#59: Money & Finance:Credit, Money Management, and Saving

1. Credit

I read the article on how credit scores work, and watched some of the videos. One surprising thing for me was the recommendation that you don't cancel old accounts. I have been angry at one of my cards for their greedy policies, and wanted to write to close it. I have had it a very long time, though, so I guess I will just cut up my card and let the account sit there and age. I took the Credit Quiz and missed one question, related to this issue of cancelling old accounts.

I recently was alerted by Kelsey-Seybold clinics that an employee laptop had been stolen, and that my personal information could have been compromised. I was advised to place a fraud alert with one of the credit monitoring services, so I filed with Experian by phone. It was a very easy process, and the alert was also passed on to the two other main credit bureaus. The alert will be kept in place for 90 days from the day I filed it.

When Experian notified me by mail that they had placed the alert, they recommended that I check my full credit report, which I just did online. That also was an easy process, and I got my report instantly online for free. There were no surprises or obvious errors in the report.

Since I had never seen my credit score, I did decide to purchase it for $5.95. While my score was good ("Prime Plus"), it was not as high as I thought it would be since I have had many accounts over the years and always paid promptly. The reasons for the lower score are kind of bizarre in my opinion. For one, I seem to be penalized because the report "does not show any recently opened credit accounts." My score is also lowered because my report "does not show any real estate loans, such as a mortgage..." It seems weird that having faithfully paid off a long-term mortgage doesn't count for anything in this wonderful world of credit!!


2. Money Management

I use Microsoft Money to manage my finances. I enter what I have spent, and categorize each expenditure, and a "budget" of sorts is prepared to let me know where my money goes. It is helpful to know what my monthly expenses are, but I don't obsess about staying within prescribed limits. Many people resist working with budgets because they see them as "rules" rather than as useful mental "guidelines."

Microsoft Money also has modules for handling credit cards, tracking investments, and planning for future purchases. If you wish, it can translate your data into charts and graphs that give an alternative way to view your finances.

3. Savings and Retirement

The Harris County retirement package is certainly one of the excellent fringe benefits of working for the library system. It is one of the reasons often cited in job interviews about why people want to work for Harris County.

I had opened an online account with TCDRS in the past, as I am tantalizingly close to making use of it for retirement. The numbers are looking good -- too good to retire!!

I have been to the retirement seminar to get information for planning, so I knew quite a bit about TCDRS, but looking at the site was a good review. Most helpful is the page of forms, such as estimates of benefits, change of address, beneficiary designations, etc.