One reason this may be such a sensitive topic for me is because a member in our family was a victim of identity theft. Thankfully, it was caught very early before any damage was done. The person committing the crime? An office worker at a doctor’s office. Yes, you heard me correctly.

Come to think of it, this has been an issue for at least 14 years. I remember going into a drug store and writing a check. This was back in the day before debit cards. heehee The cashier wanted to know my SSN. When I refused, she said they couldn’t accept my check. I took my check, left my merchandise on the counter, and have never shopped there since. Then another time, I was shopped in a department store (that I like) and the cashier asked for my SSN. When I refused, she got rude and said, “Fine. I’ll probably lose my job over this.”. I had shopped there for years and no one else had ever asked my for my social.

Just today I took my foster son to the dentist and the office worker asked me for my social. I told her I don’t give it out. Then she made up some kind of excuse about the claim being denied because they don’t have my social. Ummm, hello! He’s still in foster care so he has Medicaid. She knew that. You don’t need the foster mom’s social to file a Medicaid claim.  She even got the confirmation number while I was standing there.

I am just so sick of people trying to manipulate you to get your personal information. What is up with this? Why do people ask for your social when they don’t need it? I just don’t get it.

Do you have issues with people asking for your social security number?

image sxc.hu

Post from: Thrifty Mommy

1)  Audit your spending.  See if there is anything that you’re willing to cut out.  I’m thinking things like lunch out with coworkers, movie rentals, coffee stops, etc.  Or you could find ways to save on everyday purchases such as groceries.  Decide on how much spending you can eliminate.  Put that money aside into a savings account.

2)  Set a budget and stick to it.  Make a list of everyone you would like to shop for and decide on a dollar amount for gifts.  If necessary, you might have to eliminate a few relatives and friends that you don’t talk to much.  Due to the current economy, I think people are going to be more understanding this year.  That’s just my thought.

3)  Shop smart.  Look for clearance sales, coupon codes, and other ways to spend less.  Consider making homemade gifts.  Shop at discounted stores such as Marshalls, Ross, and T-Maxx.  There are many ways to save.

Other helpful tips:

• How to Cut Down Your Christmas Gift List
• Cutting Back on Your Christmas Expenses
• Plan for Your Holiday Budget Now!

Have you planned for Christmas?

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Post from: Thrifty Mommy

Just because everything is in your wallet, which I know is REALLY good news, it may not mean you’re ok not reporting it. If you kept any passwords in your wallet, say for your ATM, you absolutely need to change that card and or your password, then remember not to keep the new password in your wallet.

As for credit cards, it’s nice that they’re all there, but just to be safe you should call and let your credit card companies know. This way if any odd charges do show up, they’ll have the scoop. Lastly, you should also monitor all your accounts for a couple of months (if you don’t already) just to be sure no wacky charges show up.

Have you ever lost your wallet and gotten it all back in one piece?

[image via stock.xchng]

Post from: Thrifty Mommy

• Aim for creating a small emergency account and put a larger bulk of your cash into paying off your debt. Why?
• Paying off debt builds confidence which better prepares you to handle your finances. It feels good to save as well, but it feels much less stressful to have less debt.
• Paying off debt is building a better savings. While an emergency fund will grow if invested or even if placed in a decent saving account, it won’t grow at the same high rates that debt does. The sooner you pay off debt and cut out those hefty interest charges, the sooner you can save up a much better emergency fund.
• Money expert Dave Ramsey notes that paying off debt in full builds a momentum that “snowballs” into more and more results. Basically, once you get the satisfaction of having a debt paid off you’ll like the feeling and it’s easier to push onward, paying off more and more. People do like instant gratification and are more likely to follow through when they get it.

Since you do need some money for a rainy day, save up about $1000 vs. the many thousands you should have in an emergency fund. That $1000 will tide you over until you finish paying off your debt, then you can add more cash to your savings account.

What do you think – rainy day or debt first? AND why…

[image via stock.xchng]

Post from: Thrifty Mommy

You see, almost four years ago we bought a house.  We lived in it, fixed it up, and cared for it.  We wanted to make it a special place for our family.  Now here we are selling it and taking a loss.  A big loss.  We actually have to borrow money to sell it.  You may be wondering why I would be borrowing money to sell a house.  Well, it’s been on the market for eight months.  As you can imagine, the upkeep on a home can be very expensive and then add to it rent and utilities in another location, and it leaves us with little money left each month.

For eight months, we have been paying a mortgage, insurance, taxes, and utilities on a house we’re not occupying.  All of this while the housing market is down.  We’ve had people interested in the house, but none that could come up with the money.  The city where the house is located has seen a lot of lay offs.

You may be wondering why I wouldn’t just hang on to the house and wait until the market picks back up.  There are several reasons for this. 

1)  This is the first offer we have received on the house.
2) We don’t know when the market will pick back up again.
3) The financial strain needs to stop.
4) The market where the house is located is far worse than it is here.
5) Houses where we currently live cost a lot more.
6) Interest rates are the lowest they have been in many years.
7) Reasons #5 and #6 equal the reason we can afford to buy a house now.

Let me make this clear:  I hate debt.  This is not the road I want to take, but right now it seems like the only option.  And with rates being the lowest they’ve been in years, we can actually afford to purchase a house here.  The money we’ll save in interest far outweighs the loss on the other home.

I’ve had several people suggest a shortsale on the house, but everything I’ve read about shortsales messes with your credit.  (Shortsales are a better alternative to foreclosure though.) 

Sorry, this is no money saving lesson for today.  This is just a lesson learned and some thrifty struggles, weighing options, and finding the best way to get through it.  I’m hoping things are financially well your way.

images (c) Karen Weideman

Post from: Thrifty Mommy

You can get a free credit report IF:

• You’ve recently been denied credit for any reason. You have to request the report within 60 days.
• You’re unemployed and are actually planning to apply for work within 60 days of requesting a report.
• You’re receiving public assistance.
• You think your credit report may contain errors due to fraud – for example, someone applies for a credit card, bank account, or car loan in your name (or using your social security number).
• You haven’t had a credit report sent to you during the past year – everyone is entitled to one free credit report a year (BUT note that it won’t be in-depth).

To get a free credit report you’ll need to contact one of the major credit bureaus:

• Equifax
• Experian
• TransUnion

All of the above send pretty much the same report if you’re getting one free. They each also offer in-depth credit reports, but it’ll cost you. Something important to note is that if you check your report, it won’t lower your score. This common misconception is likely due to the fact that other people checking your score can lower it. Say you apply for credit every two months – THAT can lower your score, but you can check your own credit.

So have you checked your credit lately?

[image via stock.xchng]

Post from: Thrifty Mommy

Things to discuss:

Your spending priorities: Are both of you interested in saving for a house, kids, a car, or is only one of you into that? Do you have different spending styles? I.e does one of you live to shop while the other is a minimalist.

Do you agree on how much money should go to charities or other community organizations?

Do both of you anticipate long-term employment, or is one of you considering a career switch or quitting work entirely somewhere down the line?

Do you agree about loaning money out to friends and family – how much and how often?

ISSUE: Your partner and you balance the checkbook differently.

Not too big a deal, but keep separate accounts. My ex and I shared all our cash equally, i.e for bills and what-not, but kept our actual money in different accounts because I’m anal, and need to balance my checkbook daily, while the ex liked to call the bank once a month to check his balance. He always sort of knew what was going on, but that’s way too casual for me.

ISSUE: One of you has debt.

Sort of a big deal, but it could be worse. Just getting married or involved for the long-term won’t mix your credit scores, so long as you don’t open any joint accounts. However, renting and setting up utilities can be hard if the place needs both your names and one of you has sucky credit. The best thing to do is to make sure that the partner with poor credit is working on it, trying to improve it and in the meantime keep your names as disconnected as possible when it comes to credit cards and loans. Poor credit is not great, but doesn’t have to be a partner deal breaker (like the issue below).

ISSUE: Your partner gambles.

A HUGE deal. Take it from someone who knows folks who have been there. A gambler is a huge financial risk if you get involved for the long term. You can’t change their habits, they’ll need to. You may end up hiding your wallet, getting into debt, or dealing with a violent individual who is mad that you don’t like their habit. THINK very, very carefully before getting hitched with an addicted gambler (who is not in recovery).

[image via stock.xchng]

Post from: Thrifty Mommy

To avoid fees do the following:

Read the fine print: Of course this is an obvious, but many people don’t read all the fine print information before signing up for bank services. Some people also don’t read the mail their bank sends them later on which may have change of service notices that can include new fees. If you do get mail later that says new fees are active, call your bank and complain.

Ask for one-time forgiveness: If you accidentally bounced a check (or incurred some other fee) ask nicely and your bank may cancel the fee. Keep in mind this is a one-time deal; you really should bounce checks. If you’re guilty of multiple offenses try balancing your checkbook more often.

Stay with your bank then ask for fee waving perks: I recently opened a second checking account, but through the same bank branch. I was totally prepared to pay for new checks, however, the on-phone teller and me chatted for a while, and he surprised me by offering free checks since I stayed with the bank vs. opening my second account elsewhere. Yay! If you’re a loyal customer, you’re more likely to score cool fee waving perks.

Stay a REALLY long time: The longer you stay with a bank, the more likely you are to get fees waved. If you’ve always had a fee-free checking account and all of a sudden the bank decided to charge a monthly fee, you can point out that you’ve had fee-free for five years and want it to stay this way.

Go above the teller’s head: If the first person you speak to won’t cut a fee, ask to talk to their supervisor or call back later to score another teller who may help you out.

Threaten: I’m not a fan of threatening anyone, but banks can be so shady with fees that this is a decent time to get serious. If the fee is lame and on their end more than yours (i.e a balance transfer fee vs. bounced check) tell them you’ll switch banks if they don’t wave the fee. I read somewhere once that it can cost a bank hundreds of dollars in advertising to score ONE new customer. They want your business.

Have you ever had luck getting out of a bank fee?

[Bank near Zion Nat's Park, Utah image via stock.xchng]

Post from: Thrifty Mommy

The only place to get your free credit report once a year is AnnualCreditReport.com.  Accept no other source!

Thanks to Clark Howard for the information.

Post from: Thrifty Mommy

We had a garden for all our vegetables and herbs.

As the girls became older and could babysit they would deposit most of the money (though I encouraged them to keep a portion out….kids need to have spending money.)

All loose change was saved and banked each year.

Stay tuned for the next installment and keep saving that money!

Post from: Thrifty Mommy