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What Is The Difference Between Memorial Day and Veterans Day?

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What's the difference between Memorial Day and Veterans Day
When it comes to federal holidays celebrated in the U.S., people often get confused between Memorial Day and Veterans Day. The confusion isn’t all that difficult to understand since they both have to do with the military. Plus, with all of the stores with sales and the celebrations, the holidays might seem almost identical. While both holidays celebrate the military, they celebrate very different aspects of it. What’s the difference between Memorial Day and Veterans Day? Here’s some information to help understand why the two holidays are celebrated differently.

Memorial Day

Memorial Day is celebrated on the last Monday in May each year (in 2019, Memorial Day is Monday, May 27.) It’s a holiday for honoring and remembering those who have served and died for their country. It’s particularly for honoring military service personnel who lost their lives in battle or from wounds taking place in battle. Memorial Day is to celebrate the men and women who have given their lives for our country.

Since Memorial Day honors those who have died, it’s common for people celebrating the holiday to visit and bring flowers to memorials and cemeteries to honor those who have died in military service. One common way people volunteer for Memorial Day observances is to place an American flag on each grave at military and national cemeteries.

Veterans Day

Veterans Day is on November 11 each year. However, we sometimes observe the holiday on the following Monday if it happens to land on a Sunday. For 2019, Veterans Day is Monday, November 11.

Veterans Day doesn’t honor the military dead but instead honors all who are alive and have honorably served in the military. It doesn’t matter if the person served during a war or during peaceful times. If they have been a member of the military at any time, then they are honored and celebrated on Veterans Day.

Why the Distinction is Important

The problem is that the two holidays have, for many, become a time to thank the military. Much of this is because various companies advertise military discounts for active members on Memorial Day.

For those in the military who understand the difference, this can create some awkward situations on Memorial Day. Those who don’t understand the different meanings of the two holidays often approach military personnel and thank them for their service on a day that’s meant to honor the military dead. To be thanked, although well-meaning, when the day is to remember those who have given their lives and not those who are still alive, makes for an uncomfortable situation.

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(Photo courtesy of Ray Bouknight)

Financial Abuse and How to Avoid It

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financial abuse

Abuse is a tough topic to discuss. When the conversation happens, you would more than likely hear about verbal or physical abuse. There is another kind called financial abuse. Financial, or economic abuse, occurs when an abuser uses money as a weapon. At first glance, it seems improbable. However, when you understand it, you may realize you’ve seen it before.

What is Financial Abuse?

Credit Karma did a survey that said 10% of those asked were financially bullied in their relationships, meaning that one person in the relationship was using the money to control the other. Examples of this would be demanding the paycheck of their significant other each payday, only providing a specific allowance if they weren’t working, or stealing money. The basis of the abuse is just like any other; it’s one person having power or control over another.

Withholding Money

Recently, a friend told me how her spouse has been displaying abusive behavior. She said that if he were angry, he would withhold the debit card used for bills and groceries. At the time, she was out of work and had no other money. Once she started working again, he became jealous that she made more money. Then, he would pick fights out of his insecurity and try to make her feel guilty for working outside of the home. He sought to manipulate and control her using money.

Taking Over the Finances

Another example of financial abuse is creating big goals and budgets without both partners’ input. This situation is different than when one spouse is better at handling investments. In an abusive case, the abuser will dictate spending on any or all categories, from clothing to food to self-care. Often, we assume the man is the abuser. Women can also be a bully in a financial situation. I know some ladies that take budgeting and saving very seriously; they dictate how much they need from their spouses on payday for a savings account without asking about their needs or goals.

No Way Out

If there is only one income, it can be even more extreme. This situation is where an allowance may be typical, or one partner has to ask the other for any money he or she needs. The National Domestic Violence Hotline states that lack of resources is one of the reasons why victims can’t leave abusive relationships. If you were convinced to stop working, have little to no cash savings, and no credit cards in your name alone, then it would be hard to get a hotel room, let alone an apartment. The abuser could easily cancel a card, close an account, and locate you by the charges on the account.

How to Stop Financial Abuse

The first step in fixing the situation is communication and transparency. Here, both partners need to discuss finances, goals, and budgets. Everyone has their say, and you create the budget together. Any goals should be mutual and benefit both partners.

Then you can decide the best account setup that builds trust and flexibility. Perhaps there need to be separate accounts – yours, mine, and ours. One income households may create a different account for spending. Therefore, the money set aside to pay bills will remain untouched.

Whichever situation allows for healthy boundaries between spouses and finances is the best option.

Read More

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Savings Tip: Make Your Clothing Last

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make clothing last longer

Wouldn’t it be great if you could make your clothing last longer instead of paying to replace them regularly? The average adult spends about $1,800 per year on clothes. You could save your self over $1,000 by following these simple tips.

Follow the Care Instructions

In case you didn’t know, the little icons on your garment tags are the care instructions. Depending on the label, they might have even written the instructions down. Either way, figure out what your clothes need and do just that if you want them to make it past one wash cycle. They will give you guidelines for water temperature, wash cycle, bleach, ironing, and drying.

Update Your Routine

Are you doing your laundry the same way you did in college – you toss everything in the washing machine and then the dryer? Beyond the fact that you missed the first step of looking at the tag, you also failed to sort.

make clothing last longer

Sorting

Sorting is usually done by color family to avoid dye transfer, but you also have to consider the type of fabric. Delicates need a gentler cycle to prevent rubbing against the agitator or coarser materials. You might want to forego the washer altogether and handwash them in the sink.

Fabric Softener

Are you washing workout attire? You may want to skip the fabric softener. This additive can destroy the stretchy fibers in your tights and tank, making them ill-fitting. Additionally, it can cause your gear to retain odors or lose their moisture-wicking properties. In other words, fabric softener can defeat workout clothes’ entire purpose.

Drying

Further, everything doesn’t need to go in the dryer. You should hang clothes to dry if you don’t want them to shrink or the tag says to avoid high heat. When hanging them up, you can minimize wrinkles without using an iron. Thus, you can eliminate burn marks or that sheen on the fabric. Again, check the tags to see if you’re supposed to iron your clothes and at which setting. If you must, ironing while damp can alleviate wrinkles better than ironing dry fabric.

Buy Better Clothes

Now that you know how to maintain the clothing you own already, here’s how you find new pieces for your wardrobe. Search for clothing made out of quality, durable material. I know you can find most of the items you’re looking for on Amazon for a fraction of the price. However, you will probably need to replace them next month and the month after that. I’m not encouraging you to spend $100 or more on undergarments by any means. I’m recommending you compare fabric and durability before you invest in the product. You get what you pay for with clothing. If it’s cheap to purchase, it’s probably cheaply made.

Properly maintaining your clothes may take more time, but it will make your clothes last longer. It will also save you money, even with a small increase in your laundry costs. If you buy quality pieces you love, then take care of them, you may have them for years to come.

Read More

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How To Conquer Debt Paralysis

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debt paralysis

When you’re on your journey to debt-free, you might experience a moment that feels like you’ve hit a brick wall, and progress has stalled. Perhaps you can’t bring yourself to even glance at your statements to check your balance – this is debt paralysis. Unfortunately, ignoring your debt won’t make it go away. Here are five ways to get back in the game and overcome debt paralysis.

First, you have to forgive yourself for your past choices and mistakes. Getting an education is not a mistake, but maybe you could have supplemented paying for tuition with scholarships instead of student loans. Buying a car to get to work every day is not a mistake. Taking out a high-interest auto loan may not have been the best choice. Now you know, and you will do better in the future.

Next, you start doing better by removing the options for new debt. If your credit cards are paid off, you can cancel them or freeze your account. If you’re carrying credit card balances, make sure you stop using them. Save as much as you can in an emergency fund. Once you have at least $500, you can focus on your debt payments. Your emergency fund should give you some breathing room in case a situation occurs where you would want to use your credit card. If you are unable to save money, you need to review your budget for expenses to eliminate and increase your income. Once you have control over your income and budget, you will be equipped to tackle your debt.

debt paralysis

When you have been paying off debt for a long time, but your progress has fallen by the wayside, consider reversing your process. If you were using the snowball method, switch to the avalanche method or vice versa. The snowball method is advantageous for small balances because you see results quickly. The avalanche method is better if you have a considerable balance or high-interest rates, such as the annual percentage rate (APR) on a credit card.

Making the minimum payments only get you so far. It might be time to overpay each month or make multiple payments a month. For example, it is taking graduates 21 years to repay their loans. The longer it takes, the more interest you will pay. Look at your amortization schedule, and you’ll see your payments barely put a dent in the principal. Making additional payments can reduce your interest and principal. Additionally, some companies will allow you to make your extra payments directly to your principal.

Finally, don’t forget to reward yourself. For every debt you pay off, find a way to celebrate. A YouTuber named Stacey Flowers has wine chilling in her refrigerator that she opens when she reaches certain milestones. Maybe you enjoy your favorite meal or dessert after you make your final payment. Families love to post photos on Instagram and tag Dave Ramsey when they have paid off their debts. He shares them on his page, so they get virtual back-pats from strangers all over the world.

Don’t let debt paralyze you. You will pay it back, one payment at a time.

Read More

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How to Know If You Are Accumulating Good Debt or Bad Debt

The Best Strategy to Pay Off Your Credit Card Debt Faster

Opening Two Bank Accounts from the Same Bank

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open two bank accounts

Having multiple bank accounts can be a great financial move. It gives you options for controlling or segmenting your spending, saving toward multiple goals and keeping those amounts separate, and keeping both a joint and individual account for managing household finances. Luckily, nearly every bank will let you open two bank accounts. Not only can you set them both up when you first sign up, but you can also add a secondary account later. However, there are also risks if you use this approach. If you are considering opening two bank accounts from the same bank, here’s what you need to know.

Benefits of Opening Two Bank Accounts from the Same Bank

When you have more than one account with the same bank, you get a variety of benefits. First and foremost, it is incredibly convenient. All of your money is in one place, so you’ll have one bank to deal with if you need help.

Plus, your transfers between accounts may be instantaneous, which can be helpful. For example, if your checking account is low and you have money in savings, you can shift money from your savings to your checking to handle an unexpected emergency. Potentially, the cash will move in seconds, which is great if you can’t afford to wait.

If you are considering two savings accounts, you could use each one for a different purpose. For example, one could hold your emergency fund while the other is used to build up cash for a major purchase or vacation. This can make it easier to track the purpose of your money, which is great for budgeting, too.

Risks of Keeping All of Your Money with One Financial Institution

When you have multiple accounts with one bank and don’t maintain a checking or savings account with another institution, there are some potential risks. If your bank experiences a technical issue, you might not be able to view or use any of your accounts, and that could put you in a bind. While this would certainly be a rare occurrence, it’s important to understand that it could happen.

If you have a substantial amount of money, you may also exceed the insurance limits. At banks, the Federal Deposit Insurance Corporation (FDIC) insures each account holder for up to $250,000, not each account. That means, if the total of your two accounts is above $250,000 together, you aren’t fully insured. The excess wouldn’t be covered, so you could lose it if an incident occurred.

No More Than $250K

However, if you put those two accounts in separate banks, as long as each bank holds no more than $250,000, your money is fully insured. As a result, you would be safer using more than one institution if your total savings and checking account balances would exceed that amount.

Ultimately, whether you open two accounts with the same bank or separate them by using more than one bank is a personal decision. Just make sure you are comfortable with the risks if you proceed.

 

Have you opened two bank accounts at the same bank? Tell us about your experience in the comments below.

 

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Is TransferWise The Alternative To PayPal?

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transferwise or paypal

Sending money abroad can be a complicated undertaking. Not all money services work internationally, and, for those that do, the fees can be incredibly high. Plus, if you need to perform a currency exchange during the transaction, you can lose a significant amount of money if the transfer provider doesn’t provide favorable exchange rates. Both TransferWise and PayPal make international transfers with currency exchanges an option. The question is, which one is right for you?

PayPal International Transfer Fees

When you need to send money internationally and perform a currency exchange, you need to find an option with reasonable fees. Otherwise, a big chunk of the money you send might get eaten up by the cost of completing the transfer, and that can be frustrating.

With PayPal, when you send money to friends and family in the U.S. or Canada, you don’t pay any fees. But, if you want to send cash to someone in any other country, including friends and family, you’ll encounter transaction fees.

The amount you owe as a transfer fee on PayPal depends on how much you are sending, the destination country, and where the money is coming from. If you use a PayPal balance or linked bank account, the fee typically comes in at 0.3 to 2 percent of the amount you are sending. That means, for a $1,000 transaction, you’d lose $3 to $20 in transaction fees alone.

However, if you use a debit or credit card on PayPal, you’ll pay more in fees. Usually, the transaction fee will be between 3.4 and 3.9 percent. For $1,000, that’s between $34 and $39. Plus, you’ll owe an additional small fixed fee, which varies depending on the currency.

Currency Conversion Rates

Along with those fees, you’ll deal with currency conversion rates. How much that costs depends on the current wholesale exchange rate (sometimes called the mid-market, spot, or interbank rate) and PayPal’s structure. PayPal typically tacks on a 2.5 to 3 percent currency conversion spread to the transaction, meaning you aren’t getting an exchange rate that is less favorable than the wholesale rate. PayPal pockets that difference, allowing it to make a profit on the conversion.

Exactly how much a currency conversion will cost you through PayPal can vary by the minute. Exchange rates fluctuate throughout the day, as currency values aren’t stable. As a result, you can’t calculate your full cost accurately until you are preparing to initiate a transfer.

TransferWise International Transfer Fees

With TransferWise, your biggest source of savings is that TransferWise uses the wholesale exchange rate for each of its transactions. You won’t encounter a currency conversion rate that’s tacked onto the exchange rate. As a result, more of your money will go to your friend or family member.

However, that doesn’t mean TransferWise is fee-free. As with any business, they need to generate revenue to support their operations.

The TransferWise fee structure is fairly straightforward. On a $1,000 transfer from U.S. dollars to euros, the total fee (as of this writing) was $7.54, or 0.754 percent of the total amount being sent if you use a bank transfer. If you send larger amounts directly from a bank account, the transaction fee percentage actually falls. For example, if you send $20,000, the fee is just 0.48 percent, or about $96.

However, the fee does go up is you use anything other than a direct bank transfer. For that same $1,000 being converted into euros, wire transfers come with a slightly higher cost ($10.86) while debit cards are a bit more ($12.95). If you use a credit card, the transaction fee is pretty substantial, coming in at $38.28.

As with PayPal, the fees vary depending on the destination country and currency involved. Plus, they could be subject to change, so its best to use the TransferWise calculator to determine how much you receive and the fees you’d pay.

Is TransferWise Cheaper Than PayPal?

If you want to find the cheapest option for sending money internationally, you might assume that TransferWise is the best option. After all, they don’t have a currency conversion rate added to the currency exchange rate, and that can represent a savings in comparison to PayPal.

If you send $1,000 to Germany directly from a bank account, where it gets converted to euros, TransferWise comes out ahead. You’d only pay $7.54 in fees, and your recipient gets €904.68 (based on the exchange rate on October 3, 2019). With PayPal, there’s no transaction fee to send the money straight from your bank account, but the less favorable exchange rate would mean your friend or family member only receives €903.60.

However, TransferWise doesn’t always beat PayPal. If you are sending $2,000 to India (directly from and to bank accounts), PayPal actually wins. Through PayPal, your recipient would get INR 141,336.00. With TransferWise, they’d only receive INR 140,851.07.

As a result, you don’t want to assume that TransferWise is universally cheaper, because it might not be.

How Fast Transactions Complete Through TransferWise and PayPal

By and large, TransferWise and PayPal have comparable timelines for bank-to-bank international transfers. Usually, they will complete within a few business days, though this can vary depending on the destination country.

However, if you send money internationally to another PayPal account (and not directly to a bank), that approach is slower than TransferWise in many cases. When you route between PayPal accounts, your recipient might not get the money in their PayPal account for a couple of business days. Then, they have to transfer the funds out of their PayPal account to their bank (if they want to use it outside of PayPal), and that can take another several business days to complete.

Can You Cancel TransferWise or PayPal Transactions?

There are options for canceling both TransferWise and PayPal transactions. On TransferWise, you can stop any pending transfer through the Activity section of the app or website. Once the transfer is in the processing phase, it may be cancelable, but you might have to contact TransferWise to stop it, or it might not be stoppable. After the money has been sent, there’s nothing you can do unless the receiving bank rejects it.

With PayPal, if the payment is either pending or shows as “unclaimed,” you can cancel it online or through the app. However, if the recipient already has the money, you would have to either request a refund or open a dispute.

Dealing with Transaction Issues

When you send money internationally, there are several financial entities involved in the transaction. As a result, issues may arise that delay your transfer, cause it to fail, or even lead to your money becoming seemingly lost.

PayPal and TransferWise are generally reliable, but that doesn’t mean issues can’t occur. Both companies have had their fair share of problems, so it isn’t appropriate to say that one is better than the other in this regard.

If you have an issue with TransferWise, you can make a formal complaint over email. For PayPal, you can use the company’s contact page, which will allow you to use a form to send an email, or you can reach out by phone.

Choosing Between TransferWise and PayPal

TransferWise can be a suitable alternative to PayPal. However, it isn’t always the best deal. Before you set up an international transfer, it’s a good idea to compare how much your recipient will receive through each service. That way, you can make sure that the largest amount ends up in the hands of your friend or family member, which is really the most important part.

 

Do you think TransferWise is a suitable alternative to PayPal? Share your thoughts in the comments below.

 

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