We will be staying home this year celebrating with friends while watching the fireworks from our backyard.

Please be safe and please, above all else, don’t drink and drive!

After a long wait, I finally received a letter in the mail approving my appeal. We will be receiving a check for our over payment in the amount of…

$1,100

AND, we will be paying less next year, saving nearly $100 a month.

Check into whether or not your city has the option of property tax assessed value appeals. Don’t pay a company to do it for you! You can do it yourself!

It’s worth it!!

Our agency is short around 20 million dollars (which suddenly makes my $30K debt look like chump change). Remarkably, we are fairing much better than most agencies – or so they tell us.

Today was difficult. I watched as co-worker after co-worker was escorted into an office… and then escorted out of the building. I joked with my manager that I was considering hiding under my desk. You can’t get laid off if they can’t find you right? Then…

They came for me.

The CFO sat me down and said, ‘Let’s talk about your job.’

Tears started to spring. I’ve only been employed for a few months and I’m going to be jobless again?!?

He continued, ‘I heard from your manager that you were frightened about job security? You have no reason to worry. Your department is short three people and we simply aren’t going to hire those positions. Sure you have to do the work of those three people, but at least you have a job… err… well, at least this fiscal year anyway.’

I’ve been told to quit my job and to pursue a more stable position. In this economy, a guaranteed year of work IS stable. Hurray for 2010!!!

Whew!

I am very disappointed.

This event led to the following changes:

1. More involvement by both of us. Often in relationships, one person manages the finances. When things don’t go well and money is too tight, this person feels the stress, the pressure, and the responsibility for the mess. We have both decided to dedicate and hour each week to review each transaction. Now we have more checks and balances on each others spending – otherwise, we’ll have another bad month.

2. We are refocusing our goals and setting rewards. Our next payoff is still a ways away and we’re getting frustrated and bored. We decided to give ourselves something to look forward to after our next payoff. It’s nothing huge, maybe a dinner out or a trip to the theater, but rewards between payoffs has become something we need to stay motivated.

3. Reconsidering our numbers. We went back to make sure our numbers were working for our ever changing budget. We’ve been underspending on gas and overspending on miscellaneous necessities (car repairs, house repairs, etc.). We decided to adjust our numbers and perhaps pay a little less on our credit card so we can stop panicking when things aren’t balancing. Leaving the numbers the same would be great, but it’s obviously not working and it’s causing frustration.

4. We have decided to spread our focus. It’s easy to let finances consume our thoughts and lives. Rather than let this stress grow, we decided to let ourselves enjoy other things in life. Running, swimming, yoga, gardening groups, and organizing the garage help to keep our mind free of the finance clutter in our brains.

When there are long distances between payoffs, it’s important to work at what is frustrating you. You can’t solve everything, and it will be painful, but taking steps to at least reduce stress will help to prevent burnout. I’d rather take things a bit more slowly than give up entirely.

What have you done to motivate yourself and prevent burnout?

One of the big things we did after paying off our debt was to get all of us into a good doctor. We got some of the bills last month, but we got the biggie bill this month. Beks just talked about health and finances. They are definitely related when you see the bill! I had mentally prepared myself for the moment I opened the envelope, but nothing really prepares you to see a bill approaching $1,000.

Thank goodness we do have the money and we get a 10% discount if we pay within 30 days. I’m also very glad we have been shelling out the money for an individual health insurance plan. That bill would have made me faint without it (it covered 70%).

It’s money well spent, though. We know that there is nothing seriously wrong with my husband (he had an expensive test done), our son is feeling better and I’m slowly starting to feel like myself again after taking supplements for vitamin deficiencies. While we were in debt reduction mode, we put a lot of that off. We shouldn’t have. I see now that we may have been too aggressive with paying off our debt by cutting spending that we shouldn’t have cut. But, you live and learn.

I discussed last month that our car was playing with us with the check engine light. Well, it wasn’t playing and I ended up jinxing myself. After shelling out almost $300 for what the mechanic thought was the problem – it still isn’t fixed. With all of the computers in cars, you’d think that if something was faulty the computer could tell you exactly where the problem lies. Instead, our car just notes that it is a general problem that could be a number of things. I have no idea how much this will cost to finally fix, since it’s a matter of fixing one thing and if it doesn’t correct the problem you fix the next thing on the list.

So money is flowing out freely right now. It’s frustrating. On the bright side, we haven’t had to put anything on our credit cards. So we still are credit card debt-free. Too many more months of financial hemorrhaging and that may not be the case.

I guess even though we achieved our goal of paying off our credit card debt, there will still be the bumps in the road that I talked about a few years ago. We’ll get through this rough patch and then be on our way again with increasing our financial health.

The road isn’t easy, but it will get easier. That’s what I’ve been saying to myself this month. Hopefully things will improve in July.

In short? A lot!

A few benefits of exercising (tip of the iceburg)?
Reduced blood pressure
Reduced feelings of depression and anxiety
Helps to control weight
Helps to build and maintain healthy joints, muscles, and bones
Reduced risk of diabetes

What do these have to do with finances?
Have you had to pay for doctors and medication recently?!? Ouch!! Also, exercise helps you sleep, puts you in a better mood, helps your self confidence, and gives you energy – all very important things in the work world where your paycheck comes from! Plus, people with a BMI of less than 22 get sick less often and miss less work.

I’ve been fortunate to have been physically active and healthy for most of my life. Running a marathon is just another way to push myself and stay active. Sure my sore legged walk makes Frankenstein look like a graceful ballerina but it’s important to encourage you to gain control in your finances AND in your health – they are closely connected.

Tomorrow is Saturday, take a walk with your dog, play with your kids, or ride your bike. Take a break from staring at that checkbook and balancing numbers to get some fresh air.

It’s good for you.

Some free sites to help you out?

www.Mapmyride.com
I use this site to calculate mileage and read elevation changes on my bike rides/runs.

www.Mypyramid.gov
This free site helps to guide you on better eating habits.

I’m warning you… these sites can be ADDICTIVE!!

What is your favorite FREE health related site?

We were elated when he received a call back and a position test date… that is, until they dropped a bomb. The job market in Southern California, like in most places, is a tight one. They are only offering the very bottom pay bracket. If my husband received the position, he would take a 25% pay cut.

Short term, this is a bad decision. This job would put us back to making minimum payments on our debt. Our finances would become the tightest they’ve ever been.

Long term, the position offers a retirement and health package unrivaled by the private sector and offers more stability. On top of that, my husband is at the highest position he can go with his current employer. The new job is one he can stay at and grow in for the next 30 years.

What would you do?

10 years later…

I do not feel graceful, powerful, excited, or focused.

I ran for 45 minutes this morning and looked more like a stumbling 3 legged dog than a sophisticated runner. But then again, that’s how I felt when drafting our first budget. I’m always a little awkward at first.

Still running, still budgeting, still pushing.

Patient, wise, brilliant, loving… he’s an all around great guy.

He encouraged creativity and made me feel like I could do anything. Now that I’m striving to become debt free, he is one of my biggest supporters. We I get frustrated, he is the voice of reason. When I get stressed about life, he brings things into perspective. When I get confused about the finance world, he knows all the answers.

I think he secretly has Google software in his brain because no one should know THAT much.

Thanks for being such a great dad.

I love you.

According to HR, he was one of over 1,000 applicants for that position.

I am confident in his abilities and his references but I’m not expecting him to get the job.

I knew the job market was bad in San Diego… I just didn’t know how bad.

I am more thankful now than ever that we are both employed.

I also told myself I’d never get out of debt.

As I watch my debt amount fall, I’ve become more confident in my ability to do my list of impossibilities. I see that I am capable of doing more than I ever thought achievable. Suddenly, a marathon looks like something that is hard… but something I can do.

I told my husband I was planning to start running and the marathon I chose to run to next year (one of the most grueling marathons in San Diego) and he said, ‘Are you sure?’

And I am.

I have just shy of one year to prepare for my 26 mile ‘impossibility’. I guess it’s time to say goodbye to my jelly donut and rolled taco diet and say hello to my tennis shoes.

Isn’t it time you stretched yourself in more than your finances? And is paying off debt giving anyone else the ‘I can do anything’ thoughts?

The poor guy has never had to look for a job before – his reputation as a hard worker has always earned him employment without even an application. Writing a resume is difficult.

I’m trying to help him but I realize that what I want to write, ‘Good looking, hard working, smart, sweet man’ probably won’t land him the position… and it might be hard to fill a 8 ½” x 11” sheet of paper with 7 words. Sure I could add more like, ‘beautiful olive skin that tans in the sunshine, huggable arms, and a perfect husband’ but somehow, I don’t think that’s the ‘more’ his resume needs.

Unfortunately we’re under a time crunch (the resume is due tomorrow) but for those seeking employment and need resume help, DON’T PAY SOMEONE TO WRITE YOUR RESUME FOR YOU! If you attend college, seek the advice of a job counselor. For those not in college, check the offerings of your local community. Nearly every city in San Diego County offers job and resume assistance free of charge. Not only can these organizations help you with your resume, they often have a good idea of where jobs in your field may be opening.

As we started working through the details, I couldn’t help but wonder… maybe rednecks have it right. Here is how we have prepared so far and the current expenses:

I threw together an online invitation for our friends (free):

It’s time to round up yer cousin and yer sister from their mobile home… we’re havin’ our first annual REDNECK PARTY!!

So, hop in your 1987 Toyota Tercel and git over here!

We borrowed some used hubcaps from the local tire store to play games with and use for decorations (free).
We are wearing our own clothes (circa 1980 – also free).
We borrowed a wheel barrow from our neighbor for wheelbarrow races (free).
We pulled an old rope from the garage for the lasso competition (free).
We are borrowing new toilet seats from my husband’s plumbing company to play redneck horseshoes (free).
We rented country CD classics like Gretchen Wilson, Confederate Railroad, Kris Kristopherson, and Merle Haggard from the library (free).

So far, our expenses are zero! Perhaps we should rename the party ‘Working toward our debt free goal and having fun at the same time’. I’ll be sure to toss some pictures up here next Monday after the party.

Any ideas on cheap gatherings? How about additional games for our redneck party?

I can breathe a temporary sigh of relief.

I keep hearing about layoffs across the country. I lost my job when the business closed 7 months ago, my husband’s company is on the brink, and my new job is unstable. My father and brother are without jobs. Are we just in bad industries or are you struggling to keep your job too?

Credit Card: $4,437.12
Student Loan: $9,935.46
Auto Loan: $12,738.30

Total Original Debt: $38,495.86
Total Paid: $11,384.98
Total Remaining: $27,100.88

For the sake of the plants, I keep my distance.

He started early in the season and used a mix of seeds and small plants rather than buying large overpriced ones. He carefully chose the healthiest plants and worked hard to care for them. He used a thick mulch as a weed barrier and water saver (Sunset Magazine reccommends using gray water for gardening but I’m still on the fence about it).

Not wanting to be left out of the joy of growing greenery, I planted one single flower.

Here is my flower now…

I killed it with too much water.

Here is my husband’s garden….

Perfectly controlled and growing beautifully.

Is it worth it? Yes. He loves that garden and enjoys spending summer evenings puttering around the big green leaves. But are we going to harvest the value of the plants in their fruit? I’m not sure. I guess we’ll see in a few months. I’m going to keep a tab on our expenses (including the higher water costs) and see if we break even.

For the experts out there… is it worth it?

We argued about who should pay for groceries, who should pay for dinner, and who should pay for everything in between. I hated asking him for his half of the rent each month. He was my husband – not my roommate. It finally came to the breaking point when he couldn’t afford rent and we had to clean out our savings and use our credit card to get by. We opened a joint checking account the very next month.

We learned to work beside each other and the arguing stopped.

We made our mistakes – financing nice cars, charging vacations to credit cards, and remodeling our bathroom on credit – but now that we’re working to become debt free, we are partners in the fight. I wish someone had told me early on that working together as a couple was a necessity for a good marriage and good financial health. As I listen to my co-worker talk about his wife ‘owing’ him money for tires on her car, I couldn’t help but think… ‘No wonder he’s on his third marriage.’

So how do we do it? We each get a $3 daily allowance in cash each week. I don’t care what he spends his on, and in return, he doesn’t care what I spend mine on. We usually spend the money on work clothes or a bi-weekly dinner out together. This week, we split the cost of a silly $15 video game we both would enjoy and a $25 set of solar lit pavers for our garden. (And yes I know, $3 may be more or less than you spend, but it works for us)

My husband and I rarely argue about money now that we’ve enacted the $3 daily allowance rule, but we still fight about very serious issues… like the direction of the toilet tissue.

Do you keep your money separate? Or do you have a joint account? And how much do you allow each other to ‘blow’ each day?

I’ve been in perfect health for more than 6 months – not even a sore throat to annoy me. Now that the cold and flu season is over… I’ve come down with a nasty bug. Heaven forbid I get sick when everyone else does. Now I’m the freak show who’s sick in JUNE.

I got sick yesterday afternoon. I felt awful at work and before leaving, I told my boss, ‘Hey, I’m not feeling very well. I’m going to drink some tea and get to bed early. Have a good night.’

Everyone knows the cardinal rule of making two day weekends to three day weekends… fake sick on Thursday afternoon and call in sick on Friday. Er… so I’ve heard.

Terrified that my boss will think I’m lying, I’m forced to go to work this morning even though I feel like I’ve been hit by a giant rotating ferris wheel…multiple times. I’m not one of those people who look adorable when I’m sick. My eyes get red and puffy, my skin gets itchy, my nose turns pepto bismol pink, and I’m embarrassed to go out in public.

Fortunately, this should work well for me in this particular situation. I’m going to work… and I hope to be back home and in bed within an hour.

Starting Debt: $38, 495.86
New Debt Number: $27,814.62

Total Paid Since October 2008: $10,681.24

Woo Hoo! We’re over $10K

We were hoping to get ahead of schedule and have our credit card debt paid by July but it’s looking like August or September (still ahead, just not as much as we wanted to be) thanks to the California DMV fees and the higher taxes.

Friday, I wasn’t ‘feeling it’. Late nights paired with high stress had me pooped by Friday and I hit the snooze button far more than I should have.

I rolled out of bed, threw my nappy unwashed hair into a pony tail, and put on my uniform without ironing it. I caught the train to work and arrived my usual 45 minutes early – 30 of which I should have spent getting ready and ironing at least my shirt. I sluggishly walked into the elevator, hit the floor button, and leaned my sleepy head against the wall. Just as the doors started to close, a hand slipped through the doors and in walked the equivalent of the company CEO.

I’ve met the guy approximately 2 times in the 6 months I’ve worked there.

He gave me a slow once over – and it wasn’t because I looked smoking hot in my uniform. He looked at my crumpled pants, my against policy un-tucked shirt, and said a very crisp, ‘Well… good morning.’

I heard ‘No Scrubs’ by TLC blaring on my brain radio.

I’ve always been told to dress for the job you want and not for the job you have. I’m fairly certain I will be demoted to janitorial staff by tomorrow.

Never again folks. Never again will I dress like that.

There are two types of spending: Capital and Operating

Capital funds are used to buy things (Ex: telephones, cars, desk chairs, radios)
Operating funds are used to pay daily operating costs (Ex: salaries, electric bills, services)

Obama’s funds given to many government organizations in California are for capital expenditures only (I have no idea if it’s the same way for other states. I only know what our agency is dealing with).

You can imagine the hateful letters, calls, and personal visits we receive when fire/safety/teaching staff and public services are cut while a new 21.2 million dollar diamond encrusted ‘Welcome to San Diego’ sign goes up.

Last week, congress approved 10% of the stimulus funds to be redirected to operational costs. This makes somewhat of a difference but many firefighters, police officers, and teachers are still going without jobs. Public transportation has been sliced. The routes around my house are gone – yet new driverless buses are sitting in a bus yard growing a layer of dust.

I’m not saying I know how to spend the money better. I don’t agree with the stimulus plan at all. But for the love of everything – stop screaming at the people who have no choice on how the money is spent.

What happened to the good ol’ days of Nintendo and Sega glassy eyed kids? Now they are dancing, singing, and playing instruments. It’s as if the Wii transformed our family into a modern day Brady Bunch band. Ugh.

I rented the Sonic vs. Mario Summer Olympics game from the library. I’m pretty sure I would have expelled less energy actually competing IN the Olympics. Real swimming isn’t nearly as difficult as Wii swimming. Trust me… I can’t use my arms today.

And with the invention of Rock Band, I can’t just sing Aerosmith, I have to sing Aerosmith AND play a guitar. My voice has joined my arms in the ‘not usable’ category.

I think these games were secretly invented by parents who would like to temporarily disable their children. You can’t talk back after losing your voice to Paramore – or maybe that’s just me.

I wish I could say my nieces and nephews suffered from the same painful muscle strain I have today but… I had so much fun playing that I didn’t exactly let them play. When they started crying about the unfairness of it all, I could only say, ‘Back off shorty! Aunti Beks has to finish the last rift of Salt N Pepa so she can win a new tour bus for the band.’

The best things in life are free.

First things first – are we still credit card debt free? Yes! In the back of my mind, I kept wondering if something would happen out of the blue and set us back again. I was anxiously waiting for the end of the month to see if anything happened. A few days ago we did have a little scare when the check engine light came on in our car. We reset the light and so far it hasn’t come back on again so we hope it was a general misfire on our car’s part (it has done that in the past). I hope I didn’t jinx ourselves right there. We’ll see.

With things going so well, you’d think that we were able to replenish our savings account since we used some of it to pay off the last of our credit card debt. Well, we haven’t yet. We spent money on some other things.

The most important one was our health. Sure, we went to the doctor’s when we were sick while we were paying off debt, but it was a very reactionary approach to overall health. We decided that we needed to be proactive with our health and work to make ourselves as healthy as possible. A big part of that was finding a doctor that will help us with that. I wasn’t quite prepared for the sticker shock when it came to making sure our bodies have the correct fuel it needs to function properly.

For example, we found out that our son was deficient in a few vitamins and minerals. The total monthly cost for his supplements is $55/month. That will ease up once we revise our diets yet again (we did it once already to reduce sodium). I’ve been busy reading up on vitamins and minerals and trying to come up with a better menu for all of us since I suffer from vitamin deficiency as well. It’s funny, we thought we were eating healthier but in the process we were stripping ourselves of some very important nutrients.

It’s tough to spend money like we have this month, but we are taking care of the biggest assets we have…ourselves.

Another thing we did was spend money on our son’s extracurricular activities. We bought the bare minimum before, but we spent some more money there to get him better equipped. We also bought some equipment so mom and dad could participate as well to help him practice. It has been some very nice family time together.

Lastly, here is a big shocker. In a very weird turn of events, I was approached with a job offer. When one door closes, another one opens (life is funny that way). After some lengthy discussions, we decided that I would accept the job offer. Since I have been working at home for the past few years, I needed a new wardrobe since I would be working outside of the home in a professional position. I also decided to get a professional haircut to spruce myself up a bit.

Working at home has been a big money saver for us and I enjoyed the job that I had. It was a tough decision. In the end, we decided that the contacts I would make in regards to our business tipped the scales to the new position. There is a lot of value in that and I plan to fully capitalize on it. I’ve become pretty detached to the outside world since I started working at home and it was time to get back out there and network and make some friends.

That brings me to a business update. Things are still going well although sales have not increased this month. It’s been hectic around here with my new position and my husband is at the same job. We’re still getting used to yet another new schedule. Add our son’s events into the mix and it’s often go-go-go for us. It takes a while for the waves to calm down after rocking the boat. May has been a crazy month and we didn’t add any new products to our business or do any promotion.

We may decide to put some money into our savings this weekend. We have a healthy buffer in our checking account right now since we often ran things so close while in debt reduction mode. We could use that to put a little bit more into our savings. I have been updating my NetWorth IQ profile so if we end up using some of our buffer for our savings it will show up there in May’s update.

I’m not sure what next month will bring. We will likely be bringing in more money and we won’t be spending as much money so it should be a great month for us. Hopefully we will be able to contribute a large amount to our savings account. Then again, I never thought I would be working another job right now so it just goes to show how life is unpredictable. I guess we’ll see what June brings.

Hope all of you are doing well!

I’ve been debt free before.

There was a moment, for about 3 days, in college when I had no debt. My car was paid off, my credit card had no balance, and I didn’t have a mortgage.

Then, I came close again after we closed on our house. We had been saving for a year and the money returned to us from escrow was used to pay off my husband’s credit line.

That credit card debt freedom lasted a few weeks before we decided to remodel our master bathroom and take a trip to Hawaii.

My finances are like a yo-yo diet. Sure I’d love to eat healthy all the time but rolled tacos with Mexican guacamole? I can’t resist.

Just like weight loss, a diet is silly. The only real option for permanent results is a lifestyle change. Staying thin requires eating less than or equal to what you need – staying financially healthy means spending less than you make. Sure it looks easy on paper, but only those who have suffered through it (and continue to suffer through it daily) know how hard the struggle can be.

This is the longest I’ve been on a financial diet – and I know I’ve got what it takes to keep the ‘weight’ off.

Yeah, the change is lame – but the results… those are what I’m grinning at each month when the credit card statement arrives.

One day… it will say…

$0

Which is harder for you: Losing weight? or losing debt?

Whenever someone on the show says something clever, an elevator in the background dings. Not a big deal… unless you work in a building with elevators. Now every time the elevator dings, I act like Pavlov’s Dog and wait for someone to say something clever.

I’m onto you Executive Producer Betsy Beers. Thanks to you, TV watching has caused a semi-normal person like me to live in a complete state of confusion for 10 floor dings up… and 10 floor dings down each day! But while you’re out creating chaos in the world, I was wondering if you’d take some precious time from your schedule and somehow work your Pavlovian magic on my finances. I’d like to be completely numb to the charms of the evil ones, ie… Target, Macy’s, and their best friend Nordstom.

Come on Betsy! A little help please!?

DING!

We went over budget by $90 this weekend.

I wish I could say it was on something important like an investment, a donation to the cancer society, or giving to help a military family but…

The $90 was spent on 5 flats of chicken thighs, 3 bags of charcoal, 4 fruit pies, green salad… and a round of golf.

My husband threw two hefty BBQ’s this weekend and went golfing with his brothers.

Fortunately, we both worked extra hours last week so we didn’t fall behind – in fact, we still came out ahead. Sometimes, inviting friends over to enjoy smoked chicken and homemade pies is worth it – especially when your BBQ is interrupted by an unexpected 20 minute fireworks show.

We sang Livin’ on a Prayer by Bon Joni while playing Rock Band late into the night.

I’ve been wonderfully budget conscious for months; I hope you can forgive this exception.

How was your holiday? Any budget hiccups?

I. The 30th day of May, 1868,is designated for the purpose of strewing with flowers, or otherwise decorating the graves of comrades who died in defense of their country during the late rebellion, and whose bodies now lie in almost every city, village and hamlet churchyard in the land. In this observance no form or ceremony is prescribed, but Posts and comrades will, in their own way arrange such fitting services and testimonials of respect as circumstances may permit.

We are organized, Comrades, as our regulations tell us, for the purpose among other things, “of preserving and strengthening those kind and fraternal feelings which have bound together the soldiers sailors and Marines, who united to suppress the late rebellion.” What can aid more to assure this result than by cherishing tenderly the memory of our heroic dead? We should guard their graves with sacred vigilance. All that the consecrated wealth and taste of the nation can add to their adornment and security, is but a fitting tribute to the memory of her slain defenders. Let pleasant paths invite the coming and going of reverent visitors and fond mourners. Let no neglect, no ravages of time, testify to the present or to the coming generations that we have forgotten as a people the cost of a free and undivided republic.

If other eyes grow dull and other hinds slack, and other hearts cold in the solemn trust, ours shall keep it well as long as the light and warmth of life remain in us.

Let us, then, at the time appointed, gather around their sacred remains, and garland the passionless mounds above them with choicest flowers of springtime; let us raise above them the dear old flag they saved; let us in this solemn presence renew our pledge to aid and assist those whom they have left among us a sacred charge upon the Nation’s gratitude—the soldier’s and sailor’s widow and orphan.
II. It is the purpose of the Commander in Chief to inaugurate this observance with the hope that it will be kept up from year to year, while a survivor of the war remains to honor the memory of his departed comrades. He earnestly desires the public press to call attention to this Order, and lend its friendly aid in bringing it to the notice of comrades in all parts of the country in time for simultaneous compliance therewith.

III. Department commanders will use every effort to make this Order effective.

—General Orders No. 11, Grand Army of the Republic Headquarters.

I hate our couches and I think they are ugly.

This week, my husband did what good husbands do – he attempted to solve my dilemma of ‘seating space’. He came home with a behemoth of a recliner and said, ‘Look honey! More seats!! Can you believe someone was going to throw this away?!’

I bit my tongue before a ‘Yes’ slipped out. Instead, I said ‘Wow hon, it’s… wow.’

‘And they have TWO! I’m picking the other one up tomorrow. How awesome is that?! Seats!!’

He happily jumped in the chair and reclined, a big grin spreading across his face.

How could I be mad or ungrateful? He solved my ‘seating dilemma’. Sure I have an ugly blue giant in my living room (err… soon to be two), but I’ve learned to take his efforts for what they are. That ugly chair is a monument to the fact that my husband listens to me and he’s doing his best to make my life easier… without spending a dime.

I’m going to stop whining about the sofas for a while. Who cares about sofas when I have a man like that?

But then again…

This is the same guy whose ‘sound judgment’ created the likes of Junior and Jingle All the Way.

And now, he wants to prolong it for several years through a special statewide ballot?

When I make less, I have to spend less. I can’t demand more money. Why can my state live financially irresponsible in a way that I can’t?

I didn’t give my approval on May 19th. I have to figure out how to survive on my new tiny salary; can’t I demand the same for my taxes?

Is this just a California thing or are you spending a couple extra Benjamin Franklin’s a month on taxes?

My husband loves this system. He turns on the hose for a few minutes while he eats breakfast and turns it off before he leaves for work.

Or should I say… he lovED this system.

I came home from work on Thursday and heard water running. Confused, I headed to the backyard and was greeted with a mass of water and a geyser like spray erupting from our hose bibb.

Turns out, hubby darling forgot to turn the system off and the pressure built until the backflow device exploded. This water mistake will likely add $150 to our water bill.

To make matters worse, my ever so annoying dogs like to kill every living thing in their territory. The new lake in my backyard caused dead, tailless, lizard and mice carcasses to float to the surface. I guess I can be grateful my dogs aren’t bigger. I don’t think I could have held my gag reflex quite so well at the sight of bucktoothed bloated squirrels.

To the state of California – I am sorry for wasting our precious resource. I have decided to make amends and cut my already short 5 minute showers to 3 minutes. So, when you see me… and I stink… remember, I had a choice to assault your nose or assault my wallet. In these desperate economic times, I chose your nose. Please forgive me.

And yes, we learned from this. Thanks to a $30 timer, this won’t happen again.

What was your biggest home accident?

No, I am not going to reveal my housing costs. Asking a San Diegan to reveal her mortgage payment is like asking a New York housewife to reveal her age. The only thing likely to happen is a giant string of lies.

I’m also not going to reveal our charitable giving amounts. What we decide to give is a very personal decision and it’s not an amount I’m willing to change just to pay more on bills.

Savings: $50
Electricity/Gas: $105
Cell Phones: $100
Cable/Internet/Phone: $100
Grocery: $300
Gas: $260
Laundry: $10
Toiletries: $11
Clothing/House Repairs/Animal Care/Spending Money: $200
Water: $70
Trash: $18

All remaining money is used to pay our mortgage, our credit card, our student loans, and my husband’s truck.

So. Am I normal by the numbers? What does your budget look like?

Realizing my planting skills barely rivaled a 4th grader, I sought planter packs designed for small children. I spent $10 on supplies, read the directions (twice), and gently planted the seeds.

According to the seed packets, sprouts would appear in 10 days.

2 weeks passed and there was no green in sight.

After another long week, I finally gave in after day 24 and threw the sproutless pots into the green recycle bin.

A few days ago, while trimming some hedges, I opened the bin, tossed the branches, and noticed something funny…

Every single pot I had angrily thrown away was sprouting with life in my recycle bin. Plants are safer in my trashcan than they are with me.

I can’t afford a landscaper… but my husband is hereby the official garden keeper in this house. I’m sticking to what I’m good at – cleaning!

Stupid Plants.

This is when I made Mistake #1 – Recommending this before actually trying it.

And followed it with Mistake #2 – Not understanding the actual size of ‘1 cubic yard’ of mulch.

$6.00 at your local garden supply will purchase a bag, maybe two at most, of mulch. I didn’t think it was unreasonable to assume $6.00 would stretch to three, maybe four, bags at the greenery.

My husband asked, ‘Two yards will fit in my truck right?’

We made Mistake #3 when not stopping to ponder the question mark at the end of her response, ‘Uhhhhh. I guess?’

Mistake #4 was not asking ‘Why are you starting up a tractor?’

Two tractor loads later, I was shocked at the distance $6 stretched.

Um.

I hate to disagree with a professional financial advisor but…

He’s dead wrong (and is obviously invested in Starbucks).

At least when it comes to me anyway.

I don’t buy big items. I bought my dining room set for $75 off Craigslist five years ago. My couches are ten years old. My bed is a hand me down from my sister. How do I spend my money?

According to my online banking… I spend it in tidy $20 increments over… and over… and over again. My money doesn’t flood out, it trickles. The article recommended taking 24 hours to consider every purchase over $100. Good advice, but the last purchase I made over $100 was months ago. It’s not the $100 purchases that are killing me!

I feel like the article should have simply said, ‘Watch where the bulk of your money is going and try to find ways to save from there.’

My goal this month is to watch my ‘trickle’ problem. I’ve gotten to the point that I have to seriously consider every item I purchase AND if I wait long enough, will it go on sale? will the newspaper run a coupon?… or will I forget I even wanted it in the first place?

Is your problem a trickle? Or a flood?

For the first few years, we didn’t need the money to clear our bills and we certainly enjoyed using it on dinners out and hotel stays. When I lost my job last year, the rent from our two roommates was vital in keeping our heads above water. Sure, it’s awkward to be nearly 30 and referring to ‘my roommates’, but it’s significantly less awkward than saying, ‘My debt collector’, ‘My bankruptcy attorney’, or ‘My foreclosure officer’.

If times are tough, maybe roommates should be a consideration.

Fortunately we haven’t had a bad experience yet, but this is a very serious decision and should be heavily thought out. We’ve stuck by some clear, yet simple, guidelines:

1.) Write a lease agreement – even if (and especially if) it’s a friend and you only expect them to stay a month or two.
2.) Have very clear rules – i.e. don’t go into my bedroom, don’t eat my food, don’t leave messes in common areas.

Some recommendations for roommates:

Firefighters: Their 24 hour shifts give you some much needed space – plus they are good to have around when you accidentally set something on fire.

Guys with girlfriends: I saw our roommate’s rent check more than I saw him.

Brothers/Sisters: You survived growing up with them, what are a few more years? Plus, it’s easier to yell at family about dirty dishes in the sink.

Some people you should never consider:

Perfect Strangers: I’d rather my family not appear on Dateline talking about how the new roommate seemed so nice… until he killed me.

College Girls: I lived through that once and it was enough. More drama than Jerry Springer.

College Boys: Not a lot of drama but I was over keg stands and frat parties eight years ago.

People with animals and/or children: Who needs pee on the floor and chewed shoes – oh, and animals are destructive too.

Do any of you have roommates? How is it working out?

So here’s an open note to my mother – and I’ll try my best not to sound like a Boyz to Men song.

Mom,

Thank you for teaching me that children don’t need money to be happy. You made sure I knew love from my family was worth far more than the cash so frequently doled out to my friends from their uninvolved parents. I had the happiest childhood (and heck, adulthood) a kid could ask for and it was never because you showered me with the finest things in life – you knew you couldn’t buy joy. You showed me love, compassion, kindness, and at times… the back of your hand when I deserved it.

Thank you for teaching me responsibility. You didn’t teach me how to get into a financial mess, but you taught me how to own up to my mistakes and pay for them no matter how much it hurts. And speaking of taking responsibility… um… yes, I was the one who left the candle burning and set the counter on fire 11 years ago. Sorry about that.

Thank you for your faith in me. When we went on that college campus tour and I saw the $26,000 a year price tag, I told you it was a nice dream but it would never happen. You looked at me like I was insane and spent the next few hours with the financial aid department. They told me I had to keep a nearly perfect GPA and you told me you knew I could do it… and I did… but only because you believed in me more than I believed in myself.

I wish every kid could have a mother like you. The world would be a great place.

I love you mom

Not only does this prevent your credit from being misused, it also gives you a clear picture of where you stand financially.

If you’d like to join me, next on the list:

Trans Union

I’ll remind you again in four months! Happy Credit Score!

Update: I forgot to say where to go for the free reports. Please visit http://www.ftc.gov/freereports for the only TRUE free credit reports. Thanks L!

I excitedly went to our local nursery and realized the 15 bucks I budgeted for landscaping each month would allow me to complete my dream backyard sometime in 2037.

Um. Someone forgot to tell me how expensive plants are.

Disappointed, I went to work and lamented to a co-worker about my landscaping situation. She sweetly offered me some cuttings of her plants – several of which were on the list from the landscape architect. While we were talking, another one of my co-workers walked by and joined the conversation. He suggested I contact local garden clubs including water saving cactus clubs. He happened to be moving and offered to bring in several of his plants that matched my list. Let’s just not tell these generous co-workers about my history of plant killing OK?

Inspired, I can home and did some research and thought I’d share it with you.

I found several garden clubs – some of which offer spring plant sales.

Our local college offers a degree program in Ornamental Horticulture. Students grow plants and sell them for less than half of what they retail for at nurseries.

Our local dump (should I be politically correct and call it a ‘Solid Waste Disposal Site’?) offers high quality mulch in several different colors and sizes. If you are willing to load it yourself, you can save a fortune.

And perhaps the most odd place to find plants… our local 99 cent store!

Any ideas I missed? Where do you get your plants?

But I guess that’s part of a journey.  It can’t be all fun right?

I worked a tough job for a ‘big box store’ to pay the bills while applying for any decent job available. I finally landed a great job in December. 

I’ve struggled with unexpected expenses – like a monthly $150 property tax hike and a 1% sales tax hike…

I’ve made lifestyle changes – the biggest one is my use of public transportation…

I’ve struggled with monotony…

And I paid off my car.

Here is where I am on my debt journey.  Somehow, we’ve squeezed $10,000 toward our debt – $30,000 to go.  Sure I’d like it to be more, but $10,000 isn’t a bad number.

I can’t wait to finish this journey and finally become…

DEBT FREE!!

During my childhood, my parent’s water source was a well (actually, it still is. They’ve lived in the same house for 30 years). They never worried about water rates rising. They never had a water meter on their house. They simply had to worry about…

Their water source drying up.

Try selling a house with the very minor problem of no water.

Conservation was always a big deal in our house.

City living has spoiled me. I learned that showers longer than 2 minutes are a gift from God.

But our latest water crunch and water hikes have reminded me that conservation, in resources and in money, is my responsibility. I have conformed to the water company’s request that I take shorter showers (sometimes I skip all together… this has NOTHING to do with the fact that I usually skip a shower when I wake up late for work) and stop watering at least 20% of my lawn (since we don’t have a lawn, it’s fairly easy to stop watering it) but we’ve gone a step further – we rerouted our washer.

For $15, we bought some pipe and fittings to connect to our washer. All water now drains to our trees and roses.

We water our landscaping for free.

Those living in the southwest should consider this. Not only are you doing good for the environment, you’re saving money on your water bill.

(Just don’t forget to make sure your detergent is biodegradable)

Since this is my last regular post, I have a few “administrative” things to mention…

For those who have their $25 ING Savings Referral links posted, please continue to send an email when they get used. I am still monitoring and taking care of the list until it is finished. If you are thinking of opening a savings account, the deal at ING is still a good one. You get a $25 bonus when you open an account with $250. You will also help a reader since they get $10. Please see the ING Savings Account Referral page for self-serve links.

I can still be reached by using the contact form. All you need to do is mention that the email is for me and it will be forwarded to me. I’ve received quite a few emails the past few years and if any of you would like to give an update on how you are doing, I’d still love to hear them! Or if you are looking to vent, I am here for that too

The “how we did it” recap post is still in progress. I will post when it is finished.

I will be tracking my Net Worth using my NetWorthIQ profile. The information will be condensed since I won’t be breaking down every detail, but you can see how we are doing overall. Here is the link to my profile. If you are a member over there, you can also leave comments and send messages. It’s a pretty neat online program.

This is not a goodbye since I will still be blogging on here – it just won’t be as often. But I will be around in the comments supporting Beks as she works to pay off her debt and I’ll be stopping by some of your blogs as well since I am way behind with my blog reading.

With that, I’ll see you with the next update

Jaime asks:
I remember at one point you were going to give more details about your side business. I’ve always wondered what you are doing and how it is going. I love it when you say things seem to be going well with it, and I just want so much more information about it!

If you care to share that is!

The thing about our side business is that it is in such a small niche. That prevents me from giving more details then the generic ones I have given. I tell a few more details in response to Anonymous Reader’s question below.

Sharon asks:
Hi Tricia, I’m curious if you’ll continue to become totally debt-free at the same intensity as you did with becoming credit card debt-free.

And last, once you’re totally debt free, do you want to stay and live in the same area where you are now? I think you’ve commented before that you’d like to be closer to family but couldn’t afford to right now. I love when you talk about buying your future “cabin”. Congrats on all you’ve accomplished!!!

Now that we have paid off our credit card debt, our rate of debt reduction will slow down. There is some spending we’d like to do in regards to our home. We’ve put off a few repairs so we had more money to put towards our credit cards. We are also going to concentrate on filling many baskets (see this post for more info). For my regular paying job, I’d rather not say what that is.

We do love where we live. We fought hard to live here and make it work. I do miss my family like you wouldn’t believe. The goal is to have a lifestyle and income that would allow us to travel more to visit them.

Thanks for the congrats!

Jim asks:
What do you focus on now?

Many, many things LOL. I detailed them in this post (written after your question).

Anonymous Reader asks:
It might be helpful to share a few details of the business – how you selected the idea/product, how long it took you to set it up, what it cost to set up, how much revenue it has generated and when, and how much you net from it now. If you see the business as replacing one or both of you job incomes in the future, how much revenue and net profit you expect from the business and how long until you make the change?

I have really enjoyed reading your blog and watching your ideas and attitudes evolve over the last several years. The quotes from your son demonstate how much you have changed. I hope you will continue to update your readers on your progress in paying off the remaining debt and increasing your income.

With our business, it was the result of finding a small niche that needed products we could provide. It took a lot of our time to set-up due to laying down the infrastructure and creating products. But it didn’t cost much to get the ball rolling (less than $3K). It is forecasted that the business profit will surpass my husband’s income next year.

All of our income from various sources went towards our expenses and the extra went towards debt and savings. An exception would be the capital that we initially invested in our business.

As of right now our student loans are roughly $29K. Our mortgage is at $33.5K. The plan is to concentrate on our mortgage and pay extra money towards that (I gave some reasonings in my responses to questions yesterday). For our son, I mentioned some time ago that he will not have money given to him for college. I have changed my perspective on that a little bit. He may have some help, but he has to work towards it as well. We will not advise him against student loans, since they may be necessary depending on where he goes to college (if he chooses to go). But he will understand the full ramifications of what taking one out means and I hope everything we teach him the next 10 years will prepare him for making sound financial decisions.

I am glad you have enjoyed reading my posts. I will still be writing on here although not on a regular basis and I will give more details about that tomorrow.

Thank you everyone for your questions!

I’m a very private person. Stop laughing. I’m serious.

I don’t mind sharing things with all of you but when it comes to sharing things with family… my lips are sealed.

I haven’t exactly shared our financial situation with Chris’ grandparents. You know, the ones who told us not to get in debt?

They are lovely people but… I didn’t want them to look at me and nod their heads in shame – that or wish their beloved grandson hadn’t married this credit card addicted hoodlum.

I was lucky enough to dine with them recently and I talked about everything… except money of course.

‘Lovely weather lately huh?’

‘How are you feeling these days?’

I breathed a sigh of relief as we dropped them off at their home and started to say goodbye…

Until my husband sat down and started talking about…

M-O-N-E-Y.

I wanted to strangle him. It was as if he were telling my dog loving mother that we had a history of puppy killing.

I can’t necessarily blame him. He’s excited about our financial plan and he’s proud of our progress but…

I’m not going to lie, I considered jumping across the table to tackle him to silence.

I wanted to scream out and defend myself. I wanted to say, ‘I’m not a shoe or purse gal… I just like vacationing… and remodeled bathrooms… and buying your grandson TV’s… and the smell of new cars!’ But I realized…

It didn’t matter. I had still done exactly what they had told us not to do. It didn’t matter why.

There was a long uncomfortable silence before his grandpa asked about our plans and offered suggestions on how to pay things off faster.

I could feel his disappointment.

If nothing else, it reminded me of the importance of what we’re doing and ignited yet another fire under my butt to stretch myself more.

Tell someone about your financial situation. Tell someone you know will ask you about it. Tell someone… knowing full well it will annoy you. That annoyance may be the motivation you need.

Pat asks:
Hi, Tricia. I wondered what you felt were the 3 most important things you did to have more money to put toward your debt? I also wonder what you feel is the best route to take to make more money in order to pay off debt faster? Thanks!

P.S. I’m a stay-at-home mom and have already cut back on groceries, no cable, cars are older and have been paid off for a while. We eat at home and the kids/husband brown bag lunches.

There were so many things that we did that contributed to the extra money to put towards our debt. Boy, it’s hard to think of three that were the most important since I think everything came into play. By golly, you stumped me LOL. So, I’m going to modify your question a bit and list three things that I think were helpful that most people could try.

Stopped going to stores as often. I can look back our spending (pre-debt reduction) and see debit card charges almost every day of the week. We went to the store way too often to pick up a few things. It all adds up so quickly and most of the times things were purchased that we didn’t need. Stores are very good at encouraging impulse buys. By curbing our frequent visits to the store and replacing them with thought out occasional visits, it cut our spending.

Decided that stuff is stuff. We had too much stuff and most of it didn’t serve a purpose. Our multiple garage sales really showed that. I haven’t missed anything that we sold. With that in mind, I really think about something before we purchase it and make sure it will get used and if we really need it.

Tracked our finances. We use financial software to do it, but you can also do it with pencil and paper. The important thing is to keep yourself accountable for your spending and to add up all of those receipts. Tracking your finances also is helpful to get an idea of how much you can pay towards your debt since you will have a better understanding of your finances overall.

As for making more money to pay off debt faster, if you can, look to your current employer first. Can you get a raise? Can you work overtime? If that’s not possible, can you get another job? I say that hesitantly because you do have to be careful. For me, I am an emotional shopper and when I get stressed I think about some retail therapy. The last thing you want to do is find yourself going on a shopping binge or deteriorating your health to the point where money doesn’t matter. You can try to push yourself, but find a healthy balance.

Regarding your P.S., if you haven’t already, make sure you check out WAHM.com forums. I’ve found a few work at home jobs there

L asks:
I was wondering how old your son was? You talk about him a lot and he sounds adorable.
And….WHOO HOOO on paying off the credit cards!!!!!

Thanks for the Whoo Hoo! Our son is approaching eight years old, although sometimes it seems like 14 LOL.

Marie asks:
I’m wondering if your student loans bother you and if you could tell us what % they’re at for some context. Are you going to accelerate your payment on these or are you content to pay as agreed.

We have no consumer debt no car loans even, just a mortgage and student loans. Our student loans don’t bother DH but they drive me crazy – all are below 2% interest though.

Good question Marie. To think of it, I’m not sure if I even noted the interest rate on our student loans at all on here. They are all a little over 5% right now. While I’m not happy about the student loans, I do like that we can deduct the interest on our tax returns. We are unable to do that with our mortgage. We are not planning on paying extra right now but I will be looking into changing the payment plan. We are currently on a graduated plan which gave us a longer payment term and a lower monthly payment. I still need to dig into that, though.

Maria asks:
Hi Tricia, I have a question for you- I’ve noticed that there are certain times in the month when you are able to pull out extra money for debt reduction and or savings but how do you determine when that time is? Is it more towards the end of the month when all of the monthly expenses are paid or at the beginning? What is your cash flow like? Do you keep a few dollars in your checking account? How does that work? Thank you in advance.

I know how much we can pay off at any given time since I project cash flow in real time. It’s hard to explain, but I have three months of future regular expenses (overestimated) and income (underestimated) entered into our financial software. I can see by entering a transaction exactly what a payment of $500 would do to our future cash flow. If I see us going into the red anytime in the next three months we scale back the payment. If I see a healthy balance, I increase the amount. I tried to keep a buffer in our checking account for anything I may have missed (filling the car with gas, urgent trip to store for medicine, etc.) but for the most part we ran things really close. I do plan on keeping a better buffer in our account going forward. We had some very close calls over the past three years.

Debt Free Dan asks:
Now that you are credit card debt-free, what remaining debts do you have and what do you plan to do about them?

What are your future plans for credit/credit cards? Are you going to swear off of them or keep them around “just in case”?

We still have our mortgage debt and our student loan debt. Our plan is to pay extra towards our mortgage right now. It has the highest balance and we are unable to deduct the interest on our taxes. We can deduct interest for our student loans. There were also other things that contributed to that decision as well.

We are not going to swear off our credit cards. In fact, we have been using one for purchases to earn cash back. But we have rules in place, like never charging when we do not have money in our checking account to turn around and pay it immediately. We will also keep them around “just in case” at least through the shaky economic situation the US is currently in. After things look brighter, we will start closing some cards.

Michelle asks:
I have only been reading for the last 6 months or so. So what I would really like to know is all of the strategies you used to eliminate your debt – and to be as specific as possible. A kind of “how I did it” post. Love your blog. It’s already been a big help.

I’m glad my blog has been helpful to you As for that post you are looking for, it is in the works! I wrote way too much the past three years – but I’m almost done with a recap post. Here are links to the recap posts for 2006 and 2007.

More answers will be coming tomorrow! I also did an interview at Ask Mr. Credit Card in case you would like to read the questions and answers over there.

I thought I would feel a little different after paying off our debt. Like maybe I would want to kick my feet up for a while. You know, take some deep breaths and relax a little. Instead, things are back to normal. We went to the grocery store and still searched for the deals. We are still working our jobs and working on our business.

I think my sights have already shifted from our debt to everything else we need to take care of financially. We have a lot yet to do. Here’s what our list looks like so far:

• Increase Emergency Fund to $10,000
• Start Saving for a Car
• Start Retirement Contributions
• Start Savings Account for New (smaller) Home
• Increase Mortgage Payment by 100%

To be honest, I look at that list and wonder how the heck we are going to do it. I start to feel like I did way back when we started reducing our debt. There’s a lot to accomplish and I get that feeling of “It’s going to take forever.” Talk about déjà vu.

But then I look back at what we did. I am taking a deep breath right now. We can do this, and we will do this. The first order of business is to get our emergency fund up to $5K. Then we start splitting up all extra money to the four savings baskets as start paying more towards our mortgage. I’m not sure how our extra money will be split yet (except for the mortgage – I would like to double the monthly payment).

Now I’m feeling excited. Just the thought of having $10K in our emergency fund puts a smile on my face. Rome wasn’t built in a day and this isn’t a race. We’ll get where we’d like to be. Just like with paying off our debt – it is going to take some time. Patience young grasshopper…patience.

You can also ask other questions that are maybe not related to debt. The first place I visit when I go to a new blog is the about page. I love learning more about the blogger themselves.

I can’t guarantee that I can answer every question. Some may be too personal to answer and I’m not sure how many questions I’ll get. I’ll keep this open until end of day Monday and we’ll see what happens.

Do you have any questions for me?

The national news show NOW on PBS is looking for a student graduate who is in debt, about $50,000 or more, and fits one of the following two profiles:

1) A recent graduate (0-2 years out, give or take) who has been unable to find a job in his or her chosen profession because of the recession and is having difficulty or is totally unable to make their student loan payments.

2) Someone with an advanced degree who is about 5 years out of school and has been hit hard by the recession – possibly lost his or her job or is woefully underemployed, maybe trying to support a family, who is considering bankruptcy.

If you are interested in being interviewed for a documentary that will look at the student loan and recession crisis in the US, please contact us right away. The show will air on Channel 13 in late May, so
we’d need to hear from you immediately. Please contact Elyse Eisenberg at NOW – (212) 560 8567- if you are interested in doing the interview. You can also send an email to – eisenberge@thirteen.org.

Please contact Elyse if interested in talking about your story.

Mike D. asked:

“Are teens today more aware of the economy, and more aware of how important saving vs. spending is, compared to 10, 20, etc. years ago. Is this trending in any way (more aware, less aware).”

Our nation’s current economic crisis clearly demonstrates the need for financial literacy for our children, hopefully through our schools. Junior Achievement is so committed to ensuring that the next generation grows up with a fundamental foundation of financial literacy that we have created free, downloadable classes aimed at children in grades 5-12 and created lessons for parents and kids to do together. These resources are available at www.ja.org.

Here is the second part to Mike’s question:

“What do they think this recession will mean for that generation. Will it be more like the generation that came out of the great depression where they are less wastefull and got everything they could out of an item before getting rid of it, saving more, and using less debt? Or will this generation continue a lifestyle similar to what is in the economy now where people consider credit cards a way of life?”

It is difficult to know the ultimate outcome that our current economic crisis will have on the younger generation. The survey that we recently conducted in partnership with The Allstate Foundation shows that teenagers are feeling anxious about the economy and the poor economic situation is having an impact on their daily lives. For example, nearly half (49 percent) said their parents had discussed family finances with them as a result of the economy and 12 percent are contributing financially to the family budget.

SmileyGirl asked:

“As teens growing up in today’s economy do you feel it benefits your personal growth to have to pay for part of your expenses (car insurance, gas, spending money, etc.) or should we as parents reward you more for saving your money. As a parent of a teen and two pre-teens, I struggle with the right balance of teaching my daughters to be responsible with their money by saving and at the same time showing them that life costs money and it is a priviledge to do things like drive, eat out, etc. I want them to realize that life is not a walk in the park where you can spend carelessly with no consequences but at the same time I don’t want them to feel so strapped financially that their years of youth are spent agonizing over money. Any advice?”

The way you choose to teach your children about money is very personal and often different for each family. What may work for one of your kids may not be as effective for the other. The most important thing you can give them at this age is a solid education and set an example through your own behavior (that is visible to your kids) in the basics of personal finance so that they can make responsible decisions as adults. If you yourself only talk the talk but don’t walk the “financial walk” it can be difficult for children to take your money management lessons seriously. If they’re not getting the financial education they need at school, take matters into your own hands. There are resources on ja.org that can help parents teach their children about money management.

Ken asked:

“What 2 or 3 basic things can I do to begin to teach my 2nd grader about money?”

Budgeting and money management can be abstract concepts for a 2nd grader. By this age, they are often very capable of identifying things that they want. Once they’ve identified a goal, be it a new toy, snack or a movie, work with them on a way that they can earn that item. Whether they have chores around the house, have extra good behavior or forgo other items they may want, help them understand the actual worth of the item they want.

Begin to exercise comparison shopping with your child as well. Next time at the market, give them a few items they’re in charge of buying, such as breakfast cereal, pasta sauce and juice with a set budget. See if they come within that budget, and then you can discuss comparing prices and when to splurge on a brand name and when a store brand can be just fine.

I also asked a few questions:

“The facts shared about teens and money concern me. Especially how some are stressed due to the economy. I can only imagine that stress can spread through an entire family(young children included) during rough financial times. How do you recommend dealing with rough times with children? They will notice that things are different than they once were.”

It’s important to begin teaching children financial literacy from an early age, as you’re never too young to begin learning how to manage your money effectively. That lesson is very different for a five year old versus a teenager versus an adult, but the vital action is opening that dialogue so that money doesn’t become a scary, taboo topic in your household.

“Do you have any suggestions for free learning material to print/download for children?”

Junior Achievement recently created new series of free, downloadable teaching tools to help parents talk to their children about smart money management called Junior Achievement $ave, USA. These lessons are divided out by age group and discuss topics such as budgeting, the importance of saving, understanding the cost of credit and how to use it, and planning how to pay for college. The lessons are sponsored by The Allstate Foundation and are crucial for children’s financial literacy education.

“If one was interested in volunteering with Junior Achievement and working in their local school, but there were no Junior Achievement offices nearby, what could they do?”

While a Junior Achievement office may not be located in your city, there are offices all over the country. By contacting the office nearest you, there should be local opportunities for you to participate in so that you can help make a difference in local children’s lives. To find the closest office near you, visit ja.org and click on the “JA Near You” button to find local volunteer opportunities.

I’d like to thank Junior Achievement for answering our questions!

It features a man dressed as a pirate in a restaurant singing a silly tune about getting his identity stolen. The commercial implies that having your identity stolen will ruin your life and somehow force you to lose your job. The only way to prevent the tragedy, according to the commercial of course, is to pay a small fortune for monthly credit monitoring services.

I’m not saying that losing your identity is easy.

I had my purse stolen a few years ago and I was terrified every time I ran my report. I was simply waiting for that ticking time bomb to explode.

Can I tell you what DIDN’T happen? I didn’t lose my job. Crazy enough, I still had the ability to work and my brain still functioned – unlike what the commercial portrays.

Losing your good name will not force you to sing as a pirate in a restaurant and preying on people who fear this is over the line. In fact, I believe these credit monitoring agencies are a complete rip-off.

You have the right to obtain your credit report FOR FREE on a yearly basis from each of the three major credit reporting agencies (go to annualcreditreport.com). If you’d like a copy of your credit score, it’s an additional $5 – $7.

You can also put a fraud alert on your credit if you feel your information may be at risk. I put a fraud alert on my credit immediately after I financed our home. I knew my social security number was floating around several financial institutions and I didn’t want to take the risk. The fraud alerts last 3 months and can easily be renewed if you feel you need a little extra time.

But here’s the kicker….

You are still at risk – even if you use a credit monitoring company. I was silly enough to hire one of these agencies AND I had a fraud alert on my credit and I was still able to finance $1,500 worth of dental work without a hitch. They didn’t even call to alert me that someone was taking out a loan.

What am I trying to say?

The only person who can RELIABLY monitor your credit is Y-O-U.

You can obtain your report online. You have no excuse.

I check my credit twice a year. You should too.

Stay informed. Know your score. Know what’s on your report.

WE ARE CREDIT CARD DEBT FREE!!!

After 38 months of pinching pennies, increasing our income and riding on the roller coaster of debt reduction – we have finally come to the end of the credit card ride. We are no longer a slave to them. We are free now…and it feels…wonderful.

I feel like I can stand up straight since our credit card debt isn’t pushing us down. A huge weight has been lifted. At the same time, there is a feeling of “What’s next?” We’ve been at this for over three years. You really do get used to a routine and now things will be shaken up. It will definitely be a period of adjustment. With change comes some fear but a lot of excitement!

You may be wondering what we did with regards to our savings. Due to a payment that is taking longer than expected to get to us, we ended up pulling $1,499 from our savings account to make our debt payoff a reality. We should have the money by the end of the month but I didn’t want to cut things too close – I wanted to be debt free by our goal date of May of 2009. As soon as that payment comes in we are going to put it straight towards our savings.

We first thought we would do something grand when we paid off our credit card debt, like splurge on a family vacation (we have yet to go on a vacation with the three of us). After thinking about it, we are going to hold off on that and simply have a pizza party to celebrate. We need to get more money in our savings before we do anything big. Perhaps next year will be the year for our vacation. We’ll see how things go.

I’d like to thank everyone for reading. You have helped to keep us accountable for our financial decisions and without your support I’m not sure if we would have kept going at reducing our debt like we did. You have been here for the rough and sometimes very sad times and helped to keep my head above water during those times. I’ve said it many times before, but words cannot begin to express my gratitude. If I was writing this on paper…you would see little tear drop outlines all over it. I was okay with writing this post up until I thought about all of you and then the waterfall started. Thank you all so very much. You have helped us to make it to this special day.

As things sink in a little bit more, I’ll share with everyone our plans for the future and also take a look back at our journey. I am excited to be starting the next (credit card debt free) chapter of our lives

Quick Edit – I almost forgot to update my NCN Network chart so I just went and did it