Personal Finance Advice

Whether you’re heading overseas on a fantastic vacation or for business purposes there are some things you should do before you hop on the plane to make sure that your personal finances don’t take a hit as a result of your trip.  Even if your trip is only a short jaunt you should still take some precautions beforehand.

Write a budget.  Don’t head out on a vacation or business trip without first figuring out how much you can afford to spend during your travels.  You’ll have a much better chance of returning home with some money still in your wallet if you actually take the time to write and follow a budget.

Have someone handle your mail and bills while you’re gone.  It’s one thing if every single payment you have is automatically deducted from your checking account and every other aspect of your personal finances runs like a well-oiled machine, but if you are like most people there are probably still some bills that you have to actually sit down and write a check for once in a while.  These are the bills you need someone to take care of while you’re gone, or at least pay the bills in advance so you don’t come home to a late fee.

If your overseas trip has you gone for quite some time - such as in the case of a military deployment - prepare a power of attorney for the person who will be handling your finances for you in your absence.  Don’t give power of attorney to someone you can’t trust.

Call your credit card companies.  There are some countries overseas where a credit card charge will automatically be rejected by your credit card company because they see it as a red flag that someone has stolen your identity.  Before your departure you should call your credit card company and tell them to make a note on your account that you will be traveling overseas to whatever countries you’ll visit for however long.  This way you probably won’t encounter the embarrassing situation of having a charge denied because your credit card company thinks you’re sitting at home when in fact you’re roaming the globe.

Leave some credit cards at home.  There really is no reason why you need to head off on your trip with a wallet full of credit cards.  Why would you need a department store card if you’re traveling off to some faraway land? Only carry the cards that you actually need.  Think of it this way: If you lose your wallet while traveling (or it gets stolen) wouldn’t you rather have as few cards as possible in the wallet instead if every single card you have?

Know how to reach your financial institution.  While you’re home you can probably just call a toll-free number and reach your financial institution at all hours of the day and night.  It may not be so simple while you’re overseas.  Call your bank or credit union and ask them what the procedure is for contacting them while you’re traveling out of the country.  Some financial institutions have international phone numbers while others will accept collect calls from overseas.  The point is to be able to contact your financial institution quickly if necessary.

Don’t forget to bring along some money to buy some gaudy souvenirs for all your friends at home!

If you have decent credit then you probably deal with a deluge of credit card offers in the mail.  Unless you’re searching for a new credit card, these offers can be downright annoying.  Not only do they take up room in your mailbox but they can also open you up to some potential identity theft issues if someone steals your mail and starts accepting the approved offers.  As if you needed another reason to detest unsolicited credit card offers in the mail, they waste paper too.

So what should you do when you’ve had enough of all these offers? There are a couple things you can do to slow down the credit card offers you get in the mail, or even stop them if you’re lucky.

1.  Call 1-888-5-OPT-OUT.  You’ll reach an automated system that asks you a few questions to verify your identity.  Be prepared to enter your Social Security number, but don’t worry that this is a risky act.  As long as you’re calling the correct phone number there is no reason why you shouldn’t input your Social Security number.

Don’t give your Social Security number out to other organizations unless you absolutely need to.

Calling the opt-out number stops the three major credit reporting agencies from giving your information to credit card companies who want to send you offers.  Without your name on the marketing lists sold by Experian, Equifax, and TransUnion you will receive far less credit card offers in the mail.

2.  Opt out of offers from companies you already do business with.  Your current credit card companies, bank, credit union, and any other financial institution you deal with probably discreetly tucks a Privacy Statement into your statements periodically, and if you’re like most people you probably glance at the paper and then toss it into your recycling bin.  You should take a look at this form because chances are it tells you that unless you tell them not to, they’re going to sell your personal information to other companies.

Find the opt-out phone number or website for the companies you already deal with and tell them to stop selling your information.  This should reduce the credit card offers you receive in the mail.

These things don’t take a lot of time to do, and in the end they can save you a lot of time sifting through junk mail.  It will also put your personal financial standing into a better position because your mailbox won’t be packed with credit card offers that make it easier for someone to steal your identity. 

There are a few things that are bad ideas when it comes to your personal finances. Any time you put money toward something where you don’t get something back can be the wrong financial move.  For example, you pay money for food because you need nourishment.  You buy gasoline because you need your car to go.  On the other hand, when you spend money with getting nothing in return - unless, of course, you’re donating to charity - then you’re not making the best financial decisions.

There is a big difference between the different forms of gambling.  Some people gamble once in a while for fun, knowing full well that they probably won’t ever see a return on their money.  A few people gamble as a profession because they have mastered whatever game they indulge in and have learned to accept the risk associated with gambling.

Then there are the other gamblers.  These don’t have to be people throwing dice in dark alleys or meeting up with bookies to bet on a sporting event.  Gamblers can be people who incessantly buy lottery tickets with the hopes of someday hitting it big, or people who go to local casinos quite often using the excuse of indulging in a buffet but instead wind up at the tables spending next week’s paycheck.

Not all people who spend too much money gambling are considered gambling addicts.  Some folks lose a great deal of money in a single bet and then decide to not ever gamble again.  The point is that people need to remember three important things about gambling:

1.  The odds of you actually winning are usually quite slim.

2.  If you don’t have any fun gambling then you’re not getting entertainment from the act, and therefore there is no redeeming value to the purchase.

3.  If you do have a lot of fun gambling, but you spend a substantial amount of money on gambling frequently, then the financial folly has exceeded the benefit of the entertainment.

Look at this example: Bob buys $10 worth of lottery tickets every week.  Once in a while he’ll get a small return on his investment by winning $20 or even $50, but for the most part he’s throwing his money away…especially considering his odds of winning the jackpot are about twenty million to one or more.

If Bob instead puts that same $40 into an interest-bearing savings account every month by the end of the year he’ll have almost $500.  Keep putting the same amount away every month for a total of ten years and with compound interest he’ll have over $6000 sitting in an account.  Double that to twenty years and Bob has a nest egg of almost $20,000. 

$10 a week can be thrown away on lottery tickets, or instead can be used to save for the future or even pay down debt.

Yes, it’s true that people do win the lottery.  Maybe Bob will someday hit it big.  The probability of him making at least the same amount of money from the lottery that he would by putting the money into a savings account, however, is really, really low.