Military Money Might has finally moved onto its own server!  The blog is no longer hosted on WordPress.  Now, the only place you will be able to find future blog postings will by at MilitaryMoneyMight.com. 

You do not need to do anything except update your Favorites in your internet web browser like “Internet Explorer” or “Fire Fox”.  You should continue to receive the blogs feeds either through your RSS Reader or over e-mail like normal.  Please contact me if you do not receive new blog postings this week.

Please update your links with our new website address: http://militarymoneymight.com

Moving off of the WordPress servers should be a huge improvement to the blog.  Now, all readers should be able to view the blog even on US Government computers!  There is also no limit to the types of files that will be available for you to download on MilitaryMoneyMight.com.  I will start uploading Excel spreadsheets, mortgage calculators, etc. very soon now that the new website is not restricted.

Thank you for all the support that you have given me over these past three months.  I’ve really enjoyed every minute of it.  I’m committed to growing the blog and helping members of the military, their families, federal government civilians, and anyone else who wants to learn about personal finance. 

I am always looking for blog post ideas to write.  So, if you have a question or a suggestion, please e-mail me through the blog’s contact page.  I would love to hear from you.  Thanks again….

Hank

I made the mistake of filling out a questionnaire form on the internet giving a real estate agency my name and phone number.  I had Googled real estate in the city my wife and I are moving to this winter, and a lot of great websites came up.  Of course, it was hard to get a lot of details about the homes without leaving my name and contact information.  So, this realtor from one of the websites called me out of the blue a few months ago.  And, before I knew it, she had stared e-mailing me MLS listings in our price range.

Meanwhile, my wife’s friend gave us the name of a real estate agent that she used and recommended.  This lady is highly recommended and seems really interested in our needs and wants in a new house.  Already, I can tell that this friend of a friend is a more professional realtor than the internet one.  There are a few jobs and services that just should not be blindly picked from the Yellow Pages or the internet (doctor, tattoo artist, etc.).  

But, now my question is how to let the other real estate agent down easy?  I guess that I’m too nice.  I feel badly that I have kind of led this realtor on for the past few months.  We have not signed an exclusive agreement with one of them yet, but that is coming.  A friend of mine recently told me to just tell her that it was a business decision and nothing personal.  I know he’s right, but I haven’t figured out how to word it yet.  I just have to get over it and make the phone call. 

Does anyone have any other tips or suggestions for me to make this easier?

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I cannot stand the military postal system, and I wanted to share a few tips with you about how to make the system work as best as possible for you.  No w, I know that this is not a personal finance topic, but lost and delayed packages through the mail can cost you a lot of time and money.  Understanding how the system works can help especially when you are mailing things to our troops overseas.

Packaging Matters A Lot.  Packages and boxes that you are mailing your loved ones should be wrapped and protected as much as possible.  If you cannot drop the box out of a second story window without it breaking on the ground into a million people, then you did not package it and wrap it with enough bubble wrap.  You have to understand that your loved one’s box is pass off from the United States Postal Service (USPS) to a military postal worker who sadly enough does not care enough about your boxes and mail.

Do Not Buy Express Service.  All military mail sent overseas to one of the 453 military post offices in 93 countries is first routed through New York and New Jersey by the USPS and then handed off to members of the US military or contracted postal clerks.  A box marked express or priority mail will travel very fast to the NJ/NY mail gateway, and then it will screech to a halt.  Express is a waste of money, and the USPS will not be able to guarantee a speedy delivery date past New York.  The USPS cannot guarantee any specific delivery date to an overseas APO for that matter.

Address Marking Tips.  Make sure that your package is marked well.  Put an index card with the address inside the box the case it breaks open.  Tape over the “to” and “from” addresses with clear tape to prevent smudges.  Like US mail, the correct zip code is the most important thing, and do not put a country name on any APO address.  It is considered a US address and could slow the mail down if any country name other than US is on that package. 

I am also very cautious about what I write on the customs form that I fill out.  It is very sad but theft is a huge problem in the military postal service’s system.  And, popular companies like Dell, Apple, Zappos, and Amazon do not do our Servicemembers justice when they plaster their companies’ logos on their boxes.  It’s a bright neon flashing sign for theft!  Do you have any tips on mailing boxes overseas?

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A friend of mine recently e-mailed me to let me know that there was some lost money in my name waiting to be claimed.  It was sitting idolly in an insurance premium that had been refunded and never claimed.  I guess that she had been bored one day and just started searching for everyone that she knew.  It’s not a bad idea, and many people can find missing money that the government and other companies owe them.

You can look for lost money in your own name as well at the National Association of Unclaimed Property Administration’s (NAUPA) website.  MissingMoney.com is NAUPA’s comprehensive national database that was established in 1999 to help the states inform citizens about unclaimed property.  The website will also tell you the procedure and who to contact to begin the claims process.

Some of the most common types of unclaimed property that can be lost and then found are bank accounts and safe deposit box contents, stock certificates, mutual funds, bonds, dividends, uncashed checks and wages, insurance policies, CD’s, trust funds, utility deposits, escrow accounts, and others.  Many people, especially professionals who move around from job to job every few years open bank accounts and conduct transactions throughout the country.  Do you have money in an old savings account that you might have forgotten about?

You can also check your state’s office of your state’s treasurer to find missing money that is owed to you.  The NAUPA has a link to most states’ offices directly on their website.  Check every state that you have lived in.  It could well be worth your time.  It was very quick and painless checking to see if I had any money left unclaimed in the six states that I have lived in throughout my life.

The money in question that my friend found in my name was actually my grandfather’s.  We share the same name, and the leftover money was for an insurance premium that was paid and eventually refunded the month that he died, over twelve years ago.  Thanks to my friends e-mail, my aunt (the actual next of kin) was able to retrieve her long lost $150, which was enough for a great night on the town.

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My wife and I both used to squirrel away money in hidden little savings accounts.  I put $50 a month in a rainy day ING Orange Account that it took me years to tell her about.  According to Money Magazine over half of all couples do not know their net worth and in some instances even the family’s total yearly income.  Lets face it…we keep secrets from each other.  There are a lot of road blocks that come into play when you combine two bank accounts, two households, two routines, etc. when a couple gets married.  A third of the people studied admitted to having lied to their spouse about money, and over 80% of all married adults hide purchases from their partners.

I didn’t really think that it was too big of a deal to keep certain bank accounts to myself, but then it dawned on me that it was probably a bad idea and not the best thing for my marriage.  Because I pay all of the bills and keep track of all our investments in the household, my wife really had no idea what our true financial situation was.  She had an idea of course but not the complete picture.  She had no idea if we were financially healthy or living paycheck to paycheck.  It is also important for members of the military to keep their spouses in the household’s financial loop because we are frequently deployed or in the field training.  Your spouse needs to know where all the bank accounts are and have access to them in case of an emergency while you are gone.

Now, things are different in our home.  Now, I give my wife a detailed net worth statement every few months to show her exactly where are family stands financially.  I honestly list every single asset and liability (debt) that we have as a family.  I tell her about every little rainy day savings account that I’ve socked away and about every last credit card balance.  Your spouse also needs to know what are all of your accounts and where to statements are.

Full disclosure and the transparency have made our marriage so much stronger.  You can check out this great net worth Microsoft Excel spreadsheet on the personal finance blog, Own The Dollar.  The spreadsheet can help you track your net worth, every asset and debt you have in your household, and the percentage an asset like your home contributes to your total net worth.  Knowing exactly where you are financially and sharing that information with your loved one will help you stay focused on where you are and where you want to go.

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My wife and I only use dollar bills when we buy things.  We refuse to use any coins we may have in our pockets to make purchases even if the result is getting ninety-nine cents back.  Then, when we receive a pocket full of change after our purchase, we save it all in a piggybank at home.  After a year of doing this, we usually have saved over $500 each year.  That’s a very non-intrusive way to make yourself save when you think money is tight at the end of every month.

This is a lot like the new debit cards that are out there that will round up to the nearest dollar.  These are great savings devices especially if you think that you do not have enough money to save for a rainy day.  One of my former Soldiers told me that they use a jar method like this, similar to envelope budgeting, where they save all their change throughout the year in a Mason jar in order to pay for their 4^th of July fireworks.  He was also teaching his children to save for a goal.  The more they saved, the larger their firework display could be.

I have even heard of people doing this “save your change” trick with $5 bills.  Every time they received a $5 bill through making purchases, they would then set the $5 bills aside and collect them in a piggybank.  That seems a little extreme to me, but it would surely raise your savings rate dramatically in a very short amount of time.  I think that this same system will work wonders with $1 bills though.  Every time you make a cash purchase and receive a $1 bill as part of your change, save it.  Keep them at home in a piggybank until you get $100 or any nice round number and then deposit your spoils into your bank account.  Try it out for a month and see how it goes.  No cheating.

In fact, that’s a great idea.  I am going to start this plan today.  For the next thirty days, I’m going to save every $1 bill that I receive and put it aside.  I’ll keep you posted with a tracker here on the side bar of Military Money Might on how much I manage to save.

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For many men, like me, finding the perfect gift for my wife is hard.  But, it doesn’t have to be.  There are two surefire ways to surprise your significant other with the perfect gift that he or she really wants.

Go shopping with your spouse and watch.  A friend of mind recently went with his wife to the mall, and he watched her as she browsed for jewelry, clothes, and other items.  He took mental notes about every item that his wife picked up, looked over carefully, and then put back down.  He paid special attention to the items that his wife made small comments about.  Days later, he went back to the mall and bought some of the items that his wife was eyeing in order to have great gifts for her throughout the year.  Doing this ensures that you do not buy her a gift that she will just return several days later. 

Save old gift ideas for a rainy day.  Personally, I like for my wife to give me a list of several potential gifts especially around her birthday and Christmas.  The more ideas she gives me the better.  Then, I usually only buy her a few things off of her list, but I continue to hold the list of the remaining items throughout the year.  My wife eventually forgets about the things that she’s mentioned to me as gift ideas after a few weeks.  So, when I present the long forgotten trinket to her months later for no apparent reason, I’m a superhero husband.

Knowing your spouse, paying attention to what he or she likes, etc. makes gift shopping easier.  Having your loved one give you gift ideas throughout the year and constantly watching are great ways to always have the perfect gift ready to give when your spouse least expects it.  So next time you are at the mall with your spouse, do not head to the couch in the middle of the department store.  Follow your loved one around for brownie points and secretly for gift ideas months in advance.

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Pre-qualification is an informal way to see how much you maybe able to borrow. You can be ‘pre-qualified’ over the phone with no paperwork by telling a lender your income, your long-term debts, and how large a down payment you can afford. A pre-qualification does not commit the bank to any obligation, but it helps you arrive at a ballpark figure of the amount you may have available to spend on a house.

Pre-approval is a lender’s actual commitment to lend to you. It involves assembling the financial records such as pay stubs, W-2 IRS forms, bank statements, documentation for long term debts such as car loans, tax returns, and proof of any other income sources you list.  A pre-approval begins the formal mortgage approval process. Pre-approval gives you a definite idea of what you can afford and shows sellers that you are serious about buying.

Pre-approval letters from lenders are the best way to go.  It will give you a definite advantage on negotiating buying a home and make the process a little faster.  You will not have to wait as long for the bank to approve the home of your dreams and possibly letting it slip away to another bidder.

A great resource to answer all of your home buying questions is the Department of Housing and Urban Development’s (HUD) 100 Questions and Answers About Buying a New Home.

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Here are some of my favorite and the most interesting articles from my RSS reader that I thought you might enjoy:

• A Brief Introduction to Asset Allocation – A very important topic that I have not covered very much yet.  Well worth your time reading this one!
• Investing in a Bear Market – Get Rich Slowly is one of the best personal finance blogs out there, and this post gives you some great tips and encouragement to help you through the market’s rocky road.
• Leave Your Money in the Bank. It’s Safe. – Great advice that people need to hear to calm their nerves in this bumpy economic climate.
• Photo/Video All of Your Personal Property – With as often as members of the military move around the country and the world, this piece of advice is imperative!
• Online Calculator Calculates How Much It Costs To Drive – A fun look at several websites that will tell you how much it will cost you to drive across the country to your new duty assignment.  Now we will know exactly how little our travel allowances are really covering us.
• How Your Credit Score Affects Interest Rates – A very sobering look at how intertwined your credit score is with the rest of your financial life.

What the heck is RSS you may be asking?  Great question.  I have no idea…it’s like magic.  But, other people know.  Here is a great post explaining it.

My wife brings out the best in me.  She challenges me and the way that I think.  She opens me up to a whole new way of looking at the world.  I guess that is one of the reasons to marry the woman, right? 

I used to be a horrible tipper.  I have never worked in the service industry, not even as a summer job during high school, and it shows.  I have never waited on tables in a restaurant, and I have no real idea what waiters and waitresses go through on a day to day basis.  My wife changed all of that.

Good service barely warranted a 15% tip from me when I went to a restaurant during high school and college.  My standard tip was 10% for normal service and 15% for great or outstanding service.  I was definitely a cheapskate.  A group of friends and I were chased out of a restaurant in Mexico one time for leaving only 10%. 

My wife, on the other hand, is one of the most caring, king, and generous people I have ever met.  When we were first married, I used to joke that a waiter could spit in her food and he would still get a 15% tip form her.  Of course, that was an exaggeration.  But, my wife was not voted friendliest girl by her high school for nothing.  After years of dating and countless debates on the subject which she always won (my political science major wife always creams her business major husband in debates), my position on tipping slowly changed.  No, I usually give 15% for okay to good service and 20% for great service.  I also go out of my way to praise a great waiter to the manager.  More restaurant managers need to get back to visiting tables at the end of the meals like they used to. 

My wife made me finally realize that servers are hard working people who make very little by way of hourly wage from the restaurant and depend on tips for a majority of their income.

What about you?  How much do you tip for good service?  Is 15% the standard now or has it changed and risen like inflation?  Is 20% the new 15?

I cannot let this subject go without getting a plug in for my mother (she hates when I do this by the way).  But, when I was a little boy, my mom used to always make me figure out the tip to leave the waiter.  She almost always gave a flat 15% tip no matter what the service was like.  We have all known people who carry tip cards in their wallets or purses, but my mom was a high school math teacher.  So, no tip cards for me.  I had to figure it out in my head or on a napkin.

So, just remember….move the decimal one place to the left giving you 10%, divide that by two, and then add the numbers together.  So, for example, a $75 meal, 10% is $7.50, half of $7.50 is $3.75, and then add them together $7.50 + $3.75 = $11.25 a perfect 15% tip.  Thanks, mom.  Another reason to give 20%….easier math!

The blog, Student Scrooge, recently approached this subject from the waitress’ point of view.

A Cornell University professor, Michael Lynn, published a paper in 2004 called “Mega Tips – Scientifically Tested Techniques to Improve Your Tips” which talks about the psychological factors that go into selling food to us in a restaurant.  It is a fascinating read on how customers respond to their waiters or waitresses.  Some of the strategies that the research found effective for the waiter included:

1. Wearing something unusual
2. Introducing yourself by name
3. Squatting next to the table
4. Repeating customers’ orders
5. Smiling at customers
6. Writing “thank you” on the check
7. Calling customers by name

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