The Happy Homeowner: A Personal Finance Blog

The Happy Homeowner: Version 2.0

2012-05-15T20:55:00.002-04:00

"Change is the law of life. And those who look only to the past or present are certain to miss the future"

~John F. Kennedy

Despite the big changes happening in my professional life, I've decided to march onward with my plan to overhaul this blog (because really, what's another ball in the air right now, eh?) Over the next few days, you may not see much happening because a ton is going on behind the scenes:

I'll be moving from Blogger to WordPress
The look, feel, and navigation of the new site will be completely different than what you see here
I'm going to step out of the anonymity shadow (gulp!)
Maybe, just maybe, I'll share a photo of myself--perhaps on Twitter, perhaps on the new blog, perhaps on both

In the spirit of all things HH 2.0, I'm reaching out to you for your advice, criticisms, and opinions about The Happy Homeowner (even if you're just passing by--I'd definitely like to hear your first impression(s) if you are!). In the comments, I'd love if you could share:

What you like about this blog in terms of design
What you would like to see added for version 2.0
What you don't want to see carried over to WordPress
What you're most interesting in reading about
Your thoughts on introducing content from my other blog (DIY, Home Improvement, and Decor)
Any additional insights you have

So bear with me as I make a truly epic change to how things are operating around here. It's time to lay my cards on the table in more than just the professional environment, and I look forward to bringing you one hell of an upgrade....

My Plan to Avoid the Unemployment Line

2012-05-14T23:46:00.003-04:00

First, thank you all for your wonderfully supportive comments on Friday's post about quitting my job. While I wasn't sure what the reception would be, I knew that I had to post about it because I want this blog to be rooted in all aspects of my personal finance truth, be it the good, the bad, or the ugly. I pride myself on sharing my financial blunders and milestones in an effort to inspire and/or educate others, and I value the feedback I receive here.

Second, I won't be filing for unemployment regardless because doing so would be 1. Illegal (I quit, I wasn't laid off) 2. Immoral (I have plenty of other side income from my part-time jobs and side gigs), and 3. Unnecessary as I plan to be gainfully employed in some sort of full-time capacity ASAP. Here is what I'm doing to avoid any potential of the unemployment line (if I were eligible for it):

Networking my bootay off. While it seems as if this decision was made out of the blue, it definitely was not. For the past few weeks, I have been a networking fool. However, I'm not a natural networker--in fact, it makes me quite nervous. So putting myself out there is not only sending the "I'm seeking a new job" vibes to the universe, it's also giving me an opportunity to brush up on skills that will help me build my side businesses as well as hopefully secure me a new full-time job.
Tweaking/upgrading my resume. Luckily, I've always had a bit of a talent when it comes to selling myself via cover letters. I also pride myself on having a decent resume, and I'm pretty much continuously tweaking it for one reason or another. For the latest round of upgrades, I sought out professional assistance....
Accepting the assistance of a head-hunter. This is a first for me. But I have to admit that it was a great feeling to walk into a stranger's office and have her pretty much shower me with potential job opportunities to apply for after just a few minutes of discussion regarding my resume, experience, and expectations. One day after meeting with this person, I had 2 interviews lined up for positions I'm interested in learning more about, so I hope this trend continues (and brings me a job!). She also offered a few suggestions for how to tweak my resume and I couldn't be happier with the results. That being said, I'm not relying solely on someone else to find me a job. It was my decision to give notice at my job, and it's my responsibility to secure a new one. I will work tirelessly to ensure that something comes along.
Seeking out opportunity where it might not be evident. One of the reasons I've been able to turn my finances around is because I'm creative when it comes to solving problems, cutting expenses, and bringing in extra cash. Sure, I'm a hard worker, but I'm also someone who's always thinking outside the box. In order to apply this to the job hunt, I'm keeping an open mind when finding job descriptions that relate to my skill set but not exactly to my current role, and I'm not passing them by. At this point, I'm targeting certain industries but the net I'm casting is quite vast.
Staying positive. I'd be lying if I said I'm not nervous. This is the first time I'm throwing caution to the wind with regards to work (that's in my control). However, I refuse to let negative thoughts or doubts slow me down. I feel like I'm entering the prime of my creative, personal, and professional pursuits, and I'm actually pretty excited about what the future holds for me. My biggest rule throughout this entire process is to keep smiling, even if it's hard to do.

What suggestions/tips do you have for job searching?

I Committed a PF Sin Today: I Quit My Job Without Another One Already Lined Up

2012-05-11T21:24:00.004-04:00

Yes, you read that correctly. Today, I gave notice of my intent to quit my full-time job. And I did so without already having a new position guaranteed.

The crazy part? I haven't felt so at peace for quite some time, and I don't think I'll regret today's decision regardless of what may happen to my finances over the next few months. Fortunately, I already have interviews lined up and I have multiple avenues for additional ones (plus I still have all of my part-time jobs--one of which provides my benefits--and side gigs going so money will still be coming in). Unfortunately, there's no promise that any of these leads will work out in my favor. But I have faith and I'll work my arse off to secure something before my three week notice runs dry.

So what's with the drastic, somewhat irrational, what-virtually-anyone-especially-PF-experts-and-bloggers-would-tell-someone-NOT-to-do choice? Simply put, I've decided that my mental well-being is worth more than any paycheck, especially if said paycheck requires me to feel belittled, be demeaned and made to feel stupid each day. Being micro-managed, ignored, lied to and blamed for other people's mistakes repeatedly has taken its toll on me. Working in an environment where 90% of the employees are absolutely miserable (seriously, it's right out of Office Space) and where morale is low but turnover is high is certainly not the place for me.

Therefore, I choose myself, my health and my peace of mind. The feeling of relief I had when I walked out of my boss' office after negotiating the terms of my departure was worth a million bucks....and then some... because sometimes all the personal finance advice in the world isn't worth a dime if following it means trading in your happiness and sanity.

Lady Lovin': Free Bras, Bubbles, and Beauty Booty

2012-05-10T13:02:00.009-04:00

Sorry gents, today's post is one for my ladies (unless of course you're in the market to hook up your best gal pal or your sweetheart with some great, free products--in which case, read away!).

I'm definitely not too proud to admit that I love getting free stuff. In fact, I love free stuff so much that I'm often seeking out new opportunities to exercise my inner free booty pirate from time to time.

What's a free booty pirate you ask? Well, it's my phrase for how I conquer the world of free products, samples and experiences in a way that ensures me quality goods for the time I spend acquiring them. Simply stated, I'm not talking about getting a 0.000009 ounce tube of Crest toothpaste in the mail after 6-8 weeks. I'm talking about scoring free clothing, lingerie, champagne, beauty supplies, etc.

Last night was a prime example of bringing home a load of free stuff while having an absolute great time with one of my best friends. As I'm no stranger to having multiple side gigs and interesting ways to boost the bottom line, I received an email last week from one of my supervisors about a shopping event taking place in Boston. Basically, she was offering free tickets to anyone who'd be willing to attend the event, take photos at our company's booth, then post them to Facebook and tag the company's page. Sensing that this could quite possibly be the easiest way in recent memory to unleash the free booty pirate, I immediately responded and was confirmed to attend StyleFixx, a glorified shopapalooza event complete with manicures, makeovers, and lots 'o champagne.

Lest you think I threw my budget out the window and went on some gigantic shopping spree, I assure you that I didn't spend a penny. Instead, I brought the following home from my (free to me) event that I would have never in a million years paid for (seriously, paying to shop?!):

A full-sized bottle of Barefoot Wine & Bubbly's Brut Cuvee Champagne
A full-sized bottle of self-bronzer that came with two free Mystic Tan sessions (random!)
Full-sized samples of LUNA bars, Kind bars, peanut butter, PopCorners, Pretzel Crisps and a whole bunch of other goodies I don't remember
Full-sized samples of make-up & perfume, nail files/buffers, hairspray, dry shampoo and nail polish AND.....
A $500 gift card to a leading online athletic wear retailer (yes, you read that correctly!)

Other Free Events (and their associated free booty) I've Attended in the Past:

Shecky's Girls' Night Out
Another event similar to StyleFixx where you shop, drink and pamper yourself. Usually, you have to buy tickets but I typically will reach out to vendors who I know will be there and offer to do press or photos for them in exchange for a vendor pass or two. Once I have the pass, I'm able to enjoy the event just like anyone else and the "work" is actually fun! Takeaways from Shecky's have included full samples of tons of beauty products, food, perfume, DVDs, gift cards, bags, etc. Every event is different so I try to attend as many as I can.

Skinny Cow's Perfect Cup Event

This one is completely free to everyone as long as you register before they run out of tickets. Essentially, by signing up, we attended an event geared around finding the "perfect" bra fit in a fun, ladylike setting. There was a smorgasbord of fabulous hors d'oeuvres, free drinks, free Skinny Cow ice cream and plenty of raffles (I won one that included a SATC II DVD, iTunes gift card and a small cocktail recipe book). The best swag of the night was the *free* coupon for a bra at Macy's. A week after the event, my girlfriends & I hit the mall to retrieve our loot and I walked away with a $60 bra...for free!

Lululemon Post-Boston Marathon Spa Experience
Best post-marathon recovery. aid. ever. After hobbling across the finish line for this year's Boston Marathon, I limped my way to Exhale Mind Body Spa for the best post-race party I've ever witnessed, thanks to one of my friends being a Lululemon Brand Ambassador. In addition to loads of champagne and food, all runners were treated to a free massage by the spa's staff as well as full use of the shower facilities (complete with warm robes and fuzzy slippers!) AND a bag filled with free Lululemon gear! I (somewhat) walked away with a free pair of Lulu capri pants, a tank top and two pairs of their microfiber, seamless boy short underoos. Hot diggity damn! :)

How do you exercise your own inner free booty pirate?? :)

Ireland Trip Financials

2012-05-09T09:55:00.000-04:00

As I mentioned in my previous post, I managed to come under budget for this trip--WAY under budget. Full disclosure that this probably wouldn't have been possible if it weren't for the generosity of my grandmother (she paid for the majority of my meals and one tank of gas!). I think it was her way of thanking me for taking her on this trip and no matter how much I protested, it became quite clear that I should just "shush & let the lady pay." :)

Itemized Cost Breakdown:

Ireland package for two: $2,251.62 (7 nights of lodging in 5 different castles for 2 people, round-trip airfare from Boston to Dublin, rental car for 7 days, all taxes, fees, surcharges and a supplemental package that included a full Irish breakfast each day, individual castle tours and other random discounts)

Thank you, TravelZoo Top 20 Deal for saving me a boatload!! When I priced all of this various components individually for two people and totaled the sum, it would have cost over $4,390 based on the best prices I could find.

Miscellaneous spending while on trip: $855.65 which included:

Rental Car: There was an airport surcharge and I opted to add GPS for each day
Guidebook: I hadn't had time to purchase a book prior to leaving, so I got one in a local bookstore on the first day
Parking: On the first day, we had absolutely no clue where to go in Dublin, so we just pulled into a parking garage and walked around. It was an expensive splurge, but necessary for me to take a break from driving while so jet-lagged!
Hubcap: Holy Guacamole, Batman! :)
Gas: Soooo expensive! Luckily we had a very small, compact car. I shudder to think what it would have been if we'd had a larger car or more people stuffed into it. Plus, my gram covered one tank.
Guinness Tour: Not much to say about this other than it's a must do if you're in Dublin if only for the top floor of the building. It's called 360 degrees of Dublin and it's literally a round room made of nothing but windows. They give you a free pint and you basically revel in the brew and the view.
Cash: Taken out at ATM once before leaving and once while in Dublin.

But here's the best part...

I didn't spend all the $$ I had!!

I did bring home the following:

US Dollars: $200
Euro: $187.94 (US dollars worth)

Plus, I had some cash-back rewards on my credit card, so I put the $33.53 towards this trip's costs. This all brought my grand miscellaneous spending total to $434.18!

Total trip cost to me: $2,685.80

Ireland in Pictures

2012-05-07T10:35:00.000-04:00

Despite all of the driving in Ireland excitement, I'm happy to report that I'm home safe & sound (as well as back on my bike!!)...and that this vacation came in under budget! Tomorrow's post will feature a full breakdown including how I scored a few deals along the way. For today, here's a bit of my photo scrapbook from the trip:


Trinity College in Dublin

The Old Library, Trinity College

Cabra Castle--The First One We Stayed in!

St. Patrick's Cathedral, Dublin

Irish Countryside

Countryside View from Inside an Ancient Castle!

Streets of Dublin

Obligatory Tour of the Guinness Storehouse, Dublin

The Busted Hubcap...hahahaha

Killarney National Park

Kilronan Castle--#2!

Kinnity Castle--#3!

Cliffs of Moher

Random, Beautiful Road in Irish Countryside

When Traveling, Expect the Unexpected

2012-05-03T13:23:00.008-04:00

Instead of the post I had scheduled for today, I'd rather share a few of my recent travel (mis)adventures in an effort to highlight the importance of being prepared for the unexpected while traveling....

For my trip to Greece, I found out a few hours before we were due to board our plane that I had Lyme Disease. Undeterred from our original plan to enjoy every bit of island-hopping bliss, I boarded the plane not feeling so well and armed with what seemed like a year's supply of medication (we're still not sure how I was bitten by a tick, but I'm fairly certain it was during our annual Acadia camping trip a week and a half prior).

While in Mexico, we were randomly pulled over by (and forced to bribe) the Policia. There aren't many words to describe the feeling of standing on the side of the road with a machine gun pointed at you while the man holding it smiles and tells you he will let you go if you give him all your pesos.

Now, while in Ireland, I've experienced the joy--and utter terror--of driving for the first time on what seems to me as the "wrong" side of the road. Yesterday, I was motoring along at about 90 kmh when I came to a sharp curve in the road. No stranger to these crazy types of junctions after 4 days of driving in the Irish countryside under my belt, I continued along, taking the curve like a pro. That was until I came around the corner to find a Mack truck coming at me...in my lane! Needless to say, our little Nissan ended up in the ditch with a marred hubcap while the truck driver continued to barrel on, completely unphased. Considering I'm driving a rented vehicle, some quick thinking was in order. A few hours, plenty of screams, 65 euro, and one new hubcap later, the damage has been repaired in what I hope will be a case of "the rental car company. will. never. know. a. thing." :)

Sharing these stories (in an effort to make you laugh, yes?) highlights the necessity to plan ahead when it comes to traveling. "Expect the unexpected" is hardly enough to express the importance of budgeting for not only the cost of the trip and spending money, but also for travel-induced emergencies. Had I not paid for the trip, saved plenty of spending money, and included a bit of a buffer, who knows what kind of hurt my budget would have been in when returning home. Tonight, I will sleep soundly knowing both my finances and rental car are still in one piece despite yesterday's excitement.

But I do have to say that the Cliffs of Moher were worth every hair-raising second of the drive up to the top. There's really no way to describe my hike other than un-freaking-believeable....

Making Extra Money is as Easy as 1, 2, 3

2012-05-01T05:00:00.000-04:00

A quick Google search of "how to make extra money" will yield over 423,000,000 results. While this is obviously a wealth of information, the problem I've found is that most of the links take you to sites/posts that list a certain number of ways to bring in extra cash. They're detailed and creative, yes. But are they a general mold to help bolster your motivation to jump on the make extra cash bandwagon? Not necessarily.

From my personal experience with bringing in extra cash, it really boils down to the three ideas listed below. Once you put these in place, you'll be well prepared to set course on your own bottom line-boosting adventure. As someone who's had a particularly interesting financial past, I honed the skill of bringing in extra cash first as a necessity and now as a passion.

Make Extra Money

Set realistic expectations. The premise of this post is making extra money--it's not about your full-time work/responsibilities. Therefore, be realistic about your ability to devote the extra time to bringing in more cash. Know your priorities; if they don't align with your wish to boost the bottom line, you may be doomed to fail before you even get started. Once you take the plunge, know your limits. Bringing in extra cash is fantastic but not if it's detrimental to your day job, relationships, and/or sanity.
Think outside the box. The sky is the limit for ways to make extra money. Once you figure out the logistical issues and have a clear vision for your needs, desires, and talents, you can literally find hundreds of ways to make money. Harness your passion and set sail; when you make the commitment to do this, you are the champion of your own success. Knock down those barriers and set yourself up for future financial success. Believe in yourself and don't stop improving your efforts.
Suck it up, Princess. As I mentioned in my post about what running the Boston Marathon taught me about personal finance, this is all about doing it. Making a true effort to make more money requires an intense work ethic. It also requires sacrifice, excellent time management, and a keen sense of self. However, at the end of the day, it's almost always worth it to increase your overall enjoyment (by reducing stress related to money) and your financial security. So, what are you waiting for? Get out there an boost that bottom line today!

What do you do to make extra money? How long have you been doing this?

Ireland or Bust!

2012-04-29T17:30:00.000-04:00

By the time this post publishes, I'll be comfortably seated for my 6-hour jaunt across the Atlantic. After months of planning, it's finally time for my grandmother and I to take our trip to Ireland!! While I'm away, I'll most likely have limited Internet access, but I will try to check in for comments as much as possible. I have a few posts scheduled for while I'm gone, so enjoy and see you next week. I'll be back with a full trip re-cap as well as plenty of pictures...

Here are some of my favorite posts from the past few weeks:

The Irish castles I'll be staying in while on this trip
Daisy over at Add Vodka wrote a great post about Letting Go of Ideals
Head over to From Shopping to Saving and join Erika in the Financial Workout Challenge
Over at The College Investor, I wrote about a College Grad's Guide to the Job Search
Andrea at So Over Debt wrote an awesome post about Solving Financial Problems
Frugal Portland shared some non-financial Ways of Feeling Rich

Have a great week, everyone!

May 2012 Goals

2012-04-27T05:00:00.000-04:00

I'm looking forward to May. Not only is it the first official month after refinancing my mortgage, but it's also the month where I finally pull the trigger and purchase my ticket for FinCon!!! I've been considering doing so for months, so now it's my personal "Dude, get on it" challenge (a la Young House Love). I'm also considering sending in an application to get on stage there...anyone nutty enough to do this with me?!

Financial Goals:

$1,410 back to savings for ReFi costs
$1,130 saved for Kilimanjaro trip
$800 into retirement accounts
$500 into regular savings
$246 for annual homeowner's insurance
$200 extra to student loans
$200 extra to mortgage
$149 for FinCon ticket!!! :)
Limit variable spending to $500

Household Goals:

Complete master bath back splash project
Plant back porch garden
Fill planters for front porch/entryway
Finish concrete walkway demo/re-grading

Personal Goals:

Run a 24-hour, 200-mile relay w/ 11 friends
Get back to biking to work
Continue building business project portfolio
Complete DIY projects at BF's condo:

Paint dining room & living room trim
Make dining room curtains
Style dining & living rooms

What are your May goals?

April 2012 Re-cap

2012-04-26T05:00:00.000-04:00

April turned out to be quite a crazy month. While I was sidetracked for a while with my post-Boston Marathon injury, I still managed to kick most of my goals' bootays. Highlights for this month include finally closing on my mortgage refinancing, securing a few more writing gigs, meeting my mini challenge of only going out to eat 5 times or less for the entire month, and fully pre-paying my Kilimanjaro adventure.

Instead of pulling the $1,300 for the safari extension and trip insurance from my savings, I managed to squeeze it into the monthly budget, which is why you'll see a drastic reduction in the amount I sent to savings. While it still balances itself out in the end (I actually come out ahead of my original savings projections), recording it as I have below made it much easier to track everything in my Excel workbook. Ahh, the joys of being a complete PF nerd :)

I also had to pull the money from savings to cover my closing costs. The good thing about this is that the $4K I transferred includes May's mortgage payment AND I will break even with the closing costs in less than 6 months thanks to the $350/month I'll be saving now. I've laid out a complete plan to have every penny of this money put back into savings by November, in addition to the regular savings I'll be contributing. This may have an impact on my 2012 goal to buy a new camera, but I'm determined to simply bring in more income to buy that camera before leaving for Africa in October!!! We'll see what happens....

Financial Goals:

$800 into retirement accounts CHECK
$700 saved for Kilimanjaro trip Modified--paid $1,318 for safari and trip insurance
$540 into regular savings Modified--Saved $375
$400 saved for Ireland trip CHECK
$200 extra to student loans CHECK
$200 extra to mortgage CHECK
Limit variable spending to $450 CHECK
Limit eating out to 5 meals or less for entire month CHECK!!!

Household Goals:

Complete master bath back splash project Fail
Re-grout guest bath shower CHECK
Clean both bathroom exhaust fans CHECK
Service guest bath jacuzzi tub CHECK
Clean range hood/exhaust fan CHECK

Personal Goals:

Complete the Boston Marathon! CHECK
Continue biking to work Fail
Continue building business project portfolio CHECK
Complete DIY projects at BF's condo:

Paint dining room & living room trim Fail
Install custom shelving unit in living room CHECK
Paint dining room chairs CHECK
Purchase dining room table and rug CHECK
Make dining room curtains On hold--couldn't find any fabric I liked in the stores so will be ordering it online when I return from Ireland

How was your April?

Miscellaneous Updates: 4/25/12

2012-04-25T05:29:00.000-04:00

I leave for Ireland in 4 days, and I have done no planning whatsoever for the trip...eek! While this is certainly a great "problem" to have, I really need to kick my butt into overdrive so that I'm not aimlessly driving my grandmother around the countryside without a clue where we're headed (all the while screaming as I try to figure out how to drive on the other side of the road..haha!).

Budget: I'm happy to report that I've met or exceeded most of my monthly goals, but I'll save the highlights for my monthly post. Additionally, I closed on my refinancing yesterday!!! The gamble I took a mere month and a half ago was so absolutely worth it as I'm now set to save nearly $350/month on my mortgage. After I return from my trip, I'll be re-working the budget to fit in this fabulous new savings.

Fitness: Still no cardio for this injured lady. Instead, I've been focusing on pilates and core work. That and lots of foam rolling/IT band stretches. My kitties enjoy giving me puzzled looks as I contort my body in weird ways all in the name of getting through this injury.

Home Improvements: This is where I'm falling short of my goals this month as my busted knee severely limited my mobility for about a week after the marathon. However, now that I'm back in action, I hope to knock out as many of these in my typical last-minute fashion. Grouting a shower while cleaning a range hood and building a shelving unit all at the same time (for two different houses)?? But of course! :p

Blogging: I've decided to add more structure to my blogging efforts because I've been feeling spread a bit thin lately. I'm constantly trying to fit in writing here, writing for my two other blogs, guest posting, staff writing, ghost writing, commenting on other blogs, keeping up with Yakezie, tweeting, and generally blowing up the blogosphere as much as possible. The problem is that this isn't a realistic workload on top of school and my "real" work. I'm doing all of this half-assed sometimes and it's driving me crazy. My solution is to schedule these various efforts. This will mean less day-to-day interaction sometimes, but I'm hopeful that maintaining some semblance of sanity will be more helpful overall.

Business: Still rolling along with my business portfolio-building efforts. I'm also in the works to establish a side income stream related to all things domestic, which will be a great way to bring in $$ right away as well as expand my client network. Right now, I'm working through the LLC and insurance/bonding issues. I have a fantastic partner* for this new phase of development, and I am so excited about our ability to knock this thing out of the park! *partner is used loosely as we're going to structure in a way where we both own our respective businesses but work together for marketing, accounting, tax, and general growth efforts...

What's going on in your life?

Weekly Spending, April 15 - 21

2012-04-25T05:07:00.000-04:00

The Good: I used a gift card for my groceries this week; $123 worth of groceries that were free to me (which will last into May and have fully stocked my pantry and freezer). I'm also still going strong with my dining out challenge--almost to the end of the month and I've gone out only 4 times!

The Bad: I've pre-paid the entire balance for my Kilimanjaro trip, so that $$ had to come out of savings. Luckily, I already have a plan to put it all back within the next four months.

The Ugly: Gas...ugh. I know I shouldn't complain considering it's not as bad as some people have it and I'll be back on my bike as soon as possible, but I sometimes have heart palpitations when filling up...haha.

-$15 Lunch Out
-$35.05 Gas

No Spend Day!

-$3 Parking

No Spend Day!

-$15.99 Lunch Out
-$8.68 Target

Spending total: $77.72

Signs That You Have a Spending Problem

2012-04-24T07:38:00.000-04:00

It's no secret that I used to be absolutely horrible with my money. I've mentioned before how I've done a financial 180, and I've highlighted some of the ridiculous excuses about money that I used to make. What I haven't discussed is how I finally learned that I had a spending problem.

For whatever reason, carrying around tens of thousands of dollars in credit card debt didn't seem to phase me for quite some time. Like a Sherpa schleps packs up the mountain, I crawled my way through my early 20s with multiple credit balances and a complete lack of financial knowledge tethered to my back. Effectively, I ignored all of the following signs of a serious spending problem. That is, until I finally gave myself a kick in the pants and got my financial act together for good...

You Might Have a Spending Problem (as I Once Did) if:

You're spending more than you bring in. This is one of the easiest ways to gauge your financial health and decision making habits. If you're spending more than you're bringing in, you're creating a monthly deficit that must be paid. Often, that deficit is paid via savings or credit. If you suck your e-fund dry on non-emergencies, what will you do when the real stuff strikes?!
You opt into paperless statements to avoid seeing how thick your credit card statements are. Helping the environment is one thing. But opting in to paperless in order to avoid having to deal with your 10 page credit card statement is just another way of shirking financial responsibility. Consider this: Your statement wouldn't be so large if you weren't spending so much!
You ignore your mail (or shred it without opening). I was certainly guilty of both of these. I stuck my head in the sand by not dealing with my mail, and I chose to stay oblivious to my actual debt totals for a very long time. The thing is, the joke was on me because I ended up paying thousands of dollars in interest on mindless purchases.
You have a closet full of clothing, shoes, and accessories that still have tags. Do a quick scan of your closet(s)....Do you see multiple tags sticking out? Unless those items were free, there's no reason to see so many brand-new, never been worn items (but if you scored a closet full of free clothes, please email me your secret!!).
Your significant other, friends, or family members roll their eyes when you tell them about your latest purchases. Non-verbal cues are powerful messages. Even if it's not an eye roll, a raise of the eyebrows or a smirk can say indicate the same disdain for an over-spending tendency. Worse yet is if you're hiding your purchases for fear of being judged and/or starting yet another argument about how you spend your money.
You convince yourself that you're "saving money." This was another one of my weaknesses. I could easily justify buying something if it was on sale, regardless of my actual need for the item. Another version of this behavior is buying things in bulk. If you're not going to use all of the items or honestly have no need for them, why are you spending your money?? For me, overcoming this nasty habit was as simple as asking myself that very question each time I went to purchase something.
You have no idea how much you've spent. If you're spending mindlessly or emotionally, chances are you have no clue how much you're actually spending. My receipts often went right into the bag with the items, only to be tossed out immediately after I emptied the bag at home. Knowing how much you spend is paramount to gaining control of your finances.
You're surprised by your receipt totals. If you finally bring yourself to see how much you've spent and are shocked by the total or can't remember an item that's on the receipt, it's a sign that you might be spending too much.
You're on a first-name basis with local shops, retailers, or the FedEx man. Having "the usual" might be OK for a morning coffee or weekend brunch order, but the other instances listed all sound the alarm bells for me now.
You let your emotions rule your money. If you find yourself shopping away anger, guilt, sadness, etc, take a moment to take stock of your emotional tank. If it's running on empty, step out of the mall and instead talk to a friend, go for a walk, or play with your pet. I let my emotions dictate my spending for years until I finally understood that it really wasn't the items I shopped for that I wanted--it was relief from the negative emotions and stress I was feeling.
You have spending hangovers. Have you ever gone on a shopping binge and then literally felt sick to your stomach after realizing how much you spent or that you couldn't actually afford what you purchased? I certainly have!
You "forget" to pay your bills. If you're not automating at least the minimum payment each month, what is the real reason you're not paying your bills? Perhaps you're stretched to the limit. In that case, you definitely shouldn't be spending anymore. If you still have money coming in to pay your bills, perhaps you're paralyzed by your debt (I was for a while after I finally tallied it up). In that situation, reach out to someone who you trust for help, educate yourself about all things personal finance, and accept that you have some work to do. Doing so will give you control of your finances and your future.

Do any of these apply to your situation? How do you keep your spending under control?

Minimize the Pain at the Pump: 27 Ways to Save on Gas

2012-04-23T12:03:00.002-04:00

Given my official status as an injured runner, I've had to make some significant changes to my daily commute. Gone are the blissful bike commutes I've enjoyed for nearly the past year; replaced with hair-rasing jaunts on the highway with thousands of disgruntled New Englanders. I'm sure you can sense how much I'm loving this temporary change!

In addition to the joyful experience of gridlock traffic has come an increase in my gas bill. Yesterday, I nearly had a heart attack when I pulled into the station and saw the price for regular unleaded is now $4.10 (but I do realize it's even higher in other areas). In an effort to still keep my spending under control while my knee fully heals, I've taken to researching some of the best ways to cut down on your gas bill. Here's the best of what I've been able to find:

Save Gas Before You Leave Home

Size isn't everything. Fuel efficiency is not a time to compare who's SUV is bigger--bigger car often means bigger gas bill. Consider a smaller, compact car when renting vehicles or consider purchasing a hybrid for your next car.
Properly inflate your tires. Want an increase of 3.3% or more for fuel efficiency? Make sure to keep your tires inflated to the manufacturer's specifications as much as possible. Many gas stations now offer automatic air pumps that will inflate your tires to a pre-determined amount typed in before operation. One final note on this topic is to try to inflate your tires first thing (when they are cold) instead of driving for miles and miles.
Clean out your car. If you don't need it for an emergency, you shouldn't be carrying it around with you. Clean out the trunk, the backseat, etc. Doing so will lessen the load for your car and can have dramatic effects on your gas mileage!
Don't be a drag. Unless you're going to be biking, skiing, or kayaking that day, you shouldn't drive around with a rack on your car for everyday commuting. The drag created by your roof rack can cut your gas mileage upwards of 15%! Additionally, you should keep your sun roof and windows closed as much as possible while on the highway to avoid excess drag.
Have a checklist. Going away for the day or weekend? Make sure to have a checklist before packing up to avoid forgetting vital items (such as a camera, etc.). Ensuring you have everything you need prior to pulling out of the driveway will avoid extra, unnecessary trips that will cost you extra gas.
Clear the air. Don't forget to maintain the quality of your air filter. A good time to check this is when you're having an oil change. I personally check mine once a quarter, and I've used a stiff-bristled brush to clean it between actual replacements. Either way, you're sure to increase gas mileage by properly taking care of this easily-overlooked item.
Replace the spark plugs. As with the air filter, make sure to replace your spark plugs as necessary.
Check the oil. It's crucial to use the proper type of oil for your car. Using the wrong type can increase the viscosity in your engine, which leads to higher temps and more gas used.
Enjoy the shade. Utilize a windshield shade to decrease the temperature in your car on hot days so you're not cranking the A/C the moment you get in. Also, make sure to park in the shade whenever possible. Did you know that small amounts of gas evaporate from your tank on hot, sunny days? Minimize this by cozying up to your favorite tree or parking in the garage.
Plan your route. Double-up on errands, know where construction is that may slow you down, find the easiest route from point A to point B. Planning your route helps to cut down on driving time and vehicle wear & tear and doing both saves gas.
Timing is everything. Download a traffic app, pay attention to traffic websites, and/or get to know the heavy-traveled times in your area. Avoiding rush hour means you're not stopping & going constantly, nor are you burning unnecessary gas while sitting on a gridlocked highway.
Use the buddy system. If you haven't done so already, download the GasBuddy app. Doing so will save you hundreds of dollars on gas by showing you the cheapest stations in your area, on your route, etc. It will also give you historical data of your trips so you can plan more efficiently.
Walk, bike, take public transportation, and/or carpool more. Not driving means not using gas which means putting more money back in your pocket. Minimize your drive time whenever possible!

Save Gas While at the Station

Fill'er up. Make sure to fill up your tank each time you have to visit the station. Save time and money by filling up once instead of making multiple trips for each $10 or $20 you put in the tank.
Don't top it off. When you hear that first "click" and the pump stops, that means it's time to hang it up. There's no need to top off your tank--especially when you consider that doing so is bad for the environment, your gas tank, and your wallet (most of that extra fuel just sloshes out as you drive away anyway).
A quarter is the limit. Reduce wear & tear of your car's fuel pump by not traveling too far when the tank reach 1/4 full. This is especially important in cold weather as the temperature changes can cause condensation in your fuel system, which can lead to very costly repairs. This is one instance where it certainly pays to play it safe.
Tighten up. Minimize evaporation and fuel loss by ensuring your gas cap is always nice & tight.
Become a member. Seek out gas stations or grocery stores in your area that offer rewards programs. My local grocery store gives me gas points each time I shop, and I've often accumulated enough to save 20-40 cents/gallon.
Lower octane = higher savings. Unless you're driving a BMW, there's really no need to pay for premium gas. The lower the octane, the higher your savings--without engine damage!

Save Gas While Driving

Slow & steady wins the race. If you routinely speed along, prepare to pay for more gas more often. You can improve your gas mileage by over 20% just by slowing down a mere 10mph.
Lay off the brakes. This is one of my favorites because I can't for the life of me understand why people will hit the brakes instead of taking their foot off the accelerator in order to slow down. Stop & go traffic is one thing, but hitting your brakes randomly while on the highway when there's nobody in front of you? It will kill your gas mileage, cause damage to your vehicle, and cost you more money.
Cruise along. Utilize cruise control as much as possible but remember to turn it off when traveling on hilly roads because the system will still try to maintain the set speed and will suck gas--and money out of your wallet--an exponential speeds.
Have a permanent no idle zone. Idling is bad, no matter how you look at it. Whenever possible, shift into neutral or turn off your car. That includes when you're cruising through the drive-thru. Yes, you may spend a minute or two longer to park your car and walk inside, but you'll be getting to stretch your legs and make your gas money last longer.
Skip the A/C. Unless you're on the highway, you should try very hard not to use your A/C. Obviously this is tough for those who live in the South, but it's suggested that when you're traveling 40mph or less, you should open your windows instead because the drag created uses far less fuel than the A/C would.
Shift it right. One rule of thumb for the manual transmission folks out there is to shift up early and shift down late.
Don't tailgate. There's no reason to exercise your inner Masshole--please back off of that car's bumper, at least in an effort to avoid hard braking which will eat up more gas than gradual stops and controlled driving habits!
Avoid the jack-rabbit start. Your daily commute isn't the time to pretend you're in a NASCAR race. Clamping down on the gas pedal when the light turns green floods your engine with excess gas, which can't be used properly, which in turn means additional fill-ups. Save the drag racing for the go-kart racing; it's much more economically suited in that arena!

What are some of your tips for saving money on gas?

Personal Finance 101: Setting Financial Goals

2012-04-20T16:04:00.001-04:00

Based on the popularity of my Confessions of a PF Blogger series, I've decided to kick off another set of blog posts focused on one topic. This series, Personal Finance 101, will provide a road map for how to best manage your finances in general terms. While these posts will provide a wealth of information on various personal finance topics, don't forget that the best course of action is to tailor the information to what fits your current needs/situation.

Without further adieu, here's the first installment; Setting Financial Goals....

Why You Should Set Financial Goals
Setting financial goals is one of the easiest ways to hold yourself accountable, take control of your money, and motivate yourself. As I've mentioned in a previous post about setting financial goals, doing so affords you the opportunity to take stock of your current action plan and keep moving forward in a positive manner. When it comes to setting yourself up for future financial success, setting goals is the first step in building a strong financial foundation.

How to Set Financial Goals
Whether it's blogging about them, emailing them to yourself, or writing them down on a piece of paper, there are many ways to tangibly set financial goals. But what about how to actually set them in the first place? The following is a checklist for how you can define financial goals in a way that will best set yourself up for success in meeting them:

Create goals that matter to you. If your goals don't matter to you or don't fit into your life's plans, you're basically setting yourself up for failure. If you don't need a car, you probably don't need a goal that's dedicated to saving a car fund either. Additionally, if you plan to get married, having a wedding fund obviously makes sense. Just make sure to have goals that are focused on retirement and having an emergency fund as those are key pieces to becoming financially secure for everyone.
Make sure your goals are specific and realistic. The best goals that are easiest to meet are those that matter to you and that are specific AND realistic. If you make $50K/year, it's not realistic that you'll save $100K in one year. Just as importantly, if you're goal is a general "save more money" focus, it will be harder to reach than if you set a goal such as "save $5K in an emergency fund this year."
Record your goals. As mentioned above, record those goals! Write them, blog them, email them, sing about them to your family and friends. Whatever your method for recording your financial goals, make sure to keep them in a place where you can easily refer to them. Bonus points in the realm of accountability if you share your goals with others.
Determine the cost of your goals. How much will you need to save or cut back to reach your goal? If you want a new camera, figure out which type you'll be saving for and set your goal for its total cost. If your goal is to take a vacation next year, figure out your destination and how much it will cost for you to get there, enjoy yourself, and get home with money still in the bank (and no balances on the credit cards!). When you record your goals, make sure to include these figures.
Set a target date. This is part of setting specific goals. Going back to the camera idea, say your goal was to save $900 for the Cannon Rebel T3i and accessories. This is a great start to list the item and its cost, but what about when you want to save the $$ by? This will greatly impact the nature of your goal: If you want to save the $900 over the course of 5 years, that's a lot less you'll need to save monthly than if you wanted to save the same amount in 1 year.
Create a timeline. Timelines are a great way to chart your progress and give yourself mini check-points for reaching your goal. They can also help you break down large goals into more manageable pieces. For instance, if you want to save $10K in your emergency fund in the next 4 years, creating a timeline for saving $2,500 each year for the next 4 makes it seem like less of a burden. Little by little, your savings will grow and you'll give yourself a greater likelihood of reaching the goal because it's easier to manage.
Start today. There's no time like the present to get to work on setting/meeting your financial goals! Each minute you spend doing something else or not focusing on your goals is a minute towards success that is wasted.
Hold yourself accountable. Financial goals are not a set-it-and-forget-it entity. Make sure to revisit your goals regularly so you can check your progress, re-calibrate whenever necessary, and keep moving forward.
Expect the unexpected. Life is not perfect much like setting/reaching financial goals isn't. There will be setbacks; there will be unexpected expenses that derail your progress from time to time. But when Murphy inevitably strikes and tries to keep you down, remember to get up, brush yourself off, and get right back to work. Your financial goals are the ticket to your future financial independence and that's one journey you won't want to miss out on!

How do you set your financial goals?

Miscellaneous Updates: Stop Making Excuses Edition

2012-04-19T09:23:00.002-04:00

Instead of this week's round of miscellaneous updates, I'd like to take a moment to share some of the thoughts I've had while reading other people's blogs throughout the past few months. While some may consider this post to be one huge rant or hugely judgmental, I can't discount the idea of using it as a medium to encourage people to stop making excuses when it comes to their finances.

I've written about this in the past with my own personal call to action in my excuses aren't valid anymore post as well as my post from earlier this month about how excuses and saving money don't mix, but now I want to make one thing as crystal clear as possible: You own your financial destiny, not anyone else. Yes, there are circumstances out of our control that throw wrenches into our plans and there are speed bumps along the way as we cruise from a state of fiscal disaster to financial security. But nobody can take away your drive, ambition, and hard work--unless you let them.

Stop Making Excuses

If you're not making enough money to make ends meet or live the life you feel you deserve, find a way to bring in more. There are thousands of ways to make extra money--find one or two that work for you and get on it already. Every minute you waste debating or lamenting your situation is a minute of potential income opportunity wasted. There's no time like the present to start making more money in an effort to better your financial situation.
If you're in a dead-end job or one that you hate, know that it's temporary. Do your job to the best of your ability but focus your efforts on finding a new position. Send out resumes, network your arse, off, stalk online job boards, and pound the pavement. This is YOUR life, live it as you see fit.
If you're spending more than you bring in, there's no way to sugar-coat it: you must cut back. Yesterday. Living within your means is the only guaranteed ticket to financial security.
If you've typically shared your spending on your blog in a detailed manner but suddenly begin to estimate the numbers or leave updates out entirely, you're not fooling anyone. Regular readers will know you're hiding something and will see through your endless rationalizations. But here's the thing: We're not living your life, so it doesn't matter what we think. The true issue is why you're hiding what you've spent. Consider this before fudging your weekly reports--there could be something that needs to be re-evaluated.
If you change the course of your financial decisions, don't combine it with a slew of excuses. So you decided to make a home improvement during the holidays instead of giving to charity--it's your money and your choice. But when you tack on 10+ excuses about why you absolutely had to have said improvement, perhaps the real reason you're doing so is because you're feeling guilty and fear your readers will fault you. Investigate these feelings before jumping on the excuse bandwagon because there could be an underlying situation that you need to attend to that's driving your super-spending tendency at the time .
If you failed at meeting a monthly or annual goal, it's OK! Nobody is perfect and nobody meets all of their goals 100% of the time. Instead of rationalizing away the lack of progress, how about amending your goals to be specific, attainable, and realistic for your current situation? Most of the time, your readers are there to encourage you. If you've hit a wall, reach out to us--we're always happy to lend a supportive ear as well as some advice.

What are some of the excuses you've noticed other bloggers making? What are some of the excuses you've been making?

Weekly Spending, April 8 - 14

2012-04-19T09:21:00.000-04:00

The Good: I'm over half way through the month, and I've gone out to eat 2 times, so I'm still in line to meet my mini challenge of going out no more than 5 times in April. Additionally, this was a glorious week of not much spending to make up for last week's influx.

The Bad: For the first time in a long time, I forgot how I spent some of my money. It's the $7 you see below for "miscellaneous"--I can't for the life of me remember how I spent it!!

The Ugly: Thanks to my marathon-induced knee injury, I can't bike to work right now. That means an increase in gas expense. It's honestly killing me to have to drive to/from work with this gorgeous weather, but I will keep doing so until I'm sure that my knee is 100% healed!!

No Spend Day!

-$33 Girls' Night Out
-$7 Miscellaneous

No Spend Day!

Spending total: $40

What Running 26.2 Miles Can Teach You About Personal Finance

2012-04-17T14:05:00.001-04:00

Yesterday, I somehow managed to complete the most excruciating marathon in my 19 years of running. With temperatures of 89+ degrees on the course and a record-breaking 92 degrees in the city upon finishing, it's still all a bit surreal to me. Unfortunately, I further injured my knee so I'm looking at a few weeks of physical therapy, but I'm so happy and honored to have finished the race.

As I was thinking about the day I'd just endured this morning while checking email, I began to find direct correlations between running 26.2 miles and personal finance. Here are some of the more poignant examples of how marathoning overlaps with the principles of sound financial management:

It's an individual accomplishment. Even if you're running the marathon in honor of someone or running with a friend, you're running by yourself; it's a personal accomplishment to finish a marathon just as much as finance is a personal endeavor. It's only you that can make your body continue to move forward towards the finish line, much like it's only you that can choose to take control of your finances in a positive manner.
You can always dig deeper. Just when I thought my knee was going to give out on me permanently yesterday, I stumbled across a medical tent at mile 11. Once I had my knee wrapped, I continued on in pursuit of the finish line despite some pretty agonizing pain. This type of fortitude can be found when it comes to reaching your financial goals--you can always cut back or earn more; you can always spend less. What it comes down to is successfully managing the perceived pain of doing so.
Expect the unexpected. I didn't expect my knee to give out on me much like some other runners didn't expect to be taken to the hospital mid-run. When you set out on a 26.2 mile jaunt, you really have no idea what can happen. The same stands true in the world of personal finance, which is why so many of us advocate heavily for having an emergency fund. Even if you have a stable job today, realistically, we're all one major illness or accident away from potential financial ruin tomorrow. This is why I'm careful to balance my spending and saving, I make sure to have adequate insurance, and I maintain a healthy lifestyle.
Give up your pride. It was ugly out there yesterday and I'm not just talking about the heat. Vomiting, dry heaving, blood, sweat, and tears--I saw it all. Marathon day is not about maintaining your pride as much as it's about reaching your goal. With your finances, you may have to give up at least a bit of your pride in order to not keep up with the Jones'. While living a lifestyle you can actually afford may not be the most glamorous choice, giving up the vain pride of materialism can do wonders for your bottom line.
Suck it up, Princess. Three words here: Just. Do. It.
It's about the journey, not just the destination. In running and financial management, there are going to be peaks and valleys; setbacks and triumphs. What's important is taking the time to let it all soak in so you can learn from each experience whether it be positive or negative. If I had given up a mere 8 years ago today and resigned myself to a life of debt, poverty, and financial illiteracy, I may have never known what it's like to be a financially independent woman.

What are some of your hobbies/interests/passions that overlap with financial wisdom? Please share!

Bad Financial Habits That I've Kicked to the Curb

2012-04-13T13:26:00.004-04:00

Over the course of the past 8 years, I've made a considerable effort to change my finances. From digging out of credit card debt to finally kicking my bum into gear about saving, I've essentially done a 180 from the credit card-crazed overspender I used to be. While it wasn't easy and there were definitely times I had setbacks and/or wanted to quit moving forward, I can't stress enough how much the hard work has been completely worth it. Here are some of the bad financial habits I've kicked to the curb in an effort to gain financial independence:

Having debt other than student loans and mortgages. For years, I carried thousands of dollars of debt around without any serious plan to pay it off. Thankfully, I always paid the minimum on my cards so my credit score remained unscathed, but I never really realized the impact my debt was having on my future. Once I had a handle on how important it is to be financially secure, the debt melted away. I'm continuously working hard to keep it that way.
Not investing in my future. I was always making excuses for why I couldn't fund a savings account or Roth IRA. Some of my common rebuttals (against myself...ugh) were, "I don't make enough," "I'll save once I get this credit card paid off," and "I. just. don't. want. to." Thank you, financial epiphany for slapping my eyes open for me! Now I make sure to max out my Roth and contribute regularly to my 403b and long-term savings accounts.
Impulse shopping. I was a huge fan of the retail therapy concept. Had a bad day? Head to the mall! See a cute outfit in a magazine? Mindlessly charge it! It took years to break this habit and I still struggle sometimes. But now I've seen the greener grass on the other side of the pasture and I'll do anything to not go back!
Not opening my mail. I didn't get the Princess of Interest moniker for nothing--I literally stuck my head in the sand for far too long and ignored of the piles of credit card statements and bills I was receiving. I also used to just throw things in the trash unopened, which could have put me in quite the identity theft-ridden pickle. Now I make sure to sort, attend to, and shred my mail a few times each week so that I'm not faced with pile overload.
Not asking for a raise when I deserve one. For me, this was about learning my own worth. I had to stop being other people's doormat and start commanding an adequate price for my skills, talents, and expertise. I'm finally comfortable negotiating salaries and benefits, and I used this strength to negotiate my most recent raise.
Having no clue what a budget is. I also used to think of budget as a four-letter word that was poison in my mouth. I spent recklessly, aimlessly, and foolishly--all while having no clue what money was coming in when. While my system now may seem like overload to some, I keep myself on a "short leash" when it comes to my budget so I can keep moving forward with my goals. Tracking every penny going out and assigning every penny coming in works for me but it may not work for others. The key here is identifying whatever system works for you and actually using it.
Shirking a frugal lifestyle. Believe or not, I used to think being frugal was stupid (I can't believe I just typed that). I used to live a lavish lifestyle but I was hiding that I couldn't really afford it! Now I seek out discounts, use coupons, frequent clearance bins, and pride myself on getting a great deal.
Only focusing on myself. In my credit card debt days of disbelief, I was quite selfish with my money. Now, I focus my efforts on my goals as well as doing things for others. Some of my bigger accomplishments in this realm have been my annual Operation Giving Back and my birthdays where I've done Random Acts of Kindness for each year I've been alive on my birthday (ie. 30 on my 30th, etc.).

What are some bad financial habits that you've kicked to the curb??

Miscellaneous Updates: 4/11/12

2012-04-11T13:04:00.002-04:00

Considering that sometimes it rains but sometimes it pours, the last week has certainly been more of the latter. However, I refuse to let stress or negativity bring me down (even if I did respond to it in yesterday's post...ugh), so it's on to bigger & better things with this update!

Marathon Training: The Boston Marathon is 5. days. away. Oy! I'm still struggling with a bit of lower back pain and an ailing IT band, but I'm determined to finish the race and wear that medal around my neck with pride. While it certainly won't be my fastest time, it should be a great experience considering it's in my back yard, my friends will be out there cheering me on, and they're calling for beautiful weather. Wish me luck!

Travel: I'm moving along with the Ireland planning, although I'm still quite nervous about driving on the other side of the road. Have any of you experienced this before? Do you have any tips? Other than that, I'm looking into an option to add a small weekend trip to Colorado in September. Read on to find out where I think I'll be headed. :)

Home Improvements: I've stalled a bit with the projects for my BF's apartment, but I am moving along with my awesome to-do list for this month. I've already completed the bathroom exhaust fan projects, the jacuzzi tub servicing, and the range hood cleaning. Next up is the back splash and grouting. I think this will make a great project for this weekend in between heading to the marathon expo and resting up for the big run.

Budget: A week and half into the month, and I haven't gone out to eat yet! This is a huge accomplishment because I do tend to have a weakness when it comes to dining out. I had thought I'd already used one of my five for my mini challenge this month, but then I realized the last time I went out to eat was March 31st, which is in a different month! My bigger budget goal for this month is to keep the miscellaneous spending minimized because now that the nice spring weather is upon us, I'm really feeling the need to get my gardening on which means spending the moolah. I hope to hold out until May when I can easily fit those expenses into the monthly budget.

Blogging: It's been a bit of a wild week this week in terms of blogging. As you all saw yesterday, I finally broke down and responded to an email bully I've been dealing with for the past few weeks. While I typically blow this sort of stuff off because I've had my fair share of run-ins with people who don't agree with me/my writing, I couldn't stand the stress of carrying the frustration around with me anymore. Before I ramble on unnecessarily, I just have to say THANK YOU for your supportive words & comments. I can't express how much your kind words have meant to me! On an unrelated note, I think I'm finally going to pull the trigger and book my trip to FinCon '12 in September (how's that for a complete 180 in the same paragraph?!)!!! I've been considering this for a while, and I've decided that I'd really like to see where I can take this blog in terms of extending my reach/audience. Having the opportunity to network with some pretty incredible bloggers at FinCon will be just what the doctor ordered in terms of pulling me out of this slump and kick-starting a renewed effort to show this little blog of mine some love.

What's going on in your life?

Weekly Spending, April 1 - 7

2012-04-11T12:40:00.001-04:00

So far, so good! April is shaping up to be a minimal spend month thanks to my mini challenge of not going out to eat more than 5 times this month. Hopefully, I can stick to that!

No Spend Day!

-$25 Charity donation
-$15 PT appt. co-pay

-$39.80 Groceries

No Spend Day!

-$25 Gas

No Spend Day!

Spending total: $104.80

I'm Not the Preacher Man

2012-04-10T14:46:00.006-04:00

**If you're a first-time visitor to my blog, welcome! Please note that this post is certainly not representative of my normal content, nor will it be a regular addition to this community.**

Today's post is going to break from the normal mold of inspirational and/or informative posts that I typically like to write. It's also going to be short as I feel the need to lay out a simple message in response to some (quite nasty) emails I've received recently....

Borrowing some words from Lynyrd Skynyrd pretty much sums it up:

I'm not the preacher man.
I'm not the preacher man.
I'm not the preacher man.

I began this blog as a way to chronicle my debt pay-off journey and to stay accountable with my finances. I never planned to blog as much as I do today, make money from blogging, or even make a concerted effort to grow this thing. However, slowly and surely, some of those things have happened over the past 2 years because I love blogging, I love the people I've connected with through this community, and I love the thought of inspiring others by sharing my messed up financial past.

I am not a preacher. I am not a "holier than thou" person who extolls financial advice because I think of myself as "better than anyone else." I do not think that "I have all the answers," and I certainly don't claim to be a "finance super-star that makes others feel $hitty about themselves." When I was in debt up to my ears and begging for any way out, I turned to reading to help educate myself. I also found some amazing PF blogs that helped me get my head on straight which led to me beginning my own.

Articles like the ones I write are what helped me build a strong financial foundation (combined with my own hard work) and I share what I do here only in an effort to help educate others. I do not write this blog, share my goals, or chart my progress in a public way "just to show off," and I truly don't believe that sharing what I'm sharing makes me "just suck as a person."

To anyone who may have viewed me as preachy in the past, you have my sincere apologies. To anyone who has some constructive criticism for how I can improve this blog, please do share. Telling me to "crawl back into the $hitty car" I once had to live in is not exactly what I consider to be constructive....

(Everything I've written here in quotations has been emailed to me over the past few weeks and I share this post not to garner unnecessary attention/sympathy but to hopefully correct any misrepresentation of my efforts for why I write here)

Tax Audit Red Flags: Don't Make a Silly, Last-Minute Mistake!

2012-04-09T12:06:00.003-04:00

The IRS estimates that 20-25% of all tax payers wait until the final two weeks to file their tax returns each year. If you're one of these people, you need to make sure to take your time in an effort to avoid costly last-minute mistakes.

The three most common last-minute filing mistakes are math errors, incorrect SSNs, and failure to date (and sometimes sign!) the return. Most of the time, these errors will result in a delay of your return and additional paperwork. But what if you make an even worse mistake? What if your mistake leads to the dreaded audit?? Below are some of the most common "red flags" when it comes to tax audits.

Tax Audit Red Flags

Carelessness. Forgetting to sign your return. Forgetting to date your return. Writing/typing the incorrect Social Security number. Believe it or not, these are common mistakes! And they can be avoided...simply by. taking. your. time.
Math errors. As with the careless errors above, math errors can seem simple enough but can equate to one heck of a headache if they trigger an audit. Considering this is perhaps the most common source of audit-inducing fodder, make sure to double and triple check those numbers. If you rely on tax prep software? Sure, those numbers are crunched for you but the machine has no idea if you're actually typing in the correct numbers to begin with. Slow down your efforts just enough to ensure you're entering the correct data and you can save yourself weeks or months of wasted time in the land of audits.
Hand-writing your return. Unfortunately, there are no bonus points awarded for going "old school" when it comes to filing your tax return. In this tech-driven age we live in, it's no longer widely accepted to hand-write your return. While this is one of the smaller audit triggers, why give the IRS any reason to suspect your return? Even if you don't want to pay for tax software, you can still download forms that can be filled out on & printed from the computer. This is an easy way to prevent an audit!!
Giving, giving, and giving some more. It's certainly a great to give back to charity whenever possible, but it's not acceptable to fudge, inflate, or fabricate those numbers when it comes time to do your taxes. Even if you're simply donating old clothing to Goodwill, if you claim your donation to be over $250 in value, you best be prepared to have an itemized receipt showing the figure (bonus points for also including photos, which I always have just in case). The IRS will look at your donation-to-income ratio; claiming to give away half of your income when you make less than $50K is a sure-fire way to raise the auditing eyebrows.
Filing a business return. If you are a sole proprietor/small business owner, be prepared for increased tax scrutiny. Expense to income ratios are reviewed with fine-tooth combs, businesses are questioned as being merely hobbies, and anyone who already has a stable income from other work are all pieces of the business filing puzzle. There are many, many more so make sure to do your due diligence as well as reporting your income/profits accurately.
Super-sized deductions. This mostly applies to the use of one's home or car for business purposes, but it can expand to literally 100's of deductions. A few key points are that in order to deduct your home office or car expenses, your office and car must be used only for business purposes. Therefore, you can't deduct kitchen expenses just because your desk is built into a nook in that room. Also, make sure to accurately report your mortgage interest and property taxes as those are also hot-beds for audit triggers.
Rental property losses. In order to take these deductions, you must be able to prove that you are actively involved in the management of the property. Taking these types of deductions on top of having a decent, stable income elsewhere raises the auditing eye as much as taking super-sized deductions does.
Taking the Earned Income Credit. Much like the First Time Home-Buyers Credit of a few years ago (which I was able to take advantage of when purchasing my condo...wahoo!), there is a great deal of fraud surrounding the EITC. By all means take the credit if (and only if) you qualify, but know that this may potentially cause a greater likelihood of being audited.
Under-reporting income. This is more for those of us who receive 1099s as those are the most commonly under-reported sources of income. This one fascinates me in particular because I can't understand why someone would risk this given there's an actually document floating around out there reporting your income and the entity that paid you is also reporting it!
Flapping your gums. Did you know that the IRS has a Whistleblower Program that awards up to 30% of any extra tax/penalties to the person who turns in a tax cheater? Did you also know that the majority of cases originate with a friend, close colleague, or family member turning someone in? While you shouldn't be trying to cheat the system in the first place, you surely shouldn't be running your mouth about doing so if you choose to cheat on your tax refund.
Failing to file. Yes, it can be daunting to be faced with a huge tax bill. But when you realize that penalties and interest begin accruing immediately after the filing deadline of any given year, you shouldn't ever opt to simply not file. Instead of sticking your head in the sand and praying for this tax nightmare to disappear (which it never will because the IRS will hunt you down even if it takes them 10-15 years to do so), figure out your options. Get a filing extension, sign up for a payment plan; do whatever it takes to avoid additional taxes, fees, and eventual wage garnishment.
Past audit experience. Unfortunately, if you've been audited in the past, you'll likely remain on the IRS' hot list for years to come. Brace yourself for extreme scrutiny of your returns for at least 3-5 years following the year of your audit.
Being part of the 1%. This is one of the areas where being rich isn't a great thing. Simply stated, the more you make, the higher the likelihood you're going to be audited, especially in recent years.
Hiring a shoddy preparer. If you're paying someone to do your taxes for you, that isn't a green light to simply sit back and wait for your refund. If that person isn't asking for necessary documentation or asking you questions, you should be leery of their ability to correctly file your return. Unless they've known your/your family for decades and are privy to every bit of your financial information, you should be taking part in an interactive conversation about this year's return. You'll surely stress a lot less if you spend time answering your tax prep professional's questions rather than the tax man's!

When did you file your taxes? Did you receive a refund or did you owe this year?

Making Excuses and Saving Money--They Don't Mix!

2012-04-05T17:05:00.000-04:00

How many times have you caught yourself making an excuse when it comes to saving money? Have you ever set a savings goal at the beginning of the month only to find yourself fall short of reaching it by the end? Unfortunately, these are common occurrences when it comes to managing our money wisely.

I have certainly had my fair share of excuse-making moments, and I now know that those little habits can add up to a big problem if not recognized (and changed). Here are some of the most common excuses people make when it comes to saving their money:

I have no money to save. While this may seem like a valid excuse given today's volatile economy, it's simply not true. Even if it's a mere $25/month, every penny you put into your savings today will help you maintain financial stability tomorrow. Seek out ways to cut back and know that while it won't be easy, you are worth it.
I have too much debt. Debt can be paralyzing. It can make the possible seem impossible, especially when you review those account balances. The thing is, you CAN save and pay down your debt at the same time. If you don't have some sort of emergency savings, you risk digging yourself deeper into debt. This behavior creates a vicious circle that can seem far too daunting to rid yourself of. Make an effort to pay yourself first above all and know that you will eventually be free from debt's chains.
I will save later. Have you ever thought to yourself that you'll save more once you make more? You're certainly not alone in this train of thought. The problem with this pattern of thinking is that once you become comfortable with each new salary bump, you can easily rationalize the need to make even more before you save. You're never too young to begin saving and taking advantage of the glorious benefits of compounding interest.
My efforts won't make a difference. I used to say this myself. When I was only able to save $25-50/month, I remember thinking that my efforts were useless. Wow, was I wrong! By forcing myself to save those small bits each month, I was developing a sound financial habit. Once I paid off my debt and began to save even more, I realized the power of saving money and how financially free it made me feel. This is one area where the phrase "every little bit counts" certainly applies.
I deserve this (insert purchase here). Of course it's hard to restrain yourself when you see your friends, family, or significant other purchasing the latest & greatest gadgets. It's almost automatic to think that you deserve the same things because you work so hard. This is a pattern of destructive thinking that will prevent you from making any real progress with saving. While there's nothing wrong with wanting/having material things, you must be able to truly afford them or you're essentially signing yourself up for a lifetime of debt and financial instability.
I'm just not any good with money. This is the ultimate money excuse, sort of like when someone says they're just not athletic so they don't exercise. Erase this negative self-talk by taking control of your money instead of letting it control you. Read books, read blogs, talk to people you know who are financially savvy. Do whatever it takes to alter your habits so you're able to start saving money.
I'm too old to change my habits. Simply stated, you're never too old to save money (much like you're never too young)!

What excuses do you make when it comes to not saving money?