A Gift is Still a Dollar

November 01, 2010

Why do we tend to splurge on a bonus check or birthday gift check? Why do gamblers who just won a jackpot go across the street and buy a Rolex watch – something they never would have done otherwise? Traveling back East today, I am reading, Why Smart People Make Bad Money Decisions by Gary Belsky and Thomas Gilvoch. The book essentially enlightens us about human nature and how it relates to money and what we can do about it. I learned a few new things and validated some things I already knew. Continue reading “A Gift is Still a Dollar”

Cleaning Up the Fall Budget

October 28, 2010

Each year my wife and I look at our household budget and see if there are ways we can trim our expenses. (I know most people do this in the spring along with their other cleaning, but I dare to be different.) I figured I would share some of our new found money tricks and hopefully some of these may help at least one other person. Continue reading “Cleaning Up the Fall Budget”

Time Is Ticking So Take Care of Your Teeth

October 26, 2010

The end of the year is drawing near, so I’ve turned up the heat on my husband to get his cracked crown replaced by our dentist. Why the rush? I know he needs some additional work done, and we have an annual maximum that we haven’t hit yet this year for restorative work. If he waits and puts it off until next year, and ends up needing something else done we will end up paying for some of the cost out of our own pocket above the annual max. Continue reading “Time Is Ticking So Take Care of Your Teeth”

Kids Eat Free Sundays

October 13, 2010

Sunday is my favorite day of the week. Not only is it a day I get to worship with my family, but it is also the day that kids eat free at the local sub shop. Now I’ve got four children (the oldest who just turned 12) and as many of you can attest it can be very expensive feeding such a crew. In fact, my last trip out for lunch cost me over $75, and I didn’t even enjoy an adult beverage. The truth is dining out can be one of the biggest drains when it comes to the family budget. When we think about how much we spend each month it’s easy to come up with figures for things like housing, utilities, cell phones, etc., but dining out is one of those expenses that is easy to underestimate. We might think we have a good handle on it, but let’s test ourselves to be sure. Continue reading “Kids Eat Free Sundays”

Cash Management: Yard Sale or Donation?

October 11, 2010

I have to confess that I really hate yard sales. Oh I have no problem going to other people’s yard sales to snap up bargains but I can’t stand putting them on. Like many other people especially these days, I work hard during the week and the last thing I want to do on the weekend is to get up in the wee hours Saturday morning to put little stickers on my books and glassware and set them up on tables only to have people walk up and try to haggle me down from $1 to 10 cents for my used books. “Are you kidding? This is Tolstoy! You should be paying me to read this book,” is how I handle it. So in other words, not well.

Maybe it is better to just donate the whole thing to charity and forget the yard sale. Continue reading “Cash Management: Yard Sale or Donation?”

Cash Management: Confessions of a Coupon Hater

October 04, 2010

To me it always seemed like a major hassle to look through the Wednesday paper for the weekly sales and cut out the coupons. Half the time, I ended up buying things I didn’t need just because there was a “savings” and more commonly I went to the store and forgot them altogether along with the reusable grocery bags gathering dust in my pantry. Continue reading “Cash Management: Confessions of a Coupon Hater”

The Debit Card Hoax

September 29, 2010

One of my favorite workshops is our Personal Financial Basics workshop. In this workshop we talk about the fundamental principles of money management, including budgeting, credit and debt, and saving. No matter where I go or what audience I’m speaking to, there is one part of this workshop that always causes a stir: the debit card.

Now what can be so controversial about the debit card? Nothing, unless you make it controversial, and here’s how the conversation typically goes: Continue reading “The Debit Card Hoax”

The $1,249 Vacuum Cleaner

September 22, 2010

Recently, our vacuum cleaner broke. Now normally when something like this happens I like to take it apart and find the broken piece, replace it, and keep using it. Well, let’s just say this vacuum is beyond the point of no return. But this presents us with an interesting dilemma. You see, this is not going to be the first time that we are replacing the vacuum. We don’t seem to have very good luck with vacuums, and by my count, we are on at least vacuum #3. So that would mean we are replacing a vacuum about once every five years. Now I don’t know the life expectancy of the typical vacuum cleaner, but that seems a little frequent to me. So I plan to take a different approach to the vacuum buying process this go around. Continue reading “The $1,249 Vacuum Cleaner”

The Cost of Necessity

September 15, 2010

Twice a year I have the opportunity to speak at the local crisis pregnancy center to a group of young men and women about managing their finances. Now I don’t care how old or how young you are; whether you make a lot of money or just a little—we ALL need help when it comes to managing our money. Most of us learned to manage money watching our parents, and I think many of you would agree that they could probably use some help too. But among the things we talk about, the one that I often get a kick over is the subject of ‘wants vs. needs’. Now you might think that wants and needs are fairly easy to determine, and in many cases you’d be right, but there are several instances when it may not be as black and white as it first appears. Continue reading “The Cost of Necessity”

Are You Financially Strong Enough to Accept Charity?

September 08, 2010

Recently, my life group at church went to a local gas station to pump gas and wash windows for the customers, and I learned something very interesting: sometimes it is difficult to receive charity. Our goal that day was to be nice, and to offer kindness to strangers in the form of service. We were not asking for donations, we were not raising money for some upcoming event. We were simply being charitable. Now in the defense of those we met that day, I will say that in today’s world someone coming up to you at the gas station and offering to pump your gas and wash your windows seems a bit odd, but when we explained that we were simply providing service as an act of kindness, there were many who allowed us to proceed. Continue reading “Are You Financially Strong Enough to Accept Charity?”

A Tale of Two Vacations

September 01, 2010

Recently my family and I went on vacation. Well, actually it was two vacations; one right after the other. The first was a working vacation—I worked while my family vacationed. I travel quite a bit in my line of work so whenever the kids are out of school and I’m going to be away for a few days I like to bring the family along with me. It gives them something to do, and to be honest with you I really enjoy the company. It also saves us money. I have to get a hotel when I travel, and I have to get to and from the hotel, so at least part of the travel expense is covered. It also gives my children an appreciation of what their dad does for a living, and after a long day of work I enjoy hearing about the fun things they did that day. And who doesn’t enjoy sitting in a hot tub with their significant other watching the kids jump into the hotel pool? Continue reading “A Tale of Two Vacations”

Paying Down Debt – Which Theory Works the Best?

August 20, 2010

In the last few months, I have fielded calls about paying off debts, and which of the many theories about debt pay off works the best. There are 3 primary theories out there that are being pitched to individuals looking to get out of debt. I will use the same sample debt with each of these methods, for the sake of comparison. ($10,000 debt at 24.9%, $8,000 @ 15%, $2,000 @ 5%, and $50 above minimum payments to add to principal.)

1. The most common advice I see given in the financial media is to pay off the highest interest debt first. Why? Continue reading “Paying Down Debt – Which Theory Works the Best?”

Cash management: Pay as Much Attention When You are Selling as When You are Buying

August 16, 2010

Next door neighbors are good for borrowing things: a lawn mower, tools and a cup of sugar. If they have teenagers, they are good for babysitting and helping you move heavy objects downstairs (even working for pizza sometimes). My next door neighbor, however, taught me some lessons that have saved me hundreds of dollars over the years – maybe I shouldn’t have paid his sons in pizza to move my furniture.

Here’s what happened. I was selling a Toyota Corona (yes it was really a Corona – there was a model about a hundred years ago) and he helped me because at the time (quite a few years ago), I was a pushover. Continue reading “Cash management: Pay as Much Attention When You are Selling as When You are Buying”

Missing A Step

August 02, 2010

A caller to our financial helpline told me last week, “ I am terrible at money management.” Well, after talking to her for a few minutes, I realized that she really wasn’t. She confessed that she was always on the watch for when her bills were due and she paid them on time watching for the big ones so she didn’t miss them. In other words, her rent and her car payment were always paid on time. Does that sound like she is terrible at money management? Continue reading “Missing A Step”