The Confluence of our Financial Lives

Effects of New Credit Card Regulations

noreply@blogger.com (MarketingScott) — Fri, 19 Dec 2008 04:44:00 +0000

As an occasional user of Credit Cards for 0% interest offers, I have spent some time familiarizing myself with the new regulations passed yesterday. As such, I thought I would provide a short synopsis of the key points:

Goes Into Effect July 2010
Those of you looking for immediate relief will have to be patient.

More Lenient Grace Period
No longer will your credit provider be able to raise your rates if you have one payment that arrives a few days after the due date. In addition, credit card companies will need to provide a reasonable amount of time to pay of at least 21 days.

Reduction of "Universal Default"
No longer will your credit card company be able to increase your rate because you paid another creditor late (like the gas or cable company).

Increased Notice
The required amount of time in advance of a change to the terms of the account or increases in penalties that the credit card company must notify you is extended from 15 days to 45 days.

All Balances Treated Equally
No longer will credit card companies be allowed to apply your payment to lower interest rates before those carrying a higher interest rate. For example, any amount paid above the minimum payment will be applied to a cash advance carrying a 20%+ interest rate rather than an outstanding 0% balance transfer.

Deceptive Offers Prohibited
I did not find a lot of detail on what exactly this means, and I thought they were already regulated in this area. However, I would assume it's a good thing.

Holds Don't Count Toward Card Limit
No longer will a hold on funds be included in the calculation that determines fees for exceeding a card limit.

There are also some potential disadvantages being discussed:

More Difficult to Get Credit
The changes could make it more difficult for individuals with bad credit to get a "subprime" credit card with high interest rates.

Everyone Will Pay More
Some suggest that the cost of credit will rise for the majority of card holders due to the fact that credit card companies will stop offering such generous promotional offers as they will be more difficult to raise later.

To learn more, visit the links below (which served as my sources for this article):
Freep.com Article by Susan Tompor
Wall Street Journal
Credit Card Bill of Rights by Bill Shrink
Wall Street Journal Blog
AOL Money & Finance

Saving through Serving

noreply@blogger.com (MarketingScott) — Tue, 16 Dec 2008 18:07:00 +0000

Frugal is once again trendy, and everyone seems to be looking for frugal gifts, inexpensive decorating tips, and cost-effective social activities. One that I have yet to see mentioned is serving others.

Last night, our small group conversation focused on how serving together as a couple can strengthen your marriage. While there were a number of methods that involved financial giving, many were experienced oriented, requiring primarily time. And all seemed to create memories that would last far longer than the old standby of dinner and movie.

Here are a few tips to get you started:

1. Determine Your Gifts
Spend some time determining the types of things you enjoy and how you might be able to incorporate them into service. Start by discussing with your spouse the answers to the following questions: In what ways do you think you would enjoy serving? Are there specific areas in which you're both gifted? Is there a cause or issue you share a passion for?

2. Identify an Opportunity
Begin by talking to other couples and see how they're serving. Chances are that someone you know is serving the community, and will be able to provide you with an opportunity. People tend to be more involved in serving during the holiday season, so it's a great time to ask.

3. Set Some Boundaries
It's best to start with a small time commitment. Burnout is common among volunteers because it turns into a burdensome obligation. By setting some clear boundaries about how much time you feel comfortable committing to, both you and your spouse know what to expect. You should also share this with the leaders you are working with, as there is a tendency for organizations to continue asking for more as long as you

4. Gather your friends
Serving together is wonderful, and it can be even more enjoyable if you do so with others. Reach out to other couples and invite them to join with you in serving. Not only will it add to the fun, it will help keep you accountable.

5. Get Started!
Just like anything, you have to take the first step. Talk with your spouse today, and begin looking for an opportunity. If it helps to set a goal, be sure and make it SMART!

If this inspires you and your spouse to start serving, or if you're already serving, please leave a comment sharing your experiences.

Your Personal Pie

noreply@blogger.com (MarketingScott) — Mon, 08 Dec 2008 18:40:00 +0000

How do you fund your personal purchases? Do you pay with a card or do you carry cash?

This past year, both She and I have discovered the benefits of paying for personal purchases with cash. As I've previously noted, our means of budgeting is to deposit a lump sum into individual accounts to pay for the expenses we are responsible for. The majority goes to her, as She is kind enough to do most of the shopping for groceries, clothes, and household items. However, her personal money is also included in the lump sum that is deposited at the beginning of each month, increasing the chance of being spent without noticing.

I dealt with this issue when we first began our budget, quickly realizing the ease of overspending when such purchases were placed on a card. As such, I now pull my personal money out as cash at the beginning of the month as my Personal Pie (or Adult Allowance), which eliminates my ability to unknowingly overspend. I encouraged her to do the same, and it has made a world of difference.

Consider moving to an all-cash payment system for your Personal Pie. Withdrawal the full amount at the beginning of the month (this is key), and use it for designated expenses. You'll find yourself remaining within your budget and likely see a shift in your spending habits.

Using Your Blog to Find a Job

noreply@blogger.com (MarketingScott) — Fri, 05 Dec 2008 23:18:00 +0000

The state of the economy could have many young people (including newly marrieds) looking for work. As such, I wanted to share a quick thought on job hunting:

Try blogging about companies you are interested in working for.

The increase in social media's effect on consumers has most companies paying attention to what's being said about them online. I know that I have Google Alerts set to notify me of postings about my place of work, and am certain that most marketing departments have at least one individual paying attention. As such, including the name of the company you would like to work for in a blog will likely get you into their inbox, and possibly even a look at your work (as long as it is compelling).
Of course, you'll need to lead them to a location that shows your skill set and clearly communicates your interest in being contacted for potential job opportunities, but that should not be too difficult. It also would help to post regularly, just in case your first posting goes unnoticed.

A quick shout out to Uncommon Cents who inspired this thought with his post Yes, They Are Watching. And if anyone from the Gates Foundation is reading this, I know someone who would be a great addition to your team.

My Camera Phone is Saving me Money

noreply@blogger.com (MarketingScott) — Wed, 03 Dec 2008 22:23:00 +0000

What do Camera Phones and Amazon.com have in common? They save me a ton of money...and it's not about roll-over minutes or free shipping.
When I happen upon a great book at the local store or in an airport terminal newsstand (they do an amazing job of merchandising business books, which are my preferred reading material) I snap a photo of the cover with my phone instead of buying them. Then, the next time I'm at the computer, I search the local library system's website for them.
Our local library system has a full catalog online where you can search, request, place holds, and renew books. This makes it incredibly easy to keep the nightstand stocked with great reading material for FREE.
Amazon.com comes in handy, too. I simply find the listings for the books I've recently enjoyed and pay special attention to the suggested readings. Then, I click over to the library page and place a hold on them.

Thanks to Phil's blog at the Pay Yourself First Challenge for inspiring this posting. Be sure to vote for him, and check out his regular Prime Time Money blog for more great postings.

You Can Give Too Much

noreply@blogger.com (MarketingScott) — Wed, 03 Dec 2008 15:07:00 +0000

For She and I, Christmas is a joyous time of year. Beyond the true reason we celebrate, we both enjoy the opportunity to give to one another. However, I learned a few years back that it is possible to give too much.
The lone Christmas during our engagement was an exercise in frugality. She was living on her own for the first time while simultaneously working to pay off some outstanding Credit Card debt. I was still recovering from the recent purchase of her engagement ring, as well as replacing a stolen vehicle. As such, neither of us expected much from the other in terms of items under the tree. I even made it a point to clarify that I didn't want much, and instructed her not to spend much on gifts.
However, when I went shopping for her, my desire to give her the world took over. I've always had a tendency to purchase beyond my means around the holidays because I enjoy the search for the perfect gift and delight in watching loved-ones reactions as they receive the items I have selected specifically for them. Thus, it was flawed to expect that I would be able to restrain myself when purchasing for my soon-to-be bride.
When Christmas morning arrived, it brought with it an unanticipated series of events. While I cannot recall the items we exchanged, I clearly remember the tears that came to her eyes as she opened the extravagant gifts I had purchased for her. The tears were not the result of disappointment with the gifts, but rather that I had spent considerably more on her gifts than I had allowed her to spend on me. Feeding my joy in giving while limiting hers was not fair, nor respectful.

That cold morning, I learned a tough lesson: You can give too much.

This past Christmas, we set firm guidelines on our giving that both of us committed to. While meager, the gifts we exchanged were just as special (and more memorable), and the outcome was much more desirable. We are doing the same this year to help insure that neither feels selfish for receiving in excess.
I encourage all young couples to discuss your gift-giving (and receiving) expectations prior to your holiday shopping. Not only does it help set realistic expectations, it ensures that both parties are free to exercise their holiday generosity without making the other the victim.

Don't Forget About Time

noreply@blogger.com (MarketingScott) — Sun, 23 Nov 2008 02:26:00 +0000

Habits can be expensive, but they can also rob you of a currency even more valuable than money; they can rob you of your time.
Two weeks ago, She and I decided to reduce the amount of time we spend watching TV. It was obvious that it had become a distraction from spending time talking with each other and growing closer. For the better part of a week, we did a great job. But, by the end of the first week, we found ourselves spending the evening planted on the couch, staring at the moving picture box.
Today, The Simple Dollar posted a very insightful article regarding how treats stop being treats. It reminded me that the TV was no longer a treat, but instead was a habit robbing us of the opportunity to involve ourselves in each other's lives.
We need to find a way to turn TV back into a treat rather than a habit. If not, it will slowly drain the vitality from our marriage as our time together is spent on an activity with little to offer our relationship in return.

Permission to Celebrate

noreply@blogger.com (MarketingScott) — Fri, 21 Nov 2008 03:28:00 +0000

Recently, a fellow blogger announced that she had successfully paid in full one of her credit cards. It’s always encouraging to hear about someone achieving such a great milestone. In fact, it deserves to be recognized with a celebration!

It reminds me of when She and I paid off the lone credit card balance we brought into our marriage. It took us a long time, and a lot of sacrifice. But when we finally paid it down to zero, we rewarded ourselves and marked the event with an evening out.

In follow up to a posting from a couple days ago about setting goals, it’s important that you recognize once the goal has been reached. Not only does it reinforce the behavior, it serves as a way to acknowledge the magnitude of the challenge and the significance of the achievement.

Congratulations to the couple behind We Like Money! You have my permission to celebrate!

Confess financial sins anonymously, and rebuke others :D

noreply@blogger.com (MarketingScott) — Wed, 19 Nov 2008 15:49:00 +0000

Web application that allows people to confess their financial secret completely anonymously. You can also read other's confessions and slap or hug the confessor, quite a lot of fun :)

read more | digg story

Cash = Empowerment

noreply@blogger.com (MarketingScott) — Tue, 18 Nov 2008 18:37:00 +0000

When you have cash, you should feel empowered. Why? Because it puts you in control.
For a project at work, I've been diving into the world of social media. Among the many learnings, the most profound has been how it has empowered we the people! Instead of us having to buy access to the masses through corporate media, we can reach the masses through one another.
However, while money no longer controls the flow of news and information, it does hold power in many circumstances. For a young couple, having cash should be empowering.
I've posted before about our saving towards a new car, and have felt very empowered as we have begun the car shopping process. Whether we're looking at a dealership or through a private party, We know what we have to spend. We don't have to ask about financing options or rely on the selling party to help complete the deal. In fact, having cash also gives us the upper hand in the negotiations.
By living within your means and avoiding the temptation to take on debt, young couples can empower themselves. With cash, we can choose how our money will be spent. When in debt, your decisions on where your money must go have already been made.
So keep a portion of your wealth liquid, pay off your debt, and feel empowered!

Setting SMART Goals

noreply@blogger.com (MarketingScott) — Mon, 17 Nov 2008 17:44:00 +0000

When setting financial goals, it's important that you and your spouse make them SMART: an acronym that stands for Specific, Measurable, Attainable, Relevant, and Timely.
This morning, PaidTwice had a wonderful posting on her blog discussing the value of setting specific saving goals. It reminded me of the process She and I are going through in our car-buying adventure.
When we began saving, we had a nebulous goal of saving for a car. Of course, without a SMART goal, She would regularly ask "when" we could purchase a car. Regrettably, I would give a nebulous answer that left her more frustrated.
It wasn't until this summer when She confronted me and forced me to make the goal SMART. Once we established a goal that was clearly defined, and a reasonable timeline, the discussions stopped. We were finally in agreement on "when," and had a concrete measure to track our progress against.
Make your goals SMART, and it will save a lot of tension in your marriage.

Frugal Weekend Fun

noreply@blogger.com (MarketingScott) — Fri, 14 Nov 2008 18:22:00 +0000

I'm a frugal guy, and have always enjoyed a variety of frugal activities. This weekend, She is going to be out-of-town, leaving me to enjoy some of those frugal activities on my own.

Running: I've never been much of a runner, but have been inspired by some co-workers that ran the NY Marathon recently. It's great exercise, and doesn't cost a thing.

Reading: I stopped by the Library to pick-up a couple books I placed holds on. While I love buying books, I've found the library to a fantastic bargain. And with the online reservation system, I can place holds on books as I encounter them, and pick them up when available.

Manage my Fantasy Teams: Yes, I'm one of those who participates in a couple Fantasy Sports Leagues with friends. This year, I am in two football and one basketball league. All in, it was about a $50 outlay, and it gives me something to pay attention to for the better part of 8 months (though it's not something She's particularly fond of me spending my time with).

Learn Italian through LiveMocha: She and I share a desire to go to Europe, and especially Italy. Though any trip is probably a couple years out, I figure it might take me that long to learn enough Italian to get around.

I'm looking forward to a full, frugal weekend.

Side Effects of Budgeting

noreply@blogger.com (MarketingScott) — Tue, 11 Nov 2008 18:36:00 +0000

Budgets are primarily a means to keep you living within your means. However, after living this past year on a strict budget, I'm realizing that there are some additional benefits:
The Value of Money
Both of us are now more aware of the value of a dollar. Given limited resources, we think twice before spending. Recently, I passed on a $2 board game at a thrift store because I doubted I would use it again. I don't think I ever thought twice about a $2 purchase before we had a budget. However, after discussing with friends, it seemed as though the game would get used. And lucky for me, when I returned to see if it was still available, there happened to be a 50% off sale...so I bought it for $1!
Thinking Ahead
Now that we have a concrete spending limit, we are both much more aware of future expenses. While shopping last week, She and I both realized that the holiday's are coming, and the accompanying extra expenses. As such, we've both forgone typical expenditures so that we're certain to have enough as they arise.

Are We Poor?

noreply@blogger.com (MarketingScott) — Tue, 02 Sep 2008 04:31:00 +0000

She and I have a moderate income, especially now that She is in school full time. As such, we are rather frugal; driving older cars, renting a mother-in-law apartment, watching older tube TV's. We also live within a conservative monthly budget, which does limit our social activities.
During a recent conversation, She divulged to me that some of our friends think we are poor because we sometimes turn down social engagements, such as dinners or drinks. I asked if she thought we were poor, to which her response was "no."
It's definitely a hit to my self esteem that others view us a poor because of our lifestyle. However, we remain confident in our choices.

The Relational Importance of Saving

noreply@blogger.com (MarketingScott) — Thu, 14 Aug 2008 16:15:00 +0000

This morning, I read an article discussing the importance of a down payment when purchasing a house. It stared me thinking about how important the process of saving is for couples. Not only does it have financial benefits, I believe it strengthens a marriage.
While She and I would love to own a house, this dream is off in the distance as I am just finishing my MBA and She is leaving her job at the end of the month to pursue a degree in Dental Hygiene. However, we are currently saving for a car to replace the 1999 Chevy Cavalier she has owned since high-school. She has longed for a new car since before we married, so we decided that we would use it as our first big saving project.
Saving has never been a strong suit for either of us, so it's taken a lot of discipline to put away money each month (on top of our retirement saving and tithe). However, we are on pace to have enough saved up to buy a car by the end of the year! We're both excited, especially now that we can see the goal within reach.
Through this process, we've both learned a lot. And, it has strengthened our relationship by forcing us to work through our frustrations together, lean on one another for the strength to overcome our desire for immediate gratification (we could have opted to finance it), and is giving us a sense of mutual accomplishment as we near the goal.
So yes, saving for a down payment on a house makes great financial sense. But don't overlook the many other lessons you and your spouse will learn along the way. You'll be building a solid foundation, both financially and emotionally.

The Blame Game

noreply@blogger.com (MarketingScott) — Tue, 12 Aug 2008 21:31:00 +0000

When finances are tight, it's easy to start the blame game.
She and I are preparing to celebrate our first anniversary with a five-day trip to Lake Tahoe, CA. Other than our honeymoon, I rarely take vacations that include a hotel stay and a flight. I'm a frugal traveler: staying and playing as inexpensively as possible. I'm also a planner, thoroughly researching every option before making a decision (guess who's the first born). She, on the other hand, makes the experience the priority. It may be obvious where this posting is headed...
Last night, She was browsing some travel websites and came across some poor reviews of our lodging. Immediately, she voiced her fear that we were going to be disappointed with our accommodations.
Months ago, of course, I had read a number of reviews and visited many different sites before selecting our lodging. I also consulted her, learning that an outdoor pool was critical. Given these factors and our mutually agreed-upon budget, I made my recommendation, which she agreed would fit our needs.
So when she began passionately sharing her concerns, I immediately went on the defensive. I reminded her of the process we went through and agreement we arrived at in selecting the location, and (regrettably) discounted her fears.
Lesson 1: never discount your spouse's fears, as it only creates distance.
I went on to point my finger at her, questioning why she hadn't conducted her research before we made the decision (which she had, as I remember now).
Lesson 2: putting the blame on your spouse won't get you out of it.
After some quarrelling, I realized my mistake and attempted to reverse course.
Lesson 3: once you realize you've incorrectly assessed the situation, immediately apologize.
Once I recognized her fear, sympathized, and reminded her of the process we had gone through (not in an "I told you so" manner), her fears subsided. I had to assure her that we had made a good decision, and that it was the best option available given our budget and our desires.
Living within a budget is not easy, especially when you have different priorities. However, the worst thing you can do is make your spouse the opponent. Instead, talk things through, comforting each other along the way.

Furniture Project

noreply@blogger.com (MarketingScott) — Mon, 11 Aug 2008 15:33:00 +0000

Growing up without a lot of money (along with resourceful parents) taught me to use my ingenuity to get the things I wanted. In many instances, this meant building the things I enjoyed. When my parents cleaned out their garage recently, I was asked to sort through the remnants of my childhood fun in the form of homemade skim boards, car stereo pieces, cans of spray paint, etc. However, as I've grown older, my ingenuity has slowly fled my recreational time (although, I can't say I have nearly as much recreational time to fill these days). But this past Thursday evening, She revitalized my ingenuity with her desire to refurbish a piece of furniture found on the side of the road.
This piece of furniture is not your average discarded item. It was a console television, complete with accompanying turn-table, radio, and speakers. Though I was initially hesitant to tackle such a project, my ingenuity crept in and I convinced myself that it would be a worthy project. We wrangled the beastly item (it had to weigh at least 300 lbs.) into the back of the Explorer and carted it home. Once there, we set to stripping out the contents, working until the sun went down and flashlights were necessary.
Alas, we finally alleviated the giant of it's toxic electronic contents (which we recycled for $27) and moved it into the apartment. We have already begun planning it's future, devising how we will turn the discarded unit into a wonderful buffet complete with wine racks, glass holders, and china display.
Before we were married, I mistakenly misjudged her as a "buy only" type of gal. But as we've been living within our limited budget, her creativity and frugality has become much more evident. It has also been contagious, as I too am again thinking of projects that will save money and provide bonding experiences.

Trust is Key

noreply@blogger.com (MarketingScott) — Wed, 06 Aug 2008 16:29:00 +0000

Trust between spouses is a critical element of nurturing the relationship. This goes beyond physical, emotional, and mental monogamy. For us, trust was a critical first step in the joining of our finances. I was reminded of this when I read J's posting yesterday on budgetsaresexy.com where he discusses his latency in merging finances with the Mrs.
She and I initially established our budget by category, as most do. I suggested we put cash in envelopes to keep to it, but she was hesitant to carry around so much cash. Thus, we elected to deposit a lump sum for the categories she would be in charge of (food, entertainment, clothing, etc.) into her account (now held jointly).
I very quickly began to monitor her spending by reviewing statements online. Though I never confronted her directly, the spending on lattes began to eat at me, showing itself in unhealthy ways (primarily pointed comments and jabs).
After a couple of months, it came to a head in a loud verbal spat. After processing the new information, I had to make the decision to trust her judgement. No longer did I give myself the right to monitor the little expenses.
There have been rough times, especially when the account nears zero at the end of the month. However, I no longer give myself the right to audit the way the money is spent. As such, She has become much more responsible, and I've seen a noticeable difference in they way the money is spent (far fewer lattes). But most importantly, it removed much of the tension I had created by failing to trust her.
The moral of the posting is that trusting your spouse is an active choice I highly recommend.

The Practice of Giving

noreply@blogger.com (MarketingScott) — Tue, 05 Aug 2008 15:15:00 +0000

This past Sunday, as part of our pastor's message on How to Handle Wealth and Suffering, he reminded us to develop a plan to generosity. For many years, I viewed giving to churches and organizations something I would do once I had taken care of myself. Of course, I never seemed to have enough for me.
Shortly after our engagement, She and I began to join our financial lives. While we kept our accounts separate, I took a much greater interest in how She was managing her money. As we discussed financial priorities, we both agreed that giving should be a part of our budget. We knew it was a lofty goal, but felt compelled to attempt a full tithe of 10%.
As we approach our first anniversary, I am happy to report that we have faithfully given our 10% from every paycheck.
Through this lifestyle change, I've learned that you can't give if you're living beyond your means. Not only does our plan for generosity provide us with warm and fuzzies, it forces us to live within our means and keep to our planned budget.
I encourage everyone to develop a plan for generosity, whether it includes a church, non-profit organization, or cause you believe in. Our plan is to give 10%, pay ourselves 20%, and live off the remaining 70%. And almost one year into this marriage, we're still at it.

Our First Blog

noreply@blogger.com (MarketingScott) — Fri, 01 Aug 2008 22:57:00 +0000

The word Confluence is a geographic term describing "the meeting of two or more bodies of water" (according to wikipedia), which is where She and I stand...we have met and continue on as one. And as we have joined, so have our financial lives.
I know that many of our friends are currently navigating the new world of mutual finances, and know that other young couples are doing the same. While we are in no way experts, I do believe that our triumphs and struggles can assist others. Plus, it opens us to the advice of those with more experience.
Rather than spend this entire post reviewing our history, I'll insert stories and details from our past as they relate to the present topic.
With that, the journal begins...