1	Escape The surprising Spanish heritage of the faraway Pacific island of Guam. read more...
2	Driver’s Seat Russ Heaps evaluates the need for speed. read more...
3	Spice Surprises in the world of wine and spirits. read more...
4	Fashion Constance Marie brings design from the red carpet to the real world. read more...
5	Salud The story behind how Zumba grew into one of the hottest fitness programs around. read more...
6	QUEST Ask Julie How to avoid some dangerous paths your neighbors may have followed. read more...

Quest

Ask Julie

Keeping up with the Joneses

There you are, shoveling snow off your driveway. Your hands hurt, your feet are wet and you haven’t felt your nose in what seems like hours. The garage door across the street opens and out comes your neighbor, riding on the latest John Deere state-of-the-art snow blower, leaving behind the shiny Beamer he just bought his wife for Christmas. You pretend to ignore him, but inside, you are ashamed to feel the pangs of envy. At which crossings did you take different turns along the way?

By Julie Stav

Let’s review some possible scenarios:
Mortgages: You took advantage of a good buy on your home, and because of your good credit, you qualified for a fixed interest rate that kept your monthly payments within $100 of the rent you and your family paid in your rented apartment.
Your neighbor, on the other hand, bought his home with a teaser adjustable rate even though he could have qualified for a fixed mortgage. You wonder if he really did invest the money he saved every month on his mortgage as he intended to do, and how much his payments will increase once his interest rate resets to the new levels. Does he even know? He waves at you as he makes a sharp turn.

Checking Accounts: When you moved into your new neighborhood, you took advantage of the need to change your address on your checking and savings accounts to compare banking rates and services. In doing so, you discovered that your bank was charging you a monthly fee just for the privilege of keeping your money. You no longer bank there, and instead you discovered the benefits of online banking. You pay your bills on time and with no monthly fees in your account whatsoever.
• Your neighbor is charged the national average of $34 for each overdraft, something that happens to him quite often because he fails to keep track of his debit card use. Give yourself another checkmark.
Credit Cards: You carry credit cards, not balances. If you only have one financial golden rule at home, it is to never charge more than you can pay off each month. You took the time to find a credit card with a grace period and you made sure that they receive full payment for your charges before any finance fees are assessed on your account. Because of the cash-back feature on your credit card, you are able to apply that amount to the cost of your auto insurance, saving you one half of the amount due each year.
• Your neighbor believes that as long as he can keep making his minimum payments on his credit cards, he will take all the credit he can get. You wonder if he got that silver card he was hoping to have in case of emergencies? You begin to have a bounce in your step.

Car Purchase: You shopped for your car loan before you shopped for the car and found that your insurance company offered you the best rate, even lower than your local Credit Union. In fact, you even called your insurance company before comparing prices of cars to make sure you could afford the premiums for the amount of protection you needed, and to find out what the replacement value would be on your car in case of a total loss. And since you carpool three children to school every day, you took an additional medical insurance coverage on your auto policy, just in case any of the children didn’t have their own medical insurance.
• Your neighbor walked into the showroom with his wife and drove off with the latest model, which he financed right there at the dealer. He did go online to apply for his auto insurance, where he chose the minimum required by law in addition to the basic requirements of the dealer’s finance company.

Your Retirement Accounts: Your wife is a homemaker and you have a job that offers a 401(k) plan. You have deposited $4,000 into your wife’s IRA account each year and you are contributing the maximum allowed by law into your own pension. With your employer’s matching contribution, you should be on track for an early retirement.
• Your neighbor, well, he borrowed against his 401(k) and he is making payments on it now. He hopes to resume deposits just as soon as he can free up some cash. Roar on, neighbor!
You look at the sky. It’s turning ugly again and soon there will be fresh snow on the ground. You wave goodbye to your neighbor and head back to your garage.

Listen to Julie Stav’s
radio program Monday through Friday on your
local Univision radio station. For more
information visit
www.JulieStav.com.