Grad Money Matters

20 Free Personal Finance Podcasts and News Sites

noreply@blogger.com (ispf) — Sat, 11 Jul 2009 03:36:00 +0000

Managing your personal investments and planning for your future doesn't have to be a confusing or costly process. There are a number of great podcasts and online news sites dedicated to helping you make the best of your financial future. This article has a list of 20 financial sites worth checking out:

Podcasts

Kiplinger - Kiplinger Personal Finance offers free weekly podcasts that cover top stories in their magazine. These half-hour long podcasts provide practical advice on managing your money and securing your financial future.

Money Girl - This podcast from Laura Adams, a personal finance author, educates listeners about complex finance issues. In each episode, Money Girl seeks to inform and motivate listeners to reach and preserve their wealth.

Feed the Pig - Feed the Pig is a practical podcast that offers tips and tools to curb your spending, reduce your debt, and increase your savings.

Plain Talk on Investing - This podcast, presented by Vanguard, provides listeners with easy-to-follow steps for reaching financial success. Plain Talk on Investing looks at the market and the best way to invest your money.

Sound Investing - This radio show podcast features clear and concise advice from financial educators. Sound Investing advises listeners about managing money and investing for retirement.

Pro Money Talk - Pro Money Talk is dedicated to helping working people save and invest for the future. This hour long podcast uses educational discussions, interviews, and success stories to cover a wide range of personal finance issues.

Money Guy - The Money Guy podcast offers financial tools and information to get your finances on track.

Watching your Wallet - The Wall Street Journal offers several different financial podcasts, including Watching your Wallet. This daily, five to ten minute podcast features little tips to increase your financial health.

No Credit Needed Podcast - The No Credit Needed Podcast offers tips and information for debt reduction, frugal living, and saving money. Each episode runs anywhere from 10 to 40 minutes and features several handy ways to manage your personal finances.

Marketplace Money - The Marketplace Money podcast offers several tips and tricks to business and personal finances.

MoneySmartz - This financial guide offers several podcasts about managing money. Along with podcasts you can also find financial guides, blogs, profiles, and reviews.

News Sites

Bloomberg - This top-notch news site provides several resources for managing your personal finances. A few worth checking out are the portfolio tracker, financial calculators, and financial glossary.

The Motley Fool - The Motley Fool is a large investment community loaded with information on personal finance, retirement, and investments. This site's personal finance page discusses spending habits, saving, debt, taxes, and even offers a link to free personal finance software.

TheStreet.com - One of the leading financial media companies, TheStreet.com features a large personal finance section. Resources include articles on managing your money, retirement, investments, and expert perspectives.

SocialFunds - SocialFunds, one of the largest personal finance sites on the web, provides the latest news and investment information. The site features over 10,000 pages on socially responsible investing.

Forbes.com - Forbes.com, a leading place to find news and information, features a large personal finance web page with resources for investing, retirement, taxes, and mutual funds.

MarketWatch - MarketWatch's personal finance section offers tips about real estate, taxes, spending and saving, retirement, career, and small business.

WalletPop - This news site from AOL Money and Finance offers an assortment of different features for understanding and managing your personal finances. The site also has the latest information about budgeting, debt management, banking, and budgeting calculators.

Yahoo! Personal Finance News - Yahoo! Personal Finance News provides top stories about investments, debt, credit, and more.

CNNmoney.com - CNNmoney.com offers a free personal finance section with tons of money saving features. This is a great site to find budgeting tips and information as well as the best investments to save for your retirement.

*About the author: This post was written by Karen Schweitzer, the About.com Guide to Business School. Karen also writes about accredited online colleges for OnlineColleges.net

*Image Credit: Photograph by Colleen AF Venable [via Flickr Creative Commons]

25 Free Budgeting and Finance Tools for Students and Grads

noreply@blogger.com (ispf) — Tue, 23 Jun 2009 18:13:00 +0000

(This is a guest article by Karen Schweitzer*)

Budgeting money is stressful for most but this is even truer for college students. Luckily, the Internet is loaded with free tools and apps to get you started on securing your financial future. Here are 25 sites you can try today:

Budgeting and Debt Management

Clear Checkbook - Clear Checkbook is a free, easy-to-use online checkbook register with a lot of extras. Students can balance their checkbook, get daily reminders, and set budgeting goals all in one place.

MoneyStrands - This site has useful software and tools for any budget big or small. It automatically tracks all your financial accounts, offers advice to help you save money, and compares how your goals measure up to others.

MySpendingPlan - Provided by Plans365 Inc., MySpendingPlan.com is quick easy-to-use budgeting software that can help you set goals, save money, and reduce debt. This site also offers tools and tips to help the budget conscious student secure their financial future.

Thrive - This site is a great online tool to help you organize your finances, get financial advice, and plan for the future.

Mint - This free financial site makes it easy to understand and maintain your budget. Some of the many features Mint offers include money tracking, goal setting, and money saving tips.

Wesabe - Wesabe.com is a free online tool that takes away the stress of money management. You can track all your accounts on one resource, gain insights on where you are overspending, and get useful tips to manage your accounts better.

PearBudget - Created by a husband and wife team, this free web app is a simple budgeting tool for students overwhelmed by finances. PearBudget offers budgeting and tracking tools as well as an informational blog.

Buddi - Buddi is a free downloadable budgeting program for people who are just beginning to understand their finances. It is can run on most computers and includes tutorials to help you along the way.

Geezeo - Geezo.com offers free financial tools to organize and track your finances. Students can also reap the financial rewards of an online community of experts to answer financial questions.

Mapping Your Future - Almost anyone can benefit from the information packed onto this educational Mapping Your Future is designed specifically for students and is loaded with tools and resources for managing your budget, financial aid, and college costs.

Tuition and Student Loans

College Scholarships - Every student can benefit from the financial aid and scholarship information found on this site. It contains multiple links to student loans, grants, and scholarships as well as calculators for estimating student loan and college costs.

FinAid - FinAid is a free and comprehensive guide to financial aid information. This site is a great financial tool for understanding and estimating college expenses.

CollegeBoard - The informational website, CollegeBoard.com offers a wonderful array of free tools that can calculate the financial responsibility that comes from student loans and tuition costs.

Federal Student Aid - The Department of Education has a free budget calculator that is available to all students so they can estimate the total cost of their education.

FastWeb - FastWeb has a variety of resourceful tools to guide students through the financial burdens of college. The site also offers a scholarship search engine.

Student Discounts

StudentUniverse - StudentUniverse is the largest student travel agency in the U.S. This site offers discounted prices for flights, trips, rail, insurance, and hotels.

Campus Tech - With savings of up to 85 percent, Campus Tech can help students to meet their software, hardware, and book needs while still maintaining a manageable budget.

Student Discounts - Since 1995, Student Discounts has been saving students thousands with its discounted academic software. This site offers all forms of software that a student could possibly need or want.

Student Advantage - Student Advantage is one of the leading student discount programs. They work with hundreds of colleges and distributors to provide discounted prices on things students need.

Affordabook - This free, easy-to-use website is designed for students who want to find the best prices on college textbooks and leisure reading.

Miscellaneous Sites and Web Apps

Cost of Living Calculator - This useful calculator from Bankrate allows students to compare the cost of living in different cities. You can compare prices on everything from rent to bananas.

Student Finance Domain - The Student Finance Domain is a free reference center that was created to help students make informed decisions about credit cards, student loans, and student banking.

Pay Range Calculator - The Pay Calculator provided by Payscale.com can help any student calculate salary range for different job titles and markets.

Currency Calculator - This currency calculator provided by XE.com is perfect for students who plan to travel or are studying abroad. It has great features like a currency converter, up-to-date cross rates, and a travel expense calculator.

Salary Finder - Graduate students looking for competitive pay in the job market will benefit from College Grad's Salary Finder. The tool can help with salary negotiations, hiring demand, salary calculations, and career information.

*About the author: This post was written by Karen Schweitzer, the About.com Guide to Business School. Karen also writes about college online for OnlineCollege.org.

*Image Credit: Photograph by LuMaxArt [via Flickr Creative Commons]

Buying Insurance: Factors to Consider For Security and Savings

noreply@blogger.com (ispf) — Wed, 29 Apr 2009 17:34:00 +0000

(This is a guest article by Barbara Waltz*)

Whether it was for an auto accident or a doctor's visit, the odds are that you have had to make an insurance claim at some point in your life. At that point you probably learned the importance of having a quality insurance in place to cover the bills. While there are quite a few great insurance companies out there who will be there for you when you need them, there are also a fair share of companies who are less than reputable. Although those companies may offer incredible prices, they will leave you lacking when it comes to needing their help. Below is a list of what you should consider when purchasing any insurance policy as well as some tips to save a bit of money while doing so.

Premium Determining Factors

Age, past history and location are some of the bigger factors that determine premiums but certainly not all of them. Each company places different weight on certain factors and this equation changes regularly. For example a driver with a great record but poor credit history may have ridiculous premiums with one company who sees him as being a risk but with another who focuses on other factors may offer him discount auto insurance based on his driving history.

Use Caution When Cutting Coverage to Save Money

Always make sure you fully understand what you are getting into by doing this. While in some cases it is a great idea to increase a deductible to save a bit of money, it may come with a greater risk than the potential rewards. There are many areas of “fat” that can be trimmed out of insurances with little risk just make sure it is not something that can come back and bite you if you are in a bind. In some cases increasing deductibles can be a huge money saver and can save more money over the long term of the policy than lower deductibles and higher premiums.

Try Before You Buy

Most companies offer a 30 day trial period of their coverage. During that period you should be able to cancel and be given a full refund. While this period is often too short to fully understand if the coverage is going to be suited for you, it can still be a nice perk.

Verify the Company's Ratings (Financial and Personal Users)

Knowing that the company has the finances in place to handle a claim if it arises is important. Although they may have the finances in place, they may be less useful when it comes to paying up,and that is why it is equally as important to see what other policy owners have said about their experiences. The internet has spawned tons of user generated review sites and the financial information is readily available as well. Each state has their own insurance complain department as well which will is a great resource for verifying information on the company.

Ensuring Your Agent is Licensed

While it seems unlikely, there are many horror stories of people being fleeced with fake policies. The “agent” takes an upfront fee and then disappears.

Shop Around

While many people will look around to find the best shoes or lowest price on a car or whatever, for some reason people are less inclined to do so when it comes to insurance, which is arguably more important over the course of your life. Depending on your situation, some insurance premiums can be 50% higher with different companies. Compare several policies before making any decision to an insurance.

*About the author:This post was written by Barbara Waltz one of the founders of 24/7 Quote Us, an online resource blog and insurance quote comparison guide.

*Image Credit: Photograph by Gravestone [via Flickr Creative Commons]

10 steps I used to get out of Debt

noreply@blogger.com (ispf) — Thu, 19 Mar 2009 17:38:00 +0000

(This is a guest article by Sharon Marthers*)

There were times when I used to allow my heart to rule as far as my personal finances are concerned. I thought it was the coolest approach that I could ever have until I realized that it wasn't a good idea after all! Well, I had to admit that one doesn't get into a debt situation in a jiffy because it builds up gradually and seeps into one's finances in a clandestine manner. Guess what? It even took me a long time to get out of it!

So what did I do to get out of it anyway?

I came across billboards that offered me debt help and was requested to enroll for some kind of debt relief option in the process. They seemed they might be effective initially, until I found out that they might not be the same for all and sundry. So, I took some personal measures first, such as, evaluating my financial situation and then finding the particular debt relief option that would be suitable for me. In the midst of this storm, here are some measures I used in order to withstand the storm and come out of it:

Avoid borrowing money to get out of debt

Use cash and minimize credit card usage

Attend to debts that have higher interest rates

Pay more than the minimum monthly payments

Work out a budget and track expenses

Check your credit report periodically

Read TOS while accepting credit cards

Save for the rainy day

Don’t be extravagant

Take professional guidance if required

*About the author: Sharon Marthers is one of the financial writers associated with the Debt Consolidation Care Community. With her in-depth knowledge and vast experience, she has had a profound impact through writing and advising on all debt consolidation issues and has presented useful tips to get out of debt. Her remarkable guidance and support has improved the community into a global hub for the debt related situations.

*Image Credit: Photograph by gaspi *your guide [via Flickr Creative Commons]

10 things a freelancer must do to survive this economy

noreply@blogger.com (ispf) — Thu, 26 Feb 2009 18:39:00 +0000

(This is a guest article by Jessie Hepzie*)

The season had been pretty rough throughout the last quarter of 2008 as well as in 2009. The economic meltdown has had its effects on every one including freelancers, yet this is the opportune moment for some, and they are really successful in acquiring great orders.
You should remember the life of a freelancer is not always a smooth one. With so many commitments and with uncertain income, the life of freelancers had always been in the rough seas. The following are the tactics that can make freelancers survive this economic crunch.

Look at the right place for your job:
Usually freelancers have a tough competition in forums and bidding sites. It’s high time you avoid those sources and look for various other options available throughout the internet. The best thing you could do is have an eye for corporate freelancing jobs. The recent freeze in recruitment programs and the downsizing of employee list in the corporate world is in reality a way open for freelancers. Companies in view of cost reduction are more than willing to hire freelancers to complete their ongoing projects. Associate yourself with these companies to get a regular income.

Diplomatic bargaining:
Whenever you are selected for a project do explain you skills, the current economical status, and diplomatically negotiate for a better compensation. This could boost your income and give you peace of mind. Never be aggressive because it can cost you your job. Diplomatic bargaining can also be very well applied when you are procuring material for your project. Compare vendors and prices and choose the best vendor that quotes the lowest price. You can also ask for discounts and offers and enlarge you margin.

Being punctual:
Once you take up orders do strictly adhere to deadlines. This will create a positive image and trust in you. Never take up more than you can chew and end up as failure. If your project is bit tedious, it is a wise idea to join hands with friends who can help you complete the project on time. Sharing a small amount in the revenue will reduce a great amount of stress involved in the job.

Maintain good relationship with your clients:
Maintaining good relationship with clients could gain you more projects and more money. The usual employer psychology is to provide the job to reliable employees rather than recruit a new one on trial basis. This is why maintaining good relationships will be an added advantage when it comes to gaining lucrative projects from previous employers.

Form a team:
Especially during the time of recession it is wise to form a team with like minded freelancers and share the work and revenue. This broadens your scope of getting projects and lessens your burden in handling large projects. Working together will also provide moral support and eliminate the loneliness thereby encouraging you to involve more in you job.

Learn new tips and tricks:
As a freelancer it is your duty to keep yourself updated with the latest trends in the field. Learning new tips and trick in your job should be a continuous process. Do not hesitate to spend a little in learning a new technique that could help you come out with flying colors in you future projects.

Be alert:
As a freelancer you should be alert with individual private employers. There are two possibilities that you can encounter with individuals contracting you for the first time. Cheats usually ask for some time to release your payment and never turn up once have you completed the project for them. It is always wise to get a partial payment in advance before you take up jobs for those you do not know. The other category is that people after testing your skills can provide you good amount and can force you into contracts that will benefit them a lot, while you will be stressed out unnecessarily. It is better to avoid both.

Be wise on expenditure:
When it comes to your personal expenditure, it is wise to reduce unwanted expenses. You should compare prices and get the best price for things you need. You can also reduce the expenses of eating out and other luxuries that could drain you purse especially at time of recession.

Start saving:
You should realize that there is no guarantee to your regular income and should start the habit of saving some money for the days when you won’t find jobs. There may be good income on few days while other days may be dry. So it is wise to limit your expenditure for the day with an eye for future. However, expending on investments is a clever option.

Positive attitude:
Remember nothing is permanent in this world and this financial crunch too will pass. Do look at poorer economies where people suffer the most and be thankful that you are in a better position. Comparing your state with those in poverty will boost your moral, whereas a comparison with better off people will lead to frustration.

*About the author: This article was contributed by Jessie Hepzie who maintians Oscommerce Templates.

*Image Credit: Photograph by lumaxart [via Flickr Creative Commons]

The World’s Richest Frugal People

noreply@blogger.com (ispf) — Tue, 17 Feb 2009 18:36:00 +0000

(This is a guest article by Lewis Bennett*)

Wikipedia defines frugality as, “the acquiring of and resourceful use of economic goods and services in order to achieve lasting and more fulfilling goals.” A lot of people would use the word “cheap” but don’t say that about anyone on this list of some of the world’s wealthiest people because they also happen to be some of the most frugal.

Despite having a net worth of $62 billion and being the world’s richest man, famously frugal investor Warren Buffett still lives in the same home he bought for nearly $31,500 some 50 years ago.

John Caudwell used to ride his bike 14 miles to work everyday and cut his own hair because he didn’t want to be bothered going to the barber despite having amassed a fortune of over $2.2 billion. Caudwell also purchased all of his clothing off the rack at British retailer Marks & Spencer.

Jim Walton, member of America’s richest family and Wal-Mart scion, reportedly drives a 14-year-old Dodge Dakota despite having a net worth of $16.4 billion.

Retail Tycoon Frederik Meijer, worth $2 billion is known to drive cars with very high MPG and prefers to only stay in budget motels.

Gene Burd, a 76-year-old journalism professor at the University of Texas has donated over a million dollars to financial foundations but walks 6 miles to work everyday, lives in a very tiny apartment, picks up pennies on the ground, and wears shoes that he found in the trash.

Ingvar Kamprad built a $33 billion fortune after founding Ikea but the Swedish tycoon drives a 15-year-old Volvo, tries to avoid wearing suits, and flies coach. It’s also said (surprise, surprise) that Kamprad furnishes his home entirely with affordable Ikea furniture.

Indian billionaire Azim Premji worth upwards of $17.1 billion drives a Toyota Corolla and stays in the company guesthouse rather than 5-star hotels when he’s traveling on business. At a lunch honoring his son’s wedding he even served the food on paper plates.

We would be amiss to not mention some of the highest earning dead celebrities who are perhaps the most frugal of this list due to their inability to spend :) For example, top earning dead musician, Kurt Cobain made about $50 million last year. Elvis Presley made $42 million despite having died in 1977 and, in third place, Peanuts creator Charles M. Schulz earnings were about $35 million.

*About the author: This list was compiled by Lewis Bennett, writer for an Individual Voluntary Arrangement (IVA) site.

*Image Credit: Photograph by riptheskull [via Flickr Creative Commons]

10 Things to Consider Before Quitting Your Job to Start Your Own Business

noreply@blogger.com (ispf) — Fri, 23 Jan 2009 16:21:00 +0000

(This is a guest article by Andrew Wang*)

Starting your own business is more often than not a stressful and risky proposition. These days, it is an unfortunate fact that most small businesses are doomed from the very start, for whatever reason. Recent statistics found that 7 out of 10 small enterprises close down within two years of opening, and a further 1 of the 10 will shut down within 5 years. There is however some hope, in the fact that 20 - 30% of businesses do find success somewhere down the track. In this article, I will give you 10 things to do before you quit your job and put all your effort in to a particular business idea. Getting these 10 things done properly will substantially assist you in your entrepreneurial endeavors - and may just be enough to keep your business afloat, through both the good times, and the bad.

Know The Lingo:

Research:

Sort Out The Legal Aspects:

Analyze The Marketplace:

Find An Accountant & An Attorney:

Read Past Success Stories:

Work Out Who Your Competitors Are:

Get The Right Training:

Determine The Real Demand For Your Product or Service:

Make A Sale Or Two:

That concludes our list of the 10 things to do before quitting your job. Of course, not all 10 things will be applicable to everyone, so to give a closing remark, I want you to think about one big thing. Be careful, logical, and practical. Creating and growing a business is not as easy as it's made out to be. Ensure have the skills, resources, and energy to get things off the ground, and who knows - you may be the next success story just waiting to happen.

*About the author: This article was contributed by Andrew Wang. Andrew lives in the Seattle area. He manages the blog Travel Reward Credit Card.

*Image Credit: Photograph by Ayres no graces [via Flickr Creative Commons]

Do Children Need To Know About Family Finances?

noreply@blogger.com (ispf) — Thu, 08 Jan 2009 21:22:00 +0000

(This is a guest article by Trisha Wagner*)

Specifically should you talk to your children if you are experiencing a financial hardship? Just as each family is different each situation is unique and there is not one easy answer to this question. I have a three year old and while we ran to the store this weekend to pick up a new router for my new work at home job, I was faced with some difficult questions from my toddler (since this is my only child, I am still amazed at how hard it is to answer some of his questions). It made me think: how much do our kids have to know about our finances? Is it possible to give them too much or too little information? In my case, the answer is a bit simpler. There is only so much a three year old can wrap his head around. There is no need to go into budgets, the credit crunch or why mommy has to wait and see how her new job pans out before spending money that might be needed for other things. He simply doesn't care and doesn't have the ability to comprehend you can only have ONE thing and it can't cost more than ten dollars. I get that. But what if you have older children.....kids old enough to have the basic gist of how money works and how important it is in keeping the household running?

If the current economy has you on your toes when it comes to the family finances it is likely your kids already sense something is amiss. Before you start worrying about how or if you should discuss a financial hardship with them you must realize that a child of any age first needs to know that they are safe, secure and loved. In their world, those things are more important than money and it is your job as a parent to explain to them that regardless of what may be going on with the household budget they can feel confident in those three things.

That being said you definitely should consider having a family meeting to discuss what is going on with your children in an age appropriate way. Some children will feel more secure by being included and you will also have the opportunity to prepare them for any possible changes that may be in the cards due to the economy. However, there is no need to go overboard and burden your kids with too much adult information which they may not be able to process. In doing this you are simply adding to their fears and feelings of insecurity instead of easing them.

Since the economy is not likely to turn around just because we have crossed over into a new year, it will be important to keep the lines of communication open with your children. If you or your spouse have lost a job or anticipate significant changes in your life due to finances, consider having a regularly scheduled family meeting to briefly go over information and answer any questions your children might have.

Many families are facing tough times but most will be able to weather the storm. Make sure you take the steps necessary to ensure your kids don't worry needlessly or have increased negative effects due to too little or too much information.

*About the author: This article was contributed by Trisha Wagner. Trisha Wagner is a freelance writer for DestroyDebt.com, a debt community featuring debt forums. Trisha writes regularly on the topics of getting out of debt and personal finance.

*Image Credit: Photograph by lucias_clay [via Flickr Creative Commons]

How to Properly Pay Down Your Credit Cards

noreply@blogger.com (ispf) — Mon, 15 Dec 2008 18:55:00 +0000

(This is a guest article by Elise Degrass*)

Even in an economic downturn, the widespread available of credit to consumers is staggering: nearly anyone can apply for, and receive, a credit card today. With the growing ease of use (you no longer have to even sign for many transactions) and the vast number of businesses which accept credit transactions, fiscal responsibility with credit cards can be as difficult as ever. Keeping disciplined in your spending, as well as your payments, will help you to stay out of debt in the long run.

As a first step, consider working through a complete review of all of your existing credit card debt. If you have multiple cards, a spreadsheet may be an effective way to keep track of all of the data, from minimum payment amounts to due dates and interest rates. Also, it's important to note any variability in interest payments,
especially if an introductory rate becomes much higher after a certain point. Once you have collected data on your debt burden, you can begin taking steps to pay down your credit cards.

Prioritize your payments on cards which have the highest interest rates, and make a plan to shift your spending to cards with lower rates. Figure out your monthly expenses and determine which you can pay off with cash to reduce further interest rate payments. Additionally, you may want to consider looking at your overall expenses to prioritize repayment of debts over unnecessary purchases, especially for vacations and other upscale expenses.

As part of a larger budgeting process, ensure that you can meet all of the minimum payments while planning to consolidate your debt into just a few cards in the long-run; having fewer cards will simplify the budgeting process, as well as making it easier to keep track of your purchases. Working with a debt counselor to devise a long run plan, as well as working with credit card companies to negotiate lower rates, will help you on the path to a debt-free future.

*About the author: This article was contributed by Elise Degrass. Elise is a new writer who currently is blogging about cell phones.

*Image Credit: Photograph by Andres Rueda [via Flickr Creative Commons]

Money Management Tips For Women

noreply@blogger.com (ispf) — Tue, 02 Dec 2008 18:39:00 +0000

(This is a guest article by Trisha Wagner*)
As all women know, one size does not fit all. The same is true regarding financial advice. Every situation is unique and requires personal advice and not surprisingly the advice for women differs slightly from advice for men. Although women have made huge strides in the last century, regrettably we are sometimes considered fickle emotional creatures unable to handle the complex issues such as finance. In reality woman are more than capable of handling these issues both at home and in a corporate setting, nevertheless the fact remains a large percentage of women do not have control of over their own financial situations. The following tips can help get you back on track and in control of your finances as well as your future.

Educate yourself. The more you know about finances and the investment process, the more likely you will feel confident dealing with personal finance issues. After generations of men having control of household budgets, saving, retirement and investments, women have assumed the role in many households. Unfortunately we don't have a long line of role models to look to for example and many women feel ill prepared and even resentful of being in charge of finances and count on a spouse or partner to make the right decisions. Take advantage of the information available on line, in books, community or college classes and even from other women to educate yourself on financial matters. The more knowledgeable you are- the more confident you will feel in your decisions.

Pay yourself. As the New Year looms closer, consider a new approach to beef up your savings account. Consider paying yourself at the start of each day. Start with just one dollar a day and increase that amount by one dollar at the beginning of each month. Women are quite accomplished at finding ways to take care of everyone else's needs first. It might be the needs of their spouse, children, employer, friends and family; we find a way to make sure everyone is taken care of. Apply the same thought and determination towards providing for you financially.

Pad your retirement account. Saving for retirement should begin the day you begin working, but in the real world people tend to start later. It is especially important for women who are more likely than men to enter and leave the work force while raising their families to begin saving for retirement early. You will also want to take advantage of the increased amount of money you are permitted to contribute to your 401k after the age of 50. By contributing the maximum amount allowable, you will ensure you have a comfortable nest egg to live off of in your golden years.

Use credit wisely. Credit is a good thing. Irresponsible use of credit is a bad thing. Resist the urge to help others out by co-signing or loaning money to family and friends. Do not use money or possessions as a means to feel self worth. You will find happiness comes from living well, not spending more.

*About the author:Trisha Wagner is a freelance writer for DestroyDebt.com, a debt community featuring debt forums. Trisha writes regularly on the topics of getting out of debt and personal finance.

*Image Credit: Photograph by red5standingby [via Flickr Creative Commons] of Faile Lost In Glimmering Shadows show at Lilian Baylis school in Kennington.

Make Your Paperwork Work for You

noreply@blogger.com (ispf) — Mon, 15 Sep 2008 22:39:00 +0000

(This is a guest article by Melanie Taylor*)

Who says paperwork isn’t fun? What could be more fun than producing conclusive evidence that proves that YOU are 100% right? It’s all the more satisfying when being right means you’re saving money.

Blazing a paper trail...

Our lives are full of paperwork. Master it and you’ll find your finances run more smoothly. Let’s look at three of the most important paperwork categories…

Category One – Receipts

How many times have you had a ‘guaranteed’ product break within months of buying it?

One thing’s always guaranteed: the shop will be festooned with ‘No receipt, no returns’ signs, carefully placed within convenient finger-tapping range of the employee(s) you’re haggling with.

Argue, plead, point out that no other shop within 1,000 miles even sells that product – it all makes no difference in the face of that simple four-word logic. More frustrating yet, even manufacturers’ warranties can require proof of purchase!

If only you’d kept the receipt, you could be turning that broken product into cash, not trash.

Action: Never throw away receipts. Keep them in a dedicated drawer / folder, under whatever kind of filing system helps you locate them at need.

Category Two – Bank (and Credit Card) Statements

In this golden age of technology, it’s tempting to assume that all orders will be obeyed, all payments paid, all transactions transacted – on time and to n decimal places.

Yet banks, like all companies, are run by humans, inevitably the source of all human errors. Whatever instructions you’ve issued – whether by phone, online, or in person – there’ll always be a human involved somewhere down the line. It could be the person who takes your phone call, the ‘techie’ overseeing the online database, or the cashier who ferries your requests to the bank’s system.

This isn’t a criticism of banks. It’s an acknowledgement that human error is as ubiquitous as humans. However impressive the security checks, no organization anywhere on the planet can guarantee 100% safety.

Then there are the technical errors, computer errors, software errors... Whatever label they come with, they can all result in problems with your payments: problems which can affect your credit rating, saddle you with fines for late payment, and potentially land you in debt that you are responsible for clearing.

Which is why you should take the time to check your bank (and credit card) statements. Not just to look for hints that you’re the victim of fraud, but to make sure your planned transactions have been carried out on time and in full.

Action: Check your statements, then file them in date order, so you can refer back to specific instances whenever necessary.

Category Three – Letters

Disagreements can be terrible things, however trivial the subject matter. When it comes to finance, verbal agreements are often described as being ‘worth the paper they’re written on’.

So when you agree something with a creditor / debtor / customer / supplier, get them to put it in writing. When it arrives, keep it. Scan it, file it – do whatever makes it easy for you to find it quickly.

Nothing settles an argument quicker than: “In your letter, dated May 5th, you state – and I quote…”

Similarly, keep copies of everything you send them. If you think it’s necessary, send it registered, and keep the receipt stapled to the copy.

Action: Keep – and file – copies of everything.

A Final Thought

Like it or not, we live in bureaucratic times. Paperwork is everywhere, so learning to deal with it effectively is an important part of modern life.

The better you do that, the more you’ll save on three of the most valuable commodities in your life – time, money, and patience.

*About the author: This article was contributed by Melanie Taylor of Think Money, who provide debt help & advice.

*Image Credit: Photograph by lejoe [via Flickr Creative Commons]

Vanishing Act of the Thin Line between "Want" and "Need"...

noreply@blogger.com (ispf) — Thu, 11 Sep 2008 03:19:00 +0000

Our little baby girl is here! She is such an angel! We are getting settled in and things are beginning to fall in place. Knock on wood. I have a lot of help and support from my family and the "better half" has shown that he truly deserves that name :) But still, somehow, there seems to be no time for anything else, other than learning to be parents! Posting on this blog is going to continue to be pretty sparse, unless I have some guest posts to publish.

A quick note on the personal finance front - it seems to me like the thin line between "want" and "need" has started pulling a vanishing act on us. For instance, we have a very good crib (for upstairs) and a pack 'n play which acts as a bassinet (for downstairs). But within the first two days of bringing our baby home, we ran out to get a co-sleeper so we can put her on the bed with us. She would neither sleep in the crib nor the bassinet and I don't know what made us think the co-sleeper would work... To cut a long story short, now in addition to the crib and bassinet, we have a co-sleeper that she won't sleep in.

There are so many other things we have done this with! Her grand parents have got her a tonne of newborn clothes and we had gone and bought a few too. Within a few days of bringing her home though, we realized that the most convenient clothes were ones that did not have to be slipped over her head and did not have zippers or lace etc. So we ran out and got more sets of the one type of outfit that we like, while the rest of the clothes are just sitting in the closet, waiting for her to outgrow them.

We have gone from a household of two part-time residents (we did spend a lot of time at the office!!!) to a household of five full-time residents (at least until the better half returned to work), and the cost of everything from utilities to groceries has more than tripled! I was expecting the costs to increase (though not as much!) and have a buffer for it. What is completely unexpected though is this sudden inability to distinguish between what we really need and the sleep-deprivation induced urge to buy stuff with the hopes that they will magically make things smoother! Oh well, it ain't everyday that you have a precious little baby, so roll with it the way it goes for the next few months (years?) I guess...

Eight Questions about 529 Accounts for Jonah Keegan, the Founder of Freshman Fund

noreply@blogger.com (ispf) — Thu, 04 Sep 2008 17:10:00 +0000

These days, whenever I get some time, I have been thinking and reading about 529 plans and trying to determine if we should have one for our baby. Coincidentally, I was recently contacted by Jonah Keegan about an interview to introduce his site Freshman Fund to the readers of this blog. Since its a good chance for me to get some of my questions answered, I quickly took up the offer! I hope some of these questions and answers will be helpful to you readers as well. If you have more questions, I have added the contact information for Jonah at the bottom of the interview - please feel free to contact him directly.

Jonah Keegan is the founder of Freshman Fund. Freshman Fund helps parents save for college by giving them a free online gift registry for their college fund. When you register your 529 college savings plan at Freshman Fund, gifts from friends and family go directly into the plan.

OK. Here we go...

ISPF: With so many different 529 accounts available, how can one determine which plan is the best for them?

Jonah: Like Smokey and the Miracles say, "You Gotta Shop Around." The best 529 is going to be different for each family depending on their child's age, their investment pattern and other factors. Similar to big-ticket purchases like a computer or television, you will find that there are a large number of plans that fit your basic needs, and from there it's a matter of doing some research or working with your financial advisor to determine the best choice for your family.

The good news is that if you do want to enroll in a 529 directly, there are some great online tools for comparison-shopping.

The number-one industry expert is Joe Hurley, and his site SavingForCollege.com has great features that let you look at the plans available in your state, run comparisons on different plans or plan features, and see what he thinks are the current top-rated plans.

ISPF: How can parents pass word to relatives and friends that they would prefer to receive the gifts in the form of contribution to the 529 accounts?

Freshman Fund makes this easy in two ways.

First, we have a contacts manager that lets you import your webmail or social network address book. This makes it easy to build and manage messages on our site, as well as discover if anyone in your address book is already using Freshman Fund.

Second, we've included a notification message that you can send right from your Freshman Fund account. Login, and you will see a "Notifed" link next to your student. Clicking the link takes you to our notifications page (Tip: Import your contacts first and adding message recipients is as easy as clicking on their names, right from your message page). We provide a default message, but you can customize it however you like before you send.

ISPF: What are the limits on how much can be saved in a 529 account each year? How do contributions from friends and family effect this?

The limit on 529 savings for each student is set by the IRS gift tax exclusion limit, currently $12,000. This is a limit per student and not per donor, so parents who save or receive gifts at or near this amount need to keep an eye on their annual savings. Also, this is not a per plan limit, so if a student has multiple 529s in their name, they will also need to keep track of their account balances.

In part, this is one of the problems we started Freshman Fund to solve. Parents were telling us that between grandparents, godparents and themselves, they had multiple 529s open for their children and no idea how much money was actually being saved each year. Freshman Fund lets parents consolidate 529 savings to a single account to better plan for the future (and avoid a visit from the tax man!).

Oh, and most plans have a maximum contribution limit as well, it varies from plan to plan, but on average it's more than $250,000 per account.

ISPF: How does a 529 account affect a child's federal financial aid?

The impact of a 529 on a student's financial aid depends on who owns the plan (the beneficiary of a 529 is always the student, but the owner could be the parents, grandparents or the student themself).

If the 529 is owned by the parent or another non-beneficiary, it is treated as a parental asset, and assessed at a 5.64% rate when calculating financial aid awards.

If the 529 owner and beneficiary are the same, the rate could be as high as 20% for the 2008-09 school year because the funds are treated as a student asset, but starting with the 2009-10 school year, they will be treated as a parental asset whether or not the parent owns the 529, and will be assessed at the 5.64% rate.

Also, 529 distributions are not counted as income for that year, which helps when next year's financial aid eligibility is calculated.

ISPF: What happens if my child does not want to go to college?

Parents with a child who does not attend college can transfer the account to a sibling, grandchild, step-sibling, cousin, niece, nephew or in-law without incurring any taxes or penalties.

Other transfers would be viewed as "non-qualified withdrawals" by the IRS, and the account would be subject to federal (and possibly state) income tax on any account earnings, as well as a 10% federal penalty tax on earnings.

ISPF: What qualifying expenses can be paid with 529 savings without incurring a penalty?

The easy ones are the following: tuition, room & board, any mandatory college fees, books, and a computer (if required).

From there, it varies from plan to plan and state to state, if you have a question about something that is not on the list above, consult with your plan manager or financial advisor.

ISPF: Does investing in a 529 make sense for families who may possibly return to their home country before the children start college?

Much like the question "What's the best 529 for my family?" there is no one answer to this question, families who foresee this scenario in their future should research all of the available college savings options, including 529s, or talk to their financial advisor before making a choice.

I can tell you that 529 savings may be used to pay for many non-U.S. colleges, you can search a list of eligible institutions at http://www.savingforcollege.com/eligible_institutions/, in the STATE: drop-down list, choose Canada for a Canadian college, or Foreign Country for any other international school.

ISPF: What are some alternatives to 529 accounts?

Here are some of the more popular college savings options. Space, time and the limits of my expertise prevent me from including every feature of these savings options, but here are a few highlights.

MUM (Money Under the Mattress... or in a no-interest savings account)
Very rarely a wise choice for any type of savings, and college savings are no exception. Loses ~3% per year at the current rate of inflation, and if it's earmarked for college then you're in even worse luck, as college costs inflate at about twice that rate, or ~6% per year.

U.S. Education Savings Bonds
Savings bonds can have tax benefits at both the federal and state level, but the exact nature of the benefit varies depending on the exact type of bond purchased. Unlike 529 gifts, savings bonds are not covered by the gift exclusion. Also, to qualify for the tax benefit, savings bonds may only be used for tuition and fees, whereas 529 distributions can be used for the broader array of expenses mentioned above. The annual limit on bond purchases is $5,000 per owner per type of bond, or $90,000 over the 18 years of a typical future freshman's life. In contrast, 529 plans have an average lifetime maximum contribution of more than $250,000.

UGMA/UTMA
The Uniform Gift to Minors Act and Uniform Transfer for Minors Act are custodian accounts set up for minors by a donor, usually a parent or guardian. The donor is the custodian of the fund, but the donations are an irrevocable gift and must be used for the benefit of the minor. Further, custodianship terminates when the minor reaches the legal age (18 or 21 depending on the state of residence) and may be spent on whatever the beneficiary desires. As you might expect, UGMA/UTMAs are treated as student assets when making financial aid determinations.

Coverdell Education Savings Accounts (ESA)
An education savings account that is more flexible than an UGMA/UTMA, and unlike 529s, can be used for pre-college education expenses. HOWEVER, the ability to use Coverdell ESAs for pre-college expenses will expire at the end of 2010 unless Congress intervenes to preserve this feature. Two other things to note with Coverdell ESAs is that only $2,000 per year may be saved in a beneficiary's name, regardless of who owns the account or how many accounts exist for the beneficiary, and the government steps that limit down, ultimately to zero, starting with incomes of at least $190,000 per year for couples or $95,000 for single filers.

I would like to thank Jonah for taking the time to answer my questions. If you have any additional questions about Freshman Fund, please feel free to contact Jonah at jonah dot keegan at freshmanfund dot com, or 347-416-6498. Please note that he is not a financial advisor, so while he can provide information, he cannot make recommendations. For specific advice, please consult with a financial advisor or tax professional.

Chasing Money - Is There Ever An End To It?

noreply@blogger.com (ispf) — Thu, 07 Aug 2008 02:00:00 +0000

I chatted with an old friend today after a long time. And while we were talking about our jobs and how our companies fared, he told me that they had recently got a new CEO. And as a matter of conversation, he mentioned that the new CEO was going to be paid something along the lines of 30+ Million dollars in stocks (restricted units, not options!), in addition to 1.2 Million dollars in annual salary and 2.4 Million dollars in annual bonus, to take the job. The numbers were just mind boggling. And this new CEO guy is just 45 years old!!! As most conversations with old friends go, we were all over the place, and before we knew it we were debating about whether we would even want to be in the shoes of this guy.

On the one hand, being just 45 and being offered so much money to take on a job seems like an incredible accomplishment. Especially for a guy who was just like us - with a Ph.D. degree and not a fancy schmancy M.B.A degree or someone who wasn't exactly born with a silver spoon in his mouth. How cool is a life with millions of dollars to throw around!!! On the other hand, how much life would this guy have had? He must have worked his butt off to get where he did right? Sure, luck and timing and being at the right place at the right time had something to do with it.... but unless he burnt a lot of midnight oil and stressed out enough to turn several hair gray, I doubt he could have got where he is today. When you are busy building such a high profile career, where is the time for the simpler things in life? To smell the roses, to attend your children's plays and recitals, to cook a meal with your spouse and enjoy it on the back porch? What good is several million dollars, if you don't have time to enjoy spending it? We consoled ourselves that our average Joe jobs that paid decent salaries while allowing us time with our families was good enough.

After I hung up the call though, I couldn't stop thinking about this. Are we really that different from this CEO guy, other than the fact that we don't make a multi-million dollar salary per year (that's a big glaring difference, but lets ignore that for a second, shall we?). Let me take my example. I am currently *very* pregnant but I still continue to go to work, so I can save all my PTO for the time after the baby comes. Even with all this saved vacation and the short term disability pay, I will have only about 9 weeks of time off with my new baby. And then I need to make a choice - either go on unpaid leave or return to work. And I am not very open to the idea of going on unpaid leave for long periods of time :(

Now, do we *need* the pay I will get by foregoing those few weeks of unpaid leave? Well, not really. The better half makes a decent salary, and we have some money in both short and long-term savings and we can survive fine without my paycheck for several weeks, months or maybe even years. So, why am I so reluctant to forego a few weeks of salary? Ultimately, are we all addicted to money so much, that we cannot stop chasing it? Do we all just trade in our time blindly in the pursuit of money? In some cases like that of the CEO guy its millions, and in other cases like me it is a few thousands but is it the same thing? Do we all intentionally (or out of habit) just chase financial security at the cost of quality family time?

I don't think I am cut out to be a stay at home mom. I admire those that have made the brave decision to give up their careers to raise families. But a large majority of my friends and the people I know are like me - they have reluctantly got back to work after having babies. They spend the days from morning to late night switching roles - an ideal employee to an ideal mom to an ideal spouse. Trying to advance the career and bring in a bigger paycheck, while at the same time trying to be a good mother and wife and provide a good nurturing family. Balancing, juggling, being super women....

What is it that fuels this insane desire to chase money? Is there ever an end to it? Do any of you ever wonder, or is it just my pregnancy hormones talking? :)

*Image Credit: Photograph by David M* [via Flickr Creative Commons]

PS:This article was featured as an Editor's Picks in the Carnival of Personal Finance #165 over at No Debt Plan. Head on over there for some really good reading...

Don’t Go Down with the Economy!

noreply@blogger.com (ispf) — Wed, 30 Jul 2008 03:14:00 +0000

(This is a guest article by Melanie Taylor*)

It’s hard to open a news site or newspaper without hearing more about the economic woes besetting the world in general and the States in particular. From credit crunch to housing crisis, it seems like everything that could go wrong now officially has. It’s no wonder the airwaves are full of heated debates disputing the meaning of the ‘R’ word, and whether or not we can officially use it (yet).

A recession might not be ‘real’ until we’ve seen two consecutive quarters of decline in real GDP, yet plenty of individuals started suffering long before the economy as a whole. Regardless of the nation’s communal health, the real question is this: “What’s my financial situation – and how can I improve it?”

There’s always something you can do (basically earn more & spend less) to improve your finances, and it’s always a good idea.

At a time like this, it’s simply more important.

Rule 1: Use it wisely
You may be tired of hearing the word ‘budget’, but money management is more important than ever during times of economic uncertainty. So figure out your income and expenditure. Spend a month writing down everything you spend. This can deliver three benefits – practical, psychological and motivational.

Practical. Everyone wastes some money – it’s just a question of how and how much. Pinpoint where you’re wasting money and you’ll know what to do.

Psychological. Doing ‘the wrong thing’ is always harder when someone’s watching, even if it’s only yourself. If you find that ‘self-auditing’ helps keep you on the straight and narrow, keep it up – when your debts are paid off and today’s problems are a distant memory, this could be the key to saving for retirement.

Motivational. Calculate how much you could save in three months, or in a year – there’s nothing like multiple zeroes to inspire an economy drive...

Now use that calculation to figure out how much faster you’ll be able to pay off your debt, and how much interest you’ll be saving. The sooner you clear your debts, the sooner your money will be your money again, to spend or invest as you see fit.

Rule 2: Don’t panic
Trading down – either property or cars – can be a good idea and save you a fortune in the long run. Just make sure you don’t:

Overreact. Don’t sell your $250,000 house because you need $5,000.

Mistime your reaction. Don’t, for example:
- sell property during a property crash – there may be alternatives, such as renting it out and moving into a smaller property yourself.
- sell shares when they’re down – if they’re worth $500 now and might be worth either $0 or $5,000 in a year or two, isn’t a $4,500 profit worth risking a $500 loss?

Rule 3: Careful what you borrow – and how
There’s nothing wrong with debt per se. ‘Healthy’ debts can more than pay for themselves: your mortgage might be your ticket to property-boom profits, for example, or your car loan might be your only path to a better-paying job.

‘Unhealthy’ debt, on the other hand, can lead to a miserable existence that’s the exact opposite of the picture painted by adverts of smiling people waving credit cards at shop clerks. As a general rule, credit cards are fine if you use them because they’re convenient – and pay them off a.s.a.p. – but once you start using them to borrow money, you’re running a real risk of entering a ‘debt spiral’.

So if a slowing economy means you’re faced with short-term cash flow issues, remember there are better ways of dealing with them. Just three ideas:

Talk to your mortgage provider about taking a payment holiday (a short break from making mortgage payments).

Cut out luxuries altogether until you’re back on track.

See what you can sell to raise cash.

If you’re just a few dollars short, you may be able to find it elsewhere, without resorting to credit cards.

And if you’re faced with a serious shortfall, then borrowing a lot on your credit cards is almost certain to lead to serious interest charges, especially when lenders are reacting to economic problems by raising interest rates.

Rule 4: If you need debt help, get it!
There’s no shame in asking for help with your debts. If you’re frightened that people will think you’re a fool for being in debt, how much more foolish would it be to let that fear deter you?

The kind of help you need depends on your situation: your existing debts, your current finances and your future earning potential.

You might just need some advice from a seasoned professional – someone who understands how budgets work, how lenders think, how repayment plans are calculated…

Or you might need a professional debt solution. Talk to a professional who understands the various solutions available and can advise you on which one would be best for you. Make sure you find a company that offers a range of solutions so you won’t feel they’re pushing you down a path that isn’t appropriate.

Rule 5: Remember you’re an individual
Finally, remember you’re not the USA. Your finances and the country’s are not inextricably linked.

A few tips.

Threats: prepare for the worst

Do whatever you can to stand out at work – take night classes, volunteer for special assignments, do overtime...

Cut your spending to an absolute minimum and save – if you do lose your job, you’ll need this safety net.

Read the papers. If your company’s in trouble, don’t be the last to know.

Keep your eyes open for alternative employment, whether you’re just establishing a Plan B or convinced that your job / company is doomed. Just don’t forget the ‘last in, first out’ rule – unless you’re confident about the new company’s future (and your own in it), making yourself the ‘last in’ could be a terrible move.

Opportunities: hope for the best

Think about moving into a ‘recession-proof’ industry that does well in troubled times (food, for example, medical services, energy provision or debt collection)

If you’re in business, be prepared to seize the market share that’s freed up when competitors go out of business.

If you have a bit to invest, keep an eye out for shares that have come down in price because of today’s troubles. If a big company’s shares have fallen from $5 to 50c, there’s a good chance they’ll be back at $5 in the not-too-distant future. It might be best to spread your bets – rather than buying $2,000 of share in one company, buy $200 in ten companies.

If you have a lot to invest, do your homework and look out for cheap property.

Just as some people suffer more than average from a (potential) recession, others suffer a great deal less. Plenty of people buck the trend altogether and do as well as usual – or better. There’s a lot of luck involved, but there’s also a lot of skill…

*About the author: This article was contributed by Melanie Taylor, of GregoryPennington.com, a debt management specialist.

*Image Credit: Photograph by lemonjenny [via Flickr Creative Commons]

Hurdles on the Path to Career Success – Part 2

noreply@blogger.com (ispf) — Thu, 24 Jul 2008 01:58:00 +0000

Last week, in Part 1 of this series we looked at a few hurdles that we create around us that prevent us for being as successful as we can otherwise be. Here is a list of few more gotchas to watch out for.

Being an island
The world today is a much smaller place than yesterday. No matter who you work for – be it for a small firm, a large corporation or for yourself, unless you are willing to go out, network and make contacts, you probably will not be able to succeed on a large scale. It does not mean that you need to go out and have drinks with peers and clients every day of the week. But you do need to make an effort to shed your shyness, leave your comfort zone and venture out of your shell to meet people.

How to fix it: Make some key friends. If you are an extrovert and it comes naturally to you to make contacts, you will likely not have this problem. If you are an introvert, find those few extroverts that you are comfortable with and be friends with them. You don’t have to know everyone – just knowing those one or two people who know everyone will get the job done most of the time!

Not marketing yourself
If you are still naïve enough to believe that if you are good, people will notice you, then it is time to wake up! In a world of cut-throat competition, if you cannot market yourself, you could be in for some serious disappointment. It does not matter whether you work in a research lab or a multi-national corporation – you need to learn to sell yourself.

How to fix it: Practice! If you are from a cultural background where boasting is shunned, recognize that and find ways to make your accomplishments noticed. Learn to speak up, and take credit for what you have done. Make sure that your manager knows how much effort you have put in the project and the small successes you have had. Learn to keep your failures to yourself, unless you have been asked about it, in which case learn to share them in a positive light.

Not being able to take criticism
There is positive criticism and there is negative criticism. And chances are, you will come across both at your work place. Getting defensive and not learning from the criticism is and will always remain one of the biggest down fall of most people.

How to fix it: When you receive positive criticism, thank the person and try to implement the changes suggested. These can help you grow both as a person and an employee. On the other hand, if you receive negative criticism, go ahead and make the necessary changes – you can still learn from these. In addition, work with the person to see if you can help them grow as a person and improve their communication skills. If not, just brush it off as some behavior quirk and move on.

Not keeping up with the latest advances
It seems like every day there is a new, easier and “improved” way of doing things. Sometimes it is exciting. At other times, it could be downright annoying, disruptive or scary. But if you hesitate to embrace the change, then you will soon be replaced by someone else who is not so threatened by it.

How to fix it: Network with the younger generation and stay in touch with what is the latest. Read voraciously, and attend trade shows, conferences etc. Do not hesitate to ask someone for help if you find the technology intimidating. If needed register for classes – either at the company’s learning center, or community college, or online!

Being prejudiced
All of us have our quirks. There are some things that we are not quite comfortable with. But in a world where half the office is in the US and the other in India or China, half the work force is male while the other is female, and the skin color takes on all shades of white, black and everything else in between, unless you learn to overcome your prejudice, you will have trouble adjusting to your career.

How to fix it: Look deep into yourself to find out what caused the prejudice. Maybe it was a dinner table discussion between your grand father and your parents that instilled the prejudice in you – do you still think it is valid? May be some experience while growing up caused you to start looking down on a particular race – isn’t it time to grow past it? Again, getting to the roots of your prejudice to free yourself will not only help you in your professional life, but personal life as well!

Nobody is perfect, but we can all try to get rid of some of the limitations around ourselves and aim to be better than we are now. I am sure there are a lot more hurdles out there that prevent us for reaching our full potential for success. I would love to hear your views on this. I will write more on this topic in the future weeks.

*Image Credit: Photograph by misspiepie [via Flickr Creative Commons]

Hurdles on the Path to Career Success – Part 1

noreply@blogger.com (ispf) — Thu, 17 Jul 2008 00:55:00 +0000

All of us have inside us the potential to succeed. To go above and beyond the average. But over a period of time, consciously or not, we end up creating hurdles around us that block us from being as successful as we can otherwise be. This is true both in the career, and life itself. Here is a quick look at some of the common hurdles in the path to career success.

(What has this got to do with personal finance, you ask? Well simple. The personal finance equation has two parts to it - how much you make and how much you keep. And needless to say your career success has a huge impact on how much you make. So there you go. Now, lets move on to the focus of the article - the hurdles on the path to career success)

Trying to please everyone
Remember the old adage “He who tries to please all pleases none”? This is particularly true at work. If you try to please your colleagues, boss and subordinates all at the same time, eventually you end up not pleasing anyone. Worst of all, you could end up with a particular sense of dissatisfaction that can ruin your peace of mind.

How to fix it: Prioritize! The first and the most important person is of course yourself. You need to be happy and content with what you do. Next, it should be the boss/manager who is responsible for your career progress. Next, is your subordinates. Finally, your friends and colleagues.

Not clearly understanding the expectations
If you do not communicate well with your manager and your peers, your understanding of what needs to be done, and theirs can be very different. Even if you put in a lot of hard work, if you are working against a wrong set of requirements, eventually none of it matters.

How to fix it: Listen! And then repeat. It may sound silly – but a simple repetition of what the expectations are can clear up the understanding. Make the following sentences part of your discussion with your manager and peers: “Let me see if I got it straight – you want me to…”; “OK, so here is my understanding. Please let me know if this is correct…”; “Based on what you just said, here’s the list of things I need to get done…”. If you are a manager, encourage your subordinates to summarize your discussions and listen carefully for any misunderstandings.

Too focused on job security
Last year my company laid off a little over 7% of the job force. There is nothing unique or strange about that number. For many of us that work in the tech sector, lay off is a part of life. Unfortunately, some of use adjust to this fact better than others. If you are worried to take risks and speak up because you are too focused on the job security, then you could be seriously curtailing your own growth – both professionally and personally.

How to fix it: Prepare! Have a list of other companies that you can work for if you get laid off. Keep your resume updated. Have an emergency fund and maybe some sources of alternate income. Once you are prepared to face a lay off, you will stop worrying about it and be willing to take on more challenges at work.

Letting personal life influence work life
Everybody has issues in personal life at some point or the other. There isn’t one of us that has a perfect hassle free life out of work. There are ups and there are downs. If you let it effect the quality of work, then eventually your career will come tumbling down.

How to fix it: Practice professionalism. Learn to mask your emotions at work. In fact, take it one step further – when you feel utterly dejected in personal life, make sure you find ways to achieve success in your work life! When you can make your work complement your personal life and offset the downs, you will succeed not just in your career but also in your personal life!

Short-term thinking
Last year I was assigned to a project which I was not too keen on doing. The work was boring and I thought it did not use my “potential” well. Needless to say I was quite disappointed and not very motivated. One of the days when I was stuck in traffic, I was thinking about this, and realized it was not all bad. The project is has high visibility, so if I did a good job, I can get some recognition. In addition, there is no defined team lead – and I could easily step into the role and take on more responsibility. The more I thought about it, the more it seemed like this project was far better in the long term than the project I had coveted and was hoping to be a part of.

How to fix it: Step outside and think long term. How will what you are doing now help you 2 years down the line? 5 years down the line? What are you learning now that will prepare you for success in the long run – not the promotion next year, but in the next job that you accept in some other company? And the one after that? If you get into the habit of questioning the long term implications of your every day actions, you can escape the myopic stand that most average people end up taking.

These are by no means the only hurdles that stop us from being successful in our careers. But if you do identify any of these as part of your life, work to improve. All of us are mere humans and susceptible to flaws. The real tragedy is if we do not identify these flaws and try to fix them! I will post part 2 of this article soon.

*Image Credit: Photograph by Stew pendous [via Flickr Creative Commons]

Wiping out Emergency Savings to Pay off Debt

noreply@blogger.com (ispf) — Sun, 22 Jun 2008 16:02:00 +0000

In the personal finance blogging world, when you bring up the question of whether your primary focus should be on building an emergency fund or paying off your debt first, you will likely get a very strong passionate response supporting one or the other. Those belonging to the emergency fund first camp argue that without an emergency fund, it is easy to slip into the murky world of more debt when unexpected circumstances strike. On the other hand, those belonging to the pay debt first camp argue that to get the best mileage out of your money, use it to pay off high interest debt, instead of letting it sit around in a low interest savings account (and compared to the hay days, even the best online savings accounts look like low interest savings accounts these days!). We definitely belong to the latter camp. For us, debt feels like a constantly nagging thorn on our side and during the past couple of months we pretty much wiped out our emergency funds to pay off our debt. While there were heavy psychological and emotional overtones to this decision, it was not made lightly. I would like to lay out our reasoning here, in case someone else is in a similar boat and finds it interesting.

The psychological and emotional reasons

Before going into the logical reasoning, let me first provide an overview of our situation so it may help you understand why we were so itching to pay off the debt. During our years in grad school, which were our first few years in the US, we had amassed a whopping $42,500 in debt! Coming to the realization of how deep a hole we were in and pulling ourselves out of it bit by bit was a experience that left a permanent distaste for debt. For around 4-5 years after that we were clean. During those years we have been saving and investing aggressively. Last year however, when our trusted 14 year old 150K mile car died, we gave in to our whims and ended up buying our dream car. It was a pre-owned vehicle but way too expensive and not having the liquid cash in hand we ended up financing it. (If interested, you can read my confessions and justifications regrading that decision). While we have no regrets about the car, the decision to finance it has been sticking out like a sore thumb to us.

What makes matters worse is that during the past few months there have been rumors, which are turning to be less of rumors and more of a certainty as the months pass, that our company could soon be bought over, and I will likely lose my job. Being pregnant, it is not going to be easy for me to go find another job immediately. While I think we can handle the dramatic change from double-income-no-kids to single-income-new-baby without going financially downhill again, I would feel a lot more comfortable if we can do it without the added stress of carrying debt. So a couple of months back, when I received the stocks for the past 6 months of investment into the employee stock purchase plan, I sold them for an immediate 15% profit, withdrew almost all the money from our emergency savings and plonked all that money on the cashiers desk to payoff our car loan. Even though depleting the cash reserves was scary, the thrill of being debt-free again (apart from mortgage, which we are continuing to pay off aggressively) is exhilarating!

The plan for surviving emergencies

We did not take the decision to wipe out our emergency savings lightly (nor do I think anyone should, no matter how much of a staunch supporter of the pay debt first ideology they are). Here is our reasoning which is very specific to our situation.

Daily expenses on job loss

Fortunately, since both of us work, this case is not as severe a threat to us as it is to single income families. Even though there is a possibility that both of us could lose our jobs within a span of few weeks from each other, I doubt that it is likely to happen (in the inadvertent case that it does happen, one of the cases listed below should cover us at least for a few weeks, and hopefully one of us can find a job by then?). Currently, we pay twice the amount to the mortgage, max out both our 401Ks, invest in one employee stock purchase plan and could pay our car loan. In case of one job lost, we can cut down the aggressive mortgage payments and possibly reduce the contribution to the 401K just enough to get the employer match. Also, with the car loan gone, that is some more money freed up. With a slightly more frugal lifestyle, I think we can get on by fine for our daily expenses and possibly manage to save a little each month to rebuild our emergency account.

Additional unexpected expenses up to $1000

While we were students, both of us used credit unions. When we started working we started using a regular bank. But since our credit union was our oldest standing account, in the interest of maintaining a better credit history, we decided to leave our credit union accounts open. And in order to keep it in good standing we each have a direct deposit of $50 or so into that account each paycheck. Since we have been doing this siphoning right from our first paycheck, we do not really miss that $50 each paycheck. And since this account grows oh-so-slowly, we do not consider it a part of any of our accounting. Over a period of time we have each had a few hundred to sometimes a cushy $1000 accumulated in that account unnoticed. And it has been a good source to tap into when we have small emergencies but do not want to dip into our real emergency savings. Currently, we probably have low hundreds in each of our accounts, but with monies from both our accounts pooled, we should be able to handle small unexpected expenses up to $1000 or so.

Additional unexpected expenses up to $6000

We are not really into stock market investing (other than our 401Ks). But last year when I had an additional $5K, I had opened a Vangaurd account and had setup an auto deduction of $100 per month to go to this account. With the stock market slump, this account barely stands at $6000+, in spite of a year passing by with money being pumped into it on a regular monthly basis! While I would love to keep this around for a long time and see where it goes, I will not be terribly upset if I have to sell the index funds to pay for an emergency. Sure, I will incur some taxes and possibly lose some money, but frankly I have not been making any money on that account since I got it and the rate of returns is probably at 0% or slightly negative. So, using it up for paying for an emergency will not bother me at all!

Additional unexpected expenses up to $15,000

When the interest rates on savings accounts were high, I used to play the 0% APR balance transfer game quite heavily. With the slump in interest rates the credit cards charging fees for balance transfers, I don't play this game any longer. But between the two of us, we have access to around $80K - $100K in credit and I am assuming that with the car loan paid off and no outstanding debt, we should be able to have access to at least $15K at low interest rates. For instance, currently, I have an outstanding offer from one of my cards for a 0% balance transfer for one year, with 3% fees capped at $199. I have a $17K credit limit on that card (if necessary, by transferring credit lines, I should be able to increase that to $42K). I know this is not something I can rely on, since the offers change from time to time, but it makes it easier to justify against letting money sit in an emergency account earning next to nothing in interest.

Additional unexpected expenses up to $30,000

As listed early in the history of this blog, our financial goals and the approach to realizing them is to rely primarily on our 401K contributions, and owning our house outright as soon as possible. In addition to that, our outside investments (as and when we can) have been mostly into the real estate back in home country. During the past few months, with the car loan, medical expenses etc, we have not been able to do much towards the overseas investments. But during the golden 4-5 years in the middle when we were debt-free and saving like squirrels, we did manage to stash away a little in these investments. In the worst case, for largish emergencies we should be able to liquidate some of our holdings and pay for it. This will likely cause a lot of stress and heart ache and may even cause us to lose some money, but if it an emergency that large, I doubt we will really care! What's money good for if you cant use it when you need it? Besides, we will never stash away $30K in a liquid emergency fund, so this would probably be inevitable in case of large emergencies anyway!

Additional unexpected expenses > $30,000

Finally, for those super large blows (which I hope we will not have to face in this lifetime!!!) I think we can dip into our last resort - a 401K loan, or a home equity loan etc. This one will likely impact our ability to retire on our own terms, but if we are faced with super large emergencies, and live to tell the tale, then that will likely be a small price to pay. Besides, we are still young and we should be able to rebuild from scratch....

Since this analysis was specific to our situation, I don't know if it will help anyone make their own decisions. But it sure was helpful to me in ensuring my peace of mind that in spite of depleting our emergency fund, an emergency in the near future (until we plump up our emergency funds again) will not throw us over the edge into the debt hole again. Irrespective of whether you have a blog or not, I encourage you to do this analysis with your own situation. If you are in the same boat as us (early stages of financial life) or much ahead, it will help offer the peace of mind that you can possibly survive many of life's curve balls. If you are where we were 5 years back (just paid off all debt, but don't have much in savings yet), I am sure an analysis like this will motivate you to stay frugal and save as much as you can. And if you are where we were 7-8 years back (with a pile of debt in front of us, and no savings whatsoever to speak of), then I am sure an analysis like this will push you into digging out of that debt hole much faster. Either ways, feel free to share your thoughts!

*Image Credit: Photograph by 24thcentury (via Flickr Creative Commons)

5 Ways to Save Money in College

noreply@blogger.com (ispf) — Tue, 03 Jun 2008 19:56:00 +0000

(This is a guest article by Heather Johnson*)

When you’re in college you never have enough money. It’s just the way it is, unless you’re a trust fund brat. If you don’t have mommy and daddy’s big pockets, you have to find alternative ways to get by. Chances are most of your purchases will revolve around beer and books. With this in mind you have to figure your budget for each semester to have a goal of saving enough during the summer and winter breaks. But when you’re actually at school, there are many ways you can make sure you always have a little dough to spare. Here are five tips for saving money when you have no real income while in college:

Have a financial record. This can be as easy as having a sheet of paper in your desk where you can keep track of your income streams and expenses. Write down how much you’ll have coming in during the month and what you have going out. This will keep you prepared and aware of what you have at your disposal. Once you have this knowledge you’ll know what you can afford when it comes to the weekend. Too bad the weekends start on Wednesdays. Good luck.

Keep your receipts. This sounds tedious but it’s important in case you’re ever overcharged. You can’t afford a company’s mistakes. If you’re overcharged you’ll have the receipt to recoup your lost money.

Spend money only on what you need. If you went to the store for a twelve-pack then don’t come out with a case and a bottle of wine. Only buy what you absolutely intended on buying. You never know when a parking ticket will appear on your windshield or when you’ll need a new set of tires. Always be prepared for a hidden expense.

Consider your options. Go to a local bank near your school and speak with a financial services representative about the different programs they have specifically geared to college students. Most banks will have some system in place for college students and are great ways to get introduced to the real world.

Pay your bills on time. The last thing you need are late fees and other expenses associated with not paying your bills on time. Stay current with your credit card bill as the interest alone can clean you out later on down the road. If you stay up to date with your bills there will be no out-of-the-blue fees.

*About the author: This article was contributed by Heather Johnson, who is a regular writer on the subject of instant credit card approval. She welcomes your questions, comments and writing job opportunities at heatherjohnson2323 at gmail dot com.

How Much Should You Borrow for Your Education?

noreply@blogger.com (ispf) — Wed, 28 May 2008 20:22:00 +0000

(This is a guest article by Miranda Marquit*)

One of the items that seems to continually go up in cost is education. It's up there with food, health care and gas. Only you don't usually have to take loans out to buy those other things. The rising cost of higher education pretty much guarantees that you will need to take out student loans in order to help fund your degree.

The good news is that there are many sources for student loans, both from the government and from private sources. And even in the current climate, there are still plenty of loans available. Indeed, the danger becomes borrowing too much, and then having to pay it all back. While student loans can help you offset living expenses so you can focus on school (in addition to paying the cost of tuition), few people really need the maximum amount they are approved for.

My mother's voice echoes in my head "Just because you can, doesn't mean you should." This is just as true for figuring out how much to borrow in student loans.

Create a budget

Take a realistic look at your expenses and your education costs. Find out how much you will pay in rent, and get an estimate of the cost of utilities. If you live in housing provided by your school, most utilities are included in the cost of your rent. Even if you don't, many apartment managers can give you a good idea of how much utilities will cost. Estimate a food budget, transportation costs and even a little fun money. Are you planning on getting a job? Figure any income into your calculations. A part time job will reduce the amount you will need to borrow. Also, if you have scholarships and grants, that will reduce your student loan amounts.

Multiply your estimated monthly expenses by the number of months that you will be in school. Then add that number to the cost of your tuition, student fees and estimated cost of books. Take the amount of scholarships, grants and estimated income and subtract that from your total expenses. The difference is how much you will need to borrow. In order to allow for leeway, take 125% of that difference, and round it up to the nearest $1,000. Example:

You estimate that your total cost for attending school is $30,000. Between scholarships, grants and a part-time job, plus your savings, you have $20,000. The difference is $10,000. Multiply 10,000 by 1.25 to get 12,500. Round it up, and you would borrow about $13,000. Each year (if you are getting a four year degree), you would borrow $3,250.

Other considerations

You also need to consider how much you can afford to borrow. With the job you get when you finish, will you be able to handle the loan payments? If you won't be able to afford the loan on your salary, you might want to reconsider your major, or the amount that you are planning to borrow.

Perhaps you should consider a less expensive school as well. Private schools can cost as much in one year as many state school cost in the entire four years. Consider that most private schools do not offer a big enough edge to make paying (and having to borrow) the extra worth it.

Consider your loan type

Another thing to consider is the loan type. If possible, avoid private student loans, since the interest rate is usually higher, and this will result in paying more money back. A federal student loan will result in a lower interest rate, and if you get a subsidized loan, you will not accrue any interest until after you are done with school. This can allow you further savings.

Carefully consider your options before taking out student loans. They can be very helpful, but like any other debt you can find yourself in over your head.

*About the author: Miranda Marquit edits information on debt consolidation for DestroyDebt.com.

Pregnancy, Blogging and the Real Possibility of Job Loss

noreply@blogger.com (ispf) — Sat, 23 Feb 2008 16:38:00 +0000

Yep... I am pregnant. Still a long way to go to get to the stage of the lady in the picture, but getting there, sure enough. And, now you know why I have been absent from the blog for so long :) I tend to sleep a lot these days... and all those of you who are bloggers know that the need to sleep a lot and the addiction to blogging just cannot coexist. So, I had to prioritize and decided to walk away from the blog. Cold turkey. Believe me, that isn't an easy thing to do when you have spent pretty much every free minute during the past year obsessing over your blog. And the blog is finally grown to a point that it is getting some recognition and earning some side income. But hey, you've got to do what you've got to do, right?

Frankly, I have no regrets. Over the year, I have complained on and off that the blog was beginning to feel more and more like work. Some of the articles were written more out of obligation than the real interest to write. I was actually starting to get stressed out that I had a deadline to post and the article was not ready yet or that the quality of the article was poor compared to some really great articles put out by so many great personal finance bloggers! As if that wasn't enough, my mood was being controlled by what and how Google chose to tweak their algorithms - one day I was flying high because my predicted PR was 5, and the next day I was down in the dumps since the real PR had crashed to 0! As though all that was not enough, the blog was beginning to make some real money, and when money is involved, perspectives have a tendency to get very skewed. But now, with all that out of the way, I am free to write when I really want to and blabber on like I am doing right now :)

All kidding aside (pun intended), just around this time two other events occurred at work which made the decision necessary. First, I have been wanting to get on a high visibility, high profile project for the past few months and an opportunity presented itself for me to take a jab at it. This project is a great chance for me to prove my mettle to my current employer and to chart the course for my future career. It is in line with the reason why I chose to work for this company in the first place. And I just had to take it. It wasn't easy dealing with the prospect that I could be pregnant soon, and take on more responsibility at work at the same time. But I was beginning to get stuck in a rut with my current project which is fairly dead-end career-wise. What's worse, this project could go on forever and I would have no chance to get out of it until I pulled myself out of it by the ends of my shoelace! It seemed like a "now or never" moment and I decided to go for it. Even though it is hard to admit, blogging would be a huge distraction if I really have to give to this project what it requires.

The second event was far worse. Our CEO announced that he had put our division on the market for sale, and it came as a complete surprise to many of us! Of course we had heard some rumors before, but none of us paid any attention to it, since it was just too inconceivable. Now, with fresh rumors floating that one of the suitors is a Chinese company whose sole motivation to buy is to obtain the market share, and that most employees would be let go, it seems like the job loss is imminent. I now had to get on that other project and earn as much experience as possible on the new project before looking for new jobs, if I want my career to go in the direction that I hope for. My only hope and prayer is that, because of size of our company, the whole split/buy out/merger will drag on for a while, and I will have the time to have the baby and the experience on the new project before having to look for a new job. Keeping my fingers tightly crossed.

As I mentioned briefly before, the blog was starting to make some real money just before I decided to call it quits. In the month before I quit, the income from this blog was a little over $400. And that is no chump change! I was really tempted at one point to let the opportunity to get on the high profile project at work slip by, and focus on taking this blog to the next level. That way, if I lose the job, I will have another outlet to continue bringing in some income. But frankly, I don't see myself as a professional blogger. And realistically, the odd name of this blog will limit the scope of how big it can be. And finally, I just am not cut out to quit the conventional thinking ("poor dad" school of thought?) of preferring a steady paying job in favor of a risky dream/fantasy option. Ideally, I would have wanted to hang on to both - the opportunities at work as well as explore the opportunities with the blog, and see how things go. But with the baby on the way, and my body demanding rest, I just had to make a decision and stick with it. And I choose to go with the conventional, prudent thing to do. If I have to take on some stress, I might as well take it to further my career. Maybe blogs (and other Internet based hobbies) make thousands of dollars to some of their owners, but I just have to wait for the time to be right for me to indulge in such hobbies. Like I said, you've got to do what you've got to do, right?

Someday, I will come back and revive this blog. Or may be start a whole new blog. Or heck, maybe do something else entirely different and turn myself into a millionaire :) But for now, I will just stick to posting random ramblings here and hope someone will stop by from time to time to read them :)

*Image Credit: ABC News Article [via Google Image Search]

Paid $258 for a Pair of Eye Glasses Inspite of Having Insurance...

noreply@blogger.com (ispf) — Sat, 16 Feb 2008 01:48:00 +0000

... And the lesson learnt: "Never let your guard down".

Here's what happened. I have been using my current pair of eye glasses for close to two years, and it was time for a change. So I went to my doctor, had an examination and as I always do, I told the lady I wanted to go over my insurance first to get an idea of the coverage before starting to look for the glasses. I did NOT want expensive glasses.

As we were going over the insurance, I indulged myself by inquiring about the frame-less "silhouette" glasses. I have always wanted to have those, but due to my weird astigmatism prescription, making the lenses of the quality that can be directly bored into was an expensive prospect. Every time I got new glasses, I would get an estimate for the frame-less lenses, find out that my insurance did not cover it sufficiently, and choose some old boring frames. And here she was telling me that my current insurance covered 100% of the expenses for whatever-the-process-is for making the frame-less lenses. I was exhilarated.

Now, generally, when I finish discussing the insurance details with the lady, my husband and I go off on our own to look through the frames and choose one that not only fits me, but fits our budget as well. But with frame-less lenses, how much could the thin temple bars cost after all, right? So, we let the lady show us some of the "frame-less frames" that they carry. And both my husband and I liked one, so we decided to go with it. Since all it is, is a pair of metal sticks that hinges on my ears to make sure that the lenses are held correctly over my nose and there is no "frame" as such, we did not even bother to ask her how much it costs. Or for that matter how much my insurance coverage was for frames.

Happy with our purchase, we went to the register to pay. Lo and behold, the bill was for $258! Surely there must be a mistake somewhere! As I carefully went over the bill, my heart sank to find out that the frame-less "frames" cost $330 while my insurance only covered $180. So my out-of-pocket expenses was $150 for two thin 4 inch metal sticks! Add to that the co-pay, my portion of the anti-reflective coating, blah, blah and more blah, there it was - a $258 bill :( I was too embarrassed to tell her I wanted to change my mind and go for the regular frames. Or to say that I just needed the prescription, so I could go online and order the same "frame-less" frames with the anti-reflection coating and the other bells and whistles for around $50. So I quietly signed on the dotted line.

Today, my glasses arrived. I love the way they look and feel. Nevertheless, every time I put them on or take them off, I can't help but feel a slight sense of shame for having been a sucker and so grossly overpaying for them...

Sigh!

*Image Credit: Photograph by Daniel Y. Go [via Flickr Creative Commons]

10 Ways for College Students to Cut Costs where it Counts

noreply@blogger.com (ispf) — Mon, 04 Feb 2008 04:18:00 +0000

(This is a guest post by Heather Johnson*)

There are three essential liquids that every college student needs to survive and prosper. These vital beverages are (in no particular order):

Water — The original clear stuff quenches your thirst like nothing else and helps you sustain that fit young body.

Coffee — Nothing else stimulates and sharpens a mind dulled by too little sleep or too much of everything else like a hot, strong cup of mud.

Alcohol — Whether you prefer the stuff that comes in a stein, a snifter, or a shot glass, the only way to make the whole college experience worthwhile is to enjoy an adult beverage every now and again.

During the four or five or nine years that you spend as an undergrad, you could easily spend several thousand dollars on just these three indispensables. Follow these ten simple strategies and you will never go thirsty again (and you might even have enough money left over to pay your tuition).

Water: This topic will be addressed in just a couple of points because it is so damn easy to save a ton of money by making simple changes.

Drink Tap Water: That’s it—done and done. Get a Nalgene or steal your friend’s empty nine-dollar bottle of volcanic spring water and then just fill it from the faucet. Tap water really doesn’t taste all that bad and is usually better for you than pricey bottled water because of the various minerals that are added by your friendly local government. Best of all, it’s virtually free. Carry your new best friend everywhere you go and you won’t be tempted to spend your change on soft drinks that not only cost money but are bad for you as well.

Fake Filter: If you just can’t bring yourself to drink water that’s not filtered in some way, then buy a Brita and never bother to change the filter; you’ll never notice the difference. Keep this glorified pitcher in the fridge and every sip will be cold and delicious. Make this simple adjustment from bottled water and you won’t believe all of the extra cash suddenly stuffing your pockets.

Coffee: Drastically reducing the amount of money that you spend on your daily caffeine fix is a simple task as well. Follow these couple of rules a smaller portion of your cash will end up in the Pacific Northwest.

Caffeinate Like a Towny — Track down a native and follow him to a local java house rather than following the herd of your classmates to the big chain in the student union. Find the right place and you’ll still get a great cup of joe at a significant discount.

Brew Your Own — Better yet, cut out all of the middle men and their outrageous mark-ups. Invest in your own coffee machine, buy some cheap beans, and start your day with a cup of the good stuff before you even open your front door.

Alcohol: You’re likely to spend more on beer and its brethren than water and coffee combined and this list has been constructed with that reality in mind. Here are six methods to saving money without sacrificing any fun.

Be Cheap — Once you’ve sacrificed a few decades to the workaday world and have earned that corner office, you’re welcome to all the Johnny Blue you can drink. Until then, drink your can of Natty Light and smile; the cost fits your budget and in the long run it does the job just fine.

Pre-Game — Bars and restaurants make money on their huge mark-ups. Hit up Discount Liquors on the way home from your last class and spend an hour or two on the couch before heading out.

Let Them Woo You — Local establishments will do almost anything to draw a college crowd and that is good news for you. Become a walking calendar of drink specials and hit the right spots on the right nights.

Be Flexible — Speaking of specials, don’t just seek out discounts on pitchers of Bud Light. Expand your horizons and hit up the tapas joint for half price sangria, the burrito dive for two-for-one margaritas, and the sushi bar for sake bomb Sunday. Never discriminate when it comes to cheap booze.

Brew Your Own — Just like #4 above, this will cut out all sorts of costs and inexpensive starter kits make it simple to start your own mini brewery under your bed. Plus, there are worse things than being known across campus as Mr. Beer.

Be a Hot Girl — Sorry if this last one is not a feasible option for you, but it is the one truly fail-safe way to ensure that you will never ever have to buy your own drinks. (Other than not drinking, of course, but that is not even worth mentioning).

*About the author: Heather Johnson is a freelance business, finance and credit writer, as well as a regular contributor for BusinessCreditCards.com site for comparing small business credit cards. She welcomes questions, comments, and freelancing job inquiries at her email address heatherjohnson2323@gmail.com

*Image Credit: Photograph by mre770 [via Flickr Creative Commons]

401K Lessons (Learning it the Hard Way)

noreply@blogger.com (ispf) — Thu, 10 Jan 2008 00:16:00 +0000

Last year was my first full year at work. I managed to max out my 401K contribution with one paycheck left to go. So for the last paycheck I set the contribution rate to 0%. This week I had to go in to reset it back to the original rate. Boy, was I in for a painfully rude shock - my 401K returns were negative. When I was younger I used to wonder why people who have money still worry about money. But in that one moment when I was staring at the numbers in red indicating negative returns on my hard earned money (that I had scrimped and scrounged to save, I must add) it was suddenly very obvious. The knot at the pit of my stomach did not feel good.

To cut a long story short, things have gone further south since then, and as of today, I am down 5% for the year. And my all-time returns have shrunk so badly that the returns on my 401K statement are beginning to resemble that of my bank statement. I have had 401K on my mind for the past few days, and here are some lessons I am learning.

Do not track the returns of the 401K on a daily basis
This is advice I need to learn to live by, since I value my sleep too much. Until this week, I hardly paid attention to how my 401K was doing, except for an occasional look out of curiosity, and I was doing fine. But now that I know it is not doing well, I have an obsessive urge to check it the first thing every morning. And with the losses going higher each day, it is turning out to be a heck of a lousy way to start the day.

Pay attention to asset allocation
When I started my contributions, since it was still very early in my career, I presumed I should be able to take a lot of risk. So I did. I put 100% in stocks - 20% large cap, 40% in mid cap and 40% in International. And now it is clear to me that this risk level is way too high for me to handle. It is very important to look realistically at what risk you can stomach, and balance it against how much returns you hope to make. So, I finally took some time out to go through all the funds, their volatility levels, their performance history, the expense ratios etc. and reallocated my future contributions. My asset allocation choices are - 50% domestic stock, 32% international stock and 18% bonds. And the funds I have selected offer performance close (though not quite there) to what my earlier allocation did but have much lower volatility. I still have a few questions about some of the funds, and have mailed the fund managers for details. Once I get the information, I hope to finalise my selection and freeze the allocation and only visit it once every 5 years or so to see if the risk tolerance is still OK.

Don't lose perspective
I have at least 30 more years to go before I can retire (assuming I do not retire early). The amount I have in my account is a small drop in the pond when compared to the final balance that my 401K account will have. The 5% loss on that small figure is but a ripple in the pond. In the long run, this experience is just a small blip that might not even register on the radar. It is important to have this long-term perspective to avoid losing sleep and to control the temptation to mess with the allocation every now and then.

Nobody else can determine what is best for you
Our company's 401K plan provides us access to some financial software and I went through it to obtain some advice on what my model allocation should be. I also had several discussions with the better half and some older colleagues. I used all this advice, but in the end, what I chose was uniquely suited for my particular situation. It is easier to let someone else handle the decisions (e.g., financial advisers, spouse, parents etc.) but to really be peaceful, it helped for me to go through the details of the funds and determine what was best for me.

In a way, I am glad that I chanced upon looking at my 401K when it was doing particularly bad. I had not paid much attention before and had randomly picked funds with seemingly good performance in an effort to maximize my returns without really paying much attention to the associated risk level. Now I have put in a lot more reading of the funds offered and have picked the ones that I believe are more suitable for me for the long run. I don't know if this is the allocation I will stick with forever, but for now at least, I feel a lot at peace with my choice.

*Image credit: Photograph by jay d [via Flickr Creative Commons]

Quick Update

noreply@blogger.com (ispf) — Sun, 06 Jan 2008 17:18:00 +0000

I have been gone for so long that I don't know if anyone ever reads this blog anymore. But if there is someone out there, here is some quick update.

During the last couple of months we spent a boat load of money on medical bills. The total came up to a little more than $15,000. About $4,000 was covered by insurance and so a little over $11,000 was out of pocket. The lady in the business office of our provider was very helpful and sat with us to review the financial costs and possible ways to get reimbursement from the insurance company for some more money. So I have filed claims for another $6,000 or so. Hopefully, at least a part of it will be reimbursed.

So far the experience with the insurance company is mixed. On the "good" side, two of my initial claims (for $163 and $192) were approved. On the "bad" side, the claims adjusters are a bunch of jokers!!!! While the first check (for $163) was sent to me correctly, they sent the second check (for $192) to the provider! After a very long phone call with the customer service we found out why the claim showed as approved/paid on the website but I did not see the money even after a month! The agent gave me two options - (a) I file a case, they will investigate, then they will send a letter to the provider requesting that the money sent by mistake be returned and after they reclaim the wrongly addressed check, they will cut a new check for me, or (b) I contact the provider directly, explain to them that I have paid twice for the services - once out of pocket and once via insurance - and then request a refund. Since option (a) will likely drag on for months, I chose option (b) and spoke to the same lady at the business office of my provider. She was very understanding and has agreed to cut the refund check to me.

Out of the remaining claims, I think we have a good chance of the claims being approved for about $4,000. The rest of it, I just filed since the bills were lying around and the worst that could happen is that the claims will be denied. I hope the claims falls in the hands of the same moron adjuster who goofed up my earlier claims and sent the check to the provider. Who knows... he might just approve all those other claims too that are at a high risk for being denied :)

So our out of pocket tally will finally be in the range of $7,000 to $11,000.

For the first time in a long while though, we went through the expenses without worrying or fretting about it too much. With everything else going on around us, that was such a boon! I did get a bit anxious for a couple of days when I found out just how much the bills could be, but I think that was more out of habit than actual financial reasons. And we have paid off all the credit card bills and are not carrying over any debt. That feels real nice too.

As for the money spent, every single penny spent was well worth it! Like I mentioned before, it was an elective procedure and a bit of a gamble at that. Statistically, the chances that the procedure would work for us was under 50%. We could have probably saved ourselves a lot of money if we had waited some more time to see if the situation could be resolved with other less expensive, but less effective procedures. Or we could have seeked medical attention in our home country where the costs are about 1/5th of the costs here in the US. But in the end we chose to take the gamble. If we do not use money for the things we really want, and are not willing to pay the premium for the peace of mind of doing things the way we like it and on our schedule, then what good is the money for? Luckily, for us, things worked out! I am still a little anxious, but it is getting more and more real with each passing week, and each follow up visit to my doctor. If any of you readers are in the same unfortunate situation as us, you have likely figured out what this is all about. Keep your chin up, and in the end it will all work out. For the rest of you who have no clue of what I am talking about, count your blessings, say your prayers and kiss your kids once more tonight! You have no idea how fortunate you are for being so normal :)

*Image Credit: Photograph by joyrex [via Flickr Creative Commons]