It’s the end of the year…it’s time to get organized! You need to look back at your bills throughout the year, your income and your other expenses…if you haven’t started your budget yet, now is the time! Make it a resolution to get your life under control and to get out of debt! Get mad! Make the decision that this time next year, you will be out of debt (or well on your way to being debt free) and stick to it.
Archive for December, 2009
Get organized!
Wednesday, December 30th, 2009We’re on vacation, but…
Monday, December 28th, 2009I still wanted to give a tip for this Monday. If you’ve been heading out for the after Christmas sales, remember that it’s not a sale if you didn’t need the item in the first place! Already bought something you don’t need? It will be a lesson in being a grown up to take it back to the store and returning it! Make yourself proud! Don’t fall into your usual patterns! Save that money! Don’t spend it!
Merry Christmas 2009!
Friday, December 25th, 2009Merry Christmas. Go spend time with your family, as we will be having family time as well.
Some food for thought!
Wednesday, December 23rd, 2009Today I just wanted to share a few insights that I ran across while researching other topics for this past Friday. Since we are heading into Christmas and millions of us will be going home for the holiday, I thought it a good idea for us to be reflective and introspective…now is as good a time as any for personal and familial growth.
- No one’s perfect – This shouldn’t even have to be said, since we should all already know this, but too often we do not. We know that we aren’t perfect, but don’t extend this logic to our friends, loved ones and other acquaintances. We should though, because holding people to a standard of perfect is only setting you up for disappointment. Try to remember that the people in your life are trying…and you should try too!
- “Events reveal people’s characters;they don’t determine them” – This should be something that we all remember. If your friend does something hurtful to you because of a bad situation they find themselves in, they were likely to do it anyway…it was not the situation that created the attitude, the attitude merely came out during the situation. The event doesn’t matter. “You have the chance to be the person you wish to be, until you die”.
- Love and family are hard, you can’t fake feelings forever - Be honest with those you love. Keeping relationships strong through decades is a lot harder than you might think it is, and dishonesty will only breed contempt. Share your thoughts and feelings with friends and loved ones, even when it is hard.
- Keep your eye on the prize – Never lose sight of your goals and aspirations. I know that in this instant gratification, have it now world, it’s easy to lose sight of your own feet in front of you, but the dream is part of you, and you shouldn’t give up on it or forget about it. I don’t care if your dream is to be President of the United States, or to be the loving housewife and mother of a wonderful husband and 2 great children…never forget that dream, and, as Winston Churchill said, never give in.
You shouldn’t always pick it up!
Monday, December 21st, 2009Today’s Mucho Moolah tip is simple but effective: Look, but don’t touch! All too often, when we go shopping, even if we tell ourselves that we’re only window shopping (a difficult task for most people), we still end up buying things. Why is that? Well, it’s because when we look at things, we want to touch them as well. The retailers know this about us, since they have paid big bucks to do research on how and why consumers spend money, and they not only have figured out that putting a sweater, for example, on a table is inviting, they know that if you pick it up, you’re more likely to buy it! Not only that, but the longer you hold onto the item, or carry it around with you, the more your sense of ownership has increased, making you even more likely to buy it! Whew, have they got us figured out or what?
So, keep our advice in mind, and don’t touch it! If you’re the type of person to go out for “retail therapy” (do NOT get me started on how much I loathe that phrase, and what it implies), then you need to find something to do with your hands. Put them in your pocket, carry a big bag in your hands, text etc. Finding something to do with your hands could save you a lot of money over the course of the month, because every time you see a $200 and don’t buy it, that’s $200 in your pocket for something else, which I hope will be savings!
Gen Y-ers grow up!
Friday, December 18th, 2009Today’s article is from Foxbusiness.com, and is titled Growing Up Financially Is Hard to Do by: Gail Buckner. It’s some interesting commentary on how the Gen Y-ers are responding to the recent economic turmoil!
Generation Y is a term applied to those people currently 22 to 33 years old, of which, I am a member. These people are typically the offspring of Baby Boomers, and according to many in the work force, are nothing like their parents, especially in how they view their jobs. In the past, this (my) generation has been characterized as a bunch of job-hoppers. But now that they and their friends are experiencing layoffs and financial problems, the number of those surveyed that had changed jobs in the last 2 years dropped from 40% to almost half of that, and almost a quarter of them plan to stay with their employer until they retire…now there’s some surprising information!
Another interesting thing of note, however, is that the economy and higher rates of unemployment have changed the optimism and confidence typically displayed by this group of people, and they are becoming more financially conservative…all I have to say is that it’s about time!
Apparently, a new survey shows that 41% of Gen Y-ers have become more fiscally conservative in the last year, and nearly 2/3 say they’re “trying to save more now than a year ago”. I think that is incredible! To know that a lot of people from my generation are waking up and saving is great. And as far as retirement, in the last year the number of Gen Y-ers that are saving for retirement rose from 18% to 53%, but the majority of them are only focused on an emergency fund (which is a good start!). Considering that more than 30% of Gen Y-ers owe more than $5,000 in credit card debt, saving for an emergency and/or retirement is a nice change of pace.
No matter what their motives, the Generation Y group has started to notice the benefits of saving money and job security. I have feared that my fellow Gen Y-ers would never learn this lesson, but I am happily wrong. Maybe it was the economy, maybe it was the fact that it became cool to be a “recessionista”…or maybe it was that we got tired of hearing the word “recessionista”, and started watching our money to get people to quit using that word…either way, it happened, and hopefully it’s here to stay!
Handmade gifts! There’s still time to make something for your loved ones!
Wednesday, December 16th, 2009I know that in some parts of the country, a handmade gift is the last thing anybody wants to receive, but for most of us, it’s still a very thoughtful and kind way to show you care during the holidays! No, it’s not a $200 bottle of wine or $500 shoes etc., but it fits in the budget of most people (are you struggling right now? This could be a good choice for you!) and expresses a kindness and appreciation that a store-bought gift doesn’t always show…especially if the gift was bought without the individuals personal tastes kept in mind. You know, on a personal note, I’d like to say that buying a gift for someone without any thought put into it…basically just to buy them a gift, is not cool…it wastes your money and probably won’t be useful to the recipient.
Anyway! There a lots of great choices for handmade gifts. You could bake sweets or bread, knit/crochet something , make a decoration or make handmade soap etc. for someone. The possibilities are endless. It only takes simple know how and a few items to make most of them. They are especially economical in bulk! For different ideas on handmade gifts, go here, here and here. There are plenty of other places to find gift ideas on the web, but these will get you started! Good luck and remember, don’t think you can’t do something because you haven’t in the past! Jump in a tackle that project!
Stop enabling your grown children!
Monday, December 14th, 2009It is estimated that Baby-Boomers provide $59,000 in monetary help to their grown children over a typical 5 year period. If you’re a Boomer, you want a money saving tip? Stop enabling your children by supplementing their income and either cut them off completely or cut your “gifts” down by 75%-85%!
This is one of the most ridiculous things going on in our society right now. I cannot believe that Boomers are giving so much to their grown, totally able to work (even if that job is “beneath them”) adult children. I mean, come on…so what if the job doesn’t pay $100,000 a year with nice perks etc. There is value in being able to say you are making it on your own. Let’s break down that number above…$59.000 in 5 years is roughly $12,000 a year, or $1,000 a month! That is a part time job! You want that lifestyle? Don’t get it from your parents, who would like to retire soon!
The bottom line is this: If you’re a Boomer and are looking at your retirement nest-egg, realizing that retirement is going to be tough (if possible at all now or in the future), then you need to evaluate where your money is going. If, that money is going to your children, it is time to cut them off! They can have what’s left when you’re gone (if anything) and do what they want with it at that time. Why would you risk your livelihood on their new car/home improvement etc.? Teach them the hard lesson that sometimes you have to take care of yourself. They will have to learn that lesson when you’re gone anyway, and it will be easier if they have your shoulder to cry on when they learn that lesson.
Are you the child of a Baby-Boomer? Do you “borrow” money from them that you never pay back? Perhaps it’s time for you to realize that you’re draining their retirement money, and that you need to grow up and pay your own way. Nowhere in the “how to be a parent” handbook does it say that your parents are responsible for paying your way from birth to YOUR retirement! Cut them a little slack! If you can’t live without all of those nice things that you’re buying with their money, get a part time job…otherwise, perhaps it’s time you learned to live within your means!
A new twist on “Find a need and fill it!”
Friday, December 11th, 2009Today’s post is based on a post by one of our favorite bloggers here at Southern Couple’s Guide, Dan Miller, author of 48 Days To The Work You Love. The post is titled Find a Need and Fill it?, an old business motto that has been helping people find ways to become entrepreneurs and make money for years. Some examples of filling a need would be inventing a wheel, inventing a steam engine or growing a crop that feeds many people, like potatoes or wheat.
Dan Miller has pointed out other products in this post, however, that might not necessarily be able to be pigeon-holed in the need category. He talks of the fancy tennis shoes that have come about in the near past, that help with stabilization and have a broader base, and their new counterparts that are narrower and simulate running barefoot at $245 a pop (I spent a lot of time deciding which way to go on this very topic when I decided to start running)!
Another product, Bling H2O, that has been on MTV is encrusted with Swarovski crystals that spell out “bling” on the bottle. The funny part is that the water comes from Tennessee, and probably isn’t very “blinged-out” on some guys farm. That doesn’t stop them from sealing the bottles with a cork and calling it “Limited Edition”. The funny part is the price! This water can be bought for $441 dollars a case (12 bottles) or $36.75 a bottle. Can we say ridiculous? Funny thing is, people are buying it!
And this is Dan Miller’s point: If you fill a “need” you can make a living. If you fill a “want”you can get rich. I agree with him wholeheartedly, I am simply dismayed at the reason for such a statement to be true. In our instant gratification, want the best, have to be famous society, wants and desires trump needs. We all have desires, and I think that’s OK. But when we start to go into debt to obtain them, something is wrong. When we start to think we “deserve” them, we are out of touch with reality, because the truth is that you don’t “deserve” anything just for being you…you have to earn it! As sad as it is, however, it’s how things work today, so if you can find a want and fill it, go make yourself rich!
You’ve used it for swimming! The buddy system gets an update!
Wednesday, December 9th, 2009Today I wanted to talk about a great way to help control your spending (or over-spending). A method of checks and balances, so to speak. The buddy system! You remember the buddy system. Perhaps you used it at the swimming pool or when going to a public restroom as a child, or perhaps you used it when in the grocery store with your older siblings…either way, you’ve done it before, and if you’re struggling with spending money (are you a spend-thrift?), you need to do it again!
Okay, so here’s your refresher course, not that most of you need it! When you’re out shopping, and you see something you like, you can approach it 1 of 2 ways. The first way (the one we opt for) is to call your spending buddy and tell them what you’re thinking of buying. If they think it’s frivolous, they can talk you out of the purchase before you buy it. The second option is to call your spending buddy after you’ve made the purchase and try and defend it. The difference is usually how bad you can be made to feel. Think about it…if you call during your shopping, they can stop you from buying it and praise you for putting it up. If, however, you choose to call your spending buddy after the purchase, while defending it you could feel very guilty for the purchase and it could cause problems in the relationship. I think it’s worth the risk to the relationship, however, if it teaches a spend-thrift a hard lesson to learn!
Some other information worth noting…if you choose your significant other as your spending buddy (which is the system your favorite southern couple has in place), you had better be sure you have an absolutely solid relationship that cannot be shaken by a little criticism and guilt. My advice would be to try it on a temporary basis for a week or two before deciding to put it in place as your go-to system. If you find that your feelings are hurt by your significant other, and you can’t get past it, stop the trial before real problems follow and both of you should choose someone else to be your spending buddy. Who makes a good spending buddy? Someone you look up to or respect. A person that can criticize you without losing your friendship or relationship. This could be your mother, sister, brother or best friend. You decide who works best for you, but just get the system in place. The quicker you start the buddy system, the more money you’ll save!
