Ben Popken over at The Consumerist has a very interesting preview of a new service by BillShrink that is launching in late July. It lets you compare how much you would save by switching cards by reviewing your individual information, like balances and credit rating. It sounds quite interesting. You can read the full article here.
Today is my birthday (woohoo!!!!) and I have been thinking about gifts a lot lately. I know that sounds selfish, but my friends and family have been asking me what I would like for a birthday gift. This raises the eternal dilemma - do I ask for something practical (and thereby essentially save money) or ask for something that I really want, but would never actually get for myself? I go through the same dilemma when I am buying something for someone else. I guess it really boils down to what is gift giving about?
Gifts are about showing your affection for the recipient. Generally, we don’t give gifts to our enemies, the Trojan Horse aside. So, gift giving is about recognizing your relationship with another person. In a way, giving him or her something practical shows your understanding of the recipient’s needs.
Gifts are about making the recipient feel special. Who doesn’t like receiving a gift? Well, someone receiving a gift that is totally wrong for them might not be thrilled. Still, the joy of having someone recognize you is really nice. Gifts that are extravagant are even better. A gift that is extravagant doesn’t need to cost a lot. That’s one of the biggest myths of gift giving. A $10.00 candy bar is extravagant for most of us, but it doesn’t cost a lot. Gifts that fit this category would be somewhat practical (food is, after all, practical), but are at the high end of what ever the practical item might be - a really, really nice glasses case, for example.
Gifts are about showing off. It’s everyone’s dirty little secret, well, mine anyway - I strive to give the best gift. No matter what the occasion, I try to find the perfect, no holds barred, super-gift. Often people do this by spending money, but that’s not necessarily required. As with the practical-extravagant gift, the perfect gift is more a function of getting to know the person to whom you are giving. The fancy iPod is nice, but if your friend is a closet watercolor artist, a palette and some paints would probably be enjoyed far more.
So what did I ask for? From my sister - a Wii fit. That falls into the practical-extravagant category. After all, I can exercise with it, but I would feel rather guilty actually buying it. From my parents, a day of shopping with my mom. I could use a new suit for work and I would like to get to spend time with her. From my boyfriend, jewelry. The jewelry doesn’t have to be fancy, but I like wearing something that makes me think of him.
What do you ask for/give when it comes to gifts?
Reducing debt is definitely a marathon and not a sprint - unless you win the lottery. It can seem like a never ending journey. You pay as much as you can towards the debt each month and then you do the same thing again. I often find myself saying “Will this ever be over?”
Today, I found a tool that let’s me estimate when I might finally arrive at my destination: The CNN Debt Reduction Planner Calculator. It lets you put in your balance, interest rate and minimum payment and make a number of calculations. First, you can calculate when you will pay it off if you make the minimum payments each month. Second, you can calculate when you will pay them off if you put down a fixed amount each month. Finally, you can calculate how much you need to pay per month to pay them off in a set amount of time.
I tried it with the amount of $15,000 at 18%. With the minimum payments, it would take 29 YEARS and 9 MONTHS. If I commit $500.00 a month, a mere $150 per month above the minimum payment, I will pay it off in 3 years and 3 months. If I commit an extra $100, I will shave 6 months off of that time. If I want to pay off the whole thing in 2 years, it will set me back $730 per month. To pay it off in 1year? $1,341.00.
What does this tell me? First and foremost, just paying the minimum is horrifying. Second, if I can stick to my $500 per month plan and pitch as much as possible at my debt, in the form of bonuses, etc., I can get it paid off relatively soon.
This tool is invaluable to help you figure out where you need to get to.
Do you have any tools that you are finding useful in your debt reduction plan? Let us know!
I always enjoyed Sex and the City when it was on HBO, but I wasn’t an avid fan. Still, my sister really wanted to see the movie and I agreed to go with her. Upon stepping up to the ticket counter, we immediately felt out of place. My sister, a stay at home mom, was wearing a denim skirt and Croc sandals. I was wearing my typical post work clothing - a t-shirt and jeans. Surrounding us, however, were throngs of women who had spent way to much time primping and preening to go see a movie. There were four inch heels everywhere.
By this time, I was feeling a little apprehensive about the movie. I felt out of place in this theater full of glamour-seekers. The movie, however, had a surprising message at it’s core. Although I think that it was probably lost on most of the audience.
++++++++SPOILER ALERT++++++++
In the movie, Carrie Bradshaw finally gets Mr. Big (Chris Noth - swoon) to agree to marry her. Now Mr. Big has been married twice before and neither he nor Carrie Bradshaw are exactly spring chickens. So, at first, Carrie plans a small wedding of around 75 people. As the movie progresses, however, Carrie gets caught up in all of the fabulousness that a wedding can be. Her vintage suit wedding dress is replaced by a Vivienne Westwood merange monstrosity. The guest list balloons to over 200 people. She wears a bird on her head.
Eventually, it all becomes to much for Mr. Big and he leaves her at the altar. There she is, hearbroken, with a bird on her head. It was surprisingly sad.
By the end of the movie, Carrie and Big do get married - at City Hall in her little vintage wedding suit (and shoes that probably cost more than my mortgage payment). I was struck by how Sex and the City, the television show that made household names out of luxury labels like Manolo Blahnik, based the movie version on how our obsession with appearances and having everything can destroy what matters to us most.
Carrie Bradshaw got so caught up in the trappings of her wedding and fulfilling every childhood dream that she forgot the whole point of marriage - to get married and start a life together. How many times do we, ion our non D&G wearing everyday lives, obsess over money and things and miss out on what we really want.
I hope that Sane Finance will help people to do that. Being smart about money isn’t about depriving yourself of all luxuries. It’s about keeping focused on the things that matter to you most.
About two years ago, I woke to find that I not only was in debt, the debt was growing bigger and bigger every day. A few factors contributed to this problem:
So, I started looking online for answers on how to reduce debt and get my life back in order. I would love to say that I’m totally out of debt and never worry about money, but the fact is I have a sizeable amount of debt and I still get the ocassional panic attack. Still, over the past two years, I have learned alot about finances and how to start getting your life back together.
My progress might be quicker if I were willing to go to more extreme measures. I have found a comfortable medium, however, between reckless spending and extreme cheapness. It is a compromise that I can live with and without which, I am fairly certain, I would have fallen off the wagon and be back where I was.
I will share how I got things back on track and hopefully you will share some of your tips as well. Together we can be financially responsible and sane at the same time. Please feel free to leave comments and you can contact me at admin@sanefinance.com.