7 pic Euro Vacation recap

Summer is flying by, hope you had/have great vacations that didn't break the bank!

 

 

 

Enjoy the rest of your summer. Don't blink, August is here...

Best,

Brian

Financial Friend$ & Enemie$

There is no shortage of financial tips and tricks, hot stocks and get rich quick and flip programs... There is no substitute for common sense and diligence.

There was a recent piece on +CNBC about security breaches; Anthem, HD, Target, and the Federal Government and tax returns...

'What can you do to protect yourself?' The expert offered sage, timeless simple advice: PAY ATTENTION

and who better to learn from when it comes to pay attention lessons?

YOUR MONEY

 YOUR CREDIT CARDS

It wasn't that long ago when you got your credit card bill monthly via snail mail... sat down with the unopened letter (the ritual often required an adult beverage in reach in case the news was really bad) and brace for impact... what was the damage? Will I have enough left over to feed the dog? That sad guessing game had us set up to fail.

Those days are over and all of your financial information is accessible in real time.

2 tips for friends & enemies now that we have all have real time access:

1.) Make a regular habit to check in with your friends, your money, keep it close, several times a week, if not daily, so you know what you have and what's due to go out. I'm a mint.com guy.
     (balance the checkbook, create and reference list of upcoming expenses. No more surprises!)

2.) Keep the enemy closer: What are those credit cards up to today? Know what your total spend is everyday. Do you know? The more you look the more you'll see trends and opportunities to cut.

How do you keep your organized, what other resources do you use?

Time IS Money

This never gets old.  Start young.  Best advice I ever received.  

Spread the word to a young person.  It might be the best advice they will ever receive.

The single greatest factor in personal finance ROI... Time.

Grocer plays on pump pressure. 3 flags.

"Spend $15 on things you don't usually buy and 
probably won't use and save $1 on $40 of gas!"

-the fine, fine print

We know that sellers go to great lengths to contact and manipulate buyers.  The goal being to have us buy, buy again and buy more still, certainly more than your frugal self budgeted.  We have seen an explosion in rewards programs, CareCards, store specific bucks, loyalty programs, etc.  Does your keychain look like you're on the janitorial staff at the high school?  Those are, in part, intended to have us feel like we are special, part of the group, and as a result, getting a good deal from our pals, uhm, sellers.  When you stop to think about it, they all subtly play on some very basic human needs we all have, recognition, acceptance, and being part of something.  Fine.

Hey, have you seen the price of gas lately!?  Looks like $5 per gallon this summer.  WHAT?!  That's crazy!! "but wait", says my local grocer, "allow me to play on your fear and anger.  I will comfort you with a deal, friend."  Game on.

I've seen a few fringe "gas rewards" programs but the full-court press is on as gas prices continue to climb.  As with any advertised sale or deal, you've got to break it down into little pieces to get to the bottom line and determine if it's a good deal for you.  Here are a few things to consider before you buy that $2 box of fruit gushers to save 30 cents on gas.

1.  First PLAN to buy what you NEED based on the PRICE of that item alone.  Don't consider buying dog biscuits to get 100 points that will turn into 25 cents next week if you make it to the only Shell station across town, when you don't even have a dog.  Really, only if the program fits YOU, not the other way around, proceed...

2.  RUN THE NUMBERS:  Let's say you do plan to buy what you need at the price you want it at and you manage to get 200 points, whoa!  How much gas do you need and what's the total savings?  Scratch it out on paper and decide for yourself if it's worth it.

3.  APPROVED GAS STATIONS: Make sure you know where you can use the gas points and that it is convenient enough for you to actually use.  We'd hate to see you do all this work and then not even use your points!

Good luck!
What has your gas rewards experience been?

Suze's grade is in...

How did we do with our "How Am I Doing?" Segment ?

Our segment aired Saturday night (4/30/11) on The Suze Orman Show on CNBC.  Suze went over the details of our situation and handed out her grade:

Decision Making: Don't leave it up to the waiter.

We were out to dinner last night and my wife couldn't decide between two interesting fish and chicken dishes.  She asked the waiter to help make her decision, "Which is better?" she asked.

Pay it forward. It helps keep the budget in line.

I'm on a new kick.  Laundering money.  At least it feels that way...

We all know that a cardinal rule of personal finance is, "Don't spend money you don't have."  Easier said than done, right?  I have a Upromise MC.  We're trying to stuff a few extra bucks into the 529's we have set up for the kids #CollegeNextYear!  Upromise gives 1-5% cash back on all purchases made with the card.  It's not a ton of money but we might as well get something for spending.

One of the features I like most about this cc, unlike other cards is that I can transfer more money to the card than my current balance (up to $500, same with AMEX).  I love it!  It's a great budgeting tool.  I can better plan out and pay for the coming week of spending with $$ I HAVE.  Remember the days before the now ubiquitous online account management/billing/payment functions?  Get that cc bill and hold your breath opening it to see what the damage was for the month?  That was like driving a car on the highway blindfolded! (Many of our younger friends never felt that pain #ShockAndAwe)

Don't fall for the lipstick on a pig. It's still a pig.

Today I broke one of my own cardinal rules.  In fairness to me (excuse alert!), I was out of my routine.

Help someone get an early start. They will be benefit greatly.

I've spent much of my time at home trying to figure out if I should be worried.  Another chapter in my personal "define your reality" series...  What I have learned is that I put a tremendous asset on my side: time.

A Financial iPOD for all ages

I want my kids to grow up with a firm handle on personal financial responsibility, embedded in their little brains tomorrow as deeply and comfortably as the things they do so effortlessly today.  Technology

They bet you will make a mistake. They're usually right.

I was blazing though my food shopping route today, working the plan that I had put together on Sunday.  I had my sale items listed by store with the coupons organized in their respective store envelope.  Every shopping trip is a game to me, who will get the better of this transaction, Them or Me?

Best time to buy it, is when you don't need it

Pressure creates a sense of urgency.  That can be a good thing.  Positive Pressure can force your hand to 'get things done'.

Pop Quiz: What's the real deal? Do the math...

They say that education is the great equalizer.

Let's apply that to our shopping efforts and take a step toward leveling the playing field.  The playing field is not level.

Everyone wants what you have! Your $$

Attitudes about money have a big impact on your cash flow.

I've recently had an attitude adjustment.  

Saving Tip: ABC's work!

Love the Lowe's!  I need to find a way to save on my addiction...

I recently had a very good experience with ABC Gift Cards.  We first tried it for an Ann Taylor gift card, 30% off.  That was perfect for back to school shopping for my wife.  I was skeptical at first but did some digging and it seemed legit.

"How did you do that?" said the man behind the register..

I like feedback.  I like to know how I'm doing, I'll take it wherever I can get it...

Year 1: SAVED some, LEARNED more

Who doesn't love to save money?  I want to do it any way I can!  Almost.  

Back to BASICs

We can all do better when it comes to living within our means. I read something somewhere that, "70% of Americans live like they are in the top 1%"

That is a bold and un-scientific statement, but it does paint a clear picture. A wild picture supported by a noisy backdrop of ugly economic numbers.

Recently, my wife and I have made some major life changes, resulting in a "focus on what you can control and recognize what you cannot control" kick with our kids. Whatever your circumstances, it’s a great reminder and starting point to make some changes, for all of us right now whether you are in that 70%, or think you are in the other 30.

For us, that focus means taking control and getting back to BASICs. I have worked through these steps for the last year and have cut our family spending by 40%! It has been a positive financial and emotional journey for our family.

Step #1: BASELINE: accurately determine your current economic reality. This is your baseline from which all of your progress will be measured. When you get rolling and implement your plan, you will see significant changes from this starting point and everyone will breath a bit easier...

-a Keep track of everything you spend. Everyone gets a blank tracking sheet, a calendar page will work. Capture every penny spent. Two months is a fair sample size.

-b Calculate Cash Flow. Income(minus)Expenses= Cash Flow. There are a lot of expenses out there that you might not think about. Use the tracking logs from above to make sure you have an accurate picture of what you spend. There are plenty of good, free spreadsheets out there, or you can make your own.

Step #2: ASSESS: Now you’ve established an accurate baseline, you must assess your priorities. Before making sweeping changes, make sure that important areas for your family have been identified and discussed. Communication through any type of change is critical.

Give everyone an assignment. "Tomorrow night after dinner, we will each share a list of 3 things that are truly important to you, or that you love to do, or what you just can’t do without." The idea is to find a conversation starter to help identify what’s most important to your family.

Step #3 STRATEGIZE: Now that you know where you stand and what’s important to your crew, it’s time to brainstorm and research ideas on ways to improve both sides of the cash flow equation. You need a game plan, a strategy. "How can we earn more dollars?", "How can we save more of the dollars we spend?", "What can we do without, what could we use less of, what are our wants vs. the needs?" Consider everything. Have that conversation and then turn the talk into action! It doesn’t have to be perfect and it doesn’t have to be major but it does have to be specific. Write down the improvements (just a few to start, easy ones. Change is hard. You want to have some early wins to get things rolling) that you all agree you can take action on immediately.

Step #4 IMPLEMENT: Right now you are well on your way to making great improvements that will have a profound impact on your family! The communication that has taken place so far is important and very eye opening. It is a wonderful exercise and learning experience for the whole family. But all of that work means very little if the plan is not implemented. You must take action. Action will happen if you plan for it. Don’t assume it will happen. Take the family calendar out and write in what changed behavior will take place and when. I heard it when we started this leg of the journey, "yeah, yeah, we don’t need to do that, we got it, this isn’t rocket science." It’s common knowledge: "If you fail to plan, you plan to fail." Too much work has gone into this BASIC plan, don’t take this critical step for granted!

Step#5 CIRCLE back: Circle back and evaluate how things went. What went well? Celebrate your success (within the budget of course!) You must take the time to recognize your efforts. That is the fuel that will keep things moving forward. What didn’t work this week? Why didn’t it work and what can we plan to do differently next time? This is how you will improve next week and the next week, and the week after that. Eventually this will become a routine, second nature. That’s when you really start to see results that make a difference.

That’s a good, BASIC start for now, to get better today and set your crew up for success tomorrow. There are a million details you could add or consider left out of this BASIC plan but don’t hesitate. Put a BASIC plan together and add your own flavor but take action now. "A good plan acted on today is better than a perfect plan executed next week"

The End of Men? A new beginning.

2 facts jump out from this article in the Atlantic Monthly... "Earlier this year, women became the majority of the workforce for the first time in U.S. history. And for every two men who get a college degree this year, three women will do the same."

A little quick math suggests that some roles might be changing on the home front. They already have on mine...

I hear a lot of stories, many driven by the economy, of Daddy reluctantly doing, or not doing, various forms of "woman's work" when forced to play a new role at home. Get with the program, boys! Take those skills from the workplace, apply them to home/family and help the team win! It has been a wonderful and productive time for me; I really would not change a thing. A lot of us have just been asked to play a different position on the team because things are changing, economy and otherwise.

How many times do we hear about a player who is asked to doing something that they didn't sign up for on a team and refuse to do it with a smile? What's our reaction? "BUM! He's only looking out for himself!"  Many of us have been asked to play a new position on our team. This is a great opportunity for the entire family to leverage strengths placed in different areas. Change is good. You will discover things you didn't know were there. Focus on what's important, get priorities aligned, and put a plan in place. Then, take your team to new heights while being a great role model for a new generation.

No, not the end of men, but it is a new day.  Seize it and enjoy.

Save like you have to UPDATE: courtesy NYTimes

“One of the reasons that the re- covery has lost momentum is that high-end consumers have become more jittery and more cautious,” said Mark Zandi, chief economist for Moody’s Analytics. (NYTimes 7-17-10)

We were just talking about this! Everyone is showing signs of saving like they have to. Whether you need to or not, it's a good idea to run a tight ship and save like you have to because someday, you just might have to. Looks like some of these folks are feeling like they have to. I hope it's not too late!

Calculate your cash flow number (or update it), and then reduce the income number. Go through that list of expenses and figure out what can/will be cut.

"Practice like it's a game so the game will feel like practice" #quote

Practice saving like you have to because someday your game may come.

Have you changed any personal finance habits lately?