Free Money Finance

The Fuel to Feed the Fire

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why. This week we have a guest post from Jay Peroni.

You may think, I cannot succeed financially; there are too many obstacles. You may not be able to succeed on your own, but with God by your side, anything is possible. He can make things happen that seem impossible. He can open doors that you never thought could be opened. Do you have faith that the Creator of life can supernaturally turn your financial life around? He can make a way for you even when the odds are stacked against you and there appears to be no way. Don’t see God as a small-sized God but rather a God who can help you accomplish anything.
 
Do you know people who are always negative? Even if something good happens to them, they still find something to complain about. You know the type: poor me, nothing good ever happens to me, this is just my luck, etc. It is hard to be blessed when you cannot recognize a blessing when it comes. Turn your negative thoughts into positive responses. Things can always be worse. With God by your side, you can get through whatever you face.
 
Ron was at rock bottom, in his late forties and about to lose everything: his family, his business, and his millions. The 1980s real-estate market downturn left Ron with highly leveraged real estate and wiped out his net worth in an instant. A "paper millionaire" no longer, he now owed more than his properties were worth. To top it off, he was three months behind on his personal residence mortgage payments and about to lose that as well. Here Ron was, bankrupt, a failing marriage, and considering ending his life. It was painful for him to wake up each day. This went on for months, then years. He hung in there, and his family stuck around despite his behavior.
 
Finally, a friend leveled with Ron. "I know you have been down in the dumps and keep focusing on the life you lost, but think about the living you still have left to do. God loves you and can still use you for His good. Focus on the good in your life and forget the bad." His friend then challenged him, "Ron, don’t you think God wants you to do more than you are doing? Don’t you think He has better things in store for you? You need to stop being so negative!"
Ron took the advice to heart and began waking each day with a new mind-set. He concentrated on the good things in his life and worked hard to turn things around. He leaned on God and fought his way out of depression into a life full of hope, promise, and a brighter future. He concentrated on restoring his broken relationships, building back his finances, and honoring God with his attitude.
 
When Ron turned to God, he found joy, a fresh vision, and a new sense of purpose. Life is a precious gift—every second, each breath, and the start of every new day. You may never get another opportunity to do the things that matter most. You may be so busy that life can pass you by. When you realize what’s important, and create a plan to make it happen, you will reap the greatest rewards. Having a plan is important, but you also need to have a personal connection—something that will keep you motivated. There needs to be fuel to light a fire under you.
 
Without knowing what is truly important to you, goals have little meaning. Like the dieter who says, "Yeah, I’d like to lose the love handles," as he eats two more doughnuts, chugs two beers, and watches another episode of Jerry Springer. His motivation is at zero. Now add some meaning to your goals and it’s a different ball game all together. Take, for example, a woman who has a burning desire to lose her post-pregnancy pounds and fit back into her pre-pregnancy wardrobe. She wakes at 6:00 a.m. every morning, does sixty minutes of cardio, and has been keeping track of her calories. Who do you think is more likely to stick with a diet: the Doughnut Dude or the Motivated Mama?

All You Need To Make Ends Meet: Just a Little More

Recently a reader left this comment to my post titled You Only Need $40,000 a Year to Be Happy:

We make $110,000 as a couple combined. I find this is just "getting by" and we have little debt and no children. I think at least $150,000 should be made by a couple to live comfortably - depending on where you live of course!

I'm sure some of you are thinking what I was: Really? $110k is "just getting by"?

This comment reminded me of a story I heard long ago. It goes something like this:

A financial counselor had an appointment with a couple at 9 am one day. They made $30,000 a year and told him all would be fine if they "just made an extra $100 each month."

At 10 am, another couple came in. They made $50,000 and were convinced that their finances would be great if they "just made an extra $200 each month."

At 11:30 am he met with a couple that made $85,000 per year. Their only problem was that they "just needed to make an extra $500 each month" to be on solid financial ground.

After lunch, he met with a couple that made $150,000 per year. They needed his advice on how to make an extra $1,000 per month -- then their finances would be fine.

We've been over and over this point before -- you have to control your spending and spend less than you earn no matter what you make. Otherwise, you're going backwards financially.

Most people think that just a little more income will solve all of their money problems. But they are mistaken. Why? Because they have no discipline and will spend any surplus (and more!) they get. They fall victim to the "just a little more" fallacy and, as a result, most never get their finances completely back on track.

Free Book Winners Named

Just wanted to let you know that I named the winner of the free book giveaway announced Monday. Click on the link and scroll to the bottom to see if you've won.

Eight Reasons to Skip Black Friday "Sales"

Yahoo lists eight reasons to skip Black Friday "sales" as follows:

• You don't need any of it
• You can use the time better
• You won't get what you went for
• The Black Friday experts already have won the game
• You'll buy things you never intended to buy
• You'll forget to calculate the true cost
• That price might not be that great
• You can do it from home

You can read the post for more details if you like, but I thought posting this today was an apt way to spend the day after Thanksgiving. Those of us who aren't shopping today may actually be doing the "right" thing. ;-)

FYI -- this is probably my last post of the day. I'm doing my annual "clean your office" day today and I have a LOT to do! ;-)

Star Money Articles and Carnivals for the Week of Nov 24

Here are some recent interesting posts from around the web as well as a list of the carnivals Free Money Finance was in this week and my posts that were included:

• The Simple Dollar has some GREAT thoughts on financial advice.

• Five Cent Nickel asks about checking accounts.

• BripBlap wonders if you need a bailout.

• My Dollar Plan warns about administrative errors.

• Money Smart Life compares Black Friday and Cyber Monday.

• The Digerati Life asks when it's the right time to start a business.

• The Sun’s Financial Diary discusses the FDIC problem bank list.

• Lazy Man and Money saves money and the environment.

• Crackerjack Greenback asks if you can trust your financial advisor.

• Think Your Way to Wealth likes delayed gratification.

• High Fashion Girl has a guide to personal finance.

• Free by 50 asks how much you should spend on an engagement ring.

• Dividends 4 Life tells how to manage your portfolio in a down market.

• Carnival of Money Stories - Memo to Self: Yes, I Really HATE Sears!

• Carnival of Personal Finance - Do you tip for takeout?

Happy Thanksgiving

Just want to wish you and your family a blessed and very happy Thanksgiving. May we all take a break from talking about money and focus on the things that really make us thankful. Here's my list -- still the same after two years (except maybe the KFC part.) ;-)

The site will have a couple (at most) posts tomorrow (at least that's how I'm planning it) and one each day this weekend. After that, we'll be back to full speed ahead.

Have a great, relaxing, joyful, thankful day!

Dirty Jobs that Pay Well

Yahoo has a list of dirty jobs that pay well including the following:

• Veterinarian -- Median annual salary*: $73,621
• Waste Management Engineer -- Median annual salary: $67,249
• Trauma Surgeon -- Median annual salary: $273,160
• Coroner -- Median annual salary: $52,072
• Certified Nurse Midwife -- Median annual salary: $81,015
• Podiatrist -- Median annual salary: $118,665
• Oil Drill Worker -- Median annual salary: $55,806
• Gastroenterologist -- Median annual salary: $239,622

BTW, you don't get these salaries overnight. Here's what the "*" above links to:

*Median annual salary numbers are for people with 10-19 years of work experience in the specified field.

Holy cow, with 10-19 years of work experience, you can make these salaries (or even more) in a lot of different fields. In other words, you don't have to go "dirty" if you don't want to.

That said, here are some thoughts I have on the list:

1. I'm surprised that veterinarians don't make more. I would have put them in the "over $100k" group easily.

2. Medical personnel make good coin, huh? Yeah, but are the hours, frustrations, and "mess" worth it? Not for me. Maybe being a podiatrist would be ok.

3. 10-19 years of experience and coroners and oil drill workers are still making in the $50's. Yikes! Sounds like those jobs don't "pay well" at all.

How Much Will You Spend on Holiday Gifts This Season?

I found this fact in the December issue of Money magazine:

People will spend $832 on holiday gifts this year, just 1.9% more than last year says the National Retail Federation.

We used to spend almost the same amount every year -- somewhere between $700 and $800. But then we got together with our family and all agreed to limit the consumerism on each other and modify it a bit for the kids (they still get way too much stuff.) In addition, we went online with our annual Christmas card/letter -- I created a website with picture updates and we email everyone a note/link to the site. So now we spend about $400 each year on Christmas gifts and another $100 or so on tips for our mailman, babysitter, etc.

How about you? How much are you planning to spend this holiday season?

Protecting Your Identity This Holiday Season

Here's a guest post from IdentityTruth.

With Black Friday and Cyber Monday fast approaching, consumers are entering into the most active spending period of the year. Reinforced by the soft economy, this is "high season" for identity theft with identity thieves seeking to take advantage of shoppers. Identity theft generally rises during the holidays because thieves assume that consumers aren't paying attention to their credit card purchases, debit card purchases, receipts etc. as closely.

IdentityTruth, the leading provider of a new breed of services to help consumers safeguard their privacy and identity, is offering basic tips to help consumers avoid putting their identity at risk during the 2008 holiday season. In addition to watching budgets this season, consumers also need to be vigilant in the face of possible identity theft.

• Use credit cards instead of debit cards:  Under the Fair Credit Billing Act, Credit Cards provide consumers protection again fraudulent charges and your liability is limited to $50. You also have the right to dispute charges and withhold payment during investigation. However, debit cards are entirely different.  Although they market themselves to deliver the same protection, they are not required to by any law.  Bottom line, your liability for fraudulent charges is the entire amount in your checking account as well as the credit line you have been authorized to receive.

• Use a single credit card to consolidate your purchasing: The more credit cards open in your name, the greater the risk that a thief will obtain the account information for one (never mind that having numerous cards with big lines of credit can be a bad temptation and can actually drag down your credit score--even if you don't have balances). It's also easier to monitor a single statement for signs of fraud, and you won't incur the annual fees associated with having multiple cards. Make sure to cross-check all your receipts against your statements to see that they match.

• Be sure to write "SEE ID" on the back of credit cards: This simple step can help to foil thieves if the card is lost or stolen, and might even help to catch the thief if your card is taken.

• Shop on secure sites and be wary!:  While the majority of identity fraud occurs offline, identity theft is also a problem online. You must exercise caution when shopping on the web. Stick to sites that you know are legitimate, and if you are trying a new site for the first time, here are a few things to look for: the URL should have "https" in the shopping cart; there should be a lock icon on the bottom right hand side of the window and look for icons that indicate site safety (the Better Business Bureau, VeriSign and Hacker Safe icons).

• Watch out for "phishing" and "vishing" scams: These scams can be a real problem, as identity thieves try to play on people's generosity during the holiday season. Phishing emails often take the forms of requests purporting to be from a bank or credit card company; they ask you to "verify" account information such as login and password or they request a donation or assistance for the less fortunate during the holidays. Vishing scams--which involve fraudulent calls—seek to exploit consumer concerns over fraud by seeming to offer fraud prevention assistance. The bottom line: no legitimate vendor will ask for your login and password via email or on the phone.

• Be careful when using ATMs: Only use ATMs with monitoring cameras, such as those in bank lobbies. Avoid kiosk ATMs, those freestanding units often do not have cameras and are statistically more likely to be infected by skimmers (electronic devices that allow thieves to record account and PIN numbers). "Shoulder Surfing" can also be a problem at a crowded mall. While you assume that the man behind you is uncomfortably close because of mall crowding, he may actually be looking over your shoulder trying to get your login.

• Place fraud alerts to prevent new credit card accounts from being opened: Free fraud alerts placed on your credit report are good for 90 days (if you can demonstrate that you've been an identity theft victim, they can be set for 7 years) and, in combination with other proactive measures, can be used to help to prevent identity theft.

Give Yourself Financial Peace This Holiday Season

The following is a guest post from Marotta Asset Management. The attitude he suggests and the tips he gives works not only for Christmas, but for anyone celebrating any holiday this season.

In Charles Dickens's "A Christmas Carol," Ebenezer Scrooge calls Christmas a "humbug" because of the foolish way people celebrate it. He asks his nephew, "What's Christmas time to you but a time for paying bills without money?"

Sadly, that sounds like Christmas for many American families binging on expensive gifts.

Every year, Americans seem determined to be more frugal than the year before because of the latest economic conditions. One year it is rising energy prices; another year it is rising interest rates. This year, of course, the drop in everyone's investments looms large. And so once again Americans will promise to cut back on presents, food and decorations and to fund their celebration from actual income instead of savings or credit cards.

But while the retailers worry, cut prices and may have an off year, the credit card companies are never concerned. One in every five families won't pay off their credit cards in January. They will pay exorbitant interest rates instead and begin the downward spiral into financial ruin. Many families, in fact, are still trying to pay off their credit card purchases from last Christmas.

We are a nation of consumers and debtors. Total U.S. credit market debt has reached an all-time high in 2008 at 350% of gross domestic product (GDP), up from 255% a decade ago. This increase over the past 10years is not due to the federal deficit. Only a paltry 37% of GDP is federal government debt, which is down from 46% a decade ago. The largest increase has been in financial institutions, whose debt rose from 64% to 114% of GDP. The second largest increase has been in household debt, which rose from 66% to 100% of GDP. Now the country is de-leveraging, and American families must do the same.

Christmas is an emotional time. Few families set a budget for spending, and consequently credit card debt spikes considerably. Our materialism urges us to show our love for friends and family members with big and expensive gifts. As a result, we often buy even more lavishly than the receiver would have wanted us to.

It's time to differentiate between the celebration of Christmas and the commercialization of Christmas. This year, give your family the gift of financial peace of mind. Celebrate the season simply.

Four decisions, if made together as a family, can help reduce the frenetic materialism of the season and bring back the holiday's warm fuzzy feelings: Cut back your gift list. Limit how much you spend. Decide to be charitable. Determine which activities bring you real joy.

We get into trouble when the number of people we buy for increases beyond our means. Make a list. Cull the list. Engage in a little honest financial talk among friends and family. Copy this article and highlight this section. They will understand that your retirement account is way down, finances are tight and you need to be saving more money to get back on track. Other family members may be equally relieved to cut back their own gift list.

For example, you might decide that only children 12 and younger among extended family members will get gifts. If that decision doesn't keep gift giving reasonable, ask each extended family member to draw the name of one child under 12 and buy a gift. These seem like sensible rules.

Limit how much you spend. All of your excess holiday spending should fit inside 1% of your annual take-home pay. So if your net income is $40,000, you have a $400 budget for Christmas. If you bring home $100,000, you can spend $1,000. If these amounts seem small, you are in good company. On average, people spend about $800 on gifts alone.

Try taking care of all of your friends with a single baking project. Cookies, homemade granola, Russian tea, or herb mixes are easy to make in quantity and always welcome during the holidays.

Family Christmas letters are a wonderful way to keep distant friends up to date on your life, but consider sending them via e-mail or posting them on a blog or website for free. It is better for the environment--and your budget.

For family members, consider buying gifts that are already part of your budget or that encourage your children to develop their inherent talents. My favorite Christmas gift idea comes from "The Homecoming," the first movie about the Waltons, in which the father buys John Boy paper and pencils. His gift, which affirms his son's choice of writing as a career, is the emotional climax of the story. Many parents' gifts at Christmas have changed the course of their children's lives or careers by inspiring them thoughtfully in one direction or exposing them to a new interest.

Decide to be charitable. We either choose to be the kind of people who take delight in giving generously or we are not generous. Jesus, whose birth we celebrate at Christmas, saw a poor widow putting two small coins worth only a fraction of a penny into the treasury. He called his disciples and said, "Truly I say to you, this poor widow put in more than all the others. They gave out of their wealth; but she gave out of her poverty."

Giving ungrudgingly can be an act of faith, a recollection of all we have been given. It is ultimately a declaration that we want to be generous people.

Finally, decide which activities bring you real joy. Dickens himself understood this. As his son explained, Christmas was "a great time, a really jovial time, and my father was always at his best, a splendid host, bright and jolly as a boy and throwing his heart and soul into everything that was going on. . . . And then the dance! There was no stopping him!"

Take a lesson from how the reformed Ebenezer Scrooge celebrates Christmas. He does six things, and only first two of them cost money.

First, Ebenezer buys the Cratchits a prize turkey anonymously. He decides to treat his employee Bob Cratchit like family. Sharing a festive meal together promotes community. Today less than 20% of family meals are eaten together. Even if all you did during the holidays was to share a meal, it would make the season unique and special.

Expensive food does not make a meal a feast. In fact, it is eating out at fast-food places and precooked convenience foods that burden our budgets. The leisurely pace of homemade family meals costs a fraction of our typical eating on the run. Fold the napkins fancy, and use the good china.

Second, Ebenezer gives generously to the portly gentleman who was collecting for the poor. Ebenezer decides he wants to be charitable, and so he includes a great many back payments in his donation.

Third, Ebenezer is kind and gracious to everyone he meets. This attitude costs so little, but it sometimes seems as scarce as the latest sold-out fad toy. Ebenezer smiles. He is pleasant. He says, "Good morning, sir! A merry Christmas to you!" When he previously would have responded with a gruff word, he reacts now as a shock absorber with forgiveness and forbearance. These simple gestures cost us nothing but are all too uncommon.

As Ebenezer's nephew Fred describes Christmas in the opening scene of Dickens's famous story, it is "a kind, forgiving, charitable, pleasant time: the only time I know of, in the long calendar of the year, when men and women seem by one consent to open their shut-up hearts freely, and to think of people below them as if they really were fellow-passengers to the grave, and not another race of creatures bound on other journeys."

The fourth action of the reformed Scrooge is going to church. Worship is an act of celebration that helps us remember with gratitude all that God has provided. Our community provides scores of opportunities for free celebration during the holiday season.

Fifth, Ebenezer walks about the streets of London enjoying the sights. Sometimes a celebration can be simply taking time out of our busy lives to notice what is noble and beautiful all around us. Pausing and reflecting gives us time to refresh our bodies and renew our minds. It allows us to see beyond the ordinary and routine and appreciate life to its fullest.

Perhaps you don't feel that way. All the more reason to stop and reflect. Feelings often follow thoughts. Having an attitude of gratitude, being mindful of others in the present and looking confidently and eagerly toward the future encourages us to be people who live life with more satisfaction.

For his sixth and final new way to celebrate Christmas, Ebenezer goes to his nephew Fred's party for fun, games and music. Christmas provides the unique opportunity for the bonding that comes from joyful laughter.

After a musical interlude, the partygoers play "Forfeits" because "it is good to be children sometimes." The commands are usually silly requests intended to get everyone at the party laughing, such as "dance a jig," "tell how to make a pie without talking," "yawn until you make someone else yawn" or "try to stand on your head."

Next they play the games "Blindman's Buff," "How, When and Where" and then "Yes and No." None of these pleasures cost a cent, which is a lesson Scrooge as well as many of us have forgotten. Your best holiday delights need not even show up as a line item in your budget.

This year, take the hype out of the holiday. Feast merrily, give generously, show kindness, worship thankfully, live mindfully and laugh playfully. Cut back your gift list. Limit how much you spend. Simplify your Christmas, and set your family on the road to a lasting peace about finances.

How to Make Your Performance Review a Success

Yahoo lists five ways to make your performance review discussion a success as follows:

• Ask questions -- Always press for details, says Gail Ginder, an executive coach with the Claros Group.
• Tell your story -- If you disagree with your boss' assessment of your performance, ask if you can tell your side of the story.
• Play it by ear -- It's generally a good idea to discuss your future with your boss at your review. But if you're blindsided by criticism of your performance, it may be better to save that for another day.
• Don't sweat the small stuff -- You don't have to explain or discuss every minor improvement your boss thinks you could make.
• Follow up -- If you are surprised by a negative review and want some time to reflect before discussing it, ask your boss for more time. "Your boss knew it was coming," Civitelli said. "You may have to say, 'I need some time to think about these things.'"

Ok, broken record time for me.

If you have managed your career/boss correctly prior to the review, then there shouldn't be any surprises when you meet with your boss -- it should simply be a more formal part of an on-going conversation you're having with him/her about the expectations for your position, how you're doing against them, etc.

Prior to my annual reviews, I usually list my accomplishments (making them as quantifiable as possible) next to my goals for the year. I then send my boss a copy a few days before the review so he can see it as well.

That's how I usually do it. This year he had to move the review up a week at the last moment, so I didn't get to send him my thoughts in advance (I had been working on them but thought I had a couple more days.) But his review caught them all anyway. I guess he's reading those weekly updates. ;-)

Help a Reader: Saving on Moving

Here's an email I recently received from a reader:

I'm leaving my job as a management consultant in Washington, DC to work as a teacher in the Los Angeles Public Schools.  I'm trying to move across the country with my wife over the summer and make it as cheap/painless as possible, especially because we're taking a 60% pay cut.

Here's what I've been thinking:

• Sell almost everything that's large that we own on Craigslist.
• Ship most of our clothes and hiking gear, should be 3-4 medium boxes for $50 a piece.
• Drive across the country with our books and kitchen stuff in our car.
• Buy new things on Craigslist in LA.

I'm trying to weight the costs/benefits of moving vs. selling and buying new things.  The items we own and I'd like to keep that won't fit in our tiny, old Mazda are:

• A $300 mattress from IKEA (special for wife's back problem).
• An oak kitchen table I got on Craigslist for $50, but have been told it's worth $300+ which I really like.
• An old bike that I love, my wife's bike which is not so great.
• A nice futon that I could potentially return to my parents, who live 4 hours east, more or less on the way to LA.
• Some IKEA lounge chairs, ~$100 a piece new.

What advice do you have for this reader? Do you like his plan or have any other suggestions/thoughts?

The Way to Wealth

Our family just got done watching a PBS DVD series (checked out free from the library) on Benjamin Franklin. It was very, very interesting (and entertaining!) I'll be looking for more DVDs like this one in the future. But I digress.

One piece of information that was new to me was that Franklin wrote a piece called The Way to Wealth. where he dispenses some GREAT financial information -- most of which is still good advice for today. This article does a good job of summarizing Franklin's thoughts in The Way to Wealth and I thought I'd highlight a few of my favorites from it:

Early to bed, and early to rise, makes a man healthy, wealthy and wise.

One of the most familiar quotes ever from Franklin:

God helps them that help themselves.

So common that many people think this is actually a quote from the Bible.
 
A few more I liked but won't comment on:

• Sloth, like rust, consumes faster than labor wears, while the used key is always bright
• Dost thou love life, then do not squander time, for that’s the stuff life is made of
• At the working man’s house hunger looks in, but dares not enter

And here's a part I REALLY liked:

If you would be wealthy, says he, in another almanac, think of saving as well as of getting: the Indies have not made Spain rich, because her outgoes are greater than her incomes. Away then with your expensive follies, and you will not have so much cause to complain of hard times, heavy taxes, and chargeable families; for, as Poor Dick says, "Women and wine, game and deceit, make the wealth small, and the wants great."

Kind of like what I said, huh? ;-)

Anyway, I was very impressed that someone who lived so long ago had such financial wisdom that it was valid information today. If you have the chance, take some time to read The Way to Wealth. Or, just keep reading Free Money Finance -- we cover the same topics. ;-)

How to Save Money on Your Monthly Technology Bills

Here are some thoughts from Kevin Brand, EarthLink's SVP of product marketing on how to save on tech bills.

Assess your Needs

Look at the ways you use technology in your home. Take a week and monitor how often you are on the phone, watching television, or surfing the net. Once you see how much time you are using these services, compare it to your plan. Many people have access to high-speed Internet at work, making it unnecessary to pay for high-speed bells and whistles at home. The key is to avoid paying for excess.

Downgrade

Once you assess your needs, get rid of services that you aren’t fully using.  Are you downloading video and playing games or just checking email and sports scores on the Internet? If it’s the latter, it doesn’t make sense to pay for a high-end, super-fast Internet connection. A less expensive but safe and reliable service such as dial-up service – which some providers offer with a special Accelerator option – may be just what you need.

The same applies to your cable bill. Do you need the premium channels or DVR? Better yet, if you can watch most of your favorite shows online or you predominately watch shows on only a few channels, you may be able to downgrade your service to a cheaper plan. Be honest about what you really need, and don’t pay for services you aren’t using to their fullest potential.
       
Take Advantage of Freebies

Look for companies that offer free services. Some Internet providers offer free virus protection, which saves you from buying costly software yourself.  Others offer free spam protection and other security enhancements, a good bet if you’re looking to maximize savings and still surf safely.  Also, leverage your Web access by surfing special cost-savings sites, like www.pricegrabber.com, www.bizrate.com or www.thedailydeals.com.  Look for any special promotions your provider might offer on their home page.  A lot of Internet providers have partnerships with other online merchants to offer special savings to their subscribers. If yours doesn’t, consider looking for one that does. And sign-up for the email alerts from the companies that you already do business with to take advantage of special promotions.

Avoid Bundles

Advertisers may create a “need” that might not really exist for you. If you’re a cost- conscious consumer, look closely at how much you’re paying for popular, but often pricey, bundle packages that include phone, cable and Internet. It may be easier to pay all-on-one bill, but it doesn’t allow you the flexibility to choose the best individual services that fit your lifestyle. Nor will a bundle provide the flexibility to adapt your services based on lifestyle or location changes. Also, promotional pricing may exist initially, but the price may go up while you’re still locked into your bundle.  So, you may not need all the “bells and whistles” or restrictions of a high-cost bundle. In fact, if you opt for options like Freestanding DSL for your Internet access, you might be able to ditch your home phone altogether.

Study your Bill

Read the small print. Know what you are paying for and make sure you’re only paying for services that you actually use.  Also, be familiar with your contracts and look for changes to the Terms of Service. Know when your contract ends, so you don’t unwillingly default into another one. And be aware, not all Internet providers offer free, 24/7 customer support. If your provider doesn’t, you could be eating up dollars you don’t need to spend.

Pay Smart

Finally, make sure you are taking advantage of special deals and incentives. Some service providers offer discounts up to 40% for annually pre-paying. Others offer special pricing for a year’s commitment.  And always ask for what you want from your provider. A customer-service focused Internet provider may be willing to give you a credits if there’s been a serious issue involving your service or account.

Is Buying a Title of Nobility an Investment or a Scam?

So I get this email a couple of weeks ago:

I recently invested in a title of nobility through a private brokerage firm called (name deleted). Their site is (site deleted). Might be of some interest to your readers as I was able to receive a rewards discount being that I am a Centurion Card member and for those looking to diversify. They have a relationship with Centurion rewards at American Express.

I wasn't sure if this was legit, someone trying to promote a site they actually owned, or what in the Sam Brown was going on. But I was curious, so I replied:

How does an "investment" like this work?

He responded:

Considering titles are unique and historical, as time goes on they become more and more valuable (less and less are available on the market).

I bought a Scottish Barony in 1982 for a tiny sum of $8,000. I sold it in 1999 for $275,000. I wasn't planning on really ever selling it since it is a historical addition to my family, but it was too good to pass up.

At this point, both my BS (sounds too good to be true) and curiosity (wow, what a return!) meters were on overload. So I said:

Really? Care to write a post on it for my site? What you did, how you did it, etc. Maybe even a bit on what these go for now.

This was the response I received:

It was 1982 when I came across a growing market for titles of nobility. I purchased a Scottish Feudal Barony for my family for a paltry sum of $8,000. Initially I purchased the title as a historical addition to my family. In the late 90’s, a huge boom in value happened in the noble titles market. Similar Barony titles to the one I had were being sold for 20 to 30 times what I paid. In 1999, I sold my title for the sum of $275,000.

It wasn’t until the Spring of 2008 when I became interested again in titles of nobility due to the changing economy and the safety of my assets. I came to know a private brokerage firm through a friend. I was able to look over a small catalog of available titles of nobility. After over 3 months of thinking, I decided to go ahead with acquiring another title of nobility. With the changing global economy, titles of nobility I knew would always retain their value and most likely soar. I decided to invest $20,000 into a single low ranking title of nobility. Over about a 60 day period, I was kept informed by my agent of the status of the transfer of the title. As of August 2008, I am now the holder of a title of nobility once again.

The differentiating factor of the noble titles market from any other is every title is unique with their different histories. This is what allowed me to invest again. I was able to acquire a less historical title from the one I bought in 1982. I’d probably have to offer a much more significant amount than I sold the Barony for to get it back. There’s very few available in 2008. As time goes on, I hope the title I purchased will gain much in value. During this economic slump, now is a good time to acquire a title. A percentage of the market buys titles for just the historical or vanity value. Those are the people who are not looking for titles right now because of the economic slump. Investors can get into the market in several different budget areas. The title will always be unique and historical. I now await for the vanity and history based buyers to pump the market value of the title I purchased.

At this point, I went a googling and found the following at wikipedia under false titles of nobility:

Fake titles of nobility are supposed titles of nobility which have, in fact, been fabricated, and are not recognized by any government, or have not been so recognized in the past. They have received an increasing amount of press attention as the number of schemes which attempt to sell these titles has increased.

It is impossible to purchase genuine British titles of nobility or peerage titles directly, with one exception: it is possible to acquire a feudal title in the grade of baron in Scotland. Until the Abolition of Feudal Tenure (Scotland) Act of 2000, the transfer of such a barony required some interest in land, specifically the caput baronium (the seat of the barony), since the Act the titles stand on their own and transference by sale without land is legal. Scottish feudal baronies have been transferred by sale for well over half a millennium.

I also found this interesting piece on the nobility amendment to the US Constitution:

The Titles of Nobility Amendment (TONA) is a proposed amendment to the United States Constitution dating from 1810. It was submitted to the state legislatures during the 2nd Session of the 11th Congress via a resolution offered by U.S. Senator Philip Reed of Maryland—and has not taken effect because it has not yet been ratified by the legislatures of enough states.

The text of the proposed amendment:

If any citizen of the United States shall accept, claim, receive or retain, any title of nobility or honour, or shall, without the consent of Congress, accept and retain any present, pension, office or emolument of any kind whatever, from any emperor, king, prince or foreign power, such person shall cease to be a citizen of the United States, and shall be incapable of holding any office of trust or profit under them, or either of them.

Yikes! I'd hate to buy an "investment" and lose my citizenship! Then again, the chance this will pass is virtually zero. After all, it's been almost 200 years since it was proposed.

And finally, to round out some information for those interested, here's a page on nobility in general.

Then I searched some more. If you want to see all the sites out there selling titles of nobility, go to Google and type in "titles of nobility for sale". Look at all the info (pro and con) on titles of nobility both in the search results and the Adwords ads (to the right). Play around with similar search terms and you'll find even more firms selling these (most of which look questionable in nature) as well as pieces saying they are scams.

Personally, I think this sounds a bit shady, but I'm open to learning something new. So I thought I'd post on this and see if anyone knows anything about titles of nobility for purchase and (especially) as an investment. Any thoughts out there?

How to Prepare for a Performance Review

Yahoo lists four steps you need to take to prepare for a performance review as follows:

• Assess what you already know.
• Dust off your previous review.
• Learn how your company works.
• Make your case in writing.

In particular, I think their most valuable information is found as part of point #1. They say:

Ideally, you should be checking in regularly with your boss to make sure you're doing what's expected.

"The performance evaluation process should start the day you're hired," said Janet Scarborough Civitelli, founder and president of Bridgeway Career Development. "There should not be any big surprises during the actual review."

Exactly. The best way to prepare for a performance review is to be over-performing versus the expectations for your job. And the first step in doing this is to know what the expectations are. I detailed my thoughts on this in an earlier post and you may want to check it out. It's a tried and true method for getting you a raise, promotion, or a good performance review.

Help a Reader: How to Tip

Here's a question left on my post titled Saving Money on Tipping:

My husband and I would like to provide a small gift (either cash or baked goods) to our mail carrier and garbage men. However, it's rare that we see these people to deliver the gift in person - other than our mail carrier who we occasionally see on Saturdays. For those of you who provide tips, how do you leave them for these two services? We have a mail slot into our house rather than a mailbox, so we can't leave a gift in a mailbox for our mail carrier. As for the garbage men, I'm concerned a card with cash might get overlooked and am not crazy about the idea of leaving baked goods next to our weekly trash. Thanks in advance for suggestions!

Anyone have any creative solutions here? We simply wait for them and catch them when they come to our house. Then again, my wife is at home all day, so she can make time to do this. But most people can't. So, what are some good alternatives?

Win a Free Book (8 Copies Available)!

I'm cleaning out my office and some of you will be the beneficiaries of my effort. Today I'm giving away eight free copies of the book Be Your Own House Contractor. Here's how you can have the chance to win one:

1. Leave a comment below -- any comment.

2. Sometime later this week, I'll stop by the post, stop the submissions, and name the winners (who I'll select at random).

3. It will be those people's responsibility to check back to see if they are a winner and then email me their contact information.

4. I'll mail out the prizes at once after all the winners contact me.

A few rules for this giveaway:

1. I will be the complete and final judge.

2. Legal disclaimer: I can not guarantee the prize will get to you. I'll mail it via USPS so it should be ok, but I can't guarantee it will arrive and won't be held responsible in case there's a mess up.

3. If you win something and do not contact me within a week of winning, I reserve the right to give your prize away to another winner. Note again: I

won't track down the winners -- it's your responsibility to come back and see if you won.

4. Local laws, rules, and regulations apply.

Good luck! Post a comment below for your chance to win!

Reminder: EVERY Question from a Potential Employer is Part of the Hiring Process

US News tells this story to illustrate a key point about the hiring process:

We want to find people who want to learn sales to make it a career. We invest a lot in time and money in their training, so we do not want to have people here who don't want the job.

We always ask...in a very casual, offhand manner..."What do you really want to do?"

Keep in mind we are hiring sales reps, we are not hiring marketing reps or advertising people. Yet some of the applicants say something like, "I really want to find a marketing job." Why would we hire someone who doesn't want THIS job? The right answer to us is, "I want to work here in sales." Simple. The best answer is "Sales!" and double the points if the candidate has a look of amazement that we would even have to ask.

My advice is to think first before you speak. Even the most innocent-sounding question can trip you up.

Good, good reminder -- NEVER let your guard down in an interview, phone call, dinner or lunch out during the hiring process, etc. As they say on all those cop shows, "everything you say can and will be used against you." So think before you speak and be sure to give the "right " response to the questioner. (And if the "right" response is not what they want to hear, that's a good sign you're not interviewing with the right company/for the right job.)

Even better -- rehearse what you want to say to all potential questions.

Cash Over Credit

Looks like more people are choosing cash versus credit lately:

Cash or credit? For more Americans, who have already maxed out their credit cards or are just trying to manage their spending better in the tough economy, the answer is increasingly the old-fashioned one.

Retailers like Wal-Mart Stores Inc., Target Corp. and J.C. Penney Co. are noticing a marked shift away from credit cards in favor of cash and debit cards. A big factor is less credit available as major card issuers cut spending limits and raise fees even for customers who pay their bills on time.

Not a bad habit for people to get into, huh?

Do You Give Your Boss a Christmas/Holiday Present?

Here's part of a comment a reader left on my post titled Holiday Tipping Overview:

How about bosses? Does anyone get presents for their boss?

For me, it really depends on the relationship I have with my boss. In the past I've purchased nice presents for some bosses while getting nothing for others. My current boss (and the owners of the company for that matter) is a friend as well as my boss, so I get him something small like a book, some baked goods, or something similar. Again, for me my relationship with my boss determines not only if I get a gift, but what kind I get. And I don't give to win "brownie points" because I don't think that would work anyway. Maybe you disagree.

So, let us all know what you do for your boss during the holidays as well as why you do it. Should be a fun conversation.

Sears Makes Good!

Late on Friday afternoon I got a call from the manager at my local Sears store. He was responding to my letter/issue. He apologized several times, said they had done many things incorrectly, and asked what he could do to make me happy. I thought about saying, "give me a complete line of Craftsman tools" but instead I simply asked for the 20% discount I thought I was due. He said that was no problem and he issued the refund to my credit card.

So while it was not the best experience (they should have taken care of me from the start), Sears did eventually make good. Here's to one store manager who understands customer service!

How to Answer the "Do You Have Any Questions for Me?" Question

U.S. News gives their opinion on how to answer the dreaded "do you have any questions for me?" interview question:

What the question (often) really means is: "Do you have any simple questions that I can easily answer and which will not make me reconsider my tentative decision to offer you the job?"

Because of this, the applicant should avoid asking:

• "What is the benefits package?"
• "How much vacation time would I get the first year?"
• "To whom do you report?"
• "How do you like working here?"

I agree with the first of these three, but I've used something similar to the last question with no problems at all. I say something like, "This seems like a really great place to work to me because (fill in the blank.) Is that the same reason you like working here or are there other reasons you enjoy it?"

I've used two other questions in the past:

• "What tasks will it be important for someone in this position to complete successfully?" I ask this if the subject didn't come up during the interview. Then, once they tell me, I say something like, "That's great. I think I'll be able to do those successfully just like I did when I (fill in the blank from past job -- I detail a similar experience and list my quantifiable accomplishments.)

• "Is there anything about me that makes you think I'm not the best person for this position?" If they list anything, I say something like, "I understand how you can think that. I didn't have the chance to share (successful experience from pervious job) with you." Then I proceed to answer their concerns citing past job successes in the areas they think I'm lacking.

In other words, I use the questions as springboards to keep selling myself, my skills, etc. Of course, I've rehearsed all of these answers before to the interview, so they slide off my tongue with ease. It looks like I'm speaking off-the-cuff, but I'm not really, which leaves a good impression with the interviewer.

How about you? How do you respond to the "do you have any questions for me?" question?

What Truly Matters, Part 3

For those of you new to Free Money Finance, I post on The Bible and Money every Sunday. Here's why.

Today we have another excerpt from chapter 4 of Money, Purpose, Joy: The Proven Path to Uncommon Financial Success. This is the last post in this series. Enjoy.

Don’t Be a Bystander in the Passion Game 

Some people cry while watching love stories. I cried while watching Walk the Line, the story of Johnny Cash. A number of scenes stirred my heart, but especially the concert Cash performed at Fulsom Prison toward the end of the movie. Just before going on stage, he saw something that reminded him of his brother, who died in an accident when he was very young. That memory kindled something in Cash—perhaps a mix of grief, anger, and maybe even a haunting question about whether he could have done something to prevent his brother’s death. It all poured out on stage. His performance was that of a man living life to the full, unable to hold anything back. The energy he brought to that performance overwhelmed me.

As the credits rolled and the lights came up, I felt embarrassed that my eyes were glistening with tears. But mostly, I was glad to be that moved. Something in me longed to live with the passion I saw before me.

A few weeks later I read this comment about Johnny Cash from the musician Don McLean: “One of the things I loved about him was he was a little frightening when you first heard him.”  Isn’t that great? Isn’t that exactly what it’s like when we see someone bringing all that they have to whatever they’re doing?

Performers don’t have the exclusive rights to passion. If you work at something you believe in, something that makes a difference in the world, something that’s an expression of who you are and what you were put here to do, won’t you do it with passion? Isn’t life far too short to settle for anything less?

Letting Contribution Lead

What contribution do you long to make with your life? When it’s all said and done, what difference will you want to have made? Maybe the off-road adventure you long to pursue is that vocational dream that comes to mind every time life gets quiet enough for you to notice, the one you keep trying to hush because of your financial obligations. What if you began using your money in a way that could make your dream job come true? What if you had enough savings to quit your current job or reduce your hours or go back to school in order to pursue the work you really want to do? Your employer might even pay for your schooling. The vast majority of large employers offer some type of educational assistance, yet fewer than 10 percent of eligible employees take advantage of such programs.  Does your employer offer tuition reimbursement? If so, why aren’t you taking advantage of it?

So what if saving money to pursue the work you were meant to do means vacationing a bit closer to home or wearing last year’s clothes another year? If those sacrifices enabled you to pursue more meaningful work, wouldn’t they be worth it? The ads promise that the seaside resort and this year’s fashions will make your life so much more exciting, but the truth is, doing what it takes to pursue more meaningful work will be the route to a far more satisfying adventure.

It’s all too easy to use money in a way that moves you further away from your longing to make a difference—further and further away from home. It’s all too easy to take on financial obligations that rob you of the flexibility to accept a job for less pay, even if that’s the one that resonates with your heart. So as you contemplate each of your many financial choices, ask yourself how your choices are likely to impact your ability to pursue the work you were meant to do. (If you are married, be sure to do this in partnership with your spouse.)

For example:

• How would remodeling the kitchen—along with the monthly payments on the home equity loan you plan to use to pay for it—impact your ability to pursue the work you long to do? Might it just chain you to your cubicle for the next five years?

• Would taking a promotion that’s been offered to you be the wisest choice or could the extra hours required by the job kill any chance of going back to school or of doing the volunteer work you want to do?

• Do you really need two cars, or would the ability to build a sabbatical fund make the inconveniences of living with just one worth the effort?

To be sure, these are not easy choices. It is not inherently wrong to opt for the new kitchen, the promotion, or the dual-car household. But if those choices diminish your ability to live a life of meaning and joy, are they really worth it? It’s important to at least consider such questions.

Our Greatest True Desire

As we have seen, two elements of what truly matters in life are having meaningful relationships and making a meaningful contribution. Both are part of our design; they’re part of who we are. When we make financial choices that strengthen our relationships and help us make a difference with our lives, we’re on the path toward home.

But within each of us is a third longing. In fact, it is the most important one, for when we understand this true desire, we see once and for all that we were never meant to settle for life as Consumers; we were meant to be so much more.

What to Remember

1. Two of our most important true desires are the desire for meaningful relationships and the desire to make a meaningful contribution with our lives.

2. Successful, joyful money management involves making financial choices that support these desires.

3. Such choices look different for different people, but we can stay on track by asking ourselves questions such as: Will buying a home with more space enhance our family relationships or could it hurt them if we stretch our finances too far in buying the home?

What to Do

1. Who are the most important people in your life? Take the time right now to write them down on a piece of paper or in your guidebook, but try to include no more than five. To make it easier, group some together. For example, if you have kids, don’t list each one separately; just write down “my children.” Do the same with your parents and other important groups of people in your life.

2. What contributions do you long to make with your life? Are there causes you’d like to support either with your volunteer time or with your money? What did you once long to do that you have given up on because there are bills to pay? Would you like to switch from full-time work to part-time work so you can spend more time with your children? Capture some of your thoughts on paper. Don’t worry about “how” just yet. We’ll get to that later. For now, just focus on “what.”

3. Now take a look at the list of financial goals you wrote down earlier. How might the pursuit and accomplishment of each goal impact your most valued relationships and your ability to make the difference with your life that you want to make? See if you can identify at least one way that the pursuit and accomplishment of each goal could be helpful and at least one way that it might be a hindrance. Write your answers on a piece of paper or in the guidebook. Are there any changes you’d like to make to your goals list?

What the Word Says

Love others as much as you love yourself. –Matthew 22:39 (CEV)

We are God’s workmanship, created in Christ Jesus to do good works, which God prepared in advance for us to do. –Ephesians 2:10

Reminder: Keep a Sharp Eye on Medical Bills

Here's a reminder from NCN that you need to keep a close eye on your medical bills. He was being charged "out-of-network" prices even thought they were in network. After 30 minutes of sorting out the problem, he ended up saving $208.34. Not bad at all.

I have to say that medical bills are among the hardest to understand of almost any we receive. In fact, they may even be more difficult to sort through than taxes. That's why I turn them all over to my wife and let her handle them. ;-)

Anyway, NCN's post made me think of the various tips I've given to those looking to save money on medical bills/costs. Here's a quick review for those of you interested:

• How to Get an Incorrect Medical Bill Corrected

• Another Way to Get an Incorrect Medical Bill Corrected

• A Third Way to Get an Incorrect Medical Bill Corrected

• CPT Codes Can Save You Money on Medical Bills

Good Stuff from Around the Web

Don't have time to post on all these, but thought they were worth sharing:

• Whatever you do, don't buy Sears -- Seems like Sears' lack of customer service is coming back to bite them. (If you don't know what I mean, check out why I hate Sears.)

• Nightmare on the Charles -- Not even a Harvard MBA guarantees a job these days.

• 25 Great Gifts for $25 or Less -- Some decent suggestions for those of you stuck with no ideas.

Ideas on Winterizing

Here's a good piece on how you can winterize your home, car, and small gas-engine machines -- something that will both save you money and extend the life of your belongings. Here are a few of the tips I found especially interesting:

• Wallhangings. A quilt or decorative rug will insulate interior walls, keep your room cozier, and allow you to turn down the thermostat a few degrees in the winter without a noticeable difference.

• Cheap firewood. If you live near a national forest, you may be entitled to several cords of firewood for a small fee. Check with your regional office of the U.S. Forest Service. Warning: It is illegal to pick up firewood in a government-owned forest without a permit, so don’t skip that part.

• Fuel. Unless you live in the tropics, put a bottle of fuel de-icer in your tank once a month to help keep moisture from freezing in the fuel line. You can discourage moisture from forming in the gas tank in the winter if you keep your fuel tank full.

• Car locks. Dab a little petroleum jelly on your keys and move them in and out of the locks to keep them working smoothly during the winter months. Petroleum jelly doesn’t freeze.

My thoughts:

1. I never really thought about how wall hangings can help insulate a home, but it makes sense now that she brings it up.

2. We don't live near a national forest and don't have a wood-burning fireplace, but if you do this seems like a GREAT way to save money.

3. I use de-icer in my gas during the winter, but wonder if it's really necessary. Anyone have thoughts on this?

4. Another interesting idea. That said, does anyone use keys/locks on a car anymore? I always control my locks electronically.

Free Dr. Pepper

Dr. Pepper is giving away a free soda (or "pop" if you prefer) to everyone this Sunday! The summary:

A voucher for the free drink will be made available on drpepper.com for 24 hours this Sunday at 12.01am. Those who print the coupon will have until February 28, 2009 to redeem it.

Details here.

Is Your 401k Dying?

Check this out:

As the economy worsens, a growing number of small businesses are suspending their 401(k) match, and, in some instances, closing the retirement plans altogether.

While only about 15% to 20% of small businesses offer a 401(k) plan, many added them in recent years to attract and retain workers and to help business owners save for retirement. But the economic downturn and higher health-insurance costs are forcing companies to cut back on retirement benefits.

"It's a cash-flow issue," says Patrick M. Shelton, a partner at Benefit Plans Plus LLC, a third-party administrator of retirement plans in St. Louis. "The companies don't have money to meet payroll and medical insurance, so they're cutting back on 401(k) plans."

Yikes! Anyone out there have this going on with their company?

I work for a small company and our business is booming now, so we're full-speed ahead on everything -- and our 401k isn't changing a bit.

For those of you that do have a change, you may need to consider other job opportunities. Not that you should quit right away (especially in this economy), but if the company is that bad off from a cash flow perspective, it could be on the brink of going under. It wouldn't hurt to keep your options open.