Money and headache saving tips when you make a law enforcement related booboo

Many Americans do not have the financial ability to withstand average petty legal problems, but being arrested is a situation far and away worse.  Something as simple as driving on a suspended license or registration can land you in jail, and many jurisdictions go above and beyond corrective to outright punitive fines.  Some of these fines are rooted in cultural bias, while others are meant as attention getters, and some are blatant money makers.  Here are some things you absolutely MUST keep in mind if you get in a sticky situation. 

(Bear in mind, this is basic stuff and not legal advice.  I am not am attorney, so i cannot dispense legal advice.  Consult a lawyer or legal aid group for full legal advice.)

Cooperate.  This is critical.  Never try to argue with an arresting officer.  Do what they say to do, and remember the entire encounter.  Anything you can remember and recount to an attorney can be useful, no matter what it is.

Get names and badge numbers. Some law enforcement agencies avoid this for a reason...corruption.  A reputable agency (and 99 pct are) will ensure badge numbers are accurate.  If they say the number doesn't correspond to the officer or the officer no longer works there, call a lawyer immediately.

Be aware of bonding practices, and read everything. This cannot be overstated.  Bonding companies are  tightly regulated, but some use shady tactics.  Read everything before signing, and follow the instructions to the letter, including logging phone calls and who is spoken to.  This documentation saves a lot of headaches when it comes time for deposits to be returned.

Look into diversion courses in leiu of fines and pleas.  Many jurisdictions offer diversion classes for things such as bad checks or traffic citations to avoid heavy fines or convictions.  They are educationally sound courses and often provide good tips to avoid recurrence.  If you elect to take the course, do not miss.

Never go pro se without advice.  This means representing yourself and, for minor offenses, this is usually standard procedure.  A legal aid society can often advise on basic tactics, what to expect, and how to use the rules to defend yourself.  Follow their advice.

Remember, often you will lose, so be prepared.  Save up some money to pay your fine in full.  In some states, inability to pay a fine, no matter how small, results in probation.  Many probation officers are genuinely upstanding but, like prisons, they have been contracted out to private firms who bend the law.  If you can avoid this, you save yourself a lot of money and a ton of headache.

Finally, correct the behavior.  If you don't do anything else, make sure you don't make this mistake again.  Everyone blunders, and blunders can be overlooked amd explained away if you demonstrate you learned. Sometimes, an unfortunate experience is necessary to wake yourself up from foolishness.

Health Savings Accounts: Used properly, a secret healthcare weapon for low-income families

For many people on a tight budget, the notion of a Health Savings Account (HSA) literally feels like something which is a pipedream.  These accounts divert money which is usually needed for essentials to health care needs and while these accounts are tax deductible, the vast majority of people who benefit from this deduction enjoy more middle-class oriented deductions such as mortgage interest and business tax credits, all of which bump the deduction total over the already-high standard deduction offered for all files by the Internal Revenue Service. 

Breast pumps are listed by the IRS as an
eligible purchase for Health Savings Accounts.

But what if there is a genuine benefit to families for these HSAs?  Thanks to tax regulations published by one website, growing low-income families may have finally found the ticket they’ve been looking for.

According to a story published on MobileLikez, IRS guidelines already allow for mothers to use HSA accounts to purchase lactation equipment and coaching services for the purposes of breastfeeding.  Low-income families, statistically more prone to pregnancies than middle and upper-income families, can benefit greatly from the benefits of a properly administered HSA.  These benefits include:

A debit card (in most cases):  Most HSAs (not all, consult your plan in advance) offer debit cards which draw from the available funds on the account.  This is not only an easy-access feature; it also provides the HSA administrator with the necessary purchasing data to create an itemized list for both account holder and the IRS at tax time.  These account administrators must provide account holders, upon request, with a list of all qualified medical expenses.  Most plans provide these lists on their websites.

Plans such as OptumHealth offer HSA Debit Cards
which provide enhanced access to funds.

Pre-tax deduction:  One of the beauties of these accounts is that the money deducted from a paycheck is done in manner which reduces taxable income, thus reducing the tax burden which reduces the net pay amount.  While this may be pennies on the dollar, the fact that these funds are diverted to a dedicated fund is often a blessing in disguise, which leads to the next point.

A fixed budgeted account:  Families who use the itemized lists provided by administrators often discover that many things, such as hearing aids, nursing care, and eyeglasses, are listed as eligible purchases.  Even more a relief to many limited-budget families is when they discover they have some money on these cards for such things as dental and vision expenses, items which would, in many cases, break an already strained budget.  From personal experience, my budget was once strained to the breaking point prior to an emergency dental visit, but I had discovered I had nearly $200 on my HSA account, and I used my card to pay for an emergency extraction.  It was a godsend, and it was an eligible expense.  Win-win.

Unpublished discounts:  Many HSAs have partnered up with a variety of providers to offer discounts, often rather significant, on services ranging from gym memberships to smoking cessation programs to daycare and elder care services.  While many of these discounts are useless to low-income families, some plans offer links to websites which not only offer service discounts, but product purchase discounts as well.  In addition, some HSAs have partnered with drug discount plans to offer significant savings on prescription drugs through affiliate programs, which can cut a medicine bill by hundreds and, in rare cases, thousands of dollars.  This can be a lifesaving aid for limited-budget families who need cutting-edge medicines once out of reach financially.

The website momanddadmoney offers a detailed list of the best Health Savings Account providers, with links and comparisons of what each account plan offers.  A disciplined, well-planned use of an HSA can provide limited-income families and individuals with a safety net which would otherwise not exist.  As always, such plans must be used effectively, within IRS guidelines and are always full of loopholes and exceptions.  Be sure to check with your benefits administrator before making a purchase you are unsure about.

Minor League Sports: The attractive entertainment alternative

Professional sports are becoming more unaffordable for just about everyone but a privileged few.  These days, the average American can’t even afford the parking fees for most pro teams.  This leads to a very unusual option many simply don’t think about, minor league teams.

While there are not many appealing options for minor league football (high school and small college football are considered the preferred option for budget-minded fans), minor league baseball, basketball and hockey provide highly affordable and entertaining options for the cash-strapped fan who is looking for a fun night out with maximum bang for the buck.  Here are a few examples of why minor league sports are often the more attractive option:

East Coast Hockey League Website

Free Parking:  Many teams offer free parking as an amenity and, for those which don’t, fees are typically quite low.  Season ticket packages often offer preferred parking closer to the stadium or arena and, in many cases, local businesses provide free parking for tailgating fans who purchase food and drink from their establishments.

Lower Ticket Prices:  on average, a minor league team will cost approximately 40 percent less than the top-tier pro teams.  Many teams off “Dollar Nights” in which general admission tickets are dirt cheap, and concessions are also usually reasonably prices for stadium food.  Savings tip:  look at group ticket packages if you have over six people – many teams offer food and beverage vouchers as part of the price.

Faster paced games:  minor leagues usually have quicker games for a simple reason – little to no television coverage.  Certain teams do have “television timeouts,” but most teams only broadcast on the web or via radio.  For this reason, the need for constant commercial stoppage for advertisers is lessened.

Family friendly:  most minor league teams have a family-friendly atmosphere, meaning that security is geared towards created an atmosphere (mostly) free of poor behavior by both fans and players.  In many cases, kids are encouraged to stay after the game to meet with their favorite players, and can even play on the court, field or ice with players who come out for meet and greets.

Player attitudes are better:  Many minor league players are very grateful just to be getting paid to play a game they loved as children.  For this reason, most players are willing to stay after the game to play with the kids and interact with fans.

15 financial hacks for the money-strapped

One of the single greatest misconceptions about personal finance is that you can “grow your wealth” when you are low-income.  Survival, not growth, is the name of the game when you are scraping by.  Still, there are some great ways to save a few bucks here and there and, if you are willing to invest some time away from the usual daily time wasters, save some serious money over time.

• -          Use cash whenever possible.  If you plan on using a debit card, opt-out of overdraft protection.  It will save you huge, and force spending discipline.
• -          If you use “pay at the pump,” choose the credit option on a checkcard.  Purchases using this option on checkcards are often granted extra protection.
• -          On a related note, most (not all) gas stations authorize only $1 on a credit or checkcard when using the credit option.  If you have a few bucks in the bank and payday is the next day, you can “float” this purchase.  Contrary to what gas stations say, they do set the authorization amount.  The bank, however, decides when to release.  Be careful with this, too.  Many stations have gone to same-day clearing.  Watch your statement - timing is everything.
• -          Be aware that many online stores now charge “transaction fees” because they are not based in the United States.  These fees are “sneaker charges” which appear as separate line items.  If you see it on your statement and it was not included in the purchase price, notify your bank about fraudulent charges.  Undisclosed charges are fraudulent, regardless of intent.
• -          “Pay Yourself First” is a time-honored savings adage, but the “change jar” Is a proven savings practice.  Coffee cans, pasta sauce jars, etc, are outstanding ways to save change.  Be a hawk about this.
• -          Negotiate everything when it comes to bills, even utilities.  While power and gas companies are not inclined to help with monthly bills, some companies will apply a longstanding deposit in a pinch when a review of the account is done.  Cable bills usually can be negotiated downwards are least once every six months (even satellite).  Also, know the website for your state's Public Utilities Commission.  A well-placed, politely and professionally worded complaint when utilities get rude (which is frequent) gets results.  Always ask for a supervisor.
• -          If your job offers rebate cards for health surveys or program participation such as smoking cessation or weight loss, enroll!  You make some money, and you can also get healthy.  Win win!  Word of caution - watch your paycheck; some companies count this as taxable income and deduct accordingly.
• -          Car insurance companies use a risk-assessment score which includes accidents, citations and credit score.  Shop around and look at independent agents.  Many mom-and-pops know the companies which do not use credit to set rates, and the rates are typically 15% lower.
• -          Cleaning hack:  rubbing alcohol is an effective - and environmentally safer - alternative to bleach for disinfecting counters.  Hydrogen peroxide does the same job and whitens.  In both cases, use gloves – if you have a scrape on your hands you’re not aware off, you’ll find out fast.
• -          There are some scrap metals worth recycling, and others are simply better off giving to a construction crew to take off your hands.  Copper, silver, gold, are all great income sources for scrap metal.  Steel and aluminum are horrible sources – both are pennies-on-the-dollar scrap rates, and the cost in gas to transport outweighs the money made.  Same goes for scrap newsprint.  Donate to a charity or scout troop instead.
• -          Work hack:  if you work in a service or retail job, buy your uniform pants at a second-hand store.  The pants are dirt-cheap and, in most cases, you won’t care if they get stained up or ripped.  As always, turn ripped to rags.
• -          Car payments should be paid on time for one very important reason – finance companies often front-load the interest on the note and charge interest for every day you are late.  If you are late by 20 days average on a 4 year note, the principal balance left at the end can be in the thousands and this must be paid in full or the leinholder still retains repossession rights!
• -          Starbucks offers dirt-cheap refills if you stay and drink regular coffee.  Dunkin Donuts (most locations) does not.
• -          Caffeine hack:  ultra-dark chocolate offers the same boost as coffee.  A square of 85% cacao chocolate can replace a cup of coffee in a pinch.  If you can handle the taste, “bakers chocolate” – 100% cocoa, no sugar – is the best option.  For a real mocha, toss the square into your coffee.
• -          Cheap hot chocolate hack:  keep a small container of half-and-half (milk/cream mix) on hand during the winter months.  After making pouch-style hot chocolate, add the half-and-half for a super-creamy, coffee-shop quality hot chocolate.  For gas station hot chocolate from a machine, use 4 creamer shots for up to a 20 ounce cup.

Rental Purchase: What low-income folks should know before buying

Rental-purchase companies have grown by leaps in bounds in recent years.  For individuals looking to “keep up” with their friends and family, it allows them the ability to buy trendy, well built furniture and electronics easily like those who buy on credit.  There are, however, some serious pitfalls to these agreements, and most retailers gloss over this in order to close the sale.  Here are some things to bear in mind before you enter into a rental-purchase agreement.

You don’t own the merchandise.  Unlike buying on credit, you are renting.  This means, simply, if you can’t pay, you have to return the merchandise and, unless there is a “reinstatement” clause in the agreement, you lose everything you pay.  Also, if there is damage and you opted out of any protection agreements to save money, you are liable.

You give the rental purchase company the rights that normal creditors do not enjoy.  Rental purchase companies fall under a “grey area” of the Fair Debt Collection Act.  Because they are considered “owners” and not “creditors,” they are allowed to take actions which normal creditors cannot.  They can call your work whenever it suits them, and can use tactics which may be considered unethical but, since they are not listed as straight-out illegal, judges often look the other way.  Pay the bill on time, in full, and do not allow them the opportunity to pick you apart with fees.

Watch your “Same As Cash” periods and the price listed in the fine print.  If you can time the payoff period to get the “same as cash” price, you often get a great deal.  However, it is the rare customer who can pull this off, and rental purchase companies know this.  More important, often that “Same As Cash” price is not the advertised special, but the full retail price.  This is a sneaky little tactic used by retailers to bump up the bottom line.

If you feel pressured, walk.  Stores which use rental purchase companies often refer you to “special financing” departments which operate similar to “buy here, pay here” car lots.  The pressure is high, the “buy today for the best deal” pitch is used, and the reps can be pushy.  One thing I’ve learned; set boundaries for acceptable behavior immediately.  Do not be afraid to say “if I feel pushed, I walk.”  Then, if they push, walk.  True story – I had a rep chase me out to the parking lot asking me what they did wrong, and I told them they said a deal was expiring when I knew it wasn’t.  He apologized for his “error” and offered me an extra same-as-cash month.  I read the fees in the agreement, and declined anyway.  It was a mattress.

Never, ever opt for automatic payment.  By giving a rental-purchase company your banking information, you allow them the ability to charge your account for anything they can get away with in the agreement.  I have heard horror stories of people who were not even late on a payment but, because it was processed late due to a “system outage,” they were hit for a late charge.  Pay by money order when possible, cash in person (always get a receipt), and if you have a credit card, use it and pay it off that month if possible (that way if they overcharge, you can dispute – debit cards don’t have equal protections.)

Watch the service plans.  Most service plans cover major accidental damage such as a split fabric wear, but not “normal wear and tear.”  This is almost never covered unless you purchase a very expensive rider.  Such things as stains, claw marks, and burn damage are considered “abuse” and “negligence,” even if it was truly accidental.  In many cases, service plans are worthless (mostly because most states require rental purchase companies to cover defect in construction in the base agreement) and are little more than a profit center.  Make them earn the money, don’t just give it away.

Minority and non-English speakers still get the shaft, so be wary.  Unfortunately, it is common for minorities and non-English speaking customers to be hoodwinked into bad deals.  Do NOT let this happen to you.  Check with friends, family and charities for “recommended” vendors.  These folks are typically vetted thoroughly, and sometimes deal with “mystery” shoppers who are intended to make sure they operate on the up-and-up. If you sense discrimination of any form, walk and report it to the Better Business Bureau and State Attorney General.

Good things come to those who wait (and save).  If you can afford to wait a little to buy it out in cash, do it!  The best deals not offered to store-credit-card customers come to same-day cash buyers.  It’s not always a bad thing to sleep on used mattresses (bedbug free and sanitized, of course), or use a borrowed couch.  When you save a little at home by waiting, you often save a lot by walking in with some cash and getting a sales rep who is needing that last limit score and can get it quick by just punching the “Cash Sale” button.  Also, you might be surprised at the type of extras you can get thrown in by doing it that way (i.e. - free delivery, free inspection for a year, added features).

Tips and Tricks 1: low-income, poor credit survival basics.

This is first “real” post of trips and tricks for those one a tight budget, or those who have bad credit.  These are basically quick bullet point hacks which you may find useful.  Hopefully, these will hit a nerve with someone, and word will spread what this blog is all about:

• -          If you’ve had checking account problems, order a copy of your Chexsystems, Telecheck and Certegy(EWS) reports.  Banks and credit unions use this to grant accounts and, while many will deny based on negative info, many will allow new accounts, but it extreme restrictions and higher fees.  You have the right to dispute anything on these reports.  Chexsystems has a self-imposed FOUR-YEAR limit on negative info reported.
• -          A savings account is intended for one primary purpose – a place to stow money where it can’t be accessed easily.  If you want to be able to put cash aside for a rainy day where it’s a big pain to get at, this is the way to do it.  Check for fee-free offerings at local credit unions and small banks.  Big banks tend to be fee-happy.’
• -          Avoid, if possible, the “overdraft privilege” a bank offers unless you have a good understanding of overdraft procedures and timing.  When used properly, this privilege can be leveraged as a low-interest payday loan.  When used and timed wrong, it becomes predatory and highly punitive.  If you don’t think you can budget effectively, opt out.  The minor embarrassment and pinch of being declined for that coffee or impulse buy will save you a TON of cash on payday.
• -          Try to avoid credit cards until you have two weeks worth of pay set aside for an emergency.  Most experts recommend a $1000, but this is highly unrealistic for paycheck-to-paycheck individuals.  Two weeks is a good number because it’s a “replacement check” in the event income goes sideways.  Yes, it’s difficult, but it can be done (change jars are great for this).
• -          Never let a bill collector of any kind get away with intimidating you into paying on something you don’t owe.  Knowing yours rights is as simple as looking at Bankrate's statute list.  That will be a topic for a future blog post.  Get everything in writing.
• -          If you use your car for local driving, buy used tires when possible unless you can catch a “get two free” deal.  And read the “road hazard warranty” for exclusions.  These are becoming more and more loophole filled, and many tire stores (and well as big-box retailers) are finding ways to either exclude certain things, or tack on added fees to recover lost revenues because these have become so popular.
• -          Manufacturer recommendations for routine maintenance is notoriously conservative because it generates money for dealerships.  If you’re out of warranty on your car, going 1000 miles over before your next oil change isn’t a crime.  If you can afford a one-time synthetic change (they are pricey), do it.  The chemical nature of the lubricants are far more forgiving than conventional products.
• -          If you have a friend who is a mechanic or knows a mechanic, give them your business.  Repair shops compete like crazy, and finding a loyal customer who trusts them is difficult.  Most important, that friend can usually get you a good deal, or tell you some things to watch for if you have to leave town and hit a repair shop.  If you have a "backyard mechanic" friend you can trust on minor repairs, spoil them rotten!  They will save your butt in a pinch.
• -          If you live on your own or you’re a couple with no kids, “meat is murder on a budget” is true.  After alcohol and cigarettes, meat is the single most expensive part of any grocery bill.  Buying “freezer packs” may be useful for families, but for individuals and couples, it’s unrealistic.  Shop sales and specials.  Buy “manager's specials” when possible, and cook the same day.  You usually save a ton of money this way, and it forces creativity and, honestly, tastes a lot better.
• -          Thanks to extreme couponing, many stores have eliminated double and triple coupons (mainly because tax laws don’t allow certain write-offs).  A great way to make up for this is to research store-versus-national brand ratings.  Often, the store brand is better and costs less.  In some cases, a clear superiority is found in the national brand, and that’s when buy-on-get-ones are essential.
• -          The pennies-on-the-dollar rebate is useless for “Earth friendly” bagging (using your own bags).  For produce, it can also introduce bacteria to the food.  Also, if you have pets, get a mix of paper and plastic.  Paper sacks are excellent for soaking up the smell of pet waste, so dog poop and used cat litter can go straight in and minimize house odors.
• -          Online shopping is both convenient, and risky.  Use an online payment service like Paypal when possible.  The protections are worth it.
• -          While it can be a pain, “direct to store” shipping options are great if you can time errands and shopping runs simultaneously.  It saves gas, shipping and often you can get deals you can’t find in the store.

Here is one bullet point I saved for last, and cannot be understated.

• -          If you are in financial pain, and you can’t do what your longtime friends who are better off do, you will eventually lose some of those friends, unless they have open minds.  This is a fact of life and something which must be accepted.  It hurts, but it is part of life, and it is a painful reminder that people are imperfect and, being so, tend to associate with like-minded and better-off individuals.  To everything there is a season, and if you are truly committed to changing your situation, you will enjoy your time in the sun.  Think of it this way – you develop an appreciation for what you have, and those who stand by you in this darkness – even if it’s only on occasion – are the true friends in life.  While this will sound ridiculous to say, be grateful for this darkness.  You never know how strong you truly are until you have to start over from nothing.  Most people never have to endure this, and your experience will be that of a sage when they need your help and guidance most. Above all, never judge - we are human, and forgiving yourself for mistakes allows you to forgive others, and that will bring great people into your life. 

Welcome to The Little Guy's Wallet.  Many financial sites and blogs focus on financial success, or do's and don'ts for people on a budget, using formulas and concepts which are considered "tried and true."  Unfortunately, these blogs fail to take into account one very serious matter - the rules have changed.  New banking regulations, financial loopholes, and bureaucratic layers have made it very difficult for the average person who lives paycheck-to-paycheck to get by.  This blog is dedicated to a very underserved section of America (and the world, really) - namely, people with poor credit, saddled with debt, dealing with the consequences of poor choices or bad luck (or a combination), and who simply want to make a change for the better but, for whatever reason, are finding it very difficult to do so.

MISSION STATEMENT:

The mission of this blog is actually simple - judgment-free financial support and education to help anyone wishing who wishes to learn make a better life.  

As a man with poor credit, who has made myriad poor financial decisions in my life, I have learned that there a ton of ways to save money, stretch your paycheck to the limit, and even leverage loopholes and procedures to the advantage of the "little guy."  This isn't about the "big bad businessman," this is about taking responsibility, owning and learning from our errors, and doing the best with a crummy situation.  In the end, we learn by doing and making mistakes.  Some people barely feel a pinch; while many of us take a punch, and still more of us bleed,  The only person who can stop the bleeding is ourselves, but knowing a website which is supportive, and not judgmental or oriented towards upper-income earners or those with moderate-to-great credit helps.  That's where this blog comes in.

ABOUT THE OTHER GUYS

I will never talk badly about financial advice columnists or talk show hosts.  Individuals like Suze Orman, Clark Howard, and Dave Ramsey made their fortune helping others, and I applaud them for what they do.  They have their approaches, but I've discovered those approaches are rather limited in scope, and focus on their target audience; namely, upwardly mobile individuals who have disposable income to purchase their advertisers' products.  There is nothing wrong with this. It is a business model which works for them and I congratulate them on their success, and I know it was not easy for them to get there.  Where my blog is different is that I am focused on the underserved market - individuals who, for whatever reason, have poor credit, no credit, or are living paycheck to paycheck.  While the "big boys" of financial advice have a huge following, and for good reason, they also seem to have forgotten that the well of money only lasts as long as good decisions, and fortune, holds.  My roots are humble, and I am grateful for my errors, because they afford me the chance to help others.

A WORD ABOUT POVERTY AND CHOICES

It is very easy to turn one's nose down at the less fortunate and paint them with a broad brush stroke. Individuals who like to bash on this segment of our society I have given the acronym of "PPE," borrowing from the occupational safety acronym for Personal Protective Equipment (hazmat protection gear).  In this instance, PPE stands for Pundits, Politicians and Experts.  These folks are usually insulated, rarely have suffered true hardship and, save a few of them, are mostly very condescending of impoverished individuals, claiming they simply made "bad choices."  They wish to "protect" themselves from the real issues in life by attacking the underprivileged as being the problem.  This paints with a very broad stroke of the brush.  That's why this blog is judgment free.  I don't care if you lost everything gambling, drinking, or getting fired from every job because of an issue.  If you truly want to change and have committed to doing so, just reading to the end of this post proves it, and that means you will benefit from the tips, tricks, hacks and support I intend to provide. So please, check in often and maybe you can find something useful.  

For those of my readers who profess to be of the Christian faith, remember, Jesus dined with sinners and hung out with the dregs of society.  While I am not religious, but I appreciate the spiritual philosophies espoused by Christian faith, philosophies often ignored and lost to our own desire for comfort and luxury.  True Christian thinking is based in love of neighbor and charitable action towards those lost in darkness.  That's where this blog will go and stay - in the depths of financial hell, providing light and markers to help people who wish to fix their lives and improve get through, and help those who can't do so just yet live with a shred of dignity.

Thank you all for your support and readership.  Now, let's start building.