“Under the Fed’s new rule, which will take effect July 1, banks will be required to notify new and existing customers of their overdraft services and give customers the option of being covered. If customers don’t “opt in,” any debit or ATM transactions that overdraw their accounts will be denied, Fed officials said.”

However checks and regular bill payments are not covered by this rule, simply because the majority of people would rather overdraft than bounce a check or a bill (like rent) not get paid. Which makes sense to me, and is probably for the best.

“Many consumers do want checks and regular electronic bill payments to be covered in the event of an overdraft, Fed officials said. As a result, those transactions aren’t covered by the rule.”

Why this has taken so long to come into effect is boggling, but at least it’s finally happening.

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I was having a conversation with co-workers yesterday on the gradual disappearance of checks. For most people, whipping out a credit/debit card is easier and faster. Personally I don’t think I’ve written a check in almost 2 years because I use ING and they’ll first attempt to send the transaction electronically -then- they’ll mail a check for me. Gotta love ING.

There are a couple different things I’ve done over the last few years to prevent so much paper waste from my personal finance sundries. Here are a few ideas:

Ways to Green up your Finances

• Switch to a bank that promotes electronic transactions over paper ones, like ING Direct.
• Opt out of receiving paper statements. If your financial institution provides pdf copies, save those to your computer instead.
• Consider a bio-degradable credit card. In December of 2008, Discover launched a bio-degradable credit card that breaks down when exposed to microorganisms, but was hearty enough to stand up to your wallet.  The article goes on to say
  

  “there were nearly 1.5 billion credit cards in use in the U.S. A stack of all those credit cards would reach more than 70 miles into space — and be almost as tall as 13 Mount Everests. If this number of credit cards were thrown away every three years, the stack of credit cards would reach almost 43 Everests high after a decade.”

• Or consider a green credit card that promotes reducing your carbon foot-print and funds renewable energy.  Alternatively you could select one that donates to certain charity funds.
• If you must send checks, buy checks made from recycled paper with eco-friendly inks. If your financial institution doesn’t offer either, I’d definitely ask them why.
• Get rid of the check register and track your finances with a digital finance tool such as Mint.com. Not only is it easier, but you can receive bill reminders and view reports of your spending and saving habits.
• Invest in Green stocks as noted by Mint.com and Treehugger.
• Get direct deposit for your paycheck -and- your tax refund. Not only do you get the money faster, but you’re not wasting paper each week.

What other ways can you think of to green our personal finance?

Don’t forget to Tip this article.

Here is an excerpt:

In addition to unexpected expenses, how about things you know are going to happen eventually? If you knew it was something that was going to happen, there’s no excuse not to prepare for it.

Right now my mustang is still on the original tires I bought it with in 2006. I’m going to need new tires relatively soon, so I need to figure out how much 4 new tires cost, and how much I can spare each month to put away for them. That way I’ll know my timeline, and I’ll be prepared, and I’m not dipping into my emergency savings because lets face it, this was not an emergency.

Stop by and read The Value of Planning.

As you can see, the main stickler for helping out your credit is making all your payments on time. It helps to incorporate the mindset that I have adopted over the last year or so in that I pay all my bills and myself first, then figuring everything else out later. Before everything else, including groceries, festivals, etc, I make sure my bills are taken care of, and that I have put something away into savings, and this has worked out quite well. It has also instilled in me the value of frugality.

A lot of people don’t seem to understand how credit (or even their own personal finances) works, and surprisingly I used to be in the same boat when I was married. I chock that up to being young and stupid.

When I left my husband, my credit score was 525. Granted that’s somewhere “in the middle” but the reality is, to people looking at your credit, that’s awful. I couldn’t get approved for anything, and I certainly wasn’t going to get approved for a car loan at that point.

Since then however, I’ve been slowly hacking away at my credit, and last I checked it was close to if not 700 or more. And being over 700 is right where you want to be.

I got my start with Capital One, which approved me for a meager $250 credit card a few years ago. I slowly worked up my credit, have an increase to $500 on that particular card, and was approved for another one with my military insurance for $5,500. After building up my credit with both of those cards, I was finally approved for an auto loan and now have my lovely mustang, and my very first new car. All it takes is time, regular payments, and understanding that buying things on credit is never a good idea. I do not buy anything unless I have the money to pay for it. If I don’t, it takes a lot of convincing for me to even consider it.

There are several agencies that claim that they will give you a free credit report. I used one called FreeCreditReport.com once, and while detailed and very use-friendly, it was also a scam, because it wasn’t actually free. And they also enroll you in a $12.95/month credit monitoring service.

Your best bet is to check your credit once a year at annualcreditreport.com, which will check with all 3 major agencies, and it -is- absolutely free.

My next step will be my first mortgage in the next year or two. By then my car should be paid off completely (if not sooner).

And remember, you are never too poor to fix your finances, and make sure you don’t commit the 10 most common mistakes when dealing with credit.

LowCards.com is a great online resource to compare your current rate and rewards with other cards. It’s also a good resource for comparing offers you receive in the mail. It ranks and reviews credit cards and explains the fees and terms found in the fine print.

They have also posted a useful Guide to Credit Cards. Though I personally don’t intend to, nor have I ever been that involved with my credit cards. I rarely use them, and never have big balances. I like to keep my credit cards manageable, and resist the temptation for large purchases unless I already have the money in my checking account.

Some of the articles on Roth IRA’s that helped me figure out what the I was going to do:

Open a Roth IRA at ING

How to start a Roth IRA and where to do it

Which Investments are Best for a Roth IRA?

Roth IRA vs Traditional IRA

A retrospective on Roth IRA’s

Starting your Roth IRA in 2007

Questions and Answers about Roth IRA’s

I put obvious items in, automotive titles, diploma, birth certificates, some court documents, external hard drive backup of all digital files. But I wanted to have an idea of anything else I should keep in there. Here’s what I found:

• Papers or records that prove ownership (such as real estate deeds, automobile titles and stock and bond certificates)
• Birth, marriage and death certificates
• Legal papers (such as divorce and property settlement papers)
• Contracts
• Household inventory
• Wills
• Advance Directives such as Living Wills or Durable Powers of Attorney for Health Care
• Anything else that would be expensive or difficult to replace.

Some other notations I found:

In general, bank account registers, canceled checks, transcripts, medical histories, employment records, tax returns and insurance policies do not need to be kept in a safe deposit box or fireproof home storage.

Some basic records should be carried with you at all times. Your wallet, billfold or purse is a small record system. Keep identification with you, including your driver’s license, name of person to notify in case of an emergency, credit cards, social security card and organization membership cards.

Health, accident and auto insurance information, and information on allergies, health problems and blood type should also be carried with you.

Thoughts

I haven’t done a household inventory yet, but it’s on my list of things to do. I may be able to do this with my digital camera as well, since it takes video. I can burn that on a disk and keep it in the safe, as well as a printed inventory.

I will mention that I created a database of my library already and keep it in digital format, should I ever need to replace all of my books. Movies is another story, but will be another task at some point. I also intend to keep some of my major software (Win XP especially) in the safe.

I’ve also been working on creating digital backups of all of our old pictures (this is a pain in the ass though, let me tell you), so that should I ever need to have them reprinted, I can (these are kept on the external hard drive as well).

I have $30k worth of renters insurance on our place here, which has an additional $3k coverage for my computer. I’m starting to wonder if $30k is enough, because I have no way to place a value on our belongings. We don’t really have many items that are worth much money. All of our furniture is hand-me-downs, -all- of it was free, and I’d be fine with replacing with other free stuff later. We have tons of antique oil lamps, but they are more for the memories than anything.

Next is finding out how long I need to keep certain papers. I’ve done a lot of research on this already, it’s a matter of posting it.

Fundamentals of Personal Finance – The University of California, Irvine provides an online introductory course to Personal Finance.

Working Woman’s Guide to Finanicial Security – The University of Illinois offers quite a few resources on financial information, this is just one of them. Others include tips for thrifty living, credit card smarts, and consumer and family economics.

How to avoid getting ripped off by a Mechanic – These should all be obvious, but we all know people who have no idea what to do about automobiles. Fortunately I do most of my own maintenance myself, so I don’t particularly have to worry about mine.

7 Secrets of the Super Organized. Though, they don’t really seem like secrets, just things we tend to put off.

Turn a C Battery into a D Battery with Quarters – Now if they could just turn AAA to AA, I’d be golden.

40 ways to reduce your monthly required spending – Several easy tips and ideas that people just don’t seem to think of for the most part.

7 ways to be a Cheap Date:

1. I prefer a nice home-cooked meal with a night in front of a warm fire or watching a good movie to a fancy dinner date with crappy food and bad champagne. You’d be surprised what the sentiment is behind preparing a meal and a nice evening at home with your loved one can mean.

2. Though I like diamonds, I also like many other rocks and gemstones (I’m a bit of a rockhound) and would prefer a nice peridot, herkimer diamond (quartz) and amber ring instead of expensive diamonds. I actually prefer jewelry made from bone, leather, and wood. I think a ring that represents more than just a pricetag is invaluable. Expensive 2-month-salary diamond rings are -not- an age-old tradition.

3. I own 3 pairs of shoes. That includes 2 pairs of boots for winter and everyday, and 1 pair of sandals. Otherwise I’m barefoot. No need to worry about me spending hundreds of dollars on 100 pairs of shoes. Imagine all the money you’d save if you didn’t purchase all those shoes laying in your closet. (Ever see Clean Sweep? I’ve seen people on there with 150 pairs of shoes) Instead, purchase universal style shoes that can be used with many outfits and attire.

4. I wear eyeliner and eyeshadow, and also brush my hair and go. That’s about it. I don’t need a separate bookbag just to carry all of my cosmetics and grooming accessories. I don’t dry my hair (it’s straight), I don’t put anything in my hair (I like au naturale). I believe that no one needs to spend hundreds of dollars a month on cosmetics to look good. A few barettes or hair pieces to sweep up your mane in a variety of “do’s” is all that is necessary.

5. I hate shopping. I really do. But beyond that, I like to wear my clothes out to the brim. And even then, I like to reinvent them as something else. Whether it’s rags or other garments or being refashioned into bags. The possibilities are endless.

6. My sweetheart knows a well-written letter and a bag of my favorite creme caramels are well appreciated. I don’t want a dozen expensive roses (I prefer plants anyway, so they grow instead of die) or a diamond necklace just to show me how much he loves me. I think people tend to forget the meaning behind gift giving. It’s not about the price tag or having the biggest and best. It’s about the meaning. Prepare a well-thought out gift for your loved one, they’ll appreciate that you didn’t break the bank to do it. Even if it’s just randomly gathering up some wildflowers on your way home from work unexpectedly.

7. The Big Day. People spend a retarded amount of money on their wedding day. It’s just a gathering where people come to celebrate that you’ve decided to be together. Why break the bank by purchasing needless expenditures when you can use this day to have fun and spend time with all the people that love you. Why not make it a pot-luck and allow your guests to provide all of the food? Support a friend or family member who may be a seamstress and have them create all of the gowns and dresses. Have your favorite type of cake made by a friend or family member as well, so there is plenty to go around without the pricetag.

I think the key element is to just not be a high-maintenance date. You should never have trivial financial demands of your significant other, instead you should both put forth the effort to focus on the relationship itself. You’ll be able to save for a comfortable retirement together, and know that you’ll be developing smart financial skills to pass on to your children.