MONEY CLIPPED

I did it. I bought flood insurance.

None of my neighbors remember our neighborhood ever flooding but that doesn’t mean its not possible. What happened in Iowa recently should be a wake-up call to all Americans. Just because no one remembers your neighborhood flooding doesn’t mean it can’t.

My insurance is costing me less than $300 a year for house and contents coverage. I hope I never need it but flood insurance is one of those things that its better to have and not need than need and not have.

This video talks about who should have flood insurance and some of the things you need to know about National Flood Insurance:

Somthing else you might want to check out is this article on problems with misleading flood terminology and the official National Flood Insurance Program website/

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I don’t believe in making loans to friends and family.

If someone genuinely needs money and I have some to give, I will but only as a gift. I make it explicitly clear:

It is NOT a loan. It is a gift and I do not expect it to be repaid.

I don’t want to hear them make any noises or promises about repayment. If the time comes when they feel they can return the gift, great, but I have no expectations of it. I have burned people who have loaned me money and I have myself been burned. I decided long ago that it would not happen again. When friends and family don’t repay money that has been labeled a “loan”, hard feelings always develop. Since I have no expectation of being repaid, I have never had a reason to feel bitter.

Some may consider this policy crazy but honestly, my friends and family know my policy and I don’t feel like any of them have abused it. If I ever did have any qualms, I would simply say I don’t have the money to give and leave it at that. I have seen friends and family torn apart by personal loans and I value my own friends and family too much to allow money to come between us.

That being said, I know many would never feel comfortable with that arrangement or for whatever feel compelled to borrow from or lend to friends and/or family. If you really must, then I highly recommend you formalize the loan. If they are sincere about paying you back, they should have no objections.

This video from Money Talks News covers more on the concept of formalizing personal loans:

You might also want to check out a site like LoanBack which can help facilitate the formalization of a personal loan.

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Ah, Summer! High temps and even higher electric bills.

Here’s some tips for keeping the costs down:

Or you could just move to Alaska…

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The other day I saw on a lamp post a flyer for a “credit doctor”. I was trying to imagine how desperate I would have to be to seek out credit and debt counseling from someone who advertises on the exit ramp light pole.

So it occured to me that a lot of people who are feeling desperate are probably also unclear what the difference is between credit counseling and debt settlement. Here’s a short video that should help clear it up for you:

After you watch the video you should also go check out this page at the FTC on facts for consumers about credit counseling, debt management plans, and debt negotiation.

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Natural disasters like last weeks tornados always get me to thinking about homeowner’s insurance (especially when a tornado does major damage only a few miles from my home).

I thought the topic of this video was particularly relevant considering all the property damage I was seeing on TV. We tend not to think about these things until we’re at their mercy.

Home Owner’s Insurance- Replacement Cost Vs. Actual Cash Value

VideoJug: What’s the difference between “replacement cost” and “actual cash value”?

Makes you wonder what it says in your homeowner’s policy, doesn’t it?

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Interview from the Today show where they go over web sites that can help you find things like free books, furniture, samples, and more:

I love free stuff!

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Luckily I’ve never had need of a credit counseling agency but I have had friends who did. I remember one couple I knew that some very bad experiences with a credit couseling agency. They just assumed that the credit couseling agency they chose was on the up-and-up and had their best interests in mind but that was far from the case. Can you imagine being in serious financial trouble and then find that the agency that you’ve turned to is trying to exploit you?

Maybe this video will help someone avoid making the wrong choice in an agency.