My husband and I purchased term life insurance a few years back with the idea that if either one of us kicked the bucket, so to say, earlier than anticipated, we wouldn’t be financially decimated by that experience. (Emotionally is another topic, obviously!) Our policy was inexpensive, about $40 a month, for a policy worth $100,000 in case of death and it covers us up to the age of 80. Term life insurance policies have no cash value, so there would be no way for us to cash it out. When we signed our policy, this was best option for our situation since we still weren’t financially responsible at the time and couldn’t afford the premiums on a whole life policy.

Last year, we added a travel accident rider that is worth twice the amount of our original policy. This covers car accidents, plane accidents, pretty much any accident where one is physically moving to and from a place. This week, my husband had to travel to a funeral. As I was booking his flight on Monday, I realized I had forgotten to pay the annual premium on this rider! Now, I’m not wishing any ill-will on my husband (I love him!), but the idea of him traveling clear across the country and NOT having this additional policy in place made me nervous. As he was traipsing across the country on a total of 4 plane rides then renting a car and driving on snow-covered roads, I knew we had to remedy this before he left. With a quick call, we made our payment and settled my uneasy mind.Yes, I know. This sounds very shallow, wanting to make sure I eek out every dime possible in case of death. But that’s what life insurance policies are for!

A few years ago, National Geographic posted a chart showing all the possible and probable ways to die. With death being a 100% sure thing at some point in one’s life, it was an interesting tidbit of information. If you look below, you’ll notice heart disease is the primary killer among humans followed by cancer, but motor vehicle accidents are 4th! Plane accidents involving deaths are pretty low, coming in 13th, just after bicycle accidents. Funny thing, I’m not so sure my rider covers biking, an activity I do frequently. Take a look for yourself:

Ways to Go from National Geographic and 10 Minute Math

Do you have a life insurance policy that covers your spouse? What about travel accident insurance? If you don’t have a policy, what reasons made you decide to forgo one? Is this just a morbid topic that you rarely discuss with your loved ones?

I'm burning my candle at both ends this week.

I’m posting this mid-week because 1.) I didn’t post any round-ups this past weekend, and 2.) I’m really behind on some projects…crap!  Some terrific articles have been written on various Yakezie member sites that I’d like to share, instead of banging out an article of my own. Enjoy!

• Sweating the Big Stuff and How to Raise Your Credit Limit (This also touches upon hard inquiries and soft inquiries)
• Young and Thrify and What’s Your Latte Factor? Of course I had to read this one! I love my Starbucks. However, it does make me think about spending my $2.50 daily. It sure adds up!
• Ultimate Money Blog is running a whole series on state economies. I love statistics! This one is about Alaska. So who wants to live near Sarah Palin?
• Rainy Day Saver changed the look of her blog too. I like it! Check it out. (P.S. I’m still working on mine )
• My Money Minute and Wine on a Budget. I personally am more of a beer drinker, but who doesn’t love wine? Okay, me. But most people like it.
• Monevator plays devil’s advocate on Wasting Money on Memories. Yet, the conclusion is well done.

Since I’m burning the candle at both ends this week (to use a figure of speech), I will make a point to post something meaty in the next day or so. Please hang in there,  I’m just juggling too many jobs right now. (That’s a good thing, though. Right?  )

Wells Fargo ATM

Until recently, when I would deposit checks into an ATM, it would take about 2 business days or longer for them to clear the bank. Since Wells Fargo has introduced the “No Envelope” deposit method at the ATM, they now post that day if deposited before 8 PM. What a convenience! Here’s what’s different, there are no deposit envelopes to use and fill out anymore. In the past, a bank teller would have to pull out the envelopes and manually enter them as deposits into your account. Now, I deposit the checks directly into the slot (up to 8 checks can go at once, I think) and the ATM scans the routing and account numbers at the bottom of the checks. The ATM asks for confirmation of the amounts of each check and total amount.  Those funds are available the same business day, as if you went into the branch itself and deposited them.

The new method decreases the likelihood of human error, and it also reduces the amount of check scamming. With the envelope, people could deposit toilet paper and withdraw money they really didn’t have. This wasn’t caught until a human opened up the envelope and realized the scam. Now, the ATM visually sees the check numbers and can credit your account that day. If you feel uneasy about depositing checks sans-envelope, you have the option to print a receipt with copies of the checks you deposited. This is very helpful if you enter individual deposits into your check register or Quickbooks program.  I admit that I love this new method.

However, this means that if you are writing checks, you need to make sure the funds are available in your account. Something most of us do, but now it is crucial. I’m sure that Wells Fargo isn’t the only bank electronically scanning checks and crediting funds immediately. If you write a check, you had better make sure those funds are there!

Here’ an overview of the new check scanning ATM:

• Saves you the time of filling out an envelope and adding checks manually. The ATM will automatically add the amounts for you, you just need to confirm the amount.
• Checks are credited that day, just as if you went into the branch. What a time saver!
• A receipt with copies of the checks is available for your records. Just like you receive a deposit receipt from a bank teller, the ATM can not only print a receipt, but also print one with the check copies in case you are uncomfortable with this new method.
• You can also deposit cash directly into the ATM and print a receipt with a copy of the bills you deposited. I’ve always been wary about depositing cash, but because the receipt prints the bills, I feel more comfortable now.

Do you use the ATM to deposit checks? What about depositing cash? Is your bank offering this type of ATM service? Would you use it if they did?

The Cap Light - Our passive income generator!

For years my husband has been on a mission to make money while we sleep, or figure out a way to make passive income. The beauty of this plan is simple: work more upfront, profit more later on and in the off hours. His plan is finally coming to fruition 11 years later. We’ve tried many side businesses on top of his web and graphic design business (our primary income) to get to this point. Some businesses include:

• Hot dog stand – Ended up being way more work than we thought, little profit. We quit 6 weeks into it. This wasn’t really passive income, since we were up at dawn brewing coffee, handing out danishes, and freezing on the street corner!
• Photography business -This just evolved into our successful graphic and web design business. I guess I can’t really count this as a side business or passive income either.
• Child ID Kits – My husband originally thought ID Kits would be the idea that would make us money while we sleep. It didn’t really catch on.
• FROG – Three years ago my husband had a brilliant idea (before the iPhone had launched), create a mobile portal for smart phones making accessing the internet a breeze. FROG is still going strong, but isn’t generating any income. We are still working on this one, I’m sure someday we’ll figure it out. For now it is passively working (over 10,000 active users) and adding new users daily. If anyone thinks they can help with FROG, please let me know!

Well, we finally hit one idea that is making money without a lot of work: The Cap Light. My husband’s goal this year was to begin networking with small businesses that he took an interest in. He could help design their website and marketing materials for a percentage of their sales. Now with the marketing in place, the orders are rolling in. My husband makes a small profit off each sale without much work on his end. Many of the ads came out this week in a few different travel and RV publications helping create most of the orders. As goofy as this product seemed in the beginning, it is a huge hit with campers, RV travelers, and just about anyone who needs a third hand to hold a flashlight.

We are working on another passive income generator that is a more lucrative business idea with a company that produces dependent eligibility audit software. In exchange for building their new website, we will profit 10% on every online or web sale. Since their product ranges from $8,000 on up, our profits could become very lucrative. With the success of The Cap Light this week, we can only hope that this next venture will also make us money while we sleep.

Ya’ gotta love that passive income! My 2010 motto: Work smarter, not harder.

What experiences have you had with passive income? Have you tried different business ideas to help generate additional income? Do you currently have a successful passive income generator you could share with us?

Ventura County at dusk

I love exploring city statistics, comparing them with the city I live in, and making comparisons to cities I contemplate moving to. One site I always go back to is BestPlaces.net. I can quickly use their city compare link and glance through their copious amounts of data. (The one draw back to using this site is much of their data is a few years old. I’m hoping that when the 2010 census is published, they will update their statistics.) Another feature I find helpful is personal quotes and opinions about cities that people leave on their site. This helps narrow down the positives and negatives of an unknown city.

I use this site when considering my options for moving. For instance, I’m currently thinking of moving to a neighboring county, Ventura. It’s only a 30 minute drive away from where I live in Los Angeles County. But their population is 1/10 the size. According to Google, Los Angeles County is busting at the seams at almost 10,000,000 people – Whoa! Ventura County’s population, just to the north west, is under a cool million.  Ventura County is almost half the size, but even factoring this in, the population density is 1/6th of that of LA County (according to Wikipedia). What a difference! Less density means:

• Less traffic! A huge problem with LA county.
• Better, smoother roads due to fewer cars. I’m really tired of the pot holes chewing up my car.
• Less people! I love our city’s diversity, but I feel a little like a sardine lately. Too many people in such a small area.
• Better bicycle infrastructure. Ventura county is more bike-friendly with bike lanes painted on most of their roads.
• Less graffiti. Because we have so many people, there’s more chance of hoodlums messing up the city. Lately, many of them have been having a heyday with spray paint!

When comparing counties, I’m also looking for a little break in the cost of living. According to BestPlaces.net, I will be saving money on most of my expenses. Below is a graph directly from their website:

City Cost of Living Comparison

I’m not claiming Ventura County is cheap in any sense of the word. But it is cheaper than where I live.

Another factor to consider is their employment, or unemployment rate, and future expected growth. Los Angeles, and California in general, is pushing an unemployment rate of 13%. Ventura, however, is slightly lower than that. Since I will also have to search for a new teaching job, or something temporary for a while, this may bring me more prospects. You’ll also notice from this data below that most people in Ventura make more money than those in LA county, promising at least!

Cost of Living

Because this data is slightly outdated, I know that the sales tax has increased about 1%, but it has all over California. Ventura County’s sales tax is still 1% or more less than LA’s. Again, another reason for me to think seriously about moving.

On a side note, Ultimate Money Blog is doing something similar, but comparing all 50 states. I find this data fascinating. If any one is thinking of moving out of state, this might be a good window into what other states have to offer. If you use her descriptions along with BestPlaces.net city comparisons, you might find a city and state you would prefer to live in.

What city do you live in? Have you recently moved to a new city? What data did you use? Are you contemplating moving?

This is the last part of the Half Dome hike. When I first saw this, I said no way! But then I did it and it wasn't that frightening.

As I am remaining to keep my blog quasi-anonymous, I realize that there are some things you should know about me. (I’m kinda stealing this post idea from Ryan’s 8 Random Things About Me post from Planting Dollars – Sorry Ryan!) So here are just a few quick and dirty facts about me:

• I’m short. Barely 5′ 2″. My husband, on the other hand, is a foot taller than me.
• I’m a Starbucks addict. You probably already knew this, especially if you checked out my guest post at gobankingrates.com.
• I love my green, Raleigh, Comfort bike. I bike as much as I can to Starbucks (of course!) to school, to the bank, to the grocery store. (Though lately I’ve been a little lazy !)
• I use Quickbooks to help track my spending. I’m the bookkeeper around my house, including handling all of my husband’s client invoices (he’s self employed), purchase orders, and even help out on projects occasionally.
• I’ve been able to pay down about $8,000 in debt. I still have more to go, but I’m getting there. I should be seeing that finish line in under 24 months, whew!
• My husband and I are hoping to purchase a house in the next year to year in a half. Perhaps a little house, under 1,500 square feet.
• I’ve increased my credit score by almost 200 points this past year. I need to raise it about 60 more points, but if I continue making on time payments and using my credit cards lightly, that should happen this year.
• I love architecture, especially little house plans. For those of you who are looking for terrific house plans, I finally created a ‘House Plan’ category and organized my posts that include links to house plan sites I’ve found. You can see this category on the right side bar. I notice that much of my Google traffic is from people searching little house plans, so here’s to you!
• I like to hike. I’ve hiked the Grand Canyon twice, hiked Yosemite’s Half Dome in a day (up and down), hiked Vernal Falls twice, and I hope to someday hike Mt. Whitney. (I’m not at all interested in Mt. Everest!)

Random facts that confirm I’m boring!

This photo reminds me of the journey towards financial freedom; lots of steps that are sometimes elusive.

I’m realizing that my goal to purchase a house with in the next year is still many months away. I started out with a 3-step plan: pay down debt, raise my credit score, save for a down payment. My first two goals are going swimmingly; I’ve paid off close to $8,000 in debt and am working towards paying off my line of credit and my car loan. I used a debt repayment calculator and found that at the rate I’m going, I should have both paid off in under two years. That’s great news, if I can pay it off before then, even better. I’ve also raised my credit score by over 100 points in a year. All there is for me to do is keep making my student loan payments, use my credit cards lightly, then pay them off in full every month. If I keep this strategy up, I should see a 740 score this year.

However, I’m struggling with the 3rd step of my plan: save a down payment. These last few months my income has waned. As a a temporary employee with a school district that is running out of funds, I’m seeing this as a long-term pattern. My husband’s business is doing okay, but he is only bringing in enough income to equate to one salary plus a part-time employee (who is a programmer). This means I have to develop a new plan for bringing in more income.

My plan is still in the fuzzy- vague-I’m not sure what I’m going to do yet stages, but at least I have a direction:

• Option A: Be a marketing genius and bring in more work for my husband, which would create a job for me. This plan is more long-term and the results wouldn’t be immediate. However, if I am successful, it would be my ideal option.
• Option B: Take on a part-time position with a local company or the Census Bureau. This would bring in extra cash for a few months while I develop a more long-term strategy, still allowing me to take teaching gigs.
• Option C: Stick it out with the current school district and hope their budget improves. This is a risky scenario, I don’t want to wait until the bitter end only to find out I was right all along.
• Option D: Go get a permanent position and switch professions. I’ve been teaching for almost 9 years, I haven’t had to work in a corporate office or go on a job interview in a very long time. I like my summers off and my three weeks of winter break. This option scares me!

As I switch gears and begin moving towards option A, I realize I need to be really organized and manage my time wisely. I can easily fall into a pattern of sleeping too late, or wasting time running errands when I ‘work’ for my husband. To optimize my time, I’ll begin focusing on tasks using my task manager in Outlook. This should keep me in line.

Have you had to change jobs lately? How do you manage your time when you’re at home? Which option would you choose if you were in my position? Do you use a program to help organize your tasks?

This week, there was lots of great content out there on some of my favorite blogs. Most of the blogs I read focus on personal finance, some on green living, and others on blog promotion. Here are just a few posts that stood out:

• Get Rich Slowly’s “Just Say “No” to Credit Cards: An example of how some people live without them. I, for one, lived without a credit card for 5 years because I had wrecked my credit. It made purchasing things easier in some ways, as I absolutely needed to have the cash on hand before making a purchase.
• Rainy Day Saver’s “Doing Your Research: Tax Credits and Deductions”: I learned something from this post; make sure you file for your energy efficiency tax credit. Great tips for that dreaded season.
• Fabulously Broke in the City’s “Overlooked Fashion Niches”: I’m not much for fashion or clothes, but she made a great point: many women do not fit the standard modeled clothing.
• Sweating the Big Stuff’s “Samurai Alexa Ranking Challenge”: A big thanks to Daniel for posting the updated stats and sites for all those participants, including me !
• Treehuger’s “Lessons in Sustainability Learned from Slumburbia”: Sprawling suburbs are wreaking havoc on our ecosystem. One that touched my heart.
• Planting Dollar’s “The Power of Why”: This post really digs into why we do what we do. The more we question, the better we become at navigating and achieving our goals.

Happy Valentine’s Day! (I know it’s tomorrow, but that’s my day off.)

It never fails, I take a few days off and I fall WAY behind! The work that was brushed off during my 3-day excursion to Arizona will most likely take me a full week to make up. This is a down fall of owning your own business or working for yourself: Work is in a stand still mode and NO PAID VACATION!

My extended family can’t really understand this, and feel a little irked that my husband and I can’t spend more time with them when we visit. They have full time jobs at companies that offer up to 4-weeks off of vacation time a year. For example, my husband’s sister has been working for a grocery company for 15 years. She gets at least 4-weeks paid vacation a year (if not more) and doesn’t worry about the missed worked when she isn’t in the office. Someone else will pick up the slack for her, or it can wait until she returns. Not that what she does isn’t important, it’s just that in a corporate setting, there is usually another person who functions in the same capacity and can handle the few weeks when she is on vacation.

Working for yourself means that it’s just you and perhaps your spouse, that handle all the client questions, concerns, new projects, etc. Even a hired employee really can’t make up for the time spent away, the client needs answers and decisions made. All you can do is hope your clients are understanding and are waiting for you when you return. Even if that means being bombarded with multiple projects and short deadlines.

Working for yourself also means that when you do finally take some time off, it’s time UNPAID. Your clients aren’t paying you to take a vacation. They pay you to finish their projects. If we do decide to take a few days off, we have to make sure we aren’t committing financial suicide: No Pay + Paying for a vacation or short trip =  less funds in the bank. In an ideal world when we have a break in work, we’d have copious amounts of cash floating around, enough for us to take a vacation. But this isn’t an ideal world. Usually, when times are slow, we stress out hoping to make all our bills for the month. Then, when times are hectic and the money is flowing, we don’t have time to take a break. Such a conundrum!

At the beginning of the year, I revised my budget based on our Quickbooks reports. Hopefully that budget will help us put extra money away during the good times to prepare for the slow ones. Eventually, if we can continue building our business, someday we’ll be able to take a stress-free vacation!

Every 6 months or so, we travel to Arizona to visit my husband’s family. We’ve gotten accostomed to making that 6 hour drive over the years. However, lately my husband really hasn’t been able to sit in the car for longer than 4 hours due to a bad back. We weighed our options for flying, and driving still was the less expensive option. So this time, we had to make arrangments to stay overnight at a motel.

Let me just say that our options off the 10 interstate are very few. The mid-point between our house and my in-law’s house is a truck stop called Blythe. If you’ve ever driven through that town, you’ll know that it’s not quaint, nice, or interesting. It’s actually pretty slummy. My husband had a frightening experience the last time he stayed overnight in Blythe driving to Arizona, so we decided to skip that town this trip. *Think chainsaw, dark parking lot, boarded up front door of his motel room.

Instead, we stopped at the next truck stop town; Ehrenberg, AZ, just on the other side of the Arizona border. Since we would just be staying the night, then leaving for Phoenix the next day, we were fine with the fact that the motel is literally centered in the parking lot of a truck stop. When I was researching our motel options in Blythe and Ehrenberg, there was a difference in price of about $10 after tax, with Ehrenberg being cheaper. It helped that Arizona’s sales tax is about 3 percentage points lower than California’s. For under $65, we were able to rest overnight, get cleaned up the next morning, and hit the road.

Of course there were cheaper options, like spending the night in our car (which is completely do-able). However, we felt that since we were saving money on air travel and a rental car, we could splurge this once on a cheap motel. Our drive back will be the entire 6-hours straight through. Driving home always seems to go quicker since we don’t have to fight the LA traffic going into LA. (Strange but true.) I would definitely stay overnight again if we had to.

Here are some of the things I researched when making my selection for a cheap, yet safe, motel:

• Location: Not far from the freeway and enough traffic to make the place seem safe. Also, mid-way or more from our destination.
• Price: A few motels in Blythe were over $100 a night, that seemed much too high for such a location. Our motel was under $65 just outside the California border.
• Reviews: I checked Trip Advisor for reviews of a few motels I was looking into. The Best Western we stayed in had over 4 stars, most people said it was clean and safe. It even had a refridgerator and microwave. The one negative review had to do with its continental breakfast, and I have to agree, it was really meager.

What experiences have you had, good or bad, with cheap motels?