THE RIGHT BANK
Cutting down on fees
You should not have to pay a monthly fee for a checking account. If you do, ask your bank to waive it. If it won’t, try one of these approaches:
- Ask whether the bank will waive the fee if you set up direct deposit of your paycheck.
- If you have more than one account, see whether you can link them to meet minimum balance requirements.
- Some banks waive the fee for ATM-only customers. In that case, you’ll have to pay a small fee if you need to see a teller. If you don’t do that often, this could be right for you.
- Finally, find out whether you’re paying for any services you’re not using, such as overdraft protection, and cancel them.
Banking 101: don’t bounce checks
If you write a check and your account doesn’t have the money to cover it, that’s called bouncing a check. Many banks offer overdraft fees to cover that possibility. Or the person you meant to pay may charge a returned-check fee.
Avoiding an overdraft is the cheapest way to go.
- Keep track of how much money you have in your checking account by keeping your account register up-to-date.
- Record all ATM withdrawals and fees, debit-card purchases and online payments. Don’t forget about automatic bill payments you may have set up for utilities, insurance or loan payments.
- Review account statements each month.
- Sometimes mistakes happen. If you do overdraw your account, deposit money into the account as soon as possible to cover the overdraft amount plus any fees and daily charges from your bank. Depositing money into your account can help you avoid added overdrafts and fees.
- Link your checking account to a savings account you have with the bank.
CREDIT CARDS
Look for better deals
Keep an eye out for offers in the mail. If you do get a new card with low financing charges in the beginning, push yourself to pay as much principle as possible during this time period to get your debt down before the higher rates kick in.
Monitor the plastic
If you have to pay interest on a credit-card balance, make sure you’re getting the best rate you can. Examine your statements to see what interest rate you’re paying. Then, check online to learn what other companies are offering. Bankrate.com is a good place to start. The site lets you investigate different rates. From there, call your credit-card company and ask for a lower interest rate. Some studies have shown that almost half of customers who ask for a lower rate will get it.
First, a few tips:
- Negotiations work best if you have strong credit. If your credit is poor, they won’t feel the need to bargain.
- Don’t tell them where the other offer comes from; they’ll be ready to tell you why that card isn’t right for you.
- A lower interest rate will mean lower minimum payments. If you want to save money over the long term, don’t pay less monthly – use the opportunity to pay off your debt faster.
- If you don’t want to change cards, it never hurts to ask to have your rate lowered. Sometimes it works.
Also:
- If you pay an annual fee, ask to have it waived.
- If you’re hit with a late fee, ask to have it waived. This one only works the first time.
- Always do your best to pay higher than the minimum payment. Credit-card companies would never encourage this. They get a huge part of their revenues from fees. According to a February report in The Wall Street Journal, revenue from fees increased from $17.1 billion in 2006 to $18.1 billion in 2007.
Card rewards, or not
Rewards cards offer cash back, travel rewards, gift certificates and more. But pay attention to what you pay in exchange for the rewards. Issuers do not give rewards out of kindness.
- Reward cards may have high annual fees. In some cases, the better the rewards, the higher the fees. For example, the exclusive American Express Centurian card carries an annual fee of $2,500. Many good reward cards that do not charge an annual fee are available.
- Just because you earn the reward does not mean that it automatically comes to you. Redemption terms may also be complicated, making redeeming your reward difficult. Issuers also have the right to change the terms at any time, making claiming your reward more difficult. Often, you have to call and ask for your reward. Rewards my expire if you have no account activity in as little as 18 months. Rewards may be frozen or canceled if you go over the credit limit or pay your bill late.
- You will probably spend more with a reward card. The average monthly spending on a credit card with no rewards program is $465. That figure increases to $890 for a rewards card, according to a Nilson Report.
Not in your best interest
Take note of how interest racks up. A $1,000 balance at 18 percent blows nearly $200 a year in interest. If you can’t pay it off in full, transfer your debt to a lower-rate card.
Too many cards?
To remove your name from the mailing lists offered by the main consumer reporting agencies, call (888) 5OPTOUT (567-8688) or write Trans Union LLC’s Name Removal Option, P.O. Box 973288, Jackson, MS 39288-7328
Include your name, current address, previous address if you moved in the past six months, Social Security number, date of birth and signature.
FLEXIBLE SPENDING ACCOUNT
Saving on health care costs
If your company offers a flexible spending account, use it.
The accounts let you set aside part of your pretax salary for dependent-care costs and unreimbursed medical expenses. When you sign up for your health insurance, you decide how much money to set aside in the account. If you’re in the 28 percent tax bracket and allocate $500 to cover your health-insurance deductible, you’ll cut taxes by $140.
Try to anticipate big-ticket costs, such as major dental work.
But don’t allocate too much in expenses. If you don’t use all the money, you lose it.
SAVINGS BOOST
CDs pay
If you have a little savings cushion, short-term CDs may get you better interest rates than a savings account. You want to be able to access your fund whenever necessary, so CDs aren’t a great option if you only have the bare minimum (or less) saved up, as there may be penalties for jumping out early. And CDs, like your checking and savings accounts at an FDIC-insured bank, are FDIC-insured.
Bill yourself
If you’ve just finished paying off a loan, don’t stop. Once out of debt, bill yourself.
Transfer the money that would go into paying off your debt into your emergency fund.
After all, you were able to get by without it in the past, so you should still be able to get by without it now and into the future. And even if you have the emergency fund set, consider continuing with this routine to save up money for a wedding, a house, retirement or other big items down the road.
SPENDING CASH
Keep track of expenses
It’s easy to spend cash, and it leaves no paper trail. That’s not always a good thing.
If you want to keep tabs on your spending, use a checkbook register. Writing it down forces you to stop and think before you spend money, and may make you think twice before you buy something unnecessary.
In case of emergency make like a Boy Scout
A recent Parade magazine survey showed that 41 percent of Americans have no emergency savings. Many experts suggest having enough emergency savings to cover at least three months of living expenses, though more is always better.
The exact number of months or amount to have available really depends on your situation. If you’re single and have the ability to easily scale back your expenses in tough financial times, then you may not need to stash away as much as someone who is the only source of income for a family. You should also assess the likelihood of losing your job and not being able to find another job quickly.
Start saving now
Emergencies are unpredictable. If you don’t have a fund in place, you are already behind and need to catch up fast.
SEE AN EXPERT
Help from pros
Credit counseling may not be necessary, but if you feel you need it, check out the National Foundation for Credit Counseling at www.nfcc.org . This is a good place to start a search for help.
You may not find the right fit the first time, but move on or keep trying until you find one that is a good fit.
CHECK YOUR WITHOLDING
Paycheck loan
Check to see the tax withholding amount on your paycheck. If more money is being withheld than necessary, you are loaning the government money – and losing interest you could be earning on that money in the meantime. Check to see how much you have selected to be withheld and make changes if you have to. Go to www.completetax. com for a link to a federal withholding calculator.
ONLINE SAVINGS
Pay from home
Paying bills online saves stamps, saves time and is as convenient as can be. Fees are rare, but always check to see whether there are any.
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Coolguy
Have a good Thanksgiving.
Steve
Have you ever heard of "context"? Most certainly if one would keep reading those "BLS" statements, they would have picked up some form of the word "region", or if they would have kept reading about the associates degree item, they would have caught the whole "outside of highly technical or nursing" comment. You are reading exactly what you want in to everything, and although most of what I have to offer about this area is negative, it is not contradictory, hypocritical, or anything else you want to lay on it. Take a survey of how well any one under the age of 30 and not in the military is doing here. I bet about 75% of them live with their parents, with most who dont being married in two income set ups. In 9 out of ten metro areas this size or bigger not on an ocean coast, that same person would be living comfortably on their own.
No reading impediment here
Nice try. Anyone reading the posts you have made would agree that your comments have been definitive and rigid. How else is one to take your comment that “an associates degree is absolutely worthless” or “The BLS is completely worthless in deciding anything” followed by “….BLS, and in some areas, it is accurate” Then you advise people to move out of Hampton Roads yet in a different thread you said, “Moving in a bad economy is a tremendous risk.”
I can read well and it is clear that you are anything but consistent with the exception of your complaining and absolute statements which are almost exclusively negative.
More tips
I started using coupons and paying attention to what comes in the mail or using deal websites like www.slickdeals.net as you can find a ton of deals and it gets new deals every minute. www.fatwallet.com is another great web site for deals. You can even find free subscriptions to magazines and stuff on those web sites. before I buy anything major I first do a search on those web sites.
Also, my biggest savings was my mortgage. My loan with Countrywide was in an adjustable rate and interest only loan. My payment was 3800. I'm now paying 2200 and that rate is fixed for all 30 years. I used a web site called www.LoanModAssistant.com. It was only $199 and worked like a charm. It took me 6 weeks to finish this. That was like getting a 1600 per month raise. Anyone that needs help with this should check it out.
I hope these tips help.
Steve
It would be nice if people didnt protract their personal reading impedements and fallacies on others statements, because it simply makes them look foolish. Additionally, it would be nice if people wouldnt make unlike comparisons, such as, comparing general advice, to single individual targeted criticism. It is a relief that such individuals are not in the legal profession.
Hypocrite
It would also be nice if people sitting behind a computer screen weren’t telling everyone that college is useless, that Hampton Roads is a “cesspool,” weren’t contradicting themselves, and complaining in several threads. You offered advice to move from Hampton Roads yet complain when you are challenged about following your own advice. Do you know the situation of those you advised to move or to avoid college? I didn’t think so.
Steve
Wouldnt it be nice if those suggesting others lacked intestinal fortitude werent sitting behind a computer screen while making such suggestions, especially when they know nothing about the person they are making such suggestions to?
Ilikesnacks
Charlotte, NC, Nashville, TN, Memphis, TN, Indianapolis, IN, Atlanta, GA, Raleigh, NC, Lexington, KY, Milwaukee, WI, Madison, WI, Fort Wayne, IN, Columbus, OH, St. Louis, MO, Dallas, TX, Houston, TX, Austin, TX, San Antonio, TX, Kansas City, MO, Des Moines, IA, Lincoln, NE, Phoenix, AZ, Oklahoma City, OK.
Just a short list of major cities that those 4 things would be achieved in.
Glenn
Wouldn’t it be nice if those who advise others to move out of Hampton Roads actually had the intestinal fortitude to take their own advice?
Glenn
Too bad most of those "employed" are employed as waitstaff and bus boys. Both Virginia Beach and Chesapeake are in the Forbes top 100 most overpriced cities, and pretty much the only cities east of the Mississippi and not in Florida or the coastal North East that made the list. Additionally, Virginia Beach took the recent title of highest percent of people holding negative equity in their homes, which is a recipe for huge foreclosure numbers.
Where?
Move out of Hampton Roads. If you move out of the area, you will receive the following.
Please, tell us where that magical land of plenty is located.
I would RATHER STAY IN HAMPTON ROADS!
Contrary to those previous comments, Hampton Roads has a whopping 45% lower unemployment rate than the national average mainly due to the military. Hampton Roads also suffered much less that other comparable sized cities when it comes to home forclosures and dropping home prices. Our gas prices here are also lower than the national average which is now $2.02 (Here it is about 1.79-1.89). Every time I go to a restaurant around here there is always a wait even with the regular chain restaurants which tells me people still have discretionary income. I would much rather have a steady local economy like ours than the ones with huge peaks and troughs like others.
Another good way to save!
Move out of Hampton Roads. If you move out of the area, you will receive the following.
1. A significant pay raise
2. A significant drop in the cost of living in relation to your pay
3. A house bigger then 900 sqft for under 200k
4. Savings in gas in most areas, either due to competent public transportation or lack of grid lock traffic
Pretty standard stuff
That's all pretty standard stuff.
I don't think I'd mess with a short term CD unless you have a lot of cash to put in it. The interest rates you can usually get aren't much different from a regular savings account so you're locking up your money to make enough to buy a cup of coffee.
Usually what people mess up is the thinking wants are needs. You don't need cable TV, you don't need a cell phone, you don't need to go out to eat, and you don't need a new car.