Personal Finance + Inspiration = Free Financial Advice
And the winner is……. Going to be announced at the end of the article! The FinanceSpiration Challenge has come to an end, thanks to everyone that participated! I hope you all have gotten something out of the different stories of inspiration in personal finance; here they are in order of appearance.
Iram
Iram started it off with Working Hard and Spending Very Little. Cheers to no credit card debt, hard work, and saving more than you spend!
Lazy Man
In response to Lazy Man’s praise of personal finance bloggers I thanked these bloggers for being personal finance leaders and examples for the rest of us. Move over Suze Orman, here comes Boston Gal, Flexo, J.D., Trent, and Jim!
Emily
Making important decisions by yourself is not always easy as Emily shares with us in Making Financial Decisions Alone. Thanks to Madame X at My Open Wallet and Boston Gal she has had some guidance and inspiration. While reading about others’ finances is interesting and can be helpful, Emily brings up that it can also be discouraging. Madame X reminds us “don’t be so hard on yourself if you don’t feel you measure up”. Everyone’s personal finance situation is different, if we set and meet our own goals we should be just fine. It sounds like Emily is on the right track!
Courtney
Courtney rounds out the entries in the FinanceSpiration Challenge with Until Last Year, I Hated Money. She has been influenced by many different personal finance sites, most notably the Ladies in Red. I’m glad to hear that these sites have given Courtney a new outlook on personal finance and have gotten her started down the road to financial success!
Thank You
I’ve learned some things from the participants; hopefully you all have as well. A big thanks to Binary Dollar, Blogging Away Debt, Get Rich Slowly, Blueprint For Financial Prosperity, and My Open Wallet for letting everyone know about the contest.
Financial Advice
I’d also like to thank Kristine McKinley from Beacon Advisor for being a sponsor of the contest by providing her knowledge, expertise, and time to the winner. One of the great things about Kristine is that she can handle both personal finance and tax questions since she’s a CFP and CPA. She shares her finance and tax knowledge with the world on her blog, and you can sign up for her monthly newsletter on her website.
Winner’s Circle
Speaking of the winner, the submission with the highest number of comments is Emily! The comments from Boston Gal and Madame X put you over the top, now you can’t say you never got anything out of a personal finance blog! Thanks to everyone for sharing their stories and being an inspiration to all of us! If you enjoyed this contest please subscribe to my feed to keep track of what’s new at a Money Smart Life.
Your Money or Your Life – Money Can’t Buy Happiness
This edition of Your Money or Your Life features wisdom from One Frugal Girl and The Weight of Money, thanks to both ladies for helping us keep our priorities straight!
The Relationship between Money and Happiness
One Frugal Girl reminds us that no matter what money will not make us happy. I hear where she’s coming from. We spend so much of our lives worrying about making money, spending money, and saving money that it’s easy to forget money is only a means to an end, not the point of living.
One Frugal Girl talks about the two main reasons why money will not bring us happiness. The first is that “people tend to overestimate the amount of pleasure money will bring them” and the second is “individuals adjust to their wealth”. I guess another way to say it is that we see more money as the solution to many of our problems and that even when we get the money it never seems to be enough.
So what can we do to overcome our nagging desire for more money in the pursuit of happiness?
“Counting your blessings seems to oppose the natural human inclination to adjust. After all, if your happy with what you have their is no need to look further. Also being mindful of the good things in life helps to keep you grounded, thereby keeping your expectations more closely in check.”
Family Values
An article at The Weight of Money, entitled Family Values, is a good example of how we can make decisions to put our family before money. In the quotes below, she reveals how she passed up a job that was both financially and personally rewarding so she could be there for her daughter. I admire her for doing it, it’s not an easy move to make.
It is clear that the daughter needs someone home more and that I need to be more available at home. Due to the stressful challenges from the daughter, the commute and the very strenuous workload, I had to reevaluate the compromise I made.
I love my job and find the work extremely fulfilling (and tiring) but I will not compromise family security and contentment for professional aspirations. It disappoints me that giving up the position is the only action I can take, but I am glad to make that choice in order to take care of my top priority and the thing I value the most in life – my family.
How to Get a Free Car Wash
The snow is falling, that means salt on the roads and salt on your car. If you want to extend the life of your car and save some big bucks down the road it’s important to keep this corrosive force from eating holes in your car and your wallet!
Brave the Cold or Pay the Cash?
I prefer going through the car wash to keep the underbelly of my car salt free. I mean, who wants to crouch in the freezing cold while trying to wash the underside of the car with a manual car wash? Then again, who wants to pay the $6-10 bucks you’ll pay to drive through one of these automated carwashes? If you play your cards right, you can keep your car free of salt from within the comfort of your own driver’s seat!
Free Car Wash
Many car dealers offer their customers free car washes for the life of the car. Some places have car washes of their own; others contract the service out to a local carwash. Our Honda dealer gives customers tickets to the automated car wash next door. When you want a car wash you ask for a voucher from the person working the back office at the Honda dealer.
Open Door Policy
Every time I go to ask for a free voucher they never ask for any type of identification or proof that I even own a Honda. It’s a different person manning the desk every time so I know they can’t possibly remember me. What I’ve observed is that it’s not worth their time to police this service. They figure anyone who has the gumption to come in and ask for a free car wash must be a customer.
Just Ask!
So all you need to do to get a free car wash is to ask! Of course the dealers in your area may be different but it’s worth your time to try it out. Is it honest? Technically you’re not lying. You simply ask “Is this where I get the free car wash”? If they press for more information, how you handle it is up to you. You might want to have your friend idling the car out front just in case…..
Job Security, 401k to IRA, Credit Card Mistakes, & Restaurant Bills – Carnival Roundup
This week at Money Smart Life I touched on a variety of financial topics including job security, turning your 401k into an IRA, credit card mistakes, and saving money when eating out.
Endless Gibberish hosted the Carnival of the Capitalists where I talk about the pros and cons of having a “secure” job that you don’t really like.
When people get fed up with their job and move on to greener pastures they should remember to roll their 401k over into an IRA. I discussed the benefits of rolling over into an IRA in the Carnival of Investing over at the Sun’s Financial Diary.
This week I had two articles that were by far the most fun to write. The 10 Worst Credit Card Mistakes College Students Make was featured in the Carnival of Personal Finance at Young and Broke and 10 Ways to Cut Your Restaurant Bill Big Time was in the Festival of Frugality over at FIRE Finance.
If any of these articles float your boat be sure to sign up for daily updates of similar tasty finance treats! Have a great weekend!
Ten Low Cost Ways to Reduce Money Stress
Do you ever get tired of thinking about money? Since I’ve started writing about personal finance, I’ve gotten burned out once or twice by always having “money on the brain”. Here are ten cheap ways you can get money off your mind. The first five will build your brain and health, the second five are just fun!
Read a Book
Check out a book from the library. Avoid ones that have anything to do with money. Find a book you’ve been wanting to read but just haven’t had the time.
Take a Nap
Even a quick 15-20 minute nap can help “reboot the brain” and chase away your money worries.
Get Active
Whether it’s a walk around the block or a serious workout session, get your blood pumping. Your endorphins and adrenaline will clear out the money gremlins.
Meditate
Whether in a spiritual or just relaxation mode; dim the lights, stretch out, and let your mind wander away from money issues.
Write
Money is just a tool to get us where we’d like to be. Instead of focusing on the how, think about the what. Forget about how you’ll afford it. Write down what you want out of life and even how it will feel once you’ve achieved it.
Now for the fun stuff…..
Veg Out
There’s nothing more therapeutic than losing yourself in an episode of The Office or whatever your favorite show is. Need an extended brain drain, pop in a movie and wallow in mind numbing action or drama for a few hours.
Make Love
If you’re thinking of money during this then I’m afraid this article won’t help you. You may be in some major trouble!
Laugh
There is a mountain of funny stuff out on YouTube, you can surf and laugh for hours! Looking for something a little more personal, call up your funniest friend or pull out old pictures of your “awkward years” along with your significant other.
Dance Party
Modern stereos allow you to drown out your thoughts and dance your money sorrows away in your living room. Probably avoid Snoop’s, “My minds on my money and my money’s on my mind.” A little bit of the Doors, Green Day, or Jimmy Buffet can always take me away to my own little Margaritaville. Even better, haul out that old karaoke machine in the basement and go to town.
Have a Drink
We don’t want to make drowning our sorrows a habit but a little alcohol can always put things in a little different perspective. Combining this one with any of the previous four can make for true a money-forgetting experience. Warning, drinking and driving will void the low cost value of this one.
Dumping American Century Ultra Mutual Fund – TWCUX
I started investing in American Century Ultra in 2003, a year in which it returned around 25% according to Morningstar. I’ve been dollar cost averaging into the fund ever since and am embarrassed to say that I’ve been meaning to get out of it for a while now but have procrastinated for far too long.
Searching for Growth
The receipt of the dismal year-end statement in the mail today finally spurred me to action. Due to retirement plan options I have to find a replacement within the American Century family of funds. The Ultra fund is filling a growth spot in our portfolio allocation so I searched for other growth funds on the American Century website.
A Promising Option
I ran across a promising option in the Heritage Fund (TWHIX). It is categorized by Morningstar to have a style of Medium Growth as opposed to the Large Growth style of Ultra. However, since a large chunk of our portfolio is invested in large growth via VFINX, downsizing to invest in smaller companies shouldn’t really skew our diversification there. Both funds carry a 1% expense ratio. A comparison of their average annual returns shows that Heritage Fund comes out on top.
Moving Ahead
My plan is to move all of the money currently invested in the Ultra fund into the Heritage fund. I suppose I could move the money over in increments during the next few months to try and balance out any big moves in the fund’s value. However, it is likely I will move it all at once in the near future. If anyone has any suggestions on implementing the move I’d love to hear them.
FinanceSpiration – Until Last Year, I Hated Money!
The newest entry in the FinanceSpiration Challenge is from Courtney. Not long ago she was a stranger to personal finance. Thanks to the different sites she describes below Courtney’s been inspired to take charge of her money in a way that meshes with her life. Thanks for sharing Courtney!
Until last year, I hated money. I hated spending it and I didn’t much like making it either. I started browsing the internet for financial advice after opening a 403b, which is when I realized that making and saving money now meant that I wouldn’t have to worry about it and hate it for my entire life.
I credit my intro to financial self-eduction to the humorous and informative columns of the “Ladies in Red” on MSN. They led me to the fun of playing “The Grocery Game”, and browsing their message boards to find useful shopping advice from a lot of savvy young mommys (which I happily am not) who seem to have a lot of time on their hands to find awesome deals.
Since then I’ve been steadily expanding my personal finance research, and I have the “Money Dummy” to thank for introducing me to other methods of saving on groceries like the Grocery Guide.
Now I strive to find financial advice in harmony with simple and more sustainable living, which is abundant on the humble Dollar Stretcher (this also led me to find the internet-unfriendly, but nonetheless worthy Amy Dacszyn and her Tightwad Gazette series).
I also always enjoy sticking it to the man, so I’ve come to frequent The Consumerist and even though those craigslist ads about making 6k a month working from home sound enticing, I am a realist, so I also enjoy the “Get Rich Slowly” blog. I’m so grateful to all those in the personal finance blog community for sharing their wonderful experience and knowledge!
Vote for Courtney to win a financial consultation from Beacon Financial Advisors by leaving her a comment about her story and check out the other entries here. Stay tuned for contest developments by subscribing to my feed.
The Frugal Sentence Challenge – Share Your Most Frugal Moment and Win Smart Money Magazine!
Think back to a moment in your life that epitomizes your finesse at saving money. Summarize that wonderful, cash-conscious, debt-busting, wealth-building pinnacle of frugality into one sentence and share it with the world. One randomly selected story will win a 1 year subscription to Smart Money Magazine. See my example entry below.
Watery Cereal
I, like many college students, had no money when I was in school. Thanks to a good financial upbringing I scrimped and scraped instead of running up credit card debt. My roommate will never let me forget how he found me one morning.
Sitting in my coat, eating cereal with water in a dark, cold kitchen.
Sitting – Free hand me down table and chairs.
Coat – Purchased off-season for 75% off. Also, see cold below.
Cereal – I’d fill zip lock bags full of cereal “for the road” in the school cafeteria.
Water – Didn’t want to spend money on milk, water was much cheaper.
Dark – No lights = Lower electric bill.
Cold – No Heat = Lower gas bill.
For fun, try and get the highest frugality ratio that you can. What’s a frugality ratio? My sentence had 13 words, 6 of them exhibited money saving qualities. My ratio is 6 / 13 = 46.15%.
Submit your entries in the comments, via my contact form, or on your own site. I can’t wait to hear how frugal everyone is! Also, the FinanceSpiration Challenge ends on 1/22, submit your entry today.
Thanks to The Digerati Life for inspiring this contest!
Increase Your Tax Deductions, Don’t Give Cash at Church
The Pension Protection Act of 2006 gives the IRS the authority to disallow deductions of undocumented cash gifts to charities, including church offerings. If you put cash into the collection plate you can no longer write it off on your taxes.
Document Your Donations
Instead of putting dollars or coins into the offering plate, write a check instead. What’s the difference? The new law requires donations to be documented as this article describes:
“Individuals must show a receipt from the charity, a canceled check, or credit card statement to prove their donation. No tax deduction will be allowed if the taxpayer cannot provide any supporting documentation.”
Be a Good Steward
Many religions emphasis the importance of being a good steward with your money. If you can reduce your tax burden by documenting and writing off your donations, you’ll have more money left over to live your life and to donate to your church!
FinanceSpirations – Making Financial Decisions Alone
The latest entry in the FinanceSpirations Challenge comes to us from Emily, a thirtysomething woman whose single status means she makes all of her financial decisions by herself. Luckily she has Boston Gal and My Open Wallet to inspire her and pass along tidbits of financial advice.
Thanks to Emily for sharing her FinanceSpiration story with us and to Boston Gal and My Open Wallet for inspiring her to strive for financial success!
The two bloggers I find most inspiring are Boston Gal and My Open Wallet. Like them, I am a thirtysomething single woman. They have shown me that it is possible to make it financially on your own. I am not doing as well as they are: I am 33 years old, my salary is only $53k, my net worth is only $135k, I’m still renting an apartment, and I drive a 15 year old car.
Actually, most personal finance blogs make me feel like I’m behind. I’m trying to use it as an impetus for change though. Recently I used an online retirement savings calculator to determine that I will need $3.1 million for retirement. Yikes! It made me realize that I will not be able to get to that number through brute force saving.
Right now my company retirement money is in the “stable value fund” and my Roth IRA is in a CD at my credit union. In 2007 I want to become an investor, not just a saver, and try to get better returns on my money.
The hardest part of being single is making decisions alone, and it would be great to get objective advice from a planner on specific steps I can take to improve my financial situation.
Vote for Emily to win a financial consultation from Beacon Financial Advisors by leaving her a comment about her story and check out the other entries here. Stay tuned for contest developments by subscribing to my feed.
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I'm Ben Edwards and I've been addicted to personal finance since I was 12 years old.
That passion for money has paid off for my family - so in 2006 I founded Money Smart Life to help you afford the life that you want. Read My Story...
