[Blueprint...] $250 Social Security Stimulus Check

I’ve been getting a lot of emails lately about the $250 Social Security stimulus check so I thought a post would be the best way to answer all of your questions. If you’re wondering where your $250 Social Security stimulus check is, wait until June 4th before trying to contact the Social Security Administration. The American Recovery and Reinvestment Act of 2009 gave all social security recipients (SSI included) a one-time $250 payment, so if you are one of the 50 million individuals who get those benefits, the check is in the mail!

Who is eligible? You must be eligible for Social Security, SSI, Veterans, or Railroad Retirement benefits during November 2008, December 2008, or January 2009. If you were not eligible at that time, you will not receive the check. If you are eligible for multiple benefits, you will only receive one payment.

When and how will I receive the payment? You will get it the same way you are getting your current Social Security and Supplemental Security Income benefit. If you get it by check, you’ll receive the payment as a separate check. If you get it by direct deposit, you will get it as a separate direct deposit. The government has staggered the mailing of those payments throughout May so if you haven’t received it, it’s likely in the mail or in processing. You don’t have to do anything to receive the check and the Social Security Administration will not contact you for any information.

What if it’s after June 4th and still no sign of a check or deposit? Visit the Social Security Administration’s website for the one-time economy recovery payment information page to find out who you need to contact for more information. If you just want more information, this electronic booklet about the one-time economy recovery payment is also very informative.

$250 Social Security Stimulus Check

[Blueprint...] Lowest Foreign Transaction Fee

In a couple months, my wife and I will be taking an extended vacation to Europe. It’ll be a fantastic trip, one we’ve been looking forward to for months, and with the dollar strengthening and the economy across the world weak, we figured we could take advantage of lower prices to get some traveling done.

As I did a few years ago when we went to China, I wanted to confirm that my Capital One card still had the lowest foreign transaction fees. Fortunately, USA Today did all the leg work for me and has an updated list of foreign transaction fees by bank (Discover is excluded because it’s not accepted internationally, but they charge 0% as well):

1. American Express: 2.7%
2. Bank of America: 3%
3. Barclaycard/Juniper: 2-3%
4. Capital One: 0%
5. Citibank/Diners: 3%
6. Diners Club: 3%
7. HSBC: 3% (most)
8. JP Morgan Chase: 3% (most)
9. US Bank: 3%
10. USAA: 1%
11. Wells Fargo: 3%

Here’s the same list, reordered based on percentage charged:

1. Capital One: 0%
2. USAA: 1%
3. American Express: 2.7%
4. Barclaycard/Juniper: 2-3%
5. Bank of America: 3%
6. Citibank/Diners: 3%
7. Diners Club: 3%
8. HSBC: 3% (most)
9. JP Morgan Chase: 3% (most)
10. US Bank: 3%
11. Wells Fargo: 3%

Looks like Capital One retains the crown for the best international credit card. Which reminds me, I should probably make some small charges to it so it doesn’t get closed on me!

Lowest Foreign Transaction Fee

[Blueprint...] Review: Money Strategies for Tough Times by Matt Bell

Matt Bell is a personal finance writer in Chicago who ran into financial difficulties early on in his adult life and, in turning it around, used his experiences and knowledge to try to help others who may have gotten themselves in a similar situation. His professional career began as a radio journalist, having been featured on NPR, and Money Strategies for Tough Times is his second book, his first being Money, Purpose, Joy.

One of the unique angles about this book is that it incorporates religion, specifically the Bible, very heavily throughout its sections. While I’m not a very religious person, I can’t argue with Bell’s assertion that “Tough times call for timeless principles, and the principles taught in God’s Word have stood for thousands of years.” Religion, whether it’s Christianity, Buddhism, atheism or any other faith; is an integral part of our lives and it’s not surprising to see a book drawing on faith to overcome secular financial challenges. We often turn to religion in the darkest of times.

From an advice standpoint, it does a pretty good job. It lives up to its title of offering good strategies during a difficult financial time, with large sections of the book devoted to overcoming debt and how to handle job loss. With hundreds of thousands of workers losing their jobs each month, it’s not surprising that the book focuses so much on debt, loss of income, and how to intelligently tap into your reserves. As you would expect, there are even sections devoted to bankruptcy, rebuilding your credit, and the creditors you should never stiff (friends & family). Finally, as if offering a light at the end of the tunnel, there’s a smaller section devoted to sound financial strategies that are smart anytime.

Overall, I think the book has good, albeit somewhat pedestrian, information. The true value is in how Bell ties in the Bible and if you are someone who responds favorably to that, then this may be the right book for you. If you’re turned off by linking finances and religion, this book will be less valuable to you. I can guarantee you one thing, if you flip through it in the library or bookstore, you’ll know within minutes whether its right for you.

[TheSimpleDollar] The Simple Dollar Time Machine – May 30, 2009

Many newer readers of The Simple Dollar haven’t been exposed to the hundreds of great articles in the archives of the site, so this is a weekly series that highlights the five best posts from one year ago this week, as well as the five best posts from two years ago this week. I call it … the Time Machine.

One Year Ago (May 24-30, 2008)
Anticipation Buying – Sometimes we buy things in anticipation of a need, not in response to an actual need. Is this actually a sensible way to buy things?

Personal Finance 101: What Exactly Does It Mean to Own a Stock? – A great discussion on what it actually means to own stock.

The Methods You Use to Deal with Ordinary Life Will Fail You As an Investor – Investing doesn’t work like everyday life. In order to succeed, you need to control the impulses that help you to succeed in normal life.

Do I Need Long Term Disability Insurance? – This turned into a surprisingly useful discussion on whether younger working adults (particularly parents) need it.

Baking Soda: My Favorite Frugal Substance – There are so many useful ways to use baking soda – and it’s so inexpensive!

Two Years Ago (May 24-30, 2007)
Review: The Random Walk Guide to Investing – This may be the most insightful guide into how the stock market works (and why you should just invest in index funds) that I’ve ever read.

The “White Sheep” Syndrome: What To Do If You’re The Only Financially Sound Person In Your Family – A surprising number of people find themselves in this very situation. Everyone around them is drowning in debt and very poor at managing their money – and it causes a lot of problems.

Defining The Middle Class Through Statistics: Upward And Downward Mobility – The New York Times reveals some statistics on people who are upwardly mobile – and people who are downwardly mobile. I pull three usable conclusions out of the data.

Six Points of Advice If You’re considering Loaning Money to a Friend – Loaning money to friends is usually a bad idea. Here are six things to think about if you’re even considering it.

My Kitchen Bookshelf – These are the books I use for cooking advice and recipes in my own kitchen. I wrote this before I discovered How to Cook Everything, which is the best one-stop cookbook I’ve yet found.

If you’d like to browse through more of the archives, visit the chronology, where all posts are listed in chronological order.

Eight Ways to Get More out of The Simple Dollar
This is kind of a FAQ for new readers and is posted each week along with the Time Machine. Here are eight great ways for new readers to dig deeper into The Simple Dollar.

1. Subscribe by email or RSS. Visiting The Simple Dollar’s website is great, but for many people, it’s more convenient to receive the articles in another form. It’s easy to join 60,000 other subscribers and get The Simple Dollar’s content by email or in your RSS feeder (if you’re unfamiliar with RSS, check out Google Reader.

2. Comment. Each article on The Simple Dollar has lively discussion. Just click on the green square in the upper right of each article on the website and join in!

3. Read my story of financial meltdown and recovery. The Simple Dollar isn’t based on what I’ve read in books or learned in school. I’ve made a lifetime of financial mistakes – The Simple Dollar is a record of what works for me during the process of getting my life on a better track.

4. Download my free 49 page e-book. Everything You Ever Really Needed to Know About Personal Finance On Just One Page is completely free. It summarizes all of the key lessons I’ve learned along the way about personal finance in one tidy package – in fact, all of the main principles can be found right on the cover.

5. Follow me on Twitter. I post tons of interesting articles, quotes, follow-up material, commentary, and other material on Twitter. Follow me! If you’re unfamiliar with Twitter, it’s essentially an open discussion forum for people to share ideas and thoughts with other like-minded folks – you just choose the people you want to listen to and their ideas and thoughts are all delivered to you on a single page.

6. Dig through “31 Days to Fix Your Finances.” 31 Days to Fix Your Finances is an article series that outlines how you can get a grip on your finances over the course of a month.

7. Send me your questions and suggestions. Send me an email and let me know what you’re thinking, what you’d like to see, and any questions you might have. I try to respond to as many emails as possible and I read them all. I may even use your question in a future article!

8. Email a great article you find to a friend. Find an article that you think your friend would love? At the bottom of each article, you’ll find a link that says “Email this” – just click on that, type in your friend’s address, and send it right along to them!

[AllFinancialMatters] How Quickly Mortgage Rates Can Change, Affecting Your Payments

Think about this for a minute…

On Tuesday, the rate on a 30-year fixed mortgage stood at about 5.03%. That same mortgage had a rate of 5.44% on Thursday. To get an idea of what this means dollar-wise, I ran some numbers. Because mortgages are such big, long-term loans, small changes in interest rates can have a significant impact on payments and interest expense:

How changes in interest rates affect mortgage payments.

On a $200,000 mortgage, a person would have to pay $50.75 more per month if they took out their mortgage on Thursday instead of Tuesday. This increased interest rate would also mean that they would pay $18,269 more in interest over the life of the loan. Stating it a different way, 80.4% of the first payment would go to pay interest on the 5.44% mortgage while it would have been 77.8% with the 5.03% mortgage.

I included the last column in the graphic as a reference point to where interest rates were back in late October. In other words, mortgage rates have a ways to go before they are back to October’s levels.

If you’re in the market for a house, it pays to pay attention to mortgage rates. If you are looking, you might be wise to try to lock-in your rate. You’re under no obligation to use that rate (should rates decrease) but it does protect you should rates increase before you actually get the loan. Check with your bank or loan officer to see how long this protection lasts.

[TheSimpleDollar] The Art of the Marinade: Making Inexpensive Foods Dazzlingly Tasty for Pennies

Whenever I see great deals on free range chicken or beef, I stock up without hesitation, filling our freezer with pounds of roast, tenderloins, chicken breasts (and other pieces… and whole chickens), fish fillets, steaks, and chops. You might open our freezer and see dozens of pounds of such cuts, purchased because we found an exceptional deal.

One big complaint I often hear with such bulk food buying is that it’s boring. One older email from Jennifer sums this feeling up quite succinctly:

Buying food in such bulk quantities seems incredibly boring to me. What can possibly be tasty or exciting about having chops for the twentieth time this year?

I agree with Jennifer on one level – having the same old boring chops or chicken breasts every week for months would get quite old. I would certainly get tired of it, anyway.

The trick is to know how to jazz up these entrees, making them into something much more interesting – and with much more variety – for just pennies. Around here, most of our entrees find themselves undergoing some sort of preparation which will widely vary the flavor.

About Marinating Meat
The purpose of marinating meat is twofold. First, it serves to tenderize the meat – that’s why most marinade recipes include some sort of acid (vinegar and fruit juice are common ones). Simply soaking a meat in such a solution makes the meat softer – easier to cut and easier to chew. It also causes the meat to absorb some of the liquid, often making it moister.

Second (and perhaps more important), marinades imbue meat with additional flavors. During the process of softening the meat, the meat absorbs some of the liquid around it. If that liquid includes a variety of flavors, those flavors are absorbed into the meat itself.

Given the nearly infinite things one can use as a marinade, there’s a nearly infinite variety of flavors you can imbue your meat with.

What if you’re vegetarian? Almost any tough vegetable can be marinated. Zucchini, cucumbers, squash, and eggplant all turn out very well when marinated. In fact, I often use such tougher vegetables as a side dish.

About marinate versus marinade: marinate usually refers to the process of soaking the meat, while marinade refers to the liquid solution in which the meat is soaked.

Trent’s Ten Favorite Homemade “Nickel” Marinades
Here are ten homemade marinades that cost just pennies and can each really improve the flavor of your food. Using these marinades can transform an ordinary cut of meat in ten drastically different ways, from spicy to sweet, from sharp to subtle, from Mediterranean to Asian. Just mix the ingredients together, put the mixture on the meat in a bowl, and let it soak according to the times below – when it’s done, cook the meat as you normally would and enjoy some distinctive and delicious flavors!

Simple Marinade 1/2 cup lemon juice, 2 tablespoons olive oil, 1 teaspoon oregano, pinch of salt, pinch of pepper

Flexible Marinade 1 cup any kind of fruit juice you have on hand, 1 teaspoon garlic powder, 1 teaspoon black pepper, 1/2 teaspoon salt

Apple Marinade 1/2 cup apple juice, 1/4 cup soy sauce, 1/4 cup honey, 2 tablespoons lemon juice, 1/2 teaspoon garlic powder, 1/4 teaspoon mustard, 1/4 teaspoon ginger (this is fairly low acid marinade, so leave it on for twice as long as listed below)

Asian Marinade 1/2 cup soy sauce, 1/2 cup balsamic vinegar, 1/2 cup chunky peanut butter, 1/3 cup cilantro, 1/4 cup lemon juice, 2 tablespoons honey, 1 tablespoon ginger, 2 cloves garlic or 2 teaspoons garlic powder, 1/2 teaspoon cayenne pepper

Balsamic Marinade 3/4 cup balsamic vinegar, 1/2 cup olive oil, 2 teaspoons brown sugar, 1/4 cup minced onion, 3/4 teaspoon black pepper

Donkey Marinade 2/3 cup lemon juice, 1/3 cup olive oil, 1 teaspoon salt, 1/2 teaspoon pepper, 1 teaspoon Worcestershire sauce, 1 teaspoon mustard, 1 teaspoon garlic powder

Lime Marinade 1/2 cup lime juice, 1/4 cup oil, 1 teaspoon tarragon, 1 teaspoon onion salt, 1/4 teaspoon ground black pepper

Mediterranean Marinade 1 1/2 cups olive oil, 1 cup lemon juice, 1/2 cup red wine vinegar, 3 tablespoons oregano, 2 tablespoons garlic powder, 1 teaspoon salt, 1 teaspoon ground black pepper

Sneaky Marinade 3/4 cup orange juice, 4 teaspoons olive oil, 1/2 teaspoon anise, 1/2 teaspoon ground pepper, 1 1/2 teaspoons salt, 2 teaspoons tarragon

Spicy Marinade 1/2 cup lemon juice, 1/3 cup vegetable oil, 1 tablespoon onion, 1 tablespoon garlic powder, 1 tablespoon sugar, 2 teaspoons red pepper flakes, 1 teaspoon thyme, 1/4 teaspoon oregano

Teriyaki Marinade 1/4 cup vegetable oil, 1/4 cup brown sugar, 3 oz. soy sauce, 1 clove garlic or one teaspoon garlic powder, and 1/2 cup pineapple juice (this is fairly low acid marinade, so leave it on for twice as long as listed below)

(Oops… did I include eleven marinades?)

How Long Should I Marinate?
If you marniate a meat too long, the meat will become soft and mushy from the effects of the natural acids in the marinade. If you don’t leave it on long enough, the meat won’t gain enough extra flavor. Here are some starting numbers to use – obviously, times may vary depending on the size of your meat, but these should get you in the ballpark.

Beef roasts 2 hours
Beef large steaks 1 hour
Beef small steaks 40 minutes
Chicken with bones 1 hour
Chicken without bones 40 minutes
Fish 30 minutes
Lamb chops 40 minutes
Pork chops and tenderloin 40 minutes
Pork roasts 2 hours
Shrimp 15 minutes

Additional Tips
First of all, don’t toss the marinade when you’re finished soaking the meat! I like to pour the leftover marinade directly on the entree just as it goes on the grill or into the skillet. This packs an additional punch of flavor. However, do not save the marinade and use it later in the cooking process – a marinade must be cooked just like the meat is, and if it is not, you run the risk of ingesting unhealthy proteins.

Another use for the marinades: they make great mix-ins for burgers. Make up a batch of your favorite, then add it directly to ground beef or ground turkey, roughly 1/2 cup per pound of meat. It can really change the dynamic of the burger!

Another tactic I like to use to try new marinades to ask for marinades and sauces for Christmas gifts, particularly those from local companies. We go to several gift exchanges around Christmastime and a few bottles of marinade and sauce make for a great, easy-to-select gift. Combined with the inexpensive bulk meats in our freezer, these sauces and marinades can create a true flavor explosion – much better than some gift you’re anxious to return as soon as you leave.

Good luck!

[TheSimpleDollar] The Paradox of Thrift: Is Saving Money Bad for the Economy?

Two years ago (in those economic halcyon days before the so-called “Great Recession”), I wrote a short article entitled Is Not Spending Money Bad for the Economy? In it, I largely concluded (by my own logic) that not spending money – in other words, saving it – isn’t necessarily bad for the economy at at all.

Of course, this article was written against the backdrop of the economic conditions of the time. We were at the peak of six years of economic growth, with only the faintest hints of the economic onslaught about to occur. We, as Americans, also had a negative savings rate at the time – we were actually spending more than we earned as a whole (which meant that there were a whole lot of individuals spending far more than they earned).

Today, we live in a different world. Saving has certainly rebounded – many estimates show that the savings rate is now somewhere around 5%. The economy has certainly slowed as well, and countless trillions have been lost in a 50% dip in the stock market.

So, now’s the time to revisit that question: is saving money instead of actively spending it bad for the economy? Again, I come to the same conclusion – no – but this time, there’s a bit more food for thought on the vine.

The Paradox of Thrift
The whole idea that saving money is bad for the economy comes from the economist John Maynard Keynes, who referred to it as the “paradox of thrift.” (”Paradox of thrift” and John Maynard Keynes is one of those things you can bust out at a party to seem quite smart.) He believed that if everyone saved more money during times of recession, then demand for goods will fall. If demand for goods falls, then economic growth will stall, causing all sorts of additional economic problems (lost jobs, failed businesses, etc.).

It makes some sense on the surface. If everyone stopped spending money tomorrow, the economy would indeed fall apart. There are two big factors that keep this from happening.

First, when demand falls, prices fall, and when prices fall, people are more likely to spend money. That’s why sales always work – and thus businesses regularly have sales. If demand falls across the board, then businesses will lower their prices to get more customers.

Savings Accounts Contribute to the Economy
The second factor – and this is the big one – that makes the “paradox of thrift” fail is that putting money in savings accounts does not remove it from the economy. When you put money in a savings account, it becomes money that the bank can then lend out to businesses. Thus, when more people save, the banks have more resources to pump out to businesses, and when the businesses have more resources, they employ more people, innovate new products, and find new ways to sell.

This is a simple example of why the economy cycles back and forth between economic growth and recession. Right now, we’re in a recession and we’re putting our money away in various savings accounts and investments. That money is then being loaned out to businesses of all kinds who are taking advantage of the very low interest rates available. This means that businesses will soon begin hiring people – reducing unemployment and getting more money out there in the hands of consumers. With more people involved in steady work, more money will be spent and the economy begins to grow. Eventually, people stop saving as much – times are good. The banks then slowly close the taps since they don’t have as many resources for lending. Businesses feel the pinch and begin laying off workers – and we’re back to a recession again.

By saving, you’re actually doing your economic duty, just as you would be if you were buying things. A healthy economy needs plenty of both.

Hoarding Doesn’t Help the Economy
This, obviously, doesn’t include the guy with hundreds of dollars in his mattress or in his safe, or the guy who buys gold coins and buries them in his back yard. That type of saving (I view it as hoarding) does not help the economy at all, as it locks up money in a place where it’s not constantly being cycled back and forth between workers and employers, between businesses and customers.

If you’re concerned about whether or not saving money will help the economy, be aware that it will, but only if you actually invest it in a business (by buying stocks), in a community (by buying bonds), or in a bank where it can be distributed through business and personal loans. That way, you can not only build a safety net for yourself, but you can also do your part in making sure the economy functions like a well-oiled machine.

[TheSimpleDollar] How to Get a High-Paying, High-Integrity Job

One of my favorite sections in what is undoubtedly my favorite personal finance book, Your Money or Your Life, discusses the process one can go through to find a job that is both high in integrity (meaning it’s actually in line with your values – you’re not selling your soul or killing your spirit by doing it) and high in pay.

A lot of people, quite frankly, view this as an impossibility. The general equation seems to be that following your passions means low pay and following the bucks means ditching your passions. From my perspective, this feeling usually results from too many years working thankless jobs that are incompatible with personal ethics and passions. Others have made themselves comfortable with a low-paying job that gives them the freedom that they want, but not the financial resources to create a strong personal safety net.

Your Money or Your Life argues that there is a third way (and, frankly, so does What Color Is Your Parachute?, which is a brilliant guide solely focused on careers). From page 228:

There is no Job Charming. The people we’ve met in these pages have had to do a lot of soul-searching, risk-taking, experimenting, and challenging of old beliefs in order to move forward into jobs with higher pay and high integrity. They’ve had to see that their lives are bigger than their jobs. The parts of themselves that had been suffocated by their paid employment had to be given room to breathe again. Visions from childhood of how life could be had to be excavated from under the status, seriousness and self-importance that masquerade as adulthood. They had to tell themselves the truth about whether or not their current employment was really doing what paid employment is supposed to do: earn money.

In other words, Your Money or Your Life argues that it is very difficult (not impossible, but difficult) to spend significantly less than you earn and build a financial foundation for yourself if you’re working in a way that’s at odds with the person you are. The solution? Get your spending under control, then find a job that pays well and lines up with your values.

Job Hunting Checklist
But how do you actually find that job? The book offers a checklist, and here it is, with some of my notes.

1. Purpose What’s the purpose of the job? Obviously, a big part of the purpose is to get paid – you need money in your pocket, right? But ask yourself this: is the task you spend many hours of your life on each day actually have a purpose that you find valuable?

This is trickier than it seems, especially since jobs that seem to have purpose early on eventually grow to not have that purpose later on. I felt this to some extent with my research job, where I felt a great deal of purpose when I first started, but that feeling waned as my project matured, eventually leaving me still enjoying some aspects quite a bit (the people in particular, and some individual pieces of the work), but being nervous and going through the motions in other respects.

For now, almost all of the work I do earns some money, but perhaps more importantly to me, it has a purpose – I’ve somehow been blessed with the opportunity to write about things that actually help people and this stuff is read by thousands upon thousands of people every day.

2. Intention Do you have the internal motivation to actually make good on your goals? Procrastination and a lack of focus are your enemies. Self-motivation, on the other hand, is a huge ally.

To put it in a more tangible sense, think about the career you dream of having – the high-paying, high-integrity job that you’ve always wanted. That’s your goal.

What are you doing today to get there? If you’re not doing anything at all, you’re not actually motivated to get there. If you know what you need to do but keep putting it off, procrastination is keeping you where you are.

3. Willingness It’s one thing to know what you need to do to make it happen. It’s another thing entirely to put your foot down and actually do it.

For years, I dreamed of being a writer, particularly one who could reach a lot of people with stuff that actually affected and helped them, and made enough from it to at least survive. I held that dream in my head – and I let it flounder.

It wasn’t until I actually started trying to make it happen that it actually happened. And it didn’t happen immediately. It took years of constant effort, eating a lot of my spare time, to make it happen.

The most important step is the first one – and the willingness to follow that step with another one.

4. Consciousness Keep your eyes open. The world around you is full of possibilities. It sounds sort of trite, but it’s true. Our days are loaded with opportunities to stand out from the pack and do something exceptional and interesting.

Look at every interaction you have as a meeting with a potential customer. Look at every experience as a possible source for an article. Look at every shop you visit as a potential retail location. Look at every moment as a source for ideas and opportunities.

The more you step back and look at your daily life through this lens, the more opportunities will bloom into view.

5. Recognition When do you know you’ve been successful? Most of the time, it’s not a clear demarcation.

Your Money or Your Life argues that the only real way to tell if you’re successful comes from inside. You can’t use income or recognition from others as a metric – it comes from you.

Some people feel successful immediately, with only a bit of success. Others never feel successful. The truth, though, is somewhere in the middle – you’re successful when you wake up, realize you’re happy with what you’re doing and what you’re getting paid for it – and you can’t imagine doing anything else.

You can get there. Today is the day to get started.

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