Controversial title, right?

What I mean by that, is many people (myself included) are under a general belief that saving as much as you can in every area, is the best PF thing you can possibly do.

What we fail to mention is that we also have to have a balance that cannot be quantified by $$$$.

Generally speaking, people spend too much money, so this advice is helpful to most.

But what about us who already save at least 10% a year?

Should we go down to as far as we can, ignoring our wants, just to make it to saving 12% a year?

I could save even more but I don’t want to

I know I could save more money if I cut out even more in my budget, but frankly I don’t want to and I don’t need to.

Call me stupid or selfish, but it’s a choice I make because it’s my money.

For instance, I am well aware that spend on things that have no practical value or purpose, especially seeing that I already have the basics in makeup & toiletries, and clothing & accessories.

You have to have a balance

You have to spend on what enriches your life and makes you happy, or else, what is the point of having all that money?

For instance, I wouldn’t spend on a gym membership because not only would I never go, it isn’t something I enjoy doing, however that’s my personal preference.

For others, they might even feel guilty for buying a gym membership when they can do all of these free exercises at home, or outside, but they just simply prefer being in a gym.

After a workout, they feel mentally balanced, they like having all the equipment there, and it is just worth it to them, even if it isn’t the cheapest option optional.

To that, I’d say: Spend on that darn gym membership, already!

Conversely, just spending like crazy and going into debt for it and/or not saving a penny is not good either, but realistically speaking, not everyone can be frugal in every aspect of their lives all the time.

I applaud those of you out there (I know you exist!) who can do it, but I am definitely not in that group.

So what do you splurge on that you could easily cut if you had to?

Related Posts

 

Saving money on beauty

 

How to make saving money less painful

 

What is the most amazing thing you’ve done with your money?

 

Annoy yourself into saving.

 

There is such a thing as being too frugal

 

Saving money when you are traveling on business

You can contact me here or find me on Twitter via @brokeinthecity.

Come and visit my other blog: The Everyday Minimalist where I am living with less, but only the best!

© FB @ FabulouslyBroke.com for Fabulously Broke in the City, 2012. |
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In this DIY Friday, we will talk about one of the most lucrative DIY activities you can ever do in your life. Some DIY tasks will help you save a few pennies while selling your home by yourself and shortcutting the Real Estate agent will save you thousands of dollars. In most cases, you can save over $10,000. I personally saved $16,245. Here’s my story:

First House, First Agent, First Mistake

I bought my first house at the age of 24. It was definitely too small for our growing family (we already had my son, William and my wife got pregnant not so long after we moved). This is why we decided to sell our house only 6 months after buying it. This was, in and of itself, a big mistake. My wife and I were pretty young at that time and we thought that we needed the help of a professional. We were looking for someone who would guide us and help us get the best offer we could. We turned to a well known Real Estate agent. We sold our first house with an agent and it was a big mistake.

 
The commission paid on the transaction was 5% (taxable) on the selling price. At that time, we were selling at 184K so the commission including taxes was about $10,580 (5% + a 15% tax rate). For slightly over $10K we got:

-          An average selling price (we didn’t sell over the market).

-          No extra negotiation skills (he was at the end of his 6 months mandate and rushed us to accept the offer as is *to make his commission*).

-          Confusion with the buyers as for the moving date (since we had to go through our agent and the buyer’s agent to negotiate dates, I guess that one agent didn’t forward proper information).

-          Wrong paperwork (there were mistakes made by the agent while providing paperwork).

I don’t know about you, but $10,580 sounds a little bit expensive for this kind of “professional expertise”. But it’s okay as we were scared and selling a house sounded highly complicated. We thought that we could make a big mistake while trying to save a few thousand.

Second House, No Agent, More Money in My Pocket!

We sold our second house roughly 4 years after we bought it. We wanted to move to another city in order to have more land (I’m a big fan of nature). Frustrated from our first experience, we decided to sell our house ourselves. We used the service from By The Owner (Canada) – I don’t get any compensation for plugging the link by the way, this is truly what we did and I really enjoyed my experience. This was great as we didn’t have to bother taking the right pictures or attracting visitors as By The Owner gets a lot of traffic. My house was actually seen by over 200 new visitors a day. In 10 days, we had 3 visits and the house sold for the average market price. This was a great experience and we saved $16,245 based on a 5%  commission rate minus fees incurred by selling the property (which was roughly $2,500 including home staging). While selling your house by yourself is a great experience and you can easily save $10,000 in the process, there are a few pointers you need to consider before jumping into this adventure.

Here’s How We Saved Over $16,000

Step #1: Assess Your Property

I know… you really like where you live and your house/condo shows tons of nice features that others don’t. Unfortunately, having a well decorated house will accelerate the sales process but you might not sell incredibly higher. In order to find the right price, you need to look-up other properties in your area with similar points such as:

-          Property size

-          Living space

-          Equipment (central A/C, garage, heating system, etc)

-          Number of bathrooms (don’t laugh, it’s very important!)

-          Neighborhood

With the following characteristics in mind, you should be able to find similar properties for sale in your area. I suggest that you print their profile and present them to a potential buyer at the time of price negotiation. If you base your arguments with proof, you will have a better chance of getting your price. Remember that you are seeing the “for sale” price, not the “selling” price. If you put your house for sale at $350K, don’t expect to close the deal for that amount .

Step #2: Home Staging

I’ll prepare a full post about home staging next week as it is a sub DIY topic. Home staging is very important in order to help the potential buyer to see the property as his already. Don’t be afraid to de-clutter your rooms and ship the “extra” boxes to your friends house temporarily. Buyers want to see big rooms. Remember; you want to sell your house, not your stuff!

Another trick that doesn’t cost much is to paint the house to freshen up your property. By selecting light colors, you will “create” more space in each room. We spent a weekend on painting and packing unnecessary stuff in order to make our house more attractive.

Step #3: Get Ready – Put Your House For Sale

I decided to use the By The Owner service because I knew that putting a “for sale” sign in front of my property wasn’t enough. On the other hand, 85% of potential buyers look for properties on the internet. By using a web company, you also get a lot of support. We had templates for offers, counter-offers along with addendums. All you need to do is “fill in the blanks”. The best part is that the service has evolved and you can also call and speak to a representative that will help you to put your house up for sale through their website and how to fill the documents.

Don’t hesitate to add a lot of description to your internet page. This is how you will convince people to call you for an appointment. Before clicking on the “publish” button, make sure you know where your limits are in terms of price, occupation date, inclusions/exclusions, etc. These points are often negotiated with the buyer.

One last point to consider during this step is to gather all paperwork relative to your property. It is important to have everything handy if a potential buyer asks specific questions. Prepare a folder that you will keep close by during each visit.

Step #4: Wait & Resist

The very first people who will call you in regards to your property will be… Real Estate agents! They will tell you that they know the market, that they can assess your property value for free, that they have potential buyers but want to visit the house first, that they can sell your house for much higher, etc. The last argument always makes me laugh. Let’s say you sell for $350K by yourself. If the Real Estate agent is to sell at a higher price, he needs to sell it at least for $372K so you can break even and have $350K in your pocket (assuming a 5% commission rate + 15% taxes). If you have done your homework correctly, there is no way an agent could sell a house at 380K (so you can at least get an added value of 8K for doing business with a third party) if you are selling your house at 350K. If it’s the case, you will sell your house in 48 hours as it will be a great deal for the buyer!

This is why you need to be patient and wait. Don’t let your emotions take over and make you sign with a realtor. You will sell your house, just give it some time. Waiting is probably the hardest part of selling your house by yourself. You have to handle the anxiety by yourself and not surrender to the eighth call from a Real Estate agent!

Step #5 Offer – Counter-Offer

Another emotional part is the negotiation rounds. When you use a Real Estate agent, it’s “easier” emotionally as you don’t have the buyer in front of you. But I’m not ready to pay 10K for neutrality! You will get an offer on your property and it will be lower than the asking price. This is why you have to be ready and bring facts to the table to justify your price. It’s hard to debate the sale of a property with 3 comparables showing the same price!

Step #6 Enjoy the Free Money!

Once the offer is accepted, the regular process starts. The buyer will most likely order an inspection while you will be asking for a mortgage approval from his bank. There is one last meeting to make sure that all conditions on the offer of purchase has been completed and you then set a meeting at the lawyer’s office.

You can then enjoy the money saved and shop for another house  ;-).

Readers, would you sell your property by yourself or with a Real Estate Agent?

Next Friday, I’ll talk more about how we did some home staging and the cost for everything.

Stay tuned!

image credit

image credit #2

Related Posts

 

DIY Fridays – Do You Workout at Home to Save Money?

 

Why do you rent instead of paying for a home?

 

The Stability Argument: Buying a Home vs. Renting

 

Looking into a hypothetical Stay-At-Home-Mom’s Pay

 

Cook at home or Eat out?

 

Making food for cheaper at home or eating smart when eating out

You can contact me here or find me on Twitter via @brokeinthecity.

Come and visit my other blog: The Everyday Minimalist where I am living with less, but only the best!

© TFB for Fabulously Broke in the City, 2012. |
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You’re a rare creature indeed if the idea of networking excites you.

Being dropped into a room full of strangers and left to converse with them is terrifying even for the most courageous of us.

It’s uncomfortable. It’s uninteresting. It’s unnatural. Too bad it’s not also unnecessary.

Regardless of how much you hate networking, you realize it’s an essential component in growing your business or landing that dream job.

And so, through gritted teeth, you network.

But here’s the problem. Because you’re totally bored and completely put off by networking, you’re doing it wrong. Which is perfectly understandable since you haven’t learned how to do it properly.

Here are five mistakes people make when networking and how to correct them.

1. Trying to take the “work” out of networking

Networking is more than telling others what you do, what you’d like to do and then shoving a business card in their face. It’s about building relationships.

Whether professional or platonic or romantic, relationships take time. They take effort.

You don’t create lasting connections with people by asking them for a favor as soon as you meet them.

Before you attempt to use someone, make yourself useful.

How can you help them accomplish their goals?

You don’t have to give them your million dollar business ideas, but you should add value to their lives. You could recommend something as simple as a newspaper article on a topic you know they’re passionate about. Or introduce them to people with whom they share similar interests.

It’s human nature to want to help people who help you. Show that you’re an excellent resource to others.  And when you really need a favor, you won’t have to ask.

2. Failing to follow up.

So you had an exhilarating conversation with an influential employee of a company you’d like to interview with. Six months from now, you’re all but forgotten if you don’t stay in touch.

You don’t have to grab lunch with everyone you meet.

You don’t have to send an “It was a pleasure meeting you” email to all the random people you encountered at a professional event. If it makes you feel any better, they probably won’t remember you anyway.

With that said, how hard is it to “friend” someone on Facebook or connect with her on LinkedIn or follow her on Twitter? Are you too busy to reply to her status updates on social networking sites? What does it cost you to subscribe to her blog and comment on relevant articles?

Maintaining contact via email isn’t always necessary, but it is an option. (Remember when our only means of contact were either in-person, over the phone, or a written letter? Eek!) Unless someone was particularly helpful or amusing, I generally won’t follow up via email. There’s too much pressure to write something thoughtful.

3. Looking like a loser.

Whenever someone tells me, “I hate networking,” the next statement out of their mouths is almost always, “I don’t know what to talk about.”

Engulfing yourself in a game of Angry birds won’t make you look any less loserly.

And dragging along a friend who has no business at the event other than to keep you company makes you appear immature and codependent. So don’t think these actions are viable alternatives to actually speaking with other professionals.

The funny thing is if you ask the right questions, you won’t have to do much talking at all.

To get the conversation started, I’ll introduce myself and ask the person what motivated them to attend the event? If I spot the name of their company on a name tag or an item their carrying, I may ask what their company does.

From the information they’ve provided, I’ll either ask them more questions to keep ‘em talking or share related information about me. At this point, the other person is probably asking me questions, we’re learning things about one another, laughing and having a grand ol’ time.

If what I’ve described sounds fantastical, there is another solution: eavesdropping.

You’re not listening for gossip. You’re listening for a commonality you share with the other individual. At some point, you can break the ice with “I heard you mention something about ______. I find that fascinating. Can you tell me your opinion on _____?

See how easy that is?

4. Waiting until they need something to start.

Are you so remarkable everyone in a room will remember you the first time they set eyes upon you? Maybe. But us mortals have to work a bit harder to get people to notice us.

You don’t want to wait until after you’ve thrown a pomegranate margarita in your boss’s face to start building your network. It should already be in place.

I heard we’re exposed to a marketing message an average of seven times before we decide whether to purchase the product or not. There’s some debate on whether that assertion is true, but I’ll bet you’re exposed to the things you buy several times before you open your wallet.

Look at networking the same way. When someone decides to help you get something you want, they probably didn’t make that decision upon your first meeting.

5. Thinking networking only happens  at “networking” events.

Networking can happen anywhere at any time.

If you’re attending a class, waiting in line at H&M, whatever. You can meet people at church, at your favorite charity, the gym, wherever.  If you’re alone, don’t just sit/stand there staring into space. Introduce yourself to the person next to you. Take advantage of the chances you have to engage new people.

What tricks do you use to make networking easier?

Related Posts

 

Giving up before even trying: How people let money slip through their fingers

 

Are people wealthier because they’re business owners (or self-employed)?

 

Reader: How to network even though you (think) you hate it

 

How to Make Money Like a Man

 

How to Make Money Online: Part One

 

Nice guys (and girls) make less money

You can contact me here or find me on Twitter via @brokeinthecity.

Come and visit my other blog: The Everyday Minimalist where I am living with less, but only the best!

© Shawanda for Fabulously Broke in the City, 2012. |
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SELL EVERYTHING YOU CAN.

Then…

1. Sort everything by it being worn out, tired, torn, pill-y, or faded. Toss.

No one should be (or will want to be) wearing those clothes. Even on sale for $2.

2. Now sort by what fits and what doesn’t — I’m about to toss a couple items, myself.

Things that don’t fit, are items that are baggy or too tight in areas, or just shows off areas you aren’t thrilled about because it’s highlighting a muffin top or something.

A good rule to keep in mind is if you have to keep adjusting yourself when you’re out (bra strap, hiking skirt down or up, etc), then either get a new bra that fits so you stop doing that, or toss the item.

3. Now sort by what feels good and doesn’t

Certain materials that don’t stretch or are too thin, should go. Even if it fits, but you feel uncomfortable, itchy or scratched in it, then donate it.

4. Now sort by what LOOKS good on you and what doesn’t

Things can fit but not look great, either by cut, colour or pattern. For instance, I’m an inverted triangle (straight up and down with slightly larger than normal looking shoulders), and I should ideally toss everything with skinny straps because it accentuates my broader shoulders.

I keep only the patterns and colours I like, because I can always wear them under a sweater or a jacket, but if you want to be ruthless, get rid of them.

5. Now re-assess the situation and try to fit everything into the suitcase

Look over what you have left.

I’d try to fit everything into a suitcase. If it won’t fit, you need to figure out how much more you need to pare down by — 25%, 50%, etc… and then try again with this strategy:

Do you really need 3 black wrap dresses? Not really. Pick one, get rid of the other 2.

I’m horrible at this stage.

This is where I think: But I could use 5 dresses in different cuts and sleeve lengths in cobalt blue!

But in reality, I shouldn’t keep them just because of sleeve length difference.

You can apply this logic to shoes — do you really need 4 pairs of black boots in varying heights (ankle, knee-high, mid-calf) and heels (flat, 1″, 2″, 3″ and chunky heel) styles?

Or do you need 5 black tops, with only slight variations? If they don’t really look different from each other unless you peer up close, I’d say pare down in those areas.

Or if you have too much in one area — too many tops, too many skirts… pare it down, or decide to keep your variety, but you have to cut out clothing items elsewhere to make room.

Don’t do it all in one day or even weekend

One bite at a time.

Take it one weekend at a time, and don’t get frustrated when you get sidetracked or you can’t get everything done.

.. and don’t forget to congratulate yourself after every milestone

GOOD LUCK!

You can contact me here or find me on Twitter via @brokeinthecity.

Come and visit my other blog: The Everyday Minimalist where I am living with less, but only the best!

© FB @ FabulouslyBroke.com for Fabulously Broke in the City, 2012. |
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Hey people!

I want to try something for the next Fridays. The idea came from a cool discussion I had with one of my friends about saving money. We were discussing how people are trying to do everything themselves (the Do-It-Yourself or DIY movement) in order to save money. I’m actually a big fan of this technique but only to a certain extent. I sometimes find that it’s worthwhile paying for services sometimes as you need more specific advice or professional skills to achieve a certain task. I’ve tried to DIY many things in my life. Some with great success, others with great mistakes! So for the following Fridays, I’ll share my DIY adventures with you. Today’s DIY Friday is about working out at home.

Is it possible?

Are you just going to buy $1,000 of stuff that will collect dust in your basement?

Can you get “professional” results without a trainer?

It’s definitely not the easiest thing to do but I think you can make it. Here’s my story.

How I lost 35 Pounds and Got in Shape in 12 Months

Back in 2009, I was finishing my MBA. With 2 young kids (they were 2 1/2 and 6 months back then), a full time job and a full time MBA, all I wanted to do is to lay down on my couch or in my bed when I was getting back from work. This is how I got to 210 pounds in early 2009 (I’m 5’ 9’’). While I wasn’t the fattest guy on the block, I knew that I couldn’t continue this lifestyle any longer. In June, my MBA classes were done and was only left with my final paper to write. This is when I decided to take control of my health and weight and joined a gym.

huh?… I thought we were discussing a DIY method to workout at home?… bear with me a second… I’m getting there!

I started a workout program with a tight but feasible schedule: 1 hour per training session, 4 sessions a week. This wasn’t too much for my own schedule and I was going to get results. So in the span of 12 months, I lost 35 pounds and built muscle so I was THREE times stronger than I used to be (meaning I could weight three times what I started with). I didn’t take drugs, or shakes. In fact, I stayed away from extra protein and supplements too. I concentrated all my effort into 4 sessions of 1 hour a week. What’s the secret then? I never missed 1 training session in a year!

Now My Life Has Changed

Since 2010 (after my 1 year intense program), I have continued going to the gym with the same schedule. For 3 years, I’ve been changing my training program every 2-3 months to make sure I saw a constant progression. This was a true life changing moment as I’m not only in better shape physically; I’m also in a better shape psychologically. There is nothing better than running 30 minutes in the morning before going to work!

But now that I have 3 kids, I find it difficult to go to a gym, workout, take a shower, dress-up and go to work. This is a lot of time wasted in my day and it also cost me $60 a month. It was even more complicated for my wife as she can’t really leave the house with a 3 month old toddler to go to the gym (she is breastfeeding). So she asked me if we could buy a treadmill and put it in the basement. If my wife was going to workout at home, why wouldn’t I? This is why I decided to build my own gym at home. With my 3 years of experience in a gym, I knew I could do it.

My DIY Gym

You don’t need the big “pro set” to workout at home. In fact, you can build an awesome gym for less than $1,000. Here’s what I have in mine:

Treadmill: $600. This was our biggest expense for our home gym as I wanted a solid treadmill that could support my weight when I run full speed. This is why we bought a middle range treadmill. We waited until it went on sale and got it for $600 while it usually retails for $2,000. I think you need to aim for a $2,000 value for a good treadmill but you can easily find one for sale during “special events” or on Craig’s List where someone bought it and never used it (it’s incredible to see how much exercise equipment there is for sale on the web!).

Yoga Mat: $20. There is obviously a wide range of yoga mat quality along with a wide range of prices. I think that $20 is more than a fair price. My wife does yoga and I use the Yoga Mat for my abdominal exercises.

Training Ball: $30. The training ball is very useful for sit-ups, leg extensions and exercises for beginners. In fact, if you don’t do much weight, the ball can also be used as your “training bench” as you perform several exercises.

Bench Press, Bars and Weights: $280. Since I’m already in shape, I need to have 300 pounds in weights (50 pounds, 25 pounds, 10 pounds, 5 pounds and 3 pounds). I’ve found a kit on Craig’s List with the weights, a bench press, curl bar and 2 adjustable dumbbell bars. It was the perfect setup for someone who wants to do a lot of weights. If you are not too much in to lifting weights, I’d suggest you get small dumbbells with a curl bar. This is very useful to workout legs and shape nice shoulders .

Total cost of my DIY gym: $940

What I like is that I don’t need anything else; I can perform all my previous gym routines. Since I was paying $60/month for a gym membership, my home gym will be fully paid in 16 months!

But How Can You Build Your Training Program?

Buying stuff on the internet and building your own gym at home is the easy part. Creating an effective training program so you will get results and not hurt yourself is more complicated. This is the main reason why I went to the gym for 3 years and asked my trainer a lot of questions in order to understand why we combine some exercises and not others.

With this experience in mind, I then surfed the net to find “good programs”. It’s quite easy to find training programs, but you need to read a lot to make sure that you do the “right things”. It’s also easy to get hurt if you start training without knowing what you do. My wife really like Jillian Michaels DVD to create her programs.

On my side, I’ve noted my previous routines and improved them with information found on a few websites. In the end, the important thing is not to create the most complicated program on earth and train like a maniac. Keep your routine simple and increase the intensity at your own pace.

The Secret To Actually Working out And Not Buying Stuff for Nothing

Most people that try a DIY gym end-up selling it on Craig’s List. Why do so many people have great intentions but never achieve their goals? The answer is found in a single word: consistency.

I’ve tried workout routines at different times in my life and never succeeded to keep it up until 2009. The main difference is that I had a very specific schedule this time: Monday, Tuesday, Thursday and Friday from 6am to 7am. No excuses were good enough to not go. If I was sick, I was still going but I lowered my intensity instead.

So before you start your own DIY gym, start by establishing a rock solid schedule. If you want results, you need to workout at least 3 times a week at high intensity for 1 hour per session. The best time for me to workout is in the morning. I usually wake up at 5:30 and jump on the treadmill at 6am. At7amI head upstairs to shower and at7:30I’m ready to go to work. The trick is to find the best schedule for you and insert your workout session into your daily routine.

It’s been a month that I now train at home and see a huge difference already. I have more time during my day and didn’t have to cut back on my workout to achieve it. Even better: I don’t have to pay for the gym anymore! Oh… and the best part: I can eat my favorite chocolate cookies without guilt!

Readers, have you tried to workout at home? How do you find it?

image credit

Related Posts

 

DIY Fridays: Sell Your Home By Yourself

 

Save money by making your custom frozen meals

 

5 Powerful Tricks to Save More Money and Like It

 

10 Tips to save money on Groceries each month

 

Shopping strategies to save money, time and space in your wardrobe!

 

10 Things I Won’t Give Up To Save Money

You can contact me here or find me on Twitter via @brokeinthecity.

Come and visit my other blog: The Everyday Minimalist where I am living with less, but only the best!

© TFB for Fabulously Broke in the City, 2012. |
| Permalink | 13 comments |

Have you ever shared your desire to amass financial wealth and received the response, “Money can’t buy happiness.“

Is permanent bliss the expected payoff for accomplishing your goals?

After achieving your financial objectives, do you think you’ll experience everlasting joy?

Through the loss of a loved one, physical illness or the cancellation of your favorite TV show, do you trust your cash will comfort you?

Of course not. That’s silly.

But you wouldn’t knowingly chase a dream that’d make you unhappy.

Money won’t protect you from all of life’s disappointments. Then again, nothing will.

Why set such a ridiculous standard for money?

Many factors contribute to happiness. It’s okay to admit that money is one of them.

Although you may associate financial affluence with fabulous designer clothes or lakefront mansions, money also provides intangible benefits that are often ignored.

Money Talks. It says, “You did good.”

Money is so much more than copper, nickel, and cotton fiber paper.

To a certain extent, it’s a measure of your service.

I often log in to my PayPal account just to gaze at the deposit transactions. To me, those payments look like an enthusiastic thumbs up paired with a toothy grin. They’re my customers’ way of saying, “Thank you for what you do.”

Oh sure, there are people who receive outrageous sums of cash for destroying customer value.

And there are people who do amazing work for society who don’t even receive a living wage.

But sandwiched between the obscenely overpaid and the absurdly underpaid are people whose income fairly depicts their level of service.

Money Frees You

You wanna go where you wanna go, do what you wanna do, say what you wanna say.

You want to enjoy life without restraint.

It’s not always the case, but money grants you access to certain freedoms.

Recently, a friend and I were talking about the gentrification that’s taking place in his neighborhood.

If you’ve never witnessed it, here’s what gentrification looks like.

• Investors flock to a rundown neighborhood with desirable traits such as close proximity to a major job center.
• They snap up properties from existing owners in hopes of later selling or renting them at a higher price.
• No longer able to afford skyrocketing housing prices, people living in these areas, who are mostly renters, have to move.

Residents often claim they’re being pushed out of their homes (which they don’t own by the way) because of their ethnicity.

That’s a bunch of bunk.

If they had the funds to pay the new rates, they wouldn’t have to go anywhere. They’d be free to stay (or go).

But the freedom money provides isn’t just about being able to afford pricey real estate.

In many instances, without money, you’re stuck.

It gives you the mobility to pursue your passions.

To escape a life devoid of fulfillment.

To take risks.

Money Kicks Fear In the Chest and Builds Courage

I’ll be honest with you. A lot of things scare me.

• Not being able to feel my nose running on a cold, windy day.
• Passing out in a sports conditioning group exercise class.
• Losing my train of thought mid sentence while guest hosting a national morning talk show.

None of these fears have anything to do with money. And sadly, money won’t make them go away.

A lack of financial resources may be enough of an excuse for you to accept the unacceptable.

For years, I wanted to leave my job so that I could completely focus on my business interests. I didn’t hate my job, but I also didn’t want to spend decades in a profession that I had lukewarm feelings about.

I’ve always had the right to leave, but there were a few roadblocks standing in the way:

• Internet
• Food
• Rent
• Gas
• Health insurance
• Car insurance
• Shoes
• Taxes
• Other items necessary for basic living

The only way to tackle these “problems” is with money.

Once I scrounged up enough cash to pay my bills for a couple years, I found the courage to quit my job.

Despite all the good it provides and despite all the joy it spreads, money continues to get a bad rep.

They Say Money is the Root of All Evil

After hearing this nonsense your whole life, you start to believe money is inherently bad. And if it’s bad, how could it possibly be responsible for a positive emotion like happiness?

There are two problems with what “they” tell you about money.

1. They’ve misquoted 1 Timothy 6:10 of the Bible which says, “The LOVE of money is the root of all evil.”
2. Even when the quote is corrected, it’s still wrong.

Empirically speaking, there’s plenty of evil in this world that’d occur without money.

If You Want Money, You Have to Work for It

It would be a rare occurrence indeed if a perfect stranger handed you cash for no reason.

As indicated earlier, giving someone money is one way of expressing approval for her work. If you want more money, you have to work harder giving others what they want.

There’s nothing wrong with not wanting to work hard. Heck, work is exhausting.

For some, it’s much easier to feign contentment with their current financial state than to make the effort to change it.

Having A Lot of Money Makes You Seem Greedy

In order to get rich, you have to earn a lot of money. Then, you have to keep it.

You will not be wealthy if you spend all your money. 

But you already know that.

Surprisingly, that simple truth escapes many broke people. I can’t count the number of times I’ve heard a financially destitute individual rebuke a rich person for being rich. She contends the rich guy should give more of his money to charity.

Why?

Because “He doesn’t need all that money.”

What I find peculiar about people who say such things is their defense for not giving more of their money to the less fortunate. But they can’t. They spent it all on themselves.

Money can’t be the sole source of your happiness. But it can be used as a tool to buy what would otherwise be priceless.

What ways has money contributed to your happiness?

Related Posts

 

My First Money Manifesto: Never be in the dark about your money

 

The Paradoxes of Money & Women

 

Would you rather have more time or more money?

 

Everybody* has money

 

Sex and Money

 

What is the most amazing thing you’ve done with your money?

You can contact me here or find me on Twitter via @brokeinthecity.

Come and visit my other blog: The Everyday Minimalist where I am living with less, but only the best!

© Shawanda for Fabulously Broke in the City, 2012. |
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I am.

But wait, what’s a sneaky spender?

Someone who has a budget, has a plan, has categories and still manages to go over budget in areas she didn’t mean to.

The Journal of Consumer Research found that most people went shopping with two budgets in mind — an official budget, and a secret stealth budget that lets them go over by a certain percent.

33% to be exact.

WHAT!?!?!

So let’s say you go grocery shopping with a budget of $50, and you decide to put a couple of items in your basket that are treats. Unnecessary, fried, fatty, sugary, or all of the above, treats.

You get to the cash register, and the amount is $75, and not your $50 estimate.

You cry bloody murder, but you secretly knew you were going to go over by $25, and you allowed yourself to do so, because you had a second secret, stealth budget.

Of about 33%.

It’s double-budgeting

Kind of like keeping two budgets — your “ideal” and your “realistic” one.

It sounds kind of silly when I think about it, but I totally do this.

I expect to spend $20 on something, and I go over by $5, but I let myself do it, instead of putting something back.

Turns out I am not alone because about 75% of shoppers entered the store knowing they were going to buy more than what was on their shopping lists.

Solution for sneaky spenders

Lift the restrictions a bit

I give myself a set budget of $1000 a month, and for yearly expenses, I have a rough round number of about $1000 to cover them (dental, car insurance, apartment insurance, etc).

If I go over budget in one category, I lower categories in another.

I defer purchases that aren’t necessary for the next month.

I call them one-off expenses. Oops. Heh heh. Am trying to break myself of that habit.

The longer your list of items, the less you will spend impulsively

Don’t go in with a “hmm I just want to pick up some milk, and maybe some vegetables for my salad tonight”….

The more structured your “To Buy” list, the less room you will have in your sneaky second budget to spend.

The less items you have on your list, the more you will have in your sneaky second budget to spend on impulses.

Seriously!

I get as tempted as little as possible

Get in, and get out.

I try not to spend time just browsing, window shopping or looking. It always ends up making me tempted to spend impulsively.

But even if I make a mistake…

.. I don’t beat myself up over it for too long.

Sometimes I do need a little impulse release, so that I don’t feel totally restricted and then binge out of control.

See, even when I spend a little extra impulse money, I have a mental stop in my head that says: Okay, that is SERIOUSLY enough. Stop.

And I do.

Are you a sneaky spender?

You can contact me here or find me on Twitter via @brokeinthecity.

Come and visit my other blog: The Everyday Minimalist where I am living with less, but only the best!

© FB @ FabulouslyBroke.com for Fabulously Broke in the City, 2012. |
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When I was a teenager, I met my first girlfriend who actually became my wife. At that time, I was 15 and she was 17. This was a huge difference for many people. Even my parents were a bit concerned that I was dating a girl that was going to another school and was driving already! This is the first time I noticed that, while I didn’t mind, age does matter. A 2 year difference is far from being the end of the world, especially when you grow older. But how about a 10 or 20 year difference?

All right, I’m not asking you this question on a personal perspective (I’m not that nosy), but do you think that age matters at work? What happens when you are 10 years younger than everybody? Or worse, that you are a manager in your 30s and your team  average age is 45? If you are having prolific career, you will face this situation. And if you are about to retire, you might have a boss that is your daughter’s age. How do you gage that?

Feeling Like a Kiddo

I’m currently 30 and working as a private banker for a wealth management department. This job requires a lot of knowledge and impeccable professionalism. All our clients are worth over $1M and request the best service possible. I’m obviously the youngest guy in the department. All my co-workers are 40-45… even 50! It’s normal when you think about it since these are the people who usually have the most experience. In addition to that, most millionaires are over 45 so they relate more to an older advisor than the young guy who’s their son’s age!

It’s not the first time that I’m the youngest employee in a department. Each time, it has been the same thing; the older more experienced employees look at me so I really need to be good enough to be there. They are expecting me to “prove myself” before I can officially join the club. They are usually sceptical that I can do the same job as them since I can’t possibly know what they know, right?

In this environment, I’ve noticed that I was better off asking them for advice and their experience (even though I know what to do) in order to show them that I respect them and that they can show me some stuff. It starts the relationship on the right foot and helps to create bonds with older employees. On the other hand, the worst thing I ever did was try to show them what I have learned prior to working with them. I knew I was good and knew I could teach them some tricks to make them more productive. However, since I wasn’t part of the “club” yet, this was a very bad idea! When you are younger than everybody else, don’t show off, ask for advice and let your results speak for themselves. There is nothing like a job well done to prove people that belong to their circle.

The Difference Between Generations

When I did my MBA back in 2009, we had written a paper on the shock of generations. You would be surprised to see how the Baby boomers, Gen X’s and Gen Y’s think, work and interact differently. Acknowledging these differences is huge if you want to get along with everybody.

Turning Age Difference to an Advantage

While working with different ages is a challenge, it can be a huge advantage as well. Young workers are usually eager for promotions and results oriented. Older workers have proven themselves and prefer recognition to promotions. If you can build teams where you use a mentor-student formula, you can get the best of both worlds; the experience and knowledge combined passion and motivation.

In my last job, I benefitted a lot from the experience and knowledge of the other financial planner that was 57 while I was 28. She was able to help me in areas only experience could give me. It was like gaining 10 years of experience in 2 years. This is probably one of the reasons why they had picked me to be part of an older crew! On the other hand, my boss is about my age so at least, I can relate to him if I have any generational problems .

Have you ever had trouble dealing with age at work? How old is your boss? Is there a big difference?

image credit

You can contact me here or find me on Twitter via @brokeinthecity.

Come and visit my other blog: The Everyday Minimalist where I am living with less, but only the best!

© TFB for Fabulously Broke in the City, 2012. |
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Spring is here, and it’s time to go shopping.

After I shed my winter weight, I’m hitting the outlet and shopping malls.

At 5′ 9.5″ tall, finding clothes that fit me well is tough. Plus, my clothes, particularly pants, are pricier than those designed for shorter women.

Given the challenges – financial and emotional – many of us face when shopping for clothes, you’d think we’d take better care of them.

I’m the girl who’ll wear a holey shirt. Or throw on a pair of paint stained jeans. Or step out in a camisole that has a grease spot on it.

I’ll be the first to admit that my behavior is unacceptable for any self respecting adult. And it needs to stop today.

Knowing how to properly maintain our wardrobe is similar to knowing what to do with our money after we’ve earned it.

There’s only one problem. We don’t know how!

That said, ignorance is no excuse for dressing like a homeless person. So, I decided to educate myself on how to care for clothes.

This blog post is as much for the person who’s never learned basic home economics as it is for me.

Since the biggest mishaps happen around the laundering of clothes, that’s where we’re going to focus our energy.

Washing

• Try to wash everything in cold water. You’ll save money on your electric bill and extend the life and brilliance of your clothes.
• Lighten up on the laundry detergent, will ya? Using too much will leave a film on your clothes. Don’t blindly fill the cap to the brim without reading the directions on the bottle/box. Even then, you still may be able to cut back on laundry detergent.
• Stop over washing your clothes. You don’t need to wash them after every use. However, you should let clothes air out before putting them away. Please note: Not Dirty ≠ Clean. So, you still want to separate the clothes you’ve worn from your clean clothes.
• Don’t overload your washing machine. Fail to heed this advice, and you’ll lose twice: Once when there’s excessive wear on your clothes and again when you pull excessively worn, dirty clothes out of your washer.
• Make a habit of checking pockets before washing. You’ll find all kinds of stuff in there that can screw up your load: lip balm, tissue, money. Wait. Nope. Money is cool.
• Wash perspiration stains from fabrics as soon as possible after wearing. The longer you wait, the greater the likelihood it’ll permanently discolor the item.
• Inspect clothing and pretreat stains before washing. If you discover a stain after a wash, don’t dry the item, and don’t iron it. Treat the stain while it’s still wet.
• Use the Tide to Go Instant Stain Remover pen for mishaps that happen away from home. It’s effective and easily fits in your purse.
• Change out of your “good” clothes when you get home from work. (Yeah, this is the same advice your mother gave you when you arrived home from school.) If you’re going to cook, slip on something you don’t mind ruining. Or, if you have one, where an apron.

Drying

• If you hang dry clothes outside, turn them inside out to keep colors from fading.
• If you’re one of those people who ignores the “dry clean only” warning on garment tags, you should hand wash or machine wash these items on the “delicate/gentle” setting. Remember to use a mild soap and let air dry.
• Don’t use extra high heat to dry everything. Not only can the excess heat damage fabric, but it may also lead to shrinkage.
• Make sure clothes are completely dry before storing them in your closet or dresser drawer. Damp clothes can mildew and cause your other clothes to smell.
• Don’t use fabric softener on moisture wicking clothes, e.g., exercise apparel. It’ll cause the material to lose it’s “wicking” ability.
• Use the appropriate cycle on your washer and dryer.

Raise your hand if you don’t know what the cycles on your washer mean. *Throws hand in air*

To expand the useful life of your wardrobe, you should probably know what the different settings are for.

Washer/Dryer Settings

Regular: Use for moderately to heavily soiled cottons and linens.

Delicate: Use on delicate fabrics such as see through, e.g., lacy or sheer garments, or any other material that won’t hold up to vigorous washing. On this cycle, clothes are agitated and spun more slowly to imitate hand washing.

Permanent Press: As the name sort of suggests, this setting reduces the number of wrinkles in your clothing.

Air Fluff: Applies to dryer only. No heat is generated on this setting. Great for airing out clothes that are worn, but not yet ready for another wash. Forget about actually drying anything on this setting.

So there you have it – a few simple tips on how to care for your clothes.

What other helpful tips and tricks have you learned about caring for laundry?

You can contact me here or find me on Twitter via @brokeinthecity.

Come and visit my other blog: The Everyday Minimalist where I am living with less, but only the best!

© Shawanda for Fabulously Broke in the City, 2012. |
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If you are a nibbler, snacker or grazer like I am, you find that a lot of your grocery bill goes towards SNACKS — things you can grab in a pinch, eat quickly and feel satisfied without having to get sweaty and dirty a billion pots to cook a meal.

I tend to only cook twice a week for my lunches and dinners, but in between, sometimes I don’t want to eat the same thing over and over again.

So stock your fridge like a vending machine!

I like to stock it with healthy foods that are still tasty, and won’t break the bank or make me fat, so here is a short list of my rules:

Don’t buy it in the first place

I don’t buy chocolate or ice cream unless it’s once every 3 months. If I do, I’ll eat it. And I’d rather not spend the $6 on a tub of quality ice cream unless it’s a one-off treat for the summer.

Don’t shop for food when you are hungry or thirsty

Going grocery shopping when you are starving or thirsty is not the best strategy.

I went to the supermarket last night and bought 8 bottles of drinks JUST because I was thirsty.

Bad, bad idea.

Prep everything

When I buy vegetables or fruits, I bring them home, set aside an hour or so, and clean them thoroughly, pack them in between paper towels, and chop them up for meals later on in the week, or just into julienne slices for snacks.

Another thing I do is also wash the fruit so that it’s all ready to grab and eat, because you KNOW that at 7 p.m. at night when you are feeling peckish, you are not about to grab a bunch of grapes and carefully wash them and dry them off to eat. You just want to grab and eat.

I also separate them into Tupperware boxes or individual portions so they are easy to grab and go.

Make them pretty and accessible

Did you know that we waste about $10 a week on average just because we didn’t see it in the fridge before it went bad?

With grapes and bananas or other fruits with a lot of water content, I freeze them.

Then when I eat the fruit, it tastes like I’m eating an iced sorbet, when it’s really just frozen fruit.

A very handy trick! They are refreshing and delicious.

What are some of your tips?

You can contact me here or find me on Twitter via @brokeinthecity.

Come and visit my other blog: The Everyday Minimalist where I am living with less, but only the best!

© FB @ FabulouslyBroke.com for Fabulously Broke in the City, 2012. |
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