#58 Money and Finance

It took me a long time before I was ready to try online banking and bill paying services. I worried about security issues and identity theft and just did not want to take the risk. Then I got socked with a few finance charges for late payments. Good motivator.

I now use these wonderfully convenient services that are always accessable, even at 11 pm when I suddenly have one of those oh-my-goodness-the-mortgage-is-due-today moments. I love that I don't have to make sure I get to the bank before it closes, stand in line, buy stamps, or listen to an automated answering service in order to take care of business.

My banks offer a variety of security safeguards to their customers. One has 3 levels of security in order to protect my financial information. They use a 128-bit encryption, automatic time out for banking sessions, and password protection. They encourage customers to change their password periodically in order to provide optimum security. Another bank I use offers a $0 Liability Guarantee against unauthorized account activity, and a SiteKey which includes an image I choose, so that I know I am visiting the bank's actual web page and not a "spoof" site. I look for the padlock icon to make sure a site is secure as well.

I'm not thrilled about linking all my bank accounts into one service, using a site such as Mint.com. I'll keep it in mind though. I noticed that the site has received the editor's choice award from PC magazine and other good recommendations; however, my finances won't be affected much by using budget management software. Basically there isn't enough money to manage. I like that on Mint there is a blog which includes tons of financial information and archived articles. There was one called "Strapped for Cash? Take a Fakecation". The writer suggests that if you are longing for a vacation in Paris, for example, but don't have the money right now, you can fake yourself out with a trip to Quebec City. Interesting idea.

I took the "Do you have a spending problem" quiz, and my results were 60. The average score for my income group was 54, and the average for MSN Money readers was 60, so I feel pretty good about my spending habits. Basically I don't do much shopping. I don't buy bottled water, and I try not to buy non-food related items at the grocery store. I use local businesses to meet most of my needs and therefore I'm not spending a lot on gas. My internet, phone, and cable are bundled, and I don't use banks that charge fees for checking or savings accounts. I frequently save 20% by using a microwave rather than a full size oven. (I didn't know that was what I was doing when I decided I'd rather nuke leftovers than cook, but hey cool.) I liked the reminders for keeping automotive costs low, such as properly inflating your tires and checking www.fueleconomy.gov for the lowest gas prices by location. I would like to save more on utilities. I already watch my thermostat, but being aware of temperature settings can only save you so much. I was surprised the Consumer Reports article didn't mention proper home insulation as a way to save on utility bills.

One thing I did as a result of this exercise was apply for a no fee credit card which gives cash back bonuses. Because I really need a Fakecation fund.