My Money Chat

RAWlicious!

2010-06-04T14:25:00.000-04:00

OMG, I went to a raw restaurant last night and I'm going again tonight, not even 24 hours later. The food was face rocking and that's putting it lightly. Seriously I want to try everything on the menu, and I mean everything. Last night I feasted on a sage burger and a slice of pizza. Hey, I know it's a weird meal combination but I was hankering for something savory and exciting and I'd already had a hugh jass salad earlier that day. Oh yeah, I also had a strawberry mango pie for dessert. Yummo. At the request of a friend I took some pictures but I forgot to get a picture of the dessert, oops. In my opinion the pics do very little to illustrate the awesome flavors of the dishes, maybe its the photographer, but hopefully you get the idea. Without further adieu ....

This scrumptious pizza is made with flax seed bread, topped with spinach, tomato sauce, pine nut cheese, chopped tomatoes, black olives red bell pepper, and some kind of crumbles - the name escapes me at the moment. This baby was bursting with flavor!

This foodgasmic burger was served with organic greens, pine nut cheese (I think) and tomatoes between two slices of kamut grain bread. Oh wait, there was also some sort of house sauce on that baby as well. Heavenly!

Moral of the story, if you have never given raw cuisine a try don't be afraid to brave it because you just may enjoy it. Even when I'm no longer on the raw detox, I'll still visit that restaurant because the food was absolutely wonderful. In fact, I'm even more inspired to learn how to prepare more raw dishes.

As for the financial impact, uh yeah, raw eating is definitely not cheap eating. I think I've spent more thus far than I normally would on my regular diet. To be fair, raw eating requires a lot more preparation and if you don't prepare properly then you can and will spend more money than you should. It's the equivalent of going to the grocery store without a list.

Summer Tune-up

2010-06-01T13:52:00.000-04:00

Since things have been quite hectic around these parts it's high time for a summer tune-up. Today marks the beginning of my attempt to do a raw cleanse, diet that is. I'm super excited and super nervous at the same time. Thanks to the wonderful blogsophere, there are tons of resources to help me through the next 21 or 30 days. In my last post I promised changes to the blog, changes that would not only incorporate personal finances, but to include other things that I enjoy, such as eating.

Why cleanse?

I usually do a detox/cleanse at least 2x a year. There are certain busy times of the year when I don't have time to focus on my diet the way that I should. Luckily or unluckily, my body responds noticeably to what I put in it. If I load up on processed and junk foods, then I feel sluggish, heavy and just down right not at my best. When I load up on healthy foods, then quite the opposite happens. I'm more vibrant, energetic and alert.

Why raw?

Oh boy. In the past I would do a somewhat vegan cleanse ... except for a minimal amount of cheese. This time I wanted to up the ante and go gusto. Now, if I begin hankering uncontrollably for hot food, I may allow myself some steamed veggies and/or wild rice ... ONLY. Beyond that, no cooked foods ... that's the goal. There may be something that I choose to eat that's not completely raw, like a salad dressing for example, but at this point I will not panic over those types of intentional or unintentional slip-ups.

Since I do love to cook, I'm looking forward to making and possibly creating some new raw recipes. This is a new world to me so hopefully I won't get bored. I think I will have more success doing a raw food detox in the summer months (especially living in the south) versus trying this for the first time in the winter. Hopefully I'll have an arsenal of new recipes to add to my collection. With that, here is a picture of my very first raw recipe ... Raw Almond Macaroons:

The key ingredient in macaroons is coconut, of which I am NOT a big fan. But hey, part of this raw experience is trying new things right? Instead of putting the amount of shredded coconut that the recipe suggested, I used 1/2 the amount and substituted the remaining amount with oats. Bingo!

Here's my recipe in case your interested:

1.5 C of dried coconut
1.5 C of oats
1.5 C of almonds
1/2 C of maple syrup or agave (I used an organic maple syrup/agave blend from Trader Joes)
1/4 C of coconut oil (again I'm not a big fan of coconut so I substituted earth balance ... feel free to use your oil, butter of choice)
1/2 TBS of vanilla
1/4 TBS of almond extract
1/4 TSP of sea salt

Ground almonds in food processor. Mix all ingredients together in a bowl. Using an ice cream scooper or TBS measuring spoon, spoon onto dehydrator tray if you have one. I don't have one so I used parchment paper & a cookie sheet. I put the macaroons on the lowest setting of my oven and left the door slightly ajar. "Dehydrate" approximately 7 hours or so. Of course, if raw is not your goal, feel free to crank that sucker up and bake away. ;-)!

This is going to be a very interesting month! Wish me well ...

I'm Back ... Updates ... and Shout Outs

2010-05-02T17:27:00.003-04:00

I'm Back
.... from vacation that is! I had a glorious 7 days in St. Lucia. Although the first part of this year has blown by, I have felt every single nanosecond of each day. The first four months of this year were incredibly busy and a week in the Caribbean was just what the doctor ordered.

Updates
I'm currently working on some changes to this blog. Back in January I confessed my boredom with blogging and several of you gave me some great suggestions. I plan to update the blog and expand the content. Personal finance is a very fun topic for me but I don't want to talk about it all the time. My finances are on autopilot as I maneuver my way through growing a profitable small business. The last thing I want is to have a "preachy" blog about the do's and don'ts of personal finance, but that will be all too inevitable since I don't have much content that is or will be derived from my personal experiences and situation - at least for now. Without those personal stories, I'm just another blogger saying do this, don't do that, why did you do that, did you think about this. So with that being said, I'm not leaving personal finance as a topic, but I'll be adding a few more topics that are near and dear to my heart ... more to come.

Oh, and I did end up fixing the car. Crud. This is the last time I'll be able to do any major work on her ... the next episode will result in the purchase of another car. I was just too daggum busy to make the necessary time to research and purchase a car that suddenly.

Shout Outs
Thanks to all of my readers, I truly appreciate you. Special shout out to some of my favorite blogpals, Christine, Stinky, 444, Josie and Matt, please know that I'm reading your blogs, even when I don't have time to comment.

Until next time,

Refueling

2010-03-06T19:29:00.005-05:00

***Before I begin this post, I want you to know that there is no update on the car situation. Basically I'm in between bumming rides and renting cars. Obviously I have to do something soon, I just need a few more minutes to think about what I want and can do.

Back to the regularly scheduled program ...

Things have been incredibly busy with the business and I'm definitely grateful. Things are going so well that I'm beginning to feel overwhelmed and stressed. The pace that I'm going at now is unsustainable and I won't last long if something doesn't change. Thankfully someone is coming along to help me two days a week, and I have a really good friend who has offered her assistance as well. While this is going to be a great help for the work load, there's another part that's suffering too - me!

I have one of those bodies that responds well to proper eating. Food really is a fuel for me. When I load up on processed and manufactured "food," I can feel it and my body literally locks up. ***TMI ALERT - Feel free to stop here or skip to the next paragraph. Most nutritionist would tell you that you're supposed to eliminate after every meal, or at a minimum, once a day. Because I've been eating crap like ice cream for dinner, my elimination has been almost nonexistence. We're talking days, if not a full week. As if the lack of elimination wasn't concern enough, my energy level was at subzero. When I wasn't working, I was in the bed. I was beginning to feel like a zombie, moving in slow motion. So now I'm not eliminating and I'm extremely tired, but still not encouraged to evaluate the situation and make changes. It wasn't until I realized that my ability to think clearly and cognitively was severely compromised. It would take me 30 minutes to do something that should have taken 5 minutes. Forgetting basic, simple things was becoming the norm. I'd pick up the phone and completely forget who I intended to call. I'd hit "compose" on the e-mail and forget who I was about to email and for what reason. In the business that I'm in, those actions are UNacceptable! My mind is how I earn a living. It needs to function optimally at all times. So on yesterday, I had an intervention with me, myself and I and we unanimously decided that I needed to do something quick. Seriously, functioning at this level can be catastrophic to my business and if I'm going to fail, it's not going to be because I'm not eating properly and getting enough rest. How crazy is that?!

After the intervention I left work, came home, took a nap for several hours (I'm soo not a napper ... guess I needed it), and then headed to the farmer's market. I spent over $90 on fruits and veggies because I need to reintroduce myself to them. My intention is to significantly increase my intake of living foods and juice daily, like I used to. This morning's breakfast was an egg puff doused with a little kosher salt and hot sauce (two eggs cooked in the microwave for about 1.5 minutes... and btw, I looove hot sauce) along with the infamous apple/carrot/ginger juice:

Instead of grabbing an energy drink for an afternoon pick me up, I juiced one of the many almighty green juice elixirs. This baby had spinach, parsley, apples, ginger & lemon ... delish, you'd love it! Ginger and lemons are a staple in nearly all of the juices I make. I just love those added flavors, especially the ginger.

Results after day 1, significant. I feel better than I have in quite some time and my body is very thankful for nutrients it can actually use and process.

Not At All What I Wanted To Hear!

2010-02-19T15:35:00.000-05:00

It looks like the time has come for me to retire my beloved 12 year old Honda Accord! Timing is awful but there's not many choices left. My car started sputtering a few days ago so I took in for a diagnostic test. ****sighing deeply**** It's the daggum transmission - $3,292, catalytic converter - $900ish and something else that I can't recall - $200ish. When you add it all up, we're talking darn near $5,500. Oh my goodness, I have no idea what I'm going to do. This was sooo not in the plans for 2010. Okay, gotta regroup and figure this situation out because I DO NOT, and I repeat DO NOT want a car note EVER AGAIN IN LIFE!

Mind Your Business

2010-02-03T06:42:00.000-05:00

Since I became credit card debt free I only kept one card, which I pay off each month. I haven't carried a balance nor paid interest on this card in several years. There are stories all over the blogosphere and financial pundit sites that warn against the subliminal trickery of the banks to (1) circumvent the recently enacted credit card rules, (2) increase their revenue to offset the colossal amount of bad debt write-offs and other losses and/or (3) find innovative ways to increase their fee revenue ... which has become a major source of income for the banks during the heyday of credit abuse. Well, let this be a warning to you citibank, I shall not be a victim, scapegoat or random target for any foolishness.

It was my idea that I'd keep one credit card for travel and online purchases. Plans changed and I actually use the card for everyday purchases such as gas and eating out. Although my monthly bill is NOT very high, I often have MANY transactions ... many. Such was the case for last month's bill, which included the usual suspects as well as Christmas and holiday what-nots. Much to my surprise when I looked at all of the transactions prior to paying the bill, I noticed a $37.01 charge. Hmm? I looked closer and realized that it was a finance charge. What? So I looked over prior month's bill to see if I paid it after the due date, and therefore incurred a finance charge. Nope. The bill was paid 1 week prior to the due date. Next step ... call Citi immediately! I called, the rep agreed that the finance charge was an error and immediately corrected the account.

Thanks Citi, you get an A for customer service, but an F for effort. I'm sorry. Maybe I've bought into the financial conspiracy theory, the one that suggests big mega monster banks are sneaky, evil and prey on the unsuspected. Perhaps it was an honest mistake because after all, mistakes do happen. Mistake or not, I wonder how many of these "mistakes" go unnoticed by the customers. Hmm, yes, we all should exercise personal responsibility so I dare not lay all of the blame at the feet of the banks. This is just another example about why we must be vigilant about our personal financial affairs. As the saying goes, pun intended, mind your business!

***ps, thanks for all of the comments on my "bored" post. I'll stick around for now. I'm finding more inspiration now that I'm no longer forcing myself to always talk about finances. Oh, and my very first troll ... ha, thanks! I appreciate you too;-).

Bored!

2010-01-14T17:28:00.000-05:00

Ladies and gents, I'm suffering from a case of blog boredom. My life has changed quite a bit from when I started this blog and now I'm not sure which direction I should proceed. I don't have debt to payoff, my mortgage acceleration goal is on hold and there is no additional money going towards investments or other long term savings. Since branching out into entrepreneurship full time everything financial is on hold. I'm in maintenance mode right now.

So here's the scoop - I'll either take a break or blog about other random things that may or may not have much to do with finances. If any of you have questions that you'd like me to answer via the blog or topics you'd like me to discuss definitely let me know, I could use the inspiration.

Matching Careers With Personalities ... Or Not

2009-12-27T20:06:00.000-05:00

Why is it that I'm always an easy target for the countless career and personality tests floating around the universe? Truthfully I'm not convinced that they are reliable, but they always seem to be more accurate than not with my results. Case in point, MY RESULTS ...

Personality type: "Determined Realist"
Practical, traditional and organized. Likely to be athletic. Not interested in theory or abstraction unless they see the practical application. Have clear visions of the way things should be. Loyal and hard-working. Like to be in charge. Exceptionally capable in organizing and running activities. 'Good citizens' who value security and peaceful living.

Careers that could fit you include:
Military, business administrators, managers, police/detective work, judges, financial officers, teachers, sales representatives, government workers, insurance agents, underwriters, nursing administrators, trade and technical teachers.

If you are interested in taking a career/personality test, click here; it's quick and easy. Don't forget to let us know how accurate - or not - the test results are for you.

BTW .... Merry Christmas and Happy early New Year;-).

My Dear Romeo

2009-12-14T19:01:00.002-05:00

Romeo,

I miss you already buddy. You were the sweetest, smartest dog ever. Although I only knew you for a short time, you carved out an eternal impression in my heart. It's so amazing how you managed to steal my affection and cause some folks to refer to me as "delusional" because I'd go around calling you "my dog." (inside joke, i needed that laugh). You were my dog. You were everything I ever wanted in a dog. Your communication skills were grade A, your friendship was unconditional and your personality was almost human-like. I'm gonna miss sending you care packages filled with your favorite treats, peanut butter snacks, doggie biscuits, and of course, all things chicken. I really wished you would have hung on a few more days so that I could see you once more. Well, maybe it was best that I wasn't there when you decided to go to doggie heaven. Unashamedly I gotta tell you, I have a lump in throat that won't clear, and yes, I've shed a few tears too.

Bye bye my doggie brother. There's not another jack russell terrier, or any other dog that can replace you.

Small Business Pitfalls

2009-12-14T15:52:00.000-05:00

We've all heard the scary statistics about how many small businesses fail in their infancy. Part of what I do is provide consulting work for small businesses so I see first hand what some of the biggest culprits are.

1. Too Much Borrowed Money
I'm not sure if this will continue to be as big of an issue because the banks have all but put a freeze on small business lending. If you're one of those unlucky/lucky ones who can get a lot of leveraged funding, borrower beware! I highly suggest starting a business with your own money or with investors. If you do have to borrow money, try not to be more than 50% leveraged. You may not have an employer but if you are borrowed up to your hairline, you are working for the banks, and that's not what you got into business to do. Here's a statistic for you ... 100% of the businesses that filed for bankruptcy were over leveraged. I don't need a source for that one, it's pretty self explanatory.

2. Wrong Motives
If your primary motive for starting your own business is based one of these statements, "I want to be my own boss," or "I don't want to work for anyone else," then you may be one of those small business casualties. Owning your own business is as glamours as it is messy. If you lack passion and discipline you won't have the necessary ingredients to push past the pain and pursue the full potential of the business. You need something more than a disdain for working for someone else.

3. Lack of Planning
Planning is very important and covers everything from finances to marketing. For brevity, let's stick to the financial part of planning. Remember that employer who kindly withheld all of your taxes, and paid them on time to the federal and state governments? Well you kicked them to the curb so it's all on you. You can't just collect the income and forget to pay your real employer (i.e., the gov't) their cut. I've seen several small businesses get into this rut and for those who survived, they came out with very little skin left in tact. You do not, and I repeat, do not, want to get into a situation where you're behind on self-employment and employer taxes. You'd be left wondering if you owe the gov't or a loan shark. Can you say compounded interest DAILY!

4. No Marketing
So what if you have the best product or offer the most fabulous service, if no one knows you exist what good is that doing you? Marketing doesn't have to be very expensive. At a minimum you should have a website and some business cards. Depending on where you shop around, this could be a $200 or less initial investment. Perhaps I'm a website snob, but you'd be hard pressed to get me to do business with an establishment that does not have a website. That's the first thing I ask for when I call or if I'm speaking to someone about their business.

Overcoming Challenges

2009-12-09T15:13:00.001-05:00

A few weeks ago I shared 5 challenges with being a new entrepreneur (or solopreneur as it's sometimes called). Learning to overcome challenges head on is a skill set that I'm guessing most successful business owners possess. Here are some things that I've done, currently doing, or in the process of doing, to overcome the challenges I've identified thus far:

Challenge #1 - It's all you boo!

Yes, it's still all me but hopefully that will end soon. To help reduce costs, I share an office space with another business - that just so happens to offer a service that marries well with what I'm doing. The owner and I have discussed bringing in an administrative person to help both of us, which would be a great cost savings. Another option is to bring on independent contractors as the need arises. By using contractors, my expenses will be more directly aligned with revenues. Eventually it is my goal to have full time employees; I look forward to the day when I can help nurture other people's careers and goals.

Challenge #2 - Social Isolation!

This is probably the easiest challenge to overcome. For starters, don't isolate yourself from your friends (duh, right). I hung out with one of my buds last night and we had a blast. Yes I miss seeing her everyday, but not seeing her everyday made yesterday even more special and fun. Secondly, there is the local chamber of commerce, which I plan to join soon and hopefully build new relationships with other small business owners. Lastly, I get to play on facebook more now that I'm not behind the corporate firewalls. It's amazing how much social media helps us to stay connected with people.

Challenge #3 - Income!

We all know that word of mouth is often the best form of marketing. Super serving my clients is my #1 goal. The majority of my projects have come through referrals so I haven't had to market much. It is my plan to do more marketing in the very near future. Another aspect to protecting and managing my income is to invoice timely and appropriately. Depending on the scope of the project, I may request a retainer or progress billing if it's expected to go beyond 30 days.

Challenge #4 - Stagnation!

Again, this one is easy. I continue to subscribe to newsletters and other periodicals that keep me updated. I also attend conferences and business/professional development seminars. Lastly, I have joined 2 organizations specifically geared toward my service and business.

Challenge #5 - No PTO!

Who cares?! If I overcome challenges 1, 3 & 4, I can have as much or as little PTO as I like. I'm taking off 2 weeks for Christmas, and in case you haven't heard, I'm headed to St. Lucia in a few months;-).

To conclude, I think the benefits far outweigh the costs. I'm doing something that I love to do, I'm helping and serving everyday folks (not just corporate shareholders) and I'm learning so much on a daily basis. Entrepreneurship isn't for everyone, but it's definitely not as scary as some of us have convinced ourselves to believe. In my experience, the hardest part so far was making the decision.

Whoo Hoo!

2009-12-04T16:35:00.002-05:00

Whoo hoo, listen carefully ... can you hear that? It's the sound of waves crashing. Stand still ... do you feel that? It's the coolness of the tropical breeze. Mmm, mm ... can you taste that? It's the sweet taste of mimosas every morning. Oooh, look over there ... do you see that? It's the breathtaking view of pristine beaches and tropical rainforests. Where are you? You're on the beautiful island of St. Lucia. Uhm hmm, yeah baby (in my austin powers voice), someone is going on a vacation in less than 6 months!

Let's take a stroll down memory lane to January when I solicited vacation suggestions here. Finally, I am going to take an adult vacation. No 2 and 3 night quickies, a full 7 night stay in a villa on the beautiful island of St. Lucia! Yippee!!!

Wanna go? You're more than welcome. Hey, the more the merrier;-).

Retirement Planning

2009-12-03T16:53:00.000-05:00

Blogpal 444express had a few interesting posts on her personal stock transactions that got me to thinking. Personally I don't invest in individual stocks for several reasons, but the main reason is because I'm just too lazy to do so. Unlike 444express, I am not a very diligent person when it comes to watching and studying stocks and their movements daily, weekly, or heck, even annually. I'm a mutual fund kind of girl ... give me a little of everything in one swoop.

My laziness doesn't just stop with individual stocks, I don't even watch my mutual funds ... at all, if ever, well maybe annually when I'm calculating my net worth for the year. The only retirement account that I review quarterly is my ROTH, and that's because the contributions are mine at any time, without any penalty or taxes - so in essence, I kind of see my ROTH as a glorified savings account, that I can't touch unless the world has turned upside down. As for the 401K accounts that were rolled over into a traditional IRA, I don't take one measly look at them. Hmm, that doesn't sound too responsible, huh?

Quite frankly I'm not too concerned about how they perform. I have yet to get it into my head that my "retirement" should be based on the amount of money I saved through retirement vehicles invested in paper assets. I'm more concerned with paying off my mortgage and being completely debt free. I know medical costs can be a beast on one's retirement savings so that's one reason why I was making maximum contributions to my HSA account every year. With socialized medicine on the horizon, who knows what we will need to do to address medical care in those golden years. I'll continue to maximize my HSA and adjust as necessary.

As for retirement planning, here are my initiatives (in order of priority):

Continue building and growing current business
Continue to build HSA account (as long as it makes sense to do so)
Continue investing in ROTH IRA
Payoff mortgage (never have another one again)
Invest in other businesses (currently developing the framework)
Invest in real estate
Invest in paper assets (i.e., stocks and bonds)

Now that's diversification;-). How are you planning for "retirement?"

Product Review - OMG Goodness!!!

2009-12-02T12:27:00.002-05:00

My beloved Trader Joes has done it again. I splurged on a box of organic Chai Tea ($3.29 for 20 bags) and let me tell you - I'll do it again and again and again. The "recipe" suggested that you bring 8 ounces of water to a boil, steep the tea bag for 4 - 5 minutes and if you desire, add a splash of milk for richness. I chose to boil some almond milk instead of water and then steeped the tea bag for several minutes. OMG!!! It was so delicious. I added absolutely no sweetener at all (one could argue that this is not a true statement since I used the vanilla flavored almond milk:-).

If you like chai tea, I highly recommend giving this product a try. Although I kept it basic, there are many options to jazz up your cup of goodness. A friend has decided to add some Bailey's Irish Cream to their cup ... hmm ... I'll pass, it's wonderful as is to me. Simple and plain, that's how I'll drink this beauty. Now that I think about it this wasn't a splurge because I can enjoy a cup of chai tea for about 17 cents. That's much cheaper than the occasional Caribou Coffee or Starbucks splurge. SCORE!

If ... Then

2009-12-01T16:05:00.001-05:00

Today has been one of those days where I find myself having random thoughts, about nothing in particular. Here's a sneak peak of my randomness:

IF soap is supposed to be a cleaning agent, THEN why is the residue (i.e., soap scum) hard to clean?

IF the "red" onion is really purple, THEN why is it called a red onion?

IF Washington is so great at fiscal policy, THEN why can't they balance their books?

IF Christmas is December 25 every year, THEN why the mad rush in December as if it's a surprise ... and why the crazy charging as if it's an emergency?

IF I can get shrimp & fish from the coast of Savannah and the Gulf Coast, THEN why is it cheaper to purchase shrimp & fish that are shipped over from China, Thailand and Vietnam.

See random. Do you have any IF ... Then's that you'd like to share?

How Ridiculous

2009-11-30T13:11:00.000-05:00

I stopped eating beef over 10 years ago and never looked back. Every few months there's another food recall related to E. coli, salmonella, botulism, and whatever other food borne illness that's out there. Beef is not the only culprit, we've seen veggies such as spinach and other staples, such as peanut butter, take a hit as well. Perhaps it's just me, but I'm a tad bit concerned with the blatant lack of responsibility being displayed in the food industry and co-signed by the gov't. Okay, I may have stretched it with the botulism, but you get the point;-).

For example, here's an excerpt from consumer advocate Clark Howard's syndicated radio show related to a recent beef recall:

Nov 17, 2009 -- Ground beef recall results after plant stopped E. coli testing
More than 500,000 pounds of ground beef was recalled late last month after two people died and estimated 500 were sickened by an E. coli outbreak, according to The New York Times.

The tainted beef came from a meat-packer in Ashville, N.Y. that reportedly stopped testing for E. coli two years ago at the request of beef suppliers (are you kidding me?!). Surprisingly, E. coli testing is not required by the Department of Agriculture. It's only recommended sans any legal enforcements for not doing it (okay, so we're just relying on self policing in an industry that can give a rats boom boom about anything other than profit?! Yeah, that's great and comforting to know. ***side note, this is just one example why relying on Gov't to "take care" of you is such an awful idea!)

The recall has prompted Trader Joe's to stop sourcing its meat from the affected plant (aah, my beloved Trader Joes. Way to go, take action!). The grocer also now wants its other suppliers to test all ground beef for the deadly bacteria.

Costco Wholesale is the only large national retailer that mandates E. Coli testing. Perhaps Costco can do so because it uses its own grinding facilities. (How sad. Great for Costco, sad that no one else gives a hoot.)

Too often it seems like the Department of Agriculture feels its responsibility is to protect processing plants and beef suppliers, not the American consumer. (yep, and amen.)

Clark is an unabashed free-marketer, but he knows that there needs to be some referees in place for capitalism to work optimally. The marketplace suffers when there's no cop on the beat. Consumers need to feel confident that the feds are on the case to make sure their food is safe.

***It's my plan to venture into a little square foot gardening this spring. We'll see if my plans come to fruition. Oh, and one last thing, if you haven't done so, you should check out the movie Food, Inc. I thought it was pretty well done.

5 Challenges of the Great Exodus

2009-11-18T15:50:00.005-05:00

This is a follow-up to my previous post where I discussed 5 benefits to the great exodus. As I mentioned before, I'm sure that I'll continue to discover more benefits as time goes on, but those were just a few that I immediately identified. On the other hand, I have also identified 5 "challenges" to the great exodus. I put "challenges" in quotes because I've already begun to put things in place to overcome them. Yay me! So here goes:

It's all you boo! Yep, you're everything. You're the service provider, the marketing exec, the bookkeeper, the administrative assistant, the janitor, the mail clerk, the billing department ... and in the event a customer's check doesn't clear ... the collection agency. Until you're able to outsource some of those functions, running your own business is NOT just about doing that one thing you want to do - you actually have to run the operations of the business as well.
Social Isolation! Remember that cubicle environment I mentioned in the previous post? It has come to my attention that even with all of the ickiness that comes along with cubicle land, there is one major benefit - camaraderie amongst like-minded folks. I was always fortunate to have wonderful co-workers whom I enjoyed greatly. Now it's just me and my PC and sporadic e-mails to former co-workers saying things like "I miss y'all." LOL. If you don't care much for the folks you work with, this wouldn't be on your list of challenges to overcome.
Income! As my blog pal Christine mentioned in the comments section of the 5 benefits, income is a double edge sword. Yes the salary limitations are lifted but, so are the "guaranteed" paychecks. Being an entrepreneur definitely demands you to dig into your inner Type A personality and pull out that tenacity and fortitude required to go out, kill something and bring home the bacon - and maintain your integrity and character.
Stagnation! If you're in a field that continues to evolve and requires you to stay on top of new rules, regs, technology, etc, you can possibly become stagnant in your technical knowledge. Why? Well because this type of education is generally acquired through on the job training or outside courses - yeah the ones your employer used to pay for. Keeping abreast on the developments of your field is another overhead cost that you have to carry. Many people skimp on this part but I don't think that's a very good idea.
No PTO! Remember that pitiful 2 weeks of vacation that you often complain about? Heck, who am I kidding, my last gig gave me 4 weeks of vacation so yeah 2 weeks would be pitiful to me too;-). As an entrepreneur there is no PTO (paid time off). In my case specifically, my income is earned by services that I provide. Basically I barter my time and knowledge in exchange for dollars and cents. No work, no pay ... little work, little pay, you get the picture.

Will more challenges introduce themselves? I'm sure of it. These are just the ones I've identified as a one month old entrepreneur;-).

Soon to come ... how I overcome or plan to overcome these current challenges.

Most Dangerous Cake Recipe in the World!

2009-11-14T12:42:00.005-05:00

This recipe was sent to me via e-mail. I haven't tried it yet but if anyone has or does before I do, please let me know;-).

5 MINUTE CHOCOLATE MUG CAKE

4 TBS flour

4 TBS sugar

2 TBS cocoa

1 egg

3 TBS milk

3 TBS oil

3 TBS chocolate chips (optional)

A small splash of vanilla extract

1 large coffee mug (microwave safe)

Add dry ingredients to mug, and mix well. Add the egg and mix thoroughly.

Pour in the milk and oil and mix well.

Add the chocolate chips (if using) and vanilla extract, and mix again.
Put your mug in the microwave and cook for 3 minutes at 1000 watts. The cake will rise over the top of the mug, but don't be alarmed!Allow to cool a little, and tip out onto a plate if desired. Eat!

And why is this the most dangerous cake recipe in the world? Because now you are only 5 minutes away from chocolate cake at any time of the day or night;-).

5 Benefits of the Great Exodus

2009-11-11T14:00:00.000-05:00

It's been almost a month since the great exodus and I've already discovered 5 great benefits. I'm sure I'll discover more in due time.

No more open cubicle environment - in this day of swine flu and other highly contagious illnesses, I'm so happy that I no longer sit in a cubicle environment where germs lurk ever so freely, looking for some innocent person to pounce on. Actually the germs in and of themselves are not to blame, it's those unsavory co-workers who refuse to cover their mouths when they cough, who lick their finger to separate papers and hand one off to you (oh gosh, I HATE that) or use the same piece of tissue to wipe/blow their nose all throughout the day.
No more potlucks - unfortunately I'm not one who enjoys potlucks in a large group setting. I apologize if I offend anyone, but holiday potlucks are not my cup of tea. Usually I'm the one at the potluck looking for the items that were purchased and not made. I became potluck shy when I first observed ADULTS who would use the restroom and not wash their hands afterwards. Question, if you don't wash your hands after you use the restroom, just when do you wash them? At first I thought it was just an isolated incident, but no, it happens far too frequently for my taste - no pun intended.
No more salary limitations - my income is completely up to me. I will now see a direct relationship between what I put in and what I get out. No more corporate limitations. No more forced "bell curve" for evaluations and raises, which brings me to the next benefit.
No more obscure evaluations - oh my goodness this must have been my Achilles heel at the end of my corporate career. My employer's annual evaluation process was just HR formality, no real career planning, no real comments that encouraged growth, just blah. In addition, there was a forced bell curve to ensure that the majority of the employees were scored a 3, or average --- so you could bust your butt but that didn't matter because excelling had become the new average. So much for the motivation factor.
No more unnecessary meetings - we would have so many meetings on a daily basis that I often wondered when I would get any work done. We'd have a meeting to discuss the need for an agenda for an upcoming meeting, then we'd meet to go over the agenda and see if there were any changes needed; if there changes then we'd have to meet again to make sure everyone was okay with the changes, then we'd have said meeting, and of course we would have to meet afterwards to go over what we discussed in the meeting. After all of that, we'd have another meeting to get the next manager up the chain caught up, and then if he/she had any additional questions, we're back to meeting number 1 and going through the process all over again! I'm not kidding. I have some readers who are still in that environment and they can attest that I'm telling the truth. In fact, I might have left out a few meetings in the process.

So, is everything rosy on this side of the fence? Of course not. There are thorns in every rose bush. I'll write another post listing the "cons" of the great exodus in the near future.

798 ... So What

2009-11-04T08:37:00.000-05:00

Earlier this week I went to the credit union to transfer my Health Savings Account from the soon to be fee based account at a big brick and mortar bank - remember, my previous employer covered the fees as an employee benefit, but now that I'm no longer an employee, the benefit goes away.

Side note: can I tell you how beautiful the credit union was on the inside? Wow, either this one is special or I've just been missing out since I never seemed to qualify for any memberships. There were specialty coffees, bottled water, baked goods, friendly employees, comfortable seating, gorgeous decor, you name it ... just completely different than what I'm used to. What does any of this have to do with 798? Glad you asked.

As I was sitting with the rep waiting on her to process my paperwork, she said "wow, you have a credit score of 798." Perhaps I was supposed to be happy or proud of myself, but I was actually pretty stoic. I wasn't sure what kind of response she expected, if any at all. I've vented before about my frustration with our obsession over the fico score. It's my goal to never borrow money again, so if I'm not going to borrow money, mister fico becomes less of a factor in my life. To some I might trend on a little financial irresponsibility because I don't check the score. Well, to that I say this, I pay all of my bills on time and I check my credit report at least once a year (primarily to watch out for identity theft). My home purchase in 2003 was the last time I borrowed money. Prior to the rep telling me what my score was, I had no idea. And now that I know it, so what;-).

You know what's crazy? There was a time in the very recent past that my 798 score would have given me access to all kinds of debt, even though my income right now is zero! How does that happen ... easy, the fico score only measures how you handle debt, it's not an indication that you can really afford what you're trying to buy. I could have gotten a mortgage easily, with zero income. Why? Because my fico score would've had lenders and underwriters drooling over me, anxious to throw money at me. Oh, and don't let me get started on the pre-approved credit card offers. I accumulated a month's worth of pre-approved credit offers once and they grossly totalled a quarter of a million dollars worth of credit opportunities.

Not to worry, I won't always have this problem because one day I won't have any debt, including my mortgage, and then mister fico will turn on me and my score will begin to drop? You see, if I don't have any debt to service, mister fico doesn't have anything to measure ... and well, if mister fico doesn't have anything to measure, nothing divided by nothing is zero.

In my opinion, credit scoring has its place, but it shouldn't be the end all, be all. Any system that penalizes me for not borrowing money is a system that I bow out of graciously and happily.

Bull Anyone?

2009-11-01T11:10:00.002-05:00

Well, well, well, we knew it, didn't we? We knew that the banks would pull some magic out of their hats before the credit card reform laws take effect. A few provisions went into effect in August, but the lion share of the provisions are not scheduled to start until February 2010 (I'm hearing that Congress is working on a bill to move the effective date up to December 1, 2009 but I'm not sure if or when that will pass). Mind you, this credit card reform act was signed into law in May 2009 - why the long wait before it's enacted, beats me ... perhaps I need to brush up on my legislative knowledge. Anywho, a few of the new laws are:

Raising Rates: Banks have to give 45 day notice before raising a consumer's rate (unless you're on a variable rate card which most of the banks have begun switching customers to)
Penalty Fees: Banks can't charge over-limit fees unless the consumer has asked for this additional credit.
Youth Marketing: Banks can't extend credit cards to people under 21 without verifying their ability to pay (i.e., proof of income) or obtaining parental permission.
Unfair Billing: The practices of universal default and double-cycle billing are no longer allowed.
Disclosures: Banks must clearly disclose how long it will take to pay off the balance if only the minimum payment is made.

Because the banks have long since made a boat load of money off of their fees, they have gone back to the drawing board to find new ways to assess fees on their beloved or hated customers. For example, BOA is "experimenting" with charging customers an annual fee of $29 - $99. Other banks such as JP Morgan and Citigroup are implementing similar practices. There are even talks that we may see additional fees on other traditional banking products like checking accounts.

Are these not the same banks that taxpayers bailed out less than a year ago? This is absolutely ridiculous. You have our tax dollars, we saved your tushes, and this is how you thank us? I only have one credit card that I use solely for online purchases and travel. If my card issuer (Citi) comes to me with an unsavory offer of bull crap, aka, an annual fee, I'll glady return the favor by asking them to close my account ... immediately ... with the quickness ... like do it right now! I don't care how many rewards and incentives a credit card offers, I am not going to pay annual fees to use their card, period.

If I Could, I Would

2009-10-27T16:51:00.000-04:00

If I could, I would make personal finance a mandatory competency in our educational system. It doesn't matter who or where you are in life, everyone participates in the economics of this society. For goodness sake, I have a business degree and still came out of school not knowing diddly squat about how to manage my own finances. If I didn't get it in a business program, where is it being taught? I'm not crapping on my school because I think the problem is universal. And yes, it would also be nice if some of this was taught at home as well.

How often do we hear, "if I knew then what I know now ...?" For me the ellipses would say, "I would not have spent my entire 20's getting in and out of debt." Certainly I'm not alone in that. Why can't personal finance, which is a fundamental life skill in my opinion, be as important as the other primary subjects such as math and science?

Furthermore, I'd love it if those who were in government offices that influence fiscal policies and/or spend taxpayers dollars were required to have some sort of higher level of personal finance training. No where else in this county can you legally write a blank check other than Washington, D.C and other state capitals. Each year my local newspaper publishes an article that lists all of the elected officials who are delinquent with their taxes. What in the ham sandwich are they doing in elected office, governing fiscal policy for a state, and they can't govern their personal finances? Maybe, just maybe we wouldn't have so much waste in government if financial education was a requirement. Maybe we wouldn't have social services that have run amuck if everyone (with the mental capacity to do so) had some sort of basic financial understanding. Maybe the real estate crash could have been avoided or at least tamed. I can go on and on but I think you get the picture. Do I think financial education is a panacea - no, it's just a good place to start.

Home Value Down ... Property Taxes Up

2009-10-26T16:28:00.000-04:00

Earlier this year I was all gitty because my county sent a letter telling me that the taxed value of my home had changed, it had decreased by a few thousand dollars. I purchased my home about 6 years ago in a somewhat mature neighborhood so we didn't see the cost run-ups that occurred in the last decade. Nonetheless we, like everyone else, felt some level of impact by the real estate burst so the letter wasn't totally unexpected. However, the letter the followed a few months later was a gitty thief.

Imagine my surprise when I received the property tax bill and it was a couple of hundred bucks more than it was last year. What? That's not how the relationship works. When values go down so do the associated taxes, and vice versa. What's up with this inverse relationship between home values and property taxes? Hmph. Luckily my friendships are such that we can talk about personal finances. I was one day away from harassing my county tax commissioner when my dear friends reminded me that our beloved state is NOT providing the homestead credit this year because, eh hem, they're in a fiscal fiasco. Oh, yeah, I forgot about that, rats.

Because my property taxes are escrowed my mortgage is sure to increase by roughly $20 each month to accommodate for next year's taxes (the mortgage company use last year's figures to determine the monthly amount for the upcoming year). Additionally, I'll have to come up with the shortfall by February since this is when the mortgage company reassesses my escrow account. I'm anticipating that letter so I'll begin planning for the extra expense. What have we learned here today ladies and gents ... the government giveths, and the government takeths away.

Going Chartreuse

2009-10-23T12:00:00.005-04:00

It's been a minute since I developed an interest in being more environmentally conscious. Going green can be such a huge lifestyle change so I thought it would be best for me to tackle it in very small baby steps. My first steps taken were purchasing reusable grocery bags and replacing blown light bulbs with those CFC energy efficient light bulbs. Okay, those steps are operating effortlessly now so I think it's time to make another move. So, what's next on project going light green, chartreuse if you will ... a couple of cleaning supplies.

1. All Purpose Cleaner. The Healthy Hostess has several simple, green clean recipes that I will try eventually. The first on deck is her all purpose cleaner recipe below. You can check out other great recipes for oven and toilet bowl cleaners by clicking on her link.

2 cups of white distilled vinegar
2 cups of water
optional - drops of essential oil (your choice)

2. Laundry Detergent. Now I must admit, I'm a little shy about this one because I've bought into the spiel that I must purchase one of the top brands to get the best results. Nonetheless, I'm going to try it since trusted bloggers such as The Lost Goat and Jabs at Debt Free Adventure have all tried it with great success. There are also a host of great tips and recipes here, at Tipnut. I plan to make a powder version with this simple recipe found on both Jab's and Tipnut's sites.

1 cup or 1 bar of shaved soap (Ivory, Zote or Fels Naptha)
1/2 cup of borax
1/2 cup of washing soda

Basically it's a 2 to 1 ratio from what I can tell; 2 parts shaved soap to 1 part borax and 1 part washing soda. Jab did a great job with his pictorial tutorial and he does an excellent job with the cost breakdown as well - I'm not as much concerned about the cost but it's great info.

Who knew I would be so excited about making my own laundry detergent. Geez louise, what's happening to me? Hmm, I'm not sure but I like it so off to the store I go. Have a great weekend everyone!

***FYI ... I'm not sure why the hyperlinks don't show up with a line under them if you receive these posts via email. For those who receive e-mails of the posts I believe the hyperlinks show up as blue colored words, such as The Healthy Hostess and Tipnut. Just in case it's not blue for all e-mail readers, you can tell if a word is a hyperlink or not because it would be the same color as the post's title. For those who read via the blog, the same is true except the color isn't blue - it's the same reddish-orangish color used for the title and signature. Are we all clear as mud now? Thanks loyal reader who brought this to my attention;-).

The Playbook - HSA

2009-10-22T12:39:00.000-04:00

I'm excited to report that I have found a financial institution where I can transfer my Health Savings Account. Initially I was going with Bancorp because they seemed to offer what I was looking for - easy maintenance and fee free - with a $2,500 balance. I didn't like the balance requirement but it was the best offer that I could find. I've been building my HSA for a few years so I have the required minimum balance, but still, I don't like contingencies with my bank accounts. If I leave my HSA with the current bank I will incur a $3 per month fee since I'm no longer at the corp gig. My ex-employer picks up the monthly fee on their employees' behalf.

Luckily for me I never stopped perusing and looking around. One day I happened to look at the website of a credit union that's very close to my house. To my surprise I saw that they offered HSAs but I couldn't find the fee schedule. I called the credit union to inquire about the associated fees and the rep said, "we don't have any." LOL. I love it. Awesome. No minimums, no fees, no shenanigans. She then asked if I was a member and I said no, what are the qualifications? Her first question was "where do you live?" After I responded she said, "okay, you're qualified. You just need to open a savings account with at least $5." How funny. Okay, keep in mind that this credit union has been around for many years and its membership was reserved for employees of a specific family of companies, now the rules are more relaxed and membership is available to those who otherwise wouldn't have been able to join.

Loosening the membership belt is a great business move for the credit unions in this ailing economy. After all, it's the financial institutions that are buckling at the knees the most. Who knew that the infamous USAA would ever open their membership to who-so-ever will? You don't have access to all of the products but hey, they were as closed as a secret society fraternity at one point. Okay, a bit of an exaggeration, but they, like all credit unions, were reserved only for a specific group of people - thanks to the recession (or just a weird coincidence), things are changing. Yippee for those of us who never found themselves in the right circle to be a member of the credit unions ... with all of their lower rates on loans and higher rates on savings and fee-less banking. Gotta love it.

Should I Dip Into the E-fund?

2009-10-20T08:00:00.002-04:00

I'll try to keep this short since I'm so pee-d off and highly irritated. I took a bunch of clothes to the dry cleaners in preparation for the changing season and guess what ... they lost them! This wasn't just any bunch, this was my good bunch. You know the kind, your power suits, perfectly fitting slacks, that classic white blouse that your hardly wear because it has to be dry cleaned and you can't wear it more than once, comfortable fitting sweaters, so on and so forth. What timing! No steady income at this point, season changing, and now I need to go shopping and buy more clothes.

Supposedly there was a break-in and seven orders were taken, mine included. There was no glass broken, why, because according to the worker or owner that I spoke with, their sliding door is easy to break into. What? Are you kidding me? Why was that not fixed? So I asked about the alarm? What luck these thieves have because apparently it happened on the night when we had a lot of rain and the electricity was out. Really. Uh huh. This is sounding more and more like an inside job to me. So, they have an official police report and their insurance company is coming out this week to go over estimates. What estimates? I bet it won't even meet their deductible because THEY didn't suffer any losses, only 7 customers! Oooooh I'm so pissed. Okay, I have to stop now because I'm getting too worked up over something that is completely out of my control.

I shared all of this to ask one question ... is this a valid reason to dip into the E-fund? This will be the first time I've had to do so. I don't mind using the E-fund because that's what it's there for, but to have to use it because the dry cleaners stole my clothes, Urrrrghh!!!!!!

***I'm told their policy when they "lose" your clothes is typically 10x what you would have paid them to clean it. It just so happens that this dry cleaners was running a 10 pieces for $19.99 special. I've been w/them for years so I had no reason to suspect anything. Based on their sale price, for every 10 pieces they would normally reimburse someone $199.90. Oh heck no, one of my suits cost $150 alone, and that was on sale! He told me that he's not sure what they're going to due since this was a break-in ... hence why they're meeting w/the insurance folks this week. Yeah, yeah, yeah.

The Great Exodus

2009-10-15T06:10:00.002-04:00

Yes I've been ghost, but with good cause.... I did it, I left the corporate gig! I'll have to catch everyone up but in the meantime I just wanted to let you know what's been going on for the past few weeks. (here are a few oldies if you're not sure what I'm talking about - 1, 2 and 3)

Initially I was hoping for a 12/31/09 or 1/31/2010 exit date but I couldn't take it any longer. Exhaustion was setting in and my productivity level was sliding fast. No longer could I pull double duty, mentally or physically and it wasn't fair to me or to my employer.

Did I accomplish my savings goal - no, but you know what ... I realized that it will never "look" like enough money. After all, the worst thing that could happen is I will have to rejoin the workforce as an employee again. I know, I know, we're in a recession, jobs are scarce, blasey blasey blah - hey, what can I say, I'm willing to see where this road takes me. If not now, when? Here's a quote that I recently wrote and have since meditated on daily:

Fear is the greatest disability and comfort runs a close second. What's stopping you from pursing your passion, living your dreams and proactively designing your future?

***on another note, the running isn't coming along too good. Let's see if I can do it by the end of the year. The odds are against me, but hey, I'm willing to keep up the embarrassment for a little while longer.

Playbook Update - Insurance

2009-09-17T12:05:00.001-04:00

Remember the playbook? I'm so happy to say that although I'm falling behind on the summer goal (which is quickly becoming a joke), I am making progress on the playbook. After much, and I do mean much, research I finally applied for a health insurance policy. Gosh, after all of the debate over health insurance and all of the horror stories, I was a little intimidated and careful to answer each and every question asked. The last thing I want is to have a claim denied or my insurance policy rescinded because I neglected to answer something incorrectly.

Medical - On yesterday I received confirmation that my application had been approved with no adjustments. That means that the underwriters didn't find anything to exclude or anything that would cause the rate to be more than what was quoted. Yippee!! I will be able to continue with my beloved high deductible health plan but now I have to shop around for another health savings account (HSA) at a financial institution. Currently I do not pay any fees for my HSA because my employer covers them. Now I'm on the hunt for an account that won't charge me fees. There's something about me paying you to hold my money that just doesn't sit well with me, not at all!

As far as the cost, I budgeted $250 for my monthly insurance expense ... and that was to cover both health premiums and HSA contributions. The plan I have is $91.18 per month so that means I'll contribute $158.82 per month to my HSA (the IRS limit is either $2,900 or $3,000 for single payers). Oh yeah, prior to completing the app, I checked with my medical providers to see if they accepted the insurance that I was applying for, yep they all do!

Dental - I'm going to pass for now and just pay for the cleanings out of the HSA. The cost benefit for dental insurance isn't worth it to me. I'd pay about $40 per month with a $50 deductible, only to get $1,000 of coverage. So $40 a month equals $480 a year - plus the $50 deductible is $530. So you're telling me that I have to put in $530 to get $1,000, no thank you. Since my dentist charges about $100 for cleanings, I'll just pay it on my own. The way I see it, I come out ahead. Now let's just hope that I don't have any major dental work needed. If I do, I'll get some insurance at that time and wait out the exclusion period. LOL.

I'm getting closer to the great exodus!

The $36 Sandwich and Fruit Plate

2009-09-09T07:49:00.002-04:00

Yesterday I was craving a sandwich (panini to be exact) and some fresh fruit so I proceeded to take me and my cravings to Publix to get all the fixings for my make-shift panini. Nearly $36 dollars later I had almost everything (the avocados didn't look too good so I ventured to Kroger where they were $1 each). I'm wondering if I would have been better off just buying the sandwich and some fruit from the deli or even another sandwich shop such as Quiznos.

***10 minutes later***

Apparently there is some kind of internal problem that's preventing me from uploading the receipt. I'll post the link at the end if you're interested in viewing.

So, did this unplanned $36 trip to the grocery store bust the budget? I mean after all, it's not secret that I constantly struggle to stay on budget at the grocery store. Luckily I did not go over budget this time - reason being, I haven't been cooking so I haven't spent much of the grocery shopping allowance. Ha! By default I'm still ahead. Hey, I'll take a win however I can;-). Whooty Hoo!!

P.S. As promised, click here to view the grocery list.

Summer Goal Update 2

2009-08-31T08:43:00.002-04:00

If at first you don't succeed, try again, and again, and once more. Yep, that's what I'm going to do. I set a goal to run 100 miles by the end of August. It can be argued that I failed miserably. Seriously, from the looks of it I wonder if I even tried?! Oh well, I'm lacing up the running shoes and striving to accomplish the goal again through the end of September. Even though I didn't come close to my goal, I did better than the sidebar reflects. Somewhere along the way I stopped updating my tracking sheet, thinking to myself "I'll remember how many miles I ran and update it later." Yeah, NOT! So here I go once again, 75 miles to run by September 30th. Can I do it, yes; will I do it, hmm, we'll see. Here is the infamous crossroad that often eludes many, the intersection of desire and discipline. We often have desires for a preferred end but lack the discipline or stamina to see it through. The way I see it, desire is the vehicle and discipline is the gasoline, you can only run on fumes for so long. Someone once told me to never let my car get below 1/4 of a tank of gas because garbage can get into your fuel line which will eventually cause your car to run badly. The same is true with our goals, when we become less and less disciplined, "garbage" begins to fill the gap and before you know it, we're off course and heading towards a different destination - the repair shop to get retooled and refocused, if possible. Now that I'm refocused, let's see if I can keep the tank at or close to full.

How Did That Happen?

2009-08-19T16:45:00.003-04:00

Yikes ... how did that happen? Wow, remember when I said I would let my hair down a bit and take a break from frugality (here)? Well, now I remember why I budget in the first place. You see, I didn't just take a break, I broke the budget! Yes ma'am, yes sir, I just lost my ever loving mind. In the words of Sophia from The Golden Girls, picture this ...

Georgia, summer 2009, warm weather, extended daylight hours, cheap flights, new restaurants, the euphoric feeling of life that summer brings, yes, all the makings for a good excuse to loosen the budget just a tad. A tad indeed is what I hoped for, but as it's been said, give someone an inch and they'll take a mile. According to citibank, I have a balance of $711.99 on my credit card! What, huh, just for the month of July?! Funny how those little $20 and $30 transactions added up to a number much bigger than I imagined. Please believe me, $712 is way outside of my comfort zone for frivolous, unaccounted for spending.

Since the majority of the transactions were less than $30, I'm not going to spend too much time trying to add up each and every purchase. There is one culprit that I think requires me to be in the financial hall of shame for July. You'd have to really know me to understand the gravity of what I'm about to say ... I spent $201.60 on freaggin costume jewelry last month! Yes, $201.60. Now, I'm not even a jewelry kind of girl, definitely not costume jewelry. You know what happens, a friend invites you to their "party" and if you're like me, you want to show your support so you buy something (my friend is not the type to pressure you, she actually hates that I feel this way). Because you want a good deal, you offer to host a "party" as well, giving in to the gluttony of getting something for free or darn near free. Then you have a party and of course, you can't have a party and not purchase more stuff because you're getting all of these great deals, right?! Granted, I have some fabulous pieces that I absolutely love, and honestly, I'm happy that I have them. It's a good thing for Lia Sophia that I was on a frugal hiatus or I wouldn't have purchased any of it. I have them, I love them, it was a weak moment, I'm over it. Oh yeah, in case you're interested, you really can't beat their return policy and yes, I am very happy with my selections - 9 necklaces and 4 pairs of earrings.

The remaining balance consists of an airline ticket for $139.40 and a bunch of this and a little of that. Wow, so how did that happen, yeah, I think we all know.
P.S., I primarily use my credit card for online purchases, travel and recurring monthly expenses such as the gym and netflix. It's paid off every month.

Reality Check

2009-08-17T20:57:00.003-04:00

Intentions are great but I can't seem to convert them into executable actions as it relates to this blog. Honestly, a day doesn't go by without me thinking about typing a post. Most of you are fully aware that I'm working on a career transition. It's been bitter sweet because things have picked up at the new career (the sweet) but they've also picked up significantly at the existing career (the bitter). So, my reality check is this, regardless how much I desire to blog consistently, that may not be a reality for the next few weeks or months, while I'm juggling two careers.

Remember the proposal that I submitted? It's in the final stages but guess what, I submitted another proposal to a new potential client last week and now I'm waiting on the verdict. If this proposal is accepted it would yield 50 - 95% more than the first proposal. Go me!!

Since I hope to transition soon one thing that I need to do immediately is apply for health insurance. This site has been helpful in providing options and quotes. If I'm not successful going at it alone, I'll try an insurance broker. My first preference is to go with a high deductible health plan so that I can continue with my health savings account. I soo don't like HMOs so I'm definitely trying to stay with a PPO. Something about getting permission to see a specialist just doesn't do it for me.

Until next time,

New Snack In The Stash

2009-07-27T10:30:00.001-04:00

Do you remember the summer goal I started this month? Well anytime I finish a fun I feel like I'm close to starving. You should see me when I enter my house. I'm grabbing for anything that I can get my hands on, several things at once ... digging in the cereal box, unwrapping slices of cheese, reaching for this morning's left over turkey bacon, you name it. It's really a sight to see and I often end up eating crap that makes me feel like my run was sabotaged by the goulash of processed carbs and high fructose corn syrup that I devoured in 15 seconds flat. All of this brings me to my new love, Larabars.

A Larabar is my saving grace after a run. It's the "original" fruit and nut food bar and what you see is what you get! Check the ingredients list to the left (dates, almonds, pecans, ginger, cinnamon & cloves). That's it! I've tried several flavors and they are all delicious. Have you ever looked at the ingredients list on some of the other fruit or energy bars? Good golly miss molly ... the list is the length of my arm. Although a bit pricey, I'm pretty pleased. Around my way they are priced anywhere from $1.19 - $1.69 each. Regardless, I'm happy to include them in my go to stash for snacks.

The Rubber Meets The Road

2009-07-20T15:26:00.004-04:00

Sorry for the dark week but somebody has been really busy! Remember that proposal I mentioned a few weeks ago? Well it was accepted so I've been a little buried preparing for that and doing everything else that needs to get done - not to mention wrapping up a course that I must complete by 7/31.

Ideally I would like to stay at the corporate gig until 1/31/10 but that possibility is more bleak now than it was a few weeks ago. I'm not sure if this is a good or bad thing, I guess it just depends on whose lens you're looking through, but it is getting more and more difficult to balance the two. The demands at both places are increasing - the corp gig wants more of my time and the dream career is picking up steam as well - case in point, the accepted proposal mentioned earlier. Because of the pull in two directions, I'm barely making it and feeling like I'm not doing an excellent job in either area. I'm over worked, extremely tired and not getting much sleep. I know, cry me a river right. But hey, it's the truth.

The liberation fund is not quite where I want it to be, thanks in large to several financial interruptions that have blind-sided me. I take the good with the bad, that's life. The good - I have not touched (i.e. make any withdrawals) the liberation fund or the e-fund. The bad - I have not been able to stack my chips in the lib fund the way I want to. The savings momentum decreased significantly when the plumbing and car repairs decided to lay claims to my money.

So where does that leave me? Hmm. That's the million dollar question. I'm reassessing a few things, trying to determine a more realistic time for the great exodus. Assuming no more interruptions and short of money falling out of the sky, I probably won't have my lib fund stocked to a level that provides me the most comfort. However, I will not sacrifice the greater good for a few grand ... I'll take the leap first. After all, from where I sit, the worst that could happen is that I return to corporate.

Summer Goal - Update 1

2009-07-10T07:07:00.001-04:00

The summer goal ticker has been updated to show my progress through yesterday. I didn't make as much progress as I wanted to because my car was out of commission for several days and the weather has been hellish hot - meaning I couldn't go to the gym AND I was not about to run outside in all of that hotness. On the one hand I'm pleased with the results thus far but, on the other hand, 87 miles remaining seems like an awful lot for a chic who doesn't like to run much. As of today, I have exactly 7 weeks and three days left, let's see if I make it.

Another Fabulous Interruption

2009-07-09T15:48:00.003-04:00

I interrupt the regularly scheduled programming to bring you this message .....

WHAT IN THE (BEEP) IS GOING ON?! I'M SO (BEEP) FRUSTRATED WITH ALL OF THESE (BEEP BEEP) FINANCIAL INTERRUPTIONS. ONE (BEEP) THING AFTER ANOTHER. ******SCREAMING INSIDE*****

What's the deal you ask? Well, my car's thermometer went all the way to high on Friday. Yes, Friday before the 4th of July holiday, leaving me stranded for the weekend nonetheless. I called Honda and was told that Tuesday would be the earliest that they could get me in due to the holiday. Okay, no big deal, I have some items in The Playbook that I need to work on anyway. No biggie, I'll just take this lemon and make some lemonade.

Fast forward 5 days later to today at approximately 11:30 am EST, I get a call from Honda and am told that my head gasket is blown. After 45 seconds of silence, I asked this question in a very soft, firm and deliberate voice "what does that mean?" The service guy replies "thedhlas eioghe ghlsgehs jetighwl atighaldt llkthaydat cozithlzight and that will be $1,278, added to the other stuff that you wanted us to take care of, your total cost is $1,752." Huh!

Okay, now that I've gotten that off of my chest, I feel so much better. Thank you for letting me vent . Your thoughtfulness is greatly appreciated;-).

beep translation: What in the heck is going on? I'm so daggum frustrated with all of these cotton pickin financial interruptions. One freakin' thing after another. I used the "beeps" because I thought they repped (i.e. represented) more for my true feelings;-).

The Playbook

2009-07-07T06:36:00.001-04:00

I've had a desire to change careers for several years however, it's only been the last 2 that I've actually had a plan in place - I call it The Playbook. The Playbook is a written plan to help ensure that I'm doing the proper due diligence and mitigating the risks that are scariest to me. Since developing the playbook, there have been several interruptions such as $8K in plumbing repairs! Have I gotten frustrated, absolutely! Have I wanted to just throw in the towel and stick with my corporate gig, oh yes ma'am. BUT, something inside of me just won't let me give up, even when I want to. Secondly, as long as I continue to see progress in The Playbook, I find the encouragement needed to get over those frustrating moments.

A glance at the top three plays, each of which could easily have their own separate post:

Liberation fund - the lib fund is not the e-fund, it is a separate savings earmarked for the transition. The goal is to have 6 months of living expenses.
Start today - I reduced my schedule at the corporate gig to part-time, which gave me more time to work on the desired career. ***There will be a separate post dedicated to this play.
Health insurance - After researching the insurance options for the self-employed, I realized that it made sense for me to give up the PPO and get a HDHP so that I could begin building up an HSA. The HSA comes with me when I leave the corp gig. Based on the top 3 insurance plans that I'm looking at, I should have enough money in my HSA to cover several years of deductibles if I continue with high deductible plans ... which are generally less expensive.

Is there a goal that you're working towards? What's in your playbook?

Things Are Moving Along

2009-06-30T06:36:00.001-04:00

Hey ladies and gents, I had a meeting with a potential client two weeks ago. I'm now into the final phase, they've asked me to submit a written proposal. Unfortunately I can't go into many details but I promise I'll tell you all about it when I'm able to do so. Just know that I'm working toward my desired goal ... a career change.

I read this quote yesterday and I've been sharing it with anyone who would listen. Here goes, hopefully you find it as inspiring as I do:

Somebody should tell us, right at the start of our lives, that we are dying. Then we might live life to the limit, every minute of every day. Do it, I say! Whatever you want to do, do it now! There are only so many tomorrows.

~Pope Paul VI

Caveat - in the spirit of the quote, I don't think Pope Paul VI is suggesting that one embarks on a life of reckless abandonment and careless decision making. Quite the contrary. I believe he was encouraging us to live life on purpose. No longer passively living and merely existing. It's been said that most people's favorite day is "someday" and "one day," neither of which are real days of the week. How about changing someday to today and one day to Thursday ...

Okay, off to writing my proposal now! You guys are so supportive so I'm thanking you in advance for your encouragement.

Summer Goal

2009-06-27T18:11:00.002-04:00

I officially have a new short-term goal to accomplish. If you haven't noticed, there's a new ticker on my blog, 100 miles by August 31. For the record, I'm no runner so I'm not sure how realistic or unrealistic achieving this goal will be for me. Since the GA heat is out of control, I'm giving myself some grace to complete the miles on the treadmill or outside. I really want to push myself to complete this goal and since weight loss is not an end result that motivates me, I need something else. Something tangible, something desirable. Hmm. Any suggestions? Should I treat myself to a day at the spa? What about a mini shopping spree? Dang it, is this the best that I can do?! Help .....

Random Updates

2009-06-25T07:37:00.001-04:00

Aah, nothing like a little time off to recharge. Although it was only a few days, the time off was desperately needed. A friend and I met up in Philly and can I just say that Philly gets 2 thumbs up from me. The food was absolutely delicious and there was so much to see and do. I'm certain we'll visit again soon.

My budget, or shall I say non budget, is taking on a life of its own right now. I've basically blown it and honestly, I don't care. I'm thinking that I'll just consider this my little hiatus from frugality for the summer months. What does this mean? This means that once all of the necessities are taken care of (i.e. savings, bills, etc), the rest is fair game...to be spent on whatsoever my little heart desires...budgeted or not. Yeah, that's what I'm going to do.

New years resolutions. Remember them? Well I typically don't create any because my follow through is terrible. I wouldn't call it a new years resolution but I did have a goal to read one book a month this year. How many have I read, uhm, 2 I think. I've since started 2 more and just purchased another one today that I plan on starting July 1. Hmm, I'll see how this goes. If my interest level is any indication, I will surely finish the new book.

Friends. I love them, they are great. Females who say that they don't get along with other females are missing out. My friends are awesome, just awesome. Everyone should have at least one friend, don't you think?

Gym (rolling my eyes). Okay, I must get back to it. At some point I'd gotten a little over zealous on the treadmill, which resulted in a painful toe injury ... including the removal of my entire toe nail! For several months I couldn't wear my running shoes but now I can. No more excuses, these buns of potato chips, Mexican food, Cuban bread, and hibachi fried rice must find themselves back on the treadmill and back to light weight lifting.

All of this random posting is making me feel a little A.D.Dish so I'll end here;-). How is your summer going?

R&R

2009-06-18T10:20:00.002-04:00

Yippee!! I'm heading out of town with great expectations of getting a little r&r, rest and relaxation. I'll touch bases when I return on Monday.

Have a great weekend!

No Love, No Buy

2009-06-15T16:48:00.001-04:00

Can someone please tell me what happens to your clothes from one season to the next. Maybe it's just me, but every season I ask myself the same question "where are the clothes that I wore last winter" or summer, or whatever the season is. So true to tradition, I've been looking in my closet, wondering where in the heck are my summer clothes from last year. Since I have yet to locate them, I decided to do a little shopping this past weekend.

I went to several shopping centers within a 12 mile radius - crowded, crowded, crowded. So crowded that I just couldn't move around the way I wanted to. Every other second it was "excuse me, pardon me, oh I'm sorry ... " geez, what recession? Well it just so happened that I saw several decent things and once I saw the prices on some of them, they became even cuter. Has this ever happened to you? You see something, it's decent, but then the price is right so suddenly it becomes much nicer to you?

Okay, so I'm at Banana Republic and I have an arm full of clothes. Happy as a butterfly because I actually found some clothes, I proceed to the dressing room and try on the items, they fit, maybe not perfect, but they fit. The color is not necessarily one that flatters me, but geez louise, the price is right. These pants are not very flattering on my buttocks, but do you see the price? Oh, the skirt and shirt are not really my style but I can't beat this price. Fifteen minutes later and 5 steps away from the register, I did an about face and returned every single piece of clothing back to their racks. I realized that I didn't love anything, I loved the prices.

It suddenly occurred to me that the clothes I couldn't "find" are really still in my closet. I mean I have a closet full of clothing but I'm always lamenting over what to wear because I'm not really in love with most of them. I'd venture to say that one thing I lost in my quest for a more responsible financial life is purchasing clothing that I actually want. This is why I don't "have" any clothes even though I have a closet full. I have clothes, just none that I want to wear. I have clothes that I bought because the price was right, not because I wanted them. This chapter ends here and now. Beginning immediately, if I don't love it, I won't buy it. No love, no buy.

I know it's possible to purchase fabulous clothes at fabulous prices (fabulous being relative here ... based on each individuals personal style). Honestly, I've never been the kind of shopper who stalks sales and price compares. If I like it, I buy it. Although I love clothes, I dislike shopping, very much. Maybe I have to enjoy the process a little more and take my time finding the clothes that create a win/win ... a win for my personal style and a win for my purse. A few of my bestest girlfriends (yep, I said bestest on purpose) are great shoppers, perhaps I'll get with them for a little tutorial.

Can anyone relate to this? Do you have a tendency to purchase things primarily because the price is right?

A Kick In The Butt

2009-06-12T07:06:00.000-04:00

Blogpal MoneyFunk (see her blog listed in my blogroll) wrote a post yesterday asking how we all kicked the credit card habit. I'm always interested to hear other people tell their financial story, regardless of where they are in the process. Personal finances are just that, personal, and in my opinion, the personal aspect trumps everything else. What I'm saying is this ... it doesn't matter how much you know, it's your personal habits and motivators that will ultimately push you to achieving your goals.

As you've read in my posts this week, I used to be in an endless cycle of debt payoff. I just couldn't seem to make any progress. I began the journey in the late 90's and didn't accomplish my goal until April 2006. How did I end the cycle? What changed? I'll tell you what changed, I got a good kicking in the the butt! It was sometime between 2001 and 2002 that I attended a real estate investment class. This one was different, it wasn't like one of those late night infomercials that promise big rewards with little work; nor was it one of those hotel seminars that pretty much promise you $100,000 in your sleep. This one was real. The instructor was real, she was a real estate investor in our city, she was practical, unassuming and very transparent. She told us about the good, the bad, and the ugly as she had experienced the full range of real estate investing. She would always give homework, homework like get a copy of your credit report, practice calculating your rate of returns on specific properties, learn what a 1031 exchange is, so on and so forth, again, very practical stuff. Well one homework assignment was to go home and list all of our non-mortgage debt. Simple right? Here's the twist. We were to list all of our debt in one column and list the amount of interest we paid each month in a separate column. Hmm, never quite looked at it like that before. When we returned to class the next week, she asked us to take out our homework and then proceeded to say something like this, "look at the column with the interest and look at the total. That's how much money you're throwing away each month."

Let it sink in ...

Yep, that was my kick in the butt! Finally I had gotten sick and tired of being sick and tired. From that day forward, I maintained that list of debts, rearranged it from smallest to largest, and commenced to kicking debt in it's butt. That was my catalyst for change. What is or was yours?

How Much and How Long?

2009-06-10T16:18:00.000-04:00

Monday's post was a trip down financial memory lane and boy did I get a lot of great feedback (hello to everyone who chooses to e-mail rather than leave a comment;-). My blogpal JP Kittie left this comment, "wow - that sounds like what I have just thought about --- but now working towards paying off --- if you don't mind me asking - how much did you pay off total & how long did it take you?"

Well Mrs. Kittie, the truth is this, I really don't know. That's the one thing I wish I had done differently; I wish I had written down all of the debt at a point in time and tracked the entire payoff. Have you ever heard of the sayings "the way you eat an elephant is one bite at a time," or "Rome wasn't built in a day?" Well those are two adages that I live by. When I wrote my goals, I focused on one debt at a time. I didn't learn about the snowball method until 2002, that's when I put all of the debts down on paper. With that, I'll try to answer JPK's questions to the best of my ability.

How Much?
When it was all said and done, I paid the following:

Car loan $15,000
Visa $10,000
Student loan $7,000
Store credit cards $2,000
MasterCard $5,000
Discover $2,500
American Express $2,500
401K loans (approx) $4,000
I'm certain that I'm forgetting something ....

How Long?
I got my first credit card in 1994 and my first debt consolidation loan was sometime around 1997 or 1998. This was the loan from my local bank. I can't quite remember the payoff but the loan payments were $193.93 per month. My final debt payoff was in April 2006. Based on those dates it looks like I was in the debt circle for at least 10 years. It wasn't until I stopped trying the debt consolidation stuff and really just got my buttocks in gear and paid off the debt slow and steady, which happened around 2003. If I had to guess how much debt I had at that time, I'd say approximately $25,000. I went backwards for so long.

I Remember When ...

2009-06-08T14:01:00.003-04:00

1. I thought it was a great idea to borrow money from your house to purchase a car, after all, you get a tax deduction for the interest ...

2. I used to have 6 maxed out credit cards in rotation simultaneously ...

3. I got my first payday loan, at 18 years old ...

4. I put my first semester of college on a Discover card ...

5. I took out my first debt consolidation loan from my local bank ...

6. I borrowed from my 401K, this was my second debt consolidation loan ...

7. I joined my first network marketing gig to pay off debt. The problem here is I began to use the credit cards again, after all, these were business expenses and business expenses are what, say it with me, tax deductible ...

8. I took out a second loan from my 401K, debt consolidation #3.

9. I would watch eagerly for the next pay day like a lion waits for his prey. Hoping and praying that certain transactions would not clear before the deposit was available ...

10. I wanted my financial situation to change but refused to (or just didn't) change my habits.

11. I couldn't imagine life without a car payment. I thought having a car note was inevitable and therefore I would always have one ...

12. I thought $1,000 was a lot of money and almost impossible to save ...

13. I picked up Rich Dad, Poor Dad and couldn't put it down. This was the beginning of my personal financial revolution ...

14. I wrote my first financial goals, put up a big poster on my bedroom wall, and looked at them everyday ...

15. I looked at my poster one October and realized that everything on there had been achieved, even though December was the target month ...

16. I discovered the power of written goals, so I wrote some more ...

17. I realized that less debt = more choices ...

18. I learned the difference between needs and wants and subsequently learned the beauty of delayed gratification ...

19. I exited the rat race in my mind first, then watched as my circumstances caught up ...

20. I was in bondage and how much I hated it. Now that the financial chains are loose, I'm never going back ...

Lastly, I remember when ...

I acknowledged that my financial situation was no one's problem or responsibility but mine and mine alone. I couldn't blame my situation on what my parents did or didn't teach me, what I didn't learn in school or the mean ole credit card companies who continuously prey on my inability to just say no. I am the sole determinant of where I land financially.

What are your remember whens?

Life After Debt

2009-06-03T18:55:00.000-04:00

Geez, it's been an entire week since my last post. I never intend for so much time to pass in-between posts. My weeks are running together so much that sometimes when I say yesterday, I really mean last week. When will it slow down? Hmph.

Okay, life after debt.

So, last week I was chatting with some friends/co-workers. During our conversation one of them mentioned something about it being payday. Lifting my head and raising my eyebrows, I said "payday? when, today?" What do you know, it was payday and I didn't even realize it. What a blessing that I can go almost the entire day and not even realize that my wages have been paid. Honestly, since I paid off all of consumer, car and student loan debts, life after debt has been kind of ... uh ... boring. My finances are pretty much on auto pilot. I don't even balance my checkbook anymore. The same expenses go out every month at the same time, not much changes from month to month.

When I was in the trenches of paying off debt there was always something exciting on the horizon. It seemed like every couple of months brought about a new accomplishment - the Visa, the MasterCard, the store credit card, the car loan, the student loan, the 1 month e-fund, the 3 month e-fund, the 6 month e-fund, etc. Now that I've done all of that, it takes much longer to get to an accomplishment. The next item on my list is to pay off the mortgage. If my aggressive target is met, I'll do so in 3 years. If I get close, 5 years, and worst case 7 - 10 years. Trust me, I'm not whining or complaining at all. I'm very thankful for what I've learned and how I was able to apply it to my life. It's just that I spent so much time getting out of debt that now I'm kind of bored, I need some new goals, a new focus. Does that make any sense at all? Although I've never been in this situation I think it's probably similar to what some parents feel when they initially become empty nesters. You put all of your energy and time into something (i.e. the kids) and now that they're gone, you have to reinvent or rediscover who you are and what you want to do.

Some of the things I thought I wanted to do when I no longer had debt, I don't want to do anymore. Funny how much I wanted certain things when I couldn't afford them and now that I can I have no desire to obtain them. So that I don't mislead you, I do have some things that I'm working towards (i.e, basically switching careers) so I'm not totally without any focus. However, it's not the same. I'm goal oriented by nature so it's only a matter of time before I come up with something. Maybe I should train for a 1/2 marathon. Naa, it's too hot in G.A. right now! Okay, I'll find something. Any suggestions?

Gift Giving Rules, What Are they?

2009-05-27T16:00:00.000-04:00

This post has more questions than content. I'm sincerely seeking some answers here.

1. What are the rules on giving gifts when you've been invited to an event but are unable to attend?

Weddings

Bridal Showers

Graduations

Baby Showers

Birthday Parties

Baptisms

Are you expected to send a gift at all times?

2. What are the rules on baby showers for the same parents? For example, you are are invited (over the years of course) to several baby showers born to the same parents.

3. If you're invited to multiple bridal showers because you and the bride share multiple circles of friends, are you expected to give a gift each time?

In case you're wondering why all the questions, they're basically because I'm curious to hear what others think. I wonder if I'm too giving or not giving enough.

Cars

2009-05-18T16:56:00.000-04:00

My facebook activity has increased quite a bit lately. The other day one of my high school friends posted the results of a facebook application thingy that showed all the cars she's owned. If you are a facebooker, you know how those things work ... someone takes a "quiz/test" and post their results - you then have an opportunity to do the same. Well I began to take this little quiz thingy and realized that I've only owned 2 cars in my lifetime! Wow, I'm in my early 30's and I've only owned 2 cars, well 3 if you count the one my mother let me drive in high school.

During my senior year in high school, I worked and saved money to buy a car ... a Toyota Tercel. I paid the down payment (20%) and paid for insurance; my mother paid the car note. I kept that car until I decided that I'd "outgrown it." At that time I had a job where my clients were fortune 500 companies for the most part. It was nothing to have clients in my car daily. My little car wasn't quite "fitting" any more so I gave it to a friend and bought another one. My second car was a used 1998 Honda Accord, which I still have today. The car has almost 200K miles on it but it runs very good. I still drive it when I go out of town, it's still very reliable, and I still like it.

Me only having 2 cars is not because of financial disciple, it's because I'm too stubborn to compromise. Honestly, I would love to purchase another car, however, until I can purchase what I want, I'm in no hurry to do so. If something happens to my car, I'll just find something decent that I can pay for in cash and keep it moving. Now let's pretend money was no option ... I'd purchase a pearl black Range Rover. Yep, that's the car that I absolutely love. Who knows, next year it could be something else, but for the past 5 years, it's been the Range baby!

How many cars have you owned?

FICO Frustration

2009-05-13T17:20:00.002-04:00

At what point should a person's FICO score take a back seat? In my line of work I cannot tell you how often I hear someone say "I don't want to ruin my credit." Okay, I get it. But listen Mr. & Mrs. keep my credit perfect no matter the cost, your electricity has been disconnected. Credit scores have their place but they are not to be worshipped (I personally don't care about it that much, but that's just me). You know you need to dethrone King FICO when you ...

Allow your car insurance to lapse because you used the money to pay credit cards.
Illegally connect to your neighbor's electricity because yours has been disconnected.
Go to restaurants, eat, then plant something in your food so that you won't have to pay for the meal.
Sell the title to your vehicle, the only one you have to get back and forth to work.
Pawn your wedding rings

...And for what, so that you can pay the creditors and not have a late payment on your credit report.

Even though I don't manage my credit score like a pit bull, I do review my credit report at least annually. Having been a victim of identity theft, I understand the importance of knowing what's on my report. It saddens me to know that people are so caught up in protecting their credit score that they'll prioritize paying creditors over the necessities of life ... such as utilities and insurance. Trust me, I do get the importance of a healthy credit score, but when is enough enough?

***p.s ... I didn't make any of those examples up; they are all real life situations.

Crap Or Get Off The Pot

2009-05-11T11:07:00.001-04:00

There are those moments in life when you ask yourself, "if not now, when." You know, the times when you look in the mirror and say "crap or get off the pot." I'm there. Smack, dab in the middle.

There are several things that I would love to put my all into right now. Each time I prepared to do so, I discovered another reason (or excuse) to put them on hold. Initially my goal was to "retire" from corporate at the end of 2007 but when I looked at the balance of my liberation fund, I didn't think I had enough. There were several unexpected expenses in 2007 that put a hurting on my liberation fund - plumbing, necessary home repairs, etc, and with that, my desire of 12/31/2007 came and went.

After 2007 did not work out, my target date changed to 12/31/2008 but then the recession happened. The liberation fund was decent, but suddenly in the face of a recession it didn't seem adequate. Seriously, who ups and quits a decent paying job to go and pursue the unknown? Tons of people right, yes, but in a recession? In a single income household? In an unstable market? I began to question my ability to rejoin the corporate workforce should things not materialize as I have planned. There was a time that anyone with my credentials could get a job, easily, no problems, now not so much. I've scanned the available positions in my area and I know that they are offering less than they were just 2 years ago. Not only is the pay less, there are fewer positions. So, what's a girl to do. I say this girl needs to crap or get off the pot.

New goal and new plan, 1/31/2010 at the latest. Hopefully sooner, but if not, that's the date. I have to do it. I have to try, I have to go for it. Prayerfully in 8 months I will be able to "retire" from my first career and move on to the next.

Has the recession caused you to rethink or postpone some of your goals?

***The liberation fund is not the emergency fund. I wouldn't call deciding to leave my job a valid reason to dip into the emergency fund. Emergencies are things I cannot control; leaving my job is completely in my control at this moment. The liberation fund is a separate account where I'm saving money to help bridge the gap and buy some time when there is no longer a steady paycheck from the job.

I Don't Get It (pt 2)

2009-05-06T22:21:00.000-04:00

I promised that I'd share the inspiration for last week's post so here goes, true story:

Amy: I really need to talk to you, I need some help.

Me: Sure, what's going on?

Amy: We're facing foreclosure if something doesn't happen soon. We're 3 months behind on our mortgage.

Me: Oh no, what happened? Did one of you lose your job?

Amy: No, we just got behind.

Me: But I don't understand, yall make a pretty decent income. What happened?

Amy: Well, we just did some stupid things. We knew better, I have no idea why we did it, we just didn't do the right thing.

Me: Okay, we've all done stupid things, but I still don't understand. What happened?

Amy: I'm telling you, we did some stuuu-pid things. We owe the IRS for back taxes and we've been trying to get that straight for several months. I know you don't know this - we filed bankruptcy last year, but we kept the house.

Me: So why is the home in foreclosure. I'm very confused now. You have a decent income and all of your debt except for the house and the IRS was discharged. You really have to tell me what happened because I'm not getting it.

Amy: Well, see, our daughter got married in September and we had to pay for the wedding.

*****crickets******

Amy: We paid cash for it (the inflections in her voice suggested that she was quite proud of the fact that they paid for the wedding in cash, despite the fact that the mortgage went unpaid.)

****crickets*******

Amy: And then Christmas came around a few months later and we had to pay for that as well.

****crickets*******

Amy: So see, we just did some dumb stuff. We're trying to get out of this hole.

Me: Well what is it that I can do for you? You know what to do, why you didn't do it is beyond my understanding.

Amy: Yeah, you're right. We were just stupid.

****crickets********

And again I say, I don't get it! I know this is pretty extreme but I promise you that it's a true story. Just crazy. And yes, this person knows better. Is it possible to know something and never act on that knowing? Is it possible to know something and constantly do the opposite. Maybe it's just me but I think actions demonstrate what you really know. Perhaps she doesn't know as much as she says. She says all the right things, but gosh doggit, did you read the decisions she and her husband have made recently? I don't get it! (sighing).

***Amy is not the person's real name so if there is an Amy reading this, chances are that I am not talking about you:-).

I Don't Get It

2009-04-30T19:43:00.000-04:00

Someone please help me understand the psychology of money. Please help me understand why some people (those who "know" better) use credit to purchase things they could have paid for with cash - when I say credit, I don't mean use credit and pay it in full when it's due, I mean use credit and make payments? Please help me understand how paying 18% or more a month in interest payments while earning less than 3% of interest in a savings account makes sense. And while you're enlightening me on that, please don't forget to share with me how purchasing nonessential depreciating items on credit makes sense when you have other outstanding debt - i.e, balances on credit cards that you cannot account for. Yes, I need a tutorial, I need some understanding.

Now before anyone thinks that I'm being snooty or "forgetting" where I came from, please understand that I have done almost every dumb thing you can do with money. I've gone into debt for some of the most ridiculous reasons ... BUT ... that was before I had any knowledge or understanding about money. Once I learned how to handle my finances, I didn't look back, not once. I continued to make mistakes until I learned - with each book I read, each CD I listed to, each website I perused, I made better decisions. So no, I'm not talking about those who honestly may not know better, I'm talking about those who can talk personal finance with the best of them. I'm talking about those who openly profess and proclaim their pursuit towards financial independence one minute but then justify their ridiculous spending with one made up excuse after another the next minute. News flash, you can always conjure up a reason to spend, that's not hard. Heck, 15 reasons just ran through my mind for spending some of my savings.

It seems as if frugality is the latest vogue; it's a movement, it's in, it's hot, it's even sexy. I guess everyone wants to be in but not everyone wants to pay the price. If you're not ready to pay the price, then don't pretend, just be honest, if not with others, then at least be honest with yourself - that's what matters most.

One day soon I'm going to write about the inspiration for this post, but before I do, I want to know if I'm missing something - so someone please help!

It's That Time Again

2009-04-28T20:02:00.000-04:00

Spring weather is here, the days are longer, flowers are blooming and the winter blues are gone. Yes, this is my season! This is the time of year that I enjoy the most. But oh boy, I have to keep a watchful eye out for a financial nemesis that provokes me every year - with very little effort might I add. For some reason I love to eat out during this time of the year. Perhaps it's the gas stove in my ranch style home that gets ridiculously hot when I cook in the summer, or maybe there's some type of serotonin in the summer sun that makes me want to hang out more than usual. Another possibility could be the fact that the first 4 months of the year are extremely busy and I'm just catching up for seemingly "falling off the face of the earth" - according to some of my friends. Who knows? All I know is something happens when the season changes and that something usually results in a negative impact to my budget. You know what I'm going to do, I'm going to increase my "blow" budget. Yep, that's what I'm going to do. I just came to that decision.

When I started writing this post, I planned to confess my financial sins and promise not to do it again. I planned on detailing out my 12 step program on how I was going to mitigate the risk of me blowing my budget wide open but no, I'm changing courses. I'm giving myself permission to increase my frivolous spending, yep, that's what I'm doing - even in this recession.

Honestly, I do a pretty good job of managing my money and I have come a very long way from where I used to be. The only debt I have is my mortgage, my e-fund is fully funded and my necessary living expenses only account for about 50% of my income. Most of us know how challenging it can be to balance financial responsibility with enjoying some sort of quality of life. Don't get me wrong, I'm not one who feels like I "deserve" this or that, and I'm definitely not one who does not know the difference between a need and a want. However, I have paid the price to have a little flexibility in my budget so I am exercising that option. Where is this extra money coming from? Well, I never adjusted my gas budget from last year when we were paying upwards of $4 a gallon. I'll adjust the budget to what I'm really spending on gas and allocate the excess to my blow money - at least until Oct 1, 2009, when the summer season begins to hibernate again.

Aah, a balanced life ... that's the ultimate goal.

Financial Nugget 13

2009-04-24T08:53:00.001-04:00

My west coast blogpal MoneyFunk wrote something in one of her posts that really resonated with me, "I realize that the true life I want to live is not about the items I can buy, but about the experiences I can create." Well said Christine, well said!

What Has Me Excited Today...CSA

2009-04-23T09:22:00.000-04:00

Have you ever heard of a CSA, community supported agriculture? Perhaps I'm late on the information but I'm excited nonetheless. In my quest for a healthier lifestyle, I constantly look for opportunities to improve the quality of food I purchase. It concerns me that many of our foods have origins many miles away - the same foods that are available right in our backyards. Seriously, please explain to me how it is possible for grocery stores in the Southeastern United States to sell shrimp shipped from the far east of the world significantly cheaper than it is to sell shrimp straight out of the Gulf Coast or out of the waters of Savannah? How is it that foods harvested and grown thousands of miles away are cheaper than foods locally grown? My guess is there has to be some sort of compromise in the integrity of the product, but hey, I could be completely wrong. What are the checks and balances? How about the quality control? Oops, I digressed, back to the CSA ...

Per Local Harvest, community supported agriculture has become a popular way for consumers to buy local, seasonal food directly from a farmer. Here are the basics: a farmer offers a certain number of "shares" to the public. Typically the share consists of a box of vegetables, but other farm products may be included. Interested consumers purchase a share (aka a "membership" or a "subscription") and in return receive a box (bag, basket) of seasonal produce each week throughout the farming season. The rates vary among participating farms but I think the prices are reasonable. I plan on signing up and splitting a package with a friend.

For more information, check out Local Harvest's website here. You can type in your zip code to find CSAs in your area. Of course, if you have a really good farmer's market in your area, you have the best option since there is no minimum commitment.

Happy healthy eating,

Not So Good News

2009-04-13T09:28:00.003-04:00

"Police are looking for a BMW that may have started a fatal chain reaction car crash that claimed the lives of 5 people, one an infant." Over and over again, that was this morning's headline news on every news channel in my city. At 7:46 am, I received a call and learned that one of the cars involved was carrying a dear friend and her family, a spouse and 2 children. Speechless, amazed, confused, perplexed ... the call put a knot in my chest that has yet to leave.

Death has an uncanny way of causing many (or maybe just me) to take an immediate inventory of life. Are we living life to the fullest? Are we enjoying the present because it really is a gift? Are we appreciative to our family and friends, and more importantly, do they know it? How many friends have we scheduled and rescheduled and rescheduled lunch with, never really having the time to do so because we're all so "busy"? At times I can be such a planner and goal seeker that as a result I get off balance.

My friend was truly a person who was bigger than life. She dedicated her life to motivating and inspiring others and I'm not joking, this is really what she did. She was "that" kind of woman - you know the kind - the one who makes lemonade out of lemons, the one who can see the diamonds in the dirt, the one who can work around the thorns to get to the roses, that woman. A woman's woman. From my vantage point, she definitely practiced what she preached. Her life was a celebration, she was an over comer, she pursued her dreams and helped others to pursue theirs as well. She will be deeply missed but this I know, because she impacted so many people's lives, her legacy will continue.

I've been struggling with making a few decisions primarily because of finances. Now yes, money is important but I get sick and tired of it being the driving force in many of my decisions. In an instant our entire world could change so now that I've been painfully reminded of that, I need to take inventory and make sure that I'm living in today and not just for tomorrow.

Guess Who's Eating Crow?

2009-04-04T17:45:00.002-04:00

Several months ago the blogosphere was buzzing with anger and frustration from many of Chase's customers. One of my favorite PF bloggers wrote one of the best dear john letters ever written. If you've read Shtinky's letter, I bet you will agree with me that it was not AG Cuomo, it was Shtinky who single-handedly caused Chase to reverse their decision (Hi Shtinky, I told you it was an awesome letter;-).

Click here for the link to the story or read below:

JPMorgan Chase & Co. agreed under pressure from New York state to stop charging a new $10 monthly fee to credit cardholders and agreed to refund the proceeds collected since the fee was first levied in January, Attorney General Andrew Cuomo said Monday.

Over 184,000 JPMorgan Chase cardholders will receive $4.4 million in refunds as a result of the agreement, Cuomo said in a statement.

Chase Bank, one of the biggest U.S. credit card issuers, said in a separate statement it will reimburse $3.3 million. There was no immediate explanation for the difference in figures.

Cuomo said the bank had offered promotional rates for several years for balance transfers or other loans put onto their Chase credit card accounts. The offers made clear a one-time transaction fee would be charged for this promotional rate, Cuomo said in the statement. But last November, the bank sent letters to over 300,000 consumers, saying it would start charging a flat $10 fee per month.

Following consumer complaints, the attorney general demanded that Chase cancel the charges and refund the fees collected. Last Thursday, Chase agreed to comply with the demand, Cuomo said.

However, the bank said it decided to withdraw the fee based on cardholders' feedback.

With U.S. credit card defaults at their highest level in at least 20 years, credit card lenders are trying to protect themselves by tightening credit limits, raising standards and closing accounts. They have also been slashing rewards, raising interest rates and increasing fees to cushion losses.

I Want To Refinance, but Should I?

2009-04-03T07:08:00.004-04:00

Mortgage rates have hit another low, 4.75% or there about. My current mortgage rate is 5.85% and my credit is very good (caveat...I have not checked it recently). Sounds like a no brainer right, well, not so much. Here's the problem, lenders are requiring 20% LTV (loan to value) ratios now and I'm not sure what the value of my home is today. During the mortgage heyday, I was able to get a conventional loan with no PMI and a much smaller down payment than 20%. I must also tell you that I purchased a home in a price range that was wayyyy lower than what the mortgage brokers were willing to give me, like $75K - $100K lower. Whew, glad I dodged that bullet!

Since my mortgage is pretty small, the savings on a 1% interest rate reduction will yield about $110 a month. On the one hand, if I can get a loan with no PMI and not subject myself to "creative financing," then maybe refinancing would be worth it. On the other hand, if I can get the rate reduction but am forced to plunk down a huge principal payment or obtain PMI, then the refinance will not be worth it for me.

This season of historic mortgage rate drops may be one where I have to be a spectator and not a participator. Or as it's said in the south, what's good for the goose may not be good for the gander (1. I'm certain it's said in other regions but I'm a southern girl born and bred and 2. I know it's also quoted as what's good for the goose is also good for the gander ... just thought I'd clear that up;-).

Have a great weekend everyone,

Have You Ever ...

2009-04-01T06:36:00.003-04:00

Purchased an item that you forgot you purchased? Not just any ole' thing, something that you price stalked and thought you just couldn't do without? I'm talking something that you looked at every time you were in the store, something that you just had to have.

Apparently back in January I purchased a pair of shoes that I'd wanted for quite some time. I even price stalked and that is something I don't do (i.e. continuously checked the prices at the store and online). If I see something that I like and I have the money to buy it, I buy it. No price comparison, no price stalking, no waiting on a sale, no googling for coupons, none of that. I'm too impatient and while I like clothes and shoes, I am not a "shopper" per se.

So what happened? I was cleaning out my purse when I saw a folded receipt in the coin section of my wallet (interpretation ... I was looking for something specific that required me to empty the contents because I couldn't find it otherwise). When I looked at the receipt I saw that I apparently had purchased 2 pairs of shoes in January. Now I remember one pair because I wear them pretty frequently but I could not remember the second pair. This is when the scavenger hunt began. I began to search high and low looking for a new pair of shoes and guess where they were? They were still in the box, on the outside of my closet door! You mean I didn't even take the time to move them 2 feet into the closet?! LOL. Is this how I treat something that I had to have? Gee whiz. In all fairness, I claim amnesty on this one because it's been a very hectic 3 months. But what about you, have you ever ... ?

Resurrection

2009-03-31T07:10:00.004-04:00

Happy resurrection day to me. Well not quite; I'm still in the trenches, but I'm slowly but surely coming back to some kind of normalcy. On my priority list of things to do, get caught up on the blogosphere and complete a 30 day detox. Please believe me when I say that I have completely abandoned any decent eating habits during the last few months. When you're working 7 days a week, 12 - 18 hours a day, it's challenging to do the planning and prep work necessary for semi-healthy eating. I've had more Mexican food, pizza and chicken (shout out to Chick-Fil-A) in 3 months than I probably had all of 2008. As tasty as those guilty pleasures were/are, the effects on my energy level and skin are not as beneficial. Oh and wait, since I'm confessing here, let me not leave out the endless 20 oz bottles of coke products, almost any coke product, classic coke, coke zero (sorry, me no like diet coke), fanta orange and sprite.

Exactly what kind of detox will I do for 30 days? I plan on sharing more but I do warn anyone out there with real knowledge of such things, the detox plan that I share will be completely made up by me, supported by nothing more than my thoughts and perceptions. In a nutshell, the detox will consist of a lot of no-no's: no fried foods, no refined sugars, no processed foods, no meats and no breads. How dreadful it sounds when I focus on what I can't have, let's see, what can I have ... oh yes, fruits, veggies, beans, grains, nuts, okay, yeah, not helping. Oh well, I'm going to do it, I have to do it, I must do it! Now that I've shared this with the world, failing is not an option;-).

I'm glad to be back. I missed yall!

***There will be a post on the financial impact of such careless eating. You'll be surprised.

Still Here

2009-03-03T06:31:00.003-05:00

Hey blog readers and friends, I'm still here! Work is busy, busy, busy ... just out of control (which I guess is a good thing in these times huh?).

Hopefully I will be back to regular posting & commenting next week (or sooner because I miss yall ... sniff sniff).

Have a fantastic week,

Moving My Eggs Around

2009-02-23T23:01:00.002-05:00

Since my previous post on diversification, I have remained committed to finding ways to diversify my savings. Having all of my wealth in the stock market no longer makes sense to me for several reasons ... (1) I'm not truly diversified, (2) while I'm not freakin out about the current downward spiral of the market, I am paying closer attention to how my investments are structured and (3) I do not want my long term savings to be solely based on speculative investments.

Investopedia defines diversification as a risk management technique that mixes a variety of investments within a portfolio. The idea here is to reduce your exposure to risk because investments are unlikely to move in the same direction at the same time. When one investment is down, the other investment should be up or at least stable. Needless to say, we are currently in unprecedented times when everything, stocks, bonds and real estate are all moving in the same direction, down! So can I really achieve diversification? Yes, I think so. Here are a few investment ideas that I plan on adding to my portofolio, in addition to paper investments (i.e. stocks & bonds):

Pay of my mortgage! Yes, this is already a goal but I have taken steps to increase the amount I'm sending each month as extra principal payments. The way I see it, a paid off mortgage will fit in quite nicely with my long term savings plan. Unless I have some life changing circumstances, I am in my house for the foreseeable future so why not expedite the payoff. Certainly we all know the benefits of not having a mortgage.
Small Business - I have an investment in a small business and it's actually in the black! I will continue to monitor the business and maintain my investments as long as it's a viable option. One of my long-term goals is to invest in more small businesses. Perhaps I'll post more about this later because this goal gets me pretty hype!
Rental Real Estate - At some point I plan to include rental real estate in my portfolio. I have no plans on taking the plunge until I have enough cash to make a hefty down payment. Actually I would prefer multi-units or commercial properties. I have little to no interest in managing single family homes.

Now that I have specific investments identified, I am feeling better about being diversified. Am I risk adverse, absolutely not, I just don't want all of my eggs in one basket. Aah, it feels good to have a plan ;-).

Financial Nugget 12

2009-02-19T21:35:00.000-05:00

I must admit, I am trying everything I possibly can to avoid blogging about politics because frankly, I did not start this blog to be political or voice my political views. While I have zero interest in chatting about politics, this week's nugget was definitely inspired by recent political events. I'm not sure who said it, where it came from or when it was first said but it's definitely worth repeating ....

You cannot borrow your way out of debt, period.
~author unknown

FREE Training in Metro Atlanta

2009-02-15T10:27:00.001-05:00

This info was passed on to me by a fellow reader. If you are currently unemployed, CED Solutions is offering a free 5 day Microsoft Office Training in the Atlanta area. You can find out more by clicking here.

According to their website, CED Solutions is the largest training and testing center in North America. Since they have classes all over, it's possible that free training is being offered in other states as well. Please pass this information on to anyone who may find it useful.

Thanks!

Financial Nugget 11

2009-02-12T18:15:00.000-05:00

Never invest in any idea you can't illustrate with a crayon.
~Peter Lynch

If only we had listened to the simple wisdom in this week's nugget, just maybe we could have avoided or at least softened the pain of this self-inflicted wound that our economy is feeling today. An economy that grows exponentially as a result of creative financing, derivatives, hedge instruments and securitizations backed by sub prime lending cannot sustain itself for very long. The market will eventually have no choice but to self correct, and that my dear readers is where we are today.

Mondays

2009-02-09T23:02:00.002-05:00

Are you one of the many people who dread Monday mornings? When I was a member of that group I used to get the downers around 6:00 pm every Sunday evening. I remember dreading Monday mornings and the start of another work week. Today I don't feel that way. The heaviness that used to settle in the pit of my stomach every Sunday evening no longer comes to visit. After I became consumer debt free I made some life adjustments that allowed me to rearrange my work schedule so my Mondays became much better ... however there is a new threat lurking.

Nearly 2.6 million jobs were lost over the course of 2008, the highest yearly job-loss total since 1945. The job-loss reports continued to climb in January, which saw over 200,000 job losses. January 26th was the day that some labeled as Bloody Monday because several fortune 500 companies announced over 65,000 job cuts combined. Those companies included Caterpillar (20,000 jobs), Pfizer (20,000 jobs), Sprint (7,000 jobs) and Home Depot (7,000 jobs).

Monday February 2 - Macy's announced that they will cut 7,000 jobs. Other companies announced job cuts later that week (Panasonic 15,000 jobs, and PNC Financial 5,800 jobs).

Monday February 9 - Japanese automaker Nissan announced 20,000 job cuts (technically it was announced Sunday but it hit US mainstream news Monday).

Flag on the play! Who wants to start the week hearing about the infinite number of jobs being lost everyday? And why on Monday? If there has to be a weekly announcement I suggest that companies do it on Friday when most of us are floating high at the anticipation of the weekend;-). I shall not be recruited back into the Monday morning blues. I know we're in a recession, I know the economy is shaky, I know the markets are extremely volatile, yes, I know all of these things. I also know that I do not want to begin each week with Monday's gloom and doom report so effective immediately, I am replacing Monday morning news with Curious George and Clifford the Big Red Dog.

No Spend Week - Pass or Fail?

2009-02-06T19:30:00.005-05:00

Several of my fellow pf bloggers have challenged themselves to no spend days, weeks and even months. Since I'm always up for a challenge, I decided to try a no spend work week to see if I could in fact go 5 days without spending any money. I almost made it through the week but something happened today ... I packed too light of a lunch and by 2:30 p.m I was quite hungry! As fate would have it, Chick-Fil-A was having a Receipt Day. Have you ever heard of Receipt Day? Yeah, me either. Well Receipt Day works like this - purchase anything today and bring your receipt back any day next month and get that exact order for FREE!. Woo Hoo.

Honestly, I think I could have made it through the week but the temptation from Chick-Fil-A was too much for me to handle. Fast food is not my thing but Chick-Fil-A kinda gets a pass. They have pretty good food for a fast food joint. Those waffle fries are just so delicious, oh and that polynesian sauce, just wonderful on the fries. How about that lemonade? Yum Yum. So not only do I enjoy their food, but they offered an opportunity to eat now for regular price and eat later for free. Yep, I was sold.

So, did I pass or fail? I'm not sure. It was an interesting challenge but I'm not sure that I will do it again - not without a real reason. Minus the $5.95 meal today, I have all of my blow money from this week plus the blow money that I get today. Yippee.

Financial Nugget 10

2009-02-05T07:37:00.003-05:00

It seems that we tend to fall into one of two spending categories ... the person who spends big or the person who nickles and dimes their finances away. More than likely person B is prone to ask, "where is all of my money going?" If you are person B, Ben Franklin has something to say to you;-)

Beware of little expenses; a small leak will sink a great ship.
~Benjamin Franklin

Catch 22

2009-02-02T16:57:00.005-05:00

The metro area I live in experienced somewhat of a severe water drought over the last couple of years. Some of the measures taken by local and state officials included water restrictions (i.e. only being able to water your lawn on certain days), incentives for companies and households to install low flow toilets, legal battles with two neighboring states over water from a shared lake, etc. During the most severe times there was no shortage of information and tips on how each person could help to preserve water.

Apparently the message got through to many of the citizens. Even now I'm very cognizant about leaving water on while brushing my teeth, waiting until I have a full load of clothes to run the washing machine and other little tidbits to do my part with conserving water. Sounds good right, well here is the catch 22. All of this water conservation has no doubt dipped into the revenue stream of the water companies (ran by municipalities). So guess what, they are raising rates to make up for the loss of revenue due to consumption! Are you kidding me? Maybe we should inundate them with information on how they can better manage their money, how to spend less than they make and how to budget accordingly.

Financial Nugget 9

2009-01-29T09:02:00.004-05:00

This one may require you to chew on it a little. I am so resisting the urge to write a dissertation on what I think the quote means.

Advertisers constantly invent cures to which there is no disease.
~Author Unknown

How apropos with the big game coming up this Sunday;-) We all know that the commercials are just as exciting (if not more) than the game itself.

10 Reasons Why I Love Mint!

2009-01-27T19:05:00.003-05:00

Whew hew! I finally get to deliver on my promise to post about my new love affair with Mint, an online financial management tool. Although I have only been a user for a couple of weeks, I have discovered so many great features. Here are 10 reasons why I absolutely love this tool:

Cost - It's free!

Comprehensive - I can manage all of my accounts in one place, real time. No more logging into several accounts.

Ease of Use - Mint does all of the bookkeeping! The program does a really good job at classifying the income and expenses. If they get it wrong, not only can you correct it, but you can tell Mint how to classify transactions to/from that payee/payor going forward.

Flexibility - Unlike other free online financial management tools, Mint allows you the capability of splitting transactions. For example, let's say you spent $100 at Wal-Mart, $60 on groceries, $25 on home supplies and $15 on prescriptions. You can split the transactions up into the appropriate categories!

Usefulness of Information - Mint provides wonderful up to the minute analytics of your financial picture. Each week a financial summary is sent to your inbox. Not only is the info useful but it's also very easy to read.

Communication - Mint has an awesome system that alerts you of unusual activity, low balances, upcoming bills and even rate increases on your credit card (click here for my personal story).

Savings Tips - Apparently Mint uses some highly sophisticated search algorithm that searches through thousands of offers to find the best deals on everything from bank accounts to credit cards, to service providers for phones, internet, cable and more. As if this is not enough, Mint makes suggestions based on your individual spending pattern so the tips are unique to your situation.

Visual Appearance - Yes, Mint's website is easy on the eyes. It is not laced with advertisements or annoying pop-ups. Navigating the website could not be easier.

Accessibility - You can logon to Mint anytime, anywhere, from any computer. All you need is the e-mail address you registered with and your password.

Security - Mint provides bank level data security, which has been validated by industry leaders VeriSign and TRUSTe (btw...this feature may not mean much to the masses but as a former IT auditor, I threw it in kind of as an ode to a career that I'm happy to have left;-).

Okay, I gave you 10 reasons but trust me, this is not an all inclusive list. I sincerely urge you to give Mint a try. If you are already using Mint, I'd love to hear about your experience.

Vacation Request

2009-01-26T10:15:00.000-05:00

Help!! I have a dilemma, a good dilemma, but a dilemma nonetheless. This is the first year that I have included a "vacation" line item in my budget. Honestly, I am a little "discouraged" about the budgeted amount, which is only $1,200 (i.e. $100 a month). I say "only $1,200" because it my brief search, there does not seem to be much that I can do with that amount. Unfortunately I have no idea how much I paid for vacations in the past because (1) I really didn't take formal vacations and (2) when a trip of some sort came up and I wanted to go, I did ... no planning and no budgeting.

So my dear blog friends, can you please give me some suggestions. I have a passport that has absolutely no stamps on it yet;-). So that I won't lead you on a wild goose chase, here are a few things to note:

No trips to Disney World, Disney Land, any other amusement park, or the Bahamas
I prefer to fly or cruise rather than drive because driving takes up a lot of vacation time
Good food is very important to me. I would travel for good food;-)
I'm pretty open to most things

Sooo...any suggestions, websites, vacation tips or other resources that you can share will be greatly appreciated.

Financial Organization

2009-01-22T12:25:00.004-05:00

Now that I have achieved phase I of my financial goals, I am evaluating my organization method to see if it still makes sense. Here's what I have today:

Operating Account (Checking Account 1)
This account is grand central station. This is where all income gets deposited and all mandatory monthly expenses are paid. Mandatory expenses primarily include giving, savings and housing related costs. Everything happens electronically, income is direct deposited and expenses are paid via online bill pay. I do not use a debit card for this account and I only write checks if absolutely necessary. Although the remaining balance in this account rarely changes from month to month, it's still balanced each month.

Discretionary Account (Checking Account 2)
This account receives a weekly transfer from the Operating Account for categories that are funded with cash. As I continued to define a financial prescription that worked for me, I noticed that I had a tendency to overspend in certain categories. Once they were identified, I set up a second checking account so that I could isolate those funds and therefore "force" myself to spend within my budget. Several years later the struggle still continues if I don't use this account- remember that budget buster last month - hmph! This account is not balanced and there are no checks. I only have a debit card.

Irregular/Non-monthly Expenses (Checking Account 3)
For expenses that are not paid monthly (i.e. car insurance, security alarm, pest control, etc), I calculate what the monthly amount would be and then deposit it into the non-monthly account. This account is not balanced each month. I pay all expenses via online bill pay.

Long Term Savings (Brokerage Account)
****E-Fund: I consider my e-fund to be fully funded and I do not intend on making any additional deposits to it other than the interest it accrues monthly. Unless there is a true emergency (extended loss of income, WW III, etc), the money will just sit there in perpetuity. This account is not balanced each month. I have check writing privileges but again, I have no use for them barring a real emergency.

*****Investments: Roth IRA & other non-retirement investments. Currently the investments are 100% in mutual funds. I do have plans to diversify beyond paper assets.

Short Term Savings (Savings Account)
This account is where I save for whatever is on the docket. Since my car is 11 years old, I am saving for my next car purchase - which I will pay for in cash. I also put my vacation money in this account as well. Sometime in the future, I'd like to have my backyard landscaped so when I begin to plan for this, I'll save it here as well. Whatsoever my little heart desires, I will save for it until I have the cash available.

Credit Card (Citibank)
I only have one credit card and I primarily use it for online shopping and travel. The card is paid in full each month. While I am disappointed with Citi for how they jacked my rate up 66% (7.59% point increase), I'm not sure that I want to apply for a new credit card.

In summary, I only balance the operating account. While I may not balance the other accounts in the traditional manner, I do monitor them online. Now that I am a registered user with Mint, I can manage them all in one place real time.

The Credit Crunch Strikes

2009-01-16T19:58:00.003-05:00

Here is a message that I received from Mint (I will post about my new love affair with Mint later).

Hi there,
The interest rate on your XXXXX credit card has increased by 7.59%. As of January 14, your old rate of 11.4% is now 18.99%. You may want to investigate ... Here is their number: 1-800-XXX-XXXX.
Cheers,
The Mint Team

Can you believe it, a whopping 7.59 percentage point increase. For goodness sake that is a 66% rate increase! Are they crazy? Is it me or has the Fed continued to lower the rates, which technically should have translated to a lower rate for borrowers. I thought the bailout money (and my credit card is with a recipient of those funds) was supposed to help liquidity in the credit markets. How are you helping liquidity when you're making money more expensive to borrowers? How are you increasing liquidity when you're putting the squeeze on credit card holders?

Oh well, my rant is partially in vain, but not really. It is the principle of the matter. Thankfully I saw the need to get out of credit card debt a few years ago so I'm not financially impacted by the rate increase. However, I loathe the idea that the credit card companies are universally raising their rates when the Fed is cutting them some slack AND giving them my hard earned dollars. For the record, I have never been late on a payment and I do use the card but I pay it off each month. As the old saying goes, something in the milk ain't clean!

Oh and guess what, the trifling bank has yet to send me any notification of the increase. Had I not registered with Mint, I would not have known, at least not this soon.

Ah crap, I don't know why I'm trying to be all discreet, the offender is Citibank. There, I said it. Has your rate increased on your credit cards?

Financial Nugget 8

2009-01-15T11:00:00.001-05:00

In the spirit of tax season I hope you find a little humor in this week's nugget:

Intaxication: Euphoria at getting a refund from the IRS, which lasts until you realize it was your money to start with.
~From a Washington Post word contest

Bailout Joke

2009-01-12T19:57:00.004-05:00

Last week the porn industry had the audacity to ask Congress for a $5 billion bailout! Think I'm kidding...check out this story. The entire "bailout" was a joke from the beginning, another twisted chess move in the game of corporate abuse and greed. Seriously, who gets to run a business in the ground and then get a $350 billion bonus from the taxpayers - with no accountability might I add. There has been no real accountability from the financial institutions who received this money and Congress has no idea how the money is being used, none. Oh and one more thing, President Bush is in the process of asking Congress for the remaining $350 billion. Yeah, since the financial institutions have done such a fine job with the first distribution, let's give them the remaining. Are you kidding me?! Dreadful, just dreadful.

Financial Nuggets - 7

2009-01-08T16:36:00.002-05:00

Hey everyone! This has been my first full week back at work since 12/19 so it's been a wee bit challenging getting back into the swing of normalcy. As we continue to fine tune our 2009 and beyond goals, let's be sure to keep this week's nugget in mind.

A goal properly set is halfway reached.
~Zig Ziglar

Enjoy your day!

Mayo-less Tuna Salad and Sweet Potato Surprise

2009-01-05T12:08:00.004-05:00

Okay so this post doesn't have much to do with finances but I promised when I started this blog that we would chat about money sprinkled here and there with flavors of other topics. So here goes, let's chat about food today.

Did I ever tell you how much I love food? I mean, I really like food ... like I really enjoy good food! I also enjoy cooking but I get bored with it very quickly. I'm always trying new recipes (although I rarely follow one exactly). Since I love food I'm always challenging myself to cook healthier meals and lighten up some of the old faves that we love here in the South.

Mayo-less Tuna Salad:
One day after a pretty grueling gym workout my menu plan called for a tuna sandwich. Wanting the tuna with the creaminess of the mayo but without the guilt I decided that I'd try the tuna using a little mustard and relish. Uhm -yeah - that didn't work. After a little more thinking, I grabbed some hummus I had in the fridge and put a tablespoon or so in it and it was fabulous! If you've never tried substituting hummus for mayo in your tuna, give it a try and let me know what you think.

Sweet Potato Surprise:
Me love sweet potatoes! It's nothing for me to make some homemade sweet potato fries and have them on hand to grab and go. Last Friday I started thinking of how I could make a flourless, eggless, sugarless sweet potato cookie, croquette, latke, or whatever, just something natural and delicious. My mind started percolating and I began to imagine how to accomplish this. Last night I put all of my thoughts together and came out with a pretty nice sweet potato surprise. Unfortunately I did not measure anything but I used the following ingredients:

1 and 1/2 mashed sweet potatoes ( i baked first then mashed them w/a fork)
approx 1/2 mashed banana (used for sweetness)
approx 1/2 cups of oats (used Quaker oats 1 minute quick cooking oats)
raisins, walnuts & pumpkin spice

I mixed all of the above ingredients together. I then took a measuring spoon (tbs) and scooped out little balls and placed them on a cookie sheet lined with wax paper. I put the balls in the fridge for a few hours - to harden up a bit. Afterwards, I sprayed a nonstick skillet with Pam and put the balls in the pan, flattening them with my fingers into a little cookie shape. I also baked a few of them using the same technique (I preferred the skillet method best). After a few minutes on each side in the skillet, I removed them with a spatula and viola - I had a wonderful sweet potato surprise! It was so nice having a guiltless, all natural, healthy snack! If you're used to eating sweet potatoes with lots of sugar, you can top the "cookies" with some Agave Nectar, which is an all natural sweetener derived from the Agave Cactus plant. You can even eat the mixture in it's "cookie dough" form ... I did and enjoyed it like I was eating cookie dough.

I plan on playing with this concept even more. Another variation could include using peanut butter rather than sweet potatoes and making peanut butter balls. I wouldn't suggest "cooking" the peanut butter mixture but they would make great balls or squares after they've been refrigerated. Honestly there are many different ways and I plan on exploring several more. After all, a recipe is nothing more than a list of suggestions;-).

Have a wonderful day!

Financial Nuggets - 6

2009-01-01T18:56:00.004-05:00

Happy New Year everyone! As we begin this new year with new energy and motivation to create, modify, or maintain pre-established goals, I thought the following quote was very timely.

There are plenty of ways to get ahead. The first is so basic I'm almost embarrassed to say it: spend less than you earn.
~Paul Clitheroe

Ending '08 With A Small Bang

2008-12-31T19:42:00.001-05:00

So I finally called my phone company to remove the voicemail ($6) and maintenance ($7.50) services that I discussed in the Every Penny Counts post. When the customer service rep asked how she could help me, I told her that I was interested in reducing my monthly bill but not at the expense of upgrading or getting additional services to bundle. To my surprise she said "okay, let me see what I can do." She then rattles off the following:

We can reduce your local service from $35 to $26;
We can reduce your unlimited long distance from $21.99 to $9;
Your voicemail is $6, we can reduce that to, $0 (yes, zero);
The maintenance plan is $7.50 but that will increase to $9.99 if you choose to keep it (the increase is due to the additional coverage of the DSL modem);
The DSL you have is $32.95 and we can reduce that to $27.95 (my company pays for my DSL so this doesn't impact my monthly budget, however the $5 savings is still welcomed)

The total phone savings per month is $30.50, $5 for my company and $25.50 for me! I was calling to reduce my services and save $13.50 but I get to keep all of the services and save $25.50 instead! How awesome.

Feeling pretty good about my conversation with the phone company, I called Directv to see if my luck would continue and guess what, they offered me a $10 per month price reduction, plus free premium channels for 6 months. My guess is that either the recession or cable is creating some customer reductions for them and they are trying to hold onto those of us who remain. Whatever the reason, I'm happy to be a beneficiary of their generosity;-).

In total, there will be an additional $35.50 added back to my monthly budget for 2009. The $35.50 monthly will yield an annual savings of $426, which will be used as extra principal payments on my mortgage. Paying the additional $426 in principal payments will save me approximately $1,400 in interest payments. Woo Hoo!

Regifting - Yea or Nay?

2008-12-30T10:15:00.003-05:00

Now that the holidays are coming to an end and all of the presents are unwrapped, I thought it would be a good time to chat about regifting. Let's get straight to the question, is regifting acceptable or not? Do you regift? Would you be offended if someone regifted or returned a gift you gave to them? I am very curious to hear your opinion.

Personally I think regifting is okay. In my opinion, once you give someone a gift it is their gift to do whatever they please with it. If you give someone a gift with stipulations or expectations on how they are going to use it, is it really a gift? Again, I'm just posing the question here, realizing that there is no universal "right" answer, but rather a right answer for each person.

A few reasons why I may regift, return, donate, or even sell a gift given to me are:

I don't like it. Maybe it's a piece of clothing, jewelry, bath and body goods in a fragrance that is unappealing to me, etc.
I cannot use it. I had an aunt give me a butter dish one year, and I was 16 years old! Are you kidding me?!
It's something I have already. A very good friend (who actually reads this blog) gave me a mini cocktail bar set for my birthday one year. Well I had one already, a pretty nice one too. Unfortunately since I already have one, the one that she gave to me as a gift will most likely be at the spring garage sale in a few months. Sorry friend, you know I love you;-).
I don't want it. Yep, sometimes this happens. It's not that I don't like it per-se, or that I can't use it, or even that I have something similar, I just may not like it. A good example here is an I-Pod that I regifted. I'm so not quite the techie person and I already have a smart phone (i.e. Palm Treo). I just can't take the thought of carrying around 2 and 3 pieces of electronic equipment throughout the day. LOL.

My disdain for clutter will not allow me to keep things hanging around the house just because it was a gift. I believe in finding a use for things. Luckily for me I don't have to regift or return gifts given to me often. Those whom I'm blessed to receive gifts from generally do a good job of picking items that they know I'll enjoy. However, once the gift is given to me, I take full ownership of it; I have complete autonomy to do whatever I want to with it because that's the definition of a gift to me. If regifting is not in your code of etiquette, is there a statue of limitations when the ban is lifted? I shared the following story with Abby at I Pick Up Pennies, she too blogged about regifting.

I have an aunt who wanted to help me purchase odds and ends when I moved into my first apartment after college. Since I lived with her for a couple of months, I knew that she had many boxes of unused dishes in the closet of her spare bedroom (from places like K-mart and Wal-mart). Because her heart is generally bigger than her purse, and there was no talking her out of getting me some household items, I suggested that she just give me a box of unused dishes out of the closet. Her response was "Oh no, I can't do that. Those dishes were given to me as wedding gifts." (It's important to note here that I did not know those dishes were wedding gifts because it had been 5 years since she got married. I would have never suggested them had I known they were wedding gifts). She got married in our small hometown so there was no such thing as a wedding registry. From the looks of the unopened boxes, it seems that everyone must have given her dishes and towels. Well my dear aunt went on and purchased me some dishes anyway. As of today, she's been married 14 years and has moved 3 times ... and those dishes are still in the closet of her spare bedroom.

Financial Nuggets - 5

2008-12-26T23:11:00.001-05:00

I hope everyone had a wonderful Christmas holiday. I spent this entire week under the weather so my plans were rearranged. Nonetheless I have so much to be thankful for and even though I was a little ill, I had an opportunity to rest and take it easy. This week's financial nugget comes from fellow PF blogger Sharon Rose.

Slow progress is better than no progress!

Whatever progress you've made in 2008, remain encouraged and continue pressing towards the achievement of your financial goals.

CVS Here I Come

2008-12-23T19:51:00.004-05:00

Did you know that you could get some great deals at CVS? Personal financial bloggers all over the blogosphere have posted about such deals. When my blog friend JPKittie over at Won't Go Down Without A Fight wrote a post on Sunday on how she purchased $115 worth of items for only $1.71 out of pocket, I had to inquire! JPKittie led me to Thrifty Mama's CVS 101 post, which spells out in great detail how to use the CVS Extra Care program.

I went to CVS today to get some Vick's Vapor rub (old school I know) and decided to get an Extra Care card as well. When I got my receipt, the cashier began explaining to me how the program works and all the many ways that I can accumulate bucks. At the bottom of my receipt was a $2 extra bucks coupon (apparently this was the amount of extra bucks that I received for the specific items I purchased.). Wow, so now I have a $2 credit the next time I go to CVS. Actually I may go tomorrow because they are having a sale on all Crest ProHealth products ($2.99). If I go and buy a tube of toothpaste then I can use my $2.00 extra bucks, plus a $1.00 coupon in the local paper and get the product for free (well, I'll have to pay the taxes but that's it). Oh but wait, not only will I get the toothpaste for "free" but I will also get another $2.00 extra bucks coupon because that's one of the promotions this week. How about that ... CVS will give me $2.00 to purchase toothpaste that I would normally purchase anyway.

If I've thoroughly confused you, check out the CVS 101 post.

Hey, this may be the catalyst I need to get me into couponing. Although I think it is a great idea, I've never been one to really use them. If these are the type of savings that I have been passing up, then I need to get on the bandwagon.

Is there anything else I'm missing out on?

The Cost of a Common Cold

2008-12-22T21:26:00.004-05:00

Generally I am not a person who gets sick, not even a common cold. I can go years without a single sniffle. The one caveat is when I'm moving a thousand miles a minute, not taking any time to rest. When I am continuously on the go, juggling 25 things at one time, trying to get 30 hours out of 1 day, my body will begin to break down and demand that it gets some rest. Seeing as though I completely ignored all of the warnings, my body decided that it needed a break Saturday night. It started with a slightly irritated throat and by Sunday morning it was a full blown runny nose, scratchy throat and heavy onset of fatigue. Since tea was the only thing I had readily available I had to send a friend to pick up some additional items.

Emergen-C: $12.99 (yikes!)
Tylenol Cold PM: $7.49
Robitussin DM: $7.49
Taxes: $1.96
Total Damage: $29.93

So where does this unexpected $29.93 fit in my budget? It's covered by my HSA contributions. My HSA account comes with a debit card so I use this card whenever I incur any medical expenses.

I'm off to my umpteenth nap of the day. Hopefully I can sleep through the night tonight.

Financial Nuggets - 4

2008-12-18T16:19:00.002-05:00

He who gets into debt is a servant to his creditor.
~Proverbs 22:7(b)

The waste of money cures itself, for soon there is no more to waste.
~M.W. Harrison

Defining Diversification

2008-12-16T06:33:00.004-05:00

If you've managed to read any financial news in the US in the last 72 hours, then you have no doubt read about Bernard Madoff's $50 billion ponzi scheme! How many times have we heard the #1 financial principle "don't put all of your eggs in one basket" or to sum it up in one word "diversify?"

Many wealthy individuals, charitable trusts, family trusts, and other entities lost a substantial if not all of their wealth by investing with Mr. Madoff's company. (http://www.usatoday.com/money/industries/brokerage/2008-12-15-madoff-scam-ponzi_N.htm). Each time something like this happens (think Enron), we are reminded that our investments should be diversified. I used to think that diversification meant that you should not have a substantial amount of your investments in single stocks. I thought that if I had several well diversified mutual funds (i.e. industry specific, international, growth, balanced, etc) that I was properly mitigating my risk. Thanks to Mr. Madoff, I am beginning to redefine my thoughts on being diversified.

Currently 90% of my savings is in the stock market one way or another (401K, Roth IRA & Money Market Fund). Suddenly I'm not feeling so diversified, I mean all of my money is in the stock market one way or another. I know that I may be diversified within the stock market, but still, all of my eggs are in one basket. Being a woman of action, I am now on a quest to reallocate some eggs into other baskets...what baskets...that's the homework.

Are all of your eggs in one basket? How do you define diversification?

Let the Payoff Begin!

2008-12-15T08:11:00.005-05:00

It's official, operation payoff mortgage has begun! I'm mailing my first extra principal payment today. Having goals work to my advantage because they tend to create a healthy discipline and drive in me. Generally I'm a goal keeper so once I get started, I stay the course until it's achieved ... assuming the goal still makes sense.

Do you set and keep goals?

Financial Nuggets - 3

2008-12-11T19:19:00.005-05:00

We must all suffer from one of two pains: the pain of discipline or the pain of regret. Discipline weighs ounces - regret weighs tons.
~Jim Rohn

Budgeting is people telling their money where to go instead of asking where it went.
~John C. Maxwell

Thoughts or comments?

Paper or Plastic?

2008-12-10T18:30:00.003-05:00

"Studies show that we spend more using plastic rather than cash." Have you ever heard that statement? I have and each time the point remains the same but the statistics change (i.e. 18% more, 32% more, etc). The primary explanation is that there is no immediate emotional connection with using plastic like there is with cash. Honestly I'm not sure if the statistics are accurate or even true because I know people who swear they spend more using cash and I know others who swear they spend more on plastic?

As for me, it really depends on what I'm buying and where I'm shopping. At the grocery store I absolutely, positively must use cash if I'm going to stay on budget. Every single dag-blastic time I use my debit card, I over spend. The other sore area for me is restaurant eating. Hmm, are seeing a theme here? Food apparently gets me into trouble (hey, what can I say, a girl loves to eat:-). I cannot think of any other area where I have to be that adamant about using cash. Actually most of my transactions are either online bill pay or cash. I do use my debit card but I primarily use cash. Over the years I have become more disciplined with my spending. Excluding the aforementioned exceptions , I do pretty good either way, paper or plastic.

How about you? Do you tend to spend more when you use plastic versus cash?

Every Penny Counts

2008-12-08T13:50:00.005-05:00

I'm a "paperless" kind of girl. I don't like clutter and I detest junk. If I can get an electronic copy of something, by all means, please deliver it to me that way. Most of my bills are sent to me electronically or I get an e-mail letting my know that my invoice is ready for viewing. On Saturday I guess I was bored or something because I decided to look at the details of my AT&T bill. Now my phone bill does not change materially each month, it may fluctuate a couple of cents or maybe even a dollar but it's pretty much the same. Turns out my boredom was not in vein because these two items caught my attention:

$6.00 - voicemail service
$7.50 - inside maintenance plan

It's been a very long time since I reviewed my phone bill with this much attention (can you say 5 years). Let's do the math, $6 + $7.50 = $13.50 per month * 60 months = $810!

That is enough money to pay an additional 6.5 months of principal payments* on my mortgage. Guess who's about to get a call from me? You got it, AT&T. Oh, did I mention that I have an answering machine at home? Yeah, it's electronic and connected to my cordless phone. It's been "off" since I had the phone.

*I have a 30 year mortgage which equals 360 payments. When I say extra payments, I mean extra principal payment. If you look an amortization schedule, you will see that each total payment is comprised of interest and principal. For example:

Monthly Total Payment = $1,000
1. Jan: Interest $900 ....... Principal $100
2. Feb: Interest $897 ....... Principal $103
3. Mar: Interest $890 ...... Principal $110
4. Apr: Interest $883 ....... Principal $117
so on and so forth until you get to payment # 360.

If I paid $1,000 for December's mortgage plus an additional $323, then I have paid 3 extra principal payments (Jan - Mar). When I send in my $1,000 payment in January, I've moved 3 months down the amortization table to April or payment #4, and have saved myself $2,687 worth of interest (add Jan - Mar's interest). My payment made in January will be broken up as $883 to interest and $117 to principal.

Think of it this way, the amortization table tells you how much you paid to borrow the related principal amount. Taking #1 above, essentially the bank is charging me $900 to borrow $100. For February, the bank is charging $897 to borrow $103. When you prepay principal, you do not pay the related interest. Ah ha!

Budget Buster!

2008-12-05T08:24:00.004-05:00

Sighing....

I did it again! I went to the grocery store (1) without a list and (2) without cash. Guess what happened? I busted my budget wide open. My grocery budget is $50 a week and whenever I violate those two rules, I lose. After years of trying to control my tendency to overspend at the grocery store, you would think I would do what I know works for me but noooo, I'm still going around in circles.

I went into the grocery store to get 2 ingredients to make some chicken tortilla soup, 2 ingredients! By the time I checked-out, I had a cart loaded with stuff and a tab of $117.32!! Talking about budget buster. There is no justification, this is nothing more than bad habits not going down without a fight.

How do I handle senseless budget busters...I take it out of my blow money! Yep, I blew it so oh well. On a positive note, I won't have to go grocery shopping next week so I'll sort of "add" that $50 back to what I overspent. However, let us not get it twisted, it is not a good habit to spend money before you have it.

Do you have any categories in your budget that tend to run amuck without careful and focused attention?

Financial Nuggets - 2

2008-12-04T06:53:00.005-05:00

The purpose of a budget is to help your money to grow. It is to assist you to have your necessities, and to the extent possible, your other desires. It is to enable you to obtain your most cherished desires by defending them from your casual wishes. Like a bright light in a dark cave, your budget shows up the leaks in your money and enables you to stop them and control your expenses for definite and gratifying purposes.

~Author George S. Clason...The Richest Man in Babylon

***The book was written in the 1920's so the above quote was revised for modern language (i.e thy to your, thee to you, etc).

Any thoughts or comments?

Recession Proof

2008-12-03T05:29:00.005-05:00

Surprise, Surprise, Surprise, the country is in a recession. Oh and get this, the country has been in a recession since December 2007. Hmm, I wonder why they waited 12 months to finally admit the state of this economy. Are you surprised? I'm not.

Several people have asked me my thoughts on the recession. It’s simple; I have chosen to opt out. That’s right, I am opting out of the recession … as in not participating. Regardless if the country is in a bull market or a bear market, the choice is always available to most of us rather or not we experience a personal recession. The last time I was in a personal recession was during the last bull market, go figure! Consequently, I learned that it’s not wise to leave my finances up to chance, the government, an employer, or even a well-meaning financial advisor. I am the CEO and CFO of Me, Inc.; it is my responsibility to actively manage my business (even if I solicit the help of others).

A few tips to avoiding a personal recession:

1. You are the boss so take control. Organize your finances, create a monthly budget, and commit to keeping it.

2. Pay off debt, especially credit cards! Period.

3. Increase your financial knowledge and practice what you learn. The rate of return on this action item is infinite.

4. Make temporary sacrifices (for example, when gas prices were ridiculously high, I switched from Dove soap to Tone and from Charmin tissue to Scott (extra soft of course:-). These were proactive, temporary changes to help accommodate the increase in my gasoline budget.

5. If applicable and necessary, increase your income.

Obtain a new job or get an additional job

Sell something – garage sales, eBay, craigslist, etc

Provide a service – pet sit, cater, decorate, personal shopper, ghostwriter, baby sit, clean homes, etc.

6. Start today! It's never too late.

Are you actively managing your Me, Inc? Do you have any tips to share?

Who Moved My Cheese?

2008-11-30T18:03:00.008-05:00

Remember a couple of posts back when we chatted about my annual check-up? Part II of that check-up is analyzing who moved my cheese ... out of my pocket ... and into theirs. Here's the snapshot:

Investments......................30%
~~Charitable Contributions (yep, I consider them investments), Retirement, HSA, Non-Retirement Savings & Mortgage Accelerator

Housing.............................26%
~~Mortgage, Utilities, Lawn Care, Pest Control & Cable

Taxes and Benefits.............25% (single w/no kids, what can I say)
~~Fed & State Taxes, FICA, Medical, Dental, Vision, FSA & Parking

Personal..............................9%
~~Personal Care, Blow & Vacation

Car......................................6%
~~Insurance, Maintenance & Gas

Food....................................4%
~~does not include eating out, that is allocated as "blow"

Looking at this snapshot tells me a few important things.

My spending is in line with my personal values. It's important to me that I not only invest in myself but that I invest in others as well. Now that I only have a mortgage, I have more resources to fund my dreams and passions, give to causes and organizations that are near and dear to my heart, as well as give to individuals who may be in need.
I literally live on less than 50% of my income. Excluding investments and taxes, my living expenses account for only 45%, or only 36% if you exclude the "personal" line item. HOT DOG!
The 9% I spend on yours truly is absolutely okay. I worked hard to pay off my debts and implement a financial plan that would allow me to win with money. I've been on both sides of the fence, a miser and a spendaholic, but now I'm at a healthy balance. For about 20 seconds I thought about reducing my "personal" budget to pay off the mortgage even faster but 21 seconds into it I completely abandoned the thought. I'm all about preparing for tomorrow, but I'm also about enjoying the journey. Okay, I couldn't resist, here's a quote for you "The journey is just as important as the destination," author unknown.

Do you know who moved your cheese? It's okay if you don't like who's moving your cheese now, just be sure to put a plan in place that will help you get where you want to be. I began my journey in June 1999 and failed two times before I could finally declare victory in February 2006 (if you haven't already, read http://mymoneychat.blogspot.com/2008/11/my-wealth-building-strategy.html for more details.)

Ebenezer Scrooge Platform

2008-11-23T11:37:00.004-05:00

I read a humorous post from Clark Howard, a nationally syndicated consumer advocate radio show host. Below are a few snippets from his "2012 platform "(no, he is not seriously going to run).

• Spend only what you make -- In a Howard administration, your president would pass a balance budget amendment to the Constitution. We'd become a pay-as-we-go country -- instead of doing the opposite as we have for years.

• A flat income tax policy -- The flat tax would be somewhere around 18%. There would be a high standard deduction so that those with lower incomes don't get pinched. A flat income tax would also eliminate the corruption in Washington and let you know what tax burden you have.

• No more employer-provided retirement plans -- Your president would require that every dime on a dollar your earn goes into a personal retirement account with ultra-low management costs and simple investment choices. ***(question...have you ever added up all of your annual earnings for your entire work history? I did a quick calc and let's just say that I wouldn't be mad if I had saved 10% of my earnings since I began working. After all, we are required to "save" 7.65% for SS & Medicare but those funds are not set aside in a personal account. I think I like the 10% personal account better.)

• Just say no to socialized medicine -- there would be just 12 health plans offered: 3 HMOs, 3 PPOs, 3 HSAs and 3 of the traditional 80/20 splits. Every insurer would have to sell identical plans. That way you could switch if your insurer's plan is too costly. There would be no redlining based on your past medical history. You wouldn't be required to have health insurance, but you wouldn't be allowed to buy it when you're sick; instead, you'd have to wait 18 months.

My favorite: In a Howard administration, we would all need to do a hard reset about the issue of personal responsibility vs. what we expect from government. Santa's sack is getting less and less full, so you've got to be your own Santa. Clark will be running on the Ebenezer Scrooge platform for 2012!

Here is the entire post - http://clarkhoward.com/liveweb/shownotes/2008/11/04/14378/

What do you think about the Ebenezer Scrooge platform?

Financial Nuggets - 1

2008-11-20T16:39:00.004-05:00

There are few accidental millionaires in the world. People who achieve financial independence, however they define it, make getting there a priority in their lives.
~Authors Stanley & Danko…The Millionaire Next Door

What each of us calls our 'necessary expenses' will always grow to equal our income unless we protest to the contrary.
~Author George S. Clason...The Richest Man in Babylon

Any thoughts or comments?

Investor Beware

2008-11-17T14:59:00.008-05:00

If you are investing long term, are comfortable with your current investment strategy and have a weak stomach for the stock market's volatility, then do not look at your accounts or you will be tempted to make an emotional decision rather than a financial decision. If you must take a peek, then I suggest focusing more on the amount of shares you are purchasing rather than the amount of "unrealized" loss you have suffered. Think of it this way, all of the stocks are on sale and you're getting more bang for your buck. A little paradigm shift is just what the doctor ordered for the investment blues;-).

Guess what happened when I looked at my statement today? I noticed that I purchased 50% more shares this month for the same amount of money I invested last month (I invest the same amount of money each month).

Trust me, I'm seeing double digit negative returns as well but I am comfortable with my investment strategy and I am investing for the long term. The market fluctuations may get a good frown or a raised brow from me, but I shall not be moved. What about you?

Non-monthly Expenses

2008-11-14T15:56:00.007-05:00

Are you familiar with the quote "people don't plan to fail, they fail to plan?" I find this quote to be very true in so many aspects of life, including our finances.

Many of us have expenses/bills that we pay on a non-monthly basis. I remember when those expenses used to be "emergencies" for me. Yeah, right! They were emergencies that could have been avoided so I ask you, were they really emergencies? Not at all, I failed to plan so consequently I planned to fail.

Since failure does not look good on me, I had to take a different course of action. Today I have a dedicated checking account for non-monthly expenses. Each month I deposit $210 into this account. Most of the costs are known but there is one that is unknown, car repairs. I drive a 10 year old car so I can reasonably assume that there could be maintenance costs above and beyond oil changes and tire rotations. If the car maintenance is more than the accumulated balance, I can tap my "car fund." My car fund is in a designated savings account. This is where I save money for the sole purpose of purchasing my next car in cash - that's right, no more car payments for me!

It took some time for me to get my system in place. What used to be an emergency soon become an inconvenience; what used to be an inconvenience is now just business as usual. For example, when I had to pay $590 in October for my annual car insurance premium, I didn't even notice the payment. How do you handle your non-monthly expenses?

**If you can't read the picture's legend, U is unknown but probable. Also, "frequency" is how often I pay the expense, "amount" is the total amount on an annual basis and "allocation" is the monthly amount deposited into the designated checking account. The only exception is Trash, which is $54 quarterly. For some reason I didn't annualize the payment in the "amount" column (which would have been $216, i.e. $54 * 4)...perhaps I need to update my spreadsheet. Nonetheless, the allocation amount is correct at $18.

Annual Check-up

2008-11-11T19:14:00.006-05:00

Around this time each year I conduct an annual financial check-up to ensure that (1) I'm on track or exceeding my goals, (2) no major year-end adjustments are needed and (3) other items such as my e-fund and insurance policies are adequate. The results are as follows:

1. As of today, I have met all of my goals for the year! Anything else accomplished this year will be a bonus.

2. My homeowner's insurance company sent me a renewal notice with a 17% increase in premium. Hmph! Perfect timing. After calling around getting quotes from "reputable" insurance companies (side note...after AIG, I'm not sure what reputable means anymore), I realized that I have the best rate available for my car insurance but I hit a grand slam with my homeowner's policy. I was able to lower my rate by 20%; I saved the proposed 17% increase plus an additional 3% off of what I paid last year. Oh and I forgot to tell you, I'm getting more coverage and paying less money. Yes, more for less.

3. Okay, here is something a little unconventional. I reviewed my living expenses for 2008, took a snapshot of 2009 and determined that my e-fund is still 100% funded. Since this account is solely intended to pay my living expenses for 9 - 12 months should I need it, I am not interested in growing this account more than necessary. With that said, I have decided to take the amount above the necessary e-fund amount (basically the interest earned) and apply this to my mortgage. Remember I'm still trying to pay at least $100 a month towards my principal payments in 2009. The excess amount from the e-fund account will provide an additional $35.50 so now I'm up to $77.50 ($42 + $35.50) in extra principal payments monthly - still $22.50 shy but I'm getting closer.

Do you have an annual review process for your finances? If not, this may be a good time for you to do an annual financial check-up. Feel free to share any insights or best practices you may have with the rest of us. If you have any questions, share those as well.

Let's chat soon!

Oh My Gasoline!

2008-11-08T08:21:00.005-05:00

Could it be...is it possible...does this mean....that we are going back to the days when gasoline prices made sense?! Gas prices were below $2 in my neighborhood as of Wed 11/5. This is one case where I hope the downward trend continues. Are you seeing the same trend in your area?