When was the last time you checked your credit report? You can get a free report every 12 months from each of the big three companies. Go to www.annualcreditreport.com to get your report. If you get one report at a time you can check your report three times a year for free.
Checking your credit report is one of those things everyone should do periodically, like checking the air in their tires (you check the air in your tires, right?).
Showing posts with label Financial housekeeping. Show all posts
Showing posts with label Financial housekeeping. Show all posts
Tuesday, February 17, 2009
Thursday, February 12, 2009
Whole life insurance? I was a sucker once... (Financial Housekeeping, Part II)
I have some embarrasing things to admit, but I was young and there are lessons in them.
When I was in my 20s, newly graduated from college and a brand new 2LT (second lieutenant) in the Army, part of the orientation to the military was a seminar on investing. Sounds great, right? The presenter just happened to work for an investment and life insurance. Everything they said made so much sense. Their motto was "Pay yourself first". Front load mutual funds just got all the annoying fees out of the way up front, clearing the way to fee-free future investments. Whole life insurance "builds cash value", etc. (Are you choking yet?) The fact that they were allowed in a military orientation gave the impression of an official endorsement. I bought it, hook, line, and sinker.
*hanging my head in shame at the memory*
Did that mutual fund do as well as (almost) promised? Heh, heh, of course not, especially after paying all those front load fees. I liquidated that a few years ago, right around the time that the company, USPA & IRA, had a class action suit filed against it. The life insurance was only $90/month and I didn't have contact information to get rid of it and I was lazy so I let it be, foolishly.
Now, finally, I am freeing myself from the last of that bad investment. Why do I need a bunch of life insurance anyway? I have no children to care for and a BF who has a good job and can support himself without me. My mother inherited a huge pile of money from her parents (a story for another time) and has a pension and lifetime medical insurance, and her house is paid for; she doesn't need money from me. I have life insurance through my employer, how much more do I really need? My "final expenses" would be a couple thousand bucks for the funeral and BF has enough available in the joint account for that. For my situation life insurance is hooey. As for the "building cash value", I can borrow against the policy about half of what I contributed so far in premiums, at a rate of 8%. Heck, if I wanted to pay that much interest I would charge it on a creditcard.
Long story short, I just "found" an extra $90 a month in my budget! Bit by bit, I am working to improve my financial picture. What to do with the money? $90/month would keep my vacation fund in good condition, maybe I should take the money I was saving for death and invest it in living.
When I was in my 20s, newly graduated from college and a brand new 2LT (second lieutenant) in the Army, part of the orientation to the military was a seminar on investing. Sounds great, right? The presenter just happened to work for an investment and life insurance. Everything they said made so much sense. Their motto was "Pay yourself first". Front load mutual funds just got all the annoying fees out of the way up front, clearing the way to fee-free future investments. Whole life insurance "builds cash value", etc. (Are you choking yet?) The fact that they were allowed in a military orientation gave the impression of an official endorsement. I bought it, hook, line, and sinker.
*hanging my head in shame at the memory*
Did that mutual fund do as well as (almost) promised? Heh, heh, of course not, especially after paying all those front load fees. I liquidated that a few years ago, right around the time that the company, USPA & IRA, had a class action suit filed against it. The life insurance was only $90/month and I didn't have contact information to get rid of it and I was lazy so I let it be, foolishly.
Now, finally, I am freeing myself from the last of that bad investment. Why do I need a bunch of life insurance anyway? I have no children to care for and a BF who has a good job and can support himself without me. My mother inherited a huge pile of money from her parents (a story for another time) and has a pension and lifetime medical insurance, and her house is paid for; she doesn't need money from me. I have life insurance through my employer, how much more do I really need? My "final expenses" would be a couple thousand bucks for the funeral and BF has enough available in the joint account for that. For my situation life insurance is hooey. As for the "building cash value", I can borrow against the policy about half of what I contributed so far in premiums, at a rate of 8%. Heck, if I wanted to pay that much interest I would charge it on a creditcard.
Long story short, I just "found" an extra $90 a month in my budget! Bit by bit, I am working to improve my financial picture. What to do with the money? $90/month would keep my vacation fund in good condition, maybe I should take the money I was saving for death and invest it in living.
Monday, February 9, 2009
Financial Housekeeping
I am a list-making person. Lists not only help me keep track of things I want to do, just making them helps me organize my thoughts and priorities.
Here is my to do list for this week:
1. Take my vacation and clothing cash stash and deposit it in the bank. (DONE)
2. Open ING savings for vacation and clothes funds. (DONE 2/11, only I didn't go with ING)
3. Send $1000 of my tax refund to my first mortgage principal. (DONE)
4. Monthly checkbook balancing. (DONE 2/9)
5. Change my W-2 withholding so I don't get such a huge refund next year. (DONE 2/10)
6. Increase my 403(b) contributions so I can max it out.
7. Start a tracking worksheet for credit card purchases.
Credit card purchases are the rabbit hole of my finances. I pay the balance off every month, but I am often surprised by how much it is. What am I buying, besides gas? How did it get to over $400? I really don't like the tedious process of looking at my spending that closely but if I want to find more money to save then I have to do this.
Here is my to do list for this week:
1. Take my vacation and clothing cash stash and deposit it in the bank. (DONE)
2. Open ING savings for vacation and clothes funds. (DONE 2/11, only I didn't go with ING)
3. Send $1000 of my tax refund to my first mortgage principal. (DONE)
4. Monthly checkbook balancing. (DONE 2/9)
5. Change my W-2 withholding so I don't get such a huge refund next year. (DONE 2/10)
6. Increase my 403(b) contributions so I can max it out.
7. Start a tracking worksheet for credit card purchases.
Credit card purchases are the rabbit hole of my finances. I pay the balance off every month, but I am often surprised by how much it is. What am I buying, besides gas? How did it get to over $400? I really don't like the tedious process of looking at my spending that closely but if I want to find more money to save then I have to do this.
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