From the monthly archives:

July 2008

Realizing that you’ve lost your wallet can be a scary experience. Suddenly, you find yourself faced with the horrific feeling that someone somewhere has access to all of your personal information. You scramble to remember exactly what was in your wallet and where you saw it last. What a mess!

Although nothing can eliminate the worry and inconvenience that is associated with losing your wallet, your best bet is to get things back to normal as quickly as possible. Since you don’t know where your wallet is, you’ll have to assume the worst and cancel everything that the wallet held. In a few simple steps, you can get on with your life with a minimal amount of worry.

Determine exactly what was in your wallet. Hopefully, you have kept the number of credit cards and identification cards as low as possible. Regardless of the quantity of things lost in your wallet, you’ll want to create a comprehensive list as quickly as possible.

Contact all of the issuing agencies and alert them of your loss. A quick call to your bank and credit card companies will allow them to inactivate your numbers. Customer service phone numbers can be found on your monthly statements. Now there won’t be any concern that someone is using your accounts to fund their purchases.

Call the police and report your wallet as lost. Although the police department probably won’t be able to do anything to find your wallet, they will be able to provide documentation recognizing that your wallet is lost. In the event that someone starts fraudulently using your information, you’ll be glad to have that report to submit to your accountholders.

Replace your identification. Pay a visit to your state’s DMV to get a new driver’s license or state identification card. You should also mention to the DMV representative that your old license has been lost. They’ll be able to make any necessary notations related to your old card number.

Report that your personal information has been compromised to each of the three credit bureaus. They will be able to place an alert in your credit file to keep anyone from opening new accounts in your name. Follow up with the agencies a few times by requesting a copy of your credit report and closely examining it for any problems.

Click to share this post with friends.

For more great content, remember to subscribe to my RSS feed. Subscribe

{ 2 comments }

Anytime you discuss financing a home or obtaining a mortgage, you’re certain to be told how advantageous it is to avoid needing private mortgage insurance. But, what you may not be told is what exactly private mortgage insurance is. Isn’t insurance usually a good thing? Why does this insurance have such a bad reputation?

Private mortgage insurance (PMI) is the insurance required by lenders when the borrower has to borrow more than eighty percent of a home’s appraised value in order to finance the home. PMI is used to guarantee that the lender will be paid in full if the borrower defaults on the loan. The premiums for this insurance vary from insurance agency to insurance agency, but are often as high as $1,500 per year. In most cases, the premium is paid to the lender as part of the homeowner’s monthly mortgage payment.

The substantial increase to your monthly payment caused by PMI is a huge part of the bad reputation that accompanies PMI. The incremental amount can put a hefty strain on a family’s finances when every dollar counts. And, unfortunately, the average family will never feel any benefit from this insurance. After all, PMI is only called into play if the homeowner is unable to meet his monthly payments and the house is foreclosed upon and sold for less than is owed to the lender.

If you are required to pay PMI premiums as a part of your mortgage, there are two important things to keep in mind. First, PMI is only necessary until you have paid enough towards the principal of your home loan to reduce the outstanding balance to less than eighty percent of your home’s value. Once you have made enough headway in paying down your mortgage, you can order a new appraisal of your home’s value and ask your lender to cancel your PMI. The one-time cost of the appraisal will more than pay for itself as you save your premium payments.

Finally, with advent of a new 2007 tax law, many taxpayers are able to deduct the cost of their PMI premiums from their income taxes. Although the deduction won’t alleviate all of the financial stress that comes with making PMI payments, it will put a little bit of money back into your pocketbook. Be sure to tell your tax preparer if you are paying PMI premiums and ask him if the deduction will apply to you.

Click to share this post with friends.

For more great content, remember to subscribe to my RSS feed. Subscribe

{ 2 comments }

How to Save on Diapers

July 27, 2008

in Frugal, Kids

Expecting parents are often advised to prepare themselves for major expenses when their new baby arrives. No matter how much you plan, however, nothing can prepare you for the sticker shock you will experience once you start clothing, feeding and diapering your little bundle of joy. Fortunately, the love and affection you’ll feel for your newest family member will more than make up for the pinch you’ll feel in your pocketbook.

Although every penny you spend on the baby is well-spent, you may feel that you should be a partial owner in Huggies or Pampers by the time your little one is ready for toilet training. You can mitigate some of your expenses by taking advantage of every opportunity you get to save money on diapers. You may have to invest a little of your time, but you’ll reap significant savings on your diaper purchases.

Sign up for Manufacturer Mailing Lists – Major diaper brands often allow you to join their mailing lists by registering with their websites. A few minutes at each site will allow you to receive coupons via the mail or the internet. You may even receive coupons monthly.

Clip Coupons – In addition to manufacturer’s coupons you receive by signing up at the company’s website, diaper coupons are regularly included in local Sunday papers. Peruse your paper’s coupon circulars each week to find coupons for your favorite brands.

Be Flexible – Being able to take advantage of sale prices and coupons for many different brands will greatly increase your savings. Maybe Huggies diapers are on sale one week; the next week’s sales feature Luvs. If you’re not too devoted to one specific brand, you’ll always be able to find a sale.

Shop Around – Be prepared to do some leg work when looking for the best place to buy diapers. You may find a great price at your local wholesale club. But you might a better deal by combining a sale price with a coupon at another store. By shopping around and combining discounts, you’ll always know where to get the best price for your diapers.

Click to share this post with friends.

For more great content, remember to subscribe to my RSS feed. Subscribe

{ 1 comment }

How to Maximize Your Back to School Savings

July 25, 2008

The return to school is a momentous occasion for any family. Your children look forward to getting to see their old friends again, learning new things, and all of the activities that come with school. You can enjoy having more time to get things done, whether you will be taking care of household [...]

Read the full article →

Mid Week Roundup – Teaching Kids About Money, Money Secret, Estate Planning

July 24, 2008

The Family Wallet participated in this week’s Carnival of Personal Finance. As usual, there were many interesting personal finance articles including:
This Wasn’t In The Plan writes “Teaching My Kids About Money: A Perfect Opportunity.”
You Need A Budget shares the one secret to money in marriage.
The Financial Blogger begins a [...]

Read the full article →

Ten Quick Ways to Reduce Food Costs

July 24, 2008

For many families, food costs make up a huge part of the monthly budget. While some luxuries like cable television or expensive clothes can be cut from a budget when necessary, food is always going to be a part of a regular budget. There are, however, many ways to reduce food costs when times get [...]

Read the full article →

How to Save on Airline Tickets

July 23, 2008

Unless you’ve been in hiding for these last few months, you’ve probably already heard that airline ticket pricing has been soaring to previously unheard of heights. Tales of fares that have doubled are everywhere, and there doesn’t seem to be an end to the increases in sight. It’s more important than ever, now, to shop [...]

Read the full article →

Turn Closet Cleaning into Cash

July 22, 2008

Do you dread the thought of cleaning out your closet? Maybe as long as you can get the door closed, you feel that the closet is under control. Once you’ve realized the value of your closet overflow, you may be ready to tackle that chore you’ve been putting off all this time.
You may be thinking [...]

Read the full article →

Why Payday Loans Are Always a Bad Idea

July 20, 2008

It seems that you can hardly drive anywhere these days without passing one or two payday loan businesses along the way. They’ve popped up on virtually every corner. Perhaps you’ve even seen their commercials advertising a convenient way to borrow money. If you just need a small loan to get you by until your next [...]

Read the full article →

Starting a “Gift Closet” for Children’s Birthday Parties

July 19, 2008

If you have little ones in your family, chances are you’ve forgotten to get a gift for a child’s birthday party at some point. Maybe your son or daughter forgot to tell you about the party ahead of time. Or maybe you just forgot to add a gift to your shopping list. Either way, here [...]

Read the full article →