Budgets are Sexy.

I just bought the Caddy! AND, I slapped it on my Credit Card!

noreply@blogger.com (J. Money) — Fri, 18 Jul 2008 17:55:00 +0000

Betcha didn't see that one coming, eh? Haha...Yes, after 5 days of test driving, researching, and thinking about it all, I decided to buy the Cadillac :)

And to be honest, I'm not even sure it was the 100% best thing to do financially at this point, but I made a decision and I took the chance. That's really the best way to learn anyways, right?

So how much did it cost? What are the deets?

The Price:
It was only $3,100! It was originally priced at $5k a month ago, then dropped to $4k, and then to $3,400 when I saw it. Guess the crazy high gas prices scared everyone away? Well I took advantage, and as much as i felt bad for the guy, I had to offer lower - $2,800 in fact. After some more bargaining, we finally settled on the $3,100.

The Car:
1993 Cadillac DeVille! Shiny maroon-red with tan leather interior, carriage top, and impeccably clean for a car it's age. Seriously, the thing is a beast. The owner was a mechanic, and car fiend, so he tweaked all the parts and made sure it was in top shape. He even loaded it with a new exhaust system to get that nice gargling sound ;) Pimp, much? OH, and he also added an alarm system, along with key-less remote (which didn't come standard) AND the best yet - A remote engine starter! haha... so i can start it from inside my house on a cold wintery day! MMmmmmmm.

The Financing:
Once I realized I was falling in love with it, it was time to figure out the financing. I checked w/ our local credit union, where my current car's financed with, and they just laughed i my face saying the car was too old. I then checked out USAA, of course, and the best they could do was 6.75% - not bad, but not all that great.

Then i had one of those "Ah-Hah!" moments and got to thinking about my credit card! The interest is variable, but $hit, it's only 5% right now! And plus, I only plan on having the "loan" until I can sell and payoff the SUV. Soooooo, I called back USAA and asked if there were any specials running and they were! If i used one of those checks they send out with the statements, I could put the entire $3,100 on it for a measly 3.4%! And it's locked in for an entire year - now THAT's more like it ;)

So now what?
Yes I found the perfect car, for a perfect price, and with perfect financing (for me, that is - i don't recommend going the c/c route if you don't work well with them), but now I have TWO cars. And that's on top of Mrs. Budgetsaresexy's car too!

Well, I now have to sell my SUV. And I have a feeling it's gonna be a tough one these days. Anything with "SUV" and "higher gas prices" involved is sure to get tricky. And worst case? I'll pay a little interest on the card, pay a little extra insurance, and drop the price a bit. I can't imagine having the car for months on end (knock on wood), but it is something to consider...just not as yet ;)

So while a plan like this isn't for everyone, i really feel like i'm on the right track and that I picked up a great opportunity. And not only for the car itself (which is totally rad), but for our financial future as well.

The day of zero car payments isn't too far away!

All I have to do now is sit and pray for some good offers to come in. Can you imagine the relief of losing $443 monthly car payments? My goodness that's sexciting :) I might have done things the other way around here, but damnit if i don't feel alive right now. That's life baby!

Weekly carnival round up - aka weekend reading material :)

noreply@blogger.com (J. Money) — Fri, 18 Jul 2008 15:28:00 +0000

Here were the carnivals around town this week, including one that I personally hosted my self! And let me tell you, while it looks semi-easy and clear cut, those bad boys take a loooooot of work to put together. And I don't say that to toot my own horn (toot!), but only to give due respect to those hosting them, or thinking of hosting them, throughout the blogosphere. I'd also really like to see that term "carnival" go away too....it never sits right with me. But anyways, here are this week's links:

Finance Fiesta #7: Mamma Mia Edition, by Living Almost Large.
Money Hackers Carnival #20, Chicago style, by This Writer's Wallet. Made #1 editor's pick!
Carnival of Personal Finance #161: The "Feeling Renewed" Edition, by The Budgeting Babe.
Carnival of Debt Reduction - Gazelle Intense Edition , by Not the Jet Set.
Carnival of 20-Something Finances: "Viral Pictures" edition., by yours truly - J. Money

Stay tuned for my car post - coming up next ;)

I did it!!! 4 1/2 hours later, and no more floody flood!

noreply@blogger.com (J. Money) — Thu, 17 Jul 2008 20:05:00 +0000

WHEW! Seriously, i will forever have mad respect for plumbers - that job is no joke! I know they get paid (a lot) for it, but my goodness, I am one tired puppy.

But, 4 and 1/2 hours later, we have success :) There's a lot that went into it, most of which is pretty boring, but hey you might be bored, right? At the very least, you can relate to the new expenditures that were thrown into the mix. Of course, this is on top of this morning's $45 visit. *sigh*

I hold my head up high, though, as I officially did a house-related job all by my lonesome! I hope you're reading this Mrs. Budgetsaresexy ;)

Here's a semi-quick rundown of today's adventures:

Used hose on "jet" mode to try and unplug tube in cement - failed.
Tried two more times - backfired and hit J in the face ;( failed.
Used hacksaw to cut pipe. Not small enough. failed.
Went to neighbor's to borrow small saw. failed.
Went to Home Depot - Success!

bought skinnier hack saw - $11.97
bought petite coping saw - $6.99
bought thin skinny saw - $9.99
bought duct tape - $2.79
bought 2 flashlights - $6.97
bought 15 ft' plumbing snake - $9.99
bought long skinny plastic thingie - $1.98
TOTAL: Roughly $54.00

Tried out saw #1. failed.
Tried out saw #2. barely failed.
Tried out saw #3. Success!
Used hose on "jet" mode to try and unplug tube in cement - hit J. in the face, again. failed. again.
Went outside for 8w98405567th time to dig for outside pipe - SUCCESS!
Clean pipe of pact-in mud, rocks, and dirt - Success!
Put pizza in oven - Success!
Snake pipe a total of 13 times to rid of all stagnant water - Success!
Remember pizza is in oven - failed.
Take pizza out of oven, and eat pizza - failed.
Attach cut-off piece of pipe to pipe attached to A/C with pipe connector - Success!
Take a break and down 2 bottle of water, while sweating profusely over the 2 cats and watching the temperature rise once again to 84 degrees - Success!
Turn A/C back on and check all piping and dug tunnels.......SUCCESS!

See what i mean? Plumbers have it hard boy, I'll give them love any day of the week after what i just went through. But after all of that, here we are, 4 and 1/2 hours later....me eating my pizza (finally), and you reading what i have just typed. What a day!

All in all I spent a total of around $99.00, and it was well worth it. A job like this would have run around $125-$200 when I initially called to make an appointment! Ouchy mama that's a lot of money.

We now have a clean piping system, our A/C is back on full blast, my brain is pact full of knowledge, and I can now enjoy the rest of my day off. Oh, by the way - Did i ever mention i bought that cadillac last night? Post coming tomorrow :)

Ahhhhh our basement is flooding! (so why am i here posting?)

noreply@blogger.com (J. Money) — Thu, 17 Jul 2008 15:48:00 +0000

Because i needed a break ;) That, and i frugal'd (word?) my way into a discount! Mrs. Budgetsaresexy came home last night to find out that there's water swimming around our basement, and it was about to flood into our carpet! We luckily caught it in time, but have been trying to figure out what the F happened all night long - and without the A/C running :(

We narrowed it down to either our condensation pipe in the A/C unit, or the pipe embedded into the cement part of our basement. So i'm home from work dealing with it, and the A/C guy just came and left....and told me we needed a Plumber! D'OH. (have i mentioned how much i LOVE home ownership?)

He then turned around and said, "That'll be $89.00". ARGHHHHHH....I thought, and to which i replied with "well, since you're here, can you at least poke around a bit and give any pointers?" (I also brought in our little kitty in hopes he was a cat man...turns out he was!) He gladly looked around and told me some things i can do myself before calling in professional help. And, on top of that, he hooked me up w/ a 50% discount and only charged me $45!!!! HOTNESS.

So, either the cat won him over, or he just really felt bad for me ;) Either way, I'll take it! Now, if you'll excuse me, I have to go be Mr. Sexy Handyman...there's no way i'm dishing out more money without a fight!

I loaned my brother $1230 and I WILL be getting it back.

noreply@blogger.com (J. Money) — Wed, 16 Jul 2008 17:22:00 +0000

This is part two of a two part series on loaning family money. This is the GOOD part. (the not-so-good part is here)

Last year my darling bro was considering his first foray into home ownership. He was certain he could afford his condo, but he just wanted to be 200% sure. At the time I had a couple hundred dollars at my disposal each month, so I offered to hook him up.

Having just gone through the process myself, I knew it was kinda scary so we came up with a plan (might sound familiar from my net worth updates) and The Bank of J. had its first customer!

The Loan Details
We threw around some ideas, and ultimately came to the best way to pad his liquid cash AND relieve a little stress. It's pretty laxed over all, but we put down in a contract enforced by Dad. They always like to do that, don't they? Here's what we came up with:

$123 a month (10% of his total mortgage payments)
5% interest rate, compounded monthly. I wanted to bang out the importance of compounding interest and all, as well as make it more "official" (and likely) that he'd take it seriously and pay me back.
He can stop receiving payments at any time, no questions asked.
I can stop sending payments at any time, no questions asked.
No repayment date - in theory. He can pay back any and all of it at his own discretion, but it's "understood" that he'll do so as extra money comes in - or when/if he sells the condo.

The Past 10 Months
My brother has a tendency to lose track of things - even checks! So it hasn't been the smoothest of transactions over time, but it's not the worst that can happen, so it's all good. In fact, i've grown even more patient with him! Here's a breakdown of all transactions, along w/ the running total that I send over to keep things organized:

Oct check - $123.00 - cashed
Nov check - $123.00 - cashed
Dec check - $123.00 - cashed
Jan check - $123.00 - cashed
Feb check - $123.00 - cashed 3/05
Mar check - $123.00 - cashed 3/26
Apr check - $000.00 - *lost*
Apr/May check - $246.00 - cashed on 6/2
Jun check - $000.00 - *lost*
June/July check - $246.00 - pending

Total: $1230.00
Total with 5% interest (compounded monthly): $1258.54
*i used the calculator at: http://www.coolmath.com/calculators/calculator-annuity-1.html

Re-Payment is Near
We're going on the 11th month now, and he's already good to go! Not only has he gotten all his finances in order, but it seems he's actually INTERESTED in personal finance! *gasp* Perhaps his older brother has been planting some good seeds? (Uh thank you.)

The last loan installment from the Bank of J has been sent, and the period of re-payment officially starts today. I think sometimes people just need an extra push to get them started. And while he hasn't started paying me back yet, I'm pretty confident that it'll go smoothly. You'll be the second to know if it doesn't! (He'll be the first ;) )

There's a HUGE difference between my brother's situation, and my uncle's situation, but it does go to show that everyone has the *potential* to follow through with their promises. Thus, I shall continue to loan away!

People who like to "split the tab" are no longer my friends.

noreply@blogger.com (J. Money) — Tue, 15 Jul 2008 14:47:00 +0000

This whole splitting the bill business is really starting to get to me. It seems to be happening all the freakin' time!

I know it's easier and quicker to pay this way, but in most cases it's never fair for all parties involved. And do you ever notice that the person who brings it up, is usually the one who ordered more than everyon else?! HAH. In case you aren't in the mood to read about last night's adventure, and i wouldn't blame you, I'll start by blabbing the moral of the story:

Always ask for separate checks. That's it.

Many of the frugal-minded may already know this, and i *thought* i did too, but it turns out my actions don't always correlate w/ my brain. Here's a breakdown of how the events played out last night:

Pre-Dinner Planning
Mrs Budgetsaresexy gets an email from Doris (made-up name) asking us to meet up for dinner w/ her husband (Bob) and another couple. We say it sounds fun, and will stop by for drinks only, as we're trying to save money w/ Grad school coming up. According to Doris, though, this is "silly" and we shoud "just eat w/ everyone" as it's not that expensive.

Well true, but only depending on your definition of expensive. If you're comparing a home-made meal at $7 total vs. $15 plates, without drinks, tips, and taxes - it's expensive. To avoid the argument though, we brush it off and say we'll play it by ear.

On the Way to Dinner
Turns out we were STARVING by the time we left work, and we realized that even if we DID hold in our hunger and go for the 2-drink idea, we'd still blow through $20 between the two of us ($5/drink x 4). So we agreed to find the cheapest, but still enjoyable, meals as well as a side of free water ;)

The Dinner
The meals were lovely, the water quenching, and we had a nice evening out for what we thought was $21 plus a little tax and tip. We were wrong.

The Check
The check comes and Bob (Doris' spouse), who had a beer AND a $15 plate brings up the famous "let's split it evenly" deal. All i could think was "$hit! We forgot to get the separate check". I know he didn't any harm by it, the guy's pretty cool, but it's like COME ON!

We consumed 2 meals for the price of yours alone.
We told you we were trying to save money!
And....I dunno... but it's really not nice.

I stood my ground, at first, and said nah I think we'll just pay for our portion. Only problem was i had two $20, and wanted to only lay down $27 thinking i could just get change or something. Again, that didn't fly - at least from the look on Bob's face. The other couple didn't seem to care one way or the other, so it was 4 faces towards me waiting for an answer.

I lost the battle.
F it. I'm not gonna cause a scene over a few bucks, ya know? I wasn't in the mood for any more awkward moments, and i certainly didn't want to explain WHY exactly i didn't think it was fair to split it "evenly". So we paid our $31.00, which was $4 more than we had signed up for, and said our goodbyes. Then, once in the car and far away from anyone, we relieved ourselves of our bitter thoughts and got it out in the air to each other ;) You gotta cope somehow!

The moral here? Again, ask for separate checks when you first arrive. It might be hard to remember at first, but I think if we can start getting used to it we'll be happy in the long run. I'm tired of letting these lazy, not-frugal, people get away with my George Washingtons. Those guys belong in one spot, and one spot only - My pockets ;)

Carnival of 20-Something Finances: "Viral Pictures" edition.

noreply@blogger.com (J. Money) — Mon, 14 Jul 2008 10:32:00 +0000

Goooooooooood morning my fellow PF readers and bloggers! Welcome to today's Carnival of 20-Something Finances - the "Viral Pictures" edition.

We all get them from time to time, but not once have they ever been associated with personal finance. Today that changes! So before you start the week "working", take a couple more minutes to yourself and enjoy the fruit of our 20-something minds ;)

I can't promise it won't bring back fond ol' memories of yesteryear, but I CAN promise there's some great nuggets of information here. You might even learn something today, imagine that?

So click around a bit and see what you can find. And if you're in a rush, be sure to at least check out the editor's picks. Then, and only then, you have my permission to get the day started ;)

Without further ado, here are the chosen articles....along with pictures that may, or may not, involve excess drinking and a load of tom foolery. Enjoy!

Editor's Picks.

These trophies are for you! Your hard work and dedication to personal finance has paid off, and I thank you for adding goodness to the blogosphere. Check 'em out before your A.D.D. kicks in ;)

Roshawn Watson presents Tori Spelling - Unsung Financial Hero? over on Watson Inc. It's hard to believe, but former 90210 actress Tori Spelling's entrepreneurial side is impressive. She designs and markets her own line of jewelry, ran the country Chateau La Rue Inn, owns a production company, and penned a NY Times best-seller! Come again?
Hilary Green gives us the Cars Under $25,000, and writes for Cars for Girls. There aren't many things sexier than a woman who knows her cars, and Hilary sure knows her stuff. Her site, Cars for Girls, helps to "empower women by respecting and educating them in order to help them make smarter buying decisions." Rock it out girl!
Raymond shares How Credit Scores Work And How Scores Are Calculated at Money Blue Book Personal Finance. An awesome, and in depth, review of credit card goodness. It's a long one, but you'll come away a lot smarter for sure! At the very least, check out the graph midway through for a snapshot on HOW they're calculated.
Benjamin gets into The Complete Guide to Protecting Your Credit and Identity posted at Trees Full of Money. Identity theft can happen to anyone from age 1 to age 100, so it's always great to be on top things. Benjamin shares with us the steps necessary to maximize our protection against this indecent crime.

Get Your Mind Right.

Don't let anyone foil your fun! (sorry, i couldn't resist). When it comes to financial mindsets, we can be all over the place, but it doesn't have to be that way. The key is understanding all the players on the field so you can put a game plan in action. These bloggers evaluate their own "financial mindsets" and can help get ya started.

Tiffanie presents why a personal finance blog, you ask? A voyeuristic look into her financial past over at we like money.
Nadege shares The actions I took that created my financial peak posted at fabulous finances. Nadege believes it's a good idea to review your financial picture every now and then and see where you stand.
Dorian Wales writes My View of Frugal Thinking over at The Personal Financier. She presents her thoughts on frugality and personal finance literacy.
Brooke shares her Groundhog Day Goals - 7 July over at Dollar Frugal. A pretty nifty idea - revisiting her goals each month on the month-date matching (2/2, 3/3, 7/7, etc).
Anand presents How to Master Money & Wealth Raising Your Financial Awareness posted at AnandDhillon.com - Self-Help for Self-Mastery. This article details a plan for increasing your awareness of your financial situation. With increased awareness comes the opportunity to make better choices and improve your finances. No doubt!

The Opposite of Don't Ask, Don't Tell.

Unlike the military, we here at Budgets Are Sexy encourage any and all questions - how else are you to learn? Here are some of the q's going around the 20-something's minds these days.

KC Lau asks: Do you have the assets to pay for your liabilities? over on KCLau's Money Tips. You know I do baby! An article on whether one has the assets to pay off liabilities and how to obtain assets
Toni Graybill presents What is wealth? posted at Maximize Health and Wealth and adds it's a "simple explanation of your why and what".
LAL presents Etiquette Question posted at LivingAlmostLarge. In our 20s we attend so many weddings. Is there etiquette for going or not?
Lexie Puckett presents Saving Money Tip - What Does Recession Mean To You? from Budget Lexicon. This post discusses why twenty somethings need to be concerned about the current state of the economy and how we can financially protect ourselves

Edumacation 101.

Don't wake up one day like this girl, get out there and keep doing your thing! You can never learn too much - and if you think you do, you're on crack. Did you know that there are square watermelons in Japan? Did you know that Coca-cola was originally green? These posts below aren't as good for cocktail parties, but they sure work for the wallet!

ChristianPF presents Hypermiling 101 - ways to save lots of gas posted at Christian Debt help. The simple steps and tips the hypermilers use to get more than double the gas mileage the rest of us get.
Woman Tribune presents Mind Your Own Business Girls: Business Coaching, Education & Empowerment for Woman Entrepreneurs over on Woman Tribune, adding "Earn a six figure income working just a few hours a week. Join Mind Your Own Business Girls for business coaching, education & empowerment for woman entrepreneurs."
Tip Diva shares Tip Diva Top Ten Tips - If Your Wallet Is Stolen over at Tip Diva. She unfortunately had her wallet stolen the other day! Luckily, her ATM card and driver’s license were not in the wallet, but the perp decided to buy $200 worth of train tickets using her credit cards. Here’s what to do in case your wallet is stolen.
Kristine shows that Debit Card Fraud is Much More Damaging Than Credit Card Fraud over on The Money Wise Coach. A thief paid a visit to her as well, unfortunately, but she's all the smarter now because of it!
DMH presents Wedding Tips: Get Three+ Catering Quotes posted at Daily Money Hack. It's always a good idea to get multiple quotes!
Mr Credit Card presents Finances vs. Credit Part 2 of 4: Debt Consolidation posted at Ask Mr Credit Card. A great post to read before xfering a c/c balance over, or picking a consolidation company.
The Shark Investor presents Do It Yourself Projects As A Source Of Alternative Income posted at The Shark Investor. A good look at when doing it yourself actually makes senese.
Lauren presents 11 Easy Ways to Save on Gas over on FGC Auto Blog. We can use as many tips as we can these days!
Dan Green presents Why You Can't Get Your Rate Quote From Freddie Mac's Weekly Survey on The Mortgage Reports. He recommends igoring the online rate reports, saying it's nearly impossible to get a "ballpark mortgage rate" unless you talk with a loan officer.
Joe Caterisano presents 26 tips to save money on gasoline posted at Penny Pinching. one of them is "Walk. It is also good exercise." haha...I love it.
Tyler presents Colgate Washes Up Another Dividend posted at Dividend Investor. He gives a look at Colgate and the potential the company has to be a great long-term dividend growth stock - and why now may be the time to invest.

Paying for the Edumacation.

Unlike the air we breath, we have to pay for these extra smarts. It's definitely no fun, of course, but not to worry as there's always help around the corner. Take a gander at these to get you on the right track.

jim shares his Sixty Second Guide to Stafford Loan Consolidation over on Blueprint for Financial Prosperity, and includes a quick rundown of the new rates starting July 1st. I have to agree, consolidation is KEY. And there's definitely no "magic trick" about it.
Finance Tips 101 presents Scholarship And Grant Information For Interested High School Graduates posted at Finance Tips 101. A great read if you're about to jump into the most beautiful land there is - College. Just think of what you can do w/ all that money you'd save w/ a scholarship?
Hanna Kassis presents Tax Breaks for College Students: pt. 2 over on College Finance 101. Already in college? Take a good look at this post.

Well, that's it kiddies! As always, if you liked what you saw think about signing up to the old feed of mine. It was a pleasure being your host, and i hope you at least got some nice eye candy before starting out the week. Now if you'll excuse me, i have to go scour my email for some more goodies!

Holler,

O.M.G. I might be buying a new car.

noreply@blogger.com (J. Money) — Sat, 12 Jul 2008 19:56:00 +0000

I just came across a killer Cadillac on Craigslist, test drove it, and now i want it! I really shouldn't have gone over to look at it, but I couldn't help myself. The best part, besides the price ($3,400!), is that it's owned by a mechanic! And one who enjoys supping it up a bit too ;)

I'm doing the research on it now, and will give my self a cple days to take it all in, but i'm 75% thinking of getting it. If i can figure out a way to pay it off quickly, that would mean ZERO car payments! Yes, gas would be crazy obnoxious, but at least i wouldn't have that $24k car note, right?

Ahhhhhhhhh Kelly Clarkson...

Even if i were loaded, i still wouldn't blow my money.

noreply@blogger.com (J. Money) — Fri, 11 Jul 2008 16:02:00 +0000

Chairs "on sale" for $479? Each? I love my posterior, but not THAT much! haha... that's seriously a lot of dough. I'd ask if anyone disagrees with me, but it's probably pointless on a blog dedicated to personal finance. It really does amaze me, though, that there's a market for this stuff. And even worse, this is probably on the lower side of high-end furniture. Can you imagine dishing out a couple thousand for a single chair? *shiver*

It reminds me of those loonies who pay $10,000 for a balled up piece of gum once chewed by Britney Spears. Well okay, maybe not, that's kinda cool depending on how you look at it ;) But do you think they actually believe it'll make them happier, or are they just feeding another vice like the rest of us?

Either way, I'll just pretend they spend their waking hours promoting peace, and saving future generations from starvation and disease. And in that case, by all means spend away!

(but seriously, if you ever catch me buying this stuff go ahead and punch me in the face.)

Some weekend reading material for ya. Yummy.

noreply@blogger.com (J. Money) — Fri, 11 Jul 2008 15:38:00 +0000

If you find yourself antsy over the weekend when your favorite blogger(s) are chillaxing, take a peak at some of these carnivals to get you going. Maybe you can play "Where's J. Money" and see if you can find my posts?

I'll give you a hint, i made Editor's Choice on one and even made it to the tippy top! If that isn't sexy, i dont' know what is. (i lied, i know a lot of things that are sexy. two of them are bonus's and beer, of which i am at a loss of both currently.) Enjoy!

Festival of Frugality "Bare Necessities Edition", hosted by Squawkfox. *Best. Edition. Ever. See if you can figure out why ;)
Finance Fiesta "No Debt Plan Edition", hosted by No Debt Plan.
Carnival of Debt Reduction #147, hosted by Help My Cash Grow.
Carnival of Personal Finance "American Flag Edition", hosted by Mighty Bargain Hunter
Money Hacks Carnival "Personal Finance Destinations", hosted by Money Hackers Network.

ps: I'm hosting the Carnival of 20-Something Finances Monday, so look out for some interesting pix!

I loaned my uncle $100, and i will not be getting it back.

noreply@blogger.com (J. Money) — Thu, 10 Jul 2008 14:31:00 +0000

This is part one of a two part series on loaning family money. This is the not-so-good part.

When it comes to mixing money & family, i'm usually against it. As it turns out though, i can easily be convinced ;)

People say they'll loan out money if they trust they'll get it back, but how do you know who WILL and who WON'T do so? Are your friends and family inherently trustful in this dept? For me, If i'm not sure I can trust you, I'll at least test the waters.

my uncle's situation.
He's in his late 50's, broke, and unfortunately barely living off unemployment, disability, and who knows what else. He's been loaned money dozens and dozens of times (literally) by friends and family, and has rarely paid them back - if ever.

So WHY exactly did i loan him money? Well, when it comes down to it I love him to death. He's always been the "cool" and "fun" uncle, and I REALLY wanted to give him a chance to redeem himself, at least in the eyes of his direct family. Of course, there was no way in hell i was gonna tell my parents this - they've lost thousands and have had enough.

He asked for $400 so he can finally move back to the area and be closer to all of us, and promised to repay it back within 2 months, but ESPECIALLY before our wedding. At the time, that was 3 months away.

Initially i thought Hell to the No! I need that money for the wedding, and the odds of getting it back, at least according to past history, was a good 10% - if that. But you know what? I figured i've never been burnt by him before, and it's probably taken a lot of guts to ask for $ from someone half his age. And he MUST be serious in returning it ESPECIALLY because of the upcoming wedding.

Instead of the full $400, I agreed to $100 and blamed it on my lack of savings. I had to determine an amount that i could easily lose and still be okay with - and $100 was the magic number. We'd still be okay for the wedding, and I had just received a bonus so I could budget it in there fine. I also told him that if he paid it back on time, I will gladly loan him more down the road.

He understood, and was extremely gracious for it, so i dropped that bad boy in the mail hoping to one day see it again. And even more so to raise other's opinion of him. It felt GREAT inside, and I forgot about it...apparently, he did too :(

my benjamin's situation.
It's now been 4 and 1/2 months, the wedding has come and gone, and the money is still "1 paycheck away". And by paycheck, I mean the unemployment check as he hasn't worked for quite some time.

The purpose of this post though isn't to rag on my poor uncle (well okay, it is a little...but only cuz i need to vent somewhere!), but it's really to help put things in perspective when this stuff happens. I'm definitely pissed i'm out the $100, but i have to remember that he needed it more than i did.

In all honesty, I can't really blame anyone but myself. I knew full well that the odds were stacked against me going into this one. And regardless of his intentions or excuses, I at least accomplished my original goal - to give him a chance. It didn't end pretty, but i'm gonna do my best to forgive and forget.

My Financial Vice is not from Miami...so where, then?

noreply@blogger.com (J. Money) — Wed, 09 Jul 2008 14:45:00 +0000

Nickel posed a great question the other day asking "What is your biggest financial vice?" His was eating out 3-4 times a week for lunch, and it seemed the same for many of the other commenters as well. Although my favorite so far is the gambler who lost $20k last year (ouch) - that's definitely a vice alright! But who doesn't love Texas Hold'Em?

So here i am trying to figure out my own biggest vice, and for once in my life i can't place it! I seriously don't spend my money as crazily as i used to. If you were to ask me 6 months ago, I would have no problem coming up with them - TJ Maxx addiction, Eating lunch out 5x week, and lottery tickets to name a few.

The biggest, however, would have been my sporadic splurging! I can't remember all of them, but I'd say i had at LEAST 4 big ones last year. As i mentioned in my ode to splurging article the other week, this included a little bling action & a little electronic action. I'd never take them back (i love those presents to myself!), but i sure as hell haven't splurged this year.

But what about now? Where do my naughty George Washingtons go? Well, if i had to choose one, and you know i do, i'm gonna have to go with Expensive Bananas. That's right buster, you heard me. If I have a strong hankering for one of those delicious beauties, there is no stopping me on how far i'll go to get one.

While they won't ever kill my budget, you'd be surprised at how much they go for in places. Here in DC they range from 75¢ to $1.00, depending on where you get them - a fast food joint, a street vendor, the train station, etc. Unfortunately my craving usually takes place at an airport, where i've been known to drop an entire $1.19 (gasp!).

What about you guys ? Does your financial vice beat mine?

I am taking Mrs. Budgetsaresexy's last name. (holler)

noreply@blogger.com (J. Money) — Wed, 09 Jul 2008 13:32:00 +0000

Awww Yeah! I will now be going as "J. Money", instead of "J. Savings" (You didn't know that was her last name?) I figure I owe it to her since she'll be taking my last name in the real world ;)

Actually, the REAL reason i'm changing it is because it just sounds a helluva lot cooler. I one time "found" this license plate back in college that said C. Money, and it always stuck with me. Plus, it doesn't matter all that much right? I'm already anonymous! haha... And funny enough, it was actually a fellow blogger who had called me J. Money on a post by accident! So thank you, good sir.

I pretty much go as just "J" anyways, but thought i should give you the heads up. And don't worry, my email (j at budgets are sexy dot com) will remain the same and all. Okay, that is it. Carry on.

Book Review: The Millionaire Next Door

noreply@blogger.com (J. Money) — Tue, 08 Jul 2008 16:39:00 +0000

BOOK: The Millionaire Next Door
AUTHOR: Thomas J. Stanley, William D. Danko
SEXINESS: 4 Thumbs ups! (toes count)

Tied for my all-time favorite financial book! Where as The Automatical Millionaire (the other favorite) shows you HOW to reach your goals, this book helps get your "financial mind" positioned right - and does so brilliantly!

There's one defining concept portrayed throughout:
Always live below your means.

You do this, no matter your age, salary, etc, and your wealth will grow exponentially - and so will your peace of mind :) That's not to say you can't be a millionaire AND have fancy things, of course, but just that these guys choose not to.

Even if you DO earn a crazy high income, it doesn't necessarily mean you'll be rich (aka have a high net worth). The same holds true with the highly educated:

"How can well-educated, high-income people be so naive about money? Because being a well-educated, hight-income earner does not automatically translate into financial independence. It takes planning and sacrificing"

Amen brother. If only they knew about our blogs! haha ... So who are these Pimps?

According to Stanley & Danko, the average millionaire is:

57 years old, Male, and married with 3 children. 70% of them earn 80% or more of their household income.
Self-employed (2/3rds of them). 1 in 5 are retired.
A homeowner. 97% of them own homes, which are valued around $320,000.
First-generation affluent (80%) - meaning they are self-made millionaires, not because they inherited all their money.

And, on average, they:

Invest nearly 20% of their household realized income EACH YEAR.
Have total annual realized (taxable) incomes of $131,000, with average incomes at $247,000.
Live well below their means, wear inexpensive suits and drive American-made cars.
Have wives who are planners and meticulous budgeters. (they know what's up! Sexy all the way baby... i don't care what others say).
They have a "go-to-hell fund" - basically, enough to quit working for 10+ years if they really wanted.
And, are mostly tightwads! haha... hence, one of the main reasons they agreed to complete a long questionnaire for a few crispy dollar bills.

This is all broken down throughout the chapters, so if you get bored with one pile of stats, you can easily move on to others. They also categorize high earners into what they call PAWS and UAWS, and then compare the differences between them. PAWS are "Prodigious accumulator of wealth", and UAWS are "Under accumulator of wealth". You want to be a PAW ;)

In all honesty, reading this book has become the financial ying to my yang. It goes right up there with the purchase of our house and living off a budget - I love it! You really do get to know their way of life, and it really sticks.

The ONLY thing i'd like to see is an updated version of this bad boy. While i'm sure this "way of life" hasn't changed much over the years, i bet the stats sure have! A ton of stuff has happenend since this book published in 1996. (You hear that Stanley & Danko? If you do this for me, I promise you 1 (one) sale of this new book)

I totally recommend this book to anyone interested in furthering their financial education. A+ baby, all the way!

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* You can buy the book here: The Millionaire Next Door
* And you can check out other book reviews here: Book Reviews

We are keeping our variable interest rate on our Heloc.

noreply@blogger.com (J. Money) — Tue, 08 Jul 2008 13:44:00 +0000

The Mrs. and i have made a decision on our HELOC dilemma! We have decided to stick with option #1 - to continue going with the variable rate with no locks. Your comments definitely helped us put things in perspective, and we feel the odds are in our favor :) And with the other week's news about the Fed leaving the rates unchanged, i'm thinking we're on the right path.

The worst that can happen is it starts to go up over time, but even so history shows the prime rate hasn't gone above 10% in 25 years...and if disaster does strike, raising it above this threshold, we'd hopefully be long gone with the loan anyways, or at least re-financed by then.

And if we're all wrong? well.....let's just say i'll be concocting some pretty colorful posts! That is, after i wipe up all the tears from my keyboard.

Start Investing by 26, Retire a Millionaire by 67

noreply@blogger.com (J. Money) — Mon, 07 Jul 2008 15:22:00 +0000

Man it was hard getting up this morning! I think i overdosed on hazelnutt coffee yesterday while sitting in 9-hour beach traffic...which is sad, considering i'm sipping on MORE as we speak ;) Addicted much? haha...

At any rate, I came across a link for the Motley Fool in my inbox the other day, and think you might enjoy it. It's one of those "million dollar calculation" type articles, which are always fascinating to me - especially considering i'm working on my OWN millionaire plan!

The stats, themselves, never change of course, but the way people write about them sure do. This particular article states that if you do the following ONE TIME ONLY in a year, you could be ritch b*tch! (in the voice of dave chappelle on james brown):

Max out your 401k contributions for the year
Max out your IRA contributions for the year
Earn historical average returns of 10%
And do so by the age of 26.

You will become a millionaire by the time you retire!

Sexy, right? Sure thing, but as cool as it sounds (anything to do with a million dollars is cool to me!), it's not as simple or easy to do. A lot of the variables are discussed in the article, but to reach the above, for example, it means you'd have to come up with that initial $20,500! Y-I-K-E-S.

Compound interest is your friend, but it sure doesn't perform miracles ;) Plus, there's the whole "inflation" stuff, but that's another story. The Fool also adds:

In order for most 26-year-olds to save $20,500 in a single year, they'd either
need to find a fabulously high-paying job or a rent-free room in their parents'
basement. Either way, they'd probably be living on a strict diet of ramen
noodles.

Haha...agreed. Of course, saving a butt-load early on is killer for any goals you might have. Just because you can't be superman and invest a huge lump sum like that, by all means keep plopping those dollars into your account!

And if your goal is to indeed reach that $1 million dollar mark, then create your own plan and stick to it (I used this millionaire calculator to get started on my personal goal). You'll be that much closer either way you look at it.

And be sure to holler back too so we can track your progress and learn :)

God bless the U.S.A, and God bless your money ;)

noreply@blogger.com (J. Money) — Fri, 04 Jul 2008 20:36:00 +0000

May you have a Fab. 4th!
I hope you enjoyed today's guest post :) If you need some more reading material over the weekend, here is some fluff for ya:

- The hunt is over, I found my george Washington!
- Check this - a Funeral Home serves coffee?
- Can today be a "Zero Spend Day"?

God bless!

Budgets are for Lovers (they sure are!)

noreply@blogger.com (J. Money) — Fri, 04 Jul 2008 10:32:00 +0000

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Guest Post: Pamela Grundy, writer for Personal Finance Analyst. Personal Finance Analyst is an online community of bloggers dedicated to taking the mystery out of money and helping you to live a happier, more successful life with the money you have. (sprinkled with a little humor!)

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Scented candles, fresh flowers, satin sheets, dark Belgium chocolate, imported Beaujolais, a crusty baguette, some warm Brie with almonds, and a budget session: Does it get any better than that?

OK, so maybe it does get better than that (especially the first year), but the point is,
Budgets are a lot sexier than most newlyweds realize.

In fact, I’d go so far as to say that if more young couples discovered the joy of budgets, the divorce rate would plummet by as much as 50%. It isn’t sex or politics that sinks committed relationships, its money: misunderstandings about money, lack of money, secrecy and shame over money, recklessness with money, money emergencies and disasters, and lack of agreement over what to do with money when there actually is some, and so on and so forth.

It's Preventable.
What is particularly sad about this fact is that it is so preventable. All you really need is (that’s right, here it comes…) a realistic budget that you work out together as early in your relationship as possible, and the willingness to revisit it as necessary. Making a budget doesn’t have to be tedious and depressing if you use it as an opportunity to talk about who you each are separately and what you each need and want; who you want to be together and how to create that; where you want to be in five, ten, even thirty years; and how to make all that happen.

Most budgets fail because people fail to be honest about their spending habits. Maybe you don’t want the woman you adore to know that you spend eight dollars a day on lunch and sometimes hit the drive-thru for a four dollar snack on top of that, every day, day after day. Maybe you don’t want the handsome construction worker you just married to know that if you don’t buy at least four pairs of $80 shoes every single season (in different hot colors) you will surely die, so you don’t mention that. Maybe neither of you is even dimly aware of what you actually spend in any given week.

Start out With The Good Stuff
But before you dive into that can of worms, start out with the good stuff: Explore some mutual goal setting. Do you want to buy a house in five years? Figure out what that will take. Does one of you need a car (or want a new one)? Write that down. Just get it all on paper at first, and talk about your dreams and aspirations without being negative or critical.

Now write out all the monthly expenses: rent or mortgage payments, utilities, groceries, entertainment, insurance, miscellaneous. Decide how you want to pay these. Some couples pool all their income into one joint account and assign the bill paying to one person once the budget is drawn up. If this works, great, but often it’s a recipe for disaster. If one or both people spend money from the account and those expenditures are not in the budget, a shortfall will result and fighting often follows.

Compromise is Key
A compromise that works for many couples is to have a household checking and savings account, and separate personal accounts (for those eight dollar lunches that you absolutely can keep having if they really matter that much to you… or the green shoes, whichever, it’s your money). If you have a special goal you are saving for, you can set up a special account for that and have the money taken directly from each of your paychecks.

Inequality in Wages
Another issue that comes up is inequality in wages. If one of you makes a lot more money than the other, you have to decide how to share expenses. Sometimes fifty/fifty is painful when one person’s entire check disappears into the monthly bills while the other person is left with wads of money to blow on toys more appropriate to single persons. If you suspect this issue might get ugly, better to have the romantic budget session while you are still dating. That way, either of you can bail (or back out gracefully) before you really get yourselves in a mess.

An Example
I once had a boyfriend who made about $70,000 a year at a time in my life when I was a graduate student and made only about $15,000 a year. I could not afford to go to the places he wanted to go to; I just didn’t make enough money for that. He proposed a budget solution. Whenever we went out to eat and the bill came, he would whip out a pocket calculator. By his calculations, $15,000 is 21% of $70,000 so if the bill was, say, $32.89 for dinner for the two of us, he would take 21% of $32.89 and ask me for my share, which in that case would have equalled $6.91. Sometimes he would spring for the tip all by himself.

You know what? I didn’t marry that guy. What a jerk! But, you know, without the beauty of budgeting how else would I have known to run away as fast as my little feet could carry me? Talking about money can be hard, it can be awkward, but it can be sexy as hell. Twenty minutes of money talk will tell you more about your beloved and the depth of your relationship than twenty months in the bedroom ever will, and isn’t that really what intimacy is all about? Learning about whom your beloved really is and what your life together will be?

So fear not. Set the mood. Put on a little Barry White. And whip out those calculators.

You’ll be so glad you did.

Net Worth: JUNE - I lied, I'm still flying solo this round!

noreply@blogger.com (J. Money) — Thu, 03 Jul 2008 15:09:00 +0000

That's right, i'm way too lazy/unmotivated to combine our financial lives as yet.

Plus, by this time in 2 months she'll be in Grad School full time which complicates things even more. (although i AM happy for her!)

So the goal is to combine forces by the end of August. I think that's a fairly good goal :)

That means I have another net worth update or two before the madness begins - Woohoo!

Now that the wedding is over though, things are starting to calm down a bit and we're now back in "normal" land - and what better way to start out than being up $4,122.39 for the month! No more wedding expenditures, no more travel costs, just back to plain ol' saving mode.

Here's how it breaks down this month:

Cash Savings: This is what i like about these monthly check ups - i had NO idea i had such a big jump in cash flow! Mainly because we used most of our wedding cash to pay off all our credit card debt. We've been saving a lot from our heloc, and i've been super frugal lately, so this def. keeps me motivated to keep it up.

Roth IRA: Sucky for sure, but whatcha gonna do about it, ya know? It can't go up all that much anyways since i've stopped making deposits. It's totally at the mercy of the markets.

401k: *OUCH* While this one definitely sucks, at least it wasn't a surprise. I put in $2,375 this month, and the market stole almost double back from me - $4,354.60. Bastards.

Savings Bonds: Picked up another bond as a wedding present ($500 - currently valued at $250), and earned a few bucks from interest off the others.

Condo Investment: I'm starting to include the 5% interest here (compounded monthly), since it will be the amount I'll be paid back. I used a new calculator for this one. My brother says he'll only need 2 more months, and then he'll be set to go and ready to start paying it back. He grows up so fast! haha...

Home Equity: Same as it's been over the past few months. Don't plan on paying more than the interest on both our mortgages yet.

Auto Worth (kbb): Well, well, well - I actually paid MORE off this month than my car lost in value. YEEEEEEEEEEEEEES! about damn time ;) We'll see what next month brings, but it looks like i lose less each month (fingers crossed). Here are the amounts from the past 5 months, respectively: $1425, $925, $850, $675, and now $175.

Credit Cards: ZERO! It's been a good 18 months since i've had absolutely no credit card debt, and i'm planning on keeping it that way :) easier said than done, of course, but i'm up for the challenge.

Auto Loan: My car net worth went up $153.74! (my principal payment minus value loss) You won't hear a complaint outta me this round, that's for sure. And selling of the car is def. on the backburner.

That about wraps it up this month. Let's hope the market turns around and the crazy investors turn into smart investors, eh? Happy day before the 4th of July! And enjoy tomorrow's guest post :)

* I have updated my sweeet side bars - one of my fav. things to do!
*Feel free to also check out my past Net Worth updates.

Carnivals, Festivals, and Links - Oh My!

noreply@blogger.com (J. Money) — Thu, 03 Jul 2008 14:31:00 +0000

That was the best title i could come up with this morning - i'm sorry (burries head under desk). As if i didn't throw 60+ links out here already w/ my hosting of the Festival of Frugality, here are a few others i participated in.

It's a beautiful long weekend coming up, so this should tide you over in the event Uncle Tom has 1 too many again.

Money Hacks Carnival #19 - "The Independence Edition" hosted by Sound Money Matters. Awww yeah, 4th of July coming soon baby!
Carnival of Debt Reduction #146 - "Financial Independence Day" ed. hosted by Destroy Debt. I'm noticing a pattern here ;)
Carnival of Personal Finance #159 - "The First Zero-Emissions City" ed. hosted by Greener Pastures. Green is the way to go these days!
Carnival of 20-Something Finances - "Brazil-Carnival Style!" hosted by Dollar Frugal. Makes me wanna be a college student all over again ;)
Finance Fiesta #5 - hosted by Rocket Finance. "Dora the Explorer" is mentioned. nice! On of my would you rather's is highlighted at the top after the editor's picks. double nice!

I'll be out on the sunny beaches of the Outer Banks this weekend, so give a shout if you run in to me ;) How funny would that be? if you and i were chillin' on the beach and we had nooooooo idea who the other one was? verrrry interesting...

You're walking down the street & find $20. What do you do?

noreply@blogger.com (J. Money) — Wed, 02 Jul 2008 18:12:00 +0000

Has this ever happened to you? I once found an $82 chunk outside of my car in a parking lot. I was scared someone was watching me, or pranking me, but not a soul was around so i shoved it in my pocket and sped away. i survived ;)

Now, for some reason, I feel it's about to happen again. Only this time on the crowded streets. I can't really justify this feeling, unless count my ESPN (haha), but it's always interesting to think about. If you found it in the middle the street, would you even *try* to find it's owner?

Talking personal finance with neighbors/strangers.

noreply@blogger.com (J. Money) — Wed, 02 Jul 2008 15:16:00 +0000

I was out on my deck last night talking with our deck neighbor (we live in townhouses), and he asked me something i don't often hear a lot. He asked me "what i like to do for fun". Simple question, but i always get caught off guard with that one. I think it's because i can never actually REMEMBER what i do for fun ;)

Last night, however, i was able to get out how much i enjoy reading personal finance blogs. And it's funny doing this because 3 things always happen without fail:

No matter how you bring it up, it always comes out dorky! haha... i don't have a problem with that personally, i just wonder if anyone has pulled it off in a cool way? I can see older people discussing it just fine, but never have i heard it shared by anyone in their 20's...as sad as that is.
People are usually shocked to hear it. I don't blame them, really. Have YOU ever been told that reading up on finances were on someone's "Fun List"? And being told on blogs, or comments, doesn't count ;)
They want to know "secrets". This, ofcourse, after their shock fades way. It's not every day peers can talk openly about finances, so i can only imagine how far pieces of information could help them.

It also gets tricky because not only do i blog about it myself, but i'm ANONYMOUS! So, it's either let someone else in on my secret, or tell them how wonderful other blogs are to help them get started on learning! And then, of course, secretly hope they come across THIS blog and rave about it ;) OR, better yet, figure out that it's my blog so i can talk openly about it all.

As you may have noticed, i teeter on whether to tell friends and family i do this, or to keep blogging away in secret.

There are pros and cons to both, but it WOULD give them a better understanding as to why i think personal finance is important. And hopefully they'd be willing to educate themselves more, or at least poke around a bit and ask questions.)

I ended up sticking with the Anon. route, as hard as it was, and giving my neighbor few of my favorite blogs to get started (mymoneyblog.com, cleverdude.com, and krystalatwork.blogspot.com). Those are a mix between super informative, a mix of everything, and diary-type writing styles (respectively). Everyone has their own preference, so i'm hoping he'll get something from at least one of them.

I really didn't know how to answer the "secrets" part. It's always hard when you don't know that person's situation, nor finance expertise, you know? I don't wanna go into something they already know, only to have them lose interest and think they "know everything" already and thus not wanting to learn more.

So I started by speaking generally to get a feel for things. Our convo. worked itself to credit cards and credit scores, so i chimed in with a few "secrets" regarding those like:

The average household has around $8k in credit card debt. At least that's what everyone says, but whether it's true or not, at least you know you're not alone.
Raise your credit limit, and lower your interest rate. This will help lower your debt to ratio, AND increase your credit score - especially if you don't have much credit at all. All of this can usually be done by making a simple phone call to your c/c company.
Make a budget - My favorite! (I wonder why?) Try tracking your expenses for 3 months to get an overall picture of everything, and then create a budget out of it. That was one of the best things i have ever done. You just need to do it once, and you're set for the rest of your life (because you'll adjust it as time goes on).

It was seriously one of the best talks i've had with a sorta-but-not-really-stranger :) Not only could i talk about a passion of mine, but i had the potential to help him. Or at least get him going in the right direction. Whether he checks out the blogs or not, at least he knows he can come to me now when financial things arise!