MyMoneyMinute.com

Once Upon A Time

Our Free Checking Account

We’ve been in the Dallas-Fort Worth metroplex for nearly five years now.  After we ditched Washington Mutual, we moved our accounts to a local bank, and went with their free checking option.

For four years, our account sat there making no interest.  Now that we use our prior month’s income for our current month’s budget, we typically have at least up to a month’s worth of cash in the account.

Recession Buster

Finally, about two months ago, I chatted online with a bank representative about a high-interest checking account.  The move was simple and done right online.  We immediately went from zero interest to making 4.0% on our checking account balance!

Eureka!

Find a High Interest Checking Account

I was happy with a 4.0% interest rate that came without the hassle of changing banks, but interest rates over 5% are available through other banks – local or otherwise!  Here’s a few links I found:

• High Yield Checking Deals is a blog that lists, by state, the highest-paying high-yield checking bank accounts.  There are dozens in the 5-6% range!  This site also gives statistics of the average yield & balance cap for the combined accounts.
• CheckingFinder is recommended by (and advertises on) the Dave Ramsey Show, and lists banks by zip code or by interest rate.

Requirements/Qualifications

On each of these accounts, you typically must meet certain requirements each month to qualify for the high interest rate.  Qualifications typically include the following limitations:

• Direct deposit of at least one paycheck per month, or auto-draft pay of at least one bill per month.
• A certain amount of debit-card transactions per month (usually 10-15 transactions).
• Most accounts I’ve seen apply the high interest rate up to the first $25,000.  Any money above that amount each month will earn at a lower rate (typically 0.5% or other nominal amount).

I find that after 8 trips to the gas station & 4 trips to the grocery store, it’s pretty easy to attain the necessary 10-15 transactions required to qualify.  Of course, take a look at each individual bank’s requirements.

Just Do It

The interest gained may not seem like much, but another $10, $25, $50 a month quickly turns into hundreds of dollars per year.  Bust out of this recession with a high-interest checking account!

Do you use a high-interest checking account?

Eureka! checking, checkingfinder, high interest, high-yield, recession, recession buster!

Hi Everyone,

I have so many selections to my recommended reading list, I’m supplementing my traditional Saturday postings of “Links O’ The Week.  Without further adieu…

197th Carnival of Personal Finance — Editor’s Pick!

My article that asks Should I Buy Pet Insurance? was an Editor’s Pick in the 197th Carnival of Personal Finance!  Thanks to Four Pillars for hosting and selecting my post as a top pick!

I’d like to thank God, my agent, my wife, and of course Odie, who without him this Editor’s Pick would not have been possible… **cue music / cuts off acceptance speech**

Okay seriously, not THAT big of a deal but glad someone enjoyed the post!

Links O’ The (Mid-)Week

Here’s a few articles I found interesting:

My Journey To Millions gave us the Top 10 Reasons You Need To Get A Will ASAP.

Frugal Dad posted on Personal Financial Software.  Read the comments for great suggestions too!

Lose your job recently?  Fiscal Fizzle gives you timely advice with a Layoff Checklist.  I believe he’s newer to the blog scene just like I am, but he’s got some great content.  Take time to check out his site!

Here’s a recommended triple-play of posts written by Gather Little By Little:

• Delayed Gratification
• Budget Categories: Less is More
• Debt Snowflaking

My Two Dollars says Look At Me And My Designer Clothes!

Don’t Mess With Taxes gives us 13 Often Overlooked Tax Breaks.

photo by Jeff Belmonte

Links O' The Week Carnival of Personal Finance, Editor's Pick

7.9 Earthquake Near Tonga Sparks Eruption

Last week, a volcanic eruption close to the South Pacific nation of Tonga has destroyed rich birdlife and vegetation, leaving a wasteland of black ash and tree stumps, witnesses said Friday.  The volcano, on the small, uninhabited islet of Hunga Ha’apai 63 kilometres (39 miles) northwest of the Tongan capital Nuku’alofa, began erupting Monday.  It continued to spew Friday even as a major earthquake with a magnitude of 7.9 rocked Tonga’s main island of Tongatapu.

Tonga’s chief geologist Kelepi Mafi, who inspected the area Thursday, said the volcano has two vents, one on Hunga Ha’apai and another around 100 metres offshore.

The volume of the rock and ash coming from the vents has completely filled the gap between the offshore vent and Hunga Ha’apai, increasing the island’s land mass by hundreds of square metres.

What Are Your Financial Underwater Volcanoes?

When life brings a little trembling, there are many financial issues that lie just beneath the surface that can erupt at a moment’s notice.  There is no doubt that life comes at us fast, and it seems as if we’re always playing catch-up in some regard.  If tragedy or just plain life happens unexpectedly, what areas of your financial life would you not be prepared?

Today I offer a pretty simple challenge.  Identify those Financial Underwater Volcanoes in your life today.

For me, I’d have to say first & foremost is estate planning (a will).  This seems to get pushed to the backburner — and I’m an attorney who can write up my own will for free!  Perhaps it is because I know I can write a decent will that I’m waiting for the time to construct a will that is taylor-made for my family.  When in reality, I should get a basic will in place and fine-tune the details later.

Another area of potential Underwater Financial Volcano eruption would be our emergency fund.  But we are working on this one — we just paid off our car and are now building up our baby emergency fund to at least 3 months’ expenses.

As you can see, I’m not perfect either.  But once we can identify these “hot-spots” (yes, pun intended), we can go about rectifying the situation.  I’d hate to see your island be destroyed when you could have minimized the damage.

What are YOUR Financial “Underwater Volcanoes”??

photo by The Sunday Times

MyMoneyMinute — Identify Your Financial Underwater Volcanoes

Personal Finance baby emergency fund, earthquake, emergency fund, estate planning, life insurance, Tonga, underwater, volcano, will

Carnival of Personal Finance

Hey everyone, I wanted to let you know that a recent post of mine, Beyond the Resume:  How Your Digital Impring Affects Employment, was featured in the 196th Carnival of Personal Finance:  Music Edition.  There are many wonderful articles included, so take a look.

Thanks to Green Panda Treehouse for the inclusion!

Links O’ The Week

I’ve been trying to catch up on my blog reading.  To avoid falling too far behind and posting a ton of suggested reading all at once, here’s a few that caught my eye.  I’ll pass along a few more mid-week and during our normal “Links O’ The Week” segment:

Pets

Green Panda Treehouse talks Ways to Save on Pet Care.

On AIG Executive Bonuses

Suburban Dollar gives his reasons Why He Thinks AIG Should Get to Keep Their Bonuses.  Very gutsy article!

Conversely, The Coin Jar gives take on Scaring Wall Street Straight.  My question is, who is going to scare Obama & Congress straight?  I think they need to add more personal finance blogs to their Google readers!

Bailouts & Financial Crisis

Four Pillars gives us The Curse of Pretend Money, a guest post by Rob Bennett of A Rich Life, explaining how financial crises happen.

Art of the Coupon talks Personal Bankruptcies and the Recession.  Good call to think outside the box on how to stimulate the economy.  While you’re contemplating, check out the two-part MyMoneyMinute Economic Stimulus Plan.

Spending & Frugality

Not the Jet Set asks What Area of Your Life is Super Sized? Excellent question!  You can be doing so well in so many areas of your budget, then blow it by super-sizing one or two areas.

Get Rich Slowly posts along similar lines, with his entry: What Do You Do When Frugality Gets You Nowhere?

Emergency Funds

No Credit Needed discusses Debt Reduction And The Emergency Fund.  Just how big of an emergency fund should you have?

Giving

The Simple Dollar has a great idea to use The Giving Pocket.  What a great idea!

Home Computer

Frugal Dad gives us Free Software To Soup Up The Home Computer.

More to come this week — have a great weekend!

Photo by visulogik

Links O' The Week AIG, Carnival of Personal Finance

I never really considered pet insurance until my dog Odie swallowed a sock, and we had to spend $1,000 to save his life.  I just assumed insurance for my dogs was a high cost, low benefit type of investment.  But now that we had a canine emergency threatening to derail our financial plans, I thought I’d give it a second look.  So I grabbed a few brochures from the vet’s office to compare rates and coverage.

Our dogs

We have three dogs.  Yes, more than necessary.  We’re suckers, we know.  Here’s what we’re dealing with:

Zipper – male, nearly 11 year-old long-haired black lab-mix.  Because of his age, he may not qualify but for basic care packages.

Lucia – 4.5 year old lab-mix female.

Odie – 2 year old male, sock-eating lab-mutt.

All three are fixed.  No litters of puppies for the MyMoneyMinute household!

Pet Insurance Example

Here’s a major pet insurance company whose brochure I picked up from the vet’s office.  Click on the icon to link to that company’s website:

VPI

VPI offers flexible deductible options – $100, $250, $500, or $1,000.  They also offer a 5% reduction for adding a 2nd pet.  Here’s a sample:

• For Lucia, a “VPI Major Medical Plan (Base Plan) with a $250 deductible = $37.33/month.  When you add routine & additional care (teeth cleaning, check-ups, etc.), the costs goes up to $59.33/month.
• For Odie, the prices drop a bit because of his age.  The Base Plan is $32.72/month, while the upgrade is $54.72/month.
• Grumpy old Zipper is only eligible for limited coverage.  Cost is $22.10/month, including “panic-moment” (broken bone, poisoning) & routine care.

With a group rate, insurance premiums on all three dogs would be $132.43/month, or $1,529.16 for an entire year ($60 discount for payment up-front).  So, when you factor in $750 worth of deductibles, I’d have to incur nearly $2,300 in insurance-approved costs in order to break even.  Each year.  Not to mention, each year the premiums will only increase as my dogs get older.

Conclusion

It seems to me that we are still better off to self-insure through our pet’s medical needs.  Even with Odie’s sock incident, our vet costs this year will probably be $1,500.  We would basically need at least two dog tragedies per year to make insurance worth it.  And that’s assuming no hassles and full payment by the insurance company.

Our other option would be to buy “Base Plan” insurance for Odie only.  He seems to be the young buck without any fear.  He’s very skinny, agile, and not afraid to run, jump, or chew anything.  A sock-eating incident & a regular vet visit ends up being $1,000, we would have paid about a $375 annual premium.  Add a $250 deductible, and we’d be $625 out of pocket before insurance kicks in.  So this year insurance would have been a money-saver to the tune of $300 or so, again assuming all procedures would’ve been covered under the insurance.  Buying for Odie may be an option, at least until his rambunctious puppy phase is over and he matures into an adult dog with a little more caution.

Other Policies

Here’s two other companies whose brochures I picked up from the vet.  Take a look at their websites if interested by clicking on their logo below:

Do you have a pet medical story?  Did your pet have insurance?  What would you recommend we do?









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Pets dogs, lucia, odie, pet insurance, zipper

Welcome!

Welcome to those visiting my site from Prime Time Money!  Take a look around and feel free to subscribe or add me to your feed.  The following is a companion post to my guest post on What To Do If Your 1099 Form Is Incorrect.

What to do if your W-2 form is incorrect

As with my 1099-Misc issue, I called the IRS help line at (800) 829-1040, and here’s what I learned about pending W-2 issues:

Before requesting any IRS action, you must first attempt to remedy the situation with your employer by sending a request in writing to your employer to re-send a corrected W-2 form.  Include a self-addressed, stamped envelope with your correspondence.

If your employer is not cooperative, and it is past February 15th, contact the IRS help line at (800) 829-1040.  The IRS will initiate a Form W-2 complaint.

Form W-2 complaint procedure

When an IRS representative initiates a Form W-2 complaint, a letter is sent to your employer giving them ten (10) days to furnish a corrected W-2, and lists the applicable punishments & fines for noncompliance.

You will be sent a letter containing instructions and Form 4852, which may be used if your employer does not provide you a corrected W-2 form in time to file your tax return.  You can also download it from the following link:

• Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

Tax season sure can be stressful, but hopefully this and other tax tips will make this year a little easier on you!

Suggested MyMoneyMinute posts:

1. First Post: Inauguration Day — My Own Inaugural Ball
2. My dog Odie:  How Socks Can Affect Your Emergency Fund
3. The MyMoneyMinute Economic Stimulus Plan
4. Beyond the Paper: How Your Digital Imprint Affects Employment

photo by BallGame68

taxes IRS, taxes, W-2

We paid off our car!

It is definitely tough economic times out there for everyone, so I wanted to share a bit of positive news on the home front.

While the Lovely Miss H has permanent employment, I have been working in project-based, temporary employment.  The bad news is that it is temporary.  The good news is I can work nearly as many hours as I want.  So the past few months I’ve worked a lot of hours.  I finally figured out how much we had spent compared to our February budget, and the surplus was enough to finish paying off my wife’s car, a 2004 Saab 9-3.  I just logged off of an internet chat with a bank representative confirming we had paid in full, and that the title will be mailed within 10 business days!

Consumer debt is gone

Just want to send a small thank you to Dave Ramsey and his debt snowball methodology.  Yes, there may be mathematical flaws within a particular snowball of debt, but the psychology of “quick wins” in reducing debt cannot be denied, particularly when you’re married and you need two people to consent to a financial plan!

After 26 months, through full employment & layoffs, over-spending & saving, emergencies & good times, our consumer debt is now gone.  We haven’t been the best at paying down our bills, but we remained true to the overall goals & financial principles.

So now you’re rich, right?

No, far from it!  We’ve got so much educational debt, that I think our student loans took out student loans.  A married couple both going through college and grad school without a financial plan will do that to you!

Our next step is to build up an Emergency Fund to a reasonable level.  My car has 185,000 miles on it, hers is over 100,000.  We both commute about 75 miles round-trip each day.  We will need those replaced at some point, so I’d like to be ready with enough money to pay cash for our vehicles.  Now that our vehicles are paid off though, it makes me want to drive my lovely 2000 Nissan Maxima until it dies.  Instead of impressing people with a nice car, I’ll be impressing myself with how long this car can stay around.  This shift in thinking is much easier on the pocketbook.

The Journey Continues

There are always hiccups, bumps, and bruises along the way, but we will enjoy this minor victory, and use it as motivation to keep focused on our long-term goals.

What about you?  Have you had any financial victories or setbacks lately?  Tell me where you are in your journey.

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photo by dreamweaver1619

Personal Finance baby emergency fund, Budget, Cars, consumer debt, dave ramsey, debt, emergency fund, snowball

I’ve been a little behind on my blog reading, so I’ve got tons of links to share with all of you out in Internet land.  I’ll stick with a few here, and add a few links here & there throughout next week for you to enjoy.

Clever Dude gives practical advice with 7 Tips to Extend the Life of Your Business Clothing.

My Money Blog brought us an interesting way to “Fail-Safe Investing”.

Get Rich Slowly has been putting out some great content.  Here’s two articles I enjoyed:

• 25 Financial Rules of Thumb
• Are Pets Worth The Money?

The Passive Dad also has great content.  Here’s two of his great ideas:

• Putting a Savings Account on Your Baby Registry
• Did You Find a Passive Income Idea Today?

The Wisdom Journal is another one of my favorites.  Here’s a few I’ve been impressed with over the past couple days:

• Here’s a post where he gives us a recipe for How He Paid Over $120,000 of Debt in 52 Months.  Awesome analogy and congratulations.  I hope to join you one day!
• Here he asks the poignant question:  Is Money Real to You?

Have a great weekend everyone!

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photo by Robert Brook

Links O' The Week

I am SO mechanically inclined

My wife’s left headlight has been out for a couple weeks now.  We’ve put up with the warning notification on the dash panel that pops up every time you start the car.  After finding out the dealer wanted $45 to change it, I figured it shouldn’t be too difficult, even for me, to just replace the bulb myself.

So I went by O’Reilly Auto Parts and picked up a bulb for $8.  After a bit of tinkering around and undoing bolts that didn’t need to be undone, I went online and Googled directions on “how to change headlight on Saab“.  The directions made a little more sense after-the-fact, so I tinkered a bit more, then realized you don’t even have to remove the headlight set from the car — there’s a rubber cap on the backside of the headlight set that you can pop off.  Removed a fuse box attachment temporarily, and I had direct access to the bulb!  I’ll be honest — what took me probably an hour should’ve taken about 10 minutes.  Next time, I won’t hesitate to again make headlight bulb changing a DIY project.

It feels good

My dad was a mechanic for years, and even though I have replaced an engine or two, and we always repaired our own vehicles growing up, I didn’t exactly absorb all that knowledge.  It feels good to accomplish something that’s a little out of your element.  It did cost me an hour of sleep last night, but it did save us the money and time of going to the auto shop and paying someone else to do it.  Maybe I’m speaking from more of a male point of view, but most importantly, doing it yourself gives you the ownership of a job well-done.

The Dollar Disconnect

I’m not going to lie, it is nice to have someone else cook & serve you food, clean your house, walk your dogs, mow your lawn, or repair your car.  If you do not have enough time but have enough money, it’s just easier and less stressful to have others help you out.  But sometimes easier & less stressful can lead to excuses and laziness, which will hit your budget big-time. A “Dollar Disconnect” occurs, where the appreciation & satisfaction of fulfilling a need is separated by a money transaction, causing you take that need for granted.

If I would’ve sent this to the dealer to be fixed, I would have created a Dollar Disconnect and have missed out on this reminder:  sometimes, it’s nice to see that work can be rewarded, even if it’s something as simple as changing a headlight.

Have you done any recent DIY projects?  Have you experienced too much “Dollar Disconnect” in your life recently?









photo by pedrosimoes7

Do It Yourself Budget, DIY, Dollar Disconnect, Saab

Hyundai Assurance Plus Program

It was Hyundai who first made big headlines by making an offer you can’t refuse:  if you buy a car from us and subsequently lose your job, you may turn in the car without any hits to your credit.

Now, they’ve upped the ante with their new Hyundai Assurance Plus program.

Under this new version, if the Hyundai buyer loses his or her job within a year of purchase, Hyundai will pay the vehicle loan or lease for 90 days during that year while the owner looks for work.  If the owner finds another job and keeps the vehicle during that 90-day grace period, Hyundai’s “got-your-back” payments do not have to be repaid.

Others following suit & getting creative

Here’s a few more that are now following suit with incentives to keep dollars circulating:

1. From Hyundai to Honda. Baseball season is nearly upon us.  Vandergriff Honda, a dealer in the Dallas-Fort Worth area, now has the following promotion to entice borrowers:  Buy a new Honda from them between March 9-16, and they will pay your car off should the Texas Rangers win their first 4 games AND the New York Yankees lose their first four games.  That’s right, Rangers 4-0 + Yankees 0-4 = FREE Honda!
2. Layoff Protection Program. Irvine-based Western National Property Management, Orange County’s (CA) second-largest landlord, will now allow a family to move out of their apartment with 30 days notice if the primary bread winner loses his or her job. The tenant would still have to pay that last month’s rent, but would not be liable for the balance of the lease.
3. Homeowner Education and Loan Protection Program (H.E.L.P.).  For this recession-proof mortgage, the deal is simple:  If you loan or refinance a home with State Mortgage and involuntarily lose your job within two years after starting the mortgage, the company will cover six months of payments with no maximums.
4. The Lord giveth… Churches and other religious congregations aren’t immune to hard times.  As they began seeking pledges to the annual stewardship campaign last week, church leaders at the Unitarian Universalist Church of Indianapolis offered an unusual assurance to members:  Lose your job during the course of the year and the church would refund the contributions you’ve already made. “It transcends the money,” said Eric Hinkle, acting president of the church’s board of trustees.  “It’s about deepening the relationship between your community and your church.”

Your Opinion?

WOW, even churches are getting creative during hard economic times.  I for one think the more creative, the better.  Those who are willing to connect to their audience on an emotional and psychological level will be benefited with customer (and parishioner!) loyalty once we make it through the hard times.

Which ideas above do you like?  What ideas would you come up with to spur business?

Personal Finance charity, church, giving, Honda, Hyundai, landlord, lease, marketing, mortgage, offering