PT Money » Money Stories

The Cost of Owning a Car in the City

Guest — Tue, 31 Aug 2010 14:58:18 +0000

The other day on Dave Ramsey’s Facebook wall the topic of conversation was how to save on cars. 10 years ago it would have sounded funny to me if someone said they didn’t have a car, but now it sounds smart. Boston is definitely the kind of city where it makes sense to not own a car, for a number of reasons.

Reasons for Not Owning a Car in the City

With a robust public transit system, cabs for late night jaunts, and no part of town that can’t rather easily be reached via foot, you don’t miss a car. If I need to get outside of the city I can take the train or rent a car, and my fiancé and I use Zipcar on the weekends to make runs to Target or Home Depot.

According to a story from Bankrate.com, Massachusetts is in the top six states for highest auto insurance in the country. I moved here from New Jersey, which made the top three, and I’m not willing to take that kind of cost on again.

Did you hear the story of the parking space last year that sold for $300,000? Yep. A PARKING spot. And some folks think that price is well worth it. Each neighborhood has a limited amount of free street parking, and even if you’ve paid for your neighborhood resident parking sticker, it can be tough to find a spot. And no, if you have a resident sticker in one neighborhood, you can’t park in another neighborhood’s resident spots. And that’s just to park at home! There are plenty of parking garages in the city once you get to where you’re going, and they’re happy to charge you crazy rates!

Since the only transportation cost I have is my $90 monthly T pass, plus sporadic car rental and Zipcar costs, it makes sense not to own a car in the city, right? Except…

Reasons to Own a Car in the City

Should you own a car in the city?

If I spend 70% of my day at my desk, I spend another 20% of it waiting for buses and trains. Many points in the system only connect in one or two places in the city, so in some instances it’s actually faster to walk across town than to ride.

For most of the year I also have to plan evening travel around the Red Sox schedule, since the bus I take home picks up at the major train and bus hub used to get to Fenway Park. After working late, the last thing you want to do is stand elbow to elbow on a bus of tipsy sports fans.

We’re at the whim of Zipcar and rental car availability. If there are none available, or if we’re trying to limit our spending, we have to run errands on the bus, which can mean sometimes buying smaller, more expensive items. Have you ever tried carrying a 25 lb bag of kitty litter on a crowded city bus because it was on sale? I don’t advise it. There are easier ways to afford your pet.

Overall the biggest problem with not owning a car in the city is that it removes a certain sense of freedom. I’ve learned to adapt my life around schedules and car availabilities, but there’s a definite worry of what would happen if I had a family emergency and needed to be somewhere far quickly. Being able to get where you need to be when you need to be there – what’s that peace of mind worth?

Jennifer Scott is the Digital Communications Manager at PerkStreet Financial. When she’s not at PerkStreet HQ, she’s usually waiting for a bus.

photo by shioshvili

The Cost of Owning a Car in the City is a post from: PT Money: Personal Finance by PT.

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Is Lasik Surgery Worth It? My Story

PT — Fri, 27 Aug 2010 08:28:37 +0000

I had Lasik surgery a few years ago. Just before I started this blog actually. I can’t believe I’ve never shared my experience with you guys. It’s a good example of spending a big chunk of money on a want (and need). I say want and need because for some people Lasik can be more of a need due to their line of work, or their severe vision problem. Plus, there is not one speck of my being that wants the money back, or wants to fool with glasses or contacts again. I often have regrets about my “wants” in life. Not the case with Lasik.

The Lasik Research Process

Is Lasik Surgery Worth It?

I was near-sighted and wore glasses and contacts for 15 years. It took me two or three years to get convinced to have Lasik surgery. Every time I would find motivation to start researching the procedure, I would eventually stumble upon the costs and the risks. They would both scare the hell out of me. I’d say, “I’m going to spend thousands of dollars just to have my eyes end up looking like Kathy Griffin’s? No thanks.”

My Lasik Surgery

Eventually I got around to having the surgery. After interviewing with four different doctors, I settled in on Wavefront-guided Lasik with a doctor at the LasikPlus center nearby. I definitely recommend shopping around to find a doctor you’re comfortable with. The doctor at my location spent several years performing vision correction with the U.S. Military. I felt comfortable going with the guy who was trusted with working on pilots and soldiers.

I was not impressed with LasikPlus overall though. Each time I went in there was a different physician’s assistant to deal with. And when it was time to talk pricing, the assistant turned an about face right into a heavy sales pitch. Most Lasik doctors have a similar pitch, but the LasikPlus pitch seemed a little more pushy and chain-like. It was unnecessary.

Despite those issues, I went forward with LasikPlus and had the surgery. Everything went fine with the procedure. I was in and out in 20 minutes. While you don’t feel the pain of the operation, you still feel the cutting…mainly because the blade’s other parts run across your eye. Not to scare you, but just to make you aware…they say you won’t feel anything but pressure, but I felt the actual blade cutting. Weird feeling and difficult to fight through. Of course, there’s no way you’re going to move when it’s happening. So just be ready for it and brace yourself.

Lasik Complications

I had a couple of small complications after I got home though. First, my eyes started becoming irritated (the local anesthesia wore off quickly), and I felt like I had big grains of sand in my eyes that I couldn’t wash out. Actually, I remember it being intensely irritating. I finally got to sleep that night, but I remember praying hard with my wife that things would be okay.

I woke up the next morning to no irritation and near perfect vision. I looked over at the clock across the room and could see the time clearly, something I’d never been able to do. It was a surreal moment for me. Besides a scary, but harmless subconjunctival hemorrhage in one of my eyes, there were no other difficulties with the surgery itself.

Lasik isn’t without it’s lasting side effects though. I wake up each morning with dry eyes. So dry that I can’t really open them without discomfort until I put in lubricating eye drops. But once I do this, I don’t need drops the rest of the day. My eyes just need a little kick start in the morning. Studies show that this is the most common complaint with Lasik. While the cost of glasses and contacts may go away, you might want to budget for eye drops. I go with the Refresh Tears drops from Allergan which runs me about $7 every 3 months.

The Lasik Value Proposition

So how do you decide if Lasik is worth the cost and risk for you? The Lasik value proposition is simple:

Costs & Risks: spend anywhere from $1,500 to $5,000 on a surgery; 5% chance of being unhappy with the results*; 1% chance of severe complications*.
Benefits: the convenience and reduced cost of not dealing with glasses or contacts until you need reading glasses.

*thank you, wikipedia

When you personally get to a place where the benefits outweigh the costs and risk, you’ll decide to have the surgery. If you never get to that point, you shouldn’t have Lasik. Don’t have Lasik because I or someone else says it’s worth it. Do it because you are comfortable doing it.

Paying for Lasik

At the time of my surgery I didn’t have health insurance or an employer that would pay for Lasik. So I had to fork over around $2,500. Actually, I ended up taking LasikPlus up on a 0% interest rate for 18 months deal they were running. Probably not the best move for most people, but it worked out for me at the time. One thing I should have done that I didn’t was fund a flexible spending account (FSA) at work, and use those tax free funds to pay for the surgery. If you can’t get an employer or insurance to pay for it, then at least take advantage of your FSA. It takes some planning ahead, but it really helps with the costs.

If you’ve had Lasik, was it worth it for you?

photo by jonycunha

Is Lasik Surgery Worth It? My Story is a post from: PT Money: Personal Finance by PT.

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Maintaining a Car Past 100,000 Miles

PT — Tue, 10 Aug 2010 16:42:50 +0000

I was having a tough day yesterday, but one thing made me smile: my car hit the 100,000 mile mark. I actually missed seeing the odometer turn over by 4 miles, so no cool video or picture to show you. None the less, we’ve owned the car since early 2005. It’s a 2003 Honda we purchased used with about 40,000 miles on it. And it’s nice to see it last this long.

I know this is chump change for some of you. But this is the first car that I’ve owned free and clear for some time and also seen go past the 100K mark. What’s even more exciting is that I don’t really feel like the car is old or that it will need much in repair anytime soon. In fact, I just spoke with my brother-in-law (mechanic) and he said he sees this model in his shop all the time with 200k (even 300K) miles on it.

Here’s something really impressive. A man in Wisconsin was able to get his 1989 Saab to over 1 million miles:

“Gilbert bought the Saab for $29,000. It was his treat after a divorce, and he took meticulous care of it. He used premium, synthetic oil in oil changes, changed the tires every 45,000 miles and strictly followed the maintenance schedule.”

Just think about how much money this has saved Gilbert. No car payment for at least 15 years. I’ve kept decent care of our Honda, with timely oil changes and maintenance. One thing I could do a better job of is rotating the tires and keeping them properly inflated. Here’s ten tips from MSN to make your car last longer:

Regularly Change the Air Filter
Maintain Proper Coolant Levels
Keep Tires Inflated Properly
Pay Attention to Dashboard Warning Lights
Find a Reliable, Regular Mechanic (easier said than done, right?)
Look for Warning Signs
Set a Maintenance Schedule
Be a Good Driver
Keep it Clean Inside and Out
Keep it Covered Up

I’ll add one: make sure you maintain affordable auto insurance and an adequately funded emergency fund. Having a good policy and cash on hand to handle your deductible will allow you to take care of your car properly when something goes wrong.

How many miles do you have on your vehicle(s)? Did you do anything special when you hit 100K?

photo by Danilo Prates

Maintaining a Car Past 100,000 Miles is a post from: PT Money: Personal Finance by PT.

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How to Complain and Get Your Money’s Worth

PT — Wed, 14 Jul 2010 17:48:25 +0000

Getting bad service and feeling like you didn’t get your money’s worth stinks. On top of that, you have to go complain about the situation to someone who’s heard a thousand complaints before and go through this whole process to make things right again. That barrier is enough to keep most people from ever complaining about anything. Especially those who just don’t like conflict at all.

Quit Your Belly Aching!

But when you’re watching every dollar you spend closely (because you’re saving or trying to become debt free), you want to make sure you get what you pay for. I think something that’s lost on our current culture is the expectation that you get what you are paying for. We consumers spend so much these days that we don’t stop to focus on value. Maybe that’s just the old man in me talking though.

How I Complained and Got Half Off a Hotel Stay

I recently took a last minute trip to New Orleans with some friends. It was the weekend of JazzFest and the hotels were mostly booked. We ended finding a room at a large hotel chain. The room’s A/C didn’t work effectively and we were told on one occasion that we couldn’t get more towels delivered to our room because the hotel cleaning staff had left for the day. Both of these things, combined with the fact that we basically paid a premium for the room on a busy weekend, left me ready to complain.

I decided against discussing the issues with the hotel staff as it appeared there was no manager in sight. Being the Internet nerd that I am, I immediately hit up Twitter to find the hotel chain’s Twitter account. I tweeted about my bad experience and was careful to included the “@hotelname”. I also went to their website and used their feedback form to report my displeasure with the experience. Long story short, within a couple of days the manager of the hotel called me and asked what he could do to make it right. We agreed that half off was about right. He thanked me for my feedback and said to call him next time I was in New Orleans.

Tips for Effective Complaints: How to Complain and Win

Assuming you’ve got a legitimate complaint and you’re not just being nit picky, here are some tips for getting your money’s worth:

Give immediate feedback. As soon as you experience the issue at hand, stop to complain. One of the mistakes I made in hotel stay is that I didn’t complain soon enough. We knew the A/C wasn’t up to par within the first couple of hours. We could have informed the hotel soon and they could have possibly moved us to a better room.

Have the end in mind. Before you complain, be able to articulate what the problem is and what you want done to correct the situation. If there is a contract or policy involved with the transaction, be sure to be knowledgeable about that before proceeding.

Don’t be rude. There’s no reason to be rude or yell when complaining. It only makes you look bad and delays the process. If you need to wait a couple of days to make your complaint that’s fine. Take action when you know you won’t blow up. I really struggle with this one.

Talk with someone who can help you. Don’t waste your time making complaints with people who can’t do anything about it. Go directly to management.

Use social media. Most companies have a social media presence these days. These channels can quickly put you in touch with the people who can help you resolve your issue. The companies that handle issues effectively like this in the online social space are the one’s who will rise to the top.

Read these other tips for complaining from Liz Weston.

What are your best tips for effective complaints when you don’t get what you pay for?

photo by db*Photography

How to Complain and Get Your Money’s Worth is a post from: PT Money: Personal Finance by PT.

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Help This Reader: Short Sell, Rent Out, or Refinance?

PT — Thu, 10 Jun 2010 10:00:46 +0000

I received an email recently from a reader with questions about her housing situation. She offered to lend her story to the blog in exchange for a few answers from other readers. If you have some insight on what she should do, I encourage you to leave your response in the comments below…

We bought our condo in August of 2007, when we thought the market had gone down basically as low as it was going to to. Our original limit was about 300k but after looking at a million condos 300k wasn’t going to get us what we wanted. We ended up finding our place, one of the best we had seen, and it was $360k. So, we jumped in – feet first (probably would have been better to jump in head first, might not be stuck now. )

So, now, almost 3 years later our tax assessor has decided our property is now only worth $195k. That’s insane! There are some other condos selling in our complex for $200-$225k but still, really low compared to what we paid for ours.

We have 2 loans – a fixed at 6.5% that’s around 300k, and then the 2nd is at 10%!! and that’s a 15/1 arm.

We’ve made some improvements – painting, crown molding, recessed lighting, ceiling fans, etc, but nothing that’s going to make up the difference. It’s a 3 bedroom 2.5 bath, 1300 sq foot, 2 story condo in a complex with 3 pools, tennis courts, and a million trees (in case that’s important). On top of our mortgage we pay $240/month in association fees.

The condo is fine, for a family of 3. But we’re about to be a family of 4. Not that babies take up that much room, but baby stuff does. So, on top of the fact that we are now paying way more a month than our place is actually worth, we are cramped (or we will be in the coming months). It’s hard to swallow making the monthly payments when you know you’re basically throwing money away.

I’ve contacted our mortgage rep and he gave me three options. (Keep in mind we both have really good credit at this point so we don’t really want to take our chances of screwing that up.)

1. Refinance now that rates are lower. On the face of it, we could save ourselves $200/month if we refinanced our current mortgage. But, we would have to pay the closing costs, or roll them into the loan. If we roll them into the loan we take the savings down a little bit.

We also now, according to CA law, carry condo insurance – basically protecting the “stuff” inside since the association pays for the insurance for the building. So, that brings us down a little lower.

And finally, now because we don’t have enough equity we have to impound our taxes, which we currently don’t do because I don’t like the idea of the bank holding on to my money instead of me. So, I think refinancing to a lower mortgage rate would maybe save us $150/month, maybe.

2. Short sell and rent for the next few years. This could take any number of months, and we wouldn’t be able to buy from Wells Fargo again for 10 years or buy period for another 2-3 years. But we could rent a house, a bigger house, and not have to worry about all the home maintenance.

3. Rent our place out and rent a house for ourselves. This would give the market some time to rebound before we sell, and apparently we could buy again after having rented for a couple years, without selling this condo. So, we’d have 2 mortgages if at any point we didn’t have renters.

I’m not sure which option is best. I think I’d like to short sell but I don’t know the necessary tax or legal implications – maybe that is worse than just staying put. Problem is, I think we’d have to stay in this condo for another 3-5 years and I really just don’t see that as a comfortable situation. So, what do you think? Option 1, 2, or 3… or another option you can think of???

So what is your opinion? What should this reader do?

Help This Reader: Short Sell, Rent Out, or Refinance? is a post from: PT Money: Personal Finance by PT.

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Are Your Finances a Barrier to The Dream?

Guest — Sat, 29 May 2010 15:30:38 +0000

Sometimes, in a quiet moment, you let it run wild. I’m talking about “The Dream.” The Dream of a different, more fulfilling life that normally stays buried deep within your subconscious mind. Maybe it’s just a vague notion or perhaps you have a good deal of detail attached to your dream—where you’d live, what you’d do, how you would feel. Regardless of clarity, far too often people either dismiss these ideas as unrealistic, or simply decide to postpone their pursuit of The Dream until a time when it will make more sense. Wait a minute—these ideas aren’t simply a pipe dream; they’re very real and they’re incredibly important.

The Dream comes from a set of traveling directions, sometimes referred to as a calling, that live in your subconscious mind. When you learn to pay attention to these traveling directions, and when you surrender to your calling, you will lead a life of meaning, purpose, and passion! The Dream is trying to convince your conscious mind to get off your backside and get going. The Dream is telling you to get started living the life you know, at a subconscious level, you want to live.

Unfortunately, many times competing ideas intervene to stop The Dream. When this happens, our conscious mind vigorously shoves The Dream back into the recesses of our subconscious. “I can’t do that, I’ve got a mortgage, bills to pay, kids to put through school.” And poof! The Dream, along with the excitement it created, is gone, and you’re off to the same old life you’ve been living.

You’ve been thinking about The Dream off and on for a while now. So, here’s a very important question for you to ponder: If not now, when will you begin to do the things you know you want to do with your life? I want to encourage you to start today. Begin now, this very moment, to take the steps necessary to get yourself in a position so that you can remove the barriers standing in the way of your pursuit of The Dream. Do what you need to do so that you can say “yes” to your calling.

One of the things you may need to do is manage your finances in a manner that will give you the ability to pursue The Dream. Of course, life is a journey, and if you commit yourself to pursuing The Dream, and you begin to move in that direction today, you’re taking the first steps on a life journey that will bring you many wonderful rewards. Managing your money for your money’s sake is a useless endeavor. However, good personal financial management makes a great deal of sense if it brings you closer to living the life of passion and fulfillment that you were meant to live.

Go ahead, let The Dream inform your life direction. Let it run wild. Pursue it wholeheartedly. Head out vigorously in pursuit of an exciting life of passion by getting your financial house in order so that you can remove this barrier if it’s standing between you and a truly joyful life journey. Carpe Diem!

This has been a guest post from Dr. Paul Dyer. Author, teacher, coach, and consultant, Dr. Dyer has worked with thousands of people as they’ve sought to clarify their values, change their behavior and reach their goals. Visit his site and utilize one of his free personal development tools.

Are Your Finances a Barrier to The Dream? is a post from: PT Money: Personal Finance by PT.

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10 Fun Summer Jobs for Teens and College Students

PT — Tue, 18 May 2010 16:18:02 +0000

Do you have a job for summer yet? It being graduation season, I thought I’d share some common summer job opportunities for teenagers and college students to make extra money. Some of these I’ve done myself. Others are just some of the more common jobs you hear about. Be sure to share your past job experiences in the comments below.

Why Work This Summer?

There are a ton of reasons to get off your butt and get a job this summer.

Work because it’s something different. Work because sitting around your house is boring (TV during the day sucks!). Work so that you don’t have to bum money off of your parents for daily spending. Work so that you don’t get lazy and gain weight. Work to be with your friends. Work to save money for college expenses. Work to get real experience. Work to test out your working style.

I loved most of my summer jobs. Each brought me a different experience and helped to teach me about myself. Here are 5 jobs I had during the summers and what I liked about them.

5 Summer Jobs I’ve Had

Lawn Care – I earned the most money during my high school years mowing lawns. This was a great summer job. It’s hard, and requires an initial investment (which my Dad was kind enough to front me). To get started, you only really need a mower and some gas.

But eventually you’ll find that you can expand your business with a weed eater, edger, blower, and a truck and trailer full of lawn tools. Convince a few neighbors that you’ll mow their grass for less than they currently pay. Then word will start to get out and you’ll have several clients. Raise your prices once demand for your services increases.

I’ll admit that at times this job was tough in the summer heat. But it taught me a great deal of responsibility, taught me about 2 cycle engines, kept me in shape, and it gave me a great tan too. One more thing this job did was teach me to work efficiently. As a flat rate service, you can raise or lower your hourly wage with how efficient you work. I learned to work fast and earn more money for less time spent on the job.

Grocery Bagger/Stocker - I welcomed this job after my days of mowing laws. Not much hustle or stress involved. It kept me inside most of the time in the cool, conditioned air. It also forced me to be around other people and socialize. This was a stretch for me at the time. But something I needed as a shy teen. There are many jobs you can find at the market or grocery store: bagger, stock person, checker, cart person, etc.

Camp Counselor - I worked as a summer camp counselor during my summers in college. I loved the experience. I worked with the older kids. No tantrums or bed wetting. Just bad attitudes. Typical summer camp jobs don’t pay excellent, but you have your room and food covered. This job is tough because you’re outside most of the time. However, it’s also rewarding because of the experiences you have the positive impact you get to have on others. For the kids attending the camp, it’s their best week of the summer. It was great to be a part of that.

Umpire or Referee – Working as a referee or ump requires a solid knowledge of the sport, confidence, and a thick skin for dealing with high pressure situations. I spent some time as a baseball umpire, but primarily as a field ump, where the pressure isn’t as high. This is a great job for making money for just a couple of hours of work. Just know that there is going to be that one day when you are going to really upset someone and have to deal with the pressure. If you love the sport and can handle the pressure, this job may be a great way to get easy money fast.

Lifeguard – Finally, I did one summer as a lifeguard. This was one of my favorite jobs. I actually had to jump in after someone. Thankfully everything worked out okay. In this job you’ll get to work along side other responsible professionals and soak up the hot summer sun. Pay is okay. Double your money if you can do some swimming lessons on the side.

5 More to Consider

Movie Theater Attendant – Cool environment, free movies, the permanent smell of popcorn on your clothes.
Fast Food Employee – Free food, fast-paced, the greasiest shoes you’ll ever own.
Retail Associate – Opportunity for commission, get to dress up, get told “no thanks, I’m just looking” over 500 times a day.
Baby Sitter – Get to love on kids, enjoy someone’s house, diapers.
Car Detailing – Good money, work in flip flops, wax on wax off.

What to Do with Your Earnings?

It’s your money. Do with it as you please. But if you’re looking for ideas, here are a few. You could stick it in an online savings account until you find a good use for it. You could use it to buy books in college. You could use it as a down payment on a house. You could reinvest it in your own business. You could invest it in index funds inside a Roth IRA.

Be sure to share your past job experiences in the comments below.

Photo by Rappensuncle

10 Fun Summer Jobs for Teens and College Students is a post from: PT Money: Personal Finance by PT.

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Financial Benefits of Working from Home

PT — Wed, 28 Apr 2010 19:41:38 +0000

I’ve been working from home for several weeks now since I quit my day job. I feel like I can give some honest feedback about how you can save by working from home more. Here are a few ways I’ve been saving, or at least had the opportunity to save.

Lower Car Insurance - One of the first things I did once I no longer had a commute was to call my car insurance company and tell them my commute had changed. With fewer estimated annual miles on your car, they’ll likely lower your premium. This didn’t save a great deal for me. My commute wasn’t bad before. But it’s a small savings I’ll gladly take towards more affordable auto insurance.

Less Fuel Expense and Less Wear and Tear – My fuel expense has dropped dramatically over the past month. And I know that at the end of the year I’ll simply have fewer miles of annual use on my car. Since my car is paid off it feel like I could keep it forever now with minimal upkeep.

Opportunity to Move to One Car – Because I’m working from home and Mrs. PT is at home as well, we could actually consider becoming a one car family at some point. It would require some sacrifice and planning, but it could be done. Even in “spread-out” Texas.

Less Lunch Dining Out Expense – This is where I’ve noticed the biggest difference. I don’t dine out for lunch anymore. Not necessarily because I don’t want to. I’m just lazy. Going to the kitchen is easier than heading out to eat. At my old job, I didn’t have my kitchen down the hall. I would have to prepare in advance and bring a meal from home. I was too lazy for that too. So I ended up dining out for lunch a lot. Now, it’s just not that big of a weekly expense. I maybe do one lunch a week outside the house. I usually couple that with a days I find some free office space.

Fewer Clothing Related Expenses – Since there’s no formal dress code at home, I haven’t had to purchase any new clothes or spend money on dry cleaning. That’s nice. I always dreaded spending money on clothes.

Tax Deductions – Finally, come tax time next year, I’ll be able to deduct my home office expenses because it’s where I work. There are plenty of other tax deductions for freelancers I’ll be able to take advantage of as well.

Of course, these are just the financial benefits. There are some new expenses I have to take on: individual health insurance being the major one. But there are also some non-financial benefits to working at home as well. Although, those can’t be measured in dollars really.

Photo by geishaboy500

Financial Benefits of Working from Home is a post from: PT Money: Personal Finance by PT.

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Why You Should Save: A Frugal Perspective from a Former Spendthrift

Guest — Mon, 19 Apr 2010 14:30:31 +0000

Some people were just born frugal, like my father and my grandfather. I am not one of those people. I am convinced that out of some sort of random genetic mutation, I was cursed at birth with an insatiable desire to spend indiscriminately. Along with this disease, I also inherited from some distant ancestor a deathly fear of checking my bank account. I suppose the two simply go hand-in-hand, but when I was a young and foolish, I had a serious problem.

For those of us who are not naturally savers, or were not diligently trained by our parents in the art of living frugally, we’ve got it tougher than the rest. We are the victims of constant overdraft fees. We are the types who always have our gas gauges hovering right about the “E”, and we tend to think payment due dates are more like suggestions and not deadlines.

At one point, my spendthrift lifestyle had become simply too difficult to juggle. There will come a point in every excessive spender’s life when you realize that what you’re doing has got to stop. Some people actually do stop, but others will continue, headlong, into the abyss of lifelong debt and money management problems. Now for someone who doesn’t inherently like to save, I approach the frugal life from a different perspective than most. The following are a couple reasons for why I started saving, and why you should, too. It is my hope that those who are struggling with their finances because of their lifestyle decisions will empathize with where I’m coming from, since I was once you, and probably much worse.

1. Saving is not inimical to freedom. In fact, saving promotes freedom.

Whenever my parents or others would criticize me about my poor spending and finance habits, I’d immediately dismiss them, thinking to myself that they were too “bourgeois”, that they had a trivial addiction to money for its own sake, and just didn’t know what it meant to be human. I thought by not caring about money, I was “freeing myself.” Later, when I gave saving a shot (I started out with small amounts, but eventually made it into a habit) I found that by having a financial safety net, I was able to do more of what I wanted to do. By saving, I had the personal freedom to travel a lot, to relocate and switch jobs whenever I felt the desire to be on the move. The reality of the situation is this—not saving actually hinders you from making decisions. It imprisons you.

2. When you aren’t consistently on top of your finances, you will live your life in fear, without even realizing it.

Once you do take charge of your money, at least of half of the anxiety in your life will disappear. Trust me. I wasn’t even aware of how much time I was spending subconsciously worrying about overdraft fees, unpaid bills, and exorbitant expenditures on unnecessary items. Once I started building good finance habits, many of which I learned from online research, I noticed that almost every other aspect in my personal life was enhanced. I felt happier about significant other and our relationship, happier about my job, and closer to my family.

Although these are two very simple motivations for saving, they are really what inspired me to turn my life around. As much as we natural spendthrifts like to think that our habits are unproblematic, being frugal is the key to balancing your life in ways I had never dreamed of.

This guest post is contributed by Emily Thomas, who writes on the topics of online college degree. She welcomes your questions and comments at her email Id: emily.thomas31@gmail.com.

Why You Should Save: A Frugal Perspective from a Former Spendthrift is a post from: PT Money: Personal Finance by PT.

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Question of the Week: Are You Lucky with Money?

PT — Fri, 12 Mar 2010 15:13:50 +0000

We’ve got one of my favorite holidays, St. Patrick’s Day, coming up next week. I thought I would focus on luck today. Have you been lucky in your financial life? Was it your smarts or your luck (or something else) that got you where you are today?

Looking back over my life, I can’t really pinpoint a single lucky incident or event that has catapulted me into financial success. I didn’t win the lottery or stumble upon a fantastic business idea. However, I do feel like I’ve lived a blessed life.

Richard Wiseman did a small study on luck back in 2003 where he concluded this:

“although unlucky people have almost no insight into the real causes of their good and bad luck, their thoughts and behaviour are responsible for much of their fortune.”

Do you attribute your financial success to luck or something else? And if you feel like luck can be created, what are you doing right now to create your own luck?

Question of the Week: Are You Lucky with Money? is a post from: PT Money: Personal Finance by PT.

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