Earthquakes, floods, and forest fires know no season. Spring tornado season is just around the corner and soon thereafter, we enter hurricane season. If you were thrown a curveball and had go through a hurricane, tornado, earthquake, flash flood or forest fire – would you be financially prepared to weather the storm?

Natural disasters serve as reminders that we all need to be prepared, no matter the source of the disaster. What to do?

1. Take a home inventory.

Go room by room and record a visual inventory of your possessions on a video camera or still camera. Describe the item in your own voice, recording its cost and when you bought it as well as any serial numbers or model numbers. Photograph your landscaping, patio, outdoor furniture, fencing, and sprinkler system and include automobiles, boats, or RVs. Review your inventory every two to three years to keep it up-to-date and augment the video or photographs with a written record. List each item and its value as well as any identifying numbers where appropriate. Put your inventory records in a safe place such as a safe-deposit box.

2. Keep copies of all financial records in a very safe place.

Scan your financial documents (mortgages, life insurance policies, other insurance policies, copies of your drivers license, passport, credit cards, everything) and burn them onto a CD in pdf format, then keep this CD in a safe deposit box. An alternative strategy is to use something like Mozy Online Backup which offers up to 2 GB of free storage or unlimited storage for only $4.95/month. All you have to do then is remember to scan and save to your hard drive.

3. Update your homeowners insurance.

It may seem obvious to you and me, but believe it or not, most people are either not insured at all or severely under-insured on their homeowners insurance. According to the Federal Emergency Management Agency, only 25 percent of the 10 million American homes that lie within high flood-risk zones carry flood insurance, despite the fact that homes are four times more likely to be damaged by flood than by fire.

4. Be sure you have the right kind of insurance coverage.

Your first line of defense is your homeowners insurance so make sure you’ve examined your insurance coverage before disaster strikes. What you don’t know CAN hurt you in the long run. For example, there’s a big difference between replacement and reimbursement cost. If your 3-year-old flat screen television is destroyed in a flood, does your coverage pay to replace it or only pay you based on it’s current, depreciated value (much less)? Some policies only cover the structure so make certain you cover the contents of your home, as well as the structure. If you’re a renter, buy renter’s insurance because the landlord’s insurance won’t cover damage to your possessions.

5. Beef up your emergency fund.

If you find yourself going through a disaster, having a three to six month emergency fund will be a lifesaver. Don’t delay in starting your fund as soon as possible. Use my Sneaky Savings Strategies to help you pump cash into your fund and don’t be afraid to get creative in your own savings ideas.

We all hope we never have to weather such a storm, but by taking a few smart precautions, a punch in the face by Mother Nature won’t knock you out.

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After you’ve built up a 3 to 6 month emergency fund and you’re regularly putting aside money into a savings account, it may be time to consider investing – remember the saving vs investing distinction?  One holdup that many new investors fret over is which brokerage house is best. There are a lot of choices out there when deciding which brokerage firm to use for your investments. I personally use Scottrade and E*trade.

Scottrade Review

Scottrade houses my personal Roth IRA as well as another taxable account and there are a lot of reasons I use them. For one, their interface is ridiculously easy to navigate and for another, their fee structure makes investing a lot less taxing on my account. Fees can erode away your cash very quickly.

Top reasons to use Scottrade?

• Only $500 to open an account.
• Online trades are only $7.
• No account maintenance or inactivity fees.
• Over 400 brokerages nationwide incase you need to speak with someone in person or attend a seminar.
• No-Fee IRAs! Also over 2,800 no transaction fee mutual funds!
• CDs are available.
• An incredible Knowledge Center with educational resources, interactive learning, and help/how-to. Scottrade customers have access to the Reference Notebook where they can save Knowledge Center content for quick reference.

E*Trade Review

E*Trade Financial was one of the first major online brokers and now has millions of customers in more than 40 countries worldwide. As one of the nation’s largest online brokerages, the company provides financial services that include retirement, trading, and investing. E*Trade accounts include: No-Fee Roth IRA, No-Fee Traditional IRA, and Rollover IRA accounts. Opening an account is quick and easy, and just takes a matter of minutes.

Top reasons to use E*Trade?

• $9.99 or less stock trades.
• 7,000+ mutual funds (1,000+ no–load, no–fee).
• Dedicated 24/7 customer service teams.
• Use Quick Transfer to transfer funds between E*Trade accounts in a heartbeat. Even enroll external accounts and move money to and from other financial institutions with just few clicks.
• No mark ups on 30,000 bonds and fixed-income securities.
• Target retirement date funds for easy hands-free investing.
• FREE independent analyst research

MORE online brokerage options:

Zecco

Zecco offers free stock trades, powerful investment tools, excellent customer service, and a groundbreaking financial community. Get 10 free stock trades every month when you maintain a $25,000 balance or execute 25 trades each month. Otherwise, it’s just $4.50 per trade.

tradeMONSTER

tradeMONSTER™ is an innovative online brokerage that launched in 2008 and is geared towards stock and options traders. Differentiators of other online brokerage firms include a completely customizable trading platform, real-time streaming quotes and charts for accounts accounts including paperTRADE, one click order form from anywhere on the trading application and unique trading tools like spreadMAKER, Exit Plan, tradeLAB and strategySEEK. Their unique services are intended for the proactive investor who is looking for a disciplined approach and high value for a low price.

TradeKing

TradeKing is an online broker providing low flat trading fees with no minimum account requirements and no hidden fees. At TradeKing, you will pay just $4.95 a trade plus 65 cents per option contract. Period. They don’t have any account minimums or hidden fees and even charge the same price for broker-assisted trades. SmartMoney and Kiplinger’s both gave TradeKing’s Customer Service their very highest ratings in their latest broker surveys.

Whichever of these investing platforms you choose, the main key is to educate yourself on investing, trust your instincts, let go of emotions, and use solid research to make a decision.

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Welcome, welcome. Come on in and have a seat on the couch right there. Just relax. We’re going to have a little conversation about your job anxieties. As a matter of fact, just lie back on the couch and let’s focus together on letting all your misgivings about your current or even future job evaporate into the air.

I think we need to decide together just which of the 8 types job you’re employed in. Once we do that, we can focus on helping you work through your concerns. What? You didn’t know there were only 8 job types? Well, here they are:

1. The Security Job

Are you just hanging out to collect a paycheck? If so, you may be in a “security job.” All it does is provide you with the means to take care of yourself and your family. You’re not experiencing any job satisfaction at all. You probably don’t like it and I’m sure your employer doesn’t either. Here’s a hint: your employer probably knows, and she’s already looking for your replacement.

2. The Scouting Job

If you’re just hanging on, trying to figure out what you really want to do, or what you want to do next, you’re in a “scouting job.” You may be waiting to finish your degree or until something “better” comes along. You’re just checking things out but you’re still motivated enough to work on building up some key accomplishments to highlight in your next interview.

3. The Social Job

Sometimes we work at places simply because we have friends there. The camaraderie and fun that our friends bring to the workplace make staying there relatively easy. You probably love coming to work and I’m sure your boss probably loves seeing you all enjoying each other’s company and collaboration, but your focus is probably too much on your social relations. Is your professional growth truly on track? Maybe, maybe not.

4. The Speculator Job

If you’re in this job, you’re probably working like crazy in hopes of a future payoff, a huge payoff. How high is your confidence that this payoff will actually happen? When most people in a “speculative job” lose their hope and realize they won’t get paid what they’re worth, they scavenge the company’s resources – contacts, training manuals, copier toner, bandwidth – to achieve some sort of return on their investment. They basically compromise their own integrity out of frustration and that ethical lapse eats away at their conscience.

5. The Selfish Job

Is your job only about you? If it is, you’re probably just hoping to learn, grow, and collect evidence of your own personal ability to add value for no other reason than because it makes you feel better. Using your employer’s resources only to build up yourself will leave you feeling like a moocher and add some stress to your life.

6. The Singular Job

If your job provides a singular, unusual, or unique opportunity to meet a personal need or want, you’re employed in a “singular job.”  You may have a strict schedule your current job accommodates or you may need to work in a certain location, with a certain high profile individual, or to learn a particular skill. As long as this job provides that singular purpose – and you NEED it – this job will probably work out well for you.

7. The Stuck Job

The “stuck job” needs little explanation. You’re stuck – either because of a family situation, an economic situation, a debt situation, or an insurance situation. You do just enough to keep your job. It’s time to dust off that resume and take a part-time job — finding a new line of work.

8. The Sensational  Job

Are you working in a job that fuels your personal passion? Now we’re talking! There are TONS of positives when your job aligns with your personal values, deep interests, and highest priorities. You’re happy to be there and it shows. If this is your job, consider yourself fortunate. Very, VERY few people are employed in their sensational job, their dream job. As long as the “work” aspect doesn’t become too annoying, frustrating, or overbearing, you will have a great time.

So, which one of these job types are you in?

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Today is the debut of my new Roundup Submission form found on the top navigation bar of each page on this site. If you would like to be included in my next roundup, head on over to the Roundup Requests page and enter your information. I usually compile a roundup of great posts every two weeks.

One article I think everyone needs to read, really read – not just skim over – is Ryan’s post at Cash money Life on the Financial Risk Test. In this test, you’ll closely examine the different financial risks you’re exposed to, from employment loss to cash flow to various insurance risks. This is a very well written and timely article that everyone needs to read.

• Madison from My Dollar Plan clues us in on How to File an Amended Tax Return
• Sid Savara from Analysis Driven Personal Development presents 7 Common Procrastination Excuses
• Kyle from Amateur Asset Allocator presents Initializing My 401k Rollover To Roth IRA Was A Breeze With Vanguard
• David from My Two Dollars presents Report A Tax Cheat, Get A Huge Reward
• MD from Studenomics presents Why Parent’s Shouldn’t Pay For Their Kids’ College Education
• Over at Single Guy Money you can learn some Tips To Make Money on Craigslist
• Brad Chaffee from Enemy of Debt presents Great Financial Advice From The In-Flight Safety Handbook
• PT from Prime Time Money has a list of Common Tax Deductions for Freelancers
• Dustin from Engaged Marriage presents Be Proactive: A Marriage Lesson from a Fat Smoker
• Matt Jabs from Debt Free Adventure presents Refinance Home Loans – How One Call Saved Us $41,000
• Mandi@Organizing Your Way guest posted at Simple Mom and presents Understanding Your Personality: Balancing Tasks and People
• Susan Heid from The Confident Mom presents Navigating the Road of Allowance….
• ABC from ABCs of Investing presents How to convert to a Roth IRA
• Mike from Four Pillars presents I bought a DVD player to keep the kids quiet in the car
• Dustin from Engaged Marriage presents Be Proactive: A Marriage Lesson From a Fat Smoker
• Marc from Marc and Angel Hack Life presents 8 Simple Steps for Achieving Anything

Links to products or services may be affiliate links. See my disclosure policy in the footer of the site or on my About page.

Restaurant.com has opened up their site once again, offering $25 gift certificates to great restaurants for the unbelievable price of TWO DOLLARS. If you want to get $25 in food for a tiny fraction of the price, head on over to Restaurant.com and use the coupon code: BITE when you check out.

I’ve actually used these coupons and they work out fabulously for my family and me. Different restaurants have different requirements, but the deal is still fabulous!

Here’s the kicker: you can join their Dinner of the Month Club and extend your savings for an entire year. Yes, pay just $24 and get $300 in high quality restaurant food at participating eateries. You’ll still use the same coupon code: BITE when you check out, so don’t delay. This offer ends March 16, 2010.

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Sounds far fetched, I know, almost as crazy as our current administration banning the great American pastime of fishing. With bad news coming out of Washington so fast and furious that it’s hard to keep up, maybe someone from YNAB needs to educate our legislative and executive branches on what a budget really is and how it’s supposed to work. Deciding where to spend money on isn’t a real budget. Neither is deciding how much to spend. Deciding where NOT to spend is where a real budget begins. Once you understand that aspect, budgeting takes on a whole new meaning.

What would it look like if the government used YNAB?

First, we wouldn’t be operating on a month to month basis. Last month, the federal government went into the red $209 billion, 14 percent higher than the previous record set in February of last year. You Need A Budget (YNAB) teaches its users how to stop the paycheck to paycheck cycle by simply knowing where their money is spent and formulating a REAL plan to get out of this vicious cycle.

Second, every dollar would  have a job, a mission, a purpose. Some may claim that this is already happening to a degree in our federal, state, and local governments, but I disagree. These faux budgets our legislators are concocting are shams, they have no idea what’s being purchased, what’s being spent, or WHY. Some people even encourage legislators to “pass the bill to learn what’s in it.” YNAB eliminates that possibility because its proprietary software helps you not only track, but helps you dictate how to spend your money. You are in control, not your money, not your debt, not your bill collectors. YOU.

Third, by using YNAB, governments would be able to save for a rainy day. You know they’re coming – those 6 month car insurance premiums that eat your lunch – and this budgeting software helps you prepare for them. YNAB would help our government prepare for the upcoming rainy day known as the Baby Boomer Social Security Buster that’s looming on the horizon in about 10 to 15 years.

Fourth, YNAB would help governments roll with the punches. Things come up, like wars, recessions, and the need to payoff entire states to get your legislation passed.  YNAB makes small adjustments when you overspend, ensuring that you fix those mistakes before you go to the next month. What a concept! Can you imagine anyone in government actually admitting to overspending and doing something about it?

I know. It’s more than just a little far fetched to wish that any government, federal, state OR local, would budget the YNAB way, but that doesn’t mean you shouldn’t. Check out YNAB and see if it isn’t the most innovative, intuitive, and incredible way to take back control of your money, because if you don’t control your money, it will certainly control you. Don’t believe me? Just look at the Federal government’s projection of its own debt problems.

Photo by metimbers2000

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It’s a funny little video, but it seems to represent how everyone involved in federal, state, and even local governments does math – badly. States and municipalities are increasingly running out of cash and on the verge of bankruptcy. Some municipalities have raised sales taxes as high as 12 percent! Just like the video shows us, there is a fundamental lack of understanding of the forces of economics and just plain old ignorance of basic math.

Just … wow. Eerily similar to how Congress works out their budget. Too bad they don’t use YNAB

.

Thanks to Brent for sending me this video.

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That’s how many of your fellow readers checked out NetQuote last year after reading about it here at The Wisdom Journal. That’s a lot of people! One reader even took the time to email me about how much money he saved on his homeowners insurance using their service.

And what exactly IS NetQuote? Think of it as the Grand Pooh-Bah of insurance sites that helps you keep money in your pocket. How? They collect quotes from many different insurers, all high quality and reputable, and then funnel those back to you.

• No pushy agents.
• Only one form to fill out.
• No waiting on the phone for a quote.
• No driving all over town to meet with agents.
• No obligation.

It costs NOTHING to check rates!

From there, you simply decide which company meets your needs from a financial standpoint. If, for example, your auto insurance is cheaper through Progressive, you can pursue it. If Nationwide, or Travelers, or Farmers fits the bill, you can go from there because NetQuote can get you an insurance quote from any or all of them.

NetQuote has access to all sorts of other insurances as well, from life, to health, to homeowners, to business, chances are, they have what you’re looking for. They even offer the lowest insurance rates by state and LOCAL markets – from the top national carriers to your neighborhood local agent – with competitive rates and plans to assist you with making the best decision for you, your family, or your company.

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My bi-weekly roundups are great fun – no really. I enjoy the reading part, but the coding part sometimes takes up a lot of time. So, taking a cue from my friend Paul at Fiscal Geek, I created a roundup submission form similar (eerily similar, no?) to his. Matt from Debt Free Adventure created one as well. Hey, why not submit your article to all three of us?

This page will become a permanent part of the navigation bar at the top of my site.

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Experts in the field of team building recommend establishing a team charter – a document that spells out what it is the team is to accomplish, how, who is accountable for what, the boundaries of responsibilities, and a step by step action plan for achieving success. We charter yachts, planes, and teams, why don’t we charter our families – setting their direction, establishing their course, and determining (ahead of time) what principles will guide them?

Families are teams, too

Your family unit is also a team, with responsibilities to each other and to your community, your church, and your country. Maybe I missed it, but I‘ve never heard of a family establishing a family charter – a “why are we here” document that spells out the family’s goals, responsibilities, expectations, and vision for success as a family. We do this all the time with businesses, why don’t we do this with our family?

Just imagine the good could come from sitting down this weekend with your spouse and children and establishing your own family charter that defines the purpose of your “family team,” how it will work and the expected outcomes? What if you and your family established a set of “directions” that would guide each of you based on your shared values and visions of success for your family as a whole and each family member individually? Would that have any value to you?

The Family Charter

The charter must be specific enough to keep your family on track, but it should not restrictive or cumbersome. And, although there will certainly be disagreements and conflicts about the charter as it’s being developed, remember to use conflict resolution and negotiation skills to deal with any friction.

Make sure your family charter:

• Answers the question, “What is our family’s purpose?”
• Defines the values that will guide your family
• Spells out individual roles
• Sets boundaries
• Establishes the processes needed to manage familial relationships
• Encourages collaboration among family members
• Establishes responsibility and accountability
• Sets up how decisions will be made
• Addresses conflict resolution
• Sets the criteria for how success will be measured
• Identifies resources you’ll need to function successfully

I don’t currently have a family charter

But I’m going to sit down with my wife and children this weekend and open up a discussion. I plan to discuss our finances, our joint and individual goals, and our values. I also plan to discuss what and how we see our purpose as a family unit.

Additional family charter ideas

I’m planning to print ours out, frame it, and place it in a prominent area of our home. It might create discussions with others who visit on how we as a family unit view our role on this earth.

Decide as a group about how to budget for giving and insure that it matches the family’s values.

I think it would be a good idea to have each family member sign the family charter as a symbol of their agreement with the direction we’re heading.

Failing to plan is the same as planning to fail.

I’ll keep you posted on how this goes, but it’s something I’ve been turning over in my mind for quite some time.

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