# 1 – Your local bank or credit union

This was a huge resource for me starting out because I didn’t know where else to turn. It also helped that I was working at the bank, but the reality is, they are paid to help you.

You’ll want to make sure you’re speaking to someone knowledgeable about what you are trying to accomplish. Feel free to ask them questions about their job, what they help people with, and their experience. Remember, no one knows everything, but having someone that’s had some experience in what you’re going through is a good start.

# 2 – Your library

Personal finance books are many these days and if you’re going to figure out how to save money so you can reduce debt, why not start with checking those books out rather then buying them? There are a ton out there, so to help you sort through them, check out Get Rich Slowly’s post on the top 25 essential personal finance books. My personal favorites are “Your Money or Your Life,” “I Will Teach You To Be Rich,” and “The Automatic Millionaire.”

# 3 – Your Parents

I know this sounds weird if you’re in this position because they never taught you about finances, but they’re probably good with their finances, they just didn’t know how to pass along the knowledge. Sit down with your parents and ask them what they do, what mistakes they’ve made over the years, and how they’ve overcome it. Find out what works for them and what doesn’t. Afterwards, sit down and see if any of their tricks are things you can incorporate into your plan.

# 4 – Bankrate.com

If you haven’t checked out this site, you absolutely need to. It’s got great information, tips and tricks, and it compares savings rates amongst the top banks. What I found most beneficial about this site was its wide array of calculators. Those calculators can certainly help you in determining your course of action.

# 5 – Suze Orman, Dave Ramsey, or a little of both

I think we all know I’m not a huge fan of Dave’s, but I concede that his program works for some people. While I still think in 99.99% of cases people pay more doing things his way, at least he gets people out of debt. So, when I started on my venture, I went the Suze Orman route. I watched her shows, read her books, anything I could cheaply get my hands on. If the Dave Ramsey method works for you, then use that resource. Or, if you’re not completely sold on either ideology, mesh them together and create your own!

# 6 – Mint.com, or any other site your prefer

My biggest challenge when I decided to get out of debt was making a budget. I had no clue what I was doing or how to go about it, so there was no way I could make my own budget sheet. Well, I probably could of, but I’m of the mentality to work smarter, not harder. So, I went to Mint.com. I like that it sends me reminders, I can change and alter the categories, and it’s user-friendly enough that I was able to get through it with no problems.

If you decide to use software to help with your budgeting, be sure to go with something that’s free. No sense in paying someone else to create a budget sheet for yourself when there are so many options for free one’s out there.

# 7 – Financial magazines

Most magazines geared towards personal finance are loaded with good tips for beginners. Again, since you’re trying to reduce your spending, I don’t recommend getting a subscription, but your library probably has an excellent selection of magazines available for your peruse.

# 8 – Internet

The internet is a great source of information and it’s usually the most convenient way to find what you’re looking for. Not only can you find news articles related to personal finance, but a lot of the magazines I mentioned before can be viewed online as well. In addition to those things, there are also personal finance blogs which offer a wealth of information…one of which you’re reading now! ;)

I must inject a little caution when looking at material from the internet, though. As I mentioned earlier, no one knows everything. And they certainly don’t know what’s best for your situation. So, when considering what you’ve read online, be sure it fits with your goals and what you can readily achieve. This is especially true of investment advice…your results may not be comparable with someone else’s.

Have I missed any other resources you think would be good for someone just starting out? What was your first step when you decided to take control of your finances?

But, since it came up, I thought I’d discuss it with you guys to see where you stand. Most people I talk to about prenups don’t think they need one. They believe that they and their respective partner will never break up. While I think that’s a naive way to look at things, I do believe that some people feel it’s more a matter of trust in the person that you want to spend the rest of your life with then it is that they’ll never split up. Still, a prenup protects a lot more then you think.

What does a prenup cover?

A prenup can cover pretty much anything you want it to cover, both present and future. You’ll want to adhere to state laws and ensure that the agreement is fair to both parties or you may find that the courts will rule against it in the event of a divorce. You also need to understand that you can’t opt out of child support, and in most cases, alimony with a prenup, so don’t try. Here’s but a few things a prenup can protect for each party.

# 1 – Property

This is pretty standard. Generally speaking, property refers to land and/or homes. The prenup states how the asset(s) are to be divided amongst the divorcees, or if it is to be sold, how much goes to each respective party. This is a particularly important clause if you wish to keep a family home within the family, or if you have property that you wish to have passed to children from a previous marriage. This clause can also go into personal property such as cars and household goods.

# 2 – Debts

Many a person’s credit has been ruined because they’ve failed to plan for the amount of debt one spouse has at the time of divorce. A prenup can ensure that if one spouse racks up a ton of debt the other is not responsible for it after a divorce. This gets tricky with cards and loans that are jointly held, so it’s important to be very clear about the debt loan expectation during discussions before marriage, as well as, in the prenup.

# 3 – Assets for Children

In today’s society divorce is a common and acceptable practice. If two people cannot genuinely make their marriage work, divorce is the order of the day. However, in many cases, there are kids involved and getting remarried can seriously affect them and what they may be entitled to if something happens to their parent. A prenup can specifically carve out certain assets for children from a previous marriage and ensure they are provided for if something were to happen to the parent.

# 4 – Businesses

If there are family businesses or partnerships involved, then a prenup can keep those intact. Each party would need to list their percentage of ownership and what it is that they expect to receive out of it if they were to split, or it can simply be that one person signs the rights over to the other. Whatever the decision, it has to be fair to both parties.

# 5 – Future Assets

Maybe your portfolio isn’t very big right now, but you have plans to grow your income. Well, you can include a clause within the prenup to protect that as well. This can cover anything from planning to be a doctor to making it big in Hollywood. If it’s something that could bring you an asset and would need to be divvied up in the event of divorce, then you’ll want to include it. This also covers unexpected windfalls and/or inheritances.

How to go about a prenup?

If after talking it over with your intended, you decide that a prenup is for you, the best thing to do is for each party to begin making a list of their current assets. You don’t have to list things like dishes and towels – just list them as household goods – but you do want to be as accurate as possible. Also include the value of each asset you list.

The next step is to discuss with your intended what you think would be a fair way to divide the assets up. Discuss what’s being left to kids, what goes to other relatives, and what goes to each other. Once you have an idea of how you’d like to divvy the assets up, it is recommended that you each hire separate attorneys to finalize the discussion and draft the actual document.

Some key points to note, try to do this about three months out from the wedding to make sure each party has enough time to reflect and consider the decision carefully. Judges do not look favorably on prenups when they’re done right before the wedding because it could be an indication that it was signed under duress. Additionally, if one party cheats, judges are less favorable to holding up the prenup agreement. You may want a clause that states the agreement is not null and void in the event of cheating, or you may wish to include that it is. It’s a tough topic to bring up, but when there’s a lot of money involved you really want to protect yourself.

Finally, it’s recommended that there be a severability clause within the agreement. This basically means that if one clause within the agreement is stricken, the rest remain intact. This keeps the contract as a whole valid, even if one section is deemed unsuitable by the courts.

Should you DIY?

It depends on the situation and the couple, I suppose. But, if you decide to do it yourself, you should definitely do your homework. You have to understand state law regarding prenups. Again, certain states won’t allow certain clauses, so the more you know the better off you’ll be. Also, lawyers are more liable to be impartial to the task. You may think you’re being fair, but sometimes your view is biased. Even if you draft the document yourself, I’d still recommend a lawyer consultation to review the document.

My thoughts…

I’ve told you guys before that I’ve seen a lot of bad things happen to people and their finances over the years. Perhaps this has negatively colored my view of how I would handle my finances in a joint situation; however, I believe in protecting yourself, no matter how much you trust the individual involved. To my way of thinking, this isn’t an issue of trust so much as it is being prepared for every eventuality. We have insurance for health, life, cars, homes, etc. We do this not because we expect bad things to happen, but because we want to be prepared just in case. Well, I sort of look at a prenup as insurance against divorce. It may not happen, but if it does, you’re covered.

What do you think? Are prenups important, or does it only matter if you have a lot of money? If you feel like sharing your prenuptial stories, I’d love to hear them!

Before I get down to the round up, there’s a little news I need to share with everyone. You may have noticed that my posts have been a bit more sporadic than normal, as have my comments on your blogs. Summer is one of the busiest times of year for me with work and going into the fall semester I have a pretty heavy workload. Because I want to be fair to Jonathan and you as readers, I will be going to a part-time basis with MYC. I’ll have a post about once a week and you will likely see a little less of me on your own blogs. I apologize for this, but the schedule I’d been keeping was too much and I needed to scale back a little. Jonathan has been gracious enough to let me stay on part-time, though, so rest assured…I’m not going away completely! ;)

Alright, with that out of the way, let’s get into the good reads, shall we?

- Brip Blap talks about financial behaviors being set in stone. It’s funny, we all have our own little things that we refuse to change, and we all view things very differently most of the time. But, that’s what makes personal finance personal, so if I’ve got some habits set in stone, they’re because they work for me. What about you?

- J.D. @ Get Rich Slowly discusses the first three steps to financial freedom. A lot of the same if you’ve been in personal finance for awhile, but if you’re venturing into the murky waters for the first time, this is a good beginner’s post!

- Ginger @ Girls Just Wanna Have Funds reminds women that marriage isn’t just about romanticism. This has been a topic of much debate lately, but what it comes down to is this. While love is important, it is equally important that you are financially compatible or you’ll be finding trouble in paradise a lot sooner then you think!

- Broke Grad @ Broke Grad Student has an older post that I believe I somehow overlooked, regarding whether or not having a second job is worth it. In this economy and from a monetary perspective, probably. But, it’s a lot of strain and wear on your mental health and happiness. Would you rather have more time to spend with loved ones and just cut back on expenses, or would you rather have more money and never see anyone? I’ve been here and I prefer to cut my expenses and suck it up. But, this really depends on individual situations.

- nickel @ five cent nickel has an awesome guest post that lays out four ways to ruin your investments. By a show of hands, how many have done at least one thing on his list? Yeah, me too!

- SVB @ The Digerati Life rates the stress level of financial events. Pretty interesting…and you wonder why money is one of the biggest reasons for divorce in the U.S.

- Kelly @ Almost Frugal asks her readers how they judge success. This is such an important question, yet one we think very little of in the long run. How do we know when we’ve reached the level of financial security we set out for? When do we know we’ve achieved that goal? Is it when the debt is gone? Is it a certain dollar amount? I challenge you to consider your goals and take it a step further. How do you determine you’ve achieved that goal?

- Trent @ The Simple Dollar gives us the lowdown on why we need credit at all. Credit is important for everything….car insurance, rent, mortgage, all your big purchases not made in cash. Having good credit gets you the best rates. You don’t have to use credit cards, but you do need to build a credit history…they just happen to be one way to do it. Check out Trent’s article for more!

- FB @ Fabulously Broke has a great article on how being a lady is a lost art. This post has nothing to do with finance – at least not directly – but I really liked it and know a few women who could do with a good reading of this post. In FB’s usual way, it’s highly entertaining and too true!

That’s all I got this time, but hope you find some that you like! Until next time…

Happy Reading!

Having love, and not money, be the basis of a marriage is actually a fairly new concept. Although it did happen in Austen’s time, that was not the norm and was certainly frowned upon in polite society. But, if such arrangements are entered into today, the benefiting party is often referred to as a gold digger. This seems to suggest that polite society has flipped it’s assessment of marriage and now frowns upon marrying for money – though I’m sure it still happens in family circles that have something to offer one another.

In any event, I came across a story not to long ago that talked about an ad from Craigslist. To paraphrase, a woman who is a self-proclaimed beauty is frustrated by her lack of being able to find a husband who earns at least $500k per year. She has recently noticed that women much less pretty and intelligent than herself have managed to land these rich husbands and wants to know what it is she is doing wrong. Her particular story is the classic case of making a business arrangement as a marriage rather then seeking love. But, she got one response to her ad that seemed to garner a lot of attention, and it’s something I wanted to share with you here to discuss.

The Response

Dear Pers-431649184:

I read your posting with great interest and have thought meaningfully about your dilemma. I offer the following analysis of your predicament.
Firstly, I’m not wasting your time, I qualify as a guy who fits your bill; that is I make more than $500K per year. That said here’s how I see it.

Your offer, from the prospective of a guy like me, is plain and simple a crappy business deal. Here’s why. Cutting through all the B.S., what you suggest is a simple trade: you bring your looks to the party and I bring my money. Fine, simple. But here’s the rub, your looks will fade and my money will likely continue into perpetuity…in fact, it is very likely that my income increases but it is an absolute certainty that you won’t be getting any more beautiful!

So, in economic terms you are a depreciating asset and I am an earning asset. Not only are you a depreciating asset, your depreciation accelerates! Let me explain, you’re 25 now and will likely stay pretty hot for the next 5 years, but less so each year. Then the fade begins in earnest. By 35 stick a fork in you!
So in Wall Street terms, we would call you a trading position, not a buy and hold…hence the rub…marriage. It doesn’t make good business sense to “buy you” (which is what you’re asking) so I’d rather lease. In case you think I’m being cruel, I would say the following. If my money were to go away, so would you, so when your beauty fades I need an out. It’s as simple as that. So a deal that makes sense is dating, not marriage.

Separately, I was taught early in my career about efficient markets. So, I wonder why a girl as “articulate, classy and spectacularly beautiful”
as you has been unable to find your sugar daddy. I find it hard to believe that if you are as gorgeous as you say you are that the $500K hasn’t found you, if not only for a tryout.

By the way, you could always find a way to make your own money and then we wouldn’t need to have this difficult conversation.
With all that said, I must say you’re going about it the right way.
Classic “pump and dump.”

I hope this is helpful, and if you want to enter into some sort of lease, let me know.

Ok, so after reading this response, do you think he was being too hard on her? What are your feelings in general about marrying for money, is it wrong? Can affection and love grow from a relationship that began merely as a business deal?

My Thoughts

The idea of marrying for money alone has always been something I’ve looked at as impossible for me to commit to. The idea of not having love seems heartbreaking to a romantic such as myself. However, I think there’s something to be said for finding a partner with similar attitudes toward money.

When choosing a marriage partner it is best to find someone compatible with you in all things, money included. Otherwise it makes the relationship harder and sometimes not even love is enough to sustain it. I’m a big believer in communication and working on a relationship before just throwing in the towel; however, I’m practical in that I believe sometimes you have to realize a dead venture when you’re faced with it. That’s the business side of me coming out.

In regards to the reply on the CL ad, I don’t think he was out of line. Women who offer nothing more then their looks in trade for money are asking for such responses because he’s absolutely right, she’s bringing nothing else to the table. When the money is gone, so is she. Her looks will fade over time and the rich guy is left holding a depreciating asset he can’t trade in for a newer model because divorce is expensive and she’d take half his money anyway. That “transaction” needs to go both ways.

I’ve pretty much resigned myself to the fact that, while I love the period in which Austen wrote – the manners, the address, the formalities, and style – I would not have made my family very happy. I would be too headstrong and willful, and I would refuse to marry for money alone.

So there are my thoughts on the matter. What are yours?

Let’s dissect the song, shall we?…my sincerest apologies to Miley Cyrus, of course!

I can almost see it
That dream I’m dreaming
But there’s a voice inside my head saying
You’ll never reach it.

I’m sure that many of us in the quest to get out of debt have heard that voice. It’s the little nagging nay-sayer who tells us working to get out of debt is pointless because we’ll end up right back where we started, or it tells us we don’t have the willpower to stop spending, or any number of other negative phrases.

Every step I’m taking
Every move I make feels
Lost with no direction
My faith is shaking

But I gotta keep trying
Gotta keep my head held high.

I’ve said before that perseverance is a necessary quality when trying to get out of debt. Actually, I think it’s necessary with most things in life, but the point is, you have to be willing to pick yourself up and try again. Along the way you’re probably going to stumble, but that’s ok. No one’s perfect. You just have to keep trying and remember this…

There’s always gonna be another mountain
I’m always gonna wanna make it move
Always gonna be an uphill battle
Sometimes I’m gonna have to lose.

Guess what? You didn’t get into debt overnight and you’re certainly not going to get out of debt overnight. But more then that, personal finance is ever changing so the phrase “there’s always gonna be another mountain” can very aptly be applied to it. Once you master one area, there’s something new to learn and master. Once you get out of debt, you’ll find new goals to reach for and then you start over and work your way towards those goals. Sometimes, along the way, we find that what we thought was important really isn’t, and we have to let those things go. Sometimes we simply discover we can’t beat everything and we have to choose what’s more important. You may want to get out of debt in three years, but perhaps sending your kids to a private school is more important to you. While I don’t like Miley’s choice of the word ‘lose’ she makes the point that we’ll never have everything go the way we hoped or planned.

Ain’t about how fast I get there
Ain’t about what’s waiting on the other side
It’s the climb, yeah.

At the end of the day, money is just a tool. Our life is what’s most important and the choices we make define how we choose to live that life. Our goals are always going to be important to us, even the monetary ones, but it’s what we learn and the choices we make in life that really matter…that really define us. Personal finance is a huge part of our lives and I strongly encourage you to build good habits. But if your road getting there is a little slow-going, don’t worry. It ain’t about how fast you get there…it’s the climb!

And now on to the round up then. These oughtta start your week on a positive note!

- Dawn @ Fighting Foreclosure gave some good reasons to get to know your neighbors. I’ve never bothered in an apartment complex, which is more just a time factor on my part than any reluctance to meet new people, but still. Dawn does have a point…

- Patrick @ Cash Money Life discusses the difference between conscious and unconscious spending. Spending money isn’t our problem…it’s how we think about it that is.

- SVB @ The Digerati Life shares her story about her business credit card being closed. Many people are feeling the effects of the new credit card reform already. Check out some signs to watch for!

- Living Almost Large asks whether or not larger people should pay for two seats. Touchy subject for a lot of people, but as someone who spent a lot of their life overweight, I’d say that for the sake of everyone’s comfort, yes. Either pay for two seats or upgrade to first class where the seats are roomier.

- Jeremy @ Generation X Finance explains how your car is making you poor and what you can do about it. Cars are expensive, to be sure. And sometimes they’re a necessary evil. But, Jeremy gives some great pointers to consider when you’re thinking of buying your next car.

- J.D. @ Get Rich Slowly had a guest post this week on estate planning. It’s not a fun topic, but it is necessary, no matter that you think you’ll live forever or that there will be plenty of time. You never know. I have a member whose mother died in a car accident and he’s fighting with lawyers over the estate because there was no will. It’s not a pretty situation to leave a grieving family member in. So, bite the bullet and make a plan.

- Trent @ The Simple Dollar reminds us that avoiding spending is not the same as saving. It’s an important step, but it’s not the only thing that leads to saving money long-term.

And there you have it! Enjoy your week and I look forward to reading this week’s articles!

Happy Reading!

Dear Employees,

We value your continued efforts to make this company a success. Unfortunately, they’re not working and we’re losing money quicker than we can earn it. As you know, our number of passengers has been in decline for sometime, but with the economy and cheaper options available to out customers, well we just can’t afford to continue paying everyone. So, our proposal is that you all take one to four weeks of unpaid time, or you can come to work for free. Personally, we think the second option is a gallant effort and assure you the gesture will not go unnoticed. Please be advised, this is not mandatory; however, failure to find a reasonable solution to this problem could result in layoffs. We thank you for your attention to this matter and look forward to your answer soon. If it is any consolation, Mr. Walsh will also be taking a month off with no pay so that he may spend a little time with the family on his yacht in the south of France.

Kind regards,

British Airways

How Much Would You Do?

Ok, so the above email isn’t really what went around to the employees. But, I bet it was the first draft that Walsh’s executive assistant had a good laugh over before s/he deleted it and typed up what was really sent out. Either way, the point is that British Airways is asking their employees to take a month off without pay. From what I can gather from the details, that month is totally free to British Airways. No pay, no benefits, no 401(k) or whatever they do in England, no nothing. That’s a lot to put on your employee’s.

But, I will give them a little credit. I mean, they’re doing their best not to end up in bankruptcy and they’re trying not to lay folks off. That’s admirable. However, I have to say that it was sort of a slap in the face for them to tell the team that their CEO Willie Walsh would be taking a month off with no pay. I mean, he makes like four times more in a month what the average worker makes in a year. Sure he can take a month off and still afford to feed the family. Many of his employees don’t have that luxury.

To be fair, they’re not requiring that anyone take the time off, but it is widely understood that layoffs are eminent and this is what they’ve come up with to stall it. So, being in the same situation, what would you do? Is it fair of British Airways to ask their employees to do this? Is it even legal to ask them to work for no pay? The time off bit I get, but I know anytime we come into work here and don’t clock in, HR is all over us. I’m a little surprised that option is on the table.

At any rate, I’m somewhat torn on this. I mean, I’ve been wanting to take a month off for awhile and just go spend some time in Europe. But, this idyllic fantasy has always included a paycheck with it, which is why I haven’t done it since I haven’t accrued enough vacation time yet. Still, one month with no pay wouldn’t kill me. But, on the other hand, who’s to say that I’d still have a job at the end of the month? What assurances would I have that the company wouldn’t pack up shop and get the hell out of dodge?

For me, I’d say yes to the month off and start looking for another job. If I don’t come back, well that’s one less salary they have to worry about. If I do, then I would have just had a very nice vacation and would be well-rested. It’s a tricky situation, but there’s not much that can be done. Most employees would probably agree that working for free is ridiculous, so they’d rather take the month off. But, those without an emergency fund are going to be hurting.

What would you guys do? Take the month off, work for free, or tell them where to stick it? Ok, so you probably wouldn’t burn the bridge, but you know what I mean…discuss!

#1 – Hair Stylists

For the most part, I color my own hair. But, on the rare occasion I want multiple colors, I seek the help of a stylist. I also can’t cut my own hair, so I do have to see one for that as well. Now, I’ve given this several shots, so don’t think I’m being too hard on anyone here, but the reality is, every time I’ve tried to save a buck, I’ve gotten what I pay for and it looks like crap. I’ve tried the beauty schools – never again, and no offense to any who may be reading this, I’ll just wait until you finish school. I’ve tried Wal-Mart, Super Cuts, JC Penny salons, and others. For me, I have the best results at the spa I get my brows waxed at. I pay a little more because it’s at a spa, but I know going in that my hair will look good when I leave.

#2 – Bras

Sorry guys, this might be a little TMI, but I can definitely tell the difference when I buy a cheap bra as opposed to a good quality bra. The place I purchase my bras offers them for about $40 each, though sometimes I’m lucky and I’ll catch the ‘buy one, get one half off’ sale. I could save a tremendous amount of money by going to Wal-Mart and getting one for $12, but they don’t last as long and they don’t support nearly as well. This is one area where women should not scrimp because a good fitting bra is better for your back and looks better in your clothes. Just saying.

#3 – Work Clothes

These are clothes you’re wearing at least five days a week and they’re often pretty expensive. It just makes more sense to buy good quality clothes that will last rather then cheap stuff you’ll have to replace every few months. There’s definitely no excuse not to have at least one good fitting suit – guy or girl. Unless of course you don’t work in a professional environment, then you obviously don’t really need it. But, being in a professional environment comes part and parcel with a professional look. If your clothes are cheap, you don’t look as well put together as you should and that makes an impression, one that you don’t want. Now, I’m not saying you need Gucci throughout your closet, but it might be time to get you a few pieces outside of the lower end collections. Ultimately, the quality will save you money in the long run.

#4 – Shoes

For me, I seriously just can’t do cheap. I have plantar fasciitis and when I wear cheap shoes, I feel it in my foot…literally. I struggle in this area, though. I have long, wide feet which make it difficult to find good quality shoes in my size. Often times I’ve had to settle for cheap shoes as a temporary fix, but when it comes to heels I don’t compromise. If I can’t find them in my size, then I go with flats. I just don’t buy cheap heels because they don’t last, they’re not comfortable, and they hurt! Quality is important here! Even my tennis shoes and running shoes are of a higher quality. Hell, even my flip flops are and I shouldn’t be wearing those at all, but I do alright with the ones I have. No $3 Old Navy ones for me, though.

#5 – Mattresses

I have a hard enough time getting to sleep as it is, but when I go cheap on a mattress, I can definitely tell the difference. I think sleep is pretty important, especially since I’m a total nutcase without it. So for me, I don’t purchase the cheapest mattress around. I make sure it’s comfortable. I make sure it’s something I could sleep in for 7-8 hours a night – when I’m lucky to get that much sleep, and I also make sure it’s a brand I know and trust to be of a good quality. When I do buy mattresses, I tend to hang onto them for many years, so I want something that’s going to hold up. I would certainly not buy this product used just to save money.

#6 – Vacuum Cleaners

Tried this a few times. Bought vacuums from Wal-Mart and they’ve all crapped out on me. I have three cats, which means I vacuum every day and there’s a lot of cat hair that gets sucked up. I do take care of the vacuum with regular wipe downs, filters cleaned out, etc. But, inevitably, they break down. I’ve found my best vacuums to come from Sears. Even though I despise the company, they do have good merchandise. I also don’t go for the cheapest one there, though. I compare the features and the specs to make sure I’m getting the most for my money and the best quality so that it lasts awhile.

#7 – Washer/Dryer

I’m not knocking anyone who has purchased a used set because I hear great stories all the time. What you have to understand about me is that if the product has a defect, I’ll be the one that gets that defected 1 in 100. So, every time I’ve purchased one used or gone with the cheaper one, I’ve had nothing but problems. Of course, apartment living affords me the opportunity to not worry about this so much as many come with washers and dryers already. However, when I get ready to buy again, it will be a new set and one that isn’t the cheapest I can find. I will spend some time looking into the best quality rather then the lowest price.

#8 – Computers

More specifically, lap tops as I don’t really buy desk tops. I went with an Acer once. I’ll never do that again. I had nothing but trouble with it, despite the 400 reviews that said it worked great. I’ve also gotten the cheapest lap top I could find in the HP category and had challenges of one kind or another. This is also something I wouldn’t buy used, either. New and I’ll be researching the best quality that meets my needs on the next go round.

#9 – Handyperson Services

This includes plumbers, electricians, painters, or any other kind of service person. This I learned from my parents, actually, since I’ve not had much use myself. My dad is a cheapskate, through and through, so he always goes with the lowest price. He hired a guy to install some windows for him and went with the one that offered the lowest price. The guy had never worked with the material my dad wanted, he didn’t have any references, and he worked out of his garage which would have been fine except he wouldn’t tell us the name of his suppliers. My gut instinct said this was a bad idea and my dad should have gone with the other guy. But, the other guy was going to charge $1000 more. Long story short, after the first guy messed up the job so bad that my dad had to fire him, he called the other guy and he came out to do the job. It cost my dad almost $1500 more because he had to fix the previous guy’s mess. Go with quality here, not price!

#10 – Mechanics

I’m not talking about knowing a mechanic for 10 years and he just happens to be the lowest in town. I’m talking about going to a seedy little dive because they’ve got the lowest price, and you don’t know Adam from Jim at this place. You’ve got no references as to their work. You have no experience with them. You have nothing to go by. Sure, sometimes you might get lucky and find a decent mechanic out of the deal, but is it worth it to you? Personally, I’d rather spend a little bit more and deal with the guy I know, the one who isn’t going to tell me I need my master cylinder replaced or that I need my entire brake system replaced, or that I need all this work done to my car when I know it doesn’t need to be done. I also like the peace of mind that my mechanic isn’t going to purposely jack something up just so I have to fix it. You just never know…

Ok, what about you? What are some things you would never go cheap on? Are there things in my list you are ok going cheaper on?

Since I’m seeing an increase in these, I figured I’d give you guys some pointers and do a little round of Frequently Asked Questions. If you’ve got a question that doesn’t appear on the list, feel free to ask in the comments and I’ll get you an answer!

1. What is a prepaid debit/gift card?

I use the two terms synonymously here because they’re essentially the same thing. But, they are a card with either a Visa or MasterCard logo that can be pre-filled with a specific amount of money. Depending on where you purchase the card, there may be minimums and maximums on the amounts imposed, but generally speaking, you can add as much as you want to the card.

My credit union sells them for $2 and the minimum you can put on the card is $10, but we don’t have a maximum amount so you can go as high as you want. Anywhere you go, you’ll find these cards have an initial price to purchase them. Most are nominal, somewhere in the $2-5 range, but it may not be worth it depending on how much you’re planning to put on the card.

2. Are these cards reloadable?

This depends on where you go. Some of them are, some aren’t. The ones we sell at our credit union are not reloadable. So, if this card is being used as a means of online shopping so you don’t have to use your debit card, then it may be best to find one that is reloadable to avoid paying the fee each time you buy a new card.

3. Where can I get a prepaid debit/gift card?

You can usually find these cards at any financial institution or authorized retailers who sell them. Authorized retailers usually include your grocery stores, Wal-Mart, Costco, Sam’s Club, etc. It’s a good idea to shop around with these cards to make sure you’re getting the best deal possible as some may have higher hidden fees then others.

4. Are there hidden fees?

Usually. Most prepaid cards have a specific time that the funds must be used by before the card is assessed a fee of some kind. This will vary from card to card, and the rules may be different on cards that are reloadable, but as a general rule, cards with balances after 7+ months are typically charged a monthly fee until either the card is used or the balance depleted.

The cards we sell at the credit union are $2.95 after 7 months. This is something we always disclose to people, so it’s a little less hidden then if we just didn’t tell them, but it’s important to note what the fee is on the card you’re picking out so you can compare it with other cards.

5. Will I need to activate the card when I receive it?

This largely depends on the card and where it was purchased. If it was purchased from a financial institution, then it should already be activated, you just may need to register it. If it was purchased from an authorized dealer, then you may have to activate it following the instructions provided with the card.

6. What does registering the card do?

Along with activating a card, it may be a good idea to register it. This will allow you to use the card online to make purchases. It’s usually just a simple matter of going online to the respective card’s website and entering your name and address information.

7. Where can I use the card?

Anywhere Visa or MasterCard is accepted. However, I offer a word of caution here. If you have a car loan with a financial institution and you would like to use your prepaid card, be aware that most institutions run this through as a cash advance and you may be charged a fee for this. It is best to check the card’s particular policies before trying to do a cash advance. But, the general rule to this is that the cards are accepted anywhere Visa and MasterCard are.

8. What if my available balance doesn’t cover the purchase balance?

In most cases, this isn’t a problem at all. Just let the cashier know how much you want to pay with the prepaid card and then the rest you can use whatever method you want. Please note, if you try to use more then the balance on the card, it will deny you the purchase. But, also be aware that some merchants cannot split the tender like that, so you may have to use another form of payment altogether.

9. What if I need to return a purchase?

Shouldn’t be a problem, just make sure you hang on to the card. Anytime a merchant does a return for something that was purchased with a card, they want to put it back on the card. It is important to hang on to your prepaid cards until you are certain of your purchase (at least 30 days for the normal return policy) so that you do not have trouble returning an item. Many merchants may work with you if you let them know the card was a prepaid card and that you no longer have it, but just as many may not. Better to be safe then sorry.

10. What if I lose my prepaid card?

When you get the card, there should be instructions with it telling you what to do in the event that the card is lost or stolen. This information will vary by card, so it is important to keep that separate from the card so that you can easily retrieve it if you need to. Simply follow the instructions and you should be able to get a new card issued to you.

Those are some of the basic questions that are usually asked regarding the prepaid cards, at least, those are the ones I am normally asked. In addition to the above mentioned information, there are a couple more things it’s important to keep in mind and a couple of things it’s important to remember about these cards.

Tips to Remember

• Prepaid cards do require activation, so when you get the card (whether you buy it for yourself or receive it as a gift) verify that it has been activated. If not, it will be denied. You can check activation via the card’s online services or by contacting the 800 number listed on the back.

• Keep track of your current balances as not all merchants have the capability of doing so for you. I personally recommend a register if you are using a reloadable card, but you can also use the secure online system to keep track of your balances, as well.

• It’s a good idea to note your prepaid card account number and the 800 number on the back and keep it in a safe place just in case the card is lost or stolen. Most of the time, the customer service representative requires the card number and some personal information to determine who you are and get the process started.

• Remember to keep your cards at least 30 days after you’ve used them just in case you need to make any returns. Not all merchants will allow you to make a return without the card used during the purchase.

• It is not recommended that you set your reloadable cards up to be auto-filled from your bank account or credit cards as it sort of defeats the purpose of using them in the first place should the prepaid card be compromised. I had a client who had this set up and she lost the card, but whoever found it was using it and when it reached a certain level, it simply drafted more funds from her checking account, effectively wiping her out. Because she’d authorized the auto-fill she had a hard time getting the fees her bank charged in overdraft returned to her. The money was returned because most of these cards have zero liability, but she spent two months arguing with the bank and Visa to have the fees returned to her. Just a warning that you should set those kinds of transactions up with caution.

Ok, so we know these cards are great for shopping online and traveling. Is there a time that it’s bad to use them? In my opinion, not really, so long as you’ve done your due diligence in choosing the right card. If you picked the most expensive card with a bunch of hidden fees, then yeah, that might be bad. But, the biggest downside to these cards is the lack of rewards. With so many credit cards – and even debit cards – on a reward system, using prepaid cards for everything does mean you forfeit the rewards.

Have you ever used a prepaid card? What was your experience and would you use them again? Did I miss any frequently asked questions regarding the card?

- Dawn @ Fighting Foreclosure explains why stock piling is a bad idea when you’re broke. I’m not much for stock piling anyway, but her logic makes sense to me!

- Kelly @ Almost Frugal has a guest post on how to save money with stock piling. This is an alternative to Dawn’s point of view, but I think either argument makes sense, it just depends on your own personal circumstances and what makes sense to you.

- Patrick @ Cash Money Life has an interesting post on knowing when to outsource. First off, if you’re not reading this site, you need to be. I swear I learn something new every time I read it! Secondly, Patrick shares some good insight in this post. As he says, there’s only so much time in a day to spend working on your business and spending time with your family. Check out the post and see if you can minimize your time in certain areas by outsourcing!

- Mrs. Micah shares 6 money tips you should teach your kids BEFORE college. Too many kids head off with little to no education on finances. Do your kids a favor, teach them before they hit their college years and you just might save them a whole lot of money in the long run!

- Laura @ five cent nickel lists some tips on hosting a dinner party. Hey, summer’s here and friend and family do the gathering thing. Knowing what to expect and dinner party etiquette can make it run much more smoothly…and save you some money, too! Be sure to check out her post and some great recipes she’s linked to!

- glblguy @ Gather Little By Little asks whether or not reverse mortgages will be the next subprime meltdown. This is an interesting question, in my opinion. I’ve never been a big fan of these, though I understand in some situations they can be beneficial. But, with reverse mortgages on the rise, there is call for closer scrutiny of these types of loans, especially since reverse mortgages share some of the same risks as subprime loans.  Be sure to check it out!

- J.D. @ Get Rich Slowly compiled a list of his favorite 25 personal finance books. On his list is ‘Your Money or Your Life,’ and this is one of my personal favorites. But, the best thing about this list is that most of them can be checked out from the library for FREE! Yay!

- Trent @ The Simple Dollar offers up 9 reasons to continue reading personal finance books. If you were checking out J.D.’s list of books and wondering why you should read them, check out Trent’s post. It’ll give you some good reasons why you should!

And that’s all folks…hope you have a great weekend!

Happy Reading!