This is a guest post by Rob Bennett

It's a question you always hear after a stock crash. It's usually asked in apologetic tones, as if it were a dumb question. It's not. It's a question that most of the big-name experts don't fully grasp the answer to. Understand this one and you go to the head of class in Investing School.

When stock prices crash, where does the money go? It goes "Poof!"

That's the truth. People think of stock investing as a serious business played by serious people. So they assume that there must be a complicated answer to this question. There must be some mysterious process by which the trillions of dollars of wealth that are lost in a stock crash disappear.

Nope. We can bid stock prices up to any level we want. We can all vote ourselves raises if we like. The only penalty is that, when we bid them up too high, they must crash back down in the following years. What is made from nothing must eventually return to nothing. It always happens that way. It always will happen that way. Now you know.

The strategy takeaway? Don't invest too heavily in stocks when prices are high. Someone has to pay the bill for those times when we bid prices up too high. It doesn't have to be you.

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Rob Bennett is author of the A Rich Life blog and recently wrote a Google Knol entitled "Why Buy-and-Hold Investing Can Never Work." (J: I don't necessarily agree or disagree with "buy and hold," (although I usually hold way more than sell) but I do find this topic interesting.)

Labels: crazy economy, guest post, investing, stock market

This is a guest article by Flexo from Consumerism Commentary. Flexo is currently on a ten-day, ten-venue tour.

Please do not be cynical. I hate cynicism. For the record, it's my least favorite quality. It doesn't lead anywhere. Nobody in life gets exactly what they thought they were going to get, but if you work really hard, and you're kind, amazing things will happen. I'm telling you, amazing things will happen.

Though I'm not generally a fan of "late night TV," I tuned in the other night and found myself watching Conan O'Brien's last stint on the Tonight Show. As he signed off, and before he picked up a guitar to perform Freebird with Will Ferrell and Max Weinberg, those were the heartfelt words he spoke as advice to the millions of people in his audience. It was a classy exit if there ever was one.

Perhaps his comments refer to Conan's publicized attempt to negotiate better severance benefits for his staff. NBC subsequently claimed, cynically, that Conan's "niceness" was more of a public relations stunt than genuine concern for the crew and talent, although Conan is supplementing his staff's severance with over one million dollars from his own severance deal.

Say what you want about Conan O'Brien's comedy act, whose biggest bits are a cigar-smoking dog-puppet and a masturbating bear, but his career momentum led him to helm the Tonight Show, the holy grail of television entertainment, with 700,000 fans of the "I'm With COCO" movement on Facebook. So it's worthwhile to listen to his advice.

Work really hard

There's no way of getting around this. Success at anything requires significant effort regardless of the goal. If you want to get out of debt, it's not going to happen if you keep your same spending habits and don't come up with ways to earn more money. If you want to own a prominent business, you're not going to get there with only two hours a few days a week. To achieve greatness in any field, you must have the dedication to make it happen by directing your energy and effort towards greatness relentlessly.

"Nobody in life gets exactly what they thought they were going to get." Unfortunately, no one person can control everything about their own lives, so sometimes we have to deal with unexpected problems, like being fired from the biggest late night television program. But also, as someone works hard on the path to success, it's possible to discover something new, something that redirects us onto a new path. That change should be embraced, not feared.

Be kind

Books and seminars focusing on success often forget the power of using kindness to recruit people as fans and supporters to your cause. It's true that nobody cares about your success as much as you do, so you must start from the position that no one is going to help you achieve your dreams. There are two paths you can take once you start. The first option is to focus solely on yourself, be ruthless on your path to the top, and take every advantage given to you even if it is in the expense of others. After all, who knows when you might get another opportunity.

The second path is to be an advocate for other people, use your rising prominence or expertise to support their dreams, and spend some effort on external issues. Karma is real, whether it's some kind of universal force or just an observation of human behavior. Being kind and supportive increases the possibility that the world will be kind to you and supportive of you. And although no one else will help you succeed and the hard work won't go away, you'll find it's easier when the community's on your side.

Don't be cynical

Conan O'Brien has been forced out of his position as the King of Late Night Television Comedy, no longer sitting on the throne of the Tonight Show. Where does someone go once they've reached the pinnacle of their career? They can't go back to mediocrity -- the choices are generally retirement or death.

Is this where hard work and kindness will lead, being pushed out of the best job in entertainment in favor of a comedian whose most popular skit mocks the stupidity of random people on the street? As far as setbacks go, this is major. But in the face of any negative force, focus on what can be done to make the situation positive. This is not about media spin or convincing others what you want them to believe, it is an actual mindset.

Take Conan's advice now. Work really hard, be kind, and don't be cynical. Even if you don't have an ultimate goal of being the best in the world, this is a sound philosophy for making the most of your time on this planet, being a positive force in the world around you, and cultivating success for yourself.

Watch Conan's exit from the Tonight Show

For those who missed it, here is Conan O'Brien's final thoughts about NBC, his audience, and what it takes to succeed.

Labels: advice, career, guest post, life

This is a guest post by Daniel Packer

"I walked home to save bus fare."
"Gee, you could have saved a lot more by not taking a taxi." - old joke


We make a huge deal about the amount we save on ordinary items. "I bought this $4,000 TV for only $2,800. I saved $1,200!" I hate hearing that. Big deal. In that case I saved $1,000 by not spending $1,000 on lottery tickets.

This line of thinking leads us to think that what's really important is how much we spend, not how much we save. Who cares if you saved $5 a month by getting "free" HBO if it meant upgrading to the premium service which included a sports package you didn't really need but also came with a $15 price tag?

If you're spending money, you're spending money. Not spending even more isn't a big accomplishment. I am not going to pat you on the back.

The only time I can think of when I actually saved money is when I negotiate. When I haggled down the price of my haircut, I was ready to pay $20, but getting it for $15 was just a bonus. After years of my family being on the $160 phone plan, I negotiated it down to under $100. I wasn't overpaying, I was simply paying what everyone else was paying. But by doing some research and negotiating with the customer service representative, I was able to cut costs while still getting the same service. In these types of situations, we actually save money that we would have otherwise spent.

People need to find a better way of calculating how much they are saving. Instead of adding up everything they could have spent minus what they actually spent, we need to focus on what we're really saving: The percentage of take-home salary that we put in various accounts. In this case, all that matters is what we save, not how much we spend. Who cares if we had $300 in restaurant expenses for the month if we have a fully funded emergency fund and contributed the maximum to our retirement accounts? And that's what really counts.

After all of your expenses (housing, utilities, food, shopping, etc.), are you saving the 10-15% of your paycheck you planned?

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This is a guest post from Daniel Packer over at Sweating The Big Stuff. Daniel writes about negotiating, budgeting, and saving, while maintaining a high quality of life. To read more, subscribe to his feed or follow him on twitter.

Labels: guest post, saving, shopping

Guest post by Red.

What is the first thing that comes to your mind when you think of credit card debt? Maybe it's maniacal company executives laughing as they toss the money earned on your interest up in the air. Or the stress involved in mapping out your payments toward debt freedom.

If you've been down in the trenches - deep in credit card debt, missing payments and accumulating multiple overdraft fees - maybe your first thought is of phone call after harassing phone call from collection agencies trying to get their money back.

In 2007, I was $3,500 in credit card debt, working full-time while going to school full-time and struggling to pay my bills. I couldn't even make minimum payments on the six credit cards I had opened and maxed out to pay for my lifestyle. (Even though I was living like a student where cable and digs were concerned, I had a nasty shopping habit - clothes and new furniture were my weaknesses.)

It didn't take long for companies to begin calling me, night and day, every hour on the hour. I answered before I caught on to the numbers. I began ignoring all phone calls from numbers I didn't recognize, fearing they were from a nasty representative who wouldn't be happy that I had borrowed money I couldn't repay. I had just started dating my boyfriend. The collection agencies would start calling at 7 a.m., while we were still in bed. What could I tell him? That I had mishandled money? What would he think of me? Instead, I lied and told him I didn't know who it was. But I knew.

I easily received 15 phone calls a day. Sometimes they would leave a voicemail, but I deleted it without listening. I was terrified, and I knew what they would say. They wanted their money, and they wanted it now!

I've heard people claim credit card companies can't do anything but call you and after a while they'll stop. (Those people obviously don't know the destruction a poor credit card record can do to your credit report.) But the hourly reminder that I owed thousands of dollars at high interest rates was much more psychological torture than I could handle. The few times I'd accidentally answer the phone I'd cringe and hang up as soon as the person on the line asked, "Is [Red] available?"

Some good did come from the incessant calls. (Just don't tell the collection agencies that!) I knew I couldn't live in fear of my cell phone ringing, and I made a plan to rid myself of the debt. Here's the advice I have for anyone who is being harassed by credit card companies:

1. Know your rights!

The Fair Debt Collection Practices Act, part of the Consumer Credit Protection Act, maps out practices that are prohibited by law. These include calling outside the hours of 8 a.m. to 9 p.m., failure to cease communication upon request, abusive or profane language and communicating with consumers at their place of employment when advised that it is prohibited by the employer. If a collection agency is not abiding by the law, let them know that you know your rights and will contact the Federal Trade Commission or your state attorney general if the abuse continues.

2. Try to prevent the harassment before it starts.

Unfortunately, I don't share J. Money's optimism all that often. ;-) Credit card companies know that their interest rates are outstanding and that many consumers will treat their cards as free money. You're not the first person to go over your card's limit or be unable to pay your bill. If you're drowning in credit card debt, try to take the lead and call the companies before they call you! If you can call the company before they refer the debt to a collection agency, you may be able to work out a better payment plan. But if it's too late for that...

3. Send a cease letter.

The easiest way to stop collection harassment is to write the collection agency a cease letter. Federal law requires collection agencies to stop their collection efforts after they receive a written request to stop. Keep a record of any letters and phone calls received after sending the cease letter.

4. Create a repayment plan.

Consider your current financial predicament and work out a repayment plan. Be as honest with yourself as possible. You'll need a realistic budget to get out of this debt, and seeing the light at the end of the tunnel is better than blindly making minimum payments with no consideration to what your interest and credit card is really costing you.

5. Don't avoid the calls.

I know from personal experience that it is tempting to plug your ears with your fingers and sing la-la-la-la when you see that all-too-familiar phone number pop up on your caller ID. But, really, it only adds to your stress and encourages them to continue calling. Instead, answer the phone!

6. Contact the creditor and negotiate.

Though I still envision executives throwing my hard-earned money up in the air, dancing around their desks and laughing greedily, the representatives are human. Most of them understand that emergencies happen, and sometimes things are beyond our control. By this point, you should have a kicka$$ budget in your hands and know exactly how much you can pay toward your balance each month. Avoid offering too much. You don't want to make a deal that you know you can't keep. If you do, you'll end up right where you started. Instead, tell them honestly how much you can monthly pay for the foreseeable future. Ask for an interest rate reduction. (This rule is important whether you're in over your head or not. Most companies will reduce your interest rate if they know it increases the odds of getting some of their money back. And no one wants to lose business to a company offering a lower interest rate.)

It took me a long time to make it through this list of six dos and don'ts. But when I did make the phone calls and accepted that I needed to do something to get out of debt, I felt such a giant weight lift from my shoulders. I had a plan. I was in control of my finances instead of those collection agencies. And that made all the difference.

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This is a guest post from Red, a newbie personal finance blogger over at Girl with the Red Balloon. Her blog began as an attempt to stay money-conscious in a relationship and now includes tips and personal anecdotes on saving, budgeting, repaying debt and de-cluttering your home (and making money in the process, of course).

Labels: credit cards, debt, guest post, one of my lists

This is a guest post from Michael @ the Dough Roller

When most people think of investing, they think of stocks, bonds and mutual funds. However some everyday expenditures are actually investments in your future. The car you drive, house you buy and even clothes you wear are all calculated decisions made to further increase your wealth and overall happiness in life.

If you're single, dating can fall right into the investment category. Now of course, true love can happen at anytime, anyplace between anybody. Truth be told, you have a better chance of finding true love if you are well dressed and out and about, rather than wearing your 1996 sweatpants watching the Fresh Prince marathon on Nick at Nite. For the purposes of this article, I'm speaking specifically on behalf of the men out there, and I'm assuming you're suave enough to find a girl that enjoys your company. The question is, how much are you willing to invest over the course of one year to keep her?

First, let's discuss the necessities. In one year, there's probably 5 dates that every man needs to keep on his calendar if in a relationship. Those dates are:

• Her Birthday
• Valentines Day
• Christmas (Or you're religions' relatable gift giving holiday)
• 6 Month Anniversary from your first date (Probably)
• 1 Year Anniversary from your first date

At the bare minimum, these days require cards, meals and gifts. Being an average spender, you would probably spend around $150.00 per occasion (some cheaper than others), which brings the yearly total to $750.00.

Next, lets talk about regular dates. For most relationships, weekends are reserved as "us" time which entails less fancy dinners, movies, shows ... and other entertainment. Assuming that you have 20 full dates a year (dinner and entertainment / $60 average) and 20 half dates a year (one or the other / $30 average) you're in for another $1,800.00.

Any woman will tell you that spontaneity is crucial in progressing a relationship, so special gifts like flowers and chocolates every once in a while would be a good idea. If you're a big spender, then you might be inclined to purchase more high-ticket items but sticking to the basics and going old school will probably run you $250.00.

Enough about her, what about you! In order to feel your best, you have to look your best, so you better be ready to go shopping. She won't want to be seen with some schlub, so you're wardrobe comes into question. New shirts, pants and even underwear can get expensive if you go designer but staying with the American Eagle and Wrangler, expect to pay another $500.00 so you're not sticking out like a sore thumb.

Finally, you better believe that she'll want to travel with you on some weekend adventures. Maybe it's camping, a trip to the big city or a Vegas getaway. Either way, once or twice a year, it's nice to get away from the standard dating scene and plan a vacation with your special someone. Sticking to your plan would probably cost an average of $500 a trip (Vegas high / Camping low), which would set you back a $1,000.00.

So, if you're old fashioned like me, and feel that paying for dates is the gentleman's responsibility, one year of dating could cost you a total of $4,300.00. That's a pretty penny to spend on pretty Penny and if you're not careful, you might have to repeat the cycle a couple of times before you get it right. The good news is that the longer you spend with someone, the cheaper it should become over time, until of course the day you go broke and buy the engagement ring!

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This guest post comes from Michael, a contributing editor of the Dough Roller, a personal finance and investing blog, and Credit Card Offers IQ, a credit card review site.

Labels: guest post, in the real world, love

This is a guest post from my talented as hell brother, T. Penny - the guy who reminded us debt is like kissing your sister...and liking it.

I feel cheap - dollar-store cheap. I've been used and abused for far too long, and it's completely my fault. Confession: I, like millions of other people, am a Starbucks addict; a lemming to all things confection and caffeinated ... and my wallet hates me for it.

Funny thing about treating yourself to a cup of highly priced Joe is that while it tastes sublime in all of its sugary glory, it can eat away at your checking account like diabetic termites. I know because I'm a repeat victim of modern marketing (Keg-sized peppermint mochas? It's not the holiday season without it!). I naively buy into the belief that Starbucks is committed to my wellbeing; that if they were given the chance, they'd tuck me into my racecar bed at night, read me the ol' Green Eggs and check for closet monsters. Nope. They just want my money, and I'm forking it over to them like old people at bakeries.

Truth is, up until recently I've been spending about $25 a week consuming what Starbucks is peddling (I'm drinking one as I write this). Buy, sip, swallow - follow the routine until you get the yummy in your tummy and all is right with the world. Eventually, I became a creature of habit, and those casual walks to the corner coffee shop evolved into the staggered walk of a fiend in need of a fix. What do I get for these visits? My teeth hate me, my gums have given up, and, like Tiger Woods, I waste my hard-earned coin on something cheap and disposable.

How did I kick this fix? I had to put on my reflection pants and swim in the lake of me. I needed to change my line of thinking, and to do that, I had to first get to the bottom of my spending. Every month, after all of my bills have been paid, investments made and my check to the Scott Baio Fan Club has been cashed, I'm left with about $700 to my name. Considering I'm 28 years old, single, I have a two-year-old car, I own a condo, I have six large in an emergency fund and zippy in credit card debit, that's not half bad. What's not good, however, is that every month $75-100 of that left-over money goes to Captain Capitalism in the form of Starbucks and other caffeinated drinks. You know how much "Charles in Charge" swag I could get for that amount of bank?

Worst of all, like any addict worth his salt, I knew I was going to Starbucks far too often, but the feeling of "treating myself" was alluring. I couldn't stop. It is coffee, after all. For centuries, indigenous peoples warred, maimed and pillaged over this dark brown beauty ... what kind of son of history would I be if I ignored all of that? No, I simply had to commit to my coffee cravings. I had to give myself the occasional treat. After all, what's one cup a day? Nothing blush-worthy ... until that one cup turns into 20 a month, which at $4.50 per serving comes to $90 every four weeks ... or-gasp!-$1,080 a year (the cost of a mildly retarded alpaca).

And therein lies the financial rub: I'm wasting $90 each month that I could be investing, all because I fell into the insufferable mindset that treating myself daily is important, that I deserve a little treat here and there, which brings me to my point. It is healthy to treat yourself to something that will make you happy (like that sequined "Member's Only" jacket you've been eyeing), and it's certainly an important part of living and enjoying life. However, there needs to be a good dose of moderation in the mix. Otherwise, falling under the "I deserve" mind trap can quickly deplete your bank account and leave you with nothing but regrets, and in my case, a caseload of cavities.

What I try and tell myself now is that just because I can afford something, it doesn't mean I should buy it. Instead of going to Starbucks every day, I started going every other day, and then less frequently after that, until I ended up going only two times a week at best. I also switched things up a bit and started going to Dunkin' Donuts, where their delicious, low-maintenance coffee runs only a hair above $2- that's a two-dollar savings right there! Finally, I decided to start brewing more of my coffee and taking it with me. Sure, it tastes like the rainwater that drips off of clay huts, but it's a start. And I'm saving money. And I'm getting healthier. What's not to like?

This entire coffee experience has taught me the importance of temperance when it comes to enjoying life's goodies, as well as the need to step in and "check yo' self!" on occasion. Doing so can directly affect the way you live your life and how you handle your money. When it comes down to it, making the decision to address my "addiction" is one smart step that's made my wallet-and my waistline-much happier.

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T. Penny is the "real" journalist in our family, and my dear younger brother - who I both admire, and hate, for being incredibly funnier than me ;) If you like his style, check out his other guest posts: Doing what you love pays dividends, and Debt is like kissing your sister...and liking it.

Labels: guest post, life, saving, starbucks

This post is part of the one day blog event - "The Spectrum of Personal Finance."

In this event, comic book nerd Brian of My Next Buck, will discuss 8 different emotions (taken from the Green Lantern comic series) and relate them to personal finance. Here at Budgets Are Sexy we will be looking at Hope. To view the rest of the event look at the bottom of the page to see the other blogs hosting articles.
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Hope is a great thing. It surrounds us. Without it, what would there to be look forward to in life? Hope to get that big promotion. Hope for your team to make it to the Super Bowl (sorry Skins fans... no amount of hope will help them). Hope that the guy or girl across from you on the metro notices you.

However, hope only gets you so far. Not to go into too much detail, but today's event is based on the Green Lantern comic book series. In the comics, there are Green Lanterns and Blue Lanterns (and a plethora of other colors). The Green Lanterns represent Will Power, the Blue represent Hope. Let's just say, without a Green Lantern nearby, the Blue Lanterns aren't $hit.

What does this mean to you? It means that you can hope all day long, but without taking some action, you are going to be stuck in neutral. As young people, we tend to hope a lot. I have been found guilty over the past year of the same kinds of expressions as cited below:

• We hope that we get THAT job offer.
• We hope that the economy recovers.
• We hope we have enough money for retirement.
• We hope that EVERYTHING works out.

In the words of the late great George Carlin: "F*ck Hope".

Folks, it's 2009, and it's time to take action for yourself and stop waiting for things outside of your control to unfold. Today is no worse than any other day to do one thing you constantly have said to yourself, "Yeah, I should do that." Carpe Diem. Seize the day. Make today the day when you get something accomplished that you have been putting off.

With the holiday coming up, there will be excuses aplenty. Think of some things that you have wanted and needed to get done. Take a look below at some examples. Each of the things written below will take no more than an hour if you work efficiently. And the fourth may open you up to all sorts of potential for tomorrow night - the busiest bar night of the year - (know what I'm saying?).

• Send a resume out to a prospective employer
• Open a high yield savings account
• Start tracking your finances on Mint.com
• Go up to the guy or girl that always smiles at you and ask him or her out
• Set up your Roth IRA

I know J. hoped to max out his 401(K) this year, and he MADE it happen for himself. I wanted to get out of debt and max out my Roth this year, and I MADE it happen! What is it that you recently hoped for that came to fruition solely because of your efforts to MAKE IT HAPPEN?

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For further reading of the Spectrum of Personal Finance Event, please see:

• Fear at Bargaineering
  
• Avarice at Consumerism Commentary
• Willpower at Debt Free Adventure
• Death at Free Money Finance
• Compassion at Get Rich Slowly
• Love at Mrs. Micah
• Rage at Poorer Than You

To view a recap of the event, check out the Spectrum Roundup at My Next Buck
*Image created by Philip Tan. Green Lantern is property of DC Comics

Labels: guest post, life

[Guest post by Mr. Moneybags]

Don't get me wrong, budgets are definitely attractive on their own merit, but if you were to line them up side-by-side next to stocks, it would be like comparing the attractiveness of Al Pacino to the attractiveness of Megan Fox. I mean, sure, Al Pacino is a rather cool and attractive old man but not many guys would give up one of their testicles to spend a night with him (see: Megan Fox).

And just like someone would have a massive case of approach anxiety when given the chance to advance upon Megan Fox (or any other equally hot creature), it seems that people are equally terrified when it comes to approaching the stock market.

Ever since I accidentally created the stock market in 12th century France while searching for a way to smuggle pilgrims across the border, I have noticed that people are more afraid of the stock market than they are of being viciously attacked by a pack of wild boars. If I can be completely honest: It pains me to see my wonderful creation be loathed so vehemently - which is precisely why I have decided to temporarily abdicate my secret cave (more commonly referred to as www.BigFatMoneybags.com) and clear up the bad name that investing and the stock market has gotten over the last few years via new venues (regards to J. Money).

Throughout my vast experience with the stock market, I have noticed that people use the same few excuses over and over again as to why they don't invest their money in the stock market:

1. You don't know enough about the stock market nor do you have an idea of where to start

It's okay, it happens to the best of us. In fact, it even happened to our friendly neighborhood budgeter, J. Money. (J: true, but I am getting good at copying Warren Buffett!) Thankfully, this seemingly daunting problem is quite possibly the easiest out of all problems to solve.

I've noticed that the main reason people don't go out of their way to learn more about the stock market (and other money matters for that matter) is because rather than utilizing the current educational tools that are available to them, people would rather run into incoming traffic with a paper bag over their heads (true story). Thankfully, great heroes such as the mighty Mr. Moneybags (that would be me) and J. Money exist, providing a seemingly dead subject matter with a breath of fresh air (a.k.a. humor and entertainment) while subsequently ridding the world of imbecility (and poverty).

If you have little-to-no understanding of the concept of stocks or the stock market then I would highly recommend you read the free eBook I have available on my site called "Welcome to the Stock Market!" And unless as a result of my guest post on this site, a catastrophic sequence of events leads to the implosion of the internet (or if J. Money permits) I will gladly post more guest articles educating you people as to the workings of the stock market. For now, if you have any questions, leave a comment at the end of this post and I will happily answer any questions that you may have in great detail (while explaining to you why you are an imbecile).

2. Stocks are too risky

Before I go on explaining the absurdity of that previous statement, let me start this section off by citing a statistic initially stated by the great Jeremy Siegel:

"One dollar invested and reinvested in stocks since 1802 would have accumulated to over $12.7 million by the end of 2006."

Yes, you read that correctly. This is despite two hundred plus years of stock market declines, famine, wars, bigger wars, crisis, pandemics, epidemics, depressions, more epidemics, hippies, terrorism, political turmoil, global warming and even swine flu.

Of course, you people are going to say that two hundred years is a rather long holding period or that times have changed or whatever else but the truth of the matter is that the investor is what makes an investment risky, not the investment itself.

Risk comes from not knowing what you are doing. If you know what you are doing and if you research your investments diligently enough, your margin of risk is reduced faster than King Kong plummeting off of the Empire State building.

3. You have to be a professional to make money in the markets

Nothing is further from the truth. If you can literally walk into a store and say "Wow, this looks like a great business!" then you can make money in the stock market. That's not even an over-exaggeration of any kind.

In fact, I find that the "professionals" make less money in the markets than your typical outside-the-box thinking investor (which I will teach you to become). All you really need in order to safely invest in the stock market is a strong will and a smidge of clever thinking. That's it.

Closing Thoughts

I find that those are the top three reasons people avoid the stock market like the plague. If you feel that you are unique in your scenario, do not hesitate to leave a comment and I will try to help you out as best I can - and if I can't... prepare to be destroyed.

Now get out there and make some big fat moneybags!

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This is a Guest Post from Mr. Moneybags - the richest being in the universe ever to have existed and ever to exist. He and his blog are determined to prove to the world that the subject of money shouldn't make you want to douse yourself in gasoline and run into a forest fire. (He also advises you to do your homework before investing!)

Labels: guest post, investing, stock market

This is a guest post by Sox, and I think this it's BRILLIANT!

Some of you might not remember, but giving up 'shopping' for Lent myself 2 years ago REALLY put things into perspective. I learned that it is actually possible to not step into stores every other day ;) Plus, you really do save a ton of money. Hope you enjoy this:
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I came across your site today and thought I would share an idea that I've been doing for several years now. It started out as a 'Lent' type thing where I didn't spend money for 40 days. Now I just do NoSpend November. I take a month and 'fast' on spending. It's not easy, but it's quite helpful in many ways.

Each time I've done this I have actually made between 50 and 200 dollars. Combine that with the money I didn't spend, and the fact that I reformed my spending, it can have a big impact financially. Best of all, next month you'll have a lower credit card bill. Here are my rules:

Unless otherwise indicated you can't spend any expected income.

• Salary
• Wages
• Rent owed
• Established court settlements
• Alimony

NO spending of already existing money in your possession.

• Cash on hand
• Gift cards

NO stockpiling.

• You can't buy gas on the day before it starts unless you need it.
• No loading up on extra food. If you're low on milk that's ok, but you can't buy a dozen frozen dinners

If you have any bills, you can pay them.

• Credit card purchases from previous months
• Medical prescriptions
• Mortgage/rent
• Utilities
• Cell phone

If you have any thing owed to you, you can call it in.

• Owed lunches/dinners
• Money
• Take someone to court (hah!)
  
• Stuff that was borrowed

You can use money you get from selling things in your home.

• Selling on Craigslist/eBay
• Returning things to Home Depot/Lowes (easy to find for any home owner)
• Unused gift cards

You can spend money that is refunded to you in that month.

• Credit card cash back checks/ gift cards
• Medical reimbursement

Anything that you sell or get refunded must be spent after you get the money back.
So if you submit a reimbursement for medical expenses, or sell something online, you can't spend money in anticipation of getting it. If you submit it and you don't get anything sent to you that month... tough noogies. If you find out someone owes you money, you have to wait until they hand it to you.

Gambling is allowed with any eligible money (but I don't recommend that) .

You can consume anything that you already have.

• Food
• Toiletries
• Fuel (hard for those that are big commuters)

You can barter.

• Make dinner for someone with your own food, get someone to take you out for dinner
• Help someone out with a chore, get food or something else (not money) in return
• Sell anything you receive by doing chores for others
• Sell anything that was borrowed and then returned to you
• Sell anything for profit that you buy that month with eligible money

I think that's all... In the end you can potentially:

• Reduce excess crap in your pantry
• Eliminate items you shouldn't have bought
• Get evened out on things that people owe you
• Get in better shape from walking instead of driving
• Hang out with friends more
• Lose weight by eating more frugally (saving and eating leftovers)
• Eat healthier by cooking your own food
• Best of all, next month you'll have a lower credit card bill.
  

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Big thanks to Sox for sharing his thoughts! You can track his progress over at No Spend November.

Labels: awesomely awesome, guest post, money hacks, saving

Guest post by Robert Sommers

With current mortgage rates still hovering just above historical lows, a lot of homeowners are tempted to pay off their original home loan with a second mortgage.

A second mortgage is taken out in addition to the existing mortgage and gives a homeowner access to cash in exchange for the equity in their home. Regardless of type, a second mortgage essentially function's as a second lien on your home and thus carries a high potential risk for the underlying lender.

When looking at a second mortgage tool or any other type of home loan that converts home equity into cash, (fixed rate, lines of credit, reverse mortgage, etc) you definitely need to consider all of the potential risks, as well as the rewards to make sure it's the right one for you.

Home Equity Loan

Home Equity Loans by far are the most popular second mortgage loans among American homeowners. A HEL is secured against the value of the underlying property and allows the homeowner to borrow money against their home's equity. The amount borrowed is dependent upon three things 1. the appraised value of the property, 2. the existing balance of the mortgage, 3. the amount of equity currently held in the property. The loan itself works in a similar way to other conventional loans, in that once approved by the lender, the borrower receives the entire amount as a lump sum.

The interest rate on a HEL is typically fixed, amortized for up to fifteen years and can very often be two or more percentage points higher than the interest rate on a comparable fixed rate conventional mortgage. Depending on factors such as income, debt, credit history, outstanding mortgage balance, and the value of your home, a lender will lend up to 75% of the borrower appraised property value, minus the balance of the mortgage. For example, if your home has an appraisal value of $570,000 and you still owe $220,000 on the mortgage, you could potentially borrow up to $207,500, if eligible.

Should you happen to fall behind on your payments and foreclosure occurs, your home equity loan lender has a subordinate claim meaning that it is next in line to receive proceeds from the sale of your home after the primary lender is paid.

Home Equity Line of Credit

Home Equity Line of Credit or HELOC also allows a homeowner to borrow against the value of their home is a. The loan is essentially a form of revolving credit in which your home serves as collateral. There are two major differences between this type of loan and a standard HEL. First, a HELOC typically has a variable interest rate rather than a fixed one, meaning that the amount of your monthly interest changes just as it would for an adjustable rate mortgage. The second difference is that rather than receiving the entire amount as a lump sum at the start of the loan, the borrower is given a predetermined line of revolving credit that has a draw period of 5-25 years during which funds can be drawn whenever needed.

There is a maximum limit that can be taken out and a minimum payment that is due each month, with the borrower given the option to pay off as much of the line as he and/or she wants- much in the same way as you would with a credit card or other revolving line of credit. A big advantage that comes with a HELOC is that the borrower pays interest only on the money that they draw, rather than the entire sum as they would with a Home Equity Loan.

Which Option should you choose?

Each of these options has advantages and disadvantages depending on your particular case. In a situation where you know exactly how much you need and a worthwhile plan for the funds (home repairs, school costs, and medical bills), a standard home equity loan would probably be your best option. Here you have the advantage of a fixed interest rate and the security of a finite monthly payment that remains unchanged for the life of the loan. This allows you to plan your finances more accurately in the long term.

If your extra expenses are recurring or variable, a home equity line of credit may be a better option than a HEL. Even though you pay a variable interest rate, you do so only on the money that you draw from the pool of available funds. However, keep in mind that the risk involved is very much similar to that of a credit card - in most cases you will actually receive a card that you can use to withdraw funds from the loan account. This can make it very tempting to spend more than you plan to or need to, and the variable interest rate may potentially cause problems if you end up spending more than you intended early in the life of the loan. Also, watch out for other risks associated with the HELOC's like hidden fees, pre-payments penalties, variable rates, abrupt freezes (J: Happened to me!!!) and closures.

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Robert Sommers is a freelance mortgage and real estate writer located in Baltimore. He has worked for over 25 years as a licensed real estate agent in all areas of commercial and residential real estate.

Labels: guest post, helocs, mortgages

This is a guest post from Hank.

I recently earned $40 the easy way. I was just sitting in my doctor's office minding my own business when a nurse from the office next door stopped by to ask for volunteers. It seems that they were doing a medical study on the adverse effects of vaccines. I was given the money for about thirty minutes of my time, a brief medical questionnaire, and five small vials of blood. Not bad for a half hours worth of "work".

This wasn't the first time that I had been exposed to earning money for the benefit of science. I grew up in a medium size southern town that had a fairly large teaching hospital. Not only were there lots of medical students running around the hospital's hallways, but there were also a lot of medical experiments being conducted too.

I remember hearing about one experiment that the medical college was conducting while I was a senior in high school. For $5,000, the research doctors at the school would cut off one of your big toes, sew it back on, and then measure how the loss of the toe affected your balance. All my friends and I thought that it would be so cool to have all of that money. It was a lot for a kid in high school, but none of us ever were ever gutsy enough to try for it.

Earning Money From Science:

So, of course, this recent medical study got me thinking. Can someone earn enough money from science to pay your rent? I think you can. Here are a few examples of how you can make money by giving back to help science.

• Sell Plasma. Most people don't know about selling plasma. Blood plasma is prepared by spinning a tube of fresh blood in a centrifuge until the blood cells fall to the bottom of the test tube. It is just like giving blood. While you can make approximately $240 a month if you donate twice a week, it is nothing that you can get rich off of. There are also a few negative connotations associated with selling plasma, although I personally know of several respectable people from the "good side of the tracks" who sell plasma to supplement their income. Let's face it, teachers do not get paid enough (but, that's a subject for another time.)
• Sell Eggs. Many women can make around $5,000 by selling their eggs to companies who resell them to women who cannot give birth. The only problem with this plan is that it takes a lot of time and patience, and there is a small surgical procedure that the woman has to go through in the end to retrieve the eggs. I knew of one lady who was trying to earn money this way, and it took months of paperwork and several doctors visits before they would even consider giving her a dime. This isn't the option to pursue if you need money in a hurry (or if you're a guy!), but it may be well worth your effort if you are patient.
• Sell Sperm. Every year, approximately 75,000 American children are born thanks to a sperm donor. To qualify as a sperm donor, many sperm banks require that you be between the ages of 18 and 38, have a clean medical history, have high quality semen samples, and be able to pass a rigorous psychological and genetic screening. You must also be able to provide a medical history of you and your relatives going back several generations. The payoff can be handsome though at about $100 per visit and several visits needed each month.
• Medical Experiments. Like I mentioned above, you can get paid up to $300 per day or more to participate in clinical or medical trials that test new or improved ways to treat an illness or condition. Or, you can participate in research studying a particular phenomenon or a new search for a disease's cure. In my case, I was paid to be in the control group of the study because I had never had a reaction to any vaccines. The possibilities of finding the study that is right for you should not be too hard since the possibilities are almost endless. You can get paid to participate in studies for things such as sleep deprivation, time isolation, alcohol, caffeine, nicotine studies, exercise, diet and nutrition studies, psychology studies, the list goes on & on.
• Others. There are several other ways to make money in the medical arena that could be explored as well. You can consider becoming a surrogate mother which can pay tens of thousands of dollars. Or, you can sell your hair for few dollars per inch. There are many ways you can get paid for helping science. The hard part may just be finding them.

While these medical procedures listed above are not all inclusive, they can give you an idea of the possibilities that are out there. No one medical experiment, testing, or donating can solve all of your financial needs, but you can earn a decent supplemental income from some of these programs. Maybe you do not want to deliver pizzas in order to help you get out of debt faster. Maybe donating plasma is a better answer for you personally.

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Oh man, this guy cracks me up :) If you like what you saw, check out Hank's blog Own The Dollar where he writes about personal finance and investing. Or even better, sign up to his feed.

Labels: guest post, money hacks

You are young, carefree, and have at last been let loose into the big bad world.

Having left your tearful mom behind, a whole host of fresher parties, pub crawls and perhaps an odd lecture here and there has begun! All is going swimmingly in fact, until you pay for that late night kebab on your card and it is declined. "How on earth did I manage to blow my loan in the first week?" you ask yourself as you nurse your tequila fueled hangover...

Now, of course, this is probably a slightly extreme scenario for some. But for many an entry into the adult world is also a time to start facing up to those dreary words you once used to drown out at the dinner table, such as debt advice and personal savings. However, if you act early then there are simple ways that you can control your funds, enabling you to leave college without having to pay back the equivalent of a small country's national debt:

1. Everyone knows that part and parcel of college is the student loan. But this is a loan that you will spend a lifetime paying off. In fact, it has been estimated that it takes the average post graduate 10 years to pay back. If you have savings, it may be a good idea to use that rather than having to pay off all that interest. (J: or perhaps part of it?)
   
2. One of the biggest rules of debt management is to never borrow outside your means. Although student loans are far cheaper than other loans, you will still be paying off an interest rate for many years to come. Look realistically at the amount you need, a decision you will be grateful for in the future.
3. Choose the right bank account. Several banks like to offer enticing freebies to draw you in but the most important thing to look for is the largest overdraft at 0%. This is far more attractive in the long run than taking up an account based on a free kettle and toaster! Use this overdraft wisely as the moment you graduate you will be stung on interest rates.
4. Get a job! Working a couple of evenings or shifts a week will go a long way into relieving the debt that you are accumulating. An average wage for a bartender is $10 per hour. (J: Or how about being a Starbucks Barista? ;) ) With just 12 hours a week this is an extra $480 a month towards buying those Biology books.
5. If times are hard, remember there is support out there. Charities such as Charities For Debt and Citizens Advice are at hand to give advice. Most universities will have a dedicated person within the student union as well that you can turn to for help - especially when it comes to managing your debt!

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MoneySolve are experts in debt management, bankruptcy and IVA's. For many years, MoneySolve has helped people in the UK with their personal debts and getting their finances back on track.

Labels: debt, guest post

This is a guest post from Kim Fusaro. It's geared toward women, but the principles still apply to us men!

I'm probably best known for my bad spending habits - I chronicle them daily as Glamour magazine's wayward personal-finance blogger, Little Miss Fortune. But in my 100-plus posts, I've managed to pick up some pretty good habits. And those are the ones I'm going to share with you.

See, after years of buying expensive clothing I recently learned an important lesson: You can't buy style. When I realized this (and the fact that I couldn't handle the credit card bills that came from all that shopping!) a funny thing happened. I started spending less - and looking better. I still shop (quite a bit!), but I shop smart. Here are the top four rules I play by.

1. Quality trumps quantity for wardrobe staples.

Buying crappy shoes (or handbags or dresses) is so easy. They practically call to you - and they're so friggin' cheap! But six weeks later, the heel snaps off (or the handle breaks or the hem falls out) and the junk you bought with your hard-earned cash is clogging up a landfill. If you love wandering through brick-and-mortar stores (I find it soothing), leave your plastic at home.

When you see something you love, note the brand and style, then go home and find it cheaper on the 'Net. For example, I saw a fab pair of shoes for $120 in a department store. They're a brand I know and love (nice) and they're made from real leather (double-nice). Still, I don't have $120 to spare right now. I took a quick spin on Google's shopping page, where they turned up on Shoebuy.com for $87 with free shipping - getting warmer! A little more digging uncovered a 20-percent off coupon, which brought the grand total down to $70. That's maybe $20 more than two pairs of plastic pumps, but these'll last for years. (For the record, I still didn't buy them!)

2. Don't invest in trendy stuff.

Trends, by definition, don't last. Of course you'd love a motorcycle jacket and a statement necklace and a neon dress right now. But pull them out next fall, and you'll likely be asking yourself, "WTF?" To stave off an electric-pink case of buyer's remorse, pick your favorite trend then embrace it on a smaller scale. Instead of a pricey Day-Glo dress, for example, cinch a neutral-colored shift with a brighter-than-bright belt for a mere $30.

3. Accessorize already, damn it.

Speaking of belts, the fastest way to update any outfit is by adding some baubles and bling. Say, for example, you have four weddings this fall. Start your look with a simple cotton dress ($30); I think gray is more versatile (and less boring) than black. For wedding one, top it with a bright-violet shrug ($20). Wedding two, steal a tip from the September issue of Glamour: Buy a couple yards of wide satin ribbon (around $5 at a crafts store; I'd love an ultra-bright yellow with the gray dress) and cut the ends at an angle to prevent fraying. Wrap it around your waist two or three times, then tie it in a bow or a big knot. So pretty! Wedding three: I'd layer two of these four-strand beaded necklaces ($14). Wedding four: Let's top the dress with a flirty little black cardigan ($30). So there you have it, add your favorite black strappy sandals and you've got four wedding looks for under $100. Phew! (With a blazer and pumps, the dress is work-worthy, too!)

4. Know which beauty goods are worth the splurge.

I'm a sucker for a well-placed advertisement. And no one does ads quite like the beauty industry. You can make me look younger? Thinner, you say? With brighter eyes and smaller pores and miles of flawless skin? Where do I sign up? I've paid top dollar for fancy-pants beauty goods and bought the cheapie stuff, too.

Finally I wised up and asked a real-life doctor what was worth the dough. His thoughts: Don't spend big bucks on fountain-of-youth face wash. It's not on your face long enough to do anything but, well, wash it. Pick one that's pH-balanced, like good ol' Cetaphil. Every day a new miracle berry-emulsion-essence-of-peptide-firming-youth-enhancing ingredient comes out. Stick with products that contain scientifically proven anti-agers: A toner with salicylic or alpha hydroxy acid and a night cream with retinol, vitamin C, or coenzyme Q10. And don't forget the sunscreen.

So that's how I'm pinching pennies and staying pretty. What'd I forget? Do you guys do the clothing-swap thing? Shop online consignment shops? Would you rather have cash than clothing, any day? (That, I just don't get!) Or do you manage to stay $exy without all this shopping? (If so, tell me how!)


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Kim Fusaro (aka Little Miss Fortune) blogs for Glamour and has a wicked following (I LOVE her stuff). If you like what you saw, check out her site and show her some love :)

Labels: girl stuff, guest post, shopping

This is part 2 of 2 in the confessions of an online poker player series by a friend of mine who goes by the name of "NNNobodYYY" in the online poker world. Enjoy!

The life of a poker player can range from really boring to really exciting, depending on what you make of it. For me, when it gets too exciting (volatile), I make it more boring with changes to my playing system. When it gets too boring, you can make it more exciting, but if you want to succeed you have to be persistent and put in the hours at the table.

For the last week, my life has shifted from a very monotonous, grind it out poker system to one of the most exciting weeks in my poker career. This happens every time a championship series rolls around, but I usually end up miserable and full of regret. This Sunday I won the FTOPS VIII Heads Up Holdem Event for $72,000. That is more than I earned all year grinding it out! It makes the most sense that I'd win that event, rather than any other in the 27 Event online poker championship series, because I am a Heads Up ( 1 on 1 Poker) specialist.

Heads Up Freeze Outs

On a standard day, I play heads up freeze out (freeze out is a poker term for a game that is played until one player has all the chips and the other player(s) are eliminated) matches, $100-$200 per match and I play 30-50 matches each day. It is a very simple system; if you play for $100 a match the winner wins $100 from their opponent. If you can manage to win 60% of your matches, that's $1000 a day in a 50 match day, minus the $250 that will go to the poker site in rake, which would total to $750/day.

It's not nearly as easy as it sounds. Heads up poker requires complete focus to maintain optimum play so it is almost impossible to play more than 20 games in a row and maintain the discipline and focus to play your absolute best. You cannot play as many tables at once and it is much more mentally draining. The reason I chose this system is because I struggle with the swings, this system mitigates swings because it has the lowest standard deviation for returns. You could do the same thing playing 9 person sit and go tournaments, but the swings would increase because you aren't going to win as often against 8 other opponents as against 1 opponent, but when you win, you will obviously win a lot more. I feel it is necessary to split up daily sessions with hour or longer breaks between every ten games. During the prime hours 10PM-2AM, I will play 20 consecutive matches.

My Work Day

My work day is pretty flexible, but I do have some rules. It's not necessary to play during the day, but I try to play a couple hours during it just to get a ten game session out of the way - generally between 2PM and 6PM. It's not a great time to play, but it's not bad either. I wouldn't recommend playing before 2PM. The best time to play is between 10PM and 2AM (I think 6PM to 10PM is fine too, but that's usually my time off). I force myself to play these hours almost every night, sometimes starting at 11.

I used to treat the weekends like anyone else and took a break from playing poker, but since I bought my house a month ago I've been playing both Friday and Saturday Nights. This experiment in a really crappy life (in order to rebuild my reserves after the big down payment) has made me realize how necessary it actually IS to play on Friday nights. Friday nights are the most profitable because you have a lot of bad amateur players coming home from the bars (*cough * cough* J. Money). But for some reason Saturday nights are NOT as good, and I'm not really sure why.

During Championship Series

During Championship Series I change my whole schedule around to a much more brutal workload. I tend to work 12-16 hour days playing satellites into major events, winning a lot of event entries and never doing much in them. A satellite is a smaller buy-in tournament that awards a certain number of seats into a major event. Satellite poker is played slightly different because you're trying to survive 'till 20 or whatever number of players are left, rather than trying to win the entire tournament. Satellites are easy to win and a good way of playing the major events without having to front $200-$1000 entry fees (but they do require a lot of time). The actual events are much more difficult because they have massive fields that pay out about 10% of the field, and the payouts are very top-heavy so you have to be making final tables to be profitable playing tournament poker.

Even in the Heads Up event, which is my expertise, winning is still close to impossible. You have to win 10 consecutive matches to win the tournament, 3 to make the money, which is more reasonable. All I can say is Sunday was my day, and things HAVE TO go your way to win a tournament. I think to the 6pm event where I got eliminated ALL IN on with 1 card coming with AA on a 7 high 3 club board, holding the ace of clubs vs a guy holding two tens without a club. He had one out in the entire deck and it came, a 44-1 shot.

That is tournament poker and that is why it is generally miserable. Now I figure, normally I win that hand double through with 2000 players remaining, maybe make the money, but likely something else happens long before the final 100 players, and I'm eliminated. I guess you never know, though. I was only all-in as a statistical underdog once in my ten matches and it was the second match. I pushed in with Q8 on a 976 board on a semi bluff, was insta-called by J9 and hit running diamonds to double through. If I didn't get lucky there, the following 8 matches wouldn't have occurred and I wouldn't have won that $72,000. In fact, I wouldn't have thought twice about it.

Since I did win the event, though, I had to press on and fight for the top slot on the tournament leaderboard. Just one significant win in another event could have been enough to score it, which would then have given me free entries into all of the FTOPS IV events, not to mention serious prestige. I know better than to play the hold'em events with massive fields and bad structure - those are not my events and I generally do poorly in them. I came super close in a $300 shootout event (each 9 person table is played down to 1 winner and then those winners get reseated and have to win another table) on Tuesday, losing heads up with a chip lead to a bad player.

Then I lost a $530 Horse event on terrible luck - Horse is a fixed limit event, I've had a lot of success with it in the past, but if you can't win any hands you don't have a chance. Today, I ran my chipstack (not to be confused with chapstick) up to $20,000 in a Pot Limit Omaha event, before taking a few bad beats and losing on a foolish play.

Tomorrow is the end of the road for me, with the Pot Limit Omaha heads up event. It's heads up which is good, but I actually don't think Omaha is a game that fits well with Heads up tournament style freeze outs. Pot limit Omaha is a drawing and money odds math game, so most freeze-outs end on essential coin flips between made hands and great drawing hands, unless you're lucky enough to play someone horrible :)

Moment of Clarity

Over the past week, every waking hour was in front of my computer playing poker. I ordered 2 large pizzas from Papa John's on Sunday and been eating leftovers, since. Naturally, I got sick from such an unhealthy lifestyle. I had the same problems when I'd go to Vegas and Atlantic City for major events too - eating unhealthy foods and buffets all the time, being up all hours of the night.

I finally had a moment of clarity and introspection to write this after 5 days of nonstop play. The life of a poker player is always going to be more stressful than pretty much any other job, but you can choose how stressful you make it. My day to day life is pretty normal (compared to other poker players) and requires about 5-6 hours of work a day for a steady solid income. I choose to bump up my days during major events for a shot at a big win and when you get it, it feels great.

In the end, I am happy with my big win, a little disappointed I couldn't do better in the other events, and very much looking forward to taking a week off and things going back to normal.

I hope everyone enjoyed the read,
- NNNobodYYY

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This Series in the news:
- MSN Smart Spending: Secrets of an online poker player
- 2+2 Poker Forums: Confessions of an online poker player

(Part 1, in case you missed it: Confessions of an online poker player)

Labels: awesomely awesome, career, guest post

Guest post by Nicole Ouellette

Having your own business isn't all rainbows and unicorns but I personally wouldn't have it any other way.

When I quit my full-time job with health insurance a few weeks ago, more than one person thought I was insane. Of course they never actually said that: "Wow, you're gutsy! I'll give you that!" - "How is un ... I mean self - employment going?" - "Your father is probably rolling over in his grave..." (To be fair, Mom followed up that comment with lots of support. Still I know she's right; my father would've never approved of this.)

Then there are the people who think I sit around all day eating bonbons and flitting around my apartment in a bathrobe. Man, if someone would pay me to do that, that would rock! (Aside: It's hard to flit in 220 square feet of space shared with a dog.)

I'm here to tell you the truth, friends. The truth of quitting your job and going it alone.

1. Plan like hell.

No matter what, you still will not have planned enough but plan as much as you can. Who are your clients? How much do you have to charge to pay your life? In my case, not every hour I spend is billable so I planned 15 to 20 billable hours a week when I calculated my prices. Make a business plan (which you will probably hate doing), but in the end, it may save your butt.

2. Have some money to back it up.

I have been saving money and living frugally for almost 2 years. In addition, my father died and left me some money, which gives me more of a cushion than the average 28-year-old has the luxury of having. (For the record, I would give up this entire business in about 1 millisecond to have him alive again. (J: of course, that is so sad!))

So start saving now and with your business plan and nest egg, you can probably get yourself a small business loan, whether it be from people you know or a bank. I'm getting my stuff ready in case I want to do this at the end of the summer.

Also be prepared to transition, moneywise if need be. Right now, I'm working a part time job this summer to keep paying my rent and food as I ramp up my full time workload. My savings are only to be used if completely utterly necessary.

3. I won't lie, it does rock in a lot of ways.

On a roll at 5 o'clock? Sometimes I work until 11 at night. Lunch with a friend? It can happen. A flexible schedule is fantastic and something I've always wanted.

4. But I've never been so worried in my life.

I am a super laid back lady (to the point of almost being annoying) but lately, I've been having nightmares, worrying, and crying way more than normal. Doing this is scary because there is no guarantees that it's going to work. And while I will try not to take failure personally, I'm sure I will on some level if it comes down to that.

5. Oh and I'm totally operating in the negative.

I did some math last week and freaked out. I know there is bound to be some ebbs and flows in the business but I guess naively, I thought I'd be different. Good news is those two years I lived below the federal poverty line awhile back may have been some good training for me for the months to come.

6. If you don't believe in it, no one else will.

Is it hard to get up every morning and be ready to sell sell sell? Is it weird to do something my now-dead father (whom I held in very high esteem) would completely hate? It sure is. But I will tell you that the only person who needs to believe it in their heart of hearts is you. If you can believe it, it will translate. (You know, unless you have mental delusions or something.)

So before you quit your job, really dig down deep and ask yourself "Can I really do this?" The answer may be more obvious than you think. It's you who will have to work 12 hours a day or make personal sacrifices to free up business cash. No one is going to hold your hand or make you get up at 7 every morning. It's all you, for better or for worse.

Know thyself. Know thy customer. And know that no matter what, you can reinvent yourself whenever you want with a little planning and a lot of hard work.

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Nicole has been a personal finance blogger since 2007, and helping bloggers and business owners since 2008. She recently quit her newspaper job in May to take her company Breaking Even Communications full time. Nicole would love it if you read her blog Breaking Even and love it even more if you subscribed to it via RSS or email.

Labels: advice, career, guest post, in the real world

This is a guest post from Ann Smarty

I strongly believe that being thrifty is not about counting pennies - it is more about developing a smart spending strategy. If you take time to consider your every purchase, if you thoroughly research every product you are willing to buy, chances are your money won't be wasted.

Nowadays, the Internet provides for a wealth of opportunities to find useful, impartial information on anything you need. And "social media" tools are the best ones to start with:

• Web 2.0 sites feature discussions from real people;
• Web 2.0 sites feature most recent (even real-time) news and updates;
• Web 2.0 is hard to control and manipulate, thus the users' feedback is impartial and fair.

Use Twitter Search

Twitter Advanced search provides for a number of really great options you may want to try to see people talk about anything:

• Find Tweets asking question: use question mark (?) within the search query, e.g. [godaddy ?];
• Find Tweets nearby: sample search [near:"New York" within:15mi iphone];
• Find negative reviews (those expressing dissatisfaction): use :( within the search query, e.g. [godaddy :(].

Try Shopping Social Communities

Topical web 2.0 communities are great places to find experienced people share thoughts and help each other. So if you are serious about making good choices, be sure to choose a few social shopping sites to join.

How to choose is really up to you. My criteria are as follows:

• The shopping community should be clutter-free;
• The shopping community should be spam-free;
• The shopping community should be focused and targeted.

Buxr is my personal choice because it only offers quality updates and is attentively moderated to ensure there is no spam or self-promotion:



But then again, I welcome you to share your favorites in the comments.

See What Your Facebook Friends Have to Say

For me Facebook has long been a place where all my friends from all my stages of life are connected. It is quite natural, there are many people who I can trust - and who can help me by advising for or against any product you plan to buy.

SideStripe is a handy gadget that connects your facebook search with Google search: so each time you search Google, you know what your friends have to say:


What I Want Facebook application is another way to connect your friends to your shopping and saving activities. The app offers to add items to your wishlist from any store and notify your friends for them to come and share their opinion:

Use Product Reviews Aggregators

I don't recommend focusing to much effort on investigating product reviews because they are much abused and manipulated by the sellers but checking a few sites is not bad idea. Here is a good list of sites aggregating expert and user reviews from a number of sites. PriceGrabber and BizRate are two possible options to try:


Do you leverage social media for product research? What are your tricks?
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The guest post is by Ann Smarty, a blogger and stay-at-home mom and entrepreneur.

Labels: guest post, money hacks, saving, tools and resources, twitter

Guest post by Chris Wilson

Every young driver is faced with the possibility of paying high auto insurance premiums.

This is mostly due to the fact that insurance companies consider young people high risk drivers. Fortunately, the internet contains a host of insurance articles that will help young drivers reduce their insurance costs. Because of the internet, cheap auto insurance has become much easier to obtain.

Most insurance companies and insurance websites provide an auto insurance online comparison tool that allows young drivers to compare quotes from several different auto insurance providers. Not only do these companies provide insurance quote comparisons, young drivers will be able to make sure that the policy they choose provides coverage that meets all of their needs. The lowest policy quote may not provide the best coverage, therefore, there will be other policy quotes one can study and choose from. In order to acquire comparison insurance quotes, drivers just have to provide general information such their ZIP code, car type, gender, age...etc.

Once drivers locates an affordable car insurance policy that meets their needs, they can then check with the insurance company to see if they offer discounts on such things as good grades and completing a driver's safety program.

Comparing auto insurance quotes gives young drivers an advantage because they are more likely to find more affordable insurance than if they were to walk into an insurance company office. Because of the internet, young drivers have the ability to see what various insurance companies are offering and select the best option.

To find affordable car insurance, young drivers can compare insurance policies online from a variety of insurance sites. This allows them to find the best car insurance policy much more quickly and easily. Purchasing cheap auto insurance is one way young drivers can reduce costs during these difficult economic times.

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This article was written by Chris Wilson, a freelance writer who's work has appeared in a variety of economic sites. For more information please contact - CheapInsurance123.com

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Labels: guest post, insurance