Renewed Focus: Increasing Income

I took a pretty substantial pay cut a couple of months ago and the numbers have caught up to me. I have been working tirelessly to get more side income coming in. My work has already paid off a bit and I am beginning to breathe a little easier. Here are the steps I took:

• Became more proactive in finding side work through friends and family
• Rented out my spare bedroom a week ago for the next few months to a friend in need
  
• Grocery sale stockpiling is now starting to pay back!
• Going out a lot less and being the "cheapskate" when I do go out
• Utilized more groupons, coupons, and other deals to preserve some sliver of a social life

I am also bringing my emergency fund back down to $1000.00 USD and using the rest to pay down my debts. With a lower steady income my monthly debt service payments sting a lot more. Doing this eradicates 75% of one of my credit card balances! With a potential bonus and more rental income I can have this one paid off soon and work on the last one!

What savings I do have left I have shifted to the highest interest possible between a 7% savings account ($500 maximum, fully funded) at my credit union and some existing CD's that have not come due yet. This has become my emergency fund for now.

I have very little in the way of expenses left that I can cut. I am as low as I can go without making life miserable for myself. I am still working hard to get more alternative income via more focus groups, more computer repairs, and anything else I can do to get ahead. I am trying my best to be patient and stick with it!

Coupons + Deals This Week

This is a weekly post of all the good deals that I have found online that are of note. They usually include free or deeply discounted items. A lot of them require coupons that are printable. Easy and free is the goal here!

This Week's Findings:

• FREE cookie from Atlanta Bread Company @ coupon cravings. Become a facebook fan and get a free cookie coupon. No purchase required.
  
• $1.00: 2-pack of Cat5e 7' network patch cables from mwave.com @ slickdeals. June 28 2010 deal. A great deal if you need to network some computers!
  

I can't wait to see what next week brings!

Weekly Blog Roundup

This is a series where I link to my favorite blog posts from the financial blogs that I follow and read directly. These are the articles I found particularly useful or good in some way. I hope you enjoy my choices and learn something too!

Week of 6/21/2010:

• Market Timing Works... Just Not For You @ Bargaineering. Jim writes about how it is possible to time the market but not likely. No one knows the future!
  
• Reader Story: The Other Side of Bankruptcy @ Get Rich Slowly. A reader story about how a landlord got scammed by an abuser of the bankruptcy system. A good read to see how it affects creditors (and not just big banks) in a real way.
  
• Professional Time, Leisure Time, and Wasted Time @ The Simple Dollar. Trent writes about how we can budget and more effectively use the time we have. We only live one life and need to live it to the fullest. Great read!
  

These are my favorites for the last week. Feel free to comment and share some others that I may have missed or not even know about. Have a great week!

Strategy: Using a credit card for rewards debit style!

Their is an never-ending debate on whether one should use cash or credit for monthly expenditures. There are good arguments for both sides and I recommend that you do what works for you. I have chosen rewards credit card (Delta Skymiles AMEX to be exact) since I love to travel.

The main argument against using a credit card for everyday purchases is that it affords you the ability to overspend since it does not come directly out of your bank account. Through some various reading online I have found a solution:

Pay off your credit card weekly!

This requires a little more manual work but you should be reviewing your accounts once a week anyway. By paying it weekly you have a little more cash flow control and you can still earn the rewards. It's as if you are turning your credit card into a debit card of sorts. You still earn the rewards and help to prevent overspending at the same time.

I really like the idea of this solution and plan to give it a try myself! The only catch I can see is that some credit card providers only allow you to make a certain number of payments within a given time period. The work around here is to set up your credit card on bill pay. Trust me the credit card companies will NOT refuse a payment!

The best method I can come up with is to pick a day, say Sunday, and log in and pay off the total balance at that time. You are forced to look at what you spend, pay for it only if you have the money now, earn your rewards, and avoid interest. Brilliant!

Emergency Fund: Slight Change in Philosophy

Today I have decided that I am going to make a significant change in my emergency fund plans. Since I am currently in debt I am going to reduce my emergency fund to $1000 and use the remainder to pay down my credit cards.

After doing some reading on the subject and analyzing varied opinions and numbers I have concluded that this is the best option. Here is why:

• I earn a max of 2.15% at SmartyPig. My fixed rates on my balances are 6.99% and up. I am mathematically much better off here.
• Cashflow issues: Having multiple minimum payments to make squeezes my budget a good bit. By paying down with savings now I can accelerate my debt snowball. This will eventually turn into putting the money back into the emergency fund.
• Peace of mind. I do stress daily about my debts. Paying it down faster ends my stress faster and I can move on with my life!

Above is the upside to this decision. I also had to weigh the down sides to make sure I am doing the right thing. In my opinion, I am making the best choice for me. Here are the downsides:

• Job Loss: If I get laid off I have a lot less cash to fall back on. One counter-argument is that I could simply use the cards again. While this is not ideal I will take this risk.
• Interest rates go up. While unlikely I do have opportunity cost of not being able to invest the savings in a higher rate investment.
  
• Further away from self employment. This delays my plan to work for myself but the financial gains over the long term are worth it to me.

Overall I think I am making the best decision I can in this situation. The peace of mind from paying this down sooner is a big deal to me. It will outweigh the stress of losing my job if that were to occur. My suggestion to anyone facing this same problem is to look at all angles and go with what helps you sleep better at night. Having a bigger emergency fund now with debt is ok if it reduces stress!

Tools and Services for Managing Money

I have mentioned quite a few handy financial tools in various posts. Today I am writing a consolidated post that covers everything I use to keep myself in line financially. With the right tools we can all get ahead and achieve our goals.

I use the following:

• Quicken Online: This is the hub for all of my accounts. It updates daily automatically so it is no work on my part. It has some pretty good tools that shows you where your money is going. It remember categories for expsenses too! They also have an iPhone app (free)!
• Excel: I keep my budget and cash flow projections here. I am very comfortable with excel and It makes it easy for me to make sure I can cover all of my bills and goals. A free alternative to Excel is openoffice.org.
• Online Banking and Bill Pay: These are probably the 2 most important. Doing most of my banking business online saves time, gas, money, mileage, etc. Bill Pay saves costs on stamps and paper checks and is free. The benefits are numerous and free!
• Direct Deposit: My salary goes directly to my primary checking account. This saves me lots of time and hassle!
  
• ING Direct: Their checking account is the best I have seen. Free overdraft protection (only pay interest), online payments to anyone, decent interest rates. No checks allowed! By far the best in my book.
• Local Credit Union: my local credit union offers a good savings account (7% for the first $500!) and also useful for depositing checks and cash to transfer up to ING as needed.

All of above tools and services all work together to create a stable and manageable financial life. Having all the right tools can help make managing money easier, more efficient, and get you closer to your goals. Everything we need is out there and available!

Coupons + Deals This Week

This is a weekly post of all the good deals that I have found online that are of note. They usually include free or deeply discounted items. A lot of them require coupons that are printable. Easy and free is the goal here!

This Week's Findings:

• FREE slice of pie from Waffle House. No purchase needed. Visit wafflehouse.com and sign up to receive their emails to get the coupon!
  
• Earthfare: FREE 1lb of pork chops with any $5 purchase. This was great. I bought 2 pounds ($4.99/lb) of pork chops and got them for $5.58 out the door @ coupon cravings.
  

I can't wait to see what next week brings!

Weekly Blog Roundup

This is a series where I link to my favorite blog posts from the financial blogs that I follow and read directly. These are the articles I found particularly useful or good in some way. I hope you enjoy my choices and learn something too!

Week of 6/14/2010:

• Seven Money Lies from Monopoly @ Bargaineering. Jim writes in depth about how monopoly tries to teach us bad money habits. Entertaining read.
  
• The Marginal Utility of Money @ Get Rich Slowly. Guest poster Mike Piper reminds us that money is important but it is not everything. Good for keeping in perspective!
  
• Buying Things You Wish You had Time For @ The Simple Dollar. Trent reminds us to be more conscious when buying things. Do you really have time to learn the piano? Should you still buy one?
  

These are my favorites for the last week. Feel free to comment and share some others that I may have missed or not even know about. Have a great week!

Cable TV/Internet hint: Don't pay for basic cable!

I have Comcast cable internet service at home. I do not own a TV and probably never will unless I use it as a big monitor to play movies from my laptop. I pay $57.95 per month for high speed cable internet only service. My bill never changes from month to month.

For those of you who do watch TV here is one of the best kept secrets in the biz: They cannot give you cable internet access and block basic cable. It is different these days with the digital changeover and the need for set top boxes.

The bottom line is that if you have and pay for cable internet only service you will have some channels coming through. Any station that still broadcasts in analog will come over the lines to your home. Granted it is not as many as it used to be. You cannot complain for free!

The Grocery Game: Update

It has been nearly 3 months since I started using the grocery game to save money on food. I was skeptical at first since it is a paid service. I decided to use the 4 week free trial and see if it really worked for myself.

The result: I save a lot of money. I pay $10 for 8 weeks access to the database. The coupons, sales, and tracking make it well worth my while to invest in it. I also subscribe to the local Sunday newspaper to automate getting the coupons each week.

According to my Kroger receipts I save 45% to 60% on my total bill. This does factor in their "regular price" so after looking at coupons only I save around 30% or more each time I go. I now have a decent stockpile of food and simply stock up on what is on sale this week when I run low.

Overall I have to save it is worth the investment. I am saving a great deal of money that I otherwise would spend even after the cost of newspapers and the website access. Give it a try yourself and you will see how much of a difference it makes!

Coupons + Deals This Week

This is a weekly post of all the good deals that I have found online that are of note. They usually include free or deeply discounted items. A lot of them require coupons that are printable. Easy and free is the goal here!

This Week's Findings:

• $0.30 Dial Liquid Hand Soap @ Kroger. I found this myself! The 6/13 Red Plum insert has a coupon for 0.35 off which doubles. The soap is on sale for $1.00 this week at Kroger.
  
• Fuddruckers: Buy one get one free Prime Burger @ coupon cravings. I love their burgers and I like half off too!
• FREE toothbrush from Walgreen's after coupon @ coupon cravings. Just in time because I need one!
• $0.42 (each) after coupons for 2x Kraft Macaroni and Cheese from Walgreen's @ coupon cravings. I love Mac N Cheese and at this price I had to jump on it!
  

I can't wait to see what next week brings!

June 2010 Prosper Lending Update

It is the middle of the month again and it is time for my update on prosper.com lending. I had 1 more loan payoff and 1 more has gone late.

I am no longer bidding on prosper loans unless they come from my lending group. I am drawing down my account for now. I "write off" all loans in collections as a loss.

Here are my stats as of today:

Outstanding Loans: 44

Late: 1 (< 30 days)
In Collections: 5 (written off)
Current: 38

Closed Loans:

Charged Off: 4
Paid Off: 16

Open Bids: 0

Total currently invested: $1,117.62 (Principal Value)
Cash in Account: $46.28 (includes open bids)

Total Principal: $1,163.90

Weekly Blog Roundup

This is a series where I link to my favorite blog posts from the financial blogs that I follow and read directly. These are the articles I found particularly useful or good in some way. I hope you enjoy my choices and learn something too!

Week of 6/7/2010:

• Overdraft Fees at Online Banks @ Bargaineering. Jim does a great survey on what online banks charge for overdrafts. My bank, ING Direct, does not charge anything if you have their overdraft line of credit. Very informative!
  
• Finding Your Financial Blind Spots @ Get Rich Slowly. Staff writer Sierra Black wrote a great post on how to find holes in your budget. Good for those of us still trying to get a grip. Even I have trouble here sometimes!
  
• Reader Mailbag: Distractactions @ The Simple Dollar. Trents posts these often and it covers a variety of subjects. I picked this one because it touches on a very important part of finance for me: The emergency fund. He goes into some detail about how much you should have for emergencies. Very insightful and useful for me!
  

These are my favorites for the last week. Feel free to comment and share some others that I may have missed or not even know about. Have a great week!

The 2010 World Cup has begun!

I am normally not much of a sports fan. My one exception is the world cup. I make sure to follow it every 4 years. I am excited about the USA v. England game in particular and hope we can at least tie them!

I am working today but can watch the matches online. Thanks ESPN!

I hope everyone has a great weekend. GO USA!

Money Hacks: How to get ahead with psychology!

I have read about some money hacks recently and I do use some of them, and some of my own, to get ahead. Curbing spending is hard for a gadget lover like me but I have come a long way. Here are a few hacks I use regularly:

• Time Cost: I ask myself: How many hours did I have to work to buy this? Do I still really want it? How else could I better use this money?
  
• Come back Saturday: If I find something I like I will wait and come back Saturday to buy it. Most often I don't go back. I call it "impulse buy insurance".
• 30-Day List: Courtesy: Get Rich Slowly. If you see something you want put it on a 30 day list and review after 30 days to see if you still want it
• 2-for-1: Courtesy: Get Rich Slowly. For every item you buy you have to sell or donate 2. This doesn't always work but it is a good incentive to get the clutter down. I use this one now too!
• Sell Stuff First: Similar to above. If their is an item I want I make myself sell something to get the money to buy it. I do eBay often and use my paypal account to keep track of how much I have to go toward that item purchase.
• Going out: Find a coupon, discount, or groupon-like option. I force myself to never pay full price at a restaurant. Saves big!

The above hacks keep me out of financial trouble and more debt. There are tons out there! Find the ones that work for you and stick with them. Waiting to make a purchase almost always saves you money in some way or another.

10 Cornerstones of Solid Financial Health

Today I am taking a step back to look at the basics. I have written a lot of specific posts lately and decided that I need to get all of my core ideas and practices into once place. These are the things that you need in order to create and maintain a stable financial life:

• Emergency fund - This is the first step and arguably the most important. Without some money set aside for mishaps you can get behind easily. At the very minimum we should all have $1000 set aside. I choose to have at least 3 months of living expenses.
  
• Frugality - Cutting expenses and being smart with your money is the logical next step. Do you really need a home phone and cell phone? What about 1000 channel HD cable or basic? Use coupons and do sale shopping. Eat out less. The internet helps a lot here!
  
• Self Control - Pay yourself first. Resist impulse buys and make yourself wait before buying something. Use online bill pay and check your accounts at least weekly. Budget your "fun money" and stick to it. Get a "money partner" to hold each other responsible for sticking to the plan.
  
• Patience - None of us will get rich overnight. Save your money and stay on top of expenses. Over time we will get there!
  
• Goals - Set goals for yourself and work hard at them. Pay off your debts, start investing in your 401(k) and/or IRA. Start savings accounts for a new car, house, boat, vacation, etc. Without goals we cannot stick to our plans!
  
• Discipline - Once you set your goals you have to create a plan to reach them and stick to it. Make sure your put that $100 per month into your house down payment account every month. Automation and direct deposits help you a lot here. If you feel yourself slipping take a step back and re-evaluate. Why are you slipping?
  
• Investment Plan - For longer term goals and retirement you need an investment plan. Figure out the best mix of stocks/bonds/cash and adjust your investments accordingly. This is a good time to visit a fee-only adviser if you are unsure of how to approach it. The returns on the right portfolio for you far outweigh the costs of their service.
  
• Analyze - Take time each month to do a quick analysis of your finances. Are you paying any unnecessary bank fees? Is your broker charging high commission? Are your interest rates on savings in line with the competition? Are you happy with your financial situation and it's progress?
  
• Annual Review - This is a long but necessary step. Each year you need to do a complete evaluation of all aspects of your finances and re-balance your investment portfolio. Are you paying the correct amount of tax? Are your investments too volatile for you to stomach or do the returns seems too low? This is where you make your plan for the following year to work towards!
  
• Entertainment/Wants - Lastly, but most importantly, be sure to include wants and "fun stuff" in your budget. No one can stick to a budget that doesn't allow us to do things we enjoy. A good starting point is 50% Needs, 30% savings, 20% wants. If you are in debt I would lower to 5% wants. Fun stuff keeps us motivated and on track!
  

If you have the above 10 items covered you are on the right course to financial freedom. Keeping on top of things and checking up on a regular basis will keep the machine going. All it takes is time!

Coupons + Deals This Week

This is a weekly post of all the good deals that I have found online that are of note. They usually include free or deeply discounted items. A lot of them require coupons that are printable. Easy and free is the goal here!

This Week's Findings:

• FREE Skinny Cow Ice Cream Cup @ CVS. Get printable coupon @ coupon cravings.
• FREE Bayer Aspirin @ Walgreens. Use in-ad (at store) store coupon + printable coupon @ coupon cravings.
• $0.74 Dawn Dish Liquid @ Walgreens. Use in-ad (at store) coupon + P&G 6/6 0.25 off coupon from Sunday paper insert @ coupon cravings.

I can't wait to see what next week brings!

Weekly Blog Roundup

This is a series where I link to my favorite blog posts from the financial blogs that I follow and read directly. These are the articles I found particularly useful or good in some way. I hope you enjoy my choices and learn something too!

Week of 6/1/2010:

• Why Does Amazon.com Hide Some Prices? @ Bargaineering. Jim writes about why certain websites, like amazon.com, force you to "add to card to see price." Interesting read!
  
• Reader Story: Traveling Cross-Country Dirt Cheap @ Get Rich Slowly. A guest post about how one can take a cross-country road trip. Good tips and ideas to use on any road trip!
  
• How to Sell Off a Media Collection @ The Simple Dollar. Trent writes a very good and detailed guide on how to sell off dvds, cds, etc. to get some cash. It all comes down to how patient you are!
  

These are my favorites for the last week. Feel free to comment and share some others that I may have missed or not even know about. Have a great week!

ING Direct iPhone App is nice!

I recently found and installed the ING Direct iPhone app. It got a lot of bad reviews but I think it is ok. It allows me to easily view my accounts on my phone and find a close by free ATM. It more or less takes you to their mobile website but works OK all the same.

The online banking portion of the app allows me to do basic functions and see all of my account balances. I can make transfers and P2P payments all from my phone. Pretty handy!

The free ATM locator is my favorite feature since it utilizes the GPS function of my iPhone to find a nearby ATM. It gives you the address and can also map it using the built in Google maps function.

Overall I find the app useful and better than nothing. I agree that it could be more robust but for free I cannot really complain.

June 2010 Net Worth Update

It is the 1st of the month again and it is time for my net worth report card. I had a slow month due to some extra expenses and lower income. I hope to do much better next month!

As of today my current net worth is ($12,805.89). That is an increase of $193.83 over last month. The major contributing factor was paying off one of my credit cards!

I expect next month to be a slow month since I have no more major changes coming my way and a tighter budget after my recent paycut. I am hoping things will improve at work so I can get back in the positive.

Alternative Income this month:

eBay: ~$30

Coupons + Deals This Week

This is a weekly post of all the good deals that I have found online that are of note. They usually include free or deeply discounted items. A lot of them require coupons that are printable. Easy and free is the goal here!

This Week's Findings:

• Redbox Text Club: Sign up here to get a free movie rental every month from redbox!
  
• Target: Eggo waffles for $0.75 with printable coupon @ coupon cravings.
  
• Waffle House: FREE fountain Coke. No purchase required!
  

I can't wait to see what next week brings!

Weekly Blog Roundup

This is a series where I link to my favorite blog posts from the financial blogs that I follow and read directly. These are the articles I found particularly useful or good in some way. I hope you enjoy my choices and learn something too!

Week of 5/30/2010:

• Cashback vs. Point Reward Credit Cards @ Bargaineering. Jim writes about the pros and cons of each in detail. A great guide for those card shopping.
  
• Reader Story: Traveling Cross-Country Dirt Cheap @ Get Rich Slowly. A reader submitted his tail of road trips on the cheap. It has some good advice and info anyone can benefit from.
  
• Is it Really Cheaper to Ride the Bus? @ The Simple Dollar. Trent goes into detail with some good statistics on how much owning a car really costs. Good insight!
  

These are my favorites for the last week. Feel free to comment and share some others that I may have missed or not even know about. Have a great week!