Just a quick note before someone falls prey to this.  I just received a letter from my Citibank credit card, notifying me that my terms are changing.

In particular, the changes are:

1. An increase in the variable APR for purchases
2. An increase in variable APR for cash advances
3. All APR will be allowed to automatically increase up to 29.99% if I do not make the minimum payment or make a payment to them that isn’t honored.
4. A 3% fee for foreign charges will be added
5. There will be a transaction fee for balance transfer.

If you have a Citibank card, you will no doubt get it so I won’t go into each point in detail.  The section that I want to point everyone’s attention to is the “Right to Opt Out” section.

Apparently, we can call or write to them if we want to old (better) terms.  However, here’s the fine print that you need to think about.

If you opt out of these changes, you may use your account under the current terms until the end of your current membership year or the expiration date oon your card, which is later.  We will close your account at that time.  You must then repay the balance under the current terms.

Sounds to me like if you have a balance and opt out, you could be forced to pay off the balance in a few months!  So be careful and read the fine print!

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With Christmas only 3 weeks away, it’s time to start getting our act ready for holiday shopping!  Below are a collection of shopping tips so we can enjoy a happy, sensible and responsible Christmas!

1. Make a Shopping List - Write down everyone that you plan to buy a gift for and how much you plan to spend.  It’s not just to save money, it’s so you don’t miss anyone too!
2. Be Patient and Look for Deals - The bad economy means that all retailers are marking down their merchandise in a huge way.  Shop around at different stores and chances are you will find what you are looking for at a lower price!
3. Plan Ahead - Make sure you call the store to see if the item you want to buy is in stock.  Otherwise, you would’ve wasted your time and gas!
4. Organize Your Trip - Group your gift list into different categories and plan your route.  Trust me, it will save you so much time!
5. Buy Online - If you still haven’t bought anything online before, you are missing out because online retailers like Amazon often give huge discounts!  Remember to also calculate shipping into the total price before committing (better yet, find one that offers free shipping).
6. Don’t Buy More than You Need - Never fall for those offers that seem like a bargain but need you to buy additional products.  If you need only one, never go for the “buy one get one free” offers!
7. Clip Coupons - Go out of your way to find coupons.  It might be a hassle but it is time well spent!
8. Find Alternatives - When a similar product goes on sale, try to see if the savings is worth the trade off.  Sometimes, the product on sale might be selling for less and be even better than the one you were going to get!
9. Gift Receipts - Always ask for one just in case!
10. Get the Items Shipped ASAP - It’s the holiday season so shipping may take longer than usual.  Remember to get everything shipped to you in ample time or you might not have a gift to give during Christmas!
11. Beware of Your Belongings - Holiday shopping usually means long lineups and crowded malls.  Watch your belongings and be careful!
12. Try Using Only Cash - If you know that you are those people that can’t control yourself, use cash!  Having a limited supply of funds will surely help tone down the spending!
13. Credit Cards Might Be Good Also - If you use your credit card, find one that has the best reward program for retail goods!
14. Reward Points - Remember your reward points?  Maybe you can use some of it to get some gift cards this year to buy gifts!
15. An Activity Could Be Worth Even More - Gifts are not just tied to an item!  It could be a favor, an event or an experience so use your imagination!
16. Taking the Experience a Step Further - Perhaps it makes more sense for you and your friend to go out on a dinner or trip together instead of buying each other a gift!  It could be more fun and more financially sensible at the same time!
17. Don’t Buy Extended Warranty - Instead, buy the product with a credit card that offers double the warranty period.
18. Avoid Credit Card Advances - Always.
19. No Store Credit Cards - In fact, don’t apply for any new credit card during the holiday season.
20. No Interest Till 2010 - Don’t fall for this unless you already have the means to pay it off and you will pay it off immediately.
21. It’s Not a Competition - There’s no need to try getting the biggest or most expensive gift.  Try something sensible and personal.  The best gifts are ones that come from the heart.
22. Online Deal Sites - There are tons of sites that gathers all the great bargains available!  Check them out to save time and money! (One I’ve been using for years on electronic products is Ben’s Bargains.
23. Online Promo Code - Most online merchants have coupons and promotion codes all the time.  Before buying anything online, always Google to see if that particular merchant has a coupon code available.
24. Ask for a Discount - Cashiers often times have the coupons right in front of them to save time.  Always be friendly and ask if there are current coupons that apply to your purchase at checkout.  It won’t always work but it’s so easy that it’s worth a try!
25. Find a Shopping Buddy - True shoppers will look in every aisle and find amazing deals.  If you are one of them, you can save so much time and cover more territory by teaming up!
26. Have a Secret Santa Amongst Your Group - Instead of everyone buying a gift for everyone else, play the Secret Santa game and cut down on the number of gifts everyone needs to get!
27. Bring Your Own Shopping Bag - Why be environmentally unfriendly?  Bring your own bag and ask the cashier to save some plastic!
28. Avoid Crowds - Shop during early and late store hours.  You will thank me after
29. Free Gift Wrapping - If the store offers this, remember to take advantage of it!
30. Don’t Wait Until the Last Minute - Chances are you will be in a rush and all the budgeting tips will be forgotten!
31. Remember Yourself - It could be small but remember that you deserve a gift as well!
32. Use Common Sense - If it doesn’t feel right, it probably isn’t.  Use your judgment and remember to enjoy the holidays!

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• Celebrating Thanksgiving is a Must This Year

A man once told me that nothing should be unexpected because we can always expect that something unexpected will happen.  Right now, I’m too upset to figure out whether I agree with this or not because the unexpected occurred to me - I received a bill from my doctor for $100.

“Your health insurance will cover this” is what I hoped for.  “Your insurance didn’t cover Hepatitis A Vaccine. Please pay the balance due” is what I have to deal with.

There’s so much to complain about this bill but instead of the long rant post, here’s how I managed to not let this expensive wreak my budget and my mood (it is close to the holiday season after all).

1. The Emergency Fund - The tired and true advice of having an emergency fund!  The only reason why we keep coming back to this is because it is truly a life saver!  I know many of you don’t have one, so start contributing to one right away.  If you haven’t set one up yet and feel that you don’t have the means to do so, try starting small because even $25 or $50 a month can add up over time!
2. Stop Stretching the Budget - In other words, do not live paycheck to paycheck anymore!  We are extremely good at expanding our spending habits, so many of us gobble up as much of the paycheck as we can.  Consider keeping our spending the same when we get a raise, or try the many ways to cut spending!
3. Dispute It -  If it’s an overdraft fee, try calling your bank to see if there’s a way to get it waived.  As for my bill, my doctor did offer to let me pay with 4 installment of $25 instead of $100 if that helped.  Try to be calm and find a solution instead of being frustrated because the person on the other side of the phone can really help.

Unexpected or not, expenses need to be paid sooner or later.  While it’s easy to feel upset about these charges, some preventive maintenance can keep it from ruining our mood (or in my case, a great start to the holiday season).

Pay the unexpected bills with money we already have and stay cool!

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In a matter of weeks, I saw my portfolio erode at a rate that I thought was only possible in months/years instead days/weeks. The other day, I was looking at the disastrous performance of my stock investments through financial statements and asked myself one question: “Did I make a financial mistake by investing in stocks this year?”

These “after-the-fact” type questions usually does nothing but make me feel worst but I felt the need to give an honest attempt at answering because being invested this year was by far the most detrimental to my wealth.

As my thoughts race through my brain, the answer became increasing clear to me that starting to invest in stocks was not a financial mistake. The decline was definitely something I wish I avoided, but to call it a financial mistake was just not correct.

To carry on the discussion further, let me share with you some of the notes I took in my imaginary wall:

We Decide Based on Possible Outcome, Not Results.
When I chose to pour my savings into the stock market, it was based on the rational decision that:

1. Stocks outperformed other asset classes in any 20-year period
2. I was young enough to have many years of income to cover any potential losses
3. My time horizon was long

Due to the fact that we can’t predict the future and there’s no “undo/retry” in life, we decide the path to take based on all the facts present.  My investing approach was based on past history and my circumstances. My wealth took a disastrous dive but short term performance was simply not part of my consideration. I’m looking for long term gain, and these types of short term decline was what I was willing to tolerate and should be expected.

I Actually Made the Choice
Indecision is always the worst mistake that one can make.  If I did not decide to begin investing during the good times, there would be no way that I would start now when everything looks dark and gloomy.  As a result, I may never start investing.  It would preserve my capital this year, but earning 3% a year (and being taxed every single year) is definitely not advisable over the long run.

What I Do Consider a Financial Mistake
Let’s face it, many of us lost more money this year than any other. However, financial mistakes should be left for those decisions that we make when the facts points to the likelihood of financial disaster (Taking payday loans, splurging on credit cards without the funds to pay them off immediately, buying a new car just to keep up with your neighbors etc come to mind).

Deciding to start investing in stocks will never be a financial mistake. Ever.

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• Disaster day…

Another great month as we have hit 2000 subscribers with one full month to go!  With your support, we might hit 2100 or more by year end so if you still haven’t subscribed yet, click here now!

This month also marks another significant event because it’s the first time that I’m blogging full time!  I’d have to say that it’s good so far because I can definitely spend more time on my blogs.

Speaking of my blogs, those that still don’t know yet might be interested in my new blog, Investing School, which is aimed at talking about investing basics!  Judging by the early success, I’d say that it’s been quite beneficial for people who are learning to invest.  As always, let me know if you have any suggestions!

Last but not least, here are the more interest articles of the month for your enjoyment in case you missed it!

Parents, Kids and Our Money

• My Parents Taught Me Personal Finance
• 8 Bad Things You’re Teaching Your Kids About Money

Personal Finance Reflection

• If You Have Time for Shower, You Have Time for Personal Finance
• Do You Think Saving Money is Always Worth It

Household Frugality

• Reduce, Reuse, Recycle and How It Helped My Personal Finance
• On Groceries and Food Towards Our Financial and Physical Well-Being

Banks, Mortgages and Our Economy

• Building Relationships are Still the Way to Do Business with Banks
• Doubling the Mortgage Deduction to Help the Troubled Economy and Housing Market
• Fortune Magazine’s HENRYs are Getting it All Wrong

Did you miss some of the articles of the past month? If you don’t want to ever miss another one, please consider subscribing through the RSS feed or get it automatically sent to your email inbox!

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While I started working at home a few weeks ago, it’s still feels much more like a vacation when Emma stays at home for a few days as well.  I’ve been working on my blogs these few days but I’m quite relaxed and energized!  I planned a little 2 day getaway with Emma in Palm Springs, CA this weekend so I’m probably enjoying the sun right now while you are catching up on your personal finance readings.

Without further ado, here’s the articles that I found interesting!

• Squawkfox gave us a chance to talk about whether we will spend money on Black Friday or not!  Check it out!
• Blunt Money has a simple but effective idea - Make Frugality Automatic!
• We always talk about what this is but ABCs of Investing actually spent the time to explain what an index fund is.
• If you missed my Nuru Personal Finance Cards giveaway, no worries because Clever Dude is giving them away too!  Go here!
• Canadian Capitalist confesses about market timing!  Find out what he’s talking about!
• My Two Dollars wrote a thoughtful posts telling us to balance our bad debt vs good!
• The M-Network wrote an amazing guide on money saving tips for the holiday season!  A must read!

Carnivals

• Carnival of Personal Finance
• Money Hacks Carnival

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This is a guest post from Jonathan, one of the writers at Master Your Card.  The blog is all about teaching people how to be fiscally responsible, with the focus on helping readers to get out (and stay out) of credit card debt.

If you’re a parent then you probably know that your kids are always watching you and remembering the things you do. You may tell your kids that swear words are bad and you should never use them, but the one time you drop something on your toe and let out a hearty stream of cussing your kids think this gives them carte blanche to indulge in an occasional swear word.

In other words, the things you do have a huge influence on your kids whether you like it or not.

This is especially true when it comes to dealing with money. As a parent, you need to realize that you’re setting the stage for how your kids will eventually deal with money as adults. Remember: they watch everything you do, and they figure that’s the way it is supposed to be done.

Are you teaching any of these bad things about money to your kids?

1. Things just land in your hands. You’re walking through the store and your kid sees a candy bar she wants, so you grab it and give it to her. She then sees a coloring book she wants, and that lands in her hands too. At what point are you going to start explaining to your kids that everything in a store costs money?
2. Electricity is free. Even preschoolers can start to grasp the concept that all the resources they use cost something. Once they understand this they might actually start turning the lights off when they leave a room.
3. Saving isn’t a priority. Every kid should have a piggy bank and a savings account along with a parent who is willing to take the time to teach the basic principal of saving money. You should also make it a point to save money each month, and to discuss your saving methods with your kids.
4. The ATM is magic. The next time you stop at the ATM to get some cash, narrate the process to your kids. Otherwise you might inadvertently send the message to your kids that any time you need money, all you have to do is ask the ATM really nicely and voila!
5. Everyone has enough money. If your kids don’t ever witness you donating your time or money to people in need then they may not realize that there are people in the world who need help. Kids should learn that money can be a means to help other people and not just a way to buy a lollipop.
6. Delayed gratification? What’s that? Do you decide on impulse that you want something expensive (a new car, a new TV, or whatever) and then just go out and buy it on credit? You’re teaching your kids something dangerous: You don’t have to budget and save for the things you want. You can just get them and pay later.
7. Cash isn’t very useful. Do your kids ever see you using cash? If all they ever witness is you using your credit or debit card then they’ll have a hard time understanding what cash is all about. Make an effort to use cash once in a while and help your kids understand the basics of actual cash.
8. A job is just something we do. Do your kids actually understand why you head off to work every morning? Unless you tell them, they may not make the connection between working and income. Teach them about working to earn money.

Take a look at how you handle your own finances and then realize that this is probably how your kids will handle their finances unless you make an effort to teach them otherwise. If the thought of your kids eventually handling their money as you do now makes you shudder, it’s time for a change.

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Happy Thanksgiving! Remember that we have the power to be happy whatever our circumstances may be! Here’s a little story I want to share with you.

Once upon a time, there lived a King who, despite his luxurious lifestyle, was neither happy nor content.
One day, the King came upon a servant who was singing happily while he worked. This fascinated the King; why was he, the Supreme Ruler of the Land, unhappy and gloomy, while a lowly servant had so much joy. The King asked the servant, ‘Why are you so happy?’

The man replied, ‘Your Majesty, I am nothing but a servant, but my family and I don’t need too much - just a roof over our heads and warm food to fill our tummies.’

The king was not satisfied with that reply. Later in the day, he sought the advice of his most trusted advisor.

After hearing the King’s woes and the servant’s’ story, the advisor said, ‘Your Majesty, I believe that the servant Has not been made part of The 99 Club.’

‘The 99 Club? And what exactly is that?’ the King inquired.

The advisor replied, ‘Your Majesty, to truly know what The 99 Club is, place 99 Gold coins in a bag and leave it at this servant’s doorstep.’

When the servant saw the bag, he took it into his house. When he opened the bag, he let out a great shout of joy… So many gold coins!

He began to count them. After several counts, he was at last convinced that there were 99 coins. He wondered, ‘What could’ve happened to that last gold coin? Surely, no one would leave 99 coins!’ He looked everywhere he could, but that final coin was elusive. Finally, exhausted he decided that he was going to have to work harder than ever to earn that gold coin and complete his collection.

From that day, the servant’s life was changed. He was overworked, horribly grumpy, and castigated his family for not helping him make that 100th gold coin. He stopped singing while he worked.

Witnessing this drastic transformation, the King was puzzled. When he sought his advisor’s help, the advisor said, ‘Your Majesty, the servant has now officially joined The 99 Club.’

He continued, ‘The 99 Club is a name given to those people who have enough To be happy but are never contented, because they’re always yearning and Striving for that extra 1 saying to themselves: ‘Let me get that one final thing and then I will be happy for life.’

We can be happy, even with very little in our lives, but the minute we’re given something bigger and better, we want even more! We lose our sleep, our happiness, we hurt the people around us; all these as a price for our growing needs and desires.

That’s the 99 club.

Here’s a rule for enjoying life. Be Thankful and Happy!

Happy Thanksgiving!

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Good luck happens at least once in a while!

From Me:

For a long time now, I wanted a 3-wood (golf club) but never could justify the purchase. Yesterday, my wife hinted that she will get me one for the holiday season (Thanksgiving, Christmas). The retail stores must have heard the conversation because this morning when I woke up and checked my email, there was a coupon for 10% off! It’s almost like free money raining onto us!

From George, one of the winners of the Nuru Personal Finance Cards Giveaway

Thanks for the great news! I saw the posting earlier today and I’ll tell you it really makes a person’s day just to win something…hopefully I can put them to good use now. Thanks for all you do - I enjoy following your site.

Speaking of Thanksgiving, many people are very interested in the Black Friday sale here in the United States. In fact, some of them start lining up at around 6:00pm the night before and camp outside retail stores just so they can be the first ones to pick all the for-sale items the store offers when it opens the next morning.

One of my friends fall in that category, and his reasons for doing it are 3-fold:

1. Make Money - If he is able to get the limited supply amazing deal on electronics, he usually can resell it at a higher price.
2. It’s Like Going to See Madonna’s Concern - It’s for the entertainment and it’s free! (Although sometimes it’s quite cold)
3. Meet New Friends - Believe it or not, he told me that he’s met many friends through the years that he’s gone.  I guess it makes sense because where else are you going to find so many like-minded people that’s stuck in the same place for so many hours?

Interestingly the online world has created their own version - Cyber Monday (the first Monday after Thanksgiving).  No line ups but there are certainly great sales as well!

Isn’t the holidays fun?  Just remember to be responsible and don’t buy anything that you never intended to purchase.

It’s the day before Thanksgiving!  Ask your boss to let you take off early!

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This post is dedicated to every generous person who give out gifts during the holiday season! Have a great end to this year!

I grew up wishing all my gifts were cash. It didn’t matter whether it was my birthday or Christmas. Nothing is more versatile than money and I can buy anything with it, so I thought. These days, I know how ignorant I was.

Was I Even Happy?
Thinking back, I realized that I probably only bought a gift for myself with 5% of all the cash gifts that I ever got throughout childhood. While I didn’t waste the cash, I absolutely missed the joy and excitement we were supposed to get in the holiday season. The moment of opening the gifts, looking at those boxes under the Christmas tree and trying to guess what the box contains were memories that I didn’t have.

Giving Gifts is About Showing Them Your Love
I even carried the idea further. Since I wanted cash, I figured that everyone would do the same. Gift cards or cash gifts became a common present from me, but I now realize that it was all because of my laziness. I never took the time to think about what people really wanted. I didn’t spend the time to pick out a gift, and told myself that people would be happier with gift cards or cash.

What Made Me Realize All This
It was last night when it dawned on me that all the golf clubs were giving to me by the closest people to me. I remembered how many times I was out in the golf course and using those clubs, and how much I appreciated the wonderful gestures. I remembered the cash gifts too, but the names and what each person gave was vague.

It was at that moment when I realize that if I spend the time to pick a gift that someone could enjoy, it’s better for the both of us. Sure it wasn’t as versatile as cash but it creates another bond between the two of us. It allows us to share the same happiness - me picking the gift and the other person using it.

Enjoy The Holiday Season
If you were planning to buy someone a bunch of gift cards for everyone this holiday season, stop and think about this for a second. Is this really how you want to be remembered by? The person who can’t spend the time to get someone a thoughtful gift?

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