Money for the Rest of Us

I’ve been thinking lately that Personal Finance Bloggers must be control freaks. Who else would spend so much time thinking about money? Who else would bother to create elaborate budgets? Who else would meticulously count every cent they earn, spend, and save? Who else would not only do these things, but then write about them?

Yes, I think Personal Finance bloggers must be control freaks. I know that I’m a control freak. Once, I was talking to a pilot about how I don’t like flying and he said, “Well, you must like to be in control of things. Because I find that most people who don’t like flying don’t like it because they can’t control (or even see) what is going on.” I just laughed because it was so true. Better yet, it’s actually helped me be less afraid of flying because I know why I’m scared and I’m able to relinquish control of the situation.

Being a control freak when it comes to money can be both a good and bad thing. It’s good because it helps us to “keep control of our finances” and avoid spending too much. As control freaks we know where are money is going and how to keep it going to the “right” places. Generally, we control freaks have our finances figured out.

But, we also worry and think more about money than the average non-control freak. In doing this we spend less time doing and thinking about the things we care about.

Recently, someone very dear to me called me out on my control freak-ness when it comes to money. Something to the effect of “Who cares if we go $40 over our budget for dining out this month? We can afford it and it’s a special occasion. So why be cheap?” This really got me thinking. Is it worth it to be so concerned about money?

I’m in the fortunate enough position where if something tragic happened I would be able to manage for a few months. (And I’m sure, if it were that tragic, with the help of friends and family I could make do much longer than that.) So, why should I be so concerned about money? Isn’t it better to enjoy my todays, so long as it doesn’t dramatically impact my tomorrows?

I’m a big fan of HSBC’s online high-interest savings account. In part because there is an ATM right near where I work which makes for easy (and fast) transfers.

Today, I was walking by my local HSBC and there was a table outside. I was curious and so I stopped and chatted. Turns out they were giving a way FREE compact fluorescent light bulbs! Apparently they (being the US company based in NY) were the first major company to go completely carbon neutral. They are doing all sorts of things to promote the environment. They have a whole campaign going that’s called “There’s no small change.” (Get it?)

I realize that their campaign saves them money by not having to mail paper statements (postage, materials, etc.), but it’s still wonderful that they emphasize saving the environment!

The Festival of Under 30 Finances, (May Graduation Edition) has arrived! The question was: “What’s one piece of financial advice you wish someone had given you when you graduated from college? (Or if you haven’t yet graduated, what do you think you’ll struggle with most and need advice about when you graduate?)”

We had several thought provoking answers:

Congratulations, May Grads! posted at Grad Money Matters included the following advice: “For high school grads: Go to college and get a degree in a major that will result in a good high paying job and For college grads: Postpone major purchases for at least one or two more years.”
and

Best Credit Card and Money Advice for College Grads (Ask Mr Credit Card’s Blog) posted at Ask Mr Credit Card’s Blog advice included: “Pay Your Credit Card Bills Fully and Your Other Bills On Time and Run Your Finances Like a Business.”

The Digerati Life answered:

The one piece of financial advice I wish someone gave me was to learn more about how to properly diversify through asset allocation. Though I did learn how to invest in the markets right after I graduated from college, I believe that I didn’t receive a thorough understanding of the concepts of asset allocation and diversification. I simply practiced what the current financial magazines of that time taught me, but such information wasn’t grounded on strong theory. I should have been given some classic financial books early on such as “Random Walk Down Wall Street”. If I had, I would have done a better job with my investment portfolio and track record then.

and added this post: How Much Credit Have You Turned Down? Maybe Half A Million Dollars Worth

On to the rest of the carnival:

Housing

Michael Emilio presents College Life: Is it Better to Live On-Campus or Off-Campus? posted at South Florida Realtor.

Darius presents How much worse can housing get? posted at Related to Mortgage.

Steve Leung presents How Home Buyers and Sellers Get Trapped in Straw Scams posted at Silicon Valley Real Estate Blog at 1SiliconValley.com.

Stock advice/investing

FMF presents The Greatest Enemy of a Good Investment Plan posted at Free Money Finance.

Tyler presents How Not To Make Money In Stocks Guaranteed! posted at Dividend Money.

fletchlives presents Sometimes You Should Roll The Dice posted at fletchlivesforecasts.

Alvaro Fernandez presents Trading psychology and Trader Performance posted at Brain Fitness.

Saving on Household Costs

Marshall Middle presents Update: Step by Step guide to Saving Money on your Comcast High Speed Internet posted at How to Make a Million Dollars.

The Frugalist presents How to Save $500 a Year on Gas - 27 Tips and Tricks posted at Frugalist.

How to Save Money while Still in School

Ted Reimers presents How to save money in College posted at CampusGrotto College Blog.

For the self employed/bloggers out there

Jimmy Atkinson presents How to Avoid Being Audited When You’re Self Employed posted at Ask the Advisor.

Robinson Go of Good Blog Advice presents 8 Shrewd Ways to Optimize Google AdSense posted at Rob’s Blog: Advice for Bloggers.

Where to Work

Robinson Go of Good Blog Advice presents 8 Shrewd Ways to Optimize Google AdSense posted at Rob’s Blog: Advice for Bloggers.

Paying Off Student Loans

David presents Graduating? Different Ways To Start Paying Off Your Student Loans. posted at My Two Dollars.

Interest Rates and Credit Cards

Jeremy presents Lower Your High Interest Rate posted at ASAP Credit Card.

Planning for Health Issues

Big Cajun Man presents Cancer, now that I have your attention posted at Canadian Financial Stuff.

Advertisements

Get a debt free card on opening your account in any bank and if already have an account then apply for a credit card and enjoys the new policies of the banks. Pay through the credit cards and avoid signing the bank checks . Are you worried with your increasing tax ratio; download the new and authentic tax software to manage your tax files properly. Before opening an account in any bank, browse the internet banking web site and read their terms and conditions carefully. offshore bank is facilitating their customers with the enhanced credit card limits which are clearly more then any other bank. Download the tax software for to get the exact calculations of the tax refunds amounts. For a better life and future and in order to avoid the financial problem in the later life get an excellent insurance plan.

There’s a really interesting piece in the Washington Post today about Socially Responsible Funds. I’ve always thought that socially responsible funds are a great way to invest in what you value. If you value the environment or don’t want to give money to big tobacco or promote weapons, then socially responsible funds seem like a good way to go. When I first invested in mutual funds I put some money into a socially conscious fund. But, after 2 years it was under-performing and I sold my shares. I’ve always wondered if I was just impatient, but it according to the article, on average, socially responsible funds do underperform:

Socially responsible investing funds, including expenses, generally trail traditional competitors, according to Morningstar data. For the 12 months ended April 30, for example, such funds investing in big-company stocks returned 11.63 percent, compared with 12.28 percent for all big-stock funds. For funds investing in mid-size companies, socially minded versions returned 7.65 percent over the period, compared with 10.24 percent for all funds.

Despite this, it’s arguable that the lower return may be worth it to you if you are truly invested in social causes. But, the article states that the criteria for being “social responsible” is often simplistic and overlooks key issues. For instance, ” oil producer BP got high grades for an innovative environmental approach — until admitting last year that it had failed to adequately maintain its Alaska pipelines.”

I still support socially conscious funds. Part of my 403(b) is in a socially responsible fund and it does quite well. Even if they aren’t perfect, it’s nice to know that I put some of my money into companies that value the same things I do.

I’m hosting the next Festival of Under 30 Finances.  The question is:

What’s one piece of financial advice you wish someone had given you when you graduated from college? (Or if you haven’t yet graduated, what do you think you’ll struggle with most and need advice about when you graduate?)

Please submit your articles through this submission tool by May 16 at midnight.  The carnival will be posted on the 18th.

As recent graduate, I couldn’t wait to start earning some money. Unfortunately, with the lack of financial education in schools, the only guidance I had was what I received from my parents and what I read. That only gets you so far. With all the advice dispensed this time of year, I thought a little bit more couldn’t hurt. Moreover, I gathered up some input from other twenty-something bloggers and included that here as well. Enjoy!

1. Find a something that you enjoy and do it for a living. This tip was originally find a job that you enjoy, but I realized that many people don’t consider the way they earn a living a “job.” If you find a job you truly enjoy, the money will follow. At least that’s what everyone says. I know I enjoy helping people (like doing service work). Even if I don’t do this for a living there are other ways to help people. Here are some suggestions on how to do that on a small budget.
2. Spend less than you earn. This goes hand-in-hand with getting out debt. Getting out of debt can be a huge challenge that can take some people years and years. Be patient and persistent and you will overcome it. Grad Money Matters offers some great advice on how to get out of debt.
3. Save. There’s great beauty in compound interest. If you need convincing that you should start saving now, take a look at this chart. Here’s a good post from I Will Teach You to Be Rich about saving and budgeting.
4. Have fun. Just because you’re not in college doesn’t mean you can no longer have fun. Here are some tips from others on spending less while having fun. Remember you don’t have to be totally cheap to have a good time. Read this post from Ramit if you need to be convinced. Here’s some advice from Grad Money Matters on Frugal Ways to Spend Time with Friends. Noah from Okdork offered this advice: “Pre-party. Drink a little before you go out, taxi to the place and you just saved a ton of money on drinks. Or bring a flask to the bar.”
5. Wear Sunscreen. This is very cliche, but it’s true. If you don’t have your health you can’t effectively take care of yourself or your finances. Find an activity that helps you stay in shape and participate in it frequently. This can be anything from running, to tennis, to yoga. Just take the time to take care of yourself.

I wrote this top 5 post as part of Problogger’s Top 5 group writing project. I’ll link to some other personal finance top 5’s later this week.

Advertisements

commercal bank are now facilitating their customer and clients in a very good way and they are introducing the new mortgage loan packages for the comfort of the bank clients. Today there is no problem to get a credit card through the banks. Their travel insurance plans are very beneficial for the clients who are found of travel through the world or contact an other insurance company for more details. An authentic online guide for the business tycoons about the tax act. Find out the new ways and tips to generate the great fund earnings for your welfare or organizations. There are lots of companies are offering their services online to provide you tax relief visit these web site and save your money. Apply your credit card today and get your credit card in few days after the complete processing of the credit card generator. Always try to avoid bad credit and become one of the most reliable customers of the band. Enhance the limit of your credit card account.