Search Results for “how-much-should-you-tip/INGDirect/subscribe-by-email/money-problems-day-1-setting-goals/consumer-action-handbook/mistakes-made/questions-from-a-reader/evil-interest/one-year-later/future-dreams/5-steps-to-save” — Page 10

Don’t Screw Future-You

Finance, Life

A conversation between me and my temporally displaced self.

Future Me: Excuse me, Jason?

Me: Yes?

FMe: <Slap!>

Me: May I ask what that was for?

FMe: Of course.

Me: What was that for, jerk?

FMe: That was payback for all of the hell you have put me through.

Me: What?!? I’ve never even met you, before.

FMe: Of course you have. I am future-you, and I’m sick of getting screwed by past-me, that is, you.

Me: Huh?

FMe: Listen close. You’re not the sharpest brick in the box and I don’t want to explain this twice.

Me: ???

FMe: A long time ago, when you first met our wife, you were dumb.

Me: I don’t appreciate….

FMe: Shut up. I was dumb then, too. Remember? You…err…we bought a new truck, built an addition on our…err…your…err…whomever’s house, got married in the same year. On top of many other expensive decisions. Do your recall?

Me: Yes, I do. So what?

FMe: If that wasn’t enough, you and your smoking-hot bride are still shopping like you’re rich. You drive a new car. Your kids wear new clothes. You’ve got a house full of new furniture. How did you pay for all of that?

Me: Naturally, I charged it. Zero payments, zero interest for a year! Pretty smart, huh?

FMe: What happens in a year?

Me: I don’t know. I’ve got a full year to figure that out.

FMe: <Slap!> I’ll tell you what happens! Future-you, that’s me, gets screwed! Your raise didn’t come through. You had a baby. The truck broke down. Your wife took maternity leave. A roommate moved out. You took a loss in the stock market. You didn’t plan! You had no savings to cover any of those problems because you were too busy servicing debt to pay for your current life.

Me: How was I to know?

FMe: <Slap!> Life happens! You never know what is coming next. You need to plan and save for what might happen. Otherwise, you’ll just accumulate more debt to be serviced by yours-truly. That is not acceptable.

Me: So? What are you going to do about it?

FMe: <Slap!>

Me: Really? Again?

FMe: <Slap!> I’m struggling to pay your debt. Your son starts college next year, but you’ve left me completely unable to help. Your daughter wants to get married in a couple of years, but the Father-of-the-Bride can’t afford a tux. My wife, your beatiful bride, wants a vacation that I can’t afford. You’ve screwed me, dude.

Me: I’m sorry. What can I do to fix it?

FMe: Buy me dinner, first.

Me: Huh?!?!?

FMe: Stop the excess spending. Spend less than you make, for a change. No credit.

Me: None?

FMe: None. Nada. Zip. Zilch. Only spend what you can afford. Budget. Pay off those nasty bills. Don’t leave me hanging.

Me: So, what you’re saying is that, if I don’t have the money, I shouldn’t buy it?

FMe: Exactly. That’s the path to wealth, freedom, and financial independence. Live in the real world.

Me: Gee, thanks, Future-Me! Now I know.

FMe: And knowing is half the battle.

What would your future-you have to say to you?

Make Yourself Accountable

Finance

Everybody knows the reputation New Year’s resolutions get for being abandoned in under a month. Following through with your saving and budget goals can be difficult. There are thousands of strategies for keeping your resolutions, but I’ve found that the best goal-keeping mechanism is to make yourself accountable. There are several ways to accomplish this.

Make Firm Goals. If your goals are open to interpretation, it’s easy to interpret them in a way that lets you off the hook. Make the goals concrete and immune to interpretation, and that can’t happen. “Get up earlier” may mean five minutes, which is technically meeting the goal, but not really. “Get up at 5am” is clear and concrete.

Get a “Goal Buddy”. When I am out shopping, if I’m struck by the impulse to buy something I probably don’t need, I call my wife. She’s more than happy to encourage me to put the movie or game back on the shelf. I have a friend who will call me up if he’s thinking about buying a new gadget so I can talk him down. Friends don’t let friends mortgage their futures.

Go Public. As you may have noticed, I’m being as open as possible with my goals for the year. I have laid out clear goals and I provide fairly frequent updates through both this site and twitter. If I fail, I fail in front of an audience. That’s strong encouragement to succeed. Tell your family, friends and coworkers. Announce your goals on the internet. Make it as difficult as possible to fail gracefully.

Punish Yourself. I have a line item in my budget called “In the hole“. If I go over budget one month, the overage is entered as an expense the following month. This serves the double purpose of getting the budget back on track and forcing me to sacrifice something the next month to make that happen. Another option may be to write out a check to a charity you hate, and drop it in the mail if you miss your goal. Anything unpleasant can work as your punishment.

How do you keep your goals?

Festival of Frugality #287: The Independence Day Edition

Misc

Today, it is my please to host the 287th Festival of Frugality, the Independence Day Edition. Yesterday, was Independence Day in the US. It’s the day we celebrate throwing off the yolk of high-tax, no-rights tyranny and blowing stuff up.

That’s not what this Festival is about. As much as I love this country and enjoyed celebrating, today, the theme is the Independence Day movie.

Coolest ID4 fact, ever: A promotional piece that aired in Spain for this film set off a “War of the Worlds” type of wide spread panic. The promo featured a popular Spanish news anchor and the piece ran as if there really WAS an alien attack to occur on July 4.

Editor’s Picks

The explosion of the Welcome Wagon Helicopters was actually footage of a pyrotechnics accident on set.

Miss T. gives us Seven Reasons to Avoid Penny Auction Sites. She does a great job of explaining the evil that is Penny Auctions, from outright fraud to the rip-off that is the basic business model. Some of these sites make $5000 or more on an iPad auction. They don’t even have to carry an inventory before running an auction.

Independence Day holds the record for most miniature model-work. It beat the previous record by double.

Philip submits Turn Wasted Extra Money Into a Debt Payment. I have a friend who is positive he can’t reduce his monthly expenses at all, while eating out almost every day.

The alien ship “miniature” was 65 feet across.

Boomer presents Financial Support For Your Adult Children. I love my parents. A lot. I couldn’t imagine moving back in with them, and I’m pretty sure they’d feel the same way soon enough. Although, Mom, if you’re reading this, can I have an allowance again?

This was the highest grossing film in 1996.

Suba presents Why you should not use 401k. I’ve never questioned the wisdom of maxing out a 401k. It’s good to see those assumptions challenged and the numbers crunched.

The Best of the Rest

President Whitmore: Good morning. In less than an hour, aircraft from here will join others from around the world. And you will be launching the largest aerial battle in the history of mankind. Mankind, that word should have new meaning to all of us. We cannot be consumed by our petty differences anymore. Perhaps it is fate that today is the fourth of July, and we will once again be fighting for our freedom. But not for freedom from tyrrany or oppression or persecution. We’re fighting for our right to live, to exist. And should we win the day, the Fourth of July will no longer be known as an American holiday, but as the day when the world stood up and declared in one voice that we will not go quietly into the night! We will not vanish without a fight! We’re going to live on! We’re going to survive! Today we celebrate our Independence Day!

FMF presents Save Money on Groceries by Shopping on Wednesday posted at Free Money Finance.

Harri Pierce presents Have a second hand summer posted at TotallyMoney.

Daniel presents Top 10 Reasons to Shop Online vs. Shopping In-Store posted at Sweating The Big Stuff.

President Whitmore: It’s a fine line between standing behind a principle and hiding behind one.

Philip Taylor presents The Best Time to Buy posted at PT Money Personal Finance.

Outlaw presents Pay Yourself First and Have Money in the Bank posted at Outlaw Finance.

Crystal presents Frugal Tips for the Pet Dog posted at Budgeting in the Fun Stuff.

Matt presents The Price of Water posted at Stupid Cents.

That’s right! That’s what you get! Look at you! Ship all banged up! Who’s the man? Who’s the man?! Wait until I get another plane! I am going to line up all your friends right beside you! ~ Captain Steven Hiller

Alan presents The Cost of Online Gaming: Free to Play posted at Canadian Finance Blog.

Paula @ AffordAnything.org presents Diets and Debt: Managing Money and Your Weight posted at AffordAnything.org.

Kay Lynn presents Summer Fun for the Frugal Family posted at Bucksome Boomer.

Jacob @ My Personal Finance Journey presents Top 10 Money Saving Tips posted at My Personal Finance Journey.

If you’re so smart, tell me something, how come you go to M.I.T. for 8 years to become a cable repairman?~ Julius Levinson

Glen Craig presents The Cost of Clutter on Your Finances and Life posted at Free From Broke.

Eddie presents 55 Suggestions To Save $1000 posted at Finance Fox.

Darwin presents Are You Better Off Than Your Parents? posted at Darwin’s Money.

Sustainable PF presents Sustainability Tip #179: Loose Cap Lose Gas posted at Sustainable Personal Finance.

WHOOOOO!!!!!!!!! Elvis has left the building! ~ Captain Steven Hiller

I hope you enjoyed the carnival. Please take a moment to subscribe to Live Real, Now.

SOPA Is Evil

Business

Piracy So the record companies, the movie studios, the obsolete media, and some large software companies want the ability to nuke a website from orbit if they find any of their intellectual property there.

Or a hint of their intellectual property.

Or, “Oops, I guess that wasn’t ours. How much business did you lose during the 6 month appeal of a non-judicial takedown?”

Pure crap.

I’m not saying that from the perspective of some junior high pirate watching free porn in his parents’ basement. Intellectual property is the basis of my livelihood. I am a Microsoft Certified Professional; a software engineer. I am a blogger; a writer. I am a web developer; again, pure IP.

Giving private companies the right to arbitrarily take down sites for what may or may not be an actual violation is absurd.

Over the last few years, a law firm called Righthaven(spit!) has been teaming up with news agencies around the country to extort fees out of websites–generally small sites–for violating their copyright. Most of those cases involved individual users–not owners–posting fair-use snippets of articles. Since the cases were filed in Nevada, it would have cost more to fight the suits than to simply pay the blackmail, typically $5,000-$10,000.

Now, add the ability to threaten to administratively shut down the site if settlement isn’t made in 24 hours. That eliminates the ability to consult with an attorney, undermining the legal system completely.

All because once-successful companies can’t cope with the current world.

I’m not a fan of piracy. I enjoy buying movies because that encourages the people who made them to continue to make movies. The delivery system sucks.

Netflix has developed a successful business model out of making it easier to watch movies legally than to pirate them. For $8/month, you can watch as many movies as you’d like. If you have a $50 Roku, or any number of other devices, you can watch right on your TV. Add another $8/month to that, and you can get new DVDs delivered right to your door. For less than $20/month, they are delivering licensed, legitimate content and making a profit doing so.

How did the movie companies respond?

Did they increase the availability of their libraries, to get more wanting-to-be-honest customers paying a small fee to watch their content?

Of course not. They reduced the instant library and extended the amount of time before they would license new movies for rental. They made it harder to get their content legitimately, which increased the amount of piracy.

Now, since Plan A is biting them in the ass, they are pushing for yet more legislation to salvage their failed business models.

Here are three options for watching movies I don’t own:

Option 1: Instant

Through the magic of Amazon Instant, Netflix Instant, or any of the magical Roku channels, I can…

Open an account. Once.
Find a movie I want to watch.
Watch it immediately. This could be included in a membership fee, or as an individual rental.

Option 2: Piracy

I am not recommending illegal activity. This is for the sake of example, only.

Download torrent software, like uTorrent. Once.
Go to a site like Torrentz.com and find a movie I want to watch.
Click the torrent link, let the torrent software open it and download the movie.
Watch the movie in a couple of hours. For free.

Option 3: Buy it.

Drive to the store each time I want to watch a movie.
Spend $15-$20 on the movie.
Drive home.
Fight the bank vault of plastic and tape they wrap the movies in.
Put the DVD in the player.
Watch 5 minutes of “Don’t Be a Pirate” garbage. Hey jerkface, if I’m watching the DVD, I didn’t pirate it. Bad market-targeting here.
Watch 15 minutes of commercials that I can’t skip through.
Watch 15 minutes of ~~commercials~~ previews that I can’t skip through.
Watch the movie. This process takes longer than the piracy and costs more than option 1.

On top of that, I’m told I’m a pirate if I back up my movies for archival purposes. Or if I rip my movies to my network to allow me to watch them conveniently. I’m told that I’m merely licensing the content of the disc, but if the disc fails, I have to buy a new one. I can’t just download the content again.

This is a failure, and it isn’t a legislative failure.

The companies that are embracing modern options are succeeding, and will continue to do so. The companies that refuse, at the expense of their potential customers, will sink.

First Steps – Ramsey was Wrong

Finance

Baby Steps” width=”180″ height=”240″ />: Image by bonnie-brown via Flickr

Fixing a lifetime of financial mistakes can be an intimidating process. Scratch that. It’s always an intimidating process. Where do you start? You’ve got a pile of bills, a dozen messages from bill collectors and two bi-weekly paystubs. What next?

Traditionally, and according to Dave Ramsey, the first step to fixing your finances is to make a budget, but he and tradition are wrong. The first step is to get everybody involved in your finances on the same page. If your spouse isn’t on board with paying off the debt and spending responsibly, nothing else will work.

Once you have that out of the way, you can move on to the traditional first step, making a budget. I’ve gone over my process to build a personal financial plan in quite a bit of detail, so I’ll just hit the highlights this time.

First, make a list of all of your expenses. Include all of your utilities, debt payments, tax payments and absolutely everything else. You need to know the amount of the payment and the frequency. If a bill is due quarterly, divide it by three and you’ll know what you need to set aside each month. Round up in all cases so you can build an automatic cushion.

Next, make a list of your income sources. For most people, this is far easier than tracking their expenses. Figure out your monthly income. If you get paid weekly, that that amount times 52, then divide by 12 to get your monthly income.

Finally, subtract your expenses from your income. If your total is a positive number then you are golden. If you total is negative, you have been a bad monkey. You need to make some cuts, and they may be painful. If your outgoing money is more than your incoming money, it is not possible to get ahead.

Once you have your income and expenses recorded, and you have made the cuts necessary to have a positive balance at the end of the month, you have a successful budget. Congratulations!

Sunday Roundup: Diet Redux

Misc

I had total diet fail last month.

From April to May, across 4 consecutive weekends, I put a bit over 1500 miles on my car on 4 separate trips. That is something like 10 times my average mileage.

That’s a lot of driving, squeezed around a regular schedule of work. Have you ever tried a drive through for low-carb food? Because of that, and the circumstances of some of my trips, I abandoned my diet on those weekends. Funeral food is rarely low-carb.

By the time those trips were over, I had spent so much time off my diet that “What’s one more sandwich?” became an easy justification. There is a reason I don’t break the rules I give myself. I can’t seem to cheat just once. Once I cross that line, it’s over.

So, instead of cheating on my diet and feeling guilty, I officially dropped it for most of the month of May. I decided it would be easier to get it out of my system than to continue worrying about it.

May’s over, and I’m back on the Slow Carb diet. My little fail cost me 7 pounds and 6.5 total inches(waist , hips, biceps, and thighs). I’m reasonably sure that most of that is water and will evaporate before next weekend.

Best Posts

My goal is to live my life so that I have no regrets at the end of it. That means pursuing my dreams and doing the things I love.

It’s easier to do the things I love when my life isn’t weighed down by the crap I don’t need.

Sweating the Big Stuff wrote a killer post on saving money simply by asking. Often, the easy things work.

Carnivals I’ve Rocked and Guest Posts I’ve Rolled

Shopping Online: The Money-Saving Secret was included in the Festival of Frugality.

Money Problems: Paying Off Debt was included in the Carnival of Personal Finance.

5 Ways to Help Your Friends Stay Out of Debt was included in the Totally Money Blog Carnival.

Should Pupils Focus on Personal Finance was included in the Yakezie Carnival.

Thank you! If I missed anyone, please let me know.

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