My Personal Finance Journey - Personal Finance, Intelligent Investing, And Frugal Living Tips

What is the Highest Expense Ratio You Pay On the Mutual Funds You Own? Plus a Comparison With the National Average

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Fri, 25 May 2012 07:56:40 PDT

Overall, it was great to see that the expense ratio category that received the largest number of responses was the 0.1% or less category. This is great news! This means that most of you all, like me, have chosen to resist active mutual fund management and instead invest the smart way (passive investing) by using index mutual funds or ETFs! In fact, almost 1/2 of all of the votes received indicated that people paid less than 0.5% as the highest expense ratio for their mutual funds. Wonderful!

Comparison with the Rest of the United States - Average Mutual Fund Expense Ratios

As I always like to do when I analyze the result of polls here on My Personal Finance Journey, I figured it would be interesting to see how the responses compare to the current mutual fund expense ratio averages seen in the United States.

According to the Investment Company Institute in a study published on April 23, 2012, the average mutual fund expense ratio paid by US investors in 2011 was 0.79%, or 79 basis points.

Taking this in to consideration, the pie chart below shows how the MPFJ reader responses compare to this 0.79% average. As you can see, 62% of the readers on MPFJ pay less than the national average. Again, this is great news!

However, there was 38% of the reader responses that indicated paying over this national average. What this indicates is that there is still a very significant opportunity for people to save money by selecting different mutual funds in order to minimize their costs.

But, Isn't Paying a Higher Mutual Fund Expense Ratio (Above 0.79%) Worth it if the Fund Has Outperformed the Market for the Last X Number of Years?

In short, the answer to this question is unfortunately 'no.'

Higher expense ratios or front-end/back-end sales loads are often rationalized by actively managed mutual funds as being 'worth it' because the fund has outperformed the market in the last X number of years by X%. Examples of this include the American Growth Mutual Fund and the CGM Focus Fund.

While this train of logic sounds good (after all, in most other professions, if someone has performed well in the past, you'd expect good performance going forward), it has been proven time and time again in nearly every investing book I have read that this logic simply doesn't work in the investing world because there are too many external variables that the fund manager cannot control.

For more reading on this, I'd recommend reading A Random Walk Down Wall Street, What Wall Street Doesn't Want You to Know, or Stocks for the Long Run by Burton Malkiel, Larry Swedroe, and Jeremy Siegel, respectively.

But, the good news is that there is a simple way to avoid paying these high costs for mutual funds - using passively managed index mutual funds or ETFs. For example, the average expense ratio of all Vanguard mutual funds is only 0.20%, with Vanguard index funds having an average expense ratio of only 0.16%. By selecting any of these types of funds, you can save yourself and your family big money and allow your long-term savings to compound more quickly.

How about you all? What is the highest mutual fund expense ratio you pay on the funds you own? Is it above or below the national US average expense ratio of 0.79%?

Do you typically employ active management or passive management in your mutual fund selection? Why do you choose one or the other?

Share your experiences by commenting below!

What is Long Term Care Insurance?

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Wed, 23 May 2012 13:11:23 PDT

What is Long Term Care Insurance?

If you’ve listened to any of the popular television financial advisors, the topic of long term care insurance has been mentioned numerous times. Usually, it is brought up when individuals and families are looking at estate planning, or children are worried about their parents getting older. The reason is long term care insurance covers things that are generally not covered by regular health insurance, Medicare, or Medicaid. Instead, long term care insurance focuses on providing care when you’re not sick, but may not be able to perform the basics of everyday life, or need some type of assisted living care.

What Long Term Care Insurance Covers

Long term care insurance is designed to help cover the costs of providing long term care: such as dressing, bathing, eating, walking, or more. This type of care can be provided in a variety of ways, such as through home care, assisted living facilities, adult day care centers, hospice care, nursing homes, or Alzheimer’s care facilities.

Long term care insurance usually also provides for a care-giver (either visiting or live-in), companion, therapist, nurse, or possibly a housekeeper. Depending on the policy maximum, care can be anywhere from visiting at a pre-determined interval to 24 hour care.

To read more detail about what is covered by long term care insurance, click on the resource banner below:

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Why Long Term Care Insurance Can Help

Many individuals look for long term care insurance because it is currently estimated that about 60 percent of individuals over the age of 65 will require at least some type of long term care during their lifetime. Furthermore, once long term care is actually needed, it may be difficult to get long term care insurance. That is why many people seek it out while they are young.

Also, many individuals may not want to rely on their children or family for support, or they may feel like they are burdening them. As such, long term care insurance can help cover the out-of-pocket expenses associated with getting long term care. Without long term care insurance, the cost of having these services may quickly deplete the savings of the individual, and they could end up a ward of the state or dependent on their children or family after all.

How about you all? Have you ever thought about getting or know anyone that has long term care insurance? Do you think this type of insurance is worth the money?

Share your experiences by commenting below!

***Photo courtesy of http://s0.geograph.org.uk/photos/24/68/246875_2523ec81.jpg

CarMax's MaxCare Extended Service Plan Dissected and Other First-Hand Account CarMax Car-Buying Experiences

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Tue, 22 May 2012 11:27:16 PDT

Click here to enter my free $76.18 giveaway for a chance to win 5% of My Personal Finance Journey blog income and give another 5% to a charity of your choosing! Deadline to enter is May 31st, 2012.

About a month or so ago, I went along with my girlfriend to help her purchase a car at our local CarMax.

While I could probably spend an entire post talking about the reasons for and against choosing CarMax to purchase a used car, overall, I have to say that the buying experience at CarMax was a rather positive one.

In particular, my girlfriend liked the 'no-haggle' pricing structure they have going on there and the fact that their cars are high-quality/not going to be 'lemons.' Perhaps the only drawback to buying a car from CarMax is that it is very difficult to find cars below $10,000 there. This is due in part to the fact that their cars are high quality, but in my opinion, also to the fact that because of their dependable reputation, CarMax knows people are going to be willing to pay a slight premium for cars purchased there.

Apart from the CarMax buying experience being overall very positive, there were two things that were midly "pushed" on us to buy that I thought would be interesting to share with you all (described below):

A 9.0% APR interest rate car loan.
CarMax's MaxCare Extended Service Plan for only $1,000.

CarMax's Attempt to Push Car Loan Financing On Us

Because of some prior research I had done on the subject of car buying, I knew that while NEW car dealers were offering very low interest rate loans in order to sell NEW cars, USED car dealers made a significant amount of money off of selling loans/financing options for used cars.

And, it turned out that the situation with CarMax was no different. My girlfriend was able to secure a loan from Bank of America for a pretty good rate of ~3.8% APR, while CarMax was willing to give her the same loan but at a 9% APR interest rate. Talk about some good mark up here! As you can imagine (since my girlfriend and I are still going out and have not broken up - haha), she ultimately chose the lower interest rate loan from Bank of America.

However, the strategy that the car salesman tried to entice us in to going with the CarMax in-house financing was rather interesting. What had happened was that the letter guaranteeing the loan from Bank of America needed to be confirmed over the phone by CarMax, but they were unable to make the call since the bank was closed for the weekend (and we needed to wait until Monday). When CarMax heard about this, they gave us an OFFER. They wanted us to walk out of the dealership with the car that night by simply using CarMax's financing. Since CarMax is apparently nothing but our friend, they even were going to give us the option of coming back within 1 week and canceling the loan (if we decided to go with the Bank of America loan) with no fees or interest involved.

To us, this sounded like a whole lot of complication in exchange for simply getting the car 1.5 days earlier. So, we ultimately decided to simply stick with the Bank of America financing and wait until the bank opened on Monday to go back to finish the car purchase.

However, I was quite fascinated with CarMax's willingness to swap us in and out of their financing with no fees or interest. It made me wonder if 1) are they just being nice? or 2) do they know from experience that X% of people that walk out with their financing won't take the trouble to come back and change back to financing that they had secured from the bank?

CarMax's Attempt to Push the MaxCare Extended Service Plan On Us

So, even though it took me a couple hundred words to explain what transpired with our refusal to take the CarMax in-house financing option for my girlfriend's used car purchase, it really wasn't too big of an issue at all. We simply said, "no," to the nice salesman, and moved on with the paper(/electronic)work.

However, the CarMax MaxCare Extended Service Plan was pressured on us slightly more aggressively.

As a general rule of thumb, I operate on the belief that insurance and extended service add-ons to purchases (large or small) are generally NOT worth the money and are a better deal for the people selling the plan to you than for you the buyer. So, my girlfriend and I had done our homework on this MaxCare Extended Service Plan pumped by CarMax, and we were convinced that it was unnecessary.

Because we had done our homework about the extended service plan, we figured that when we sat down with the salesman at CarMax, it would be fairly simple to 'just say no.' Alas, this was not the case. During my girlfriend's various initial talks with the salesman and subsequent discussions while we were finalizing the paperwork, I would say that the CarMax Extended Service Plan was mentioned no less than 5 times. By the end of it, I felt like we were almost made to seem like we would be IDIOTS for not taking the plan and that ALMOST EVERYONE who buys a car from CarMax gets the service plan. The salesman even threw in a story about one of his friends that is happily using the extended service plan when his car broke down! It was a nice touch! Was it true? Maybe.

When we finally got to the last screen where he could sign us up for the extended service plan and we still said 'no,' he actually asked us WHY we didn't want to take advantage of such a great deal. In reply, I simply said, "NAME OF SALESMAN, let's just proceed with the sale of the car," because I didn't want to give him the chance to bring up some doubts, regardless of how good his intentions were. And, he respectfully followed our wishes. So, overall, despite knowing that the MaxCare Extended Service Plan was not necessary for us, my girlfriend and I still felt very pressured in to buying it, and she felt rather guilty for not doing so at the end of the episode.

Now, this is not to say that CarMax is evil by any means. As I mentioned above, the overall result was quite positive, and I know it's just part of the game of buying a car. But, it was interesting since I had never gone through the used car-buying process before.

Details of the MaxCare Extended Service Plan from CarMax

During the car buying process at CarMax, the Extended Service plan emerges as a very appealing option. On one hand, the initial cost of the plan is tacked on to the amount you are financing, making it so that you don't necessarily consider the full cost since you will be paying it off over time. Second, many people coming to CarMax are looking for relief from an unreliable car that they had to make a lot of costly repairs on, so the Extended Service Plan very much catches their eye.

Especially in these slightly elevated pressure buying situations, it's particularly good to know the facts about what you're buying in to. So, I wanted to spend a little bit of time in this post discussing what exactly the CarMax MaxCare Extended Service Plan entails, and what it does not!

How Much Does the MaxCare Extended Service Plan Cost?

At a high level, the CarMax Extended Service Plan is a smaller, specialized insurance policy in a car service plan wrapper. The costs of the service plan are summarized below:

You pay $1,000 at the time of purchase of the plan/your new car.
Then, each time you need to bring in your car for a repair, you pay a pre-selected deductible, ranging from $100-$500 per visit.

However, the thing that surprised me was that the specific details about the price of the plan and what is and is not covered is somewhat difficult to discern, especially during the car buying process where decisions are being made very quickly.

How the MaxCare Extended Service Plan is Presented and What is and is Not Covered by the Plan

Essentially, what happens is that you are handed over this wonderfully crafted brochure "describing" all of the details of the plan. But, instead of this brochure listing the specific details that I expected such as price of the plan and different deductible levels, etc, it basically seems to be designed to overwhelm the car buyer in to thinking that it covers EVERY POSSIBLE REPAIR THAT COULD EVER HAPPEN WITH THE CAR. This is done by listing out about a thousand or more parts of a car that are covered by the plan, as shown in the picture below:

The catch is that if you read through the listing of parts covered by the plan and then compare it to the back side of the brochure where the plan exclusions are shown, it quickly becomes clear that 90% of the repairs that you will most likely incur on a reliable used car are NOT covered by the service plan (i.e. - they are all listed in the exclusions section).

I've highlighted several things not covered by the service plan below:

Regular maintenance services described in your car's manufacturer manual. This includes major 30k and 60k mile services and other major component replacements described in your owner's manual.
Engine spark plugs and ignition wires.
Batteries, air conditioner refrigerant, engine coolant, drive belts.
Brake pads and shoes.
Suspension work, tires, wheels, catalytic converter, manual transmission work.
Painting, bumpers, alignment of body parts.
Repairs made to meet government emission standards.

I don't know about you all, but looking at the list above on what is EXCLUDED from the plan pretty much encompasses every single costly repair I've ever had on my 2004 Honda Accord in the 8 years I have driven the vehicle.

You can view complete details about what is covered by the plan by clicking here and what is NOT covered in the plan by clicking here.

Conclusions

Because of the large amount of exclusions from the MaxCare Extended Warranty Plan, we ultimately decided that it was not the best move for us. And, by sticking to our guns, we were able to resist the pressure from CarMax to buy the service plan and their higher-interest rate in-house financing. And in the end, my girlfriend walked out of CarMax an altogether satisfied customer and is happy in her new, dependable car.

How about you all? Have you ever purchased a used car? If so, did you ever consider CarMax?

Did CarMax or the other used car dealer try to pressure you in to obtaining their financing options or their extended warranty/service plans? Do you think these extended service plans are a good deal?

Share your experiences by commenting below!

***Photo courtesy of http://4.bp.blogspot.com/_5MzkJkgHQEI/TDSrlqyHJXI/AAAAAAAAA-A/WnHWj44Doe0/s320/probe.jpg

Best of Money Carnival #156 - May 21st, 2012 Edition

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Mon, 21 May 2012 02:00:00 PDT

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Welcome to My Personal Finance Journey! If you are new here, please read the "About" or "First-Time Visitor" pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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Click here to enter my free $76.18 giveaway for a chance to win 5% of My Personal Finance Journey blog income and give another 5% to a charity of your choosing! Deadline to enter is May 31st, 2012.

Welcome to the Best of Money Carnival (a weekly listing of the top 10 personal finance posts) – May 21st, 2012 Edition!

I hope you enjoy all of the posts I've selected for this week's edition – and then come back to visit My Personal Finance Journey on my non-carnival days too.

For this edition, we had ~70 articles submitted. Below are my choices for the Top 10 Personal Finance posts of the last couple of weeks (that were submitted properly of course) in order from 1 to 10. A big congrats to all of this week's winners!

1, Roshawn Watson presents 4 Ways To Reshape Your Views Regarding Money posted at Watson Inc. Perhaps one of the biggest ways to effect change financially speaking is to alter your belief system. Here are four ways to reshape your views regarding money.

2. FMF presents The Difference between Needs and Wants: Getting Spending Under Control posted at Free Money Finance. Achieving financial security is greatly dependent on our ability to make wise choices when it comes to spending money. Spending, not earning, is the key to financial security (though both are important, of course). And yet we live in a society where over-spending is almost the norm. The result for many people is a pile of debt and all the nasty struggles associated with it. It's certainly not the pathway to financial security.

3. Harri Pierce presents Lessons from living below the line posted at TotallyMoney. A one week experiment to see how difficult it was to eat for less than £1 per day and how it can affect the rest of your life

4. Jason presents Should You Buy a Car Through CarMax? posted at Work Save Live, saying "Rust buckets, over-sized purses, methods of transportation, and a means of showing worth and status. Maybe it's needless to say, but there isn't a topic I detest more. When I hear the word 'car' all I can think about are over-priced machines that have gone from performing a function to being status symbols."

5. Roger the Amateur Financier presents Advice for Students: What to Do With Your Summer posted at The Amateur Financier. A discussion directed towards students in high school and college, covering what they can spend their time doing in the summer in order to improve their finances and be in better shape economically.

6. Khaleef Crumbley presents 4 Reasons Why I Will Not File For Bankruptcy posted at Faithful With A Few. To file for bankruptcy is not an easy decision. Even though it has become more common, here are 4 reasons why KNS will never do it!

7. Ashley presents The Envelope System Works: Even on a 10 Year Old posted at Money Talks Coaching, saying "I've talked quite a bit about my frustration with my daughter and her lack of concern when it comes to money. She wouldn't save money to save her life."

8. Suba presents Should you buy Supplemental Unemployment Insurance posted at Broke Professionals. Unemployment is one of life's setbacks that can seriously damage a person's financial security. It can happen to anyone, even you.

9. YFS presents 10 Common Characteristics of Millionaires You Can Follow posted at Your Finances Simplified. Back in 2007, Forbes Magazine reported that all over the world there are a total of 946 billionaires, and according to Capegemini, a financial consultancy firm, in 2011 there are about 10 million millionaires. All of us probably have this dream of becoming millionaires ourselves, and sometimes we're left wondering how these once ordinary people manage to make it big.

10. Hank presents How A Little Preparation And One Question Saved Me Over $1,000 posted at Money Q&A, saying "I hate buying a new car, but a little preparation and one simple question he me save money buying a new car this time with a little preparation."

Well, that concludes this week's Best of Money Edition. To all participants - it was a pleasure reading your articles this week!

Please submit your posts to the next edition of the Best of Money Carnival using the carnival submission form. The next carnival (#157) will be hosted by 20's Finances and is scheduled for May 28th, 2012.

Also, If you'd like to host a future carnival, contact FMF asking for a slot.

$76.18 Giveaway - Community and Charity 10% Monthly Blog Income Give Back # 8 - May 2012 Edition

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Wed, 16 May 2012 19:58:46 PDT

The 10% give back giveaway fun rolls on for the month of May!

In case you missed the first seven editions of the 10% Blog Income Give Back, after doing some thinking at the beginning of October 2011 about what direction I want this blog to grow and evolve towards in the future, I decided that any income made from this blog would have more significance to me at a personal life values level if I knew that a portion were being given back to the following places:

1) The readers - Obviously, without you here to read my articles and interact with my ideas, there would be no blog in the first place (let alone blog income). As such, it is only fitting that you receive a portion of any blog income.
2) Charitable organizations - If you've read my blog before, you know that I'm a big believer in donating a portion of my money to charity. Each year, I donate between 5-10% of my income to the National Multiple Sclerosis Society as part of the Bike for MS fundraiser that I do. Beyond the good that is done by donating your money, getting used to contributing to charity is also a good practice to emulate the actions of affluent individuals (T. Harv Eker discusses this in his book, Secrets of the Millionaire Mind, which I would definitely recommend reading if you have a few hours).

Because of these considerations, I've decided that each month going forward, I'm going to give away 10% of my net (after-tax) blogging income/profit to My Personal Finance Journey readers (5%) and to charity (5%). Listed below is how the process will work:

After each calendar month passes, I'll tally up my net blog income and determine what Dollar value correlates to 10%.
I'll post the giveaway (similar to this post you're reading now), and you'll have approximately 2-3 weeks to enter.
Once the giveaway is over, a grand prize winner will be announced, and then I'll donate another 5% of my blog income to a charity. Once the giveaway entry window ends, I'll send out the money to the blog reader winner(s) and personally drop off the charity donation.
So far, I've been very happy with the success of the first 6 editions of the 10% income give back. Read on below for some of the details:

In October, $205 total was given away, with $100 being donated to the charity, GreenPeace.
In November, $201.40 total was given away, with $100 being donated to the charity, The Blue Ridge Area Food Bank. If you're interested, you can view the details of me going to drop off the check at the Food Bank by clicking here.
In December, $74.52 total was given away, with $38 given to Big Brothers Big Sisters of Central Blue Ridge. You can view the details of the donation drop by clicking here.
In January, $196 total was given away, with $96 given to the Sexual Assault Resource Agency. You can view the details of the donation drop by clicking here.
In February, $141.20 total was given away, with $70 given to the Blue Ridge Chapter of the National Multiple Sclerosis Society.
In March, $64.51 total was given away, with $30 given to the Blue Ridge Chapter of the National Multiple Sclerosis Society.
In April, $46.95 total was given away, with $25 given to the Blue Ridge Chapter of the National Multiple Sclerosis Society.

So, that's the overall flow of things and a brief recap of what's happened so far with the give back initiative. Now, let's get in to the specific details for this month's (May 2012) giveaway.

Details of May 2012 10% Blog Income Giveaway

$76.18 total blog income to give away - $38.18 to a My Personal Finance Journey reader and $38 to the National Multiple Sclerosis Society - Blue Ridge Chapter.

$38.18 in the form of one prize available to one reader as follows -

1) Grand Prize = $38.18 Amazon Gift Card or $38.18 cash via PayPal.

It's been very fulfilling developing a relationship with the local chapter of the National Multiple Sclerosis Society through the MS150 fundraising bike ride I do each year. Click here to see the details for the 2012 edition of the ride I'll be doing! I look forward to continuing to raise money for their efforts.

How to Enter the Giveaway - Deadline to Enter is Midnight, May 31st, 2012

Like last month, I've decided to use the RaffleCopter giveaway management tool to handle sign-up facilitation for the April giveaway, so simply go through the steps listed in the widget below to enter the running for the prize and accumulate entry points.

There is no limit to the amount of points you can earn. If you refer 10 subscribers – your name will have accumulated 170 entry points! Or, if you link to the giveaway more than once, you can accumulate those 7 entry points multiple times. You can also retweet the giveaway and/or share other My Personal Finance Journey articles via social media sites once per day. In the event of a tie, I will be using a random number generator to select the winner.

Important instructions: After you complete an entry method, make sure to click and fill out the "I Did This" or "Enter" button in the widget so that I have a record of your points.

a Rafflecopter giveaway

Remember, the deadline for entries will end at midnight on May 31st, 2012 (about 2 weeks from today - the start of the give back). Good luck to you all! Please contact me if you have any questions. After the deadline for entries passes, the winner (one with the most points accumulated) will be contacted via email to receive their prize.

How We Saved Big Bucks on Our Home Remodeling Project (And You Can Too!)

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Mon, 14 May 2012 07:53:17 PDT

The following is a guest post by fellow Yakezie participant, Kyle Taylor. Kyle is the editor of The Penny Hoarder, a daily blog with hundreds of weird and wacky tips on how to make/save extra money. Enjoy the post and make sure to stop by Kyle's site for more posts like this! - Jacob

How We Saved Big Bucks on Our Home Remodeling Project (And You Can Too!)

There's a timeless adage that reads: "If you want something done right, do it yourself." While I find that’s an adage that doesn't usually fail me, I was pretty sure we were in over our heads with this one.

You see, my significant other and I recently started buying small homes to rent out. We live in a part of Florida where the rental market is fairly strong, but the housing prices are still severely depressed. All of the homes we’ve bought have needed various levels of work, so to save money on maintenance and remodeling costs, we decided to take on some of the projects ourselves.

We had both done some small home repairs, but the thought of doing things like tiling and installing new kitchen cabinets seemed like an impossible mission. Still, the lure of saving thousands of dollars was all I needed to give it a try.

The process was trying, to say the least, but after blowing through our material budget the first day, engaging in a few shouting matches, and indulging in a quick cry after I hit my thumb with the hammer, we had finished. I’m not sure the shouting matches were entirely avoidable (it was stressful after all), but the exploding budget was something I wasn’t prepared to let happen again.

For the long-term homeowner or a new investment property owner, keeping your material costs in check can be one of the hardest and most lucrative steps you take. So, when project #2 started, I decided to get smart about it. Here are a few of the things that I did to save more than 40% on my material costs...

Craigslist is Your Best Friend

Craigslist is a net-based treasure trove smorgasbord abounding with do-it-yourself construction materials. Think of Craigslist as a modern-day version of yesteryear's newspaper classifieds section. When starting out on the site, search in specific terms. If shiny-chrome plumbing fixtures are on your mind, search for items of that verbiage exactly.

For significant building material savings, keep an open mind with what you find. For example, look hard at adjusting your design expectations if you find a deal that's almost too good to be true.

The savvy Craigslist shopper can find plenty of deals on refurbished or used items, such as cabinetry, as well. If you find something on Craigslist that doesn't fit the dimension or decor of your remodel, consider refurbishing it for a different use. An example would be this filing cabinet turned outdoor planter. Another is a claw-foot tub turned couch. Be creative!

(A word to the wise: be a safe Craigslist shopper. Bring along a partner when you head out to inspect and possibly buy a particular remodel item or construction material.)

Blowout and Going-Out-Of-Business Deals

The economy is still tough. Construction-related industries are struggling and prices are continually slashed. Many of the non Big-Box home retailers feature blowout sales on building products that have sat too long on warehouse shelves.

To find the best deals, contact and visit warehouses dealing in specific areas of home construction -- for instance, carpet warehouses, tile and flooring depots, plumbing warehouses, etc. Also, "Going out of Business" sales are a surefire way of finding great deals in a sour economy.

If you find a Deal, Purchase Extra!

If you find a deal on a building product that is truly too good to be true, make sure to stock up on enough quantity to allow for future repairs. For example, if you need exactly 100 square feet of floor tile, or 15 gallons of an unusual paint color, purchase 10% extra (110 square feet of tile; 16.5 gallons of paint).

As a do-it-yourselfer, you will most certainly make mistakes and you’ll be glad that you had the extras.

Do-it-yourself projects can be stressful, but by taking a few steps to keep the costs down, you’ll be surprised just how much you can save, not to mention how good it feels to have done it yourself. Just keep humming Frank Sinatra’s “I Did it My Way,” and you’ll have all the motivation you need to finish your project.

So, have you recently tackled any do-it-yourself projects? How’d it go? How much money do you predict you saved by doing it yourself vs hiring someone?

Share your experiences by commenting below!

***Photo courtesy of http://www.flickr.com/photos/nomadic_lass/5955527527/sizes/l/in/photostream/

Yakezie Blog Swap # 20 Roundup

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Sat, 05 May 2012 17:15:44 PDT

On Friday of this week (4-May-2012), My Personal Finance Journey participated in the 20th Yakezie Blog Swap (can you believe we're already on the 20th edition!? Crazy!). In this event, members and challengers of the Yakezie Personal Finance Network paired up and exchanged posts on a common topic.

This month, the topic selected for us all to write about was as follows relating to wedding spending. According to the Huffington Post, the average wedding cost in 2011 was $27,021. Looking at this statistic, why do you think people spend so much on weddings? Do you think it's worth the money? How do people afford weddings that cost $27k if the national savings rate is so bad? What are the long-term financial ramifications of an expensive wedding? What tips do you have to help people save money on weddings?

There were 10 bloggers who participated in the swap this time around. The various posts written are described below:

My Favorite Swapped Post

Emily from Evolving Personal Finance shares first-hand experiences from her wedding planning about why weddings cost so much, how people finance weddings, and also money saving tips on Edward Antrobus. I really liked how she placed on emphasis on the importance of prioritizing what is important to the bride and groom in the wedding in order to maximize value.

My Swap

Kathleen from Frugal Portland wrote about if a wedding is worth the down payment on a house on My Personal Finance Journey.

I wrote about why people spend so much on weddings and possible ways to save some money on Frugal Portland.

The Rest

Nick from Step Away from the Mall writes a fascinating article about his first-hand experiences with inviting 350-400 people to his wedding and how it can easily cost a ton of money on Daily Money Shot.

Jana from Daily Money Shot wrote about the various ways she saved money on her wedding on Step Away from the Mall.

Edward Antrobus wrote about why weddings cost so much these days and how he kept the cost of his wedding to $200 on Evolving Personal Finance.

eemusings from Musings of an Abstract Aucklander shares some thoughts about how she intends to save money on her upcoming wedding on Fiscal Pheonix.

Melissa from Fiscal Phoenix restores faith in the idea that a 250 person wedding can cost only $6,000 on Musings of an Abstract Aucklander.

Marissa from Thirty Six Months shares several tips to save money on a wedding on Call Me What You Want Even Cheap.

Call Me What You Want Even Cheap wrote about how weddings don't need to cost an arm and a leg on Thirty Six Months.

How about you all? Why do you think people spend so much money on weddings these days? Is it worth it? What tips do you know of that people have used to save some money?

Share your experiences by commenting below!

***Photo courtesy of http://www.public-domain-image.com/cache/people-public-domain-images-pictures/male-men-public-domain-images-pictures/man-reading-and-writing-at-table_w725_h544.jpg

Is a Wedding Worth the Down Payment on a House?

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Fri, 04 May 2012 05:50:11 PDT

The following is a guest post by fellow Yakezie participant, Kathleen, from Frugal Portland. It was written as part of a "Yakezie Blog Swap," an event where each month, participants from the Yakezie Personal Finance and Lifestyle Blogging Network pair up and write on a common topic and then swap posts with their partner.

This month, the topic selected for us all to write about was as follows relating to wedding spending. According to the Huffington Post, the average wedding cost in 2011 was $27,021. Looking at this statistic, why do you think people spend so much on weddings? Do you think it's worth the money? How do people afford weddings that cost $27k if the national savings rate is so bad? What are the long-term financial ramifications of an expensive wedding? What tips do you have to help people save money on weddings? You can read my swapped article on Kathleen's site today by clicking here.

Hi, I’m Kathleen, and I write about saving money, getting out of debt, and having fun in my city over at frugalportland.com. I’m excited to participate in this blog swap about whether a wedding is worth the same money as a down payment on a house!

Background

I am 30, and I have never been married. I’ve been in many weddings, and attended many more. I love weddings. My dream job is “professional wedding guest” -- can anyone make that happen?

A Wedding is the Biggest Party of Your Life

Here’s the thing. Too many people focus on a wedding and not enough people focus on a marriage. I get it. Weddings are like birthday parties only bigger! More impressive! And, you get to be the center of attention much more than at a birthday. Everyone has a birthday every year, but, in an ideal world, each couple has just one wedding. And, the bride feels like going out of her way to make her party great.

Keeping up with the Kardashians

The average cost of a wedding is somewhere around $28,000. To put that in perspective, my 2005 Toyota Corolla is worth about $7,000. So, the average wedding costs four Corollas. And no, you cannot drive home a wedding. In fact, the things you get after you’ve had your big party are limited to kitchen toys, a marriage license, and 489 tea lights.

In a wedding, as in all things, you compare yourself against your peers. Whether you are the first in your age group to marry, or you’re like me, and have been to more than 20 weddings, it’s darn near impossible not to compare. Just look at the social cues: a picture of the ring is the universal sign for “I’m engaged!” because women want to see how your ring compares to theirs. They’re happy for you, sure, but they also want to know if you “did better” than they did.

More shockingly, the four-Corolla price tag for this mystical “average” wedding does not include the ring or the honeymoon. The dress is the first surprise. I haven’t purchased a formal gown since my senior prom, so inflation might have happened a bit, but if I could buy a prom dress for under $200 why on earth is a $2000 wedding dress considered a bargain?

All ranting aside (I don’t want this to become the ravings of an over 30, never been married bitter bridesmaid), it’s a bad idea to go into debt for your wedding. The success rate of marriage is so low, partly because two people spend x amount of time developing an intimate relationship and at least x amount of time planning a party. The wedding is the party, the marriage is forever. The more time you spend setting expectations and discussing what married life means to you, the less your color scheme matters.

Focus on a marriage and not a wedding. Your friends and family love you, and will have fun celebrating the beginning of the rest of your lives together. Don’t get caught up in the details. Have a blast. Love your spouse. Don’t marry someone until you’re absolutely, 100% sure you want to be old with them.

How about you all? What are your thoughts about the current levels of wedding spending? Do you think people are spending too much on this one-day event, or that it is worth the money?

What tips do you have to save money for weddings?

Share your experiences by commenting below!

***Photo courtesy of http://farm4.static.flickr.com/3223/2760437873_13e50463fa.jpg

Bringing Down the Cost of Delivery

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Wed, 16 May 2012 07:47:44 PDT

The following is a sponsored guest post by Amar Patel of uShip UK. Enjoy!

Bringing Down the Cost of Delivery

A major purchase can be a big strain on your budget, but often, by making the internet your first port of call, you can save a fortune.

With online auction sites like eBay or Craigslist, you have access to thousands of items that match your needs. But often, with the more expensive or larger items, they’re only available for ‘pick-up only’ which can be a major problem if you find your dream sofa at an extremely affordable price but is too big to fit in your car or even worse, if the seller lives in Austin and you live in New York!

Before you had two options:

1. Pay for one of the ‘big-boy’ couriers to transport the item, which could end up being more expensive than the cost of the item itself, or

2. Settle for something else that’s closer to you, or go to a high street retailer and a pay a higher cost for the item.

Luckily for you bargain hunters there’s now a third option….

Online shipping platforms such like uShip are helping regular consumers save large amounts of money on the cost of shipping. With their reserve auction format and load sharing options, couriers bid for your shipment, meaning that the cost of shipping for gets lower and lower. It works because, instead of just transporting your item, they will transport many goods on the same route, passing the cost saving on to you.

For your added peace of mind, uShip uses a feedback system, so that if you book through uShip, you can view feedback and reviews of the transport providers, meaning that you can make a safe and informed choice.

Using online auctions or classified sites in partnership with couriers on uShip looking for courier jobs can help you realize huge savings, find good quality items, and increase the number of items that you can consider.

So now, if your sofa suddenly collapses or computer explodes, you can choose a new one and have it delivered without breaking the bank!

How about you all? Do you worry much about the transporting/shipping costs when you order online? Do a lot of items you're considering purchasing require pick-up only? Have you ever used a delivery service for items that are pick-up only but are too far of a drive?

Share your experiences by commenting below!

***Photo courtesy of http://nopsa.hiit.fi/pmg/viewer/images/photo_5349064598_7cb8115bef_t.jpg

Carnival of Personal Finance #359 - Most Expensive Bottles of Wine - April 30th, 2012 Edition

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Mon, 30 Apr 2012 02:00:05 PDT

Click here to enter my free $46.95 giveaway for a chance to win 5% of My Personal Finance Journey blog income and give another 5% to a charity of your choosing! Deadline to enter is April 30th, 2012 (today at midnight Eastern Time!).

Welcome to this week's Carnival of Personal Finance, a weekly listing of the top personal finance articles around the blogosphere in the following categories - taxes, money management, investing, career, debt, frugality, credit, economy, finance, real estate, saving, and budgeting.

The theme for this week's carnival is a listing of 5 of the most expensive bottles of wine ever sold in the world! I hope you enjoy the posts and that you can stop by My Personal Finance Journey on my non-carnival days as well!

Listed below are this week's top 5 editor's picks. Congrats to the five winners! Some truly great articles here!

1. Our #1 pick of this week is by Darrow Kirkpatrick from Can I Retire Yet?, who presents Is the 4% Safe Withdrawal Rate Obsolete?, and says, "The era of the simple 4% Safe Withdrawal Rule in retirement may be drawing to a close. We are now hearing from some respected voices that it is rigid and simplistic — relying too much on historical data, and not enough on current financial conditions. Most alarmingly, we are being told that it might be too generous for these extreme economic times, that the actual safe withdrawal rate for today's retirees could be less than half of the traditional 4% rate."

Jacob's Comments - In this article, Darrow expands on the ongoing analysis by others such as Rob Bennett, Todd Tressider, Robert Shiller, and Wade Pfau concerning whether and/or how long term market price valuations should be taken in to consideration to make investing decisions. In this case, Darrow examines whether or not a 4% withdrawal rate during retirement is applicable in today's environment. This is truly a very important topic for everyone, and this article definitely warrants a thorough read!

2. The #2 pick of this week is by Sean from One Smart Dollar, who presents What is the Best Day to Buy Specific Items, and says, "Did you know that you can save money just be purchasing items on a specific day of the week? "

Jacob's Comments - This article examines the very interesting subject of price variations involved in purchases in the following categories across various days of the week: gas, hotel rooms, airfare, cars, clothing, and eating out. To me, the most surprising find was that Wednesday morning is the cheapest time to buy airline tickets.

3. Our #3 pick for this week's Carnival is by FamilyMoneyValues from Family Money Values, who presents Parents As Resources for Adult Children, and says, "Now that I am the parent of adult children, I am beginning to understand at least some of the reasons Mom and Dad offered what they did. Here are four things I wish I hadn’t been so stubborn about."

Jacob's Comments - There are so many ways that parents can give their children a head start financially. However, the children have to be ready to accept that help. This article highlights several very interesting first hand experiences regarding this issue.

4. Our #4 pick for this week's Carnival is by Barbara Friedberg from Barbara Friedberg Personal Finance, who presents Why I Don't Invest in Individual Stocks Anymore, and says, "As anyone in the investing field understands, no matter how many winners one holds in a portfolio, there are bound to be a few losers. Learn about my personal investing voyage."

Jacob's Comments - When I first started out investing, I too bought and sold individual stocks. I had some winners, but overall, did not make any money above the market return. After reading about investing more, I now follow a passive investing approach using index mutual funds and ETFs. Barb's journey in this article is somewhat similar to mine, and was quite interested to read!

5. Our #5 pick for this week's Carnival is by Peter from Bible Money Matters, who presents Paying Down Debt with Gazelle Intensity? How Much of an Emergency Fund Do You Need?, and says, "I am a big fan of Dave Ramsey, and as we pay down our debt, we follow a hybrid approach to his debt snowball method. Followers of Dave Ramsey know that another part of his debt reduction plan is to first save $1,000 in an emergency fund before beginning aggressive debt reduction. Yet is this good advice for everyone? Should some families have a larger emergency fund? What is the right amount for your family to set aside in an emergency fund?"

Jacob's Comments - Dave Ramsey is a significant force in the personal finance community. I like his advice because it provides a simple guide and empowers people to take action quickly to get rid of debt. This article analyzes how much emergency fund a person needs. Personally, I think that most people need a larger emergency fund than the $1000 recommended by Dave, but $1000 is a good starting place for sure!

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1865 Chateau Lafite: $27,000

This cheap ($27,000 per 750 mL) wine is an amazing ~150 years old! I can't even begin to imagine what tasting a wine from the 1800's would taste like! haha

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And, listed below are the rest of this week's great article submissions.

Squeezer from Personal Finance Success presents Why investing in dividend paying stocks is a smart move., and says, "There are several different ways you can grow your passive income. One method includes investing in dividend paying stocks. Dividends are when a company shares its profit with the shareholders."

Adam from Magical Penny presents The Reality of Self Employment, and says, "Strangely enough, I had not intended to become an entrepreneur. But here's how I did it..."

Cl from TotallyMoney presents What will a double-dip recession mean for you?, and says, "What the British double dip recession means for you."

Martin from Studenomics presents How to Switch Bank Accounts, and says, "How you can switch bank accounts in a few minutes."

Mike from Experiglot presents Do You Need to be An Accountant to Understand Personal Finance?, and says, "We explain why finance isn't just for accountants."

Mike from Do Not Wait presents Saving For Retirement With Your First Apprenticeship, and says, "Why you should start saving money right off the bat."

Mike from The Financial Blogger presents April Net Worth Report +012% – Never Spend Money You Haven’t Earned Yet, and says, "A look at where my money has gone."

Green Panda from Green Panda Treehouse presents 3 Reasons Why You Need a Credit Card Right Now!, and says, "The case for signing up for a credit card."

Div Guy from The Dividend Guy Blog presents Can Dividends Save The Economy?, and says, "Are you investing in dividends?"

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1775 Massandra: $43,500

If you're like any other normal person, you've probably always wondered what wine tasted like that was made from grapes the year that the US Declaration of Independence was signed. And, for a cool $43,500, you can have that privilege!

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Rob from Dough Roller presents What's New for IRA Retirement Accounts, and says, "Here are the updates for 2012."

J.P. from Novel Investor presents Shorting A Stock: Profiting On The Way Down, and says, "Everyone and their brother wants the market to go up, not the short seller. Shorting a stock is not the popular choice, but there are profits in going against the crowd."

Jeff Rose from Good Financial Cents presents Best Jobs for Retirees After Retiring, and says, "For those who made it to the age of retirement and have no real desire to actually quit being involved, there are a multitude of job options available to keep going strong in your later years."

Glen Craig from Free From Broke presents Think Twice Before Borrowing from Your 401k, and says, "Some people talk about a 401(k) loan like it's an easy option. But, there is a lot of risk, and borrowing from your 401k is something you need to carefully consider.

Michelle from See Debt Run presents I Ain’t Sayin’ She’s a Gold Digger, and says, "I discover an entry in my kid's notebook where he writes "My Mom Loves Money!" While true, I wonder what prompted him to write it, and ponder what it really means to be rich."

Ryan Yates from Deliver Away Debt presents Budgets Are For Poor People - Right?, and says, "Budgets aren’t just for people who might have trouble earning money, they’re for anyone who has ever been involved in spending money. But they won't do you any good if you don't respect their necessity. No matter what your income level, if you aren’t serious about gaining control of your finances, having a budget will be of little help."

Boomer from Boomer & Echo presents Preparing For Retirement: Some Things To Consider When You're Turning 50, and says, "There are plenty of reasons why people put off planning for their retirement. The future has a way of arriving faster than we ever thought. No matter how well you are doing today, making sure you have the financial resources you will need for a secure future takes careful planning."

Philip from PT Money Personal Finance presents 6 Common Credit Report Errors, and says, "Discusses PT's personal experience with credit reports as well as other errors that commonly occur in them."

Nicole from Nicole and Maggie: Grumpy Rumblings of the Untenured presents Freelancing: Thoughts on Scalzi's you're not fooling anyone, and says, "Nicole and Maggie discuss freelancing as a second job and why they have decided pursuing secondary employment is not really worth their time."

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1947 Château Cheval Blanc: $304,375

This wine, obtained for the astronomical price of $300,000 per bottle, is considered to be the greatest Bordeaux wine of all time! Well worth the price! :)

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Justin from The Family Finances presents The Mini-Max Rule, and says, "The "mini-max" rule is pretty basic yet explains the reasoning behind almost all our decisions. We tend to make decisions we think will minimize our cost and maximize our benefit"

Everything Finance from Everything Finance Blog presents Stay at Home Parents. . .Denied!, and says, "I recently read a US News Article about how the stay at home parent must ask the breadwinner for permission before opening a charge account. What??? Yes, even in the year 2012 this is true. The article sheds light on the Federal Reserve’s decision: No paycheck, no credit card."

Robert from The College Investor presents Invest Simply! Unless You Are Getting a Degree in Stock Picking, and says, "Everyone could be lucky once and pick a good stock. But to do this systematically requires more than luck. I think that picking more often than not the right stocks, is very hard work, very competitive and without exceptional talents, impossible. I’m not one of the lucky ones. Here is what I do instead."

Andy from Saving to Invest presents Buying a Used Car: Unnecessary Hassle or Financially-Savvy?, and says, "But is buying a used car instead a hassle or a panacea? Like anything financial, it depends…."

Teacher Man from My University Money presents How To Use Your Liberal Arts Degree To Get a Government Job, and says, "I have been someone negative about the job prospects out there for people like me with a liberal arts degree before. While it is still not what I recommend for most people coming out of high school, it can be a valuable tool in your career tool belt if leveraged correctly."

FMF from Free Money Finance.com presents The Two Ways To Track Financial Success, and says, "How do you know if you're reaching your financial goals or if you're making financial progress? And what can you do to get to where you want to be at a faster rate? These questions get to the heart of one simple matter: you need to keep track of your finances by calculating two simple measures on a regular basis."

Miss T. from Prairie Eco Thrifter presents How to Choose an Ethical/Green Financial Planner, and says, "If you feel that you need some guidance in choosing the right ethical financial products, a financial planner can help you to select ethical funds that match your criteria and manage them for you. As far as ethical products are concerned though, not all financial planners are equal. Many financial planners are marketing themselves as having ‘green’ credentials but this does not automatically mean that they have enough knowledge of ethical finance to provide the guidance that you are looking for so don’t just take their word for it – go ahead and delve a bit deeper to see how much expertise they actually have."

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1907 Heidsieck: $275,000

This wine was scheduled to be delivered to the Russian Imperial Family in the early 1900's, but was sadly lost in a shipwreck. Fortunately, it was discovered by a diver, causing the price to be jacked up considerably! Finder's keepers! haha

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PK from Don't Quit Your Day Job... presents Predicting S&P 500 Closing Prices – April 2012 Edition, and says, "If you don't trade options, are they still useful? Well, anything which gives constant quotes is useful as an indicator. Here's an example of using options pricing to predict the movements of the S&P 500 over the next 8 months!"

Betty @ Control Your Cash from Control Your Cash presents Nothing is your fault or, student loans are killing our economy part CXXV, and says, "Everyone's pissing away their money on a useless college degree. Even the President."

Grand Per Month from Grand Per Month presents Does Your Side Business Need Insurance?, and says, "We have been looking at various ways to make extra money, some of which could develop into full-time businesses such as cutting grass or cleaning houses. Both of these services could lead to enough business such that you would have to hire employees. You are also working at various locations and on the property of many clients. One way to protect yourself and your personal assets is to form a limited liability corporation, but the other is to make sure that you have the proper insurance coverage."

Kacie from Sense To Save presents Our plan for maxing out our IRAs this year, and says, "It's going to take a lot for us to contribute $10k to our IRAs this year. We're automatically contributing some, and we have a plan for making up the rest."

Clint from Accumulating Money presents 5 Worst Pieces of Advice for Raising Your Credit Score, and says, "For those who are currently striving to raise their credit score, it is important to get good advice. Moving forward with certain activities – even though they may appear to make sense – could end up backfiring in the long run and cause your overall score to drop."

Earth and Money from Earth and Money presents Planning a Green Frugal Wedding – Food, and says, "Being either frugal or environmentally responsible when it comes to weddings often requires you to challenge the status quo or the established wedding traditions, and food is no exception when it comes to this."

Christopher from This That and The MBA presents Would you work for free?, and says, "Today more than ever we rely on volunteers to fill a void that we just cannot afford to pay a person to do. I have been a volunteer for many years and the past few weeks we have had Earth Day and National Volunteer week. I think it is appropriate to recognize all the work that they do."

Mr. Money from Smart on Money presents Are You Letting Your Kids Ruin Your Retirement, and says, "In many cases, helping your kids out occasionally with their finances won’t bankrupt you, or even put your retirement at risk. Unfortunately, though, a pattern of poor financial decisions from your children can result in a situation that eventually puts your finances at risk. Even some items of financial responsibility, such as paying for college, can leave your retirement plans in ruins."

eemusings from Musings of an Abstract Aucklander presents How to reclaim your work mojo, and says, "Stuck in a work rut? Here's how to find your groove again..."

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1787 Chateau Lafite: $160,000

This bottle of Lafite was part of Thomas Jefferson's wine collection. Unfortunately, the wine is no longer drinkable, but since it bears the President's initials, the price is still rather palatable!

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Ray from Squirrelers presents Email and Job Searching, and says, "Communication is vital to success on the job. Thus, shouldn't it be important to communicate well when trying to find a job? Given that email is often a step in the hiring process, it is important to avoid mistakes. This post discusses how email can play a role in your job searching success and ultimately income generation."

Jason from One Money Design presents Study Shows Following Your Passion Leads to Greater Success, and says, "If you follow your passion the money is likely to follow. A recent study proved this to be the case.

Well, that concludes this week's edition of the Carnival of Personal Finance! To all of this week's participants - it was an honor to be able to read and get involved with such high quality articles! Please remember to link back to this post if your article was included here and to promote via social media when possible.

Next week's carnival (#360) will be hosted by Money Talks Coaching, and is scheduled to take place on May 7th, 2012. Be sure to submit your articles for next week's edition, using the following handy submission form.

Also, if you're interested in hosting a future edition of the Carnival of Personal Finance, you can apply using this form.

***Photo courtesy of http://nopsa.hiit.fi/pmg/viewer/images/photo_2857498721_0910907411_t.jpg
***Expensive wine bottle stats courtesy of http://www.huffingtonpost.com/2011/11/10/most-expensive-wine_n_1084988.html#s463410&title=1865_Chateau_Lafite

The Credit Card Dilemma: Prepaid or Not Prepaid?

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Fri, 27 Apr 2012 12:38:11 PDT

The Credit Card Dilemma: Prepaid or Not Prepaid?

If you’re asking yourself this question, it is likely that you have had a bad credit run in the past, or that you don’t qualify for credit because you’ve never had any. Prepaid credit cards offer a way for you to break the cycle of having no credit or bad credit by providing a way for you to build credit and earn the trust of your lending institution. And, because they are prepaid, they eliminate risk for the card issuer.

First, it is important to verify whether you are getting a prepaid credit card or a prepaid debit card. It may seem that the difference is all in the semantics, but prepaid credit cards help you build credit where debit cards do not. If your primary goal is to improve your financial standing, this could be a critical difference.

The Pros of Prepaid Credit Cards

In terms of the process of using it, having a prepaid credit card is just as convenient as having a regular credit card. You can get a card with any of the major issuers such as Visa or Mastercard, and you can use your card both in person and online. The only person who knows it is prepaid is you.

You may be asking yourself why not skip the trouble and just get a debit card. Prepaid credit cards may not operate on borrowed money, but they are linked to a lending institution, which gives them the opportunity to monitor your spending and payment habits. It also gives you the chance to prove that you are a credit-worthy consumer, which is why prepaid is a good way to build a path to a regular credit card.

Prepaid cards are also useful if you are trying to budget your money because they only allow you to spend what you have. If you want to break away from the “buy now, pay later” spending habit that leads to debt, a prepaid card can help you curb impulse shopping.

The Cons of Prepaid Credit Cards

Prepaid credit cards usually have more fees than other kinds of cards, so you’ll find that it is a more expensive way to put your money to use. In addition to an initial sign-on fee, you’ll also have to pay transaction fees every time you use the card, a fee for reloading your card, and a monthly fee for account administration. And, these are just the tip of the iceberg. Considering that you’re paying all of these fees to use your own money, having a prepaid card may not be worth the expense to some.

Also, what you initially count as an advantage can quickly become an inconvenience with prepaid cards. While having a set amount of money available to spend can help you budget effectively, it can also make for an inconvenient -- or worse, embarrassing -- situation when you have reached that limit. The balance for many prepaid cards cannot easily be checked because they don’t operate like normal credit cards or debit cards. So, if you’re heading out to make a big purchase, it is best to check your balance before you leave home.

Conclusion

Whether you decide to get a prepaid card or not depends largely on your financial goals and your current financial situation. Like any card, it will have both advantages and disadvantages, but you can minimize the cons if you read the fine print.

How about you all? Have you ever used a prepaid credit or debit card? If so, did you incur a lot of expenses in order to use it?

If not, why have you steered clear of prepaid cards?

Share your experiences by commenting below!

***Photo courtesy of http://farm4.static.flickr.com/3050/2919245129_276a62a19d.jpg

What's Your Magic Number?

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Fri, 27 Apr 2012 06:36:37 PDT

Click here to enter my free $46.95 giveaway for a chance to win 5% of My Personal Finance Journey blog income and give another 5% to a charity of your choosing! Deadline to enter is April 30th, 2012.

Recently, I was exposed to an interesting new online personal finance savings and life goals realization tool, called MagicNumber.com. And today, I wanted to share a my experiences in trying it out with you all.

What is Magic Number?

At first glance at the Magic Number home page, it appears that (as the name implies) the site specializes in helping you figure the amount of money you'll need to make work optional in order to live the lifestyle that you want at a specific target age. However, I soon found out that Magic Number offered much more than this. In fact, I think MagicNumber.com can best be categorized as a general life goals realization/execution tool, with a focus on personal finance.

Overall, Magic Number has two primary features:

Guides you through calculating the amount of money you need to make working optional at a specific target age and then allows you to set goals to reach this target.
Facilitates execution of other general life goals that are important to you at a core values level.

How Does MagicNumber.com Work?

Listed below is the overall flow of how Magic Number works:

Upon landing on the MagicNumber.com homepage, you enter 1) the age at which you want work to become optional, and 2) your email address.

For me, I set this age as 50 years old.

Next, you enter what values are important to you in life.

For example, standard of living, career vs. family focused, active vs. relaxed lifestyle, social vs alone time.

Then, you are taken through a total of 8 screens to help you figure out your Magic Number, or the amount of money you need to have saved up to live the lifestyle of your dreams by the age you entered on the homepage.

The 8 screens that you are taken through are summarized below:

Dream home price
Dream transportation purchase price
Amount of money you'll spend per month for the lifestyle you dream of
Amount you want to spend per month on hobbies
Amount you want to spend per year on vacations
Amount you want to donate per year to charity
Amount you want to have leftover to will to others once you die
Your current net worth

Each screen features a simple slider toolbar to adjust the amount of money you think you'll need for each category. An example of the lifestyle screen is shown below.
The idea here is to get a very general/quick gauge of the amount of money that will be required for a certain lifestyle.
The Magic Number that was generated for my inputs was that I needed to have ~$9 million by age 50.

After generating your specific Magic Number, the system will display a screen similar to the one below, detailing the daily, monthly, and yearly savings goals that are needed in order to obtain your Magic Number amount by your set target age.

Once the system generates these numbers, I'd then recommend doing a "reality check" to make sure that your savings goal is achievable given your current salary and financial condition.
If these two things don't align, you can then go back and re-evaluate your Magic Number if needed. This was the case for me, since as you can see below, the savings target of $11,000 per month is not possible given my current graduate school salary.

Next, the Magic Number system will take you to a screen similar to the one shown below where you can enter other general life goals that you have based on your core life values. You'll also specify target achievement dates for these goals.

For me, this was fairly similar to the exercise I go through twice per year where I evaluate my life values and life dreams.

After specifying each life goal, my favorite feature of the MagicNumber tool comes in to play. Important Note: Using this feature involves a fee. See below for more details.

What I mean by this is that Magic Number then helps you break down an execution plan for your life goal by (after starting with your long term goal) first setting 3 year goals, then 1 year goals, then 90 day goals, then immediate actions you can take. You also specify achievement dates for these as well.
An example of this feature's online interface is shown below.
For me, this is a very powerful feature since many times (even though I do a goals review twice a year), I sometimes forget during the "day-to-day hustle and bustle" about the interim steps I can be taking to achieve my long term life goals.
After entering each interim goal and the target date for each respective action approaches, you'll then also see alerts for these "upcoming actions" in your account dashboard interface.

How Much Does Magic Number Cost to Use?

Certain parts of MagicNumber.com are free to use, and other portions are not. For example, you can generate your Magic Number savings goal and enter your other general life goals in to the system for free.

However, in order to use the goal achievement breakdown and tracking tool shown in the last picture above, there is either a monthly or yearly fee, as described below:

$95.67 per year
Or, $9.97 per month

What's the Bottom Line?

Overall, Magic Number is a fun and easy-to-use online tool (everything is a very visually intuitive) to help an individual 1) determine how much money will be needed to achieve the lifestyle of their dreams and 2) to realize other general core life values goals through continuous monitoring and tracking of interim action steps.

As such, Magic Number if well-suited for people that have specific goals they want to achieve, but often find that they arrive at the end of the year without having made significant progress since they got busy with everyday life.

How about you all? Have you ever heard of or tried out MagicNumber.com? If so, what did you think of it?

If not, how do you track your overall life goals and how frequently do you review your progress?

Share your experiences by commenting below!

Important Note: This review was sponsored by MagicNumber.com. However, the opinions and perspectives represent my honest review of the product. Thanks for reading - Jacob

***Photo courtesy of http://farm4.static.flickr.com/3032/2574833687_30cbd81acd.jpg

Home Damage Caused by Vermin and How to Remedy the Sitauation

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Fri, 04 May 2012 13:37:21 PDT

The following is a guest post on behalf of John Lewis Insurance, which offers a range of insurance products selected by the John Lewis Partnership. These include home, travel, pet, wedding, event, and car insurance and life cover. You can visit www.johnlewis-insurance.com/home for further information. Enjoy!

Home Damage Caused by Vermin and How to Remedy the Situation

Little black droppings on your kitchen surface are a bad start to anyone's day, but the worse is yet to come. If you find tell-tale signs of mice in your home, you could find you are just at the beginning of a larger vermin problem.

Common house vermin includes mice, rats, cockroaches, fleas, bedbugs and woodworm. It's not nice to think about creepy crawlies living in your home, but if you don't address vermin issues quickly, you may find that things get out of control.

How Can I Tell if I Have Vermin in My Home?

Each vermin leaves a different trace when it's nesting in your home, but some signs include droppings, bad smells or damage to your property. You may even see the vermin yourself, which is perhaps the most unmistakable proof of vermin in your home.

What Damage Will Vermin Cause in My Home?

Imagine a very dirty, smelly, disrespectful lodger moving into your home, who then invites all their equally dirty, smelly, disrespectful friends and family to stay - that's what having vermin in the house can be like. Suddenly your food isn't safe, your property is damaged and these unwanted house guests don't seem to be leaving.

Common Damage Caused by Vermin Is:

Mice: chewing through wires, leaving droppings which stain, chewing through wood, eating food

Rats: carry disease, chewing through wires and contents of your home

Cockroaches: carry disease and spread germs

Bedbugs: biting and creating an itchy rash whilst you sleep

Woodworm: damage wooden furniture

What Can I Do About Vermin in My Home?

You should seek professional help from vermin control and from your home insurance provider if you have vermin in your home. Not many people realise that your home insurance plan can also help you remove vermin from your home. Before you contact a specialist to solve your vermin problem, you should contact your insurance provider in case they have an approved company you should use. They may be able to advise you on the best cause of action to take if the type of vermin is covered by your home insurance policy.

How Home Insurance Can Help

Home insurance can cover certain types of vermin, which might protect you financially against removing the vermin and recovering damage they cause. Your home insurance might not cover all types of vermin, however, so you should check with your provider to ensure you are fully covered.

Having vermin in your home can be a traumatic and upsetting experience; your home should be a haven for you and your family - not for unwanted house guests! With professional help and good home insurance, you should be able to reduce damage and resolve the vermin problem swiftly.

How about you all? Have you ever had a pest infestation in your home? If so, what damage did it cause? Did you home insurance cover the removal?

Share your experiences by commenting below!

***Photo courtesy of http://s0.geograph.org.uk/geophotos/02/66/90/2669099_6db9bac5.jpg

Double Glazing Your Home Windows - Financial and Security Benefits

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Tue, 08 May 2012 13:57:09 PDT

The following is a guest post on behalf of John Lewis Insurance, which offers a range of insurance products selected by the John Lewis Partnership. These include Home, Travel, Pet, Wedding, Event and Car Insurance and Life Cover. You can can visit JohnLewis-Insurance.com for further information. Enjoy!

Double Glazing Your Home Windows - Financial and Security Benefits

Increase home security with double glazing in your home and conservatory. Double glazing is fantastic for heat and noise insulation - but not many people realise there can be added security benefits to double glazing too.

Home security is understandably a big concern for home owners. Whether it's opportunist thieves or a planned robbery, windows and doors are easy targets for thefts from the home. Windows are often a weak point in a home's security system, as the windows necessarily have to open and close; whilst an open window brings a welcome breeze of fresh air, you may also be welcoming burglars into your home with an open or unsecured window.

Some security factors you may want to consider when it comes to your windows include:

Double glazing: by fitting recognized, quality assured double glazing you may reduce the risk of home theft. Newly fitted, secure windows may be recognized by your home insurance company and help keep your insurance premium low.
Opening mechanism: vulnerable windows, such as those on the ground floor or above an easily accessible flat roof, should have limited opening mechanism. You can choose windows which only open a fractional amount, whilst still letting the air in, so as not to make life easy for burglars.
Locking mechanism: a secure, modern locking system is essential. You can have an easy locking device, which locks at the push of a button, but requires a key to open. Do not have all your windows in your home fitted with the same lock - as that makes for easy opening! You should also keep all window keys out of sight from the outside of your home.
Breaking point: double glazed, anti-theft windows will usually resist breaking more easily than older windows. All a thief needs to do is put a foot through an old window to gain access to your property. Once they have access through the window, they would be able to open the door to their accomplices.

By securing your home with new double glazing in your windows and conservatories, you will be taking active steps to preventing home burglary.

How about you all? Have you ever had any problems with theft in your home? What was the cause of the break in? Did your home insurance cover the damage and/or replace anything that was taken?

Share your experiences by commenting below!

***Photo courtesy of http://s0.geograph.org.uk/photos/88/74/887452_58db226d.jpg

Meeting Your Financial Obligations Despite Poor Credit Using Bad Credit Loans

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Sat, 05 May 2012 11:48:36 PDT

The following is a guest post sponsored by BadCreditLoans.com. Enjoy!

Meeting Your Financial Obligations Despite Poor Credit Using Bad Credit Loans

It is a difficult challenge to make ends meet when you have poor credit. Fewer lenders are likely to give you the money that you need, and this will make it harder for you to get the money you need when you need it. You likely have many financial obligations that must be met every month. It is important to try and repair your credit rating and still pay the bills.

Pay Bills on Time

The best way to keep your credit in good standing or improve your credit is by making payments on time. If you start to fall behind in your payments, you could be sent to collections. When that process begins, you will likely be reported to the credit bureaus. This means that your credit score will go down, and you will have fewer opportunities to get the money that you need.

How to Meet Your Obligations

The best way to meet your obligations is by detailing exactly when all of your monthly payments are due. This will give you a strategy to pay everything on time. You can then make your income match your payment schedule. You need to be diligent and only pay what you need to according to the schedule. If you do not follow the schedule, you will have difficulty making the next set of payments. You may also find that this schedule may be difficult to pull off each month. If that is the case, you will need to play around with the payments periods. Many companies will offer you a grace period. You should check with the companies that you do business with to see the exact date that the bill is due before you are actually overdue. This may help you to meet your obligations with less stress.

Find More Income

Many people have discovered that the key to meeting their financial obligations is by finding some extra employment. You can do many things online that will help you to get more money each month. Many people have discovered the power of the internet to make extra cash. Online auction sites have really helped make people the money that they need. All that you need to do is sign-up and start selling. Some people have also found that they have some unique skills. People are creating homemade items and selling them online. Other people have discovered a love of freelance writing. This can be a profitable experience if you have the knack that it takes to write well. You can also put your skills onto an online marketplace. Many people are looking for people to do work around their home. Think about the skills that you can perform for other people. You may be able to do some painting, cleaning, or lawn mowing jobs.

Take Out a Loan

Still other people will take out a personal loan to help with the current financial problems. Even if you have bad credit, you can go to badcreditloans.com to apply for a personal loan. You may be able to secure some cash to help you get through your troubled time. Remember that all personal loans must be repaid. It is important to learn all that you can about the loan before you take it out.

Be a Wise Consumer

The final way to meet your obligations is by being a wise consumer. Look to purchase things as inexpensively as possible. Many stores offer generic items that are very similar. You also need to try and only buy what you need, rather than buying everything that you simply want.

How about you all? What key thing do you do each month to ensure that you meet your monthly obligations? Have you ever had trouble getting a loan when you needed one?

Share your experiences by commenting below!

***Photo courtesy of http://s0.geograph.org.uk/geophotos/02/44/30/2443013_dc85e2f0.jpg

7 Business Startup Lessons

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Wed, 25 Apr 2012 05:00:04 PDT

Click here to enter my free $46.95 giveaway for a chance to win 5% of My Personal Finance Journey blog income and give another 5% to a charity of your choosing! Deadline to enter is April 30th, 2012.

The following is a guest post by Darrow Kirkpatrick, a software engineer, author, and investor who achieved financial independence and retired early at age 50. Darrow now writes regularly on saving, investing, and retiring sooner at Can I Retire Yet?

7 Business Startup Lessons

Starting your own new business, or getting in on the ground floor of one, is a proven path to building wealth. Why? Because owning a business eliminates the middlemen between you and profits, gives you numerous tax deductions and credits, and allows you to leverage other people's time and money.

But, owning a business, though a proven and potentially fast track to wealth, is far from risk free. According to the U.S. Small Business Administration, over 50% of small businesses will fail in their first five years! But, what if you could learn from somebody else's mistakes to substantially reduce your own startup risk? Well, you can begin right now….

I started or participated in 5 different small businesses over my 25-year career in software engineering, and I learned from a lot of mistakes! But, ultimately, I was successful: I became financially independent and retired early. Now, I do whatever I want each day, without worrying about a paycheck.

I'd like to share with you here some of my business startup lessons learned, so you can fast-track your own success. I hope you can learn from my mistakes, so you don't have to repeat them:

1. Make sure there's a market. Do everything possible at the start of your business to ensure there is a market for what you are selling, whether it be information, services, or widgets. This is why competition is generally a good thing. It assures you that customers exist. If your concept is totally new, or substantially different from the competition, then put some effort into quick, cheap tests to prove your idea has appeal. One of the best ways to test is to offer a small, streamlined, or prototype version for cheap or free. Sites like eBay, Craigslist, and Fiverr.com make this easy. Keep testing different ideas until you find the one that people will spend a few dollars on, or at least trade for their email address.

2. Focus on customers, not technology. It's fun and exciting to learn the latest tools, and be a part of the latest technology buzz. But, trust me, that's a backwards way to build a business. (Unless your business involves selling to other technologists!) Your customers don't care much about technology. They have real-world problems to solve and want practical solutions. Whether those solutions are built with the latest bleeding edge, something tried and true, or even aging legacy technology, is largely unimportant to them, as long as it works and the price is right! Technology might be important to you. It might impact your job satisfaction, your ability to attract employees, and your profits in the long run. But, at startup, it's mostly your customers and their problems that matter.

3. Avoid infrastructure and build only the core of your business. The most critical question is this: Can I deliver something compelling to customers who will pay more for it than it costs me? Do whatever it takes to answer that question as quickly as you can, and you will find a viable business. Avoid at all costs any overhead or infrastructure that gets in the way of answering that question. And, yes, I mean you should skip, at the start, everything from writing a formal business plan, to incorporating, to printing business cards, to buying office equipment, setting up bank accounts, designing logos, and joining professional organizations. All that stuff that business "experts" say you need. Most of it, in most situations, will simply cost you time and money without bringing you any closer to the goal of getting customers and making money!

4. Be realistic about your skills. Starting a business is hard. Many fail. Before jumping into a new venture, and especially before quitting your day job, ask yourself what gives you an edge? Why will you succeed? Just wanting to set your own hours or be wealthy someday is great. It's good to be motivated. But you need more fuel than that. Focus on two areas: (1) your business domain skills, and (2) your networking and marketing skills. Do you know an in-demand business product or service so well that you can produce it very competitively with just a fraction of your available time (say 25%)? Good, because you'll need to do that. You won't have the luxury of spending most of your time actually doing the work. Instead you'll be running and marketing your business. Next ask yourself, what gives you an edge in marketing? How will you get the word out, cheaply, so enough people take notice? Do you have a record of doing this well, or can you partner with somebody who has? This is essential if paying customers are to find out about your business.

5. Know when to do it yourself, and when to get help. This is the next step after realistically assessing your business idea, and yourself. Ask, "what is lacking?" Strongly prefer businesses where you already have all the necessary skills for the initial launch. Because you, yourself, can do everything that's required, cheaply, and on time. But, if you don't have all the skills, network with friends and colleagues to complement your available skill set. Barter for tasks if possible. If necessary, pay for small freelance tasks through sources like 99designs.com or odesk.com. Partner, or hire employees, only as a last resort, because then you are starting to add infrastructure, before you even know if you have a viable business. It's much better to commit to such lasting relationships only as part of scaling out an already proven idea.

6. Do something so good that it can't be ignored. The last time you encountered a mediocre, boring, or overpriced new product or service, did you buy it? Exactly. We're not talking about commodities here, but something new and compelling. Don't expect to get sales, or even much interest, without that 'wow' factor. At least one dimension -- quality, novelty, or price -- and preferably more than one -- should impress your customers. Otherwise they just won't notice you in today's sea of competing ideas. How do you get that 'wow' factor? Sometimes new technology, or stunning presentation, or breakthrough pricing can deliver the knockout punch. But behind those elements is always a more traditional factor: hard work. That's right, at least at the start, you've got to sweat the details, go the extra mile, and pour additional value into your offering -- so your customers don't have to.

7. Diversify your revenue sources. Ok, so you've followed all the steps up to this point. Do you have a viable business yet? Possibly. One last element to consider, before you take it to the bank, is this: how diverse is your customer base? Are you a consultant with just a couple customers? A retail operation with spotty traffic? A web site that appeals only to frugal students? Even if it looks like a business, even if it is currently making a profit, it may not be viable in the long run. Some lost customers, a shift in fashion or demographics, could snuff you out. Don't rest until you have a diverse revenue stream -- only then do you have a truly viable business.

So that's it, 7 mistakes and 7 lessons I learned the hard way, that you don't have to! This is by no means everything needed to start a successful business, but it is essential knowledge that will give you an edge in the early stages. Ensure there is a market, focus on customers, avoid infrastructure, be realistic, do as much as you can yourself, do it all well, then diversify your revenue. And you'll be well on the way to a successful business that can take you to financial independence!

How about you all? How can you apply some of these takeaways to a business you're getting started with? Have you learned any business lessons "the hard way" throughout the years?

Share your experiences by commenting below!

***Photo courtesy of http://i.images.cdn.fotopedia.com/flickr-4509536259-hd/Sydney/All_Places/City/Sydney_central_business_district/Central_Business_District_from_Royal_Botanic_Gardens.jpg

4 Good Income Ideas Aimed At Web Based Workers

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Tue, 24 Apr 2012 15:58:59 PDT

4 Good Income Ideas Aimed At Web Based Workers

If you want to work from home and/or aspire to be a web-based worker, then I have a few good income ideas for you. However, do not think for one second that any of these fields are an easy or quick buck - as they are not.

To work from home requires an astounding amount of discipline, organization, and dedication. It’s not for everyone, and the best way to find out if it’s right for you is to simply try it out. If you’re currently unemployed, volunteer to work for someone you know that offers web-based work. Assuming you have skills that can translate to the web, this is what you would be initially offering. However, below, I have four additional ideas you can try on for size that can pay well if your skills are commensurate and you know how to market yourself.

1. Facebook Timeline Designer -

There’s no denying the power and reach of Facebook, and for these two reasons and more, businesses (of all size and scopes) are looking to establish, manage, and grow their Facebook profile. With this in mind, one of the primary areas of growth within this niche sector is the Facebook Timeline.

If you’re handy with Photoshop or any other web design software - you could make a killing, designing good Facebook Timeline covers. How well you do will depend on how creative and or clever you can design for businesses and how you well you convey the importance of your awesome service.

You can charge a flat fee for the cover, an additional smaller fee for the profile photo, and even add in extras like designing the custom image tabs. Or, you can create a special package such as this; Get A FREE Custom Profile Photo with Your Timeline Cover Design - all for $299, $49, $199 or whatever amount you wish to charge. Or, you can “Bundle It” such as this: For only $29 more, we will design all three of your Facebook Timeline elements; including a Custom Timeline Cover, Profile Photo and Custom Image Tabs.

2. Writing for Small Business Blogs Locally -

Many times, when we’re looking for clients or work, we think first to go online. But, why not reverse this and instead go offline? Your local business community needs you now more than ever. They need a website, they need a blog, they need writers, and so on. If you’re a writer, why not start a local blog writing service - wherein you update the blogs of businesses locally. This could be your local plumber, local restaurants, an accountant, dry cleaner, and so on.

You would have to pitch to the small business owner how you can take this load off their hands and how awesome it would be to direct this “saved time” on other aspects of their business. They key here is to have a laser focused approach and to not be a jack (or jane) of all trades, but instead specify how you write for LOCAL businesses in your area.

3. Social Media Manager -

Social media has completely exploded in 2012, and there’s no letting up anytime soon in this medium. Twitter, Facebook, Google Plus, and Pinterest are enough to make a small business owner hurl with confusion and dismay as he or she tries to keep up. There’s no way on Earth a successful and busy business owner can possibly keep up with all these social media accounts on a daily basis or any kind of a regular basis. That’s where YOU come in to take the load off and make it easy for them. Offer your services as a reliable, trustworthy, and competent social media manager. If you’re social media savvy in one or more of the platforms, then now is a great time to help out your small business owner friends. They need it.

4. Email Marketing Assistant -

This piggybacks off of social media marketing manager above, except it works with email marketing. There’s a certain science to online email marketing that is elusive to some business owners. So, if you have garnered an impressive email list of your own via your blog or website, this is prime fodder for reaching out to others who need this help. Whatever tricks you have learned or gleaned from your own successful email marketing campaigns can now be put to good use - as a profitable service to others. There’s a big (but quiet) revolution going on right now with web work and online income opportunities, that if you don’t wake up and smell the coffee - you won’t reap the rewards.

Hope this list has ignited a massive fire under your belly (and rump) and you see the potential that lies in front of you. Go stake your claim.

How about you all? What web-based ideas have you tried out to earn a little extra income?

Share your experiences by commenting below!

***Photo courtesy of Missy from Frugal Quack.

Totally Money Blog Carnival - April 23rd, 2012 Edition

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Mon, 23 Apr 2012 05:05:58 PDT

Click here to enter my free $46.95 giveaway for a chance to win 5% of My Personal Finance Journey blog income and give another 5% to a charity of your choosing! Deadline to enter is April 30th, 2012.

Welcome personal finance fans to the 64th (April 23rd, 2012) edition of the Totally Money Blog Carnival, a weekly carnival that includes the top personal finance and money posts.

Listed below are the top 3 articles of this week's submissions!

Top 3 Editor's Picks

1. Emily presents The Slippery Slope of Separate Money posted at Evolving Personal Finance.

2. SFB presents Birth Control for the Financially Frugal posted at Simple Finance Blog.

3. Daisy presents Start Off On The Right Foot: Tips for Interns Or Newbies in General posted at Add Vodka.

Listed below are the best of the rest! Enjoy!

Amanda presents Mileage Deduction for Volunteering, Moving and Medical Expenses posted at My Dollar Plan.

Sandy presents 4th Annual Earth Day Is My Birthday Giveaway posted at Yes, I am Cheap.

Ashley Lennon presents Why Having Guts is Key to Saving Money posted at Skint in the City.

Roger the Amateur Financier presents Celebrating the End of Tax Season posted at The Amateur Financier.

Mike Collins presents Will Generation X Be Ready For Retirement? posted at Wealthy Turtle.

eemusings presents From checkout operator to NZ’s most eligible bachelor posted at Musings of an Abstract Aucklander.

Everything Finance presents 5 Ways to Pay Down Your Debt without Living Like a Monk posted at Everything Finance.

JB presents Mint Review posted at My University Money.

Glen Craig presents Do You Have to Pay Tax on Airline Miles? posted at Free From Broke.

Echo presents 10 Fees That Are Worth The Money posted at Boomer & Echo.

Cash Flow Mantra presents How to Make a Grand Per Month with a Home Daycare Business posted at Cash Flow Mantra.

Steve presents Frugal or Self-Sufficient? posted at Brip Blap.

Ray presents 10 Ways to Lower Your Water Bill posted at Squirrelers.

Jeremy presents Establishing Spending Priorities posted at Modest Money.

Philip Taylor presents 10 Alternative Online Job Search Sites posted at PT Money Personal Finance.

FMF presents The Two Ways To Track Financial Success posted at Free Money Finance.com.

Mike Piper presents How Much Do I Need to Save Per Year? posted at Oblivious Investor.

PK presents Mega Millions Expected Value Calculator posted at Don't Quit Your Day Job.

Pam Whitlock presents Raising Charitable Kids & Teens posted at The MoneyTrail Blog.

SB presents Basics of Insurance: Why we Need Insurance? posted at One Cent at a Time.

Steve Zussino presents How to save money with Tankless Water Heaters posted at Canadian Personal Finance.

Miss T. presents It's Harley Time, but Is It Worth the Cost? posted at Prairie Eco Thrifter.

Dan presents What Makes an ETF Tax Efficient? posted at ETF Base.

Jon the Saver presents Avoid Starbucks and Make your Own Gourmet Mocha Coffee! posted at Free Money Wisdom.

MR presents Are You Trying to Become Financially Independent? posted at Money Reasons.

Shaun presents 10 things Entrepreneurs can learn from watching Ghostbusters: Top Ten Family Finance Posts #6 posted at Smart Family Finance.

krantcents presents The 3 L's of Success posted at KrantCents.

Jeffrey presents Famous Money Movie Moments and Lessons with Video! posted at Money Spruce.

101 Centavos presents Building Raised Garden Beds, Part 1 posted at 101 Centavos.

Ashley presents Ask the Consumer Financial Protection Bureau posted at Money Talks Coaching.

FG presents Why Are Environmentalists Against North American Oil & Gas? posted at Financial God.

Jen presents Having Only One Car Saves Us Money-Even Though it Sucks posted at Master the Art of Saving.

Jason presents Should I Sell My Wife's Wedding Ring? posted at Work Save Live.

A Blinkin presents Should You Sell Your Timeshare? posted at Funancials.

Don presents Saving Money By Negotiating Health Care Costs posted at MoneySmartGuides.

Jeremy Waller presents 5 Reasons to Keep Your Credit Report Up To Date posted at Personal Finance Whiz.

Kyle presents It's Raining Cash! We're Giving Away $550 bucks.... posted at The Penny Hoarder.

Princess P presents Why Females are Better Investors posted at Portfolio Princess.

KT presents Save Hundreds of Dollars a Year by Making These Four Drinks at Home posted at Personal Finance Journey.

Daniel presents You're Emancipated From Paying Taxes...At Least For A Few Days posted at Sweating the Big Stuff.

Tushar presents Types of Common Stocks posted at Start Investing Money.

YFS presents Stop paying your mortgage today!... and be a victim! posted at Your Finances Simplified.

Kevin presents What If I Don't File My Taxes On Time? posted at Thousandaire.

Debt Guru presents Use Incentives to Pay off Debt posted at Debt Free Blog.

PITR presents Is Passive Income only for the Rich? posted at Passive Income To Retire.

John presents Debt Payoff Calculator - How to Use One posted at Married with Debt.

Sustainable PF presents Public Service Compensation - The Next Bubble? posted at Sustainable Personal Finance.

Steve presents Our Bangkok Budget posted at Money Infant.

Amanda L Grossman presents Guests are Coming: Does the Entertainment Book or CityPASS Offer More Savings? posted at Frugal Confessions.

Suba presents Give Yourself Financial Hope posted at Broke Professionals.

TRL presents Why Investing in Real Estate Takes Time posted at The Retired Landlord.

Crystal presents We Found Our Dream Home!!! posted at Budgeting in the Fun Stuff.

Wayne presents The Price of Being Organized posted at Young Family Finance.

Hank presents Benefits Of High Deductible Health Insurance Plans posted at Money Q&A.

The Planner presents What is Rich? What does it Mean? posted at Provident Plan.

Aloysa presents Save Money by Shopping in Pawn Shops posted at My Broken Coin.

Eddie presents Tools to Boost Small Business Growth posted at Finance Fox.

Sean presents Gym Memberships - Using Money to Motivate You posted at One Smart Dollar.

Lazy Man presents Money Rules by Jean Chatzky Reviewed posted at Lazy Man and Money.

Money Cone presents In Pursuit of the Most Rewarding Rewards Card posted at Money Cone.

MMD presents How to Buy an Index Fund posted at MyMoneyDesign.

Well - that concludes this week's edition of the Totally Money Blog Carnival. Submit your blog articles to next week's edition (scheduled for April 30th) using the handy carnival submission form. Debt Black Hole will be the host. Get excited!

Also, if you are interested in hosting an upcoming edition of the Carnival, take a quick look at the hosting schedule and requirements, and then click here to sign up for an open slot. It takes a little bit of work, but hosting carnivals is a great way to meet new people in the blogosphere! I'd highly recommend the process to all bloggers!

***Photo courtesy of http://www.lehmannmansion.com/uploads/dd/04/dd047d68df946ca2ef6b16fccf947902/from-Mary-Hill-BethMarkCar-in-Front.JPG

$46.95 Giveaway - Community and Charity 10% Monthly Blog Income Give Back # 7 - April 2012 Edition

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Tue, 17 Apr 2012 05:46:58 PDT

The 10% give back giveaway fun rolls on for the month of April!

In case you missed the first six editions of the 10% Blog Income Give Back, after doing some thinking at the beginning of October 2011 about what direction I want this blog to grow and evolve towards in the future, I decided that any income made from this blog would have more significance to me at a personal life values level if I knew that a portion were being given back to the following places:

1) The readers - Obviously, without you here to read my articles and interact with my ideas, there would be no blog in the first place (let alone blog income). As such, it is only fitting that you receive a portion of any blog income.
2) Charitable organizations - If you've read my blog before, you know that I'm a big believer in donating a portion of my money to charity. Each year, I donate between 5-10% of my income to the National Multiple Sclerosis Society as part of the Bike for MS fundraiser that I do. Beyond the good that is done by donating your money, getting used to contributing to charity is also a good practice to emulate the actions of affluent individuals (T. Harv Eker discusses this in his book, Secrets of the Millionaire Mind, which I would definitely recommend reading if you have a few hours).

After each calendar month passes, I'll tally up my net blog income and determine what Dollar value correlates to 10%.
I'll post the giveaway (similar to this post you're reading now), and you'll have approximately 2-3 weeks to enter.
Once the giveaway is over, a grand prize winner will be announced, and then I'll donate another 5% of my blog income to a charity. Once the giveaway entry window ends, I'll send out the money to the blog reader winner(s) and personally drop off the charity donation.
So far, I've been very happy with the success of the first 6 editions of the 10% income give back. Read on below for some of the details:

In October, $205 total was given away, with $100 being donated to the charity, GreenPeace.
In November, $201.40 total was given away, with $100 being donated to the charity, The Blue Ridge Area Food Bank. If you're interested, you can view the details of me going to drop off the check at the Food Bank by clicking here.
In December, $74.52 total was given away, with $38 given to Big Brothers Big Sisters of Central Blue Ridge. You can view the details of the donation drop by clicking here.
In January, $196 total was given away, with $96 given to the Sexual Assault Resource Agency. You can view the details of the donation drop by clicking here.
In February, $141.20 total was given away, with $70 given to the Blue Ridge Chapter of the National Multiple Sclerosis Society.
In March, $64.51 total was given away, with $30 given to the Blue Ridge Chapter of the National Multiple Sclerosis Society.

So, that's the overall flow of things and a brief recap of what's happened so far with the give back initiative. Now, let's get in to the specific details for this month's (April 2012) giveaway.

Details of April 2012 10% Blog Income Giveaway

$46.95 total blog income to give away - $25 to a My Personal Finance Journey reader and $21.95 to the National Multiple Sclerosis Society - Blue Ridge Chapter.

$25 in the form of one prize available to one reader as follows -

1) Grand Prize = $25 Amazon Gift Card or $25 cash via PayPal.

It's been very fulfilling developing a relationship with the local chapter of the National Multiple Sclerosis Society through the MS150 fundraising bike ride I do each year.Click here to see the details for the 2012 edition of the ride I'll be doing! I look forward to continuing to raise money for their efforts.

How to Enter the Giveaway - Deadline to Enter is Midnight, April 30th, 2012

Like last month, I've decided to use the RaffleCopter giveaway management tool to handle sign-up facilitation for the April giveaway, so simply go through the steps listed in the widget below to enter the running for the prize and accumulate entry points.

There is no limit to the amount of points you can earn. If you refer 10 subscribers – your name will have accumulated 170 entry points! Or, if you link to the giveaway more than once, you can accumulate those 7 entry points multiple times. You can also retweet the giveaway and/or share other My Personal Finance Journey articles via social media sites once per day. In the event of a tie, I will be using a random number generator to select the winner.

Important instructions: After you complete an entry method, make sure to click and fill out the "I Did This" or "Enter" button in the widget so that I have a record of your points.

a Rafflecopter giveaway
Remember, the deadline for entries will end at midnight on April 30th, 2012 (about 2 weeks from today - the start of the give back). Good luck to you all! Please contact me if you have any questions. After the deadline for entries passes, the winner (one with the most points accumulated) will be contacted via email to receive their prize.

Don’t Fall For These Scams

jacob@mypersonalfinancejourney.com (My Personal Finance Journey) — Fri, 06 Apr 2012 06:27:17 PDT

The following is a guest post. Enjoy!

Don’t Fall For These Scams

I consider myself to be a pretty trusting individual, but the sad fact of life is that there are a lot of individuals out there trying to scam and defraud you. Below is a list of the most common scams in the United States right now according to the FBI, and what you can look out for to protect yourself.

Telemarketing Scams

There are a wide range of telemarketing scams going on right now. Most of them are typical sales pitches, but most require payment prior to actually even hearing what you “win” or are going to get. They may even be offers for credit cards or other financial products, but may require some type of upfront payment. The bottom line is never give anyone payment over the phone before services are rendered.

Identity Theft

Identity theft is when someone steals your personal information and uses it to perform fraud or other criminal acts. Many times, your identity will be stolen to open a line of credit, which is then used to purchase things. The victim is on the hook for the debt, and the thief gets away. To protect yourself, never give out your personal information, and immediately report any suspicious activity on your bank statements. Also, make sure that when you throw away important papers, you are shredding them and not just putting them in the trash.

Advanced Fee Scams

Advanced fee scammers are cons where the individual or company requests a fee in advance of some promised service. Usually, the promise is something of greater value. For example, there have been companies promising car insurance comparison and getting you the lowest price. However, after paying for the comparison service, the company just disappears and you are out of the money you paid up front.

To protect yourself from this, make sure you know the business you’re dealing with is reputable, and that you fully understand the agreement you are getting into. Be wary of dealing with people you’ve just met, or are online and you can’t verify them for sure. A good resource for this is the Better Business Bureau, which can help you identify legitimate and illegitimate organizations.

How about you all? Have you ever been a victim of any of these scam artists? If so, what happened? If not, what steps do you take to protect yourself?

Share your experiences by commenting below!

***Photo courtesy of http://s0.geograph.org.uk/photos/17/85/178556_c5fe07d0.jpg