Budgets are Sexy

Would you rather... Money vs. Job edition

j@budgetsaresexy.com (J. Money) — Fri, 10 Jul 2009 14:20:00 +0000

Wow it's been a long time since I've done a "would you rather". I feel like we need one of these to get our brains in think-mode today. After all, it's Feisty Friday! So here's the question - give it some thought and drop a line w/ your answer. You never know when it just might come true ;)

"Would you rather be rich with a crap job, or poor with a job you love?"

I'll admit it's not the most creative question ever asked, but it's something we talk about whether we realize it or not. Remember all those times we bitch & complain about our jobs? If we're not doing it for the money, then why? ;) (on a side note I actually DO happen to love my job, but not after sorting through the other dirt holes first) In interest of this question though, I feel like I'd choose rich over poor. You can do a lot of good w/ money both for yourself AND others. As long as the job didn't suck up all my time, I'm pretty sure I could deal with it in order to grab the benefits. Although, if I really hated it that much I guess it would mean that it DID take up my time, eh?

On the other hand, spending your valuable time @ a place that makes you happy can go a loooong way! Easier to wake up to, get back from vacation to, and just overall a better quality of life. Minus the money part, of course. But that alone is enough to drive a man crazy. As I mentioned, I couldn't ask for a better job right now, but if the pay was a half or a third of what I currently make there's no WAY I could live the lifestyle I do - and that's saying something considering I live pretty low key as it is.

None of these questions ever have correct answers, but it's still interesting to think about. I'm a huge "what if" kinda guy, for better or for worse (usually for worse if you ask any of my previous gf's). But if you find yourself leaning towards the "poor with an incredible job" side of things, ask yourself this: what's stopping you? If money isn't as important deep down, why not get out there and start looking for it? It's worth a few minutes of your time considering it at the very least.

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Check out some others:
- Would you...politically & publicly sell out for $10,000?
- Would you rather... Be ugly & rich, or hot with less?
- Would you...take a 10% pay cut if it saved co-worker?

PF Round Up: Founding Fathers, Blogging, & Tax Free Money

j@budgetsaresexy.com (J. Money) — Fri, 10 Jul 2009 11:29:00 +0000

Articles I enjoyed this week:

Money tips from our Founding Fathers - Brilliant quotes from brilliant people! Including two of my favorites: Benjamin Franklin and John Adams. And while the Jefferson one is thought provoking, it still kills me that he died with so much debt.
Turning $5,000 into $110,000 (tax free) - All it takes is time - "No, it's not a scam and no, you can't do it overnight." haha, amen brother. Once you take a read, be sure to *start*!
Holy Sh*t - I can't believe what I did - The Frugal Bachelor strikes again! I've always admired those who take big risks, but man does this guy take it to the next level. He's literally asking his readers to make a *huge* decision for him! Read to find out what...and then vote.
Reminder: Why you shouldn't listen to me - A friendly reminder from a fellow finance blogger to his readers that we're not professional advisers ;) We have some great experiences and love to spread the good word, but at the end of the day most of us are just that - bloggers.
If the shoe fits....guest blog for it - Exceptional advice. An excerpt, "If you're not good at something, either become good at it or....find someone to fill the void and strengthen your company or team"

Carnivals I participated in:

Carnival of Personal Finance - "Independence Day Around The World" by Darwin's Finance
Carnival of Debt Reduction - "Stale Brat" ed. hosted by Rocket Finance
Festival of Frugality #185 - "Barbecue" ed. hosted by Your Money Relationship

Credit Report and Credit Score Quiz! (aww yeaaah)

j@budgetsaresexy.com (J. Money) — Thu, 09 Jul 2009 12:47:00 +0000

Today's all about testing your Credit IQ. Do you know what makes up that three digit number known as your credit score? Or how about what's IN your credit report? Overall I'm pretty good about checking it once a year and staying on track of it, but I could certainly pay a little more attention. It's just soooo boring, ya know?!

While I'm fortunate enough to have a decent credit score (it hovers around 750), it just so happens I actually don't know as much as I thought ;) I'm a big fan of having FUN while learning, so I thought I'd share a quiz that Credit Karma emailed over (this isn't a sponsored post or anything). Hopefully you get out of it as much as I did! Just please beat my pitiful 5 out of 10 right, okay? Ugh...

Credit IQ Quizz:

1) What is the average credit card debt?

$5000
$7000
$8000
$10,000

2) Many consumers can save _____ in a lifetime through better credit management.

$100,000
$1 million
$500,000
$750,000

3) True or False. Debt to income ratio has no impact on a credit score.

4) What component weighs most on your credit score?

Length of credit history
Credit utilization
Total accounts
On-time payment History

5) Closing your oldest account may reduce your credit score because it effects:

Credit Utilization
Length of credit history
On-time payment history
All the above

6) True or False: Using your credit cards regularly is better than not using them at all.

7) You can improve your credit score by

Closing credit cards you don't use
Not using your credit cards
Reviewing your credit report regularly and correcting any errors
Not paying your bills on time

8) Do credit inquiries impact your credit score?

Yes
No
It depends

9) In today's economy, good credit is essential when:

Trying to secure a home loan
Applying for a job
Applying to rent an apartment
All of the above

10) True or False. A great credit score is considered anything above 690.

Quiz Answers: (Good luck!)

1) C. $8000. The average consumer has $8,000 in credit card debt. Credit cards can be a slippery slope of spending beyond your means if you aren't careful. Most consumers don't realize paying the monthly minimum will keep us in debt for dozens of years.
2) B. $1 million - A good credit score qualifies you for better interest rates on home loans, car loans and student loans. Over the course of a lifetime, these interest fees can really add up.
3) True. Length of credit history, credit utilization, total accounts, on-time payment history and credit inquiries are the only components of a credit score. You can learn more about the impact each of these has at www.creditkarma.com/report.
4) D. On-Time payment history. On average, a person with perfect on-time payment history has a credit score over 700. However, make just one late payment and your credit score can drop 50 points.
5) D. All of the above - Credit utilization, length of credit history and on-time payment history are all important components of a credit score. Having a bad grade in one area can have a huge impact on your credit score.
6) True - Credit card utilization is defined as the total credit card debt you have divided by the total available credit on your credit cards. High credit card utilization can be a warning sign of credit risk. According to Credit Karma consumers with a 0% credit card utilization had a credit score 73 points lower than consumer who had a credit card utilization of 1-20%.
7) C. Credit reports are rich with data and often have a error or two. If you contact credit reporting agencies and have incorrect information removed, you may improve your score. Avoiding credit entirely means you'll have no credit history, which will may it harder to get a loan.
8) C. It depends. Hard inquiries pulled by lenders do have an impact on your credit score, but soft inquiries don't. When you pull your credit score simply for information purposes through your written authorization, it is considered a soft inquiry and has no impact on your actual credit score.
9) D. All of the above. Employers and renters are more apt to check your credit file before offering you a job or a place to live. To get your credit in top shape, it's essential to maintain a low debt to credit ratio.
10) False. That used to be true prior to the recession. Currently, the average American has a credit score that comes in right around 690, but, even a 690 credit score provides no guarantees when it comes to getting a loan. With the current state of the economic climate, banks are much less likely to even lend to good credit consumers and when they do it's often at a higher price.

Analysis: (How did you do?)

If you missed 0-2 questions, you know credit. You understand the important of being a smart credit use and likely have a high credit score.

If you missed 3-4 questions, you're doing ok. You likely have an average credit score and understand the importance of paying bills on time.

If you missed more than 5 questions, chances are your credit is in need of improvement and you should start taking steps towards responsible credit use. (well, that or you HAVE a good score and thus you don't manage it as well as maybe you should. Or at least that's what I'm taking from it ;) )

Summer Tip: Buy winter clothes now!

j@budgetsaresexy.com (J. Money) — Wed, 08 Jul 2009 15:42:00 +0000

It may not be possible @ all stores, but if you can - start picking up as many winter clothes as your budget permits. My bro just got a great a$$ deal over at Banana Republic due to them clearing shop (he picked up like five $60+ sweaters for only $14.99) I've also seen Gap, Express, and Old Navy unloading a bit too.

You might get last year's "oldies", but most people won't even notice/care for that matter. It's a match made in heaven for us frugal shoppers. Quality clothing at a fraction of the price! Another smart place to look is outlet centers and places like TJ Maxx, Marshalls, Ross, etc. If you've got one around your hood, I'd also check out Rugged Wearhouse - I've gotten clothes there at 75% off retail, including Nautica jackets for $25 and Armani jeans for only $20!

If you're seeing any other stores cleaning out their inventory, let us know :)

Best Financial Calculators!

j@budgetsaresexy.com (J. Money) — Wed, 08 Jul 2009 12:08:00 +0000

Home to the best financial, debt, mortgage, and loan calculators!

I've been collecting some of these bad boys for a while and my hope is to keep adding to them as time goes on. If there are any you'd like to add, or believe I've forgotten, be sure to let me know :)

It will be nice to have one main "financial calculator" page to refer people to going forward - Hope you find them useful (the millionaire one is my favorite, and the one used on my to-do list):

CNNMoney: When will you be debt free?
CNNMoney: Does it pay to refinance?
CNNMoney: When will you be a millionaire?
CNNMoney: Estimate monthly mortgage payments
CNNMoney: Net worth: how do you stack up?
Cars.com: Auto loan calculator
John Hancock: Am I saving enough?
What's The Cost: Snowball debt calculator
Smarty Pig: Lunch savings calculator
Bankrate: Home budget calculator
Bankrate: Tax advantaged investment calculator
Financial Literacy Month: Net Worth Worksheet
Kiplinger: Recoup your savings calculator
Kiplinger: Which online broker is best for you?
Dinkytown: Roll-down your credit card debt!

Other great sites for more calculators:

Wall Street Journal: Personal finance calculators
Bankrate: Ton of awesome calculators
Dinkytown: 200+ great calculators

Control Lifestyle Inflation Before it Controls You.

j@budgetsaresexy.com (J. Money) — Tue, 07 Jul 2009 12:49:00 +0000

*****************************************************************
This is a guest post from video blogger Vik Tantry. He runs the personal finance site Kanjoh.com, and has some pretty wicked videos uploaded there - I highly recommend checking them out. A fun (and different) way to learn!
*****************************************************************

It is fascinating how our tastes change. Back in college, I used to happily eat cereal and Ramen Noodles three meals a day. Once I graduated, I was actually able to afford real meals at fancy restaurants. I was earning more, and my spending had increased substantially. This is lifestyle inflation: when your spending starts to catch up with your income.

Lifestyle inflation is dangerous because it can decimate our savings, and it is encouraged by our consumer-driven society. Saving isn't sexy, but it is always exciting to buy the next fancy gadget. When our income goes up, it is very easy to spend it all quickly on things that "we've wanted for a long time but never could afford." Lifestyle inflation often creeps into our lives slowly and steadily. We start eating out a little more, and spending more on clothes. We take fancier vacations and buy more expensive cars and furniture. Before you know it, our increase in income isn't covering our increased costs!

After a few months of working, I realized that I was not saving nearly as much as I would have liked. I also realized that my "improved lifestyle" did not make me substantially happier than when I was in college. I tallied up my expenses and identified several areas of spending that I could do without. I realized that I didn't need to buy new clothes and shoes so often, and I could go out to dinner a little less. After all, I didn't need these things back in college, so why would I need them now?

When faced with lifestyle inflation, take a few days to adjust. Consider your increase in income first and foremost as an opportunity to save more. Then, take a few hours to sit down and prioritize. Make a list of things you've wanted and figure out which ones really mean the most to you. Once you have defined your priorities, stick to them. This way, you can save and invest while still spending money on the things that are truly important.

Controlling lifestyle inflation is more about having the right values than anything else. However, its important to not take it to the other extreme. A balanced approach to saving and spending will maximize both your happiness and your financial stability.

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Editor's Note: One of the best ways to avoid falling in this trap is to up your 401(k) or savings whenever you get a raise or promotion! Getting in this habit will not only help you save more over time, but you'll never miss any of it because you'll never see it ;)

How To Beat The Collection Agencies!

j@budgetsaresexy.com (J. Money) — Mon, 06 Jul 2009 16:14:00 +0000

Fighting the collection agencies? My girl Kim (aka Little Miss Fortune) just put out a brilliant piece on how to settle and save BIG! $14,000 big in her case. And not only that, but she was just featured on a CNBC Segment to show how she did it :) As you can tell, I'm definitely impressed over here.

Here are a few of the tips she shares to help YOU beat the collection agencies:

Go into the conversation knowing you should be able to settle for about 60 percent less than your full balance.
Call on the last day of the month, when the debt collectors are scrambling to meet their quotas.
Mind your manners! You'll get a lot farther by being calm and pleasant than you will by being angry and defensive. (It's okay to feel angry and defensive. Just don't let them know!)
If you have a lump sum to offer, start low and let them talk you up. (I told one person I had $3,500 and wound up settling for $4,100.)

I'm proud of you Kim!!! Lets keep from getting back into debt now, eh ;)

Best Free Budget Templates & Sites

j@budgetsaresexy.com (J. Money) — Mon, 06 Jul 2009 11:26:00 +0000

These are the best free budget templates around - mostly from fellow personal finance bloggers! How awesome is that? ;) I have to put mine at the top, of course, but ANY of these have the potential of working well nicely! Remember, none of these budgets are perfect, but you can tweak & edit and use the one that's the most perfect for YOU.

So here they are, the best free budget templates I've found so far. Holler if you find any other good ones and I'll add them in! *All images & links go to excel spreadsheets unless noted otherwise

Budgets Are Sexy: Financial Snapshot & Budget | (google doc)
Enemy Of Debt: E.O.D Deluxe Budget 2.0
My Money Shrugged: Budget (google doc)
Mrs. Micah: 2009 Budget Spreadsheet
Fiscal Fizzle: Monthly Report Template (word)
Punch Debt In The Face: Monthly Budget (google doc)
My Money Blog: Within Your Means (excel - created by leisure guy)
My Money Blog: Spreadsheet #2 (by Neil Rothma)
My Money Blog: Spreadsheet #4
Building Wealth Together: 2009 Budget Sample
Rate State Blog: Zero Based Budgeting Tool (based on Dave Ramsey's "zero based budget")
USAA: Budget Worksheet
Pear Budget: Original Spreadsheet
Google Docs: Handful of Budget Templates
Microsoft Online: Top 25 rated templates! (excel - out of 100+)

Best Online Budgeting Sites:

Yodlee MoneyCenter (free)
Quicken Online (free)
Mint (free)
Geezeo (free)
Wesabe (free)
Budget Pulse (free)
Pear Budget (online version: free for 30 days, then $3/mo.)
You Need A Budget (free for 15 days, and then 1 time cost of $49.95?)

How crooks worm their way into your wallets.

j@budgetsaresexy.com (J. Money) — Fri, 03 Jul 2009 12:42:00 +0000

Hah! Good one FTC (Federal Trade Commission). I originally had this post titled, "How to Spot a Scam", but it just didn't do them justice ;) Check out this email below and tell me if it's not the awesomest thing you've ever read from them:

Today's troubled economic waters are infested with a voracious school of sharks -- con artists who are promising people a lifeline through jobs, recession-proof income, and access to free government grant money. They are bleeding money from individuals, and from the economy as a whole.

That's why the Federal Trade Commission and its partners are moving aggressively through enforcement and education. As the nation's consumer protection agency, we've produced a new video to help people learn how to spot a scam. It features two scam victims and a former telemarketer of fraudulent business opportunities who explains exactly how he got people to part with their money:

We hope you'll share this video and help your readers learn just how crooks worm their way into their wallets. More resources about helping people avoid business opportunity scams are at www.ftc.gov/bizopp. Did you like it?

PF Round Up: Hoarders, Interventions, and $100 Bills

j@budgetsaresexy.com (J. Money) — Fri, 03 Jul 2009 11:38:00 +0000

Favorite Finance Articles:

I Want What She Has. The first sentence says it all, "The problem with being financially responsible is that sometimes it seems like everyone around you is having more fun.
I Love Intervention. YES! I would love to see a "financial intervention". Genius, sir.
The 10 Year Savings Strategy: Saving money after you've already handled the basics. Perfect for those working on the "next stop". And as always, Ramit pulls no punches!
Want to save money? Carry around $100 Bills. That would do the trick ;)
Documentary Looking at Compulsive Hoarders. Sad :( But interesting.

Favorite (all?) Carnivals I Participated In:

Carnival of Personal Finance #211 - "Burn Notice" ed. hosted by Green Panda Treehouse
Carnival of Debt Reduction - "Waffle Iron Day" ed. hosted by Mighty Bargain Hunter.
Festival of Frugality #184 - hosted by My Frugal Adventures.
Carnival of Money Stories - "Declaration of Independence" ed. hosted by Stretchy Dollar.
Carnival of Twenty Something Finances - "6-29-09" ed. hosted by Independent Beginnings.
Money Hacks Carnival #71 - "Canada Day"ed, hosted by The Canadian Finance Blog.
Carnival of Pecuniary Delights #14 - "I Forgot Day" ed. hosted by Taking Charge.

Payday Loans vs. Credit Cards

j@budgetsaresexy.com (J. Money) — Thu, 02 Jul 2009 15:09:00 +0000

Payday Loans vs. Credit Cards - which are worse to take out cash from? They both have their pros and cons (mainly cons) but if you were in a bind and had to pick one, which would it be?

This debate popped up during my coffee meet up w/ James from Dinks Finance last night (I told you I'd be blogging about it! haha...). BUT, the crazy thing here was that we found ourselves defending opposite sides! He was slamming credit cards, and I was quick to diss those damn payday loans. It was an epic battle of two finance bloggers going head to head ;) Or perhaps a battle of nerds sipping coffee, take your pick.

The question we have to ask ourselves here though, of course, is who's right? Or better yet, which product technically IS the worst of the two? Well, I'm no expert in the field, but this little quote found on the CFA's (Consumer Federations of America) website says it all:

"Payday loans are extremely expensive compared to other cash loans. A $300 cash advance on the average credit card, repaid in one month, would cost $13.99 finance charge and an annual interest rate of almost 57%. By comparison, a payday loan costing $17.50 per $100 for the same $300 would cost $105 if renewed one time or 426% annual interest."

Ca-ching! They also share a pretty interesting cost comparison chart (pdf) and loan calculator that helps to determine what your total costs would be. By the way, for those who aren't familiar with the term "payday loan", it's basically a small short-term loan that's intended to cover a borrower's expenses until their next payday, sorta like a cash advance (also referred to as a paycheck advance or payday advance). They can be taken out online or at physical stores like pawn shops or their own entities.

In fact, it goes without saying that NEITHER payday loans or credit cards are a good answer for getting cash. Borrowing money from family/friends, taking out a personal loan, or just dipping into your savings accounts always trump cash advances when it comes to the fees you'll have to pay. Unfortunately there are times when these aren't an option though - and thus, the reason for this post (other than to prove my man James wrong ;) )

Contender #1: Payday Loans
The average fee you'll pay for a payday loan is somewhere between $17-$25 for each $100 that you take out, but it can get as high as $30 per $100 in some states! So, say you take out a common advance of $500 and you pay it back in full after 2 weeks - GREAT! You had to pay an extra $87.50 on top of the $500 you borrowed, but at least it's over with, right? Unfortunately no, the odds are stacked against you. According to the CFA - "Consumers have an average of eight to thirteen loans per year at a single lender." That's pretty damn scary.

On the plus side, you could argue that since these are mini loans of 2 weeks at a time, it might be easier to pay off and not have it drag on like it may w/ a credit card. That all comes down to personal preference and usage though - I can't really relate to it here.

Then, of course, we have that big ol' stereotype that payday lenders are bad evil people and are out to steal your money! Well, I don't have any facts myself to to say they're shady (although I feel they are), but I can def. say without a doubt that they want your money ;) And unfortunately you're hard pressed to see *all* their fees upfront and readily accessible on their sites - at least on the non-reputable ones.

Contender #2: Credit Cards (cash advances from)
Now let's talk credit cards. As much as I champion my dear credit card for budgeting purposes and the cash back rewards (not to mention the free grace periods to pay back purchases), they're certainly no angels either. According to common knowledge" and the talking heads on TV, the average American household is in about $8,000 debt. Some feel this is a bit inaccurate, but the fact is that many of us are, indeed, ADDICTED to our credit cards.

And if you're already addicted, why not just slap on a cash advance to it right? *shiver*. While usually LESS than paydays (do your research!) you'll still pay a steep price for it - anywhere from 15-25%. Of course, there's also the problem of mixing and matching normal purchases with cash advances. Most cards, if not all, will use your payments to pay off the lower interest items first (like your purchases), and THEN use it to pay off the higher cash advanced amount. It looks like there may be some new rules in place soon that would get rid of this though.

On the other hand, most credit card companys display all the informaton upfront - the rates, the fees, etc. You might actually have to look for it, but it IS there. And usually written in itty bitty font ;) I believe most c/c statements have it all disclosed on the back, but either way it's easily accessible on your bank's website or by placing a 2 min phone call. If you do your research and check around for the best rates, you might be suprised at what you can find.

The Winner: Credit Cards
In conclusion, they both suck and should be avoided like the plague. BUT, if forced to take one over the other, I'd go with my credit card all the way. I'm comfortable with it, I have a good relationship w/ the bank that issues it (USAA), and I can easily go online and pay the advance off at any point (because I don't carry any other balance. And if I did, I could always take out a new card specifically for this purchase and *then* pay it off online).

Now, if only I could remember the reasons James argued for payday loans ;) I'll have to ping him and get him to respond back here. Although in all honesty I'm scared as that boy's a genius at analyzing! Seriously, have you ever checked out any of his posts? whew.

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PS: If you find yourself in a situation and you need help, PLEASE research RESEARCH research! Spending 30 mins now can save you hundreds of dollars later if you don't know what you're getting yourself into. It's easy for me to state my opinions on the subject based on what I know, and what MY experiences have been over the years, but it's not necessarily the best for *everyone*. Only you know that and can judge the best option for yourself.

Here are some other articles I found while researching:
- Payday Loan vs. Credit Card Interest
- Credit Card Cash Advances Versus Payday Loans
- Why a Payday Loan is Better Than a Credit Card Cash Advance

Net Worth: June - Up $27,000!!! Hot damn, 401(k).

j@budgetsaresexy.com (J. Money) — Wed, 01 Jul 2009 14:01:00 +0000

Our net worth is up 40% from last month - now at $95k!

And we owe it all to my 401(k), baby! I've hinted at some problems with it in the past - we were waiting for it to show correctly in our accounts (long story) - but the good day has came and we're back on track! A whopping $30k on track.

I know I've harped on it before, but it just goes to show that consistent saving & investing DOES ADD UP over time. And hopefully you'll be able to watch it grow every month instead of getting a huge sorta-but-not-really surprise in your account one day ;) The point is, you have to start TODAY - not tomorrow, not next month or next year, but today. Start small if you have to, whatever it takes. And while I recommend the 401(k) for all that free money your company hopefully matches you on, it's certainly not necessary. An IRA or savings account would work just as nicely.

So yeah, the 401(k) stuff is the biggest change this month, with a major decrease in cash reserves being second. I'll explain more below, but this was also connected to the 401(k) stuff - and something I consciously decided to do. Only $5k more to hit that $100k mark! Woohoo!

Here's how June's net worth breaks down:

CASH SAVINGS (-$3,586.80): For the last two paychecks I've been contributing 90% of my paycheck to that same 401(k) so I can make up for some lost time. In doing that, I literally only get $69 and change per check now! Ouch. Thus, I've been dipping into my $5k+ side savings account to make up the difference each period to continue paying all bills & to stay "on budget". As you can imagine, this will only last another check or so before I run out ;) But if YOUR company matched 100% of 100% you put in up to the yearly maximum allowed, wouldn't you find a way to make it happen? It's all about taking advantage of the perks given to you and finding a way to make it work.

EMERGENCY FUND ($0.00): Our $10k is still sleeping away nicely in our Money Market account. It's mixed in with other funds so I can't determine exactly how much interest is accruing on the Emergency Fund in particular, but I it's definitely adding up.

ROTH IRAs (+$358.32): The good thing here is that I was able to scrounge up a decent $550 to put into the pot this month! The downside was that the markets already sucked out $200 of it. But like everything else tied to this roller coaster economy, it has its ups and its downs. But Operation Buffett is still in effect...

401(k)s (+$30,304.58): Is there anything more to say about this? ;) I was contributing a butt load. It wasn't showing up properly. But now it is. Actually, there's a little more to it than that but I can't really talk about it here. But no, mr. punch debt in the face, I was not funding a crack house on the side - you silly goose, you.

SAVINGS BONDS (+$0.20): Oh Joy! This will actually be the last time you see this category here though, so wave it goodbye (byyyyeeee). I finally listened to Ishan's advice to unload the bonds and invest the money elsewhere. You'll hear about it soon as I didn't have the time to incorporate it all here.

AUTOS WORTH (kbb) (-$375.00): A little more than the $50 devaluation from last month, but whatever - no one ever said cars were an investment ;) Here's how they line up this month:

Pimp Daddy Caddy: $3,620. Down the $50 buckaroos.
Gas Ticklin' Toyota: $10,435. Stayed the same? weird.

HOME VALUE (Realtor) ($0.00): This will remain @ $300k (the price our realtor set it at) until I hit him up again later for another review. He's the master in our particular neighborhood, and has been selling (and living in) in this area for 20+ years. I keep an eye on Zillow & Redfin.com on the side too to see what else is happening out there. Zillow just fluctuates so much, it's crazy. I love the site, but it's seriously nuts.

CREDIT CARD (car loans) ($0.00): Still at Zero! The previous debt here was an "auto loan" that I happened to charge on my credit card - effectively setting my interest @ 3%. I don't recommend this for everyone, but the method works well if you know what you're doing and don't have outstanding debt lined up. I'll leave this category in until I'm tired of looking at it ;)

MORTGAGES (-$386.01): We're still eager to refinance our first mortgage, but unfortunately we're still too under water to get on it. So in the meantime we chip away with any extra money we have left from our "house budget". Here's how they breakdown:

Mortgage #1: $287,612.32 - 30 year fixed, interest-only @ 6.875%.
Mortgage #2: $62,818.33 - Maxed out HELOC w/ 2.8% interest.

Well, that's it for this month. How'd you all do? Anyone win the lottery or take on a major mortgage? Whatever the case, remember to judge your success off of YOUR goals only. I know it's hard sometimes, but it's really the only thing you have control of. So if you're meeting or exceeding your goals, you're on the right track!

God Bless,

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*My budget has now been updated.
*And so have my sidebars.

How much is a house really going to cost me?

j@budgetsaresexy.com (J. Money) — Tue, 30 Jun 2009 12:19:00 +0000

How much is a house really going to cost me? A lot more than you probably think ;) Although it's still doable if you're ready to jump in! I was asked this same question by a fellow reader recently, and thought I'd forward my answer over for anyone else just starting the home buying process:

"Wow, that's certainly a loaded question! Here are my quick thoughts - First, it'll probably cost you a lot more than you originally think. Between the down payments (usually around 20% of purchase price these days unless you go FHA or other routes), the closing costs (usually around 3-5% of purchase price), and moving, picking up new furniture & household items, and then future taxes/homeowner dues/condo fees, it gets pretty crazy.

All that said, however, it could definitely be worth it while the prices are so low! If I didn't already own I'd be all over it (although I surely have my moments). In all honesty, I recommend finding a local realtor and scheduling a meet-and-greet w/ him or her to get all the info. from the beginning. It doesn't cost a penny (if they say it does, hang up and go somewhere else!), and that person could work on your side to help you through the whole process. As a previous realtor myself, I can tell you it's well worth your time.

You could also check around other blogs and click on "home ownership" or similar labels to get a general idea as well :) Try mymoneyblog.com - he has a great pool of info. Hope this helps! And good luck, let me know what you end up doing."

Bernard Madoff sentenced to 150 years!!!

j@budgetsaresexy.com (J. Money) — Mon, 29 Jun 2009 16:00:00 +0000

Madoff jailed for 150 years!! WOW. Guess that's what you get for scamming people out of millions and millions of dollars buster. This should at least give some solace to those who were burned by him, although, I'd much rather have part of the money back!

And by "I", I mean those who invested. Fortunately, I was not involved. And it's a good thing too as I would have easily fallen for it had I a) had lots of money to invest, and b) been approached ;) Or at least the old me would have been tricked....I'm a bit more cautious these days.

Anyways, click over to read more on Madoff going to jail for the rest of his life. Sucks to be him.

Financial Checklists Are Key. What's Yours?

j@budgetsaresexy.com (J. Money) — Mon, 29 Jun 2009 11:18:00 +0000

Just like budgets, financial checklists also come in different shapes and sizes.

Today I present to you a real-life one by fellow blogger Kaitlyn from Upturned Barbie. She blogs about life in general, but it's pretty obvious she has a keen eye on her finances.

Check out her current game plan:

Open a c.d. (waiting for a decent initial deposit)
Decide on, and begin, contributing to an IRA
Pay off the less than $1k of debt I have
Apply for, & get, a credit card & make regular pymts
Buy a house (foreclosed) in 1-2 years w/ a 30% down pymt & six months living expenses

Now that's a woman who knows what she wants! This self-proclaimed spreadsheet nerd is on track and ready to make things happen. She's already established a budget and believes "control of money is really one of the best things ever!" Sexy! How old are you again? Sheesh....@ 20 she's already 10 steps ahead of her peers.

It doesn't come w/out it's drawbacks (she's currently working 50 hours a week), but saving like a squirrel getting ready for winter sure does have its perks! How about you rock stars? Care to share? (You can see my top 3 over there in my sidebars, along w/ my progress)

This Week's Drinking Buddies (and PF roundup)

j@budgetsaresexy.com (J. Money) — Fri, 26 Jun 2009 13:22:00 +0000

Another month down, another PF Blogger Happy Hour! We headed over to Brickskeller this time, where a quaint party of 6 talked finance, blogging, beer, and most importantly - how expensive dating can get! (and you thought I was going to say girl on girl action, didn't you? Hah! Wrong blog...)

In a place that serves HUNDREDS and hundreds of beers you'd think I'd pick something adventurous, but sadly I stuck w/ my Bud Lights & Coke all night long. For reasons I shall not go into, it was mandatory that I stayed out of trouble ;) Which brings us to this week's favorite articles, written by none other than the 5 bloggers who were kind enough to share their company (and brain) with me. Please to enjoy:

Map Girl: I Got Scammed By Craigslist - Oh boy...be sure to skim the tips at the end!
Clever Dude: Our Secret to Success: Part One: Spending Less Than We Earn - In case you couldn't tell, I've been all about the simple theories lately ;) And Mike does this favorite tip of mine excellent justice. Plus, he talks about a budget.
Mrs Micah: Keeping Your Word to Children About Money - An awesome story from the past, and good to know when I start popping out mini J Moneys!
Budget Pulse (Craig): You Sure Refinancing Will Help You Build Cash? Nope, but I'd still love to *save* some cash by refi'ing! If only...
Building Wealth Together (Brian): Dude, I Totaled My Car - That def. sucks, but now the real question comes into play. Pick up another used one, or go for a solid new one? I say get a $3k Pimp Mobile aka Caddy ;)

And now, the carnivals I participated in:

Carnival of Personal Finance #210 - "Punch Out" ed. hosted by Suburban Dollar.
Carnival of Twenty Something Finances - hosted by PF Firewall.
Festival of Frugality - "Honeymoon Destination" ed. hosted by Financial Highway.
Money Hacks Carnival #70 - hosted by Blogging Banks.
Carnival of Pecuniary Delights #13 - "Summer Vacation" ed. hosted by Momma's Blog.
Carnival of Money Stories - hosted by Consumer Boomer.

PS: I highly recommend getting together & networking with people in your own area if possible. Not only is meeting new friends cool, but you could learn a lot on a subject (like finance) that many of your "normal" friends may find taboo ;) That makes blogging great, of course, but there's nothing like some face to face interaction every now and then to spice it up.

God Bless you, Michael Jackson.

j@budgetsaresexy.com (J. Money) — Fri, 26 Jun 2009 00:40:00 +0000

You will forever be a brilliant, brilliant artist, and millions of us will miss you. I will never forget blasting Dangerous on rotation 24/7 the first week I had that album - my 2nd ever! I pray the drama is shred, and you're finally at peace...and happy.

(my first non-financial post, sorry - just felt like saying something....)

Spectacles, Testicles, Wallet and Watch

j@budgetsaresexy.com (J. Money) — Thu, 25 Jun 2009 13:18:00 +0000

I'd like to share a few tips when driving around in cabs...A friend of mine lost his iPhone in a cab the other day and was going frantic. Not only was he on his way out of town for 3 weeks, but he's currently unemployed and was dreading the idea of picking up a new one. As with most people, his cellphone is his lifeline - esp when away from home.

But guess what? The cabdriver/good samaritan found it in his back seat! Not only did he remember my friend for the nice conversation they had, but he made a point to tell his girlfriend (who met him to get it back) that he was an excellent tipper :) While it wasn't the only reason he gave it back, the generous tip certainly stuck in his mind. So tip #1: Tip your cabbie well, especially if given good service.

Oddly enough, that same girlfriend had previously lost a wallet in a cab herself (different cab). AND, he too returned it with all id's and bills intact. Besides tipping well herself, she was also sitting in the front seat - making it super easy for the cabbie to find it! This brings us to Tip #2: Sit up front whenever possible. Your stuff will be found much easier if you leave it behind.

Of course, you could also just NOT lose anything, but we all know life doesn't work as nicely as that. Better to control those things you can, like tipping & sitting in the front seat :)

Live Like You're Broke...

j@budgetsaresexy.com (J. Money) — Wed, 24 Jun 2009 18:58:00 +0000

Whatcha know about that? Fellow blogger Anne wrote a little on it the other day, and it really hit me - Live like you're broke! Yes, nice & simple, I dig it. I'll probably forget this by next month (you know, A.D.D. and all), but for now let's roll with it ;)

If you were really broke, here's what what would happen:

First, you would still live! It would be harder, but it's not like you'd die.
You'd cut out spending. Because you "can't" spend - you're broke.
You'd save as much money as possible. You might have to turn around and pay the bills with it all, but you'd still be saving better.
You'd get creative! Probably the best reason to get in this mindset.

I think we all "live like we're broke" to some degree, it just comes down to the amount you're willing to give up (unless, of course you *are* broke, in which case you've probably perfected it!). I'm sure I could cut out 1/2 of the things I do now to save some cash, but it's just not worth it. On the other hand, there are plenty of things I COULD cut (and would cut) if I were indeed broke. Regardless, it's always good to stop and consider the way you do things. Do that enough, and you're bound to stay focused!

FHA Loans and the Stimulus Tax Credit

j@budgetsaresexy.com (J. Money) — Wed, 24 Jun 2009 13:09:00 +0000

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Today's guest post is by Brandon Laughridge of Mortgage Loan Place. MLP specializes in providing high quality mortgage content and has recently embarked on creating the web's best mortgage calculator with a $10,000 programming contest.
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The government is trying to re-energize the stagnant housing market - and that's making FHA loans more attractive than ever.

Headlines have pulsed these last weeks with news that the federal stimulus package will include an $8,000 tax credit for people who haven't owned a home in at least three years, if ever. The Federal Housing Administration has sweetened the deal: Buyers can use that money to pay for closing costs or even offset the 3.5 percent minimum down payment requirements for FHA loans.

But it's only with an FHA loan that buyers can use the tax credit for closing costs. Some housing experts expect the stimulus provision to help boost home sales in coming months. The National Association of Home Builders estimates that 40,000 more homes will be purchased because of the FHA initiative, in addition to the 160,000 sales already expected as a result of the tax credit.

Home buyers also have some flexibility in claiming the credit on their tax returns. They can choose to claim the credit for 2009 or file an amended 2008 return to receive the credit this year.

The new FHA initiative stipulates that home buyers can use the tax credit to offset the down payment only if a state housing agency is handling the loan. In all other cases, the tax credit can be used for closing costs, boosting a down payment or to pare down the interest rate.

There are a couple of other points of note for potential buyers:

Income limits are a part of the process. The threshold for individuals is $75,000 and $150,000 for those filing jointly.
So far, close to a dozen states are providing buyers with bridge loans to spur purchases immediately, well in advance of the next tax filing. These loans come with little or no interest and are to be repaid when the tax credit is applied the following year. The list of states includes Colorado, Kentucky, Missouri and Tennessee.
The FHA is offering advances on the tax credit so home buyers don't have to wait.

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Editor's Note: As always, consult with a professional before jumping in and getting a loan ;) What works for one person won't always work for another...

How do you measure your own financial success?

j@budgetsaresexy.com (J. Money) — Tue, 23 Jun 2009 11:48:00 +0000

This question popped up in an email i got from AskMen.com, asking if I wanted to participate in a survey.

Now normally I just glance over and then delete/archive as my A.D.D. brain can only take so much. But seeing how it was the "Great Male Survey of 2009", who am I to turn it down? Okay, well in reality they were smart enough to bold out some of the financial questions in the email ;) While most of them got my brain thinking, there was one question that really stood out:

How do you measure your own financial success?

Good one! First, each of us should probably define what "financial success" is. Is it money? Job title? How big your house is (better not be)? Everyone has their own thoughts on it. The first thing that comes to MY mind is net worth and my budget (naturally). Net worth because it gives me an overall financial snapshot of how we're financially holding up in life. It's something I can track on a monthly basis and see how successful (or not) we're doing. I think of my budget next because if I'm sticking to it and it's working, then I've had a successful month ;)

Okay, so keeping in mind what you feel financial success is, here are some of the answers given for the question (along with my own experience on the right of each "answer"):

Against that of my friends. - No way! Well, maybe partial-way ;) What they do doesn't affect me financially by any means, but I do notice that whenever one buys a new car or a bigger house, I tend to analyze how exactly they were able to do that. Stupid, but true.
Against that of my industry colleagues. Hmmm, nah I don't really compare anything here. I probably get paid more for what I do at my current job than similar positions in my industry, but that's just cuz I lucked out and found a perfect fit.
Against that of my father. Wow, good question. I feel like I would maybe down the road when I get into my late 30s or 40s, or probably even when I have kids, but at this moment of time it's not a thought for me. I do, however, totally listen to his thoughts on personal finance and investing!
Against my own financial goals. Ding, ding, ding, we have a winner! I 100% believe this is where we should all fall. I say "should" because most of us still keep those previous people in mind whether we want to or not, but that's just human nature.

Overall, it's a good idea to track your success through the goals you set up for yourself, not anyone else's. At least in theory ;) As long as you're WORKING on bettering your situation though, I say you're moving in the right direction. Maybe one day the Jones's will follow you?

Blogging From The Beach, and Saving Money!

j@budgetsaresexy.com (J. Money) — Mon, 22 Jun 2009 12:46:00 +0000

Gooooood morning my fine blog readers & twitterati! Did you get into anything fun over the weekend? We ended up hitting the beach for a mini-family reunion and we just couldn't bring ourselves to return home to reality yet ;) That's what vacation days are for, right?

While I sit here soaking up the sun and pegging my nephews with footballs (my favorite part), I thought it would be prudent to share a few saving ideas I came across while packing up...

On your next trip this Summer:

Drive the car w/ better gas mileage. As much as I wanted to pimp out my caddy for all my wife's family to see, we couldn't justify the 13.8 mpgs it brings to the table. Instead, we opted for the smarter choice: her Toyota Corolla (which gets 30+)
Stay with family or friends. This is my favorite option, and it usually works well when you miraculously plan your trip the exact same time they are ;) If that doesn't work, call Uncle Ned or your long lost sister to see if you can crash for a night or two. Promise them breakfast or something.
Take advantage of your surroundings. Chilling at the beach, hiking up and down the mountains, or just plain walking around and soaking in life is free. You've got a lot more time to just "be" when you're away, so relax and enjoy what's around you for a change.
Read. Not a lot of people like this option (I was once one of them) but I'll admit it feels great without the everyday noise around you. It's like 100% YOU time. And you don't have to feel bad for not reading finance books or magazines if you don't want ;) Unless you're me, cuz I like!
Do whatever you want. Eat your junk food, stay up late, be a sloth, whatever you want. I'm not sure if this really falls into a savings tip right here, but F it, you're on vacation.

So there are your 5 Free tips for the day. They might not be the most exciting, but they save you money. Plus, it's really the best I can do with all this sand blowing around my laptop right now ;) Yeah yeah, I suck. If you ever figure out a way to blog full-time though, please let me know. I'm afraid I won't go back to work tomorrow...

Budgets Come in all Different Shapes and Sizes.

j@budgetsaresexy.com (J. Money) — Fri, 19 Jun 2009 13:08:00 +0000

If there's one thing I like more than beer and sex (just being honest!), it's clever budgeting. And just like there's all sorts of ways to have a good time, there are all sorts of ways to manage your cash flow.

Personally, I use google docs to stay on top of my financial snapshot. I can budget from it, track my savings goals, my paycheck breakdowns, and most importantly my net worth (so I know overall how I'm doing that month). It's a little too bright and all over the place for some people, but it's perfect for me. You can download the budget template in excel if you wanna check it out.

Another way you can do it is via Word, shown below (click image to download the word .doc). It's clean, simple, and to the point. And most of all, it WORKS for the reader who emailed it over to me. As you can see, he has listed out all his bills, deadlines, savings, and retirement contributions - along with a few goals and "leftover amounts". Basically, his financial snapshot:

These are just 2 of the 10,934 ways you can do it. You've also got places online like Mint.com, YouNeedABudget.com, or even going old school and hitting up the envelope method! It doesn't really matter what you use, so long as you USE it and get something out of it. If it keeps your finances in check so you can frolic around with the more exciting parts of your life, you're doing things right.

PF Round Up: Britney Spears, Credit Cards, and College.

j@budgetsaresexy.com (J. Money) — Fri, 19 Jun 2009 11:26:00 +0000

Favorite Articles From The Web:

So Excited I Can't Sleep - A 401(k) song to the tune of Britney Spears! How can you go wrong?
In The Beginning....Credit Cards - A story about getting credit cards when they first came out! So awesome. Imagine not knowing how much of an influence they'd have on the world?!
September 23, 2005 - A personal journal entry by the main man Trent from Simple Dollar. Not only is the title catchy as hell, but it just goes to show how we can all evolve over time :)
6 Money Skills & Habits to Teach Your Kids Before College - Two of my favorites are noted - budgeting & spending less than you earn (so simple, yet so not-done!)
Video Entry: Net Worth Isn't About Money - Cool change of pace from reading.
You Know You're A Personal Finance Blogger When... Hilarious, yet oh so true.

Carnivals I Participated In:

Carnival of Top Personal Finance Posts #7 - Hosted by Joe TaxPayer. Only 6 posts get selected!
Money Hacks Carnival #69 - "Dollar Bill" ed. hosted by Own The Dollar.
Best of Money Carnival #3 - "Rolling Stones" ed. hosted by Wealth Pilgrim. (a new carnival that features just the top 10 faves for the week instead of the 100+ you usually see ;))
Carnival of Personal Finance - "209th Edition" hosted by Living Almost Large.
Carnival of Money Stories - "Father's Day" ed. hosted by Not The Jet Set.
Festival of Frugality #182 - "Revenge of The Fallen" ed. hosted by Stupid Cents.
Carnival of Pecuniary Delights #12 - "Catch A Wave" ed. hosted by Pecuniarities.

Money Saving Tips on Your Car Insurance

j@budgetsaresexy.com (J. Money) — Thu, 18 Jun 2009 15:37:00 +0000

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This is a guest post from the team at CarInsuranceQuote.net.
If you like what you see, check out their their website and see
how much you can save on your car insurance.
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With today's economy, most people are looking to save where ever they can. Whether it's brewing a pot of coffee at home rather than paying $4.00 at a cafe or skipping an annual vacation, consumers are tightening their belts. One great way to see immediate savings is to re-evaluate your car insurance.

The first place to start is with your car. If you are in the market for a new vehicle, consider the cost of insuring it along with the ticket price. Older and smaller cars with a high safety rating are likely to cost the least amount to insure. After shopping around and narrowing your selection to just a few possibilities, call an insurance agent to see about car insurance quotes on each make and model. The numbers could surprise you and you could opt for one vehicle over the other.

If you are not in the market for a new car, start by looking at your current auto insurance policy. (Here's what Mrs Budgetsaresexy and I pay) Are you missing out on any discounts? Talk to your insurance agent about good-driver discounts, good-student discounts and whether your profession qualifies you for any discounts. You can also take drivers safety courses that can lower your rates.

If you drive an older vehicle, you can consider dropping your collision and/or comprehensive coverage. If you car is worth less than 10 times the premium, purchasing full coverage may not be as cost effective. Instead, consider liability insurance as your affordable alternative. You can find out the worth of your car by looking online at Kelly's Blue Book. In any case, be sure to consult your insurance agent before dropping any coverage. They might suggest that you consider raising your vehicle's insurance deductible. By raising this part of your policy, you can lower your auto insurance premiums significantly. (Just make sure that you have enough cash reserves set aside in case of an accident.)

If you own your home or more than one car, talk to insurance agent that can bundle your insurance policies to save on each insured car you drive. If there are any other types of insurance that your company offers, it may be a good idea to talk to your agent about what else you can bundle to receive discounts on your coverage.

Believe or not, many insurance companies also utilize your credit rating to help them determine what type of risk you might be. Car insurance companies determine rates upon risk and if there is higher risk, rates will increase. You should always review your credit annually and look into how you might improve your credit score. Keeping a good credit score as one way to lower your car insurance rates.

All of these tips are a great way to reduce your rates, however, the quickest and easiest way to see the biggest drop in premiums is to shop around for car insurance. To get a car insurance quote, simply enter your basic information online with a comparison shopping website and you will be contacted by up to five local insurance agents offering you cheaper auto insurance rates. These agents know they are competing with other agents in your area, and in order to win your business, they will offer you the most complete coverage at the absolute cheapest price.