Archive for February, 2009
Monday, February 16th, 2009
Welcome to all the MSN readers who came over from the guest post I did at the Smart Spending Money Blog: 52 Ways to Make Extra Money. I appreciate you stopping by Prime Time Money and joining in on the conversation.
Be sure and visit another hot discussion going on right now: How To Save Money Like A Madman. You can also visit my Best Of page for more articles.
Lastly, if you like what you read here, consider signing up for the free daily updates to get the latest money saving articles delivered by email or feed reader. Thanks again for stopping by!
Posted in Blog | 1 Comment »
Monday, February 16th, 2009
From time to time here on Prime Time Money I like to share some of the woodworking or home-improvement projects I complete in my spare time. Sometimes these are ideas that have saved me money. Most of the time though, they’re just things I do to have some fun and use my brain in a different way. See more of them under the “Do It Yourself” category.
The latest project is a bookshelf I built to be used for our baby girl’s room. You could build this yourself and it’s nice enough to use it in your home office, living room, or bedroom.
I got the idea for the bookshelf from a friend, who’s built a similar one for his living room. In general it’s built using only inexpensive lumber, a table saw, some wood glue, sand paper, and a nail gun. I added a couple of coats of some black semi-gloss paint to match the other furniture in our baby girl’s room.
How I Built the Bookshelf
The above picture shows the side paneling, built with four (4) 1×4 treated pieces of wood held together by five (5) 1×2 strips made from another 1×4. The strips are glued and nailed to the panel pieces. Since your bookshelf has two sides, you’ll need to make two of these side panels.
These strips serve to add strength to the bookshelf, but also serve as the rails for the shelves. For this reason, you’ll need to place your strips in exactly the same location on either panel. And because you’re building it yourself, you’ll get to decide where to put your shelves. I chose to make two bigger spaces on the top and bottom, with two smaller spaces in between.
Up next, you’ll need to connect your side panels to the top. The top is a special “project piece”. It’s basically strips of hardwood glued together to make a nice, big piece of wood, suitable for a bookshelf top. This was the most expensive part of the project, but worth it.
To connect these two pieces, I simply used the nail gun on the top side of the top piece and nailed down into the side panels.That didn’t feel strong enough, so I ran a piece between the two side panels just under the top piece at the back. See the black pieces in the picture below. Unfortunately, the above two pictures are all the construction pictures I have. I’ve put together this rough drawing though for you to follow…
As you can see, once you get the two side panels connected to the top piece and you have your support slats in place, you’ve basically got the framework for the bookshelf built. Up next is adding the decorative trim pieces (above in red). Again, I used the 1×4 pieces to create these trim pieces. Doing this adds some depth to the look of the bookshelf and helps to hide the shelf support rails. These pieces are all nailed to the framework using the nail gun.
Next, I added a pre-finished faux-panelling to the back of the bookshelf. You can barely make it out in the last picture below. It adds a decorative touch without adding too much weight to the bookshelf.
Lastly, I purchased a 1×12 piece of shelving wood to create the shelves. This was my last and easiest step. The shelves aren’t nailed into the bookshelf, so I just needed to cut them to the correct size.
Once all the pieces were in place, I sanded the bookshelf (a lot, so little fingers can’t get splinters) and added two coats of paint. Here’s the final product…
The Finished Bookshelf
In the picture above, you can see the completed bookshelf. I have to say, this has to be one of the favorite projects I’ve completed. It was fairly inexpensive ($75 for all the supplies), quick to build, and it turned out great. Nice enough to go in any room in my house, I’d say. Makes me smile to think that our little girl will grow up using this bookshelf her Dad made her.
In this last picture you can see the crib which I was trying to match somewhat with the look of the bookshelf. You can barely make out the faux-panelling on the back of the bookshelf. This, I thought, went well with the slats of our girl’s crib.
Let me know if you’re interested in doing this yourself and I can help provide more details for you. Also, if you’ve done any woodworking, send some pictures my way. I’d be glad to share your project here on the blog.
Update #1: A reader emailed in need of a materials list for this project. While I don’t have an exact list made up, I’ve thrown together a rough version for you to start from. Here’s roughly what you’ll need:
Materials List
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48 feet of 1×4 inexpensive pine (for all the side slats, trim, and internal framing)
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12 feet of 1×16 shelving (for the shelves)
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roughly 24×36 project piece (nice) of hardwood (for the top)
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at least 3 feet x 4 feet sheet of beaded board panelling (back)
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sander
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wood glue
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nailgun
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black semi-gloss paint and brush
Update #2: Readers have been emailing in asking for more details on how to build the shelf. I took a stab at some crude step-by-step instructions:
Step-by-Step Instructions (…sort of)
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First, make the side pieces: cut the 1×4s into 8 pieces, 4 ft in length; use some more 1×4s (cut longways in half) to make the supports for the sides; glue and nail gun the supports to the 4 side peices. You should now have your side peices ready.
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Nail the top project peice to the side peices.
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Cut 2 extra 1×4s (cut in half) into cross bars for the bottom (to give the bottom of the shelf some extra support).
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Use the remaining 1×4s to add front facing trim work to the shelf.
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Cut and nail the beadboard to the back of the shelf.
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Cut the 1×16s into shelf peices.
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Sand and paint it all and place the shelf peices inside. Viola!
I know that’s not as specific as professional plans. To be honest, I just kind of made it up as I went along. My advice would be to study the pictures I’ve provided and study bookshelves you see in stores. Get a feel for how the internal framing and structure works. Then, just take that knowledge and my materials list, apply your own math, and get to work.
Let me know how it goes!
Posted in Do-It-Yourself | 11 Comments »
Saturday, February 14th, 2009
Today we had a nice, low-key Valentine’s Day celebration. We invited some family over, made sugar cookies, and ordered a heart-shaped pizza. Did you know…they don’t cut the heart-shaped pizza unless you make a special request. I guess they don’t want to give you a broken heart. 
Did I mention it was a cheese pizza?
Anyway, here are the quickhits:
Enter to Win $200 from FNBO Direct: Savings Resolution Giveaway – Visit the Pay Yourself First Challenge website and enter yourself into the giveaway. While you’re there, cast a vote for Phil.
Details about the giveaway:
“No purchase, application, or use of sponsor product or service necessary to participate. You must be 18 years of age or older at the time of entry to win. All entries must be made and received by February 27th, 2009 in order to be eligible for the FNBO Direct drawings. There is only one entry per person. The winners will be selected from eligible entries on March 6, 2009.”
The Fridge is Full at Work – Another Sign of the Economy – Free From Broke
Better Save Than Sorry – Milk Your Money
15 Ideas for Saving Money at Restaurants – Sense to Save
How Fit Are Your Finances – My Investing Blog
Small Space Solutions – Remodeling This Life
Dave Ramsey’s Baby Steps – Bible Money Matters
Personal Tax Breaks in the Stimulus Plan – Cash Money Life
Lincoln, Darwin, Superstition, and Romance – My Money Minute
Have a nice weekend!
Posted in Personal Finance Links | 2 Comments »
Friday, February 13th, 2009
The word Frugal and Valentine’s Day don’t really seem to go together. But I’m challenging myself to come up with some frugal ways to show the one’s you care about that you love them this Valentine’s Day. First though, I encourage you to check out this related podcast.
Money and Relationships Podcast
The latest FNBO Direct Pay Yourself First Challenge “Savings Circle” Podcast is all about Valentine’s Day spending, as well as, Money and Relationships. It’s about 10 mins or so and includes some good insight from the contestants and Liz Weston. Listen to the Savings Circle Podcast (if only to hear what your favorite blogger sounds like). Now that you have that rollin’ check out the rest of this post…
Frugal Valentines Day Gift and Date Ideas
Make a Mix Tape – Start out your perfect mix tape with this freebie…a classic.
Plan a Movie Night at Home – Get free movies with Redbox.
Write a Special Note – Nothings says I love you, like the words “I Love You” handwritten on a note. Well, maybe saying “I Love You” says it better…but you get my point.
Cook Up a Nice Meal – If you never do any cooking, make a special effort sometime this weekend to cook up something nice. Or, if you both like to cook, why not make a date to cook up something new and extra special. For dessert, make your own chocolate covered strawberries.
Plan a Picnic – You supply the food and drink and a nice blanket. Find your favorite place and just hang out. I know you Yanks are laughing at me right now. But it’s warm enough here.
Go for a Walk – Pick out a park you’ve never visited, or go to your old favorite. Couple it with the picnic idea and you’re set.
Give Cards At the Store – Some people like to go to the card store together and pick out cards, then read them to each other. Pick a funny card and a sweet card. Then, when you’re done, just put the cards back. A fun outing and doesn’t cost a thing.
Go Out to Eat – You can still do this and be frugal if you learn the tricks to save money when dining out.
Alright, time for you to share your ideas. Leave them in the comments below. I wish you and yours a very Happy Valentine’s Day.
Update: Just talked with my Grandparents who are celebrating their 60th anniversary today. They said they had a nice lunch and someone had announced their anniversary on the morning radio program. Happy 60th Grandma and Grandpa! What a wonderful testament to lasting love you are.
Posted in Frugal Living | 2 Comments »
Thursday, February 12th, 2009
It’s been a while since I’ve updated you guys on the FNBO Direct Pay Yourself First Challenge. For a quick refresher on my participation in the challenge just visit the Pay Yourself First Challenge category page. If you’re a new reader, check out my post on getting into the top 5, as well as my video entry, for more info.
Just so ya know, the contest is still going on, and doesn’t end until April. I’ve updated my blog page recently. So if you haven’t checked it out in a while I encourage you to do so.
Anyway, I’m currently in 3rd place, and I’ve reached 100% of my savings goal. That means we’ve saved up enough for the expenses related to our baby girl. It’s a good thing too. We’re due in just a few weeks.
So, the only thing holding me back is votes from the American Public. I know you guys have been pouring in the votes for me, and I thank you for that. Votes, among other things, will help me win the grand prize.
How to vote: If you think I’m the best challenger (and I know you do) and if want to cast your vote for me, please visit my blog at http://pyfchallenge.com/meet_phil and click the vote for Phil button (like the one pictured above).
You can vote every day. Throughout the remainder of the challenge I’ll have the vote for Phil button in the sidebar of this blog, as well as in the RSS feed and daily update emails. If you see it and have an extra second to spare, I’d appreciate the vote.
Lastly, if there’s anything more you’d like me to share on my pyf challenge blog let me know.
Posted in Pay Yourself First Challenge | 1 Comment »
Thursday, February 12th, 2009
It’s not quite official, but it’s close. The highly sought after (and highly Googled) portion of the economic stimulus plan, the second stimulus check (or credit, this time), is almost official. Will it be another one-time $600 check like President Bush gave? No. Will it be a $10,000 check as some have suggested in past comments on this blog? No.
It will *likely* be $13 more, per week in your paycheck. If approved in its current form, the economic stimulus plan will give a tax credit to every worker of $400, split up and credited, over the balance of one year, via your paycheck. Which, according to the AP, works out to $13 per week. The math seems off to me, but oh well.
Jim Abrams of the AP did a Q&A on the stimulus and here’s what he had to say…
Q: What are some of the tax breaks in the bill?
A: It includes Obama’s signature “Making Work Pay” tax credit for 95 percent of workers, though negotiators agreed to trim the credit to $400 a yearinstead of $500 — or $800 for married couples, cut from Obama’s original proposal of $1,000. It would begin showing up in most workers’ paychecks in June as an extra $13 a week in take-home pay, falling to about $8 a week next January.
So what do you think? Is $13 more dollars a week going to make people go out and stimulate this economy by buying more? That is, after all the intent of the plan.
I think I’d rather see them put that money to better use. Although, I suspect for some, the extra $50 a month could make the difference. What do you think?
Posted in Tax and Government | 17 Comments »
Wednesday, February 11th, 2009
This post was originally published at the No Credit Needed Blog.
It’s almost spring training time for major league baseball. Time for the players to head south and get ready for a long season of games. In a similar way, we non-pros need to dedicate some time during every season to get our financial lives together. Why not start now? Whether you’re a rookie or an old timer, here are the 5 (unofficial) rules of spring training for your finances:
Pitchers and Catchers Report First
The first positions to show up at training camp are the pitchers and catchers. They do this because it takes longer for them to get their arms ready for the season, and their ability to work together is most critical to the team’s success.
When getting serious about managing your finances, whether it’s your first time or just an annual update, it’s best to start with the most important elements. For me two major elements have been (1) spending less than I earn and (2) ensuring proper savings for retirement. These, I’ve found, have been two of my most “important players”. Therefore, I focus on those initially. Determine what the major items are for you and spend your early efforts there.
Start Slowly
Regardless of the position, everybody player needs to ease into it. There’s no point in going out full-speed from day one, risking injury and burnout.
The same is true of our finances. Don’t try and tackle every issue tonight, or even this week. That huge amount of credit card debt took a while to build up, so it might just take a while to get rid of. Make yourself a plan of all the things you need to accomplish, whether it’s debt reduction, organizing your files, increased retirement savings, or buying a first home. Work on them as you find time. Take a long-term approach to meeting these goals. It’s a long season, just make sure you have a plan and you’re headed in the right direction.
Go Somewhere Warm
Major league teams go to either Arizona or Florida for their spring training. These are known as the “cactus” and “grapefruit” leagues. They take this out-of-town approach so that they have consistent weather and so they can be away from the distractions of their home town.
For me, I’ve found that I do best with my finances when I take myself out of my normal routine and comfort zone. For example, reading a new and motivating personal finance book, visiting a quality personal finance blog, going cash only for a week. Mix things up a bit and see how that changes your perspective. Hopefully it will provide the motivation for a lasting effort with your finances.
Practice the Fundamentals
The key to hitting a fastball or making the throw to first is not natural talent alone. These players swing the bat several hundred times a day and make the same routine throws over and over again. Repetition of the basics is the backbone of any quality baseball training program.
Likewise, for your finances, practicing the fundamentals over and over will lead you to success. For debt reduction, practice the debt snowball. For short-term and retirement savings, try making it automatic. Most importantly, find the little things that are working for you and simply repeat them.
Have Fun
Lastly, another element to spring training in major league baseball is lots of fun. Spring training is filled with fun moments, and the teams do a good job of keeping the atmosphere light and care free.
Personal finance can be a dry and boring topic if you let it be. Make sure you’re having a little fun with it along the way. Do this by focusing on all the enjoyable experiences you will be able to afford once you get things organized. Also, be sure and celebrate the goals you accomplish along the way.
Posted in Organize Your Finances | 5 Comments »
Tuesday, February 10th, 2009
This is part of my new series of tax tips I’ll be featuring on Prime Time Money until April 15th. Sign up for free updates to ensure you get every tip.
Every year about this time I start thinking about all the things I should have done to reduce my 2008 taxes, or I at least start scheming about what I want to do to reduce what I’ll owe at the end of 2009.
There is, however, one thing you can still do (until you file your taxes) that can significantly reduce the amount of taxes you owe for 2008: contribute to a traditional IRA. I’ve done this in years past with great success. The traditional IRA is what got me started with retirement savings.
The traditional IRA, I’ve found, is an excellent way to not only to reduce the amount of taxes you owe now, but also to help you save more for retirement.
About the Traditional IRA
A traditional IRA, or Individual Retirement Account, is a savings account into which you can make tax deductible contributions towards your retirement. Earnings from the account aren’t taxed until you withdraw them.
The money in the account can be invested in a variety of things to suit your risk level: money market accounts, bonds, mutual funds, etc. There are various income and withdrawal limitations to be aware of. I suggest you refer to the IRA Guide from the IRS website.
How an IRA Can Help Reduce Your Taxes
Because your contributions to a traditional IRA are tax deductible, they reduce the amount of taxable income for the year in which you’re contributing. Therefore, you can simply designate that your contributions, made prior to April 15th, 2009 or your filing date, be attributed to 2008.
The contribution limit for 2008 is $5,000. Therefore, if you contributed the max amount, your taxes would be reduced by the result of $5,000 x your tax rate. Not bad, right?
How to Set Up a Traditional IRA
You can usually open up a traditional IRA at your bank (i.e. ING DIRECT), investment firm, or with your local CPA. There will be a few forms to complete, and you’ll need to have your contributions funds ready. Be aware that some places have minimum requirements.
Take some time soon to do your own research, ask your tax professional, and consider making a contribution before you file your taxes.
Further Reading
If you have a tax tip you’d like to share here on Prime Time Money please use my contact form to tell me about it.
Posted in Tax and Government | 3 Comments »
