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Saturday, December 31, 2011

Year In Review

As 2011 draws to an end I like to take a moment to reflect on my financials. Here are a couple of percentages:

The numbers below do not include regular and retirement savings.

I spent 24% of my income on rent and 23% on my mortgage. The next largest category is 14% on the maintenance costs of my studio. After that I spent no more than 3% in any category.

If I take out what I spent on mortgage, rent, maintenance, student loans and utilities the numbers break down as follows.

13% on clothes/shoes
12% on gifts
10% on groceries
9% on travel
8% on computers/electronics (bought a new computer this year).
Every other category was below 5%.

I like to end the year by spending the most of my non-fixed expenses in the categories that are most important to me. This year I did not. While I love clothes and shoes they are not one of my priorities and I am astonished that I spent more on them then on gifts, food and travel. Taking the time to look back makes me even more determined to go on a spending fast in January and to think differently about my goals for 2012.

picture by jollyUK 

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Sunday, December 25, 2011

Merry Christmas!


Merry Christmas and Happy Holidays to all my readers! 


photo by andrew d miller

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Friday, December 23, 2011

Friday Fun With Links

A huge congratulations to J. Money and I Pick Up Pennies. They both have a bun in the oven, well Mrs. J. Money does. Also a big congrats to Krystal who is moving to Germany! A new adventure begins.


This just  may be the worst ad I've ever seen. But this is really really awesome street art

A great video, which makes a really good case for taxing millionaires

Am I the only one who thinks these look delicious! I may have to try to make these myself. 

I'd like to end this Friday Fun with Links session with some cuteness. Okay and some more cuteness. How can you look at these pictures and not smile! 

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Wednesday, December 21, 2011

5 Steps To ...

I don't often write posts that lay out five to ten steps. I know they are super popular in the personal finance world, but I have a hard time putting them together. I often think there are more than x number of steps and different ways to reach goals.

Rather than steps, I think there are things you can do and you can do them in any order. Still, I always read the step posts, even if I don't always agree with them.

As I continue to work on my What I Wish I Learned in College About Personal Finance Series there is a good chance I'm going to end up writing some of those articles. Maybe rather than steps I'll just list tasks. Or, my steps will all come with a disclaimer that it is how I would do things, which may not be the way you decide to do things.

picture by Chris_J

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Tuesday, December 20, 2011

A January Spending Fast


I have decided to go on a spending fast with a good friend of mine in the month of January.

During this fast I won't spend any money on lunches out, alcohol, tea, clothes, make-up, gifts and on my nails. I've been spending a lot of money on clothes lately, so I'm hoping that will save me a lot of money in January.

What is still on the table for me (but not my friend) are breakfast and dinners out. I rarely buy breakfast and when I do it tends to be only on the weekends and only a $5 bacon, egg and cheese from my favorite bagel shop. Since I don't spent a lot of money in this category, I decided not to deny myself these little splurges. I also decided to keep spending money on eating dinner out. Adding that to my fast would also mean getting my husband on board. I also don't want to end up in a situation where he buys all our dinners out because I'm this fast. Definitely not cool. And let's be real, there is no way I can go a month without getting pizza for dinner.

The only thing I need to do to prepare for the fast is to purchase some bronzer. I asked for some for Christmas, so I'll wait until then, but if I don't get it then I'll be making that purchase before January 1st!

This friend I'm doing this fast with is the person who turned me on to personal finance. Though we no longer live in the same city, we do chat on im almost every day so I know we will support each other. After the gluttonous that is December, I'm looking forward to this fast.

picture by Brian G. Wilson

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Monday, December 19, 2011

What Is Important To You?

What I Wish I Learned in College About Personal Finance Series


When I first started learning about personal finance I read a ton of blogs, Suze Orman books, and simply digested as much information as I could. I tried out a lot of different budgeting techniques, but failed to reign in my spending. That was, until I realized that what matters in personal finance is figuring out what is important to you.

I began my journey while in graduate school. My priorities were simple then. Basically, I wanted to spend as little as possible, while saving as much as possible. So budgeting was easy. I just had a certain amount of money that I had to stay under each month, but how I spent my money within that amount did not matter. The majority of my money went to food and the occasional movie. When I think back to that time I’m amazed on how I lived on so little!

Now my priorities are completely different. I have a student loan I want to pay off, an emergency fund I’m trying to build back up, saving for a down payment, and of course retirement savings. After I figure out how to prioritize my aforementioned goals, then I have to decide how to spend what is left over. After rent and bills, I spent my money on items that are important to me. Some months that may be buying yoga class card or signing up for some road races. Other months it may be spent on dinners out with friends. Knowing how I plan to spend my money, keeps me from buying that cute shirt I love, but that I don’t really need.

I love to spend my money on travel, but if you prefer to spend your money on shoes that is none of my business. Personal finance and budgeting all comes down to what is important to you. So one of the first steps is financial freedom to figure that out.

photo by konstig

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Saturday, December 17, 2011

Facebook

I've finally created a Facebook page for my blog. For those of you would are on facebook and enjoy my blog I would love if you could "like" it.

If you like my facebook page you can enter to win my eternal gratitude. Okay, not true.  You will definitely receive my eternal gratitude. If you are not a facebook fan you can always follow me on twitter.

Sorry I don't have some fun prize that you can win, but I figured a little self marketing couldn't hurt. Right?

Have a fantastic weekend!

photo by _Max-B

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Friday, December 16, 2011

Friday Fun With Links

I came across some fun and interesting blog posts and items this week and I decided to share them.

At only $20 I was seriously tempted into buying this Charlie Brown Christmas Tree. Maybe it will go on sale after Christmas! I wish I was creative enough to come up with this idea. Even though I'm trying to sell them, I still have more than enough books. Combine these with this recipe for gingerbread cookies I was really put into the holiday spirit this week.

Hello Giggles had a post on Tips for the Chronically Cold Girl. I am so that person and I often get hot water at work to warm my hands and wait for it to cool before I drink it. Oh and I wouldn't survive without hand warmers. They also listed pet peeves on TV shows. I completely agree with every point.

On the personal finance note I loved Debt Ninja's post on 15 year versus 30 year mortgages. Another great example on why personal finance is personal. Oh and I'm also a fan on the 30 year mortgage, especially if that  money you save each month is going towards retirement. I love FB's post on investing in your appearance. This is not an excuse to spend a lot of money, but looking neat and put together can go a long way.

An op-ed in the New York Times points out the disconnect between knowledge and policy in education. Paul Krugman writes about how we are in a depression and explains what is happening in Europe. The Economist has a really interesting chart on vacation days by countries. Not surprisingly, the U.S. does not do well.

I love the tv show Big Bang and this made me laugh out loud.

I really want to go to each one of these places. I have been to Multnomah Falls in Oregon!

Finally, this sums up how I feel almost every day, just change school to work and add blog.


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Thursday, December 15, 2011

Accomplishing More

I read an interesting article this morning about how to accomplish more by doing less. In summary, the article notes that working straight through lunch with no breaks actually reduces the amount of work you can get done. Instead if you work in 90 minute intervals, with 10-15 minute breaks, you actually recharge your brain and can focus better, making less mistakes.

It is interesting. At work I can find myself working straight through the day with only a few small breaks to read some blogs or check up on today's news. However, when I used to be in school I would work exactly how the article says you should. I would wake up on a Saturday morning, work on something for an hour to two hours, take a short break, and then continue that cycle until I was done.

It will be interesting to test this out and see if I do really become more productive. My favorite line of the article is:
Create a workplace that truly values a balanced relationship between intense work and real renewal, and you'll not only get greater productivity from employees, but also higher engagement and job satisfaction.
Life is always better when there is balance, so it makes sense to create that balance within work and not just between work and life.

picture by mpujals

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Wednesday, December 14, 2011

The Happiest Time of Year

I love this time of year. There are the holidays, a week off work, and the time to check up on my finances and think about goals for the next year.

Just like the beginning of every month feels like a new chance to spend wisely and save money, a new year feels like the perfect time to create strong and doable goals. I've been thinking a lot about goals for 2012, though I haven't come to any decisions. Do I want to continue to focus on paying down my loan? Or should DH and I focus on building up our joint savings account? Should I increase my retirement funds? And or course, I have to build back up my emergency fund. The hardest part is making the decisions. If only I had enough money to do everything at the same time!

I like to keep my goals simple and limited. After years of writing this blog I've found that the more complicated or more goals that I have the more likely I will stop focusing on them.

Decisions...decisions...

photo by Kelsie Blake

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Tuesday, December 13, 2011

Holiday Wish List

I thought it would be fun to post my Christmas wish list. I decided to include only fun wants in this list. Nothing I need, but if I had a ton of money I would totally buy.

Essie Cocktail Winter Nail Polish - $3.40 a bottle on amazon

Contemporary Pendant Necklace in Cranberry - $18

Calvert Gray Wool Purse - $52.99
A noise isolating headset - $68.23
Natalee Boots by Steve Madden - $190


I don't need any of these items, but then this is why it is called a wish list! Expect for the nail polish I probably wouldn't buy myself anything above. I might buy the boots, but not until they went on sale or I had a really good coupon. What is on your holiday wish list?


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Monday, December 12, 2011

An ATM Card for a Savings Account?

I recently decided that I needed a better way to cover short term overages in my budget. When I go over budget I've been taking money out of my emergency fund to cover these expenses. Obviously, these little overages are not emergencies. In an attempt to make my emergency fund an account for real emergencies I opened a savings account with Bank of America, the location of my primary checking account. I started the account with $300.

The other day I got an ATM card in the mail from Bank of America. At first I was confused, was my debit card about to expire? After checking the expiration data on my debit card, I realized it was an ATM card. Bank of America sent me an ATM card for my savings account. Maybe this has been going on for a while, but I've never received an ATM card for a saving account before. Bank of America obviously doesn't want their customers to save any  money. I always felt the point of a savings account was not to have easy access to the cash. That is probably why my emergency fund is with ING.

Will the U.S. ever adopt a culture of savings?

photo by Ryan01

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Friday, December 9, 2011

Shopping Burnout

I have to say I'm completely shopped out. Luckily, I've also finished my Christmas shopping, so now all I have to do is wait for some things to arrive and wrap the gifts!

However, I accidentally sent some items I ordered from amazon to my studio which is now being rented (damn you amazon for keeping my old addresses). Strangely, my tenant never received my shipments, and yet they say they are delivered. So I've emailed sellers and amazon and I'm waiting to see what happened. I either want my items or my money back so I can buy something else!

On another note, DH and I decided to get stockings this year and give each other little gifts throughout the month. So far it has been really fun to think of small gifts and randomly find things in my stocking!

So here is hoping that there are no surprises and I don't have to buy anything else expect food.

photo by Caro's Lines

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Friday, December 2, 2011

Ways to Keep in Shape Without Spending a Ton of Money


George Gallagher is a finance and fitness writer.  He also helps graduates discover private student loan consolidation programs that fit their specific needs.

We’ve all been exposed to the many advertisements about gyms and workout facilities that tout losing weight and getting into shape…if you just join their club. Unfortunately, even if you commit to a membership and regularly use it, you could be paying money that could be better spent elsewhere – or better yet, saved – while still finding ways to stay in great shape.

Working out and losing weight does not have to be time consuming or costly. In fact, there are numerous activities that you can take part in that will allow you to be healthy both physically and financially at the same time.

Keeping Your Workouts At Home

There are plenty of ways to get the same benefits of working out in a gym right in your own home. By working out with aerobics, yoga, or Pilates DVDs, you can maintain your figure from the comfort of your living room. Many exercise programs today can even be downloaded right on to your computer – so check online to find the workout of your choice.

In many cases, this also has the added benefit of not needing to leave the house, fight the crowd at the gym – especially after food-related holidays like Thanksgiving and Christmas – and take the extra time in the car going to and from the facility.

If you want an occasional change of scenery, consider taking a walk around the neighborhood (or inside the local shopping mall if the weather is inclement). Sometimes enlisting a friend can help you to both stay motivated in your exercise activities.

Remember, though, not to be tempted to visit the local ice cream shop after completing a successful walk or workout, as that could essentially defeat the purpose.

Improvise

Staying in shape doesn’t even need to entail a specific workout program. For instance, simply staying active can help you to lose calories and to maintain a higher level of energy. Experts state that by maintaining a moderate regular activity of at least 2 ½ hours per week, and taking part in vigorous activity for at least 1 ¼ hours per week can keep you in very good shape.

Moderate activity can include things like taking a brisk walk or going for a bike ride. More vigorous tasks mean raising your heart rate with cardio activities such as jogging, playing basketball, or cycling faster on your bike.

Exercise Has Other Benefits Too!

Your activities don’t have to just be considered as “working out” in order to be beneficial. Aerobic activity can also be accomplished by doing active chores such as pushing a lawnmower, vacuuming the carpet, shoveling snow, or raking leaves.

Taking part in these tasks can not only have health related benefits but they can also help in other ways too, such as having a clean home or a well manicured yard. This is also a great way to save time, too, as you are able to get in a workout while also crossing off the chores on your “to do” list. 



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Thursday, December 1, 2011

Goals

I'm happy to report that with today's payment I've reached my student loan goal. That's right, I'm officially under $10,000!

While I'm incredibly happy about this my first thought was can I get it under $5000 by December 31, 2012? Such is the life of a personal finance blogger I guess. One accomplishment leads directly to another goal.

With all my other savings goals reducing my loan by $5000 in a year is a big goal. However, I'm seriously considering making it one of my 2012 goals. In the meantime, I'm going to enjoy looking at my tracker completely filled in.

On other news I'm slowly chipping away at building up my emergency fund. I'm considering creating another savings account specifically for short-term needs. Some place to pull from when I end up slightly over budget so that my emergency fund can become a real emergency fund. However, it would mean reducing the amount of my emergency fund for the time being.

How do you handle your savings accounts? Do you have one for everything or sub accounts? Do you have on that is meant for small overages? Do you ever touch your emergency fund? Advice on what I should do would be greatly welcomed!

photo by bradipo

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