My Dollar Plan» Roundups on My Dollar Plan

How Much Do You Pay For Health Insurance?

Madison — Thu, 26 Jan 2012 14:29:54 +0000

As I piece together our budget spreadsheets projecting our expenses for the next 60 years, there’s one line item that I keep coming back to over and over, the cost of health care. I predict our future expenses with all sorts of inflation rates for our expenses… but what about health care? How much will it cost? At what rate will it increase?

We’ve made it no secret that my husband works for health insurance. Our original long term backup plan was access to my husband’s health insurance, which we would have access to for life in 7 more years. However, the writing on the wall says it’s time to let go of that backup plan and move on.

Enter private health insurance. We’ve done all the quotes for individual policies, but since my background is in insurance, I know that unfortunately the quote you get or the first year premium has little to do with your renewal premiums in the future.

Health Care in the Future

Obviously, a lot of the future health care costs may hinge on the health care reform and what it will look like if and when it’s actually implemented.

There is an interesting Kaiser calculator that predicts what individual health care will cost in 2014 with the tax subsidies. Based on the calculator, you could make some reasonable assumptions for future costs.

But obviously, (even leaving politics out of it) it doesn’t make sense to make any financial decisions based on that law. So we’re back at square one for predicting health care costs.

How Much Do You Pay for Health Care?

So as we do some planning to move into the individual health care market, I’d like to hear from you. Let’s talk about money. How much do you pay for health insurance?

For the group insurance plan we’re on now, we currently pay about $200 in premiums per month for a family HMO plan. In addition, the plan has a 10% coinsurance.

How much do you pay for health insurance? How much do you think it will cost in the future? If you plan to retire early, how much have you budgeted annually for health insurance costs?

Retirement

Frugality

Investing

And More!

Written by Madison

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Stress Free Gingerbread Houses, Holiday Shopping, Investing and More

Madison — Thu, 15 Dec 2011 14:29:19 +0000

Since I took on the no gift card challenge, my holiday shopping got just a bit more complicated! Of course, a lot of the holiday stress we face is self inflicted…

Amid the flurry of holiday parties, shopping, and all of our holiday traditions, we took some time out for a stress free adventure: making gingerbread houses with Grandma!

Stress Free Gingerbread Houses

If you’ve ever made gingerbread houses with a team of 3 kids under the age of 6, you know it’s not exactly a stress free project. But I’ll let you in on a little secret – the $9 prebuilt gingerbread houses at Costco! Skipping the assembly and going directly to the decorating is a fun, cheap, stress relieving holiday project. Want proof?

Gingerbread Houses

Stressed about the holidays? Here are 7 More Tips to Avoid Holiday Spending Stress!

Holiday Shopping

Investing

Retirement

And More!

Written by Madison

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Can Once a Month Cooking Save You Money?

Madison — Thu, 20 Oct 2011 13:29:07 +0000

I’ll admit, my personality is a tad bit compulsive. It wasn’t enough just to buy in bulk to save money on groceries. And even converting to once a month grocery shopping and considering buying a cow didn’t end the frugal grocery shopping roller coaster I’m currently riding.

Once a Month Cooking

But now, it’s gone to a whole new level. I shopped last weekend for hours and I am all prepared for a once a month cooking marathon this weekend, thanks to once a month mom. If all goes well, at the end of the day on Saturday I should have 30 meals prepared and in the freezer, eliminating the need to cook for a month!

Tricia at once a month mom, not only prepares the menu based on items currently on sale, but converts the recipes to be compatible with freezer storage, gives you a grocery list based on the number of people in your family, and optimized instructions for the big cooking day, eliminating any need for planning on my part.

I’m excited, but honestly a little terrified at what’s in store for me this weekend. I can pour over details of Roth IRAs, credit card bonuses, and asset allocation for 7 hours straight, but I don’t know if the same can be said about cooking!

Can Once a Month Cooking Save Money?

Ideally, if I have a freezer full of pre-cooked meals, we won’t eat out as much, saving money not only on groceries, but on dining out… another big hole in our budget. Obviously, this should be a timesaver, but will this actually save money? I don’t know yet, but I am game for finding out. And I’d be interested to hear from any of you who have done something similar.

I’ll do my best to provide updates on Facebook this weekend!

Have you ever done once a month cooking? Did it save you money?

Retirement

Investing

By the Numbers

And More!

Written by Madison

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Have You Ever Bought a Cow?

Madison — Thu, 13 Oct 2011 13:29:14 +0000

While we were working on cutting our grocery bill in half, I ran across an interesting concept: buying a cow. You can buy a cow directly from a local farmer and get a huge quantity of high quality meat, skipping the grocery store altogether.

I brought up the discussion at a recent ladies night out (I can’t remember how on earth the conversation headed in this direction!) and was surprised to find that many of my neighbors buy cows every year.

One of my neighbors even offered that we could go in on her cow this year. They were splitting the cow between 4 families and each family pays $400. We have the freezer space, so storing the meat would be possible.

I’m curious enough about the process that I’d like to hear more about it. When a family gets 1/4 of a cow, how many pounds of meat is that? And how does it break down between steaks, roasts, and ground beef? How does the price compare to regular butcher prices?

At this point, I still have more questions than answers, but found how to buy a side of beef helpful. If you have experience in cow buying, I’d love to hear about it!

Have you ever bought a cow? What do I need to know about it?

Real Estate

Investing

Carnivals

And More!

Written by Madison

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Do You Use a Rewards Checking Account?

Madison — Thu, 15 Sep 2011 13:29:27 +0000

I’m on the hunt for a new checking account. Our primary checking account is currently at Schwab. But over time, the interest rate has dropped, and now that they abandoned the 2% credit card, the overall package is no longer competitive.

Time to go shopping for a new bank.

I’m considering Consumers Credit Union which offers a 4.09% APY on their rewards checking up to $10,000. There is no minimum balance, no fees, and they refund ATM withdrawals.

Rewards Checking Account

While I’ve never had a rewards checking account, I am considering it since the rate beats most high yield accounts right now. As with most of the rewards checking accounts, they do have the debit card purchase minimums and other monthly requirements:

Complete at least 12 Debit/Check Card Point-of-Sale purchases (transactions must be made without using your Personal Identification Number, or PIN, to count towards the minimum of 12 and must post and clear your account on or before the last day of the calendar month)
Each calendar month, one direct deposit OR one ACH debit OR pay one bill when using Consumers Credit Union’s free online bill payment system, must post and clear your account on or before the last day of the calendar month
Access Online Banking at least once each calendar month
Receive Electronic Statements (enroll and accept the disclosure)

But the good news is that if you don’t meet the minimums, you just get a lower interest rate (.05% APY) and no ATM refunds, but not any extra fees. So the months where we don’t keep much in our checking account, we can just skip the required transactions.

Referral Bonus

I’m considering giving it a try. And the good news is that there’s a $50 referral bonus. If anyone has an account at Consumers Credit Union and wants to send me your referral, I’ll use the first one I get.

Do you use a rewards checking account? If so, what strategies do you use to meet the minimum number of transactions?

Investing

Carnivals

By the Numbers

And More!

Written by Madison

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Time to Replace the Schwab 2% Card?

Madison — Thu, 25 Aug 2011 15:31:47 +0000

Are the rumors true? Is the Schwab 2% Cash Back Credit Card ending it’s run in my wallet?

Earlier this week, rumors surfaced that service reps began leaking the details of the end of the Schwab 2% card. If it’s true, the Schwab card will convert to a 1% cash back card with a $75 annual fee and we should get a letter this week detailing the change on October 15.

Boo. This is my favorite card to fall back on when the rotating categories don’t match up with my spending or I don’t feel in the mood to jump through hoops for a $5 purchase. We’re heading out for vacation later today, so I won’t be able to read the letter until I get back.

Possible Schwab Replacement Cards

Once I do get a chance to read the letter, here are some of the options I’m considering for replacing the Schwab card in my wallet:

Convert to the Fidelity card. There’s still the Fidelity 2% Cash Back Credit Card. We have one, but it currently has a 0% balance transfer on it, so I don’t want to add purchases to it. I might call FIA and ask if they’d switch the Schwab card to another Fidelity card.

Go back to the 529 card. Remember the old 529 card from years ago? I still have it and I could dust it off. However, I don’t have plans to add more to their college funds right now, so it might not be the way I want to spend our cash back.

Go full steam on the 6% American Express card. I’ve started buying a gift card everytime I’m at the grocery store to take advantage of the American Express 6 % Cash Back card. However, now maybe it’s time to take this to the next level and convert all of our spending that was previously on the Schwab card to the new gift cards.

Did you get a letter about your Schwab card? What are you planning to replace it with?

Investing

By the Numbers

Carnivals

And More!

Written by Madison

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Playing the Car Accident Math Guessing Game

Madison — Thu, 18 Aug 2011 13:29:11 +0000

Fresh off a new parking lot fender bender (thank goodness no one was hurt!), it’s time to drill down on the money aspect of the damage. Even though I carry insurance, it’s always better to step back and look at the math to determine the best way to proceed financially. For small fender benders, it’s almost always cheaper to pay out of pocket to fix the damage than to have your insurance pay for it, only to increase your premiums down the road.

I’m a strong believer in only insuring for catastrophes, using high deductibles, dropping coverage as soon as the car has lost most of it’s value, and paying for everything else out of pocket.

Insurance Versus Self Pay

My insurance deductible is $1000. I took a look at my policy ($295), and it looks like I’ll lose at least $94 in discounts. In addition, my base premium would likely be increased for submitting a claim, we’ll assume a minimum 20% premium increase (it would probably be more), or $59 for each half year over the next 5 years. Although since I don’t have access to their rating plan, this is all just estimates based on some prior years data I saved from previous insurance claims and violations and years of working in the insurance industry.

So, if I choose to have my insurance pay the guy, I’d probably have to pay at least $1,000 + $1530 ($94 + $59 x 2 x 5 years). Ignoring the time value of money (which is probably offset by the compounding value of the regular increase in base premiums anyways), it’s probably in our best interest to foot the bill myself if the damage estimate is anything less than $2530. Anything around that number and it could be a toss up, significantly above that, and I might want to get insurance involved.

Replacement Parts and Estimates

My husband found a replacement part for my car for $280 on ebay. Of course, I had to hit a luxury car, so I’m guessing the other party probably won’t endorse buying parts on ebay or just living with the scratches like I plan to! Even though my rear bumper crumpled easily like a styrofoam cup and my car took most of the damage, I’m sure his estimate will be significantly higher to replace a headlight and scratches in the paint.

Humor me… what do you think his estimate will be?

Investing

By the Numbers

And More!

Written by Madison

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Does the Market Volatility Make You Anxious?

Madison — Thu, 11 Aug 2011 13:12:26 +0000

source: CNN Money

Obviously, it’s already a long week with the market swinging wildly each day: back to back stock market slides, a rally, another slide, another rally, and another slide. And based on the way investors are reacting to every piece of news lately, it seems likely that the volatility will continue for awhile.

Some people have made comparisons to our market crash in 2008 (and some economists are insistent this time is different). Similar or not, large market swings tend to bring out the fear in even the most rational investors.

I went back through old articles from 2008, and found a collection of articles with some great perspective that still holds true today: Your 9 Step Economic Action Plan.

Two of my favorite points in the list: increase your investments and stay the course. That’s what I’m doing right now as a long term investor. I’m not a market timer, but I do like to pick up a few extra shares at times like this, remembering the old quote from Warren Buffet:

Be fearful when others are greedy and greedy when others are fearful.

I scheduled some extra solo 401k contributions this week and I’m sticking with our current asset allocation plan. Nothing too exciting, right?

Is the market volatility making you anxious? What are you doing with your investments right now?

Investing and the Market

By the Numbers

Carnivals

And More!

Written by Madison

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A Confession: I Have a Status Symbol

Amanda — Thu, 04 Aug 2011 13:29:20 +0000

I have been called out by one of my readers before (in a very polite way), who inquired as to why I am still on a monthly contract cell phone plan. He/she sent me a great email detailing their own pay-as-you-go plan, the perks of it, as well as the financial benefits and savings that one can get versus the monthly contract. They showed me that I could stay with my current provider, and even if I happened to use 500 minutes per month (which I don’t), then I would only pay $30 plus taxes. What a deal! I thanked them for their email, and was truly appreciative of the time and effort they put into giving me this information.

Almost a year and approximately $576 later, I still have my cell phone contract. If I had switched to the pay-as-you-go plan, I would have had approximately an additional $200 in my pocket.

Why I Pay More for My Cell Phone Contract

Before receiving this email, I was not aware that it would save me money by going on a pay as you go contract. Even though I do most of my chatting to my family in PA on the weekends (weekends are free), I thought that I was probably using up a decent amount of minutes during the week to make it a financial burden to change to a pay-as-you-go plan rather than something to help me save money. Aside from that, I have what I consider to be a great deal: $48 dollars per month and a free cell phone every two years. I rationalized that saving the extra $15 per month or so by switching to a pay-as-you-go plan was not worth the effort. But then I took a closer look and realized that I simply do not want to give up my monthly cell phone contract plan because it is a status symbol to me.

You won’t catch me with many status symbols; if you pass me on the street I will most likely be walking with a red tote bag I got for free from Macy’s when we signed onto our wedding registry a year and a half ago and wearing shoes purchased from Payless or the Shoe Rack clearance section that have outlived their beauty. But my cell phone is another story all together. It’s not the cell phone Make and Model itself, as I am often years behind the newest models and trends (I am currently fighting everyone’s opinion that I should own a Smartphone). It’s the actual contract itself, the idea that my credit is good enough that I can be trusted with a monthly bill instead of having to put money onto the cell phone itself.

How My Cell Phone Became My Status Symbol

I remember the first cell phone I ever got; I was 16 and my stepmother had decided that it was time for us to catch onto the trend of personal cell phones. I had no credit at that point, and I knew that my parents’ credit was probably not that great as both sets of my parents had gone through bankruptcy by that point. I wanted to have a monthly contract so badly though, and felt that it was far superior to the pay-as-you-go phones other people had. I knew it was out of our reach though—money was always tight. That night I came through the front door to a huge surprise: charging on the table was my new snazzy cell phone. When I thanked my stepmother, she revealed that it was actually a monthly contract phone and not pay-as-you-go! I felt like I was in an exclusive club that previously the door had been shut to me.

Just like some people feel that having an American Express credit card in their wallet or a Louis Vuitton purse dangling from their shoulder shows a status of some sort, that is what a cell phone monthly contract feels for me. Ever since I became aware of the cell phone contract being a status symbol to me, I have begun to notice other status symbols in our culture. How many kitchens have you seen with the Kitchen Aid Stand Mixer prominently displayed (but probably not often used) on the countertop? How about Starbucks drinks? A Starbucks throwaway cup has practically become an accessory to outfits.

Have you noticed any cultural status symbols? Do you have any in your life?

Real Estate

Investing

By the Numbers

And More!

Written by Amanda

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Social Security Calculator, 1936 Budget, and More

Madison — Thu, 21 Jul 2011 13:29:53 +0000

Last spring, Social Security announced they’ll no longer send the annual statement.

While you can still use the SSA’s Social Security Calculator to estimate your benefits, the government calculator left a lot to be desired as far as planning and maximizing your benefit.

New AARP Social Security Calculator

The new AARP Social Security Benefits Calculator helps to fill in those missing, but important details. You can use the data outputs from the government calculator to find out how to maximize your benefits and determine the best time to claim social security.

If you are married, the calculator helps determine how to maximize your monthly benefit in conjunction with your spouse, which can be a mix of claiming your own benefits and claiming spousal benefits during different years. In addition, it has some helpful sliders to integrate the impact of social security benefits if you are still working.

Of course, neither of the calculators estimate the impact of what might happen to social security benefits after the debt ceiling issue is resolved, but as of today they’re accurate…

Budgeting in 1936

Rent, $12.50. One gallon of milk, 20 cents. Intrigued? Here’s a look at one family’s buried treasure: Household Ledger from 1936.

Investing & Taxes

Sales of Paper Savings Bonds will End this Year

By the Numbers

Carnivals

And More!

Written by Madison

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State Taxes, Debt Ceiling, and More

Madison — Thu, 14 Jul 2011 13:29:27 +0000

There was a lot of discussion around our property taxes in Should We Move to a Smaller House? Our $11,000 annual property tax bill seemed high to many readers. We’ve always known we live in a high tax state (especially for being in the Midwest), but some recent state tax comparisons are helpful to put everything in perspective:

(By the way, we’ve been actively looking at some houses over the last few weeks, but still haven’t settled on a decision yet.)

Debt Ceiling

You can’t read or watch the news right now without mention of the debt ceiling. Is it really important or is it media hoopla? Will the US default? Will Social Security and military checks stop or be reduced? Will the outcome force the markets into a stock market crash worse than we saw in 2008?

I’ve heard all of those statements thrown out, and yes, they sound really scary. But I think instead of grasping a single headline and following the herd into a frenzy, it’s better to step back and read as much as we can about the situation.

I tried to find the best technical description of the financial impacts of the debt ceiling, but to be honest, it’s pretty hard to find anything that isn’t clouded with politics. In search of informative and helpful articles, here’s what I’m currently reading about the debt ceiling:

What have you read about the debt ceiling that you think is informative and helpful?

Retirement

Saving

Carnivals

And More!

Written by Madison

Free Hilton Gold Status or 5,000 Points

Madison — Thu, 16 Jun 2011 13:29:00 +0000

Planning to travel this summer? Here’s a quick travel perk for you. Hilton is offering free gold status for the summer.

To upgrade your Hilton Honors account, enter the account number of a Visa signature credit card at: Hilton Honors Visa Signature upgrade.

If you stay 3 times, your gold status will extend until next March. If you already have gold status, you’ll get 5,000 bonus points.

We haven’t stayed at a Hilton since we blew through all of our points at the Hilton Key West Resort (which has since changed to The Westin Key West Resort), but I do recall that gold status typically gets you a free breakfast and a room upgrade.

Without the free gold status, we typically maintain the free silver status with our Citi Hilton Honors credit card.

Personal finance articles of the week:

Retirement

Investing

By the Numbers

And More!

Written by Madison

One $125 Chase Coupon Code

Madison — Thu, 26 May 2011 13:29:18 +0000

Just like clock work every month I get a Chase coupon code in the mail. It’s good for a $125 sign up bonus when you open a Chase checking account with direct deposit. However, each month I’ve had a conflict and the offer ends up in the trash.

Of course, this month is the same thing; we’re heading out for vacation shortly for the next couple weeks and the offer ends on May 31.

It was again headed into the trash, until I heard that people were purchasing the unused Chase codes on eBay. I realized that there might be a reader who could use the code. Since it’s only a one time use code, it really doesn’t qualify as a true Free Money Friday deal (as usual, you’ll have to wait until tomorrow for that!)

Here are the terms of the $125 Chase coupon code:

Offer not available to existing Chase checking customers. To qualify for the bonus you must open a qualifying Chase checking account with a $100 minimum opening deposit of new money (money not currently held by Chase or its affiliates). Also, within 60 calendar days of account opening, we must receive from your employer or the government a monthly electronic direct deposit of your payroll, pension or government benefits, such as Social Security. The bonus will be deposited into your new account within 10 business days after your initial direct deposit is posted to your account. For interest-bearing checking accounts, the Annual Percentage Yield (APY) is effective as of 1/25/11. The APY is 0.01% for all balances in all states. Interest rates are variable and subject to change. Fees may reduce earnings on the account. Limit one checking account-related bonus per customer, per calendar year. Offer not available on account conversions or in combination with any other offer. Bonus is not considered part of the minimum opening balance. Checking account must remain open for a minimum of six months or the bonus will be debited from the account at closing. Account is subject to approval. Bonus is considered interest and will be reported on IRS Form 1099-INT.

Here’s the one time use $125 coupon code to redeem at chase.com/checking: ~~3985839809947175~~. If you use it, please leave a comment below to let other readers know it’s gone! If we can make this work successfully, I’ll post more codes in the future.

Update: The code is used. I’ll post a new one as soon as I get one in the mail!

Now, onto the personal finance articles of the week…

Housing & Real Estate

Investing

By the Numbers

And More!

Written by Madison

What Do I Need to Know About Having a Garage Sale?

Madison — Tue, 17 May 2011 13:29:09 +0000

I’m taking part in a garage sale this week. However, I don’t really know what I’m doing. I’ve never participated in a garage sale before. Partially, because I have trouble parting with stuff, but also because I’ve never had enough stuff to sell to fill an entire garage. In the past, I’ve opted to sell a handful of things here and there on Craigslist and eBay.

But we finally hit a point with the kids, where we have an entire playroom in the basement filled with toys they have outgrown and no longer use. (Sound familiar?) Add the baby gear and clothes they’ve outgrown and I have a massive amount of stuff to purge. Since we’re pretty sure we are done having kids, I’m ready to part with the baby stuff.

The timing is perfect, since the moms group I belong to is coordinating a multi-family garage sale (and a portion of the proceeds will go to charity). So I have my stuff, my date, and location. Beyond that, I’m lost.

I know I have lots of frugal readers who are experts in the garage sale world. Now’s your chance to teach me everything I need to know about having a garage sale. Any and all tips are welcome, since I truly have no idea what I’m doing!

What do I need to know about having a garage sale?

Investing

Real Estate

By the Numbers

And More!

Written by Madison

I Joined a Book Club… and Found the Electronic Library

Madison — Thu, 12 May 2011 13:27:07 +0000

I joined a book club this week. The club itself has nothing to do with personal finance, in fact, someone proposed a finance book for the reading list and it was quickly shot down.

But in the days following our first book club meeting, I found out about a great site that will save book readers money!

Before electronic mobile reading devices, the most common method to save money on books was easy: go to the library.

However, since Kindles, cell phones, and all the various e-readers have become so popular… it’s seems like we’re once again forced to spend money on books (beyond the occasional one-time sharing of books between friends on the Nook and Kindle). Wouldn’t it be great if there was a public electronic library?

The Electronic Library

What I didn’t know was that there already is a library of the future: OverDrive Media Console.

You can download books, videos, and music on your computer, mobile phone (Android, BlackBerry, iPhone, and Windows Mobile), or iPad. (The Kindle will be on OverDrive later this year.)

I was able to install the Overdrive app on my phone, select my local library, and instantly start reading books electronically!

The books are free to “check out” and when you are finished reading, the book returns to the online library for someone else to read. Almost all of the newer books on our list for the book club were available.

You can search for participating libraries to see if your local library is participating.

Not only is the idea brilliant, it should save a lot of money for the die hard book readers out there! And we can still stick to the frugal advice of borrowing from the library.

By the way, the finance book that was shot down: The Big Short: Inside the Doomsday Machine. I’m going to check it out anyways, since it looks interesting.