Free Money Finance

The Bible on Debt, Foundations of Stewardship, and Tithing

While I've been on vacation this week, I've been highlighting some good posts from this week last year. I usually don't list "year ago" posts on Sundays (I write new posts each week), but since I'm still on vacation, I'm listing all of my Sunday posts from December 2005 for your review:

• Five Biblical Principles about Borrowing and Debt - Five biblical principles I presented on my trip to Russia.

• The Proper Perspective - Two simple fundamental attitudes which are the foundation of our stewardship responsibility.

• The 21st Century Tithe - This article explains tithing and its application to 21st century Christianity.

Retiree Life Insurance, Giving Smart, A Job You Hate, and Keeping Expenses Under Control

While I'm on vacation this week, I'll be highlighting some good posts from this week last year. Here are some posts worth sharing from one year ago today:

• Should Retirees Carry Life Insurance? - So, what's the answer?

• Comments: Give Smart - Here are a couple comments to my post titled Give Smart that suggested maybe garage sales weren't worth the time.

• Loving the Job You Hate - If you've never been there, you are certainly very lucky. I, like most people, have been there -- in a job that I don't like.

• Even a Small Leak Can Empty Your Money Bucket Quickly - A simple fact about personal finances: little bits can add up.

Good Customer Service, Prosperous Retirement, Spending to Save a Pet's Life, Getting Rich is Easy, and Starting on $1 Million at 16

While I'm on vacation this week, I'll be highlighting some good posts from this week last year. Here are some posts worth sharing from one year ago today:

• Ten Tips to Getting Better Customer Service, Part 1 - The start of a good series on the basics of having stores take care of you.

• 10 Tips to a Prosperous Retirement - Just what it says.

• Comments: How Much Would You be Willing to Spend to Save Your Pet's Life?; A Lot - This person is spending $2,000 plus just to get a dog and set him up.

• Getting Rich is Simpler than You Think - Another of my all-time favorites. To quote: "Here is the single most important thing you will ever hear about investing: Getting rich is simple. And here is the second most important thing you will ever hear about investing: You have no excuse not to do it. Only three ingredients are needed: income, discipline and time."

• Start on Your First $1 Million at Age 16 - Here's a simple recipe to become a millionaire.

Star Money Articles for the Week of Dec. 25

Here are interesting posts and news this week from the MoneyBlogNetwork members and beyond:

• Five Cent Nickel says that a juicy AmEx credit card signup bonus is disappearing soon.

• Blueprint for Financial Prosperity has some thoughts on cutting health care costs.

• Consumerism Commentary is planning his 2007 goals.

• AllFinancialMatters asks what your goals are for 2007.

• MightyBargainHunter discusses investing and crocheting.

• Consumerist says that gift cards are the most popular gift.

Also be sure to check out the MoneyBlogNetwork Forums -- lots of great info on how to grow your blog's revenue!

Enjoy!

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Time, Ice Cream, Money Saving Tip, Erasing Debt, and Good Charities

While I'm on vacation this week, I'll be highlighting some good posts from this week last year. Here are some posts worth sharing from one year ago today:

• Making the Most of Your Time - In my opinion, one of the things more important than money is time, mostly because money is renewable (if you lose it you can get it -- or even more -- back). Once time has passed, it is gone.

• A Holiday Suggestion (and Also a Money Saving Tip) - Here's a reminder for those of you looking for an excuse to ring in the new year by eating ice cream. :-)

• Money Saving Tip: Do Business with Companies that Back up Their Products/Services - When you have a choice, do business with companies that back up their products and services with guarantees, no hassle refunds/exchanges, and/or good customer service. Then when things go wrong -- which they do even with the best of companies and products -- you know that you (and your money) will be taken care of.

• Comments: Yes, You Can Erase 15 Years of Debt in 14 Months; I'm Doing It - "I am 40 and paying off $12,649 of credit cards. It used to be $30,000."

• Choosing the Right Charities - Here are some tips for choosing the right charities for year-end giving.

Free Money Finance Carnival This Week

Here is the carnival Free Money Finance is in this week and my post that was included:

• Carnival of Personal Finance - How to Make Your Child a Millionaire

Stop by this carnival to read some great posts!

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Free Money Finance is brought to you by Mvelopes Personal. Take a tour of Mvelopes Personal, take their Financial Fitness Quiz, get a Free Budgeting E-book or check out their Free Debt Calculator.

Also, please visit our friends at Financial Web and H&R Block -- and tell 'em we sent ya!

Financial Resolutions, Leaving a Widow, Retiring Rich, and Gift Cards

While I'm on vacation this week, I'll be highlighting some good posts from this week last year. Here are some posts worth sharing from one year ago today:

• New Year’s Financial Resolutions You May Want to Consider - Every New Year, millions of people resolve to better their lives. Many pledge to significantly improve their finances. As with other popular resolutions such as stopping smoking or losing weight, the key is to have a plan and stick to it. Try these simple steps to get in shape financially.

• Comments: Financial Resolutions for 2006: Get Spouse Up-to-Date on Finances; Different Perspective - A husband's perspective on how his wife will do financially if he dies.

• How Average Joes Can Retire Rich - One of my favorite posts of all time. "When it comes to the three main choices you have in your retirement account -- how much to contribute, how to allocate your money between stocks and bonds and which funds to choose -- a recent study by Putnam Investments shows that investing prowess isn't what matters. It's how much you sock away."

• Four Tips for Avoiding a Gift-Card Fiasco - What to do with gift cards you receive.

Getting Your Blog to 100,000 Visitors, About FMF, and The Number Review

While I'm on vacation this week, I'll be highlighting some good posts from this week last year. There was nothing to note on the 26th last year (I was off then too), but here are a couple I thought you'd enjoy from last December 27:

• How to Get Your Blog to 100,000 Visitors and Beyond, Step 1; Pick the Right Topic - This series contains most of what I know about blogging and it all starts with this post. Who knew when I wrote it that one year later I'd be ready to write "How to Get Your Blog to 800,000 Visitors and Beyond?" ;-)

• About Free Money Finance - Just a post to highlight "all you need to know about Free Money Finance."

• Review: The Number by Lee Eisenberg - I hated it.

The Christmas Story from Luke 2:15-20

When the angels had left them and gone into heaven, the shepherds said to one another, "Let's go to Bethlehem and see this thing that has happened, which the Lord has told us about." So they hurried off and found Mary and Joseph, and the baby, who was lying in the manger. When they had seen him, they spread the word concerning what had been told them about this child, and all who heard it were amazed at what the shepherds said to them. But Mary treasured up all these things and pondered them in her heart. The shepherds returned, glorifying and praising God for all the things they had heard and seen, which were just as they had been told.

Luke 2:15-20

And a bonus verse for today:

For God so loved the world that he gave his one and only Son, that whoever believes in him shall not perish but have eternal life.

John 3:16

Merry Christmas!

The Christmas Story from Luke 2:12-14

This will be a sign to you: You will find a baby wrapped in cloths and lying in a manger." Suddenly a great company of the heavenly host appeared with the angel, praising God and saying, "Glory to God in the highest, and on earth peace to men on whom his favor rests."

Luke 2:12-14

The Christmas Story from Luke 2:8-11

And there were shepherds living out in the fields nearby, keeping watch over their flocks at night. An angel of the Lord appeared to them, and the glory of the Lord shone around them, and they were terrified. But the angel said to them, "Do not be afraid. I bring you good news of great joy that will be for all the people. Today in the town of David a Savior has been born to you; he is Christ the Lord.

Luke 2:8-11

The Christmas Story from Luke 2:6-7

While they were there, the time came for the baby to be born, and she gave birth to her firstborn, a son. She wrapped him in cloths and placed him in a manger, because there was no room for them in the inn.

Luke 2:6-7

Posts of the Week -- December 22

Here is a list of my favorite posts this week:

• How to Make Your Child a Millionaire

• Top Five 2006 Money Topics on Free Money Finance

• I Opened Up Two College Saving 529 Plans

• The End of Costco's Great Return Policy?

• Why You Need Long-Term Care Insurance

If you're a regular reader of Free Money Finance and enjoy the content here, would you do me a favor and tell three friends? I sure would appreciate it! And if you're not a regular reader, what are you waiting for? You can subscribe easily to Free Money Finance by using this link.

Have a great weekend!
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Free Money Finance is brought to you by Mvelopes Personal. Take a tour of Mvelopes Personal, take their Financial Fitness Quiz, get a Free Budgeting E-book or check out their Free Debt Calculator.

The Free Money Finance bookstore.

Also, please visit our friends at Financial Web and H&R Block -- and tell 'em we sent ya!

A Holiday Suggestion (and Also a Money Saving Tip)

Here's a fun (and tasty!) money saving tip I posted one year ago today. For details, see A Holiday Suggestion (and Also a Money Saving Tip).

Save Money on Prescriptions Buy Bidding on Them

Here's an interesting piece on how to save on drug prescription costs by bidding online for them courtesy of ARA Content:

Americans are paying more and more for their medications, with many seeing double-digit increases or more over the past decade. The changing landscape of brand names, generics and over-the-counter choices is confusing. And health insurance coverage is changing rapidly too. The trend is toward higher co-payments or co-insurance for traditional prescription card programs and consumer-driven health plans with high deductibles, meaning that out-of-pocket expenses are on the rise.

With all of these changes, cost is becoming more of a factor when consumers are ready to fill their prescriptions.

But, where to go to find lower prices and make more informed decisions? One site, BidRx.com, is a free Web site changing the way Americans buy prescription drugs. Just as online travel sites have revolutionized how consumers find inexpensive airfares and hotels online, BidRx.com has created an open and competitive marketplace where consumers can evaluate similar medications, comparison shop between pharmacies, receive electronic coupons for discounts from pharmaceutical companies and ultimately experience savings up to 85 percent or more when they put their prescriptions out for bid so they can compare prices and services from various pharmacies.

Omro Pharmacy of Omro, Wisc., is one of the pharmacies to does business on the site. “As an independent drug store, we’re always looking for ways to serve more customers,” says Ken Bressers, RPh, pharmacist and owner, Omro Pharmacy. “I think it’s really important that BidRx exists. It’s the first real way to find reasonable prescription pricing online. And, with BidRx.com, although we’re in a small town, our pharmacy can reach millions of American consumers and offer them medications at honest prices. That makes us feel good, and it keeps us in business.”

“I first heard about BidRx.com when I was checking a prescription price for my mom. I went to her regular pharmacy to find out their price, which was $26.99. For fun, I checked the same prescription on BidRx.com. I was shocked that the bid came back at only $8.64,” says Nancy Leatherwood, Oshkosh, Wisc. “It was a huge cost savings for my mom, who is on a fixed income. BidRx was so easy, I really recommend it for everyone. I’ll definitely do it again for my mom and for my own prescriptions. I had no idea that there could be such a huge range in medication pricing; it was a real eye-opener.”

If high health care costs are cutting into your family’s bottom line, it’s time to take action by shopping for prescriptions in a whole new way. It’s easy to participate. Visit www.BidRx.com and register on the confidential and secure site to learn more and start saving right away.
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Anyone used this? It's an interesting concept -- kind of like the eBay of prescriptions. Hey, if I could save $18 over and over again, I'd certainly give it a try. And we need more ideas like this to help keep health care costs under control.

That said, I think new ideas in health care like this one will take some time to catch on. People just aren't used to bidding for drugs online yet. ;-)

Five Things You Didn't Know about Me

Ok, I've finally been tagged. Here are five things you don't know about me (and probably don't care about either):

1. My 10-year-old son plays basketball better at his age than I did when I was 15. Of course, I play better now than I did then, too. ;-)

2. In high school I had the leading role in the school play in both my sophomore and senior years.

3. I worked in Washington, D.C. for the federal government one summer as an intern. I got to see President Reagan welcome a dignitary from China to the White House (from a far distance.)

4. I've traveled outside of the U.S. on six occasions -- once after grad school touring Europe, one trip to Aruba on vacation, three vacations in Russia (where we have friends), and a business trip to the U.K.

5. My favorite game is chess, but because I'm so impatient, I usually only play "blitz" -- where a whole game is done in 5-10 minutes.

Here's who I'm tagging -- some of the regular commenters here at Free Money Finance:

1. Dus10 from Rational Cents.

2. Blaine from The First Time Homeowner.

3. SS from Savvy Steward.

4. Jason from Beancounter Blog.

5. TJP from InvestorTrip.

Ten Times You Can't Afford to Skimp

As you all know, I love to save money. But there's something to the adage that "you get what you pay for," especially when it comes to buying items in certain categories. With this thought in mind, I wanted to share with you Money Central's list of ten times you can't afford to skimp:

• Car maintenance.
• Classic clothes.
• Computer memory.
• Family safety.
• Health.
• Internet access.
• Home inspections.
• Mattresses.
• Teenagers' cars.
• When your ethics are at stake.

My thoughts on each of these:

1. Agree -- to a point. You want to keep your car running well, of course, but that doesn't mean you need to spend $40 at a dealership for an oil change. Many places charge $15 or less -- and what's the difference as long as the place is competent?

2. Agree -- to a point. Again, it depends on where you buy them. You can get good, classic clothes at many decent retailers. You don't have to buy everything (or anything for that matter) at a high-end retailer.

3. Yep. It's pretty cheap and without it, your computer can be very limited. Why spend $1,000 on a computer just to have it run slow (or not at all) because of limited memory?

4. Agree. Your family is more important than any amount of money.

5. Agree -- to a point. There's lots you can do to minimize health care costs. So get good care at the best price possible.

6. I think they're stretching on this one. Most people have access at work, so I think home access (or at least speedy home access) isn't really a "must have."

7. Agree 100%. I'm stunned by people who pay $300,000 for a house but won't fork over the few hundred dollars for an inspection. I wouldn't buy a home without one.

8. Don't get me started on beds. I've seen little correlation between high-prices and comfortable bedding.

9. Thank God my kids aren't driving yet.

10. Agree. Nothing is worth compromising your integrity.

FMF on Vacation Next Week

Just a heads up to all Free Money Finance readers that I'll be on vacation from Saturday, December 23 through Tuesday, January 2. I'll still have a couple posts each day (done in advance -- set to pop up every once in awhile), but not anything near my regular frequency. I'll also be a bit out of touch, so if you email me, it may take several days for me to respond.

Save Money on Prescription Drugs by Asking for an Older Pill that Does the Same Thing

Here's a way to save money on your medical expenses -- by asking for an older pill that does the same thing. The details from Money magazine:

If there is no generic version of a brand-name drug you're taking, ask your doctor about a therapeutic substitute or an older drug in the same category. A drug that has been on the market for more than 10 years will almost always have a generic version available.

My experience with doctors is that if you ask, they'll come up with a whole range of viable substitutes. But since most people don't ask, they don't even get to consider the options available to them.

Getting a Pet Listed as a "Stupid Money Move" by Money Central

In Your Stupidest Money Moves, Money Central details letters from readers who made some dumb money mistakes. One of the topics, as you may have guessed from the title of this post, centered on pets. Here are some comments they received from readers regarding the cost of pets:

"Dagro," at 18, spent $1,100 on a dachshund puppy, "not realizing I had no time for him," while attending school. The expensive pup was fortunately taken in by dagro's vet.

"Alaskagurl," by contrast, got a puppy for free -- initially. She left the little darling in her new Toyota 4Runner "while I got a collar, leash, food etc. Came out -- she had chewed through the seatbelts in the back. Completely! That made her a $960 dollar puppy . . . and still counting. Good thing she is such a great dog -- although I still don't take her on many car rides!"

"HW3" is also still counting the cost of the "free" stray kitten that her husband found.

"The kitten needed shots, de-worming, cold treatment, fixing: $600. Soon after fixing, the dumb animal swallows a coin. Surgery: $400. Reasoning: we already paid $600, might as well add $400 instead of putting her to sleep. . . . Add to this, leather furniture ruined by the pre-existing cat."

You can't, of course, put a price on the value of animal companionship, any more than you can predict how much upholstery it will destroy. But an estimate of how much a new pet is likely to cost you can help you decide whether animal husbandry is right for you.

They then detail the average first-year costs of the most popular pets:

The American Society for the Prevention of Cruelty to Animals (ASPCA) offers the following averages, which include food, medical care and various accessories:

• Small bird $195
• Fish $235
• Guinea pig $645
• Cat $715
• Small dog $810
• Rabbit $911
• Medium dog $1,190
• Large dog $1,580

A few thoughts here:

1. I've posted a bunch about the cost of pets. Click the link for details.

2. The basic rule is "the smaller the pet, the cheaper it is." Rabbits seem to be an exception to this rule. Who knew they were so expensive?

3. You can't really get a "cuddly" pet for less than $700. I'm sorry, but birds, fish, and guinea pigs simply don't cut it as cuddly. And only one of them is cute. So if you want to go for "cute and cuddly," be prepared to shell out some bucks.

4. In case you didn't know it, "large dog" is Latin for "college tuition." Do the math. $1,580 at 10% for 18 years is over $72,000.

Star Money Articles for the Week of Dec. 18

Here are interesting posts and news this week from the MoneyBlogNetwork members and beyond:

• MightyBargainHunter notes that occasionally good eBay sellers go bad.

• Five Cent Nickel lists his most talked about topics of 2006.

• Blueprint for Financial Prosperity details his six biggest tax deductions for 2006.

• Consumerism Commentary suggests holding down fees to build wealth.

• AllFinancialMatters asks how much Christmas is going to cost you.

• Canadian Financial Stuff is excited that his car is worth so much.

• Consumerist suggests reducing junk mail by returning it to the sender.

Also be sure to check out the MoneyBlogNetwork Forums -- lots of great info on how to grow your blog's revenue!

Enjoy!

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Free Money Finance is brought to you by Mvelopes Personal. Take a tour of Mvelopes Personal, take their Financial Fitness Quiz, get a Free Budgeting E-book or check out their Free Debt Calculator.

Also, please visit our friends at Financial Web and H&R Block -- and tell 'em we sent ya!

The Christmas Story from Luke 2:1-5

Like I did last year, I'm going to spend the next few days before Christmas telling the Christmas story from the book of Luke. I'll post a bit of it every day until Christmas day. I hope you enjoy it.

In those days Caesar Augustus issued a decree that a census should be taken of the entire Roman world. (This was the first census that took place while Quirinius was governor of Syria.) And everyone went to his own town to register. So Joseph also went up from the town of Nazareth in Galilee to Judea, to Bethlehem the town of David, because he belonged to the house and line of David. He went there to register with Mary, who was pledged to be married to him and was expecting a child.

Luke: 2:1-5

Save on College Expense by Applying for a Ton of Scholarships

In the back of January's issue of Kiplinger's Personal Finance magazine, they profile a young man who completed his college education in one year at the University of Virginia (I wrote about him in Save Money on College by Graduating in One Year!). Not only did he complete college in one year (much of which was due to taking college-level courses in high school and getting credit for them), but he did so while only spending $1,000. He's how he answered the questions regarding how he graduated with only a minimum of expense:

How did you manage that?

My family was short on money, so I applied for about 30 scholarships during my senior year in high school. UVa didn't award me any academic or financial aid, but I won roughly $14,000 in scholarship money, which covered a year's tuition and room and board.

What's your advice for finding scholarships?

I used databases in the guidance counselor's office at my high school. If your high school doesn't have a good database, try another school. And if you find scholarships that may not seem perfectly suited for your qualifications, apply anyway.

This guy is a living college saving expert. Consider what he did to save a bundle on college costs:

1. Took classes in high school that earned him college credit (effectively shortening the amount of time -- and thus cost -- he'd spend in college.)

2. Applied for scholarships like a madman -- putting the law of averages on his side.

It's hard to argue with this strategy. He saved a ton of money and time and is now on to bigger things -- like getting an advanced degree (or two) with a grant that pays all his expenses.

For those of you wanting to read more on saving on college, see Best of Free Money Finance: College and Education Posts. 

Six Tips for Acing Your Year-End Review

Career Journal lists six tips for acing your year-end review as follows:

1. Be prepared.

2. Be sure to share one or two stories that illustrate how you've gone above and beyond the call of duty.

3. Study your weaknesses.

4. During your review meeting, take notes.

5. Keep the conversation focused on yourself, advises Erisa Ojimba at Salary.com.

6. By the end of your review, try to reach some kind of consensus about your overall performance.

Decent tips (not great, mind you). The one I like best is #1. Here it is with details:

Be prepared. Conduct a self-review before you meet with your manager. Be honest with yourself -- evaluate how well you managed your objectives, summarize what you accomplished and give yourself an overall rating. Be sure to include detailed information. Did you save the company time and/or money on a certain project? Determine the numbers. It also helps to create a detailed list of everything you've accomplished since your last review. It's good to have concrete information you can point to when you're meeting with your boss.

This is good advice -- the same I shared regarding interviewing in How to Answer Tricky Interview Questions, Part 1. In that piece, I suggested the following system for interviews:

1. I write down the questions I expect them to ask. My last list was somewhere in the 30-question range.

2. I write out an answer for each question. This takes time and effort as I write them out (really type them on the computer), then edit and re-edit them a few times. I get them to the point where they are short yet packed with examples from past work experiences that highlight my points and make the interviewer salivate at the thought of hiring me.

3. I also add some questions I have for them. Don't think you can just come up with these on the spur of the moment. Instead, think about them in advance, then write them down.

4. I rehearse the answers to the interview questions over and over until I can deliver them flawlessly. I concentrate on hitting all the main points as well as making sure that the answers sound new/fresh/unrehearsed. You can only get to this point after going over them again and again. I usually review them once a day for two weeks prior to the interview.

I have personal experience doing this and I know it works like a charm. I go in knowing that I have great answers to almost anything they ask and as such I'm more confident, relaxed, and prepared (especially compared to the competition). Using this method, I've ALWAYS gotten a second set of interviews and have had a job offer all but one time (and then only when I was interviewing for a spot that I was under-qualified for). Try it for yourself and you'll see what I mean.

The same can be done for job reviews. List your accomplishments, write down a succinct description of each of them, then rehearse how you're going to deliver them.

Why all the time and preparation for a "simple" performance review? Well, it's because your career is your most valuable financial asset, and you need to actively manage it to help achieve its full potential. Doing this well can earn you millions of dollars in extra income throughout your lifetime.

Besides, once you look at all you've accomplished, you might feel like it's time to ask for a raise. ;-)

Why You Need Long-Term Care Insurance

Here are some thoughts from the wonderful book The Bogleheads' Guide to Investing (I LOVED the book -- see my rating for details) on way people need long-term care insurance:

Five out of 1,000 people will experience a house fire: average cost, $3,400. Seventy out of 1,000 people will have an auto accident: average cost, $3,000. Six hundred out of 1,000 people will require a nursing home stay: average cost, $50,000 per year, with an average stay of three to five years.

Sounds like there are some pretty good facts on why we all (eventually) need long-term care insurance, huh? It's more likely that we'll need it and it's very, very expensive if we don't. Kind of reminds me of disability insurance as it also is more likely than other forms of insurance to be used and can be costly if you don't have it.

For more thoughts on long-term care insurance, see Why You Need Long-Term Care Insurance and Six Steps to Buying a Long-Term Care Insurance Policy.

For more tips on getting and saving on insurance, see Best of Free Money Finance: Insurance Posts.

Saving Money on Food, Part 3

I realize that my post titled 301 Saving Money Posts -- Hundreds of Ideas on How to Save Money was a bit like taking a drink out of a fire hydrant -- it can get pretty over-whelming to look at all those money saving tips at once. As such, I decided to post sub-sections of that list every once in awhile so you can look at all the money saving posts I have on one particular topic (a much more manageable task.) Today I'm listing ways to save money on food. Here goes:

• Shop for Groceries Once Every Other Week

• Shop on a Full Stomach

• Seven Ways to Eat for Free

• Skip Dessert when Eating Out

• Stop Drinking Bottled Water

• Two Good Money Saving Tips on How to Save While Eating Out

• Use a List when Grocery Shopping

• Use Your Freezer

Financial Planning for Young Families: Start Now

Here's some financial advice for young families courtesy of ARA Content:

You’re young, just married and dreaming big. First child. First home. Young families have much to plan for. Planning for financial security should be high on your to-do lists.

And when planning for a financially secure future, you should begin with your needs, including:

• You need to be sure your loved ones will be taken care of.
• You need to protect your income.
• You need to save for your children’s education.
• You need to build wealth for your retirement.

“Three key types of insurance offer the financial protection young families need,” said Mutual of Omaha Vice President Andy Hutchison. “Life, disability and critical illness insurance can be combined to deliver comprehensive coverage for whatever life brings.”

Life insurance can be whole, universal, variable or term. Whole life builds savings and provides a death benefit. Universal life pays a death benefit and builds savings tied to interest rate changes. Variable life is investment-oriented, varying in both cost and benefit according to how the policy’s investments perform. Term life, which is the least expensive life insurance for the young, has no savings component and provides protection for a specified period of time.

Disability insurance is the only kind of insurance that provides protection for your income. If you became unable to work because of sickness or injury, how would you pay your bills? Disability insurance provides a bridge over times of trouble. This insurance can be designed to cover a significant portion of your monthly income (generally 60 percent) and benefits can be timed to begin according to need. Disability policies also can continue to pay benefits during rehabilitation, job retraining and part-time employment.

Critical illness insurance pays a cash benefit to a policyholder diagnosed with one of several covered illnesses, such as cancer, heart attack or stroke. There’s no waiting period and – unlike traditional health insurance – a critical illness policy pays directly to the insured. It’s money you can use any way you want, right when you need it most.

Mutual of Omaha’s Hutchison said young families should periodically re-evaluate their insurance protection as their responsibilities change over time.

“Choose a financially strong insurance company and an insurance sales professional who is committed to helping you make your dreams come true,” he advised. “The ultimate value of any policy depends on the company and the people behind it.”

For more information, visit www.mutualofomaha.com.
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My thoughts:

1. On life insurance, I'm a believer in buying term and investing the difference.

2. Everyone who earns a wage that his/her family depends on needs to have disability insurance.

3. I've never heard of "critical illness insurance" and am leery of it as a result. Anyone else have any thoughts on this type of insurance and whether or not it's needed?

4. This piece is heavily insurance focused, but my advice for young families (or anyone for that matter) is to follow The 10 Best Money Moves You Can Make.

Save Money on Prescription Drugs by Shopping Mom and Pop Stores

Here's a way to save money on your medical expenses -- by shopping mom and pop stores for your prescription drugs. The details from Money magazine:

The federal government doesn't regulate prices on drugs sold at pharmacies, so your costs can vary widely depending on where you buy. In New York City, for example, the price for 30 tablets of the widely prescribed antidepressant Paxil recently ranged from $97 to $180 at various stores. Call a sampling of pharmacies in your area. The best prices are often found not only at discounters like Costco and Wal-Mart but also at drugstores that aren't part of a chain, says University of Maryland School of Pharmacy professor Bruce Stuart. "They have full authority to set their own rates because they own the place," he adds.

I do not do this, but maybe I should. We simply use the drug store that's most convenient to our house. After all, why drive across town to a Costco to save a couple bucks? I guess it helps that we don't buy prescription drugs that often. If we did, It probably would be worth shopping around.

Free Money Finance Carnivals This Week

Here are the carnivals Free Money Finance is in this week and my posts that were included:

• Carnival of Investing - Why You Shouldn't Listen to the Financial Media (and What They Don't Want You to Know)

• Carnival of Personal Finance - Why You Shouldn't Listen to the Financial Media (and What They Don't Want You to Know)

Stop by these carnivals to read some great posts!

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Full-Service vs. Discount Brokers

Here's a piece from the Motley Fool that describes the differences between full-service and discount brokers. First they detail what full-service brokers offer:

Full-service brokerages traditionally offer everything from stocks and bonds to annuities and insurance. As their brokers profit largely from commissions, they're sometimes motivated to encourage a lot of buying and selling that may not be in your best interest. Other times, they might just toss your money into a mutual fund and forget about it. There are many good brokers at full-service brokerages, though, who keep your best interests in mind and do a bang-up job for their clients. If you're taking the full-service route, you simply need to determine just how good a job your broker is doing for you, and if the cost is worth it. If you have a broker you like who's doing well for you, sticking with her might be a good idea.

As you might imagine, I'm not a big fan of full-service brokers -- too much cost for too little reward in my opinion. And since I invest mostly in index funds, why would I need one?

Here's their description of discount brokers:

Discount brokerages have traditionally offered a narrower range of services, but they've been adding significantly to this range in recent years. Indeed, the distinction between full-service and discount brokers is much murkier than it was just five years ago. Today, many discounters offer mutual funds, banking services (such as checking accounts), IRAs, mortgages, and more. Some even offer fee-based portfolio consultation and investment advisor services for wealthier clients. Others offer research reports and stock analysis. Discount brokerages compensate their brokers mainly with salaries, not commissions, making their money through high-volume trading.

This is more to my liking. When I want to make a trade, I simply want to buy the stock I want and to do so quickly at a great price. I don't need any other kind of assistance. This is why I prefer discount brokers and have accounts set up with a couple of them.

IRS Working to Make 1040's Simpler

Here's some good news for those of you who file your own income taxes using Form 1040 -- the IRS is working to make the form simpler. The details:

"What we are shooting for is a form that is simpler and easier to use for taxpayers," said Lemons, confirming mentions of the anticipated revision in a recent Government Accountability Office audit and a report by Tax Analysts, a non-profit organization that tracks tax issues.

As envisioned by the IRS, an as-yet-undetermined number of less-frequently used lines dealing with adjustments to income, credits, taxes and payments would be removed from the cover page of Form 1040 and relocated to a new Schedule O. That would simplify the current 77-line form, and free up space for any future tax reporting changes that could conceivably be approved by Congress and the White House.

Well, it's good to see the IRS is trying to make things a bit easier. This doesn't really impact me since I use a CPA to do my taxes. Then again, maybe it will take her less time to complete the forms and save me a bit of money (I doubt it.)

For those of you who want some more thoughts on taxes, check out Best of Free Money Finance: Tax Posts.

Three Key Rules for Being Properly Insured

Here are some thoughts from the wonderful book The Bogleheads' Guide to Investing (I LOVED the book -- see my rating for details) on three key rules for being properly insured:

1. Only insure against the big catastrophes and disasters that you can't afford to pay for out of pocket. The cheapest insurance is self-insurance.

2. Carry the largest possible deductibles you can afford. The larger the deductible, the more you are self-insuring and the cheaper the premium will be.

3. Only buy coverage from the best-rated insurance companies. You need insurance companies you can depend on when you need to file a claim.

These three pretty much sum up my thoughts on insurance and how I handle insurance personally. The one thing I would add is that in order to have high-deductible insurance, you need a bit higher-than-average emergency fund -- just in case you need to cover the deductible in the event of a major disaster.

For more tips on getting and saving on insurance, see Best of Free Money Finance: Insurance Posts.

Save Money on Prescription Drugs by Getting Free Samples

Here's a way to save money on your medical expenses -- by getting free drug samples from your doctor. The details from Money magazine:

Drug companies give away tons of samples to physicians, so your doctor may be able to supply you with several weeks' worth of medication at no charge.

My wife does this all the time -- especially for kids' items to fight a cold, etc. Works like a dream.

By the way, the same tip works with your vet too. You can save a ton on Fido's drug costs by asking for free samples there too.

FMF on Vacation Next Week

Just a heads up to all Free Money Finance readers that I'll be on vacation from Saturday, December 23 through Tuesday, January 2. I'll still have a couple posts each day (done in advance -- set to pop up every once in awhile), but not anything near my regular frequency. I'll also be a bit out of touch, so if you email me, it may take several days for me to respond.

A High-Tech Way to Save on Health Care Costs

Here's a piece on how some people are using technology to save on health care costs courtesy of ARA Content:

The cost of healthcare in the United States has reached all-time highs. Individuals without health insurance coverage find themselves putting off a trip to the doctor to save money. Even consumers lucky enough to have health coverage are feeling the pinch.

Insurance co-pays continue to rise, and many companies are switching to health savings accounts, where employees put money into an account they can use to cover medical expenses. More and more, it pays to know the cost of your medical care before you head to the doctor.

Allison Scott has created a Web site that makes it easy for consumers to go directly to medical providers to get answers before they ever head to the doctor’s office. “I wanted to find a way to help patients make more educated healthcare decisions,” she says.

The Web site, Alijor.com, puts users in touch with doctors in their community. Individuals can post information about their condition, as well as other pertinent details on the site. Doctors can then respond with detailed information about their costs and services. The site is a convenient, hassle-free way for patients to find healthcare providers. Alijor.com also makes it easy for providers to find and communicate with patients they can assist.

“As health care costs rise, doctors are spending less time with each patient in the doctor’s office,” notes Scott. “On the Web site, patients can go into as much detail as they like about their problem, there’s no need to rush through the process.”

It takes less than 10 minutes to register on the site, and the process is completely confidential. Consumers choose a username and provide their ZIP code, but no other personal information is required. The site walks users through a questionnaire including information such as whether the patient will be paying cash or billing through insurance, how far the patient is willing to travel and the best days and times for appointments.

Once that information is provided, the patient describes their condition or the service they’re looking for. The request will be posted on the site for 14 days and doctors in the patient’s geographic area reply directly to them. Over 800 providers are currently part of the Alijor Web site. “The responses from the healthcare providers can give patients options they may not have considered, such as seeing a chiropractor instead of an orthopedic surgeon for a back problem or an acupuncturist instead of a neurologist for headaches,” says Scott.

Patients can also read profiles of the healthcare providers that highlight their background and experience. This information is helpful in making an informed decision. Another helpful tool on the site is feedback from other members who have used healthcare providers they found at Alijor. “Members can hear about previous patients’ experiences with a provider, as well as share information about similar symptoms or needs,” says Scott.

Take control of your healthcare costs. To create your personal profile and find a healthcare provider, visit www.Alijor.com.
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We're going to need to get more and more creative in the battle against health care costs. Otherwise, they're just going to keep going out of site. Ideas like this seem to be a step in the right direction and I expect to see more and more of them pop up in the years to come (though I also think there will be a process of adoption -- that it will take some time for people to latch on to new concepts like this one.)

The Five Signs of Bad Financial Advice

Here's a list of five signs of bad financial advice from Suze Orman:

1. You own a mutual fund with the letter "B" in its name.

2. You pay the advisor through commissions rather than a flat rate.

3. Your life insurance is a cash-value policy.

4. You own a variable annuity inside of an IRA.

5. You're saving for your kid's college education rather than for your retirement.

Oh, yeah! I'm TOTALLY with her on these!

None of these apply to me, but I know several people who have one (or several) of them that they're dealing with. Probably the most common one is #3. Yeah, I know I'll get comments on how great a tool cash-value insurance is, how it is the perfect solution to financial issues in certain situations, and on and on. But for me (and for most people) the right decision is to buy term and invest the difference.

The piece ends with some advice from Suze that I also agree 100% with. Here it is:

Take the time to become educated about your finances so you can make your own informed choices rather than relying on someone else. At the end of the day, no one will ever care about your money more than you. You're your own best financial advisor.

Well said!

The End of Costco's Great Return Policy?

I've written several times how much I love Costco. For reference, see the following posts:

• How I Bought New Tires for My SUV

• Smoothie Product Face-Off: Dunkin' Donuts versus Costco

• Costco versus Walmart, Round 2

• Money Saving Tip: Shop on a Full Stomach

• Great Buy at Costco

• Why Costco Is All Pumped Up

• Money Saving Tip: Excellent Presents from Costco

Much of my affinity for the company is its return policy -- you can bring back almost anything at almost anytime and they'll give your money back. It's great to know that if you make a purchase and don't like it, you can take it back with no hassles. It makes buying things at Costco very easy.

But now there are rumors that Costco is thinking of making its return policy stricter. All I can say to this is, "Say it ain't so, Costco."

The rumor says they are considering it because of "abuse." But it seems like they'd lose much more from people shopping/buying less from them because of a policy change that they ever could from "abuse."

I hope they don't change the policy and it hasn't been confirmed yet (as far as I know.) But if they do, it may make buying those higher-end items from Costco a bit less of a no-brainer.

How to Get a Tax Refund Owed to You

In Does the IRS Owe You Money? I asked if you may be owed a refund from the IRS (believe it or not, there are a lot of unclaimed refunds out there.) In this post, I'm going to give you a quick tip on how to get a tax refund if you find out they owe you one:

Just visit www.irs.gov and use the "Where's My Refund" tool linked on the home page. You'll have to enter your Social Security number (don't worry, it's a secure site), along with your filing stats and the refund amount submitted on your 2005 tax return. You'll get a display showing the status of your refund.

If there's a problem with your account (like a bad address), you'll receive instructions on how to resolve the issue. If you'd rather not share your personal info over the Internet, use the phone version of "Where's My Refund." Just call 1-800-829-1954.

Pretty simple, huh? And with the average refund owed being $871, it's certainly worth your time and effort to get the money owed to you.

A Couple New Categories for 2007

I don't have a ton of new categories/series planned for 2007 already. I know several will pop up as the year progresses, and that's the way I prefer it -- to write as things come to me. But there are two new areas I'm going to be adding in 2007:

• Net Worth Review - Each month I'll be detailing what happened to my net worth (up, down, flat) and why (stock market impact, saved more, earned more, etc.) You'll get to follow how well I'm doing as well as how I'm doing it.

• Best of FMF - This is already a category here, but in the past I've used it to link to several articles at one time (see Best of Free Money Finance as an example.) In 2007 I'll be expanding this category by picking articles I've written in the past and re-commenting on them to bring them to the fore-front. I've cranked out 5-6 posts a day for almost two years now, so I think I can find a handful of articles that are worth re-visiting. ;-)

Want an example of great articles I'll profile under this latter category? Check out these:

• 10 Nasty Money Habits to Kick - I like this one because it's simple, practical, covers many different topic areas and gives the reader many different posts to click on and learn more about money topics they have an interest in. It also gets in several of my thoughts on these issues and I'm partial to that. ;-)

• Getting Rich is Simpler than You Think - This post has simple, tried-and-true financial principles that allow anyone to grow their net worth. I've applied them in my own life, and they are serving me well.

• Poverty to Prosperity - A post that's fundamental to what I talk about here at Free Money Finance: there are simple, basic, money steps everyone can take that will make their net worth grow tremendously if they do them over a long period of time.

• What Do You Splurge On? - Obviously this post connected with many readers as evidenced by the large number of comments. I also like it because it's not something you read about much on personal finance blogs (spending money on fun stuff). Besides, I get to talk about cycling. ;-)

I hope you tune in to check these out!

I Opened Up Two College Saving 529 Plans

As I noted in a couple recent posts, we set our college savings number, but I still needed to pick a 529 plan (FYI, we already have Coverdells for each child, but now we're getting serious with our saving) and open one up for each of my kids. Last week I did the research, and last weekend I made the investments.

Basically, when deciding on what 529 to choose, you have to determine whether the plan in your state offers any benefits versus any other plans (many times, state plans will give tax breaks for residents.) If your state plan is a good one (low cost, good investment options, and nice tax breaks), then it's usually a no-brainer to go with it. However, if it's a so-so plan, you'll need to compare it to others across the country to see which is best for you.

So I took two simple steps. Here's what I did:

• I went to Saving for College to check out reviews for my state's (Michigan) plan as well as review other good plans from other states.

• I got online to see what others were saying about the various plans. I considered The Best and Worst 529 Savings Plans, Best 529 Plans, and The Best And Worst 529 Plans.

Lucky for me, all of the articles as well as the Saving for College website rated the plan for my state among the best in the country. It has low fees, a good set of investment options, decent investment flexibility and good shareholder relations. In addition, the plan allows Michigan residents to deduct contributions up to $10,000 for a joint return off their state income tax. So, by saving in the Michigan Education Savings Program, I not only get a great plan, but (by my calculations) will also save almost $400 of my taxes this year. Not bad at all!!!!

FINALLY, there's an advantage to living in Michigan!!! I've been searching for one for seven years, and now I found it!!! ;-)

Ok, long-time Michigan lovers, don't send me any hate mail -- I'm just kidding (mostly.) Michigan is a nice place to live. It's just that at this time of the year I start to long for Tennessee. The weather is MUCH nicer there, especially in the December-March time frame.

For those of you wanting to read a bit more on saving on and for college, check out Best of Free Money Finance: College and Education Posts.

Save Money on Drugs by Splitting Your Pills

Here's a way to save money on your medical expenses -- by splitting your prescription pills. The details from Money magazine:

High-dose pills are generally priced the same as their low-dose counterparts, so ask your doctor if you can safely split a higher-dosage pill in half. You'll save about $179 to $610 a year per prescription if you don't have drug coverage or 50% on your co-pays if you do.

I know this should go without saying, but I'll say it anyway: if you split your pills, be sure you're still getting the right dosage. As the tip says, be sure to check with your doctor before you split any medication.

Saving Money on Food, Part 2

I realize that my post titled 301 Saving Money Posts -- Hundreds of Ideas on How to Save Money was a bit like taking a drink out of a fire hydrant -- it can get pretty over-whelming to look at all those money saving tips at once. As such, I decided to post sub-sections of that list every once in awhile so you can look at all the money saving posts I have on one particular topic (a much more manageable task.) Today I'm listing ways to save money on food. Here goes:

• Have a Picnic

• How to Get Free Krispy Kreme Doughnuts

• Money Saving Tips for Grocery Shopping

• Save a Fortune on Coffee and Soda

• Save Money by Clipping Coupons (Why You Should Buy the Sunday Paper)

• Save Money on Food

• Save Money on Grocery Store Food Purchases

• Save Money on Higher Cereal Prices (50% or More)

• Save on Eating Out

• Shave $150 a Week off Your Grocery Food Bill

10 New Years Money Resolutions, Part 1

Here's a piece I posted (almost) one year ago today that's worth reviewing. It's the start of a series listing key money steps to take in the new year -- and they're fairly standard, so what worked for 2006 will also work for 2007. To get the details, see 10 New Years Money Resolutions, Part 1.

Save Money on Drugs by Ordering by Mail

Here's a way to save money on your medical expenses -- by ordering your prescription drugs by mail. The details from Money magazine:

Call your drug insurer, a.k.a. your pharmacy benefits manager, and ask if you can order your prescriptions directly from the plan. Typically you will save 15% to 35% on your monthly co-payments at the pharmacy, or nearly $90 a year on the average prescription.

Not a bad savings. Plus, there's an extra benefit -- you don't have to go out and pick up your drugs, they come to you. Certainly that's worth something, huh?

FMF on Vacation Next Week

Just a heads up to all Free Money Finance readers that I'll be on vacation from Saturday, December 23 through Tuesday, January 2. I'll still have a couple posts each day (done in advance -- set to pop up every once in awhile), but not anything near my regular frequency. I'll also be a bit out of touch, so if you email me, it may take several days for me to respond.

How to Sell Your House in a Buyer's Market

It's been awhile since I've talked about the lowly housing market, slowing housing sales and the like, so I thought it was about time to bring up the subject again, but this time from a how-to perspective. Specifically, I'm going to share Smart Money's suggestions for how to sell your house in a buyer's market:

1. Tempt the buyer or the buyer's broker

2. Stage your house

3. Throw a party

4. Do your homework

5. Rent it out

This is similar advice to what I saw in December's issue of Money magazine (their #2 and #3 tips are the same as Smart Money's #2 and #5 tips above.). Their best suggestion was to "price your house like a buyer" if you wanted to sell it (in other words, don't list a place for $299,000 when similar houses in the same neighborhood are selling at $249,000.) Their thoughts on this issue in particular:

The reason so many people are stuck with a house they can't sell is that they haven't priced it right. Most of us grow attached to our home, and good memories and ego can distort how much we think it's worth. Go to open houses of similar properties in your neighborhood and decide how much you'd pay. Then list yours for that price. You may know that your house is better for entertaining, but that won't get a buyer to pay more. That's knowledge you gained only after living there. Forget about charging more than a neighbor because you have a new kitchen. "These days upgrades will get your house sold, but they won't get you any more money," says Lars Fahlberg of Prudential California Realty.

My thoughts on this subject:

1. I am amazed at how much people think their home is worth. We get fliers of homes for sale in our neighborhood all the time, and I'm familiar with many of the homes. They are similar to ours, but are asking $20,000 to $50,000 more than the price I'd ever ask for our house. Is it any wonder their house sits for months? (I have a house two doors done from mine that's been for sale for six months or so now because the owner is in la-la land on what he thinks he can get for the place.)

2. In addition to the emotional issue, I think many people price their homes at what they'd LIKE to get out of them or what they NEED to get out of them. The former is simply someone wanting a certain amount of money for their home. The latter (which is common) happens because people buy a house they can't afford (instead of using my formula for buying a house), finance it with an evil home loan, then find themselves in a net loss position because of having to pay selling costs when they move. So they price their home higher to cover these costs (and maybe to help them pay for their new house.) Neither of these have anything to do with what the market will bear or with what a buyer is willing to pay.

3. We keep our home about $20,000 below its fair market value in Quicken when we compute our net worth. This way, we're protected a bit against downward market pressure as well as selling costs.

Three Common Insurance Mistakes

Here are some thoughts from the wonderful book The Bogleheads' Guide to Investing (I LOVED the book -- see my rating for details) on three common insurance mistakes:

People tend to make three types of insurance mistakes:

1. Insuring the unimportant while ignoring the critical.
2. Insuring based on the odds of misfortune.
3. Insuring against specific, narrow circumstances.

The book details what it means by each of these, but let me give you an example for each insurance mistake:

1. Buying life insurance with no dependents but not buying disability insurance.

2. Not buying life insurance because everyone in your family has lived to a ripe, old age.

3. Flight insurance.

Personally, I insure for big disasters/accidents (homeowner's, car), loss of income (life, disability), and potential big-cost events (umbrella.) I ignore the minor (and usually very expensive) insurance options.

For more tips on getting and saving on insurance, see Best of Free Money Finance: Insurance Posts.

Top Five 2006 Money Topics on Free Money Finance

Last year I did a countdown of my top money tips of 2005. I was going to skip doing one for 2006, but was then enticed by ProBlogger's latest group writing project. As such, I give you the top five topics discussed here on Free Money Finance in 2006 (in countdown order):

#5 The Bible and Money

This was my first full year of writing on this subject (every Sunday) and it has developed quite a following. As you can imagine, the issue of religion and money is a "hot" one, and my post on this subject each week is one of my most commented on every single week. A few posts from this past year that I especially like are:

• Pay Yourself Second

• Does God Want You To Be Rich?

• Tithe or Pay Off Debt -- Which One Should You Do First?

#4 Investing

I write about this topic every week, though it's not about what most people imagine. I tend to focus on simple, easy-to-understand and apply methods of investing that earn good results -- like investing in index funds. I certainly don't cover "hot stock tips" and the like. A few of my favorites this past year:

• Why I Like Index Funds (Updated)

• Costs Matter If You Want to Maximize Investment Returns

• Some People Think a 100% Return on Your Investment Isn't Enough

#3 Career

This was a hot topic for the first few months of 2006 where I wrote about it almost every day. Since then, I hit it once a week or so, but it's still extremely important. As I always say: "Your career is your most valuable financial asset, offering you many financial benefits. You can make the most of it by getting a college degree and managing your career to its full potential. Doing this well can earn you millions of dollars in extra income throughout your lifetime." A few of my favorite posts from this category include:

• More Education Equals More Pay

• What is a Job You Love Worth?

• How to Know When It's Time to Quit Your Job

#2 Spend Less Than You Earn

Probably my favorite topic of all time (certainly the best piece of advice I could give anyone), this category will likely always be in my top five as long as I'm writing Free Money Finance. A few top posts of note:

• Spending Less Versus Earning More: Which is More Important to Financial Success?

• Secrets of the Wealthy: Five Lessons from the Rich

• It's Not What You Make, It's What You Spend, Part 437

#1 Saving Money

Even I didn't realize how many posts I'd written on saving money until I complied them all for 301 Saving Money Posts -- Hundreds of Ideas on How to Save Money, so there's no doubt that it's been my "topic of the year." Some saving money posts from 2006 for your review:

• Move, Save Money, Become a Multiple Millionaire -- All in One Step

• Save 30% or More on Antiques and Collectibles at Estate Sales

• Smoking is Costing You a Fortune

How to Make Your Child a Millionaire

Here's an interesting piece from Money Central on how to make your child a millionaire. The details:

A newborn has nothing but time -- and that's something this strategy exploits to the fullest. Let's say a 30-year-old manages to save up and then invest a lump sum of $10,000. At an annual return of 8%, by the time she's 65, that $10,000 will have grown to nearly $150,000. Not bad, right?

But then compare it to what a 5-year-old could make from the same $10,000. The extra 25 years of growth would give him over $1 million by age 65. A newborn would need just $6,700, less than the cost of a decent used car.

This is all about the power of compounding, folks. Take some money and a lot of time and you can become very, very wealthy. It's just the formula I detailed in How to Get Rich in Three Easy Steps.

That said, I'm still constantly amazed by the power of compounding and how much of a difference it can make. I'm just starting to see some really big benefits from compounding personally as my portfolio is now in a position where compounding is really kicking in. It's a nice friend to have on your side. ;-)

The article goes on to highlight what kids at various ages need to invest in order to be millionaires by age 65. It gives three alternatives: a lump-sum investment, a monthly investment until age 18, and a monthly investment until age 65. Here are the results for the various age levels:

Newborn

• Lump sum invested now to be a millionaire at 65: $6,721
• Monthly contribution until age 18 to become a millionaire at 65: $56
• Monthly contribution until age 65 to become a millionaire at 65: $38

Age 5

• Lump sum invested now to be a millionaire at 65: $9,875
• Monthly contribution until age 18 to become a millionaire at 65: $98
• Monthly contribution until age 65 to become a millionaire at 65: $57

Age 10

• Lump sum invested now to be a millionaire at 65: $14,511
• Monthly contribution until age 18 to become a millionaire at 65: $200
• Monthly contribution until age 65 to become a millionaire at 65: $85

Age 15

• Lump sum invested now to be a millionaire at 65: $21,321
• Monthly contribution until age 18 to become a millionaire at 65: $662
• Monthly contribution until age 65 to become a millionaire at 65: $127

Very, very, very interesting -- and compelling -- information. Imagine socking away $6,721 when your child is born, knowing he/she would be a millionaire at age 65. I know, $1 million would not be worth as much then as now, but it still would be a decent amount for such a small initial investment. Besides, what if instead of $6,721, you set aside $20,000? Or $30,000? That's when the pot at 65 would be REALLY big money!

Make the Most of Your Giving

If you're like me, you want to see the most good possible being done with the money you donate to charity. But how do you make sure the organization is worthwhile and is using your money to get the most out of it? Here's a thought from Money magazine on some financial numbers that can guide you in the right direction when selecting a charity:

To be confident that the charity will spend your gift wisely, check the financials. At a minimum, 65 percent of expenses should go toward programs, not fund raising and overhead. If you can't get that figure from the charity, download its Form 990 tax return at guidestar.org or turn to an outside expert.

Personally, I recommend Charity Navigator if you want to check details on a charity. I find it easy to use, simple to search, and full of the right type of data in an easily readable format.