Please, make a run to your bank and withdraw ALL your money!!  Just kidding.  You would think that the government made that announcement on Friday night.  You wouldn’t believe how many people are coming into the bank trying to withdraw all their money.  I have seen people wanting to cash checks for $100,000!  First of all, most branches are lucky if they have that much in the whole branch, and secondly, what are you going to do with it?  Bury it in a coffee can in your back yard?  Put it under a mattress?  What bad ideas!

This is my opinion on what you should do currently: 

• Make sure you are FDIC covered.  If you have more than $100,000 in one bank, add someone as Payable on Death (POD).  That will increase your coverage to $200,000 ($100,000 per depositor).
• DON’T go run and close out your bank accounts.  If everyone closes out their bank accounts, of course the banks are going to fail!  Relax, maybe have a little cash on hand, and ride it out.
• Just because the FDIC has up to 99 years to pay you back, that doesn’t mean it will take that long.  The most it’s taken them to pay people back is two weeks.
• If your bank goes under, chances are they are going to reopen their doors the next day.  It will probably be under a different name, but you’ll be able to conduct business as usual.

If I had a dollar for everyone I’ve talked to about FDIC coverage and the current state of the economy and about banks failing, I would be rich.  I think the media has caused so much hype and they need to calm it down a little bit.  The more people get worried, the worse off we’re all going to be.  Make sure you are insured, have a little cash on hand, and make sure you are living below your means.  You can’t do much more than that.

Are you withdrawing or closing any of your bank accounts?

Posted under Economy

I am so ready for this year to be over. I have had the worst luck this year! My grandmother passed away in January, we had the tree fall on the house in January as well, I thought I had cancer (I go to the oncologist tomorrow for a check up), my dad is currently in the hospital, and now we have all this car trouble.

I am ready for a break!

Monday I decided I was going to take my car in to the mechanic because it was running funny.  It sounded like something was going to fall through the floor, and when I turned, I heard this “wubba wubba wubba” noise.  Of course that’s not good.  When the mechanic called me on Monday to tell me that the Motor Mounds were bad and that it was a miracle the motor hadn’t fallen out, I asked him how much it would cost to fix. Around $500.  Then, he proceeded to tell me that because of the motor mounds being out it ruined an axle, which will cost me another $500 at the most.  At this point I’m wondering if it’s worth putting the money into a 1994 Oldsmobile Achieva, but I think, hey, I can’t buy a car for $1000.  So I tell him to go ahead and fix it.

He calls me back a few hours later with more bad news.  The steering rod needs replaced and the bottom of the car is rusted out.  At this point it makes no sense to fix the car, because it’s going to cost more than it’s worth!  Plus, if we did fix it, who knows how long it would last before something else happened to it.

There goes my “no car payment” plan.  I am so bummed.

I have a few options, as I see it, and I really need your advice.   This is what I’ve come up with:

• Buy a car that’s a few years old, obviously used but in good condition.  Take out a car loan and try to pay it back as soon as possible.  Take some money out of savings to pay for the car.
• Buy a car that is only $6,000-$8,000 and pay cash.  I’ve been saving up for a car (thankfully!!).  The only problem is that if I do this then I’m not going to get a newer car and I don’t want to get something that I’m going to have to sink more money into.
• Buy a Vespa scooter for $1,000 and drive that.  Just kidding.

That’s pretty much the only options I can think of now.  I am dreading having a car payment/spending money.  I hate this! I feel so unfrugal lately.

What would you do if you were in my shoes?

Posted under Budget, Gas, Pay Off Debt, Save Your Money

Next month, which is rapidly approaching, I am making a trip to Wisconsin to visit a friend.  As excited as I am, I am also thinking ahead on the financial effect it is going to have on our October budget.  At first, I thought I would fly up there, but I couldn’t find a non stop flight that wouldn’t take longer than driving, and I couldn’t find one cheaper either.  It looks like I will be driving.

I’m still searching air fares in the event something comes available.  I really wish I could get a plane ticket for a decent price, because it would be a whole lot shorter time wise to fly than it is to drive.  Driving won’t be as stressful on me as flying would.

I’ve thought about taking a bus or train up there, but there are no buses that go from here to there, and neither does the train.  Sometimes I wish we lived closer to a larger city!

I’m going to save money on a hotel room by staying with my friend.  We’ll cook in some meals but I’m sure that we’ll eat out as well, so I’m going to save money for that, as well as gas.  I also have to save some money to buy Mr. Money some cheese!  Last time I was up there I didn’t buy him any and I heard about it for a long time!

I’ve got some money set aside, and I’ll continue to do so up until I leave.  I’d like to go cash only because then I’ll have a visual on how much money I have left to spend.  I think it’s a good plan.

 How do you save money on vacations?

Posted under Budget, Gas