#222: Don't Discount Your Work! (Friday, April 1)

I work hard. Really, really hard. But thankfully working for a corporate giant has it's perks--and I take full advantage of them all. If you work for a large company, you may be missing out on great opportunities to save a lot of extra cash.

For example, one of my favorite past times is going to the museums. The MoMA, one of my favorite museums, is $20 as is the Met; the Brooklyn Museum is $10; the Guggenheim is $18 and the Museum of Natural History is $16. Through my company, I can get free admission which can save me up to $50 per month.

My employee card has also granted me discounts at the gym, Broadway shows, parking, cell phone service, hotels, car rentals and a host of other things that I wouldn't have thought to use my employee card for (even coat check at the museum!). Just last year alone, I was able to save over $300 using my employee discounts. I like to consider it as a salary augmentation. Lol. I just found out that government employees also get a discount at my gym too, so it doesn't just apply to people who work at large corporations.

What discounts are you missing out on? Check with your employer (and the organizations you belong to) to see how you could save some cash.

#221: What You Don't Know - Part II (Friday, March 25)

Last week's Good Friday was dedicated to financial situations that you may have that you don't even know about. I found some other situations that could be costing you valuable money: recurring subscriptions, bank fees and state laws.

Recurring Subscriptions: Two years ago, Amazon had an offer of free overnight shipping if you signed up to use their Prime service. I took the trial offer...and forgot about it. They ended up charging my card $75 for the year--the most expensive book I've ever sent. But since I didn't cancel after the first year, they billed me for 2010 in August. Thankfully, Amazon's policy is that they will refund your membership if you haven't used it, so I was able to cancel and get the 2010 membership fees back. Most recurring submissions bill annually, so it's easy to miss it on a credit card statement. Check your statements to make sure you're not being billed for an annual subscription that you may have simply forgotten to cancel.


Bank Fees: Banks are becoming increasingly regulated so they have to figure out ways to still operate profitably. As a result, many banks are now cutting back on rewards programs  and a few have even raised the fees on ATMs, overdrafts, insufficient funds and the like. In fact, Chase just announced that it's testing $5 ATM fees for non-customers! Of course, banks are legally required to notify you before they change the fees on your account, but how many of us actually read the notifications from our bank unless it's a statement? Double-check the fees you're currently paying your bank. Use the worksheet from Good Friday #212, or go to bankrate.com.


State's Rules: I just found out that in California, cell phones are considered a luxury, so there is a luxury tax on them. Yes, you'll have to pay your taxes, but knowing is half the battle and you can make more informed decisions.

#220: What You Don't Know You Don't Know (Friday, March 18)

Last January, I got a new phone. I'd never gotten insurance on my phone before, but after hearing that they would replace the phone, no questions asked, I thought it was a pretty good deal. So I got the insurance and have been paying my premiums faithfully ever since.

A couple days ago, I accidentally dropped my phone and my display went dead. I took it into AT&T who told me it was covered by my insurance. I was ecstatic. I called the insurance company to file a claim. "Sure, we can send a new one in the mail right away!" the associate promised. But if you remember, I got my insurance license last September so I'm a little more informed and knew to ask about the deductible. It was $125. Did I mention that after my rebate the phone cost me $99?! So the deductible plus the sum of my premiums ($75) was twice what the original phone had cost me.

To add insult to injury, they were going to send me a refurbished phone and while they could give me a Blackberry, they couldn't guarantee that I would receive the same model phone as I'd previously had.

What are you paying for that isn't financially beneficial?

By the way, you should have completed (or be very close to completing) your 3-month financial goal by now. How are you doing?

#219: Moving In, Moving On, Moving Up (Friday, March 11)

This week I got a couple questions on moving in from different people in different situations: one was looking for a roommate, the other was thinking of moving in with her boyfriend.

Moving in with a roommate or a significant other can save you money, but if you're not careful, it could also cost you big in the long run. What if your roommate loses his/her job and can't afford to pay the rent? Or what if their credit isn't good? Or what if they decide to move out early and your name is on the lease? I know firsthand about the potential financial woes that could come with having a roommate. A similar situation cost me a friendship and put a nasty blotch on my credit which it took nearly five years to clear. But moving in can be a great financial decision, if you know how to play it smart:

Moving in With A Significant Other

• DON'T completely merge all your finances with a significant other until you're married.
• DO split bills and rent equitably, based upon your income. For example, if one person makes $2,000/mth and the other makes $4,000/mth, use percentage of income when calculating bills.
• DO discuss the goal of moving in: is it just to save money or is it in preparation for marriage?
• DO discuss spending habits and attitudes about money, as well as future financial goals.

Moving in With A Roommate

• DO draft a roommate agreement that outlines the course of action that will be taken if a roommate defaults on the rent, any of the bills or decides to leave early.
• DO try to find an apartment with utilities included so there is only one bill to split.
• DON'T put all the bills in your name. Either put both names on the bills or alternate bill responsibility (put your name on the gas, and your roommate's name on the electricity).
• DON'T share grocery bills. Although it can work out, it usually creates more of a hassle than it's worth (are you really going to keep track of who drank most of the milk?)
• DO get a credit check of your potential roommate and also agree to provide one. If someone has a history of non-payment or late payments, they may the same way when it comes to paying rent and bills.
• DO try to negotiate separate lease agreements with your landlord, so that if your roommate leaves, you won't be responsible for the rent.
• DO create a pool (each contribute $50/month) for shared expenses (toilet paper, common area furnishings, etc.)

#218: The Cost of Keeping Up with the Joneses (Friday, March 4)

If you compare yourself with others,
you may become vain or bitter;
for always there will be greater and lesser persons than yourself.
Enjoy your achievements as well as your plans.
Keep interested in your own career, however humble;

-Max Ehrmann, Desiderata

Earlier this week my cousin and I were talking about keeping up with the Joneses. A few hours later, I got this article in my newsfeed, so I thought it was a sign that it should be the topic of this week's Good Friday.

Many people use those around them as the benchmark for how they live their lives. The result of trying to "keep up with the Joneses" means that many people are living above their means. Even something as simple as maintaining your lawn could get you into financial trouble. The reality is that the Joneses are broke:

• Nearly half of Americans spend more than they earn each year.
• Over 1.5 million people filed for bankruptcy in 201o, a 9% increase over 2009.
• 26% of Americans (and 51% of African-Americans) admit to not paying all of their bills on time.
  

It's important to enjoy your life and the things you've worked hard for, but we can all use a few tips on how to keep ourselves in check:

• Keep your credit card debt between 25% and 30% of your credit limit.
• Keep your debt-to-income ratio at or below 36%. If your DTI is between 43% and 49%, financial difficulties are imminent. If your DTI is over 50%, you may need to get financial help (credit counseling) to get your finances under control.
• Build your net worth with real assets. A fancy car may be nice, but the value of cars depreciate quickly. Consider assets that will add value to your net worth over time.