« July 2005 |
Home
| September 2005 »
August 31, 2005
Ten Dollar Project: Week 2
August 31, 2005
Ten Dollar Project: Week 2
Well, we're through week two on the Ten Dollar Project. I've experienced a minor setback in that I only managed to sell one of my pieces of jewelry on eBay, and that for the minimum bid of four dollars.
Continue reading "Ten Dollar Project: Week 2"
Posted by Frank at 8:41 AM | Comments (3) | TrackBack
August 30, 2005
Taking a Step Back
I have taken a little bit of flack for a few of the articles I've written here that advocate penny-pinching and saving over spending. Most of it is along the lines of, "What good is it to have money if you're never going to enjoy it?"
There's something to be said for that, right? Why have money if you're not going to be happy?
What's My Motivation?
Well, the truth is that I do want to enjoy it. I want to jet off on exotic vacations, and get waited on hand and foot, and have a driver named James that will take me wherever I want to go (which would most likely be a very expensive restaurant where I would eat things that I'd never touch in normal circumstances). I want all of that!
Continue reading "Taking a Step Back"
Posted by Frank at 8:43 PM | Comments (11) | TrackBack
Insurance and Inventorying
With all of the damage being caused by hurricane Katrina, I've been thinking about insurance and what it means to know you're covered. If you ever experience a disaster or robbery that results in loss of your posessions or your home itself, it will give you great peace of mind to know that you won't be ruined financially on top of it all.
Continue reading "Insurance and Inventorying"
Posted by Frank at 11:15 AM | Comments (2) | TrackBack
To Budget or Not to Budget
This post is part of the Budgeting Mini-Series.
While I believe budgeting is a great means to begin understanding your financial situation, there are some who think it's not worth the trouble. I'll be the first to admit I don't have all the answers, and what works for me might not work for you. So I thought I'd try to summarize the argument and let you make the decision for yourself.
Continue reading "To Budget or Not to Budget"
Posted by Frank at 9:23 AM | Comments (6) | TrackBack
August 29, 2005
Credit Reports for Free, for Real
There are a lot of companies that will offer you a free credit report only to suck you in to spending money. What they don't want you to know (and what Flexo just reminded me of) is that credit reporting agencies in the U.S. are now required by law to provide you with a free credit report once per year.
Continue reading "Credit Reports for Free, for Real"
Posted by Frank at 12:09 PM | Comments (5) | TrackBack
Spreadsheet Budgeting
This post is part of the Budgeting Mini-Series.
Here's an Excel spreadsheet that I created and have used in the past to keep track of my budget (I'm experimenting with some other things, like paper, right now, but this works perfectly well).
The spreadsheet contains a worksheet for planning your budget in a similar way that we did with a sheet of paper on Friday.
Continue reading "Spreadsheet Budgeting"
Posted by Frank at 10:22 AM | Comments (1) | TrackBack
August 26, 2005
Less is More in Budgeting
This post is part of the Budgeting Mini-Series.
There's something to be said for the "Less is More" approach to budgeting. Basically, the simpler the process of creating and following a budget is, the more likely you are to stick with it.
With that in mind, let's work out a simple budget on paper. This will get you going quickly and with a minimum of effort. If you want to put this in Excel or Quicken later, it should be pretty easy. But for now, let's turn down the technology and focus on keeping it simple.
Continue reading "Less is More in Budgeting"
Posted by Frank at 10:43 AM | Comments (4) | TrackBack
August 25, 2005
Envelope Budgeting
This post is part of the Budgeting Mini-Series.
Envelope budgeting is a style of budget that guarantees you don't spend more money than you have allocated for a particular category.
How it works
The concept is pretty simple -- when you get paid, you divide all of your money into envelopes. Each envelope represents a different expense category.
Continue reading "Envelope Budgeting"
Posted by Frank at 8:18 AM | Comments (6) | TrackBack
Budgeting Series
This is the first of a short series of posts discussing budgeting, and how to effectively use a budget as a tool to help manage your finances.
I'll write about the things that I have learned, but I'd also like you to share your own insight and experiences on a particular topic in that post's comments.
Continue reading "Budgeting Series"
Posted by Frank at 8:03 AM | TrackBack
August 23, 2005
Saving Money on Gas
Flexo's post on Consumerism Commentary underscores something that we all know already. Gas is getting expensive!
For most of us, trading in our cars for a hybrid isn't a reasonable option (yet!), so here are some things you can do to help save a few bucks at the pumps.
Continue reading "Saving Money on Gas"
Posted by Frank at 8:56 AM | Comments (3) | TrackBack
August 22, 2005
Ten Dollar Project Update
Well, I'm under way with my Ten Dollar Project. I've decided that, to start, I will make wire jewelry and sell it on eBay. I have used my ten dollars to buy some steel wire and boxes to package up the finished product. I already own most of the tools necessary, and I borrowed a how-to book on wire jewelry from the library.
Here's my list of raw materials, and how much I've spent in total:
Continue reading "Ten Dollar Project Update"
Posted by Frank at 1:21 PM | Comments (10) | TrackBack
August 19, 2005
Friday Finance Reads
Happy Friday! I'd like to share some links to some of the better personal finance articles I've read this week. If you've come across something worthwhile that I missed, feel free to share it in the comments!
Continue reading "Friday Finance Reads"
Posted by Frank at 8:54 AM | Comments (1) | TrackBack
August 18, 2005
How Much is One Percent Worth?
When choosing a savings account or CD, it's obvious that one of the things to look for is a high interest rate. But sometimes it's not clear exactly how much that extra point of interest will be worth.
If you save $10 a month, how much difference will an extra point make? If you don't really have a good idea of how much that is, the table below will show you!
Continue reading "How Much is One Percent Worth?"
Posted by Frank at 8:04 AM | TrackBack
August 17, 2005
Cheap or Free Entertainment Ideas
A post at No Credit Needed reminded me how discouraging it can get when you're in the process of getting out of debt. Little changes add up dramatically, but it takes time, and it can be tough to see the big picture when you're stuck in the trenches.
One of the things I think is important while fighting the debt battle is to make sure you're taking time for yourself. Don't spend your whole life worrying about money -- if you have a plan and you're sticking to it, you'll get there in time. You want to escape sometimes so that you can refresh yourself.
But this can be hard if you've given up the things you like to do because they cost money! Movies, restaurants, sporting events... they can get expensive. So I thought I'd share a few alternative ideas that will keep you entertained and cost little or nothing. Please feel free to share your own ideas in the comments!
Continue reading "Cheap or Free Entertainment Ideas"
Posted by Frank at 10:36 AM | Comments (3) | TrackBack
August 16, 2005
Paying Bills on Time
Paying your bills on time is so important for your financial health -- it's one of the easiest things you can do to keep your credit score from suffering. But if you don't have good financial habits, it can also be easy to overlook.
I've mentioned before that remembering to pay bills on time is one of the things that I've been particularly bad at. It should be such a simple thing, really. But it's so easy to just put the bill on top of a pile of mail and forget about it until it's already due. It's one of the reasons my credit is less than perfect now.
So what can we do to help remember to pay bills on time every month?
Continue reading "Paying Bills on Time"
Posted by Frank at 7:52 AM | Comments (8) | TrackBack
August 15, 2005
Setting Goals
"If you don't know where you're going, you might not get there."
- Yogi Berra
Maybe a little trite, but it's also true, and for more than just personal finance. Goals give you a target to aim for, and they keep you motivated. When that shiny new plasma TV is staring you down in the store, it's very helpful to remember why you decided not to spend that much money or go into debt.
Continue reading "Setting Goals"
Posted by Frank at 8:09 AM | Comments (3) | TrackBack
August 12, 2005
Coffee, the Dark Nectar of Life
Need a cup of joe to get you going in the morning? Starbucks is not your friend! They are wolves in sheeps' aprons! Sure, it's convenient, and they're very friendly (tricky wolves), but is it worth how much it's costing you? If you buy a one dollar cup of coffee every work day, that's about $250 a year. Two dollars a day is around $500 a year. You get the idea.
We've already worked out how much money a small amount can add up to over long periods of time. You can use the savings growth calculator to figure out what this could mean in your case. But let's consider this another way.
Continue reading "Coffee, the Dark Nectar of Life"
Posted by Frank at 7:48 AM | Comments (5) | TrackBack
August 10, 2005
Introducing the Ten Dollar Project
Most of the tips I've been writing about deal with how to more effectively save money, and hopefully you've noticed a common theme -- it doesn't take much money to add up over the long term. Just a little bit saved consistently will pay off big time.
But it's time to talk about the other half of the "building wealth" equation -- how can you earn more money than you are now? If you can earn even a tiny bit more and save it regularly, it will add up dramatically.
Of course, you could earn more money by working hard for a raise at your job. That's part of the process of building a career. But since you have little control over how much and how often you get a raise, I'd also like to think of some more creative ways to earn extra money.
The Ten Tollar Project
I'm proposing an informal community experiment. If you want to explore your potential for making some extra money, no matter what your financial situation is, I invite you to join me.
Continue reading "Introducing the Ten Dollar Project"
Posted by Frank at 9:51 PM | Comments (2) | TrackBack
August 9, 2005
Cool Down the Bills with a Programmable Thermostat
It's summer here on the top side of the world, and it's been especially hot lately. I can tell because my electric bill for July was twice as high as June's. Central air conditioning is truly a mixed blessing.
One thing homeowners can consider to help lower their heat and electric bills is installing a programmable thermostat. It can be set so that the heat or air conditioner only turns on during the times when you're at home, saving you from forgetting to turn it off manually. The thermostat can also automatically be set to turn the temperature up or down while you're sleeping.
Continue reading "Cool Down the Bills with a Programmable Thermostat"
Posted by Frank at 8:03 AM | Comments (6) | TrackBack
August 6, 2005
That's a Lotto Bull!
There's a television special on TLC this week called "Jackpot! Overnight Millionaires", that contrasts the homes and lifestyles of lottery winners before they hit the jackpot and after. My wife and I watched it last night.
It's true, the lives of these lucky winners are pretty comfortable. We're taken on a tour through their lavish homes, decked out with seventy thousand dollar dolphin statues and grand ocean views from every window.
The winners were even generous enough to supply their winning methods for picking numbers. For one, the numbers just magically came to him. Another just used the "quick pick" random numbers. A third's advice was simple: there is no secret number-picking method. You just have to play consistently, every week, to improve your odds.
Continue reading "That's a Lotto Bull!"
Posted by Frank at 10:52 PM | Comments (15) | TrackBack
August 5, 2005
Stamp Out Your Spending
Reader Michael suggests another great money-saving tip: save the cost of postage when paying bills. If you use the "auto-payment" feature offered by many bill payees, or a free bill payment feature offered by some banks, they will deduct the money out of your checking account instead of requiring you to mail a check.
Not only does this protect you from forgetting to pay your bill on time, but it nets you a cool 37 cents, if you're in the US. No, it's not much, but it sure adds up. If you've ever had to send wedding invitations or thank-you cards, you know.
But How Much Can You Really Save?
Continue reading "Stamp Out Your Spending"
Posted by Frank at 12:43 PM | Comments (7) | TrackBack
August 4, 2005
Question for Readers: Finance Software and "Virtual Accounts"?
I received a question via email from Matt (you can read his own blog -- not finance related, but quite well-written). He like this idea I proposed in "Brown-Bag it to Half a Million", but would like to be able to use personal finance software to track money saved in this manner separately from the rest of the money in his checking account. He asked me about software that might handle this:
Continue reading "Question for Readers: Finance Software and "Virtual Accounts"?"
Posted by Frank at 7:05 AM | Comments (21) | TrackBack
August 3, 2005
Savings Growth Calculator
Sometimes, while we're busy pinching pennies, it's hard to keep the end result in mind. You know that the little bit of discipline it takes to save money now will pay off, but exactly how much are those few dollars worth?
Well, this calculator will tell you! If you plug in your savings goals below, you'll see how quickly it can add up to a substantial amount of money.
I encourage you to really play with the numbers. See what happens if you can hold out and add to your savings account five years longer. See how much of a difference it will make if you find a CD that pays one percent better interest than you're making now. What about two percent? What if you could really squeeze and save an extra hundred dollars a month? How much of a difference would that make?
Continue reading "Savings Growth Calculator"
Posted by Frank at 1:36 PM | Comments (1) | TrackBack
August 2, 2005
Personal Finance Index Card Templates
I'm a big fan of the Hipster PDA. It's one of those fabulously simple ideas that just clicks in a world of over-complication. For those who don't know, the Hipster PDA is nothing more than a pen and a bunch of index cards clipped together that you can use any way you like. Simple, yes, but it's developed quite the cult following. And it can help get your finances in order too.
One popular hack has been to print templates directly onto the index cards (like these from Douglas Johnston and these from John Norris) and use them to fit various organizational processes. I've used this myself with David Allen's Getting Things Done organization system, and the results are pretty amazing.
So now I'd like to offer the these printable index card templates to help organize your personal finances.
