Archive for March, 2009
Monday, March 30th, 2009
I’m traveling this week for a work/training thing. While I’m on the road, work picks up the tab…but not until I hit the ground in the out-of-town location. So, unless I’m careful, I could end up spending a bunch of money at the airport on the way out of town.
I thought I’d share a few of the things I did today to avoid overspending at the airport:
Eat Outside of the Airport – Today I picked up lunch on the way to the airport. Although it was fast food, it wasn’t fast food in the airport, which is way more expensive. Your best bet is to actually eat at home.
Bring a Few of My Own Snacks – Even if you eat a meal before you get to the airport, it’s easy to find yourself in the convenience shop, prior to take off, making a impulse buy. Thanks to Mrs. PT for making my snack pack today. If you have a nice bag of snacks brought from home you’re less temped to spend. Just make sure your snack pack doesn’t include liquids or gels.
Bring My Own Reading Material - Lastly, I brought a couple of books and a magazine for the flight. The books I got as a gift or from Half-Priced Books, and the magazine is through a subscription. Off the shelf magazines and books are temping at the airport, but way too expensive and not necessary. Consider visiting the library and picking up a few free books for your trip.
Every little bit of savings adds up, and airport prices are something frequent travelers should definitely try to avoid. I was able to do it successfully this time. If you’ve got any other savings tips while at the airport, please, let us know in the comments.
Posted in Frugal Living | 7 Comments »
Sunday, March 29th, 2009
I have several things on the blog and personal to-do lists right now. April 15th is approaching soon. I need to finish a project at work, finish contributing to our Roth IRAs (we’re setting them up with Vanguard), get life insurance and a will, setup a 529 account, and complete our taxes. I’m not complaining though. All this activity means things are changing for the better around here.
Win a Copy of TaxCut
There’s still time to win a copy of H&R Block TaxCut Premium. Head over and leave a comment for an entry. You have a really good chance of winning.
Live Event with Jean Chatzky
This Thursday, April 2, 2009, 3:00 p.m. – 4:00 p.m. E.T., Jean Chatzky, financial editor for NBC’s Today is being featured in a live event online at http://liveperson.com . A free excerpt from Jean Chatzky’s new book The Difference will be available for download.
More Articles
Things to Consider if Your Company Cuts the 401k Match There’s usually a positive to every bad situation you find yourself in. I lost my 401k match recently and all I’ve been doing is complaining and feeling sorry for myself. This article made me rethink my position on the issue.
High Interest Checking Finders You need to have your savings in a high-yield savings account. This article shows you some places to find the best of the best.
An Experience as a Price is Right Contestant Getting to meet Bob Barker. Need I say more.
No Job is Below You Thoughts about jobs and employment.
No Doom and Gloom Enough with the “downturn in the Economy” talk already.
Carnival of Personal Finance at Four Pillars Thanks host!
Have a great week!
Posted in Personal Finance Links | 1 Comment »
Friday, March 27th, 2009
This is a guest post from Trisha Wagner.
When it comes to financial stability and success there are several personal habits that you can develop that will either help or hinder reaching your goals. If you are interested in increasing your savings, eliminating your debt and finding financial stability developing the following habits can help you achieve success.
Control Impulse Spending
There are several behaviors that can have a negative impact on your budget one of which is impulse spending. This seems to be a personality trait that either you have or don’t have. Personally I’m guilty of impulse spending yet have friends who are never ever tempted to buy something on impulse.
If you find yourself spending money without thinking- going out to eat often, shopping or making online purchases on a whim then you may have an issue with spending money without first thinking how it will affect your bank account.
Pay Yourself First
This is a very important habit you should work on perfecting. Far too often people, especially those living on a tight budget pay themselves last or not at all. A fundamental part of finding financial stability lies in the ability to save money. You must get into the habit of paying yourself first from each and every paycheck.
Ideally you will set this up to happen automatically having a predetermined amount of money transferred from your checking account to saving account each payday. Once this becomes a habit you will quickly learn that you don’t even miss that money or you can adjust your budget to accommodate the amount. Whatever it takes, it is important that you make this happen.
Eliminate and Avoid Debt
Many people who have debt go through each day, month, and year making debt repayments that only place a strain on their budget and limitations on their financial growth. If you do not already have a debt elimination plan in place research your options and find a process that will work for your situation. Going along each day hoping you will eventually pay your way out of debt (without an aggressive plan) is simply not going to work.
In the interim stop using credit cards and get in the habit of paying for items with cash. The only way to use credit cards without incurring further debt is by only charging what you can afford to pay off each month, if you cannot afford to pay the balance in full or are prone to making impulse purchases you are better served not carrying a credit card at all.
Learn About Personal Finance
If you haven’t already done this take a few minutes and surf the Internet for personal finance websites or blogs. You might be surprised at the volume of information that is available that can help you learn about managing your finances properly. By educating yourself on the basics of personal finance you will be more comfortable and confident in making decisions regarding your own financial situation.
Evaluate Your Expenses
Do you know where your money goes each day…do you really know? If you don’t- take the 30 challenge and track your expenses for one month. Either write down or keep receipts for every dollar that you spend in that period. At the end of the challenge you will be able to see where your money is going and where you are more likely able to cut costs.
Keep in mind living a more frugal lifestyle doesn’t mean you have to deny yourself everything instead you are simply learning where you are wasting money. Once you see areas where you are wasting money you make the changes needed to save and invest that money to serve you better in the future.
Trisha Wagner is a freelance writer for DepositAccounts.com where you can compare rates of deposit accounts from dozens of banks in one place. Trisha writes regularly on the topics of personal finance and saving accounts.
Posted in Organize Your Finances | 6 Comments »
Thursday, March 26th, 2009
After Monday’s post about not borrowing from the 401k, I had a thoughtful comment from someone who’s done just that and offered to share her experience. In my opinion, if you had to borrow from your 401k as a last resort, here’s how you should go about it. Here’s the comment from Cheapskate who blogs @ Yes I Am Cheap:
“Let me speak from the experience of someone who HAS borrowed from my 401K.
1. I borrowed from my 401K at 28 so I knew that I had quite a lot of time to repay the money. The loss in potential interest did not bother me too much. I also made sure that the repayment period was as short as I could afford it to be. I did not want to extend it.
2. I made the interest rate as high as the return that I had been getting on my money. Thankfully I borrowed the money right before the recent crash so I actually ended up preserving some of my money since my portfolio lost 35% last year.
3. I was in dire need on the money and had no other place to come up with the large amount of cash that I needed in such a short amount of time with an affordable interest rate. I would not recommend borrowing money to purchase a car or finance education or something like that but if it comes down to borrowing against the 401K and being out on the street then I am all for tapping that cash.
Everyone has different situations but you should be fully aware of what you are getting into. Know that you have to repay immediately if you separate from your job. Know that you have to pay both penalties and interest if you do not repay. Things like that could make you pause. Know that the loan is paid back with AFTER tax money.
I did what was right for me at the time and in 8 months or 16 payments from now I will be free of the 401K loan, freeing up a full $400 per month to smash my other debt. It also taught me how to live on $400 LESS per month while still contributing 6% of my pretax income to my 401K so I will nor return to my old ways.”
Thanks for sharing Cheapskate, and good luck getting rid of the debt and blogging your efforts at YesIAmCheap.com.
Posted in Debt Reduction | 8 Comments »
Tuesday, March 24th, 2009
Instead of the normal Tuesday Tax Tip, today I thought I’d do a quick giveaway. I have 3 copies of H&R Block’s TaxCut Premium Federal + E-file software (a $34.95 value) to give to 3 lucky readers. Before I tell you how you can win, let me tell you a bit about H&R Block and TaxCut.
H&R Block and TaxCut Software
As the world’s largest tax services company, H&R Block in 2007 served more than 20 million clients at more than 12,500 U.S. retail offices and through its digital tax solutions, like TaxCut Premium. In addition, they also do investments, banking, and loans.
TaxCut came along in 1993 and is one of the leaders in tax preparation software. There’s the premium version, but they also have a free product for certain filers.
What’s Included in TaxCut Premium
- An in-depth interview to help you receive maximum deductions and tax savings associated with home ownership, education and much more
- Interactive tax and income planning advice
- Money-saving tools for business owners and self-employed Schedule C filers
- Assistance on investment income and stock options
- Guidance for rental property income and expenses
- Automatic double-checking of your return for errors
- Imports data from TaxCut®, TurboTax®, Quicken®, Microsoft® Money and DeductionPro®
Win a Copy of TaxCut Premium Federal + E-file
Winning is easy. All you need to do to be eligible to win is to leave a comment below telling me your best tax tip. I’ll randomly select 3 winners next Tuesday at 5 pm CDT. Good luck.
Posted in Tax and Government | 2 Comments »
Monday, March 23rd, 2009
A 401k Loan?
Times are tough for some. But are they tough enough to resort to borrowing from your 401k? Does a job loss warrant this kind of move? I guess, like all personal finance, it really depends on your particular situation.
Still, generally speaking, the 401k should likely not be looked at as a normal, everyday way of financing a lifestyle that’s above your normal means. This means no borrowing to buy a boat, new TV, or for a home improvement. If you want those things, it would be wiser to just save up the money in a savings account.
Need some convincing? Here’s a few reasons not to borrow from your 401k:
It’s For Your Retirement
The whole reason you set this account up to begin with was to save money for your retirement. If you’re not retired yet, just leave this money alone. Had you set some money aside to borrow from at a later point, I’d say go ahead. But this is your 401k. Just leave the money, and your original intentions alone.
It Won’t Be There For a Real Emergency
If you yank that money from the 401k now using a loan option to finance some frivolous purchase, and then everything hits the fan, you’re left in a tough spot. Leave that money alone and save the loan option as a extreme last resort.
The Borrowed Money is Not Growing
Money that isn’t in the 401k account (the borrowed amount) can no longer see investment growth. It’s gotta be there to be earning for your retirement. This is long-term investing we’re dealing with here. Letting it ride is key. Moving money in and out defeats the purpose.
The Loan is Tied to Your Job
This is one of the more obvious reasons for staying away from the 401k loan. If you leave your job for any reason, most companies will require you to pay that loan back at a much faster rate, or even immediately. You don’t want to be stuck holding this loan if you get canned. Remember, you borrowed because you didn’t have enough money to begin with. So what makes you think you’ll be able to pay it back quickly?
Fees and Contributions Limits
Some company plans require that you stop contributing to your 401k once you borrow from it. Also, some plans tack on fees to the loan payments. These are definitely things you want to avoid.
My Experience
I was tempted to borrow from my 401k a couple of years back when we were saving up for our first home down payment. I was worried we would need a small 401k loan to get us over the 20% mark. The option to borrow was definitely very enticing. But in the end, I decided to leave the money alone. And you know, we ended up being able to save the 20% anyway by working a bit harder at spending less.
So what’s your take…should you borrow from your 401k?
Posted in How To Save Money | 13 Comments »
Sunday, March 22nd, 2009
My brackets have long since busted, but it’s still fun to watch the NCAA tournament. That’s what I’m doing today, along with a little Spring cleaning. Who are you pulling for?
Ever thought about creating a firewall bank account? I like the logic here. I have a certain level of distrust for companies that hold my bank account information (either to withdraw for a payment or to make transfers occasionally). Setting this up in some fashion would definitely ease my fears a bit. Nice work on the videos, Jim.
There are several tax software giveaways going on. Visit these links, sign up, and you’re likely to walk away with free tax software:
Another giveaway: Cash Money Life 2 Year Anniversary Giveaway! Congrats, Patrick!
In very cool news: Lynnae from BeingFrugal.net was in Redbook magazine: How to Kick Your Credit Habit
More Articles:
And in economic/politics: Government v. AIG: Hypocrisy Speaks. In my opinion, this is what we should expect when we allow the US Govt to do too much with our tax dollars.
Speaking of tax dollars, the FTC just rolled out some cool commercials to combat those catchy credit report commercials. Check it out: Annualcreditreport.com Is The ONLY Official Site To Get Your Free Credit Report. I’m all for the FTC and AnnualCreditReport.com, but I don’t think I like them spending my tax dollars to make commercials to compete against private business. Reminds me of those pesky US Postal Service commercials. Do government organizations need to spend money advertising?
Okay. Enough ranting. Enjoy your weekend.
Posted in Personal Finance Links | 5 Comments »
