My Personal Finance Journey

Category Archives for Saving Money & Frugal Living

Are You Worried About Online Security?

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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. Enjoy!



Are You Worried About Online Security?
These days, we rely on the Internet more and more for shopping. It is available 24 hours a day, and we can shop for anything on the web, from the weekly groceries, to home ware and clothing. It is also the place we use to research and shop around for insurance, credit cards deals, savings accounts, investments, and bonds.

So, with all that we are using the Internet, the question of how can we be sure that our details are secure is of great importance to all of us.

Types of Scams

Some of the scams and fraudulent sites are getting more sophisticated and convincing, so it is important to know what you are looking for and stay observant whilst you are browsing. Installing your computer with anti-virus software and firewalls will help to protect against viruses and sites that access your personal information. You do need to be aware that some of these can slow down your computer, so be careful not to install more software than you need.

How To Protect Yourself Online

If you are browsing for financial services, credit cards, or bonds, the site you are reading is likely to be a comparison site, and you should not be asked to provide any card or bank details before you are actually signing up for a product.

Try not to be tempted by unbelievably cheap prices that seem too good to be true – they probably are. Stick to reputable retailers, as these will have reviews and customers comments and the more reviews the site has, the better. Any website that claims to be part of an accreditation scheme or professional body will display the logos for these organizations. Always click through the links to ensure it is a current and valid accreditation and not a less than ethical website pasting a picture of the logo that does not have a link.
One of the hazards of Internet shopping is that the web page address does not give you any indication of where the retailer is based. A genuine retailer will have their physical address listed within the website, as well as contact information and telephone numbers. If you are at all suspicious about a site, you always have the option to telephone or email to make contact with them before you make a purchase. Their response to a simple query in this way may allay your concerns, or indeed confirm your suspicions.
Once you are satisfied that you are dealing with a genuine retailer, you are likely to make a purchase. Always check your summary to ensure that unexpected charges have not been added to your total. Often, prices are quoted without tax or delivery charges to tempt shoppers, but a shock is in store when the total amount payable is displayed.
As you continue with your purchase to the payment page, a genuine and secure connection is indicated by the closed padlock symbol in the browser bar at the top of your page. Before you enter any bank or card details, it is important that you check this. If you do a lot of Internet shopping, you may also want to use a middleman service such as Pay Pal that will ensure the retailer does not have access to any of your personal information.
Using the Internet is so convenient and saves us time and money. By following these simple checks, we can also make sure it is completely secure.

How about you all? How do you protect your identity and personal information online? How cautious are you about sharing personal information? How much do you worry about it being stolen? 


Share your experiences by commenting below!

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

  • This article is on a topic that is becoming increasingly important to all of us these days, as it really is a brave new world out there! 
  • It seems like I get about 2-3 fraudulent emails per day from people pretending to be Amazon or eBay (eBay posers are especially prevalent!). Typically, these emails are wanting you to think they are from the real company so that you go to their fake website and enter your login information, which can then be stolen. It can be very tempting to fall for these scams because the fake recreations of the real websites are generally very good.
    • However, there are several methods that I use to avoid falling in to these traps, as discussed below:
    • 1) I never use links given in emails to log in to the company being referenced. Instead, I simply type in the normal (reliable) address in to the URL field of my browser (example – www.ebay.com). This ensures that you are going to the authentic website.
    • 2) You can generally also spot a fake website by the hyper link format in the email. If the email was from the actual company, it would be in the format www.ebay.com/payments (or something along those lines). On the other hand, scammers are forced to adopt a slightly different hyperlink format. An example of this would be something along the lines of www.v23r.ebay.info/wrer/payments. The scammers typically try to hide this slightly different address by using anchor text (the text that shows up as a link in the email) that is seemingly normal, such as “Login to your eBay Account.”
  • I wrote a good reference post back in June of 2010 on this site (How To Protect Yourself Against Identity Theft) detailing several easy steps one can take to protect his/her personal information online and in general life. Two of the most important steps (in my mind) that you can do are 1) use Opt Out Pre-Screen to reduce the amount of junk mail you receive and 2) place a fraud alert on your credit report. Both of these steps are simple, effective, and FREE!

***Photo courtesy of http://farm3.static.flickr.com/2381/2580085025_7f1cc8d205.jpg

Totally Money Blog Carnival – Most Expensive Weddings Edition – June 6th, 2011

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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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Click here to enter my free giveaway for 2 copies of H&R Block At Home Premium Edition

Welcome personal finance fans to the 22nd (can you believe we’re on the 22nd edition already?! I remember when Crystal started this thing!) edition of the Totally Money Blog Carnival, a weekly carnival that includes the top personal finance and money posts.

Before getting started, I wanted to congratulate FruGal and Miss Moneypenniless at TotallyMoney.com on becoming the new owners of the Carnival. It will be exciting to continue to see the Totally Money Blog Carnival grow.

In honor of June being a big wedding month (after brides and grooms graduated from college and high school in May), I figured it might be interesting to share some stats about the most wild, expensive, out-of-this-world weddings that I could find! You can read these random tidbits in red text interspersed throughout the articles.

Listed below are the top 3 articles of this week’s submissions!

Top 3 Editor’s Picks

1. Mike Piper presents It’s All One Portfolio posted at The Oblivious Investor, saying, “One of the most common investing mistakes is holding the same asset allocation in each account (IRA, 401(k), etc.), even if doing so results in higher costs, complexity, and taxes.”


These days, many of us operate our investing strategy through the use of multiple account types (401k’s, IRAs, annuities, taxable accounts, etc). This article by Mike Piper gives us a good reminder that it is most efficient and also least expensive to use the accounts to maintain one overall asset allocation. Just remember to place the different asset classes in their most tax-efficient location.

Also, an interesting side note is that Mike’s site was recently mentioned as a very high quality investing blog to read by Money Magazine. This is truly quite an honor! Congrats Mike!

2. The Saved Quarter presents Cut Your Budget: Erin posted at The Saved Quarter, saying, “See how Penny from The Saved Quarter helped Erin fit her real life into her budget, giving her ideas to be debt free and with a full emergency fund in two short years!”

Penny from The Saved Quarter has started doing a great thing by reaching out to her readers and seeing if she can help them optimize their monthly budget. In this post, one of her readers, Erin, lays out her current budget, and then Penny uses her expertise to recommend ways for Erin to cut her entertainment and food expenses so that she can pay herself first and pay off her debts quicker. Rock n’ roll Erin and Penny!

3. Investor Junkie presents Why I Never Trust Economists or Weathermen posted at Investor Junkie, saying, “If I had the chance to start my career path all over again, I would choose to be either an economist or a weatherman. What other field could you be in where you are wrong most of the time, and still get to keep your job?”
In this post, Investor Junkie broaches the question of how it is that society allows weather and economic forecasters (and I’ll add one of my own – individual stock advisors/managers) to continue to be paid for doing a job where they are wrong a significant amount of the time. I’ve definitely wondered this same question throughout the years, especially when I was reading in a finance book that economists only officially admit when a recession started after that start date has passed. What a great help that is!!! The occurrence of events like these only reaffirms my faith in index investing.

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5th Most Expensive Wedding – Chelsea Clinton and Marc Mezvinsky

This 2010 wedding cost a measly $5 million.  Key spending items were $600,000 for A/C’d tents for the guests (you can’t be sweating after all!) and an $11,000 cake. What’s funny is that one of my friends from high school had a $5,000 wedding cake and wasn’t nearly this rich.
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Listed below are the best of the rest of the submissions. Enjoy!

Budgeting

Andrew Boyd presents 10 Best Personal Financial Planning Tools posted at The Credit Letter, saying, “With a range of financial planning tools available online, it’s now easier than ever manage your money.”

Jason Price presents How to Budget with the Envelope System posted at One Money Design, saying, “How to make the most of budgeting with the envelope system!”

Careers

Miss Moneypenniless presents Surviving Unpaid Internships posted at FruGal, saying, “New Totally Money author Alex Varley Winter imparts her secret tips on coping financially and emotionally while trying to get a foot through the door.”

Gerry Sandis presents Youth May Find It Hard To Find A Job This Summer posted at RESUMEMag, saying, “There may not be enough funding for summer-jobs programs, but that doesn’t mean you shouldn’t still hit the pavement looking for your own summer job. Here are some tips to help you find some gainful employment this summer”

Lahesha Williams presents Using Social Media to Market your Small Business Effectively posted at Career Help For Christians, saying, “Marketing is an essential element of every business and can be the key to the success or failure of the business.”

Credit

Bob presents The Debit Card vs. The Credit Card posted at Christian Personal Finance.

Tim Chen presents The Walmart MoneyCard: Just Another Prepaid Debit Card to Avoid posted at NerdWallet Blog – Credit Card Watch, saying, “The Walmart MoneyCard is just one aspect of the superstore’s expansion into the financial arena: it also offers check cashing, bill payments, money orders and tax prep, among others.”

Juan Haffer presents The Best Travel Credit Card posted at Blue Sauger.com, saying, “This post shows how to find a good credit card for overseas use.”

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4th Most Expensive Wedding – Wayne Rooney and Coleen McLoughlin
The bill for this one was only $8 million. It didn’t take much money to fly 65 guests to Genoa for a party on a $125 million yacht. Just your average wedding….
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Debt

Briana Ford presents Starting a Debt Snowball posted at 20 and Engaged.

Justin presents Why You Should Stop Paying Down Your Debt posted at Money is the Root.

Finance

Maxim Kazawy presents 5 Best Dividend Paying Mutual Funds with High Income posted at Best Dividend Mutual Funds, saying, “Dividends provide an instant cash flow return on your investment and also act as a downside protector in bear markets. Also, the US stock markets have lost 2% annualized over the last 10 years. If you were invested in dividend paying mutual funds during this time, you would probably have made 5% compounded annual gains. In this article, we will go over 10 best mutual funds that pay dividends.”

Joe Morgan presents Notice of Mortgage Protection Insurance, a Scam. posted at Simple Debt-Free Finance, saying, “Is Mortgage Protection Insurance a good idea? I don’t think so, and here’s why.”

Matt Mason presents What Is The Best Investment? posted at FYMO Personal Finance Blog.

Financial Uproar presents My Updated Investment Strategy posted at Financial Uproar, saying, “My updated investment strategy, and how it combines active and passive investing.”

Alexander presents The Dividend Growth Model posted at Dividend Stocks, saying, “This stock valuation model takes a look at divided growth and uses it to help you decide whether or not the investment is a good buy.”

Sun presents What Makes A Good Checking Account posted at The Sun’s Financial Diary.

Crystal presents Craigslist – Garage Sale Leftovers posted at Budgeting In the Fun Stuff.

Frugality

Philip presents Find the Cheapest Gas In Your Zip Code posted at PT Money: Personal Finance.

Glen presents Take Advantage of Free 2011 Reading Programs During the Summer posted at Parenting Family Money.

Aaron Elder presents Frugal Fail: Renting your cable modem is harmful to your wallet posted at Below Your Means: Living well by living within and growing your means.

retirebyforty presents Groupon VS Google Offers posted at retireby40.org, saying, “Groupon is about to face it’s biggest challenge yet – the 800-lb gorilla named Google Offers.”

Courtney Sperlazza presents When expensive is frugal: a stroller story posted at Well Wise Happy.

Tim Fraticelli presents Negotiating Anything posted at Faith and Finance, saying, “Negotiating doesn’t have to be scary. These tips will help you in almost any negotiation – from salary, to car purchases and garage sales. Negotiation is a skill that can be improved IF you practice.”

Anna presents What are Grocery Ecoupons? posted at Think ‘n Save, saying, “Paperless grocery coupons, or ecoupons, are becoming more common. We show you how to find and load this type of coupon.”

The Amateur Financier presents Frugal Friday – Medicine posted at The Amateur Financier, saying, “A guide to saving on medicine, something we all need (and all too many of us spend too much money on)”

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3rd Most Expensive Wedding – Prince William and Kate Middleton
This wedding is estimated to have cost around $34 million. Most of the money was spent on security for all of the VIPs. However, they saved a little bit to pay for $800,000 in flowers and an $80,000 cake. Take that Chelsea Clinton with your cheapskate $11,000 cake! Go back to America and try again another day.
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Money Management

Tom Drake presents Focus on the Big Things posted at Canadian Finance Blog.

Outlaw presents Online Stock Broker Comparison for Do-It-Yourself Investing posted at Outlaw Finance: Investing Blog.

Boomer presents When To Fire Your Investment Manager posted at Boomer & Echo, saying, “You should hire a manager only after careful research and thoughtful deliberation. The decision to fire a manager should be made in exactly the same way.”

My Journey presents June 2011 Net Worth Update posted at My Journey to Millions, saying, “From May 2, 2011 to June 1, 2011 my net worth has increased 8.69%. From January 18, 2011 to June 1,2011 my net worth has increased 33.36%”

FMF presents Seven Keys to Get Up, Get Speaking, and Get Paid posted at Free Money Finance.

MoneyCone presents 10 Questions To Ask Your Bank Before You Open An Account posted at Money Cone, saying, “Fine prints, who reads them right? At least until you are hit with fees for violating some rule buried in fine prints!”

Hunter presents Financial Secrets Are Cheating posted at Financially Consumed, saying, “Poor communication between couples is often cited as a leading cause of stress and break-up. Keeping financial secrets in a relationship, for any reason, is deceptive behavior and can only lead to a loss of trust.”

Dr. Dean presents A New Credit Temptation! posted at Dr. Dean’s TheMillionaireNurse.com Blog.

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2nd Most Expensive Wedding – Vanisha Mittal and Amit Bhatia
There’s an old adage that states that when steel tycon billionaires and investment bankers get together, good things happen! Well, that’s exactly what happened here. This 2005 wedding cost $60 million.  Key spending items included paying to rent out Versailles (that’s that little palace outside of Paris) and send out invitations in silver boxes. Why not right?!
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Other

Andy presents Health Insurance and Health Care Costs Are Crazy posted at Tight Fisted Miser, saying, “I have written before about the crazy cost of health care but a recent experience has inspired me to write about it again.”

liverealnow presents Money Problems: Insurance posted at Live Real, Now, saying, “Do you know what kind of insurance you need and how much to get?”

Ken presents Home Business Start-Up: Obtaining Business License and Permits posted at Spruce Up Your Finances, saying, “Starting a business is not as easy as just thinking of a business concept and opening your doors to the customers immediately. Before you can start conducting your business, there are a few things that you have to do such as obtaining the required business license and permits”

Neal Frankle presents How I Got My Free Credit Score Online With No Credit Card posted at Wealth Pilgrim: Money Management Advice, Financial Stess Management, Addiction Recovery Plan & Resources, saying, “If you want to get your credit score for free online, you can do so without using your credit card.”
Teacher Man presents Investing Series ? Stocks (Part 1) posted at My University Money, saying, “Part One of the stocks portion of our investing series. We talk about what stocks are, and why they will never fail.”
Pinyo presents How to Review and Update Your Homeowners Insurance posted at Moolanomy, saying, “Many people neglect to update their homeowners insurance policies as time goes on. Here are two insurance factors you must review periodically to avoid being underinsured when disaster strikes.”

 

Real Estate

Barb Friedberg presents HOW TO CAPITALIZE ON THIS ECONOMY posted at Barbara Friedberg Personal Finance, saying, “With interest rates at all time lows, maybe now is the time to take out a mortgage, or finance a rental property or business endeavor.”

Jennifer Martin presents 5 Tips to Negotiating to Buy a House posted at The Negotiation Board, saying, “Take advantage of this extreme home buyer’s market and learn how to expertly negotiate the purchase of your next home with these five strategic tips.”

Saving

Melissa Batai presents My Unusual Savings Plans – Save $5 Bills and Change posted at Mom’s Plans, saying, “Now that my husband has a full-time job and I am bringing in more money, I expect that we will be able to meet our monthly obligations, but there isn’t much room for extra savings. So, I have decided on this unusual savings plan: All change will go in a jar and be saved for a new car. All $5 bills will be saved for a down payment on a house.”

Buck Inspire presents Auto Insurance Shopping posted at Buck Inspire.

Jim Yih presents Saving for retirement is simple, not easy posted at Retire Happy Blog, saying, “Saving for retirement is simple, but not easy. Although saving rates are low, Canadians can utilize some key strategies to save for retirement.”

Control Your Cash presents Index Funds Don’t Work in Bear Markets posted at Control Your Cash: Making Money Make Sense, saying, “We tell ourselves that index funds always work even though there is a voice of common sense within each of us that tells us that it cannot possibly be so. How could there ever be an asset class that is worth buying at any price?”

Spending

Glen Craig presents Google Wallet and the New Wave of Paying for Things posted at Free From Broke.

Money Beagle presents Missed Opportunities At The Gas Pump posted at Money Beagle, saying, “What gas price situation bugs you the most?”

Kevin presents Don’t Get Fooled: High Pressure Marketing Tactics posted at Invest It Wisely, saying, “Remember to take your time and look at the fundamentals before committing to any big decisions. If the deal really is that great, then why would the salesperson have to try so hard to sell it? In the end, examine the fundamentals, look at the numbers, and, just like with women in the bedroom, make sure the salesperson understands that ‘no’ means no.”

South County Girl presents A trip to Michaels… =) posted at South County Girl, saying, “How my bridesmaid and I saved a ton of money making our own hair accessories for me and my bridal party for my wedding instead of paying $49-$100 per flower clip from David’s Bridal.”

Fred Lee presents Unique Father’s Day Gifts That Don’t Break The Bank posted at Parenting Squad, saying, “Don’t cave to simplicity. If you’re looking for unique, inexpensive, or even free ways to show dad he’s the prince of papas, consider these ideas.”

Tom presents Having a Baby on a Budget posted at StupidCents, saying, “Having a baby on a budget will change your finances forever. Budgeting for a baby is something I want to be prepared for when the time comes.”

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No. 1 Most Expensive Wedding – Prince Charles and Lady Diana
When adjusted for inflation, this 1981 wedding cost $110 million. Not bad right?! My favorite part about this one was the cake. It took 14 weeks to prepare, and there was a backup cake, just in case an accident occurred with the first! Nice!
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Taxes

Odysseas presents Not Even the Unemployed are Exempt Come Tax Time posted at Wallet Blog, saying, “If you’ve recently lost your job, you’ll be frustrated to find out that you still have to pay taxes on your unemployment benefits — but I have a few tips on how you can lessen this burden on your financial situation.”

Well – that concludes this week’s edition of the Totally Money Blog Carnival. Submit your blog articles to next week’s edition (scheduled for June 13th) using the handy carnival submission form. SpruceUpYourFinances.com will be the host. Get excited!

Also, if you are interested in hosting an upcoming edition of the Carnival, take a quick look at the hosting requirements, and then contact Budgeting in the Fun Stuff about arranging a hosting date.

***Photo courtesy of http://www.lehmannmansion.com/uploads/dd/04/dd047d68df946ca2ef6b16fccf947902/from-Mary-Hill-BethMarkCar-in-Front.JPG
***Wedding stats sourced from http://www.businessinsider.com/most-expensive-weddings-2010-7#1-prince-charles-and-lady-diana-12

Debt Consolidation – The Pros and Cons

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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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Click here to enter my free giveaway for 2 copies of H&R Block At Home Premium Edition

The following is a guest post. Enjoy! 

Debt Consolidation – The Pros and Cons

Getting on top of debt can be a full time challenge, especially if personal circumstances have changed since a loan or credit card was applied for.

No matter how the debt has come about, ignoring it can lead to serious consequences that are best avoided. Arguments in the family about money are one of the main reasons relationships fail, so making sure that there is a good debt management strategy is vital to a happy family life.

Understanding the Debt Consolidation Solution

Debt consolidation loans can be a good way of restructuring financial affairs so that they are more manageable in the medium term.

For those with a good credit history, applying for a new fixed term, fixed rate loan should be a straightforward way to raise new funds with which to pay off existing high rate borrowings. Those with less than perfect credit histories could benefit from a new loan even if the terms are no so advantageous as the good credit customers.
Debt consolidation loans work when there are large amounts of high rate debt outstanding. Typically, this means high balances on credit or store cards, where the monthly interest charged can be close to 20% annual percentage rate. These loans can also help where there are existing loans where the monthly payment is high due to its short term nature (for example, a two year car loan). To reduce the monthly net cash outflow, the new loan has to be over a long term and at the best possible interest rate. The total amount of interest paid over the life of the loan may be higher that the existing debt, but it has the advantage of reducing the monthly payment to an amount that can be afforded. This can then help free up cash for other important bills.

The Limitations of Debt Consolidation Loans

This approach can only work once or twice. What is also needed is a change of lifestyle so as not to increase the amount of debt once the debt consolidation loan is in place. Credit card usage needs to drop and additional borrowing put on hold, so attitudes to borrowing and how to live within a set budget are as important as clearing existing debt balances.

It may even be that a change of lifestyle can help get your finances back under control more quickly and easily than applying for a debt consolidation loan. If this is the case, then look for a zero interest credit card transfer deal and use the free period to pay down the balance. This will be far cheaper than any new loan can ever be.

It may be possible to combine these two approaches to make the best of both options available, where interest free borrowing can be achieved combined with a smaller debt consolidation loan.

If all of this sounds complex and frightening, then free advice and help is available from a number of debt counselling sources. Whilst inactivity is not a good idea, neither is indecent haste, so checking all options available and making sure that you have the best solution to match your personal circumstances is the best approach.

How about you all? Have you ever used debt consolidation loans? If your debt was spiraling out of control, what method would you use to combat the problem? Did you ever consider 0% interest credit card balance transfers? 


Share your experiences by commenting below!

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

  • Great article here! One thing I’ve always wondered is if there are any qualifications (such as income level) in order to obtain a debt consolidation loan? Does any one have any experience with this?
  • I think that it’s also important to point out that debt consolidation loans are not an “easy way out.” They should only be used if someone is having real trouble making the minimum payments on their credit cards each month, whilst still having enough money to live on. 
  • For most people, who merely have more debt than they’d like and want to get rid of it, debt consolidation most likely is not the solution. However, what is the solution is to 1) collect your debts, 2) finalize your Debt Free Action Plan, and 3) call your credit card company to get your interest rate reduced.

***Photo courtesy of http://www.flickr.com/photos/exurban/4857586543/sizes/m/in/photostream/

Home Insurance For First-Time Buyers

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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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Click here to enter my free giveaway for 2 copies of H&R Block At Home Premium Edition
The following is a guest post written by Katie Sheeran of the insurance website, Policy Expert.co.uk. Enjoy!

Buying home insurance for the first time can be a daunting and expensive task. However, insurance companies can often look favourably on first time buyers as they have no previous claims and they typically have smaller properties – often resulting in lower premiums.
To help you get the very best deal and save money on your home insurance, take note of these simple tips:

Compare Online

To help get the best deal on your home insurance, try comparing home insurance quotes online. This can really help you find the right deal at the right price. Remember to always compare home insurance quotes  on a like-for-like basis – looking at policy features as well as price. Even if you don’t purchase from them, these websites are a great starting point en route to purchasing first time home insurance.

Get Insurance Savvy

Knowing what affects your insurance premium could help you find a cheaper deal that still meets your insurance needs. Insurance companies will look at how risky your home is and then base the insurance premium on this. So, in order to get a lower quote, make sure your home is as safe and secure as it can be. By ensuring you have good quality locks on your doors and windows and an alarm that links to a security company or a neighbourhood watch scheme, you may be able to lower your home insurance premium. While this may cost a little bit extra now, it could well pay for itself with a lower home insurance quote.

Every Little Bit Helps

When you’re buying your home insurance, you’ll normally be asked how much excess you’re willing to pay. This is how much money you agree to pay should you ever need to claim. If you pay more excess, your premium will usually be reduced. But make sure you’d be able to pay that excess in the event of a claim.

Know What Insurance You Need

One thing to always look out for when purchasing home insurance for the first time is accurately calculating the amount of contents cover you need. If you overestimate it, you could be paying for too much cover that you don’t really need. Be sure to do a thorough analysis of how much contents cover you need for all your belongings before you make your home insurance purchase.

How about you all? What were the important factors for you when you were buying homeowner’s insurance? What advice would you offer to first-time home purchasers? 


Share your experiences by commenting below!
Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.
  • When I was going through the process of getting homeowner’s insurance for my condo last year, I never did any comparative analyses on if new vs. existing home owners paid less on home insurance. It’s an interesting question though! What’s everyone else’s take on this?
  • @ Comparing Online – I definitely agree with this technique. When I purchased my homeowner’s policy, I went online to the websites of pretty much all of the major national insurance carriers (Nationwide, All State, Geico, Shelter, etc) to find out the cost of the monthly premiums. This gives you a good idea of the market price for insurance so you can know how hard or little to bargain when you are making your final decision.
    • Also, I think it’s a good idea to place an automatic reminder on your calendar once a year to shop around the homeowner’s insurance market again to ensure you are getting the lowest price. Don’t feel like you have to be locked in to one policy for the entire time you live in your residence.
  • @ Getting Insurance Savvy – It’s really amazing what can cause your monthly homeowner’s insurance premiums to go down. For example, having smoke detectors and a fire extinguisher can lower your cost!
  • @ Amount of your deductible – I am a big believer in having a fairly large deductible for my homeowner’s insurance, and then making sure I have an adequate amount of cash in my emergency fund in order to cover the deductible. By having a high deductible, you can decrease your monthly premium payments significantly.
  • Last year, when I was deciding which homeowner’s insurance policy to take, I wrote an in-depth post about the various considerations one can think about when purchasing housing insurance. You can view this post at the following link – Homeowner’s Insurance. This was a pretty long post, so I’ve tried to summarize some of the key points below:
    • Homeowner’s insurance has three major components – 1) personal property coverage, 2) dwelling coverage, and 3) liability coverage. All are important factors to consider when deciding how much of an insurance policy you need.
    • The best way to determine how much coverage you need is to take a written and pictorial inventory of the components of your home.
    • Homeowner’s insurance covers most common “perils.” However, damage due to floods, earthquakes, and pets is not covered, unless your area is a declared a national disaster zone by The President. If it is declared a disaster area, FEMA insurance will cover you (hopefully).
***Photo courtesy of http://farm4.static.flickr.com/3388/3185860301_966ef0aeaf.jpg

When Splurging Was the CORRECT Thing To Do

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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 guest post was written by me in February of this year for Life and My Finances as part of a “Yakezie blog swap” where members of the Yakezie Personal Finance Blogging Network pair up and exchange guest postings on a common topic. The topic of this blog swap was to discuss a time that you were happy that you splurged on a purchase. I wanted to post it here as well so that you all would have a copy! Enjoy!

When Splurging Was the CORRECT Thing To Do

After seeing the topic for this blog swap and enthusiastically signing up, I soon realized that it would not be very easy for me to select a topic about which to write. “Why is this?” You might be asking. “It’s probably because this guy is just another one of those tightwad personal finance blogger types.” 
Well, I guess in a way, that would be correct. Through analyzing my past spending patterns and planning out my finances in advance, I’ve luckily been able to (in recent years) curb most of the spontaneous spending that would qualify as “splurging.”
TheFreeDictionary.com defines splurging as “an expensive indulgence; a spree.” In looking at my past, I was able to come up with two instances that would qualify as splurging. Except, in these instances, I was VERY glad that I did splurge! Read on to find out more.
Splurge # 1 – Spring Break Trip to Cancun – 2005

The 2004-2005 year period was my freshmen year of my undergraduate studies at the University of Arkansas. 
Freshmen year was a great time in life. The Freshmen level classes were easy (or maybe easier would be a better word because I probably thought that they were hard at the time I was taking them), Facebook was just catching on, living in the Honor’s College dormitory was fun because I was able to meet a lot of new people, and best of all, it was interesting to watch all of the kids that had been sheltered in high school go crazy and make mistakes. In addition, I was 19 years old, and was still able to go to a party on Friday night, sleep for 3 hours, and wake up to go ride my bike for 5 hours (eating Cliff bars for breakfast on the way to the cycling meet-up spot).
Another very memorable experience from Freshmen year of college was Spring Break! For this special occasion, a group of approximately 6 of my friends from high school and college embarked on a week long trip to Cancun, Mexico. Remember, this was before the recent storms destroyed the beaches down there, so it was still quite nice! It also worked out well that the legal drinking age in Mexico is 18 years old.
Naturally, we wanted to pull out all of the stops for this trip to make it a memorable one. We stayed in a beach front, all-inclusive resort very near all of the bars and clubs in downtown Cancun. And, furthermore, we got the all-access VIP party package to make sure we enjoyed the nightlife. 
All together, the trip and airfare would end up costing about $1,500. While this was a lot of money (especially for a college student who didn’t have any savings from a full time job), and definitely set me back from my savings goals for the year, I would not trade the memories gained from the trip for anything. 
It was money well spent indeed! This experience also helped me realize several important concepts that I can still apply in my daily life. See below for more details.
Financial Lessons Learned From Splurge # 1
  • Buying drinks at a bar or restaurant is a rip-off. It’s better to drink before you go out.
  • Be cautious of “extras” that a travel company or hotel offers to tack on to your package once you arrive at your destination. These can add up quickly!

Splurge # 2 – Hiking and Backpacking Gear – 2010

Being a hiking, backpacking, trail running, and all-around camping enthusiastic, it is fitting that one of my few financial flaws is being enticed to spend money on high-tech hiking/backpacking gear. Enter the scene of Splurge # 2. 
This splurge was more recent (just last year in 2010). I was wrapping up my last few months living in the suburbs of Philadelphia before moving to graduate school and was getting slightly fed up with the lack of mountainous outdoor activities in the area.
So, to make certain that I was properly geared up for backpacking once I moved to my new location for graduate school, I bought the following items in a 6 month period:
  • Leki treking poles – $200
  • Lightweight tent – $125
  • Baltoro 70 Backpack – $280
  • Prolite air mattress – $100
  • Camping stove – $35
  • Water filter – $100

Clearly, this is a significant investment of money in backpacking gear.

However, I was glad that I made the purchases because 1) I had done a significant amount of hiking and knew that backpacking was something I wanted to take up more seriously, 2) my cash flow while working at a full time engineering job would be more than my income in graduate school (which has turned out to be 67% lower than my f/t job income by the way), and 3) getting more involved with hiking would be directly in line with my Purposed Focused Financial Plan and my life values.

Financial Lessons Learned From Splurge # 2

  • Large purchases are OK, as long as they are planned out in advance
  • Purchases made to support your core life values are very useful.
In conclusion, I was ultimately able to learn a lot from my two splurging experiences. I think that the key message that pervades all of this is financial planning. We all need to make sure that our current spending and savings habits line up with the broad goals we are trying to reach. 
Personally, I try to assess my current financial position once per month to make sure I am on track and/or make adjustments. Then, once per year, I do a detailed “soul-searching” level analysis of my life values and reassess my financial goals.

How about you all? How often do you splurge on purchases? Are you more often glad that you did, or do you wish you could undo your actions? 


Share your experiences by commenting below!

    ***Photo courtesy of http://www.stationstops.com/blog/wp-content/uploads/2008/07/fotolia_8215027_xs.jpg

    Find Out Your Credit Score For Free With CreditKarma And An Analysis of My Results

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    Click here to enter my free giveaway for 2 copies of H&R Block At Home Premium Edition

    The title of the infographic below is “Financial Responsibility in the United States.” I have to admit that I literally “laughed out loud” when I saw this title (please pardon the reference to emoticon abbreviations – i.e. LOL). Why did this title make me laugh, you may ask?

    Simple. The concept of being financially responsible in the US seems to be becoming less and less important. Why own something when you can just buy the car or cell phone on credit, right? Therefore, maybe a better title to this graphic would have been “Financial Irresponsibility in the United States?!”

    Regardless of my personal feelings on the situation, the infographic gives some important insight in to the credit scores of the US public. I’ve tried to summarize these in bulleted form below:

    • The average US credit score is 692.
      • A person’s credit score can range anywhere from 300 (minimum) to 850 (maximum), with higher scores indicating a higher degree of credit worthiness and that you are more dependable in paying back debts.
      • A credit score of 720 is generally regarded as the minimum you want to have in order to qualify for the most favorable credit terms (think lower interest rates!)
      • I admit that the national average of 692 is slightly higher than I expected it to be, stemming from the magnitude of debt problems I hear about from friends and the financial media. 
    • There is a clear trend that credit scores get progressively worse, as you go further south in the United States.
      • Texas, New Mexico, Nevada, and Louisiana have, on average, the lowest credit scores and the higher occurrence of personal bankruptcy filings. 
      • This makes me wonder – what causes this? Is it that financial education (both in the home and in schools) is worse in the Southern states? Do people just have less money? Is cost of living more expensive?
        • If any one has any theories on this, definitely chime in/comment below!

    How To Find Your Credit Score Absolutely Free (no credit card information required)


    If you have read my previous series on building credit history and improving your credit score, you’ll know that I am a big fan of using Annualcreditreport.com to obtain my credit report for free once per year.

    However, one thing that I have been making up stupid excuses about not doing is checking my actual credit score. One of the these less-than-robust excuses was that I didn’t want to pay the $15-$30 to check my credit score through one of the three credit agencies – Transunion, Experian, or Equifax.

    But, this all changed last week when I was reading a blog post from a blogger friend describing her use of CreditKarma.com to get her real time credit score absolutely for free at any time! Since it seemed to have worked for her and more importantly, be secure, I decided to give it a go!

    To find out your credit score for free from CreditKarma, simply follow the easy steps below:

    • Go to https://www.creditkarma.com/signup.
    • Create an account and password.
    • Enter your personal information (note: this does include entering your Social Security Number).
    • Confirm your identity by answering some simple multiple choice questions about your past (typical questions you have to answer when requesting a credit score/report).
    Once you have done this, you will then be able to view your credit score. Sounds easy right!? It is! 
    My Credit Score Results and Analysis

    As the Credit Karma screenshot below indicates, my credit score result was 754, with an overall credit rating of “Excellent.” This is the score reported by the TransUnion credit rating agency. The results also showed that I am in the 80 percentile of credit scores in the country, meaning that only 20% of individuals have a credit score higher than mine. 
    Overall, I was pretty satisfied with this result. Probably two of the biggest things that helped to obtain this score were 1) never missing a credit card payment and 2) taking out a small personal loan from a local bank several years ago, with the sole purpose being to accumulate credit history.
    Along with simply displaying your credit score (which will be updated periodically, and you can keep logging in to view it for free as many times as you like!), Credit Karma has several additional features. 
    One of these pretty cool features is what’s called the Credit Score Report Card (see screenshot below for my Report Card). Essentially, this report shows you how you’re doing in the various components that determine your credit score. Let’s take a look at what information this report gives you along with how I’m doing in the various categories.
    • Overall Credit Grade
      • Overall, the report said that I was doing pretty well managing my credit, with an Overall Credit Grade of an A! Nice!
    • Open Credit Card Utilization
      • Since I’m not currently carrying any balances on my credit cards, I have 0% credit card utilization. I would have expected that this would be a good thing, as higher credit card utilization can present a warning sign of credit risk.
      • However, for some reason, I was given a C grade in this category.
      • Maybe this is because the credit companies like you to carry a little balance from month to month so they know you’re not just using them for the cash-back benefits, as I am.
    • % of On-Time Payments
      • As mentioned above, I have never missed a debt payment, and got an A grade in this category, with 100% on-time payments.
    • Average Age of Open Credit Lines
      • I scored a D grade in this category, since the average age of open credit accounts I have is 2 years. 
      • In my opinion, an average age of open credit lines of 2 years is perfectly acceptable. However, I am guessing that the creditors like to see the average age be longer than this. This is something that I believe will come naturally with time.
    • Total Accounts
      • I scored a D grade in this category. This is most likely because I have a large number of credit card accounts that I opened only to receive the free money sign up bonus offers.
      • In addition, I also only have credit card accounts. I don’t have the desired mix of mortgages, personal loans, car loans, and credit card accounts that would make this score go up. 
    • Hard Credit Inquiries
      • Hard credit inquiries are ones that go on your credit report whenever you apply for new credit.
      • I got a C grade in this category, with a total of 5 hard inquiries in the past 2 years. 
    • Derogatory Marks
      • All of my debt accounts/credit cards are in good standing, so I got an A grade in this category.

    Summary of My Results


    So, overall, I was very satisfied with my credit score of 754. It is above average, especially for someone that is my age. I could definitely improve my score by 1) signing up for fewer free money sign up bonus offers from credit cards and 2) setting up small automatic payments on all of my credit cards each month in order to show that those accounts are active.

    Does This Sound Too Good To Be True?


    If you’re like me, you probably are thinking that this Credit Karma thing sounds too good to be true. However, it really is something that makes sense, if you think about how Credit Karma is making their money.

    This question can be answered by one word – advertising.


    Credit Karma has figured out that by offering credit scores for free, they drive an enormous amount of traffic to their site. Furthermore, because Credit Karma displays your credit score, it enables them display credit card and bank account offers to you that you are pre-qualified for. And, credit card and bank companies will pay big money for this type of “captive” audience. This is how Credit Karma makes their money! Pretty reasonable/logical if you ask me!


    How about you all? What resource do you use to check your credit score? Have you ever used Credit Karma? Are there any other resources out there to get your credit score for free? 


    Share your experiences by commenting below!

      ***Photo courtesy of http://farm4.static.flickr.com/3509/3928496281_f906248523.jpg

      Tips For Buying A Foreclosed Property

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      Click here to enter my free giveaway for 2 copies of H&R Block At Home Premium Edition


      The following is a guest post by editors at SmallBusinessLoansDirect.com. Enjoy!

      Tips For Buying A Foreclosed Property

      It’s no surprise that the U.S. housing market is in shambles.  The eruption of the Sub-Prime Mortgage Crisis and the popping of the real estate bubble in 2008 has led to millions of foreclosures in the United States.  RealtyTrac estimates that a record 3.8 million homes were foreclosed in 2010.

      These record high foreclosure rates in 2010 were due to a deadly combination of high unemployment, wage cuts, price inflation in many goods and services, and many people getting overextended using easy unsecured working capital loans.  As gas prices continue to rise in 2011, and unemployment continues to remain above 9%, the housing market will most likely continue to remain under pressure.  These horrible market conditions have created a dream come true for one segment of the market, however—the homebuyer.  We are currently in a buyers’ market like no other in history!

      Debunking A Myth


      If you are in the market to purchase a new home, you may want to consider a foreclosed property.  Navigating through the process can be tedious, and it can be best to hire a qualified real estate agent who specializes in distressed property acquisition.

      One of the stereotypes of foreclosed properties is that they are all completely trashed.  The traditional line of thinking is that if a person was irresponsible enough to lose their home in foreclosure, then they probably did not maintain it very well.  This myth has been completely debunked in the current crisis, however.  In today’s market, the worst recession since the Great Depression has forced millions of well-meaning Americans into foreclosure, and now there are homes in excellent condition selling at a fraction of their market-high prices.

      How To Find Foreclosures


      Foreclosures will generally be listed as public announcements, so the county courthouse is a great way to keep abreast of foreclosed properties that are up for auction.  Another way is to search the internet for reputable sites that post foreclosed property details.  These sites will generally require a monthly membership fee, so make sure you do your due diligence and choose one with solid user reviews.

      An experienced real estate agent can be your closest ally if you are attempting to find a good foreclosure.  An agent will also generally track down any good leads and make sure the property meets a few your general criterion before you have to spend time checking it out, and this can save you lots of time over the course of a house search.

      Finances


      Financing a foreclosure can be a much trickier process than a traditional home purchase.  Again, this is where a qualified professional can help tremendously.

      There have never been as many homes for sale and in foreclosure in the history of the United States property market.  Now, more than ever before, is a great time to find a good deal.

      How about you all? Have you ever bought a foreclosed property? If so, would you recommend it to others? What were the positives and negatives?


      Share your experiences by commenting below!

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

      • @ 3.8 million foreclosures in 2010 – This is astounding! How many homes can there be in the US after all, considering that there is about 300 million people living here? That’s like 1-2 people out of 100 affected! Do you know anyone that had to foreclose on their home?
      • @ Idea of the housing market still being under pressure in 2011 – I absolutely believe this. In my condo community, none of the units on my row have sold in the past year that I have lived here. Simply amazing! Let’s hope the market turns back around by the time I have to sell in around 2015 or so.
      • @ The stereotype that all foreclosed properties are trashed – I encountered this when I was searching for a house as well. What would happen is that I would find a property listed on the MLS system, and when I reviewed it with my real estate agent, she basically, immediately advised me to avoid the property. I wonder why this is? Maybe they have had some bad experiences with clients being unhappy with the results of buying a foreclosure and just want to “play it safe?” Any ideas?

      ***Photo courtesy of http://farm4.static.flickr.com/3235/2539334956_87cef7e457.jpg

      Festival of Frugality # 281 – Graduation Statistics – May 24th, 2011 Edition

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      Click here to enter my free giveaway for 2 copies of H&R Block At Home Premium Edition

      Welcome frugal fanatics! Thanks for stopping by.

      My Personal Finance Journey is very proud to be hosting this week’s edition of the Festival of Frugality. 

      For those of you that are unfamiliar with the Festival, its purpose is to spotlight excellent ideas that are floating around in the blogosphere to help readers squeeze a few extra pennies, nickels, dimes, or quarters out of every dollar. And, in this age, I believe that we all could use some good advice on how to do this!

      This past weekend, many of the high schools, colleges, and universities up and down the East Coast of the US had their big graduation ceremonies. I actually got to attend one of these ceremonies here in Virginia, and it was quite nice! 

      In honor of all the graduation “hoopla” going around, this edition of the Festival will focus on some interesting stats and the job market graduates are currently facing.

      So, without further a due, let’s get on with the Festival!

      Shown below are the top 3 picks out of this week’s submissions. Congrats to the winning article from Robert with The College Investor.

      Leaders of the Pack – Top 3 Editor Picks

      1. Robert @ The College Investor presents I Started Moving My Finances and Business To The Cloud… posted at The College Investor.

      One of the cool things about being a personal finance blogger is that it enables me to stay “in-the-know” about new products, particularly online products, that come out that can help us manage our finances (and life in general). In today’s culture, it’s no longer sufficient to say, “Oh, that document is at home on my home computer.” People expect the documents to be accessible, on the fly, from any computer. This post from Robert reminds us of the utility and importance of using cloud (or online resources) computing to identify ways to improve our finances, save money, and live more frugally. Great job Robert! I am a big fan of Google Docs  as well.

      2. Sandy presents $2M Lottery Winner Uses Food Stamps posted at Yes, I Am Cheap.

      It seems like it is a rarity to hear of a lottery winner actually living frugally after winning the lottery. However, it appears that the $2M Michigan lottery winner described in this insightful article by Sandy is doing just that. By finding a loophole in the Michigan finance laws, the man is able to continue qualifying for food stamps because the law doesn’t classify lottery winnings as income. Interesting stuff! What do you think? Should lottery winnings be classified as income or assets?

      3. Annabelle Foster presents Quiz: What kind of frugal are you? posted at The Year of Shopping Detox.

      Go Blogger-hosted Blogs! Represent! This article by The Year of Shopping Detox (a site that I was just exposed to) presents us readers with a series of 6 questions about our spending habits and how we pass the time. She then provides guidelines as to what different trends in our answers can indicate in regards to the type of frugal person we are. Take the quiz and see how you score! I scored in the A category.

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      Interesting Graduation Statistic # 1

      Yale, Princeton, and Harvard all graduate >88% of their students in 4 years. Wild! Maybe they can do this because of the very selective screening process in who they let in to the school?
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      Money Beagle presents No Stone Unturned: Expanding Our Search For Milk posted at Money Beagle.

      FMF presents How to Win Friends with Coupons posted at Free Money Finance.

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      Interesting Graduation Statistic # 2

      Southern University at New Orleans graduates only 8% of their students and Carlos Albizu University in Miami graduates only 10% of their students. At The University of Arizona, only 20% of the men’s sports players graduate. Nice!
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      Evan presents What Do You Have to Do Mathematically to Get to Your Goal posted at My Journey to Millions.

      Boomer presents Maybe I Should Just Stop Watching TV! posted at Boomer & Echo.

      Aparna presents Home-made face wash posted at Beauty and Personal Grooming.

      Fanny presents 4 Cheap DVD Rentals posted at Living Richly on a Budget.

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      Interesting Graduation Statistic # 3

      Because of the lack of jobs and the large amount of student debt that the class of 2011 has, studies estimate that 85% of the graduating class will be forced to move back in with their parents.
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      Sonja Stewart presents 25 Great Everyday Uses For Vinegar posted at Parenting Squad.

      Rhonda Franz presents Simplifying Family Meals posted at Parenting Squad.

      vh presents Shingles Shot: Pricey! But Worth It… posted at Funny about Money.

      Kyle James presents 5 Reasons TLC’s Extreme Couponing is Extremely Lame posted at Rather-Be-Shopping.com Blog.

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      Interesting Graduation Statistic # 4

      Out of the students who took out student loans in order to finish college, the average total debt upon finishing is $27,000. Source – Huffington Post
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      Glen presents How to Avoid Free Trial Scams and What to Do if You Suspect You are a Victim posted at Free From Broke.

      Money Thinker presents Make Sure you Never Pay Full Price- 5 Tips posted at Money Thinking.

      Tom presents Ways to Save Money on your Mobile Phone Bill posted at StupidCents.

      Squirrelers presents Cheapskates Visit Vegas posted at Squirrelers.

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      Interesting Graduation Statistic # 5

      According to Beyond.com, the following 10 job fields offer the most plentiful entry-level job opportunities for college grads in 2011.

      1) Clerical & Administrative
      2) Sales & Sales Management
      3) Merchandising, Purchasing & Retail
      4) Arts, Entertainment & Gaming
      5) Customer Service
      6) Management & Business
      7) Accounting & Finance
      8) Information Technology
      9) Healthcare & Medical
      10) Engineering & Architecture
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      Marjorie presents Card Hub’s Island Approach to Credit Card Spending posted at CardHub.com.

      Novelet presents Save Money on Minor Car Repairs posted at The Working Poor.

      Madison presents I Joined a Book Club… and Found the Electronic Library posted at My Dollar Plan.

      Well, that wraps up this week’s posts! They sure were some great ones and very interesting to read through!

      Get your articles in early for next week (Festival of Frugality #282). It will be hosted by our friends over at Smart on Money. Also, let Jim (the Festival organizer) know if you are interested in hosting as well. It’s a bit of work, but a great way to get your blog out there and meet new folks in the process!

      If you were included in this list, please don’t forget to link back to the festival here. Thanks!

        ***Photo courtesy of http://farm6.static.flickr.com/5107/5667591596_1f7c8075b2.jpg

        Yakezie Blog Swap # 7 – Balancing Frugality and Fun – Roundup

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        Click here to enter my free giveaway for 2 copies of H&R Block At Home Premium Edition

        On Friday of last week, My Personal Finance Journey participated in the 7th Yakezie blog swap. “What’s this strange sounding event?” you may be asking. Well, what transpires is that different members and challengers of the Yakezie Blog Network pair up and exchange posts on a common topic.

        This month, our topic was: “Balancing Frugality and Fun.”

        My Swap
        My partner for this month in the swap was Ashley from Money Talks Coaching. For her post, Ashley reminded us to spend our dollars where they will give us the most happiness.

        For my post, I shared 5 different techniques everyone can use to balance frugality and fun at Money Talks Coaching.

        Below is a list of the rest of the great articles. Be sure to stop by and comment on them to get some good conversation going!
        Latisha Styles shares her story about going on a shopping diet at Narrow Bridge.
        Joe gives us 10 different ways we can have fugal fun in almost any city at Prairie Eco-Thrifter.
        The other Joe shares with us his memories of time with his Grandpa growing up and how he taught him to have fun at Mom’s Plans.
        Jason reminds us that making memories is what counts at Financially Consumed.
        Denise tells us that any kind of fun is possible with a little planning, determination, and work at Money Cone.
        Money Cone shares with us how they have become a latte sipping frugal Mac user at The Single Saver.
        Miss T shared 3 ways she’s found to have fun on the frugal at Retire by 40.
        Hunter tells us why corporate bankruptcy isn’t fun at all at Live Real Now.
        Melissa shares her story of how her family balances frugality and fun at Smart Money Focus.
        Eric defines the ultimate frugalite and the ultimate spender over at Financial Success for Young Adults.

        I hope you enjoyed the articles as much as I did!

        How about you all? How do you find the right balance between being frugal, but having fun at the same time? 


        Share your experiences by commenting below!

          ***Photo courtesy of http://s0.geograph.org.uk/photos/03/00/030068_997bd8f9.jpg

          Balancing Frugality With Fun

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          Click here to enter my free giveaway for 2 copies of H&R Block At Home Premium Edition


          The following guest post is part of the Yakezie blog swap. In this monthly event, Yakezie participants pair up and exchange articles on a common topic.  For May, we are trading posts on the common topic of balancing frugality and fun. This article was written by Ashley over at Money Talks. If you enjoy it, you can subscribe to her feed or follow her on Twitter and Facebook. Enjoy!


          You can view my swap post over at Money Talks today at the following link – Balancing Frugality With Fun.

          Balancing frugality and fun relies on one tactic. It requires focusing on the people in your life rather than your stuff.

          You can spend all of the money in the world, but if you have to spend that money alone, it wouldn’t be very much fun. Conversely, being in a room with your favorite people can be a blast and cost nothing.

          When you look back at your fondest memories, they include the people you were with, right? You might not remember how much dinner cost, or what you were wearing, but you remember who was there. You remember the jokes, the laughter, the good times. Those things are free.

          Being Frugal With Friends

          A good friend is the most valuable thing you have, and it costs nothing to obtain. A smile, a joke, and a kind gesture are all free. Good friends help you to be happier, healthier, and will help you live longer. These amazing benefits can be had for free!

          However, even in friendship, you have to watch your wallet. Some friendships are based on spending money together. Be careful of this. If your friend always wants to spend money or pressures you into buying the latest iPhone or Dolce and Gabbana purse, then you need to mindful. Breaking the budget in the name of friendship might be fun, but it isn’t frugal.

          I had a friend that liked to meet for lunch. If you’ve known me for 5 minutes, then you know I like to eat out, so that wasn’t the problem. The problem was that she always picked expensive places. This is fine every once in a while, but I couldn’t pull it off every week.

          So, sometimes, I would have to suggest pizza instead of the new trendy place. Or, I would even invite her over to my place for lunch once in a while. The point wasn’t the lunch, the point was spending time together. Lunch just facilitated us hanging out. I didn’t see my friend as an excuse to eat lunch out. Lunch was an excuse to see my friend. If you keep the emphasis on the friendship instead of the lunch, you can balance frugality and fun.

          Frugality and After School Activities

          After school activities for the kids are another place where you have to be careful to balance the frugality with the fun. You sign them up because you think it will be fun. You knew you would have to pay the initial fee, but then you are buying equipment, uniforms, snacks, chipping in for gifts, for the coach, transporting kids all over town, throwing team parties, buying professional pictures, and it seems like it never ends.


          Help your wallet and your kid’s expectations of money by keeping the focus on the activity. Why did you sign up for the activity? Stay focused on that. Was it to meet people in the area or was it to learn a sport? Don’t get sidetracked. If the goal was to learn the sport, then stay with that. Do you need to throw a party to learn a sport? Do you need professional pictures? Do you need special pants? If the fun was to play baseball, then balance the frugality by cutting out the extras.

          Being frugal doesn’t mean you can’t have fun. The spirit of frugality is to get the most out of your money. I certainly don’t think you are getting the most out of your money if you aren’t having fun. When you only spend money on the things that matter you can have more fun. You can spend those dollars where they will give you the most happiness. Being frugal means you can have more lunches with friends and more activities for your kids.

          I hope you’ve enjoyed this post. To close, I’ll leave you with an insightful quote I found!

          If you want to feel rich, just count all the things you have that money can’t buy. – Author Unknown

          How about you all? How do you balance frugality and fun? Do you know any one that does either a really BAD job or a really GOOD job at this? What do they do?


          Share your experiences by commenting below!

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

          • Great post Ashley! Thanks so much for your contributions!
          • @ Being frugal with friends – Friends can either be a great source of improvement or destruction for your finances. And, it really all just depends on who they are. 
            • I know quite a few people that seem to either 1) go out to bars or 2) go shopping at the mall when they are around certain friends. It’s almost like that’s just the default thing that they feel comfortable doing around each other. 
            • As you can imagine, whenever they go on these outings, it always hurts the wallet! 
          • @ Balancing frugality with after school activities – This is definitely a tough one! This is mainly due to the fact that you would prefer your son/daughter to be outside or doing these activities as opposed to being stuck at home playing PSIII or Nintendo Wii. 
            • However, the cost for these sports definitely ads up! With all of the sports I played growing up (baseball, cycling, and cross country), there was definitely a lot of cost involved. 
            • We did try to keep the spending to things centered around enabling me to excel at the sport and less on the ancillary, non-essential things, which I think helped.
            • Also, I know that sometimes, kids can jump in to a certain activity “full-bore” only to get tired of it several months down the road. If you can wait until the child is certain that he or she will be committed long term to the activity, that can help save money as well.

          ***Photo courtesy of http://www.flickr.com/photos/ventsislav/2524315816/

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