Balance Transfer Update

In my last post, I was approved for a Capital One Mastercard with no-fee balance transfers. I received my balance transfer check within a week, and I was able to open a $15,000 1-year CD with a yield of 4.25%. I expect to earn about $640 in interest on the CD, and I'll also earn about $300 on the additional $4,000 in my money market account, given the current yield of 3.31%.

I'll be able to keep all of the transfered money earning interest by making a monthly balance transfer for the amount of the minimum payment to one of the credit cards I use regularly. Because I can make multiple transfers and the 0% balance transfer rate is good for 15 months, I'll earn more than $900 for the life of the transfer.

I'll definitely keep my eye out for other arbitrage opportunities.

Making Money with 0% Balance Transfers

When interest rates on MMAs were higher, I used 0% balance transfers to earn extra money. Since the rates have been lower, I hadn't been able to find good offers where the interest I would earn would be enough to cover the transfer fees. About a week ago, I received an offer from Capital One Mastercard for 0% for 15 months with NO Transfer Fee. Needless to say, I applied right away and transferred money to two of the cards I regularly use. Now I'm waiting for a check from Capital One for the rest of the money, and I'll put it into a CD.

Once I open the CD, I'll post a follow-up with what I expect my profit to be.

July 2008 Net Worth Update

Our net worth has declined again, mainly because of the lower values of our stock accounts. Fortunately, July is a three-paycheck month, so that will help a little. Our liabilities will still be higher than normal through August until we pay a large credit card charge (for hubby's work) that posted at the end of June but won't be due until mid-August. We have already been reimbursed, and we'll get to earn interest on the money for almost 45 days.

Assets $467,671

Liabilities $202,345

Net Worth $265,326

Coupon Savings over the Weekend

My family went shopping together over the weekend in order to combine errands and save money on gas. We needed to return some items and make other purchases, and we went to 6 stores. Thanks to the Deal Finder at the Life Takes Visa website, got a coupon for $10 off a $25 purchase at Lowe's Home Improvement. Additionally, I had received a coupon in the mail for $5 off a $50 purchase at Target. Because of these coupons and others from the Sunday paper, we saved $19 on items we would have purchased anyway.

I love coupons!

June 2008 Net Worth

I didn't post May net worth since I was out of town during the first week of May, and I didn't have my account information with me. I'm just going to pick back up with June since I never bothered to look up the amounts for May.

Our net worth has rebounded a bit, mainly because the value of our stock accounts has gone back up. Also, our liabilities are slightly inflated because I used a credit card to purchase $1200 in Kroger gift cards to get the 10% bonus. We'll use the cards over the next few months, and everything will even out.

Assets $478,726

Liabilities $202,185

Net Worth $276,541

Kroger & Sears Offer 10% Bonus on Tax Rebate

Starting May 2, Kroger will offer customers an extra 10% when they purchase a gift card with their tax rebate money. For example, if you purchase a $300 Kroger card, $30 will be added to your balance. If you received a higher federal or state tax refund, you can use that amount instead of your rebate. You do not have to bring the paper IRS or state check in order to take advantage of this offer. If you're already a Kroger customer, you can earn a quick 10% on money that you are going to spend anyway.

Sears is offering a 10% bonus as well; however, as of this writing, you will need to bring your check to the store in order to receive the bonus. Blogger Lisa Everitt thinks that Kroger is more likely to be successful. Why Kroger Will Get Your Tax Refund (and Sears Won't)

What about you? Do you plan on buying gift cards to receive the bonus?

I will probably buy some gift cards at Kroger. I shop there anyway, and it's hard to pass up 10% on my money! If we needed an appliance, I would take advantage of the Sears offer as well.

Living in the Real World/April 2008 Net Worth

The remainder of March and the first part of April have been a whirlwind. I've had several projects that have required time away from the computer, and blogging went by the wayside. Over the next few days, I'll get back up to speed, and I'll be posting 2-3 times per week.

Our net worth took a pounding from the drop in the stock market, but we're still continuing to put 12% (+ 2% match) into the 401(k) and the Roth 401(k). Hopefully we're getting some bargains right now.

Assets $466,983

Liabilities $200,926

Net Worth $266,057

In my next post, I'll update progress on my goals for the year.

March 2008 Net Worth

In an effort to more closely monitor our finances, I am going to start posting our net worth each month. I've never followed it that closely before, so I'll be interested to see how the amounts change throughout the year.

Assets $481,663

Liabilities $201,054

Net Worth $280,609

I'll update this post with a better breakdown of the categories once I figure out how to make a table that looks good. I'm still a newbie with html, and I don't want to post an ugly table.

Rain Barrels - Recycling and Saving Money

Most of the state of NC is in an exceptional drought, and forecasters are predicting lower than average rainfall for 2008. So what are we doing to help conserve water?

We bought two rain barrels that we will use to water our garden and potted plants this year. The town where we live sells 60-gallon rain barrels for $87 each. We were planning on buying one. Luckily, before my husband left to purchase it, I googled "rain barrels Raleigh." We found that the city of Raleigh sells recycled plastic pickle barrels that have been converted to rain barrels for $37 each. So for $13 LESS than the price of ONE from our town, we have TWO rain barrels that will hopefully cover our outdoor water needs. Last year, our water bill was $10-$20 more per month when we had to water, so the barrels should pay for themselves in about 6 months. In future years, we should save at least $90 per year on water costs.

In addition to saving water, we are reusing something that would have normally gone to the landfill. The barrels hold 55 gallons, and they come from the Mt. Olive Pickle Company in Mt. Olive, NC.

It's supposed to rain here on Friday. We are looking forward to seeing how much rain it takes to fill the barrels.

Happy Presidents' Day!

I did my part to help the economy today by spending about $70 on new towels at Kohl's. They were having a sale, and I had a 20% off coupon. I replaced the towels that my husband and I use, and I also bought new guest towels. Some of our old guest towels will celebrate their 15th birthday in August--I think we were way overdue!

I also spent $74 at the grocery store. I went over budget by $75 last month. Hopefully I'll be able to come in under budget for the next few months to make it up.

It's a banner week! Today the Federal Tax Refund arrived!

And not a moment too soon after refinancing our mortgage this week. We'll get the refund from our old escrow account next week, and that will help bump up our savings again. Two other deposits are also coming next week, expense reimbursement and my husband's bi-weekly pay. Our savings account will be back to normal soon!

2007 Taxes are done!

It's a new record--I filed our taxes on February 1st. That is the earliest I have ever finished! I used TurboTax this year, and it was FREE, thanks to State Farm Insurance. If you're a State Farm customer, you can use this service through their website; you have to first sign in at the State Farm website and link to TurboTax Online from there. I liked the TurboTax interface, probably because I am a long time Quicken user. Importing my husband's W-2 made the process even easier. Last year I paid $16 to e-file, and this year it was FREE!

We should receive our state and federal refunds by February 15. We are getting back about $2,400 this year, combined. Yes, I know, change the withholding. We have done that, and for regular income, we are right on target. However, my husband receives a substantial bonus each year, and the taxes deducted from that income account for the majority of our refund money. Does anyone have any ideas of how to change the W-4 so they don't overwithhold for an "extra" paycheck?

2008 Financial Goal Progress - January

Two days ago I posted an update on my personal goals, and now it's time to highlight progress on our financial goals.

1. Pay for braces. My daughter just received her braces on Jan. 29. The office manager is on vacation until next week, and another employee couldn't get the system to give me a discount for paying within the first 90 days. The office manager is supposed to call me next week to resolve the issue. This goal should be accomplished within the next week.


2. Refinancing our mortgage. Please check out this post about why we are refinancing now. I locked a 30-year fixed rate of 5.5% on Jan. 14. This goal should be accomplished by the end of next week. The closing is scheduled for the morning of Feb. 4, and the loan will disburse on Feb. 8, if all goes according to plan.

3. Contribute 12% to retirement plans. This was our contribution amount last year. We just had to verify the first paystub of the year to be sure the payroll conversion where my husband works transferred our information correctly.

4. Find a job/source of income for me. So far I've made $25 from opening an account at E*Trade. I will get more focused in the search within the next two weeks so I can start working mid-February.

5. Consolidate retirement accounts. No progress yet. With the refi and working on our income taxes, this goal has fallen off the radar for now. I'll talk with my husband once his big project at work is completed, after Feb. 9.

For January, I'm 2 for 5; a pretty good start to the year.

Insurance Issues - Update

In a previous post, I detailed two issues I was working to resolve with our health insurance company and doctors offices. We received the $27 balance that the specialist owed us, and now that matter is completed!

The other issue didn't come out in our favor. The office manager from the optometrist's office sent me an updated bill with corrected codes, but our insurance company still denied the claim. At this point, I'm tired of going back and forth with the doctor's office, so the fee will have to be an expensive lesson to us.

From now on we will not pay doctors upfront; we will wait until our insurance company processes the claim. This is the only way that we can be certain of what we owe, and it also gives the doctors more incentive to help us with any issues that arise with the insurance company.

Refinancing to a fixed-rate mortgage

We purchased our home a little over four years ago. Our mortgage was from our credit union, and it was a 2-year ARM that could go up a maximum of 1% every two years. The starting rate was 3.75%, which was well below 30-year fixed rates at the time. Also, choosing this mortgage allowed us to skip the PMI since we only wanted to put down 10%. It was a great option at the time.

Fast forward to 2008, and our rate adjusted to 5.75%, still a very reasonable rate. However, our home value has increased substantially, and we're below the 80% LTV threshold for PMI (closer to 60%). This week, I was able to lock in a 30-year rate of 5.5%. We're not planning on moving for at least another 8-10 years, and I wanted to get a fixed rate while rates are still low. Will rates go even lower? We'll see, and if they drop like a rock, we'll refinance again.

We will continue to pay the amount of our current payment in order to reduce the loan payoff term.

Financial Goals for 2008 (Pre-Raise)

Well, the hubby and I had a preliminary goal setting session, and we came up with some goals that we want to accomplish this year. Some of them may get tweaked once we know what our projected income will be this year. Here goes:

1. Pay for braces for DD#1. This will take about $2500. Fortunately, it will be $2500 tax-free because we found out she needed braces in time to add the amount to our flexible spending account for the year.

2. Refinance to a fixed rate mortgage. Look for a more detailed post explaining why we're doing a refi now.

3. Continue to contribute 12% to retirement accounts. The company puts in 2%, so we're at 14% total. For 2008, the contributions will be split 8% (including 2% match) to regular 401(k) and 6% to the Roth 401(k).

4. Find a job/source of income for me. I quit my part-time job in June 2007 because it was far away (36 miles, roundtrip) and my daughters' daily school schedules are off by almost two hours for this year and next, i.e., one starts school at 7:30, and the other one starts at 9:15.

5. Consolidate retirement plans from previous employers. We currently have accounts at four different institutions, and I would like to move the other three to Vanguard. We would be able to reduce our fees, and we would be eligible for some additional services.

That's the first look for the year. We'll revise and post as needed.

ING Direct Referrals Available Again

ING Direct is being generous in 2008. You can earn a $25 bonus for opening a savings account or a checking account with at least $250;however, you need a referral code from an existing account holder. The APY on the savings account is 4.10%, and you can earn up to 4.80% on the checking account, depending on your balance.

If you send me an email, I will send you a referral. I will receive $10 for each account that is opened. Help me to help you! Thanks for your support!

Insurance Issues

I spent about an hour today trying to resolve a claim from my husband's visit to the eye doctor in October 2007. He went to a new doctor because the doctor we've used since the mid-90s could not find the cause of his headaches and vision issues. Because he was unsure of our insurance coverage, my husband paid the full fee of $199, and we filed the claim ourselves. The new doctor coded the visit as an annual exam instead of a problem-focused (ah, the irony) exam, and the insurance company denied the claim because my husband had already had his annual exam in 2007. Now I have a problem to focus on!

After talking to the insurance company, I called the billing manager to ask him to change the codes so that we can resubmit the claim. The billing manager told me he would speak with the doctor and call me back. Five hours later--still no call back. On Monday, I will call again because I would like to get back at least some of our money.

In addition, the eye doctor referred my husband to a specialist for another $75. On my husband's second visit there, we were overcharged by $9--it was on the bill, and my husband overlooked it. Then after the insurance company processed the claim, our part of the bill was reduced. Balance due to us--$27. I will also call this office on Monday, unless a check arrives tomorrow.

Have a great weekend!