Breaking Up With Bank of America

via prendio2

Last week, I called Bank of America to close my account. It was one of the final steps in merging my finances with my new husband's, but it's also something I've been eager to do for a while. Two years ago when I was working on tips, my income was uncertain, and some months I'd have a windfall and some months, I'd basically be broke. Because of those days, I had to downgrade to their e-checking account. This means that I had to carry a balance over some threshold, I had to pay to transfer money out of my account, and the clincher: I had to pay $5 any time I spoke to a teller.

Personally, I am okay with online bank accounts, and I loved ING and HSBC. I could do anything online/over the phone, and do it more efficiently than in person. Besides, I got higher interest rates because less B&M stores meant less overhead. But Bank of America has B&M locations and they have a lot of them. I always thought it was a given that as a customer, I could enter one of those locations, but this a la carte method of banking was new. And annoying. This $5 fee was really the nail in the coffin, even though I have never spoken to, and now will never speak to a BofA teller in person.

I'd been dreading the phone call, because I am never in the mood to speak to a retention salesperson. I've only called a handful of times to see what a company can do for me, and gone through the rigmarole when I needed to, but most of the time I am simply done with that company, and answering all those questions is so painful and aggravating.

Maybe it was because I had less than $400 in my accounts. Maybe it was because I've never had more than I've needed to pay my bills in those accounts (I keep my savings elsewhere, with higher interest rates and no fees for transfers), but they were not sad to see me go—I got the feeling they couldn't have cared less. Throw a girl a bone BofA—you are worse than my high school boyfriend.

Marie walked me through the steps, gave me confirmation numbers, and told me that my check should be cut by March 7th, and that I should receive it within a reasonable timeframe after that date. Easy peasy. She was very nice, and didn't fight me too hard on closing the account, but then again, they're probably getting a lot of calls like this these days. Maybe I did good to call on a Friday. Maybe I will be updating you in two weeks about my second phone call to Bank of America to try to close my account again.

Thrive Says So

How I've Tried To Save Money

I've been talking about saving money a lot recently, and I figured I'd share some of the ways I have managed to do that. The biggest savings I have seen in recent months has been in school supplies. I searched high and low for an inexpensive binder for all of the materials my professor has been giving us, but ended up going with something at Target that was functional—I was looking at the start of the school year, of course, so I was left with the bare bones. A day later, while we were at the recycling center, J pointed me towards a whole box full of binders! They were basically brand new, and after cleaning them off, they were even better than the cheapo one I'd picked up at Target for nearly $4 (after taxes)! So here are some of the ways I've been saving:

• Getting binder from recycling center ($4)
• Finding my T-square at Goodwill. They usually run around $20, and the wood ones can be even more expensive, but we'll just say that after paying $7 for this barely used wood T-Square at Goodwill, I saved ($13)
  
• Getting my textbook from the library. I did end up purchasing it after reading it, deciding I'd use it long after the class was over, and getting a 25% off coupon from Borders.com. I also had it shipped to the store to save on shipping costs (they were out of stock at all of my local stores and amazon, so shipping was necessary). I ended up getting a $21 (at brick and mortar stores) $17 (online) book for $13 ($8 if for some reason I had needed to buy it Right Now at the store, $4 if I could have waited for shipping, but not a coupon).
  
• I use cereal boxes to ship things that I sell on half.com and ebay. They're sturdy, and we're going to recycle them, anyway. If I cut them correctly, I don't use that much tape, so the cost of supplies I might have to buy is negligible. To pad them, I use newspaper or packing materials from things we've had shipped. I doubt I've saved much (since you can usually get packing materials on the cheap with very little effort), but it also saves me a trip to the post office/store, and thins our recycling pile, which brings me to the next item:
  
• Buying my postage online. You can get free priority boxes delivered to your address (I usually only use cereal boxes when my stuff doesn't fit in these boxes). If you purchase priority shipping on usps.com and print it out yourself, you save 10¢, and you get free delivery confirmation, which is a savings of about 85¢ per box shipped. I still have to go to the post office if the package is too big for a mailbox drop, but it's a faster trip. (I've saved $4.25 in the past month)
  
• I downgraded my cell phone plan. I'm lucky enough not to be under contract, so I have some options that I can easily change on a month-to-month basis. I'm contemplating a change in carrier in the near future, but for now I determined I could save $5/month by downgrading my daytime minutes. I rarely use my phone at the moment, anyway. ($10 so far)
• Taking reusable bags to the grocery store. I usually need two bags, which gets us a 10¢ discount (5¢/bag). Since we've started cooking more, I've gone to this store about once a week, sometimes less sometimes more, but I'd say it averages once a week. It's kind of insignificant at 5¢ a bag, but over a year we end up getting $5 for doing something we are already doing. Our local Target has now implemented the same policy, which I think is a great reward for a habit we already have. (~$5 this year)
• Buying generic milk. We both drink different kinds of milk, but I buy half-gallons for us every week. The generic is not only 50¢ cheaper, it's equally sustainable as the name brand we used to buy. This will save us up to $52 in a year. ($4 so far)
  

So, $50 later, I thought it was worth documenting. There are lots of little things I do these days that don't take much of my time, but because I do have the time (and not the money) it's worth the extra effort to save a few dollars. I could further calculate things like making our own pizza, which I know for a fact saves a ton of money (as often as we eat pizza!), but I thought I'd stick to things I've consciously done in the last two months.

Even though I can't fathom the time when I can start markedly saving up again, I have some significant financial goals I'd like to reach sometime in the next five years. If I can learn to live like this when I have a more appreciable income, it will be so much easier.

Things I Value More Than Money

Mental health . Being able to express my feelings in a healthy way, finding someone who can relate to me and sympathize with my problems, and being capable of addressing issues when they bother me. Seeking professional help when all of these options fail to make me feel better. Being free of anxiety and depression; feeling a sense of contentment and a zest for living life.

Physical health . Getting up and moving around every day. Not huffing and puffing when I walk up a flight of stairs. Eating better, exercising more, and making choices that will make me fitter, healthier and happier.

My relationship . Bringing someone else into my life who accepts me in a non-judgmental way. Someone who helps me grow, who supports me no matter what I want to do. Someone who I can open up to, who I can let into my whole world. Someone who knows the best and the worst and still wants to wake up next to me every morning.

Friends & family . People I care about who share my interests, whose relationships with me involve shared experiences. People who make my life richer and fuller just by being present.

Experiences . Interacting with people, seeing new things, facing my fears. The rush I get from experiencing something new and exciting isn't something I can buy.

Personal passions & hobbies . Activities that make me feel truly fulfilled, things that excite me and get me out of bed in the morning. Hopefully finding that seeking my passions can lead to a career, and eventually even making money doing something I love.

Personal Growth . When I look at how much money (and time) I've "thrown away" towards therapy, I remind myself how much I've reshaped and defined my life in the last two years. I have found many opportunities to grow as a person, to change my behaviors and my beliefs, to challenge my life's narrative and re-write a new story for myself. In my case, working to grow as a person has cost me a lot of money, and a few personal relationships as well. But knowing that I can change my outlook on the world for the better is invaluable.

Budgeting for Dummies Series: Thrive.com

The last piece of my budgeting puzzle was justthrive.com. Thrive tracks your spending, savings, and gives you a score (out of 10) based on how much money you are stashing away and how much you are spending based on your income level.

After you've been in their system for a short time, thrive will have advice for you whenever you log in. Whether it's "you're meeting all of your spending goals, keep at it!" or "You're overspending. Slow down!" thrive is like your honest best friend who keeps track of all of your money.

Thrive was how I found my high yield savings account, and occasionally they suggest I move my money around so that I can accumulate more interest. When I decided to get a new credit card, I used thrive in conjunction with mint.com to shop around and find the best interest rate and rewards program.¹

I highly recommend thrive.com, although it's system seems to update more slowly than either of the other websites I use for budgeting. I wouldn't use it alone, but your mileage may vary. It's very handy and very helpful in a refreshingly honest way (I was nearly offended once when the website told me to stop spending money, but then I realized that this was exactly why I needed budgeting software).

¹I only applied for a new credit card because my old credit card's APR was alarmingly high, even after I called and asked to have it lowered. I have an impeccable credit rating, though, so this is definitely something I do not in any way endorse, because it's not my place to recommend getting a new credit card to anyone I don't know. Any time you apply for new lines of credit, your score can drop, and it's up to you to determine whether a new line of credit is a good thing. While "freecreditreport.com" gets a lot of airplay, I've found that Credit Karma is a much better way to keep tabs on this information - and it's actually free. For more credit advice, there is plenty of information on the web, but you can start here for some tips.

Thrive has recently added a feature that predicts your credit score based on the information they have, but personally I've found that it highly underestimates my score for whatever reason.

Budgeting for Dummies Series: Mint.com

I have been using mint.com for nearly as long as I've been using Quicken online, since I joined mint about two weeks after I joined Quicken. Mint.com also has some pretty snazzy pie charts, and they have a very similar setup with the categorizing of transactions and budgets, although for me, the budgets on mint.com were more intuitive and easy to set up than the ones on Quicken.

The overview page allows you to set budgets by different categories and the bars will fill with color as you approach each limit, turning from green to yellow if you get too close, up until you hit the limit. It turns red if you go over your limit, and a little red number will pop up next to your budget, letting you know by exactly how much you went over.

Your accounts are listed in the left hand panel, and you can see transactions from each of them individually, or you can see all of them at once. The transactions tab allows you to categorize your expenditures and income, and all of this is very much like what I described in Quicken. Like Quicken, mint is also mostly intuitive, but some of the categories will need correcting at first. The only problem I've run into has to do with duplicate entries. I neglected to mention this last time, because Quicken is better about this than mint, but both systems have given me trouble with duplicates before. I assume this is because when I pay my credit card bills, it is seen as a debit from my savings account, but since my credit cards are also in the system, the actual purchase is also seen as a debit. Then the credit is only counted once, so I've had to hide some of my debits before - and I would recommend watching out for that, but it's pretty simple to catch.

The trends tab is where the fantastic pie chart lives. You can also analyze your expenses of each category by month in the bar chart at the bottom, and then compare your expenses to the averages in other cities in the U.S. If you click on a color of the pie chart, it will break it down further, and it lists the places you've spent money next to the pie chart, by frequency of your visits to each place. The sliding bar at the bottom lets you change the time frame from which the pie chart gathers its data, so you can see a few months at a time if you'd like.

But as I mentioned in my write-up about Quicken, the difference with mint.com is the next tab, where you can chart your retirement accounts. This can be a dangerous thing, maybe, especially in light of the recent economy...but on the other hand, it has been a blessing because of my recent employment status. I need to roll my former 401(K) into a traditional IRA, and mint.com has a lot of suggestions for doing just that.

The "Ways to Save" tab is the best part, so I've saved it for last. Since I started using mint.com, I have found a new credit card with better rewards (and 0%APR for a year, followed by the lowest APR I have ever seen after the year is up), and I have a new payment account that is accumulating a higher interest rate than my former one. Mint.com had all sorts of recommendations for me, and since I've moved on them, I've been happier with what my money is doing for me.

Budgeting for Dummies Series: Quicken Online

I've never been very good at saving money - as a concept I understand, but it's never been at the forefront of my decision making process. Immediately out of college, I wasn't spending that much, and easily saved that "three months' rent" that was so crucial, but that changed after I got my second job - there was more shopping downtown, so I spent more on clothes, books, music. There were people my age at that company so I spent more on lunch, drinks, coffee. I was dating someone and we were going out for dinner, drinks, movies. And then we moved in together, and suddenly I was allowed to decorate the Whole Apartment, wow! and suddenly saving for three month's rent was the last thing on my mind. Then I lost my job.

I was managing my money using Quicken online, because it was free, but then digg turned me onto a whole slew of websites, and while I highly recommend Quicken for its charts and management system, some of these other websites felt more like "money management for the everyday person," whereas Quicken obviously already has a reputation as a money management system, and can be as complicated as you want it to be. But since I've been doing this for a few months now, I decided it couldn't hurt to share what I've learned while I'm trying to find one or two of these sites and stick to them.

I still check in on Quicken from time to time, although it kind of started taking the backseat last month. Since I started with Quicken online, though, I figured I'd begin this mini-series by sharing my experience with Quicken online.


Adding my accounts to Quicken was no problem, but my local bank still has a difficult time synching itself with Quicken's system, which can be an issue since I use this account to pay for all of my paypal transactions, and all of my outside income is deposited into this account. It was also the main debit card I used until very recently, so having transactions from this account missing from Quicken was obviously a problem.

The thing I love about Quicken is the pie charts. They're colorful, wonderful and easily accessible. There is a sliding bar at the top of each page which allows you to choose a custom range of dates to analyze. On your home page, you'll find an overview of everything. The tiny pie chart updates immediately giving you a very easy to understand visual of your finances by the largest categories. Plus, there are gigantic colored bubbles at the top: [Money in] - [Money Out] = [Money Spent (So I overspent by...) or (So I saved by...)], which gives you an even more general visual to rely on.

Hop on over to the next tab, where you can view an interactive list of your transactions, which are automatically categorized by Quicken, although you can change them manually if you need to (I needed to do this quite a bit at the beginning, but Quicken is intuitive, and eventually catches on). Break it down even further by using the list on the left to select an individual account to view, or organize the list by category, or date, or payee to easily find a specific transaction, and change the "uncategorized" options so that you know where your money is going, specifically.

The next tab allows you to track your spending on a page with an Even Bigger Pie Chart, and this page bullet points your categories by color to break it down for you even further. You can click on the pie chart or the bullets to get a graph that shows your expenditures by month, how they're adding up, and how you're averaging out.

Finally, you can set budgets by category, and Quicken will let you know how much you have left in each of those budgets. These are set automatically by Quicken, but it's fully customizable so you can prioritize your expenses and figure what kind of spending you need to cut back on.

Quicken definitely had it all, which was helpful but at times felt overwhelming. However, it did not allow me to add my 401(K), and the categories were a bit broad - I didn't know where some of my expenses fell in when they were investments in my future, or when they were just plain old shopping. This is not Quicken's fault, though, and that's just one of the many things I'm trying to figure out broadly, in life, although a website could be a little more help to a girl.

Quicken's system updates very quickly on a day-to-day basis, so you won't be wondering where certain expenses are, because they'll be there if you use big institutions like Bank of America or Capital One. Smaller local banks may have problems - mine still does.

All in all, Quicken is a good deal, given that it's currently free. They may start charging again in the future, though, and that would definitely turn me off when there are so many great free options out there. Chelsea from Quicken commented to assure me that there are no plans to start charging for Quicken's online service, so you can be assured that this free service will remain free after you become addicted to monitoring your money. Next: mint.com.