iHCPL #58 #59 MONEY AND FINANCE

Money & Finance #58: Banking, Budgeting, and Spending


1. ONLINE BANKING : My bank offers free on-line banking. I like the security and daily alerts offered. You can setup an option and be notified by either phone ,email or text message. It is a good way to keep an eye on your accounts. Online bill paying can be a real time saving advantage; I especially like the option of sending an Overnight Check – it’s the modern day version of Western Union. All you need is the Internet and you can monitor your accounts from anywhere. The environmental effect – less paper and no stamps is a great bonus.

SAFEGUARDS: In addition to the regular passwords etc., the bank says it is secure and will only deal with one authorized contact person, but this can also be inconvenient. However, I still distrust the security; the firewall is only as good as the programmer. If I were to use online banking, I would have anti-spyware installed on my computer and take common sense steps: such as, always closing the browser and logging off completely, taking care in typing in passwords and frequently changing it.

2 BUDGETING TOOLS : I like the capability of being able to import bank files into Expensr. Also, being able to compare yourself with others and their spending habits is interesting. But for the comparisons, it is too much information to give. The capability of seeing instantly your accounts in the pie chart is OK. I think this may be a good visual and basic tool for those who are new at handling their finances and/or have difficulty in handling a budget. I prefer to use a software program such as VersaCheck on my home computer.

3. CUTTING BACK ON SPENDING : Coupons are my best friends – I already compare unit prices but another good tip is to watch those “use-by” dates, especially on big sales offering large discounts.
I have incorporated online deals with the site www.fatwallet.com. I was intrigued by the Mars chocolate free coupon – and I’m in ! Also, there are a lot of deals – I am interested in purchasing a digital camera and found the forums and offers a good way to research a purchase.

#59 Money & Finance #59: Credit, Money Management, and Saving

1. New Information: I learned how credit scores are generally processed : 35% from payment history, 30% from amounts owed; 15% from length of credit history; 10% from new credit inquiries ; 10% from type of credit used. Also, I learned that The Fair Isaac and Company developed the score. The most interesting fact I learned is that the average credit score is 678 ?! I wonder how much of a factor this was in predatory lending – if you have excellent credit you probably couldn’t qualify for a loan. If you had a low credit score – you were probably granted a loan.

2. MAKING A BUDGET : is not a difficult process. It requires discipline and planning on what you are preparing for the future. It requires time and in the past, a sharp pencil (preferably No.2) and a calculator. The most difficult is managing insufficient funds – what may be termed “make a dollar holler !”. Once experience is gained in “stretching funds” to meet daily needs – it becomes a daydream to one day just let the dollar pay the bills without any stretching. From this process adherence to the budget and money management tools are learned (e.g. clipping the right coupons, saving pennies in that big old jar, old-fashioned layaways, doing without, etc.) Today online tools are available that should be helpful in guiding the new budget planner.

3. TCDRS Site – The service center section with the personal plan summary which summarized the basic member benefits; being able to view the annual statement and being able to download the benefits guide were the most helpful.