Gather Little by Little

Last week, I attended an Economic Conference about the global stock market. The economist pointed out that most Americans started saving again instead of spending away all their money. I was happy to see that the population has finally realized the impact of saving money towards achieving their goals instead of borrowing money on their home to pay off their credit cards. This is a huge step to gain control of your personal finance.

Back in early 2008, there was a review of SmartyPig done in this blog (you can read the Smarty Pig Review here). Since we have now arrived at a time to save money, I started looking for the best interest rates in savings’ accounts.

My first reflex was to look at ING. They usually have the best rates of all. It appeared to be at 1.30% as of November 23^rd 2009. Then, I went back to Select CD to see if I could beat it. Their main page showed a rate of 1.75%. Encouraged by my research, I kept searching to see if I could reach the psychological mark of 2%. Well I found it at

SmartyPig: They now offer 2.01%!

Then, I started reading more about Smarty Pig; I read previous reviews by Larry and looked at what had been said across the blogosphere when it was first launched. I picked up 2 interesting reviews written by other famous Bloggers;Bible Money Matters,  Being Frugal and Trent over The Simple Dollar.

Most reviews I found were issued in March or April 2008. At that time, Smarty Pig had some flaws:

- Long delays to withdraw funds (money was sent by check back then)

- There was a fee to withdraw funds

Now the Smarty Pig team has done their homework and settled those minor hassles: there are no longer delays to withdraw funds as electronic transfers into your checking account are available and there are no fees to withdraw money as well!

A VERY POWERFUL WAY TO SAVE MONEY

Let’s take the following example:

You want to save $200 per month for twelve months. Your total capital saved will then be $2,400. Along with your capital, you will gain some interest: an additional $22 (at 2.01%). So you are now at $2,422. BUT, we are not done yet. If you buy a gift card from a retail partner, you can get an additional bonus (the biggest one is at Macy’s with a mega booster of 12%). This means that you would get $290 free in your pocket for a total of $2,712! Now we are talking!

If you don’t want to buy stuff at Macy’s, you also have the following choices (and mentioned rebate):

Babies”R”us (2%)

Barnes and Nobles (5%)

Bed Bath & Beyond (4%)

GAP (5%)

iTunes (2%)

Jared (7%)

Kmart (4%)

Kohl’s (5%)

Overstock.com (7%)

Sandals (10%)

Sears (4%)

Toys”R”us (2%)

Travelocity Hotel Gift Card (10%)

Travelocity Vacation Gift Card (2 to 10%)

Hum… this sound like a perfect way to save money for Christmas and birthdays!

Click on the following link to see the complete list of Smarty Pig Partners (as some of them don’t offer rebates).

10 REASONS WHY YOU WANT TO OPEN A SMARTYPIG ACCOUNT:

There are plenty of reasons to open an account at SmartyPig, it is a smart way to save money:

#1 The interest rate is almost unbeatable.

#2 You have the possibility to get bonus percentage (now up to 12%) at retail partners.

#3 Automatic withdrawals from your bank account (minimum of $25 per month) is the best way to save money.

#4 Opening an account is FREE!

#5 There is a social network to encourage achieving your goal

#6 Your relatives can contribute to your goal

#7 You have plenty or retail partners to choose gift cards from (there are retailers for almost any projects from gifts to renovation and travelling)

#8 You can now split your savings among gift cards, electronic transfer back to your checking account or adding money to your SmartyPig MasterCard debit card.

#9 It’s FDIC Secure.

#10 I am giving 2 SmartyPig gift card of $50 each to start your goal as a giveaway!

How to enter the giveaway?

1- one entry if you sign up for my mailing list (it’s free)

2- one entry if you comment here and mention how much you save per month.

*Winners must have a SmartyPig account opened as money will be transferred directly into their account at SmartyPig.

I am giving you until December 18^th to register. Then, I’ll send $50 to 2 people in their SmartyPig accounts for Christmas in order to help support their goals.

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Some of us are going to be seeing a lot of traffic lights over the next week or so . . . Here are some articles that I like:

A great article from Kevin at Moolanomy where he challenges us to help ourselves, not the economy. He is right. Our government needs us to spend money. They want us to spend money, even if it is not in our best interests. I say that they need to balance their own books.

Being Frugal recommends using Smarty Pig to save for Christmas next year. That particular type of account has some interesting applications.

Peter at Bible Money Matters suggests 50 frugal gifts that you can give this Christmas. Outstanding.

Some of you are living in houses that are worth more than the Pontiac Silverdome! Unbelievable. Flexo at Consumerism Commentary has done the homework.

Ron at the Wisdom Journal suggests some ways to fight a health insurance claim denial. Good things to know. My money says that trying to get coverage from a private health insurer might be easier than dealing with a government bureaucrat . . . but we’ll see . . .

Have a great week and don’t just spend money, spend time with family.

Article by Stew

Photo by Mr. Freshtags

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As I had written a few weeks ago, a good friend of mine is getting married in early 2010. Being a financial planner, I always find it interesting to see how couples deal with money. It is often overlooked but it shouldn’t be. Studies have shown that financial corners and disputes rank at the top of the reasons for separation/divorce. It’s a lot more complex than most people think and it’s so easy to overlook when you are in love and visualizing the wedding, your honeymoon and all the other good stuff that is to come.

There are an infinite number of ways that family finances can be managed but the two keys are like every other aspect of a marriage; communication and being willing to compromise. This subject will be discussed over time but I consider it even more important to discuss before getting married.

Here are the main questions I think should be discussed. Let me know if you think of any others?

-Should we combine our financial assets/debts?

This is not an easy question. I think it’s a question that should be asked and reflected on. Obviously, as we grow in a relationship, finances tend to merge because future expenses are often for the family. As well, it becomes very time consuming to split every expense and of course you can be much more efficient by combining finances together. I think that as long as both agree on how money should be spent and saved, this is the easiest way to deal with personal finances. Mathematically, you will always be better off on the same financial team as your spouse.

-What kind of lifestyle do you aspire to?

This is a major question. If a husband is hoping to have a boat, a second house and lots of travelling, chances are that the lifestyle he is looking for could be different from that of his wife, especially if her desires are for family, leisure and fitness activities. Chances are that if they simply avoid discussing this, the discussion will come up over and over. My example is perhaps a bit extreme but the reality is that no one expects or hopes for the same life. Ok, perhaps everyone wishes they did not have to work much without having any financial worries. But the reality for almost everyone is different. What kind of house, retirement, etc. There is usually a compromise to be reached that will make it a lot easier to deal with everyday budget and spending decisions.

-Who will be responsible for financial “chores” (paying bills, checking statements, etc?

I don’t think it’s ever a good idea for one person to do everything and be the sole person looking after these matters. However, this is what happens in my case since I am a financial planner and my wife just hates finance as much as I enjoy it!

Personal finance is a subject where both parties need to get involved. That being said, there is usually one person who has more interest in taking care of everything and a compromise can generally be reached for that person to follow a budget, investments, reports, etc. But at the same time, I think it’s important for both parties to get information so this information be discussed. One of the reasons of course is that if one of the members gets very sick or has an accident, the other should be able to still function.

Even though I take care of all financial aspects at home, we still discuss how we manage our money in terms of expenses (I give full disclosure on debt management and investment ).
-What are your thoughts on charity?

As you are now a couple and have partially or fully merged assets, charity becomes something that you should agree on since it is no longer one member giving but rather both. There are many ways to do this and one of them is to have each person decide to which charity they want to donate (splitting the money in two), or deciding on causes that are important to both parties. But when such subjects are discussed, it makes it a lot easier for both parties to know where they stand.
-What is your opinion about debt?

The reality is that almost everyone must use debt at some point, either to buy a house, a car, household repairs, help a parent, etc. It is important to clarify how debt should be used, to what extent and for what reasons. Using debt in itself is not a bad thing but there is obviously some level of risk involved and for that reason, it is critical for the couple to both be comfortable with their level of debt.

These are some of the questions and I’m certain there are many more that you have discussed with your spouse. I think the main point is that family finances need to be discussed in order to avoid frustration, conflict and misunderstanding.

How do you deal with finances with your spouse?

Author: Mike

Image source: pedrosimoes 7

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Hey! Another Carnival at GLBL! Don’t worry; this is the last one until the Carnival of Personal Finance at the end of the year

Along with the Carnival, I’ve decided to share a few of my money successes. After sharing my money flaws last week, I also wanted to share some financial achievements from the past year. Handling personal finance is not always easy and it is important to acknowledge our failures yet it is even more important to acknowledge success!

But before we start, here are a few good readings from GLBL:

- 15 Uses for Coffee Filters

- Dave Ramsey’s Gazelle Budget

- Homemade car cleaning products

- Switch to zero percent balance transfer credit cards

#1 Editor’s Picks: My Biggest Money Achievement (creating an alternative source of income)

During these rough economic times, we are all seeking job security. Unfortunately, we have little to no control (besides doing your job right) over our employer’s decision. Therefore, the best way to improve your financial stability is by having an alternative source of income. Through my web company, I have been able to create an additional source of income; my plan B. While it doesn’t generate enough money to allow me to quit my day job, it would provide me sufficient cash flow if anything goes sour at work. This piece of mind is priceless. So here are the best articles of this carnival:

d. ninja presents Bring it on haterz posted at Punch Debt In The Face.

MoneyNing presents Take Some Time to Make More Money posted at Money Ning.

debt kid presents How To Stop Money From Ruling Your Life posted at Debt Kid.

J. Money presents My Wallet Gets Beer Goggles Too. posted at Budgets are Sexy.

#2 Money Management: Living in a Single Income Household

Back in May 2009, my wife quit her job to take care of our 2 children. While it is the best situation in terms of family lifestyle, it is far from being good news on the financial side. We have learned to manage our money differently in order to make sure that we have enough to pay all the bills. Here are the money management related articles:

Emily Simmons presents How to Make a Budget That Works posted at Be In Health Now.

Peak Personal Finance presents 5 Financial Rules for Women posted at Peak Personal Finance.

Madison presents Understanding Health Savings Accounts posted at My Dollar Plan.

Studenomist presents Finding The Perfect Debt Elimination Plan For YOU posted at Studenomics.

Chris Holdheide presents How The John Cummuta Transforming Debt Into Wealth System Works posted at StumbleForward.com.

Hank presents Five Steps To Get Out of Credit Card Debt Now posted at Own The Dollar.

Tyler presents Stop Feeling Guilty and Go Do Something Awesome posted at Frugally Green.

#3 Investing: Buying my First House Through Leverage

As I have mentioned before, I am a big fan of leveraging. While borrowing to invest is not for everyone and should not be advertised abroad, this is how I managed to buy my first house. I borrowed $20,000 from my line of credit back in 2003 and I bought my first house with my investment profit in 2006. Technically, I didn’t take a penny from my own pocket into my property. Here are the investing articles:

The Financial Blogger presents 10 Trading Lessons for Free! posted at The Financial Blogger.

Intelligent Speculator presents Will commodity ETF’s exist a year from now? posted at Intelligent Speculator.

Hank presents Use Insider Information The Legal Way To Pick Winning Stocks To Invest In posted at Own The Dollar.

Manshu presents S&P 500 ETF List posted at OneMint.

Jeff Rose presents Good to Know Rules and Limits for the Traditional IRA posted at Jeff Rose.

D4L presents 4 Stocks With Higher Dividends posted at Dividends Value.

Matt_SF presents Charles Schwab Might be the Best Choice for Passive Investors posted at Steadfast Finances.

#4 Frugality and Debt Management: Consolidating all my debts in a HELOC (Home Equity Line of Credit)

Frugality refers to saving money and spending diligently. One of the best ways to achieve both side of frugality is to manage your debt correctly. You can save money on interest and spend less in order to avoid maxing out your credit cards. A few years ago, I decided to put all my debts together using my home equity line of credit. While debt management has become much easier with only one account, I also pay less interest. Here are other ways to save money or to manage your debt:

Craig Ford presents 10 Tips For Saving Money While Raising Kids posted at Money Help For Christians.

Darwin presents Why Do People Pay More Money for the Top of the Line Model? Incremental Value Analysis posted at Darwin’s Finance.

Barry presents 7 Tips To Save Money On A Vacation posted at Associate Money.

J.D. Roth presents Creative Cleaning with Everyday Products posted at Get Rich Slowly.

freefrombroke presents Extended Home Buyer Tax Credit May Not Be Good For Existing Buyers posted at Free From Broke.

David presents How Much Can You Save with a 0% Balance Transfer for 12 Months posted at Credit Card Offers IQ.

MatthewPaulson presents Best Coupon Sources Online posted at Fine Tuned Finances.

Billeater presents Mortgage Options You Can Afford to Pay posted at Billeater.

Mr Credit Card presents Chase Sapphire Card Review posted at Ask Mr Credit Card.

Tom @ Canadian Finance Blog presents Top 15 Ways to Save Money on Heating Your House posted at Canadian Finance Blog.

Ray @ Financial Highway presents Frugal Thanksgiving Dinner Tips posted at Financial Highway.

PT presents Upromise Review: A Little Extra Savings for College posted at PT Money.

#5 Other: Making a Career Move

2 years ago, I decided to get my financial planner title and switch jobs to become a full time financial planner. The first year was rough and I didn’t manage to increase my pay check. In fact, I would have received a bigger bonus if I didn’t leave my previous job. However, this year has been fantastic and I am not only increasing my income but my bonus will compensate for what I had lost last year. You never know if your career moves are good or bad until you do them. I guess this time I made the right choice. Here are the other articles from the carnival:

Jeremy J. Ulmer presents Need Sales Coaching? Top 10 Questions You Should Ask Before Hiring a Sales Coach posted at Sales Coaching.

Miss M presents Financial Literacy Finally Gaining Attention posted at M is for Money.

Bucksome presents Three Electronics That Make Me Drool posted at Buck$ome Boomer’s Journey to Retirement.

Paul Williams presents Beneficiary Designations – Mistakes to Avoid posted at Provident Planning.

FMF presents How to Make Money as a Soccer Referee posted at Free Money Finance.

Author: Mike.

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There were so many questions from yesterday’s post on Homeschool Finance, that I decided to do a follow-up post today and explain a few things:

Mike asked: Have you calculated the option cost of having your spouse at home teaching your children instead of working full time or part time?

Good question. My wife stays home with the kids and actually makes money by watching other children in our home. Some of you will remember that Mrs. Stew almost worked outside the home this year, but we were going to get free tuition/preschool for our children as a benefit to her job. At the last minute we decided that she would stay home. I doubt whether Mrs. Stew could get a job that would justify the up front expense of work clothes, a second car, child care, etc. and still bring in money. Providing child care in our home has been great for our finances.

Given the ages of our children, I think that a stay at home wife is overall a cost savings. That might change as they move into junior high and high school.

Greg stated: The one thing you left out was the cost of home school curriculum. This can be very pricey. The savings on clothing (you still have to buy clothes), transportation (field trips, library visits), and food (you don’t need to buy lunch at school and you can use reusable containers) is negligible to the cost of the curriculum.

The truth is that our curriculum is free! Our state provides a free online curriculum and so far, my wife and I have been pleased with it . . . well, it is not free . . . might be more accurate to say that it is paid for by the good tax payers of our state. The online curriculum provides a schedule and accountability. Yes, we do have to buy clothes, but they definitely do not get the wear and tear that school brings. There are some transportation costs to field trips – but only once or twice a month – and the library is within walking distance. My intent was not to list all of the expenses due to homeschooling, but rather just a list of the ways that we save money.

Gina’s question was interesting: If you have “other” students, would you charge a nominal fee to cover the curriculum costs? Would other students require more licensing (such as w/a daycare)? What sort of creditentials are involved w/being a “homeschool” teacher?

I think they are called “homeschool co-ops”. I know that the homeschoolers in our old church used to use the church facility once a week to meet and bring in a teacher to handle specialized subjects that some parents found difficult. We are not currently involved in anything like that, however, Mrs. Stew often gets the kids together with other homeschool friends of ours for playdates. This might eventually turn into some sort of co-op. The definition of what constitutes homeschooling is defined by state law and is different in almost every state.

Evan asked: What about the lost socialization with other students around their age? Beyond siblings?

I think this concern is valid, but often over-stated. Our kids play with other children on a regular basis and we are faithful to church, so there is socialization there. As they get older, we hope to involve them in community and club sports as well. Furthermore, there are some peer influences from which we would like to shelter them – at least for a little while longer.

The bottom line is that while there was a financial component to our decision to homeschool, this was not the only factor. Many pros and cons were weighed. One factor that is not financial is the fact that my job allows me to participate in homeschooling. I teach thirty to forty percent of the material in order to give Mrs. Stew a break. If my job ever changes so that I can no longer bear part of the burden, our kids will probably go back to school.

Any more questions?

Article by Stew

Photo by lepiaf.geo

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