Do you "envelope" budget? Credit: PinkMoose/Flickr
A friend emailed me with a bit of budgeting advice passed on from her mother, the professional organizer Janet Fishman:
Set up separate bank accounts for: living expenses, play, long-term savings, education, charity, and retirement and have either a percentage or fixed dollar amount from each paycheck go into these accounts. Most all companies that offer automatic deposits for payroll have the ability to automatically deposit into multiple accounts. Figure out how much you need to pay taxes, divide by the number of weeks you work, and that constitutes the dollar amount to set aside for each week. Repeat this for the categories above and you will be fully prepared and organized year round!
This ads up to six accounts – or more if you set up one for taxes and other categories. Phew! That strikes me as a lot to manage. Plus, you would have a harder time hitting minimum balance requirements to keep your account free or low cost.
On the other hand, how much money you have to spend on any given thing would be crystal clear. No pushing money earmarked for one expense to cover something else. Plus, retirement is singled out, which makes it more likely that you will save for retirement.
What do you think of this modern take on the “envelope” system? Would you use it?
By Bobbi Burger Brunoehler of BobbisBargains.
TFDuesing/flickr
If you want something you don’t have the money for, figure out how to make it. (I’ve already talked about getting things by swapping or repurposing).
Personally, I have found that learning to make something is the best way to go. I get what I need, and I know how to repair it. Here are my five favorite sites to go to when I want to learn new things:
- General instructions - Instructables - You can learn anything from how to carve a pumpkin to how to build your own computer to how to construct a rocket ship. Instructables has more pictures and instructions than videos.
catd_mitchell / Flickr
This is a post by BargainBabe.com writer Yazmin Cruz.
Seems like every year we make resolutions only to break them, but could it be that in the end we are saving money by not sticking to them? Below I calculate the amount of money spent on meeting New Year’s resolutions and share tips to getting them done on a budget.
Time is almost out to win $175 budgeting software!
Today is your last chance to win a budgeting software package worth $175!!! One lucky winner will get a copy of You Need A Budget software, an hour of one-on-one coaching, the YNAB book, and their audio book!
So far only 55 readers have entered. Make this a Christmas present to yourself by entering no later than today, Dec. 19 at 11:59 p.m. EST.
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This post is brought to you by AmeriLoanSearch offering no credit check loans with instant approval.
There are 11 common mistakes people make when buying or selling a used car, according to the October 2011 issue of ShopSmart, published by Consumer Reports. All of them add up to lost money. Summarized below. About to buy a new car? Here’s how to negotiate a good price and the three steps of haggling. Did you know you can save a lot of money buying car parts from a junk yard? Make sure to check this car recall site before you pay for any repairs.
Seller mistakes
1. Settling on price. Trading in your car is quicker and easier than selling it yourself, but the dealer price will be lower than if you sell it on AutoTrader.com, Cars.com, or Ebay.
2. Risking your privacy. Don’t list your address or full name or you may attract unwanted visitors. It’s a good idea to meet potential buyers in a public place, instead of your driveway.
3. Combining buying and selling. Trading in your car and buying one at the dealer is a super
By Bobbi Burger Brunoehler of Bobbisbargains.
AMagill/Flickr
I spend a minimum of 30 minutes a week on my finances. Mine are more complex than a single person or two working adults with no children, so you may spend less. What do I do during this time?
- Pay all my bills. I pay on time and so I save on late fees and keep my great credit score. If I can’t pay the bill yet because I am missing the funds, I write on the envelope the amount that is due and the due date. I make sure the bill won’t be late if I
By Bobbi Burger Brunoehler of BobbisBargains.
We all make good and bad financial decisions. Overall, I am pretty happy with mine. They have allowed me to live the kind of life that is important to me. I get to be an at-home mom and have been there to raise my kids. The trade off? Used cars and no fancy address.
Looking back at my choices, my worst financial decisions have been:
- Not buying a house 30 years ago. I knew that I would be moving a lot, so I didn’t want to buy a house. But in fact, I always stayed longer in each place than I meant to and with the rising housing market all those years, I would have made a lot of money on each turn over and I’d own my house now.
- Not putting money into
How are you going to pay for college? Credit: Sean MacEntee/Flickr
This post is brought to you by Keiser University where you can get an online bachelors degree.
A 529 plan is a college savings plan with tax benefits. They have been around for 15 years, but there are still many misconceptions. I summarized these four tips from Marina Goodman, an investment strategist at Brinton Eaton in New Jersey.
1. Not realizing you can sign up for a 529 plan in any state. Just because you don’t live in Idaho doesn’t mean you can’t join that state’s 529 plan. While you can get lower state taxes for joining your home state’s plan, each state sets its own
By Bobbi Burger Brunoehler of BobbisBargains.
digitizedchaos/flickr
A couple years ago, I knew NOTHING about cars. They appeared in my life (from my parents) when I needed them. This lovely, but unsustainable situation, disappeared with the passing of my folks. I had to learn about a subject that interested me as much as fantasy football.
Two years later, I am a used car buying guru. As a follow up to my post about free car repair via recalls, here are ten key websites that I have found necessary to educate myself prior to buying an “out of warranty” vehicle.
brtsergio / Flickr
This is a post by BargainBabe.com writer Yazmin Cruz.
CNN Money recently published an article about a company that lets you make money on your morning commute. The company offers you gigs you can accomplish via your iPhone and then get paid. How cool is that?
I take public transportation to save money on gas, and after seeing the CNN article I started thinking of ways to make money during your free time. Here are four suggestions.
- Get a hobbie – If you love to do something, why not get paid to do it? If you’re a photographer, let your friends and family now you’ll be available to take photos at their next celebration. I recently discovered I’m good at giving cheap haircuts and have let friends know. So far, no takers.
- Use your smarts – Tutor local students. If you are good at math, science or any language, there’s probably someone that needs the help and is willing to pay to get their child tutored. A friend of mine is an amazing graphic designer and during the summer she makes extra cash by building friends’ portfolio websites and designing their business cards. She’s doing what she loves and getting paid for it as well. How awesome is that?
- Pet sit – If you love animals as much as I do, but you can’t afford to have them, how about sitting while the owners are away? Need some motivation to get out and hit the pavement, start walking your neighbors’ dog – for a fee, of course. If pet sitting is not your thing, baby sit.
- Start your own lemonade stand – Go back to the days when you where a little kid and you may either have sold or bought lemonade from the stand in your neighborhood. Put those practices in use and sell what you are good at baking or cooking. I wouldn’t suggest an actual stand in the street unless you can get a food license from your city. My aunt is a good baker and she uses her skills to cater celebrations to make a few more bucks on the side.
What other suggestions do you have to make money at home while avoiding scams and doing what you love?
Got money on the brain?
Credit: neon_neon/Flickr
Financial psychologist – that’s what Brad Klontz is. I chatted with him recently about why kids should fail financially, how our money problems stem from unconscious beliefs, and the money disorder test that can save us.
What is a financial psychologist? I’m trained as a clinical psychologist and in the last 10 years I’ve developed an expertise in personal finance. I created a treatment program for money disorders.
What is the most common money disorder? This will come as no surprise, but it’s overspending. We have a negative savings rate, credit card debt, and we’re modeling all these behaviors for our children.
So we’re teaching our kids bad habits? Yes. They watch what we do and model it. When kids see parents head down to the store, swipe plastic, and bring home a TV, what do they learn? One thing that I encourage parents to do is to break down the skills of money management. Even if you can afford to buy that TV, put a jar in the living room, put money in it. Talk to your kids about saving for it. 80% of college students have credit cards now. On average they have about $3,000 in revolving debt. Half of college students have four or more credit cards. (My emphasis.) We require kids to take a drivers ed class before they get behind the wheel, but there is no class to get a credit card.
What are three money lessons kids need that they are not learning in school?
niallkennedy / Flickr
This is a post by BargainBabe.com writer Yazmin Cruz.
Spending money is subjective. What I think is a waste of money may be prized by someone else as a necessity or an investment. Here’s what I save and splurge on.
What I save on:
- Cable TV – I’ve never had Cable TV. I see no point in paying for TV when there are free channels. When I have time, I watch my favorite shows on Hulu. You too can stop spending money on cable TV. (easily saves $40 per month, or $480 per year)
- Newspaper and magazine subscriptions – I seldom subscribe to newspapers or magazines unless I find a really good deal. I can always catch up on the news online or head to the library to read magazines, though I am considering paying for an online New York Times subscription. (saves $12 per month, $144 per year)
- Transportation – I live in L.A. and don’t drive.
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A screenshot of a comparison between Mint and CommonSense from FindTheBest.com
This post is sponsored by Cash Advances US providing fast payday cash advance online.
Do high-priced financial software programs manage your money better than free ones? A new site called FindTheBest.com says no. FindTheBest compiled reviews of 146 financial management programs and created a comparison that is useful and easy to digest.
A chart like the one above lists basic info about each program like its name, features, and how many stars it received. Click on a few programs that interest you and compare them in detail. The detailed comparison page has color coding to make the information easy to absorb. Each program’s star rating is an average of the reviews it received on CNET, CBS MoneyWatch.com, and PC Magazine.
FindTheBest is an aggregation site that also ranks topics as diverse as colleges, ski resorts, and dog breeds. My email exchange with Brandon Coakley, the site’s business development manager, is revealing: (more…)
A little graduate. Banana Custard / Flickr
This financial planning post is brought to you by Towry, the UK’s leading investment management and wealth management firm. Towry offers independent financial advice, pension advice, SIPP and retirement planning.
This is a post by BargainBabe.com writer Yazmin Cruz.
Graduation season is in the air. If you’ve already received graduation announcements, it’s time to start thinking of the perfect gift. Here are four helpful gift ideas to set grads on the right financial track.
1. Retirement accounts – Students seldom think of retirement because they are busy being young. This gift not only includes a chat with you or a financial adviser about retirement, but a cash gift, which we all like. Sit down with your graduate and help them start planning for the future. By starting early, the power of compounding interest and time will allow your graduate to build wealth. If they are working for a company that provides employee retirement plans like a 401k, encourage them to take advantage of it. Before they do, make sure to read Bargain Babe’s post on how to determine if your 401k plan sucks. If your graduate will be self-employed, a talk about how to open an IRA is a must. Keep in mind that whatever amount you are willing to gift your graduate is up to you and know that it will be welcomed and appreciated.
2. Start an emergency fund – (more…)
By Bobbi Burger Brunoehler of Bobbisbargains.
wrestlingentropy/flickr
My son has officially become an adult. I know because he gets credit card applications almost every day. I’m amazed at what banks are offering a teen who does not have a job or any way to pay off the debt he might incur. Juxtapose this against the tremendous scrutiny that my credit report underwent recently when I applied to get a mortgage and you can see that something is amiss. Why is my penniless son being lured into debt while the banking industry is making great credit-scored working adults pay huge fees to get a fully collateralized mortgage? Sorry, I don’t have the answer to this question, but if anyone else does, be sure to enter a comment so that I find out the answer.
What I DO have the answer to, is how to save a lot of money by (more…)
