My first reaction was that something must have happened with my credit score. While I understand the economy has caused a lot of interest rate hikes, normally good customers don’t go from 11.5% to 27%. I already thought 11.5% was too high,  but didn’t complain because I knew how the system was going. At any rate, I check my credit score and everything is good. In fact, it’s gone up a few points, Yay for me!

By now I’m a little confused as to what’s going on, so naturally I call. Here’s how the conversation went down.

Chase Rep: Thank you for calling Chase, this is ______, may I have your name please.

Kristy: Hi, this is Kristy _______.

Chase Rep: Hi, Ms. ______, how may I help you today?

Kristy: Well, I noticed that my interest rate has jumped from 11.5% to 27%. Can you explain that, please?

Chase Rep: Yes ma’am, I would be happy to assist you, one moment while I review your account.

***Note*** I skipped over all the verification stuff because who cares about that, right? You want to know what the heck they were thinking, jacking my rate that high! I know, me too!***

Chase Rep: Yes ma’am, it looks like your rate was raised due to information obtained from your credit report.

Kristy: Such as?

Chase Rep: I am not at liberty to discuss your report with you, ma’am. You will have to pull it for yourself.

Kristy: I have, hence the confusion. My record is better than when I first got the card and yet my rate is higher now. You’d already raised my rate to the 11.5%, but this is ridiculous. Can you please explain why it is this high and tell me what we can do to lower it?

Chase rep: I’m very sorry, but there’s no possibility of lowering it at this time. You’re within your right to opt out of the rate if you like.

Kristy: Yes, but then you close my card. That’s not what I want.

Chase rep: Well, your only other option is to switch to a non-rewards card and that will lower your rate.

Kristy: How much?

Chase rep: 2%.

Kristy: Whoop-de-doo…*I laughed a little so they wouldn’t think I was trying to be rude*

Chase rep: Is there anything else I can help you with?

Kristy: Yes, you can explain why you raised my rate, please. You keep glossing over that particular question.

Chase rep: I’ve already explained that it was due to information on your credit report.

Kristy: Fine. Is there a supervisor available that I might speak with, please?

Chase rep: One moment.

…..

Dial Tone.

The SOB hung up on me! LOL. So by this point, I’m fuming. I call back and wait through the queue for the next representative. Luck of luck, I get the same person who hung up on me in the first place. I tell them that it’s me again and I’d still like to speak to a supervisor. They just hang up on me. Ok fine, you want to be that way.

I call my local branch and talk to one of the managers I used to work with. I told him the situation and the rep’s name and we call the priority line. This is the line that the Chase employee’s can call to get service when they’re working with customers in front of them. We happen to get one of the managers over there, one who I worked with a lot when I was at Chase. At any rate, we tell him the story and he looks over the account.

What it boils down to is that Chase jacked my rate because of my student loan balance. Having student loans outstanding has made me a risk in this market so my rate is now higher. Based on their new scoring model, I don’t qualify for a lower rate because they count those loans as part of my debt to income, even though they’re deferred and I pay on them monthly anyway.

It’s the principle of the matter that makes me want to close this card immediately. I’m a good customer. I pay my bills on time, I’m never late, and there was a period of time where I carried significant balances on this card. They’ve made plenty of money off of me, yet I’ve still been loyal. Then the logical side kicks in and I realize that none of that matters. My options are to suck it up and continue paying it off every month (or just not use it) or close it out. If I close the card I lose some pretty good rewards and it will adversely affect my credit because it’s the card I’ve had the longest.

But, then there’s the matter of the service I received. Being treated poorly by a company goes a long way in making a decision on whether to frequent them or not. Now, I’m not sure what that rep’s problem was, I don’t think I was asking anything too complicated. But, to hang up on me twice was uncalled for. And this isn’t the first time I’ve had terrible customer service through the main line and had to go through the priority line. I really just don’t want the hassle.

So I think what I’m going to do is finish out the rewards cycle I’m in, use them, and then put this card in my safe deposit box. I’m not going to close it for now. However, I’ll probably pull it out once every couple of months and make a small purchase to keep it active so they don’t close it out. But, by all accounts, my relationship with this credit card company is done.

What are your thoughts? What would you do in this situation?

I was talking to a relative of mine recently and the topic of personal finance came up. She’s been wanting to leave the small town she grew up in for several years and she’s quite envious that I managed to achieve that feat well before her. She went on to say that she wanted to be financially well-off by now and that almost everyone who mattered from her high school graduating class has left the town and made something of themselves.

Her choice of words struck me as odd, first of all, she’s never been the snobby type, and secondly, what defines those people as the ones who “matter?” Was it the popular kids? The smart kids? Which specific clique(s) qualified? I found it interesting for reasons beyond this post, but when I asked her to explain her meaning, she simply said she meant those she knew in high school.

As I explained to her, just because those guys left the small town they grew up in doesn’t mean that they’re all 100% successful by her definition. Furthermore, their goals may be completely different from hers, so what she would consider an utter failure on their part may, in fact, be an absolute success to them. I illustrated my point by telling her a little of my story. We’re not particularly close, so she hadn’t heard of it before.

I shared how I left home around 16 and moved away from the small town I’d been raised in. But, as it turns out, that was the start of all my problems. I explained my reckless spending, lack of a budget or even tangible goals, and everything that eventually lead to a spiral of debt. I explained how I eventually had to go back home, tail between my legs, and really take a look at my situation before I turned it around and made it into something positive. And even with my experience and background, I’m still learning something new, every day.

If I spent all my time worrying about how other people were doing with their goals and their achievements, I’d never accomplish anything of my own. So my choices were to worry about myself and my goals, or to worry about how quickly everyone else appeared to achieve their goals. But there’s the crux of the matter, as I explained to my relative. Appearances can be deceiving. Just as they don’t know your situation, you don’t know theirs. They could appear to be highly successful, but be struggling with a mound of debt brought on by a case of the Joneses. Or, they could appear to be poor and not wishing to better their circumstances, yet they’ve achieved their financial goals and wish to live simply.

Because personal finance is so different for everyone, there’s no reason to think of it in terms of a race. In fact, more often then not, those who amass a fortune quickly also loose it just as quickly because they do not understand the value of time versus money earned. Not always, but in many cases. When it comes to amassing wealth, if that is your goal – which it was for my relative – slow and steady is the best course of action. You will be better off in the long run.

I don’t really think my discussion with my relative made much of a difference. She made a comment shortly after about how great it would be to win the lottery. I just shook my head. But, hopefully it helps someone else who might be reading this. The danger in considering finances as a race is that you lose sight of what’s important, of the reason for doing what you’re doing. Most of us don’t just want all the money in the world just cause. We have a specific goal in mind. We want to retire early and be able to travel. We want to be able to provide well for our children. These are examples of the driving force behind our decisions.

I can’t say this enough, but money is merely a tool. It’s meant to help you achieve your goals and live your life to the fullest, not to be a gauge for success – though many would say otherwise. Regardless, if you stick with your goals and stop worrying about what everyone else is doing, you’ll be more successful in your life and your decisions.

What are your thoughts? Is money an indicator of success overall? Do those who choose to live simply deserve to be labeled as failures?

What you may not realize is that this can extend to your credit and debit cards too. If someone who is carrying the swine flu virus comes into contact with your credit or debit card, he or she can easily pass the virus on to you. For example, if a cashier who has developed swine flu symptoms handles your card during a transaction, they can contaminate your card with germs that linger for anything from hours to months. The more people who touch your card, the higher your chances of contracting the illness.

How can you protect your cards against swine flu?

You might think that carrying out transactions yourself using keypads is the obvious answer to this, but even this carries a high degree of risk. Keypads are notorious for harboring germs, especially as they will be touched by numerous individuals throughout the course of a day and this can make them more of a potential hazard than handing your card to a cashier.  While you can wipe both your card and your hands with anti-bacterial wipes after it has been handed back to you to minimize the chance for germs to hang around, it is less feasible to do this on keypads before using them as they are not your property to do so.

However, you can still use anti-bacterial wipes on your hands after having touched a keypad. This is obviously not a fool-proof way of killing swine flu germs, but it is one of the few things that you can really do while on the move. Washing your hands on a frequent basis is recommended for preventing the spread of the germs too.

Credit card scammers

Even swine flu isn’t safe from the credit card scammers. One scamming method that is currently doing the rounds is becoming more and more centred around swine flu. As the global concern regarding the disease continues, you may find your inbox becoming full of junk email that offers antiviral medication that claims to treat or even prevent swine flu symptoms. This is clearly designed to appeal to those of us who are paranoid about contracting the condition and want to get hold of antiviral medication without the need to venture into the outside world and risk coming into contact with people who are already carrying swine flu germs.

In actual fact, these emails will more than likely be a fraudulent ploy to get hold of your credit card details. If you encounter these types of emails, chalk them up as yet more spam and press the delete button. If swine flu does hit you, get your medication through the conventional route and don’t be fooled into handing over credit card details for online medication that either does not exist or isn’t the real deal.

# 1 – Your local bank or credit union

This was a huge resource for me starting out because I didn’t know where else to turn. It also helped that I was working at the bank, but the reality is, they are paid to help you.

You’ll want to make sure you’re speaking to someone knowledgeable about what you are trying to accomplish. Feel free to ask them questions about their job, what they help people with, and their experience. Remember, no one knows everything, but having someone that’s had some experience in what you’re going through is a good start.

# 2 – Your library

Personal finance books are many these days and if you’re going to figure out how to save money so you can reduce debt, why not start with checking those books out rather then buying them? There are a ton out there, so to help you sort through them, check out Get Rich Slowly’s post on the top 25 essential personal finance books. My personal favorites are “Your Money or Your Life,” “I Will Teach You To Be Rich,” and “The Automatic Millionaire.”

# 3 – Your Parents

I know this sounds weird if you’re in this position because they never taught you about finances, but they’re probably good with their finances, they just didn’t know how to pass along the knowledge. Sit down with your parents and ask them what they do, what mistakes they’ve made over the years, and how they’ve overcome it. Find out what works for them and what doesn’t. Afterwards, sit down and see if any of their tricks are things you can incorporate into your plan.

# 4 – Bankrate.com

If you haven’t checked out this site, you absolutely need to. It’s got great information, tips and tricks, and it compares savings rates amongst the top banks. What I found most beneficial about this site was its wide array of calculators. Those calculators can certainly help you in determining your course of action.

# 5 – Suze Orman, Dave Ramsey, or a little of both

I think we all know I’m not a huge fan of Dave’s, but I concede that his program works for some people. While I still think in 99.99% of cases people pay more doing things his way, at least he gets people out of debt. So, when I started on my venture, I went the Suze Orman route. I watched her shows, read her books, anything I could cheaply get my hands on. If the Dave Ramsey method works for you, then use that resource. Or, if you’re not completely sold on either ideology, mesh them together and create your own!

# 6 – Mint.com, or any other site your prefer

My biggest challenge when I decided to get out of debt was making a budget. I had no clue what I was doing or how to go about it, so there was no way I could make my own budget sheet. Well, I probably could of, but I’m of the mentality to work smarter, not harder. So, I went to Mint.com. I like that it sends me reminders, I can change and alter the categories, and it’s user-friendly enough that I was able to get through it with no problems.

If you decide to use software to help with your budgeting, be sure to go with something that’s free. No sense in paying someone else to create a budget sheet for yourself when there are so many options for free one’s out there.

# 7 – Financial magazines

Most magazines geared towards personal finance are loaded with good tips for beginners. Again, since you’re trying to reduce your spending, I don’t recommend getting a subscription, but your library probably has an excellent selection of magazines available for your peruse.

# 8 – Internet

The internet is a great source of information and it’s usually the most convenient way to find what you’re looking for. Not only can you find news articles related to personal finance, but a lot of the magazines I mentioned before can be viewed online as well. In addition to those things, there are also personal finance blogs which offer a wealth of information…one of which you’re reading now! ;)

I must inject a little caution when looking at material from the internet, though. As I mentioned earlier, no one knows everything. And they certainly don’t know what’s best for your situation. So, when considering what you’ve read online, be sure it fits with your goals and what you can readily achieve. This is especially true of investment advice…your results may not be comparable with someone else’s.

Have I missed any other resources you think would be good for someone just starting out? What was your first step when you decided to take control of your finances?

But, since it came up, I thought I’d discuss it with you guys to see where you stand. Most people I talk to about prenups don’t think they need one. They believe that they and their respective partner will never break up. While I think that’s a naive way to look at things, I do believe that some people feel it’s more a matter of trust in the person that you want to spend the rest of your life with then it is that they’ll never split up. Still, a prenup protects a lot more then you think.

What does a prenup cover?

A prenup can cover pretty much anything you want it to cover, both present and future. You’ll want to adhere to state laws and ensure that the agreement is fair to both parties or you may find that the courts will rule against it in the event of a divorce. You also need to understand that you can’t opt out of child support, and in most cases, alimony with a prenup, so don’t try. Here’s but a few things a prenup can protect for each party.

# 1 – Property

This is pretty standard. Generally speaking, property refers to land and/or homes. The prenup states how the asset(s) are to be divided amongst the divorcees, or if it is to be sold, how much goes to each respective party. This is a particularly important clause if you wish to keep a family home within the family, or if you have property that you wish to have passed to children from a previous marriage. This clause can also go into personal property such as cars and household goods.

# 2 – Debts

Many a person’s credit has been ruined because they’ve failed to plan for the amount of debt one spouse has at the time of divorce. A prenup can ensure that if one spouse racks up a ton of debt the other is not responsible for it after a divorce. This gets tricky with cards and loans that are jointly held, so it’s important to be very clear about the debt loan expectation during discussions before marriage, as well as, in the prenup.

# 3 – Assets for Children

In today’s society divorce is a common and acceptable practice. If two people cannot genuinely make their marriage work, divorce is the order of the day. However, in many cases, there are kids involved and getting remarried can seriously affect them and what they may be entitled to if something happens to their parent. A prenup can specifically carve out certain assets for children from a previous marriage and ensure they are provided for if something were to happen to the parent.

# 4 – Businesses

If there are family businesses or partnerships involved, then a prenup can keep those intact. Each party would need to list their percentage of ownership and what it is that they expect to receive out of it if they were to split, or it can simply be that one person signs the rights over to the other. Whatever the decision, it has to be fair to both parties.

# 5 – Future Assets

Maybe your portfolio isn’t very big right now, but you have plans to grow your income. Well, you can include a clause within the prenup to protect that as well. This can cover anything from planning to be a doctor to making it big in Hollywood. If it’s something that could bring you an asset and would need to be divvied up in the event of divorce, then you’ll want to include it. This also covers unexpected windfalls and/or inheritances.

How to go about a prenup?

If after talking it over with your intended, you decide that a prenup is for you, the best thing to do is for each party to begin making a list of their current assets. You don’t have to list things like dishes and towels – just list them as household goods – but you do want to be as accurate as possible. Also include the value of each asset you list.

The next step is to discuss with your intended what you think would be a fair way to divide the assets up. Discuss what’s being left to kids, what goes to other relatives, and what goes to each other. Once you have an idea of how you’d like to divvy the assets up, it is recommended that you each hire separate attorneys to finalize the discussion and draft the actual document.

Some key points to note, try to do this about three months out from the wedding to make sure each party has enough time to reflect and consider the decision carefully. Judges do not look favorably on prenups when they’re done right before the wedding because it could be an indication that it was signed under duress. Additionally, if one party cheats, judges are less favorable to holding up the prenup agreement. You may want a clause that states the agreement is not null and void in the event of cheating, or you may wish to include that it is. It’s a tough topic to bring up, but when there’s a lot of money involved you really want to protect yourself.

Finally, it’s recommended that there be a severability clause within the agreement. This basically means that if one clause within the agreement is stricken, the rest remain intact. This keeps the contract as a whole valid, even if one section is deemed unsuitable by the courts.

Should you DIY?

It depends on the situation and the couple, I suppose. But, if you decide to do it yourself, you should definitely do your homework. You have to understand state law regarding prenups. Again, certain states won’t allow certain clauses, so the more you know the better off you’ll be. Also, lawyers are more liable to be impartial to the task. You may think you’re being fair, but sometimes your view is biased. Even if you draft the document yourself, I’d still recommend a lawyer consultation to review the document.

My thoughts…

I’ve told you guys before that I’ve seen a lot of bad things happen to people and their finances over the years. Perhaps this has negatively colored my view of how I would handle my finances in a joint situation; however, I believe in protecting yourself, no matter how much you trust the individual involved. To my way of thinking, this isn’t an issue of trust so much as it is being prepared for every eventuality. We have insurance for health, life, cars, homes, etc. We do this not because we expect bad things to happen, but because we want to be prepared just in case. Well, I sort of look at a prenup as insurance against divorce. It may not happen, but if it does, you’re covered.

What do you think? Are prenups important, or does it only matter if you have a lot of money? If you feel like sharing your prenuptial stories, I’d love to hear them!

Before I get down to the round up, there’s a little news I need to share with everyone. You may have noticed that my posts have been a bit more sporadic than normal, as have my comments on your blogs. Summer is one of the busiest times of year for me with work and going into the fall semester I have a pretty heavy workload. Because I want to be fair to Jonathan and you as readers, I will be going to a part-time basis with MYC. I’ll have a post about once a week and you will likely see a little less of me on your own blogs. I apologize for this, but the schedule I’d been keeping was too much and I needed to scale back a little. Jonathan has been gracious enough to let me stay on part-time, though, so rest assured…I’m not going away completely! ;)

Alright, with that out of the way, let’s get into the good reads, shall we?

- Brip Blap talks about financial behaviors being set in stone. It’s funny, we all have our own little things that we refuse to change, and we all view things very differently most of the time. But, that’s what makes personal finance personal, so if I’ve got some habits set in stone, they’re because they work for me. What about you?

- J.D. @ Get Rich Slowly discusses the first three steps to financial freedom. A lot of the same if you’ve been in personal finance for awhile, but if you’re venturing into the murky waters for the first time, this is a good beginner’s post!

- Ginger @ Girls Just Wanna Have Funds reminds women that marriage isn’t just about romanticism. This has been a topic of much debate lately, but what it comes down to is this. While love is important, it is equally important that you are financially compatible or you’ll be finding trouble in paradise a lot sooner then you think!

- Broke Grad @ Broke Grad Student has an older post that I believe I somehow overlooked, regarding whether or not having a second job is worth it. In this economy and from a monetary perspective, probably. But, it’s a lot of strain and wear on your mental health and happiness. Would you rather have more time to spend with loved ones and just cut back on expenses, or would you rather have more money and never see anyone? I’ve been here and I prefer to cut my expenses and suck it up. But, this really depends on individual situations.

- nickel @ five cent nickel has an awesome guest post that lays out four ways to ruin your investments. By a show of hands, how many have done at least one thing on his list? Yeah, me too!

- SVB @ The Digerati Life rates the stress level of financial events. Pretty interesting…and you wonder why money is one of the biggest reasons for divorce in the U.S.

- Kelly @ Almost Frugal asks her readers how they judge success. This is such an important question, yet one we think very little of in the long run. How do we know when we’ve reached the level of financial security we set out for? When do we know we’ve achieved that goal? Is it when the debt is gone? Is it a certain dollar amount? I challenge you to consider your goals and take it a step further. How do you determine you’ve achieved that goal?

- Trent @ The Simple Dollar gives us the lowdown on why we need credit at all. Credit is important for everything….car insurance, rent, mortgage, all your big purchases not made in cash. Having good credit gets you the best rates. You don’t have to use credit cards, but you do need to build a credit history…they just happen to be one way to do it. Check out Trent’s article for more!

- FB @ Fabulously Broke has a great article on how being a lady is a lost art. This post has nothing to do with finance – at least not directly – but I really liked it and know a few women who could do with a good reading of this post. In FB’s usual way, it’s highly entertaining and too true!

That’s all I got this time, but hope you find some that you like! Until next time…

Happy Reading!

Having love, and not money, be the basis of a marriage is actually a fairly new concept. Although it did happen in Austen’s time, that was not the norm and was certainly frowned upon in polite society. But, if such arrangements are entered into today, the benefiting party is often referred to as a gold digger. This seems to suggest that polite society has flipped it’s assessment of marriage and now frowns upon marrying for money – though I’m sure it still happens in family circles that have something to offer one another.

In any event, I came across a story not to long ago that talked about an ad from Craigslist. To paraphrase, a woman who is a self-proclaimed beauty is frustrated by her lack of being able to find a husband who earns at least $500k per year. She has recently noticed that women much less pretty and intelligent than herself have managed to land these rich husbands and wants to know what it is she is doing wrong. Her particular story is the classic case of making a business arrangement as a marriage rather then seeking love. But, she got one response to her ad that seemed to garner a lot of attention, and it’s something I wanted to share with you here to discuss.

The Response

Dear Pers-431649184:

I read your posting with great interest and have thought meaningfully about your dilemma. I offer the following analysis of your predicament.
Firstly, I’m not wasting your time, I qualify as a guy who fits your bill; that is I make more than $500K per year. That said here’s how I see it.

Your offer, from the prospective of a guy like me, is plain and simple a crappy business deal. Here’s why. Cutting through all the B.S., what you suggest is a simple trade: you bring your looks to the party and I bring my money. Fine, simple. But here’s the rub, your looks will fade and my money will likely continue into perpetuity…in fact, it is very likely that my income increases but it is an absolute certainty that you won’t be getting any more beautiful!

So, in economic terms you are a depreciating asset and I am an earning asset. Not only are you a depreciating asset, your depreciation accelerates! Let me explain, you’re 25 now and will likely stay pretty hot for the next 5 years, but less so each year. Then the fade begins in earnest. By 35 stick a fork in you!
So in Wall Street terms, we would call you a trading position, not a buy and hold…hence the rub…marriage. It doesn’t make good business sense to “buy you” (which is what you’re asking) so I’d rather lease. In case you think I’m being cruel, I would say the following. If my money were to go away, so would you, so when your beauty fades I need an out. It’s as simple as that. So a deal that makes sense is dating, not marriage.

Separately, I was taught early in my career about efficient markets. So, I wonder why a girl as “articulate, classy and spectacularly beautiful”
as you has been unable to find your sugar daddy. I find it hard to believe that if you are as gorgeous as you say you are that the $500K hasn’t found you, if not only for a tryout.

By the way, you could always find a way to make your own money and then we wouldn’t need to have this difficult conversation.
With all that said, I must say you’re going about it the right way.
Classic “pump and dump.”

I hope this is helpful, and if you want to enter into some sort of lease, let me know.

Ok, so after reading this response, do you think he was being too hard on her? What are your feelings in general about marrying for money, is it wrong? Can affection and love grow from a relationship that began merely as a business deal?

My Thoughts

The idea of marrying for money alone has always been something I’ve looked at as impossible for me to commit to. The idea of not having love seems heartbreaking to a romantic such as myself. However, I think there’s something to be said for finding a partner with similar attitudes toward money.

When choosing a marriage partner it is best to find someone compatible with you in all things, money included. Otherwise it makes the relationship harder and sometimes not even love is enough to sustain it. I’m a big believer in communication and working on a relationship before just throwing in the towel; however, I’m practical in that I believe sometimes you have to realize a dead venture when you’re faced with it. That’s the business side of me coming out.

In regards to the reply on the CL ad, I don’t think he was out of line. Women who offer nothing more then their looks in trade for money are asking for such responses because he’s absolutely right, she’s bringing nothing else to the table. When the money is gone, so is she. Her looks will fade over time and the rich guy is left holding a depreciating asset he can’t trade in for a newer model because divorce is expensive and she’d take half his money anyway. That “transaction” needs to go both ways.

I’ve pretty much resigned myself to the fact that, while I love the period in which Austen wrote – the manners, the address, the formalities, and style – I would not have made my family very happy. I would be too headstrong and willful, and I would refuse to marry for money alone.

So there are my thoughts on the matter. What are yours?

Let’s dissect the song, shall we?…my sincerest apologies to Miley Cyrus, of course!

I can almost see it
That dream I’m dreaming
But there’s a voice inside my head saying
You’ll never reach it.

I’m sure that many of us in the quest to get out of debt have heard that voice. It’s the little nagging nay-sayer who tells us working to get out of debt is pointless because we’ll end up right back where we started, or it tells us we don’t have the willpower to stop spending, or any number of other negative phrases.

Every step I’m taking
Every move I make feels
Lost with no direction
My faith is shaking

But I gotta keep trying
Gotta keep my head held high.

I’ve said before that perseverance is a necessary quality when trying to get out of debt. Actually, I think it’s necessary with most things in life, but the point is, you have to be willing to pick yourself up and try again. Along the way you’re probably going to stumble, but that’s ok. No one’s perfect. You just have to keep trying and remember this…

There’s always gonna be another mountain
I’m always gonna wanna make it move
Always gonna be an uphill battle
Sometimes I’m gonna have to lose.

Guess what? You didn’t get into debt overnight and you’re certainly not going to get out of debt overnight. But more then that, personal finance is ever changing so the phrase “there’s always gonna be another mountain” can very aptly be applied to it. Once you master one area, there’s something new to learn and master. Once you get out of debt, you’ll find new goals to reach for and then you start over and work your way towards those goals. Sometimes, along the way, we find that what we thought was important really isn’t, and we have to let those things go. Sometimes we simply discover we can’t beat everything and we have to choose what’s more important. You may want to get out of debt in three years, but perhaps sending your kids to a private school is more important to you. While I don’t like Miley’s choice of the word ‘lose’ she makes the point that we’ll never have everything go the way we hoped or planned.

Ain’t about how fast I get there
Ain’t about what’s waiting on the other side
It’s the climb, yeah.

At the end of the day, money is just a tool. Our life is what’s most important and the choices we make define how we choose to live that life. Our goals are always going to be important to us, even the monetary ones, but it’s what we learn and the choices we make in life that really matter…that really define us. Personal finance is a huge part of our lives and I strongly encourage you to build good habits. But if your road getting there is a little slow-going, don’t worry. It ain’t about how fast you get there…it’s the climb!

And now on to the round up then. These oughtta start your week on a positive note!

- Dawn @ Fighting Foreclosure gave some good reasons to get to know your neighbors. I’ve never bothered in an apartment complex, which is more just a time factor on my part than any reluctance to meet new people, but still. Dawn does have a point…

- Patrick @ Cash Money Life discusses the difference between conscious and unconscious spending. Spending money isn’t our problem…it’s how we think about it that is.

- SVB @ The Digerati Life shares her story about her business credit card being closed. Many people are feeling the effects of the new credit card reform already. Check out some signs to watch for!

- Living Almost Large asks whether or not larger people should pay for two seats. Touchy subject for a lot of people, but as someone who spent a lot of their life overweight, I’d say that for the sake of everyone’s comfort, yes. Either pay for two seats or upgrade to first class where the seats are roomier.

- Jeremy @ Generation X Finance explains how your car is making you poor and what you can do about it. Cars are expensive, to be sure. And sometimes they’re a necessary evil. But, Jeremy gives some great pointers to consider when you’re thinking of buying your next car.

- J.D. @ Get Rich Slowly had a guest post this week on estate planning. It’s not a fun topic, but it is necessary, no matter that you think you’ll live forever or that there will be plenty of time. You never know. I have a member whose mother died in a car accident and he’s fighting with lawyers over the estate because there was no will. It’s not a pretty situation to leave a grieving family member in. So, bite the bullet and make a plan.

- Trent @ The Simple Dollar reminds us that avoiding spending is not the same as saving. It’s an important step, but it’s not the only thing that leads to saving money long-term.

And there you have it! Enjoy your week and I look forward to reading this week’s articles!

Happy Reading!

Dear Employees,

We value your continued efforts to make this company a success. Unfortunately, they’re not working and we’re losing money quicker than we can earn it. As you know, our number of passengers has been in decline for sometime, but with the economy and cheaper options available to out customers, well we just can’t afford to continue paying everyone. So, our proposal is that you all take one to four weeks of unpaid time, or you can come to work for free. Personally, we think the second option is a gallant effort and assure you the gesture will not go unnoticed. Please be advised, this is not mandatory; however, failure to find a reasonable solution to this problem could result in layoffs. We thank you for your attention to this matter and look forward to your answer soon. If it is any consolation, Mr. Walsh will also be taking a month off with no pay so that he may spend a little time with the family on his yacht in the south of France.

Kind regards,

British Airways

How Much Would You Do?

Ok, so the above email isn’t really what went around to the employees. But, I bet it was the first draft that Walsh’s executive assistant had a good laugh over before s/he deleted it and typed up what was really sent out. Either way, the point is that British Airways is asking their employees to take a month off without pay. From what I can gather from the details, that month is totally free to British Airways. No pay, no benefits, no 401(k) or whatever they do in England, no nothing. That’s a lot to put on your employee’s.

But, I will give them a little credit. I mean, they’re doing their best not to end up in bankruptcy and they’re trying not to lay folks off. That’s admirable. However, I have to say that it was sort of a slap in the face for them to tell the team that their CEO Willie Walsh would be taking a month off with no pay. I mean, he makes like four times more in a month what the average worker makes in a year. Sure he can take a month off and still afford to feed the family. Many of his employees don’t have that luxury.

To be fair, they’re not requiring that anyone take the time off, but it is widely understood that layoffs are eminent and this is what they’ve come up with to stall it. So, being in the same situation, what would you do? Is it fair of British Airways to ask their employees to do this? Is it even legal to ask them to work for no pay? The time off bit I get, but I know anytime we come into work here and don’t clock in, HR is all over us. I’m a little surprised that option is on the table.

At any rate, I’m somewhat torn on this. I mean, I’ve been wanting to take a month off for awhile and just go spend some time in Europe. But, this idyllic fantasy has always included a paycheck with it, which is why I haven’t done it since I haven’t accrued enough vacation time yet. Still, one month with no pay wouldn’t kill me. But, on the other hand, who’s to say that I’d still have a job at the end of the month? What assurances would I have that the company wouldn’t pack up shop and get the hell out of dodge?

For me, I’d say yes to the month off and start looking for another job. If I don’t come back, well that’s one less salary they have to worry about. If I do, then I would have just had a very nice vacation and would be well-rested. It’s a tricky situation, but there’s not much that can be done. Most employees would probably agree that working for free is ridiculous, so they’d rather take the month off. But, those without an emergency fund are going to be hurting.

What would you guys do? Take the month off, work for free, or tell them where to stick it? Ok, so you probably wouldn’t burn the bridge, but you know what I mean…discuss!