TOP 10 WAYS PERSONAL FINANCE BLOGGING HAS HELPED ME

Lazy Man & Money has started a meme about the Top Ten Ways Personal Finance Blogging Has Helped Me. If you’re interested in participating, let him know that you’ve done so & he’ll link to you. Here's mine:

10. I cannot ignore the balances on each of my accounts. Seeing a tally on the side of my blog everyday helps to keep me motivated.
9. Reading other blogs and seeing the stories of others helps to keep me motivated. It's nice to hear about the people who can knock out $20k of debt in 6 months but even better is to hear the stories of those slogging through SLOWLY (like me). It takes a bit more to keep us motivated.
8. I found helpful hints from other blogs. I hope I can share a few of my own with those who check out my site.
7. Writing entries as often as I can helps me to feel less stressed about my debt situation, especially since my family and friends are not aware of my situation. This keeps me sane!
6. I've found the comments and suggestions of others helpful... and it's always nice to know that at least a few people are reading my blog!
5. I have been able to change my outlook on money and try to realign my values with this new debt reduction plan.
4. I've found many avenues for generating a few extra dollars on the side (ads, CashDuck, etc).
3. It has helped me to look at my overall networth and see the reality of the situation.
2. I can see that though my balances may be large, there are others worse off... and better off than me. So not only do I feel better about my mistakes but I feel I get ideas for investing, real estate, etc. for the future.. when I'm out of debt and generating wealth!
1. It has helped me to avoid (minus a few setbacks) putting MORE debt on my credit card, because I know I'll have to post the change in my account balance!

LOANING MONEY TO FRIENDS AND FAMILY

Though I have been late is posting, I have a good topic for this entry: loaning money to friends and family. I stumbled upon a great entry at Grad Money Matters, "5 Things to ask yourself before loaning money to family and friends." Happening upon this article is ironic because for the past week I've been obsessing a bit about a situation I've gotten myself in... though not exactly an outright loan, the monetary transaction has had a big impact on my finances nonetheless. Here it is: About a year ago a friend and I decided to go on a vacation. I found tickets, reserved hotels, etc... and put it all on my credit card. I knew I'd be receiving some extra money soon after the trip, so I felt confident about being able to pay off my part of the debt. I had agreed with my friend that once we returned from the trip, he could pay me little by little until a few months later when he expected to be able to give me a larger check to settle up. To make a long story short, I have still not received a full payback. Bringing up this debt sitting on my credit card is a hard thing to do because I feel like I'm pushing and pushing with no results. I need to remind myself that this is my credit, my card, my finances. My friend does not seem to care about the impact this trip has made on my finance, but it has served as a great lesson... don't put vacations on your credit cards and don't loan money to friends or family unless the situation is extreme or you KNOW the person will be willing and able to pay you back.

MICROLENDING

As I mentioned in an earlier post I really like the idea of microfinance... taking my small contribution and using it to help a person in a third world country have a chance at changing their finances. Another thing I love is the website Slate.com. They have very insightful articles on a huge array of topics, from politics to fashion. In browsing the site I found a worthwhile article on microlending "A good run for your money" examining which organization will put your $20 to the best use. Soem sites mentioned include: Kiva (my fave), Prosper, Pro Mujer, Grameen Foundation... etc. If you want a breakdown of how each orgainzation uses the money, interaction with borrowers, customer satisfaction and various other factors this is a don't miss article. Read it, look at some of the sites and lend! $20 goes a long way.

Debt Blues

My debt is weighing on me this week. April was not a great month for me.. I had additional expenses come up and ended up blowing my budget, which is frustrating. Although, looking back on most of my decisions this month helps me to be more motivated in the upcoming months. Oft repeated, but so true: debt is so much easier to get into than get out of! I have started using Peapod for about 2/3 of my groceries. This forces me to have more of a plan when shopping, and I hope it will help me keep my food expenses in control. The other benefit is that some of the Wild Oats brand products (natural) seem to be a bit cheaper through Peapod than if I were to go to a store such as Whole Foods. So, this month I plan to keep a detailed record of what groceries I buy, where and for how much. I'm hoping this helps me eliminate unnecessary expenses.

On another note, I found a great article on CNN.com... about a young guy preparing to take a 15 month trip around the world. This is a great example of what you can do when you're not overloaded with debt. I really miss taking regular vacations, so hopefully this story will give me a bit of a kick for action. Enjoy!

TIME OUT CHICAGO

One of my favorite magazines is Time Out Chicago. The weekly magazine gives the scoops on anything and everything in the Chicagoland area... restaurant reviews, store openings, deals and steals. Really, its the best $19 I've spent all year. Their site is no where near as expansive as the magazine, so for $19 your money will be well spent.

One great thing they offer is Time Out FreeFlix. Every week or two you can sign up to receive 2 free tickets to an advance screening of a movie coming out the same weekend. Some weeks there are multiple movies. If you sign up, they will give you a notification date when an email will arrive in your box. You need to click on the link to receive your tickets. If you know you'll be in front of your computer all day, keep your inbox open. Tickets go VERY quickly.

Also, this week's edition is the CHEAP issue... dedicated to the wide array of inexpensive things you can eat, do and see in Chicago. Perfect for those of us on a budget. Some of the entries are accessible on the Time Out site. Click (here) to see the article "Cheap Tricks" or run to your local store and pick up a copy!

FREE STUFF

I've spent a good bit of time looking at other personal finance blogs maily to creat a list of my faves. These blogs have been a great source of inspiration and some bloggers have really thought provoking entries. In my digging, I stumbled upon the blog Boston Gal's Open Wallet -- and a link to free stuff. The list comes from Real Simple Magazine, a great source for easy ideas on how to live well.. from home organization to caring for your clothing. The article is called 23 Surprising Things You Can Get for Free. Check it out!

TAX DAY

The arrival of tax day is not heralded with joy by me or most Americans. For those of us falling under the independant contractor/self-employed umbrella tax day is particularly horrifying. This year I took a deep breath and dove into my taxes. I knew I would owe money as I missed 2 estimated payments during the year. BUT, I didn't realize I would owe to the tune of $6000. I figured closer to $3000. So, first off I sent the check for $3000 that I had prepared. I started an IRS payment plan and have taken a few deep breaths. As I wondered what went wrong I decided to look over my estimated payment calculator sheet from 2006. The amount I had calculated and the final amount I owed were drastically different. I decided to recalculate my 2007 estimated payments to see what amount I came up with and then compared this to a TurboTax calculation I did shortly after. Despite following each step on the paper form and double checking my math I AGAIN came up with 2 differnt numbers. The difference between the paper sheet and the TurboTax calculation was just under $3000.

Now, I know I am not an accountant but I'm fairly competent with math. I followed the steps closely and cannot determine what causes the difference between the two numbers. Obviously, after my tax bill this year I will rely on the TurboTax calculation, even if I am paying more than I should. Yet it makes me wonder what the discrepancy is. Anyone have any ideas?

Next, for those of you doing your taxes at the absolute last minute, the following link will take you to an article entitled "10 don't miss tax breaks" from Money Magazine. It may help you squeeze a few extra dollars out of your return.

Best wishes and may Uncle Sam be kind to you today!

SOME GOOD, SOME BAD

Health care issues seem to have taken over my life for the moment. I thought I had everything solved and organized, so I was feeling pretty good about putting my surgery situation to bed and work on paying off the bills. Unfortunately, a new bomb dropped from the health care sky. UniCare, my insurance company, decided to rescind my insurance... retroactively. I knew this was a possibility since when I had refuted their claims and fought to have my surgery bills paid, they threated to cut off my insurance. I felt it was reasonable to be able to discuss the situation with the company and plead my case. Apparently that is not really true. Through I feel this was partly vindictive on their part, I am trying to be zen about the situation and just move on. So, bad news is that I have no health insurance, need to find a new plan AND have to potentially deal with being back billed from doctors. Grr.

On the positive side, after many complaints and petitions, the headquarters of my work is finally looking into organizing a group plan for all the 'independant contractors' who work for the company. This may take a few months to come to fruition but at least its a positive thing on the horizon! This may also mean that my monthly insurance payments will go down slightly, allowing me a bit of extra money to funnel to my debts.

Wish me luck in my new insurance quest. It looks like it will be difficult finding something that promises good coverage, yet isn't over $175 a month. I am also worried that with my recent surgery, starting a new insurance plan will mean I get a waiver applied to my account... which will render any foot related doctors visits not covered by the plan. Anyone have any suggestions?

CH-CH-CH-CHANGES

My Prosper loan was fully funded and has been deposited into my account! Working with Prosper was one of the easiest, most enjoyable experiences I've had in trying to get money. Before I found out about Prosper I had considered taking out a personal loan through my bank to pay off some my surgery expenses. I was offered a 5 year loan at a 30% interest rate! Obviously, I said no thanks. With Prosper, I requested $4700 and received an 11.5% interest rate. I can pay it off early with no penalty and now the two medical bills that I could not put on payment plans are consolidated into one monthly payment of $157.00. So exciting! I also used a bit of this money to pay off my highest interest rate card, at a whopping 29.9% it needed to be done! Here is a breakdown of how I used the Prosper loan:

Amount Requested: $4700
Amount Received (after fee): $4653
Paid: Credit Card 3: $602.03
Paid: Surgery bill: $1500
Paid: Surgeon bill ($2700): $2550

So, I just have $150 left from the medical bills that wasn't covered with the Prosper loan and isn't on a payment plan. I wish I could say that I had completely eliminated $4600 in debt, but at least I have consolidated things and gotten the lowest interest rates possible. It feels good knowing I'll be throwing less money at these credit card companies!

SPRING CLEANING

Last week I found myself knocked out by the flu. The really horrible, body aching, sick till your eyes cross kind of flu. After I felt better I decided my apartment needed a top to bottom disinfecting. Normally, I use an array of products -- some natural, some not. Today, as I was standing making a list of the different things I needed to buy to do this cleaning I stumbled upon a large bottle of a product I actually had forgotten I bought. Simply Green. It's an all natural, all surface cleaner, superconcentrated so a little goes a long way. I tested it out and I am completely converted!! For $6 at Home Depot or your local grocery store this product got every nook and cranny sparklingly clean.. and I didn't pollute the environment or have a chemical smell in every room. I would suggest buying an empty spray bottle and mixing Simply Green in that... it will make it easy to use the product throughout your house.

Two other products I love using that are dirt cheap and not harmful to the environment are Hydrogen Peroxide and Vinegar. You can pour some peroxide in your sink or tub and the fizzing sounds you'll hear mean the germs are being zapped. For $1.99 you can buy a giant bottle that will last a half a year. Also, vinegar is a great all purpose cleaner... although you'll have to ignore the pungent smell. It is especially good for cleaning your fridge (when you can motivate yourself to tackle the task). You can clean the interior without leaving an chemical residue which could transfer to your food or change the smell of things. Yuck. I've also hear that baking soda has some handy kitchen uses... but I don't know for what. Anyone have some details on that?

Also, I'd love to hear if you know of any other natural mixtures you use to clean. We all know that there are plenty of cheap products available, but if you really think of what you're spreading around your living envrionment it gets a little scary. I'd rather stick to a natural product that costs a few dollars more (i.e. the Orange Clean line of products) or use something more natural. So, if you have anything to share or sites to point me to please do!!

INVESTING

Although I am focusing on eliminating my debt, I'd like to share a great site I know of that helps people with limited means invest in the stock market. The site, www.sharebuilder.com allows you to create a monthly investment plan or schedule one time investments whenever your budget can allow for it. The premise is that you pick a set amounth, say $20/month. You then pick a stock or a handful of stocks. The site then takes your money and your allotment instructions and purchases portions of a share until you have a complete share in the stock(s) you picked. It was originaly started as an investment tool for children, allowing them to invest small amounts in the stock market while learning about compahttp://www2.blogger.com/img/gl.link.gifnies, shares, etc. The site also has great tools allowing you to watch different stocks, research companies, perfromance, etc. allowing you to make an educated decision without having to visit multiple sites for your information. Check it out. I highly recommend it!

KIVA & PROSPER LOANS

I have one day of bidding left on my Prosper loan listing. My listing has been funded for a bit over 50%... I've got my fingers crossed that in the next 30 hours a bidding frenzy will begin and the loan listing will be filled completely. If not, I'll relist the loan for a longer period of time and possible up my interest rate by 1% and lower my requested amount by a few hundred dollars. Applying for money on Prosper has been a very interesting process. Bidders haven't asked me any questions, which is surprising as the debt-to-income calculator on the site listed me as having a 45% DTI ratio... WHICH IS NOT THE CASE. But despite that, many people have put their lending faith in me. The average bids seem to be between $50-150. One great thing that has happened as my listing runs is that I've gotten a few emails from other prosper borrowers and lenders suggesting opportunities I could pursue based on my profile. I was really surprised by these nice gestures.. and I think I may have found a potential part time opportunity that will add to my income!

On the other side of the micro-finance coin, the New York Times ran an article last week on an organization called KIVA. For a minimum of $25 you can micro-finance a person, family or business in a developing country. The stories of the men and women who benefit from these small loans are really inspiring. Despite being committed to eliminating unnecessary expenses and eliminating my debt, from time to time I try to give some money to a worthy cause. The wonderful thing about these loans is they help impoverished people develop a sense of power and worth. Its not just donating money to the poor. You help them actively build a better life through a business, raising animals, creating craft items, etc. Alot of us forget how lucky we are, and how much we really have. So, this month I plan of becoming a first time KIVA donor... If you would like more info visit www.kiva.org or read the NYT article "You Too Can Be a Banker to the Poor" pdf version on the Kiva.org homepage.

HAPPY MONDAY

It's Monday! It's a new month! I'm ready for a fresh start! Spring has gotten into me today because I am as peppy and optimistic as can be. Despite a rocky end to the week I'm feeling excited about tackling my debt. Here is an overview of whats going on around me...

Health care: at the end of last week I was notified that I was retroactively kicked off my health insurance. I suspect this is because I have continued to battle my health insurance company to resolve my surgery problem and pay some (or all) of the bills. As this process was taking place the company wanted to place a retroactive waiver on my plan, which I did not accept. I was warned that if I tried to fight their decision they may simply decide to cancel my plan. Now, give that I am a good customer, pay my bills in a timely fashion and have no major health problems, I thought this may have just been an idle threat.. apparently I was wrong. So, my bills still stand. I may try to reverse the decision by signing the waiver. BUT, I am taking all of this with a grain of salt. For the past few months I've been overwhelmed with worries about these bills, the health system and how I would overcome all of these obstacles. Now, I can happily say I am calmly dealing with all the various things thrown at me. I wish the outcome were different. I wish I could funnel the money I have to pay to other debts, but no luck there. I am actually feeling EXTRA motivated to get my debts in control because of the surprise health care debt. Hurrah! I needed a good kick in the butt to get me going.

Another point on this topic.. the 2008 elections are right around the corner. Think carefully about the candidates and what issues are important to them. I have always felt our health care system was lacking in comparison to European countries. But the notion was always rather vague in my mind. For obvious reasons, its now taken on a very concrete reality in my life. Think about universal health care and what it would mean to you, me and the millions of Americans who are without insurance or with so little insurance that one problem would send them over a financial cliff. I had a solid insurance plan and it still wasn't enough to keep me out of a prickly situation.

ING Direct Savings: I've opened an account and am ready to earn 4% interest on the money I set aside for taxes each month. I was given a referral by a reader and earned a bonus $25. Contact me if you'd like to do the same! Get that money working for you!

NEED YOUR OPINION - PART 2

A reader took a look at the expense list I posted the other day and suggested I take a look at Dave Ramsey's "Total Money Makeover" as a solution to my debt. I've looked at the Baby Steps section of his site and the numbered list seems like a reasonable way to knock out debt. But, I've also bought and read other financial books (Smart Women Finish Rich, Rich Dad Poor Dad, Young Fabulous and Broke... the list goes on and on). So, my question for my readers out there is: was this book/subscription worth it? Obviously, one needs self-discipline and control to follow through with ANY financial program... but before I shell out my hard-earned money for another guide I want to know your opinions. Was this book as "life changing" as it's touted to be? Does it stand out from the pack of financial self-help books? What was it about his program the really worked or didn't work for you? Help! I need some reader advice...