My Two Dollars

Money Quote Friday - True Bliss Edition.

david — Fri, 03 Jul 2009 13:30:05 +0000

“Materialism is the only form of distraction from true bliss.” -Doug Horton

If you are depending on your “stuff” to make you happy, you are setting yourself up for a life of misery. True happiness comes from who you are, not what you own. Have a great weekend, and enjoy the 4th tomorrow!

Money Quote Friday - True Bliss Edition.

Share and Enjoy:

You might also like:

How To Fix A Mistake On Your Credit Report.

david — Thu, 02 Jul 2009 13:30:07 +0000

Whether someone alerts you to it or not, sometimes mistakes show up on your credit report. And while I have not had any major things come up, I have had credit lines (and even an old car loan!) show as still being open when in fact they had been closed a long while back. If you have been told or are curious to see if there are any mistakes on your report and want to work on fixing them, here are some steps you should take.

First off, you should have a copy of your credit report from each of the three big credit bureaus: Equifax, Experian, and Transunion. Keep in mind that you are entitled to one free credit report from each per year, and you can get that from www.annualcreditreport.com. This is the only legitimate place sponsored by the credit bureaus themselves where you can get a free credit report online, so do not be fooled by other services who offer you free credit reports in exchange for signing up for credit monitoring and the like. I get my 3 reports a year from that site - one every 4 months so I can see my report throughout the year. If you already got your free ones, you can pay for another copy from the agencies themselves.

photo credit: TheTruthAboutMortgage.com

Search carefully through all three reports for the mistake(s) that you think might exist. Be sure to check for open and closed lines of credit, credit cards you don’t have, bank loans that might not be yours, addresses that you never lived at - anything out of the norm that you don’t recognize could be a sign of an error.

When you find any mistake, file a dispute claim with each credit bureau online at their website. Explain to them what you think the issue is and provide any backup information that will help them verify your claims. The credit bureaus will then contact the bank/lender/credit card company and see what information they can get back from them either agree with your claim or deny it.

If the company denies your claims, you will have to take the issue up with them directly. So if the problem lies with Visa, you will have to deal with them to try to get some resolution. If the company agrees with your claims, then the credit bureaus will remove the error from your credit report.

It is always good to monitor your credit report all year, and that is why I pull one of my free ones every 4 months so I can keep track. If you have not already started doing that, go ahead and get a copy of one of them from www.annualcreditreport.com. and start monitoring your reports!

How To Fix A Mistake On Your Credit Report.

Share and Enjoy:

You might also like:

Find The 2009 Sales Tax Holiday For Your State.

david — Wed, 01 Jul 2009 13:30:59 +0000

It’s just about that time of year again, when most states in America offer up a few days to shop without paying sales tax. While some states are not having the days this year (Massachusetts & California being two states without “no sales tax” days), many states will have sales tax holiday shopping days for their residents. To help you out, I have assembled the following list of the dates, number of shopping days, the items included, and the website you can go to for more information. Enjoy!

Alabama

August 7-9, clothing - $100, computers - $750, school supplies - $50, books - $30, http://www.ador.state.al.us/salestax/SalesTaxHol.htm

Connecticut

August 16-22, clothing and footwear - $300, http://www.ct.gov/

District of Columbia

August 1-9 & Nov. 27 - Dec. 6, clothing - $100, school supplies - $100, http://otr.cfo.dc.gov/otr/

Georgia

July 30 - Aug. 2, school supplies - $20, clothing - $100, computer - $1,500

Georgia

October 1-4, energy and water efficient products - $1,500

Iowa

August 7-8, clothing - $100, http://www.iowaccess.org/tax/

Louisiana

August 7-8 , all TPP - $2,500, http://www.revenue.louisiana.gov/

Mississippi

July 31-August 1, clothing & footwear - $100

Missouri

August 7-9, clothing - $100, computers - $3,500, school supplies - $50, http://www.dor.mo.gov/tax/

New Mexico

August 7-9, clothing - $100, computers - $1,000, school supplies - $15, http://www.state.nm.us/tax/

North Carolina

August 7-9, clothing - $100, school supplies - $100, instructional material - $300, computers - $3,500, other comp. - $250, sports equip - $50, http://www.dornc.com/

North Carolina

November 6-8, energy star products, http://www.dornc.com/

Oklahoma

August 7-9, clothing - $100, http://www.tax.ok.gov/

South Carolina

August 7-9, clothing, school supplies, computers, other, http://www.sctax.org/

Tennessee

August 7-9, clothing - $100, school supplies - $100, computers - $1,500, http://tn.gov/revenue/

Texas

August 21-23, clothing and backpacks - $100, http://www.window.state.tx.us/

Virginia

August 7-9, clothing - $100, school supplies - $20, http://www.tax.virginia.gov/

Virginia

October 9-12, energy star products - $2,500, http://www.tax.virginia.gov/

West Virginia

September 1 - November 30, energy star products - $5,000

Find The 2009 Sales Tax Holiday For Your State.

Share and Enjoy:

You might also like:

What Your Moving Company Won’t Tell You Until You Sign The Paperwork.

david — Tue, 30 Jun 2009 13:30:47 +0000

Last week, Smart Money ran an article discussing the 10 things that moving companies won’t voluntarily tell you that I found pretty interesting, as I have hired major moving companies 3 times in the last 10 years. And while I did get my stuff each time, the amount of money I was charged did change each time when the movers arrived, the timeline of when I would get my stuff was different than promised, and I always had a few scratches and dents on my belongings. So after reading their article on movers, I decided to go through each of their 10 things that they think movers don’t tell you - and give you my opinion on each after hiring them so many times!

1. “We’ll hijack your stuff.”

They say: Spyro Malaspinas says that Nation Van Lines, which he hired to move his belongings from Austin, Tex., to Chicago in January 2003, hiked his bill from an estimate of $1,050 to nearly $4,300. The movers, according to Malaspinas, said his goods measured 500 cubic feet more than anticipated. When Malaspinas threatened to call the police, the drivers made off with his possessions.

I say: Yep, seen it - even with an estimator coming out to my house and giving me a binding estimate. Once they got to my house, they said my weight was way over what they were told it would be and they wanted an extra $750 before they would release my belongings. Well, I needed my stuff and since legal fees would have cost more than that, I relented and paid them to get my stuff back.

2. “We’re popular, especially with the FBI .”

They say: The feds indicted a total of 16 moving companies and 74 operators, owners, and employees on various charges following a two-year investigation called Operation Stow Biz.

I say: Good luck finding a moving company that doesn’t have multiple black marks on their record. I couldn’t find an honest one in the bunch, or at least one I felt comfortable with. Even asking my friends who have moved didn’t provide any references. I guess I should start my own moving company…

3. “Don’t mess with us; we’re virtually untouchable.”

They say: There are federal laws to contend with that, historically speaking, have tended to protect moving companies more than consumers. It used to be, for example, that while dissatisfied customers could sue their moving company for goods lost in a move, they stood very little chance of recovering even their basic monetary value, let alone winning any punitive damages on top of that amount.

I say: As I mentioned, good luck trusting anyone or even getting your way. The BBB is littered with complaints about virtually all movers, and no one is going to spend thousands of dollars taking these guys to court. It’s a win-win for them most of the time.

4. “Someone will deliver your stuff—it just might not be us.”

They say: In the hectic summer months, a mover might get so busy that it asks another company to help out with a job. That’s fine, but the consumer should be notified in advance of the deal.

I say: No experience with this one, but it would be nice if the company told you that even though they picked up your stuff, they won’t be the ones bringing it to you.

5. “How much experience do our movers have? At least a day or two.”

They say: Even if one company does handle your entire move, don’t assume that the movers who show up are actual employees of that company

I say: You got that right. One time, our moving company hired 3 random guys that looked like they were about to abscond with our stuff. They were day laborers from the local Home Depot parking lot! Not exactly what you had in mind as you paid thousands of dollars to have your stuff moved safely.

6. “Our pricing policies are wacko.”

They say: For instance, it may be tempting to bypass getting an in-house and written estimate from a mover, opting instead to save a few minutes with a telephone or online estimate. But if you take the shortcut, be prepared to get burned.

I say: Even without taking a shortcut, you can get burned. I had written, on-site estimates that were different by over $1,500. It’s almost as if these guys make it up as they go.

7. “Extra fees and charges? You can count on it.”

They say: There are many ways for movers to squeeze extra dollars from customers. Besides charges for accessorial services, movers have been known to levy exorbitant fees for such things as packing supplies.

I say: Watch out for the fees, they add up quickly. Anything you can do yourself, get started doing it. Buy your own supplies, do your own packing. And read every single line of your bill.

8. “We’ve never met a schedule we didn’t ignore.”

They say: In January 2002, Tyrone Kelley was set to move from Stoughton, Mass., to Las Vegas, but the movers didn’t arrive until 6 p.m., seven hours late. Says Kelley, “It’s a common tactic to arrive after business hours so that it’s too late for you to find another moving company.”

I say: While I didn’t have any issues with them showing up to get my stuff on time, I did have issues with them arriving at my destination on time. Excuse after excuse, delay after delay - I felt as though with some of these guys that it was the first time they had ever driven a moving truck across the country. They (and their dispatcher) had all sorts of excuses for the delays, and even had new ones every morning. It was pretty bad.

9. “Surprise! Our insurance isn’t worth much.”

They say: A mover’s liability coverage, known as “valuation,” doesn’t work like a typical insurance policy. For interstate moves, standard valuation limits the carrier’s liability to no more than 60 cents per pound, and it’s often less for in-state moves. So if your 50-pound plasma screen TV gets smashed, you’ll collect just $30.

I say: Buy the extra insurance if it is offered, or ask your homeowners insurance company if they can cover some too. I bought insurance from an outside company and it only cost me about $150 to cover the total estimated replacement cost. Well worth it in this case.

10. “We change addresses as often as our customers do.”

They say:The FMCSA lacks the muscle to rein in rogue movers. The agency fined 117 carriers in 2007 at an average amount of $13,000 per carrier—chump change for an industry that brings in $10 billion annually. And companies that do get censured often remain defiant.

I say: If I was constantly getting complaints, I might consider moving often too!

My best advice for dealing with movers? Ask around. All my friends gave me advice on who they used, which helped me to at least get rid of the worst ones from our list. Websites, review sites, the BBB - they don’t really give you much information to help you make a decision. All movers have many complaints lodged against them, so it’s very hard to go on that information alone.

Have you had any experience with moving companies? Good? Bad? Ugly? Let us know!

What Your Moving Company Won’t Tell You Until You Sign The Paperwork.

Share and Enjoy:

You might also like:

My Neighbor Has Gone Without Health Insurance For 30 Years.

david — Mon, 29 Jun 2009 13:30:37 +0000

And he can afford it - it’s not about the monthly cost. It’s about the fact that even if you have insurance, they don’t necessarily cover much of anything, especially with private insurance. (He is self-employed.) Since he was 22 years old, he has gone without health insurance, choosing instead to lead a VERY healthy lifestyle, a monthly visit to the chiropractor for his back, and using a lot of natural medicine and healing techniques on himself. He is fit, doesn’t eat any junk or man-made food, only drinks water and tea, and exercises daily. Once a year or so he pays to go to a doctor for a physical and a few blood tests - that’s it. Otherwise, he never goes to a Western doctor for anything and he heads down to Mexico for any dental work he needs. (Which MANY Americans due because of the cost here in the States) Is he crazy or is he doing the smarter thing than the rest of us who don’t get subsidized insurance through their employer?

If I had to choose again between paying for private insurance or going without, I would go without. That is, if I could even get it again after having cancer - considered a pre-existing condition.

For several years after I quit my corporate gig, I paid for private health insurance through BCBS. It was nearly $400 a month just in premium payments - and in 2008 alone I ended up spending $14,296 of my own money on health care. That was WITH health insurance. It’s not that the tests were really that much more money than that and that if I didn’t have insurance I would have owed more - it’s that the insurance didn’t cover A, B, or C tests. So much for insurance coming to the rescue. I do remember my corporate group insurance being better, and my wife’s plan at her work is also better, but private insurance just does not cover individuals to the same extent as group plans. Even after paying that premium for years, it really didn’t help when it came time to actually use the insurance I had been paying for. And thus, if I am ever in that situation again, I will go without. I will start an HSA and just put a few hundred in it every month, and get some medical coverage on my automobile policy just in case. After all, if private insurance isn’t going to pay for the care I might need some day, why continue to pay the monthly premiums?

As I mentioned in the title of this article, my neighbor has gone without insurance for 30 years. If his monthly premium for private insurance had been around $300 a month (let’s keep it at that figure for simplicity sake and to account for inflation), insurance would have cost him $300 X 12 X 30 = $108,000 over the last 30 years. That’s a lot of dough to shell out for not a lot of coverage. And unlike most people, especially in America, he takes incredible care of himself. And sure, an accident could still befall him at any time. But private insurance isn’t likely to pay much of his bill anyway if he did have one, so he took his chances on not sending them hundreds of dollars every month.

photo credit: photomequickbooth

So, this leads me to my question - what do you guys think about this? Plenty of people cannot afford health insurance still end up going to the doctor and owing thousands upon thousands of dollars. Some people, like my neighbor, choose to go without insurance and would also owe thousands if he did get sick or had an accident. And people like me can afford it and did pay for it, but also end up owing thousands. So…what do you think?

Reform is needed in this country, no doubt about it. I am not sure of the best way, but something needs to give. Doctors are going out of business or into private doctor-run plans because they aren’t getting paid what they should be insurance companies. Insurance companies are canceling policies of the insured, sometimes without a reason, and giving out bonuses to employees who reject claims. And hospitals are barely breaking even because of underpayment by insurance companies and the influx of the uninsured into their emergency rooms. Something needs to give, and I am betting it will be a public option of some sort by the time we are through. Personally I welcome the concept, as long as people still have a choice as to which company they want to pay and what doctor they see. Affordable health care really shouldn’t be a privilege; it should be a basic human right.

My Neighbor Has Gone Without Health Insurance For 30 Years.

Share and Enjoy:

You might also like:

Sunday Money Roundup - Friends In Town Edition.

david — Sun, 28 Jun 2009 13:30:37 +0000

This weekend I am getting some visitors - a friend from high school (and his girlfriend) who I have not seen for about 6-7 years. They are passing through New Mexico on their way to their new home in Los Angeles and are stopping by for a night (should I charge them a room fee?); it will be good to see my old friend again. While we catch up, here are some articles that caught my eye this past week. Enjoy!

Money Ning talks about Side Hustle, Self Employed, Entrepreneurship.

Debt Free Adventure discusses the Powerful Advantages of Renting a Home Before Buying.

Frugal Dad asks an important question - “If You Could Only Take Three Things From Your Home, What Would They Be?” Mine would be my cat, my laptop computer, and my portable safe.

Cash Money Life wants to tell you about the Things to Consider When Leaving Your Job. I left my job years ago with no plan, and it worked out…but I don’t recommend it for everyone!

Free From Broke asks the question Do You Keep Money Secrets From Your Spouse?. Well, do you?

Being Frugal wants to help you Protect Your House While You’re on Vacation. I don’t need to worry about this, because someone would have to find my house first!

Mighty Bargain Hunter has a great article up titled “Five more great ways to slam the door on your customers“. Good stuff…

Green Panda Treehouse wants to help you find a reliable and trustworthy mechanic.

Living Almost Large asks if it is cheaper to drive or fly. Since I don’t fly, I always drive…unless I take the train, which is even better.

Money Smart Life wants to help you start a business this summer.

My Two Dollars also took place in a few carnivals this week as well:

The Carnival of Personal Finance #210, where my article “When Spending Money is Worth it” was chosen as an Editor’s Pick.

Money Hacks Carnival #70, where my article “If You Could Pick Your Benefits At Work, What Would You Pick?” was chosen as a best in category.

The Festival of Frugality, where the article “How To Get Your Monthly Electric Bill Below $25” was included.

Sunday Money Roundup - Friends In Town Edition.

Share and Enjoy:

You might also like:

Credit Card Research: IberiaBank Visa Platinum Rewards Card.

david — Sat, 27 Jun 2009 13:30:53 +0000

Since I get emails all the time asking about different credit cards and if people should be signing up for this, that, or the other one, this will be a new feature every week about different credit cards. This week’s card is the IberiaBank Visa Platinum Rewards Card. Through the rewards program, cardholders earn one point per dollar spent on all qualifying purchases. Points are redeemable for merchandise, travel and gift certificates to participating restaurants and merchants. (If you are reading this by RSS, you might have to click through to see all the details)

Credit Card Research: IberiaBank Visa Platinum Rewards Card.

Share and Enjoy:

You might also like:

Money Quote Friday - Prospect Of Deliverance Edition.

david — Fri, 26 Jun 2009 13:30:18 +0000

“The most terrible thing about materialism, even more terrible than its proneness to violence, is its boredom, from which sex, alcohol, drugs, all devices for putting out the accusing light of reason and suppressing the unrealizable aspirations of love, offer a prospect of deliverance.” -Malcolm Muggeridge

Ain’t that the truth, and unfortunately we all fall for it at some point in our lives. Have a fantastic weekend everyone - get outdoors and enjoy the summer!

Money Quote Friday - Prospect Of Deliverance Edition.

Share and Enjoy:

You might also like:

Things You Own End Up Owning You.

david — Thu, 25 Jun 2009 13:30:43 +0000

The title of this post is one of my favorite quotes from one of my favorite movies - Fight Club. The quote is from Tyler Durden, (and without telling you too much in case you haven’t seen the movie) who is anti-establishment and anti-consumerism…making it one of those movies that every person who feels the same should see just for his quotes alone! I have quoted another line from the movie in my Money Quote Friday series a while back - “You are not your khakis“…so you can see what kind of guy he is - a lot like me in a lot of ways. I guess that is why I identify with the movie so well, as I too don’t believe that what you own or buy makes you who you are or can make you happy. It’s just stuff! Even if you can pay cash for everything you own and not pay on credit, you still have to store, clean, move, maintain, repair, and replace your “stuff” eventually, so it gets you either/or both ways!

Tyler Durden

But back to the title of the post - “Things you own end up owning you“. To me, this means that your stuff can own you in a few different ways, depending on your personal situation:

Your stuff can force you to live in a place you would prefer not to, just for a high-paying job.
Your stuff can make you keep a job you don’t like, just for the money to pay the bills.
Your stuff can make you send your kids to a specific school, when maybe they would be better off at a different one.
Your stuff could make you pay for a storage facility or continuously move to bigger houses, just to keep a roof over it.
Your stuff could make you take on a second job just to impress your friends.
Your stuff could require you to work well into your retirement years.
Your stuff might cost so much every month that you cannot take your family on a vacation or send your kids to summer camp.

I could go on and on, but I think you get the gist of it, right? Even if you have the money to buy something in the first place, guess where that money normally comes from? Work. And the more stuff you have, the more money you need to make and/or continue to make to support your lifestyle. I am not innocent of this behavior; far from it. I used to live high on the hog too, even though it was a lifestyle built on a pyramid of debt and minimum payments just waiting to collapse. And now, even though I make way more than I did when I was 25 years old, I spend less - on housing, on cars, on clothes, on stereo equipment, on my entire lifestyle. I have a nice place to live, I have a car to drive, I have clothes on my back, and I have food on the table. No need for much more, especially since it allows me to work for myself in a small, remote mountain town. But because of the changes, I do still have a little extra money to take vacations or make special purchases when I need to without going into debt. I learned from my mistakes, and I am hopeful that my mistakes can help you learn too before your stuff ends up owning you like it did me.

After all, it’s just stuff - and this is life we are talking about. You get one shot - do it right. It took me years to figure that out…hope you get it faster than I did!

Things You Own End Up Owning You.

Share and Enjoy:

You might also like:

Test Your Credit IQ By Taking This Quiz.

david — Wed, 24 Jun 2009 13:30:40 +0000

For those of you looking to see just how much you know about credit, you should take this quiz from Credit Karma. A good credit score can save you thousands of dollars on a loan, but many consumers don’t know what makes up that three digit number or have any idea what’s in their credit report. Take this quiz to see just how smart you really are when it comes to this important aspect of your financial health. (Answers below)

1. What is the average credit card debt?

a. $5000
b. $7000
c. $8000
d. $10,000

2. Many consumers can save ________ in a lifetime through better credit management.

a. $100,000
b. $1 million
c. $500,000
d. $750,000

3. True or False. Debt to income ratio has no impact on a credit score.

4. What component weighs most on your credit score?

a. Length of credit history
b. Credit utilization
c. Total accounts
d. On-time payment History

5. Closing your oldest account may reduce your credit score because it effects:

a. Credit Utilization
b. Length of credit history
c. On-time payment history
d. All the above

6. True or False: Using your credit cards regularly is better than not using them at all.

7. You can improve your credit score by

a. Closing credit cards you don’t use
b. Not using your credit cards
c. Reviewing your credit report regularly and correcting any errors
d. Not paying your bills on time

8. Do credit inquiries impact your credit score?

1. Yes
2. No
3. It depends

9. In today’s economy, good credit is essential when:

1. Trying to secure a home loan
2. Applying for a job
3. Applying to rent an apartment
4. All of the above

10. True or False. A great credit score is considered anything above 690.

Answers

1. C. $8000. The average consumer has $8,000 in credit card debt. Credit cards can be a slippery slope of spending beyond your means if you aren’t careful. Most consumers don’t realize paying the monthly minimum will keep us in debt for dozens of years.

2. B. $1 million - A good credit score qualifies you for better interest rates on home loans, car loans and student loans. Over the course of a lifetime, these interest fees can really add up.

3. True. Length of credit history, credit utilization, total accounts, on-time payment history and credit inquiries are the only components of a credit score. You can learn more about the impact each of these has at www.creditkarma.com/report.

4. D. On-Time payment history. On average, a person with perfect on-time payment history has a credit score over 700. However, make just one late payment and your credit score can drop 50 points.

5. D. All of the above - Credit utilization, length of credit history and on-time payment history are all important components of a credit score. Having a bad grade in one area can have a huge impact on your credit score.

6. True – Credit card utilization is defined as the total credit card debt you have divided by the total available credit on your credit cards. High credit card utilization can be a warning sign of credit risk. According to Credit Karma consumers with a 0% credit card utilization had a credit score 73 points lower than consumer who had a credit card utilization of 1-20%.

7. C. Credit reports are rich with data and often have a error or two. If you contact credit reporting agencies and have incorrect information removed, you may improve your score. Avoiding credit entirely means you’ll have no credit history, which will may it harder to get a loan.

8. C. It depends. Hard inquiries pulled by lenders do have an impact on your credit score, but soft inquiries don’t. When you pull your credit score simply for information purposes through your written authorization, it is considered a soft inquiry and has no impact on your actual credit score.

9. D. All of the above. Employers and renters are more apt to check your credit file before offering you a job or a place to live. To get your credit in top shape, it’s essential to maintain a low debt to credit ratio.

10. False. That used to be true prior to the recession. Currently, the average American has a credit score that comes in right around 690, but, even a 690 credit score provides no guarantees when it comes to getting a loan. With the current state of the economic climate, banks are much less likely to even lend to good credit consumers and when they do it’s often at a higher price.

Analysis

If you missed 0-2 questions, you know credit. You understand the important of being a smart credit use and likely have a high credit score.

If you missed 3-4 questions, you’re doing ok. You likely have an average credit score and understand the importance of paying bills on time.

If you missed more than 5 questions, chances are your credit is in need of improvement and you should start taking steps towards responsible credit use.

So, how did you do?

Test Your Credit IQ By Taking This Quiz.

Share and Enjoy:

You might also like: