Mint.com Makes Cents (and Dollars)

A few weeks ago I signed up for Mint.com. They have a great user interface and my credit union and credit card companies were among those already supported, so setup was a cinch.

It certainly is nice to see my finances in one place, although they currently don't support investment accounts. However, Quicken and MS Money have done this for quite awhile. The real selling point is that Mint makes recommendations on ways to save money based on your accounts. It wasn't long before Mint pointed out that I could earn several hundred more dollars this year if I changed my accounts around a bit. Not bad!

Most of the folks I know will probably freak out about inputting account numbers and passwords for the various accounts into one interface. This probably won't help a bit, but here is what Mint has to say about keeping your information safe:

http://www.mint.com/safe.html

Anyway, if you are a current user, let me about your experience.

A couple other similar sites exist. If you are interested in checking them out as well, here they are:

Wesabe
Geezeo

Another One Bites the Dust

The Orem, UT CompUSA is shutting its doors. Looks like compusa.com will live on but most, if not all, of the retail stores are shutting down. You might remember from my previous "Customer Blacklist" post that Comp held a place of honor on the list. Isn't it funny that horrible service and outrageous prices don't create a sustainable business? Good riddance to a bad business.

The Dream Basket Rules!

When I married my wife, my father-in-law counseled us to take a couple trip and a family trip every year. The trip didn't need to be expensive or elaborate, but it should be fun. The purpose was to build memories to last a lifetime. And after all, the family and couple that travels together stays together.

We have followed his counsel for the last 10 years and I can honestly say that this makes a huge difference in the dynamic of my marriage and family.

To do this right, however, one must provision a "dream basket". Just like funding retirement, it's essential that we fund our dreams. My dream basket is labeled as such in my ING Direct savings account. We put a percentage of our monthly income into the fund and watch it grow. Then, when it's time to travel somewhere, we pay cash for it from the dream basket.

Making the dream basket automatic is the key. The way I've set up our automatic savings plan is as follows:

- We save between 3-5% of our net income (aka take-home pay).
- Half goes in on the 2nd and half on the 16th (one day after pay day). This can be set up to happen automatically through ING.
- The interest earned in the account stays in the account, which helps the dream basket grow faster.

We also do all we can to make the dream basket stretch. My wife is awesome at finding deals on hotels, car rentals, you name it. We just returned from Disneyland and had a rental car for three and a half days. Total cost to us was $15.00 including taxes!

We also supplement the dream basket by using points/miles from our credit cards and frequent- flyer programs. So far we've used them on flights and hotel stays. This can bring down the total cost of a trip significantly.

Anyway, the trips are a great tradition and the dream basket is the best way to make them a reality.

May all of your dreams come true...

P.S. If you don't have an ING account and want one, let me know and I'll send you a referral email. You'll get a $25 bonus and I'll get $10 for the referral. I'll make sure that gets put right into my dream basket. :)

Blogging Again

That's right. It's time to starting sharing my wit and wisdom again. I've recently had the desire to start blogging again, so here's looking at you, kid. We'll see if I'm interrupted again by some sort of major medical emergency.

So tell your friends and family. Tell your co-workers. Add this blog to the list of must visit sites every day. This is the big time, baby.

Costco Membership + CapitalOne = 5.14%

It's been a long while since I've posted, but I had to break radio silence to share some good news. Costco members can take advantage of a great money market rate at CaptialOne. Currently the rate is 5.14% which is about the best I've found anywhere.

The other plus is they have a great web interface for accessing your account. The only negative I've seen is that it requires a minimum initial deposit of $5,000.

My initial deposit hasn't hit the account yet, but so far everything looks great. If all continues to go well, I plan on moving all of my security basket over to this account and then I'll set up an automatic savings plan to meet my security basket goals.

I also want to try setting up additional accounts like I've done at ING. I'm hoping that is just as easy. Time will tell...

Savings Rate Watch

HSBC - 4.65%
ING Direct - 4.15%
Capital One - 4.55%
EmigrantDirect - 4.65%

New Addition to the Blacklist

Dairy Queen. We visited the establishment after my son's kindergarten program this evening. The service was slow and the employees were very unfriendly. And the bathroom was a wreck. It smelled to high heaven and had graffiti everywhere. It was terrible. We've been forgiving of the Dairy Queen in the past, but she has now been dethroned.

My Favorite Mutual Fund Companies

1. American Funds
2. T. Rowe Price
3. Vanguard

Why? Low expenses. Good funds. Strong performance.

How I Saved $50 Today...It Doesn't Hurt to Ask

I feel like a powerful customer today. One of the bills for my recent surgery was a hefty $500 (choke, choke). Because I'm trying to avoid getting robbed by the medical system, I've been slow to pay my bills so I can make sure deductibles and co-pays have been applied correctly. This slowness caused me to incur a $7 late fee. When I called to pay my bill, I thought, why not ask the nice billing lady to waive the late fee? I did and she did. Is $7 really worth it?, you say. I say, it's still seven bucks.

Next bill that I had to call on was for Cingular wireless. I switched carriers back in February. Come to find out I had just barely started a new billing cycle when the switched took place and all cell phone companies will bill you for the entire cycle, even if you don't have service. (At least that's what the representative said.) Again, I thought, why not ask? I asked if he could waive the charges, then gave a long pause to let him answer. He said he couldn't waive everything, but he could pro-rate the charges. Instead of $49.14, I paid $5.33. A savings of $43.81.

Cha-ching. There's the fifty bucks.

When converted into time, $50 becomes pretty darn meaningful. Especially because that $50 represents take-home dollars. So my investment of literally three minutes, plus the courage to ask, paid huge dividends.

Now, it's important to note that I wasn't a jerk on the phone to the representatives I spoke with. I just asked in my normal voice and waited to see if anything could be done. Being a punk to the person whose help you are seeking doesn't pay off.

Anyway, try this next time you want to get rid of a late fee* or want a discount or whatever. There is nothing to lose and a lot to gain!

* I do recognize that it is also better to avoid late fees all together.

My Customer Blacklist

This post is not about customers of mine. It's about companies that generally won't find me as a customer. The list below has always been in my head, so this is the official public debut.

These are companies (or products) that have let me down time and time again. Every time I think it's time to give them another chance, I'm underwhelmed once again. The reasons range from terrible customer service to terrible products. If you find a company or product on here that you enjoy, please don't take offense. My experiences are just that...mine. I have no other reference point and these are simply my opinions.

Without further adieu, I present the list:

• Kmart
• Uhaul
• McDonalds
• Applebees
• CompUSA
• Ameritrade
• LotusNotes
• Zions Bank
• Sizzler
• Sears (well, just the guy that sold my mom a washer)
• AOL
• Gold's Gym
• State Farm claims department

Have some others that you think should be on my list? Post a comment. I'd love to hear about it.

Another Year Older, Another Year...Wiser?

It's been awhile since my last post. I'm convinced that my blogger's block is a result of my appendix being removed last month. Makes complete sense if you think about it. I was writing along just fine, my appendix had a desire to relocate, and whammo!...blogger's block.

Since the surgery, I've turned 31. A children's song includes the lyrics: "One year older and wiser too". I may not really be any wiser, but a birthday is like the new year. It's a great time to sit back and take stock of one's life. Or, if you're like me, you might sit back and take stock of one's stock (and mutual funds, bonds, etc.).

As I've reviewed our family portfolio, I've realized we've been much too conservative with some of our funds. We're missing out on significant gains without adding much risk. So the review, has been educational, to say the least.

Next step: find a good place to put the funds. I'm partial to American Funds, Vanguard, and T. Rowe Price because of the low fees. I'm not looking to invest money in any single stocks.

Stay tuned and I'll let you know what I find!

Here's to Your Health...

Just over a week ago I had emergency surgery to remove my appendix. It was my first surgery ever, so I was a little scared of what might happen. Okay, so I was A LOT scared.

Anyway, as I sat in triage at the hospital, my mind raced and one of the things I kept coming back to was how grateful I am for my health. Aside from the current situation, I haven't really had to spend much time in hospitals.

I'm also grateful that there are people in this world that are interested in things like nursing and surgery. Neither of these occupations interest me from a career standpoint, but there are many highly skilled, wonderfully kind folks out there that are very good at what they do in these areas.

Finally, I'm grateful for my family. I'm definitely not deserving of such a fabulous wife and two great kids. They are everything to me.

So, while this blog is mainly about money, it's essential to acknowledge (on a regular basis, not just before surgery) that the most important things in life are:

• Health
• People (friends, co-workers, doctors, nurses, garbage collectors, truck drivers, etc.)
• Family

There's no happiness in money or the things it can buy. Money is an enabler. It can reduce or eliminate some of life's worries. But it is a means, not an end.

EmigrantDirect = A Dud

EmigrantDirect.com is now paying 4.25% interest and so I just had to give it a try. Frankly, my experience has been less than stellar.

It took nearly two weeks for the entire account setup process to be completed. I honestly can't remember if ING took that long. If it did, my excellent experience with ING since that time has erased all memory of any problems or delays.

As mentioned in a previous post, ING set the bar pretty high as far as I am concerned. Maybe my expectations were unrealistic...nah, they were just fine.

I expected EmigrantDirect to not only pay a great interest rate for holding my money, but I expected an easy-to-use online account interface. Too bad for me. It's absolutely horrible. I don't expect super fancy design or lots of graphics, but I do want it to be intuitive and user-friendly. This interface doesn't cut the mustard...and if you can't cut the mustard, don't pick up the knife.

It's time for this bank to invest some marketing dollars into the account area of the web site to close the loop on its brand. A brand is a promise, and the only thing this bank's brand promises is that you will be disappointed.

Free Money from the Government?

The new year brings with it another new tax season. For some, this is annoying or even frightening. For others, it's a blessed event. What? Ah, of course, the tax refund. It's like getting free money from the government! At least that's what some folks think. I disagree.

I personally hate tax refunds. A tax refund means that the government has held my money and hasn't paid me anything for that privilege. I'd much rather have that money in an ING account earning some interest.

Don't get me wrong, I don't like to owe taxes either. My ideal world is where April 15th rolls around and the government and I agree that I've paid enough throughout the year, thank you very much.

I can't exactly have the ideal, so my goal is to get as close to it as I can. One of the ways to do this is to adjust withholdings on form W-4 at work.

I like to review my withholdings once a year and make any changes to account for any surplus or deficit in taxes collected. It's super easy to do. Just speak with your friendly neighborhood HR department.

Special note: This isn't for everyone. Some people that don't feel like they are disciplined savers would much rather have a refund in than have to come up with money for any tax deficit. If you know your weaknesses, this is probably a wise move.

Money is a Stewardship

I am not obsessed about money. This might sound a little strange coming from a guy who calls himself Cheapwad and blogs about personal finance. My wife might even disagree with me because I do expend some amount of effort worrying about our family finances. But the fact of the matter is that I care about money for one main reason: I believe money is a stewardship.

An obsession is all-consuming. It's a hunger that cannot be satisfied. My grey matter doesn't view money in that light. Rather, I think of money in terms of making the best use of what I've been given. Any money I receive becomes a responsibility. My greatest desire is to be wise in the spending and saving and investing and sharing of that responsibility. It doesn't matter if the amount is large or small, I feel the same sense of duty.

By viewing money in this way, I combat the temptation to ever think that money or financial security equates to happiness. One doesn't have to look very far to see celebrities, athletes, or even close friends and relatives that have plenty of cash, nice homes and cars, fine jewelry, etc. but are not happy. Those people face challenges just like everyone else. If I can avoid that temptation, then my primary pursuit in life will always be happiness. I won't be distracted and begin to pursue the almighty dollar and sacrifice everything else that is so much more important...especially family.

Would it be nice to have a lot of money? Sure. Would it be great to be financially independent? Of course. But, having a million dollars in the bank will not solve all my problems. It won't make me a better husband or father, a better son or brother. It won't make me kinder, gentler, or more thoughtful. Money (or the lack thereof) does not define who I am. My thoughts and actions are guided by my character, which is a much better indicator of success in this life. And it is my character that will help me be a wise steward.

It's Not What You Earn, It's What You Save

Is it true that it's what you save that matters? I believe so. I know several persons that make a lot of money, but are literally living paycheck to paycheck. On top of that they have no security basket or retirement basket to speak of.

I also know individuals that make less than $40K per year, yet are building quite a nest egg for themselves.

What's the difference? Debt has a lot to do with it. Where debt is involved, it is difficult to pay that down and build any sort of savings.

What else? Disciplined spending. Money wasted on eating out, travel, entertainment, and gift giving might be better tucked away in a money market account earning a little interest. I'm not saying that eating out every once in awhile isn't a fun thing to do, but it can be costly.

Suppose I go out for lunch every afternoon at work. If my average meal costs $7, I'm spending $35 a week on food. That's over $1800 a year on work lunches! Where I come from, that's a lot of money. And it gets better...

Let's say that I am a 25 year-old young professional. If I were to invest that $1820 from my first year on the job in something that returns 8% annually, I'd have over $36K when I retire. And that's just from the first year.

Now let's suppose I save that lunch money every day of my working life. How does over $471K sound to you?

Again, I don't think this means one should eat ham sandwiches from home every day, but there is something to be said for identifying the money leaks in your buckets and plugging some of the holes.

What's In My Wallet?

I'm a huge advocate of avoiding debt if at all possible. That doesn't mean that I'm anti-credit card. I just think it's important to pay off the entire balance every month. That being the case, it literally pays to find a card that will work to your advantage.

After a couple of weeks of research, I chose the Citi Diamond Preferred Rewards card.

Citi Diamond Preferred Rewards

Reasons I chose this card:
1. No annual fee
2. Citi has some great identity theft solutions
3. 5,000 free bonus points after your first purchase
4. 5 points for every $1 spent on purchases at supermarkets, drugstores, and gas stations
5. 1 point for every $1 spent on all other purchases
6. Trade points for merchandise, restaurants, travel, etc.

No annual fee is number one. With so many options, there's really no need to pay for the privilege of using a credit card. The ability to choose my own rewards was also a huge plus. Baby might need a new pair of shoes, but daddy might want a fancy, new digital camera or a home theater system!

I think it's important to reiterate that paying off your balance every month is one of the keys to financial security. If you aren't in a position to do that right now, then that is a worthy goal for 2006.

CNNMoney.com: Do it now

CNNMoney.com: Do it now

A great article on some areas for improvement in your financial life. One of my main goals for the early part of 2006 is #10 on this list: craft a long-term investing plan.

I have a decent handle on our family finances, but there is a lot of room for improvement, especially in the retirement basket area. I feel pretty good about the security basket.
The dream basket is totally invested for the short-term right now (1-24 month time frame). We use it mainly for family vacation funds. I'd like to set some mid-term and long-term goals in this area, but nothing major comes to mind. I thoroughly enjoy using these funds for making family memories.

Great Interest Rates on Savings Accounts

I've been a huge fan of ING Direct for several years. That's where I keep my emergency cash reserve (security basket). I also put our dream basket money there every month. I like the ability to set up multiple accounts and log in and see them all from a single interface. I also like the ability to add and remove automatic deposits at will. The ability to automate everything is a crucial component to our financial plan.

Though I'm a loyal ING fan, I've been tempted by some great rates at other banks. Here are some of the most recent rates I've seen:

ING Direct: 3.8%
EmigrantDirect.com: 4.0%
hsbcdirect.com: 4.25%

There are others, but these are the ones that caught my eye. A great rate is not enough. Great customer service and quality of the company both factor into the equation.

So, in the interest of earning more interest, I'm going to do a test and see how these companies stack up to ING. The bar is set pretty high. I'm interested to see how they fare.

Best Online Broker

Scottrade
This company wins the award in my book. I've used a company that was purchased by Ameritrade (can't remember the name), Ameritrade, and now Scottrade. I love these guys!

Top 5 Reasons I Love Scottrade
1. $7 commissions
2. No inactive account fees
3. No account maintenance fees
4. Only $500 required to open an account
5. Super friendly customer services folks

Ameritrade is not very friendly for the buy-and-hold investor. An inactive account fee is levied during each quarter in which you do not place a trade. That is the primary reason I left Ameritrade.

Apparently Ameritrade is planning to acquire TD Waterhouse. I don't know how that will shake out, but I'm sure the two companies combined will be a force to be reckoned with.

I have not used ETrade at all. I hear positive things about them, but Scottrade was a better fit for me right now.