WATER, WATER EVERYWHERE

By John Ingrisano

By John Ingrisano

Director, Family Finance Conference Center

          I had to laugh at my own foolishness recently.  Here I am, the money guy, offering advice on how to make, spend, keep, and manage your assets.  However, I ended up paying 40% more for a meal.  Here’s how:

          I was at an airport last month, grabbing a quick bite between flights.  The price for my tortilla wrap came to $4.99.  While standing at the counter, I also realized that I needed something to drink, so, without thinking, I picked up a $1.99 bottle of water.

          As I walked away, having already cracked the seal on the water, I overheard the next person in line ask for a salad and a “glass” of water.  The counter clerk, without hesitating, scooped up some ice in a cup and ran water out of the tap.  No charge.   Wow!  It was a head-slapping V-8 moment!  I walked away shaking my head, half annoyed and half amused at my own foolishness and lack of thrift.  

           The point (two points, actually):  First, in the United States, the water that comes out of the tap is safe and drinkable, no matter what anyone says.  Bottled water may have its place, but it is an expensive luxury.

          Second, if we are not vigilant, we can be nickeled and dimed to death at every turn by hidden fees and add-ons.  In the airport incident, I was less than thrilled at paying nearly $2 for a bottle of water.  When I finally thought about it, however, what really ticked me off was that I could have gotten that same product for free.  Plus, it jacked up my tab by a full 40%!  (Oh, and it’s not the vendor’s fault.  I take full responsibility.)

          So, in the words of Ben Franklin:  “Watch the pennies, and the dollars will take care of themselves.”   

***

Want to learn more about money management?  Visit The Family Finances Conference Center.   We also do affordable seminars and money management workshops for businesses, nonprofits, and other groups.  All programs are tailored to the unique and individual needs of your business or organization, based on the principles of the book and workbook set, The Back to Basics Book of Money!  A Couple’s Guide to Financial Peace. 

For more information, contact me at the Family Finances Conference Center by email (john@b2bbookofmoney.com) or my direct phone line (920-559-3722).

John Ingrisano

Director

Family Finances Conference Center

209 Church Street

Algoma, WI 54201

(920) 559-3722

john@b2bbookofmoney.com

MONEY MANAGEMENT REDUCES THE MARRIAGE “QUARREL FACTOR”

By John Ingrisano

SHOULD YOU ORDER A “CREDIT REPORT LOCKDOWN”?

By John Ingrisano

By John Ingrisano

Director, Family Finance Conference Center

It happens more and more these days:  You open the mail to find a bill for a credit card or store account you do not recognize.  If that’s not enough, the invoice has thousands of dollars of charges on it.  Somehow, identity thieves got their hands on your personal information and went to town on your nickel, setting up new credit card and installment accounts from coast to coast and beyond.

If so, you’re not alone.  More than eight million people in this country are victims of identity theft each year. 

Fortunately, there is a new tool in the battle to stop being ripped off, known as a credit report lockdown (also called a credit freeze or security freeze).  This tool works by blocking identity thieves from applying for credit cards or setting up bogus loan accounts, even if they have your personal data.   

Credit report lockdowns are available from all three major credit reporting agencies (Equifax, Experian, TransUnion). They work by blocking the release of data for new account applications without your permission.

How they work:  Security freezes help prevent a very specific type of identity theft, which occurs when a criminal attempts to open credit in another individual’s name.  Lenders typically require access to the borrower’s credit report before issuing a loan or credit card.   If the lender is blocked from obtaining the applicant’s credit report, it is unlikely the loan or credit card will be approved.  The result is a reduction in the risk that loans or credit cards will be issued fraudulently. 

The freeze is an all-or-nothing deal, however, in that the credit freeze effectively stops any access to the credit report, with the exception of current lenders.  If you place a freeze on your credit report, you must request that the freeze be lifted if you want to apply for new credit.  You can lift a freeze for a specified time period, such as two weeks, or to allow a specifically named lender access to your account information. 

Note that a security freeze generally does not apply to circumstances in which you have an existing account relationship and a copy of your report is requested by an existing creditor for certain types of account review, collection, fraud control or similar activities.

There are drawbacks.  While the concept is fairly simple, the credit lockdown process itself can be fairly difficult to manage.  Specifically… 

1.     You might end up blocking or at least slowing your own legitimate credit applications.  So, if you choose to place a security freeze on your credit file, be sure to plan ahead for all of your credit applications.

     Remember:  This also can also impact more than credit card and other loan applications.  A security freeze could block or delay approval of applications you make regarding a new loan, credit, or mortgage, as well as issuance of insurance, approval for government services or payments, leases on rental housing, employment, new investment accounts, licenses, and even cellular telephone contracts, utility approval, internet credit card transactions and other services, including extensions of credit limits at the time of a purchase. 

2.     There are costs involved.  Though the laws in some states provide that you may be eligible for a free security freeze if you are the victim of identity theft, the typical cost  is $10. (Unfreezing your account will cost another $10.)  Since you must contact all three reporting agencies separately, each change could cost $30.  

3.     The process can be slow and cumbersome.  You may be required to submit detailed documentation, mostly for your own protection, especially when lifting a freeze.  Plus, you must contact all three credit reporting agencies individually.  

4.     Glitches can occur.   A lot can go wrong administratively, especially since you are dealing with three separate entities.  While most of the agencies’ requirements are uniform, there can be variations.  If you end up having to resubmit information, additional delays can ensue. 

5.     A security freeze is not a panacea.  According to the Federal Trade Commission, only 15 percent of all cases of identity theft involve fraudulent new account origination.  So, a security freeze offers good but limited protection in a specific, narrow range of situations.  It will not prevent identity theft in the majority of cases.

Is a security freeze worth the time and cost?  That depends.  If you have ever been the victim of ID theft, you may well decide yes.  Also, a security freeze is a good way to add an extra layer of protection to thwart identity thieves.  However, keep in mind that there are a number of details and limits about which you need to be aware.  Also, if you do plan to expand your credit or make other contractual commitments in the near future that will require a credit check, you may want to hold off.  Otherwise, you could end up scrambling to unfreeze your report.   

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KNOW YOUR CREDIT CARD RULES

By John Ingrisano

KNOW YOUR CREDIT CARD RULES 

By John Ingrisano

Director, Family Finance Conference Center

The devil is in the details when it comes to credit cards  … and, no, it is not accident that you get notices in the mail every other month about “minor” changes to your credit terms.  Does anyone really read those announcements?

Well, here is one update:  The credit card rules have changed … again.  Under the 2009 Credit Card Accountability, Responsibility and Disclosure (CARD) Act, which went into effect last year …

• If your card has several rates (such as through a promo or transfer offer), payments above the minimum must be applied to the highest interest rates.  In the past, it was common for card issuers to credit payments to low rates first, keeping you paying interest on the higher rates. So, this rule can save you a ton of interest.    

• Rate increases cannot be applied retroactively to existing balances unless you are delinquent on your bill. 

• Your children under age 21 can no longer apply for a card alone.  You must co-sign the application.

• The issuer cannot automatically charge a penalty if you exceed your limit (though your interest rate can be hiked).

Note:  These are just some of the newest rules.  There is always fine print.  We recommend that you take some time to actually read it.

Also, note one big exception:  The above rules only apply to consumer cards, NOT to business cards. 

The best idea of all:  Put away your credit cards completely.  If you cannot afford to pay cash, then you cannot afford to buy it.  Period. 

$ $ $

Want to learn more about how to get the biggest bang for the money you save and spend? Check out The Back to Basics Book of Money! A Couple’s Guide to Financial Peace.  The book contains 10 valuable Couple Money Skills.  Plus, the Back to Basics Book of Money Workbook (which dovetails with the main text) offers 31 practical, hands-on Wealth Builder activities that can help you and your partner build financial and domestic stability.  Both the book and workbook, which retail for $31.98 plus S & H, are available at the Family Finances Conference Center website for $27.99 total. 

The Family Finances Conference Center tailors programs to the unique and individual needs of client organizations and their members and employees, based on the principles of the book and workbook set, The Back to Basics Book of Money!  A Couple’s Guide to Financial Peace. 

For more information, contact me at the Family Finances Conference Center by email (john@b2bbookofmoney.com) or my direct phone line (920-559-3722).

John Ingrisano

Director

Family Finances Conference Center

209 Church Street

Algoma, WI 54201

(920) 559-3722

john@b2bbookofmoney.com

John Ingrisano is a business journalist, public speaker, author of The Back to Basics Book of Money! A Couple’s Guide to Financial Peace, and director of the Family Finances Conference Center.  He can be contacted at (920) 559-3722.

HOW TO AVOID MOVING SCAMS

By John Ingrisano

By John Ingrisano

Director, Family Finance Conference Center

If you’ve ever hired a moving company to transport your life’s possessions from one house to your new home, you know that sinking, fearful when the movers show up at your door.  

Will you ever see your stuff again?  Will cherished items turn up broken … or not turn up at all?  Also, will the price quoted be the same as the amount demanded once the truck is loaded, or will the movers attempt to hold your life and possessions hostage for a ransom?

If selecting a mover creates high anxiety, you are not alone … and you have good reason for your concerns.  While most movers are honest, the industry is rife with corruption.  

If you or a loved one is moving, here are some ways to protect you against moving scams: 

• Take a video of everything in your home, concentrating on items of unusual value or worth.  If you have time to write up a list of your possessions, do so.  That way, if something disappears, you have proof.

• Get several quotes from different companies. 

• No quotes over the phone.  Make sure a representative comes to your house.  Some movers, in order to save time, as well as to give themselves wiggle room in terms of adding costs, may ask you how many rooms you have or how many boxes you think you might need.  You are not a moving expert, and you have no way of providing a reliable estimate of your needs.  If you guess too high, expect no refund; if you guess too low, don’t be surprised if additional charges are added.  Instead, let the experts do their jobs and take the responsibility.

• Insist on a getting a Not-to-Exceed form.  In the moving business, that is a binding estimate, sometimes called a “not to exceed” form.  Get it in writing and signed before anyone touches anything.  Then read it carefully before you sign it.  This also provides you with the best legal recourse if something goes wrong.

• Never pay in advance.  Reputable movers expect to be paid when the job is complete.  (Remember, they have your possessions on their truck.  That should be enough.)

• Don’t let your goods be held hostage.  Disreputable movers have been known to provide low-ball estimates, load up the van, and then announce that there will be additional charges.  That’s why you need that binding estimate, which spells out what is included and what is not.  No surprises.

• Check the movers’ proof of insurance.  Don’t take anyone’s word for it; get a copy.   

• Lock in a delivery date, and get it in writing (with penalties for delays, if possible).  Some movers pick up several shipments along the way to your destination.  While this is usually legal, it can delay your delivery by days, even weeks. 

• Oversee the unloading process, whether at your new home or at a storage facility. 

• Move highly valued items personally.  Movers work fast and can be rough on your goods.  So if possible, either hand-carry special items or have them insured and sent to a safe place via a specialized shipping company, such as FedEx or UPS. 

Moving can be a traumatic experience.  Follow the above steps to reduce the odds of it becoming a serious disaster.  Good luck.  – JRI

SURVIVING THE BOOM IN “BOOMERANG KIDS”

By John Ingrisano

By John Ingrisano

Director, Family Finance Conference Center

It’s grown from a trend to a movement to a downright lifestyle:  Thanks to a lousy economy and zero-opportunity job market, 85% of this year’s college grads are moving back home with Mom and Dad  (TIME News Feed).  But wait, there’s more:  A recent Pew Research Center study shows that 40 percent of 18 to 29 year olds are either jobless or out of the workforce altogether.  It’s a tough time for the younger generation.  

The result can be an emotional challenge when junior moves back into the basement; it can also be a financial strain for everyone.  

A few tips to help both generations survive and maybe even thrive: 

• Lay down rules … and put them in writing.  These should include everything from use of shared resources (“Who ate the last piece of pizza in the frig?”) to house guests (“Mom, meet Cindy.  She’ll be staying for a few weeks.”) to pets (“Monster’s not like other Pit Bulls; he’ll get along just fine with your Fluffy.”) to the use of tobacco, alcohol and drugs (“Hon, what’s that  smell?”).  Need help setting up the rules?  Consider a pre-move-in contract.

• Decide who pays for what?  Yes, you want to help your children, but if your son or daughter gets a job, consider asking for rent.  Decide such things as who fills up the gas tank on the car, as well as who drives the vehicle.

• Decide how much you should/can help with debt.  Between college loans and possible credit card bills, your boomerang child may return home with some major financial liabilities … and no money to pay them.  Yes, you may want to help.  At the same time, be careful not to jeopardize your own financial security.  It is not uncommon for parents to tap into their retirement nest eggs to help.  Only do so if it will not undermine your own plans.  Seriously.  If you are in your 50s, you may have ten to 20 years to retirement.  That gives you very little time to recover if you begin siphoning off assets.  (Also, if you are not yet 59 ½, you could pay tax penalties if you take qualified money.)  Your children, on the other hand, may have 40 to 50 years before retirement.  That gives them decades to crash and burn and still  recover financially.  So, do not automatically pick up your child’s bills when they come in.  Maybe free room and board is not just all you can afford, but more than enough. 

• Have a move-out date.  This gives everyone something to look forward to.  It also provides an incentive to help motivate your child to be aggressive in his or her job search.  You can always revise the date as needed.  However, setting one initially helps define an eventual exit strategy.

These are tough times for American families.  If your child need to return to the nest, make sure everyone understands the pros and cons of the deal and is willing to work together.   Good luck.  – JRI

$ $ $

Want to learn more about how to get the biggest bang for the money you save and spend? Check out The Back to Basics Book of Money! A Couple’s Guide to Financial Peace.  The book contains 10 valuable Couple Money Skills.  Plus, the Back to Basics Book of Money Workbook (which dovetails with the main text) offers 31 practical, hands-on Wealth Builder activities that can help you and your partner build financial and domestic stability.  Both the book and workbook, which retail for $31.98 plus S & H, are available at the Family Finances Conference Center website for $27.99 total. 

The Family Finances Conference Center tailors programs to the unique and individual needs of client organizations and their members and employees, based on the principles of the book and workbook set, The Back to Basics Book of Money!  A Couple’s Guide to Financial Peace. 

For more information, contact me at the Family Finances Conference Center by email (john@b2bbookofmoney.com) or my direct phone line (920-559-3722).

John Ingrisano

Director

Family Finances Conference Center

209 Church Street

Algoma, WI 54201

(920) 559-3722

john@b2bbookofmoney.com

John Ingrisano is a business journalist, public speaker, author of The Back to Basics Book of Money! A Couple’s Guide to Financial Peace, and director of the Family Finances Conference Center.  He can be contacted at (920) 559-3722.

COUPLES: WORK THROUGH TOUGH TIMES TOGETHER

By John Ingrisano

By John Ingrisano

Director, Family Finance Conference Center

The recession is taking its toll on families.  If one of you gets laid off, finding a new job is almost impossible these days.  Even when income is still coming in, however, there is a sense of financial doom just outside the campfire light.  One wrong move and the wolf is through the door. 

As a result, these days more than ever before, couples are tense over money, and it is taking its toll on relationships. 

What to do:

• First and foremost, work together.  No secret, no games.  Get on the same page.  Your relationship, your marriage, your family, and your home depend on it.    
• Talk about all money decisions on a regular basis.  That means talk, not argue.  Money issues are still the top reasons for domestic discord.  The best way to begin working together and talking about money is to pay bills together.  Discuss each bill as it comes up for payment. 
• Put away the credit cards.  Good advice at any time, this is crucial today.  No plastic; cash only.
• Pay down your debt.  That way, if one of you does lose his/her job, you will be in a better position to weather the storm.  So, if you are making minimum payments on your credit cards, end that practice right now.  Instead, figure out when you can be debt free, and work toward that goal.
• Do not skip payments.  Your credit score will be downgraded so fast you won’t know what hit you.   
• Defer big purchases.  These are odd, strange, and dangerous times financially.  Put off that new couch or cruise this winter.  It won’t kill you … and, hopefully, this recession will end soon.  In the meantime, watch your expenditures.
• Get on a budget.  Calculate when, where and how you spend every penny.  In no time at all, you will find that you are living better on less.  Funny how that works. 

Each of the above tips will help increase the probability that you will get through this recession financially intact.  They will also help keep your relationship strong.  Good luck.  – JRI

SHAVE COSTS OFF VACATION TRAVEL THIS SUMMER

By John Ingrisano

By John Ingrisano

Director, Family Finance Conference Center

If you can shave 10% off your $2,000 vacation travel plans this summer, that’s $200 back in your pocket.  Do it a few dollars at a time.  Best of all, it’s easy.

Here are some tips:

• Pack light and gate-check airplane bags.  Most airlines are still charging $15 to $25 per bag each way.  That alone can cost a couple $100 round trip … much, much more if you take the kids along.

Instead, pack lighter and use smaller bags.  Or double up and use one bigger bag.  (But watch the weight; there is usually a 50-pound limit.)

• Shop for the best rental care deal.  Car rental companies sometimes play fast and loose, adding on extra charges like crazy.  However, they are also in fierce competition with each other.  Fortunately, in many airports, the counters are side-by-side.  Do not be afraid to walk the line and ask for the best deal.  (Even if you reserve a car, most rental companies do not take the credit card in advance, leaving you free to find a better deal on the spot.)    

What else:  Ask for the best rate and request a free upgrade.  Especially with gas prices so high, the demand for big cars is way down.  (I got a Hummer-size Dodge Nitro last month for the price of a compact.)  Also, there should be no mileage charge (few companies do charge for miles driven anymore), no additional insurance costs (these can double your rental costs, but be sure to check with your insurance agent back home to make sure you are covered for driving a rental car on vacation), and always plan to return the car with a full tank of gas.  (That convenient, we-fill-it-for-you offer means they will charge you for a full tank, even if you return it half full.)  Finally, if you expect to need a GPS, bring your own; do not rent it from the car company.  Depending on your needs, all this can save you $100 or more on your car rental.      

• Look for the best hotel for the best price.  Rates and amenities vary greatly.  However, it is often the newest, mid-priced motels ($65-$85 per night) that not only offer quality rooms, but also the most no-cost amenities, even, in some cases, a hot-buffet breakfast (which can save you between $5 and $10 per person per day) and a pool.

Also, ask for every discount you can, from 10% off for Triple A to senior savings to an impromptu request for “the best rate you have.” 

So, watch your dollars and your pennies while on vacation, just as you should be doing at home.  That way you can have a fun vacation while saving a ton of money.   

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HAVE MONEY WORRIES?

By John Ingrisano

Are Money Worries Ruining Your Peace of Mind? 

By John Ingrisano

Director, Family Finance Conference Center

[The following is taken from The Back to Basics Book of Money: A Couple’s Guide to Financial Peace, by John Ingrisano.  For more information, click on the title above.]

Doubt that money plays a major role in your emotional well-being?  Ask yourself how worrying about paying an overdue bill, using a credit card when you know you are already having trouble making payments, or finding that you have a 31-day month but only a 28-day paycheck – how all these distract you and reduce your ability to enjoy your life.  You and your spouse or significant other should take the following mini-quiz.  Answer the questions below, and give honest answers, checking all that apply.

She    He

[ ]      [ ]      Have I ever lost sleep over money concerns?

[ ]      [ ]      Have I ever argued with a family member over money?

[ ]      [ ]      Have I ever avoided someone to whom I owed money or

                   dreaded the arrival of the mail because it might contain bills?

[ ]      [ ]      Have I ever debated with myself over whether I could join

                   friends or family Members for an evening out or other fun time

                   because I could not afford to go?

[ ]      [ ]      Have I ever purchased something and experienced “buyer’s

                   remorse” after I’d gotten it home?

Now imagine how differently you would feel if you had no debt and adequate money in the bank to pay bills, with a little left over for a fun evening out. 

Do NOT think about new things you could buy or another trip you could take.  Instead, consider how much less you would worry and, quite frankly, how much happier you would be. 

$ $ $

Want to learn more about how to get the biggest bang for the money you save and spend? Check out The Back to Basics Book of Money! A Couple’s Guide to Financial Peace.  The book contains 10 valuable Couple Money Skills.  Plus, the Back to Basics Book of Money Workbook (which dovetails with the main text) offers 31 practical, hands-on Wealth Builder activities that can help you and your partner build financial and domestic stability.  Both the book and workbook, which retail for $31.98 plus S & H, are available at the Family Finances Conference Center website for $27.99 total. 

The Family Finances Conference Center tailors programs to the unique and individual needs of client organizations and their members and employees, based on the principles of the book and workbook set, The Back to Basics Book of Money!  A Couple’s Guide to Financial Peace. 

For more information, contact me at the Family Finances Conference Center by email (john@b2bbookofmoney.com) or my direct phone line (920-559-3722).

John Ingrisano

Director

Family Finances Conference Center

209 Church Street

Algoma, WI 54201

(920) 559-3722

john@b2bbookofmoney.com

John Ingrisano is a business journalist, public speaker, author of The Back to Basics Book of Money! A Couple’s Guide to Financial Peace, and director of the Family Finances Conference Center.  He can be contacted at (920) 559-3722.

BEFORE YOU CANCEL YOUR LIFE INSURANCE POLICY…

By John Ingrisano

This is a horrible, true story I head this week:   It’s about a life insurance death claim with no money.  A few details have been changed for the sake of privacy, but the relevant facts are accurate. 

A forty-something woman and her mother came into an insurance agency to pick up a claim form.   The woman’s 47-year old husband, supposedly in good health, had died of a heart attack a month earlier.  Bang.  Just like that.

The widow had come in to request the life insurance proceeds on her husband’s policy.  She believed the policy was for a term policy with a death benefit of approximately $500,000.  This was money that would enable her and her teenage children to continue to live in their home and maintain their lifestyle.  It was money that would have made the difference.

They were pleased to learn that the death benefit had actually been $700,000.  However, they were stunned to hear the next piece of news:  Her husband had cancelled his life insurance coverage just three months earlier, returning his premium notice with a handwritten note that read, “I can’t afford this!” 

Term life insurance, unlike whole life and other permanent coverage, has no living benefits.  When the policy terminates, so do all death benefits. 

As the two women left the office, the widow commented to her mother, “I think we’ll have to sell the house.”  (And BTW, that is going to be a challenge, too, in today’s lousy real estate market.)

My point:  The husband just might have wanted to discuss his decision with his wife/widow before cancelling “their” coverage.  That’s right, “their” coverage, because the life insurance decision — whether to buy, defer or cancel — impacts a whole family.  Life insurance is not about money.  It is about people … their lives and their dreams.

I know people who are glib about life insurance and tend to look down their noses at agents.  However, here’s the real fact:  If you cherish your partner and children, you need to have life insurance.  That man’s $700,000 of benefits his widow will never receive would have made the difference in lives of his wife and children.  

Sometimes terminating a policy is the right decision.  But think through your decision.  Start by sitting down with a licensed professional and getting the facts, finding out what other options are available, and making sure you and your loved ones understand the potential consequences of your decision.