Week one of the “Enough Diet” is in the books, and I’m pleased to announce as of this morning I’ve dropped about five pounds.  I inadvertently kicked off the Enough Diet when I wrote about having enough last week.  I decided I would apply the same feeling of contentment to food that I have tried to apply to material things over the last couple years.

The beauty of the Enough Diet is its simplicity.  I literally eat anything I want, but only until I’ve had enough. That means no downing an entire bag of M&Ms, or polishing off a 20oz. Coca Cola in one sitting.  Now I might just have a small handful of M&Ms, and pour about 6oz. of Coca Cola to enjoy with my dinner.  That’s just enough.

The Fab Five

What Money Can’t Buy. We talk a lot about money here, but this article is a great reminder that there are so many more important things in life that cannot be bought with any amount of money.  (@ Marc and Angel Hack Life)

Why I Pick Stocks: Choosing Individual Stocks Over Mutual Funds. In the past, I’ve shied away from picking individual stocks as part of my overall investing plan.  I did manage to make a little money with a speculative pick right out of college, but I lost any profit trying to recreate it through a number of bad picks. (@ The Digerati Life)

One Of Life’s Greatest Contradictions: Learn To Love What You Hate.  Ah, this one really spoke to me!  I prepared most of these links the night before and I was really dreading my workout.  I literally read this article, paused the roundup post and hit the weights.  (@ My Super-Charged Life)

The Savings Account, The Spending Account & The Charity Account.  The “giving” gift card idea shared here is brilliant!  What a wonderful way to encourage our kids to become givers. (@ My Life ROI)

Get Out of Debt: Give Up Your Favorites.  Getting out of a large hole of debt takes an unbelievable amount of sheer will and perseverance. The first step is the acknowledgment of the things you must give up to get there.  (@ No Debt Plan)

Best of the Rest

• Closing on Our First Rental Property
• Oh Crap! I Got Rid of Too Much Stuff!
• Want To Learn to Read Your Home’s Electric Meter?
• 8 Small Changes You Can Make to Save an Extra $100 This Month
• Improve Your Credit Score Under the New FICO Scoring
• COBRA Premium Reduction
• Investing in My SEP-IRA Account
• 7 Ways Saving Money is like Losing Weight
• Save Money with Fast Food Value Menus
  

Quote of the Week

I saw this one on Twitter, but unfortunately I don’t remember the author.  If you can claim it, let me know:

“Who would have thought the top headlines in 2009 would be Swine Flu, pirates and tea parties.”

Strange indeed.

Every now and then I run across an example of someone living an ultra-frugal lifestyle and it really appeals to me.  This was the case when I saw a video at Living Off the Grid about people who build, and live in, tiny house.

Now, our idea of a tiny house might be two bedrooms instead of three, or anything less than 1,200 square feet.  Most in and around real estate would agree.  However, I’m referring to extremely tiny houses – in the neighborhood of 100 square feet.  We are talking just enough room for small couch, kitchen and loft with a bed.  Upscale versions feature indoor plumbing.

The benefits of living in such a tiny house are captured in the interview with Peter King, a tiny house builder in Vermont.  Imagine being able to construct one of these tiny homes in a couple weeks, pay cash for it (no mortgage), and live off the grid thanks to a solar panel.  Sounds like my kind of place!

Now back to reality.  There is obviously no way my family of four (five if you include a dog  that weighs as much as some people) could occupy such a tiny house.  However, there are some valuable lessons here for those of us who are not single.

My wife and I have kicked around the idea of downsizing our home.  We decided to stay put for now, but examples like this always get my downsizing juices flowing again.  I start dreaming of a cheaper mortgage payment, lower utilities, lower taxes, and less stuff. Even thought we can’t move into a 100 square foot home, that doesn’t mean we couldn’t look at downsizing to a smaller home than the one we are in now.  And we could enjoy many of the same benefits, though admittedly to a lesser degree than those who live in tiny houses.

Benefits of Buying a Smaller Home

• Lower monthly mortgage payment
• Lower taxes
• Easier to pay off mortgage completely in a shorter time
• Less space to fill with furniture
• Smaller lot (maybe) to maintain
• Significantly lower utilities

So what’s holding us back?  Well, there’s the idea of moving, which sucks the energy right out of my body.  To add to it, there’s the realization that we would need to do a little work to our house to get it ready to go on the market.

At the moment, I don’t feel like doing either one – moving or fixing up! And, to be perfectly honest, we’ve sort of grown into our current space, and would need to get rid of a ton of stuff from all rooms before we could even consider moving into less space.  Still, it is something we will continue to consider, particularly if the right house with the right deal comes along.  In the mean time, I’ll live vicariously through people like Peter King and other ultra-frugal friends.

Readers, I could use your expertise with medical bills to help out a fellow reader.  Glen writes in with the following question regarding medical bills for his wife showing on his credit report:

I recently was denied credit and when I looked at my credit report I found that some wage garnishments had made it onto my credit report.

OK here is the kicker.  These bills were not mine but actually my wife’s medical bills. We went through some really hard times with her addiction and mental health issues.  We were close to a divorce so she did not give me permission to see her medical records.  Because of HIPPA laws I am not allowed to even discuss a bill of hers even if I dispute it.

What finally happened was credit agencies started sending her letters, then calls.  Since it’s not in my name I’m not permitted to open the letter or even if I did see it, which I did not because she kept them from me, I was not permitted to discuss it with them.  Since she was dealing with these mental health issues she did nothing about it.  Eventually I was served with a judgment saying they were going to garnish my wages.  Even though I could just pay the bill outright I was not permitted to even set that up because by law I cannot discuss it without her permission.  I can’t even dispute it with the courts because it’s my wife’s medical information.

So in short, by law, the spouse who’s name appears first on the insurance cards is financially responsible for all bills but has no right at all of even know a bill exists in the first place.  We  get to know a bill exists when they start garnishing wages, but even then you can’t call to dispute it.  By then it’s too late anyway.

How can I be reasonably expected to pay a bill I’m not entitled to see, discuss or know of its existence?  I want to dispute this but I’m not sure how because by law I’m told they are my responsibility.

Any advice you can provide would be appreciated.

Glen, that’s a tough situation. First, I’m sorry you and your wife had to go through this experience at all.  I hope she is doing better.  I wasn’t sure from your message whether or not you are still together, or if in fact the divorce was finalized. I’ll answer your question with the assumption that the divorce was finalized and you are now separated.

As far as the medical bills go, it appears from your email that you are more than willing (and able) to pay for the bills.  However, privacy concerns are preventing you from finding out important things like account numbers, payee contact information, etc.

You are correct that as the guarantor on the insurance plan you are ultimately financially responsible for the bill.  I would start by pulling a current copy of your credit report.  Look for any contact information, name of a collection company or attorney, etc.  The second place to look would be the court jurisdiction where the judgment was served.  A clerk there may be able to provide information for the party bringing the claim (probably the folks you need to settle up with).

Finally, and this may be a stretch, your wife (or ex-wife, whatever the case may be), may be willing to contact the medical provider and submit a HIPAA release form.  This would allow you to discuss information regarding her care received by that provider, and the associated outstanding debts.

I did find this related blurb on the web.  It was not from a credible source, but it might give you terminology for discussions with the medical provider or collections firm.

…If the husband is the primary on her insurance, he can be presented with a listing of services the insurance company paid for. However, as the Payer is only entitled to “minimum necessary” PHI and is required to pass on only “minimum necessary”, they can’t really say too much about what happened, and they cannot specifically declare a diagnosis.

The post at this site also looks promising – HCPro.com.

It might be time to consult legal advice.  An attorney may be able to help hunt down the judgment records and determine more information about the agency or agencies you owe.  They may also be able to advise you on your rights, responsibilities, etc.

In the interim, you might want to add a consumer statement to your credit file with each of the three major credit bureaus.  It may or may not help in your attempt to acquire new credit for the lender to see an explanation for outstanding judgments.  It would be most helpful if you could make these lenders whole so it would be reported as a “paid” debt.

What other advice can you give Glen?  Would especially love to hear from someone in the medical or collections fields that could give Glen some guidance.

The Ten Commandments are widely recognized in the Christian faith as a list of moral imperatives that believers follow. As someone who also follows the concept of frugal living, I thought I would attempt to generate ten similar imperatives, loosely based on the original commandments.

Disclaimer: I am a Christian. In no way is this post an attempt to mock, or make light of, the original Ten Commandments. It is meant to be a light post, and I hope you will read it with that perspective in mind.

The Ten Commandments for Frugal Living

1. You shall not put money before happiness. So many of us make the mistake of putting money ahead of happiness. Whether it is declaring a major in college because of the promises of a high salary upon graduation, or accepting (or putting up with) a dead end job we hate simply because we make a lot of money.

We all have to suck it up occasionally and work through something we don’t want to do, but for the most part, look at the opportunities in life as chances to increase your happiness factor.

2. You shall not idolize things. By things I mean inanimate objects. These things have no inherent value. They are only worth the value you assign to them. Do not worship these things and be consumed by them. When I was 16 I had a picture of a Ford Mustang on my wall because it was “the car” I desperately wanted. Though I never got that particular car, “car idolatry” followed me for a while until I did finally make a new car buying mistake around twenty years-old.

3. You shall not take the name of Dave Ramsey in vain. Alright, so that’s a bit of a joke. But seriously, if you do not agree with something you hear from a “financial guru” there is no need to endlessly bash them. Simply take the good with the bad. No one says you have to adopt every piece of advice these financial personalities share.

There are many things I like about Dave Ramsey’s personal finance advice, and a couple areas where we differ. The bottom line is, develop your own plan after doing a little critical thinking over the idea of others.

4. Remember to rest, occasionally taking breaks from ultra-frugality. My grandfather wrote a letter to me when I turned 20 years-old, and it is something that I still treasure today. He said, “Stop and smell the roses. Life is to be enjoyed.” What great advice! I’ve used it over the years as a reminder that while living frugal, saving money and reducing debt have been my top financial priorities these last few years, I also have to make time to enjoy life. Take vacations; enjoy a football game with your family; take your wife out to dinner. But do it all with cash!

5. Don’t blame your parents for your financial problems. I hear a lot of people today blaming parents for financial problems, or their lack of financial education. Personally, I find that a lazy excuse. There are too many libraries, radio and television shows, blogs, and similar resources on the subject of personal finance to not be able to educate yourself.

If you ran up credit card debt because your parents never taught you about debt, guess what, you just learned a painful lesson. Consider it tuition to The School of Frugal Living, because after you work for two years at night five days a week part-time to pay off credit card debt, you will have a new respect for debt, and for the struggles your own parents went through.

6. You shall not kill your dream of financial independence. Tell someone at work you dream of retiring at 45 and watch their reaction. They will give you ten reasons why your idea is crazy. What about health insurance? How can you afford it? What if you live to be 80? What it social security isn’t there in your sixties? On and on and on.

So, many of us hear those objections, believe them, and subconsciously find ways to scuttle our plan for retiring early. Ignore those people. They have already given up on their dream, but you don’t have to. Never let anyone kill your dreams.

7. You shall not commit financial adultery by hiding money issues from your spouse. For a long time, my wife knew little about the credit card debt I had accumulated while trying to finish my online degree. I thought I was doing a good thing by not burdening her with the worries of mounting debt. I was wrong. I resented her for spending money when I was trying to pay off debt, and she didn’t understand my reluctance to spend because she thought we were living with more than we had. It was a recipe for financial, and relational, disaster.

Thankfully, I wised up and came clean about all of our finances, and together we developed a plan to attack our debts together to realize our dream of debt freedom. I’m proud to say we are nearly there, and I never could have done it without her help.

8. You shall not steal money that doesn’t belong to you. No matter how desperate you get, resist the temptation to steal money. I’m a big fan of the film Cinderella Man. One moving scene depicts the aftermath of a son’s decision to steal meat from a local butcher shop to help feed his starving family. His father discovers what his son has done and makes him return the meat. He tells his son that no matter how desperate things get, he is not to steal something that does not belong to him. It was a powerful lesson about an agonizing decision – the decision to steal to feed your family.

When I worked for a bank, I saw several employees get in trouble for stealing money. Later, we found out they were having financial problems of their own, and stole the money to help pay their debts. If you find yourself in a serious financial bind, resist the temptation to steal in an effort to get out. It will undoubtedly cause many more problems.

9. You shall not attempt to swindle your neighbor. Much news has been made of the recent Ponzi scheme busts around the country. These things have been around for a while, but with the help of technology they seem to be more prevalent than ever. But you don’t have to be running a Ponzi scheme to violate this commandment. Letting your neighbor in on a “can’t miss real estate investment opportunity” you know to be garbage violates this same commandment. Falsely pumping up a stock to neighbors to solicit their investments so your own shares increase in value is also violation.

10. You shall not covet your neighbor’s BMW. Be happy for others. Don’t be overly judgmental of the purchasing decision of others. And whatever you do, don’t be jealous of their possessions.

We once lived across the street from a guy who bought a new car every other year. He also had a huge RV, and all the toys a guy could want – jet skis, an ATV, a huge, plasma television, etc. For all I know, he could have been $100,000 in debt! Who could be envious of that?

With Financial Literacy month coming to a close, I thought it would be a great time to share with readers a nifty little personal finance education product by Nuru.  These personal finance cards simulate a portable finance book broken down into various categories, such as:

• Investing
• Budgeting
  
• Loans
  
• Insurance
  
• Retirement
  

I think this is a great product, particularly for someone in need of an introductory lesson on a broad range of financial concepts.  If you just read and absorbed one single concept a day for one month you’d be exposed to 30 different personal finance terms and products.

When I was in my early 20’s I knew very little about personal finance concepts, such as mutual fund investing, bonds, etc.  I spent a lot of time pouring over personal finance books trying to get a basic grounding in these concepts.

Too bad Nuru’s personal finance cards weren’t around back then!  I could have tossed them in my book bag and reviewed them during breaks in between classes.  The cards even come with a key ring, and the cards are punched so they can be loaded and transported together on the ring.

At $10 per deck, they are not necessarily cheap.  However, try buying a personal finance book (or books) that covers the range of subjects these compact decks cover for less.  They make a great gift for yourself, someone else, and as a bonus for fellow bloggers, these make an excellent reference when drafting posts on a particular subject.