Archives for 2011

How To Financially Prepare For A Disaster

There is no way to be completely prepared for a disaster. However, you can do your best to prepare yourself financially for an emergency that could cause you problems. If you haven't thought about it in the past, think about it now. Recent events, from large scale natural disasters (such as the earthquake in Japan) to man made problems (like last year's oil spill in the Gulf of Mexico) can impact your income, as well as prevent you from accessing your money. You need to be ready for these situations.

Build Up an Emergency Fund

An emergency fund is there for…emergencies. You should build one up so that you are prepared. Your emergency fund can help you pay for repairs not covered by insurance, and it can also help you offset other costs that might be related to a natural disaster. Another reason an emergency fund is important is that your income might be interrupted by a disaster. What happens if you can't get to work? Or if the disaster results in you being laid off altogether? If some sort of catastrophe knocked out the Internet in my locale, I'd experience a severe drop in income. An emergency fund can help you avoid complete financial disaster in such circumstances. Take some time to get your finances in order, and start an emergency fund.

Keep Emergency Cash at Home

As nice as an emergency fund is, you should realize that power outages and interruptions in the banking system can limit access to your money. An earthquake once made it impossible for me to get my money via ATM for two days. Realize, too, that a lack of power or downed phone lines can mean that using a credit card might be out. Have a stash of cash at home, kept in a safe place. Don't use it for every day expenses; instead, save it for when you really need it. Consider three days' worth of cash to complement your 72-hour kit.

Know Important Numbers, And Protect Your Financial Documents

In addition to making sure that you have access to liquid funds, you need to consider your financial documents, and your financial accounts. Keep a list of financial account numbers and contact information for insurance policies, retirement plans, bank accounts, loans and credit cards. This list should be kept someplace safe and secure, along with hard copies of documents, such as insurance policies, loan papers, car and home titles, passports and birth/marriage certificates. A waterproof fire safe is one of the best options for these papers. You can even keep some of your emergency cash stash in the safe. That way, your most important information is safe guarded.

What If You Have to Leave?

Your next concern should be whether or not you have to leave. Your emergency stash of cash should be easy to get to, so that you can take it with you. Account numbers and other information should also be taken with you, just in case you need to get in touch with representatives of different companies. Have a 72-hour kit prepared for each member of your family (or create a family kit), and keep it somewhere accessible. These are things you need to grab and take with you in addition to cash and financial account information. You also need identification (if you have a passport, bring it along) and insurance cards.

Make sure everything you need is in a central location so that you can just grab it and go.

Do you have any other tips for financially preparing for a disaster?

Congress Considering Scrapping Mortgage Aid Programs Due To Ineffectiveness

By Mr. Money 24 Comments

Over the past year or so I've written quite a bit about the Obama administration's Making Homes Affordable program, as well as other mortgage modification programs.

The programs were conceived of and put into place to help homeowners buy homes and prop up a floundering real estate market, in addition to helping homeowners already in their homes – to be able to stay there. The Home Affordable Modification Program aimed to help homeowners facing foreclosure to stay in their homes.

End Or Revamp The Mortgage Programs?

While the heart of those programs may have been in the right place, the management of the programs hasn't been as good as could have been hoped, and now some members of congress are calling for the programs to be either killed or completely revamped.

A handful of foreclosure prevention measures run by the Obama administration are so ineffectual, inefficient and complicated that, according to Republicans in the House of Representatives, the programs should be killed outright.

The House is scheduled to vote this week on getting rid of a refinance program for Federal Housing Administration loans and another program, scheduled to begin next month, that would help homeowners with delinquent payments.

The House Financial Services Committee is expected to vote Wednesday morning on ending two other measures: One of them is a massive effort that was designed to adjust up to 4 million mortgages but so far has tackled just half a million successfully. The other is the Neighborhood Stabilization Program, which steers money to communities hit hard by foreclosures.

Republicans point out that the programs thus far haven't reached the goals that were set out for them, and because they're so complicated and convoluted, the programs really haven't helped as many as they should have. Given recent economic developments, they also say we just can't afford the program anymore. Democrats don't think they should be killed, and some like Barney Frank suggest that the program should be funded by the big banks.

The Treasury Department and many Democrats argue, though, that the programs – though flawed – are fixable, and consumer advocates say the measures offer the last, best hope for many struggling families.

“It's all we have,” said Hazel Mack-Hilliard, the director of the mortgage foreclosure project with Legal Aid of North Carolina. “To have nothing and just say let the lenders do it, that's worse than nothing.”

The bills' chances of becoming law are slight, because Democrats control the Senate and the Obama administration supports the programs. But Republicans say their effort will shine a light on inefficient programs that they say aren't working and, in the worst cases, do more harm than good.

Mortgage Programs Hurt More Than Help?

Ending the ineffective programs would save the government a few billion dollars. While that is a worthwhile reason to end the program in my opinion, others are saying that another reason to end it is that it just isn't effective, and in the end what it mostly does is string people along and give them false hope. Too many homeowners have been strung along for months only to then be told they didn't qualify, or that they didn't send in the correct paperwork – even though they had.

Neil Barofsky, the special inspector general for the modification programs through the Troubled Asset Relief Program, told Congress last week that “HAMP has been beset by problems from the outset and, despite frequent retooling, continues to fall woefully short of meeting its original expectations.”

He blamed the Treasury Department for refusing to adopt “meaningful goals and benchmarks” for the program, but he stopped short of saying the Home Affordable Modification Program should be shuttered altogether.

The program was setup to fail from the start because it had no meaningful goals or benchmarks, and in many cases the banks had more incentive to foreclose, than to modify mortgages.

At this point it sounds like the bills to terminate the mortgage programs will have enough votes in the House, but the Senate and President Obama have signaled that they won't agree to end the mortgage programs. If the programs aren't ended, however, let's hope they are re-tooled and started off fresh – and that they're not just delaying the inevitable for some struggling homeowners.

What do you think? Have you had experience with HAMP or HARP programs? Were you helped by them, or did you get strung along? Did you end up getting denied a modification or refinance despite following the rules? Do you think the programs should be ended?

Five Myths Regarding Renter’s Insurance

By Contributor 2 Comments

We buy insurance policies to financially protect us should something go wrong. Most people would argue that insurance is a smart thing to have if for nothing else then the peace of mind it provides us. Because of this we generally do not flinch at buying adequate health, life or automobile insurance policies. However when it comes to renter’s insurance we often balk because we are unaware of the risks, and being ignorant to these risks don’t mean they are less likely to befall us.

Listed below are five of the most common myths that prevent people from seeing the need to purchase a renter’s insurance policy. Each one is followed by the facts that debunk each myth. Hopefully this list will educate you as to how important a renter’s insurance policy can be when it comes to protecting your property and finances.

My Landlord Is Insured So That Will Cover Me

Of course your landlord has an insurance policy but their policy protects their property, not yours. Generally, landlords will have their building insured and will carry a policy to protect them if they are found liable for injury or loss but that is where their policy stops. If someone is hurt on the property due to your fault, you are liable. If your stuff is stolen or damaged, your landlord’s insurance will not cover it.

My Roommate Is Insured So That Will Cover My Stuff Too

While there are policies that cover roommates, most likely the only things that are covered are the ones that are owned by the policy holder. Most renter’s insurance policies do not provide coverage for roommates or even domestic partners, only married couples.

Renter’s Insurance Is Too Expensive For Me To Buy

Insurance can be expensive. However renter’s insurance premiums don’t compare to other insurance policies when it comes to cost. Depending upon the policy you choose you can expect to spend between $150 t0 $350 per year for coverage and these premiums are paid monthly.

I Don’t Have Expensive Things So I Don’t Need Insurance

While you may not need to protect your property from loss, renter’s insurance is not only about your stuff. Sure, you may not have expensive things but if someone trips and falls over your inexpensive furniture, you are still liable. Renter’s insurance can help protect against liability claims as well as replace property.

I Live In A Safe Area

According to the US Department of Justice a person who rents is almost 80 percent more likely to be robbed than someone who owns their own home. Even gated communities suffer from criminal activity. And as far as natural disasters are concerned, no one can tell when and where one will strike.

Insurance is all about risk. Understanding the risks you face is all part of how you learn to protect yourself and your property. Should you feel that renter’s insurance is still not for you so be it, but at least you are making an educated decision, not one based on a myth.

Jeff Orloff writes on insurance topics for the Renters Insurance Blog (http://rentersinsurance.org) for the Consumer Media Network.

How To Find The Cheapest Gas In Your Area

By Mr. Money 9 Comments

If you've been watching the news lately, you know that gas prices have been on the rise, and that we could soon be seeing $4 (or even higher) per gallon gasoline. With unrest in the middle east, government collapse in Libya, and our government not allowing us to drill, who knows how high the gas prices could go before we're done.

So while you probably can't stop using gas and just stay at home every day, you can do what you can to minimize how much you're paying for your gas when you do fill up. To help in that goal, today I thought I'd throw out a few of my favorite gas prices websites that will help you to find the cheapest gas near where you live.

Find The Lowest Price On Gas Near You

While it's probably not a good idea to drive 20 miles out of your way to find gas for 5 cents cheaper, it probably IS a good idea to find the cheapest gas in your immediate area. Prices can often vary from 5-20 cents per gallon! To help in that aim here are some useful sites that I've found.

Gas Price Websites

GasBuddy.com: GasBuddy.com is probably my favorite gas prices tool. Gas prices are submitted by users in the local area along with the time/date they saw the price. I’ve found it to be pretty accurate, and they have a variety of other tools available as well like a gas price heat map, fuel logbook.
Automotive.com Gas Price Tool: To use the tool just type in your zip code and it will come back with the local gas prices in your area. Easy as pie! The site also has an assortment of gas prices widgets that you can place on your desktop, website, blog, facebook account or google homepage. Very cool!
MSN Autos Gas Prices: MSN Autos has a gas prices tool as well. Similar to the ones above, but not always as up to date.
Mapquest Gas Prices: Yet another gas price tool, this time from Mapquest.

There are sites to find your gas prices, but those are the ones I found most helpful. Have your own? Leave a comment below!

Gas Price Apps

Local Gas Prices: App that shows a list of the gas stations nearby, and allows you to sort the list according to price or location. Tap on one of the gas stations, and it opens Maps, showing you that station and your current location.
Cheap Gas: Gives you a list of stations, sorted in order of the lowest price. Tap on a station listing, and it opens Google Maps.
Gas Buddy: My favorite app, from the same folks as the website above, gives you a choice of a list or a map of gas stations. You can configure it to list the stations in order of how close they are to you, or by price, and you can sort the stations by fuel grade, including diesel. This app is also available for Android and Windows 7 smartphones.

Other Ways To Save On Gas

While you're trying to save on how much you pay for gas, here are a few other ways you can save.

Buy gas at a warehouse club: Another easy way for some people to save gas is by buying their gas at their local warehouse club (Sam’s Club, Costco, etc). Many of these membership shopping clubs have gas as well, usually 4-5 cents cheaper than everywhere else. Granted, you usually have to be a member to take advantage of their prices, but if you are, buy your gas there. When searching for cheap gas at the websites above, the cheapest gas was consistently at the Sam’s club right down the road from us.
Use a connected GPS with local gas prices: Many GPS systems that you can buy nowadays can connect and download local gas prices. TomTom Go 740 for example has the ability to connect automatically to access traffic feeds, updated fuel prices, Local Search powered by Google and weather – so you always know what's going on. Of course some of these connected GPS do have an extra subscription cost, so beware.
Use a gas rebate credit card to pay for gas: Depending upon the credit card you can save anywhere from 1-3% or more using your gas rebate credit card. Make sure to research to find the best card available.
Practice fuel economic driving: Do your best to drive in a way that conserves fuel, instead of wasting it. In other words, don't speed away from a green light, or speed up to stop at a red. Don't drive too fast on the highway, and do your best to drive at an even speed – without speeding up or slowing down too much. Also make sure to keep your tires properly inflated and remove any unnecessary weight from your vehicle.

What are some tips you’d like to share to save gas? Let us know in the comments!

Zions Bank Review: High Yield Savings, Checking, Money Market Accounts

By Mr. Money 1 Comment

I’m always trying to stay on top of what the best banks out there currently are, and where you can find the best bank rates currently in the market. I’ve written about quite a few banks here, including the one we currently have our cash stashed at, Ally Bank. We've been happy with Ally, but this past week I heard about another bank that has piqued my interest.

Up until a couple of months I had never heard of Zions Bank. At first I thought that maybe they were a newer bank trying to capitalize on the slow savings market, but then after researching them a bit I read that they were founded way back in 1873, so they've got a bit of history. Now that they're offering a good rate of interest, and a good slate of account offerings, I thought I'd write about them here.

Zions Bank Background

From Wikipedia:

Zions Bank (Zions First National Bank) is an American bank, and a subsidiary of Zions Bancorporation. According to the company, it is the oldest financial institution in Utah. The bank has 103 full-service branches and 150 ATMs, and over 2,700 employees in both Utah and Idaho

Zion’s Savings Bank and Trust Company was started by Brigham Young on July 10, 1873. This became Utah’s first chartered savings bank and trust company.

On April 22, 1960, The Church of Jesus Christ of Latter-day Saints decided to sell a majority of Zions First National Bank to Keystone Insurance and Investment Company. Zions First National Investment Company became the majority owner of the bank stock in Nevada on February 17, 1961. Still under the control of the Keystone group, the investment company became Zions Bancorporation in 1965. Zions Bancorporation went public for the first time in January 1966. There were some minority shareholders of Zions First National Bank, but in April 1972 all of the remaining shares were exchanged for Zions Bancorporation shares.

Is Zions Bank Safe? Is My Money Insured?

With Zions Bank your money will be safe and sound because the bank is FDIC insured. If you deposit your money and the bank goes under, you’ll be fine – as long as you don’t have more deposited than the FDIC insurance will cover. Currently that amount is $250,000 per depositor. I would never even consider a bank unless they were FDIC insured.

Zions Bank Account Offerings

Zions Bank has several different account types that you can get, but I’ll focus on three of them here – their savings, checking and money market accounts.

Zions Bank Savings Account

The minimum to open a savings account is $100, which is about standard for a lot of these accounts. One thing that should be noted is that you’ll need to maintain a minimum balance of $1,000 in order to receive the maximum interest rate. That rate is currently at 1.01% APY – easily among the top interest rates in the nation as of the day this post was written.

Zions Bank Checking Account

Zions bank has several checking account flavors – one for whatever your tastes are. They have options with great perks, ones with a good interest rate or no fees. Their three most popular checking account options include:

Gold Account Checking – While this account has a $10/month fee associated with it, it has a bunch of services included. Among them are unlimited check writing, free personalized checks and better rates on a variety of savings accounts. You even get a discount on most consumer loans if you are already a Gold Account Checking customer. There is a $100 minimum deposit
Free Checking – This is the standard free checking account with no monthly free, and a $100 minimum deposit.
Free Interest Checking – This account will earn some interest along with giving you free checking, although it may not have all of the options of the other account. Direct deposit is required and there is a $100 minimum deposit.

Zions Bank Money Market Account

This account type is going to be similar to the online savings account. Sometimes a money market account will give you a better rate, but this particular one currently has the same 1.01% rate. Among the provisions of this account type is a $3 fee for withdrawals at a teller window, and that you can make up to six transfers within a 30-day period. There is an initial minimum deposit of $2,500.

Zions Bank Account Opening Procedure

Opening an account with Zions bank is a 5 step process that you'll be done with in no time. First you select the account type that you want along with if you’ll have a joint account holder. Then you enter your personal information including full name, date of birth and social security number. Next you choose account options and setup a linked account to fund your savings. After entering some final details you’ll receive confirmation of how to use your new account once it is approved.

I’m told that your application for an account will be processed within two days and you’ll then be able to proceed and login online. No problem, and it sounds pretty comparable to opening an account with just about any other online bank.

Open your account with Zions Bank. Click here for details!

Zions Bank Mobile Banking

Zions Bank mobile banking service allows you to bank anytime, anywhere from your smartphone or mobile device. You can securely access your checking, savings or money market accounts to:

View account balances
Search account activity
Transfer funds

There are apps for Iphone, Ipod Touch, in addition to a ton of other smartphones.

Conclusion

At the time that I wrote this, Zions Bank has some of the highest interest rates in the country and all of their accounts are FDIC insured. Add to that their other solid account options, mobile banking, no fees or minimums, good security and solid history, you’ve got a bank you can count on.

If you’re looking for a good high yield savings account where you can put your money, I think Zions Bank should be near the top of your list. To check out the details of their accounts, click on the links below.

Zions Bank Savings
Zions Bank Checking
Zions Bank Money Market Account

Do you have any experience with Zions Bank? Are you using them, and how do you like them? What are the pros and cons of their accounts? Leave us a note in the comments!

Do You Know What’s Important? Spending And Priorities

By Miranda Marquit 2 Comments

One of the most challenging aspects of personal finance is identifying what is important — and then keeping your spending in line with what you value. Because personal finances are, well, personal, each person has their own ideas of what is most important. They key is to decide what is important to you and then create a spending plan that reflects your priorities.

What's Important to You? Identifying Your Values

Different people value different things. Before you can create a financial plan that reflects your personal values, you need to reflect on what you value. If you value more time with your family, you might choose a career path that allows you to be at home more, or you might move closer to your work so that time isn't spent on the commute. If helping others is important to you, chances are that you donate money to charitable causes or volunteer your time. Those who enjoy travel might spend money on vacations or frequent mini-trips. Others prefer to stay home, and spend money on making their homes as comfortable as possible.

Deciding what is most important to you is not a matter of “right” or “wrong”. It's more of an issue of what you prefer. Write down the things that are most important to you, and then rank them. Be quite honest. If saving up for a family vacation is more important than giving money to the food bank, rank your list in such a manner. I don't care if I leave a pile of cash for my son to spend after I'm gone, so my financial priorities focus on a modest and adequate retirement fund, with a bigger budget for fun now (including family fun).

Bringing Your Spending in Line with Your Priorities

My husband and I have always believed that giving to our church is a must, so our spending has always including tithing. However, not all of our spending has always been in line with our priorities. We enjoy eating out and trying new foods. For a while, though, we had a premium cable package — even though we don't watch that much TV. We realized that by scaling back the cable package, we could eat out more. We barely miss the premium cable channels. Of course, the value my husband places on ESPN, NFL Network and MLB Extra Innings is the reason that we still have cable at all.

Look over your spending, and see if it matches with your priorities. If you have listed early retirement as a priority, it doesn't make much sense to spend money on a new car. Instead, put more money toward your retirement fund, and buy a less expensive used car. If your biggest priority is paying down debt, look at your spending. Are you buying lunch every day or getting the latest movie when it comes to DVD? This doesn't jive with your debt pay down priorities. Be honest about your spending, and how it matches up with what you actually want out of life. Then see what adjustments can be made so that your spending matches your values.

Does your spending match your values? What things could you cut to better meet your goals and priorities?

Main Menu