, will make it easier to step back into your job search.

Create a Continuity binder. If someone will be taking over your old position you will want to make the transition as smooth for them and your old company as possible. A continuity binder that lists your duties, procedures, and resources will go a long way in helping your former company maintain consistent service and will give your former managers and coworkers a good impression – hopefully giving your better references in the long run.

Network and references. Even if you are leaving your current industry, or leaving the workforce, it never hurts to maintain a good network. You never know when you may may be able to offer assistance to someone in your network or vice versa. Keep in touch with your contacts via phone, e-mail, professional associations, or social websites such as LinkedIn or FaceBook.

401k or other retirement accounts. Most companies offer a 401k or similar retirement plan, and it is the last thing many people think about when leaving their company is their retirement plan. At least until their HR rep breezes through your options at lightning speed. Basically you have the following options:

Leave your 401k at your former company.
Transfer the 401k to your new company (if you have a new job lined up).
Rollover your 401k into and IRA or other eligible retirement account.
Withdraw the funds in your 401k. (may be subject to early withdrawal penalties).

In most cases, people will be better off rolling over their 401k into an IRA or a 401k at their new company. Here are more tips about what to do with your 401k when you leave your company.

Benefits. Many companies offer benefits such as health insurance, life insurance, disability insurance, or long term care insurance. Be sure you understand your coverage and options when you leave your company so your coverage doesn’t lapse. You may be eligible for COBRA insurance for your health care, and some companies may offer a short term extension on other benefits. If not, then you will want to look into purchasing life insurance, disability insurance, or long term care insurance. (Note: If you are laid if between Sept. 1, 2008, and Dec. 31, 2009, you may be eligible for COBRA insurance subsidies).

Exit interview. The last thing you may have to do is an exit interview, but not all companies offer or require them. The best advice I can give is to keep your exit interview short and sweet – give only the information necessary, and most importantly, don’t burn any bridges! That is just bad form and you never know when you may run into someone again.

File for unemployment benefits. If you were laid off, the first thing you want to do is file for unemployment benefits. Most states require that new unemployment filers wait one week before receiving benefits, so the sooner you get the process started, the more quickly you can start receiving benefits. The recent stimulus package included extended unemployment benefits in certain instances. Check with your state employment bureau for more details.

Do you have any tips to add about leaving a job?

~$~

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Ally Bank Review

Patrick — Tue, 23 Jun 2009 11:49:25 +0000

Last month, the banking division of GMAC Financial rebranded under the name Ally Bank. With GM going into bankruptcy, they decided to put some distance between themselves and the name GM. That doesn’t mean they are in trouble, though. The company is no longer owned by GM – they sold a majority share of GMAC financial several years ago. But with GM the auto company surrounded by bad press, they decided to rebrand under a positive note. Thankfully, Ally Bank is well financed and its accounts are fully backed by the FDIC, which means you can rest assured knowing your money is safe.

Ally Bank Review

So what has changed at Ally Bank? Besides changing their logo, Ally Bank has been busy seeking out new customers by increasing their interest rates to among the best in the nation, offering new services, and enhancing their customer service.

Ally Bank financial products

Ally Bank offers four main products: Online Savings Account, Money Market Account, Classic CD, and No Penalty CD.

Online Savings Account. Currently offering 1.95% interest rate, among the highest in the nation. There are no minimum balances, no account opening minimums, and no maintenance fees.
Money Market Account. The Ally Bank Money Market Account offers a rate of 1.70% APY. Account holders have access to a check card with free ATM transactions, but there is a limit of 6 withdrawals per month (the Federal Reserve limits the number of transfers and withdrawals from a savings accounts to 6 per month).
Classic CDs. Ally offers Certificates of Deposit (CDs) of varying lengths and interest rates. I recommend visiting the Ally Bank CD page for more information about current rates.
No penalty CDs. One of the features that sets Ally Bank CDs apart from CDs at other banks is the no penalty CD. The no penalty CD allows you to lock in the interest rate while still having the option to withdraw your funds without any penalties. The downside is that the no penalty CD rates are slightly lower than the traditional CD rates. But they are also higher than the standard interest rates, so you have a chance to earn more interest than a savings account. This gives people flexibility in the event of an emergency or if they decide to withdraw their funds because rates rise and they can lock in a better rate.

Opening an account at Ally Bank

Opening an account at Ally Bank is a quick and relatively painless process (as painless as opening any financial account nowadays). Be prepared to have your personal information ready, and be aware that you will have to submit to a credit check when you apply. Unlike some banks, Ally Bank approves applications based on credit risk, so your credit worthiness may affect your ability to open an account. When you open your account you also have the option of simultaneously opening CDs or a Money market account, which is a nice feature.

Ally Bank customer service

I haven’t had to use Ally’s customer service yet, but their support availability is greater than most banks. Ally Bank offers online and 24 hour telephone customer service options:

Ally Bank Telephone Number: 1-877-247-ALLY (2559) for 24/7 assistance
Ally Bank Address: Ally Bank, P.O.Box 13625, Philadelphia, PA 19101
Ally Bank E-mail: customercare@ally.com

Other features at Ally Bank

Ally Bank offers an easy to use user interface,

Each Ally Bank account is FDIC insured to $250,000.
Ally Bank supports Quicken, Quicken Online, Microsoft Money, and a host of other online money management tools.
Ability to choose paper or electronic statements.
Ability to create sub-accounts with different names and account numbers (great for targeted savings, or setting up a child’s account).
High level of online security – if you try logging on from a computer that isn’t registered with Ally Bank they will send you an e-mail with a password good for one use (unless you wish to register the computer).

Conclusion

Ally Bank offers some of the highest interest rates in the nation and all accounts are FDIC insured. Add the no penalty CDs, money market account, lack of fees or minimums, high security ratings, and solid customer service, and you have the recipe for a good bank. If you are looking for a new bank or higher interest rates, Ally Bank is a worthy option.

~$~

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Cash Money Life

Roundup – Cutest Little Tax Deduction Edition

Recommended Articles:

Everyone Else Knows Your Credit Score

7 Things To Consider When Moving Offices

1. Line up the movers.

2. Call the phone company ASAP.

3. Don’t forget about the DSL.

4. You’ve got mail.

5. Plan for additional needs.

6. Don’t forget to tell your customers.

7. Make the announcement.

Debit Card Versus Credit Card – Which Is Better?

Differences Between Credit Cards and Debit Cards

Which is better – credit or debit?

Life Is A Stradivarius Violin

The Eight Secret Financial Scores

Roundup – Independence Day Edition

Recommended Financial Articles:

A Special Delivery

Things to Consider When Leaving Your Job

Things to consider when leaving your job

Ally Bank Review

Ally Bank Review

Ally Bank financial products

Opening an account at Ally Bank

Ally Bank customer service

Other features at Ally Bank

Conclusion