Budgets are Sexy

How crooks worm their way into your wallets.

2009-07-03T08:42:00.001-04:00

Hah! Good one FTC (Federal Trade Commission). I originally had this post titled, "How to Spot a Scam", but it just didn't do them justice ;) Check out this email below and tell me if it's not the awesomest thing you've ever read from them:

Today's troubled economic waters are infested with a voracious school of sharks -- con artists who are promising people a lifeline through jobs, recession-proof income, and access to free government grant money. They are bleeding money from individuals, and from the economy as a whole.

That's why the Federal Trade Commission and its partners are moving aggressively through enforcement and education. As the nation's consumer protection agency, we've produced a new video to help people learn how to spot a scam. It features two scam victims and a former telemarketer of fraudulent business opportunities who explains exactly how he got people to part with their money:

We hope you'll share this video and help your readers learn just how crooks worm their way into their wallets. More resources about helping people avoid business opportunity scams are at www.ftc.gov/bizopp. Did you like it?

PF Round Up: Hoarders, Interventions, and $100 Bills

2009-07-03T07:38:00.002-04:00

Favorite Finance Articles:

I Want What She Has. The first sentence says it all, "The problem with being financially responsible is that sometimes it seems like everyone around you is having more fun.
I Love Intervention. YES! I would love to see a "financial intervention". Genius, sir.
The 10 Year Savings Strategy: Saving money after you've already handled the basics. Perfect for those working on the "next stop". And as always, Ramit pulls no punches!
Want to save money? Carry around $100 Bills. That would do the trick ;)
Documentary Looking at Compulsive Hoarders. Sad :( But interesting.

Favorite (all?) Carnivals I Participated In:

Carnival of Personal Finance #211 - "Burn Notice" ed. hosted by Green Panda Treehouse
Carnival of Debt Reduction - "Waffle Iron Day" ed. hosted by Mighty Bargain Hunter.
Festival of Frugality #184 - hosted by My Frugal Adventures.
Carnival of Money Stories - "Declaration of Independence" ed. hosted by Stretchy Dollar.
Carnival of Twenty Something Finances - "6-29-09" ed. hosted by Independent Beginnings.
Money Hacks Carnival #71 - "Canada Day"ed, hosted by The Canadian Finance Blog.
Carnival of Pecuniary Delights #14 - "I Forgot Day" ed. hosted by Taking Charge.

Payday Loans vs. Credit Cards

2009-07-02T11:09:00.000-04:00

Payday Loans vs. Credit Cards - which are worse to take out cash from? They both have their pros and cons (mainly cons) but if you were in a bind and had to pick one, which would it be?

This debate popped up during my coffee meet up w/ James from Dinks Finance last night (I told you I'd be blogging about it! haha...). BUT, the crazy thing here was that we found ourselves defending opposite sides! He was slamming credit cards, and I was quick to diss those damn payday loans. It was an epic battle of two finance bloggers going head to head ;) Or perhaps a battle of nerds sipping coffee, take your pick.

The question we have to ask ourselves here though, of course, is who's right? Or better yet, which product technically IS the worst of the two? Well, I'm no expert in the field, but this little quote found on the CFA's (Consumer Federations of America) website says it all:

"Payday loans are extremely expensive compared to other cash loans. A $300 cash advance on the average credit card, repaid in one month, would cost $13.99 finance charge and an annual interest rate of almost 57%. By comparison, a payday loan costing $17.50 per $100 for the same $300 would cost $105 if renewed one time or 426% annual interest."

Ca-ching! They also share a pretty interesting cost comparison chart (pdf) and loan calculator that helps to determine what your total costs would be. By the way, for those who aren't familiar with the term "payday loan", it's basically a small short-term loan that's intended to cover a borrower's expenses until their next payday, sorta like a cash advance (also referred to as a paycheck advance or payday advance). They can be taken out online or at physical stores like pawn shops or their own entities.

In fact, it goes without saying that NEITHER payday loans or credit cards are a good answer for getting cash. Borrowing money from family/friends, taking out a personal loan, or just dipping into your savings accounts always trump cash advances when it comes to the fees you'll have to pay. Unfortunately there are times when these aren't an option though - and thus, the reason for this post (other than to prove my man James wrong ;) )

Contender #1: Payday Loans
The average fee you'll pay for a payday loan is somewhere between $17-$25 for each $100 that you take out, but it can get as high as $30 per $100 in some states! So, say you take out a common advance of $500 and you pay it back in full after 2 weeks - GREAT! You had to pay an extra $87.50 on top of the $500 you borrowed, but at least it's over with, right? Unfortunately no, the odds are stacked against you. According to the CFA - "Consumers have an average of eight to thirteen loans per year at a single lender." That's pretty damn scary.

On the plus side, you could argue that since these are mini loans of 2 weeks at a time, it might be easier to pay off and not have it drag on like it may w/ a credit card. That all comes down to personal preference and usage though - I can't really relate to it here.

Then, of course, we have that big ol' stereotype that payday lenders are bad evil people and are out to steal your money! Well, I don't have any facts myself to to say they're shady (although I feel they are), but I can def. say without a doubt that they want your money ;) And unfortunately you're hard pressed to see *all* their fees upfront and readily accessible on their sites - at least on the non-reputable ones.

Contender #2: Credit Cards (cash advances from)
Now let's talk credit cards. As much as I champion my dear credit card for budgeting purposes and the cash back rewards (not to mention the free grace periods to pay back purchases), they're certainly no angels either. According to common knowledge" and the talking heads on TV, the average American household is in about $8,000 debt. Some feel this is a bit inaccurate, but the fact is that many of us are, indeed, ADDICTED to our credit cards.

And if you're already addicted, why not just slap on a cash advance to it right? *shiver*. While usually LESS than paydays (do your research!) you'll still pay a steep price for it - anywhere from 15-25%. Of course, there's also the problem of mixing and matching normal purchases with cash advances. Most cards, if not all, will use your payments to pay off the lower interest items first (like your purchases), and THEN use it to pay off the higher cash advanced amount. It looks like there may be some new rules in place soon that would get rid of this though.

On the other hand, most credit card companys display all the informaton upfront - the rates, the fees, etc. You might actually have to look for it, but it IS there. And usually written in itty bitty font ;) I believe most c/c statements have it all disclosed on the back, but either way it's easily accessible on your bank's website or by placing a 2 min phone call. If you do your research and check around for the best rates, you might be suprised at what you can find.

The Winner: Credit Cards
In conclusion, they both suck and should be avoided like the plague. BUT, if forced to take one over the other, I'd go with my credit card all the way. I'm comfortable with it, I have a good relationship w/ the bank that issues it (USAA), and I can easily go online and pay the advance off at any point (because I don't carry any other balance. And if I did, I could always take out a new card specifically for this purchase and *then* pay it off online).

Now, if only I could remember the reasons James argued for payday loans ;) I'll have to ping him and get him to respond back here. Although in all honesty I'm scared as that boy's a genius at analyzing! Seriously, have you ever checked out any of his posts? whew.

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PS: If you find yourself in a situation and you need help, PLEASE research RESEARCH research! Spending 30 mins now can save you hundreds of dollars later if you don't know what you're getting yourself into. It's easy for me to state my opinions on the subject based on what I know, and what MY experiences have been over the years, but it's not necessarily the best for *everyone*. Only you know that and can judge the best option for yourself.

Here are some other articles I found while researching:
- Payday Loan vs. Credit Card Interest
- Credit Card Cash Advances Versus Payday Loans
- Why a Payday Loan is Better Than a Credit Card Cash Advance

Net Worth: June - Up $27,000!!! Hot damn, 401(k).

2009-07-01T10:01:00.004-04:00

Our net worth is up 40% from last month - now at $95k!

And we owe it all to my 401(k), baby! I've hinted at some problems with it in the past - we were waiting for it to show correctly in our accounts (long story) - but the good day has came and we're back on track! A whopping $30k on track.

I know I've harped on it before, but it just goes to show that consistent saving & investing DOES ADD UP over time. And hopefully you'll be able to watch it grow every month instead of getting a huge sorta-but-not-really surprise in your account one day ;) The point is, you have to start TODAY - not tomorrow, not next month or next year, but today. Start small if you have to, whatever it takes. And while I recommend the 401(k) for all that free money your company hopefully matches you on, it's certainly not necessary. An IRA or savings account would work just as nicely.

So yeah, the 401(k) stuff is the biggest change this month, with a major decrease in cash reserves being second. I'll explain more below, but this was also connected to the 401(k) stuff - and something I consciously decided to do. Only $5k more to hit that $100k mark! Woohoo!

Here's how June's net worth breaks down:

CASH SAVINGS (-$3,586.80): For the last two paychecks I've been contributing 90% of my paycheck to that same 401(k) so I can make up for some lost time. In doing that, I literally only get $69 and change per check now! Ouch. Thus, I've been dipping into my $5k+ side savings account to make up the difference each period to continue paying all bills & to stay "on budget". As you can imagine, this will only last another check or so before I run out ;) But if YOUR company matched 100% of 100% you put in up to the yearly maximum allowed, wouldn't you find a way to make it happen? It's all about taking advantage of the perks given to you and finding a way to make it work.

EMERGENCY FUND ($0.00): Our $10k is still sleeping away nicely in our Money Market account. It's mixed in with other funds so I can't determine exactly how much interest is accruing on the Emergency Fund in particular, but I it's definitely adding up.

ROTH IRAs (+$358.32): The good thing here is that I was able to scrounge up a decent $550 to put into the pot this month! The downside was that the markets already sucked out $200 of it. But like everything else tied to this roller coaster economy, it has its ups and its downs. But Operation Buffett is still in effect...

401(k)s (+$30,304.58): Is there anything more to say about this? ;) I was contributing a butt load. It wasn't showing up properly. But now it is. Actually, there's a little more to it than that but I can't really talk about it here. But no, mr. punch debt in the face, I was not funding a crack house on the side - you silly goose, you.

SAVINGS BONDS (+$0.20): Oh Joy! This will actually be the last time you see this category here though, so wave it goodbye (byyyyeeee). I finally listened to Ishan's advice to unload the bonds and invest the money elsewhere. You'll hear about it soon as I didn't have the time to incorporate it all here.

AUTOS WORTH (kbb) (-$375.00): A little more than the $50 devaluation from last month, but whatever - no one ever said cars were an investment ;) Here's how they line up this month:

Pimp Daddy Caddy: $3,620. Down the $50 buckaroos.
Gas Ticklin' Toyota: $10,435. Stayed the same? weird.

HOME VALUE (Realtor) ($0.00): This will remain @ $300k (the price our realtor set it at) until I hit him up again later for another review. He's the master in our particular neighborhood, and has been selling (and living in) in this area for 20+ years. I keep an eye on Zillow & Redfin.com on the side too to see what else is happening out there. Zillow just fluctuates so much, it's crazy. I love the site, but it's seriously nuts.

CREDIT CARD (car loans) ($0.00): Still at Zero! The previous debt here was an "auto loan" that I happened to charge on my credit card - effectively setting my interest @ 3%. I don't recommend this for everyone, but the method works well if you know what you're doing and don't have outstanding debt lined up. I'll leave this category in until I'm tired of looking at it ;)

MORTGAGES (-$386.01): We're still eager to refinance our first mortgage, but unfortunately we're still too under water to get on it. So in the meantime we chip away with any extra money we have left from our "house budget". Here's how they breakdown:

Mortgage #1: $287,612.32 - 30 year fixed, interest-only @ 6.875%.
Mortgage #2: $62,818.33 - Maxed out HELOC w/ 2.8% interest.

Well, that's it for this month. How'd you all do? Anyone win the lottery or take on a major mortgage? Whatever the case, remember to judge your success off of YOUR goals only. I know it's hard sometimes, but it's really the only thing you have control of. So if you're meeting or exceeding your goals, you're on the right track!

God Bless,

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*My budget has now been updated.
*And so have my sidebars.

How much is a house really going to cost me?

2009-06-30T08:19:00.000-04:00

How much is a house really going to cost me? A lot more than you probably think ;) Although it's still doable if you're ready to jump in! I was asked this same question by a fellow reader recently, and thought I'd forward my answer over for anyone else just starting the home buying process:

"Wow, that's certainly a loaded question! Here are my quick thoughts - First, it'll probably cost you a lot more than you originally think. Between the down payments (usually around 20% of purchase price these days unless you go FHA or other routes), the closing costs (usually around 3-5% of purchase price), and moving, picking up new furniture & household items, and then future taxes/homeowner dues/condo fees, it gets pretty crazy.

All that said, however, it could definitely be worth it while the prices are so low! If I didn't already own I'd be all over it (although I surely have my moments). In all honesty, I recommend finding a local realtor and scheduling a meet-and-greet w/ him or her to get all the info. from the beginning. It doesn't cost a penny (if they say it does, hang up and go somewhere else!), and that person could work on your side to help you through the whole process. As a previous realtor myself, I can tell you it's well worth your time.

You could also check around other blogs and click on "home ownership" or similar labels to get a general idea as well :) Try mymoneyblog.com - he has a great pool of info. Hope this helps! And good luck, let me know what you end up doing."

Bernard Madoff sentenced to 150 years!!!

2009-06-29T12:00:00.001-04:00

Madoff jailed for 150 years!! WOW. Guess that's what you get for scamming people out of millions and millions of dollars buster. This should at least give some solace to those who were burned by him, although, I'd much rather have part of the money back!

And by "I", I mean those who invested. Fortunately, I was not involved. And it's a good thing too as I would have easily fallen for it had I a) had lots of money to invest, and b) been approached ;) Or at least the old me would have been tricked....I'm a bit more cautious these days.

Anyways, click over to read more on Madoff going to jail for the rest of his life. Sucks to be him.

Financial Checklists Are Key. What's Yours?

2009-06-29T07:18:00.003-04:00

Just like budgets, financial checklists also come in different shapes and sizes.

Today I present to you a real-life one by fellow blogger Kaitlyn from Upturned Barbie. She blogs about life in general, but it's pretty obvious she has a keen eye on her finances.

Check out her current game plan:

Open a c.d. (waiting for a decent initial deposit)
Decide on, and begin, contributing to an IRA
Pay off the less than $1k of debt I have
Apply for, & get, a credit card & make regular pymts
Buy a house (foreclosed) in 1-2 years w/ a 30% down pymt & six months living expenses

Now that's a woman who knows what she wants! This self-proclaimed spreadsheet nerd is on track and ready to make things happen. She's already established a budget and believes "control of money is really one of the best things ever!" Sexy! How old are you again? Sheesh....@ 20 she's already 10 steps ahead of her peers.

It doesn't come w/out it's drawbacks (she's currently working 50 hours a week), but saving like a squirrel getting ready for winter sure does have its perks! How about you rock stars? Care to share? (You can see my top 3 over there in my sidebars, along w/ my progress)

This Week's Drinking Buddies (and PF roundup)

2009-06-26T09:22:00.002-04:00

Another month down, another PF Blogger Happy Hour! We headed over to Brickskeller this time, where a quaint party of 6 talked finance, blogging, beer, and most importantly - how expensive dating can get! (and you thought I was going to say girl on girl action, didn't you? Hah! Wrong blog...)

In a place that serves HUNDREDS and hundreds of beers you'd think I'd pick something adventurous, but sadly I stuck w/ my Bud Lights & Coke all night long. For reasons I shall not go into, it was mandatory that I stayed out of trouble ;) Which brings us to this week's favorite articles, written by none other than the 5 bloggers who were kind enough to share their company (and brain) with me. Please to enjoy:

Map Girl: I Got Scammed By Craigslist - Oh boy...be sure to skim the tips at the end!
Clever Dude: Our Secret to Success: Part One: Spending Less Than We Earn - In case you couldn't tell, I've been all about the simple theories lately ;) And Mike does this favorite tip of mine excellent justice. Plus, he talks about a budget.
Mrs Micah: Keeping Your Word to Children About Money - An awesome story from the past, and good to know when I start popping out mini J Moneys!
Budget Pulse (Craig): You Sure Refinancing Will Help You Build Cash? Nope, but I'd still love to *save* some cash by refi'ing! If only...
Building Wealth Together (Brian): Dude, I Totaled My Car - That def. sucks, but now the real question comes into play. Pick up another used one, or go for a solid new one? I say get a $3k Pimp Mobile aka Caddy ;)

And now, the carnivals I participated in:

Carnival of Personal Finance #210 - "Punch Out" ed. hosted by Suburban Dollar.
Carnival of Twenty Something Finances - hosted by PF Firewall.
Festival of Frugality - "Honeymoon Destination" ed. hosted by Financial Highway.
Money Hacks Carnival #70 - hosted by Blogging Banks.
Carnival of Pecuniary Delights #13 - "Summer Vacation" ed. hosted by Momma's Blog.
Carnival of Money Stories - hosted by Consumer Boomer.

PS: I highly recommend getting together & networking with people in your own area if possible. Not only is meeting new friends cool, but you could learn a lot on a subject (like finance) that many of your "normal" friends may find taboo ;) That makes blogging great, of course, but there's nothing like some face to face interaction every now and then to spice it up.

God Bless you, Michael Jackson.

2009-06-25T20:40:00.001-04:00

You will forever be a brilliant, brilliant artist, and millions of us will miss you. I will never forget blasting Dangerous on rotation 24/7 the first week I had that album - my 2nd ever! I pray the drama is shred, and you're finally at peace...and happy.

(my first non-financial post, sorry - just felt like saying something....)

Spectacles, Testicles, Wallet and Watch

2009-06-25T09:18:00.000-04:00

I'd like to share a few tips when driving around in cabs...A friend of mine lost his iPhone in a cab the other day and was going frantic. Not only was he on his way out of town for 3 weeks, but he's currently unemployed and was dreading the idea of picking up a new one. As with most people, his cellphone is his lifeline - esp when away from home.

But guess what? The cabdriver/good samaritan found it in his back seat! Not only did he remember my friend for the nice conversation they had, but he made a point to tell his girlfriend (who met him to get it back) that he was an excellent tipper :) While it wasn't the only reason he gave it back, the generous tip certainly stuck in his mind. So tip #1: Tip your cabbie well, especially if given good service.

Oddly enough, that same girlfriend had previously lost a wallet in a cab herself (different cab). AND, he too returned it with all id's and bills intact. Besides tipping well herself, she was also sitting in the front seat - making it super easy for the cabbie to find it! This brings us to Tip #2: Sit up front whenever possible. Your stuff will be found much easier if you leave it behind.

Of course, you could also just NOT lose anything, but we all know life doesn't work as nicely as that. Better to control those things you can, like tipping & sitting in the front seat :)

Live Like You're Broke...

2009-06-24T14:58:00.002-04:00

Whatcha know about that? Fellow blogger Anne wrote a little on it the other day, and it really hit me - Live like you're broke! Yes, nice & simple, I dig it. I'll probably forget this by next month (you know, A.D.D. and all), but for now let's roll with it ;)

If you were really broke, here's what what would happen:

First, you would still live! It would be harder, but it's not like you'd die.
You'd cut out spending. Because you "can't" spend - you're broke.
You'd save as much money as possible. You might have to turn around and pay the bills with it all, but you'd still be saving better.
You'd get creative! Probably the best reason to get in this mindset.

I think we all "live like we're broke" to some degree, it just comes down to the amount you're willing to give up (unless, of course you *are* broke, in which case you've probably perfected it!). I'm sure I could cut out 1/2 of the things I do now to save some cash, but it's just not worth it. On the other hand, there are plenty of things I COULD cut (and would cut) if I were indeed broke. Regardless, it's always good to stop and consider the way you do things. Do that enough, and you're bound to stay focused!

FHA Loans and the Stimulus Tax Credit

2009-06-24T09:09:00.003-04:00

*******************************************************************
Today's guest post is by Brandon Laughridge of Mortgage Loan Place. MLP specializes in providing high quality mortgage content and has recently embarked on creating the web's best mortgage calculator with a $10,000 programming contest.
*******************************************************************

The government is trying to re-energize the stagnant housing market - and that's making FHA loans more attractive than ever.

Headlines have pulsed these last weeks with news that the federal stimulus package will include an $8,000 tax credit for people who haven't owned a home in at least three years, if ever. The Federal Housing Administration has sweetened the deal: Buyers can use that money to pay for closing costs or even offset the 3.5 percent minimum down payment requirements for FHA loans.

But it's only with an FHA loan that buyers can use the tax credit for closing costs. Some housing experts expect the stimulus provision to help boost home sales in coming months. The National Association of Home Builders estimates that 40,000 more homes will be purchased because of the FHA initiative, in addition to the 160,000 sales already expected as a result of the tax credit.

Home buyers also have some flexibility in claiming the credit on their tax returns. They can choose to claim the credit for 2009 or file an amended 2008 return to receive the credit this year.

The new FHA initiative stipulates that home buyers can use the tax credit to offset the down payment only if a state housing agency is handling the loan. In all other cases, the tax credit can be used for closing costs, boosting a down payment or to pare down the interest rate.

There are a couple of other points of note for potential buyers:

Income limits are a part of the process. The threshold for individuals is $75,000 and $150,000 for those filing jointly.
So far, close to a dozen states are providing buyers with bridge loans to spur purchases immediately, well in advance of the next tax filing. These loans come with little or no interest and are to be repaid when the tax credit is applied the following year. The list of states includes Colorado, Kentucky, Missouri and Tennessee.
The FHA is offering advances on the tax credit so home buyers don't have to wait.

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Editor's Note: As always, consult with a professional before jumping in and getting a loan ;) What works for one person won't always work for another...

How do you measure your own financial success?

2009-06-23T07:48:00.003-04:00

This question popped up in an email i got from AskMen.com, asking if I wanted to participate in a survey.

Now normally I just glance over and then delete/archive as my A.D.D. brain can only take so much. But seeing how it was the "Great Male Survey of 2009", who am I to turn it down? Okay, well in reality they were smart enough to bold out some of the financial questions in the email ;) While most of them got my brain thinking, there was one question that really stood out:

How do you measure your own financial success?

Good one! First, each of us should probably define what "financial success" is. Is it money? Job title? How big your house is (better not be)? Everyone has their own thoughts on it. The first thing that comes to MY mind is net worth and my budget (naturally). Net worth because it gives me an overall financial snapshot of how we're financially holding up in life. It's something I can track on a monthly basis and see how successful (or not) we're doing. I think of my budget next because if I'm sticking to it and it's working, then I've had a successful month ;)

Okay, so keeping in mind what you feel financial success is, here are some of the answers given for the question (along with my own experience on the right of each "answer"):

Against that of my friends. - No way! Well, maybe partial-way ;) What they do doesn't affect me financially by any means, but I do notice that whenever one buys a new car or a bigger house, I tend to analyze how exactly they were able to do that. Stupid, but true.
Against that of my industry colleagues. Hmmm, nah I don't really compare anything here. I probably get paid more for what I do at my current job than similar positions in my industry, but that's just cuz I lucked out and found a perfect fit.
Against that of my father. Wow, good question. I feel like I would maybe down the road when I get into my late 30s or 40s, or probably even when I have kids, but at this moment of time it's not a thought for me. I do, however, totally listen to his thoughts on personal finance and investing!
Against my own financial goals. Ding, ding, ding, we have a winner! I 100% believe this is where we should all fall. I say "should" because most of us still keep those previous people in mind whether we want to or not, but that's just human nature.

Overall, it's a good idea to track your success through the goals you set up for yourself, not anyone else's. At least in theory ;) As long as you're WORKING on bettering your situation though, I say you're moving in the right direction. Maybe one day the Jones's will follow you?

Blogging From The Beach, and Saving Money!

2009-06-22T08:46:00.001-04:00

Gooooood morning my fine blog readers & twitterati! Did you get into anything fun over the weekend? We ended up hitting the beach for a mini-family reunion and we just couldn't bring ourselves to return home to reality yet ;) That's what vacation days are for, right?

While I sit here soaking up the sun and pegging my nephews with footballs (my favorite part), I thought it would be prudent to share a few saving ideas I came across while packing up...

On your next trip this Summer:

Drive the car w/ better gas mileage. As much as I wanted to pimp out my caddy for all my wife's family to see, we couldn't justify the 13.8 mpgs it brings to the table. Instead, we opted for the smarter choice: her Toyota Corolla (which gets 30+)
Stay with family or friends. This is my favorite option, and it usually works well when you miraculously plan your trip the exact same time they are ;) If that doesn't work, call Uncle Ned or your long lost sister to see if you can crash for a night or two. Promise them breakfast or something.
Take advantage of your surroundings. Chilling at the beach, hiking up and down the mountains, or just plain walking around and soaking in life is free. You've got a lot more time to just "be" when you're away, so relax and enjoy what's around you for a change.
Read. Not a lot of people like this option (I was once one of them) but I'll admit it feels great without the everyday noise around you. It's like 100% YOU time. And you don't have to feel bad for not reading finance books or magazines if you don't want ;) Unless you're me, cuz I like!
Do whatever you want. Eat your junk food, stay up late, be a sloth, whatever you want. I'm not sure if this really falls into a savings tip right here, but F it, you're on vacation.

So there are your 5 Free tips for the day. They might not be the most exciting, but they save you money. Plus, it's really the best I can do with all this sand blowing around my laptop right now ;) Yeah yeah, I suck. If you ever figure out a way to blog full-time though, please let me know. I'm afraid I won't go back to work tomorrow...

Budgets Come in all Different Shapes and Sizes.

2009-06-19T09:08:00.000-04:00

If there's one thing I like more than beer and sex (just being honest!), it's clever budgeting. And just like there's all sorts of ways to have a good time, there are all sorts of ways to manage your cash flow.

Personally, I use google docs to stay on top of my financial snapshot. I can budget from it, track my savings goals, my paycheck breakdowns, and most importantly my net worth (so I know overall how I'm doing that month). It's a little too bright and all over the place for some people, but it's perfect for me. You can download the budget template in excel if you wanna check it out.

Another way you can do it is via Word, shown below (click image to download the word .doc). It's clean, simple, and to the point. And most of all, it WORKS for the reader who emailed it over to me. As you can see, he has listed out all his bills, deadlines, savings, and retirement contributions - along with a few goals and "leftover amounts". Basically, his financial snapshot:

These are just 2 of the 10,934 ways you can do it. You've also got places online like Mint.com, YouNeedABudget.com, or even going old school and hitting up the envelope method! It doesn't really matter what you use, so long as you USE it and get something out of it. If it keeps your finances in check so you can frolic around with the more exciting parts of your life, you're doing things right.

PF Round Up: Britney Spears, Credit Cards, and College.

2009-06-19T07:26:00.002-04:00

Favorite Articles From The Web:

So Excited I Can't Sleep - A 401(k) song to the tune of Britney Spears! How can you go wrong?
In The Beginning....Credit Cards - A story about getting credit cards when they first came out! So awesome. Imagine not knowing how much of an influence they'd have on the world?!
September 23, 2005 - A personal journal entry by the main man Trent from Simple Dollar. Not only is the title catchy as hell, but it just goes to show how we can all evolve over time :)
6 Money Skills & Habits to Teach Your Kids Before College - Two of my favorites are noted - budgeting & spending less than you earn (so simple, yet so not-done!)
Video Entry: Net Worth Isn't About Money - Cool change of pace from reading.
You Know You're A Personal Finance Blogger When... Hilarious, yet oh so true.

Carnivals I Participated In:

Carnival of Top Personal Finance Posts #7 - Hosted by Joe TaxPayer. Only 6 posts get selected!
Money Hacks Carnival #69 - "Dollar Bill" ed. hosted by Own The Dollar.
Best of Money Carnival #3 - "Rolling Stones" ed. hosted by Wealth Pilgrim. (a new carnival that features just the top 10 faves for the week instead of the 100+ you usually see ;))
Carnival of Personal Finance - "209th Edition" hosted by Living Almost Large.
Carnival of Money Stories - "Father's Day" ed. hosted by Not The Jet Set.
Festival of Frugality #182 - "Revenge of The Fallen" ed. hosted by Stupid Cents.
Carnival of Pecuniary Delights #12 - "Catch A Wave" ed. hosted by Pecuniarities.

Money Saving Tips on Your Car Insurance

2009-06-18T11:37:00.003-04:00

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This is a guest post from the team at CarInsuranceQuote.net.
If you like what you see, check out their their website and see
how much you can save on your car insurance.
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With today's economy, most people are looking to save where ever they can. Whether it's brewing a pot of coffee at home rather than paying $4.00 at a cafe or skipping an annual vacation, consumers are tightening their belts. One great way to see immediate savings is to re-evaluate your car insurance.

The first place to start is with your car. If you are in the market for a new vehicle, consider the cost of insuring it along with the ticket price. Older and smaller cars with a high safety rating are likely to cost the least amount to insure. After shopping around and narrowing your selection to just a few possibilities, call an insurance agent to see about car insurance quotes on each make and model. The numbers could surprise you and you could opt for one vehicle over the other.

If you are not in the market for a new car, start by looking at your current auto insurance policy. (Here's what Mrs Budgetsaresexy and I pay) Are you missing out on any discounts? Talk to your insurance agent about good-driver discounts, good-student discounts and whether your profession qualifies you for any discounts. You can also take drivers safety courses that can lower your rates.

If you drive an older vehicle, you can consider dropping your collision and/or comprehensive coverage. If you car is worth less than 10 times the premium, purchasing full coverage may not be as cost effective. Instead, consider liability insurance as your affordable alternative. You can find out the worth of your car by looking online at Kelly's Blue Book. In any case, be sure to consult your insurance agent before dropping any coverage. They might suggest that you consider raising your vehicle's insurance deductible. By raising this part of your policy, you can lower your auto insurance premiums significantly. (Just make sure that you have enough cash reserves set aside in case of an accident.)

If you own your home or more than one car, talk to insurance agent that can bundle your insurance policies to save on each insured car you drive. If there are any other types of insurance that your company offers, it may be a good idea to talk to your agent about what else you can bundle to receive discounts on your coverage.

Believe or not, many insurance companies also utilize your credit rating to help them determine what type of risk you might be. Car insurance companies determine rates upon risk and if there is higher risk, rates will increase. You should always review your credit annually and look into how you might improve your credit score. Keeping a good credit score as one way to lower your car insurance rates.

All of these tips are a great way to reduce your rates, however, the quickest and easiest way to see the biggest drop in premiums is to shop around for car insurance. To get a car insurance quote, simply enter your basic information online with a comparison shopping website and you will be contacted by up to five local insurance agents offering you cheaper auto insurance rates. These agents know they are competing with other agents in your area, and in order to win your business, they will offer you the most complete coverage at the absolute cheapest price.

Craigslist: Lil Wayne Wanted (DC-MD-VA)

2009-06-18T08:18:00.000-04:00

OMG I haven't read anything this funny on Craigslist since I last tried to sell my Humpty Dumpty plate for a $1! A Lil Wayne Impersonator? Hah! It just goes to show what money can buy you...or in this case, all the doors it can open. A+ for effort dad, we hope you find your lil rapper for your party.

(Whaaaaaaaat? Okaaaaeeeeeyyyyyyy!)

My #1 financial goal each year : Max out my 401(k)

2009-06-17T09:02:00.003-04:00

My #1 financial goal each year is to max out my 401(k). It's the one thing I strive for more than any others, no matter what's going on w/ the world. Some years it's easy and I bask in my glory, and other times I want to carve my eyeballs out with a rusty spoon. If I can complete just that one goal each year though, poppa J is happy :)

He knows that socking away $16,500 every year (or whatever the current limits are) will bode well in the future and allow him to sip long island iced teas on the beach some day! Plus, the fear of working himself to death is just too much to bear in his old age.

Regardless of what it is though, I believe everyone should have a major financial goal to complete each year. Whether it's saving up $5k in an emergency fund, wiping away an entire credit card, or just taking a new financial course every year. Whatever it is, strive for it and make it happen no matter what it takes. You'll be amazed at what you can actually pull off when you push yourself.

In fact, I had to cut down my average 401k contribution to 1% for a while due to some accounting issues that were outside of my control. Because of this, my total contributions thus far is hovering around $3,700 instead of the $8.5k it should be at now that '09 is halfway over (scary!). You know what that means? If I still want to reach my goal of hitting $16.5k, I have to bump up my contributions like crazy to catch up! And let me tell you, it's a lot more fun having 30% taken out than 90% which it's currently at (we're talking a drop from $1740 every 2 weeks to $69 and change!). Wha???

The point is, willpower's a beast when put to good use. Focus your energy into a specific goal and make it happen. If you accomplish more? Great! But at least have that major win in your pocket. Saving and investing isn't hard in itself, it's just a matter of doing something about it. So get that game plan in action and tell us what you're working on! What is YOUR #1 financial goal this year?

Rate Chasing 101: Do you have the personality for it?

2009-06-16T08:36:00.001-04:00

Do you spend hours each week searching for the best interest rates around? Do you bounce from one bank to another, living on the thrill of that extra .01%? If so, you, my friend, are a rate chaser. And you also have a lot of time & patience ;)

Many PF Bloggers consider this on a daily basis, but personally, I just can't do it. The thought of opening & closing handfuls of bank accounts alone is enough to make me nauseous. All that paperwork & time to get it up and running, only to xfer out the money when a better rate pops up? Nah, not for this homeboy.

That's not to say it isn't financially smart though. Mathematically, it might totally make sense! If you can grab a higher interest rate or pay a lower % on debt, then more power to you! I support that 100%, hands down - especially if you have out of whack rates to begin with. Having the best rates is totally commendable, but it's the frequency of switching accounts (sometimes every 3 months) and the research involved that separates the rate chasers from the average joe like myself.

Not only do they need the best of the best, but they need it now. After all, it's just a matter of time until it changes again! Gotta bring in that extra dough while it's hot off the press, right? They also don't care if their accounts are scattered around town. If you're chasing rates, you won't always find the best ones at your favorite bank all the time (even at ING or Emigrant Direct, two of the usual favorites). This alone knocks me out of the running - I need everything possible under one roof, my bff USAA ;)

Then there's the actual cash reserves that come into play. If you've got thousands of dollars saved up (or in credit card debt) where the slightest move in rates can be the difference of earning hundreds of dollars to THOUSANDS of dollars, then yeah by all means get on that $hit! I'd do the same thing. As it stands, however, most of my our money (still not used to being married) are invested in our 401ks and Roth IRAs, with the remainder in a decent money market account which we tap every month. Without a huge cash reserve, it makes no sense for us to bounce around and follow the place w/ the higher rates - and I'm guessing the same goes for most of you reading this as well.

As you can see, it certainly takes the right type of personality (and bankroll) to play with the rate chasers. Financially, it certainly has its perks. But the real question at stake is if chasing rates actually makes SENSE for you? If it does, great. If not, then do your best and watch from the sidelines ;) More often than not, it doesn't pay to play.

Doing What You Love Pays Dividends

2009-06-15T07:04:00.000-04:00

This is a guest post from my dear brother. Many of you expressed a great interest in his return after his earlier post - debt is like kissing your sister - so hopefully you'll find this one just as witty!

In fact, do any of you remember one of my earliest posts about how he borrowed money from me and actually paid me back months ahead of time? It's truly wonderful how his financial management skills have improved over the years - I'm so proud! *tear* So here it is, my bro's 2nd post: And just so you know, I didn't pay him to say such loving things about me ;)

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I am immensely proud of my brother. You know how Frank Stallone feels about Sylvester? How Casey Affleck feels about big bro Ben? Multiply that by a million, and that's how I feel about J. Money. If J was a sports star, I'd collect all of his cards, wear his jersey, attend his games with an obnoxious foam finger and have a kick-ass Fat Boy of him on my bedroom wall. Oh, yeah.

This abundance of pride stems from a couple of things. Aside from the fact that he's the only male left in the family with a full head of hair, J's found a real niche with this budget blog. He's building a community and planting a flag in the soil of cyberspace. What's more, he's tending to this project the same way an illegal alien tends to a rose garden - with precision, affection and ignorance of random pricks. J has found what fuels his passion, and he's pouring his heart into it. And you know what? It's paying dividends in the form of jolly readers, innovative ideas and a forum of financially savvy folk ... which brings me to my point.

When you invest your time, energy and resources into something you truly love, it no longer becomes work. It becomes a love affair with possibility fueled by endless opportunities. Don't we all want to find something we love doing and have it push us toward greatness? Sure, we work to make money, and money is important (after all, what else is going to fuel that Slurpee addiction of yours?). All I'm saying is it's important to not lose sight of what should really drive us, and that's happiness. And if you can get by doing something you love, you're all the better for it.

A long time ago, I read a quote about money that really stuck with me. It said something along these lines: Don't worry about money because you'll get it when you least expect it, and you'll lose it when you least expect it. I couldn't agree more with that statement. Worrying about money is like a rocking chair; it'll keep you busy, but it won't take you anywhere. The entire purpose of life is to be happy, right? To fill your daily grind with gumdrops and puppy dogs? So do it. Today. Because when you do something you love, you'll find it provides you with the means to live a full, fun and profitable life.

I'll leave you with this really cool approach to life I learned awhile back: We all have 24 hours in a day. Typically, we spend eight hours sleeping, eight hours working and eight hours _____. What do YOU do with those final eight hours? Think about it. I hope your answer puts a smile on that baby face of yours!

Winners of The 3 Amazon Gift Cards! $50, $30, $20

2009-06-13T12:02:00.001-04:00

Thanks to all 122 of you that stopped by! What a success, you guys are awesome. Unfortunately, only 3 of you were awesome'er than the rest ;) Here are the winners:

$50 Amazon Card: Mindolla
$30 Amazon Card: frugalCPA
$20 Amazon Card: Diann @ The Thrifty Groove

Shoot me an email to claim your prizes! And be sure to subscribe to my blog for all future giveaways too (as well as some financial goodness) I'll catch y'all on Monday, if I don't see ya on Twitter ;)

Pick Up Lines & Money Go Hand in Hand...

2009-06-12T09:22:00.001-04:00

Don't ask me how I came across some of these, but I did. And lucky for you I will now share them ;) I'm sure you have better stuff to do w/ your time right now, but seriously - can you really help yourself? It's Friday! So sit back, grab some coffee, and enjoy a little off-colored financial humor.

5 Pick Up Lines Associated With Money:

"Can I buy you a drink or do you just want the money?" Classic, and to the point. I'm not sure how well this actually goes over in real life, but I'd be interested in finding out.
"I hope I haven't given you the wrong impression. I'm actually taller and richer than I look." Now this one I can see garnering a few laughs :) Not at the beginning of chatting up a girl or anything, but like slipped in there casually. At the very least you wouldn't get the *eye-roll*!
"I have a small penis, but a big bank account." I've never heard of this one before, and I kinda wish I never did to be honest...whenever a guy mentions anything to do with a penis in order to win a girl over has already crashed & burned.
"Did I tell you I'm filthy rich and my mother's dead?" Horrible! (and skeevy).
Now, I actually couldn't find a good #5, but when I googled (not binged!) I found some awesome ones by Dave Ramsey. So instead you shall get a few zingers that I find pretty clever:
"You're so hot you could melt my debt snowball."
"Call me your mutual fund, honey...'cause with you, I'm showing interest."
"When I saw you, my jaw dropped like the value of a new car."

Hah! It's hard not to laugh at these no matter how lame they are, but it sure proves money & pick up lines mix well together! Although I'd be more impressed if anyone actually pulled any of these off ;)

Personal Finance Round Up: Budgets, Buffett, & Bananas!

2009-06-12T08:45:00.000-04:00

Best of the web:
But before you read on, don't forget to enter my Amazon Giftcards giveaway! 3 winners will be selected to win a $50, $30, and $20 card. Now onto the goodies...

A Budget is your Financial Seatbelt - Brought to you be Clever Dude. Need I say more?
What type of Millionaire would you be? I think i'd fall into the "Deal Masters" category if I had to choose one. the "Living their dream, little inclination to stop working" and "62% would rather be stressed than have nothing to do" certainly apply to me :)
The Best of The Worst Home Buying Advice I've Received Over The Years - Wow.
Buffett on Charlie Munger: Work For Yourself An Hour Each Day - These bffs certainly know their $hit. Always interesting seeing how 2 power players interact and talk about each other.
What Do You Do With Your Over Ripe Bananas? You all know i looooove me some bananas! What you didn't know is that I always throw them out when they're all black and dirty looking. This article is aimed at people like me :)

Best of the carnivals:
I must say, I have never felt so much love in the carnival world since I've started! Thanks for all the editor's picks everyone, glad you could relate to my stories :)

Carnival of Personal Finance #208 - "Lobster Roll" by Money Under 30. *Editor's Pick!
Money Hacks Carnival #68 - "Stanley Cup Final" by Financial Highway. *Editor's Pick!
Carnival of Money Stories #5 - "Other People's Money" by Money Energy. *Editor's Pick!
Carnival of Pecuniaries #11 - hosted by My Journey to Millions. *Editor's Pick!
Carnival of 20 Something Finances - "Lists" ed. hosted by How I Save Money.

Do you need a "story" to be respected as a Blogger?

2009-06-11T07:18:00.003-04:00

In particular, a Personal Finance Blogger? I recently came across an interesting headline: "Asher Roth went to rap because of what he listened to, not what he lived. Does it matter if he's good? Can he be good? Does he have flow?" That really got me thinking...

For anyone not familiar with Asher, he's the star behind the hit song I Love College. He's white and he raps, kind of like Eminem. The difference being, Em & others grew up on the streets and Ash takes notes from those who grew up on the streets.

What occurred to me though, was that I just may be the Asher of pf blogging ;) Not in that I've made it big or anything, or because I wish I could rap (which I do), but more in that I don't have a main story to back me up. I haven't worked my way out of $XXXXXX.XX debt, nor have I filed for bankruptcy or struck it rich being a .com mogul. In other words, I don't rap (write) from my experiences on the street (in debt).

I do, however, have plenty of experience in saving money and budgeting as you can see from any of my net worth updates. That doesn't mean I'm a pro or a financial guru, but I feel like it should give me some street cred out there. At the very least it helps me to convey my messages with a little more conviction.

Would I be a better blogger, though, if I DID come from a financially crazier background? Yeah, probably - as long as I've overcome it all. I'd certainly have more interesting stories to share :) I'd like to think that it doesn't hinder me any more than it does Asher, though. He raps about what he's passionate about (women and beer apparently), and I do the same. Only difference being that one's a little more exciting than the other, and brings in a few more Benjamins.

So I say no - you don't need a story to be respected as a pf blogger. You could use it to your advantage if you did, like Dawn @ fighting foreclosure, but it shouldn't drag you down any. If you love what you do, it'll definitely shine through.