Despite the recent dips in the markets, when I look back on the past year of my blogging life, I realize that I really have made tremendous progress. I have a budget, where I never did before – specific, measurable goals where I previously had wishes, and a bit more confidence where I only had questions. More than that, my attitude has been focused on simply making progress. My budget is more accurate than it was even a few months ago, and I try not to get sidetracked when I have a few dips or when I disappoint myself. It’s all about the journey… I get it, and I’m happy with that.
So with all of those reflections, just past my one-year blogging anniversary, I will note for the records that I’m ending December and 2008 with a Net Worth of $39,460, nudged up nominally since November, but up a lot since I started!
Wednesday, December 31, 2008
Tuesday, December 30, 2008
Mini-Rant on Megaplex Movie Theaters
So much for saving money being back home for the holidays. Out of our enforced boredom, the Guy and I decided to crown our monotony with a visit the local megaplex to see a few holiday flicks.
> Night 1: Marley & Me – really cute, more-than-I’d-hoped-for fun, until the fire alarm went off at 10:45, 30 minutes into our movie
> Night 2: Used our readmission passes to see The Curious Case of Benjamin Button – Profound, moving, get-you-excited-for-Oscar-buzz-already, until the fire alarm again went off at exactly the same time, with only 10 minutes to go in our movie.
More worthless readmission passes later, we still wasted $36 seeing not one full movie over the holiday break. Geez… Makes me glad for my AFI Movie Challenge – in December, I checked five off the list already! $50 to the Dog fund!
> Night 1: Marley & Me – really cute, more-than-I’d-hoped-for fun, until the fire alarm went off at 10:45, 30 minutes into our movie
> Night 2: Used our readmission passes to see The Curious Case of Benjamin Button – Profound, moving, get-you-excited-for-Oscar-buzz-already, until the fire alarm again went off at exactly the same time, with only 10 minutes to go in our movie.
More worthless readmission passes later, we still wasted $36 seeing not one full movie over the holiday break. Geez… Makes me glad for my AFI Movie Challenge – in December, I checked five off the list already! $50 to the Dog fund!
Sunday, December 28, 2008
Ending the Year with a Sigh (and not of Satisfaction)
As the year closes and most bloggers of any sort turn to indulgent predictions, recaps or lofty goals for the following year, I have to admit that I am feeling a bit of impatience at my own lack of progress. It seems I will probably have to change my already-declared 2009 goal because of all these forces out of my control, but I’m leaving it on the books for now… and simply declaring my very-human impatience at the lack of progress or sign of any pay-off at all for all this diligence. Maybe it’s that I haven’t been diligent enough (and don’t have it in me, at this stage in life, to be any more frugal than I already am) – or maybe it’s just that I can’t see that parallel track of “what might have been,” the non-blogging road not taken. Still, I am ending this calendar year, feeling a bit off-kilter.
Saturday, December 27, 2008
'Above my Pay Grade'
I’m rather fond of the expression “must be above my pay grade.” I most often use it to crack a wry joke about something that is complicated to the degree of farce (ridiculous furniture assembly instructions or the insane views on foreign policy espoused by my uncle, for example).
But thinking of getting back to work in a few more days, and in the context of what I am actually paid, a pay grade speaks to a unit in monetary compensation – which my company employs strictly. And though some may disagree, I do appreciate this system (as opposed to alternatives of free negotiation). Some might argue that pay grades could be employed arbitrarily and that negotiation might enable employees to have more meaningful variables considered (like past experience and how much value those specific roles might bring to the current). I, however, would rather embrace these distinct levels, because my sensibilities are highly attuned to fairness (I blame my having a sibling remarkably close in age). In reality, I see that negotiation could really reward the best negotiators and the most obnoxious and whiny.
However, in researching a bit, I have found it interesting that legally, companies are not required to adhere to pay ranges of any sort, and more interesting to me, that if they do employ pay ranges, they are not required to publish them at all. In short, you can never be certain of fairness, I suppose.
What my company does disclose is their theory on employee market value. They maintain that they will always pay me at 85% of my market value. When my friend in HR tried to explain this to me, she said it was based on my skills in that role, and that I would move to the next role too fast to ever reach a level of 100% proficiency which would essentially equate to that 100% of market value level. Makes sense, but it still feels funny when I see that huge number listed as my market value and my salary listed well below.
But in this time, I know I would be grateful to be paid at 50% of my market value, so long as I kept that job.
But thinking of getting back to work in a few more days, and in the context of what I am actually paid, a pay grade speaks to a unit in monetary compensation – which my company employs strictly. And though some may disagree, I do appreciate this system (as opposed to alternatives of free negotiation). Some might argue that pay grades could be employed arbitrarily and that negotiation might enable employees to have more meaningful variables considered (like past experience and how much value those specific roles might bring to the current). I, however, would rather embrace these distinct levels, because my sensibilities are highly attuned to fairness (I blame my having a sibling remarkably close in age). In reality, I see that negotiation could really reward the best negotiators and the most obnoxious and whiny.
However, in researching a bit, I have found it interesting that legally, companies are not required to adhere to pay ranges of any sort, and more interesting to me, that if they do employ pay ranges, they are not required to publish them at all. In short, you can never be certain of fairness, I suppose.
What my company does disclose is their theory on employee market value. They maintain that they will always pay me at 85% of my market value. When my friend in HR tried to explain this to me, she said it was based on my skills in that role, and that I would move to the next role too fast to ever reach a level of 100% proficiency which would essentially equate to that 100% of market value level. Makes sense, but it still feels funny when I see that huge number listed as my market value and my salary listed well below.
But in this time, I know I would be grateful to be paid at 50% of my market value, so long as I kept that job.
Thursday, December 25, 2008
My own Christmas Reverance for a Transitional Year.
The Guy and I are at my parents home in the South - celebrating Hanukkah privately - and my favorite Christmas rituals publicly with my entire family. Sleeping in separate bedrooms and cooking dinners and revisiting childhood haunts in this low-fifties winter (quite refreshing from the sub-zero temperatures we left in the midwest). It's a transitional year for us. I'm waiting to hear back about grad school, and thus, potentially moving us to a new city. We're poised to become a blended family - though not quite there yet, it still feels like family to me.
It feels like a transitional year for the nation as well. So while there will be moments of uncomfortability over the holidays for all of us, I am certain we will look back to remember this year's close profoundly. So I am keeping that quasi-optimistic, reverant outlook for the lull of these next two weeks... before grinding into the next year again.
It feels like a transitional year for the nation as well. So while there will be moments of uncomfortability over the holidays for all of us, I am certain we will look back to remember this year's close profoundly. So I am keeping that quasi-optimistic, reverant outlook for the lull of these next two weeks... before grinding into the next year again.
Wednesday, December 24, 2008
Indulge Me On This
I’ve been disappointed in the quality of the articles in the Sunday Styles in the past year. Often the writing itself is still stand-out, but the articles and actual topics chosen have seemed almost purposefully out-of-touch, like some editor’s pet interests are being indulged, week after week after “really? A brand of napkins sold only in the Hamptons?” week. The topic of this past Sunday’s headline - Indulge Me On This - struck me as no different. But some of the writing itself didn’t disappoint, and as Dave Eggers has famously said, got right to the business of “speaking eloquently about what it’s like to be alive right now.” The indulgences – the beach, the Nutcracker, the right Scotch, a culinary treat, nice cardstock for greetings, the right pacifier of diet coke – were appropriate for the paper’s readership.
For my own readership and indulgence, I would say my own indulgences this Christmas Eve are really good wine, splurges on family and friends, an excess of ‘wasting time’ pleasure reading.
For my own readership and indulgence, I would say my own indulgences this Christmas Eve are really good wine, splurges on family and friends, an excess of ‘wasting time’ pleasure reading.
Tuesday, December 23, 2008
What I'm Learning from Dog Adoptions this December
I’ve recently started volunteering at my area Animal Humane Society, facilitating adoptions of abandoned dogs, which has been significantly more fulfilling than I expected. I am no animal activist, by any means. In my entrance interview even, I stumbled over the questions regarding what part of animal rights I was most concerned about. Umm, general animal cruelty? I wasn’t even sure of what the options were for such a question. I was motivated by a fond feeling of nostalgia for the string of miniature dauschands our family had growing up, as well as, yet another hare-brained business idea of the Guy and I’s (a doggie day care which would be based on the premises of big companies, much like the actual day care service that many large companies already provide). So far I’ve been truly impressed by the charming, devoted people I’ve interacted with as well as the professionalism and well-oiled engine of the AHS.
Two observations on volunteering around this time of year:
ONE. I’ve found the benefits of volunteering at such an organization with such a clear, simple, single-minded mission blissfully uncomplicated. Sure – Darfur, Iraqi refugee, and women’s or immigrant rights funds may be more politically important and impactful in our society. But no one really disagrees that Fido shouldn’t be abused, and witnessing the love and real connection and meaning that an animal can bring to a somewhat haphazard or lonely set of owners, is really quite majestic – in a small, authentic way. As a poet friend of mine always says, ‘What a good and fine thing it is to do a good and fine thing.’
TWO. This experience is helping correct my unasked personal stance that in the whole ‘Time vs. Money’ debate on charitable giving, your money is far more impactful. After experiencing this organization’s operations, in this case, it really does seem that giving of my time and energies provides them maximum benefit, and leaves me devoid of angst over the absolutism of the financial experience of charitable giving (one unaltered number, un-wishy-washy: can I afford this?, is it too much?, Is it nearly enough?)
Two observations on volunteering around this time of year:
ONE. I’ve found the benefits of volunteering at such an organization with such a clear, simple, single-minded mission blissfully uncomplicated. Sure – Darfur, Iraqi refugee, and women’s or immigrant rights funds may be more politically important and impactful in our society. But no one really disagrees that Fido shouldn’t be abused, and witnessing the love and real connection and meaning that an animal can bring to a somewhat haphazard or lonely set of owners, is really quite majestic – in a small, authentic way. As a poet friend of mine always says, ‘What a good and fine thing it is to do a good and fine thing.’
TWO. This experience is helping correct my unasked personal stance that in the whole ‘Time vs. Money’ debate on charitable giving, your money is far more impactful. After experiencing this organization’s operations, in this case, it really does seem that giving of my time and energies provides them maximum benefit, and leaves me devoid of angst over the absolutism of the financial experience of charitable giving (one unaltered number, un-wishy-washy: can I afford this?, is it too much?, Is it nearly enough?)
Monday, December 22, 2008
The 10-10-10 Principle
In cruising around the blogosphere, I stumbled upon Dave Ramsay’s 10-10-10 principle. And being just the type of person to cherish any kind of arbitrary, if firm principle, I immediately rushed to check myself against his. And found myself… yes, lacking.
The Principle is based on the notion of saving 30% of your income… 10% to retirement, 10% to an emergency fund, and 10% to saving for future fun purchases. I only made the cut on retirement.
Me:
__ 6% Pretax +8% Post-Tax for Retirement
__4% Post-Tax on Emergencys
__4% Post-Tax on Fun future purchases
I also save about 6% on a cash-value life insurance policy which I’m using as a mid-term investment (kid’s college one day, far far away I imagine), which doesn’t fold into the 10-10-10 principle as described. So all in all, if I included this as well, I think I would just need to increase my savings to another 6% to meet the full criterion. But starting small, as I usually do, it will be my goal to move my Emergency Fund Savings up first. If I can move my automatic withdrawls up another $60, I will move it up 2% there!
The Principle is based on the notion of saving 30% of your income… 10% to retirement, 10% to an emergency fund, and 10% to saving for future fun purchases. I only made the cut on retirement.
Me:
__ 6% Pretax +8% Post-Tax for Retirement
__4% Post-Tax on Emergencys
__4% Post-Tax on Fun future purchases
I also save about 6% on a cash-value life insurance policy which I’m using as a mid-term investment (kid’s college one day, far far away I imagine), which doesn’t fold into the 10-10-10 principle as described. So all in all, if I included this as well, I think I would just need to increase my savings to another 6% to meet the full criterion. But starting small, as I usually do, it will be my goal to move my Emergency Fund Savings up first. If I can move my automatic withdrawls up another $60, I will move it up 2% there!
Sunday, December 21, 2008
What Writing Means in My Life
A certain grad school that I applied to asks a notoriously difficult and probing question about what you deem “matters” – what you hold most dearly in your life. I (quite obviously) wrestled with this question for a long time, and I decided in the end that my writing does mean most to me. I don’t explicitly acknowledge my writing enough on this blog, and how much it means to me, and I haven't yet heard about my admission to this school... am getting quite anxious, and so I thought it would be purgative to post an excerpt from my response to that question here:
I love figuring people out. My moment of self-actualization came after reading a book about a middle-aged dentist. A novella with pastel, eighties-style graphics on its cover. The story details how said dentist met his wife and the subtle difficulties of their marriage, sharing a dental practice. That is all that happens. But as I read, I wept, because I recognized myself. I immediately fell for him. And for the author’s power to communicate the fullness of this man’s “mundane” experiences – being a father, touching strangers’ mouths. Through my own writing, I’ve found meaning in illustrating these kinds of details – being able to dimensionalize my own and others’ experiences and translate them into something universal. Through writing, I’ve developed a habit of meticulous empathy for the seemingly ordinary things that make people who they are.
Last year, I finished a novel I love. For now, it lives in one-hundred-page stacks on my coffee table, but with luck, will live on a used bookshelf with an outdated Millennium-style cover someday. Not what I have written, but the practice of writing – the solitary hours of empathy, spent imagining myself as someone else – is what matters most to me.
Fiction matters because it moves people to see themselves, and to see what they share with others. It helps explain the world and diminishes our confusion when the world doesn’t operate the way we would like. Ultimately, I find writing important because it helps me understand why people are who they are and why they do what they do.
Happy Hanukkah all... May you treasure what "matters" as well! With affection, Suzy.
I love figuring people out. My moment of self-actualization came after reading a book about a middle-aged dentist. A novella with pastel, eighties-style graphics on its cover. The story details how said dentist met his wife and the subtle difficulties of their marriage, sharing a dental practice. That is all that happens. But as I read, I wept, because I recognized myself. I immediately fell for him. And for the author’s power to communicate the fullness of this man’s “mundane” experiences – being a father, touching strangers’ mouths. Through my own writing, I’ve found meaning in illustrating these kinds of details – being able to dimensionalize my own and others’ experiences and translate them into something universal. Through writing, I’ve developed a habit of meticulous empathy for the seemingly ordinary things that make people who they are.
Last year, I finished a novel I love. For now, it lives in one-hundred-page stacks on my coffee table, but with luck, will live on a used bookshelf with an outdated Millennium-style cover someday. Not what I have written, but the practice of writing – the solitary hours of empathy, spent imagining myself as someone else – is what matters most to me.
Fiction matters because it moves people to see themselves, and to see what they share with others. It helps explain the world and diminishes our confusion when the world doesn’t operate the way we would like. Ultimately, I find writing important because it helps me understand why people are who they are and why they do what they do.
Happy Hanukkah all... May you treasure what "matters" as well! With affection, Suzy.
Saturday, December 20, 2008
Last Minute Gift Ideas?
Only a few more days before the holiday gift-giving season officially closes, so thought I would give an update on how I did - and maybe provide a few last minute ideas!
I did okay on my budget... due to my grand plan to stagger giving and use credit card rewards for some of it... plus Macy's was giving away merchandise in a depressing display of retailing desparation. But I'm still looking for one last Hanukkah gift which I clearly need to remedy before the final nights. Any ideas???
For the Whole Fam: some great olive oil, and new holiday ornaments
For the parents collectively: Theater tickets at their favorite spot
Mom: cake stand and topper, a gift package of an assortment of spices
Dad: tie, shirt & cashmere sweater (boring i know, but that's what he wants...)
Brother: a portable solar charger and Itunes Gift Card
Friends: Argentina souvenirs!
And finally, the Guy: Handmade Book of Poems, a pineapple slicer (he asked for it!), a 30 min massage “certificate” (from me), a bottle of really really nice scotch, a cute tie I found on sale at PINK, the Paris J’Taime DVD (Movie we saw on our first date), a few Brooks Brothers clothes/sweaters
Seems like a lot, but it's only 7 gifts... and I don't make the rules, there are 8 nights! He comes home tomorrow and I'm desparate to get something good - something thoughtful, and personal, but not too terribly expensive... so if happen to be a guy reading this, about to enter your fourth decade, and have found at least one of those gifts above remotely apealing, please respond and tell me what you would love!
I did okay on my budget... due to my grand plan to stagger giving and use credit card rewards for some of it... plus Macy's was giving away merchandise in a depressing display of retailing desparation. But I'm still looking for one last Hanukkah gift which I clearly need to remedy before the final nights. Any ideas???
For the Whole Fam: some great olive oil, and new holiday ornaments
For the parents collectively: Theater tickets at their favorite spot
Mom: cake stand and topper, a gift package of an assortment of spices
Dad: tie, shirt & cashmere sweater (boring i know, but that's what he wants...)
Brother: a portable solar charger and Itunes Gift Card
Friends: Argentina souvenirs!
And finally, the Guy: Handmade Book of Poems, a pineapple slicer (he asked for it!), a 30 min massage “certificate” (from me), a bottle of really really nice scotch, a cute tie I found on sale at PINK, the Paris J’Taime DVD (Movie we saw on our first date), a few Brooks Brothers clothes/sweaters
Seems like a lot, but it's only 7 gifts... and I don't make the rules, there are 8 nights! He comes home tomorrow and I'm desparate to get something good - something thoughtful, and personal, but not too terribly expensive... so if happen to be a guy reading this, about to enter your fourth decade, and have found at least one of those gifts above remotely apealing, please respond and tell me what you would love!
Friday, December 12, 2008
I Should Receive a Frugal Gold Star
I eliminated a bit more of my discretionary spending this month – and it was something that I just recently professed to being unable to do. But I finally overcame my reluctance and decided to cancel my home delivery of the New York Sunday Times. That’s right, I’m now one more straw on the back of the newspaper industry’s decline. One, my promotional rate shot up to $27 bucks a month. For FOUR papers – almost $30 bucks! And despite how much enjoyment it affords me, I just don’t need it delivered to my doorstep four weeks out of the year. I will probably still go pick up the paper at a newsstand twice a month – if the Guy and I split, I’ll still be spending $5 per month on my beloved paper indulgence. But really, that’s $25 of savings and given how hard it is to make my budget fit on more essential nonessentials, I realized, sacrificing my Times is really an easy call. In short, I should get a gold star for giving up my fave thing!
Thursday, December 11, 2008
On Milestones and Arguing About Money
A couple weeks ago, The Guy and I passed the “Year-and-a-Half Mark” in our relationship. Sorry if some of you are scoffing, but 18 Months is quite monumental in my eyes. And truly, I’ve never been happier or more comfortable with anyone. Because my real-life best friends have been going through some difficult times lately, I really haven’t taken the opportunity to gloat: but, I mean, wow, I’m really happy with this guy. And given how difficult I can be, it’s kind of something that we both still enjoy each other’s company and feel like true partners.
I also really appreciate that when we argue, we really talk it out – and generally do so without belittling or caricaturizing the other person. Which is really one of those important "in the long-term" kinds of things. Anyway, to the second point of my post. We had an argument the other day – I think it would most accurately be labeled as a “spat” – that was really about different philosophies on money, somewhere underneath the silliness.
Scenario: The Guy and I have these free movie passes that expire at the end of the year. So last weekend we decided we would go see a movie at this theater, only to discover upon arrival that we can’t use the passes on Saturday. At which point, we can either retreat or pay $18 to see the movie. I suggest we check out another movie we really wanted to see at another theater. (Read: If I’m going to spend money, it better be something I actually want to see). The Guy overrides and says we should just see it because it's not worth the trouble to hike all 2 blocks to the nearest theater. He wins. I buy the tickets, but I am miffed, and borderline bitter. My gripe is not the $18, but the fact that I feel The Guy doesn’t take into account my frugal tendencies enough (at all?)
Seems trivial enough, but isn’t this where it starts? Am I just being ridiculously small? Or is this a legitimate claim that boils into something bigger? I guess, given that a lot of marital issues are caused by disputes over money, I’m wondering if this is just inevitable or a signpost. Thoughts?
I also really appreciate that when we argue, we really talk it out – and generally do so without belittling or caricaturizing the other person. Which is really one of those important "in the long-term" kinds of things. Anyway, to the second point of my post. We had an argument the other day – I think it would most accurately be labeled as a “spat” – that was really about different philosophies on money, somewhere underneath the silliness.
Scenario: The Guy and I have these free movie passes that expire at the end of the year. So last weekend we decided we would go see a movie at this theater, only to discover upon arrival that we can’t use the passes on Saturday. At which point, we can either retreat or pay $18 to see the movie. I suggest we check out another movie we really wanted to see at another theater. (Read: If I’m going to spend money, it better be something I actually want to see). The Guy overrides and says we should just see it because it's not worth the trouble to hike all 2 blocks to the nearest theater. He wins. I buy the tickets, but I am miffed, and borderline bitter. My gripe is not the $18, but the fact that I feel The Guy doesn’t take into account my frugal tendencies enough (at all?)
Seems trivial enough, but isn’t this where it starts? Am I just being ridiculously small? Or is this a legitimate claim that boils into something bigger? I guess, given that a lot of marital issues are caused by disputes over money, I’m wondering if this is just inevitable or a signpost. Thoughts?
Wednesday, December 10, 2008
The "Why" Behind Expensive Health Care
I wanted to do a series about how much health care costs (i.e. literally answering the “what” for all of these services), but the more I researched, the more I found answers to a different question, the “why.” As in “Why does U.S. health care cost so much?”
The variations in how much health care costs in various nations are mostly explained by G.D.P. per capita. And everything else is being attributed to:
1. Simply higher prices for the same thing
2. Higher admin/overheard costs
3. More widespread use of high tech equipment
4. More defensive medicine and tests to fend off malpractice suits
I wonder if any of Obama’s universal health care plans are addressing any of these specific issues or if universalizing will simply being evening the playing field for lower income families who can’t even get the baseline of care being offered in the U.S. I will be interested to learn more.
To my original question of how much health care costs… does anyone have ideas for good resources on where to find better itemization of what things cost?
In the meantime, I'm doing a pretty good job of noting Rx costs on my recipts (that little line that tells you how much your insurance saved you....)
Read more in-depth in this great Economix article from Nov. 14 NYTimes
The variations in how much health care costs in various nations are mostly explained by G.D.P. per capita. And everything else is being attributed to:
1. Simply higher prices for the same thing
2. Higher admin/overheard costs
3. More widespread use of high tech equipment
4. More defensive medicine and tests to fend off malpractice suits
I wonder if any of Obama’s universal health care plans are addressing any of these specific issues or if universalizing will simply being evening the playing field for lower income families who can’t even get the baseline of care being offered in the U.S. I will be interested to learn more.
To my original question of how much health care costs… does anyone have ideas for good resources on where to find better itemization of what things cost?
In the meantime, I'm doing a pretty good job of noting Rx costs on my recipts (that little line that tells you how much your insurance saved you....)
Read more in-depth in this great Economix article from Nov. 14 NYTimes
Tuesday, December 9, 2008
A Frugal Winter Project - and a Challenge?
Instead of spending lots to see movies or go shopping or go out to keep ourselves entertained over the LONG months of Minnesota winter, the Guy and I decided on a little project. We’re planning to see every single movie on the AFI’s Top 100 list… with a deadline of April 1st. The significance of April 1st is supposedly when Winter will have ended here in Minnesota and it is also the date for when we’ve planned to get a DOG! So the idea is to contribute what we would have spent on movie tickets ($10 each) and putting it toward the dog savings fund, everytime we see one on our list. (For now, we’re ignoring the fixed cost of Netflix).
So I looked through and we haven’t seen 75 of the movies (wow, I’m uncultured)…. Leaving us at a savings total of $750 each if we see all of them by then. Maybe we won't make it, but it will be a fun little winter project... want to take the challenge and put the savings towards your own savings goal? Customize it any way you'd like and leave a comment on this post if you want to take the challenge!
1. Citizen Kane (1941)
4. Raging Bull (1980)
5. Singin' in the Rain (1952)
7. Lawrence of Arabia (1962)
8. Schindler's List (1993)
9. Vertigo (1958)
11. City Lights (1931)
12. The Searchers (1956)
13. Star Wars (1977)
14. Psycho (1960)
15. 2001: A Space Odyssey (1968)
16. Sunset Blvd. (1950)
18. The General (1927)
19. On the Waterfront (1954)
21. Chinatown (1974)
22. Some Like It Hot (1959)
27. High Noon (1952)
28. All About Eve (1950)
29. Double Indemnity (1944)
30. Apocalypse Now (1979)
31. The Maltese Falcon (1941)
32. The Godfather Part II (1974)
33. One Flew Over the Cuckoo's Nest (1975)
36. The Bridge on the River Kwai (1957)
37. The Best Years of Our Lives (1946)
38. Treasure of the Sierra Madre (1948)
39. Dr. Strangelove (1964)
41. King Kong (1933)
42. Bonnie and Clyde (1967)
43. Midnight Cowboy (1969)
44. The Philadelphia Sotry (1940)
45. Shane (1953)
46. It Happened One Night (1934)
47. A Streetcar Named Desire (1951)
48. Rear Window (1954)
49. Intolerance (1916)
51. West Side Story (1961)
52. Taxi Driver (1976)
53. The Deer Hunter (1978)
54. M*a*s*h (1970)
55. North By Northwest (1959)
57. Rocky (1976)
58. The Gold Rush (1925)
59. Nashville (1975)
60. Duck Soup (1933)
61. Sullivan's Travels (1958)
62. American Graffiti (1973)
63. Cabaret (1972)
64. Network (1976)
65. The African Queen (1951)
66. Raiders of the Lost Ark (1981)
67. Who's Afraid of Virginia Woolf? (1966)
68. Unforgiven (1992)
69. Tootsie (1982)
70. A Clockwork Orange (1971)
73. Butch Caddidy and the Sundance Kid (1969)
75. In the Heat of the Night (1967)
78. Modern Times (1936)
79. The Wild Bunch (1969)
80. The Apartment (1960)
81. Spartacus (1960)
82. Sunrise (1927)
84. Easy Rider (1969)
85. A Night at the Opera (1935)
86. Platoon (1986)
88. Bringing Up Baby (1938)
90. Swing Time (1936)
91. Sophie's Choice (1982)
92. Goodfellas (1990)
93. The French Connection (1971)
94. Pulp Fiction (1994)
95. The Last Picture Show (1971)
97. Blade Runner (1982)
98. Yankee Doodle Dandy (1942)
Let me know if you want to take the Frugal Winter Project Challenge with a post! Oh, and let me know if you have favorite movies on this list where I should start!
So I looked through and we haven’t seen 75 of the movies (wow, I’m uncultured)…. Leaving us at a savings total of $750 each if we see all of them by then. Maybe we won't make it, but it will be a fun little winter project... want to take the challenge and put the savings towards your own savings goal? Customize it any way you'd like and leave a comment on this post if you want to take the challenge!
1. Citizen Kane (1941)
4. Raging Bull (1980)
5. Singin' in the Rain (1952)
7. Lawrence of Arabia (1962)
8. Schindler's List (1993)
9. Vertigo (1958)
11. City Lights (1931)
12. The Searchers (1956)
13. Star Wars (1977)
14. Psycho (1960)
15. 2001: A Space Odyssey (1968)
16. Sunset Blvd. (1950)
18. The General (1927)
19. On the Waterfront (1954)
21. Chinatown (1974)
22. Some Like It Hot (1959)
27. High Noon (1952)
28. All About Eve (1950)
29. Double Indemnity (1944)
30. Apocalypse Now (1979)
31. The Maltese Falcon (1941)
32. The Godfather Part II (1974)
33. One Flew Over the Cuckoo's Nest (1975)
36. The Bridge on the River Kwai (1957)
37. The Best Years of Our Lives (1946)
38. Treasure of the Sierra Madre (1948)
39. Dr. Strangelove (1964)
41. King Kong (1933)
42. Bonnie and Clyde (1967)
43. Midnight Cowboy (1969)
44. The Philadelphia Sotry (1940)
45. Shane (1953)
46. It Happened One Night (1934)
47. A Streetcar Named Desire (1951)
48. Rear Window (1954)
49. Intolerance (1916)
51. West Side Story (1961)
52. Taxi Driver (1976)
53. The Deer Hunter (1978)
54. M*a*s*h (1970)
55. North By Northwest (1959)
57. Rocky (1976)
58. The Gold Rush (1925)
59. Nashville (1975)
60. Duck Soup (1933)
61. Sullivan's Travels (1958)
62. American Graffiti (1973)
63. Cabaret (1972)
64. Network (1976)
65. The African Queen (1951)
66. Raiders of the Lost Ark (1981)
67. Who's Afraid of Virginia Woolf? (1966)
68. Unforgiven (1992)
69. Tootsie (1982)
70. A Clockwork Orange (1971)
73. Butch Caddidy and the Sundance Kid (1969)
75. In the Heat of the Night (1967)
78. Modern Times (1936)
79. The Wild Bunch (1969)
80. The Apartment (1960)
81. Spartacus (1960)
82. Sunrise (1927)
84. Easy Rider (1969)
85. A Night at the Opera (1935)
86. Platoon (1986)
88. Bringing Up Baby (1938)
90. Swing Time (1936)
91. Sophie's Choice (1982)
92. Goodfellas (1990)
93. The French Connection (1971)
94. Pulp Fiction (1994)
95. The Last Picture Show (1971)
97. Blade Runner (1982)
98. Yankee Doodle Dandy (1942)
Let me know if you want to take the Frugal Winter Project Challenge with a post! Oh, and let me know if you have favorite movies on this list where I should start!
Monday, December 8, 2008
Save $1000 in 30 Days - Volume II
So I promised to post back on all of the things that I didn't do to try to save $1000 in 30 days (or how I ended up saving only $185). I might dip back into these at a later date... but for now, I'm keeping them on the shelf. Hopefully some of you can find something here that works... or I would encourage you to dip back into the original posts at IWTYTBR.
Things I Didn't Do:
> Enlist the help of friends to help support your savings. – the Guy hears enough about my various savings schemes as is...
> Save money on cell phone bill – I did use billshrink.com and found two offers/plans from other carriers that could save me around $40 a year. For that much money, it’s not really worth my time and patience to pick up the phone and talk to customer retention people, but next year when I move and have to deal with it, I’m going to dig up this resource.
> Fuel Hedging - Now that prices are coming down, I'm less motivated to squirrel away money for smaller expenses like this. I would rather handle it with flexible budgeting.
> Cancel Discretionary Subscriptions – I did cancel my Netflix subscription about 6 months ago, and I haven’t really regretted it at all. The only subscription I have now is my Sunday times, and I get more enjoyment out of that on Sunday mornings than anything. I noticed that the monthly charge is $27, which is expensive, and has definitely creeped back up from the promotional price I opted in at. So I may cancel out and buy newstand in coming months if I need to tighten further. I'm so on the fence...
> No Christmas Gifts this Year. I would like to do this this year. Christmas gifts are so guilt-ridden and awkward sometimes. I would rather do something else to show people that I care about them. But I can’t seem to actually do this one. I want to at least moderate my gift giving this year…. But giving smaller gifts seems even lamer than giving no gifts somehow. I think the best thing is when everyone is on the same page though, which I think we are.
> Cancel any large purchases temporarily – I don’t think I really had any on the docket, but I like the tip of putting a calendar reminder 30 days out, to make sure you really do need whatever decently large purchase you might be considering. I live by calendar reminders so that system might work.
> Self-persuasion…. This one was kind of lost on me frankly. Sorry, Ramit.
> Only Buy new things when replacing something old (also take issue with this guy… I mean, some old things DON’T need to be replaced…
> Minimize interest by paying a little extra off your loan each month (no loans and I pay credit cards off in full)
> Change the Date of Christmas to avoid paying high premiums for airfare, etc (Next year for sure). Or, I may even consider coming home less next year. I hate to say it... but I'm getting older, I have the Guy's side of the family that I could visit instead, or maybe just stay at home awhile. I am coming to realize that I really don't enjoy those extra days in my childhood bed... and I might be able to satisfy the family obligation elsewhere.
Things I Didn't Do:
> Enlist the help of friends to help support your savings. – the Guy hears enough about my various savings schemes as is...
> Save money on cell phone bill – I did use billshrink.com and found two offers/plans from other carriers that could save me around $40 a year. For that much money, it’s not really worth my time and patience to pick up the phone and talk to customer retention people, but next year when I move and have to deal with it, I’m going to dig up this resource.
> Fuel Hedging - Now that prices are coming down, I'm less motivated to squirrel away money for smaller expenses like this. I would rather handle it with flexible budgeting.
> Cancel Discretionary Subscriptions – I did cancel my Netflix subscription about 6 months ago, and I haven’t really regretted it at all. The only subscription I have now is my Sunday times, and I get more enjoyment out of that on Sunday mornings than anything. I noticed that the monthly charge is $27, which is expensive, and has definitely creeped back up from the promotional price I opted in at. So I may cancel out and buy newstand in coming months if I need to tighten further. I'm so on the fence...
> No Christmas Gifts this Year. I would like to do this this year. Christmas gifts are so guilt-ridden and awkward sometimes. I would rather do something else to show people that I care about them. But I can’t seem to actually do this one. I want to at least moderate my gift giving this year…. But giving smaller gifts seems even lamer than giving no gifts somehow. I think the best thing is when everyone is on the same page though, which I think we are.
> Cancel any large purchases temporarily – I don’t think I really had any on the docket, but I like the tip of putting a calendar reminder 30 days out, to make sure you really do need whatever decently large purchase you might be considering. I live by calendar reminders so that system might work.
> Self-persuasion…. This one was kind of lost on me frankly. Sorry, Ramit.
> Only Buy new things when replacing something old (also take issue with this guy… I mean, some old things DON’T need to be replaced…
> Minimize interest by paying a little extra off your loan each month (no loans and I pay credit cards off in full)
> Change the Date of Christmas to avoid paying high premiums for airfare, etc (Next year for sure). Or, I may even consider coming home less next year. I hate to say it... but I'm getting older, I have the Guy's side of the family that I could visit instead, or maybe just stay at home awhile. I am coming to realize that I really don't enjoy those extra days in my childhood bed... and I might be able to satisfy the family obligation elsewhere.
Saturday, December 6, 2008
Save $1000 (or $185) in 30 Days.
Recently I started reading the blog “I Will Teach You to Be Reach” who recently sponsored a challenge to save $1000 in 30 days. I didn't save anywhere near that amount, but I did record all of the tips and tried to implement many of them. The summary is below, noting which things I actually did and how much I'm thinking I could have saved. The basic idea is that hopefully you can find at least a few things, and hey, maybe you’ll save $100 instead of a $1000. Every bit counts… My calculation: $185 savings. I'll post again on all of the things I didn't do.
Things I Did:
> Packed my lunch for a week. I did this, but beyond this one tip, I would say the underlying idea is to create a system to help reduce food costs at work. Whether you only allow yourself two lunches in the work cafeteria or maybe there’s a set amount per week, it’s easy to exceed what you would budget on these types of expenses because they’re more blind.
($12 savings)
> Sell something on EBAY. Okay, I tried. But it didn’t sell. I think I might stick with good ‘ole Craigslist from now on. Same principle.
($0 savings)
> Create one no-spending day each week. I love this idea. Mine’s going to be each Monday.
($20 savings - probably a generous estimate)
> Buy Generic for Stuff you don’t care about. I do think this is very smart. I already do so with some things, but I know I can go further.
($8 savings)
> Invite People over to one’s house instead of going out (we do this all the time).
($20 savings)
> Use free rewards from credit cards etc (I do already, for holiday gifts!)
($125 savings)
Things I Did:
> Packed my lunch for a week. I did this, but beyond this one tip, I would say the underlying idea is to create a system to help reduce food costs at work. Whether you only allow yourself two lunches in the work cafeteria or maybe there’s a set amount per week, it’s easy to exceed what you would budget on these types of expenses because they’re more blind.
($12 savings)
> Sell something on EBAY. Okay, I tried. But it didn’t sell. I think I might stick with good ‘ole Craigslist from now on. Same principle.
($0 savings)
> Create one no-spending day each week. I love this idea. Mine’s going to be each Monday.
($20 savings - probably a generous estimate)
> Buy Generic for Stuff you don’t care about. I do think this is very smart. I already do so with some things, but I know I can go further.
($8 savings)
> Invite People over to one’s house instead of going out (we do this all the time).
($20 savings)
> Use free rewards from credit cards etc (I do already, for holiday gifts!)
($125 savings)
Friday, December 5, 2008
Improving My Credit Score...
It seems like every other story on NPR these past few weeks have been about how the economy and credit crunch is affecting the colloquial “Main Street.” And the way I’ve been hearing it, it all comes down to one thing…. Your Credit Score. It seems like that one little number is really the difference between how you’re impacted by any of this.
I posted my score here before: 748 (which is only considered “Good”)
To take it up to “Great” and getting beyond the 78th percentile before I really need a loan would be ideal.
A few actions I’ll be taking to help do what I can to improve my credit score:
--> Scheduling my credit card payments monthly so I never turn anything in late.
--> Close my one dormant retail credit card I opened when I was 17.
--> Keep my balance low. Keep charging one tank of gas a month on the two cards that aren’t my primary card.
I posted my score here before: 748 (which is only considered “Good”)
To take it up to “Great” and getting beyond the 78th percentile before I really need a loan would be ideal.
A few actions I’ll be taking to help do what I can to improve my credit score:
--> Scheduling my credit card payments monthly so I never turn anything in late.
--> Close my one dormant retail credit card I opened when I was 17.
--> Keep my balance low. Keep charging one tank of gas a month on the two cards that aren’t my primary card.
Thursday, December 4, 2008
Evaluating My Portfolio of Assets
So, I did it... I took the plunge and upped my automatic savings by another $100. I decided I would increase my cash-value life insurance contributions so that I can hopefully cover this no problem, even when I'm in grad school. I think I may even be able to do more... but I want to wait it out and see.
The one blessing of not having a lot of money in these times, as I told my advisor yesterday, is not having to worry so much about the right balance of your portfolio. When you only have a little teensy bit in the market, there’s just not that much nuance you can introduce. But for the future, I do want to re-evaluate my entire portfolio of assets and get a sober assessment of the right balance. I recently found a quick list of resources to help you do just that on your own.
Step 1: Break down all of your assets into three major categories; stocks, bonds and cash.
Step 2: Use Morningstar’s free Instant X-Ray tool (Morningstar.com/goto/instantxray) to display the assets in a pie chart.
Step 3: Decide your target allocation and shift from investments you’re overweighted in to those you’re light on.
Rinse and repeat annually. I think the categorization will be enlightening for me for instance, because often, even when I have my money in many different places, they all might fall into the same category.
The one blessing of not having a lot of money in these times, as I told my advisor yesterday, is not having to worry so much about the right balance of your portfolio. When you only have a little teensy bit in the market, there’s just not that much nuance you can introduce. But for the future, I do want to re-evaluate my entire portfolio of assets and get a sober assessment of the right balance. I recently found a quick list of resources to help you do just that on your own.
Step 1: Break down all of your assets into three major categories; stocks, bonds and cash.
Step 2: Use Morningstar’s free Instant X-Ray tool (Morningstar.com/goto/instantxray) to display the assets in a pie chart.
Step 3: Decide your target allocation and shift from investments you’re overweighted in to those you’re light on.
Rinse and repeat annually. I think the categorization will be enlightening for me for instance, because often, even when I have my money in many different places, they all might fall into the same category.
Wednesday, December 3, 2008
Meeting with my Financial Advisor Today
I'm meeting with my financial advisor today – long overdue considering the progress I’ve made since our last meeting (a. became a personal finance blogger, b. applied to business school, c. moved in with the Guy, etc. etc.)
I completed the two update worksheets – one which had all of my income statistics and also what I hoped to be making in three years which was a lovely exercise in “who knows” now that the ceiling has come crumbling down. And the other was my monthly budget. I remember being handed this at our initial meeting and thinking it was pretty preposterous. How was I supposed to know how much I spent on all of this stuff? How naïve and not-yet-anal I was! I flew through it more or less with ease, applying a few ranges where appropriate, and was happy to see how close I was matching their categories with mine… I came up with only having a $38 surplus from my income to my expenses. We all know how quickly $38 can be sprinkled throughout multiple categories, so I’m sure that’s where it actually goes.
But it did make me think. Could I contribute $38 more to my Roth? Could I up my cash savings $38? Or more? I know it will only work when I increase something that I don’t already see. So I might just ask my friends at Northwestern Mutual to increase something without telling me. More later to report on the meeting....
I completed the two update worksheets – one which had all of my income statistics and also what I hoped to be making in three years which was a lovely exercise in “who knows” now that the ceiling has come crumbling down. And the other was my monthly budget. I remember being handed this at our initial meeting and thinking it was pretty preposterous. How was I supposed to know how much I spent on all of this stuff? How naïve and not-yet-anal I was! I flew through it more or less with ease, applying a few ranges where appropriate, and was happy to see how close I was matching their categories with mine… I came up with only having a $38 surplus from my income to my expenses. We all know how quickly $38 can be sprinkled throughout multiple categories, so I’m sure that’s where it actually goes.
But it did make me think. Could I contribute $38 more to my Roth? Could I up my cash savings $38? Or more? I know it will only work when I increase something that I don’t already see. So I might just ask my friends at Northwestern Mutual to increase something without telling me. More later to report on the meeting....
Tuesday, December 2, 2008
November Book Reccommendations
I have to admit that I haven’t been very good at updating the sidebar on What I’m Currently Reading. I picked up and rather quickly put down Oliver Stone’s USA because I hadn’t yet seen many of the films referenced. I will hopefully be picking that up when that task is completed! What I have been reading instead:
The Straight Man by Richard Russo
I was lead to believe (by an overly chipper member of our HR dept at work) that this was a funny book. It was funny only in the wryest sense, in which you feel bemused but somehow more depressed for the characters. Coming from an HR recommendation, that just made my reading of the book rather weird. Other than that, it picked up in the second half and was definitely an easy read if nothing else. The one line that stuck with me which I thought was salient: “I’m not a ______ (fill in the blank: sadist, misogynist, whatever), but I can play that role.” There are so many times we pick up the end of a joke or deliver a line knowing that we’re playing a role, more than we’re being true to our own characters. Such an interesting behavior.
The Good Book by Peter J. Gomes
This has been a truly seminal read for me. Growing up in a conservative (Southern Baptist) family, I have had a hard time reconciling what I do see as my own true faith, with my now fairly-liberal political and social views. How can I have faith in the same God of my childhood upbringing and also believe something so heretically different from what my parents/grandparents/minister/ believe about the world. This book takes an intellectual look at what it means to read the Bible and how much the Bible has been misused to mean whatever the cultural consensus prefers. Using examples like prohibition/temperance, slavery, women’s rights, anti-Semitism, abortion, and other cultural battles, Gomes outlines exactly what the Bible does say that could be related to these topics and gives examples of how these passages have been interpreted (for better, or more often for worse). The cultural construction of spirituality is a subject I’ve always been interested in, and this was a really enlightening and truly NEW understanding of some of these issues and how people can construct very different worldviews while still believing in the God of the Bible. I highly recommend it.
The Latest Non-Required Reading Anthology Edited by Dave Eggers
This time the guest editor was Judy Blume and some of the front matter they’ve compiled is truly hysterical. I haven’t gotten to any of the stories yet (I’m sharing this read with the Guy so I’m waiting for him to finish). But the opening bits were just classic. My favorite was seeing the Best Facebook Groups and seeing some of mine in there! Yes, I’m a member of the Facebook Group “I judge you when you use poor grammar.”
The Straight Man by Richard Russo
I was lead to believe (by an overly chipper member of our HR dept at work) that this was a funny book. It was funny only in the wryest sense, in which you feel bemused but somehow more depressed for the characters. Coming from an HR recommendation, that just made my reading of the book rather weird. Other than that, it picked up in the second half and was definitely an easy read if nothing else. The one line that stuck with me which I thought was salient: “I’m not a ______ (fill in the blank: sadist, misogynist, whatever), but I can play that role.” There are so many times we pick up the end of a joke or deliver a line knowing that we’re playing a role, more than we’re being true to our own characters. Such an interesting behavior.
The Good Book by Peter J. Gomes
This has been a truly seminal read for me. Growing up in a conservative (Southern Baptist) family, I have had a hard time reconciling what I do see as my own true faith, with my now fairly-liberal political and social views. How can I have faith in the same God of my childhood upbringing and also believe something so heretically different from what my parents/grandparents/minister/ believe about the world. This book takes an intellectual look at what it means to read the Bible and how much the Bible has been misused to mean whatever the cultural consensus prefers. Using examples like prohibition/temperance, slavery, women’s rights, anti-Semitism, abortion, and other cultural battles, Gomes outlines exactly what the Bible does say that could be related to these topics and gives examples of how these passages have been interpreted (for better, or more often for worse). The cultural construction of spirituality is a subject I’ve always been interested in, and this was a really enlightening and truly NEW understanding of some of these issues and how people can construct very different worldviews while still believing in the God of the Bible. I highly recommend it.
The Latest Non-Required Reading Anthology Edited by Dave Eggers
This time the guest editor was Judy Blume and some of the front matter they’ve compiled is truly hysterical. I haven’t gotten to any of the stories yet (I’m sharing this read with the Guy so I’m waiting for him to finish). But the opening bits were just classic. My favorite was seeing the Best Facebook Groups and seeing some of mine in there! Yes, I’m a member of the Facebook Group “I judge you when you use poor grammar.”
Monday, December 1, 2008
November Goals Wrap-Up
A little ahead of things since I already posted my December goals, but I won't let myself get away with a recap on last month. With my Argentina wiping out most of my month altogether, I had only three goals. How’d I do?
Devote 1 solid hour of weekend time to reading and organizing current projects.
I made good strides but I want to keep this going into December, to get serious about my writing especially.
Read the Wall Street Journal everyday.
Complete fail. I read the WSJ three days entirely: 11/1, 11/6, 11/25
Create a Detailed Holiday Gift Plan
Check! And so far, I’m sticking to it!
Limit “Employee Badge spending” to $40
Sorta-kinda. For the things I normally spend money on (food/coffee), I actually limited my spending to $16. But I put a $50 dry cleaning bill on my badge, for an overage of $26 over my goal. I will still be monitoring this next month though.
Devote 1 solid hour of weekend time to reading and organizing current projects.
I made good strides but I want to keep this going into December, to get serious about my writing especially.
Read the Wall Street Journal everyday.
Complete fail. I read the WSJ three days entirely: 11/1, 11/6, 11/25
Create a Detailed Holiday Gift Plan
Check! And so far, I’m sticking to it!
Limit “Employee Badge spending” to $40
Sorta-kinda. For the things I normally spend money on (food/coffee), I actually limited my spending to $16. But I put a $50 dry cleaning bill on my badge, for an overage of $26 over my goal. I will still be monitoring this next month though.
Sunday, November 30, 2008
November Net Worth & New Goals
Holy plummet!
I was prepared for a bit of a dip due to clearing out my travel fund for Argentina. That combined with my Roth and 401(k) performance = wow, my 2009 goal is seeming pretty out of reach! My net worth is now $38.9K, down $332 from last month. My retirement accounts alone decreased in value by 3% just last month.
December is not exactly the ideal month to batten down the financial hatches, especially with the Guy’s 30th birthday coming up! Loads of festivities in order for that. On top of all the various holiday celebrations. But here goes… my goals for December.
> Organize writing/other projects and create a detailed plan of attack
> Log significant writing time (1 hour per weekend)
> Limit work badge spending to $40 for month of December
> Stick to a 2-drink only policy for holiday parties out. (This will be tough....)
> Stick to the 5-day workout plan.
> Send an extra $100 to my emergency fund at the end of the month. (Right now, my budget hangs together by keeping savings slimmer this month, but I want to try to reverse that if I can… my stretch goal.)
I was prepared for a bit of a dip due to clearing out my travel fund for Argentina. That combined with my Roth and 401(k) performance = wow, my 2009 goal is seeming pretty out of reach! My net worth is now $38.9K, down $332 from last month. My retirement accounts alone decreased in value by 3% just last month.
December is not exactly the ideal month to batten down the financial hatches, especially with the Guy’s 30th birthday coming up! Loads of festivities in order for that. On top of all the various holiday celebrations. But here goes… my goals for December.
> Organize writing/other projects and create a detailed plan of attack
> Log significant writing time (1 hour per weekend)
> Limit work badge spending to $40 for month of December
> Stick to a 2-drink only policy for holiday parties out. (This will be tough....)
> Stick to the 5-day workout plan.
> Send an extra $100 to my emergency fund at the end of the month. (Right now, my budget hangs together by keeping savings slimmer this month, but I want to try to reverse that if I can… my stretch goal.)
Saturday, November 29, 2008
Black Friday Deals
So I was out yesterday in all the (subdued) early morning madness. I think I had a pretty good get, all in all... not the most frugal, but I got what I needed to get done very quickly, so we'll go with efficient, at least!
My Deals:
> A really nice sweater and dress shirt from Brooks Brothers for the Guy (Originally $200 / My Total: $110)
> ALL of my Christmas ornaments for my first tree (Originally $15 / My Total: $7.50)
> A pair of nice Isotoner gloves for me (Originally $18 / My Total $12)
> Two pairs of boots - an early gift from my Mom (Originally $160 / My Total: $80 for both!)
> A DVD for a friend (Originally $20 / My Total: $4)
Original Goods $413
Discounted for........... $214
My Deals:
> A really nice sweater and dress shirt from Brooks Brothers for the Guy (Originally $200 / My Total: $110)
> ALL of my Christmas ornaments for my first tree (Originally $15 / My Total: $7.50)
> A pair of nice Isotoner gloves for me (Originally $18 / My Total $12)
> Two pairs of boots - an early gift from my Mom (Originally $160 / My Total: $80 for both!)
> A DVD for a friend (Originally $20 / My Total: $4)
Original Goods $413
Discounted for........... $214
Wednesday, November 26, 2008
Sidebar Update
HAPPY THANKSGIVING!!! Hope everyone is enjoying their own version of food and family...
Now that I'm back from my trip and my travel fund was completely depleted, I decided to reorganize and reprioritize my sidebars a bit... My #1 goal is to hit that emergency fund goal, and I am more focused there than ever. As I try to meet my 2009 Annual Net Worth Goal I am going to be more focused on balancing each month's budget based on income and expenses. I want to make sure that I am using every $1 of my twice monthly paycheck that is not spent to go into that emergency fund (vs. just hanging out in a stray checking account).
The Guy and I have decided that we're getting a dog on April 1st and our goal is to save $1000 before that time to cover dogwalking expenses. In financial terms, April 1st is SO CLOSE. So I have to get serious about this one.
Finally, I'm realizing it's not going to be even close to realistic for me to save anything substantial for grad school or a wedding right now, so I have opened that subaccount in ING, but until I get through with goals #2 and #3, I'm not going to worrry about it too much. Perhaps more focus will really help!
Now that I'm back from my trip and my travel fund was completely depleted, I decided to reorganize and reprioritize my sidebars a bit... My #1 goal is to hit that emergency fund goal, and I am more focused there than ever. As I try to meet my 2009 Annual Net Worth Goal I am going to be more focused on balancing each month's budget based on income and expenses. I want to make sure that I am using every $1 of my twice monthly paycheck that is not spent to go into that emergency fund (vs. just hanging out in a stray checking account).
The Guy and I have decided that we're getting a dog on April 1st and our goal is to save $1000 before that time to cover dogwalking expenses. In financial terms, April 1st is SO CLOSE. So I have to get serious about this one.
Finally, I'm realizing it's not going to be even close to realistic for me to save anything substantial for grad school or a wedding right now, so I have opened that subaccount in ING, but until I get through with goals #2 and #3, I'm not going to worrry about it too much. Perhaps more focus will really help!
Squeals of Excitement at the Pump, and yet....
Today I saw gas for $1.66 a gallon. Wow, how quickly things have changed. I can now fill up my tank for exactly half of what it cost just a few short months ago. And yet, I know as the price falls and falls, we can’t be that excited. This article is good education on why the lower oil prices fall, the more difficult the global economic recovery will be.
Recap on my Argentina Vacation
Amazing, amazing, amazing. And might I say, it ended up being a very well-designed and reasonable trip. Nothing is reasonable when you’re doing the vacation lifestyle for 10 whole days. But we had a great exchange rate for the majority of our trip (3.3 pesos to the dollar) and we made some modest choices to balance out our splurges!
The Itinerary:
Buenos Aires: Stayed in the trendy Palermo Soho neighborhood in a tiny boutique hotel and did tons of sight-seeing (Recoleta Cemetery with all of the Evita memorabilia, Puerto Madero and San Telmo antique markets, shopping in Palermo). Great food and fun nightlife, but this was in essence, sort of like being in New York, in South America. It was just a really cool big city with all of the cool big city perks and oddities you’d expect. All of the European influences are right on, and I could understand all of the BA nicknames
Highlight: a Boca Juniors futbol match – sitting on the first row, absolutely free. Courtesy of a hook-up from a friend’s company.
Mendoza: Stayed in the Park Hyatt for one night – WOW – this was our little splurge. For the remainder of the time, stayed in a little stone lodge in the middle of the countryside, cheap and absolutely charming. Visited wineries all day for two days, and then hiking and rappelling near the base of the Andes. This was our absolute favorite part of the trip. Mendoza’s little plazas and quaint streets and restaurants seemed somehow more authentically Argentinian. We got a real sense of the place and the people as we visited the wineries, talking to their owners or our taxi drivers. The famous “pride” of Argentinians didn’t seem like bravado as much as it did in BA, just a contented “of course” kind of sensibility about their lifestyle. Hiking was rather strenuous (glad we added some weight training into our workout routine beforehand) but full of incredible views. Our guides with the Argentina Rafting Company were excellent, and I enjoyed hearing about their travels and lifestyle about as much as anything.
Highlight: a dinner we had in an old winery in the suburbs of Mendoza – a restaurant called “1884” – this was the best meal of our lives, and the character of this place, so romantic and as old world as you get, will be a memory for a long, long time.
Iguazu: Right on the border between Brazil and Argentina are the most breathtaking falls and the only subtropical rainforest I’ve ever frequented. The wildlife and the falls were absolutely beautiful but the port of Iguazu itself was pretty much a deserted tourist town so we only stayed one night and booked it back to Buenos Aires before we left.
Highlight: Seeing a wild toucan fly up to us on the path headed to the falls.
Taxis and food (despite being cheap) added up and were what most of our money went to on the trip… I bought very few souvenirs (mostly wine), but all in all was still over budget by $237. Oops. Still, for the value we got out of the trip, I was VERY happy!
The Itinerary:
Buenos Aires: Stayed in the trendy Palermo Soho neighborhood in a tiny boutique hotel and did tons of sight-seeing (Recoleta Cemetery with all of the Evita memorabilia, Puerto Madero and San Telmo antique markets, shopping in Palermo). Great food and fun nightlife, but this was in essence, sort of like being in New York, in South America. It was just a really cool big city with all of the cool big city perks and oddities you’d expect. All of the European influences are right on, and I could understand all of the BA nicknames
Highlight: a Boca Juniors futbol match – sitting on the first row, absolutely free. Courtesy of a hook-up from a friend’s company.
Mendoza: Stayed in the Park Hyatt for one night – WOW – this was our little splurge. For the remainder of the time, stayed in a little stone lodge in the middle of the countryside, cheap and absolutely charming. Visited wineries all day for two days, and then hiking and rappelling near the base of the Andes. This was our absolute favorite part of the trip. Mendoza’s little plazas and quaint streets and restaurants seemed somehow more authentically Argentinian. We got a real sense of the place and the people as we visited the wineries, talking to their owners or our taxi drivers. The famous “pride” of Argentinians didn’t seem like bravado as much as it did in BA, just a contented “of course” kind of sensibility about their lifestyle. Hiking was rather strenuous (glad we added some weight training into our workout routine beforehand) but full of incredible views. Our guides with the Argentina Rafting Company were excellent, and I enjoyed hearing about their travels and lifestyle about as much as anything.
Highlight: a dinner we had in an old winery in the suburbs of Mendoza – a restaurant called “1884” – this was the best meal of our lives, and the character of this place, so romantic and as old world as you get, will be a memory for a long, long time.
Iguazu: Right on the border between Brazil and Argentina are the most breathtaking falls and the only subtropical rainforest I’ve ever frequented. The wildlife and the falls were absolutely beautiful but the port of Iguazu itself was pretty much a deserted tourist town so we only stayed one night and booked it back to Buenos Aires before we left.
Highlight: Seeing a wild toucan fly up to us on the path headed to the falls.
Taxis and food (despite being cheap) added up and were what most of our money went to on the trip… I bought very few souvenirs (mostly wine), but all in all was still over budget by $237. Oops. Still, for the value we got out of the trip, I was VERY happy!
Monday, November 24, 2008
I'm Back...
And it was incredible... More to come later when I'm over the jet lag and recovered from a week long vino hangover.
Wednesday, November 12, 2008
Tomorrow is the Day....
I leave for a fabulous 10-day vacation in Argentina tomorrow. So you won’t see any posts here for 10-12 days or so. When I return, here’s what’s on tap:
+A recap on my trip expenses
+My Plan to Improve my Credit Score
+I Will Teach You to Be Rich’s “Save $1000 in 30 days Challenge
+How’s my Holiday Gift Planning Going?
+A Recessionista Thanksgiving
+New Blogs/Good Reads
+Evaluating your Portfolio in 3 Steps
+A recap on my trip expenses
+My Plan to Improve my Credit Score
+I Will Teach You to Be Rich’s “Save $1000 in 30 days Challenge
+How’s my Holiday Gift Planning Going?
+A Recessionista Thanksgiving
+New Blogs/Good Reads
+Evaluating your Portfolio in 3 Steps
Tuesday, November 11, 2008
Holiday Gift-Giving Budget Plan
My strategy for keeping my holiday gift giving low has been three-fold.
Making a list of everyone to whom you really want to give a gift – For me this year, it will just be my immediate family, the Guy, and two of my close friends. My extended family does exchange names, so I won’t find out about that extra gift until we draw at Thanksgiving. I would also love to give a gift to my grandparents and potentially The Guy’s parents, so if I see something that is just the perfect fit, I will probably splurge for that as well. The Guy and I will probably go in together for something small for the two couples we’re close with.
Stagger a buying plan. My strategy is usually to use my credit card rewards points to redeem for gift cards so I can supplement my usual holiday buying budget. This year I had earned more than I thought on the two credit cards I use only seldom (my main card is the Starwoods Amex which I save for hotels and travel). I’ve already redeemed a $100 gift card which I’ll use for the Guy and I have about $50 left to redeem for my friends and family. I’m going to try to buy lots of fun, unique presents in Argentina as well… I wish I had more skills that I could make more of my presents. Stories or poems would be all I’d have to offer. I will probably burn a few mixes for my Mom since she always loves the CD’s I make her. But I wish I had more ideas….
Make/Buy a few reserve gifts for the unexpected burdens of reciprocity. There are always a few unexpected gifts, from coworkers or more removed friends that you want to have something ready for. I think that holiday baking is going to be my main recourse here. I could buy a few Christmas ornaments.... Otherwise, I’m still looking for another shelf stable option to have handy so I won’t be caught in that embarrassing “oh, I left your gift in the car” moment.
Making a list of everyone to whom you really want to give a gift – For me this year, it will just be my immediate family, the Guy, and two of my close friends. My extended family does exchange names, so I won’t find out about that extra gift until we draw at Thanksgiving. I would also love to give a gift to my grandparents and potentially The Guy’s parents, so if I see something that is just the perfect fit, I will probably splurge for that as well. The Guy and I will probably go in together for something small for the two couples we’re close with.
Stagger a buying plan. My strategy is usually to use my credit card rewards points to redeem for gift cards so I can supplement my usual holiday buying budget. This year I had earned more than I thought on the two credit cards I use only seldom (my main card is the Starwoods Amex which I save for hotels and travel). I’ve already redeemed a $100 gift card which I’ll use for the Guy and I have about $50 left to redeem for my friends and family. I’m going to try to buy lots of fun, unique presents in Argentina as well… I wish I had more skills that I could make more of my presents. Stories or poems would be all I’d have to offer. I will probably burn a few mixes for my Mom since she always loves the CD’s I make her. But I wish I had more ideas….
Make/Buy a few reserve gifts for the unexpected burdens of reciprocity. There are always a few unexpected gifts, from coworkers or more removed friends that you want to have something ready for. I think that holiday baking is going to be my main recourse here. I could buy a few Christmas ornaments.... Otherwise, I’m still looking for another shelf stable option to have handy so I won’t be caught in that embarrassing “oh, I left your gift in the car” moment.
Monday, November 10, 2008
Anywhere at Any Price
One of my favorite sections of the Sunday paper is the opening quotes section behind the first page of the Business section. Sometimes you really understand more from that kind of brevity than a long nuanced article on the same subject. Yesterday, my favorite was:
“You can get anything, anywhere at any price.” – Marshal Cohen, chief industry analyst for the NPD Group. After retail sales plummeted in October, stores were offering eye-catching bargains.
It is true that between all the channels for a good deal – from an in-store sale, outlet malls, online discounter, overstock.com, etc., etc., it does seem that this might be true. If you’re willing to compromise on a feature or two or look long enough, you can find what you’re looking for at a price you can afford. And now that deflation and economic impact on retail business are in the mix, it’s doubly true.
Wondering if everyone else would agree to that statement or if there are some things, some categories, where that just isn’t the case. What’s in your shopping bag that price variability hasn’t touched yet?
“You can get anything, anywhere at any price.” – Marshal Cohen, chief industry analyst for the NPD Group. After retail sales plummeted in October, stores were offering eye-catching bargains.
It is true that between all the channels for a good deal – from an in-store sale, outlet malls, online discounter, overstock.com, etc., etc., it does seem that this might be true. If you’re willing to compromise on a feature or two or look long enough, you can find what you’re looking for at a price you can afford. And now that deflation and economic impact on retail business are in the mix, it’s doubly true.
Wondering if everyone else would agree to that statement or if there are some things, some categories, where that just isn’t the case. What’s in your shopping bag that price variability hasn’t touched yet?
Saturday, November 8, 2008
My 2009 'Annual' Goal...
Recently, in a comment-exchange with Well-Heeled, I realized how valuable it would be for me to have an annual savings goal in addition to my monthly goals. I do think it would help me keep a longer-term, broader perspective beyond all the ups and downs and surprises from month to month.
Admitting that my whole financial world will be changing next year when I take out enormous loans to go back to school, I think this will be a realistic goal for now until next August – so most of 2008. In reality, my goals on the sidebars are really more like my financial “to-do” list.
My net worth has gone up $7,000 over the past year, since I started tracking. So my “most of 2009” goal should be to increase it the same amount in 3 months less time. Should be kind of interesting in the current market, but not entirely unrealistic...
2009 Annual Goal: Increase Net Worth to $46K
Admitting that my whole financial world will be changing next year when I take out enormous loans to go back to school, I think this will be a realistic goal for now until next August – so most of 2008. In reality, my goals on the sidebars are really more like my financial “to-do” list.
My net worth has gone up $7,000 over the past year, since I started tracking. So my “most of 2009” goal should be to increase it the same amount in 3 months less time. Should be kind of interesting in the current market, but not entirely unrealistic...
2009 Annual Goal: Increase Net Worth to $46K
Friday, November 7, 2008
Giving into "Great Deal" Temptation
When I finally gave in to the “great deal” temptation, I realized just how long it had been since I bought something I didn’t NEED. My splurge:
a huge Samsonite Rolling Duffle for only $40 at Costco.
I checked the website to post the exact item (and tempt all of you as well), but it doesn’t appear to be a national offer – perhaps only in regional (Midwest) warehouses.
The need is arguable. I do have a big suitcase already. It is old, squeaky and difficult to wield at high speeds through airports. But it is a large suitcase that works. But THIS one is sleek and versatile, and only $40 – and my old suitcase will run out at some point, in which case this deal might not exist. So all in all, I still think it was a wise purchase despite its falling decidedly into the nonessentials bucket.
a huge Samsonite Rolling Duffle for only $40 at Costco.
I checked the website to post the exact item (and tempt all of you as well), but it doesn’t appear to be a national offer – perhaps only in regional (Midwest) warehouses.
The need is arguable. I do have a big suitcase already. It is old, squeaky and difficult to wield at high speeds through airports. But it is a large suitcase that works. But THIS one is sleek and versatile, and only $40 – and my old suitcase will run out at some point, in which case this deal might not exist. So all in all, I still think it was a wise purchase despite its falling decidedly into the nonessentials bucket.
Thursday, November 6, 2008
The Real Source of Profit = Creativity
I generally think that's true in the most basic sense. Continuing on that same theme, and in the spirit of optimism we currently find ourselves in two days after electing a transformative figure to the American presidency….
“Creativity is intrinsically surprising and the source of all real profit and growth” says George Gilder of Forbes Magazine. This article on the Coming Creativity Boom spells out the new technologies and developments that will be changing the American economy after our current state of crisis fades:
1) “cloud computing”
2) graphics processing
3) nanotech engineering
4) energy-saving construction materials.
Gilder speaks from the perspective of a venture capitalist who sees how much these firms and hedge funds deal and manage in the field of creativity, entrepreneurship and innovation. One fact that was a “wow” to me: the venture capital industry generated 17.6% of the United States GDP in 2006.
The “Coming Creativity Boom” is a great read if you’re in the mood for some optimism after all of the economized gloom and doom on the cable news networks.
“Creativity is intrinsically surprising and the source of all real profit and growth” says George Gilder of Forbes Magazine. This article on the Coming Creativity Boom spells out the new technologies and developments that will be changing the American economy after our current state of crisis fades:
1) “cloud computing”
2) graphics processing
3) nanotech engineering
4) energy-saving construction materials.
Gilder speaks from the perspective of a venture capitalist who sees how much these firms and hedge funds deal and manage in the field of creativity, entrepreneurship and innovation. One fact that was a “wow” to me: the venture capital industry generated 17.6% of the United States GDP in 2006.
The “Coming Creativity Boom” is a great read if you’re in the mood for some optimism after all of the economized gloom and doom on the cable news networks.
Wednesday, November 5, 2008
Huh?
After my confusion on open enrollment in health care benefits a few weeks ago, I introduced some clarity (and some more confusion) after my most recent visit to Walgreen’s to pick up my Rx. Because of the money in my company health care account and how it’s set up, I usually pick up my Rx and it automatically deducts from this money, and I am charged $0. The confusion I referenced before was about what happens after that money runs out. According to the policy, I pay “full sticker” for health care up to my deductible, and then I move to a co-pay. It's not that hard to understand. I guess my confusion is tied to my unfamiliarity with what “full sticker” health care even costs.
Well, I finally ran the well dry on the company funded health care spending account, and was a little shocked to receive the total of $24 for my two prescriptions. One Rx rang up as $.53. The second (my usual monthly prescription which I thought was around $50 “full sticker”) rang up as $23. What? Now $24 is not a lot for a Rx by any means, which is great, but just plain confusing.
But what is clear is that for the last two months of this year (before my health care spending account addition for 2008 kicks in), I need to budget for Rx expenses. I know universal health care is only one of the issues on the plate of president-elect Obama - and we may not get there in one year or one term - 'but we will get there.'
Well, I finally ran the well dry on the company funded health care spending account, and was a little shocked to receive the total of $24 for my two prescriptions. One Rx rang up as $.53. The second (my usual monthly prescription which I thought was around $50 “full sticker”) rang up as $23. What? Now $24 is not a lot for a Rx by any means, which is great, but just plain confusing.
But what is clear is that for the last two months of this year (before my health care spending account addition for 2008 kicks in), I need to budget for Rx expenses. I know universal health care is only one of the issues on the plate of president-elect Obama - and we may not get there in one year or one term - 'but we will get there.'
Tuesday, November 4, 2008
Put your Vote where your Tax Cuts are!
Election Day. Hopefully a day of exuberance and then we can all go back to talking about something else. I truly respect all of those non-partisan “Just go Vote!” people. But I am just not one of them. (By the way it took me two hours to vote this morning. I live very close to a university... so I was very encouraged by the 'youth' vote turnout! And very frustrated at the time...)
In honor of the day, I had to write about politics one last time. Money Magazine’s November issue hosted a decomp on the candidates tax policies (from the Tax Policy Center): "What Would They Do to Your Tax Bill" It makes it abundantly clear that the McCain plan is to raise no one’s taxes, but not cut anything significant for people who aren’t in the half-millionaire category and above.
Definitely check out the whole article, but I will just highlight one income bracket (my own)! For folks that make anywhere from $37,596 to $66,354 (20% of the population), Obama’s plan would cut their tax bill an average of $1,118. McCain’s plan would cut their tax bill $325 on average.
But what’s really enlightening is how Obama’s tax increases on the wealthy are really laid out. By now, everyone has been saturated by the media promise of “If you make under $250,000 a year, your taxes will stay flat or go down.” But for the income bracket of $227K to $603K the average increase is only $121. One hundred twenty-one dollars! That’s it! But for those making over $603K, the average increase would be $93,000. So, the significant tax increases are only going to the 1 of the population (half millionaires and above)!
Enjoy all of those election night parties!
In honor of the day, I had to write about politics one last time. Money Magazine’s November issue hosted a decomp on the candidates tax policies (from the Tax Policy Center): "What Would They Do to Your Tax Bill" It makes it abundantly clear that the McCain plan is to raise no one’s taxes, but not cut anything significant for people who aren’t in the half-millionaire category and above.
Definitely check out the whole article, but I will just highlight one income bracket (my own)! For folks that make anywhere from $37,596 to $66,354 (20% of the population), Obama’s plan would cut their tax bill an average of $1,118. McCain’s plan would cut their tax bill $325 on average.
But what’s really enlightening is how Obama’s tax increases on the wealthy are really laid out. By now, everyone has been saturated by the media promise of “If you make under $250,000 a year, your taxes will stay flat or go down.” But for the income bracket of $227K to $603K the average increase is only $121. One hundred twenty-one dollars! That’s it! But for those making over $603K, the average increase would be $93,000. So, the significant tax increases are only going to the 1 of the population (half millionaires and above)!
Enjoy all of those election night parties!
Monday, November 3, 2008
Election Day (and unrelated) Freebies!
I just cleared my calendar tomorrow morning so I can potentially wait in looooong lines to vote. Woohoo! And to reward myself, lots of fun freebies!
AM: Starbucks Tall Coffee
(Sidenote, I really like the Starbucks “What if we all cared enough?” messaging. Quite bold and poignant.)
PM: Ben & Jerry's SCoop from 5-8pm
Also, just because we’re in the spirit of Freebies, I noticed on Hungry Girl today that there were two pretty good free samples highlighted: Splenda's new Mist Sweetener and Dunkin Donuts free coffee.
I signed up to receive samples of both! Check it out...
AM: Starbucks Tall Coffee
(Sidenote, I really like the Starbucks “What if we all cared enough?” messaging. Quite bold and poignant.)
PM: Ben & Jerry's SCoop from 5-8pm
Also, just because we’re in the spirit of Freebies, I noticed on Hungry Girl today that there were two pretty good free samples highlighted: Splenda's new Mist Sweetener and Dunkin Donuts free coffee.
I signed up to receive samples of both! Check it out...
Net Worth for October
I updated my Networth from October – down again, to $39,303. My cash savings went up 1% but my retirement savings went down 5%. My 401(k) annual rate of return is actually down 12%. (The actual number of shares are +22 since September 1st. That’s nice at least!) Deep breath, long term investment, deep breath, long term investment. Plus, I depreciated my car another $500. I’m really not sure what this asset is worth, so I may let it hang tight for a little while until I know more.
I mean, it’s just not a fun time right now. But there is perspective to be had. I’m (we’re) doing what we can – we’re pretty well off all and all, and in five years these dips will be just one blip on the Net Worth journey.
I mean, it’s just not a fun time right now. But there is perspective to be had. I’m (we’re) doing what we can – we’re pretty well off all and all, and in five years these dips will be just one blip on the Net Worth journey.
Sunday, November 2, 2008
Profile on Peer to Peer Lending in the Credit Crisis
In the special “Education Life” insert in the Sunday Times today there was an article on alternative ways to find money for college “Loans in the Time of Facebook”. It sounds remarkably appealing, but I’m less familiar with “social” or “Peer to Peer Lending” as it’s called, so I checked out a few of the sites advertised.
Virginmoneyus.com: Manages money between family and friends. If I were so lucky, this would be a great way to authenticate a loan through a third-party site.
Fynanz.com: Peer to Peer lending with a 5% bonus for lenders. You can search by school or state as well so you can see where other students are seeking to borrow.
GreenNote.com: This was the most inspiring of the sites in my opinion. Positioned as receiving a loan from someone who believes in you. Low 6.8% Fixed Rate
Prosper.com: The most established of the PTP lending resources I’ve found with the tagline “Let’s Bank on Each Other.” Similar, personal interst small loans.
It seemed that the fundamental problem highlighted in the article about all of these sites were that there are quite obviously too many interested borrowers and not enough lenders. For me, too, I think it’s just the uncertainty in the market, but I guess I would be a little skittish using these less-established resources… of course, we’ll see how the loan process goes for me, and I may be reinvestigating.
Virginmoneyus.com: Manages money between family and friends. If I were so lucky, this would be a great way to authenticate a loan through a third-party site.
Fynanz.com: Peer to Peer lending with a 5% bonus for lenders. You can search by school or state as well so you can see where other students are seeking to borrow.
GreenNote.com: This was the most inspiring of the sites in my opinion. Positioned as receiving a loan from someone who believes in you. Low 6.8% Fixed Rate
Prosper.com: The most established of the PTP lending resources I’ve found with the tagline “Let’s Bank on Each Other.” Similar, personal interst small loans.
It seemed that the fundamental problem highlighted in the article about all of these sites were that there are quite obviously too many interested borrowers and not enough lenders. For me, too, I think it’s just the uncertainty in the market, but I guess I would be a little skittish using these less-established resources… of course, we’ll see how the loan process goes for me, and I may be reinvestigating.
Saturday, November 1, 2008
November Goals
Finally, finally, my grad school applications are IN! Now, my life can resume. What was my life before applications and essays? I can hardly remember… New November goals and priorities are what I need. For the most of November I will be in Argentina…. I’m devoting a good chunk of money from my normal budget to the trip, plus my travel fund savings, so hopefully that will be enough for a full and lively South American jaunt. Once I return, it will be back home for the holidays – plus I’m going to be transitioning to a new role within my company. So much change and so much up in the air, I hardly know where to start.
+ Reading, Writing & Creative Pursuits: This is #1. Devote real weekend time to organizing my current projects and reading more. (1 hour per weekend)
+ Provided the Animal Humane Society accepts my application and references, I’m excited to get started as an animal shelter volunteer! I’m shooting for twice a month.
+ Start reading the WSJ to prep for grad school interviews. There are enough unread copies floating around the office, so I’m going to try to do this the frugal way and not indulge in a subscription.
+ Meal Planning – We just made a Costco and grocery run today so our pantry is fairly well stocked. My goal is to spend $0 the rest of the month on food – so I will do some serious meal planning in the two weeks before and week after Argentina so we can spend our food budget on amazing steak dinners in Buenos Aires!
+ Create a detailed plan of all holiday gifts I want to buy this year and devise a buying strategy to keep costs low. More to come on this…
+ “Employee Badge” spending: Limit to $40 for month of November. I have been shocked at how high some of the totals have gotten the past few months! The monthly average has been $100 since July! $100 extra on food, coffees, etc. $40 should definitely be doable considering I won’t even be in the office half the month, but still, this will require a lot more bringing my lunch.
Friday, October 31, 2008
Are Monthly Savings Goals Best?
Just got to thinking...
Every month we do our round-up of the past month’s goals… check off how we did, and make new goals for the next month. And a lot of folks make long-term (annual) savings goals for themselves. But are these the right time horizons?
Studies have shown that people who think they’re saving for the next month think they’ll save LESS, but actually save MORE. And the people who think they’re saving for four months away think they’ll save MORE, but actually save LESS.
Implication: Short-term goals are more motivating, actionable, and set you up for success.
But what is the BEST short-term time horizon? Is it a month... or a week? Most of our financial transactions (housing, utilities, credit card payments, etc.) group up into a month’s time span, so that makes sense why we default to the month. But I’ve been noodling over whether it makes sense to have ANY shorter term goals as it relates to other expenses. After scanning my expenses, the only thing I’ve come up with is ‘eating out’ costs. The last time I tried to budget by week on my eating out costs I didn’t do very well. I tend to spend my budget in four big outings, rather than space them out over the month with more economical dinners. So maybe I could split my savings in two and try to budget over two week periods there.
Another area I haven’t really touched yet is the money I spend on food and other items at work when I use my employee badge. To date, I haven’t really worried too much about how much I’m spending on my card. It’s usually small dollar stuff on things like food. I could try to institute a weekly cap on my ‘badge spending.’ That would definitely work… although I don’t like the sound of it!
Every month we do our round-up of the past month’s goals… check off how we did, and make new goals for the next month. And a lot of folks make long-term (annual) savings goals for themselves. But are these the right time horizons?
Studies have shown that people who think they’re saving for the next month think they’ll save LESS, but actually save MORE. And the people who think they’re saving for four months away think they’ll save MORE, but actually save LESS.
Implication: Short-term goals are more motivating, actionable, and set you up for success.
But what is the BEST short-term time horizon? Is it a month... or a week? Most of our financial transactions (housing, utilities, credit card payments, etc.) group up into a month’s time span, so that makes sense why we default to the month. But I’ve been noodling over whether it makes sense to have ANY shorter term goals as it relates to other expenses. After scanning my expenses, the only thing I’ve come up with is ‘eating out’ costs. The last time I tried to budget by week on my eating out costs I didn’t do very well. I tend to spend my budget in four big outings, rather than space them out over the month with more economical dinners. So maybe I could split my savings in two and try to budget over two week periods there.
Another area I haven’t really touched yet is the money I spend on food and other items at work when I use my employee badge. To date, I haven’t really worried too much about how much I’m spending on my card. It’s usually small dollar stuff on things like food. I could try to institute a weekly cap on my ‘badge spending.’ That would definitely work… although I don’t like the sound of it!
Thursday, October 30, 2008
It's a miracle.
I actually kept my October Goals. They were....
Wrap up all of my Business School applications: Check. They'er all in. Note the uptick in posts and sanity.
30min of exercise 5 days a week: Check! The Guy and I have been on a rampage to get fit for Argentina so we're in shape for hiking. It all started when we went for a nice fall run together and we had to stop to walk every 5 minutes. Neither of us are overweight, but we could just use some discipline. So, we decided to do something about it. We started Weight Watchers and we got a personal training session at our gym (surprisingly economical for a joint session: $70 total. He picked up the tab for this one, and I'm getting the next one when we want to refresh our routine). We've been sticking to it for the most part. I've gotten off track a bit on keeping track of my Weight Watchers 'points' (wow, that's hard...) but I've stuck to the fitness regime.
-Keep to my budget to the dime: Yep! As of now, I'm $5 under budget! What helped? My "no spend" days skyrocketed this month! It really makes a difference when you just stay home, eat at home, and don't find excuses to go out and buy things... even small things, like the alluring weekend Target run or evening stop-in for "one" drink.
Woohoo..... I'm actually motivated to start thinking about my November goals!
Wrap up all of my Business School applications: Check. They'er all in. Note the uptick in posts and sanity.
30min of exercise 5 days a week: Check! The Guy and I have been on a rampage to get fit for Argentina so we're in shape for hiking. It all started when we went for a nice fall run together and we had to stop to walk every 5 minutes. Neither of us are overweight, but we could just use some discipline. So, we decided to do something about it. We started Weight Watchers and we got a personal training session at our gym (surprisingly economical for a joint session: $70 total. He picked up the tab for this one, and I'm getting the next one when we want to refresh our routine). We've been sticking to it for the most part. I've gotten off track a bit on keeping track of my Weight Watchers 'points' (wow, that's hard...) but I've stuck to the fitness regime.
-Keep to my budget to the dime: Yep! As of now, I'm $5 under budget! What helped? My "no spend" days skyrocketed this month! It really makes a difference when you just stay home, eat at home, and don't find excuses to go out and buy things... even small things, like the alluring weekend Target run or evening stop-in for "one" drink.
Woohoo..... I'm actually motivated to start thinking about my November goals!
Wednesday, October 29, 2008
Grad School Financial Aid Action Plan... and GO!
After culling all of the best ideas from fellow pf bloggers, I’ve devised an action plan for financial aid. Some good ‘ole generic discipline is in order.
+ Reference Websites of 3 Schools I’m applying to…. CHECK.
+ Investigate two outside scholarships from Columbia…. THIS WEEKEND.
+ Subscribe to all Financial Aid blogs/updates….. NEXT WEEK.
+ Cull list of all potential scholarships / sources of funds…. NEXT 3 WEEKS.
+ Work on & Complete 1 Scholarship Fund etc. per 3-wks…. BEG. DEC. 1
+ Meet with Financial Adviser… MID-DEC.
Later… fill out a FAFSA form, fill out a CSS Profile Application, i.e. doing all the fun government stuff.
Any other big advice or secret hints?
+ Reference Websites of 3 Schools I’m applying to…. CHECK.
+ Investigate two outside scholarships from Columbia…. THIS WEEKEND.
+ Subscribe to all Financial Aid blogs/updates….. NEXT WEEK.
+ Cull list of all potential scholarships / sources of funds…. NEXT 3 WEEKS.
+ Work on & Complete 1 Scholarship Fund etc. per 3-wks…. BEG. DEC. 1
+ Meet with Financial Adviser… MID-DEC.
Later… fill out a FAFSA form, fill out a CSS Profile Application, i.e. doing all the fun government stuff.
Any other big advice or secret hints?
Tuesday, October 28, 2008
October Book Review: Gilead
I haven’t read much lately. I just realized I haven’t had one of these recaps in quite awhile. But I finally finished Gilead. I warmed slowly to this book. At first it seemed like exactly what it was billed as… the ramblings of an old Iowa preacher. Having been raised in a pretty conservative family (my dad is the head deacon at their Southern Baptist church), I am generally pretty skeptical of the truth and beauty of 'spiritual writings'. It’s just become too familiar (stale) for me through the years. But I was gradually and reticently moved by this book and these characters. Even the Guy enjoyed the passages I read aloud to him (he’s Jewish)… because they transcend anyone’s religion and say a lot about the awe and wonder of simply being human, and what that means. It is a book that makes you feel your very delicate and precious mortality.
I think my best endorsement would be to re-write this passage:
“You didn’t wait until this morning to realize that I am old. I don’t know what it was I saw, and I’m not going to think about it anymore. It didn’t set well with me…
If I live, I’ll vote for Eisenhower.
How I wish you could have known me in my strength.”
I think my best endorsement would be to re-write this passage:
“You didn’t wait until this morning to realize that I am old. I don’t know what it was I saw, and I’m not going to think about it anymore. It didn’t set well with me…
If I live, I’ll vote for Eisenhower.
How I wish you could have known me in my strength.”
Sunday, October 26, 2008
Future Financing Rules
In case you haven’t noticed, it’s not the grandest time to start a business. But because the Guy and I are always dreaming up new business plans, this article on venture capital caught my eye. Reading things like this makes me realize how long my to-do list is to even be able to articulate what a business plan would look like. The basics of the capital structure are crucial, I’m learning. A few guiding principles I took away:
1) Ensure that you maintain control from investors with a controlling stake.
2) Even Institutional investors may demand a different CEO, even without a majority stake – so be careful about terms.
3) Start-up capital is precious. Do not deplete working-capital reserves until the venture is kicking off positive cash-flow.
In essence, watch your (company’s) back and your bottom line! I guess I’ll just tuck this one away for now….
1) Ensure that you maintain control from investors with a controlling stake.
2) Even Institutional investors may demand a different CEO, even without a majority stake – so be careful about terms.
3) Start-up capital is precious. Do not deplete working-capital reserves until the venture is kicking off positive cash-flow.
In essence, watch your (company’s) back and your bottom line! I guess I’ll just tuck this one away for now….
Thursday, October 23, 2008
Why is enrolling in health care benefits so damn confusing?
I finally re-enrolled in the same health plan I had last year… but I still don’t feel completely confident in my choice. Mostly because I still don’t feel like a very savvy consumer of my benefits. I work for a company that has great, comprehensive health care, so I can supposedly breathe easy.
What I did differently: Upped my Health Care Spending Account $300 (I didn’t fund this at all last year). That means my monthly premium will go up $25, but hopefully I can maintain my very minimal out of pocket costs. For me, I would much rather stagger my spending in a predictable way. Nothing worse for me than having an unexpected medical bill dropped into my monthly budget.
The Deductible Details: My effective deductible is $600 annually. I technically must pay full-sticker for health care until this deductible is met. High, but reasonable for my annual budget, in my view. Then, I pay copays for everything afterwards - $15 for a doctor visit or prescription, etc. etc. Then in the details there is a different figure: Maximum Out of Pocket Costs: $2,600. I guess that means there is a $2,000 cap on all copays that I would pay in the course of a year over my deductible.
What I don’t understand: The impact of my Health Care Spending Account on my taxes. I get that these dollars are tax-free. But I really don’t understand how it effects my April tax return on a dollar basis.
My Health: Being in my mid-twenties and a relatively healthy person with no chronic conditions, I have to say my health is good. But I’ve had a few issues that I could see escalating. I’ve had some eye issues that don’t seem to be getting better, and I’m also having some semi-serious medical testing conducted this week. I also decided to get the HPV vaccine Gardasil this year.
What I’m not sure about: Under this Health Plan last year, due to employer pre-tax contributions in my personal health account, I never paid any significant out of pocket costs. Once I had some pricey dental work done, which was a chunk, but I knew that wasn’t covered in my insurance – so it was separate. I guess what I worry about is that this year, I will start really nicking into that $600 – and I’m guessing that would happen in several high-dollar due-all-at-once incidences. That worries me… but I still think this is the best plan.
Sigh. Why is Open Enrollment for Health Benefits so damn confusing?! I’m linking to an article on tips for evaluating health care coverage. It is very basic, but does give you a good checklist of things to think through as you decide.
What I did differently: Upped my Health Care Spending Account $300 (I didn’t fund this at all last year). That means my monthly premium will go up $25, but hopefully I can maintain my very minimal out of pocket costs. For me, I would much rather stagger my spending in a predictable way. Nothing worse for me than having an unexpected medical bill dropped into my monthly budget.
The Deductible Details: My effective deductible is $600 annually. I technically must pay full-sticker for health care until this deductible is met. High, but reasonable for my annual budget, in my view. Then, I pay copays for everything afterwards - $15 for a doctor visit or prescription, etc. etc. Then in the details there is a different figure: Maximum Out of Pocket Costs: $2,600. I guess that means there is a $2,000 cap on all copays that I would pay in the course of a year over my deductible.
What I don’t understand: The impact of my Health Care Spending Account on my taxes. I get that these dollars are tax-free. But I really don’t understand how it effects my April tax return on a dollar basis.
My Health: Being in my mid-twenties and a relatively healthy person with no chronic conditions, I have to say my health is good. But I’ve had a few issues that I could see escalating. I’ve had some eye issues that don’t seem to be getting better, and I’m also having some semi-serious medical testing conducted this week. I also decided to get the HPV vaccine Gardasil this year.
What I’m not sure about: Under this Health Plan last year, due to employer pre-tax contributions in my personal health account, I never paid any significant out of pocket costs. Once I had some pricey dental work done, which was a chunk, but I knew that wasn’t covered in my insurance – so it was separate. I guess what I worry about is that this year, I will start really nicking into that $600 – and I’m guessing that would happen in several high-dollar due-all-at-once incidences. That worries me… but I still think this is the best plan.
Sigh. Why is Open Enrollment for Health Benefits so damn confusing?! I’m linking to an article on tips for evaluating health care coverage. It is very basic, but does give you a good checklist of things to think through as you decide.
Wednesday, October 22, 2008
It's All the Same Money
Even though I have specific goals on what I want to save for, and that motivates me, I really understand that no matter what you nickname the ING account or what you’ve purposed certain funds for, it’s all the same money. Up until this point, I haven’t had my emergency savings fund in a separate account – it’s generally the sum of my Money Market account as well as what I have in my account with my employer’s credit union. I know it’s not ideal, but that’s just how it worked out initially. Now – whether it’s the financial chaos or what I wake up to on CNN everyday – I’ve decided I have to reach my Emergency Fund goal as soon as possible, that’s the most important priority. So I’m going to work towards getting my B-school savings account up to $9,000 so that I can call that my emergency savings fund, finally meet this goal, and keep moving forward with my other goals. Sadly, I don’t think I can do it without seriously ratcheting up my savings. As it is I have $4,800 invested in b-school savings, I’m saving about $175 a month all told, including interest and direct deposits, but if I ratchet that up to $350 a month, I could add another $1500 before the end of the year. And, I’m selling a bunch of my stuff on Craigslist because I’m moving in with the Guy…. So I’m committing that all of that money will go to the Emergency fund.
Which will all feel great….
Which will all feel great….
Sunday, October 12, 2008
Vesting 401(k) Quandary with soon-to-be "Former" Company
Doh. Truly a Homer Simpson moment for me today. When I was checking my company-held 401(k) balance the other day, I suddenly had what shouldn’t have been a shocking revelation. There were two little lines there.
Current Balance: $12,765.66
Vested Balance: $8,658.28
Suddenly the financial-speak scales fell off and I saw what it meant for me:
Vested Balance: my money
Current Balance: NOT my money YET
Somewhere the HR aside of a “5-year-vest for company matching funds” came trickling back into my ear. Oops. I do plan on leaving this company when I go to business school. And that will mean walking away from, at this point, $$4,107 of what would have been my money. Certainly not something that would sway my decision. In fact, because my company will sponsor me for business school if I so choose to come back for three years afterwards, I will in fact, probably be walking away from $10,000+ dollars (when I subtract the difference I’d probably get in financial aid anyway). But I will never let money make choices for me that could make me much less happy in the long run. And that’s the point of money anyway, right? Allowing you the freedom to do the things that make you happy.
Now that I’m on the subject though, I’m wondering if, knowing now that I won’t continue with the company (I wasn’t sure of this when I first enrolled in the 401(k) plan of course), if I should lower my contribution on my work 401(k) and put more money into the Roth. I didn’t invest the maximum contribution last year, although I might come closer this year. Seems like a reasonable thing to do… just to make sure I’ll contact my advisor. But if anyone has made a similar choice – please leave me a comment!
Current Balance: $12,765.66
Vested Balance: $8,658.28
Suddenly the financial-speak scales fell off and I saw what it meant for me:
Vested Balance: my money
Current Balance: NOT my money YET
Somewhere the HR aside of a “5-year-vest for company matching funds” came trickling back into my ear. Oops. I do plan on leaving this company when I go to business school. And that will mean walking away from, at this point, $$4,107 of what would have been my money. Certainly not something that would sway my decision. In fact, because my company will sponsor me for business school if I so choose to come back for three years afterwards, I will in fact, probably be walking away from $10,000+ dollars (when I subtract the difference I’d probably get in financial aid anyway). But I will never let money make choices for me that could make me much less happy in the long run. And that’s the point of money anyway, right? Allowing you the freedom to do the things that make you happy.
Now that I’m on the subject though, I’m wondering if, knowing now that I won’t continue with the company (I wasn’t sure of this when I first enrolled in the 401(k) plan of course), if I should lower my contribution on my work 401(k) and put more money into the Roth. I didn’t invest the maximum contribution last year, although I might come closer this year. Seems like a reasonable thing to do… just to make sure I’ll contact my advisor. But if anyone has made a similar choice – please leave me a comment!
Saturday, October 11, 2008
A Different Kind of Risk Aversion
Like many of you also in your twenties, I've been watching the DJIA plummet with concern, but not panic. All of my money is staying right where it is in my Roth. And if I have extra dollars, I'll be plunking more in there to lock in these bargain basement prices for index funds. But, I think these kind of tumultuous times have made me realize I'm much less tolerant of risk in other areas of my life.
For example, an opportunity just came up for me to leave my current safe, bottom rung of the ladder, corporate job to do something I really care about with a social enterprise on another continent. Despite the perfect fit, these times make it too scary... instead I'm choosing the safer* step of staying here in the States with a Guy I love, continuing to apply to business school, and trying to get excited about new things in my current job, rather than risking it abroad.
I think it IS the right decision for me, right now. But I wonder if I'd made a different decision were the market not disintegrating...
*Looks like getting an MBA is not the safest option right now either: NYTimes: Credit Crisis is Bad News for MBA Students
For example, an opportunity just came up for me to leave my current safe, bottom rung of the ladder, corporate job to do something I really care about with a social enterprise on another continent. Despite the perfect fit, these times make it too scary... instead I'm choosing the safer* step of staying here in the States with a Guy I love, continuing to apply to business school, and trying to get excited about new things in my current job, rather than risking it abroad.
I think it IS the right decision for me, right now. But I wonder if I'd made a different decision were the market not disintegrating...
*Looks like getting an MBA is not the safest option right now either: NYTimes: Credit Crisis is Bad News for MBA Students
Friday, October 10, 2008
Moving-In Landmines
So the Guy and I are thinking about moving in together.
Something that I have wanted and been ready for – for months and months. I never spend time in my place as it is. I get so frustrated shuttling clothes back and forth. And now I can help him pay his mortgage rather than spending a thousand dollars in rent for a place I sleep in once a month. All sounds good, right? But I know there are landmines I’m not seeing. Those of you who made this choice fairly recently – any warnings or advice before I sell all my stuff? The Guy and I definitely do not share the same sense of frugality, but we are very open with each other, and I think we are comfortable with some push and pull. He likes it when I help him grow and learn about his finances, and I know when to back off and just let him be him.
I think. Help… What are those moving-in landmines you don't see coming?
Something that I have wanted and been ready for – for months and months. I never spend time in my place as it is. I get so frustrated shuttling clothes back and forth. And now I can help him pay his mortgage rather than spending a thousand dollars in rent for a place I sleep in once a month. All sounds good, right? But I know there are landmines I’m not seeing. Those of you who made this choice fairly recently – any warnings or advice before I sell all my stuff? The Guy and I definitely do not share the same sense of frugality, but we are very open with each other, and I think we are comfortable with some push and pull. He likes it when I help him grow and learn about his finances, and I know when to back off and just let him be him.
I think. Help… What are those moving-in landmines you don't see coming?
Thursday, October 2, 2008
September / October Goals Round-Up
My Emergency Savings fund just keeps slipping… but I am making progress on my travel fund and business-school goals. Argentina is only 6 weeks away, so hopefully I’ll have enough squirreled away at the end of next month so that I won’t feel a major dent afterwards. I won’t make the $2,500 goal, but I have been buying flights and travel in advance, so hopefully I won’t need the whole sum to go.
September Goals:
-finish planning Argentina trip: definitely, almost everything is done and booked!
-yoga everyday of my membership: Nope, only about half of the days did I make it.
-increase no-spend days: I only had three no-spend days in September, so I guess not… but committed to picking this up in October.
October Goals
-Wrap up all of my Business School applications
-30min of exercise 5 days a week
-Keep to my budget to the dime.
September Goals:
-finish planning Argentina trip: definitely, almost everything is done and booked!
-yoga everyday of my membership: Nope, only about half of the days did I make it.
-increase no-spend days: I only had three no-spend days in September, so I guess not… but committed to picking this up in October.
October Goals
-Wrap up all of my Business School applications
-30min of exercise 5 days a week
-Keep to my budget to the dime.
Tuesday, September 30, 2008
The Perfect Storm
I haven’t been writing a lot lately. But suffice it to say, that along with everyone else, I hold my breath before I flip on CNN in the morning. What will have gone broke and broken in the night? Who knows. It’s hard to even stay engaged or to know what to do. It definitely is the “perfect storm” of investor anxiety. In the end, I am still resolute to stay still in the 401(k) plan I have as well as my Roth. So far, I haven’t seen anything get too far off… and I still have decades before I’d be retiring. So I’m staying put. But it’s still pretty satisfying to peruse advice and resources on fortifying your 401(k) – like this kit of articles from Forbes. Just a nice triple check to make sure you have the same piece of mind.
Tuesday, September 23, 2008
United Way Charitable Giving
This year I’m begrudgingly accepting the coordinator position for my company’s United Way campaign, and this morning was the rally. So this means I’ll be leading a giving campaign for 200+ people. The giving levels are pretty good, actually. As an incentive, they give you a free vacation day if you give at one of two levels:
The Love-Share Level – Give .7% of you income. For me this would be about $20 bucks deducted from each paycheck, or $40 a month. I think this might be a little out of my reach, right now.
The Goal-Share Level – Give 12% more than you gave last year, and also at least .5% of your income. Which for me, would be $12 out of my paycheck or $24 bucks a month.
This is certainly more doable. But I like the flexibility to give to other things throughout the year – my coworkers cancer research walk, the Alzheimer’s fund around Christmas in memory of my grandmother. More money to the Obama campaign in the next month, for sure. I don’t like having to say no to giving down the road. So I decided I would give $8 per paycheck, or $16 a month, for a total of around $200. And in the end, this is actually double what I gave last year, so I still feel good about increasing my giving levels as my income grows.
The Love-Share Level – Give .7% of you income. For me this would be about $20 bucks deducted from each paycheck, or $40 a month. I think this might be a little out of my reach, right now.
The Goal-Share Level – Give 12% more than you gave last year, and also at least .5% of your income. Which for me, would be $12 out of my paycheck or $24 bucks a month.
This is certainly more doable. But I like the flexibility to give to other things throughout the year – my coworkers cancer research walk, the Alzheimer’s fund around Christmas in memory of my grandmother. More money to the Obama campaign in the next month, for sure. I don’t like having to say no to giving down the road. So I decided I would give $8 per paycheck, or $16 a month, for a total of around $200. And in the end, this is actually double what I gave last year, so I still feel good about increasing my giving levels as my income grows.
Sunday, September 21, 2008
I have "Good" Credit
Thanks to the tip-off from Broke Grad Student, I finally found a way to get my credit score for free! Credit Karma . My Credit Score: 748 – that puts me in the 78th percentile of the national population and my credit would be described as “Good”. For being in my early twenties, I’m pretty satisfied with that!
Saturday, September 20, 2008
Love Saturdays...
Ahh, i love saturdays. specifically nice end of summer / beginning of fall saturdays. woke up and ran to the farmers market with $4 in my pocket. Walked back with a large coffee, and an enormous heirloom tomato for my lunch with a dollar to spare. Went to an art sale to browse and then came back home to make an angel food cake and cut up strawberries to celebrate the Guy's return (he's been out of town for a few days). Now it's another three hours of essay writing for my b-school applications. FUN!
Thursday, September 11, 2008
Life Updates - Argentina & Grad School Apps
We had a brain trust session last night - with myself, the Guy and the other couple we're going to Argentina with this Fall. And I think we have the perfect plan... it seems like we're on the same page with expenses too, which is nice. The only problem - most of the hotels we're trying to find are already booked. Guess it's a popular trip for November.... we'll keep trying! Here's the itinerary for lodging and entertainment:
Buenos Aires - renting an apartment, $200/night, split between 4 people
A ferry to Uruguay - $40
Boca Juniors soccer game - $100
Flight to Mendoza $200
Staying at a winery $150/night, split between 2 people
Trek into the Andes on a guided tour $250
Overnight bus to Iguazu Falls $120 (also saves a night at a hotel)
Hotel in Iguazu Falls - FREE, on Starwood points!
So there's some splurges and some skrimping. And that of course doesn't count all of the food and fine wine I'll be tasting throughout the week. Now all I have to do before I go is finish all of my business school essays and applications. ONE MONTH LEFT. Scary stuff!
Buenos Aires - renting an apartment, $200/night, split between 4 people
A ferry to Uruguay - $40
Boca Juniors soccer game - $100
Flight to Mendoza $200
Staying at a winery $150/night, split between 2 people
Trek into the Andes on a guided tour $250
Overnight bus to Iguazu Falls $120 (also saves a night at a hotel)
Hotel in Iguazu Falls - FREE, on Starwood points!
So there's some splurges and some skrimping. And that of course doesn't count all of the food and fine wine I'll be tasting throughout the week. Now all I have to do before I go is finish all of my business school essays and applications. ONE MONTH LEFT. Scary stuff!
Wednesday, September 10, 2008
Hungry Girl Recipe Review.
You might recall I got the Hungry Girl cookbook, and was determined to make a lot of recipes. I’m now weighing in on everything I made – there were definite winners and losers.
Winners:
Bake-tastic Butternut Squash Fries – First of all, amazing. They tasted just like fries. Better than fries, because there was so much more flavor. Crispy with lots of sea salt, they were good enough to serve to company. (I can't believe I just wrote that. Who has "company"? Excuse the 1950s reference.) And, so easy. You just cut up the squash in the shape of fries, bake lying flat for forty minutes at 425. The hardest part is wielding the knife on a big squash.
Crazy Good Turkey Taco Meatloaf – This one came out of the stove looking pretty sketchy. But it tasted awesome. I fixed this for the Guy – who doesn’t always trust my cooking – and he was impressed.
Loser:
Death by Chocolate Cupcakes – The whole gimmick here is that these were supposed to be 100-calorie cupcakes. They might have worked better as a very light sponge cake. As it was, the texture was just horrible – weird, somewhere between custard and chocolate angel food cake. If you’re going to spend 100 calories on something, so many more worthwhile indulgences.
Unmemorable:
Rockin Tuna Melt – With all of the substitutions, this was hardly a tuna melt. But a fine sandwich for those days when I get home late from work.
Choptastic Veggie Salad – Really good, just nothing too innovative.
I do enjoy Hungry Girl’s recipes usually since they are pretty down-to-earth. And you can be frugal about them. You don’t have to go buy crazy ingredients, and they all taste like real FOOD. Any other favorite Hungry Girl recipes I should try? Otherwise, I'm shelving this one for awhile.
Winners:
Bake-tastic Butternut Squash Fries – First of all, amazing. They tasted just like fries. Better than fries, because there was so much more flavor. Crispy with lots of sea salt, they were good enough to serve to company. (I can't believe I just wrote that. Who has "company"? Excuse the 1950s reference.) And, so easy. You just cut up the squash in the shape of fries, bake lying flat for forty minutes at 425. The hardest part is wielding the knife on a big squash.
Crazy Good Turkey Taco Meatloaf – This one came out of the stove looking pretty sketchy. But it tasted awesome. I fixed this for the Guy – who doesn’t always trust my cooking – and he was impressed.
Loser:
Death by Chocolate Cupcakes – The whole gimmick here is that these were supposed to be 100-calorie cupcakes. They might have worked better as a very light sponge cake. As it was, the texture was just horrible – weird, somewhere between custard and chocolate angel food cake. If you’re going to spend 100 calories on something, so many more worthwhile indulgences.
Unmemorable:
Rockin Tuna Melt – With all of the substitutions, this was hardly a tuna melt. But a fine sandwich for those days when I get home late from work.
Choptastic Veggie Salad – Really good, just nothing too innovative.
I do enjoy Hungry Girl’s recipes usually since they are pretty down-to-earth. And you can be frugal about them. You don’t have to go buy crazy ingredients, and they all taste like real FOOD. Any other favorite Hungry Girl recipes I should try? Otherwise, I'm shelving this one for awhile.
Monday, September 8, 2008
What Does Henry Kravis Want? & What Can the WSJ Do for You?
Since grad school interviews are around the corner, I know I need to get back into reading the Wall Street Journal everyday again. A one-year subscription came with my GMAT course last year, and I loved it. Now I’m going to have to shell out $89 for the print subscription. If anyone else has faced a similar challenge of keeping up with business news and forcing yourself to stretch your interest and knowledge to a different level – what are good resources? Sometimes I find that checking an online website everyday is too easy to skip. A physical paper works for me. But if there are other blog type offerings that could accomplish the same thing, I’d love to be turned onto them!
Part of the reason I started this blog in the first place was to learn more about managing money and the investing world, so once I break down, I’m going to try to post commentary here on articles I think are good at helping the uninitiated absorb these issues. Starting with a NYT article yesterday: “What does Henry Kravis Want?” on the initial public offering of the private equity firm KKR. I liked it because it was a story, and recognized the businesses involved as such – entities run by real people, executives with varying motivations. I finally better understood what exactly a “leveraged buyout” looks like, and it made the drama of company control vs. steady financing seem more real. Happy Reading… (and imagining your life as one of these private equity big wigs, hobnobbing at the Olympics and above Central Park views, as I found myself daydreaming).
Part of the reason I started this blog in the first place was to learn more about managing money and the investing world, so once I break down, I’m going to try to post commentary here on articles I think are good at helping the uninitiated absorb these issues. Starting with a NYT article yesterday: “What does Henry Kravis Want?” on the initial public offering of the private equity firm KKR. I liked it because it was a story, and recognized the businesses involved as such – entities run by real people, executives with varying motivations. I finally better understood what exactly a “leveraged buyout” looks like, and it made the drama of company control vs. steady financing seem more real. Happy Reading… (and imagining your life as one of these private equity big wigs, hobnobbing at the Olympics and above Central Park views, as I found myself daydreaming).
Thursday, September 4, 2008
September Goals
___ Finish planning Argentina trip: The plan is to book remaining tours and travel out of my monthly budget and then use what I’ve been saving in my travel account for fun and food expenses once I leave.
___ Yoga everyday. I tried to cancel my yoga studio membership for the months leading up to my trip, but as it turns out, I have to give thirty days notice to cancel. Ouch for not reading the fine print. Since I haven’t been going to yoga the past few weeks with the anticipation that I’d be seeing that $95 monthly charge, I’m now going to go every single day through Sept. 17th, to take advantage of the waning weeks of membership. So far, so good.
___ Increase the amount of "no-spend days" from August. I picked up on the idea of “No Spend Days” from Always the Planner – the idea being to increase the number of days when you don’t spend a single cent on anything. Obviously doesn’t work if you’re just saving up for crazy splurge days, but in general I like the concept. It’s a nice reminder to yourself that you can do plenty and live fully not spending dollars. From now on, I’ll be tracking this along with my budget and see if I can ramp it up.
___ Yoga everyday. I tried to cancel my yoga studio membership for the months leading up to my trip, but as it turns out, I have to give thirty days notice to cancel. Ouch for not reading the fine print. Since I haven’t been going to yoga the past few weeks with the anticipation that I’d be seeing that $95 monthly charge, I’m now going to go every single day through Sept. 17th, to take advantage of the waning weeks of membership. So far, so good.
___ Increase the amount of "no-spend days" from August. I picked up on the idea of “No Spend Days” from Always the Planner – the idea being to increase the number of days when you don’t spend a single cent on anything. Obviously doesn’t work if you’re just saving up for crazy splurge days, but in general I like the concept. It’s a nice reminder to yourself that you can do plenty and live fully not spending dollars. From now on, I’ll be tracking this along with my budget and see if I can ramp it up.
Monday, September 1, 2008
A First.
Guess it had to happen sometime. My networth went down for the first time since I started this blog. Only a $300 dip, less than 1%, and yet that itches a bit... On the plus side, retirement savings went up a bit (20 shares). And I feel more organized and on track, as mentally-prepared as ever. Guess that's enough :)
Have a lovely labor day.
Have a lovely labor day.
Friday, August 29, 2008
August Budget / Goals Round-Up
In August I went over my budget by $15. What hurt me were mainly gifts for others, so I’m kind of okay with that. I filled up the Guy’s tank and bought gas for some friends when they took us up north to their cabin for a weekend and bought some gifts for friends who are writing business school recommendations for me. Otherwise, it was the usual suspects – I went $75 over my clothing budget and way over on expensive dinners with the Guy.
Oops, plus I didn’t even count the fact that I finally booked my flight to ARGENTINA! Which was actually quite a steal at $1100. We’re leaving mid- November so it will be late Spring there. Any recommendations for the following cities: Buenos Aires and Mendoza, Argentina; Colonia, Uruguay; Santiago, Chile? Any and all will be appreciated. The plan is to see the sights in BA, do the wine region for a bit of indulgence mid-trip and then do some hiking and outdoorsy stuff in between Mendoza and Chile to wrap up.
Oh, we also have half a day in Miami on the way down. Anyone save the last 36hrs in Miami column or have cheapish recommendations for what to do besides South Beach?
Oops, plus I didn’t even count the fact that I finally booked my flight to ARGENTINA! Which was actually quite a steal at $1100. We’re leaving mid- November so it will be late Spring there. Any recommendations for the following cities: Buenos Aires and Mendoza, Argentina; Colonia, Uruguay; Santiago, Chile? Any and all will be appreciated. The plan is to see the sights in BA, do the wine region for a bit of indulgence mid-trip and then do some hiking and outdoorsy stuff in between Mendoza and Chile to wrap up.
Oh, we also have half a day in Miami on the way down. Anyone save the last 36hrs in Miami column or have cheapish recommendations for what to do besides South Beach?
Thursday, August 28, 2008
August Read/Bought Review
I bought no books this month! Although I’ve been very tempted by How Fiction Works, written by a former professor of mine, and I was given this book as a gift at my company: Team of Rivals: The Political Genius of Abraham Lincoln, which is 944 Pages long, and which will take me some time to even develop enough interest to peruse the introduction.
I did read three from my own bookshelf:
How Soccer Explains the World (An Unlikely theory of globalization) by Franklin Foer –If Foer had titled his book differently (perhaps “Soccer Teams I Like and Random Observations about their Country of Play” or “On Hooliganism”), I might have liked it better. As it is, soccer doesn’t explain anything. Rather soccer hooligans, are affected by the same world factors as international businessmen and politicians. Yet they resort to horrific gang violence.
Bel Canto by Ann Patchet – A mesmerizing, truly lyrical book. I was entranced. I haven't read a piece of fiction this good in awhile. This is also a book I would recommend to someone who doesn’t read a lot of fiction. It’s just that penetrating, and it’s a good story that happens to also have beautiful prose.
Gilead by Marilynne Robinson – This book finally got enough book club action among my acquaintances that I finally had to pull it off my unread bookshelf. I recently committed – like The Writer’s Coin – to read only the books I own before buying any new ones, and I separated everything into separate bookshelves to help me track my progress.
I did read three from my own bookshelf:
How Soccer Explains the World (An Unlikely theory of globalization) by Franklin Foer –If Foer had titled his book differently (perhaps “Soccer Teams I Like and Random Observations about their Country of Play” or “On Hooliganism”), I might have liked it better. As it is, soccer doesn’t explain anything. Rather soccer hooligans, are affected by the same world factors as international businessmen and politicians. Yet they resort to horrific gang violence.
Bel Canto by Ann Patchet – A mesmerizing, truly lyrical book. I was entranced. I haven't read a piece of fiction this good in awhile. This is also a book I would recommend to someone who doesn’t read a lot of fiction. It’s just that penetrating, and it’s a good story that happens to also have beautiful prose.
Gilead by Marilynne Robinson – This book finally got enough book club action among my acquaintances that I finally had to pull it off my unread bookshelf. I recently committed – like The Writer’s Coin – to read only the books I own before buying any new ones, and I separated everything into separate bookshelves to help me track my progress.
Monday, August 25, 2008
Blogging Hiatus.
I'm taking a bit of a hiatus from blogging as you can see... but for a good reason... working on my b-school essays.
Status...
Stanford: 3 of 4 essay drafts complete
Harvard: 1 of 4 essay drafts complete
Columbia: 0 of 3 essay drafts complete
Deadlines... 44 days away.
Status...
Stanford: 3 of 4 essay drafts complete
Harvard: 1 of 4 essay drafts complete
Columbia: 0 of 3 essay drafts complete
Deadlines... 44 days away.
Tuesday, August 19, 2008
Financial "Attribution Error"
As mentioned previously, I recently went through some training at work through HR, and we spent a good deal of time talking about attribution error. This is the very human mistake we make when we are more permissive of our own behaviors and actions than we are of others. For instance, if I’m late to work, it’s because of the traffic that I ran into – completely out of my control! But if Jane is late to work, it’s because she’s careless and didn’t plan ahead. In other words, [from Wikipedia, people have an unjustified tendency to assume that a person's actions depend on what "kind" of person that person is rather than on the social and environmental forces influencing the person.]
I’ve heard a lot of people talk about the self-righteousness of some personal finance bloggers, and I think the idea of attribution error plays a definite role. I can more easily rationalize my spending habits or my “wants” vs. “needs,” and it’s a lot easier for me to “be objective” about others financial decisions. In reality, this objectivity might be more plainly called misjudgment as it’s probably not taking in all of the external factors you would if you were evaluating yourself.
I’ve heard a lot of people talk about the self-righteousness of some personal finance bloggers, and I think the idea of attribution error plays a definite role. I can more easily rationalize my spending habits or my “wants” vs. “needs,” and it’s a lot easier for me to “be objective” about others financial decisions. In reality, this objectivity might be more plainly called misjudgment as it’s probably not taking in all of the external factors you would if you were evaluating yourself.
Monday, August 18, 2008
Financial Definitions: Funds = FUN.
Considering that I’m headed to business school in the next few years, I feel I should be doing the baseline self-education to figure out the finance and investment-related lingo that I’m frankly less interested in studying, but want to be able to navigate as a student and investor someday. This is a post I admit to being self-conscious about since half my graduated classmates have jobs at hedge funds and i-banks and have far more sophisticated knowledge than I, lowly bookish English major. These definitions below start broad and go specific.
exchange-traded-funds: investment vehicles traded like stocks, a fund is roughly the net value of all the assets included in the fund; most funds track to a certain index, like the S&P500
actively-managed exchange-traded-funds: in this type of fund, an investor can actively manage the assets within it, they can focus on market inefficiencies, and try to find the value assets versus passively tracking to an index in which the fund would likely be holding a mix of growth and value stocks
mutual funds / open-end funds: a collective investment of assets, equity funds are the most common type; in the US they are open end funds, which means they can issue and redeem shares at any time; most of these funds are actively managed
closed-end funds: collective investment with only a limited number of shares
hedge funds: a private, largely unregulated pool of capital; charges both a performance fee and a management fee; I’m not going to pretend to understand why yet, but because of exemptions that don’t apply to mutual or other funds, hedge funds can typically invest in more complicated, risky investments than a public fund can (like short selling, futures, swaps and other forms of leverage)
exchange-traded-funds: investment vehicles traded like stocks, a fund is roughly the net value of all the assets included in the fund; most funds track to a certain index, like the S&P500
actively-managed exchange-traded-funds: in this type of fund, an investor can actively manage the assets within it, they can focus on market inefficiencies, and try to find the value assets versus passively tracking to an index in which the fund would likely be holding a mix of growth and value stocks
mutual funds / open-end funds: a collective investment of assets, equity funds are the most common type; in the US they are open end funds, which means they can issue and redeem shares at any time; most of these funds are actively managed
closed-end funds: collective investment with only a limited number of shares
hedge funds: a private, largely unregulated pool of capital; charges both a performance fee and a management fee; I’m not going to pretend to understand why yet, but because of exemptions that don’t apply to mutual or other funds, hedge funds can typically invest in more complicated, risky investments than a public fund can (like short selling, futures, swaps and other forms of leverage)
Friday, August 15, 2008
Because it's Friday...
Just for fun... I always love the Forbes lists...this week it's:
The Top Five Highest-Paid Female CEOs:
1) Indra Nooyi at Pepsi – $12.7 Million
2) Andrea Jung at Avon – $12 MM
3) Anne Mulcahy at Xerox – $11 MM
4) Susan Ivey at Reynolds America – $7.2 MM
5) Christina Gold at Western Union – $5.7 Million
I've been doing a lot of thinking about my career vision (business school essays, woo!) and I can't really imagine making that list with what I have in mind. I can see myself running a smaller organization, with a brand I'm passionate about - or even creating a company. But nothing quite that big.
The Top Five Highest-Paid Female CEOs:
1) Indra Nooyi at Pepsi – $12.7 Million
2) Andrea Jung at Avon – $12 MM
3) Anne Mulcahy at Xerox – $11 MM
4) Susan Ivey at Reynolds America – $7.2 MM
5) Christina Gold at Western Union – $5.7 Million
I've been doing a lot of thinking about my career vision (business school essays, woo!) and I can't really imagine making that list with what I have in mind. I can see myself running a smaller organization, with a brand I'm passionate about - or even creating a company. But nothing quite that big.
Thursday, August 14, 2008
What Matters Most
On one of my business school applications for a particularly prominent west coast school, there is a notorious annual question that every potential student must answer: What matters most to you and why? This is an open-ended question with no word limit. Write what you want and for as long as you want. I have struggled with the question for several weeks now. I have to say my writing. My writing is what matters. The only thing I know I’ll be doing when I’m eighty years old. But articulating why that is… and the transcendence and the joy in it… has been overwhelmingly difficult. I am looking for inspiration from anyone and everywhere – if you’re a writer, why does it matter to you? How do you explain why you do what you do to other people?
Wednesday, August 13, 2008
Expense Tracking Enlightenment
Whew, I’ve been behind on posting due to some travel (stayed in a cabin and went fishing up north in Minnesota: so not me but really fun!) and some training at work (on influencing people and innovation). So far, just a headline that I’m participating in Poorer than You’s Know-Where-the-Money-Goes Challenge for the month of August. Barely halfway there, and I’ve been surprised at how enlightening and non-invasive the tracking process has been. As minor as it seems, it helped me to start on August 1. Psychologically, it’s been an issue for me when I’ve tried to track spending before – where to begin? The spending is a constantly flowing stream. I highly recommend trying it for a month, and if it helps you, starting on the first day of the month. It has kept me feeling a lot more aware and cognizant of how I’m spending.
It’s definitely been enlightening to some bad behaviors (Wow, two days in, I had spent two-weeks-worth of my eating-out allocation) and helped instill some good behaviors (Day 3, I declined a morning brunch with friends that I normally would have tagged along on unthinkingly spending another $20 on eggs and toast that I could have made for free at home). I’ve also been spending more deliberately, and prioritizing as I go. Hopefully this is the month that I WIN on my budget. And I need it to fund that travel budget – my trip is at the end of November!
It’s definitely been enlightening to some bad behaviors (Wow, two days in, I had spent two-weeks-worth of my eating-out allocation) and helped instill some good behaviors (Day 3, I declined a morning brunch with friends that I normally would have tagged along on unthinkingly spending another $20 on eggs and toast that I could have made for free at home). I’ve also been spending more deliberately, and prioritizing as I go. Hopefully this is the month that I WIN on my budget. And I need it to fund that travel budget – my trip is at the end of November!
Friday, August 8, 2008
Obama vs. McCain on the Economy
My vote is already decided, but I was really happy to find this clear article from Forbes on the economic policies of the two presidential candidates. It’s a good read with some quotes from Obama’s main economic advisor, but I’ve summarized the highlights below:
Corporate Taxes
- John McCain has proposed lowering the maximum corporate tax rate from 35 to 25%.
- Obama has also proposed to lower the corporate tax rate, though he hasn’t announced how sharply. Also, he’ll go about it in a different way. His plan is to clean up the tax code which taxes company differently based on various factors (whether or not the company is financed through debt or equity for example).
On the National Debt
- Obama’s plans will send the national debt to 3.4 Trillion by 2018.
- John McCain will send the national debt to 5 Trillion by 2018.
Tax Increases & Reforms
- Obama is proposing a payroll tax surcharge on people earning more than $250,000 annually, a dividend tax rate of between 20-28%, an income tax exclusion for seniors making less than $50,000, and an increase in the maximum capital gains taxes from 15 to 25%
- John McCain: no new taxes, (maybe?)
Oh, and I couldn't resist: Paris Hilton's response to the McCain attack ad on Obama.
Corporate Taxes
- John McCain has proposed lowering the maximum corporate tax rate from 35 to 25%.
- Obama has also proposed to lower the corporate tax rate, though he hasn’t announced how sharply. Also, he’ll go about it in a different way. His plan is to clean up the tax code which taxes company differently based on various factors (whether or not the company is financed through debt or equity for example).
On the National Debt
- Obama’s plans will send the national debt to 3.4 Trillion by 2018.
- John McCain will send the national debt to 5 Trillion by 2018.
Tax Increases & Reforms
- Obama is proposing a payroll tax surcharge on people earning more than $250,000 annually, a dividend tax rate of between 20-28%, an income tax exclusion for seniors making less than $50,000, and an increase in the maximum capital gains taxes from 15 to 25%
- John McCain: no new taxes, (maybe?)
Oh, and I couldn't resist: Paris Hilton's response to the McCain attack ad on Obama.
Thursday, August 7, 2008
What It Feels Like...
The Guy gets a lot - I mean, a lot of magazines. And I've found myself going through them mindlessly on more than one occasion when he is puttering around getting ready in the morning. And I've found I really like the section in Esquire Magazine called “What it Feels Like.” Whereas Esquire might post on “What it Feels like to Pose for a Nude Photo” or “What it Feels like to Hit a Walk-Off Grand Slam” I would really like to host the personal finance edition. What it Feels like to pay off $10,000 in Credit Card Debt or What it Feels like to Miss out on an Experience because you were being too Frugal or What it Feels like to Finally Cash in on the Goal you’ve been saving for.
So I’m looking for guest bloggers to write about one of these topics – check in with me in the comments if you’d like to be featured in the new section! I’ll report back with the full list of topics to watch for.
So I’m looking for guest bloggers to write about one of these topics – check in with me in the comments if you’d like to be featured in the new section! I’ll report back with the full list of topics to watch for.
Wednesday, August 6, 2008
Not Proud...
My parents just used their airline miles to get me a ticket to come home for Thanksgiving... and Christmas. I'm not exactly proud of that, but given how high flight prices have rocketed up, this is saving me $1,000! I'm secretly PSYCHED. (Sidebar: my mother works for one of the airlines and my parents can fly standby for free all the time, so they would rarely ever use the miles for themselves. I still don't feel proud doing the parental mooch at 24).
Tuesday, August 5, 2008
Financial Definitions: (Sort of) Current Events Edition
I’m a little late on the game with this one, so this is admittedly more for myself, but I wanted to sort through some of the terms that are helping me not glaze over at most headlines these days…Embarrassed to admit I didn't know the meaning of these terms BEFORE they became passe in the mouths of CNN anchors...
Core Inflation: a measure of inflation that excludes certain items that face volatile price movements (right now that would be energy/oil and food prices)
Headline Inflation: a measure of total inflation – it’s all in there, so might not be as accurate a figure of long-term inflation, although the WSJ’s Real Time Economics blog begs to differ and elsewhere the paper notes Bernanke’s increasing swap with core inflation
Fixed Rate Mortgage: locks in one rate for a fixed period of time (usually 30 years)
Adjustable Rate Mortgage: locks in a rate for a shorter period of time (usually 3 to 5 years), when the rate will adjust
“Securitization” of Loans: A lender groups together a package of various individual loans and sells them to another investor; All the risk is still there, but less transparent
“Subprime” Borrower: a borrower with a riskier profile
Core Inflation: a measure of inflation that excludes certain items that face volatile price movements (right now that would be energy/oil and food prices)
Headline Inflation: a measure of total inflation – it’s all in there, so might not be as accurate a figure of long-term inflation, although the WSJ’s Real Time Economics blog begs to differ and elsewhere the paper notes Bernanke’s increasing swap with core inflation
Fixed Rate Mortgage: locks in one rate for a fixed period of time (usually 30 years)
Adjustable Rate Mortgage: locks in a rate for a shorter period of time (usually 3 to 5 years), when the rate will adjust
“Securitization” of Loans: A lender groups together a package of various individual loans and sells them to another investor; All the risk is still there, but less transparent
“Subprime” Borrower: a borrower with a riskier profile
Monday, August 4, 2008
Credit Cards the new "Big Oil"?
Unreal. This article was in my inbox this morning from Marketing Daily: Can Credit Card Brands Weather Debt’s Image Problem? Wow, debt has an image problem? Apparently debt needs a makeover and some shiny new trainers. While of course I think it would be a boon to consumer lifestyles to observe a little more thrift, if American Express and Visa begin to be vilified along the same lines as Big Oil, we’ll be missing the point. It’s our spending that has us held over a barrel to the plastic, not the MasterCard priceless ads. The article bemoans a resurgence of cash, but is doubtful it will occur:
“Besides, unlike smoking and other personal habits that have fallen out of fashion, plastic is a little confusing--no one standing behind you at the Cineplex knows if you are financially intact and using a debit card as an electronic convenience, or a reckless spender juggling balances on eight cards. She doesn't expect much of a change in consumer behavior, although many advocates recommend using cash as a way to regain a sense of control over spending. "We've gone too far in the way of plastic-people perceive credit cards as safer, more convenient," she says. "I doubt cash will make a comeback."
“Besides, unlike smoking and other personal habits that have fallen out of fashion, plastic is a little confusing--no one standing behind you at the Cineplex knows if you are financially intact and using a debit card as an electronic convenience, or a reckless spender juggling balances on eight cards. She doesn't expect much of a change in consumer behavior, although many advocates recommend using cash as a way to regain a sense of control over spending. "We've gone too far in the way of plastic-people perceive credit cards as safer, more convenient," she says. "I doubt cash will make a comeback."
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