Queercents

The personal finance blogosphere is teeming lately with book reviews and tips for folks who are just starting out in the world of personal finance. Trent over at The Simple Dollar recommends what he calls The 50% Solution for people just entering the workforce — put 50% of each paycheck into savings, and live off the rest. Lynn at WiseBread recently reviewed the book Rich by Thirty. (Wish I’d had this book before turning thirty this year.) And our own Melissa has reached the six-month anniversary of living in the Big Girl World.

And this has all got me thinking: if I could rewind to when I was first starting college, what financial decisions would I have made differently?

Of course, in a perfect world, I would have come from rich parents who taught me how to handle money and invest it wisely. And I wouldn’t have student loans. But we work with the hand we’re dealt! So what could I have done better? Read the rest of this entry »

I had read a question a while ago that asked if anyone had tried many of the ‘debt into wealth’ programs that are sold via radio, tv and online.

I initially gave my own following response: I think you will find that most “gurus” end up advocating the following steps in some fashion:

1. Stop using credit cards
2. Write down your debt, what you owe and what you bring in
3. Live below your means
4. Sell stuff to make extra money and help pay down debt
5. Get a second job if you have run out of things to sell
6. Save money for emergencies

The thing about the ‘gurus’ is that they take information that is out there in the library (in the 332.0 section) or online for free. Not only that, to get out of debt and move into a wealthier life is mostly about common sense. To have wealth, you want to live on less than you make so that you have money for tomorrow. Read the rest of this entry »

If you are behind with your mortgage payment, don’t dodge that call from you lender. They may have a plan to help put you back on track with a loan modification agreement or a brand new loan with a lower interest rate.

Banks and lenders are forming special in-house team to help customers manage their way through difficult times with adjusting interest rates and other problems related to the credit crunch.

Newspapers, radio, and television are blasting us with statistics about the mortgage crisis. The recent news about the government bail out of Beares & Stern Investment Bank hasn’t help the feeling of alarm creeping into our daily lives.

Banks are forming in-house alliances comprised of collections, foreclosure, and production. The results have been impressive. Read the rest of this entry »

I was recently signing up for a new program with one of my long term service providers. This person changed their offerings, pricing, and packaging so I had to do some reviewing and deciding. I knew for certain I wanted her service and I knew what package was right for me. I just needed to figure out how to pay for it. That brought me to the question: Do I take her extended payment arrangement or should I self-finance by putting it on my credit card?

It seems like an easy question, but it is not always easy to answer. Why? So often we don’t take the time to actually do the math and realistically determine what the best option is. And, we sometimes don’t have the discipline to follow through on consistently paying down the balance left to our own devices whereas on a monthly plan we are forced to pay what is due.

Here’s how you can make this determination fairly quickly for any big purchase you have looming. At least it worked for me. Read the rest of this entry »

In 2002 it was reported that more people filed bankruptcy than graduated from all universities in the United States.

Something’s gotta give.

Recession.  Slow Down.  All the politicians talk about is what scares the most people.  All of the rhetoric, bickering, back biting, and posturing by all of the politicians in the U.S. does nothing for an individual locked in a struggle to survive and provide for their loved ones.

Some people have to just let the world keep spinning on its axis while they choose between food and medicine, clothing or heat, a roof over their head or pay their taxes, etc. Read the rest of this entry »

John recently pointed out that Queercents folks are experiencing an education bug. I found the cure for said bug: 20 years of school. On Facebook I recently noted that I’m looking forward to being done with 20 years of school and there were more than a few enthusiastic nods of agreement from my friends who are also about to graduate soon.

Aundi’s contributions have covered the money issues associated with returning to graduate school very well. For me law school has been an experience in personal enrichment. I never intended to be an attorney. My advice is to not do law school unless you want to be an attorney. There are other degrees that might be a better idea — but maybe any degree is a bad idea anyway.

Here is another perspective for professional folks considering time away from work to get another degree. The transition from a professional life to a student life is relatively smooth. Many have some form of savings or at least only moderate debt at the time they start to consider another degree. The small savings or moderate debt make it easy to get along during the first couple semesters of school with minimal life-style changes. Then the added freedom, longer breaks, and intellectual stimulation associated with being a student is hard to beat and serves to soften the inevitable financial blows associated with leaving a career for a degree. Read the rest of this entry »

There are laws that protect people from salespeople who work at funeral homes and cemeteries. Lawmakers recognized that during a time of grief, people are unusually susceptible to manipulations that result in overspending that can leave the deceased’s loved ones in debt.

When it comes to step-family or family members, however, there is no protection. In my case, it was my mother’s 2nd husband (let’s call him Rick for now…I’ll explain later) who manipulated my grief, tricked me into obligating myself, and then refused to pay the bill.

In short, I’m in debt close to $7,500. My mother had shown me her Will that clearly stated he would pay for funeral expenses. When we were discussing her funeral arrangements he approved every detail and then asked me to help him “set things up.” Read the rest of this entry »

Did you ever see the Shawshank Redemption? Do you remember how you felt when you realized that the hero had tunneled his way out of prison with his rock hammer and only a poster to cover up his work?

Wow. What kind of tenacity did that take? Of course, he didn’t have much else to do, really.

We’ve all tuned into the motivational purrings of Dave Ramsey. Get rid of debt. Use the “roll down” technique. It’s simple. A moron could do it.

Except, it isn’t magic. For many people, the roll down technique doesn’t work. Many of us need more empirical evidence that what we are doing, the energy we are expending, the discipline that we are sustaining is really working. After all, we’ve all been fooled before. Read the rest of this entry »

I hear it every day. “What’s your interest rate?”

When I hear that question, I flash to an image of a predatory lender, grinning wildly into his phone and purring, “what do you want it to be?”

The sub-prime infection alleged to have collapse our housing industry doesn’t seem to have been a sufficient enough reason for some homeowners to learn the basics of home financing.

Therefore, expect history to repeat itself, one uninformed homeowner at a time, as they dial lenders and ask, “What’s your interest rate.”

It reminds me of my Grandfather educating me about the difference between ignorant and stupid. “Ignorance,” he said, “can be fixed. Stupidity is a birth defect.” Read the rest of this entry »

Don’t even talk to me about those resolutions I posted. You’d think it was halfway through the year, how much has changed in a month:

• I changed vacation plans and now it’s only going to cost about a fifth of the $2,000 I’d projected. (Yay!) Because I’m doing the sensible thing, and visiting someone I love instead of jetting off for the beach.
• My dad fixed the turn signals on my car, and now I’m thinking maybe I’ll just replace the windshield and not think about getting a new vehicle–so the savings goal is smaller but more urgent. Also I realized I’m past due for an oil change. I hate driving. (Though it’s much less scary when you actually have turn signals.)
• I got–as I mentioned–my wisdom teeth out. I have absolutely no concept of how much I’m going to owe and am waiting with bated breath for the bill.
• Our gas bill was bananas, and my discretionary spending was way, way over budget in January. There are some extenuating circumstances around that, I have plenty of cushion to cover it, and I know that sometimes I go over and under and that’s how it evens out. However, I’m having a total life crisis about my cash flow because of it, and there’s nothing to do but try it another month and see if I can actually manage at the limit I set.

But more important than all of these things, I’m changing plans regarding The Burden I Carry, That Terrible Weight, My Cross To Bear: the effin’ student loans. Read the rest of this entry »