Prairie Eco-Thrifter

Reader Story: It’s Never too Late to Start: Personal Finance Planning for Over-40s

Guest — Wed, 16 May 2012 06:20:38 +0000

This guest post from Jim is part of the “reader stories” feature at Prairie Eco-Thrifter. Some stories contain general advice while others are tales of how a PET reader achieved success or failure. These stories feature people from all backgrounds and levels of financial maturity and with all sorts of incomes.

If you’re like many people, you didn’t see the need to have a financial plan when you were young and just starting out. This was me, that’s for sure. I mean, I was young, life was good, things were happening; what did I need all that finance stuff for? I was doing OK!

Then life got in the way – my career took off, I got married, had a couple of kids and settled into a busy lifestyle. I was nearly forty-one before I realized that I had been coasting along, financially, and had no idea where I was headed. As for retirement; well, it was in the distant future.

Oh sure, I had a few 401Ks from different jobs I’d had through the years but I had no firm financial plan in place. I had never given any thought to how much I would need to live on in retirement, let alone develop a plan to achieve it!

Luckily, I woke up to myself and got some good advice about financial planning. It turns out that over 40s can successfully plan for retirement; it’s just much better if you start earlier. I am proof that it’s never too late too start.

It seems that many people find themselves at forty years of age without any sort of financial plan in place. Like me, when they were younger, it didn’t seem a priority and then life became busy with careers, children and juggling activities. ‘Better late than never’ is a good approach to personal finance for the over 40s.

Get Professional Advice

The best thing I could have done was to seek professional advice. There are lots of financial advisors out there who are trained in the art of financial planning, debt reduction and other financial strategies. Find one who is also experienced with helping late starters, like me.

Calculate Your Retirement Fund

The first important thing to do is calculate how much you estimate you are going to need to fund your retirement. To do this, you need the age you intend to retire, the number of years you intend to live and how much money you think you’ll need to maintain your current lifestyle each year. If you think these numbers are impossible to calculate, you’re right; so just work on averages to get started. You can adjust the figures as you go along.

Try not to get bogged down with too much detail here and don’t panic when you see the final figure. If you like, you can use one of the many free online retirement calculator programs to help you with this estimate. When you have a retirement figure, divide it by the number of years you intend to keep working and you will have the amount you need to save every year until you give up work.

Save Each Paycheck

You then have to work out how to be able to save that amount out of each pay check. You may need to look at some areas where you are over-spending; for me it was dining out too often and expensive entertainment. I found I was able to shave $50 dollars a week from these two areas alone; my financial guy said that, over the next 20 years, this would grow to around $80,000 at 4% interest! I’m looking for ways to shave even more off our spending to improve on this figure.

Adjust Your Plan

One strategy you might have to consider is to keep working after retirement age, so you have built a bigger nest egg before you retire. Even working for just an extra 3 years can make a huge difference to the cash you will have in retirement. Some people take on a second job to help fund their retirement; others do part-time work during retirement to keep some income coming in to augment their savings. Another reason for staying in the workforce longer is to delay getting Social Security. Each year you delay, the benefit goes up about 8% up to age 70.

Find Out Where You Stand Now

The next important thing to do is to work out the value of savings, investments and retirement plans you already have. These can help to fund your retirement and increase the amount of disposable cash you have during those years. Another tip I learnt – you may be losing money in fees and charges if you have multiple accounts. Get advice about consolidating them into one or two.

Search for Options

Look for the best ways to save for retirement. If you don’t participate in your employer’s retirement plan, open one now and start contributing the maximum you are allowed. The tax laws now allow workers over 50 to increase their contributions, so if this is you, find out more. Ask if your employer matches your contributions – this is free money that you need to tap into.

A big problem faced by the over 40s, as they work towards a comfortable retirement, is debt. The last thing you need after retirement is debts you are still paying off. It is important to address these now; seek professional advice about consolidation of debts, debt management and early pay out of debts, especially credit cards. Going into retirement debt-free is going to make life so much easier for you.

Look at ways you can improve your financial position if you are an empty-nester.

As your kids grow up and leave home, you might consider down-sizing your home to reduce or eliminate your mortgage. You might decide you don’t need two family-sized cars anymore. If you invest the savings, your retirement accounts will look so much healthier.

Bottom Line

The message here is – start now; don’t delay retirement planning any longer!

So, is there anyone else out there like me that started saving in their 40′s? I would love to hear your story so please share.

Reminder: This is a story from one of your fellow readers. Please be nice. Remember that this guest author isn’t a professional writer, and is just learning about money like you are. Henceforth, unduly nasty comments on readers stories will be removed or edited.

PS: If you have story to share, please submit it here.

Why Buying Green Is Not Always Eco-Friendly.

David (Staff Writer) — Tue, 15 May 2012 06:41:30 +0000

You’ve seen the ads on television, in magazines, an at the mall. “Go Green” by purchasing this reusable bag! Be more “Eco-Friendly” by picking up one of our 100% recycled-plastic doo-dads! “Love the Earth” by replacing your t-shirts with new designer-brand organic cotton ones! The greenwashing of our retail world knows no bounds, as major corporations jump on the green bandwagon and market products that most of us aren’t interested in, nevermind even need. They have assembled teams of charlatans with the goal of tricking you into buying products you don’t need just because the product is “green” – and they are very good at their jobs.

Don’t fall for it. Don’t let them get you.

If you do not need an item, you definitely don’t need a green version of it. If your bookcase or desk still works just fine for your needs, you don’t need to replace it with one made from sustainably-sourced hardwood from a local supplier. The one you have is perfectly good, doesn’t require any new materials to be harvested at all, and won’t end up in a landfill. Imagine if everyone replaced the items they already own with new eco-friendly versions. What a mess that would make, all in the name of going green!

A few years back I received a press release about a “green” mansion that some billionaire was building. Reading the specs I kept saying to myself that there is no way this house is green. A giant pool, waterfalls, a 7 car garage, a dock for a yacht, 11 bathrooms, and 15,000 square feet of living space. How in the world is that considered green? Because it has a few solar panels out back? That’s the furthest thing from green that I could possibly even imagine, yet here was this PR puppet sending out information to green bloggers in hope of getting coverage. And you know what? She got it, and not from just a few sites. Many covered it without nary a mention of greenwash or the hypocrisy of it all.

That’s frightening. And it’s not a welcome trend.

I am all-too-often hearing fellow eco-writers talk incessantly about all the swag they picked up at one of the many “green” conferences they attend each year. Pens, bags, pins, stickers, frisbees… When did they stop being environmentalists and become swag hoarders? Just because something is free does not mean one needs to take it, especially if it’s nothing needed nor useful. There is nothing green about that at all.

The word “green” has become a catchall term without much meaning anymore. “Buying Green” is even worse; just the fact that we use that phrase kind of takes away from what green used to mean. Yes, we can buy more eco-friendly products when we need them. But buying and replacing just for the sake of buying green is the complete antithesis of what the movement is all about. It’s about reducing, reusing, repurposing, recycling, and regifting – not shopping.

So before you run out and “buy green”, ask yourself 10 very important questions:

Do I even need it?
If I am replacing something I already own, is the one I have working just fine?
What will I do with the old one?
How much energy is exerted to make the “green” version?
How far away was it made?
Who made it?
How long will it last?
Am I falling for greenwashing?
Is this bringing value to my life?
And again, do I need it?

No one will ever begrudge you for buying what you need. And when you buy what you need, look for an eco-friendlier version. Need a new lightbulb? Buy a CFL or an LED bulb. Looking at new cars? Why not take a gander at a new hybrid from Toyota or Honda. Out of batteries? Pick up a set of rechargeable batteries that will last you at least 5-7 years.

We all need to shop and purchase items once in a while; it’s to be expected. But if you are buying green to replace something that doesn’t need replacing, or even worse buying something you don’t even need, you aren’t doing the planet nor the environment any good. Not all “green” is created equal.

So readers, have you replaced perfectly good items in an effort to be green? If so, what did you replace? Or, if you have gotten free stuff, how much of it have you actually used?

Reader Question: How to Stay Positive When Times are Tough

Miss T. (Owner and Head Writer) — Mon, 14 May 2012 06:21:05 +0000

This week I received a question from a reader asking how to stay positive in a bad situation. Here is what is going on:

I’m in a very difficult situation and would like to have your suggestions to be able to think positive. My father suffers from a serious cancer, and I have developed a major depression after learning the news, and right now I’m on sick leave. I have almost no social support (no friends) except members of my family. My family like me is tired because we have all been taking care of my father. I have always worked hard at school, but even then things haven’t come easy. I have never had a passion for anything that I could now rely on to try to get out of my situation. What should I do?

First off, I want to say I am sorry to hear about your father’s diagnosis. My thoughts and prayers are with you and your family.

The impact of cancer is a tremor felt by every member of the family and it is never easy to deal with. I can only imagine what you and your family are going through.

When I have faced adversity in my life, I have found a few things that I can do that seem to provide some relief and comfort. I can only hope they will provide some solace for you. Below is what I have done:

Breathe

When we are stressed and overwhelmed our basic body functions are affected, even our breathing. The first I do when I am upset or stressed is take a few deep breaths. I find it grounds me and I feel a release. For each moment in a day when you feel like you have hit your max, stop and take 5 deep breaths.

Think about Today not Tomorrow

I find that being mindful about what is happening right now and not worrying about tomorrow helps a lot. I save a ton of energy because I only need to focus on one thing. I also am able to relieve myself of worrying about things I don’t even know for sure are going to happen. Dealing with things as they come and in the moment has been a great stress reliever for me.

Find a Positive Influence

Associate or mix around with people who can provide something of value. Avoid those who zap your energy and motivation. If you can’t avoid them, or don’t want to, learn how not to let them get you down. I find volunteering a great way to meet new people and take my mind off things. When you volunteer you are focused on doing something good and everyone around you is happy and appreciates the effort. You can’t help but go home feeling good about how you spent your time. This feeling good can transfer into others areas of your life.

Try New Things

You mentioned you don’t have any passions. Well it is time to find one. Experiencing a wide variety of life in a positive light will do wonders. Something as simple as trying a new restaurant can lead to new tastes and different sensations. It’s all about the simple pleasures of life.

Read a Book

Read about how those people who fought fear with courage and succeeded in life. Through reading, you will gain new knowledge and understanding and it will help you clear your mind and create a new perspective. It is also a great distraction for your mind.

Exercise

I find exercise really helps with my moods and emotions. When we exercise our body releases endorphines which are ‘feel good’ hormones. Not only will you feel good after exercising but you will also sleep better which is great for helping you cope and manage the day to day.

These are just a few things that I have found to help me cope and stay positive during rough times. There are many other options out there. This is just a start.

Above all else, remember this quote: “I am still determined to be cheerful and happy, in whatever situation I may be; for I have also learned from experience that the greater part of our happiness or misery depends upon our dispositions, and not upon our circumstances.” – Martha Washington

Readers, how would you try to stay positive and get through this situation? What kinds of things do you think they should try? Please share as your ideas may just be the key to providing some relief in this troubled time.

PS: If you have a question, please submit it here.

Benefits of the Great Outdoors

Marie (Staff Writer) — Fri, 11 May 2012 06:21:48 +0000

How much time do you spend outside of a building vs. indoors? If you are like most, you spend a whole lot more time inside.

Humans aren’t meant to be indoor animals. It is not good for us to be inside all of the time. Yet most people in developed countries spend most of their days indoors.

Why should you take time to be outside? Below are 6 reasons:

Find your place in the universe.

Being outdoors helps you understand your place in the universe. You feel closer to the earth, its plants, animals, winds, tides, mountains, hills, valleys and streams. It helps you realize that you belong to the Earth’s systems – it helps you be one with the Earth.

Being part of the natural world teaches us that we are part of a natural system which includes the entire Earth and all of its systems.

An article in the American Psychological Association ‘Getting Back to the Great Outdoors‘ quoted Richard Louv, author of “Last Child in the Woods: Saving Our Children from Nature Deficit-Disorder” (Algonquin Books, 2005) as saying “Beyond the health and cognitive benefits children may gain from free and unstructured play outdoors, nature also provides them with a sense of wonder and a deeper understanding of our responsibility to take care of the Earth. Yet increasingly, nature is the last place you’ll find children, research shows.”

Lose your daily problems.

Your daily problems fade when confronted with the splendor and enormity of nature. Being outside helps you meditate on the beauty and complexity of nature and lifts you out of yourself and your man made problems, and may even heal physical ailments sooner.

The Daily Mail reported that Professor Roger Ulrich, a leading expert in the benefits of natural green space noted that hospital patients who had a room with a natural view went home 2 – 3 days before patients that had a room with a view of buildings.

Reduce stress.

Studies, again by Professor Roger Ulrich, prove that heart rate and blood pressure drop faster if stressed people are in a natural surroundings as opposed to indoors. Feeling the wind on your cheek, letting your eyes scan the distance, hearing the water in the stream and the birds in the trees gets us outside of ourselves, helping us forget our stressors.

Get nutrition.

The very best source of vitamin D is natural sunshine – obtained outdoors.

Move more.

Physical movement feels good and is good for you. Outdoor exercise is more physically challenging and mentally stimulating than indoor exercise. When you are outside, you do more and enjoy it more. Your children get more exercise, mentally and physically. They become more fit and creative if they get nature time outdoors.

Sense more.

Being outdoors enlivens your senses of sight, sound, smell, touch, and hearing. You have an increased ability to focus after returning indoors.

In the article, “Great Outdoors – 6 Benefits for Kids iVillage quoted the American Journal of Public Health as saying “exposure to ordinary natural settings in the course of common after-school and weekend activities may be widely effective in reducing attention deficit symptoms in children.”

Celebrate the day.

Of course we have a special day, National Get Outdoors Day (GO Day) here in America to encourage folks to get outside. This year it is June 9. On that day federal agencies, non-profit organizations and recreational organizations are teaming up to offer information and activities across the nation.

According to the National Get Outdoors Organization website:

” The pilot effort of National Get Outdoors Day was launched on June 14, 2008. Building on the success of More Kids in the Woods and other important efforts to connect Americans – and especially children – with nature and active lifestyles, the USDA Forest Service (FS) and the American Recreation Coalition (ARC) agreed to lead an inclusive, nationwide effort focusing on a single day when people would be inspired and motivated to get outdoors.”

How much time do you spend outside? How about your kids? What kinds of things do you like to do and what kinds of benefits have you found?

The Eco-Friendly Benefits of Being Vegetarian

Carnival of Financial Planning – Money Management Edition #236 – May 11, 2012

Miss T. (Owner and Head Writer) — Fri, 11 May 2012 06:14:23 +0000

Welcome to the May 11, 2012 Edition #236 of the Carnival of Financial Planning.

This edition is arranged by subject heading, so that you can browse efficiently.

Enjoy!

The Skilled Investor, Editor

Budgeting and Economics

Little House presents The Five Tool Budgeter posted at Little House in the Valley, saying, “In baseball, a five-tool player is one who excels in some of the game’s major skills: fielding, base running, hitting for power, hitting for contact, and throwing ability. As we move to your budget, there are five areas where you must excel to find financial success

Philip presents My Accountant Reviews QuickBooks Online vs Desktop posted at PT Money Personal Finance, saying, “Since I don’t know as much about how QuickBooks Online compares to the desktop version, I asked my accountant to share his opinion on the two based on his experience.

Janet presents Expense budgeting posted at Fee Only Financial Planner , saying, ” Many people do not track their living expenses and do not understand the magnitude of their consumption. Failure to monitor your consumption expenditures means that they are flying blindly regarding their future finances. ”

Dr Dean presents iPads And Tablets: Ten Ways To Keep ‘Em Safe While Traveling posted at The Millionaire Nurse Blog, saying, “iPad’s size and weight make them great for traveling Read all about how to help keep yours from the black hole that is ‘ airline lost and found.’

Financial Planning

Ashley presents Should I Get Married with Debt? posted at Money Talks Coaching, saying, “Money and marriage. They go together like peanut butter and jelly

Kyle presents Earn $5 for Taking a Picture of Your Grandparents and 12 other weird things… posted at The Penny Hoarder, saying, “Fotokoi is an online market that allows people to exchange photos. The best part is, people interested in your work will pay you for rights to your photo.

YFS presents What Is Asset Allocation and Why Is It Important? posted at Your Finances Simplified, saying, “One of the things that investment gurus always emphasize is to diversify, diversify and diversify. Supposedly, diversification will help improve the overall performance of your portfolio since it doesnt ride on just one investment vehicle.

PPlan presents U.S. Companies Exploit International Workers – Lack of Fair Wages posted at Provident Plan, saying, “Learn more about Infosys and why U.S. companies should not treat workers this way.

Jester presents The Importance of Vacations For Kids posted at The Ultimate Juggle, saying, “This article explains the reasons that we prefer to take destination oriented vacations for the kid’s sake.

Robert presents 5 Steps Toward Post College Financial Bliss posted at The College Investor, saying, “Over my past few posts, I’ve highlighted key transitions that have financial ramifications in any college graduate’s life: The job search and managing life in your first apartment. Today, I will round out this series with some tips on how you can help solidify a strong financial foundation for years to come.

Savvy Scot presents Defining Purpose and the Importance of Moderation posted at Savvy Scot, saying, “This post seeks to find the purpose in what you are doing. Savvy Scot controversially talks about how to spend money and what so many financial bloggers are doing wrong!

Tushar presents How to Dodge Investment Scams posted at Start Investing Money, saying, “How to Dodge Investment Scams on Start Investing Money”

Dave presents Active Alpha Returns posted at Wall Street Nerds , saying, ” The Old Testament of indexing is Burton Malkiel’s classic A Random Walk Down Wall Street, first published in 1973 by W.W. Norton and now in its ninth edition. For typical individual investors, without special access to information, it offers what is likely the best financial advice they will ever get: It is hard to consistently beat the market, especially after fees. A passive strategy will do better in the long run. ”

Ryan presents Retiring Early is Only Going to Get Harder posted at Early Retirement Investments, saying, “Why Your Children Should Open a Roth IRA at Age 18

Jen presents Using Extra Income to Pay for Luxury Items posted at Master the Art of Saving, saying, “I was under the incorrect assumption that I had already told you guys how I afford to pay for my luxury items.

Wayne presents Unexpected Costs of Pet Ownership posted at Young Family Finance, saying, “Pet ownership can be quite expensive. If you are considering getting a new pet, make sure to consider these costs.

PFP presents Investment Tax Management posted at Pasadena Financial Planner , saying, ” As you move your cash, bond, and stock financial assets into lower cost, more broadly diversified investment mutual funds and/or ETFs, you should also consider how to “locate” your investment asset allocation with respect to more optimal taxation.”

A Blinkin presents Should I Buy A House? posted at Funancials, saying, “I rarely divulge details from my personal life, but today Im looking for some feedback. Let me give you the full story: I have been dating Miss Blinkin for approximately 1 year and 4 months. Without giving too much information, I foresee an engagement in the coming months.

Maria presents Politics and economy in the Eurozone part 1 posted at The Money Principle, saying, “The people have spoken in France and Greece. They do not like this austerity business one little bit. Can you blame them? After all it was not the people who caused the problem so why should they suffer while the banks get off scot-free?

Frank presents Passively Managed Funds posted at Individual Investor Strategies, saying, “Short-term mutual fund trading is a zero sum game played against other very well informed mutual fund traders and other securities market traders. On average, higher mutual fund turnover is far more likely to result in lower investment fund performance — instead of superior risk-adjusted performance.”

Jason presents Why We Didn’t Sell Our Car on Craigslist posted at Work Save Live, saying, “Last week I detailed why we considered buying a car through CarMax, and I wanted to do a follow-up on a service of theirs that we actually used.

Income

MMD presents What Did You Learn From Working as a Teenager? posted at MyMoneyDesign, saying, “Was your job as a teenager a complete waste of time, or did you learn some incredibly valuable life lessons that prepared you later on in life to be a better working professional? I present to you 17 lessons I learned from my early days of employment that I still carry with me today.

Mike presents May Blog Evolution Report… + Income Stats! posted at The Financial Blogger, saying, “The online income for May.

Madison presents Credit Card Application Spree to Maximize Sign Up Bonuses posted at My Dollar Plan, saying, “It’s time for a round of credit card applications to make some money! Readon for some great bonuses.

Beating Broke presents I Quit My Job: Back to Work posted at Beating Broke, saying, “If you’ve been following the I Quit My Job series, you’ll know that I quit my full-time job back in November 2011 and have been working a part-time job and running my websites ever since. With any journey that entails so much change, things are always changing. Several weeks ago, I made the decision that it was about time to start looking for a new full time job.

Insurance and Risk

Hank presents What Is Gap Insurance On Your Car And Why You Need It posted at Money Q&A, saying, “What is gap insurance? And, do you need it? Gap insurance is a type of car insurance policy that is designed to cover the gap between what the value of your car actually is, and what you owe on the vehicle.

Larry presents Identity theft protection posted at Objective Financial Planner, saying, “As a threat to your financial security, you should take the potential for identity theft very seriously. Identity theft sometimes entails a loss of your money, but whether or not you lose money, it can take a very large amount of your time to rectify.”

Green Panda presents 2 Great Reasons Why Young People Need Life Insurance Too! posted at Green Panda Treehouse, saying, “Why you should purchase that plan.

Investing

FMF presents 80-20 Your Investments posted at Free Money Finance, saying, “While many people seem intimidated by investing and don’t know where to begin or what to do, being a successful investor is not that complicated. In the end it comes down to three basic (but important) steps.

Larry presents Your investment risk tolerance posted at Independent Fee Only Financial Planner , saying, ” Individual investors with different levels of investment risk tolerance for financial risks tend to be more satisfied with risk management strategies, which are better aligned with their financial risk and return profile.”

Squeezer presents Instructions on how to get started in dividend reinvestment plans (DRIPs) posted at Personal Finance Success, saying, ” I give my thought processes and what to look for when wanting to invest in a dividend paying company. I explain how to get started by purchasing the minimum amount of shares or dollars.

Dividend Growth Investor presents Build your own Berkshire with dividend paying stocks posted at Dividend Growth Investor, saying, “Buffett’s strategy of using Berkshire’s cash to purchase more businesses is similar to what dividend growth investors like to do. By creating a diversified portfolio of world class blue chip dividend paying stocks, investors are essentially creating a cash machine that would throw off enough cash to buy more shares in quality companies or to provide for in retirement.

William presents Superior Mutual Fund Performance posted at No Load Funds , saying, ” Screen out inferior mutual fund performance — but only after using other ETF and mutual fund selection criteria. Superior or even average mutual fund performance in the past simply does not predict similar fund performance in the future.”

Pierre presents Do You Mind Non Voting Shares? posted at Intelligent Speculator, saying, “Do you trust companies like Facebook and Google?

Div Guy presents Using Dividend ETF’s In A Dividend Portfolio posted at The Dividend Guy Blog, saying, “We help you improve your portfolio.

Frank Pinter presents No Load Bond Funds posted at Cheapest Bond Funds, saying, “Investment research overwhelmingly shows that lower cost fixed income funds tend to yield higher bond investing returns.”

FMF presents The Efficient Frontier posted at Free Money Finance, saying, “The efficient frontier measures investments on a scale of risks and return.

Managing Debt

Paul Vachon presents The Effect of FICO Credit Scores on Wealth Creation posted at The Frugal Toad, saying, “We all know that a good credit score can result in a better interest rate on loans but you may be surprised to learn that a bad credit score can affect you in ways you might not have thought about. In addition to paying higher interest rates, a poor credit score can result in higher insurance premiums, denial for employment, or having to pay a security deposit when leasing an apartment or opening a utility account.

KT presents In Debt Consider Paying Cash for Your Purchases posted at Personal Finance Journey, saying, “Are you in debt besides the mortgage? Do you have thousands of dollars worth of student loan debt and/or credit card debt? If you are struggling to make your payments, one of the best things you can do is to stop using credit and begin to use cash.

MR presents Is Now The Time To Buy Real Estate? posted at Money Reasons, saying, “With the low mortgage rates, is this the perfect time to buy real estate? I find myself looking more and more often.

John presents The Goal of Work is Retirement: Rule 10 posted at Married with Debt, saying, “This is Rule 10 in my 10 Rules to Eliminate Debt and Change Your Life The reasons I started Married with Debt are twofold: to help people get out of debt, and help them change their lives.

101 Centavos presents Wall Street Hates Wal-Mart posted at 101 Centavos, saying, “After running a just-for-fun post a while back on a Redneck-themed stock portfolio, some readers suggested adding Wal-Mart WMT to the mix.

Debt Guru presents Actively Avoiding Debt posted at Debt Free Blog, saying, “Find out how you can actively avoid debt by not having a wish list or items that you want to buy next.”

Real Estate

Corey presents How to Furnish Your Apartment for Cheap posted at 20s Finances, saying, “One of the most common places that people overspend in their budget, in addition to buying food or groceries, is in home furnishings. It’s easy to see why this is one of the most expensive areas for people. Furniture and major appliances are expensive.

Aloysa presents How to Make it in America posted at My Broken Coin, saying, “I am sure you know that it is not easy to make it in America. Making it whatever it means for you requires a lot of work and determination. It also requires bravery and courage. For someone like me, making it in the land of opportunity was not just about hard work and determination.

FG presents Betting on the Future President posted at Financial God, saying, “Have you ever visited Intrade, which brands itself as the leading prediction market? You can make a market in almost anything these days, it seems. Intrade is a prediction market based in the Republic of Ireland, and lets you bet on predictions in all kinds of areas, including the future president of the United States.

Nick presents How much house is too much posted at Step Away from the Mall, saying, “Buying a house is never a simple process… Here’s my thinking about how to buy just enough house for my family.

Retirement

Jon the Saver presents When Should you go for a Reverse Mortgage? posted at Free Money Wisdom, saying, “Reverse mortgages are tricky things. Instead of avoiding them, why not research them and see if they would work for your financial goals!

Franklin presents Traditional IRA Versus Roth IRA posted at Better Retirement Planning , saying, ” Many taxpayers puzzle over whether to contribute to traditional versus Roth tax-advantaged retirement plans. For most people, contributions to traditional tax-advantaged plans will probably provide a higher net present value over their lifetimes.”

Boomer presents Turning 60: Some Things To Consider Before You Retire posted at Boomer & Echo, saying, “If you’re still working at age 60 you may be thinking of retirement now, or in the near future. It’s time to consider how you will spend your days.

Whitney presents Retirement Planning Worksheets posted at Retirement Saving Plans, saying, “While personal wealth should measure current financial investments and other salable assets, it should also measure your ability to sustain your household budget, build up your investment portfolio, and weather potential financial risk and misfortune across your lifetime.”

Savings

Martin presents http://studenomics.com/application/switch-online-banking/ posted at Studenomics, saying, “Why you need to save your money in the right places.

TSI presents Hard work determines wealth posted at The Skilled Investor , saying, ” How much you earn, spend, budget, and save are by far the most dominant determinants of your long-term financial well-being. Self-control in your financial decision-making regarding budgeting and consumption is far more important than clever investing. ”

Liana presents Review: Bank of America’s New Travel Rewards Credit Cards posted at Card Hub, saying, “Bank of America just made travel a whole lot sweeter for their customers. With three new travel rewards cards on the market, it looks like they are taking on their competition. But how do these new offers really stack up when it comes to saving on travel?

Suba presents How to Save Money on Hotel Rooms posted at Broke Professionals, saying, “How to Save Money on Hotel Rooms is a post from: Broke Professionals if you enjoy it, please visit us and subscribe to the Feed. You dont have to be rich to take a trip or go on a vacation, but they do cost money.

Taxes

Super Saver presents Taxes are Going Up – Even for the 99% posted at My Wealth Builder, saying, “Warning! Taxes are going up in 2013 for everybody

Paul Tabbet presents Retirement Planning Worksheet Software posted at Tax Planning Software, saying, “Retirement planning software should automate the development of lifetime projections that incorporate tax laws and rules associated with tax-advantaged retirement investment incentive programs such as traditional IRA, Roth, 401k, 403b, SEP, Keogh, and other retirement plans.”

That concludes this edition. Submit your blog article to the next edition of Carnival of Financial Planning using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Technorati tags: carnival of financial planning, blog carnival.

Bike Your Way to a Healthier, Richer, Happier You

Happy Homeowner (Staff Writer) — Thu, 10 May 2012 06:32:16 +0000

Did you know that 90% of Americans drive to work despite the fact that 70% of them have a commute that is less than 2 miles? Reading this statistic surprised me, even though I’m one of the 0.6% of our nation’s population that bikes to work.

What if you consider that over 37.5% of our population is classified as being obese yet a mere 1% rides a bike for commuting/running errands while in Holland only 9.3% of the population is obese and 25% bike instead of drive? Based on this comparison, it’s easy to see that the U.S. needs a transportation overhaul.

Biking Makes You Healthier

When biking to work for an entire year, the average person will lose 13 pounds (and keep it off!). By biking instead of driving, you’re also boosting your immunity which will help stave off bouts of the flu, common cold, and sinus infections. Additionally, an increase in exercise will typically cause your body to naturally crave food that is good for you. Instead of yearning for that candy bar for each afternoon’s pick-me-up, you may pleasantly be surprised to find yourself reaching for a bunch of grapes or an apple instead.

Since I began biking to work nearly every day, I have toned my muscles more, increased my cardio fitness (which also helps with my running), and I have seen a drastic reduction in the frequency of medical appointments. In fact, this past winter I didn’t have to be seen more than once for a sinus infection whereas the previous year I had been in my doctor’s office at least 4 times during cold & flu season! I can honestly say that I’m in the best shape of my life thanks in part to my daily bike commutes.

Biking Saves Money

Let’s say you currently drive to/from work each day, Monday through Friday. Given the insane gas prices we’re facing lately (plus, we’re headed into construction season which means a longer, more convoluted commute), let’s give a generous estimate that you fill your car for $55 twice a month. That’s 110 of your hard-earned dollars being funneled directly into your gas tank. If you continued to only fill up for this amount twice per month, after a full year you’d have spent $1,320 just on gasoline alone.

Last summer, I purchased a hybrid bicycle for less than $600, and I biked to work every day. I had an 8-week stretch where I didn’t have to put a single ounce of gas in my car’s tank. I could have purchased 2 brand-new bikes for how much I would have been spending on gasoline.

Furthermore, with your reduced stress, increased happiness and better health, you’ll be spending less money on healthcare costs. You’ll have to pay for far less co-pays, prescriptions and long-term costs if you establish a consistent exercise regimen and incorporating cycling into your day is an excellent way to do so!

Other monetary benefits of biking instead of driving include less maintenance costs due to less wear & tear on your vehicle, less money spent on parking, and a possible savings on utilities if you’re able to shower at your workplace in the mornings.

Biking Makes You Happier

Have you ever heard of the Runner’s High? Essentially, it’s that feeling of absolute bliss induced when endorphins are released as you exercise. Not only are you doing wonders for your body physically, but you’re ensuring its mental vitality as well.

For those people out there with the short commute to work, think about the increase in your general productivity and workplace morale if you’re not subjecting yourself to the daily road rage-filled drives or shoulder-to-shoulder subway rides. Imagine coming to work cool, calm & collected instead of being frazzled from a less than enjoyable commute. While biking to work demands your attention to traffic and safety, there are many moments where your mind is free to wander. This feeling of mental freedom can have profound effects on all aspects of your life, including work.

Biking can also help strengthen social bonds which are a proven key to overall happiness. May is National Bike week, so there’s no time like the present to get a group of friends and/or family members together for a ride. If you’re feeling particularly inspired, sign up to participate in National Bike to Work Week or Day (week is May 14-18; day is May 18). Happy pedaling!

Do you bike to work or when running errands? Why or why not?

8 Tricks to Travel Healthier

Prairie Eco-Thrifter Was Included in Five Carnivals This Week

Miss T. (Owner and Head Writer) — Thu, 10 May 2012 06:15:36 +0000

My post, My Story on How to Successfully Take Courses While Still Working Full-Time, was included in the Carnival of Financial Camaraderie #32 hosted by Young and Thrifty as well as the Financial Carnival for Young Adults #11 hosted by 20’s Finances.

Many thanks to One Cent at a Time who hosted the Yakezie Carnival – The Facebook IPO Edition and included my post, The 5 Dimensions of a Meaningful Life.

YFS’ post, How to Save Lots of Money by Making a Few Simple Drink Changes, was included in the Carnival of Money Pros hosted by Young Adult Finances.

Finally, Marie’s post, What Is National Financial Literacy Month?, was included in the Carnival of Personal Finance #360 hosted by Money Talks Coaching.

Want to Impress Your New Boss? Here’s How

Miss T. (Owner and Head Writer) — Wed, 09 May 2012 06:50:08 +0000

So, you have a new job and with it comes a new boss; or maybe, you have the same job and a new boss has been appointed as your superior. Now what you ask?

Since the economy has been in recession, the current state of things is causing many people to really rethink how they view their job security. Those jobs for life we hear our parents and grandparents speak about, are unfortunately, not nearly as prevalent as they used to be. For all of us, our best bet is to make ourselves one of the employees that stand out from the others in terms of the willingness to work, enthusiasm, innovation, our behaviour, skills and dedication to our organization.

Below are a few suggestions to keep your boss happy and think very highly of you. And ‘’No’’, I’m not talking about sucking up to your boss or brown-nosing your boss. Rather, these tips are legitimate, positive, inspiring and necessary guidelines to help you build a great relationship with your boss. In my 15-year career to date I’ve worked at a large number of different companies and held a wide variety of positions. I’ve seen how this works from every angle, so I thought I’d share some thoughts on what’s worked for me and what I’ve learned along the way. Remember, bosses don’t want to lay off staff with whom they have a genuine work friendship. Here is how you can get started on the right foot:

Have a positive, can-do attitude

You might be nervous about starting a new job but try not to let it affect your attitude. Have a positive attitude to your job and the tasks assigned to you. Try not to think “I can’t do this”; rather think “I’ll figure it out.” Don’t go over the top; just keep a positive mind-set rather than a negative one.

Ask questions

Different people like things done different ways, so when you have a new boss, it is best to find out how they like things done. Ask for time frames for tasks, frequency of updates on progress, what the expected outcomes are and so on. It is better to get direction at the beginning than to make mistakes simply because you didn’t know. If in doubt, ask- it is better to get clarification than get it wrong.

Look at both sides

Remember, while you have a new boss, your boss also has a new employee. Consider the situation from the boss’s point of view to give you a broader picture of the situation. You don’t know what the boss expects of you; you don’t know what to expect from the new boss. Give your new boss a chance to be the best boss you have ever had.

Don’t try too hard

You won’t earn any credibility by being in the boss’s face, pushing yourself forward and being a know-it-all. Just stand back, do you job and be prepared to say if you don’t know something. You will look good if you can refer the boss to someone who does know the answers they seek. Relax and be yourself, work quietly and efficiently, answer questions honestly and succinctly and you will make the best impression.

Don’t indulge in office gossip with the new boss

Let your new boss find out about other workers in their own way; it is not your job to spill all the latest workplace gossip. Telling stories about other workers will earn you no credibility and casts doubt as to your work ethic.

Actions speak louder than words

Don’t waste your breath telling your new boss how good you are. Actions do really speak louder than words so just put your had down and do your job to the best of your ability. Talk is cheap; always do what you say you will do, don’t promise what you can’t deliver and follow through until the job is completed.

Volunteer for extra tasks

Nothing gets you off to a flying start with a new boss than volunteering for additional work or tasks that are normally outside your job description. Only volunteer if you intend to follow through and always ask for guidance with a task you are unfamiliar with. Being prepared to ‘go the extra mile’ always makes a good impression with a new boss.

Consider a new boss as a fresh start

Whatever reputation you had with your last boss or in your last job, having a new boss gives you the opportunity to start fresh. Leave behind any problems or hassles that you had and make a fresh start with this new boss. Determine to do the best job you can, be trustworthy and reliable and don’t allow any grievances with your last boss affect your relationship with this one.

Well, there you have it. I know that was a lot of information to cover, but it’s some important stuff. You probably came to this page looking for some quick and easy things you could do to look better to your boss, but here’s the beauty of this system: if you actually do these things, you’re going to look better to everybody; And not in any kind of tricky or gimmicky way, either. You’ll look better because you’ll be better. If you want to be known for all the positive things mentioned above, the only way to achieve that goal is to actually be that kind of person. There are no two ways about it, and there is no substitute for hard work.

Remember what Jane Boucher, the author of How To Love The Job You Hate: Job Satisfaction for the 21st Century said “The relationship with your boss is a partnership, and it takes an effort to build the relationship and nurture it. You have to communicate well, avoid confrontations and resolve differences in a positive way.”

So, have you tried to impress your boss in the past? What has worked and what didn’t work? I would love to hear you story.

No related posts.

How to Save Hundreds of Dollars a Year on Your Water Bill

David (Staff Writer) — Tue, 08 May 2012 06:34:10 +0000

Spring and summer are rapidly approaching and we all know what that means – lush green lawns, sweet-smelling flowering planters, and overflowing backyard gardens. Along with all these warm weather favorites come dramatically increased water bills and usage, as all that green requires a constant flow of our most precious resource to thrive. And while most of us have access to the city water we need for drinking, flushing, and gardening, there is one easy way you can cut your water bill down quite a bit while potentially saving thousands of gallons of fresh water this season: by catching the water you need from the sky, free of charge.

Depending on where you live you may or may not be able to catch enough water to provide for all your watering needs, but that shouldn’t stop you from trying. After all, with just small upfront investment and a small amount of labor you could be saving yourself money and water year after year! Who wouldn’t like saving money and the environment with such a simple tip? Certainly not you! So with that in mind, let’s talk about collecting rainwater and how to install various types of water catchment devices at your home.

Collecting Rainwater

Did you know that up until very recently harvesting rainwater was illegal in a few states, including Colorado, New Mexico, and Utah? Yep – it was illegal to put buckets out on your yard and prevent the water from landing (and thus flowing) naturally in the earth. The reasons as to why vary from state to state, but generally it was because of water-rights issues still in play from long ago. Thankfully residents have started standing up for their right to install water collection devices at their homes, and the laws have softened up, especially for small-scale systems. Most everyone now can collect rainfall for their own use around their property.

A typical rainy day may not seem to bring too much rain, but just 1 inch of rain falling on a 1,000 square foot roof with a harvesting system in place can collect 600 gallons of water. That’s 600 free gallons of precious water! To figure out how much water you can collect off your roof from just a single inch of rain, multiply the square footage of your roof x 0.6 and voila – that’s how many gallons you can save for future use. But just where will you store all that water?

Water Catchment Options

Rain Barrels – Rain barrels are generally available at most home supply stores or many stores online, and are the cheapest way to store and save the water you collect. From $50 and up (depending on how fancy they are), rain barrels are made of plastic or wood and have an opening at the top for your gutter downspouts to be aimed at or attached to and they usually have a spigot at the bottom which you can attach a hose to. Install a few of these at the bottom of each of your gutters over a weekend and the next rainy day could provide hundreds of gallons of free water.

Cisterns – Cisterns are much bigger than rain barrels and can be stored above ground or buried in the ground. Designed to hold thousands of gallons of water, cisterns are popular with people choosing to live off-grid or in desert locations where it rarely rains. One major rain storm in the desert may have to provide all the water a person like that may need for 6 months, so they need to be sure to collect as much of it as possible. For the typical homeowner, a small cistern could be buried in the backyard and collect enough rainwater for all gardening and lawn care needs. Cisterns are usually made from plastic, fiberglass, concrete or metal.

No matter how you choose to store your harvested water, you need to get it off the roof and into the containers. This can be done via normal household gutters and downspouts, elaborate, professionally-installed hoses, or attractive metal “rain chains”, which gently guide water off the house and roof and into storage. Most people just use the existing gutters on their home, as I did when I lived in New Mexico.

None of the equipment for collecting rainwater has to be too expensive and a system can be put in place in just a few hours. You could easily save hundreds of dollars each year on your water bill by installing a small rainwater catchment system at your home all while doing your part to protect Earth. So what are you waiting for? Summer is right around the corner!

So, do you have a rain water collection system? What do you use it for?

PS: Don’t forget to check out the new “Share Your Voice” section on the PET homepage.

Start Saving Early for Retirement: Tips for Young People Just Starting Out

Miss T. (Owner and Head Writer) — Mon, 07 May 2012 06:30:41 +0000

‘The time to start saving for retirement is yesterday’ quipped the financial advisor. The second-best time to start is today!

The longer you save for retirement, the more money you will have to retire on, even if the amounts saved are quite small in the beginning. This article looks at the reasons an early start to retirement saving is so vital and why so many people just don’t get it.

In a recent US survey of 1,153 retirees and workers, the results showed that nearly half (43%) had retirement savings of under $10,000, excluding their pension and home. Unless you only intend to live for a year after you retire, $10,000 isn’t going to get you very far.

In another survey of nearly 10,000 people, 34% stated that they were not contributing to any type of retirement account; 31% claimed they were saving just 1% to 6% of their income; only 8% were saving more than the recommended 15% for their retirement.

These surveys show quite clearly that a huge section of the working population is not making any contribution towards their retirement funding. In this day and age, it is certainly not a good idea to sit back and hope to rely on government pensions either. With the population aging, there simply won’t be enough people working and paying taxes to fund any government support of retirees.

Why are so many people not saving for their own retirement? In other surveys, these are some of the reasons people give -

- “I’m young, I just want to have fun; there’s still plenty of time.”
- “Retirement seems so far away; there’s no real urgency.”
- “I don’t earn enough to be able to put anything away for retirement.”
- “With the rising cost of living, I am having trouble making ends met, let alone putting anything aside for the future.”
- “My boss doesn’t have a 401K for me to join.”

You want to plan to retire from work, not from life. Retirement is supposed to be the best time in your life; a time that you look forward to with eager anticipation, not dread.

Unless you want to work until the day you die, you are going to need some savings to fund the years you no longer earn an income. Whether you want to retire early or work well after the retirement age, you will need to have saved enough to enable you to continue to live in the manner to which you have become accustomed. How many years will you be retired?

If you have no retirement fund, your quality of life could well be affected. It might mean living frugally, hoping you have enough for the bare necessities of life. I don’t think I’d like to live like this, but it is how many people have to. Unfortunately, it is going to be the reality of thousands of people in the future as well.

“Why should I start retirement saving early?” is a common question from young people still in high school or college, in their first job or just starting out in their career. They might have a part-time job to help pay their way through school or they may have started full-time employment for the first time. They have money to spend and the last thing on their minds is retirement.

Do you know anyone who fits this scenario? I know I do.

For a number of years, financial experts have been advising young people to set up a retirement savings account right from when they first start paid work. The ones who listen will be glad they did.

There are numerous scenarios that show the exponential growth of small amounts of savings over the working life of an individual. Even very small amounts from each pay packet, invested in a savings account, can grow to a healthy retirement income. The key is the length of time and the regularity of savings.

Here are some tips about starting early to save for your retirement years.

1. First, you’ve got to make a commitment to set aside a small amount from every pay check to fund your retirement. Have it automatically deposited into a retirement savings account.

The way to work out how much you can save is to create a simple budget that includes all your expenses and income. Even just $5 a week from your first part-time job at McDonalds is a great start and you are way ahead of most kids your age. If there’s no money for this, look at ways to cut back your spending, even by just a few dollars a week.

2. When you start your first full-time job, ask your boss whether they offer a retirement plan. Some employers will match your own contributions to your 401k or RRSP, up to certain limits, so this is extra incentive for you. Otherwise, ask about getting help to establish retirement account. There may be conditions or a qualifying period for these, so get all the information.

Why start early? Here’s a scenario that tells you –

If you start saving $100 per month from age 25, your retirement account would hold $379,000 when you are 60.
If you didn’t start saving the $100 until you were 35, you would have only $132,000.

Look at the difference the 10 years makes! As you earn more, you will increase your contributions and your retirement income grows exponentially.

This is your financial future we are talking about here. While it may seem a long time off, take a serious approach to it now, so you won’t have to worry later.

So readers, two questions today:

1. At what age did you start saving for retirement and what strategies did you use?

2. If you haven’t started saving for retirement, why?

PS: Don’t forget to check out the new “Share Your Voice” section on the PET homepage