I'm reading this killer book by Leo Babauta called The Power of Less, and in it he suggests to spend 15 mins. a day on a new habit to work on. It's brilliant! Just enough to get you to take action, but not enough to wear you out. I actually look forward to this "work on me" time!

I've been using it to declutter our house more (and subsequently my brain), but you can surely apply it to anything in life - even finance. It's been about 12 days now and I'm still going strong, baby! Incredible. And perfect for us A.D.D. folk ;)

What I love the most about this concept is that it gets you to STOP all the craziness of your day - whether it's in the morning, day, night, whatever - and helps you to FOCUS on a simple task. Whatever you choose it to be. It's fascinating because you'd think out of 24 hours each day that 15 minutes wouldn't mean jack, but sometimes we just go and go and go w/out ever stopping and consciously prioritizing our time and wants in life. Like everything's one big "swoosh," ya know?

15 minutes doesn't seem a lot of time (power of less, eh?) but it can do wonders if spent wisely. Think about it - what would you do with an extra 15 mins every day? If a genie stopped time and said GO! Do whatever you want for 15 mins and then we'll start the day up again! Would you use it to better your lifestyle?

I encourage you to take a few minutes right now and really think about what goal you'd love to achieve this month. It could be the smallest, or simplest one out there - it doesn't matter. What's important is that it's a habit that makes you happy. A habit that gets you towards a healthier YOU.

Here are some ideas if it helps. Some are financial, and others not:

• Declutter your house. In these past 12 days I've cleaned out my closet, drawers, cabinets under the sink, kitchen cupboards, and just last night my file cabinets! (although that took 3 hours - but the point is I would have never started had it not been for this new mindset)
  
• Review a bill each night. I guarantee you'll find places you're overspending.
• Run/walk around the block. Much easier to do knowing it's only 15 minutes, right?
• Do art.Pick up a brush, sharpie, block of clay, whatev. Just go for it!
  
• Eat healthier. Prepare 1 meal ahead of time each day so you know you're eating well.
• Clip/download coupons. Buy the same stuff every week? Spend a few mins finding deals!
  
• Review your cash flow. Jot down what went out, and what came in for the day.
  
• Read before bed. If you're a slacker like me, this will really get you in the habit of reading more :) Plus, I find it's a great way to let your mind release that day's stresses before zonking out.

The list goes on and on my friends! I asked my newsletter subscribers this very same question and the results were outstanding (some of which are listed above). I may be in the "new & shiny" excitement phase right now, but I honestly couldn't be happier. And I want YOU to be happy too! So again I ask - how could 15 minutes improve YOUR life today?

Labels: advice, goals, life, minimalism

Ahhhh, the good old "pay off debt vs. save for X" debate. Gets me teary eyed every time ;) Got an email from a reader, and thought it would be better to hear from all of you rather than just me - esp. since I'm sorta anti-home owning at the present time. Well, kinda, but not really...

Anyways, here's what Mrs. Debater asks:

"I am debating on whether to save up $$ toward a down payment on buying a home or paying off my student loans first. Currently, my student loans are the only loans I have and has a balance of $5500 (one for $2000 @ 6.8% and another for $3500 @ 5.6%) but I'm only in my 1st year. Thankfully, my employer is going to contribute generously from here on out though I'm going to have to put some cash down each semester myself. I really want to buy a house in the next few years but I hate the student loan cloud over me. Would you pay off the debt or save for a house down payment first?"

Personally, I think both goals are admirable. If you pay off the debt, your mind is free'er and you can concentrate more on the house down payment (awesome), and if you start saving for the house first you'll be that much closer to owning (awesome again!). They're both great for your finances and it's pretty much a win-win situation. So that's good!

If I personally had to choose, I'd probably go w/ the saving for a down payment route. Not at all because homes are "good investments" or anything, but just because having a crap ton of cash saved up is wonderful! It's like having a giant Emergency Fund before you spend it :) Another thing to consider is that you could always use this cash anytime to pay off whatever you like. So if your saving is going well and you want to throw a couple hundred towards the loans, you can do it! Rather than the opposite of paying them down first, and then taking it out and using the money for something else. Once that cash is gone, you ain't getting it back.

I think it really comes down to your own preferences. If cutting out your debt means you're a happier person, then by all means go for it :) Especially if you've already got a decent Emergency Fund. Paying interest on loans, or anything for that matter, blows, so anything you can do to alleviate yourself from it is a good idea. But let's see what our readers say - How would YOU GUYS handle this?

Labels: debt, goals, reader mail, saving

Welcome to 2010 my friends! It's a new year full of new goals, new ideas, and more importantly new adventures :) We'll have some downs here and there as well, but for now we concentrate on the positives. That means more financial awesomeness, and even more so freedom!

And we do that by taking advantage of what this new year offers us:

• A chance to save more save money!
• A new year to get rid of all that crap laying around.
• A new year to get rid of all that crap DEBT laying around!
• A fresh clean start to get our finances in order.
• A chance to pump up our 401(k) and Roth IRAs! (my personal favorites)
• And a whole other year to work on the things we didn't complete LAST year ;)
  

I started this post in hopes of creating my own New Year's resolutions (click for last year's), but quite frankly I just can't think of any. I don't know if it's because I'm being lazy right now, or if I'm perfectly content (or maybe a nice mixture of both?), but I will say I'm excited to see what 2010 brings. There's something about fresh starts that really get me motivated and ready to take on the world. Kinda like how it was back in school - a new year to reinvent yourself and do your best to impress the ladies ;)

But enough about me. What are YOU gonna do this year to pimp your finances?! Any #1 goals or things that you just *have to* complete in 2010? Share it around my friends! The more you let it loose in this world, the better chance of it coming true!

----------
Okay, so I lied - I just thought of a few ;)
- To max out my 401(k)s AND Roth IRA again.
- To help Mrs. Budgetsaresexy max out HER Roth too.
- To reach a Net Worth of $200k.
- And lastly, to better manage my time! (Why is that always so hard?)

Labels: get motivated, goals, personal finance

Remember those? The ones you made right before you partied like it was 2009? I didn't, until my shower this morning started populating my head full of random thoughts. And I must admit, if it weren't for this blog I'd probably have forgotten them altogether. Alas, it is all tracked on this super duper weblog.

I find it's good to go over these every now and then to a) make sure you're still on track, and b) give yourself a pat on the back for all you've accomplished (or, if deserved, a punch in the face for being a slacker. Luckily though, only you get to be the judge of that). Let's see how I'm doing, shall we? My 2009 New Years Resolutions:

Personal Finance

1. Pay off the last of the car loans - $3,214.87. Completed! I paid off the entire Cadillac, along with the other loans I had associated with it (selling my Highlander had left me $1-2$k in the whole. Stupid SUVs and '08 gas gouges). Going on month #6 of no car payments!
2. Combine and analyze the Mrs. and I's money - expenses, assets, net worths. Shockingly, this is also done. We combined all our finances on paper/spreadsheets back in January and have looked forward ever since. We keep a few accounts separately in our own names still (like our "do whatever" funds), but we track 'em all as one big net worth. It still feels kinda weird though, I'm not gonna lie.
3. Hit $2,000 on the sell-o-meter. FAIL. The sell-o-meter is still frozen at $907.00 - exactly how it was 9+ months ago. Every time I find something to sell, I end up piling it in a corner and convincing myself it's not worth the time at that moment. 50% of this is true - blogging has taken up way more than it used to - and 50% is just plain laziness. It's true I value blogging & internet time more than selling something for $5 or $10, but I also know that I don't want that stuff in the house anymore and I have to kick my ass into gear to either sell it or donate it. Especially now that I'm trying to be a minimalist :)
4. Have a combined Net Worth of $125k. Soooooo close! $6k away and hoping to hit this by the end of September :) For the dirty deets, check out my net worth updates to see how it's progressing.

Life In General

1. Write more letters instead of emails 24/7. 75% FAIL. I wrote like 5 letters in January to old high school friends, but after the novelty wore off I just plain forgot. Maybe I should put a goal like to send 1 letter every month or something? Even if it's just to my mom - they love that stuff :)
2. Put up crown molding and new light fixtures in the house (yikes!). BIG FAIL. Have not installed crown molding NOR new light fixtures. I still have the urges to do this, but money and time are just getting in the way right now. I think I'll leave this be until next year's resolutions ;)
3. Travel to a new foreign country! (we won't count Bahamas) Another FAIL. Although I've done a helluva job circling around some incredible states these days - New Orleans, New Hampshire, Pennsylvania, and as already mentioned - the Bahamas! Ireland is reason I made up this goal though, trying to figure out the best time to go still.

Bloggy Blog: (* = long shot)

1. Keep blogging at least once a day, M-F. Done and Done. Sometimes I even do two (*gasp*). I've considered switching to 3 times a week, but I write much better under stricter deadlines when I'm forced to dig into this brain of mine last minute. Most of my favorite posts came when I initially wasn't in the mood to write (as crazy as it sounds, I really don't like writing in general).
2. Hit 2,000 subscribers! * We're getting there :) I'd happily retire the year with 1100+ anyday.
3. Make a total of $6,000 through advertising. ** Completed! I don't know how, or why for that matter, but there's been an upswing in my advertising efforts. Might blog more on this later.
4. Get featured in the media (TV, Magazine, Consumerist) *** No TV, but I got into my first magazine this month AND on Consumerist - twice! Not to mention one of my favorite big blogs MSN Smart Money (featured there a handful of times this year). Great GREAT few months in this department, and actually working on a "BudgetsAreSexy In The Media" post which will come out soon. Perfect for those days I'm hating on myself.
5. Interview a celebrity about their money skillz ***** Does J.D. and Trent Count? How about Ramit? ;) Financial bloggers aside, I've scored a big goose egg on this one. Although I haven't put much effort into this until recently - I shot over an interview request to Chris Cooley, a rock star NFL player for my Wash. Redskins. His people haven't gotten back to me yet, but it's safe to say my hail mary pass will go uncaught (hardy har har). In the meantime, if you have celebrity friends SEND THEM OVER! I'll handsomely reward you with a 6 pack of virtual Natty Light and a dozen or two email hugs. Maybe more if I'm feeling feisty.
   

Overall I'm happy. No Pressure, No Problem as I said back then. Life has been good and I can cross half these things off the list now. I don't know if I'll be spending any more time on the failed ones at all, but as long as I'm working on *something* I'll consider it a win. That's really the point of all these resolutions - to work towards bettering yourself. If you can figure out a way to make that happen, you're head of the rest out there.

Speaking of which, how are you guys coming along? Anyone whipping my ass? Anyone give up already? Do you even REMEMBER what your resolutions are? Can I ask you yet another question?

Labels: goals, in the real world, life, one of my lists

I feel like I want to be a Minimalist right now :) I know it's a lot easier said than done, but in theory it sounds awesome! Fewer things to worry about, less clutter in the house, less maintenance costs, less less less!



I've been thinking about this for over a week now since the Frugal Bachelor started hitting on it. And then even MORE when he linked over to The 100 Things Challenge by the Minimalist King himself - Leo @ Zen Habits. Damn that really got me thinking....what the hell am I doing collecting all this stuff?! Do I even *use* half of it? (answer: no)

Before I get into it all though, here's a great explanation of what minimalism is by ecollo:

"When the term minimalism is used, it often refers to art that is stripped down so it only includes the bare necessities. That same principle applies to the minimalist lifestyle. The idea is to de-clutter the area around you and to avoid accumulating more by simply not buying things you don't need."

YES! I like, I like! Now, anyone who knows me in REAL LIFE would probably tell you that I represent the opposite of minimalism ;) I have frames & art all over my walls, drawers stuffed with trinkets, collections of things I can't give up, boxes of 8th grade notes, etc etc...in fact, I wouldn't be surprised if people mistaken our place for an antique store! Or at least a thrift store. haha...So yeah, this would def. be a challenge for me. But like I said, in theory I'm all about it!

Minimalist Lifestyle = Fewer Things On Mind

As I get older, I'm realizing that the more stuff I have the more stuff I have to WORRY about. I really hate that. I could honestly say that I love 75% of the items I own, but I'm starting to wonder if it's worth the mental price tag. I mean, how could I appreciate what I really own when I'm in front of the TV or laptop all the time anyways? I dunno...

The other side of me asks me what the hell I'm talking about ;) I LOVE all the artwork and pictures watching over us as we roam the halls. They scream LIFE, HAPPINESS, CREATIVITY - so what's bad about that? Nothing I don't think, as long as I keep and appreciate *those* belongings and instead rid myself of the other junk lying around. I guess that's the first step here - dividing your stuff up into things you absolutely enjoy, and then all others under it. No real gray areas - either you love it or it's "so-so" and it's taking up space. (there's probably a 3rd category of things you *need* like tools and such too, but not sure where that fits in with this lifestyle)

Minimalist Lifestyle = Less Clutter

If the brain power wasn't enough, the physical part is. Every day we go through our front door, see 1,000+ things instantly, and then brush most of it away to concentrate on the items needed that very second. And that's just the first level! If you have 2 more (like we do), the same thing occurs every time you walk through. It's not the end of the world, but I bet your brain would feel a lot better seeing LESS stuff around the house. Or I guess less UNNECESSARY stuff as we have already determined (or at least I did with the art everywhere - if those aren't important to you they go right into YOUR so-so bin).

And guess what? The fewer things you own the less maintenance/upkeep you have to shell out money on! No more fixing unimportant (to you) gadgets, toys, collections, etc etc. I'm telling you, if you could pull it off I bet you'd be a lot happier :)

And having less clutter around the house is just the first half of it all. If you can clean things out, and STICK to it, the desire to buy more and more stuff would diminish along with it. After all, if you keep buying things they'll go right back on the shelves and drawers that you just worked so hard to freshen up, right? That means less money going out the door, and a fatter savings account. Or at least a house full of *must haves* if you subscribe to the "buy something - throw something else out" rule.

Buy Something - Throw Something Out

If you/I can pull this whole minimalist lifestyle off, I think this is a rule that would help us stay on track. Say, for example, you DO get all your belongings down to 500 (or whatever # you choose) and you want to pick up a new such & such. You have to then ask your self - "Will I enjoy, or need, this item more than any other of my 500 things?" If that answer is Yes, then go for it! And then sell/donate the item you want to replace it with. Simple :) If you were Mr/Mrs. Perfect of course.

So what do you take from all of this? Well, it all depends on how happy or not you are with your lifestyle. For me, I could use the de-cluttering. I don't think I could get my life down to only 100 items or a liter bottle full (seriously, that's hardcore), BUT I could certainly cut it in half. Perhaps a 1,000 items challenge? I dunno...I just find this whole minimalism stuff incredibly inspiring.

Labels: goals, life, minimalism, money hacks, shopping

Hah! My original "Millionaire To-Do List" before I digitized it :) I came across it when flipping through my "idea book" the other day. This one actually made it to fruition, but unfortunately a good 25-50% are still in the works or on hold. But hey, that's what keeps us going, right? Our dreams and visions for the future!



PS: If you don't do something similar already, you should totally give it a shot. Increases the odds of accomplishing your goals, while at the same time helps to hold yourself accountable :)
PPS: Writing down your accomplishments each day is also a great idea.

Labels: goals, million dollar club, millionaire love, retirement

Just like budgets, financial checklists also come in different shapes and sizes.

Today I present to you a real-life one by fellow blogger Kaitlyn from Upturned Barbie. She blogs about life in general, but it's pretty obvious she has a keen eye on her finances.

Check out her current game plan:

• Open a c.d. (waiting for a decent initial deposit)
• Decide on, and begin, contributing to an IRA
• Pay off the less than $1k of debt I have
• Apply for, & get, a credit card & make regular pymts
• Buy a house (foreclosed) in 1-2 years w/ a 30% down pymt & six months living expenses

Now that's a woman who knows what she wants! This self-proclaimed spreadsheet nerd is on track and ready to make things happen. She's already established a budget and believes "control of money is really one of the best things ever!" Sexy! How old are you again? Sheesh....@ 20 she's already 10 steps ahead of her peers.

It doesn't come w/out it's drawbacks (she's currently working 50 hours a week), but saving like a squirrel getting ready for winter sure does have its perks! How about you rock stars? Care to share? (You can see my top 3 over there in my sidebars, along w/ my progress)

Labels: goals, money management, reader mail

This question popped up in an email i got from AskMen.com, asking if I wanted to participate in a survey.

Now normally I just glance over and then delete/archive as my A.D.D. brain can only take so much. But seeing how it was the "Great Male Survey of 2009", who am I to turn it down? Okay, well in reality they were smart enough to bold out some of the financial questions in the email ;) While most of them got my brain thinking, there was one question that really stood out:

How do you measure your own financial success?

Good one! First, each of us should probably define what "financial success" is. Is it money? Job title? How big your house is (better not be)? Everyone has their own thoughts on it. The first thing that comes to MY mind is net worth and my budget (naturally). Net worth because it gives me an overall financial snapshot of how we're financially holding up in life. It's something I can track on a monthly basis and see how successful (or not) we're doing. I think of my budget next because if I'm sticking to it and it's working, then I've had a successful month ;)

Okay, so keeping in mind what you feel financial success is, here are some of the answers given for the question (along with my own experience on the right of each "answer"):

1. Against that of my friends. - No way! Well, maybe partial-way ;) What they do doesn't affect me financially by any means, but I do notice that whenever one buys a new car or a bigger house, I tend to analyze how exactly they were able to do that. Stupid, but true.
2. Against that of my industry colleagues. Hmmm, nah I don't really compare anything here. I probably get paid more for what I do at my current job than similar positions in my industry, but that's just cuz I lucked out and found a perfect fit.
3. Against that of my father. Wow, good question. I feel like I would maybe down the road when I get into my late 30s or 40s, or probably even when I have kids, but at this moment of time it's not a thought for me. I do, however, totally listen to his thoughts on personal finance and investing!
4. Against my own financial goals. Ding, ding, ding, we have a winner! I 100% believe this is where we should all fall. I say "should" because most of us still keep those previous people in mind whether we want to or not, but that's just human nature.

Overall, it's a good idea to track your success through the goals you set up for yourself, not anyone else's. At least in theory ;) As long as you're WORKING on bettering your situation though, I say you're moving in the right direction. Maybe one day the Jones's will follow you?

Labels: advice, goals

My #1 financial goal each year is to max out my 401(k). It's the one thing I strive for more than any others, no matter what's going on w/ the world. Some years it's easy and I bask in my glory, and other times I want to carve my eyeballs out with a rusty spoon. If I can complete just that one goal each year though, poppa J is happy :)

He knows that socking away $16,500 every year (or whatever the current limits are) will bode well in the future and allow him to sip long island iced teas on the beach some day! Plus, the fear of working himself to death is just too much to bear in his old age.

Regardless of what it is though, I believe everyone should have a major financial goal to complete each year. Whether it's saving up $5k in an emergency fund, wiping away an entire credit card, or just taking a new financial course every year. Whatever it is, strive for it and make it happen no matter what it takes. You'll be amazed at what you can actually pull off when you push yourself.

In fact, I had to cut down my average 401k contribution to 1% for a while due to some accounting issues that were outside of my control. Because of this, my total contributions thus far is hovering around $3,700 instead of the $8.5k it should be at now that '09 is halfway over (scary!). You know what that means? If I still want to reach my goal of hitting $16.5k, I have to bump up my contributions like crazy to catch up! And let me tell you, it's a lot more fun having 30% taken out than 90% which it's currently at (we're talking a drop from $1740 every 2 weeks to $69 and change!). Wha???

The point is, willpower's a beast when put to good use. Focus your energy into a specific goal and make it happen. If you accomplish more? Great! But at least have that major win in your pocket. Saving and investing isn't hard in itself, it's just a matter of doing something about it. So get that game plan in action and tell us what you're working on! What is YOUR #1 financial goal this year?

Labels: 401k, advice, challenges, goals, retirement

Spoken by the brilliant Henry David Thoreau. That quote sums up exactly what's on my brain today - charity. The last time I wrote about this I decided to donate $25 to a new organization every month. Sadly, I continue to forget this every month until one pops along my radar or I specifically get asked to contribute to someone's latest cause.

Today I vow to make 2 changes. The first - to actively stay on top of this once and for all. Not only will I be upping this amount to $50, but I shall set up a google calendar item and have it alert me once a month to make sure my goldfish memory gets pinged on a regular basis. This should work swimmingly as I'm always connected to the internets!

The second is to create a list of great organizations and charities to pull from. If that list is always full and constantly being updated, I'll be more inspired to donate as I see an immediate impact when each charity is crossed off. Plus, I'll then have an easily accessible place to mark (and support) those favorites of mine whenever I come across any dry spells in the collection process.

This is where YOU guys come in :) I would like to create a solid list of those organizations nearest and dearest to your hearts - big or small. I know when I get passionate about something I want to tell the world about it, and I'm hoping we can do something about that here.

If there are any organizations you feel deeply passionate about, or want to spread the word on, please tell me about them. You can send details, brief bios, contact info, or simply a link where we can find it. If it's important to you, I want to hear about it :) At some point I'll be publishing this list in hopes to spread the word even more, so be sure to holler (you can email me, twitter-tweet me, or drop a comment on me, whatever's easiest.)

This is my attempt at spreading a little love, and making a difference in this crazy world of ours.

Labels: charity, goals, in the real world, investing, money quotes

All this drinkin' & dancin' & beachin' has jostled a few goals loose this weekend ;) And it's a good thing too as i was starting to think i lost all motivation!

But I'm back in action and happy to say that '09 is gonna be THE year to remember. I can't tell you how or why that is, but i'm sure damn excited about it.

And why the shite is it snowing outside? Doesn't this weather know that sunburn doesn't mesh well with snow ;) But i digress...actually no wait - I forgot to mention that there were NO baggage fees this weekend!!! I guess if you go international you're in the clear. Okay, now back to you regularly scheduled content for real.

It's been 19 days since the New Year, and I'm finally ready to put down some goals on paper type! They're a lot more difficult than last year's, but if i could pull off just 75% of these I'll be one happy mother f'er ;) Here's everything i came up with, broken down by category:

Personal Finance:

• Pay off the last of the car loans - $3,214.87
• Combine and analyze the Mrs. and I's money - expenses, assets, net worths
• Hit $2,000 on the sell-o-meter.
• Have a combined Net Worth of $125k.

Life in General:

• Write more letters instead of emails 24/7.
• Put up crown molding and new light fixtures in the house (yikes!).
• Travel to a new foreign country! (we won't count Bahamas)

Bloggy Blog: (* = long shot)

• Keep blogging at least once a day, M-F.
• Hit 2,000 subscribers! *
• Make a total of $6,000 through advertising. **
• Get featured in the media (TV, Magazine, Consumerist) ***
• Interview a celebrity about their money skillz *****

And I'm spent. Whew! How the H-E-double-hockey-sticks am i gonna work it all out? haha....remember that saying? So yeah, I've got my work cut out for me. But at least they're all do-able, at least the ones i have control over...How about you? Working on anything you'd like to share w/ the rest of us? Or perhaps your NY resolutions is to not have any NY resolutions ;)

Labels: goals

Waa-BANG! It seems we go through $6,000 a month!! WOW. I knew we spent a lot, but my goodness. Do you know how much that is a year? ... $72,000 bones! At least $17k of it goes right into savings/retirement. Actually, that # is almost doubled when you add in the 401(k) employer match too, so I've got no complaints :)

Another thing I need to keep in mind is that these new #'s are actually for BOTH the Mrs. and I, as opposed to just my own stuff. We've been spending all of this all along anyways, but this is the first time i've putten it all together and anylized it like I did. While it was scary as $hit, i'm not gonna lie, at least i KNOW now where it's all going. Going forward this will be my new benchmark to beat ;)



And to be honest, it's not *that* far off from what I used spend early last year all by myself! If you recall last year's money flow chart, I was going through $5k ALONE! That covered $3,779 for all my expenditures, and then an additional $1,188 worth of 401(k) deposits. So in reality this ain't to shabby. It's still a helluva lot of money going out the door, but still not too horrible - at least for the area we are living in (Washington, DC).

Here's how it all breaks down:

MORTGAGE: The #1 bad boy eating up all our money! I'd *really* like to change this over the next year, but for now it is what it is. This section covers Mortgage #1 ($1650.00), Mortgage #2 ($200 as of now...used to be $540 before rates got slashed), Taxes ($282), and Home owners (HOA - $127).

SAVINGS/RETIREMENT*: This would be the #1 slot in my dreams ;) Most of this includes my all-time favorite pre-tax 401(k) contributions of 19% ($1,188/mo), and is why it may look like we're "spending" more than we take in. Gotta love those tax benefits! We also add about $200 worth of savings every month, and periodically add a little into our Emergency Fund & Roths too when extra money comes in.

TRANSPORTATION: My "car loan" right now is the biggest culprit here @ $444/mo., but my goal is to wipe it out within 4 months. The Mrs. doesn't have a car loan (you go girl!), so the rest of these expenses fall into Gas ($146), Metro ($68) and Train tkts ($125).

FOOD: Groceries are the biggest item @ $317/mo., followed by Dining Out ($173) which covers work-day lunches, dinners out, starbucks (for the Mrs.), etc, and then Beers ($58).

OTHER: I'm sure half of this stuff belongs in other categories, but it's much easier to manage the "leftovers" this way, as well as work on lowering it. "Other" includes gifts ($75), clothes ($100), charity (currently $25 but would like to start increasing soon!), and then all other Random items @ $224.

UTILITIES: We have our Comcast Triple Play @ $159 which covers tv, internet, and phone, Electric ($95), and Water ($28). For some reason we saved a lot here when we got out of renting.

INSURANCE: One of my favorite categories! haha..am i a dork? This covers both our Cars @$118, Life insurance for the two of us ($56 total), Homeowners ($15), Jewelry (aka diamond rings & earings @ $7/mo.), and our Computers for a whopping $1/mo!

HEALTH & BEAUTY: The girl's section ;) $20 for monthly prescriptions, and about $70 for hair cuts/dyes, make-up, lotions, and maybe (just maybe) a tiny portion for my Aquanet hair spray!

GRAD SCHOOL: If the Mrs. hadn't gotten a free ride here, we'd be looking at a good $35k/year!!! Ouch. But, as luck/smarts would have it, we are only looking at around $42 for books and $38 for fees. They're paid per semester, but i broke 'em down per month to track easier.

Whew! I must say, this took quite some time pulling all together. I had abut 75% of my stuff calculated already, but it was getting the Mrs. stuff together that really took some time. I'd highly recommend doing this though if you haven't already. It only takes one time and then you're set for the year! Although i'll probably revisit it every 6 months or so, esp when major things change.

And now, I'm gonna set my first NY's resolution: To spend only $60k of this est. $72k this year! (Take that economy...)

Labels: goals, money management

For the first time in 28 years i finally won! I can't believe it....I'm pretty sure if my mother was reading this she'd say something about pigs flying or hell freezing over, but luckily she doesn't so i may bask in my glory joke-free ;)

Now, they weren't the hardest or most fascinating goals in the world, but they were enough to get me believing in them again! My old resolution was to always have better handwriting, but needless to say i failed each and ever year...so this time it feels good!

Plus, it doesn't hurt when you write a personal finance blog...and you pick personal finance subjects to work on :) So really, i should be thanking YOU Budgetsaresexy.com, and YOU readers of Budgetsaresexy.com - you are the light that guides my financial way! haha.... So here they are, cut and pasted from my mid-year update back in May (and not much different too, i might add).

My 2008 New Year's Resolutions:

1) Start using a budget (a what?). A+
Yup, for the first time in my entire life i created, and stuck to, my budget. And in all honesty it wasn't as hard as i thought it would be...although i'm guessing that's becuase I a) kept the same job the entire year for once, and b) now "own" a home and forced to watch myself. A lot has changed since creating it back in Feb though, so I'll have to post a new one for 2009 here shortly.

2) Learn more about finances; stocks, mutual funds, reits, etc. B
Hum.....well i def. DID learn more about stuff in an "overall" kinda sense, but i didn't get down and dirrrrrty like i originally wanted to. I pretty much just did enough to get by and be happy with myself in this dept. I think i'll just leave the hardcore details alone until they actually play a part in my financial game plan.

3) Learn more about web design. A
Yep! Blogging away every day, and being our in-house designer @ work sure helped this one along :) I still think i could have learned more and applied myself, but overall i gave myself an A because i'm a helluva lot further than i was last year.

4) And finally, read more....helps 2 & 3 out, eh? A+
You know what helps this? Ordering 4 magazine subscriptions, and commuting via train for 2 1/2 hours a day ;) That, and having your wife go back to school and start studying all day and all night. Turns out you have a lot more time to yourself! But $hit, it got me to read again didn't it :)

So, another year gone, and another year wiser....and older :( This is my last year being in my twenties - yikes! I don't think it'll feel all that much different though - I pretty much act like a college kid and do as i please anyways ;)

You all make good this year? Even if you LISTED your resolutions somewhere i'll give you a virtual pat on the back though, that ish is hard! You know i got mad love for ya...

Labels: awesomely awesome, education, goals, updates

Yup, it's offical! They are frozen for a "while". I can't say it's all too surprising though - the last one we've received was back in February! haha....I'm just hoping it'll pick up as the economy does, but who really knows.

While i'd like to bitch and moan about it, i really can't without coming off as a spoiled employee ;) I've been getting a free $2,000 every 3 months which sure ain't part of the job, ya know? Now, if i were in sales that would be one thing, but we're a small start up and it's more about sharing ownership in the company than direct performance.

Still, it's what....$8k a year that i was sorta-kinda-but-not-really counting on ;) Luckily it's not part of my budget at all, which is something my dad once taught me growing up - they're called a "bonus" for a reason. It will, however, delay a few yearly goals:

1. It Decreases the odds of hitting my $100k Net Worth goal.
   Not that the market hasn't killed this already, right? Unfortunately these are all things outside of my control, so while my goals may not get met, at least i can't blam myself or any of it ;) Guess it's just the way life works out sometimes.
2. It Decreases Kills the odds of topping off my Emergency Fund.
   I still have a good $4,000 in it, partially filled from the 1 bonus we did get this year + the stimulus check, but i was hoping to max it out this year with another $1,200 directly from the other bonus'...oops.
3. It Decreases Kills the odds of paying off the credit card by end of year.
   This was more of a new goal for myself when i slapped my car purchase on it, but i guess it'll have to be done the old fashioned way - paying $400 steady each month (the same amt. as my old SUV payment).
4. It Knocks my millionaire plan off by a bit.
   I planned on investing/saving all the rest after tidying up the above 2 goals. i'll have to recalculate this if the freeze goes to "frozen 4 ever" mode.

Oh how i shall miss you, Bonus! It just goes to show that you can't ever count on anything these days, no matter how stable your job may be. That, and being financially responsible is always in your best interest!

There's talk that they will resume during Xmas time, and possibly with even retro-pay, but i'm not counting on it...that's like my Redskins winning the Superbowl ;)

Labels: career, crazy economy, goals

It seems like every time I get close to reaching my goal of 5k, something happens and I get thrown back a bit. This time around my emergency fund got frozen* inside my Home equity line of credit, basically leaving me with zero now. Since it was used to pay part of the 2nd mortgage (the heloc), it's not like i really "lost" the money, but I still can't tap it in case of an emergency. In reality, an emergency wiped out my emergency fund!

There IS a lesson to be learned here: Emergency Funds should be totally liquid, and accessible 24/7!

Lucky for me i'm a pretty positive guy, so as frustrating as it is, at least i am learning something :) There's also something to be said from starting with a clean slate. Before this happened, I had accumulated $4,800, but slowly kept chipping away at it until it reached around $3,000. Then I had my "aha!" moment and started adding back to it. At this point, however, I kept thinking i was down 2k and couldn't feel content until i was back at 5k. Thus, every time i added $ into it I couldn't feel at all happy about it as I was just making up for it.

This time around, however, I will leave it alone 100% and watch it grow. So each time I add a little into it, I'll be proud every time knowing that i'm that much closer to reaching my goal. Now I'll be saving up, instead of catching up.

• This year's goal: To reach $5,250 (yahoo!) I'm fairly confident i can make this happen.
  
• My ultimate goal: To reach $10,500, which is what i'd need to survive for 3 months. (scary huh? I am working on lowering this, believe me.)

You can track my progress on the status bars to the right which i update monthly. Let's hope i keep pumping it up and reach my goal! Lord knows it won't be easy...

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*To read more on our heloc freezing up, read my operation heloc: the bad :( posting.
*To read more on why helocs freeze up to begin with, as well as some awesome commentary from users and how it affected them, read this article from The North County Times.

Labels: advice, emergency funds, goals, helocs

Could it be that i've actually STUCK by them this year? I was thinking about this as i drifted off to sleep last night (pretty dorky, i know) and thought it would be cool to post them here and make sure all is still dandy. And after looking at them for a few seconds, it's actually pretty damn funny cuz all of this was BEFORE this blog was even created :)

I guess it goes to show that if you write them down somewhere, you'll get closer to accomplishing them. Or perhaps even just setting realistic goals, and those that you're actually INTERESTED in! Either way, I'm happy to report that I have broken a 27 year losing streak:

My 2008 New Year's Resolutions:

1) Start using a budget (a what?). A+
Boyyyyy, this was def. the old me! Can you believe i never even USED a budget? haha... good thing i'm still going strong with this blog. Would be pretty embarrassing if i DIDN'T use a budget considering the name and all ;) Budgeting has seriously kept me on track so far - esp. on those days when I wanna splurge a little.

2) Learn more about finances; stocks, mutual funds, reits, etc. B+
Oh yeah, definitely still on track with this one too. While i'm still pretty far away from being an expert, i'm at least starting to pick up on the terms and the main benefits of one category over another. With the only exception of the "reits". I know they have to do with real estate and all, but that's about it. I saw that term in some book i was reading ;)

3) Learn more about web design. A
For sure! Getting this blog up and running was a def. push into it that i needed. While I've always known the basic fundamentals of designing for the web, I hadn't really expanded my knowledge until this guy was up. I'd like to wrap my head around CSS and SEO (Search Engine Optimization) a bit more though, so that's next on the list to do.

4) And finally, read more....helps 2 & 3 out, eh? A+
This has been my biggest obstacle, but i'm proud to say i've been kicking it's a$$ since January! haha... And by "kicking it's a$$" i mean by reading books like a normal person ;) I say that because i usually HATE reading, and thus never used to do it. This year, however, i've learned that choosing the right books makes a world of difference. As of date, i've finished 3 finance books - The Millionaire Next Door (review coming soon), The Automatic Millionaire, and A Million Bucks by 30, and continue to read the following magazines monthly: Money, Smart Money, and Kiplinger's Personal Finance.

And they say people with A.D.D. can't keep goals ;) It has been a remarkable year so far, and I'd like to thank some final people before I retreat to the office for some actual "work-work". As much as I'd like to say i'm THE MAN here, i cannot take full credit. (cue the tears)

First, I'd like to give a BIG thanks to Mrs. Budgetsaresexy. Your frugalness is far sexier than you will ever know, and I heart you like woah!
Secondly, I'd like to thank all of YOU guys here in Blogtopia. Without you, I'd be a goner :)
And lastly, I'd like to thank the Academy...i don't know why.

Labels: goals

Welcome to J's "Million Dollar Club"! If you've ever dreamed about becoming a millionaire - and you actually want to DO SOMETHING about it - you're in the right place!

Can you imagine how killer it would be logging into your accounts one day and seeing a cool million there? I've been all about it the past couple years and there's really nothing stopping me now. I've got the desire, the patience, and more importantly the game plan! (what this post is all about).

And I'd love for you to join! Check out my "millionaire to-do list" below and then create one for yourself. It doesn't have to be much, just make sure it's realistic so you'll actually go through with it. Then review it every once in a while to remind yourself WHY you're saving so much more than all all those crazies around you ;) After that, just keep Motivated! "The Automatic Millionaire" and "The Millionaire Next Door" are excellent books for this. All the plan really entails is time and habits. You master those and it's easy breezy my friends! (besides, of course, finding the money to invest). But regardless, you have to start NOW.

In order for me, J. Money, to become a millionaire, I pledge to do the following:

Max out my 401(k) every year. Max out my Roth IRA. Save/invest 1/2 of all future bonuses. Sell unwanted stuff on eBay/Craigslist. To be frugal, but not insanely frugal ;)

$16,500 invested + $16,500 matched! $5,000 invested --> stocks, funds $2,500 *currently frozen... $500 est. $1,000 est.

That would mean a total of $39,500/yr if I could pull that off! Using CNN-Money's millionaire calculator with a conservative interest of 6%, and stripping away taxed vs. non-taxed money along with inflation, I will see a cool $1 Million in approx. 13 years and 9 months!

This means I will become a millionaire by the time I'm 43!

That $1 million might not actually be *worth* $1 million by then (and I can't predict future returns), but to be honest that's not what it's about for me. All I want is the ABILITY to retire happily with no concerns about money at all. And I'm pretty damn sure being a millionaire would cover that ;)

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So what do ya say - ready to join the club? Get your own pledge jotted down, and then link back or leave a comment and I'll add ya to the list! Here are the current soon-to-be millionaires:

1. James @ DINK's Finance
2. Ginger @ Ginger Won't Snap
3. Erica @ Erica's Funny Farm
4. Brian @ My Next Buck --> Brian's Millionaire List
   
5. Brad @ Enemy of Debt --> Brad's Millionaire List
6. Paul @ Fiscal Geek
7. Shawanda @ You Have More Than You Think --> Shawanda's Millionaire List
8. Financial Samurai --> Financial Samurai's Millionaire List
9. Brandi @ A Life Change: My Journey To Happiness --> Brandi's Millionaire List
10. Yellow Piggy Bank
    
11. Michelle @ Penny and Nickel to Wealth --> Michelle's Millionaire List
12. O1SP03 @ Five Girls Ditching Debt
13. Megan @ Student Charade --> Megan's Millionaire List
14. LuLu @ How I Save Money --> LuLu's Millionaire List
15. Lisa @ Cents To Save --> Lisa's Millionaire List
16. Jayde Moss @ Making Me a Millionaire --> Jayde's Millionaire List
17. Broke M.B.A. @ The Broke M.B.A --> Broke's Millionaire List
    
18. Ryan @ Planting Dollars --> Ryan's Millionaire List
19. Roger @ The Amateur Financier --> Roger's Millionaire List
20. The Financial Blogger --> Financial Blogger's Millionaire List
21. Money Wise 24 --> Aleks' Millionaire List
22. BudgetBabe @ Lean with Green --> BudgetBabe's Millionaire List
23. Sabrina @ Freedom 45 --> Sabrina's Millionaire List
24. Clayton @ Just Good Financial Advice
25. YoungAndThrifty --> Young And Thrifty's Millionaire List
26. Jeff Kosola @ Deliver Away Debt --> Jeff's Millionaire List
27. Money Handler @ Money Handler's Millionaire List
28. Broke by Choice @ If I Were a Wealthy Girl--> Broke by Choice's Millionaire List
29. Money Reasons --> Money Reasons' Millionaire List
30. Jane @ See Jane Get Rich --> Jane's Millionaire List
31. Barbara Bryn Klare @ Upside of Money
32. Meghan Fife @ Thoughts on the Real Life --> Meghan's Millionaire List
33. Ciawy @ Run, Work and Save
34. Benjie @ Zordane --> Benjie's Millionaire List
    

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Copy: <a href="http://www.budgetsaresexy.com/2008/04/my-millionaire-to-do-list.html"><img src="http://www.budgetsaresexy.com/images/million_dollar_club_seal_S.gif" alt="Million Dollar Club" border="0" /></a>

Copy: <a href="http://www.budgetsaresexy.com/2008/04/my-millionaire-to-do-list.html"><img src="http://www.budgetsaresexy.com/images/million_dollar_club_80x15.gif" alt="Million Dollar Club" border="0" /></a>

Labels: goals, million dollar club, millionaire love, retirement

I have to say it feels really good getting all this stuff out there. I've always known I had money saved in different places here and there, but up to 3 months ago I had never put it all together and focused on any type of real "net worth".

I suggest conjuring one up yourself if you haven't already, it's quite empowering!

So, now that i'm done patting myself on the back (you have to right?), here it is - my official net worth as of the end of January. I'm sure my format and calculations will change over time, but as it stands today this a great measurement of my overall financial picture. Daddy's proud, daddy's proud.

Now that I have it organized, I am ready to begin this year's net worth goal - to reach $100,000 by the end of December! I can't believe i'm actually setting something so high (cuz my GOODNESS that's a lot of money), but you know what? Sometimes you gotta just do it like Nike. I mean I'm young, nubile, and by golly it's time to make something of myself! haha... W-O-W, talk about some motivation.

Moving along, here's what we got:

Cash Savings: I'm hoping to add an additional $1,530.97 to reach my goal $5,250. Once this is accomplished, I will leave it alone 100% as it will act as my Emergency Fund.

Roth IRA: As of today, I am not planning on adding any more funds to this *unless* I end up with extra money after my cash savings goal. In this case, I would def. add it into my Roth.

401k: My favorite category of all time :) What's not to love about company matches, direct deposits, and tax benefits? If all goes as planned, this will be my 3rd year of maxing out my 401k! I have been more than blessed w/ generous company matches, so it would be absolutely asinine not to participate. I expect this category to go up at least $2,375 each month, markets willing.

If there was just one piece of financial advise I would give anyone, it would be to put in AT LEAST (very important) the same % as your company matches. This means from the start you are D-O-U-B-L-I-N-G your return from day 1. Now, i'm not a financial pro or CPA by any means, but with the good graces of the stock market, this $ should increase fruitfully until the day comes for retirement. Of course if you could add in more each paycheck, more power to you.

Condo Investment: I am helping my brother out with a personal loan, which will help him with his new condo purchase. I give him $123 a month, and the interest is locked at 5%. Either of us can bail out at any time if needed, and it's written in a simple contract just in case (this was forced by my dad, and I'm thinking rightfully so). Initially I thought of loaning the money interest-free (since it IS a family member), but I wanted him to think of it as a real loan and that it will need to be payed back at a later date. Unfort. i'm not in the position to say, "ahh, just forget about it bro". Well, not yet anyways :) I expect this category to go up $1,353 by year's end, and put this into the Assets category as I count it as an investment.

Home Equity: This is the difference between the price we PAID for our house, and the MORTGAGES left on them. Actually, it's 1/2 of the total equity as I'm only including my portion, not my fiancée's yet until we're married. I'm also heavily thinking of taking this out as housing prices are fluctuating like crazy these days. Plus since houses actually sell for what someone's willing to pay for it, who knows what the sales price will be by that point.

Auto Worth (kbb): This is the value the Kelly Blue Book puts on my car at the time I pull it. Normally I wouldn't put this here, but i need to help balance my car loan w/ something right? This category will def. go down each month...

Credit Cards: For net worth accounting, this includes my personal credit card + 1/2 of all outstanding store credit cards. All cards are either paid off in full each month, or at 0% financing. I am hoping we don't add a lot more because of our upcoming wedding! The current plan is to have all cards wiped out to $0.00 by year's end.

Auto Loan: My auto loan :) My plan is to sell my current car, however, and pick up an oldie but goody. This should def. help out the numbers.

So there we have it - my 2008 Net Worth goal. It suuuure looks sweet, now let's see if I can make it a reality!

Labels: goals, net worth

UPDATE: As of 6/23/08 - NO MORE DEBT!
*For details on how i pulled it off, check out my Zero Credit Card Debt post :)
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I've had zero store credit cards for years, but lately we've been picking up a few. I guess it can't be that bad as they're all at 0% APR right? Another thing to keep in mind is that Mrs. Budgetsaresexy will pay for her half of all this ;)

Here's what we got:

1) Helzberg Diamonds - $1049.96: Picked up 2 Wedding rings. The sucky part is that i literally JUST paid of my fiancee's engagement ring (whew). Ah well, that's life eh? The prices were great though, and the credit deal even better - 0% APR for 1 year. The goal here is to pay off just enough each month so that at the end of the road we get the balance knocked off.

2) Juniper - $1530.16: Our brand new iMac! It's so H-O-T. Got the upgraded memory, and nice sized screen, + a free printer. We didn't *need* this per se, but it def. helps having a home computer now that's brand new and fresh. I'm a graphic designer and my girl's a song writer/singer, so this should def. help motivate both of us. This will also be our last major purchase now that we have our finances in order, as well as a house for that matter. yikes.

3) Express - $93.33: This one is temporary as they were having a helluva deal man. First off, everything i bought was 60% off original prices. THEN, on top of that, there was an extra 10% off for some reason, and then ANOTHER (can you believe it?) 20% if you signed up for a card. Soooo, here we are ... 3 T-shirts, 2 hoodie sweatshirts, a pair of jeans, and a pair of socks later :) *This will be paid off by the end of the month, and then closed out 100%. no tempty tempty for me.

4) NEW! "House Credit Card" - $4180.10: This is at 5%, not the worst, but still not at 0%. There was no way around this bad boy though, our wedding budget got a bit crazy and the cash flow couldn't be timed right - thus, forcing us to throw some huge chunks of it on here. This will be the 1st to be paid off after our wedding

TOTAL: $2,673.45 $6853.65 $0.00

My goal is to have this paid off by end of 2008. I'd normally pay off first, but since it's at 0% and Operation Heloc has since been stomped out, I gotta breathe life back into my Emergency Savings stat.

Labels: credit cards, goals

It's Lent season which means .... it's time to give something up! It actually started last Wednesday, but I didn't have my blog up then so let's must pretend we're back in time a bit shall we? And for those who aren't familiar with Lent, it's basically the 40 day time period before Easter where it's customary to "fast" or what i used to call "give up something small that's not hard to do but you'll technically be in the right!" haha ... that was the old me though. These days I like to play by the rules, both for the church AND for the personal challenge :) And I gotta say, it's definitely rewarding.

LAST YEAR I gave up all Sodas! can you believe that?? AND not only did I last the entire 40 days, i went another 3 or so months after w/out fail. After a while it was really easy and I actually didn't mind at all as my body felt great. I was about to extend the goal to a year, but realized I needed to stop making these random challenges just for the hell of it*, and have since limited myself to drinking it on the weekends only.

THIS YEAR I wanted to do something more financially friendly and decided to put myself to the ultimate challenge: NO BUYING RANDOM CRAP. Also known as "discretionary income". This is *huge* for me as I am the king of all kings on thrift store shopping, Craigslist purchasing, and eBay bidding! Not to mention the weekly shopping trips to Express, Rugged Wearhouse, and Ta Ta Ta TJ MAX. I'm one of those people who shop when their sad/happy/energized/or just plain b-o-r-e-d. And no i'm not a girl (but i do love girls! errr ... my fiancée. I love you honey!) I'm also one of those people marketers love as i am attracted to all things blingy and packaged nice.

I guess I should also clarify those things i'm allowed to spend on, especially so I won't try and wiggle my way out of it in the future.

Things allowed: Mortgages, Utilities, Bills, Food, and anything that improves my wealth or brain (such as mutual funds, finance books, magazines, etc).

Things NOT allowed: Gadgets, Lottery Tickets, Artwork, Decorations (why am i capitalizing all these?), furniture, track jackets as i have wayyyyy too many, t-shirts, and anything on Woot.com, sellout.woot.com, or shirt.woot.com which will be extremely hard!

Okay, that about wraps it up. So far i haven't spent a penny on any of these and my spirits are still high. I think this is exactly what i needed to re-organize my finances and get my budget back on track and alive. Funny enough, i also have wayyyyyy more time on my hands.

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*Once on a flight to Greece a few years back I watched "Supersize Me" and decided to see how long i can go w/out eating McDonalds, my FAV. place at the time...to this day i STILL haven't touched a thing from there! Sure I've been to Wendys a few hundred times, but i still feed like The Man :) As of today it's been 1193 days and my record continues to grow...but who's counting?

Labels: goals, religion, shopping