“You want to do what?!?”

A recent discussion with my wife about our long-term retirement hopes was very revealing. The discussion went something like this:

Wife: “When you retire I think it would be fun to go to culinary school together and consider opening a restaurant. We have so much fun in the kitchen talking and cooking.”

Me: “Yeah. That would be fun. It would be a lot of work, but it would be fun. But what I would really like to do when I retire is be Donald Duck.”

Wife: “You want to do what?!?”

Me: “I want to be Donald Duck at Disneyland or Disney World. I think it would be fun seeing all those happy kids everyday. Don’t you?”

Wife: “I guess, weirdo. But wouldn’t it be easier and more fun being with me doing something we both enjoy?”

At that point I knew she had issued a checkmate, and I had best think about my plans more as our plans to stay out of trouble. It was also apparent that both ideas carried financial implications we have never discussed. Culinary school and funding a business are not cheap, nor is relocating to Anaheim or Orlando.

Consequently, a study from Fidelity Investments indicates this type of discussion is not entirely unusual. It finds we are not doing a very good job talking about our long-term financial goals with our significant others.

The study reports that only 45% of couples regularly discuss finances. And when it comes to retirement plans, 60% of couples don’t agree when they’ll retire, and 42% are like me and my wife–they don’t agree on what kind of life they’ll lead after they retire.

Does your significant other know your financial goals? Do you know his or hers?

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What Really Matters?

When the stresses of life and work bog us down it’s easy to forget the things that really matter or are of the most value to us. Here are three things that I have been reminded of recently that may be of some value to you, too:

Relationships One of my peers recently reminded me that while we’re working hard to handle the pressures of the economy on the bank and the daily duties we face, that we can’t forget we have families and relationships to strengthen. As one blogger effectively said it: “The regular companionship and camaraderie of people you care about and share interests with is continually life-affirming. [Relationships] don’t revolve around the things you have or the activities you can afford – they revolve around people and shared experiences.”

Gratitude I find that the more I’m focused on the things I do have, rather than focusing on that which I do not, that I am more cheerful and giving. I become more positive in my thoughts and speech. I become more content to work harder to reach my goals. I have more purpose in my daily actions and interactions. Cicero said “Gratitude is not only the greatest of virtues, but the parent of all the others.”

Service Helen Keller said, “Happiness cannot come from without. It must come from within. It is not what we see and touch or that which others do for us which makes us happy; it is that which we think and feel and do, first for the other fellow and then for ourselves.” It is in the act of helping others that many receive a great deal of personal joy and satisfaction – something that cannot be replaced by any sort of material item.

What really matters to you? What do you value most?

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Summer Travel and Vacation Budgeting

Contributing source: PracticalMoneySkills.com

If your kids are like mine, they have made you keenly aware of the fast-approaching summer break. And with the summer kick-off holiday of Memorial Day just a few days’ away, summer travel and vacation plans are being completed at a feverish pace. So here are some things to keep in mind, lest you overspend and end up with a year’s worth of debt for your freewheeling ways.

Plan Wisely
To help you reduce the financial stress of planning your summer getaway, we’ve found a cool and free web-based “travel calculator,” designed to help you plan your vacation budget and stick to it once you’ve left home. The calculator will help you determine the cost of gas (updated daily based on national averages) for your trip as well as account for all the small things that really do add up, and, if you’re not prepared, sneak up and cause you headaches for the rest of the year.

Take the stress out of your next vacation
Jason Alderman, director of Practical Money Skills for Life, shares insights and links to websites where you can research and save money.

Don’t turn a glorious summer into a winter of discontent
Thinking of spending beyond your means for this year’s vacation? Find out what that will really cost with Practical Money Skills for Life’s Cost of Credit calculator.

Stop identity theft before it happens
Keep your identity safe and your money where it should be– in your account. Be aware of situations that identity thieves love.

Check your credit report when you get home
Even if you think you’ve kept all your information and valuables safe, we recommend checking your credit report for suspicious activity when you return home. Check out or last post, “Tips to Help Build and Maintain Good Credit” for more information.

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Eating Healthy Without Breaking the Bank

I recently read an article in a SelectHealth publication about healthy eating that lead off with: “Do you go into sticker-shock when you load your shopping cart with healthy foods? A study in the Journal of the American Dietetic Association found that healthy foods such as lean meats, low-fat dairy products, fruits, and vegetables are significantly more expensive than junk foods.”

Oh. So that explains why I always fill my shopping cart with pre-packaged, pre-prepared foods–it’s cheaper. (Not to mention it usually lasts longer if I don’t eat it right away, and it’s less work.)

But what’s the trade-off?

Studies abound that show there are greater benefits from eating healthy foods like fresh fruits and vegetables than from eating the pre-packaged, pre-prepared foods. And other studies indicate that poor diets cause an increase in illness. And increases in illness usually cause increases in medical expenses. So is a less-than-healthy diet of cheaper, unhealthy foods less costly than increases in medical and prescription expenses? Probably not.

So here are a few tips for buying more healthy foods without busting your budget:

* Buy staples such as brown rice, oatmeal, and beans in bulk when they go on sale.
* Buy produce in season. Not only will it taste better, it’s usually cheaper. A local fruit stand like Verd’s Market on State Street in Orem or Chavez Fruit Stand in Lindon is a great place to look for deals.
* To lengthen the shelf-life of fresh foods like broccoli, cauliflower, carrots, corn, and other veggies you freeze at home, blanch them first. Put them in boiling water for one to three minutes, and then plunge them into ice-cold water. Drain well and then freeze in plastic bags.

For more tips on healthy eating and shopping on a budget, visit http://www.fruitsandveggiesmorematter.org/. For the complete SelectHealth article “Healthy Foods Don’t Have to Break the Bank” visit www.selecthealth.org/totalfitness, and click on the “Total Fitness Spring 2009″ link.

Of course, you can always plant a garden and a few fruit trees and grow your own healthy food, too.

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A Fortune of Frugality

In my efforts to be somewhat frugal, I have found a great little Chinese take-out restaurant within walking distance of my office with great food at a great price. In the fortune cookie that came with my meal today I received the following: “You shouldn’t overspend at the moment. Frugality is important.”

Certainly, practicing frugality is an important thing to do more often than “at the moment” when one considers the bigger picture of economic downturns, saving for a home, college, retirement, or building wealth. But, like many things, being frugal is sometimes more easily talked about than practiced.

Even the fact that I found someplace to eat within walking distance in order to save gas is overshadowed by the fact that I am still spending money for a lunch that could be even less if I packed one from home–even though I love Chinese food and the potstickers are the best I’ve ever had. (Fortunately for me, I have a great spouse who effectively, yet subtly, reminded me that I should be more conscious of my spending by making me a lunch earlier this week.)

So here’s the tip this week: Frugality is always a good idea. How to do it is up to you, but here is some helpful strategy advice from Wikipedia regarding “Frugality“: “Common strategies of frugality include the reduction of waste, curbing costly habits, suppressing instant gratification by means of fiscal self-restraint, seeking efficiency, avoiding traps, defying expensive social norms, embracing free (as in gratis) options, using barter, and staying well-informed about local circumstances and both market and product/service realities.”

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Savings Rate at 14-Year High (Duh)

The Bureau of Economic Analysis (BEA) announced on June 1, 2009 that April’s U.S. Personal Savings Rate hit 5.7%, the highest level since February of 1995 (5.9%). And although the economic stimulus plan was aimed at increasing spending to support the economy, much of the increase in real disposable incomes went into savings.

Moreover, in their search for financial safety and security over the past year, consumers have actively redistributed their financial resources. Encouraging this trend and seeking to help stabilize the economy, the FDIC has extended its increase in insurance limits to $250,000 to the end of 2013.

This news should come as no surprise to anyone.

Much of the opposition to the economic stimulus plan centered on concerns that the stimulus money would be saved, and therefore not provide the hoped for stimulus. The BEA report illustrates the fulfillment of the basic concepts that people are going to hold on to their money when, 1) money is getting harder to come by, 2) people are afraid to spend in an unstable economy, and 3) the smart spenders know that if they hold out long enough they can get a better deal than if they spend the moment they have a little money.

Note this simple definition from Wikipedia: “Saving is the conservation of money…Saving also includes reducing expenditures, such as recurring costs. In terms of personal finance, saving specifies low-risk preservation of money, as in a deposit account, versus investment, wherein risk is higher.” It’s not rocket science–in a down economy, people save.

So, at the risk of sounding like a punk kid, I respectfully say to the Bureau of Economic Analysis and all politicians who thought the stimulus should have had a different effect: “Duh!”

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Manage Your Accounts Wisely and Guard Against Fees

Many of our nation’s more than 8,000 community banks offer overdraft services to their customers who would otherwise inadvertently overdraw their accounts and thus become subject to fees and complications. In a perfect world, consumers would never find themselves in a situation where they may overdraw their account; however, we know our customers encounter situations in which overdrafts happen.

The following tips can help you manage your account wisely to avoid overdraft situations.

* Keep an eye on your account balance prior to writing a check or using your debit card. Prevention is your best medicine.
o Review your transactions on an ongoing basis.
o Use services, such as online banking, your bank may provide to help you keep up-to-date with your balance.
o Remember to record and deduct checks, automatic recurring payments and debit card transactions and to add any deposits that have not yet been posted to your account.
o Do not use your debit card like you use your credit card. Your debit card is like an electronic check and the funds are automatically deducted from your account.
* Ask your bank about all of its overdraft services. Community banks generally offer three types of overdraft services: overdraft lines of credit, transfers or sweeps from a savings account or another checking account, and overdraft coverage.
o Overdraft lines of credit charge interest but provide a safety net. They may also have a transaction and/or annual fee. If needed, disbursements can be repaid over a period of time.
o Transfer or sweep arrangements allow customers to cover overdrafts using their own funds for a small transaction fee.
o Many times a bank will choose to pay an overdraft for a fee to avoid consumers having the inconvenience of returned transactions – embarrassment, fees and hassles from merchants.
o Talk to your community banker about the best choice(s) for you.

During these challenging economic times, consumers are making tough financial choices–more so than they have ever had to do in the past. We want to be sure that consumers manage their accounts wisely. Most community banks provide some form of overdraft services, and do so in a way that best meets the needs of their customers. Remember that community bankers are there to help you.

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