- Guide to finding cheap airfare: http://su.pr/2pyOIq #
- As part of my effort to improve every part of my life, I have decided to get back in shape. Twelve years ago, I wor… http://su.pr/6HO81g #
- While jogging with my wife a few days ago, we had a conversation that we haven’t had in years. We discussed ou… http://su.pr/2n9hjj #
- In April, my wife and I decided that debt was done. We have hopefully closed that chapter in our lives. I borrowed… http://su.pr/19j98f #
- Arrrgh! Double-posts irritate me. Especially separated by 6 hours. #
- My problem lies in reconciling my gross habits with my net income. ~Errol Flynn #
- RT: @ScottATaylor: 11 Ways to Protect Yourself from Identity Theft | Business Pundit http://j.mp/5F7UNq #
- They who are of the opinion that Money will do everything, may very well be suspected to do everything for Money. ~George Savile #
- It is an unfortunate human failing that a full pocketbook often groans more loudly than an empty stomach. ~Franklin Delano Roosevelt #
- The real measure of your wealth is how much you'd be worth if you lost all your money. ~Author Unknown #
- The only reason [many] American families don't own an elephant is that they have never been offered an elephant for [a dollar down]~Mad Mag. #
- I'd like to live as a poor man with lots of money. ~Pablo Picasso #
- Waste your money and you're only out of money, but waste your time and you've lost a part of your life. ~Michael Leboeuf #
- We can tell our values by looking at our checkbook stubs. ~Gloria Steinem #
- There are people who have money and people who are rich. ~Coco Chanel #
- It's good to have [things that money can buy], but…[make] sure that you haven't lost the things that money can't buy. ~George Lorimer #
- The only thing that can console one for being poor is extravagance. ~Oscar Wilde #
- Money will buy you a pretty good dog, but it won't buy the wag of his tail. ~Henry Wheeler Shaw #
- I wish I'd said it first, and I don't even know who did: The only problems that money can solve are money problems. ~Mignon McLaughlin #
- Mnemonic tricks. #
- The Wilbur and Orville Wright Papers http://su.pr/4GAc52 #
- Champagne primer: http://su.pr/1elMS9 #
- Bank of Mom and Dad starts in 15 minutes. The only thing worth watching on SoapNet. http://su.pr/29OX7y #
- @prosperousfool That's normal this time of year, all around the country. Tis the season for violence. Sad. in reply to prosperousfool #
- In the old days a man who saved money was a miser; nowadays he's a wonder. ~Author Unknown #
- Empty pockets never held anyone back. Only empty heads and empty hearts can do that. ~Norman Vincent Peale #
- RT @MattJabs: RT @fcn: What do the FTC disclosure rules mean for bloggers? And what constitutes an endorsement? – http://bit.ly/70DLkE #
- Ordinary riches can be stolen; real riches cannot. In your soul are infinitely precious things that cannot be taken from you. ~Oscar Wilde #
- Today's quotes courtesy of the Quote Garden http://su.pr/7LK8aW #
- RT: @ChristianPF: 5 Ways to Show Love to Your Kids Without Spending a Dollar http://bit.ly/6sNaPF #
- FTC tips for buying, giving, and using gift cards. http://su.pr/1Yqu0S #
- .gov insulation primer. Insulation is one of the easiest ways to save money in a house. http://su.pr/9ow4yX #
- @krystalatwork It's primarily just chat and collaborative writing. I'm waiting for someone more innovative than I to make some stellar. in reply to krystalatwork #
- What a worthless tweet that was. How to tie the perfect tie: http://su.pr/1GcTcB #
- @WellHeeledBlog is giving away 5 copies of Get Financially Naked here http://bit.ly/5kRu44 #
- RT: @BSimple: RT @arohan The 3 Most Neglected Aspects of Preparing for Retirement http://su.pr/2qj4dK #
- RT: @bargainr: Unemployment FELL… 10.2% -> 10% http://bit.ly/5iGUdf #
- RT: @moolanomy: How to Break Bad Money Habits http://bit.ly/7sNYvo (via @InvestorGuide) #
- @ChristianPF is giving away a Lifetime Membership to Dave Ramsey’s Financial Peace University! RT to enter to win… http://su.pr/2lEXIT #
- @The_Weakonomist At $1173, it's only lost 2 weeks. I'd call it popped when it drops back under $1k. in reply to The_Weakonomist #
- @mymoneyshrugged It's worse than it looks. Less than 10% of Obama's Cabinet has ever been in the private sector. http://su.pr/93hspJ in reply to mymoneyshrugged #
- RT: @ScottATaylor: 43 Things Actually Said in Job Interviews http://ff.im/-crKxp #
- @ScottATaylor I'm following you and not being followed back. 🙁 in reply to ScottATaylor #
10 Dumb Money Moves
Free Money Finance has a post up on Stacy Johnson’s 10 dumbest money moves. I thought I’d share my take.
Here are the mistakes:
1. Not having a goal
2. Not having a spending plan
3. Attempting to derive self-esteem from possessions
4. Doing what everyone else is doing
5. Starting to save large and late rather than small and soon
6. Paying interest to buy things that drop in value
7. Turning down free money
8. Buying a new car
9. Buying more house than you need or can afford.
10. Not protecting your good credit
Here is my response(and a test: Orthogonal Monkey Silicon Beam)
:
1. For most of the last 15 years, I didn’t have much for financial goals. “Get more money” isn’t specific enough to be a goal, and our spending precluded the possibility, anyway. Right now, my financial goal is simple: Get out of debt. I’m down to about $61,000.
2. We have a budget, even if it’s been partially ignored for the last couple of months. If it weren’t for my side-hustles, we would have come out negative last month.
3. We struggle with this one a lot. “Keeping up with the Joneses” is an issue in our house. My wife’s closest family is 10 years older than we are, and has more stuff, which makes it hard to visit without making comparisons. We both know it’s irrational, but it’s the way it is.
4. We are fighting this one as well. The fight is going better than #3. We’ve stopped using new debt, which shocked our friends, and I’m working on launching a new business, to break more bonds.
5. Is 30 late? We’re saving small while he fight debt, but I think we started early enough to make the rest of our lives easier.
6. We pay far too much in interest each month, but there has been absolutely no new debt since April 2009.
7. I got into my company’s retirement plan to get the match, but that ends next month. My wife’s employer killed the match 5 years ago. There’s no free money to turn down anymore.
8. We bought a new truck, as part of our debt-accumulation, in 2001. In 2005, we instead bought a car as it came off a lease. It had 11,000 miles on it and that saved us $10,000.
9. We bought our house in 1998. It sits on 1/8 of an acre. sometimes space is tight, but we’ve watched so many people trade up and find themselves in severe trouble. I’m happy we’ve stayed here.
10. This is one we’ve always guarded. No matter how much debt we’ve had, we’ve made every payment. We’re hugging the underside of an 800 FICO score. Thankfully, we’re closing in on the point where FICO no longer matters, because we’re paying in cash.
What are your biggest money mistakes?
Negotiating 101
In the US, haggling is something that makes a lot of people twitch and wet their pants. It’s too hard/scary/intimidating, so most of us just take whatever price is offered, with a smile.
The truth is, you can negotiate in almost any situation. Sure, big-box retailers with low-price goods–like Walmart or a grocery store–aren’t going to go for it, but a lot of other businesses will. Did you know you can haggle at Best Buy? It’s true, but only on the bigger ticket items.
You can also easily negotiate at place like these:
- Credit card interest rates and annual fees
- Luxury utilities like cable
- Rent
- Hotel rates
- Airline tickets
- Gym memberships
“Great”, you say. “Anyone can do it?”, you say. “But how, jerk?”
No need to call names, I’m getting to that part.
I am about to share the First Secret Lesson of Negotiating. This secret has been passed down from father to son among the celibate Shaolin monks for generations. Breaking the code of secrecy may be putting my life in danger, but I’m willing to do that for you, no matter the risk.
I rock like that.
Are you ready to be initiated into the secrets of the Ancient Masters? When our first abbot, Buddhabhadra, first wandered into the Northern Wei Dynasty branch of Best Buy in 477 A.D., he discovered the phrase most likely to break price barriers.
Are you ready, Grasshopper? This is the “Wax on, wax off” of effective negotiation.
When you are given a price, no matter what it is, say “Is that the best you can do?”
“This T.V. costs $7495.” “Is that the best you can do?”
“That comes to $56.95.” “Is that the best you can do?”
“$149,499 for the Ferrari.” “Is that the best you can do?”
“$12,000 for the kidney.” “Is that the best you can do?”
“Only $8.50 for this set of 10 tupperware lids that have been warped in the dishwasher.” “Is that the best you can do?”
“$50 an hour, honey.” “Is that the best you can do?”
“The salary for this position is $50,000 per year.” “Is that the best you can do?”
It is magical, it’s easy to remember, and it’s low stress. This is a non-combative question. The worst possible scenario involves the other side saying, “Yes, that is the best I can do.” No sweat.
Negotiating Lesson 101.2:
After saying “Is that the best you can do?”, shut up. The other party gets to be the next person to say something.
Go out and practice this over the weekend. Master the First Secret Lesson of Negotiating. I’ll be fighting off Shaolin ninjas for sharing the ancient secrets.
Reason #45,682 Why It’s Good To Have An Emergency Fund
My mother-in-law died two weeks ago.
It’s sad, but I’m not going to get into the emotional devastation that comes with the death of a loved one here. At least, not today.
Today, I’m going to talk about the money, but not the funeral expenses.
I’m talking about the expense of taking over her stuff. When she died, she was living in her own home, paying her own bills.
Now, we have a small stack of expenses we weren’t planning for.
She had 2 cars. She actively drove one, and kept storage insurance on one that was parked in the driveway. Combined with the homeowner’s insurance, that’s $110/month.
One of the cars has a loan. The car is worth $4000 more than the loan, so it’s not worth letting the bank repossess it. That’s another $200/month.
The gas and electric add $50 to the monthly tab.
Setting aside money for the property tax adds nearly another $200 per month and the first half is due next week.
I rounded the numbers off here, but that’s $562.58 that’s outside of our regular budget and doesn’t address some bills that we paid off instead of arguing with bill collectors while we straighten out the estate.
This is the kind of scenario that makes me happy to have an emergency fund. We are able to pay the property taxes and keep the lights on because of it. A few years ago? The car would have been gone and the house dark within a month.
Now? The emergency fund covers the immediate expenses and we have some breathing room to adjust our budget. For example, the money we were setting aside for our next car is now being earmarked for paying off our surprise car loan.
My New Windfall
Tax season is over.
This year, TurboTax and Amazon teamed up to offer me a 10% on up to $1200 of my refund if I took it as an Amazon gift card.
$120 free if I spend that money with a company I’m going to spend money with anyway?
Yes, please.
I spend lots of money with Amazon. I subscribe to many of my household items there, because I use them and I don’t want to have to think about buying them. I get my soap, shampoo, toilet paper, paper towels, and garbage bags automatically delivered. There’s a bunch of other stuff, too, but that’s what I remember off the top of my head. If I have 5 items in a monthly delivery, I get 20% off.
Free money, free shipping, and none of the hassles of shopping?
Yes, please.
So now I have a $1320 credit with the company I use for most of my non-grocery shopping.
I also have 962 items on my wishlist with Amazon.
To recap: $1320 burning a hole in my metaphorical pocket and 962 items that I have wanted at some time in the past, begging me to bring them home.
That’s a dilemma.
The smart answer is, of course, to let that money hide in Amazon’s system and slowly drain out to pay for the things I actually need.
The fun answer is to stock up on games and books and toys and gadgets and cameras and, and, and….
Some days, it’s hard being a responsible adult.
I think I’m going to compromise with myself. I’ll leave the vast majority of the money where it is, but I’ll spend a little bit of it on fun stuff, and a little bit more on stuff I don’t quite need, but would be useful, but not so useful that I’ve already bought it.
A new alarm clock to replace the one next to my bed that automatically adjusts for daylight savings time but was purchased before they changed the day daylight savings time hit so I have to adjust the time 4 times per year instead of never. That’s on the list of not-quite-needs.
The volume 2 book of paracord knots is on the list of wants that can’t possibly be considered a need, but it’s going to come home, anyway.
I figure, if I spend a couple of hundred dollars on things I really, really want, I’ll scratch that itch and leave most of the money alone.
What would you do with a $1300 gift card at a store you shop at every week that sells every conceivable thing? Spend it right away, or stretch it out, or something else?
My Financial Plan – How I Improve on Ramsey
In April, my wife and I decided that debt was done. We have hopefully closed that chapter in our lives. I borrowed, then purchased, The Total Money Makeover by Dave Ramsey. 
budget” width=”300″ height=”213″ />We are almost following his baby steps. Our credit has always been spectacular, but we used it a lot. Our financial plan is Dave Ramsey’s The Total Money Makeover, with some adjustments.
Step 1. Budget:
The budget was painful, and for the first couple of months, impossible. We had no idea what bills were coming due. There were quarterly payments for the garbage bill and annual payments for the auto club. It was all a surprise. Surprises are setbacks in a budget.
When something came up, we’d start budgeting for it, but stuff kept coming up. We’re not on top of all of it, yet, but we are so much closer. We’ve got a virtual envelope system for groceries, auto maintenance, baby needs(we have two in diapers) and some discretionary money. We set aside money for everything that isn’t a monthly expense, and have a line item for everything that is. My wife is eligible for overtime and monthly bonuses. That money does not get budgeted. It’s all extra and goes straight on to debt, or to play catch-up with the bills we had previously missed. I figure it will take a full year to get all of the non-monthly expenses in the budget and caught up.
Step 2. The initial emergency fund:
Ramsey recommends $1000, adjusted for your situation. I decided $1000 wasn’t enough. That isn’t even a month’s worth of expenses. We settled on $1800, plus $25/month. It’s still not enough, but it’s better. Hopefully, we’ll be able to ignore it long enough that the $25/month accrues to something worthwhile.
Step 3. The Debt Snowball:
This is the controversial bad math. Pay off the lowest balance accounts first, then take those payments and apply them to the higher balance accounts. Emotionally, it’s been wonderful. We paid off the first credit card in a couple of weeks, followed 6 weeks later by my student loan. Since April, we’ve dropped nearly $10,000 and we haven’t made huge cuts to our standard of living. At least monthly, we re-examine our expenses to see what else can be cut.
Step 4. Three to six months of expenses in savings:
We aren’t on this step yet. In step 2, we are consistently depositing more, making us more secure every month.
Step 5. Invest 15% of household income into Roth IRAs and pre-tax retirement:
I have not stopped my auto-deposited contribution. It’s stupid to pass up an employer match. My wife’s company does not match, so she is currently not contributing.
Step 6. College funding for children:
We have started a $10 College fund.
Step 7. Pay off home early:
I don’t see the point in handling this one separately. Our mortgage is debt, and when the other debts are paid, we will be less than a year from owning our house, free and clear. This is rolled in with step three. All debt is going away, immediately.
Step 8. Build wealth and give!
We have cut off most of our charitable giving. Every other year, it has been a significant percent of our income, and in a few more years, will be so again. The only exception to this is children knocking on the door for fundraisers. I have no problems with saying no to a parent fundraising for their kid, but when the kids is doing the work, door-to-door, especially in the winter, I buy something. My son’s school, on the other hand, gets fundraisers ignored. When they come home, I send a check to the school, ignoring the program. I bypass the overhead and make a direct donation.
