What Kind of Insurance are You Lacking?

Spending money on something I don’t use is a huge pet peeve of mine. Insurance falls into that category, but I know it’s a necessary evil. This is something many people often neglect because they don’t think they can afford it. Or, they only purchase the bare minimum to comply with state laws or loan agreements. This is a mistake.

The sometimes tough reality to swallow is that you may pay on your insurance for years and never have to file a claim. However, it only takes one situation or tragedy to recoup everything you’ve been paying for years.

Renters insurance

One person falling asleep with a lit cigarette can destroy an entire apartment complex. If you live in an apartment or your rent a house, get yourself some type of renters insurance. If your apartment gets destroyed because of someone else’s negligence, you’re left with nothing – no clothes, no furniture, no food, no appliances, etc. Renters insurance is affordable and gives you the money to replace these items so you can start putting your life back together.

Auto Insurance

State law requires everyone to have auto insurance, but do you have enough? There’s coverage for bodily injury and property damage you cause to others and different coverage when someone else causes to same to you. There’s collision protection and coverage for expenses you incur by a driver who doesn’t have enough insurance to pay you back. And what if you need a rental car while your car is being fixed? All of these are separate line items in an insurance policy. You can pick and choose what you want to pay for, but don’t cut yourself short. If you lose a vehicle next week and don’t have the money to replace it, you need more insurance.

Health

Last year, my son ended up in Children’s Hospital for five days. It happened very suddenly for an illness that can be treated but not prevented. The hospital bill came to $41,000. We were only responsible for $500. If your company’s health insurance isn’t very good, consider supplemental health insurance. Google supplemental health insurance to find providers.

Homeowners insurance

If you have a mortgage, your loan company requires this. Be sure your policy covers your home’s replacement value and not the value you paid for your home.

Life insurance

If your spouse dies, how will you provide for family financially or even pay funeral expenses? Term life insurance is very affordable and is particularly important if you are a stay-at-home mom with no income. The loss of a spouse is devastating enough without worrying about how you’ll put food on the table or keep a roof over your head.

So many people are under insured because they don’t understand how one incident can completely change their lives. Find an insurance agent you trust and protect your family appropriately.

 

How much money is your time worth?

If you’re on a budget, saving money should be one of your top priorities. There are times, however, when the amount you save doesn’t justify the amount of time it took to get those savings.

This week, I paid a cleaning crew $150 to thoroughly clean my home – including washing the blinds and cleaning the ceiling fans. I had them do things I’ve been meaning to do for months but never got around to, and it was well worth every penny.

Some people may think that’s expensive, but let’s consider what I gained. It took two people about four hours to do everything I needed done. Had I done it myself, it would have taken me at least eight hours. That doesn’t even factor in the interruptions like phone calls, kids, e-mails, etc. that my cleaning crew didn’t have to deal with. When you divide 150 by eight hours, it cost me less than $20 an hour to save myself eight hours of time and stress.

Everyone’s time is worth something, and that should factor in to our purchasing decisions. For example, I am not shopping for school supplies this year. Instead, I gave in and purchased the school supply kit from the PTA at my son’s school. From a strictly financial standpoint, it is cheaper to purchase the school supplies at my local store, but only by about $10. Now let’s add the factor of time.

It takes hours to shop for school supplies – sometimes days. I have never had the luxury of finding everything we need at one store. Add time for travel between stores and the money I’m spending on gas. There’s also the hundreds of other people shopping for the same things I need. It is really hard to find glue sticks when you have to climb over 10 other people to get them. The 10 extra dollars I spent bought me time and peace of mind. Now, while everyone else is fighting over the last three-ring binder in the store, I will be enjoying at least one more stress-free day of summer with my son.

We all get 24 hours to spend every day.  Don’t spend it on on savings that don’t add up.

 

Don’t Fall for This E-mail Scam

There’s a relatively new e-mail scam going around that you should be aware of. Unlike others that appear to come from strangers, these e-mails appear to come from people you know who have some type of emergency situation. This is the e-mail I received the other day:

“Sorry for not inform you about our trip,I'm writing this with tears in my eye,Todd and I came down here to London,United Kingdom for a short vacation unfortunately we were mugged at the park of the hotel were we stayed, all our cash,credit card and Cell Phone were stolen off us at gun point but luckily for us we still have our passports with us.Todd was beaten up by the mugged because he was trying to project us,he his current receiving treatment at the hospital.

We've been to the embassy and the police over here are not helping issues at all and our flight leaves soon but we're having problems settling the hotel bills, and the hotel manager won't let us leave until we settle
the bills.

I'm freaked out at the moment.”

It was very clear to me that this was not an authentic e-mail, because it came from the owners of the camp my son attended last summer. I have not seen them since then. These were some other red flags:

 

• This e-mail has a lot of grammar and punctuation mistakes. I don’t know this person well, but I know her well enough to know she wouldn’t send such a sloppy e-mail.
• The e-mail says their flight leaves soon. About two sentences above that, it says her husband is in the hospital. Which one is it?
• If this person was truly in trouble, she would have placed a collect call to a close friend or family member who could wire her some money.

Interestingly enough, this particular e-mail does not give instructions for sending money, but many do. So, what do you do if this type of e-mail comes from someone you know well?

 

• Start by calling them, even if the e-mail says their cell phone was stolen. If they answer the phone, you know they didn’t send the e-mail.
• Do not send or wire money to a hotel or any other location unless you have spoken to this person first.
• Forward the e-mail to the person who supposedly sent it so they know their e-mail has been hacked.
• You can also check snopes.com, which keeps up with all kinds of e-mails scams.

Don’t let crooks get the best of you. Use common sense and follow-up with people before sending money or giving out your personal information.

 

Be Sensible about Credit Card Reward Points

About three years ago, my family took a wonderful trip to Disney World in Florida for my son’s fifth birthday. I had a significant number of reward points about to expire on a debit card I had with a financial institution where I used to work. That was how I chose to use them. What ended up being a $2,500 trip cost my family about $500. The other $2,000 was paid for by my reward points. At that point in our lives, there’s no way we could have taken that trip without those points.

There aren’t many debit card programs out there which offer this level of reward. Most are credit card programs designed to get you to use your credit card more frequently. That’s great if it works in your favor, but you really need to read the fine print before signing on the dotted line. Here are some questions you should ask before applying for a reward credit card.

1. Is There an annual fee and how much is it?
If you are paying for your rewards, it’s not really a reward, is it? If the fee is small, say $25, be sure you are getting more than that amount back in rewards.

2. What is the card’s interest rate?
Many reward programs charge a higher interest rate to help them pay for your supposed rewards. If you pay your balance in full each month, it’s doesn’t matter how much interest they charge, because you won’t be paying interest. Just be aware of how much you are paying in interest and how that compares to the value of the rewards available.

3. What happens if you miss a payment or make a late payment?
Many programs take your points away if you’re even one minute late with your payment. Some will offer you the chance to buy them back, but again, is that really a reward if you’re buying it with your own money?

4. Do reward points expire and how long do you have to use them?
It’s pretty common for rewards to have an expiration date. Be sure you have enough time to rack up the points for the reward you want and actually use them before they will expire.

5. How do you earn rewards?
On my debit card, I earned one point for every dollar spent on a retail purchase. Some credit card programs work that way, and some work completely differently. Be sure the things you buy regularly are covered by the rewards program so you can maximize the rewards you earn.

Whether it’s cash back, travel points, gift cards or merchandise that you want, you will find good credit card reward programs and questionable ones. Know the rules and conditions before you apply and choose the program that will do the best job of earning you the rewards you really want.

Avoiding Airline “Extras” That Could Kill Your Budget

I fly commercial airlines once or twice a year. This year, I flew round trip in January and again in July with the same airline. I’m amazed at how much their charges have changed between trips. I’m also amazed that we as consumers continue to put up with what I like to refer to as airway robbery. If you’re traveling on a budget (and who isn’t in today’s economy), airline travel can cost you hundreds more than you expected with on the “extras” that used to be free. Here’s how you can avoid those expenses with a little bit of planning.

Tip #1: Check Your Baggage at the Curb

Most airlines (Southwest may be the only one that doesn’t) charge at least $25 per checked piece of luggage. For a family of four, that’s an extra $100 each way or $200 round trip. Now, the charge is even more if your suitcase exceeds a weight limit. Continental Airlines wanted to charge me an extra $50 for a bag  that was actually lighter on the way home than it was on the way there (when nobody even weighed my bag). When you check your bag inside the airport, it automatically goes on the scale. When you check it at the curb, the sky cap decides whether to weigh it. There’s no guarantee they’ll let it go, but they still enjoy cash tips. If they see possible tip money in your hand, you’re probably safe.

Tip #2: Carry Your Luggage on the Plane or Check it at the Gate

I was amazed at how many people rushed to check their bags for free when the flight attendant at the gate announced the flight was full and they would gladly check carry-on items for free. I don’t think half those people ever intended to carry on their luggage. They just didn’t want to pay to check it. Even if you have no intention of carrying on your luggage, start out that way. More likely than not, you’ll have a chance to check it at the gate for free.

Tip #3: Bring Your Own Food

If you’re taking a long trip, pack snacks or a sandwich from home. A sandwich at DFW International costs about $8, and that doesn’t include chips. Airlines sell snack boxes for even more money and less substance. Just don’t pack drinks. Even water will be confiscated by security.

Tip #4: Bring Your Own Entertainment

Continental has Direct TV, but it costs $8 a person on flights over two hours - $32 for a family of four. Ear buds are free, though. Plug them into your laptop PC and carry a movie with you. Or, bring your MP3 player and a book.

If we paid all of these extras, my family would have been out an extra $300 round trip. I didn’t even pay that much per ticket. It takes a little extra planning, but saving hundreds of dollars is worth it.

 

Five Tips to Save on Gas This Summer

It’s times like these that I’m glad I work from home. My husband travels 85 miles back and forth to work each day and spends about $80 a week on gas. I can’t imagine what I might have to give up from my budget if we both regularly spent that much on gas. I hardly go anywhere, and I’m still conservative with my gas usage. Here are some ways you can be, too.

1. 1. Condense Your Trips. Plan your errands around already scheduled outings, meetings or appointments. If you have a doctor appointment on Tuesday or your child has baseball practice every Thursday evening, handle all of your errands in those part of town at those times only. I don’t live near the credit union. Therefore, I handle all of my credit union business on Wednesdays when my son has gymnastics across the street from the branch.
2. Shop at stores offering fuel discounts. Tom Thumb, Kroger and Wal-Mart all offer fuel discounts. Others may, as well. The offers at Tom Thumb and Kroger change depending on the promotion or how much you spend. Wal-Mart offers a standard fuel discount when you pay with a Wal-Mart gift card.
3. Change your schedule so you’re not driving during rush hour. Obviously this option isn’t for everyone, but if you have a job that will let you come in and leave either an hour earlier or an hour later to avoid rush hour traffic, take advantage of that flexibility. You’ll spend a lot less time in the car which means a lot less money on gas. If you can work at home one or more days a week, that’s even better.
4. Carpool to work or school. Most people are spending $70 to $100 to fill their tanks. Imagine how much money you could save if you drove to work or school every other week instead of every week. If you have a classmate or colleague who lives close by, consider sharing your ride with them. You’ll save fuel and reduce the wear and tear on your car.
5. Use public transportation. This is not always the cheaper option, but it’s worth looking into. Many companies provide free monthly DART passes to their employees for commuting back and forth to work either by train, light rail or both. It often takes more time to get back and forth to work on public transportation, but that’s time you have to read, catch up on phone calls, listen to music, etc., because you’re not the one driving. It may be worth it if you’re spending hundreds of extra dollars a month on gas.

What are some tips you have for saving on fuel? Leave a comment and help us continue the discussion.

Celebrate America’s Birthday With Fireworks on July 4th

In the last blog post, we gave you a schedule of fireworks for Saturday and Sunday. These listed are here will all take place Monday, July 4^th. See our previous blog post for events scheduled on July 2^nd and 3^rd.



Family Fourth Fireworks Show – North Richland Hills

Monday, July 4th
9:30 p.m.

The 20-minute show will patriotic pyrotechnics and music simulcast live KDKR Radio 91.3 FM

28^th Annual Fireworks Extravaganza on Lake Grapevine

July 4
9:30 p.m.
Grapevine Lake

Find your spot and stake a claim near Lake Grapevine. The fireworks spectacular can be viewed from any lakeside location, as well as several other spots throughout Grapevine.

City of Bedford 4^th Big Top 4^th Fest

July 4th
12 noon to 11 p.m.
Bedford Boys Ranch
2801 Forest Ridge Road

Activities include a full day of family fun: free concert, InflataFUN Zone, festival-style culinary delights and a fireworks extravaganza when the sun goes down.

2010 Flower Mound Independence Day Celebration

Fireworks Show is July 4th at 7 p.m.
Bakersfield Park
1201 Duncan Lane 

There will be a parade in the morning, Splashtacular in the afternoon and fireworks show at night. All three events will take place at different venues.

Fireworks Celebration – Lancaster/Desoto

July 4th
DeSoto Meadow Creek Park
1400 Uhl Road, DeSoto

Bring your lawn chairs and picnic baskets. The entertainment starts at 6 p.m. Fireworks at dusk.

McKinney Red, White & Boom

July 4^th
Historic Downtown McKinney

Experience a full day of hometown fun with lots of activities for the entire family.
Hometown Parade  — 10 a.m.
Car Show – 1 p.m. to 5 p.m.
Family activities and food — 7:00 p.m. - 9:30 p.m.
Live music on Center Stage — 8 p.m. - 9:45 p.m.
Fireworks — 9:45 p.m.

Red, White & Lewisville

July 4
9:30pm

The fireworks show will start shortly after dark – roughly 9:30 p.m.  The best viewing opportunities for the fireworks show will be on the south side of Vista Ridge Mall and along the 121 Bypass.  For more information, call 972.219.3401.

Fair Park Fourth

July 4
4:30 p.m. – 10:00 p.m.

The city of Dallas’ official Independence Day celebration will feature spectacular Cotton Bowl fireworks, a Dallas Wind Symphony patriotic concert, free visits to participating museums and more. Guests are encouraged to view the fireworks from inside the Cotton Bowl (enter at Gate D)