How to Reduce Your Auto Insurance Costs

October 25, 2016

You can only imagine all of the crazy scenarios that go on in your brain when you have had two car accidents in under six months. Unfortunately, these scenarios led me to getting practically every auto insurance option available when we bought our cars. Needless to say, I think I went a little overboard, which of course I figured out when I saw my first auto insurance premium bill. If you find that your auto insurance is higher than you would like, consider pairing down by doing the following:

Shop around: Do not assume that the policy you have is the best you can get. First, contact your current insurance company and ask for discounts for things like: multiple vehicles and good driving records to name a few. Consider getting all of your policies (home, renters, cars) from the same insurer to help reduce costs. Next, review websites to help you evaluate various auto insurance companies and consider using sites like Esurance, NerdWallet or The Zebra to help you price auto coverage.

Deductibles: In general, the easiest way to reduce your premiums is to increase your deductible. Typically, the more you have to pay out-of-pocket, the cheaper the policy. A rule of thumb is to choose a deductible amount you can easily pay if needed or allocate a portion of your savings to cover the deductible you choose.

Dump unnecessary coverage: Collision insurance covers physical damage to your car if you collide with an object (car or tree) and comprehensive insurance covers other damages like a flood, theft and fire. A rule of thumb is to consider dropping full coverage when the annual cost for the insurance is more than 10% of the actual cash value of your car. If you decide to drop coverage, consider creating a “car budget” to cover the cost of repairs and a newer vehicle.

Ultimately, I ended up increasing my deductible to an amount that I can afford to pay out-of-pocket and I dropped comprehensive coverage on one of the older vehicles we purchased, which lowered my overall premium. Consider annually scheduling a time to review all of your insurance policies. You can use your birthday or you can use your open enrollment period as a time to not only review your benefits at work but to review your auto insurance policies as well. Taking a few hours to review your policy can help you save money that can go towards other goals like paying off debt, building an emergency savings and saving for college.

5 Great Ways to Have a Spring Staycation

March 22, 2016

Spring is in the air and if you are like me, you are thinking about what to do with your kids during the season. For many, it is taking time off to spend quality time with your family. You start to think about beach trips or a trip to Disney. Then a cold dose of reality hit. For me, it is my family’s commitment to our financial goals and for others it may be the knowledge that if you have to finance your vacation then you probably should think twice about taking the vacation.

If you find that traveling away from home for spring break is not in the cards for you, never fear. The staycation is here. You can have a great vacation, full of relaxation and family bonding.

The key is to make it as much like a family getaway as possible. Have some ground rules for your staycation: no smartphones (or limited use), no tablets (my eleven year old nearly died), limited television, no working from home, and no cooking, cleaning or laundry. (I fought for those.) Remember, the only thing your kids really want is uninterrupted time with you. How it happens does not really matter to them.

Before you begin, come up with a budget. Although staycations are typically cheaper, the costs can add up quickly without the boundary of a budget. Below are 5 ideas on cost effective staycation ideas:

Discount sites. Use online discount websites like Groupon or Living Social for discounts on local activities like roller skating, fairs and plays.

The library. Visit your local library to learn about free events like puppet shows or movies. Some libraries offer free passes to zoos and museums. At our library, you can also check out parking passes to national parks.

Picnic in the park. Have fun with it. You can get kites at a dollar store. You can also get a bucket, fill it with dishwasher liquid and make huge bubbles. Our kids loved it (and so did we). Check your local area for free movies in the park or free music and bring popcorn.

Movies. If you live near a discounted movie theater, take the family to go see a favorite movie you missed or a favorite movie the kids would like to see again. Many discount movie theater have ½ off nights.

Camping outdoors or under the table. Surprisingly, this was my kids’ favorite activity. We got popcorn and told ghost stories. You can even grill out.

Spring break doesn’t have to mean debt. You can have a family vacation that won’t follow you in credit card charges for the next 6 months. Taking the time to do a little bit of research to unearth staycation ideas can create a vacation your kids will remember for years.

Who Consumers Really Need to Protect Themselves From

March 10, 2016

This week is National Consumer Protection Week so you might have been hearing a lot about how to protect yourself from fraud, scams, identity theft, etc. This is important information but the reality is that the biggest threat to us as consumers is staring at us in the mirror. Here are some ways we sabotage ourselves and what we can do to protect ourselves: Continue reading “Who Consumers Really Need to Protect Themselves From”

How To Talk To Twenty-Somethings About Money

September 22, 2015

I recently was having a conversation with my niece and nephew about their future again. Have you ever tried to have a meaningful conversation with a 20 and 22 year old about finances? After about 5 minutes into the conversation, I could still see their physical bodies but I knew their minds were on another planet. So after what was a 5 minute conversation to me but probably felt like a 3 hour lecture to them, I stopped. Then I asked what it is that I was saying that rendered them brain dead. Continue reading “How To Talk To Twenty-Somethings About Money”

Why I’m Still Sticking With Cash

February 20, 2015

I recently read an article in the Delta Sky magazine that talked about the future of how we pay for things. The author summarized that cash and credit cards will soon be as obsolete as encyclopedia sets, 8-track players and typewriters. His opinion is that new mobile technology such as Apple Pay or Google Wallet will be the preferred way to buy our groceries, gasoline and everything else because it will be more convenient and safer. In fact, an article in Business Insider points out that U.S. consumers are using cash less than debit and credit cards for the first time. So, will cash go the way of the typewriter?

While new technology is exciting and can help make our lives more efficient, it can also create new problems. For example, smartphones can keep us connected, but we now live in a world that feels impersonal and forever noisy. I appreciate convenience as much as the next person, but I’m not convinced that giving up cash will make life that much easier. Here’s why:

Cash is tangible. Many people prefer cash because they can touch it, hold it, and see it. It is the easiest way to understand how money works and still helps many live within their means. The envelop method of budgeting is based on the principle of putting cash into physical envelopes for different categories. It may be old school, but it works because when the cash is gone – it’s gone.
Cash doesn’t need electricity. I remember when a nasty storm blew through town a few years back and brought the area to its knees. The wind and ice took out the power and/or telephone lines in most of the city for almost a week. As power and phone service were brought back on, it was clear that cash was king. Many businesses had generators to power the basics but only accepted cash. Most banks were closed so no ATM. My father taught me to always have cash on me but over time, I grew lazy and reliant on using my debit card. After living through that storm and lack of electricity, I now keep cash on me at all times!
Cash can earn you discounts. Credit card companies like Visa, American Express and Discover charge merchants up to 3% on all transactions. Apple Pay and Google Wallet are simply fancy ways to pay for your purchases using your existing credit cards. That’s why some business owners offer an incentive for their customers to pay with cash instead of credit.
Cash is secure. Millions of Americans’ private credit data was stolen last holiday season when hackers compromised retailers like Target and Home Depot. These retailers do an incredible job of trying to keep their customers’ information secure, however there are inherent risks with using credit cards. While the new mobile payment companies use new technology to make those transactions more secure, it’s only a matter of time before the bad guys figure out how to hack this too. Cash doesn’t have that problem. If you are concerned about keeping your private data secure, consider paying in cash more often.

These new technologies may indeed be the norm years from now. But until the technology becomes more mainstream and proves to be more secure, I think I’ll stick with good old cash as much as possible.

Fooling Ourselves

September 05, 2014

I was scrolling through the SiriusXM radio dial while driving recently and found a song I hadn’t heard in at least 20 years. Styx – Fooling Yourself was playing as I was weaving in and out of traffic, trying to get home in time to meet my girlfriend at a reasonable time for sushi. It seemed like the more I changed lanes and zoomed past a line of cars, I’d get behind a super slow car and the line of cars passed me by. Continue reading “Fooling Ourselves”

We’re Not Gonna Take It Anymore! (Part 3)

August 27, 2014

Several weeks ago, I introduced the idea of challenging corporate financial policies that put the company ahead of the customer. I talked about how cancellation policies are not set in stone and how consumers have nothing to lose by requesting a refund of unused services despite what the cancellation policy says. Last week, I continued the discussion by challenging the notion that new-customer deals should only be available to new customers while existing customers should be satisfied with the status quo. For this week’s blog post, I’m taking on the notion that some deals are only good “for a limited time.” Continue reading “We’re Not Gonna Take It Anymore! (Part 3)”

Memorial Day Freebies for Your Military Family Members

May 20, 2014

My stepson has served in the military for the past several years and every Memorial Day he has his list of restaurants he wants to go to for breakfast, lunch, AND dinner to get his free meals. Top on his list this year is Hooters, which is offering 10 free wings to all active duty military and veterans. Active duty service members and veterans can also get a free All-American burger at Shoney’s and a free meal at Twin Peaks. Continue reading “Memorial Day Freebies for Your Military Family Members”

How Rewarding Are Your Rewards?

February 28, 2014

I read this article about Delta Airlines’ changes to their frequent flyer program. Actually, it’s no longer accurate to call airline rewards programs “frequent flyer” programs. The trend in the airline industry is moving away from rewarding people for number of flights and/or miles flown in favor of rewarding travelers for dollars spent. In essence, they are morphing into “expensive flyer” programs. As someone who flies a lot for work, this article resonated with me. Continue reading “How Rewarding Are Your Rewards?”

Don’t Hate Your Customer Loyalty Program – Tips to Make Them Work For You Without Having to Endure a Million Annoying Emails

September 24, 2012

I am not sure why my friend Diane went off on a rant against loyalty discount programs and I am also not quite sure why she ranted to me. She knows I am a blogger so I think her comments are fair game to quote, especially since she emailed them to me – like at the police station how they take your fingerprints from the soda can to incriminate you because you drank it in public. I am using the same logic by publishing her comments. Here is what Diane had to say about customer loyalty programs: Continue reading “Don’t Hate Your Customer Loyalty Program – Tips to Make Them Work For You Without Having to Endure a Million Annoying Emails”