My Personal Finance Journey

Personality Test Results

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On April 7th, JT McGee from Money Mamba came up with the idea for a Yakezie Personality Type Blog Carnival.

The goals of this carnival were as follows: 1) connect Yakezie Personal Finance Blog Network members to one another, and 2) learn about how you operate from the inside out and share with your readers so that they can learn about you as well.

To participate in the Carnival, we were instructed to take the Jung Personality Type test (at the following link – HumanMetrics – Jung Personality Test), answer the 72 questions that it presents, and then research the meaning of the personality type code our answers generate on Google or another resource.
The 72 questions that the test asks do not actually take that long to answer, as they are all require “yes” or “no” responses. The subject matter of the questions involve different topics, ranging from how we feel in crowds to the basic way that we accomplish life’s tasks.
My Result


The personality code that my answers generated was ENFJ – Extraverted Intuitive Feeling Judging.


Found in only 5% of the population, Typelogic.com describes ENFJ’s as “the benevolent pedagogues of humanity.” The primary mode of living for ENFJ’s is focused externally, where issues are handled according how you feels about them, or how they relate to your personal value system.
For ENFJ’s, the deepest level of personal satisfaction comes from making things happen for other people. Typically, they do this through understanding, supporting, and encouraging others. They are often more reserved about exposing their beliefs than other extroverted people, because expressing them might interfere in bringing out the best in others. In this way, they are often good mentors and teachers.
ENFJ’s have an good ability to take interest in people, identify their strengths, and draw that strength out of a sometimes reserved interior. ENFJ’s, or teachers as they are sometimes called, identify easily with others, and often find themselves mimicking the characteristics of those around them.
Another somewhat interesting characteristic of this personality type is what was called the “first-shall-be-last open door policy.” What this means is that often times, an ENFJ will be helping one person, and half-way through the conversation, the phone rings, and someone else is requesting help from the ENFJ. The ENFJ will then deal with the 2nd person first until their need is stabilized before returning to assist the 1st person that came asking for help.
My Analysis of the Result


In my opinion, this personality type describes me with shockingly scary accuracy (at least in my opinion). Who knew this test could predict so well by asking such vague “yes” or “no” questions?!

First, I do rely heavily on my feelings in getting things done. This is one of the reasons that I have chosen a career in the health field because it is important to me to feel I am making a difference in something. For me, it is of the upmost importance to have my heart in what I do. If this is not the case, I most likely will not be able to do it successfully.
I also agree with this result because perhaps the time when I feel most “fulfilled” in life is when I have either 1) brought out a hidden talent in someone, 2) been able to reach someone on a personal level that is not receptive to personal interactions anyway, and 3) when I have helped someone accomplish a task or learn something new. Even though I do enjoy helping others learn, I definitely would not be teacher material, at least for the time being (in the sense of a 1st grade teacher, etc). 
One of my previous jobs involved training process operators to run different cleaning and sterilization processes of the vaccine line I worked on. Even though this was not actually my main responsibility, I derived a lot of satisfaction from guiding the operators to learn something new. And, I spent many hours doing so. Sometimes, I would focus too much on training others and would get some “professional reminders” to remember to commit time to a more independent project that was supposed to be 30% of my job.
How I Interpret This Result In The Context Of A Career


In the context of career pursuits, I think that since ENFJ’s derive the most satisfaction from enabling others to perform at their best, it will be important for me to find a job where I can guide and mentor others. This wouldn’t even need to be in a boss-employee way, just as long as I was able to transfer my knowledge to others. I think this is more important to me than actually doing the work myself.
Several Famous ENFJ’s


And, last but not least, for your viewing pleasure, listed below are several famous ENFJ’s from the history books.

Abraham Lincoln 
Ronald Reagan 
Barack Obama 
Sean Connery 
Francois Mitterand 
Dick Van Dyke 
Andy Griffith 
William Aramony, former president of United Way 
Gene Hackman (Superman, Antz) 
Dennis Hopper (Speed) 
Brenda Vaccaro 
Craig T. Nelson (Coach) 
Diane Sawyer (Good Morning America) 
Randy Quaid (Bye Bye, Love; Independence Day) 
Tommy Lee Jones (The Fugitive) 
Michael Jordan, NBA basketball player 

How about you all? Have you taken the Jung Typology Personality Test? What was your resulting type? Did you agree with the description? 


Share your experiences by commenting below!

    ***Photo courtesy of http://www.hr-specialists.eu/assets/images/poze-site/entrepreneurial-personality-test.png

    The Journey After Bankruptcy

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    Today’s guest post comes to us from Chris Mullen.

    The Journey After Bankruptcy

    In 2004, the laws regarding bankruptcy began to change. A bill was passed for how bankruptcy would be handled, which came into effect in 2005. Part of this financial bill was to make sure anyone submitting for bankruptcy would first take a debt management course. This was inputted into the bill to lower the frequency with which some were filing for bankruptcy. Given the high rate of bankruptcies filed, the government felt a need to make some changes.

    For those that filed seven years, ago their journey may be completed or at least closer to the right path. Once a bankruptcy is filed and the debts discharged, one’s credit is highly affected. First, the credit scores are already low given the need for bankruptcy, and they will remain low.

    During this time, a person has to consider what debts they should take on and what they should stay away from. For example, credit cards can help improve one’s credit scores over time, but they can also create a new debt situation. A bankruptcy on record also means high interest rates on credit cards, loans, and mortgages. The only type of loan that may not be affected by the bankruptcy are the pay loans with no credit check. The rates would be the same for any borrower, which is often quite high to begin with.

    It is best for someone that has filed for bankruptcy to take the seven years the bankruptcy is on their credit record to improve their credit with rise money lending practices. In this case, one should have a prepaid credit card that will report to the credit bureaus. They should also make regular payments on a mortgage or car loan.

    It is essential to have companies reporting good things about one’s outstanding credit. No reporting is just as bad as the scores will not increase, but often remain the same. Once it has been seven years, the bankruptcy can no longer be used against a person for credit, meaning interest rates can be comparable to the repaired credit amount one has in their financial reports over what it was nearer the bankruptcy.

    How about you all? Have you or any one you know ever filed for bankruptcy? If so, was it Chapter 7 or 13? Share your experiences by commenting below!

    Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.

    • @ The debt management class requirement for those filing for bankruptcy – I actually had no idea that this was required! Did everyone else know that this was necessary in order to file bankruptcy? I’m also curious as to whether the government pays for this or whether the payment for it gets lumped in to your debt that will be erased with the filing.
    • @ The concept of bankruptcy in general – To me (maybe it is just me that feels this way), bankruptcy, at times, almost seems too good to be true. The concept that your debts can be totally wiped clean after getting in way over your head is simply amazing! And, your credit report only suffers for 7 years? This seems too good to be true. OK, I know it can be argued that the people that experience bankruptcy won’t be able to get favorable financing in order to own their own home or start new businesses. However, in my opinion, it seems that the majority of people reaching bankruptcy probably weren’t on track to one of these goals in the first place. 
      • So, I’ll leave you all with one question I have – are the penalties for bankruptcy severe enough currently? Or, do you think they need to be tightened to deter it was occurring?

    ***Photo courtesy of http://www.eurodebt.com/images/bankruptcy_images/bankruptcy_service_300.jpg

    MicroMaximus – Reward Checking Account Transaction Tool – Review

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    Being the personal finance nerd I am, I am always on the look-out around the Internet for new tools to use to help me streamline my finances and take advantage of the many free money promos available.

    One of these tools that I’ve been exposed to recently is MicroMaximus.

    At a high level, MicroMaximus is a service that helps to reduce the headaches caused by the “nick-picky” monthly transaction requirements present in a number of the rewards checking accounts out there.

    Now that I’ve told you about MicroMaximus at a high level, let’s take a look at some of the finer details.

    Reward Checking Accounts and Bonus Offers

    To be perfectly honest, when I first landed on the MicroMaximus site, it was a little hard to tell what the site’s tools were for, as I initially thought it was a bill-payment tool. However, with a little understanding about the nature of some of the reward checking accounts out there, it becomes easy to see how the site can add value to one’s daily/monthly life!

    Reward checking accounts started as a way for smaller banks and credit unions to compete with larger national banks, and therefore, you won’t really find the best reward checking accounts at large national banks. Below are two resources where you can find reward checking accounts in your area:

    These rewards checking accounts offer super-favorable terms, such as low fees and HIGH interest rates. However, in order to receive these favorable results, you have to meet certain criteria. And, many times, one of these criteria is a minimum number of monthly debit transactions.

    An example of one of these rewards checking accounts for my state of Virginia can be found at the following link – 1st Commonwealth Bank of Virginia – Rewards Checking Account Details. In order to get their free Rewards Checking Account, which offers 4.01% APY, you have to meet the qualifications described below:

    • Use your Debit Card at least 12 times each month, 
    • And, complete at least one bill pay or create one direct deposit/ACH transaction and sign up for eStatements.

    What About National Banks?

    With the increased competition in today’s banking atmosphere, I am happy to report that I was not able to find any national banks that currently require a minimum number of monthly transactions for personal checking accounts (business accounts are a different story – see below). However, it is important to note that none of these are able to come close to matching the higher interest rates offered by the local banks. Even Bank of America, the bank with perhaps the least favorable terms of all, did not feature this requirement for personal accounts! Links to the banks I researched can be found below so that you can have a look for yourself:

    Bank of America Checking Accounts
    ING Direct Checking Account
    Ally Bank Checking Account
    Wachovia Checking Accounts
    US Bank Checking Accounts

    However, many of these same banks offer business checking accounts and free money bonus offers of anywhere from $25-$200 when you first sign up for their service AND meet several specific terms during the initial account-holding period. Some of the typical requirements for business checking accounts and getting this free money are shown below:

    • Spend $____ during the first three months of opening the account,
    • Set up a direct deposit to the checking account for your paycheck,
    • Maintain a certain average monthly minimum balance,
    • And often, make X number of transactions each month. 

    For me especially, since I have so many different checking, savings, and credit card accounts, the third requirement can be quite a pain! And, it is this third requirement (and the monthly transaction requirement for local bank Reward Checking Accounts) where MicroMaximus can come in handy and help you!

    How MicroMaximus Works

    MicroMaximus helps you achieve the third requirement above in the following way:
    • After you sign up for a new checking account, you request and subsequently receive a Visa, Mastercard, or Discover debit card.
    • You then enter the details of your debit card (name, billing address, credit card number, expiration date, and CVV number) in to the MicroMaximus system.
    • After clicking the “create account” button, you then can click on the “Transactions” tab.
    • From this screen, you then can schedule automatic $1 debit card transactions at the frequency you need as required by your rewards checking account.
    • The benefit of this is that you then don’t have to worry about whether or not you’re going to meet the minimum transaction requirement for your accounts since you’ve automated everything! Talk about a headache relief medicine!
    • The $1 transaction is paid directly to MicroMaximus. So, in effect, this $1 is the per transaction price/fee for the service.  
      • Note: I had thought that maybe MicroMaximus was some sort of bill-pay service. However, it is not. It is simply a way to schedule small $1 transactions (paid to MicroMaximus) to fulfill reward checking account requirements.

    Recommendations for How to Optimize Use of MicroMaximus


    Since times are tight with the economy nowadays, and there is the $1 per transaction fee involved with this service, there are several things to keep in mind in order to maximize the value achieved from this service. These are discussed below:

    • First, remember to exhaust all normal recurring bill-payment options.
      • What this recommendation means is that you should first set up automatic payments on your rewards checking account debit card to pay your normal monthly bills before tapping in to the power of MicroMaximus.
      • For example, let’s say that in order to get a $100 bonus for opening a checking account from Wachovia, you must make 10 debit transactions per month. I would first make sure that I link up my checking account debit card to pay 1) my Netflix monthly bill, 2) my electric bill, 3) my monthly donation to the Multiple Sclerosis Society, 4) my cell phone bill, and 5) my gas bill BEFORE using MicroMaximus to automatically schedule the remaining 5 transactions. 
      • In this way, you minimize the cost involved.
    • Second, make sure that the cost of using MicroMaximus is less than the bonus/rewards you receive from your checking account.
      • This may seem obvious, but I just wanted to emphasize it to be sure. You should make certain that the rewards you receive from your checking account are greater than your costs.
      • For example, let’s consider the hypothetical example of a checking account bonus of only $25 that requires 25 transactions per month. Naturally, if you have to use MicroMaximus to schedule 20 of those transactions, it will cost you $20, and most likely wouldn’t be worth it. However, if you are going to receive a $200 bonus by making 20 monthly transactions, MicroMaximus would be well worth your while! 
      • See what I’m getting at? Just use your common sense and you’ll be fine!

    I hope you’ve learned something about this new tool today, and definitely let me know if you have any questions.

    How about you all? Have you ever tried MicroMaximus? What other “cool” personal finance online tools do you use? 


    Share your experiences by commenting below!

      ***Photo courtesy of http://www.creditcarddeposit.com/guide/wp-content/uploads/2009/02/rewards.png

      Helping A Friend Get Out of Debt – Part 3 – Cut Your Interest Rates In Half

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      So far, in Part 1 and Part 2 of this series, I’ve discussed the following steps that my anonymous friend, Debtor Dan, and I have taken to put together a debt management plan in order for him to avoid the threat of bankruptcy.

      • Summarized the details of all of his different debt accounts in to one central spreadsheet. 
      • Determined the best debt prioritization method and finalized his Debt Free Action Plan.

      Both of these are important first steps to assessing your debt situation prior to considering more active measures such as debt consolidation. However, there is one more step that is needed to maximize Debtor Dan’s chances of paying off his debt as quickly as possible – negotiating a lower interest rate!

      How To Negotiate Yourself A Lower Interest Rate



      As is the case with many aspects of personal finance, negotiating a lower interest rate is not rocket science and does not require a degree in finance and/or marketing; the only thing that is required is the desire and initiative to get started by simply calling up the companies that manage your debt accounts and asking for a lower rate!


      However, taking this very important step can be quite scary, as I found out with my friend, Debtor Dan. Nevertheless, by putting together a precise script of what he needed to say during the call, the majority of the nervousness felt can be alleviated.

      Note: I’m going to present this information in the context of getting your credit card interest rates lowered, since those are often the debt accounts involving the highest interest rates. However, if you have other types of debt accounts, the same preparation/model can be used. Just be sure to adapt it to your specific situation.

      Preparing for the call


      As I mentioned above, Debtor Dan could not simply go in to the call to request a lower interest rate “cold.” By taking some simple steps, Dan and I were able to greatly improve his chances of lowering his credit card interest rates.

      In order to prepare for the call with the credit card companies, you will need to gather the following data:

      • Research what rates your credit card company is currently offering new customers for the same card you have.
        • For example, if you have a Chase Freedom Credit Card, you would visit their website and see that they are offering new account holders as low as a 12.99% APR interest rate. You would then make a note of how this compares to the current rate they are giving you.
      • Find out the national average credit card rate on Bankrate.com. 
        • The current average variable interest rate on purchases is 14%. You would then make a note of how your current rate compares with this.
      • Visit CreditCards.com and find another credit card that you are interested in. 
        • Once you isolate which you like, find out their terms (% interest and term) for doing a balance transfer from your current credit card to theirs.
      • Know how long you’ve been a customer with your current credit card and whether you have ever missed a payment or not.

        Do you have the information above compiled? Ok great! Now, it’s time to gather all of your records and make “the call of a lifetime!”

        Script for during the call


        As Kevin @ DebtEye mentioned in his guest post several days ago, the first step in making this call is to find the phone number of your credit card’s customer service department. This can be found either on your most recent credit card statement, or more easily, on the back of your credit card.

        Once you have located and dialed the phone number, I suggested the script below to Debtor Dan in order to ask for a lower interest rate:

        Debtor Dan: Good evening/morning/afternoon. My name is Debtor Dan. In the coming weeks and months, I’m going to be paying down my credit card balance more aggressively and want lower rate. Can do that for me?

        Credit Card Rep (Possibility A): Sure! Let me get that processed for you. (If this is the case, your job is done, and you just have to listen for the results!)

        Credit Card Rep (Possibility B – probably more likely, and the one you need to be ready for!): Uhhhhh….Why?


        Debtor Dan: I’ve committed to myself and my family that I’m going to pay off my debt more aggressively, and having a lower rate will help me do this. I’ve been a loyal customer of _____ credit card for ____ number of years and have never missed a payment. Other cards I have looked at, such as ______ card, are offering ____ % interest. Can you lower my interest rate by 40-50%?


        Credit Card Rep: That sounds reasonable. However, after reviewing your credit account here in my computer, it is not showing that your account is eligible for a reduced interest rate.


        Debtor Dan:  Thanks for taking the time to review this. However, that will not work for me. In addition to other cards offering significantly lower rates than you, I saw on your website that you are offering new customers an interest rate that is almost ____ % lower than what I’m paying. My interest rate is also ____ % higher than the national average of ____ %.  I have been a loyal customer for ____ years, and would prefer to not have to transfer my balance to a competitor. Can you match these rates or go lower?


        Credit Card Rep (Possibility 1):  I understand. It looks like the computer is now able to offer you a lower rate. Remain on the line for a little while I make the necessary changes. (If this is the case, your job is done! Pat your self on the back for a successful call!)


        Credit Card Rep (Possibility 2): I wish that I could help you, but I am not authorized to make this change.


        Debtor Dan: That’s understandable. No worries. If you are not authorized to make the change, can you give me your name and employee ID number and transfer me to your supervisor so that I can talk to him/her about this?

        After the customer service rep gives you his name, ID, and transfers you to his/her supervisor, you would then inform the supervisor that you were discussing the issue of getting a reduced rate with ____ (name), employee ID _______. This is important to instill accountability in the system.

        Next, you would basically repeat the same script used above with the supervisor. And, I will willing to bet that most, if not all of the time, this will work in getting your interest rate reduced. If it does not work, then the worst they can say is “no,” and you will be satisfied that you have done everything possible to get your interest rate reduced.

        I feel that I must also stress the importance of maintaining a professional demeanor during this call. You do not want to turn it in to a “yelling match.” You should not get upset, no matter what the customer service rep says. After all, it is not their fault. They are simply doing what they are told. Remember, it makes them more money to lock you in to a higher interest rate.

        If you do not succeed in getting your rate reduced, you would then want to explore other credit card options that offer lower interest rates, including the possibility of a balance transfer (provided that the fee to do so isn’t significantly high).


        How much can getting your interest rate lowered save you?

        Because credit card interest is “special” in that it accrues daily, getting your interest rate reduced can inflict serious savings in to your personal finances.

        For example, let’s say that before calling to lower your interest rates, your APR is 25%. And, by talking with the credit card rep, you get it lowered to 12%. This interest rate applies to your current outstanding balance of $5,000.

        Using the handy-dandy credit card calculator at Bankrate.com, the following results are seen, assuming that your minimum required payment is 3% of your account balance.

        • With a 25% APR, it will take a total of 308 months to pay off your balance and will cost a total of $10,600 in interest. (Note from Jacob – Simply incredible! It’s amazing that this minimum payment game is legal!)
        • With a 12% APR, it will take a total of 155 months to pay off your balance and will cost a total of $2,300 in interest. Talk about a large amount of savings! That’s almost an 80% reduction in total interest expense.

        Clearly, the potential savings that can result from this one call is simply enormous. Well worth the 1 hour or so of total time commitment needed to make the call.

        Where do you go from here?

        After talking to your debtors and getting your interest rates changed, be sure to update your Debt Free Action Plan spreadsheet with the new minimum monthly payments (they should be MUCH lower now!) and due dates.
        For Debtor Dan, the results of completing this step were quite significant. He was able to lower his APR interest rate by 60% and reduce his monthly required debt payments by $178.

        Once the three steps discussed in this series have been completed, you must then take a step back and examine your debt payment plan as a whole. To do this, look at your total amount of monthly income compared to your monthly expenses. Identify how much you can afford to pay towards your debt balances each month.

        I think that most people will find that the combination of a lowered interest rate and cutting back on extraneous monthly spending will enable them to effectively pay off their debt. However, if after examining your financial inflows and outflows, you determine that there simply isn’t enough money available to meet your minimum commitments, you should consider additional options such as debt consolidation and counseling. Remember, you are never alone is improving your situation.    

        How about you all? Have you ever made a call such as this to get your interest rates reduced on your debt accounts? How did it go? 


        Share your experiences by commenting below!

          ***Photo courtesy of http://www.creditcards.com/credit-card-news/images/hammer-dollar.png

          The Psychology of Shopping

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          Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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          The following is a guest post by Louise Tillotson. Enjoy! 

          The Psychology of Shopping

          After reading this article on the pricing strategies used for consumer goods, I started thinking about other ways in which retailers and service providers use basic human psychology in order to get us spending more money, or feel better about doing so.
          Got Gas?

          Perhaps the biggest trick, and certainly one which irritates me, is the fuel pricing ploy. In the UK at least, fuel is priced as a .9 in the penny, so a litre of petrol would be priced as 139.9p. The problem is, human nature dictates that most people reading that price would read it as 139p, which doesn’t sound nearly as much as 140p, or even £1.40 which it essentially is.

          Note from Jacob: For those of you reading from the USA, this = $2.30 USD per liter, or $9 per gallon. This is currently much more than the $3.60 per gallon we are paying! It sort of makes sense why Europeans use public transportation much more than we do! I sure don’t think I would be able to afford driving 40 miles to and from work every day if this was the price of gas! 

          The point-ninth of a penny is largely ignored, yet if you’re filling up a 40 litre tank, that extra 40p here and there can really add up.
          Eye It Up

          Go to any supermarket, grocery store, or other such store which has shelves rather than racks. Look at the goods which are at eye level. Are they the more expensive branded items?

          It’s been found that stores generally place the higher-priced goods on eye-level shelves as this seems to be where shoppers look first, and therefore buy more from. It sort of makes you wonder how this was first discovered. I wonder if this was the result of paid market research that has been done?

          The Landing Zone

          This is the tag given to the first 15 or so feet within a store. While in this area, shoppers are not yet in browse or buy mode, and will generally ignore special offers and product displays that greet them.
          So retailers are best keeping this area as clear as possible, to give their customers the space to gather their thoughts and begin their journey around the store.
          Speaking of which…
          Fresh Fruit and Veg!

          Virtually every store you enter which sells food will have fresh vegetables,  salads and fruits to greet you as you walk in. Call it accident, call it coincidence, but the fact remains that it’s actually clever mind games at work that dictate this. Studies have found that seeing fresh produce upon entry creates a more positive impression of the shop as a whole.
          As you walk around the store, you’ll be taken past a vast array of seasonal goodies, special promotions and higher-priced merchandise before reaching the ‘staples’; milk, bread, cheese and butter. Again, this is no accident.
          Power Steering

          Stores can also use the layout to steer you in a particular direction. When shopping, humans display herd instinct, and have a natural direction of movement. This directional instinct can dictate on which side the store has the entrance and exit doors, the checkout desks, the promotional gondolas and anything else which the store manager wants to see.
          Interestingly, the shopping direction differs between countries. Britons, Australians and Japanese shoppers tend to head to the left and move in a clockwise direction, whereas Americans prefer counter-clockwise browsing.
          When a store in Philadelphia tried to reverse the natural flow and get shoppers moving clockwise, the staff found that people would actually force their trolleys between shop displays in an effort to move counter-clockwise.
          So the next time you pop to the shop for just one item and end up with a basketful, don’t feel bad. It was meant to be!

          How about you all? What tricks have you seen or noticed that stores employ to get you to buy more? 


          Share your experiences by commenting below!

          Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.

          • @ Placement of good on shelves in a supermarket – In my hometown in Arkansas, Wal-Mart is very popular because the home-office is fairly close by. And, I know for a fact that shelf placement is a very competitive issue between the vendors at Wal-Mart. One of my friends growing up told me that Pringles has a full time analyst whose one job is to negotiate placement of Pringles chips in optimal locations throughout Wal-Marts worldwide! Amazing!  
          • @ Placing the fruits and veggies in the front of the store – This is definitely true in all of the grocery stores in my town! It’s very genius! I think it works because no matter what you are wanting to buy in the store, seeing all of the fresh fruit and vegetables makes you think that the store is VERY health conscious! 
            • Another interesting little ploy that stores use is to place the milk in the back corner of the store. This way, you have to walk through ALL of the other products in order to get to the milk that everyone needs when they go shopping! 
          • @ Direction of browsing – I am definitely guilty of being an American-counterclockwise shopper! That is crazy how instinctual that is! What direction do you shop in?
          • Several other grocery store tactics – Listed below are several other tactics I have seen in stores.
            • Placing expensive items on the left side of shelves. 
              • As you go down a row of shelves next time you’re at the supermarket, notice how the name-brand, expensive items are located on the left side of the row, and the cheaper, generic products are further down on the right side of the row. I think that this is catering to the way humans read from left to right. The higher priced items are placed to grab your attention first.
            • The floor texture
              • One of my marketing teachers once told me that the texture of floor is an important factor in influencing people to buy more. The floor at stores is almost always hard (no carpet). One of the reasons for this is that when women hear the tapping of their shoes/heels on the ground, it makes them feel more empowered, more confident, and thus more opt to buy stuff! Pretty wild, uh?!
              • Another tactic used by stores is to make the floor tiled. Apparently, having the floor tiled causes the grocery cart to be pushed slower by shoppers, giving them more time to see items to buy! Genius, right?!

          ***Photo courtesy of http://www.betterretailing.com/wp-content/uploads/2011/02/brain-psychology-shoppers.jpg

          How Much Is Your Smart Phone Data Plan Really Costing You?

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          The following was originally published as a guest post on Free Money Finance written by me on January 20th, 2011.

          Recently, I took a trip to the lovely land of Verizon Wireless.

          I embarked on this journey due to the fact that my family’s chocolate lab, Portia, had chewed up my cell phone the day before, after it accidentally fell out of my pocket. Poor phone!

          Needless to say – I was desperately in need of a new phone.

          Before I elaborate further on the story, one thing you should know about me is that one of the things that I feel is unnecessary in my life is a smart phone (i.e. a phone with internet, chat, Facebook, etc capability). I am a big fan of regular phone calls and text messaging, but I realize that with my personality, I would be way too addicted to a smart phone if I got it. Just think – a PF blogger having 24/7 access to their email and blog. My friends would never let me hear the end of it!

          Nevertheless, when I entered the store, I was amazed at how numerous the options for smart phones were (Droid, HTC, Blackberry, Palm – just to name a few that I saw). In fact, the options were so numerous that upon checking out, I inquired with the clerk as to if she could give me an estimate of the percentage of people that come in using smart phones.

          She mentioned that definitely more than half of people are using them currently. This definitely wasn’t very surprising, considering how common it is to see people using their smart phones in public.

          However, this got me thinking – just how much is having a smart phone / data internet plan costing consumers in the immediate and long term? Let’s take a look, shall we?

          Smart Phone Data Plan Cost Analysis

          According to Verizon’s website, an unlimited data plan (what I hear from my friends that most people choose) costs $30 per month on top of the regular phone/calling charges. That’s a whopping $360 per year! 

          In order to make this analysis more applicable to real life, let’s consider that our imaginary friend, Jim, is a tech-savvy 25 year old. He’s in the generation that grew up when social networking was becoming popular. He lives and breathes Facebook, Digg, Twitter – the works!
          We’ll then consider two competing scenarios.
          Scenario 1 – Jim pays the $30 per month every year from now until he retires at age 65.
          Scenario 2 – Jim instead saves the $30 per month every year, and invests the savings in a Total Market index mutual fund. His savings in this fund will be assumed to earn 10% per year in interest.
          Results
          • In Scenario 1, the total cost of Jim’s data plan is $14,760.00. Quite astounding if you ask me!
          • In Scenario 2, not only does Jim avoid this ~$15k expenditure, but his savings accumulate to $175,626.65 as a result of the miracle of compound interest.
          • Note: for the specific calculations performed to obtain these numbers, please see the Google Docs spreadsheet below at the link below. Simply save a copy to your computer to allow for editing the file.
          Conclusion

          The final step in this analysis is to try to make some sense out of these numbers. Clearly, $14,760 is a significant sum of money to be spending over the years for a data plan. Furthermore, if compound interest is added in to the mix, the magnitude of the savings amounts to something along the lines of a down-payment on a person’s house during his/her retirement years.
          While for me personally, having a smart phone data plan isn’t worth it, I think it is up to everyone to determine individually whether having a data plan provides enough value in your life. I know that for some of my friends, their smart phone is a “part” of their life – something they wouldn’t want to do without.
          The key is to know how much it is truly costing you, and to make your respective decision from there. 
          So, I leave you with a final question – Is it worth it to you? Share your thoughts by commenting below!

          ***Photo courtesy of http://www.cameraphonesplaza.com/wp-content/uploads/2009/08/smart-phone-definition3.jpg

          One Call, Save Thousands On Your Credit Card Bill

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          Today’s guest post comes to us from Kevin. Kevin is a writer for www.debteye.org, a fellow Yakezie group participant.  Debteye is a place where you can get unbiased opinions on anything related to personal finance.  Kevin previously owned a debt settlement company prior to joining the DebtEye team. He is a certified debt specialist and also works with credit counselors across the nation.

          One Call, Save Thousands On Your Credit Card Bill
          Did you know that a one simple phone call to your creditor can potentially save you thousands of dollars?  Creditors don’t have an incentive to lower your interest unless you ask for it.  However, there are some basic criteria that we can assume that a borrower needs to have. 
          Typically, banks will work with cardholders who have a proven track history of timely payments and carry some sort of balance.  This means that payments have never been more than 30 days late, and the payment amounts are MORE than the minimum required amount.

          Banks don’t want to lose you if you’re a well-paying customer, and they’ll do everything they can to keep you on-board.  Also, if your current interest rate is already pretty low (my guess would be 10% and under), you probably won’t have much of a chance getting them reduced. 

          So how exactly do you get your interest rate reduced? 
          The first step is to get a copy of your most recent credit card statement.  Find out the EXACT interest rate you’re currently paying.  Also, if you’ve been receiving “pre-approved” credit card mails in the past, I would look for those and keep it around (they will come in handy when negotiating your rate). 
          Next, find the customer service number on your statement or back of your credit card.  This number can usually be found on the front, and it is usually listed on the back of your statement as well.  When the customer service representative answers the call, tell them that you want to speak with someone who can help you lower your interest rate.   After they connect you to the appropriate person, I would probably start off the conversation with something along this line:
          You: “Hi my name is ______, I’m calling today because I’ve been a loyal cardholder with your bank for ____ years.  I noticed I was paying ___% on my credit card, and I was hoping you could lower the interest rate.  The reason I’m asking is because ______ (name of another credit card company) actually offered me 0% for 18 months if I transferred my balance over.  As you can probably see, I’ve never missed a single payment with you guys.  Is this something you can help me with?”


          Most of the time, this will do the trick.  Your creditor will lose you as a customer if you transfer your balance over.  This means no more monthly interest payments for years!  It’s important that you don’t advise the representative that you’re in some type of financial hardship.

          While it is true that banks have an incentive to help struggling customers, banks typically have different types of program for hardship candidates.  These programs will CLOSE your account and can impact your credit report. 

          If your lender does not cooperate with you, don’t give up.  It may take a few months before they decide to reduce your interest rate.  Be persistent and be patient!

          How about you all? Have you tried to negotiate a lower interest rate on a credit card or other debt account? Were you successful? What resistance did you encounter? 


          Share your experiences by commenting below!

          Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.

          • @ Minimum interest rate needed to bother asking for a reduced rate – I definitely agree with the idea that you probably shouldn’t bother asking for a reduced credit card interest rate if your APR is already around 10%. This is most likely the minimum that you can get anyway, so you’re already doing well for yourself and your bank account levels!
          • This same topic will actually be step 3 in my series of helping a friend get out of debt. In that post, I’ll build on several of the topics discussed here! Keep an eye out for that post, on the way soon!

          ***Photo courtesy of http://www.recessiontips.com/wp-content/uploads/2009/04/homermad-150×150.gif

          What Would You Do If You Needed to Buy a Car? – Part 1 – Sell Your Current Car

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          Note: This article was selected as the winning article in the May 2nd edition of the Best of Money Carnival hosted by Crystal @ Budgeting in the Fun Stuff. Head on over to Crystal’s site to check out the rest of the top editor’s picks!

          Recently, one of my graduate school friends asked me for some advice on how he should proceed in buying a car. Unfortunately, I was only able to give him general guidelines on this subject.

          Why was this you might ask? The reason lies in the fact that I have been lucky enough to avoid the car buying process since being out of college, since I have been driving my parents’ 2004 Honda Accord for the last 7 years. (Side note: Wow! I can’t believe it’s been 7 years!)


          While I may not be the world’s foremost expert on the car buying process (after all, the Buying a Car For Dummies book was written by Deanna Sclar, not Jacob @ MPFJ, haha!), the goal of this multi-part posting series is to force me to do some research on car buying and get some great feedback from you readers out there in the process!

          So, let’s get started answering the question, “What would you do if you needed to buy a car?”

          In thinking about how to shed some light on this topic, the best place I found to start was to determine the best way to sell your car (if you are someone who currently has a set of “wheels”, like the baby in the picture above).

          How To Sell Your Current Car

          Step 1 – Determine if selling quickly or selling for the highest price possible is most important


          When it comes to selling your car, I believe that people generally fall in to one of two categories. And, the first step in successfully achieving your car-selling goals is to identify to which category you belong. A description of each of these two categories is given below.

          • Category 1 – People who want to sell their car as quickly and easily as possible –
            • This category describes individuals to whom price is really not the main issue when buying a car. These people are well-off enough to be able to afford a car comfortably, with the biggest concern being that their normal life is not interrupted by the car purchase process.
            • Examples of people who fall in to this category are doctors, lawyers, professional workers, etc. that have enough money in their bank accounts to pay for a new car (or can easily obtain the financing required).
            • I would propose that these individuals typically receive high enough pay that the extra 10 hours of time that would be required to become a semi-expert in car value in their local area would not be worth it financially. After all, if you are a lawyer or contractor charging $300-$500 per hour, that extra 10 hours could be costing you THOUSANDS of Dollars.
            • However, you could also fall in to this category if you simply do not have the will, desire, or capacity to learn about the in’s and out’s of car buying and car value. While this is perfectly acceptable, I would definitely encourage everyone to read Category 2 below before deciding to which you belong.
          • Category 2 – People who need to fight for every bit of value from the sale of their car –
            • As you might have guessed, the majority of people fall in to this category, where price and value are the deciding factors for car-purchasing.
            • This category includes those of us that need to focus on optimizing our personal finances in order to achieve financial freedom. In other words, people in this category will not achieve financial freedom simply by showing up to a $500 per hour-paying nine to five job every day.

          Personally, if I were to sell my car, I would most likely be looking to squeeze every last penny out of the sale. Why is this? Simple! Because as an engineering graduate student, my time is currently only worth $9.58 per hour! (Side note: Wow! I am slightly not impressed by that figure! Maybe I should not have calculated that.) 

          If I can perform several hours of research and squeeze another $2000 of value out of the sale of my car, it could have a significant positive impact on my personal finances!


          So, take a moment and decide which category you belong to before reading the rest of this article…30 sec….45 sec….1min……Got it? Ok, time to proceed!


          Step 2 – Determine the value of your car


          Having determined what type of consumer you are in Step 1, Step 2 involves determining an appropriate value for your car. Please note that the value of the car is not simply the price that the local used car dealer offers to buy it from you in exchange for positive financing on a new car.

          As with many financial actions, selling your car is no different in the respect that there are many great resources available on the internet! Some useful resources that can be used to determine car value are shown below, as well as some specific results for my 2004 Honda Accord.

          • Edmunds.com – Used Car Appraisal Tool
          • Kelly Blue Book.com – Used Car Value Tool
            • Both of these websites are great, FREE, resources that you can use to enter the year, make, and model of your car-to-be-sold, and it will give you 1) dealer trade-in, 2) Private party, and 3) Dealer retail pricing.
            • However, I liked Kelly Blue Book’s appraisal tool more because there were more customization detail options available in comparison to Edmunds. I feel like this would result in a more accurate appraisal. Nevertheless, the price estimates generated by Edmunds (for my car) were more conservative (lower) and were therefore the ones cited below.
          For my 2004 Honda Accord, the pricing is shown below (from Edmunds).

           

          • $5,521 = Dealer trade-in value
          • $6,464 = Private party sale value
          • $7, 527 = Dealer resale value (so the price the dealer will charge the next person after you sell it to them).

          Step 3 – Determine where you want to sell

          After determining the estimated value of your car or truck in Step 2, it is now time to cash in your old car and think about where you want to sell it! As was implicated by Step 2 above, there are basically two options here: 1) trading in your used car at the dealership for a new car or 2) selling to a private party that you find.

          As can be seen from the pricing estimates above, you can make considerably more money by selling your car to a private party than you can by selling to a dealer. This is due to the fact that the dealer has to pay less in order to turn a profit for himself/herself when he or she sells the car again.

          Because of this, I would propose that your selling strategy be based off of the category of consumer you are (discussed previously).

          If you fall in to Category 1, the best place to sell your car is to simply trade it in at the dealership. This will be your quickest and easiest option. 


          If you are in Category 2, things are not so simply, and we are presented with several options for selling our cars to private parties. Each of these options is discussed below.

          However, in my opinion, the first step to selling your car publicly is to buy 1-2 nice-looking “For-Sale” signs to place on your car windows. On each of these signs, be sure to list the pertinent details, including price, mileage, year, model, etc. This turns your car in to a rolling advertisement. And, once you have the signs on your car, don’t be ashamed to frequently shop at crowded areas where your car in the parking lot will get lots of exposure.

          Places to sell your car for Category 2 Individuals

          • eBay – eBay’s motor section is always a good option. However, you must remember that there will most likely be a hefty selling fee involved.
          • Craigslist – Craigslist has become truly a great place to buy and sell items. Listings are FREE!
          • Newspaper ads – In the grand scheme of selling a car, the small fee charged by newspaper to list your car are nominal, in my opinion.
          • Facebook – Facebook isn’t just for teenagers any more! Every one is on it, and Facebook now offers the Facebook Marketplace to buy/sell items.
          • Friends/Acquaintances/Word-of-Mouth – This is probably the best alternative because you will not be selling to a complete stranger. However, be sure that both parties get a competitive price, even though you may be friends.
          • Online ads on car buying sites (Autotrader.com, Carsdirect.com, Edmunds.com)

          Personally, if I were to sell my car, after determining when should I sell my car, I would probably focus on the FREE options first (friends/word-of-mouth and Craigslist). Then, I would move to newspaper ads, car buying website ads, and then to eBay.

          How about you all? How would you or have you gone about selling your car? Did you proceed through a dealership or another outlet? Is price or speed of sale most important to you? 


          Share your experiences by commenting below!

          Essential Steps to Buy a House

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          The following is a guest post by William from Home Loan Finder.

          Essential Steps to Buy a House


          When it comes to buying a home, there are many things to consider. Not only do you have to have a lot of money for a down payment, but you should also be fully aware of the level of commitment you are about to enter into. A house is a major investment. Below are 5 things to keep in mind as you are embarking on this step in life.

          1. The price is always negotiable

          When you are ready to buy, home sellers are ready and waiting to sell to you. And, since you do not know the situation of the seller, you never know if they are anxious to sell or not. If they are, this can be to your advantage. If the house is more than you can afford, but you feel the seller might be willing to budge on the sale price, ask them to come down a bit. It does not hurt to ask and you may be surprised to discover that many sellers expect it.

          2. Buy what you can afford

          You may want that gorgeous house on the beach with all the windows and space, but you probably can’t afford it. Look at your finances and your prospects for the future and judge accordingly. When you buy homes, it is always easy to have our eyes be bigger than our wallet. If you get into something that will be detrimental to your financial life in the future, you will regret it. Be responsible, be thoughtful and make the best choice according to what you can reasonably pay.

          3. Have a down payment

          Gone are the days of financing for anyone and their dog. You must have a down payment now when you approach a bank and it should be at least 15% of the value of the loan you would like to borrow. The more you have saved the more a bank is willing to negotiate with you and give you the best interest rate and the best product. You will be in the drivers seat if you have done the hard work and saved the money.

          4. Keep your credit clean

          If you have bad credit, it will be difficult for you to qualify for a loan. It is important that you pay your bills on time and pay your outstanding balances off. A lot of credit card debt and other liabilities may stand in the way of you getting the loan that you need for your home.

          5. Make an offer that is in line with other homes in the area

          Many home sellers are expecting that you will want to negotiate the selling price. So, when you are ready to put a bid in on a house, be sure that it is in line with other similar homes that are in the same area. Look at the sales of homes similar to the one you want and find out what they were sold for. This will put you in a good position when you go to the bargaining table.

          If you look at all of these points, then you will be ahead of the game when you are ready to search for and buy your new home. It can be an exciting process and hassle-free if you do your homework and make the right decisions.

          How about you all? Have you been through the home purchase process recently? What steps did you take to make sure it all went smoothly? 


          Share your experiences by commenting below!

          Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.

          • @ The requirement to have a big down payment in order to buy a home – This is not necessarily true. You can get FHA home loans with very little money down. However, you must be ready to pay for Private Mortgage Insurance (PMI) each month if your down payment is less than 20% of the home value.
          • @ The price being negotiable – This is certainly true. Personally, I was able to negotiate the price of my condo down from $109,000 to $105,000. I’ve heard that as a general rule of thumb, you should at least offer 5-10% below asking price.
            • This is one of the important reasons to have a good real estate agent to help you. They will be able to advise you on the proper value of property in the area you’re investigating.
          • @ Buying what you can afford – This is certainly true as well. Typically, you can qualify for much more home than you can actually afford. Generally, you should target paying no more than 30% of your monthly income to mortgage payments. 

          ***Photo courtesy of http://www.redwoodbridges.com/images-spa-steps/spa-steps2.jpg

          My Current Asset Allocation and Net Worth Growth – January-March 2011

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          This post was selected for inclusion in the April 2011 Carnival of Passive Investing at A Rich Life. 

          Overall, the 1st quarter of 2011 has gone very well.

          The financial markets have been recovering fairly well, I have been enjoying my classes in my Chemical Engineering PhD program, Spring is just around the corner, and I just discovered that I’ll be getting a 30% pay raise starting June 1 due to being accepted for fellowship I applied for.

          Side Note: Even with this 30% pay raise, I’ll still be making less than half of what I was making while working as a full time engineer. You got to love graduate school!


          Let’s take a look at the pertinent details….

          Net Worth Growth (not including condo)

          From December 28th, 2010 (when the last portfolio update was published – see link below for more information) to April 1st, 2011, the S&P 500 index went up by 5.95%. Pretty nice little run for a quarter! Let’s hope it keeps up!

          My Personal Finance Journey – September-December, 2010 Portfolio and Net Worth

          During that time period, my net worth (excluding condo ownership) increased by 9.1%. 

           
          The reasons that I am slightly out-pacing the market growth are that 1) my asset allocation is very well aligned with my target percentages and 2) I’ve received some extra money recently from blogging and from my 2010 tax returns. Let’s hope I can keep up the good progress!

          Condo Equity Growth

          Currently, I have 10% home ownership in my condo (up from 9% at the end of December, 2010), with this accounting for 26% of my real net worth (so net worth subtracting the condo loan – this is different from the net worth above).

          Update on Financial Goals for 2011

          I have now achieved the following financial goals in 2011. I have done quite well I think – thanks to everyone’s help for keeping me motivated and accountable!

          • Am maintaining a my target of 6-9 months of expenses in a cash reserve fund in my Dollar Savings Direct high yield online savings account.
          • Have rebalanced my mutual fund portfolio to meet my asset allocation target %’s (75% equity, 25% fixed income overall) 
          • Have donated $1,150 to Multiple Sclerosis Foundation in 2011 (5% of income).


          For a detailed list of my short term, mid term, and long term financial goals, click on the link below:

          My Personal Finance Journey – Financial Goals


          Review of Current Asset Allocation (excludes condo)

          • Overall Fixed Income / Equity Allocation
            • Currently, 24% of my net worth is invested in fixed income instruments (cash or bond funds), and 76% is invested in equity.
            • This is almost perfectly aligned with my targets for these categories of 25% (fixed income) and 75% (equity).
          • Equity Allocation
            • In the equity portion of my portfolio, 74% is invested in US Domestic Equities with the remaining 26% being held in international equities. 
            • This is almost perfectly aligned with my equity breakdown targets of 71% and 29%, respectively, for US Domestic and international holdings.


          While the overall percentages for these categories looks pretty good, a detailed look (table below) at the allocation breakdown reveals the real story and provides for better analysis of the current state.

          Remember: a red flag goes off if your current % allocation in a category is greater than +/- 5% off of the target allocation. This is my trigger that I need to rebalance that aspect of my portfolio.

          % Cash (money market target 5%) 7%
          % non-inflat Bond Funds (target 15%) 14%
          % TIPS Bonds (target 5%) 3%
          % International Equity (Target 11%) 10%
          % International Emerging Markets (Target 11%) 9%
          % Domestic Large Cap (Target 8%) 9%
          % Domestic Small Cap (Target 8%) 9%
          % Domestic Small Cap Value (Target 14%) 15%
          % Domestic Large Cap Value (Target 13%) 13%
          % REIT (target 10%) 9%

          Analyzing my current asset allocation percentages, it appears that I am lucky enough to be exactly on target with all of my asset classes (within +/- 5% banding) .Therefore, no rebalancing is required. Always a good thing!

          My next moves for the April-May, 2011 time frame will be to do the following:

          • Continue contributing to my Roth IRA for the 2011 year. I only need to contribute $2500 more to fully fund it for 2011.
          • After fully funding my Roth IRA, any extra money I have will most likely go towards paying off my condo loan and obtaining even more equity in that investment. The only other option I would have is to invest in my individual mutual fund (taxable) account. But, I feel that it would be a more efficient use of my time to build up more equity in my condo. What do you all think?
          • Continue investing $41.67 each month in microloans to help the working poor in Peru. This is part of my 2011 goal of having $500 in microloans.
          • Try to reach my $5000 fundraising goal for the Multiple Sclerosis bike ride I am doing in June of this year. Currently, we have reached $3,800. If you are interested in making just a $10 donation, click here.


          Wish List 

          • At some point, purchase the Vanguard Total Stock Mkt Idx (MUTF:VTSMX) to replace S&P 500 index fund. This gives better, broader diversification to the US stock market.
          • Install a stacked washer/dryer combination unit in to my condominium. This one will be a long shot, but it just may be possible!

          How about you all? After fully funding your Roth IRA, would you either 1) gain more equity in your home ownership or 2) purchase additional investments in a taxable index mutual fund account? 


          Share your experiences by commenting below!

          ***Photo courtesy of http://www.greekshares.com/uploads/image/calculate_net_worth.gif

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