In the next couple of weeks, I’ll be on my way to Boston where I’m meeting up with Mom & Dad for our first ever family vacation to the East Coast. It will be great because I will be done with finals!! and I will get to go on vacation with Mom and Dad.
When I was growing up, our family never took big family vacations. My mom was too frugal for that, and my parents would use all their vacation days to visit my grandparents in Asia. So no money + no vacation days = no big family vacations for us. The only trips I remember were a trip with my aunt and cousins to Canada, to Stanley Park, and a combined family trip to Yosemite National Park in California in the late 1990s.
So, as I mentioned, this week-and-a-half family vacation is our first big family vacation ever, and I am so so so excited. This will be my parents’ first time to Canada, and my first time to Eastern Canada. I want to make sure they have a good time so I researched the heck out of AirBnB locations, emailed many friends and fellow bloggers for their tips on location and sights, and dug deep into bank account to the tune of $2,700 to pay for all of our lodging for this trip. I love to give “vacations’ / “experiences” as gifts, and I’m glad that we’ll have the money, the time, and the health to all go together.
I really hope my parents have a good time, and that I’ll be able to take them to other destinations before too long. My dream is to do an European river cruise with them in the next couple of years, and make sure we hit some big travel highlights (London, Paris, etc.) while they are still healthy enough to travel.
The other thing I realized is that as I get older, my desire to be closer to my parents – physically – has gotten much stronger. So funny. When I was growing up, it’s all I can do just to leave the nest and FLY AWAY. And now I realize that there’s something really great about hanging out with family. I hope that family vacations will become regularly scheduled programming and I’ll get to experience many new places with my parents.
The above picture probably makes it quite clear how moving makes me feel about furniture, clothes, decorative items, necessary items, i.e. all of the stuff that I own. My room is looking extremely empty right now, thanks to a frenzied bout of Craigslisting in preparation for my move after graduation. This situation is akin to a trial run for minimalist living – will I miss all the stuff I’ve sold / donated / consigned? Will I realize that I will never be as minimalist to go without a bed? (I just sold my bed, and so I’ll be spending the next few weeks sleeping on a makeshift futon. I hope I don’t live to regret this decision.)
This will be my fifth move in 7 years. I’ve schlepped my stuff and packed up my suitcases in 2007, 2009, 2010, 2012, and now, 2014… and every time I move I swear to myself that I will never have so much stuff again. I’ve mostly kept that promise in that I have progressively whittled down my number of possessions, but I know I’ve purchased more things than I needed, or things that I wanted in the moment but when the moving time comes I wonder why the heck!? The hardest thing for me will be to step back from the pretty/useful/quirky home decor items (a la a cheeseboard from the Oakland Museum of California, these soapstone horse bookends from Novica, and anything from Uncommon Goods). But with at least one more move – likely more – in the next couple of years, I need to remind myself that fewer stuff = fewer stuff to MOVE.
How do you feel about stuff when you are moving? Has moving around frequently encouraged you to scale down on the type of possessions?
So says a new Time Magazine article that concludes “Millennials are scary smart with their money”. After I read the article, I wouldn’t go so far as to say “scary smart”, but it seems that more Millennials understand the importance of saving than other generations. In fact, financial security may be one of THE most important priorities for some Millennials, over having kids, exercise, and fun (?!?! Is this smart or sad?)
A survey by the Principal Financial Group Knowledge Center found that…
84% of Millennials describe themselves as passionate about creating financial security—more than are passionate about raising well-rounded kids (60%), having fun (66%), making a difference (49%) and exercise (44%).
As an almost 30-something, I’m definitely closer to 34 than to 18. And as an older Millennial I’ve lived through the 2008 financial crisis / economic implosion. I’ve lived through a bout of unemployment. I’ve seen relatives get laid off. I’ve seen friends get laid off. Through all this I think I’ve grown to appreciate, even more, the importance of building a financially secure future. I wouldn’t say I’m fantastic with money, but I do think I have the basics down pretty well – I know I should save money, I make a consistent effort to save money, and I invest said money in funds appropriate for my risk tolerance and future needs. (And I don’t even need to photo-age my picture to get the motivation to save!)
Are you a Millennial (loosely defined as people between the ages of 18 to 34), and are you good with money?
One of the benefits of having blogged as long as I have is the the clearly noted purchases of years past. Going through my archives, I found many, many things that I’ve purchased and in retrospect, really shouldn’t, or I could’ve gone without. As I’m evaluating future purchases, I try to keep those shopping mishaps in mind.
Shopping Mishap #1 $300 Lela Rose dress
I wavered quite a bit on whether or not to snap up this beauty on sale, and ultimately did make the purchase. I still really like the dress and think it’s lovely, however, I would not have paid $300 for it again. I just don’t have that many occasions to wear it, and I believe in the past 3.5 years I’ve only worn it twice.
Shopping Mishap #2 $140 Kate Spade Tote
This Kate Spade Quinn tote is still one of my favorite purses in terms of style and color, but it just doesn’t fit my lifestyle. I am too afraid of spoiling the light-colored leather, and the open top makes it easy for things to fall out. So the result is I’ve carried this bag out the door at most 7 or 8 times in the past two years that I’ve owned it. If you think it’ll fit your life better, I’m selling it for $90 + shipping.
Shopping Mishap #3 $50 Urban Decay Naked Eyeshadow Palette
I bought the famous UD palette to do my makeup for my wedding. While I love the palette and the colors, it’s been almost two years and I’ve barely made a dent. I just don’t wear eyeshadow very much – at most once a week. So again, this was a case of being lured by the “pretties” and not realized what would actually work for my lifestyle. In hindsight, I should have just purchased an individual eyeshadow.
I think I need to reread #5 of Why We Are So Bad At Buying Happiness, and be more careful of getting things that will truly improve my quality of life.
Let me introduce you to the 3rd dress I’ve purchased in 2014: this 3/4 sleeve maxi dress from Old Navy, currently on sale for $25 + 30% off sale. I got it for just $15, and it’s one of the most comfortable dresses I’ve ever worn. I love it because it’s easier than putting on sweatpants and 10x more stylish. More impact, less effort. Sounds like my kind of dressing.
It comes in charcoal, deep red, black, and heather grey. I can probably live in a dress like this, so the challenge is stopping at one and not stocking up on all the colors.
Speaking of comfortable dresses, where do you get yours?
When CB and I were sharing our travel destination dreams, he mentioned that Japan is the one country that he really wants to visit. So… we are visiting the Land of the Rising Sun at the end of June. The whole reason we can afford this trip is because we redeemed our United miles for round-trip flights from Los Angeles to Tokyo. $2,600 worth of flights for only $78.80. Now THAT is a win in my book!
We will be spending 10 days and 10 nights in the country – 5 in Tokyo and 5 in Kyoto. Our accommodations are made via AirBnB, looks to be tiny by non-Japan standards, and averages out to $81 per night. I haven’t been back to Japan since 2005, and I’ve never seen Kyoto before, so that’s the part of the trip I’m looking forward to the most. Other than that, I’m excited about ramen, donburi, curry, and tempura! A luxe sushi dinner isn’t in the cards, nor is a stay at a Kyoto ryokan, nor do June/July have the best weather, but whatever… we are going to Japan!
Our budget for Japan:
- Round-trip flights: $78.80 (paid already)
- Hotels for 10 nights: $811 (paid already)
- Food, budgeted at $45/person/day: $900
- Attractions: Free is the way to go. Fortunately, many of the sights and temples do not charge an admissions fee. I may splurge on the 3,000 Yen fee to visit Koke-dera, or Moss Temple in Kyoto (~$60 for the both of us).
- Transportation: $360. This includes round-trip bullet train from Tokyo to Kyoto for the both of us, plus local transportation.
The whole trip should come down to $2,300 or $115/person/day.
Do you have tips and recommendations for Japan, particularly Kyoto and Tokyo? I’m all ears!
I’ve said it before and I’ll say it again: I love tax refunds. This love is exponentially increased when we are experiencing somewhat of a cash crunch and are trying desperately to bridge that gap between my full-time employment in August and the dwindling amounts in our saving accounts.
Last weekend, we stayed up until 2AM crunching the numbers, and it turns out that our Federal + State refunds netted out to $6,000. SIX THOUSAND. That sounds like a small fortune to us. Thank you Lifetime Learning Credit!
Did you get a tax refund? And what are you doing with it?
An almost $300 nylon bag (albeit one that gets RAVE reviews?) - I need you to Tell Me I Should Not.
Here it is, the Lo and Sons’ O.M.G. bag at $275. I’m eyeing the Army Green or the Navy option.
The O.M.G (Overnight & Medium Gym) bag was on sale a few days ago for select colors. I didn’t pounce and now that sale is done. But even on sale a bag was $220-$250, so it’s still a big purchase.
Anyhow, the O.M.G. bag looks like it’d be perfect as a carry-on bag that can double as a work tote, but the price! I got a Briggs & Riley suitcase that normally cost $450+ for $230, and it’s just really hard to swallow that a nylon bag – even a classy, well-designed one such as the O.M.G. - is worth almost $300. On the other hand, I will eventually need something that can hold my laptop, wallet, e-reader, toiletries, and even a change of shoes, and the O.M.G. fits the bill. On the imaginary third hand, again, the price. Plus, again, my not-working-no-income-grad-student status.
Tell me I should not, or at least I should wait. Or, alternatively, if you do have the O.M.G., share your thoughts on the quality and utility.
I’m going to live with a roommate after graduation, and it’s going to be great.
Up until a few weeks ago, I was sure I would live alone once I graduated. After all, my city has extremely reasonable rents once you venture outside the fanciest part of town. I’ve gotten past the adventurous stage of my life where I wanted to look for roommates on Craigslist. But… I’m going to end up with a roommate, and far from being disappointed, I am very excited at this turn of events.
We are hoping to find a little bungalow… like this one. But preferably more structurally sound.
My future roommate is a friend who is also moving out to the same city, who will be working in the same high-travel industry, and with whom I get along quite well. I’ve had pretty good luck with roommates (even with the folks I’ve found on Craigslist), and I don’t see any reason why my friend wouldn’t be just as great – or even better – than previous roommates.
There are two schools of thought when it comes to folks with frequent travel jobs. One is: “if I’m going to be on the road all the time, I want to come home to a place that’s nice and comfortable.” The other is: “if I’m going to be on the road all the time, I don’t want to pay for a nice apartment that I won’t get to enjoy 70% of the week.” My friend and I definitely lean more towards the second school of thought.
Therefore, we have decided to combine forces -and rent budgets- and live together so that we’ll have someone to come home to and save more money. Instead of each paying $650 or $700 for a 1-bedroom, we can easily get a 2-bedroom apartment for $950 and then only pay $475 a person. We’ll also share utilities / DSL. Then other added bonus for me is the one of reduced expectations. When I was looking at a one-bedroom, I felt the need to decorate and feather my nest to something Apartment Therapy-worthy. Now that I’m going to be living with a roommate, it’s almost a reality check. As long as things are functional and looks neat, that’s all I’m going to ask for. And functional + neat is a whole lot less expensive than chic and stylish.
I do wonder whether almost 30 is almost too old to share an apartment, but then I quickly banished the thought. It just makes sense – financially, personally, socially – to live with a friend/roommate in a city that is still quite new to both of us.
Also, the money saved! $200 a month is enough to pay my car note.
In the spirit of this post, share your BEST roommate stories.
Washington D.C is America’s capital city and home to some of its most historical monuments and buildings. The capital attracts almost 19 million visitors per year who arrive not only for the history but also to enjoy the city’s natural attractions.
No first time sightseeing trip to Washington D.C. would be complete without a visit to the National Mall to view the famous monuments and memorials. However, if you want to escape the hordes of tourists and get back to nature then you’re sure to find a few secret treasures in this city. Washington stretches for nearly 177 square kilometers and has plenty of parks and wildlife centers that visitors often overlook (and consequently, miss out!). Most of these attractions are free to visit, so your stay in the city won’t be more expensive, and most good Washington hotels will be able to provide brochures or details.
The National Arboretum
The U.S. National Arboretum is located around four kilometers from the Capitol building and stretches for some 450 acres. The Arboretum is home to the Grove of State Trees, which features trees from 50 U.S. states. You can relax and wander amidst fauna and flora, sit by the koi pond or spend some time walking through the woods. Admission is free and there’s a 35 minute open-air tram service if you’d like a guided tour through the gardens.
Great Falls Park
You don’t have to travel far from the capital to explore one of the U.S’s famous parks. Great Falls Park lies just 15 minutes from Washington D.C. and comprises more than 800 acres of beauty. Take a hike along the Potomac River and spot chipmunks, coyotes, deer and turtles. The more adventurous traveler can kayak at the Potomac River Gorge, but you should only do so if you’re very experienced. Great Falls is part of the 7,374 acre George Washington Memorial Parkway and makes a great place for picnics while taking in the stunning natural scenery.
Kenilworth Park and Aquatic Gardens
This is another city beauty spot and features paths that wind among numerous, giant lily-pad covered ponds. Wildlife is plentiful here and includes turtles, herons, and geese as well as a wealth of aquatic plant life. The park is open all year round and the snow- covered landscape instils the spot with extra beauty in winter. Here you can relax at no extra cost and take in nature while in one of the world’s major cities.
Washington D.C… it’s huge, it’s got lots going on it, but some tourists want to get away from all that and see a bit of greenery. They can, as the city provides lots of natural areas from them to relax and soak up some of the tranquility there’s also to be found in this majestic city.
This is a guest post on behalf of Hotel One. Images by bobistraveling and Ron Cogswell, used under Creative Commons license.
Save Spend Splurge alerted us to this gem on Twitter: a 4-figure (you read that right) headband, albeit with hand-painted silk flowers, that has already sold out on a luxury retail site.
Screen shot of Net-a-Porter. Click on picture for link to add it to your wish list.
I don’t know WHAT I find more surprising: the fact that this headband by Dolce & Gabbana really do cost over $1,280 or that it has already sold out. Everything is relative, and when I see the cost of this headband, I almost think those $300 Hermes flip-flops were a steal! And the $240 Etsy headband that readers talked me out of (thank goodness) looks likes a veritable bargain next to this baby.
I’m usually rankled when people judge other people’s purchases, because one person’s luxury purse is another person’s Greek cruise is another person’s Michelin dinner. But in this case…. I’ll put my judge hat on, at least for a little bit. I suppose shopping, as with all things, really is about different strokes for different folks. But still, $1,280 for a fabric headband.
If you have an hour free, I highly recommend this HBO documentary of Katrina Gilbert, a 30-year-old single mom of three who is raising her children and working full time as a Certified Nurse Assistant.
MUST FEED THE KITTY!
We crossed the $100,000 mark in November 2011, then the $150,000 mark in April 2013, and now we’ve crossed the $200,000 mark. I’m glad. For a variety of reasons, I’ve been feeling very discouraged and uncertain for a while now when it came to many areas of our finances – almost like a shadow I can’t shake. Getting to this point may be the encouragement I need to get my act together and really push for some big retirement saving goals.
In my $100K post, I wrote that:
By the time we reach our 30s, I would like to have $150,000 or even – if we are really disciplined and lucky – $200,000 in retirement. Given that we will be in graduate school for a couple of years, I expect retirement savings will dip a little (no more 401Ks!). But I am determined to continue to at least max out our Roth IRAs even through our graduate school years.
So again, very happy that we’ve reached this retirement milestone before the big 3-0. We haven’t finished our Roth IRA contributions for 2014 yet nor my 401K contributions for 2014, so our Retirement Kitty should hopefully grow by another $20,000 to $25,000 before the year is over. But WHEN is this magical compound interest supposed to kick in for us? I’m waiting for the day when our investment increases overtakes our contributions by leaps and bounds. At the very least, I hope that saving aggressively while we are young(ish) will help us to a mai tai retirement, or… avoid a ramen existence.
To celebrate, I booked an unplanned for trip to see my husband at the end of April. And we are going to go on a date.
Inspired by this post from Where My Soul Belongs:
Here are four things I used to think I need… and now I realized I don’t, anymore.
1. Meat to “complete” a meal
Growing up, a meal wasn’t a meal unless it included meat. I love meat and have no intention of ever giving it up, but for health and finance reasons I’ve been going meatless a few days of the week. Today, for example, I made a vegetarian omelet for lunch and an endive and apple dish for dinner. By limiting the quantity of meat I consume, I can increase the quality without spending a fortune.
Endives stuffed with apples, walnuts, almonds, and goat cheese. No meat, still delicious.
2. Expensive hair-straightening / hair-curling procedures
I’ve paid $250+ for strengthening and perming my hair, as my hair is too straight to be curly when I wanted it to be curly and too curly to be straight when I wanted it to be straight. In the past few years, however, I’ve come to terms with my natural hair texture. No more chemical procedures. My hair is healthier now, and my wallet is a little bit happier. I was so emboldened by my departure from outside assistance that I may or may not have even tried to cut my own hair a la this Youtube tutorial.
3. “Nice” brunches/dinners out
I still really enjoy nice dinners out, in places with great ambiance, service, and delicious food. But many of those places cost $30-$50/person, even when we hold off on the wine. Most of the time I’m more than satisfied with meals that are in the $15/person range. If I compare how happy I am with a taco dinner that cost $10 or a cheap-but-delicious Chinese dim sum at $15 a head, vs. a nice champagne brunch that costs $35/person, I realize that most of the time I am not $20 happier with the more expensive option. I like to say to CB (who always complain that I am a picky eater – I prefer the term “selective”) – I may be a snob about how food tastes but I’m not a snob about prices.
4. To live away from home
I’ve turned a complete 180 on this. When I was in college, my only goal was to find a job post-graduation that paid enough for me to not live at home – I did not want to be a boomerang kid. Now, I realized what would make me incredibly happy is to buy two houses (or a duplex) and live next door to my mom (I suggested we live together in one big house, she vetoed that idea), hang out with her on weekends, and enjoy her fried rice every other day. Seriously. As I and my parents get older, I feel like my desire to be close to them is blossoming in a way that I never quite expected. In fact, I made more of an effort to see my parents in grad school (across the country from them) than I did in college (40 minutes from them). At the end of the day, I just want my home to be close to their home. I just want our homes to be all together.
What are your “I used to think I need” items?
Can we have joint finances without having joint bank accounts? CB and I haven’t set up joint accounts nor do we have plans to do so in the near future (mostly for logistical reasons due to a long distance marriage), but we need a way stay updated on our total financial situation.
So I came up with the idea of a Shared Dropbox folder between the two of us.
As you can see by the picture, the idea is that we can input our account/loan balance numbers into the Excel documents and upload our Credit Card statements in Excel format at our leisure. That way we’ll both be aware of what’s going on financially. Some couples have great success with Mint.com, but for a variety of reasons we decided that’s not the route for us. So we had to figure something else out – something quick, secure, and simple.
The Dropbox shared folder system fulfills our needs. We don’t have account numbers in the Dropbox (for example, a retirement account would be listed as Her Vanguard Roth IRA with a balance of $59,000). This way, even if the folder were to be compromised, there’s nothing super sensitive at stake.
I can’t believe it’s taken us so long to do this.
What system do you use to track finances with your partner?
Two of my unofficial goals for our marriage are to (1) add each other on Vanguard so we can check out each others’ retirement balances, and (2) have more fun dates.
I’ll talk about (1) at some point, but I figured (2) is a more interesting topic.
Here are some of the dates I have planned / are planning to plan (all $ amounts for the both of us):
- hiking: free! except for gas to get to/from the site
- horse-back riding: $85
- beer brewery tour: $10
- special exhibits at museums: $15-$30
- tour of State Capitol buildings: free!
- bread-baking class at a local bakery: $65
- stand-up paddle boarding class & tour: $50-$80
- archery class for beginners: $10
- paint & wine night: $45-$50 + $20 for drinks
- observatory tour and drive: free!
- guided tour of elephant seal breeding grounds: $14
- game (or two) of pool at the local pool hall: $30
Why these dates? Two reasons. One: I read that doing new and exciting things on dates can help long-term couples rediscover that spark (scientifically known as “limerence”) they had during the first few years of a relationship:
Most studies of love and marriage show that the decline of romantic love over time is inevitable. The butterflies of early romance quickly flutter away and are replaced by familiar, predictable feelings of long-term attachment.
But several experiments show that novelty — simply doing new things together as a couple — may help bring the butterflies back, recreating the chemical surges of early courtship.
“We don’t really know what’s going on in the brain, but as you trigger and amp up this reward system in the brain that is associated with romantic love, it’s reasonable to suggest that it’s enabling you to feel more romantic love,” said the anthropologist Helen E. Fisher, of Rutgers, who has published several studies on the neural basis of romantic love. “You’re altering your brain chemistry.”
That article showed me that CB and I have doing the whole “dating” thing kind of wrong – a dinner at home followed by a movie on Netflix is just not going to cut it. We need limerence, people! I try to have some free dates sprinkled in with more expensive dates that I can find for cheaper on Travelzoo, Groupon, or Livingsocial, and I am making a concerted effort to do something active on our dates so that we are not just sitting around all the time.
The second reason is that we are in a long-distance marriage. If I am flying 6-8 hours to see CB during our once-a-month visits, there BETTER be something for us to look forward to (or else it will be all about setting up a joint banking account or filing for taxes or getting a passport application – all very important things, but if there isn’t the fun to balance those tasks out, I die a little inside).
Speaking of long distance marriages – I know quite a few people in those, especially many of my MBA friends who had jobs they just couldn’t turn down that are not in the same locale as their spouses. I never thought I would much care what other people are doing, but I am happier than I expect I would be when I find out about other long distance marriages. Not because I want people to be away from their husbands or wives, of course, but because those stories demonstrate that a long distance marriage isn’t weird or abnormal, it’s just another way of doing things, and it can work and it can work out pretty well. In fact, I’ve been pretty content with the long distance aspect of my marriage – content enough to continue it for at least another year or two. Sometimes it’s a balancing act between how much we connect and how independent we become, but I don’t think the distance causes any problems that we wouldn’t have without the distance.
Anyhow, back to the dates. If we only see each other once a month and we want to keep that spark, we need to make the times we do see each other extra fun and enjoyable.
Share your date ideas for keeping the limerence strong!
I’ve always loved summer jobs. There’s something amazing about trying out a new role for the summer, making money, and knowing that after the summer you get to do something else (mostly school for me). I’ve had 5 summer jobs / internships in my life. My first two summer jobs were internships in government offices, my third summer job was a sales position at The Gap, and my fourth and fifth summer jobs were professional internship during college and business school. I made minimum wage or nothing at all at the first three positions; my last two summer jobs worked me a lot but paid enough for me to save enough money to max out Roth IRA and pay part of my tuition.
And now, I am trying to get my sixth summer job. In going through all my experiences, I’ve been thinking a lot about Perfect Summer Jobs.
A Perfect Summer Job, in my opinion, is one that:
- Is in an area that you are interested in or are interested in learning more about
- Will help you develop skills useful in your career / life, and expects substantive work
- Fits with your schedule of non-summer activities (i.e. you don’t have to miss an important wedding or family event because of the job)
- Is either in a part of the country/world that you want to explore, or it’s close to home if you want to be close to home
- Pays competitively.
- Leads to (or not) a full-time position according to your plans and wishes.
This is all to say that I am applying for a summer job that will check ALL of these boxes. The work seems to be a perfect blend of quantitative and coaching/mentoring, aimed a target audience that I am really passionate to work with, the pay is amazing for the program length, and the job fits neatly between all the traveling I’ll be doing. It’s The Perfect Summer Job.
I almost don’t want to blog about it because I’m afraid it will jinx it, but ah well. I am hoping it works out, because this really would be the Perfect Summer Job. I’m having a hard enough time NOT imagining how perfect it would be were I get to get this job and how much I would enjoy it and everything I’d be able to do with my paycheck. I’m asking y’all for good thoughts.
What was/would be your perfect summer job?
I have a credit freeze (also known as a security freeze) on all three major credit bureaus: Experian, Transunion, and Equifax. I think the credit freeze is an incredible tool that more people should consider using to protect their identity and their credit.
Why I placed a credit freeze
Some of you might remember that I had a scare with my credit a couple months back – a hiccup with one of my credit cards resulted in a blemish on my credit reports, which resulted in my FICO score dropping by more than 100 points, going from 750+ to 650. I nearly had a heart attack. I called, I disputed, I tried everything I could think of. And thanks be to the credit gods, it worked. My average FICO score is now back to the upper 700s.
Even though this incident wasn’t related to fraud, this experience made me realize how easy it is for your credit to be harmed, and what headache it is to get it resolved. An hour after I checked my updated credit reports and FICO scores (and shed a tear of relief), I place security freezes on my reports at all three bureaus.
What is a credit freeze? How does it reduce fraud?
A credit freeze or a credit security freeze prevents others from accessing your credit file. If lenders cannot check your credit history, they won’t issue credit in your name. This means that identity thieves that seek to open fraudulent accounts in your name (so called “new account origination fraud”) won’t be able to get credit, charge up thousands or tens of thousands of dollars, and ruin your credit.
A credit freeze won’t stop all forms of fraud and won’t prevent all kinds of access to your credit. A thief who steals your credit card information will still be able to charge on an existing account, and businesses with whom you have dealings with can still monitor your credit. But a credit freeze DOES protect against new account origination fraud, a particularly insidious form of fraud that many consumer do not discover until they apply for a loan or mortgage, and discover at that point that identity thieves, in their name, have already defaulted on loan after loan.
What’s the catch?
Credit freezes can be a hassle. You have to keep track of a PIN number that will allow you to unfreeze your accounts (and if you lose said pin, you will have to request a new one by snail mail). You have to issue a thaw for a particular lender or issue a temporary lift when you are applying for new credit cards, new loans, a new apartment, or employment that require a credit check. You have to pay to freeze and unfreeze your credit. It cost me $10 to place a freeze at each of the credit bureaus (the fee is waived if you are a victim of credit fraud and may be reduced if you are above 65). Unfreezing the credit report costs another $10. It’s not exactly cheap, especially if you freeze/unfreeze frequently, but I view a credit freeze as an risk mitigation tool whose cost and inconvenience I am happy to incur.
How to place your credit freeze:
Just click on the links below to place a freeze on each of the credit bureaus.
Do you have a credit freeze? What are your tips for preventing credit fraud?
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