This weekend, I found myself laid up with a bad cold, and I spent much of Sunday afternoon on the couch watching television. I was flipping through the channels and ended up watching a number of episodes of MTV’s True Life. True Life is an award winning documentary series that tackles subjects facing young people today. The episodes are an hour long, and I found the three that I watched very enlightening, but the one that really had the most impact was titled “I’m Supporting My Family,” and featured two young women who suddenly found they were the breadwinners for their family. One young woman was supporting her parents and her siblings, as her parents were too sick to work, and the other was supporting her siblings as well as her young son following her mother’s suicide.
The story of the second woman, Unique, a 21-year-old woman who was supporting her siblings really had an impact on me. She was determined to have a good home for her family, which included a pregnant 17-year-old sister and her boyfriend. She was really struggling to make ends meet and also to be a good parent to both her son and to her siblings. She did her best to pay her bills every month and had to return to “dancing” (stripping) in order to make ends meet for her family. She wasn’t happy about the fact that she had to dance to make extra money, as she worried her siblings would be picked on for what she did. But not only did she want to make ends meet, she wanted to provide things for her family. She wanted to be able to buy her sister a crib for her baby, for example.
I am sure that Unique’s story is not uncommon in how she struggled with money, though I’m sure there aren’t a lot of 21-year-olds dealing with those types of situations. I was really impressed with her maturity and how she had really stepped into the role of mother to her siblings. She brought them to the thrift store to buy clothing for the school year, and not only had a strict budget, but she also instructed her sisters that there were to be no stomachs showing. She wanted to do things right.
Earlier that afternoon, MTV had shown an episode of My Super Sweet Sixteen, where a girl threw an amazingly lavish party for her birthday. She spent thousands of dollars simply on her outfit for the party. And then MTV presented Unique, who received a check for $100 from a friend so she could buy groceries, and she struggled over whether or not to buy the ground beef she knew would last in her family, but it cost $11. And in the end, the store wouldn’t take her check anyway and she ended up at the food pantry. It really was an interesting dichotomy.
I really hope that being on MTV has helped Unique and her family, and I hope that other people who see this documentary think twice about their spending. It made me take another look at my life and be very grateful for everything I have. It also made me think a bit about my spending habits. What was I buying just because I could, and what do I actually really need?
I don’t know that I would have been able to do what Unique did at nineteen when her mother died. I think she’s a very admirable, impressive young woman, and I think we could all learn a lot from her.
Monday, January 7, 2008
Friday, January 4, 2008
Personal Finance Calculators
Millionnaire Mommy Next Door has posted a list of 110 Personal Finance calculators available on the web. Definitely a link to bookmark.
Saving money with coupons
I like to shop. But I hate spending money, so I love it when I can find a bargain.
When I shop online, I always look for coupons before I buy. A few weeks ago, someone pointed me to Ebates, a site that features coupons and cash back. Coupons AND cash back, you say? That's right.
This is how it works: You sign up for Ebates. You browse for coupons and merchants based on what you're looking to buy. Some of the coupons are pretty nice, various percentages off. But the unique thing about Ebates is that they also do cash back. For every purchase you make, you get a certain percent of that purchase credited to your Ebates account. Every three months, they cut you a "big fat check," for your cash back credits. You have to have earned more than $5 to be eligible, but depending on what you buy and the value of the cash back, that's not always hard.
I have been looking to replace my running shoes for a few weeks now. Running shoes are not cheap, and the cost is worth it for the reduction in pain in my knees and hips. I normally buy from a local store, but I knew exactly what shoes I wanted (the same make and model I have now), so I've been doing websearches for discounts and coupons. Thanks to Ebates, I saved over $25 on the shoes. How? They had a coupon code for 10% off any shoes at a particular shoe website, and then the website itself had a deal for new customers offering another 10% off. Then Ebates had an 8% cash back offer. And because of the price of the shoes, that meant the 8% back was over the $5 minimum, so I will be getting a big fat check sometime in the next few months.
If you're interested in signing up for ebates and use this link, you will get $5 credited to your account. This sign-up bonus doesn't count towards the $5 minimum for the check, but once you do reach that minimum, this $5 will be added to the value of your check.
http://www.ebates.com/rf.do?id=33963612
When I shop online, I always look for coupons before I buy. A few weeks ago, someone pointed me to Ebates, a site that features coupons and cash back. Coupons AND cash back, you say? That's right.
This is how it works: You sign up for Ebates. You browse for coupons and merchants based on what you're looking to buy. Some of the coupons are pretty nice, various percentages off. But the unique thing about Ebates is that they also do cash back. For every purchase you make, you get a certain percent of that purchase credited to your Ebates account. Every three months, they cut you a "big fat check," for your cash back credits. You have to have earned more than $5 to be eligible, but depending on what you buy and the value of the cash back, that's not always hard.
I have been looking to replace my running shoes for a few weeks now. Running shoes are not cheap, and the cost is worth it for the reduction in pain in my knees and hips. I normally buy from a local store, but I knew exactly what shoes I wanted (the same make and model I have now), so I've been doing websearches for discounts and coupons. Thanks to Ebates, I saved over $25 on the shoes. How? They had a coupon code for 10% off any shoes at a particular shoe website, and then the website itself had a deal for new customers offering another 10% off. Then Ebates had an 8% cash back offer. And because of the price of the shoes, that meant the 8% back was over the $5 minimum, so I will be getting a big fat check sometime in the next few months.
If you're interested in signing up for ebates and use this link, you will get $5 credited to your account. This sign-up bonus doesn't count towards the $5 minimum for the check, but once you do reach that minimum, this $5 will be added to the value of your check.
http://www.ebates.com/rf.do?id=33963612
Tuesday, January 1, 2008
December Net Worth Update (+0.91%)
This month, I saw a slight increase in my net worth, though not to the extent that I had hoped. I'm still below where I was in October, but at least the numbers are moving in the right direction.
This month, my net worth increased by 0.91%. Most of this was due to savings, as my investments only bounced back an average of around 0.15%. Honestly, I was hoping for a greater increase, seeing as December is the month in which my mutual funds pay their yearly dividends (which at this point, I continue to reinvest).
My December spending was not as controlled as I had hoped, but part of that is due to the expenses inherent in travel. I had forgotten that I scheduled an eye doctor appointment while I was at my parents' house, so that was another expense, but now it's done for the year. My cats got a chunk of money this month too, what with having to pay for someone to come in and care for them.
Another unplanned, but much needed expense was that this month, I decided to join Weight Watchers. I know that there are many free sites out there dedicated to helping you lose weight (SparkPeople being one of my favorites), but since I moved and started this new job, the scale had been moving in the wrong direction. I decided that I needed to try something new, so I'm giving Weight Watchers a try. I know a lot of people who have succeeded on this plan, and I hope to add my name to that list.
One of my yearly goals for 2008 is to increase my net worth by 20%. Looking at how the numbers have been moving in the past few months, that is a daunting goal, but I think that if I control my spending and make smart choices, I should be able to get there.
Oh, and it's day 1 of my dollar plan. Total so far? $1.
This month, my net worth increased by 0.91%. Most of this was due to savings, as my investments only bounced back an average of around 0.15%. Honestly, I was hoping for a greater increase, seeing as December is the month in which my mutual funds pay their yearly dividends (which at this point, I continue to reinvest).
My December spending was not as controlled as I had hoped, but part of that is due to the expenses inherent in travel. I had forgotten that I scheduled an eye doctor appointment while I was at my parents' house, so that was another expense, but now it's done for the year. My cats got a chunk of money this month too, what with having to pay for someone to come in and care for them.
Another unplanned, but much needed expense was that this month, I decided to join Weight Watchers. I know that there are many free sites out there dedicated to helping you lose weight (SparkPeople being one of my favorites), but since I moved and started this new job, the scale had been moving in the wrong direction. I decided that I needed to try something new, so I'm giving Weight Watchers a try. I know a lot of people who have succeeded on this plan, and I hope to add my name to that list.
One of my yearly goals for 2008 is to increase my net worth by 20%. Looking at how the numbers have been moving in the past few months, that is a daunting goal, but I think that if I control my spending and make smart choices, I should be able to get there.
Oh, and it's day 1 of my dollar plan. Total so far? $1.
Links
This is my ever-expanding Finance Blog link list. Ultimately, it will contain both those links in my sidebar as well as other blogs I find interesting or noteworthy. Apologies to those on my feed who are getting this in their feed reader.
Sunday, December 30, 2007
Suze Orman's Top 10 List for 2008
On last night's Suze Orman Show, Suze gave a top ten list of things to do for 2008:
Suze's Top Ten List for 2008
So that is my goal from this list. How about you?
Suze's Top Ten List for 2008
- Try to get out of credit card debt.
- Begin a 6-8 month emergency fund
- Sign up for your 401(k) to the point of the match, then fund a Roth IRA
- Look for the best buy on a home. Purchase only if you have enough for a 10%-20% down payment and qualify for a 30-15 year fixed mortgage.
- Never loan money or co-sign for someone
- Annuities - single premium deferred annuity is ok, but never buy variable annuities within a retirement account
- Buy individual bonds, not bond funds
- Get a will and a living revocable trust
- Get term life insurance only
- Buy no-load mutual funds only.
So that is my goal from this list. How about you?
Wednesday, December 26, 2007
The Today Show: Give Yourself a Year End Bonus
I just caught a segment on The Today Show about personal finance. This was called "Give Yourself an End of the Year Bonus."
The segment started out talking about how the majority of people didn't get a year-end bonus this year (I didn't, but my co-workers did - I haven't worked there long enough). And while you may not have gotten a bonus, there are ways you can give yourself a bonus by saving money in the coming year. They gave three suggested ways to give yourself a bonus.
1. Pay attention to spending
2. Change the allowance on your W-4
This was probably the most eye-opening part of this segment. While I inevitably end up breaking even or owing money to the government due to investment income, apparently, the average tax-refund is $2200! That is $2200 that you're loaning to the government for free! You could very easily save that money in a high-yield interest rate yourself and have even more money when it's tax time.
I do know people who like the fact that the government holds the money for them because it keeps them from spending it. If your spending is that uncontrolled, then perhaps letting the government hold your money is the best plan, but I have to believe there are other ways you can keep from spending your money.
3. Cut your taxes
A lot of people don't like to use FSAs because if you don't use the money by the end of the year, you lose it. It is worth it, however, to sit down and figure out just how much money you will use on these types of expenses. At the very least, figure out what you pay for any medications you use year-round and for your annual physical. Those are guaranteed expenses. It might not be a huge reduction, but I figure any reduction in your taxes is a good thing.
Overall, these ideas made me think, but didn't tell me anything I didn't know. But I'm sure a number of people have benefited from these savings tactics.
The segment started out talking about how the majority of people didn't get a year-end bonus this year (I didn't, but my co-workers did - I haven't worked there long enough). And while you may not have gotten a bonus, there are ways you can give yourself a bonus by saving money in the coming year. They gave three suggested ways to give yourself a bonus.
1. Pay attention to spending
- save 15% of your income
- pay attention to what you're buying
2. Change the allowance on your W-4
This was probably the most eye-opening part of this segment. While I inevitably end up breaking even or owing money to the government due to investment income, apparently, the average tax-refund is $2200! That is $2200 that you're loaning to the government for free! You could very easily save that money in a high-yield interest rate yourself and have even more money when it's tax time.
I do know people who like the fact that the government holds the money for them because it keeps them from spending it. If your spending is that uncontrolled, then perhaps letting the government hold your money is the best plan, but I have to believe there are other ways you can keep from spending your money.
3. Cut your taxes
- Put money into your 401k
- Take advantage of Flexible Spending Account
A lot of people don't like to use FSAs because if you don't use the money by the end of the year, you lose it. It is worth it, however, to sit down and figure out just how much money you will use on these types of expenses. At the very least, figure out what you pay for any medications you use year-round and for your annual physical. Those are guaranteed expenses. It might not be a huge reduction, but I figure any reduction in your taxes is a good thing.
Overall, these ideas made me think, but didn't tell me anything I didn't know. But I'm sure a number of people have benefited from these savings tactics.
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