financial zen

I’ve noticed on a number of blogs and comments - a lot of people type and mention how they are professionals at whatever - journalism, financial planning, communications, marketing… but I see so many people that cannot spell words correctly, or even type correct sentences - let alone use proper grammar!

I know I’m no saint, and we all make mistakes, but some people mention being in their profession for many years yet still can’t type the most basic of phrases - it just makes me wonder how that has affected their professional life.

I don’t think I’d stick around an office where the Doctor can’t tell what’s poison and what’s antidote - let alone a planner (or marketer) that can’t type a proposal and not use spell check (or proper grammar).

Am I being a grammar nazi, or do people agree that it seems our standards for communication have gone down hill?

I’m digging this post by J.D. at Get Rich Slowly - the Perfect Enemy of the Good.

Just to sum it up - we often waste time to make our experiences “the way we want them to be” instead of focusing on doing the actual experience.

We make tiny excuses to avoid items - like J.D. and his quest for his favorite shirt to wear for a jog - we look for little excuses to hold us up. I want to wear those shoes, I want to wear the hat I can’t find, should I wear my running shoes or some casual shoes? What’s the weather like? Hey honey, do you want to come, even though you said you were goign to take a nap? Where’s the dog? - we delay and cut back on what we should be doing instead of DOING it.

I did the same thing for years - in school, with work, with responsibilities. There was always something else I could come up with as an excuse. NO MORE! It’s been my vow to quit this behavior, and so far - I’ve succeeded.

Budgets are worked on, tightened up. My classes are going smoothly (being a full-time student, employee, and husband is a tough act to maintain, on top of writing!). Work is… work, but I’m salary and putting as much effort forward as I can, even when faced with difficulties!

So, procrastinators of the world, stand up, shape up, and GET IT DONE!

It seems so simple, but I know a few people that don’t, so perhaps it’s time to iterate:

You NEED a budget. You NEED to track your spending.

I don’t just mean read over your bank statement, or check your credit card bill.

Follow these simple steps:
Use this calculator and figure out your monthly income after taxes.(I got it from Miss Mini-Ducky)
Plug it into this calculator and get a rough budget.
Make an excel spreadsheet (or use quicken) and enter in ALL your receipts. I really mean all. Your coffee, your McDonald’s, your gasoline, your cell phone. Plug it all in. Categorize it (Food, Auto, Rent, Utilities, Pets, Kids - you can be as specific or as vague as you want -it’s *your* tool).

I suggest using the budget from the calculator as a guideline - use it to give you some rough numbers to guide yourself along and perfect your budget.

We did this for April, and it’s quite an eye-opener. It was on my “ToDo” for 2007 and I saw how horribly we were aware of our expenses - we ate out WAY too much, we put way too much on our credit card.

I ran through our statement, and I see why - luckily, the majority of the credit card was on computer parts (I built a system for Dad - he reimbursed me, the check was sent straight to the card).

One thing we did do this month - I have a UPromise Citicard. A *fraction* of every purchase (especially groceries and local establishments, including bars!) go towards my student loan. We’ve devised a system where we use the card to pay for groceries/food and when we get home, we enter the amount into our budget spreadsheet and I write a check through my online credit union to AUTOMATICALLY be sent that night to pay it off - the money is gone that night, the card is paid in full! So it’s win-win, I get a % to my student loans, my card gets used, and we pay it off!

Problems with our budget:

• I don’t account for external incomes. Side-jobs, ebay, my wife’s job, etc. aren’t included in our budget, which makes it much more conservative then it needs be (so if we’re over budget by $50 - it’s BAD but not HORRIBLE).
• We also discovered our eating out habits is responsible for a huge decline in income. We saw the effect one and a half weeks in and cut out dining out the rest of the month - much to our benefit! We also are starting to research local prices to see where we can get the best deals (who has the cheapest bread, eggs, milk, etc.)

Improvements to the Spreadsheet:
I’m looking for other’s spreadsheets before I post mine to incorporate others improvements. Ours is pretty simple - written in Excel Office 2k7 - with mostly simple layout and design. It’s my goal to have it be our one stop shop for budgeting, I still use Quicken as a “whole picture” view, but I’m finding it to be bulky and annoying - I haven’t given up, I just need to learn it more thoroughly.

Anyone else find a useful method for budgeting? Any “must-haves” or “good to knows” you’ve come across?

Related (via The Simple Dollar):
Tips on making a budget
Why you should make a budget

It’s kind of ironic.

I’ve been thinking about finding a mentor for quite some time - for about six months now, since I started discussing with a coworker about her mentors and what it means to her.

So, being me, I Googled around. I came across this article by Penelope Trunk on her blog - I recommend adding her to your reader - I’ve added her to my blog roll (like she needs it!) because she’s very insightful. Oddly enough, I also managed to come across a book review (and a chance to talk to her!) at I Will Teach You To Be Rich - another site I recommend.

Needless to say, it was an epiphany. I’ve got a corporate job that I landed through networking - I got in with no degree because I knew a couple guys, and they knew I could design and code. It was entry-level web work, which I didn’t mind, but my foot was in the door.

Since then, I’ve expanded my knowledge of CSS, PHP, XHTML, XML and other TLAs. I’ve learned Usability skills, and expanded my business knowledge. Made friends in Marketing and IT. I even managed to network to the right man that helped me get into Corporate - where I am today.

Currently, I’ve contacted two people about being my mentor - one being my former boss, because he is gung-ho about keeping your career as a priority (I’ve read it elsewhere, like in the comments at I Will Teach You To Be Rich:

Don’t let your loyalties stand in the way of your career.

It’s kind of powerful and dangerous at the same time. Loyalty is important to me - but at the same time, every boss I’ve had understood when I quit - why I was quitting. Better opportunities, better chances at moving forward.

I’ve also sought out a Financial Planner - we’ll see how this works out.

Anyone have tips for searching out mentors, or stories of how they met (or became) a mentor?

We all have had it happen - we’ve hit those little dips in life. That point where we need to decide - should I stay or should I go?

Thanks to ten questions with Seth Godin from Guy Kawasaki he helps point out that these are the moments you really need to look at:

1.Question: Other than hindsight, how does someone know when it’s time to quit?

Answer: It’s time to quit when you secretly realize you’ve been settling for mediocrity all along. It’s time to quit when the things you’re measuring aren’t improving, and you can’t find anything better to measure.

Smart quitters understand the idea of opportunity cost. The work you’re doing on project X right now is keeping you from pushing through the Dip on project Y. If you fire your worst clients, if you quit your deadest tactics, if you stop working with the people who return the least, then you free up an astounding number of resources. Direct those resources at a Dip worth conquering and your odds of success go way up.

What’s the worst time to quit? When the pain is the greatest. Decisions made during great pain are rarely good decisions.

I won’t spoil the rest - it’s an interesting look at that introspective process when the times get tough - not just for businesses, but in careers and education.

The best time to ask this question (should I quit in the middle of a dip) is before you hit the Dip. Smart people can see Dips in advance and plan for them. If you want to be a doctor, the time to decide is before you get to the organic chemistry midterm, not while you’re taking it.

Great read from a great blog - I may have to pick up a copy from the library (after it’s released, I mean).

MSN Money has a great article showcasing people that conquer huge debts quickly - and it makes ours look like a small pittance!

A couple paid off a $150,000 mortgage in five years, another knocked out $8,000 (of $49,000) of her credit card debt in nine months!

The stories themselves focus on a couple key components of most frugal living/personal finance topics: grads getting a house, unexpected job loss with debts out of control, or my favorite, a desired life-style change to spend more time learning and loving your family.

The key factors they really show us, are something you’ve no debt read (and will continue to read about, until everyone out there thinks of it as common-sense!) is:

Live like a college student! Just because you graduated and are ‘making the big bucks’ doesn’t mean you need to start splurging. Sure, buy yourself something nice - but save, scrimp, and pay off! It’ll be in your best interests in the long run - I know quite a few people in their thirties who tell me they wish they buckled in and paid off their debts earlier, and not delaying them and spreading them out as long as possible, to the point that after marriage and kids, it’s still an issue.

The last story, one of post-divorce, had a great list of tips (but I think they needed some help, emphasis mine):
* Opts for basic TV service — no premium channels. Why cable at all? Free TV still lives!
* Chooses a dial-up Internet connection ($9.95 a month) over high-speed service. I agree - only get High Speed if you really need it
* Buys food in bulk to last for months. Canned goods and non-perishables all the way!
* Takes his lunch to work. I skip lunch at work most days so I can eat with my wife after work - I’m a little more hungry, but it’s nice to sit with my wife.
* Makes a budget for the holidays, birthdays, etc., and sticks to it. This applies to all social events - budget, and stick to it. And do you really need a million-dollar party?
* Applies “extra” paychecks to debt (a biweekly pay schedule had provided a third check two months a year). I love the three paycheck weeks. That is debt pay-down time.
* Applies any bonuses toward his debt. Bonuses, rebates, tax refunds - all of it to your debt!
* Sets the thermostat in winter to 63 degrees. Wear warm clothes, socks, sweaters or get a space heater - preferably one with a built-in thermostat and sensor!
* Sets the air conditioner to 79. If it’s summer, be naked. The environment will thank you.
* Buys compact fluorescent light bulbs to reduce electric bills. We’re in the process of this now! Save money in the long run.
* Takes out $25 in “walking around” cash each week. When it’s gone, he doesn’t spend more. I don’t think I even hit $25 with my current budget. It’s a nice idea, though.
* Keeps the credit cards at home. I love how it’s plural. Leave them at home, frozen. With no balances.
* Shops with a list and buys only what’s on the list, and avoids looking at anything else, including sale items. When my wife and I started doing this, we noticed a drop in 50% of our grocery bill.
* Keeps his car tuned up to avoid bigger expenses. This is important to prevent that “little problem” from becoming “the big problem.”
* Doesn’t keep up with the Joneses. He says he doesn’t care what they drive, where they vacation or what they wear. I love the Joneses. They give me a model to avoid, because I don’t envy their American Express bill.
* Avoids buying coffee or food “on the go” but instead eats at home whenever possible. The little expenses add up.
* Stays away from vending machines at work. Vending machines are trap doors to fatty fat and brokey broke.
* Doesn’t play the lottery. Gambling is gambling. If you want to throw money at something, throw it to me.
* Buys broken bags of mulch and fertilizer at deep discounts. This goes for many items - always check for a discount on used/dinged goods. Cosmetic defects are just that - cosmetic.
* When shopping for appliances, buys last year’s model. Buy last years, and check out for places that have close-out deals.
* Budgets vacations and looks for coupons wherever possible. This is what we’re doing - setting a goal and time frame, and slowly budgeting towards it. When we reach it - we’re taking a vacation. Not before.

A ton of useful tips for a grad, a divorcee, or anyone looking for a lifestyle change. They mention taking a second job, which I recommend (and have done before) but remember not to stress yourself out! You need to budget your time so your loved ones don’t suffer!

The Consumerist posted about advice for post graduates written by JLP of AllFinancialMatters.

Plain and simple, I can’t agree more - and even more so than the link The Consumerist provides about Bad Resume Snafus.

I think I’ll have to contact an HR friend for tips on mine now…

Anyone have any Resume Blunders they’ve made (or almost made)?

I know someone that sent in a cover letter mentioning the wonderful attached Resume - without attaching it.

Kiplinger.com’s Ask Kim section answers a legitimate question that msot pf bloggers may get, but not everyone does.

I know that I shouldn’t close old credit accounts that are in good standing because they can help my credit history. But what happens if I close an account that wasn’t in good standing? Will that information still appear on my credit record?

As we all know - you shouldn’t close an account (unless it’s newer and not needed). Jsut because you owe on that credit card - leave it open, make timely payments (for above the minimum - pay interest *AND* principal!). Closing it won’t hide it - it just makes it *seem* like it’ll go away, which is itself, a defense mechanism (if I can’t see it, I don’t have to deal with it!).

Rather then delve into the ways to avoid getting into this position, let’s talk about getting yourself out.

I once was in this position - I was a high school grad, and I knew I needed to start credit ASAP if I was ever goign to get a car or home loan. Turned down for a credit card, I went and got a Sears Card (with a $5,000 limit) That seemed reasonable for a high school grad with a low-income, doesn’t it? They weren’t preying on my ignorance at all! I was ignorant, and once I had established some credit with Sears, I was soon given two other credit cards - a student card with a $400 limit, and another card at the college fair for $4,000.

I was living in Chicago, job hunting on my own (because the school’s pitch was they’d help you get a job and pay for rent while you went to school full-time - which turned out to be a lie and why I lasted one quarter before moving home). In that time, I maxed out both cards paying for necessities (and, yes, they were - groceries, books, fare to go to work). I made the minimum payments (mistake #1). When they got maxed out, I closed them - I didn’t want to use the cards (fees!) and I wanted to forget about them - this being before I learned that keeping accounts open is important!

The next thing I did right - I left my Sears Card open. It’s been paid off, and I still have it (and they never closed it - after four years of non-use!) I also got a job working at a local factory for $14 an hour while living at home, and I worked 40+ hours a week, putting the majority of my paycheck towards the cards. I had my debt paid off in one month of grueling labor.

After this, I never got another credit card until I moved to Columbus and had my bills well under control. No more maxing out, no more paying fees - it was a hard lesson learned, but a mistake I made that was worth learning from.

What kind of “young and dumb” mistakes have you benefited from? Don’t just talk amongst yourselves, discuss in the comments!

It’s surprising how many people don’t realize what will cut your rates.

For my wife and I, we got our rates cut by a few factors:

1. We shopped around. Luckily, we’ve got a great agency we work with that ran the numbers and factors and scored us a payment that lowered our insurance by $100.
2. We increased our deductible. Both cars have $500 deductibles, and unfortunately we still need two cars (I’m researching the bus system - I’m being moved to a different building much closer to our home, but out of my wife’s way to work).
3. Having our renter’s and car insurance (and then our Home Owner’s Insurance) with the same company, we’re getting a discount.
4. Our credit scores are very good (well, mine is V.G. Hers is Excellent).
5. We’re getting miscellaneous discounts:
   *Being a paramedic, my wife has taken defensive driving courses - that equals a reduction in insurance!
   *My wife’s wreck from three years ago is going off her record = reduced rate for her!
   *I need to ask about AAA and being a good student - but I’m not sure if that will apply since it’s *my* insurance and not under my parents.

Thanks to this site I found this check list:

When you comparison shop, inquire about discounts for the following:*

[ ] $500 deductible
[ ] $1,000 deductible
[ ] More than 1 car
[ ] No Accidents in 3 Years
[ ] No Moving Violations in 3 Years
[ ] Driver Training Courses
[ ] Defensive Driving Courses
[ ] Anti-Theft Devices
[ ] Low Annual Mileage
[ ] Air Bags
[ ] Anti-Lock Brakes
[ ] Daytime Running Lights
[ ] Student Drivers with Good Grades
[ ] Auto and Homeowners Coverage with the Same Company
[ ] College Students away from Home
[ ] Long-Time Customer
[ ] Other Discounts

The key to savings is not the discounts, but the final price. A company that offers few discounts may still have a lower overall price.

*The discounts listed may not be available in all states or from all insurance companies.

For more information, call the National Insurance Consumer Helpline (NICH) at 1-800-942-4242

And naturally, after I do this, I stumble on these gems from the Consumerist:
10 Insurances You Don’t Need
DIY Title Search
Save On Insurance By Calling Around. Duh.
Pay Your Health Insurance Way Before It’s Due, A Cautionary Tale
HOWTO: Appeal Denial of Care

AskDong has a great write up about Salon’s article about a jazz musician looking to make a change late in life.

I seriously doubt the musician will read this, but bra-vo! He made a living as a musician for this long, I know so many musicians who wish they had a steady stream of gigs to help supplement their passion - and as the article states - they fall into the “I’m a musician, that’s it” bag of players who refuse to think they need a day job.

So I figure it’s time to point out how many musicians held day jobs before making it big (and a few I know who are not big, but still playing with a day job!)
Take for instance the numerous groups on MySpace.com - I know a bass player works at a non-profit by day, a few guitarists that are composed of a farmer, a manager of a fast food joint, an apple technician, and a couple college students.
And in my search, I found a couple related articles about the topic at hand:
Real Musicians have Day jobs
A Day in Life of a Musician (at Princeton Review)
Ask Metafilter asks the same question - do big names have day jobs?

It’s something worth realizing - sometimes your dream job is your night job, and that sometimes you can make a living (but may not be rich).