You Can't Fail If You Don't Quit…
February 19, 2009 4 Comments
I completed designing business cards to help promote this website. I think they project the image that I wish to portray here rather well. Tell me what you think! Thank you to everyone who supports this site!
February 19, 2009 1 Comment
As I approach completion of my goal of eliminating my credit card debt, I am faced with the dilemna of what I should do with the account once it is paid off. Do I keep the account open or would it be better to cancel my card and close the account entirely?
Keeping the Account Open:
What are the benefits of keeping the credit card account open? The first thing that comes to mind is the access to a line of credit in case of an emergency. A credit card is not a substitute for an emergency fund, but in the early stages of saving, a credit card may be your only life line if something unexpected happens. Something unexpected is not a cashmere sweater marked down 50% either.
Another benefit to keeping the card open is that the credit card companies will continue to report to the credit bureaus. For someone who is trying to build or repair their credit, it may be in their best interest to keep the account active so that you are getting a positive report to the credit bureaus.
Keeping a credit card account active also has its drawbacks. Having access to the credit line can be a good thing in the case of emergencies, but also a very bad thing if you don’t have the willpower to resist impulsive behavior. Do you have the ability to walk through your favorite clothing store during a huge sale with countless great deals and not whip out the plastic?
Closing the Account:
Closing the account also has its positives as well as negatives. If the account is closed there is no temptation to use the card because you won’t be able to. I consider this to be a good thing, especially if you are trying to get out of debt. You can’t spend the money, but you also don’t have that life line in case of an emergency.
Besides not being able to use the card anymore, closing the account will provide satisfaction in knowing that the debt is gone for good. No more worries hanging over your head. No more statements in the mail that you are afraid to open.
Closing your account may also negatively impact your credit score in 2 ways. First, by closing the account you are reducing the amount of credit which is available to you. That’s good, right? Wrong. By reducing your available credit you are increasing your debt utilization ratio. For example, you have $10,000 in available credit on 2 cards. Let’s say both cards have a limit of $5,000. One has a balance of zero while the other is maxed out. At this point your debt utilization ratio is 50%. If you were to close your account with a zero balance, your debt utilization ratio would jump to 100%. Ouch!
The second way that closing an account hurts your credit score is if you have had the account for a while, closing that account will affect your length of credit history. The longer you have a card the more important that account becomes to your credit score. When closing accounts, it is important to consider how long you have had that account.
Conclusion:
After careful consideration of what is best for my current situation, I am deciding to continue to keep the account open for 2 main reasons. The first is for emergencies. While I work to build up my emergency fund, having the line of credit to fall back on in case of a serious situation provides a small amount of security. I do not recommend that anyone use a credit card as an emergency fund, but when you are beginning to change directions from being in debt to beginning to save, I think it is important to have access to some sort of money, even if it is a credit card. My second goal is to build my emergency fund to $5,000 and once I have completed that goal I will re-evaluate whether or not I should close the credit card account. By that time I may feel as though I no longer need to keep the account open.
The second reason why I want to keep the account open is so that the credit card company will continue to report to the credit bureaus. When I went into debt and hit rock bottom, I trashed my credit score. I have been working hard at bringing that number back up. I have closed all of my other credit card accounts for various reasons, including my oldest accounts which likely had a negative impact on my score. For a while, it may be best to keep this account open in order to establish a positive credit history. There are no fees for this card, so as long as I don’t use it I won’t be charged any fees. On the other hand, if I don’t use it, the credit card company may close the account. I guess I’ll never beat the credit card companies!
February 18, 2009 Leave a comment
Recently I began to see an error in the way which I was living my life. I had spent a lot of energy and money in pursuit of material possessions. I invested a great deal of time collecting DVDs, toys, books and magazines, and pop culture memorabilia from the 80′s like Garbage Pail Kid cards. Then I experienced a monumental shift in my way of thinking. I woke up one day and had no idea what in the world I was doing with all of this junk. I decided that it was time to get rid of everything which was not creating some sort of value in my life.
I had a storage unit full of stuff, DVD towers overflowing with movies, plastic storage containers full of random things, objects hiding in corners, in cabinets, closets and drawers. Everywhere I looked there were things that were useless to me. Why in the world did I need to have a George Foreman grill? I used it once, but on a whim I felt as though it was a life necessity. I couldn’t live without it. Now I couldn’t live with it.
My girlfriend thought I had lost my mind. Here I was in the midst of a life-altering shift in perception with no understanding of why I suddenly had a completely opposite outlook on life. Nothing in the house was safe. I began questioning every item I owned, and then every item my girlfriend owned. “Do we need 3 crock pots? Two of them are identical, couldn’t we give at least one of them to Goodwill?”
Adjusting to the shift in my thinking was difficult. There is a certain amount of emotional value invested into every object a person owns. We have a connection to these objects. Getting rid of the item means getting rid of that bond. Sometimes that is incredibly difficult. An example of this would be a gift that you recieved for Christmas or a birthday. You really never cared much for it, but you can’t get rid of it for the guilt you feel in doing so. Even though that item brings no value to your life, and even though you don’t want or need it, there is still an emotional attachment to that item because it was a gift.
What I am having a hard time convincing myself of getting rid of are my Kevin Spacey DVDs. He is my favorite actor and I have almost all of the movies he has been in. The problem is that they just sit there, collecting dust, taking up space. There is a possibility that I will watch them again, but that is not the reason that they are still here. I do not keep them around for their future potential of providing me with entertainment, but rather as a material indication of my affection for Kevin Spacey. I would be no less of a fan owning zero DVDs than I am owning all his movies. Even though I know this, I cannot convince myself to sell them. I have an emotional bond with them. They are a representation of my personality, and it is as if I would be giving up a part of my identity as an individual.
Throughout the process of eliminating the clutter in my apartment, I’ve come to the conclusion that sometimes it is hard to say “goodbye” to material possessions, especially those which you have applied a great amount of personal value to. I’ve also come to the conclusion that sometimes it is necessary to eliminate some of these things in order to to get my priorities in line. If my dream to be able to travel on a whim is ever to come true, I won’t have much room for 500 DVDs and a ton of other random things that will require being hauled along with me.
February 17, 2009 Leave a comment
We’ve needed a new bed for a long time. The box spring we have is twisted because the bedframe did not have the proper support. As a result, we both have been waking up with sore backs everyday for quite some time. Aside from that, I haven’t had a good night sleep in over a year because the bed is uncomfortable and too small to stretch out and get comfortable.
Recently we decided to take the plunge and spend a large chunk of savings on the purchase of a new mattress and box spring. There was a furniture store which was offering a great promotion in order to get people to come to their store. Since we had been talking about the need for a new mattress for a long time, we decided that we should take this opportunity in order to get the best deal. Here is what we’ve learned from this experience:
Shop Around- When we first went to the furniture store, we were looking at purchasing a Tempurpedic mattress. The sales person told us about a manufacturer price lock that would not allow for them to negotiate the price, or include it in any other sort of promotion. We made a couple of phone calls to another business to compare the price and it paid off. They were offering the same bed for $100 less than the marked price at the store we were in. The bottom line, no matter what the salesperson says, do your own research and don’t trust them. Make sure that you have any offers from other stores in writing to use as evidence of a better price when you are negotiating. Spend some time getting the companies to compete for your business. You may end up with a much lower price or have some other perks tossed into the deal. When we told them that the other store had it for $100 less, they offered to give us a $100 gift card.
Ask Questions- When you enter a store, you will see signs for promotions and financing options. What those signs fail to tell you is that certain items are excluded from the promotions, or that interest-free financing is not available in conjunction with special promotions. These questions are very important, especially if it was the promotion that got you in the door in the first place, as was our case. If you are financing, be sure you understand the terms of your agreement. Some places will offer 1 year, no payment and no interest but if you don’t pay the amount in full by the end of that year, all that interest could retro back to the first day of your purchase. Not good, as the interest on many store cards are exorbitant.
Negotiate- It doesn’t hurt to ask if there is anything they can do to lower the price. The worst they can do is tell you “no”, and they will. As we looked at other products I asked a couple of times about a lower price or if they could offer anything else to sweeten the deal. Unfortunately I was told no, but it still pays to ask. If you don’t ask or make a hard bargain, they aren’t going to offer you a lower price. They are there to make a profit and earn commission. The higher the price, the more money they put into their pockets, but remember, no sale means no money. That is your bargaining chip.
Compare Products- When we walked into the store, my heart was set on a Tempurpedic mattress. Unfortunately, the Tempurpedic wasn’t eligible for the promotion because of the price lock set by the manufacturer. We decided to look at other products that were eligible while not sacrificing the quality that we both wanted. After laying on a lot of different beds we finally decided on a Sealy Whistlewood Springfree Pillowtop. It provides the support that we need and is very soft and comfortable. We were able to find a product that was of equal or greater quality, while also being eligible for the promotion. Even though I had my heart set on something different than what we ended up getting, we found a product that we were both happy with which was eligible for the promotion as well.
Be Prepared- Aside from the practical aspect of getting a good deal and knowing what you are getting into, there is another thing that you must consider, and that is the emotional impact that spending a large amount of money can have. It was something that neither of us had thought about. Even though we both knew that we needed a new bed, and we spent hours lying on different beds, there was still a layer of doubt and question. Were we getting the best deal? Are we making a smart financial decision? Is this what we really want and does it meet our needs?
We spent some time together to talk about the purchase before we finally made our decision. It was important that we both felt confident about what we were getting and the price that we would be spending. Taking this time to talk about the practical matters made us both feel a little better, though not completely at ease, about spending the money. At the end of the day, we came out spending a large portion of our savings but we took our time to make an informed decision while getting the best deal possible.
February 16, 2009 Leave a comment
I recently wrote an article about what you can do to prepare yourself financially in the event of a layoff. I’d like to continue that conversation about what you can do personally and professionally to avoid the possibility of losing your position and what you can do if you do get the axe.
Polish Your Resume- If you don’t have a resume, now would be a great time to get started on one. I like to look over mine every few months in order to update and add information. Look it over again, as it is possible that you may have made a mistake somewhere, or your choice of wording may be weak. The last time I updated my resume, I kept asking myself, “What was I thinking!?” and spent 6 hours completely revamping it.
Take college courses- Taking college courses is a good way to brush up your skills and open your mind to new possibilities. There are classes for public speaking, mathematics, courses for people with basic to advanced computer skills and courses to fit practically any interest. I highly recommend getting involved in education. Not only will it help you in your career, but also in your personal life as well.
Begin Your Job Search Early- If you expect or know that you will be losing your job, start looking for work as early as possible. The more time you allow yourself to look for work, the less pressured you will feel in taking a job that isn’t right for you. You may even find a better job than the one you have now. Sometimes we only stay at a job because we have become comfortable and secure in our positions. We neglect to consider that there are better opportunities available, we just need to look for them. Finding a suitable job at present will take more time and will be more difficult to come by. The competition will be fierce. You will need as much time as possible, so start early.
Make Yourself Irreplaceable- The reality is that we are all disposable, but that doesn’t mean you should behave that way. Show your boss that you are a key player in your companies success. Take on extra assignments, work in developing a new product line, whatever you need to do in order to show that you are there to do your job and do it well. Companies love team players. Why? They make money. On the other hand, don’t be the person who complains often and/or loudly. Offering constructive criticism is okay, though it would be better that you offer a solution to complement your concerns. Your managers and supervisors have enough to worry about without someone complaining. Give them a break, and a hand.
Make friends- Networking is a great way to open doors to opportunity. Just knowing “so and so” is sometimes all it takes to get your foot in the door. The more people you know, the better off you are. Get out there and meet people! Even if some of the people don’t directly lead to job opportunities, meeting new people and making new friends is a great way to improve your social life. In times like these, sometimes all you can really count on are your friends, and the more you have, the better!
What suggestions do you have for preparing for a layoff or for preparing to change jobs or careers?
February 15, 2009 5 Comments
Last week I decided that I would conduct an experiment to try and spend only $10 on dinner meals for two adults for an entire work week. How did I do? I will let you be the judge.
First, the numbers: Here is a list of all ingredients I purchased and their cost:
| Whole Chicken | $3.64 | Roma Tomatos | $0.49 | ||
| Onion | $0.48 | Corn Tortillas | $1.25 | ||
| Carrots | $0.84 | Tomato Sauce | $0.27 | ||
| Celery | $1.36 | Enchilada Seasoning | $1.00 | ||
| Cheddar Cheese | $2.18 | ||||
| Jalepeno Peppers | $0.17 | Total | $11.68 |
As you can see, I went over my $10 budget. It wasn’t until I picked up the packet of en
chilada seasoning that I went too far off budget. In retrospect, the seasoning wasn’t probably something that I really needed. I had purchased the tomatoes and jalepenos in order to prepare my own sauce, but at the last minute my inner voice of self-doubt began calling out to me saying I was crazy to think I could make my own enchilada sauce. I needed that packet of seasoning.
Looking at that grocery list, some people are probably wondering what meals I chose to prepare for the week. I decided that chicken would be my base ingredient for the week. I decided that in order to make the chicken last for at least 3 different meals I would have to plan accordingly. Obviously if I wanted to make a meal of chicken breast, I need to do that before I tear the chicken to shreds for enchiladas.
I decided that the plan would be to have chicken breast and rice for the first night. Luckily we have rice around the house, so it wasn’t factored into the overall grocery cost. For the sake of argument I chose not to include the cost of spices as everyone prefers to season their meals differently. Total cost for chicken breast, excluding the rice we had in our cupboard was $1.21; $0.60 each.
Tuesdays meal would be enchiladas. Since we had only eaten the chicken breast, there was plenty of meat left on the chicken. We used it to make chicken enchiladas. Surpringly to me, this ended up being our most expensive meal. I had figured it would be the cheapest, but buying cheeses and a seasoning packet put the cost of the meal at $6.08. Nearly half of my budget! When I preparing this meal, I forgot that it was supposed to last for 2 days, and I portioned it for one. Stupid me! My girlfriend was able to make her’s last for 2 days, while I ate mine in one. The result, 3 meals at a cost of $2.03 per meal. Not great, but not too bad either.
Because of my error in portioning the enchiladas, I had to make Thursday’s meal Wednesday. No big problem. I’d just have to eat the same thing 3 days in a row instead of 2. All I had left was a chicken carcass and some vegetables. We had 3 more days to go and it looked like we might starve to death. Not really. Thursday & Friday I planned to make soup. I went to my mom’s house to learn how to make homemade noodles. It is very easy and inexpensive as well. Thanks mom! Total cost of the soup: $3.89, making the cost per meal for two (and a half) days $0.78. Having your mom teach you how to create great tasting and inexpensive noodles: Priceless.
So while it is true that I went over my $10 budget, I did learn some things from this experiment.
Lesson One: Plan Your Meals in Advance- When you know what you are going to be making for the week, make a list of exactly the ingredients you will need. A list helps to keep you from buying things that you think you might need. You know exactly what you need so there is no question.
Lesson Two: Use What You Already Have- We were able to use some rice that we had in our cupboards to compliment our meal with a nice, simple side dish. Some people may think that rice is boring, and I suppose that it could be if someone eats it often, but since we don’t eat much rice it was a nice change of pace. I also recommend keeping a spice rack of a variety of spices. Spices will help improve a dull flavored meal, and will also inspire you to try new things.
Lesson Three: Sales & Coupons- Unfortunately there were no sales or coupons for the ingredients I was buying. Had there been, I might have made my budget. Some people think that coupons are a waste of time, and sometimes they are, but if you keep an eye out and clip coupons for things that you use regularly, why not save yourself a little bit of money? Also, looking at the flier from the grocery store and planning your meals for the following week from that is a great way to save some money. Keep your eyes open for deals on things you eat regularly.
Lesson Four: Buy Fresh- If you look at my list, most of it is fresh meat and produce. The processed foods like the cheese and the seasoning packet are the most expensive. Not only is processed food more expensive, it is loaded with sodium and other things you probably don’t want to put in your body. By no means am I health food nut, but what in the heck is a tripolyphosphate anyways? Guess I’ll Google it.
In the future I may attempt to successfully complete this experiment under budget as now I know where I made mistakes. Keeping a meal budget low, and healthy, is not impossible, $11.68 for 10 meals is a great bargain, but it takes time, planning and effort.
February 14, 2009 1 Comment
Today is Valentine’s Day. 
It is hard for me to imagine my life without you. You are so much a part of me that without you I am not complete. You have lifted me to greater heights than I ever imagined by giving me the confidence to believe that anything is possible. I know that had you not come into my life I would not have accomplished half of what I have. You give me the strength to face my fears and overcome them.
It is funny to think back to the time before we found one another. How different our lives were. I didn’t have a clue in the world about what was important, but once you stepped on the scene, suddenly I seemed to have everything figured out. It was as though the final piece to the puzzle had fallen into place, that all of my life was slowing forming into something meaningful and you were all I needed in order to finally understand what my life was meant to be.
I know that Valentine’s Day is a Hallmark holiday and that today is the one day of the year that most women expect flowers, candy and a teddy bear, but we both know that these things really don’t mean anything. Being able to spend time together is what is important. It doesn’t even matter what we are doing so long as we are together.
I hope that in your heart that you feel that without a doubt that I am in love with you and that I love you. You are the one special person in my life and the only one I can see myself being with. I look into the future and see you by my side; old, wrinkly and grey hair. I look forward to that.
Erin Go Bragh! I love you!
February 14, 2009 3 Comments
Marilyn Manson has been my favorite musician ever since I began listening to him in middle school. His talent and creativity are unmatched by any musician/performer in recent history. It is unfortunate that he is judged less on his abilities as an artist than by his mismatched eye color and make-up.
One of my goals is to meet Marilyn Manson, and a year ago I nearly had that opportunity. Last February I traveled to Milwaukee, Wisconsin to attend a concert which he was headlining. At this same venue I’ve met band members from Slipknot, Glassjaw, Soulfly, Mudvayne…I thought that I would also have a pretty good chance of meeting Marilyn Manson here as well.
After an amazing performance my friends and I went to the back of the venue where the tour busses were parked and waited. At first there was a pretty large group of people all wanting to meet the band. The more time passed, the fewer people remained. Being the middle of winter, the weather was unbelievably cold. We waited, and we waited. After a while, there were only 4 people still standing outside, myself and my 2 friends, and one other dedicated soul.
At this point we figured that he would come off of his tour bus and sign autographs and take a couple of photos since there were only 4 people. No such luck. The bus started its engine and began to leave while we stood there hoping for some miracle. No miracle happened, and we watched as the bus drove away. Two hours in the freezing cold…for nothing.
As we drove home we passed the tour bus on the interstate. Both of my friends were upset about having stood in the cold and not getting to meet Marilyn Manson. I, too, was disappointed, but I wouldn’t let my spirit be broken. I’d try again next time.
That is what we all should do when something doesn’t work out as we had hoped it would. Don’t give up. The only way you can fail at your goals is if you give up and quit trying. You will never accomplish anything if you don’t try. The next time Marilyn Manson is in Wisconsin, you can bet that I’ll be there trying to meet him. When the day finally comes, I know that all the hours I spent in the cold outside of his tour bus will have been for a reason.
February 13, 2009 3 Comments
Over the last 3 weeks I have been working on making some lifestyle changes as well as eliminating my credit card debt entirely. How have I been doing?
I’ve managed to stop drinking soda and haven’t eaten fast food in 3 weeks now. I almost fell off the wagon with the fast food on Wednesday. I hadn’t eaten anything that day and only had half an hour to get to work. The only solution in my mind was to grab McDonald’s on the way. Luckily I have a great girlfriend who told me I was being an idiot, and “coerced” me to make myself a sandwich instead. I’m glad that she is around to keep me on track. I told you it was good to have someone to help you with your goals. Sometimes willpower isn’t enough, you need a good swift kick in the rear!
I’ve stuck to my exercise schedule as well. I am still enjoying my trips to the gym. I’m glad to be back in the routine again.
I am 3 weeks into my last semester of classes for my Associate Degree. I filled out my application for degree candidancy form earlier this week. It was a nice moment when I filled in the box of how I wanted my name to appear on my degree. I just have to pass algebra!
Eliminating my credit card debt is going great! I was able to make some decent sales on eBay and have been applying the extra cash I made directly towards paying down my debt. My goal of having my credit cards paid off in full by the end of the month may actually be accomplished early. I’m very excited about achieving this goal.
Future Goals:
My goal of scuba diving under ice may be something that happens in the near future. The campus where I attend class offers scuba lessons in the spring. I will be signing up for the classes so that I can become a certified scuba diver. Once I take the class I will have connections in order to complete this goal! I’m excited about that.
February 12, 2009 1 Comment
Over the last 14 months I’ve watched my retirement savings drop significantly, nearly 48%. That is a hard pill to swallow.
The current economic environment looks bleak. January saw the loss of 598,000 jobs. Unemployment currently stands at 7.6%, the highest it has been in nearly 20 years. Everyday we read news reports about the new “Great Depression”.
While I nearly lost my job during the recent layoffs at the company I work for, I have a different outlook on the current economy. Maybe not entirely different, certainly I don’t think things are rosy and great. They aren’t. People who I’ve worked with for the last few years will be laid off after Friday. They will become a labor statistic. Rumors continue to swirl around about another wave of layoffs at my company in the not so distant future.
In the face of all the negativity being slammed in our faces everyday, how is it possible that I have a different outlook? I have to be honest, it isn’t very easy. Watching 150 people lose their positions at a job they thought they could depend on is hard, even for the people who were fortunate to keep theirs. It is important, though, that we keep our spirits and continue to be positive.
For those who lost their jobs, you have my condolences. I feel for you. You gave your time and energy for a job you thought you could depend on. Remember, every door that closes, another opens. It is up to you to find that open door. You are the only person who you can rely on so you should try to hit the ground running. It won’t be easy in the current economy to find new jobs, however, “persistence assumes greater importance than the energy of the moment.” Keep your chin up.
For those of us who still have a job, here are some tips for preparing for a layoff:
Boost Your Emergency Fund- You DO have an emergency fund, don’t you? Maybe you call it a rainy day fund. Whatever name you give it, you better have one. If you don’t, you are setting yourself up for difficult times. Something will eventually happen that you need some extra money. Don’t be caught offguard and have to resort to using credit cards to make your way through.
Three to six months worth of living expenses is the most common number tossed around by the experts. In the current economic situation, I would feel a little better having more than that. My goal of $5,000 by the end of the year would allow me nearly 10 months of very basic living expenses. Which leads me to my next point.
Cut Your Expenses- Is there a certain something in your life that sucks away your money like it is going out of style? An extra car, a boat or motorcyle? If it isn’t something you need, it may be wise for you to do your best to get rid of it. You wouldn’t want to get stuck with a payment on something you don’t need and can’t afford without having a job. Eliminating cable and internet can save a lot of money as well. The library offers free internet to anyone who visits, and TV…well, you can live without it!
Eliminate Your Debt- Do you have a credit card…or eight? Start paying them off. They are a drain on your finances. The interest you pay is money lost. Look at last month’s statement. How much did you pay in interest charges and other fees? Wouldn’t you rather be putting that money elsewhere? I’m sure you would. Start paying down your debt. That means more than the minimum.
There are 2 ways of paying down your debt. The first is to figure out which account has the highest interest rate, and pay that off first, then work your way to the next highest. Mathematically, this is the better choice. The second way is to list your balances from smallest to highest and pay the smallest first, working towards the largest. The method provides a psychological boost because you see results fast. Personally, I am a fan of the second method. Seeing results and having less bills in the mail every month help reduce the amount of stress in a person’s life.
Whichever method you prefer, just do it! Get that debt paid off!
Keep Investing- I know that for some this will probably seem like stupid advice, but think of it this way. If your favorite store was having a 50% off sale, would you say “No, I think I’ll wait until prices start going back up before I buy anything.” I didn’t think so. Yes, there is a possibility that the market sinks even further, but trying to time the market is a fool’s game. Figure out what you can realistically afford to invest, at a minimum the amount which your company will provide a match to, and stick to that amount.
Change Your Life- Preparing for a layoff requires all of the tips mentioned above, but one thing which is often ignored is to change your life. Quit smoking, quit drinking, quit gambling. Stop letting money slip through your fingers. Find ways to entertain yourself on the cheap. Going for walks is free, and it is good for your body and soul. You don’t always need to spend money in order to have fun. Take on a frugal state of mind. It is actually a nice way to live. Not having the worry and fear of “what if” always hanging over your head is a great state of mind to be in.
For those of you who have been impacted by layoffs, down-sizing, right-sizing, globalization…keep your chin up. Find that open door. Now is a great opportunity for you to pursue your dreams and ambitions that you ignored while you were “secure” in your real job. Get out there and do something! The door hasn’t slammed in your face, it has been closed on your past, now find your future!
