The Financial Ladder

Protect Your Name Financially...

2012-01-19T20:30:00.002-05:00

Most of us are proud of our names, or at the very least, we take great pains to defend our name in a public setting. Our name is our identity, after all. The rest of the world forever associates us with our name, and anything we do is immediately traceable because of it. Even if you don’t walk around with initial necklaces that spell out your name for everyone to see, your name is always with you and it will continue to define you long after your death.

Since your name is tied to everything you do, it is only natural that this includes all your finances – your incomes, your mortgages, the money you have spent in the past and the money you will spend in the future. Our past experiences go a long way in dictating our credit score, our legal record, and the account attached to any vehicle we have ever owned. All of these things, furthermore, have future implications. If you have a low credit score, after all, you surely are aware that your borrowing options can be limited and your finances severely curtailed.

But how do we synthesize all of our financial history? How do we know exactly where we stand in the eyes of a potential creditor? Why, our names, of course. To track your financial record, all you need to know is your own name.

There are a few places that you want to periodically search to determine that all your public records are in order. Even if you don’t plan on taking out a mortgage or making any large purchases in the near future, it’s always good to know that your identity is fully intact.

Here are a few things that you should regularly check:

-Your credit score. This is the obvious one, and can be viewed for free from several websites such as freecreditreport.com.

-Your public records. You may need to contact a political representative to get access to these, but most people can see their records on genealogy databases, available free at many public libraries.

-Your vehicle ownership history. This is best viewed through a provider like carfax.com.

-Your home ownership history. For this, try zillow.com or blockshopper.com.

-Anything else. Try a Google search for this one.

Searching for your name again and again may seem like something of a chore, especially if nothing comes up. But, if something does, you’ll be more prepared to react and to deal with the situation. It only takes one issue – or, even worse, one mistake – to impede your financial freedom for decades to come.

Old School Ways To Save Money...

2011-11-14T17:55:00.003-05:00

Looking to save money so you can pay off you debts and restore your good credit score? Sometimes you have to get back to the basics and balance your budget the old fashioned way. Here are some old-school money-saving tactics that worked for our grandparents and can work for you:

Bring back the piggy bank

Not many people still have actual piggy banks and I'm not sure why. Not only is it kitsch and fun, it really is a good way to save money. Change isn't regarded the way it used to be. Quarters are the new pennies. In fact, if it weren't for laundry and parking meters it's unlikely we would even use change at all. All the more reason to squirrel that money away into a piggy bank. Let's say you're able to save $5 a week in change. That adds up to a handsome $20 a month that you could easily hedge away into a savings account and watch grow with literal interest. Bank of America took all the fun out of this with their 'keep the change' rigamarole, but maybe they were onto something.

Re-use and cut back

Don't throw away anything except garbage (and even that can be used for a composting worm farm if you really want to get DIY). Cartons, containers, rags, sponges, bags, linens, and jars can all be put to good re-use, eating into ancillary shopping costs. And speaking of eating, cut back on over-consumption. Only put one slice of cheese on your sandwich, stick to just one bowl of cereal for breakfast—and don't use three times the amount of shampoo you actually need to wash your hair. A little bit of frugality and common sense will go a long way toward cutting costs.

Reinstate the swearing jar

Every time you curse you've got to throw in a buck. And, just to make it more relevant to the times, let's go ahead and say that every time you log in to Facebook you've got to throw in a buck as well. That money's going to add up quick and before you know it you've got another savings account, grown simply from your addiction to swear words and social networking.

Start collecting coupons

No matter how much you can't stand people at the grocery store who hold up the entire line with their endless Rolodex of coupons, the fact is if you use them efficiently, coupons can save you a lot of money. However, if you positively can't bear to become 'one of those people', newer services like Groupon and Living Social recreate the coupon experience for the digital age.

There's no end to the advice you can find about saving money and cutting costs, but a lot of it is just a dressed up way to keep you buying stuff. The best way to save money is to do what our grandparents did and count the pennies. We're not in an actual Depression yet, but that doesn't mean we can't act like it.

How to Decrease Your Cell Phone Bill

2011-10-13T17:45:00.003-04:00

The cost of owning a cell phone is exceptionally high when compared to other items that we use on a regular basis. In fact, most cell phone bills exceed monthly utility bills. However, the cost of owning a cell phone isn't usually enough to deter everyone from having one. Instead, they just find ways to afford the smartphone of their dreams – even if it means picking up a few extra hours at work.

Owning a cell phone, however, doesn't have to put you in the red every month though. There are a few easy ways that every cell phone owner can decrease their monthly bill to make it more affordable:

Inquire About Incentives

Many people lose out on receiving discounts on their phones simply because they never ask. If you feel that your cell phone bill is too high, call your service provider. You may find that you are eligible for discounted plans or other services that could reduce your cell phone bill by 15 to 50 percent.

Choose a Prepaid Phone

One of the biggest expenses of a cell phone, is the plan the service provider provides itself. Contracts with service providers are often expensive and binding, and charge outrageous fees if you were to ever need to break your contract. To avoid high monthly fees or expensive contracts, consider getting a prepaid phone. Prepaid phones these days are as high-tech as many contracted phones, and are much more affordable.

Limit App Purchases

Apps make owning a cell phone fun, but they can also quickly run up your bill – especially if you've got kids on your plan. While each app may only cost a couple of bucks, downloading multiples can quickly add $20 to your cell phone bill. To avoid having extra high charges to your already high bill, set a budget for your monthly app purchases.

These days, it seems nearly impossible to get by without your cell phone. However, many would be more than happy to get by with a cheaper monthly bill. Be smart when using your phone, and always make sure to look over your monthly bill for accidental charges. Doing so will not only allow you to fully enjoy your cell phone, but it will also keep a few extra bucks in your pocket for savings.

Reading Bills All the Way Through, Even if They Look Right

2011-10-07T19:59:00.003-04:00

For most bills we get, there’s an accompanying statement. Whether it’s a check at the restaurant, a cell phone bill, or a tuition bill; most will have an accompanying breakdown of charges. Sometimes we read these bills over to check them, when we know exactly how the breakdown should look, but rarely do we exert the same diligence when the situation is reversed.

Restaurant checks and cell phone bills are a case in point. When my wife and I go out to eat, even if it’s just the two of us, I almost invariable glance over the tab before adding a tip and signing my name at the bottom. I check to make sure that each of our entrees are listed, that our drinks are there, if there were any, and that nothing extra has been tacked on. That last point is the most important, because it’s the only reason most people read through their bills – to make sure that they are not being overcharged.

It’s the same thing with my cell phone bill, although I look over the statement less frequently because I never remember every call I made that month. Without a recollection of the details, I’ve always figured, why bother looking the bill over? After all, there’s no way to double-check the phone company’s records if I don’t know what I’m looking for in the first place. As a result, I only find myself looking over phone bills when the total balance seems unusually high. Maybe there will be some suspicious and random long-distance call, which I can then use a reverse phone lookup to track. Or maybe I simply failed to pay the full balance last month.

But there’s something to be gained from looking at a statement even when the bill looks right, and when there’s no suspicious long distance calls, and when there’s no remaining balance from the previous month. You probably know what I’m getting at here.

Just like the act of underlining makes someone more engaged with the writing, the simple act of reading over a statement makes it harder to mentally separate the phone calls you make every day and the check you write twelve times a year. By reading over the summary, and by seeing your charges slowly add up, you can more effectively learn to cut back calls and reduce needless phone expenses. My wife and I have been trying it out. At the very least, it will prepare us to read the bill judiciously in the case when our daughter becomes a teenager. ;0)

Whoa, It's still here!

2011-03-16T10:04:00.003-04:00

I thought this blog was gone. I've been trying to access it for the past couple of weeks, but it stated that the blog was deleted. But to my pleasant surprise, it's still here. Update to come soon!

March Net Worth...

2010-03-17T12:34:00.005-04:00

It's about that time of the month to break out the aspirin and calculator, and crunch the numbers. I was actually quite satisfied with the first net worth calculator in about two years. I thought it would've been worse. In the past two years, we bought a house, had about two children, and put a lot of money into the house. But it seems the value of the house is really helping out. You can see a detailed view by clicking on the picture on the left.

Liquid Assests: We could improve on savings verses spending on unnecessary items, but it feels good to be a little safe and spend a little more. But overall we've done a decent job of preserving our emergency fund cash supply. Unfortunately our cash is only earning under 2%. I've been very lazy with the finances in the past couple of years. I think I could've done a better job with that money.

Retirement: I have a 401K that I contribute 6% of my before tax salary. Unfortunately, my company is going through hard times and isn't matching any of it at this time. We also have a ROTH and Traditional IRA that we've made small and regular contributions to on an annual basis. But since the market hasn't been doing well for the past year or two, it's been reflected in all of the retirement funds.

Immediate Liabilities and Long Term Debt: Most of the credit card debt is our new furnace and central air. That part of the debt is interest deferred for the time being. The other part is a combination of necessary and unnecessary spending on our main credit card. I received our tax refund today, it's going to that today.

About a year after we bought our house, we took advantage of the low mortgage rates and went from a 6% to 5%, helping us out with tens of thousands of dollars in interest. We make little payments towards our principle with reward money from our credit card. That pretty much sums it up. Next I'd like to write up a post comparing out very first net worth 4 years ago, to today's. Climbing the financial ladder, slowly but surely.

Big Layoffs...

2010-03-13T13:46:00.003-05:00

Good thing I wasn't at work on Friday. Our company dropped the axe yesterday. 175 people in the I.T. department alone. Many people who I knew and worked with lost their job and were laid off. Some people that have been with the company for over 40 years. It looks like they went after the people with the higher range salaries. Time to update the resume and make sure I have an escape plan myself. What to do when you're laid off? Here are"30+ websites to visit when you're laid off."

What? You want to save me money?

2010-03-11T19:46:00.007-05:00

About two years ago when we moved into our new home, we signed up for cable TV, cable internet and voice over IP. The cable co. was offering all 3 services for $99 per month for a year, which is a pretty decent deal. I was able to squeeze one more year out of them by trying to cancel my voice over IP service. We don't really use our land line phone since we already have two cell phones that we use and pay for.

I recently canceled the VOIP, and was now paying regular price for all of the services which comes to about $130 per month. I was pretty bummed. That's an extra $360 per year. Until one day, well several days actually of getting calls from a strange phone number. I actually picked up one day and found it was cable company offering the 3 package deal again for $99 per month.

I took the deal, but they'll have to come back out to the house to check on the set up, which is free. That made my week...

Wow, that long?!

2010-03-10T19:22:00.006-05:00

It's really been over 4 years since I started this blog?! I suppose it doesn't really mean much since I only updated it on a regular basis for a little over a year and a half after it was started. But, we're still making and spending money, so I guess we still have much to write about.

My wife and I are still with the same companies in the same positions. We still live in our house we recently purchased in mid 2008. The big addition to our family occurred 4 months ago today, with the arrival of our daughter. It seems we've become a typical middle class American family. A marriage, house, two children and a dog. Oh, and a picket fence in the backyard.

My wife has been on maternity and family leave for the past 4.5 months, so we haven't been saving any money. In fact, we're losing ground on the savings front. We've built up a good amount of credit card debt in the past year, but that includes a new furnace and central air unit. I've been doing our taxes for past 2 years using turbo tax, and it seems this is a good year. Last year we had to pay almost 3k between federal and state. Most likely due to my wife's job not taking enough out. They got hit by the feds for all kinds of tax violations last year.

We're looking to get a little over 5k this year. That return is much needed! Our net worth has been stagnate for the past year and a half or so. Hm, I think that's most of the more important financial info for now. I'll have to calculate our current net worth soon, but I'm afraid to do it. Adios for now.

I'm still alive...

2009-11-13T21:07:00.000-05:00

And had another addition to the family. More to come soon...

Be afraid, be very afraid...

2009-05-14T19:00:00.004-04:00

I'm looking for the courage to calculate and post my net worth. Overall it seems only my retirement funds have been hit the hardest. Savings and home value seem relatively strong. We'll see...

November Net Worth...

2008-11-02T08:05:00.003-05:00

It's been quite a while since I've compiled and posted our net worth. You can view the details by clicking on the picture on the left. Cash savings has gone way down due to the new home down payment and upgrades done to the house. We were lucky enough to get a 10k check as a gift from the wife's relative. That helped cushion the blow.

Naturally the market is way down, as well as the retirement funds. Our house was professionally appraised at 96k more than we paid for it. And according to Zillow, it's worth much more than that. So based on that, I'm keeping the appraisal value. The cars I'm keeping till' the end of the year, until I re-appraise them using the current bluebook value guide.

Overall our debt has gone down. A car loan will go away in a couple of months. That will save us about 265 bucks a month, and a little over 3k a year. Overall, thanks to a home that has over 20% equity, and more valuable than paid for, it's a good net worth. Climbing the financial ladder slowly but surely...

Long time, no see...

2008-10-29T10:25:00.004-04:00

Looks like it's been about 6 months since I've updated my blog. Long time, no see. A lot has happened in that span of time. Like I mentioned in my last post, we were trying to sell our condo and buy a house. Everything went better than planned for the most part. We started the process of buying a home before putting our condo on the market. Then we put our condo on the market, and got a bid within the first week.
The process of selling the condo was smooth, but buying the house wasn't. We bought a fixer upper in a nice area of our county. The schools are top notch, but so are the taxes :-( It's a small ranch which was appraised for $96,000 more than we paid for it. That was a nice surprise. After sinking about 40k, the place looks much better. It was for things like anew roof, new siding, windows, hardwood floors, driveway, patio deck, and other various building materials.
We were lucky enough to have handy relatives on the wife's side of the family. Much money was saved with the help of them. Now we're just trying to stop the hemorrhaging of money. We were pretty loose with expenses for the past several months. We in the process of tightening our belts so to speak. It feels good to have our own property to run around on, about a quarter of an acre....

Another year, another raise...

2008-04-30T12:03:00.003-04:00

It's that time of year again. I recently received my good performance review, and an average raise, 3.0%. That's the same as last year. But I've found that last years inflation rate was 2.85%, so I suppose I'm a bit ahead of the game. Though with the value of the dollar plunging, I'm not sure how that affects our finances of today compared to last year. We're in the process of buying a house and trying to sell our condo, so the timing is pretty decent. We'll be carrying both mortgages, so everylittle bit helps...

April Net Worth Report...

2008-04-04T16:27:00.004-04:00

It's been awhile since I've posted, so here goes. It's about that time of the month again to compile our net worth, Yaaaay, whoo hoo! You can view a detailed report of our net worth by clicking on the pic on your left.

It seems our net worth has increased by almost 20k since our last post in October of 07'. That's approximately a 3k per month advancement, not bad. We're still saving for a house, so our cash accounts are still large and growing. We're in the process of searching for a home now though.

Uh, let's see. We moved my wife's 401k account at her old job into a traditional IRA. We got bit for that one, she was fully vested, so they took back the company match, lost a little over 2k. My company retirement plan was closed and that money was put into my 401k. That's going to be a lot better since the retirement plan was a basic savings account, it'll do much better where it is now.

I'm keeping the house, car, and personal property assessments the same since they pretty much haven't changed. Nothing new to report with credit cards, they're paid off on time every month, and our other debts are slowing getting paid. That's it in a nutshell. We've been fairly conservative with our spending the past several months, but also fairly liberal on spending. Slowly but surely, climbing the financial ladder...

International Blog Cup!

2007-10-14T09:04:00.002-04:00

Looks like someone decided to create a contest for the worlds best blogs @ the "International Blog Cup." It looks like a public voting system that starts with 32 blogs that have been nominated for the competition. It goes through 5 rounds of voting to find the best international blog. You can see a visual of it on the left, click pic.

Many of the blogs I'm not very familiar with. But maybe some of them are your favorites. Some blogs I know in the running... boing boing, problogger, life hacker, perezhilton, seth godin, and the consumerist. The voting is down to the quarterfinals with 8 blogs. Voting for this stage will be open from 10/10 to 10/15. Go vote!

An International Look At Weekly Food Expenses...

2007-10-14T07:59:00.000-04:00

I'm sure most of you out there are familiar with how much your friends and family spend per week on food. But have you ever been curious what someone from another country spends?

I came across an interesting post that highlights a book called "Hungry Planet - What the world eats." It's written by Peter Menzel, and it shows what families from around the world buy, and how much they spend per week on food.

It ranges from a family in Germany that spends an unbelievable $500 per week, to a Sudanese refugee family spending only $1.23! The post has everything set up pretty well with pictures of the family, and what they've bought. It's worth a look...

A Day Late, And $39 Dollars Short!

2007-10-06T16:42:00.000-04:00

One day late with last months credit card payment and they charge me $39.00! Plus a $10 finance charge to boot. $49 is too costly a mistake for being a day late when I've been a long standing customer. A quick phone call and I was able to get the late fee waived, but not the finance charge. Oh well, I guess that's the price to pay for convenience, easier budgeting and various rewards...

October Net Worth...

2007-10-02T18:50:00.000-04:00

My, my, how time does fly! It's been almost 2 months since my last post! I'm going to try to at least keep our net worth posts consistent. I can't believe I missed a month. One missed net worth calculation missed in the past 1.5 years, not bad I guess.

With our son being 5 1/2 months old now, it's been kind of busy around here. Plus we've been doing a little updating to our condo to help the resale value. Doing a little painting here, replacing a vanity mirror there, we hope to put it on the market sometime in the near future.

With my wife back to work part time, we've been doing surprisingly well the past couple of months. We've made a 6.57% ( $10,835.43 ) increase since our last net worth which was early August. That comes to a new net worth of $175,636.87. I think it could be due to the record amount of overtime I've been putting in this year. Though I'm not sure how much longer it will last, things have been getting a bit rocky at my wife's job since their business hasn't been doing so well as of late. We'll just have wait and see...

We've Been The Victims Of Credit Card Fraud!

2007-08-14T10:53:00.000-04:00

Son of a B#$@^!!! I didn't think it could happen to us. All the nice little safety precautions we take to protect our credit cards and credit account information. Several nights ago we received an automated message from my wife's bank that there has been some unusual activity on her account. We logged online to find that someone had made a $3,000 transaction several states away, earlier on in the day!

They also TRIED to use the card again for another $600 transaction, but the alert had already been made, so the credit company wanted the merchant to call in that purchase for identification. We were stunned, nervous, and pissed! Luckily everything was handled quickly and smoothly. We took care of the matter online and on the phone. That money was credited back onto our account, and closed immediately.

We then issued a fraud alert to all three credit bureaus over the phone. We don't really understand how it could've happened. My wife's card wasn't stolen, we haven't been on vacation out of state for a while, and we hadn't made any online purchases recently. A co-worker seems to think that the magnetic strip on the card had been taken with a recent purchase.

We just received the new card with a new account number in the mail. It's been sitting on our desk for a few days now without being touched or activated. I'm not one to say credit cards are evil, but they can be a pain in the ass sometimes...

August Net Worth...

2007-08-05T18:31:00.000-04:00

I'm baaaaaaack. Covered in baby spit up, and diaper ointment, I'm finally sitting down at the computer to run the numbers on our latest and greatest net worth as of August 3rd. The month turned out WAY better than I thought. Our net worth increased 3.09% or $4,941.59, for a grand total of $164,801.44. You can view the entire balance sheet for the year by clicking on the pic to the left.

I'm acting surprised because the wife was out for about 3 weeks on disability due to surgery, and going back to work 4 days a week as opposed to 5 because of the birth of our new son. I think working some overtime, being a little more frugal, and selling some ad space helped out for the month of July. Let's perform a brief review of the balance sheet. With our cash savings slowly increasing to a decent amount, we've recently been house browsing online. Not very happy with a lot of houses and prices we've been seeing, we've decided to wait a bit longer before we get serious at house hunting.

Looks like my 401k will be nearing the 20k milestone soon, I can't believe it's only been a few years since I opened it up. The ROTH IRA seems to be moving with the market which has been down as of late. The company pension plan is crawling along as usual. Our condo and personal property, which consists of jewelry, will always stay static unless we get professional appraisals. I don't feel good about putting my own price tag on things like that. With overall spending down, we've had lower credit card bills to deal with.

As usual, we continue to pay the set payment for any loans we have outstanding so we'll have more money to save for a house. And partly due to that, our emergency fund has increased to a plump 50k. Well, that's all to report for now. Everything has been good on the home front. The wife and baby are both happy and content. Climbing the financial ladder slowly but surely...

July Net Worth Snapshot...

2007-07-02T18:17:00.001-04:00

Looks like it was another rough month. Our net worth increased 1.96% for a dollar total of $3,070.19. My wife was feeling upset that she had to go back to work after maternity leave after about 6.5 weeks. A about a week and a half after she returned, she got a gallbladder attack so bad that she had to have it surgically removed! That meant she would be out of work for another 3 weeks. Well, she said she wanted to spend another few weeks with the baby, now she is! But that also means more disability pay which is something like 60% of the past 15 months salary.

We did pretty well saving and banking a nice amount of cash for our saving account. That's thanks to some nice overtime and some more ad space sold. Nothing more to report than that. Retirement accounts creeping up, while our debts are inching down. You can see a more detailed view of last months progress by clicking the pic on the left. Climbing the ladder slowly, but surely...

Stressful Times...

2007-06-11T16:13:00.001-04:00

Not much to report on the financial front. I've been working on a fairly large project at work that means many hours of work, but many hours of over time as well! The past few weeks has been sort of stressful. Our new son has some wise words from an infants perspective that applies to all ages. (click pic for sage advice) I've found myself scanning the realty sites looking for houses.

We're not 100% ready to buy a house, at least I'm not, but it's good to see where the market is at this point. I'll probably applying for a few pre-approvals and qualifications within the next several weeks just in case we spot a good deal. There are also a few things around the house that need to get done to make this place a little more appealing to any potential buyers.

The next net worth might sting a bit compared to the last one. The wife finally went back to work part time last week, and the disability checks will be a few weeks apart. I'm hoping the extra O.T. and recently sold ad space will help ease the pain a bit....

June Net Worth Snapshot...

2007-06-01T19:29:00.000-04:00

Today's net worth snapshot falls on our new son's 6 week birthday. Six weeks later also means that my wife will be going back to work next week! But a month and a bunch of poopy diapers later, we finally seem to be getting back on track this month with our net worth increasing 2.87%, for a dollar total of $4,374.81.

Two big differences between this month over last month was that we finally started to receive disability checks for my wife's maternity leave, and there were no big credit card purchases. Seems the stock market helped the retirement accounts a bit and the loans are being paid down slowly but surely. We'd like to save as much as possible because we'd like to purchase a house within the next several months to a year.

With my wife going back to work part time until September, it should be slow going the next several months. Oh, and the breast feeding wasn't working out too well for us, so that was stopped about 3.5 weeks ago. We'll have to shell out extra money for formula in the next several months. I believe we save a bit of money on formula by using power instead of liquid though. That, and various coupons I've found through out the net.

That's it for now. Looks like it's my turn to feed the baby...

Advertising Cold Call...

2007-05-18T21:44:00.000-04:00

Last month I mentioned that online advertising spending is supposed to grow to an estimated $19.2 billion dollars this year. The financial services sector in particular will increase by about one third to about $2.4 billion. Since last year I've been experiencing some of this growth by way of google adsense, adbrite, paid text links and posts.

But for the past several months during my daily roams around the pf blogosphere, I would see other sites with a lot more paid text links than my site probably would ever have. I also noticed how eager certain marketing companies are in paying for a text link on a personal finance blog, even my little ol' blog.

I looked into text link advertising networks like linkworth and text link ads. But I figured I'd have to split the profits with them, and I wouldn't wind up with much. Perhaps I could make my own deals and make 100% profit? So I set out on a bold and shameless journey to solicit from some of the companies that were advertising on various blogs.

The first round of e-mails didn't do so well, I didn't receive many responses. After putting together a better sounding sales pitch, and increasing the number of potential advertisers, I finally started to see positive and money making opportunities. I'd estimate I get a response from 30% of the e-mails that are sent out. Most I wind up making agreements with.

I also like the challenge, and the art of negotiating a deal. I'm curious to know if there are any other pf bloggers out there that have done something like this? Have you thought about it, and do you think you will perhaps give it a try? I think the money's there, go for it. I figure I have nothing to lose, and a few extra bucks to gain...

Time For A Raise!

2007-05-10T16:21:00.001-04:00

Yep, it's about that time of the year. Unfortunately it's nothing special, another 3.0% raise this year. Seems as though I'm with in average range for this year. They expected raises to be from 3 to 4 percent last year. I've also found that it's slightly under last years average inflation rate of 3.24%. For some reason I'm not complaining as much this year, I feel more content...

May Net Worth Snapshot...

2007-05-03T12:49:00.001-04:00

Whew, what a month it's been! With the preparation and arrival of our new son, comes a multitude of challenges. From emotional to physical, from financial to intellectual, it's going to be interesting for the rest of our lives.

Well, as to be expected, last month was a bit difficult financially. Our net worth has minutely increased by 0.19% for a dollar total of $294.00. (Click balance sheet on left for more details) The disability money we were expecting to help out while my wife was on maternity leave never showed! The first check was 2 weeks late.

Now we find that we have to fax in a letter explaining the situation so they can stop payment on the check if it's out there, and put a trace on it. After that process, they'll mail us another check which should take another 2-4 weeks! Our 2nd check was mailed out yesterday, so we're hoping that one shows up on time. Due to less savings and paying taxes last month, there was a slight decrease in our cash funds.

Our retirement funds seem to have been following market and did pretty well, they're all up for the month of April. Credit card debt is up much higher than normal due to being used to pay taxes. Well, that's it for now, I'm looking forward to next month since I expect it to get slightly better when we start getting the disability checks on a regular basis, but who knows...

Newest Addition To The Financial Ladder...

2007-04-22T09:19:00.000-04:00

I'm proud to announce that we have a new addition to the financial ladder. Our new bouncing baby boy started climbing with us on April 20th, 2007 @ 5:09 pm. Mommy and baby are both doing well and are in good health. The first financial related question he makes me ask is, what does a natural birth and a 3 day stay at a hospital cost nowa days?

That's not a subject I normally think about when discussing new babies with family or friends. Is there anyone out there willing to share what it cost them to give birth in a hospital, and what the actual cost was? Hopefully both of my wife's insurance companies will soften the hit a bit...

Child-Care Woes and an Imminent Birth...

2007-04-12T09:41:00.000-04:00

I mentioned in a previous post that while my wife and I are at work, my wife's aunt will be watching our child. After further discussion with my wife, I found out that nothing in life is free! Turns out We'll be paying our aunt to watch him. So for approximately 6 hours a day, and about 4 days a week we'll be shelling out $30 a day for child-care.

That comes to about $5,800 a year including vacations. I came to the conclusion that it's only fair, she'll have her two grandchildren to watch as well our newborn. Plus, she'll be spending time, food and energy while she's not 100% healthy. A little research also shows me that daycare center child-care is much more expensive, so we have a good deal.

Speaking of baby, the wife visited the doctor the other day. Turns out if he's not born by next Thursday, they'll induce her that night! So we're possibly looking at an April 20th birth. I'll be taking off of work for about 2 1/2 weeks to help/bond with the baby. Now that a "countdown" has begun, she's scared and I'm nervous. She's also having false labor pains, which usually indicates the birth is near as well, so who knows...

Bigger Online Advertising Budgets = More Money For PF Bloggers?

2007-04-05T13:59:00.001-04:00

Seeking Alpha reports online advertising spending is expected to be approximately $19.2 billion dollars in 2007. An online market researcher named "eMarketer" expects the financial services sector to increase it's online advertising spending by over 33% to $2.4 billion this year alone, and $3.52 billion by the year 2010. It's now one of the biggest online advertisers online.

Could this mean more money for the personal finance, investing and real estate bloggers out there? We do offer a large audience of the type of clientele they're looking for. They are willing to pay big money to the larger personal finance sites out there like yahoo finance, cnn money, aol's market watch, and msn. CNN Money’s display ad rates are $92 - $143 per thousand impressions (cpm)!

We may not get as much of the pie as the big shots out there, but it's there for the taking, and I'm a bit hungry..

I Have a Bigger Salary Than The Co-Founders Of Google...

2007-04-04T08:07:00.001-04:00

For the third year in a row the CEO and co-founders of google, Larry Page and Sergey Brin received a salary of $1. Interesting, and here I am thinking that I'm underpaid. Their main compensation comes from returns on their ownership of google. As major shareholders, their personal wealth is tied directly to the stock price appreciation and performance. Shares of google stock closed Tuesday at $472.60 each. Guess this helps out in between the pay checks...

Taxes, Insurance, a Baby, Oh My!

2007-04-03T16:08:00.000-04:00

Taxes are finally finished and on their way first class. It was an interesting year with us having to actually PAY this year instead of receiving a refund. I adjusted my W-4 earlier on in the year to keep more, and pay less taxes through out the year. Though I may need to do some more fine tuning on it since we'll be shelling out about $1,600 for the year of 2006.

It should be interesting next year with our little tax deduction on the way ;-) Which brings to the heart attack the other day when my wife called me on April fools day to tell me she had the baby! Of course she really didn't, but It was the best scare I had in a while. In reality, she's now dilated 2 centimeters. Could be any day or week now. Oh, and I can't forget insurance on top of the taxes this month. I'm looking at having to pay out several hundred dollars for auto and home insurance this month. Whoa is me...(Que the violins)

Your Personal Finance Skills and Some Sound Advice...

2007-04-02T09:08:00.000-04:00

Times Leader brings to light an interesting study on peoples financial skills, and puts forth some sound advice to help you with YOUR financial skills. The people of Harvard, Princeton and the Federal Reserve came together to compile a report: The Age of Reason: Financial Decisions Over the Life cycle.

After reviewing the financial records of tens of thousands of borrowers, they've basically found that the average person's financial decision-making skills reach it's peak at the age of 53, and then gradually decline.

"We find that younger adults and older adults borrow at higher interest rates and pay more fees than middle-aged adults. For the young, the lack of experience outweighs the sharp mind. With older folks, dimming faculties undermine even a lifetime of experience."

They mention a few simple principles you can keep in mind when making some big financial decisions. Here are some of them:

If you plan on hiring any type of financial consultant..

Get objective advice. That means relying on advisers who have no stake in whether you do what they suggest. A broker who earns sales commissions has a financial incentive to urge you to buy and sell, even if that’s not in your best interest.

Consider hiring a “fee-only” adviser who is paid a flat or hourly rate instead of commissions.

Fees matter. Sales commissions, annual account maintenance fees and other “incidentals” add up.

Or if you are a "do it yourselfer"...

Don’t rush. Whether you are young or old, assume that investments, loans and other financial choices are commitments you will stick with for years, so you have nothing to lose by taking a few weeks to make decisions.

Read all sales materials, prospectuses and other disclosures. Be sure you know your options if things don’t turn out as you expect. Suppose interest rates change or you have a financial crisis? Would you be able to reverse a decision?

I'm not crazy about reading those prospectuses. If you don't either, try a place like morningstar.com or my favorite yahoo finance. If you would also like to see how your financial skills rate, I found a little "financial IQ test" @ MSN.

April Net Worth Snapshot...

2007-04-01T11:19:00.000-04:00

It's quiet...too quiet. This is the sound of the calm before the storm...the financial storm. I'm done paying last months bills, and haven't started paying this months yet. Thanks to the timing of a few financial helpers, this is another net worth record for us ($152,120.85).

This month our net worth has increased by 5.99%, for a dollar total of $8,601.65. You can view the blance sheet on the left, click to enlarge. There are a couple of transactions I made last month that stand out. I sold our I-bonds, and made a contribution towards our Roth IRA. I've had the bonds since Oct 05, and they've done pretty well since then, an appreciation of approximately 6.3%. I wanted to use the money for the roth contribution, and for an upcoming tax payment.

We did pretty well on the saving front due to a extra paycheck, auto insurance payment break, some overtime, and a record amount of blog advertising for the month. There was an interesting increase in my companies retirement plan for an unknown reason, almost $2,000. I'm not fully aware of how the plan works, so I can't explain it. My wife's 401 (k) still remains stagnant. She recently became eligible at her fairly new job, but they say they are making a transition to a new financial firm and they recommended she wait. It's been a little too long, so she plans on lighting a fire under a few peoples butts as soon as she's done with her maternity leave.

Thanks to not having to spend too much last month, our credit card bills have been lower than normal. As usual, all student, auto, and mortgage loans slowly being chipped away. Emergency reserve continues to grow, and is now around a healthy 42k. That's something like one year worth of expenses.

Unfortunately I don't have a positive outlook for next months net worth. Taxes, insurance, a baby, oh my!

That Stork Is Getting Closer...

2007-03-27T10:56:00.000-04:00

As of tomorrow my wife will be 36 weeks along in her pregnancy. It will also be the first day of her maternity leave. The doctor said that she would not let my wife go past 39 weeks in the pregnancy due to the size of the baby...he's in the 85th percentile for his size! So that will be about 3 weeks of leave before the baby, and 6 weeks after. If she delivers by C-Section, it will be an extra 2 weeks. So at the moment she's looking at about 9 weeks of maternity leave time.

She'll be receiving approximately 60% of her work salary during that time. After her time is up, she'll be going back to work part time for a little while. So needless to say, it's going to be financially interesting during the next several months. Thankfully we will be having my wife's aunt watch the baby while we're at work. That was a load off of our minds in many different ways. We'll be climbing the ladder a bit slower, but it'll be worth it.

I have to admit it, I'm more nervous than excited. My wife has a good amount of experience with babies and children. From being a baby sitter when she was younger, to being a "mother/baby" nurse in a hospital, she's really enjoying the pregnancy experience, and REALLY looking forward to the baby. We're pretty much prepared for the baby, from furniture to butt cream!

I've received some help from various classes we've been attending: Pets & Babies, Breastfeeding, and Newborn Childcare. The instructor of the breast feeding class mentioned that the money we'll be saving by breastfeeding, will come to the amount it may take for a vacation. Oh well, Que sera, sera...

Come Get YOUR Money!

2007-03-18T10:10:00.001-04:00

I'm not sure if you've heard, but the IRS has about $2.2 billion in unclaimed tax-refund money for 2003. There are missing filers in every U.S. state, all U.S. possessions, and in all military services. California ranks #1 among all the non-filing residents with approximately 200,000 for the year 2003.

They've also found that New Hampshire tax filers are most likely to get the largest refund, where the median refund is $709. The biggest potential for even a larger refund are the folks in the military who could be banking about $785 each. They still have the chance if they get their forms in by the April 17th deadline of this year.

This is their last chance, any longer and they could forfeit a refund that belongs to them. My home state of New Jersey had about 56,500 non-filers with the potential of about $690 to be received. I wasn't part of that group, and by the look of my taxes this year, I'm going to actually be paying! Check out how much your states non-filers could be making for 2003, click the pic on the left.

Roth IRA Contribution...

2007-03-14T18:25:00.000-04:00

I'm reluctant to mention that I've made a contribution to my ROTH IRA for the year of 2006. It's because it will only be $1000 as opposed to the potential max of $4000. I'm keeping our goal of purchasing a house within a year or two in mind when I make decisions like these.

With this contribution along with my 401 (k) contributions, this will be approximately 7% of our income put away for retirement. Not bad I suppose, but that's running on partial retirement steam, we could do much better.

And unfortunately my wife's new employer restricted her from letting her open a 401 (k) until she was with the company for 6 months. Now that she's finally reached that time limit, they are in the middle of transitioning to a new retirement planner, so they aren't opening new accounts yet. They expect everything to be completed in another couple of months or so.

Though I guess that isn't so bad since I'm banking that money that's not contributed, it's going towards "the goal." Oh well, better something than nothing I always say...

We Were Almost Caught In The Credit Card Trap...

2007-03-09T08:56:00.000-05:00

With all the hoopla going on about NCN being featured on the Jean Chatzky Show on XM radio, I thought I'd share our near "trapped in credit card debt" experience. A few years back, my wife and I had about 2 years to save for a wedding, honeymoon, and a new home! At that time we were making decent money, a bit higher than average for Jersey. But that still didn't seem like enough for what we wanted.

We eventually decided to stretch it out and settle for a nice wedding and a condo. That's pretty much where the money ended, even with all of the wedding gifts. All of the condo updating like paint, new kitchen cabinets, new electrical, new furniture, etc. was paid for by credit cards. Luckily all the cards were newly applied for, and all of them offered zero percent financing for a year. After everything was said and done, we had gotten into a little over $15,000 in credit card debt! We had NEVER been that far into the hole before. For me it was something like 1 or 2 grand at the most, and my wife about the same.

I have to admit, I felt a little trapped. We had planned on saving for a house for the next five years. With that amount debt, I was afraid we wouldn't make it in time. Me being the over anxious and worrisome type, I wanted to climb out as fast as possible. With any hooks, ladders and ropes I could find! At one point I considered perhaps getting a shot term loan at a place like this, thinking I can pay it off much faster and not have the debt show on my credit report, but I didn't know much about them at the time, so I stayed away.

By staying patient, focused and managing our money well, we were able to climb out of the hole in a little over 6 months. After cutting up the cards, we never looked back. Now all credit bills are paid off every month, with no charges, we maintain a excellent credit rating, and we get cash and valuable rewards by using them. Now here I am, trying to climb the financial ladder...slowly...but surely.

March Net Worth Snapshot...

2007-03-01T18:36:00.000-05:00

Youch! This months net worth stung! Due to automobile value re-calculations, baby preparations, and the stock market "correction," we're up only 2.08% or $2,921.96 for the month of March. You can view the full balance sheet on the left for more data. (click to enlarge)

That's a record low increase for us since we've been calculating it for over a year now. But I suppose it's to be expected since it's been about a year since our last car value calculations. Because I slacked on re-evaluating at the end of the year, we took a hit of approximately $1,100.

Let's see, our cash savings increased approximately $2,200. That increase on top of the $1,400 immediate liabilities reduction brings our emergency reserve to healthy $37,665.33. For now, you're always going to see the obligatory large amount of savings, and a slight reduction in debt due to our goal of buying a house within this year, or possibly the next. Don't get the wrong idea, all bills are paid on time, and do not incur any finance charges.

My prediction for next months net worth is pretty positive. Most of the baby preparation is done, and knock on wood, I don't foresee any big bills on the way. Overall I suppose I should be happy about how our net worth has increased in the past year. By cutting the fat, becoming more frugal about life, and conservatively saving, we're climbing the financial ladder slowly, but surely!

Some Amusing Money Quotes To Make You Smile...

2007-02-27T13:46:00.000-05:00

In God we trust, all others must pay cash - American Proverb

Every morning I get up and look through the Forbes list of the richest people in America. If I'm not there, I go to work. - Robert Orben.

When I was young I used to think that money was the most important thing in life; now that I am old, I know it is. - Oscar Wilde

Anyone who lives within their means suffers from a lack of imagination. - Oscar Wilde

Rich or poor, it's good to have money. - Sid Lance

The safe way to double your money is to fold it over once and put it in your pocket. - Frank Hubbard

I'd like to live as a poor man with lots of money. - Pablo Picasso

You can't force anyone to love you or lend you money. - Jewish Proverb

I'm living so far beyond my income that we may almost be said to be living apart. - E. E. Cummings

My problem lies in reconciling my gross habits with my net income. - Errol Flynn

Lack of money is the root of all evil. - George Bernard Shaw

Money frees you from doing things you dislike. Since I dislike doing nearly everything, money is handy. - Groucho Marx

A large income is the best recipe for happiness I ever heard of. - Jane Austen

Most people are to busy earning a living to make any money. - ?Unknown?

Anyone who says money can't buy happiness just doesn't know where to shop. - Unknown

Money isn't everything...but it ranks right up there with oxygen. - Rita Davenport

I've been rich and I've been poor. Rich is better. - Sophie Tucker

It is a kind of spiritual snobbery that makes people think they can be happy without money. - Albert Camus

Many speak the truth when they say that they despise riches, but they mean the riches possessed by other men. - Charles Caleb Colton

Don't knock the rich. When did a poor person give you a job? - Laurence J. Peter

Poverty is a blessing hated by all men. - Italian Proverb

A man that hoards up riches and enjoys them not, is like an ass that carries gold and eats thistles. - Sir Richard Burton

You aren't wealthy until you have something money can't buy. - Garth Brooks

When wealth is lost, nothing is lost; when health is lost, something is lost; when character is lost, all is lost. - Billy Graham

If God only gave me a clear sign; like making a large deposit in my name at a Swiss bank. - Woody Allen.

Money is better than poverty, if only for financial reasons. - Woody Allen

Organized crime in America takes in over forty billion dollars a year and spends very little on office supplies. - Woody Allen

Money was never a big motivation for me, except as a way to keep score. The real excitement is playing the game. - Donald Trump

To make a million, start with $900,000. - Morton Shulman

I am having an out of money experience. - ?Unknown?

With money in you pocket, you are wise and you are handsome and you sing well, too. - Jewish Proverb

Money isn't everything, but it's a long way ahead of what comes next. - Edmund Stockdale

Money is the wise man's religion. - Euripides

Inherited Wealth - Don't Give It To Your Children...

2007-02-20T12:02:00.001-05:00

With a little over 2 months before our first baby is due, my mind has been swirling with tons of financial issues. From "how much is that crib?!" To "holy crap I have to research all of the possible college savings plans out there, I'll be up all night!" From "how much allowance should we provide" to "how and when will I teach our child about money and finance?!" While searching for help on these questions, I came across and interesting quote by one the greats of science, Alfred Nobel.

I regard large inherited wealth as a misfortune, which merely serves to dull men's faculties. A man who possesses great wealth should, therefore, allow only a small portion to descend to his relatives. Even if he has children, I consider it a mistake to hand over to them considerable sums of money beyond what is necessary for their education. To do so merely encourages laziness and impedes the healthy development of the individual's capacity to make an independent position for himself.

This quote was brought on by his decision to leave his wealth for the establishment of the Nobel Prize instead of his children. Only a small portion of his wealth was left to any of his relatives. My philosophy on money pretty much reflects ideas like this one...

Another "Top Personal Financial Blogs" List...

2007-02-07T09:37:00.001-05:00

I recently found that the "Your Credit Advisor Blog" has compiled their own "Top 100 Personal Finance Blogs" list. At first glance it looks like link bait to me, but it looks like they took a little time and attention with this one. They have the list broken down into 11 defined categories, with summaries for each blog. The categories are:

Ask the Advisor's Top 10
Babes, Chicks, and Divas
Dollars and Cents
Finances
General Personal Finance Advice
How to Be a Millionaire
Investing and Business
Money, Money, Money, Money
Savings, Debt, Credit, Frugality and Taxes
Singles, Couples, Single Parents, Families, Retired, or Retiring
Youth/Under-30, College Students, Recent Graduates

My blog can be found under the "Finances" category, which is explained as "All the blogs here are about personal finance, but these are extra-focused."

Are personal finance bloggers mean people?

2007-02-05T06:41:00.000-05:00

Bankrate.com asks "Does money make you mean?" They find that a behavioral study points out that people with money on their minds are less helpful, less considerate and less willing to ask for help or associate with others than those who have not been "preconditioned" when it comes to money. The positive side to this behavior is that money-minded people tend to be more independent, focused and tend to work longer on tasks before asking for help.

A recent issue of "Science Magazine" published the study called "The Psychological Consequences of Money." They used random samples of students and nonstudents at the University of Minnesota, Florida State University and the University of British Columbia. After the groups were separated, some groups were "money primed" and the others received a "neutral primer" to money. The "money primed" group was reminded of money in several ways...

word scramble puzzle that contained money references, a poster depicting different currencies, stacks of play money or tokens, or reading an essay that mentioned money.

Some of the experiments and results...

In the first two experiments, subjects were given a puzzle and told that help was available for the asking, either from the experimenter or a peer who had just completed the exercise. Result: The money-prime participants waited significantly longer than control subjects to ask for help.

In the final three experiments, money-prime participants placed more physical distance between themselves and a participant partner, preferred solitary to group leisure activities and more frequently chose to work alone rather than with a peer compared to the control participants.

After the 9 experiments they didn't quite find that they were mean, more like "socially clueless"

"We didn't find any animosity; it was more of a sense of social cluelessness. They're not mindful of other people. We don't have any indication that they were being rude to these people. It was more 'I can't help you' or 'I don't know how to help you.' Granted, being helpful would be a nicer thing to do, but the intention wasn't to be selfish or mean; they just didn't see that they had a role in this person's life."

So, do any of you notice this type of behavior in yourselves, or among other peers with the same "conditioning" or mindset? I know I'm guilty of a few...

2006 to 2007 Net Worth Compare...

2007-02-04T08:58:00.000-05:00

I mentioned in my last post that February 7th would be one year since this blogs inception. That was also the first time I started to keep track of our net worth on a monthly basis. I whipped up a quick spred sheet to compare last years figures to this years. (click picture on left) The results have me feeling stuck in the middle.

We did well with saving our money and increasing our net worth, but there's a part of me that feels we could've done better. The first category on the list are our various savings accounts. We saw a 127% increase due to our goal of saving for a house.

It was a nice surprise to see that our bonds have increased by 5.74%, which won't be touched by the federal government. Our assets overall have increased by a little over 18%. Not much to say about the liabilities. Slowly chipping them away by 4.56%. We won't be working hard on getting rid of them until we actually get a house. Our net worth overall have a nice size increase of almost 56.5%. Not bad...

February Net Worth Snapshot...

2007-02-03T15:29:00.000-05:00

Where has the time gone? February 7th will be our 1 year anniversary since I made my first post on this blog. Posting has been sporadic, but it's done a lot to help with our personal finances. It's been an interesting month, interesting as in doing lot's of spending and saving.

This month we managed to increase our net worth by 4.26% or $5,750.69 for a grand total of $140,597.24. You can view the balance sheet I use on the left (click to enlarge). The most surprising thing about this month is the amount of money we were able to bank, a little over $5,100.

Unfortunately some of that will be off set by the credit card debt we've racked up. Those expenses include new baby furniture, a wedding shower my wife is in charge of, and various household and auto expenses. Wait until next month when the new carpet we bought hits the books. We've been using the cards in place of cash in a lot of transactions. It's to build up points for various merchandise, and other cash rewards. They're paid every month, so no interest is incurred.

Slight increases in our retirement accounts, and things like house, auto and personal property will stay static until my next net worth calculation. We're slowly chiseling down the auto and students loans, and increasing our emergency reserve fund. Overall not a bad month, I'm quite surprised. Climbing the ladder, slowly but surely...

Cut Your Property Tax?!

2007-01-16T11:27:00.000-05:00

I didn't know it was actually possible. But The National Taxpayers Union reports...

"As many as 60% of homes are assessed for too much. About 33% of property-tax appeals succeed."

The procedures on how to get this done vary, but you normally have 30 to 60 days to file an appeal.

"Ask the assessor's office for a copy of your property card, which documents the information on which the assessment was based. If the card lists the wrong number of rooms or square footage, for example, you may be able to get your assessment changed without a formal appeal."

If the information seems to be accurate, visit sites like Zillow.com and domainia.com to check how your homes assessment compares to the other homes in your area. If you find similar homes assessed at a lower value, that may help you build a stronger case. Pete Sepp from the national taxpayers union recommends...

"If you spot big discrepancies, check your local assessor's office's records for more details on homes with similar features and lower assessments. Or find comparable assessments and explain why your home's value should be lower"

That organization publishes a helpful brochure on How to Fight Property Taxes.

"Some jurisdictions also allow you to submit as evidence market-value information, such as your recent appraisal." Has anyone out there tried this, and has it worked for you?

Bank Of America: Trying to Break the Glass Ceiling...

2007-01-16T11:05:00.000-05:00

A report by Market Watch this morning mentions that the Bank Of America is looking to lift the 10% cap on deposits for all U.S. banks.

"Bank of America is now the nation's largest holder of deposits and ranks as the second-largest U.S. bank by market value after Citigroup."

Bank of America goes on to make a good point for why they would like to lift the cap in order to grow to become a larger force...

"In addition to restricting the growth of giants, the cap keeps U.S. banks artificially small and makes them vulnerable to international acquirers that aren't similarly limited."

"Over time, foreign banks will be in a position to buy U.S. banks."

They're not saying how much higher they'd like the cap to go, or even if the cap should be taken off all together. The banks move to try and lift or even eliminate the cap is being opposed by the Independent Community Bankers of America and other small community banks. But interestingly The Bank of America have a few allies in this matter, like Barney Frank, chairman of the House Financial Services Committee. It should be interesting if they actually do get the cap lifted or even removed. How big could they become, and would that be good for America? I'll wait and see...

A Busy Bee...

2007-01-15T15:27:00.000-05:00

A busy bee, that's been me. I've been working extra over time this past couple of months, the paychecks have been nice. Unfortunately they have been offset by extra big expenses. Holiday spending, and a new patio door. Now we're working on getting a new carpet and recently bought new baby furniture. By the way, we purchased baby furniture manufactured by a company named Babee Tenda. It's supposed to be some of the safest and most durable baby furniture around. They've been around since the 60's with a great track record. Has anyone out there used their furniture or have at least known someone who has? Not much to report in the financial sector of our family. Saving and spending, and repeat....

Man, it keeps getting worse around here...

2007-01-08T20:36:00.000-05:00

In posts here and there I've mentioned that my wife and I planned on moving out of our condo within the next couple of years. That time may be getting closer and closer with all of the problems we've had with this place in the past 2.5 years. Within the first year of purchasing our place, we find that the complex has an issue with the building continuing to "settle" after being built 30 years ago. Then we had issues with our neighbors above us where water was coming through our ceiling.

Recently we had issues with our new neighbors across the way drilling holes in our pipes when trying to install a medicine cabinet! Now we have issues were the patio above our patio isn't functioning properly, and it's funneling water into our patio door and possibly our wall! We're thinking about starting to put a plan together shortly after the baby is born around 6 months from now. Hopefully by the time the place is sold we'll be financially ready to take on a house. In the mean time, we'll have to relax and exercise our patients...

January Net Worth Snapshot...

2007-01-03T17:45:00.001-05:00

Are the holidays over already? The part of me takes care of the finances says hooray! And the part of me that loves friends, family and this time of the year says boooo! The pic on the left side of my post is our net worth balance sheet, click to enlarge. It's the worst net worth increase since I've been keeping track February of last year. I guess that's to be expected due to the holiday shopping, and having a new patio door put in. With all of the overtime I've been working, I expect a nice rebound this month. Wait, we're looking to have a new carpet installed this month, and will be starting to purchase baby furniture...crap.

Looks like we might be in for another sub par month. There's not much really to say about this months net worth. Assests only creeped up due to household and holiday spending, and liabilities creeped down for the same reason. Again, I'm keeping the automobile values static until my next net worth calculation. I've decided to re-evaluate them every year or so. Home value and personal property I'll always keep at that price unless I receive a professional appraisal. Climbing the ladder slowly but surely...

MERRY CHRISTMAS AND HAPPY HOLIDAYS!

2006-12-25T09:58:00.000-05:00

A Merry Christmas and Happy Holidays to you and yours!

Rethinking Poverty...

2006-12-23T11:11:00.000-05:00

I recently came across a wonderful site simply named "TED." It's an acronym that stands for "Technology, Entertainment, Design." Each year TED hosts some of the worlds most fascinating people. Who are these people?

Trusted voices and convention-breaking mavericks, icons and geniuses. The talks they deliver have had had such a great impact, we thought they deserved a wider audience.

A couple of months back they had two speakers who talk about rethinking poverty. Both of them have simple and great ideas on how to help lift up impoverished countries in Africa and Asia. Both speakers gave me a little inspiration and hope for the future of our world...

Acumen Fund founder Jacqueline Novogratz persuasively argues for a new approach to foreign aid: "The question isn't 'how do we fix this?' The question is 'How can we help Africans to do this for themselves?'"

Watch video online here

Iqbal Quadir is co-founder of GrameenPhone, an innovative wireless operator offering services to poor rural villages in Bangladesh.

Watch video online here

Free Things Are Nice...

2006-12-17T10:22:00.001-05:00

...like the Motorola RAZR V3. My current two year Verizon contract expires in a couple of months, and to entice their customers to sign up for another two years, they're offering a discount of $100 off any upgraded phone of your choice. At the moment they're offering the razr for $99! I've desired this phone since it was HOT on the market two years back, and being sold for something like $400!

I guess it wasn't technically free since I re-signed for a two year contract, but I've used Verizon for about six years now with a good service record, so I would've re-signed with them anyway. In the past I've always paid a discounted price, but this time it's totally free, I paid $0.00 this time! I'll be sticking with my current plan of $34.99 per month, 300 mintues for prime time usage, and free nights and weekends. I also receive a 12% discount on top of that offered through the company I work for. It's nothing special, but the service is good and the plan seems to be cheaper than many of my friends cell phone plans, and all the plans offered by verizon now. I'm receiving some of my Christmas gift early...

My Car: Brought Back To Life...

2006-12-12T17:15:00.001-05:00

I was driving home from work the other day, cruising along at about 25 miles an hour, when my car suddenly lost all power!! The car went dead and totally unresponsive. Luckily I was driving on a semi busy avenue, and was able to roll to the side of the road. I was a little surprised since I bought the car brand new back in 2001. Thanks to my car insurer G.E.I.C.O., there was a towtruck there within 45 minutes. Thank god I only needed a jump start to get me going.

Dropped it off at the dealer the next day, and about $100 later found that a ground wire to the frame from the starting system was corroded. The day after that I picked up a a set of jumper cables on sale for $15. Ya never know when I or maybe someone else may need them. This experience reminds me of the days with my prevous two cars which were used, car issues all the time, and AAA on speed dial....

Good-bye Virtual Bank, It Was Nice Knowing You...

2006-12-04T15:10:00.000-05:00

Several months back I opened two virtual bank money market accounts on behalf of my wife and I. At the time I was taking advantage of the high interest rate, and $20 sign up fee. Alas, the 4.60% interest rate has been left behind in the dust, and all of my referrals aren't as popular as they used to be. I didn't like that the money I had sitting in the accounts was earning a lower rate. So for now, that'll leave us with 5 savings accounts, and one checking account...

December Net Worth Snapshot...

2006-12-02T10:52:00.001-05:00

What a difference a day makes, or in our case, 30 days. Thanks to 5 pay periods this month, it's partially a record net worth. Our net worth increased 5.56%, for a record dollar total of $6,937.36. Due to a mistake I made when opening our new E-loan savings account, we missed the percentage record by .01%. It seems I stated on our application that we're subject to federal tax withholding, which meant they took out a few bucks out of our savings this month. But after a quick phone call and e-mail, that should hopefully be corrected by next month.

It seems the biggest jump on our balance sheet was made in our liquid assests catagory, with a plump $5,000 increase. Retirement was up a bit, and I kept our home value, car and jewelry static until at least the next net worth calculation. The home value will pretty much stay the same ulness I get an official appraisal, I don't put much faith in my real estate guesstimations. The car values I'll have to relay on Blue Book for, and the jewlery which constitutes my personal property, will be appriased for insurance purposes within the next few months.

There's the usual slight decrease in our liability catagory, due to our goal of purchasing a home within the next few years. The credit cards are always paid off on time every month to avoid finance charges. Minimum payments are made on our auto, school and mortgage loans every month. Our emergency reserve continues to fatten, while our debt to load ratio shrinks. You can view the balance sheet by clicking the pic on the left. Thanks to another good month, slowly but surely, climbing the financial ladder...

Snips And Snails, and Puppy Dog Tails...

2006-11-30T18:48:00.001-05:00

My wife and I recently visited the doctors office for our 19 week sonogram appointment. It's the one where they check EVERYTHING. From fingers and toes, to cleft lips and any heart deformations. Turns out everything looks fine and we're having a BOY! We didn't really have a preference, only for a healthy and happy baby. Though I have to say whew! You see, my paternal line is pretty thin. My great grandfather was the only male of seven children, my grandfather the only male of four children, my father was an only child, and I'm my fathers only son. When searching the net for articles on the cost of raising a child nowa days, I came accross Bankrates baby cost calculator.

According to them it's going to cost about 190k to rasie a child until the age of 18! That's hard to believe. With this one being our first, we talk about having a couple more. Does that really mean about 600k? I'll have more time to pay off a mortgage than raising children. Can you say hand me downs, and peanut butter and jelly sandwiches? Oh well, so far it's worth it. It's a wonderful time in our lives, and I can't put a price on that....

Retriement Portfolio: 401 (k) Asset Re-allocation...

2006-11-26T11:42:00.000-05:00

In a post long ago, I mentioned that I intended on creating a less expensive, and better performing 401 (k) portfolio. Well, I finally got off my butt and did it. Unfortunately my options were limited to Prudential Financial's 9 mutual funds, one fixed income fund, and my companies stock. Those mutual funds had an average expense ratio of 0.92% and a front load of 4.61%, not that bad I suppose, I've heard of worse options.

I wound up dropping CABDX, SPVAX, and MIGFX. My portfolio in particular averaged an expense ratio of 1.07% and front load of 5.30%. I kept AEPGX, LAVX and obtained an index fund, PDSIX. No load at all, and it has an expense ratio of 0.30%. Nowa days my portfolio is averaging an expense ratio of 0.73% and front load of 3.83%. The funds I now have, average a five year performance of a little under 11%, and ten year of a little over 12%.

I'll try my best to re-balance every quarter, and at the least every two quarters depending on how each sector of the economy, and the funds perform. Next I'll have to research my wife's 401 (k) portfolio, to find the best value for our money. That should be fun playing with 17 different funds ranging from Vanguard's 500 index fund to Dodge & Cox's Stock fund!

The Forbes Richest Fictional 15?

2006-11-23T06:21:00.000-05:00

Wow, Forbes has a rich list for everyone, even people that don't exist. So of all of the fictional characters you've seen in movies, shows, stories and even cartoons, who do you thinks tops them all at #1? Is it Richie Rich? No, but he's up there. Then it has to be Thurston Howell III from Gilligan's Island?! Nope, not even close. Ah ha! It's Mr. Monopoly! NO, but getting warmer....Forbes Fictional 15

50 Leading Women to Watch in 2007...

2006-11-20T18:07:00.000-05:00

Today the Wall Street Journal Online reports on something very interesting, the new breed of women moving up the ranks to the top of the worlds biggest companies. They find that women held 16.4% of the Fortune 500 corporate-officer job in 2005. These jobs include positions of vice president or higher that require board approval. That was a 0.7 percentage higher since 2002. The same survey found that woman made up 6.4% of the top five earners among officers which is a rise of 1.2% in the same period.

Women of color -- African-Americans, Hispanics and Asian-Americans -- held just 1.7% of corporate-officer positions in 2005, and were 1% of the top five earners at Fortune 500 companies.

All these people have one thing in common: They're breaking stereotypes about what women can and can't do well, and opening up new opportunities for women who will follow them.

Melinda Gates tops the list of the top 50 women to watch next year.

FESTIVAL OF UNDER 30 FINANCES: # 10

2006-11-17T10:52:00.000-05:00

Today's super fun "festival of under 30 finances" will be @ Tired But Happy. Today's submissions cover subjects ranging from issues with room mates to spam that saves you money. From credit cards teaching youth about personal finance to 5 lessons that a millionaire taught me. So be there or be square!

Moving the power cord out of the wall, and into our wallet...

2006-11-14T14:54:00.000-05:00

Well, it's that time of the month again. Time to see how we did with saving on electric. Well, only a little, but that's better that having to shell out more this year than last year. Since the wifey is pregnant, we've been using more heat so far this year. I'm guessing that's going to be a big factor in our electric bill in the next several months. More heat, more stove usage to due to the increase of cravings, and eventually air conditioning. We're starting to take a few more steps to help energy efficiency around the house. We're going to replace our patio door within the next few weeks, and that'll help a lot. Something like 20-30% of savings on energy use a year We've been told. Luckily we have friends who have contracting businesses, so it'll cost less then using someone else. The money we save on electricity, is helping power our savings!

Exercise Your Right To Vote...

2006-11-07T15:14:00.000-05:00

Vote now, and vote often...

Thanks E-Loan, That Was Fast And Easy...

2006-11-02T16:44:00.000-05:00

On Monday I mentioned that I decided to open another savings account, this time @ E-Loan. I logged in today to find that the very next day my $5,000 initial deposit was already transferred and in the new account! I also noticed that the verification deposits had already been deposited and debited, the next day. I've already initiated the money transfer only two days after opening the account, not bad. This is probably the easiest online savings account opening I've had...

November Net Worth Snapshot...

2006-11-01T17:20:00.001-05:00

Not a bad month, I'll take it. This month we find that our net worth has increased by $4,862.26 or 4.05%. And by the looks of it we probably could've done better if we tried. We spent more than the average on dining out. Not much out of the ordinary on this one. I noticed that our debt to load ratio is down almost 10% for the year. According to some experts, the debt-load ratio should be around 35%, and most of it should consist of the mortgage. Looks like it'll be a couple of years before we're there. The emergency fund is growing nicely, that'll come in handy with a baby on the way (due date April 25th). This is the another month with our net worth increasing over 4%, which is pretty nice. Climbing the ladder, slowly but surely...

I Couldn't Resist...

2006-10-31T17:11:00.000-05:00

...opening up a savings account @ E-Loan.com. I've been debating it ever since I heard their interest rate was boosted to 5.50% last month. That rate is better than many of the CD's out there. We have several online bank accounts already, so I didn't want the hassel of opening another one. Plus I've been thinking about testing the waters with T-bills. But calculating the rate and dollar difference between a possible E-loan account and our exsisting Emigrant account, I couldn't resist. That's a .45% difference between 5.05% Emigrant and 5.50% E-loan, or $180 annually. And seeing that we save every month, that figure will only rise. The only thing I'm worried about now is what the Federal Reserve will do with the interest rates in the coming months. With the past several decisions pause on the interest rate, and word of inflation on the rise, I'm not sure where they're heading. And whatever happens, will E-loan stay ahead of the pack? We'll just have to wait and see....

Wages & Benefits Racing Upwards...

2006-10-31T09:38:00.000-05:00

The Associated Press reports that wages and benefits paid to American workers are up in the July to September period. It's the fastest pace in more than two years. Here are the juicy bits...

The Labor Department reported that its Employment Cost Index was up 1 percent in the third quarter, compared to a 0.9 percent rise in the April-June period. It was the biggest quarterly increase since a similar 1 percent rise in the second quarter of 2004.

The increase, which was above the 0.9 percent rise that economists had been expecting, was led by a big jump in the cost of employee benefits such as health insurance and pensions.

For the third quarter, benefit costs rose by 1.1 percent, up from a 0.8 percent gain in the second quarter. Wages and salaries were up 0.9 percent, matching the increase in the second quarter.

Officials at the Federal Reserve are watching closely to see whether wage pressures are beginning to accelerate, a development that would give workers' more money in their paychecks but could fuel unwanted inflation.

The Fed is hoping that its two-year campaign to slow the economy by raising interest rates will do the trick to send underlying inflation rates lower without slowing growth so much that the economy topples into a recession.

For the 12 months ending in September, overall compensation costs were up 3.3 percent, compared to a 3 percent rise for the 12 months ending in September 2005.

Wages and salaries are up 3.2 percent over the past year, a significant rise from the 2.3 percent gain for the 12 months ending in September 2005. Benefit costs, however, were up 3.3 percent for the year, down from a 5 percent rise for the year ending in September 2005

Suggestions for minimizing your drug costs...

2006-10-23T17:37:00.000-04:00

For those of you who have medicare prescription drug coverage, or know someone who does, this one's for you. http://www.kiplinger.com/columns/ask/archive/2006/q1023.htm answers a question from a reader who states she's reached the "doughnut hole" (the first threshold for medicare part D which is $2,250) and would like to know how to keep costs down after that. Medicare part D covers most of your drug costs up to $2,250. That includes deductibles, your co-pay, and the insurer's share of the cost. After that, you hit the "doughnut hole" or the coverage gap. After that you'll have to pay 100% of the cost of your drug bills until your total out of pocket goes to $3,600. Then the plan will cover 95% of your bills. The "doughnut hole" thresholds will be $2,400 and $3,850 by next year. To help minimize your out of pocket money between the thresholds....

Ask your doctor about generics. You can save money in the doughnut hole and get better coverage within your plan beforehand. Many plans, for example, charge only a $5 co-pay for preferred generic drugs but increase the co-pay to $30 for preferred brand-name drugs, or $60 for non-preferred brand name drugs until the total drug costs reach $2,250. And most plans that provide coverage in the doughnut hole cover only only generic drugs while in the coverage gap and require you to pay the full price for everything else.

Try different medications. Even if your drug doesn't have a generic equivalent, another medication that treats the same condition could cut your costs. If your plan has enlisted PartDOptimizer (several of the big Part D plans are included), you can compare the costs for similar drugs. Ask your doctor if you can safely switch drugs.

Buy in bulk. Many plans give you a discount if you buy a three-month supply of drugs at once.

Find a cheaper pharmacy. Wal-Mart and Target have announced that they will sell many generic drugs for $4. Your plan also may offer special discounts for preferred mail-order pharmacies. Also, check DestinationRx.com, which compares drug prices at various pharmacies. Make sure these pharmacies are included in your Part D network. Otherwise, the purchase may not count toward reaching the end of the doughnut hole.

Consider Canada. Buying drugs from Canada doesn't count toward the $3,600 to reach the end of the coverage gap, but it can lower your drug costs. Two new rules have eased the restrictions on drug imports. Americans now can carry a 90-day supply of drugs from Canada without being stopped by customs agents. And government officials recently announced that they will no longer seize mail-order prescription drugs from Canada.

Get help. If your income is below a certain level, you can get extra help paying for your prescription drugs. For more information, see Bridging the Coverage Gap at Medicare.gov. Also see the resources at the Medicare Rights Center's Help Paying For Prescription Drugs.

The open enrollment for 2007 plans runs from November 15 to December 31.

Blog Monetization...

2006-10-22T21:24:00.000-04:00

I've recently been doing a little research on blog monetization and have found some interesting discussions on it...

Darren @ Problogger.net: How Bloggers M ake Money From Blogs
Money Blog network: Blog Monetization
Washington Post: Make Money Off Your Blog
Know More Media: When Does Blog Monetization Become Excessive?
Bloggers Forum: Blog Monetization

Every little bit adds up...

2006-10-15T11:38:00.000-04:00

The electric bill recently arrived and I was pleasantly surprised to find a $43.61 savings for the Month of October. With the average temperature down by 5 degrees, we only used 261 kwh. That's 365 kwh less than last year. That brings our total savings for the year to $223.05, see image on left. At this point of the year, our average electric bill is $89.41 as opposed to $104.02 last year. Every little bit adds up...

The New Richest Self Made Woman In The World...

2006-10-11T15:31:00.000-04:00

Is a paper recylcling tycoon from China named Zhang Yin. The 49 year old is the founder of the "Nine Dragons Paper Co." Her self made fortune of 3.4 Billion US dollars, puts her ahead of Oprah Winfrey and J.K. Rowling. The company buys scrap paper from the US for use in China.

Sometimes saving is the best investment...

2006-10-05T17:39:00.000-04:00

I just received a letter from my credit union (mortgage lender) with my new escrow schedule for the next year. It turns out our payments will be about $40 less each month! That's comes out to a savings of about $480 a year! This will be the 4th thing that we will be saving on this year. First it was my car being paid off in June, savings per month $242.47, and for this year $1454.82. Then the electric bills, about $20 bucks a month, $156.00 so far this year. My wifes cell phone bill, about $40 a month, estimated $240.00 for the rest of this year. Now with the escrow adjustment, it'll be approximately $1950.00 saved this year. That's not including all of the other little things we've been doing to save like bringing lunch from home, coupon cutting when food shopping, shopping around for a better deal, etc. It seems like saving could be one of the best investments...

October Net Worth Snapshot...

2006-10-03T11:16:00.000-04:00

It seems as though all of the "financial" moons have aligned to make this one of our best net worth increases to date. Our net worth has increased by a record 5.57% or $6,332.56 for a total of $119,927.21. To tell you the truth, at first thought, I don't really know how we did it. It's probably several factors that happen to fit well together at this point in time. First off, I've started to add all of the small stuff into our net worth, like any cash we may have in our wallets, money in the change jar, uncashed checks, etc. It may not be much, but every little bit counts.

Ah, now I remember, how can I forget? I busted my butt working some overtime this month, and it looks like that really helped. Hm, let's see, we finally received our "New Jersey FAIR home owner rebate" just in time to be calculated. Received a little extra chunk of change from selling on half.com and some ad space on the blog. There's also been a slight increase in the retiremtent accounts due to the market doing pretty well. It seems now that the summer is over, we've generally have been spending less money on eating out, vacationing, parties, etc. It seems the fat check I wrote for a recent wedding hasn't been cashed yet, and the maintenance fee bill for our condo is running late. Again, we didn't have to pay any auto insurance premiums this month, as well as my wife's cell phone bill. So, overall a great month. Slowly but surely, climbing the financial ladder...

Health Insurance Costs Outpacing Inflation...

2006-09-26T16:07:00.000-04:00

The associated press is reporting that health care costs will be going up this year by 7.7%, twice the rate of inflation. That's the smallest increase since 1999. Since 2000 health insurance premiums have been raised by 87%, while wages are only up 20%. A survey done by "The Kaiser Family Foundation" finds that more that 155 million American's obtain their health insurance through they're employer. On average those employers pick up 84% of the cost for individuals, and 73% for families. employers pick up 84% of the cost for individuals, and 73% for families.

I guess it's not a surprise that since 2000, the percentage of companies providing health insurance has gone from 69% to 61%. But they also find that number has been slowing as of late with the smaller businesses. The average cost of health insurance for an individual is $4,242, while families are paying $11,480. It's estimated that 2.7 million workers are enrolled in high-deductible plans with a savings account. employers pick up 84% of the cost for individuals, and 73% for families. employers pick up 84% of the cost for individuals, and 73% for families.

Employers or employees get a tax break when they put money into those accounts. Another survey finds that 167 large corporations expect raising health care costs, about 6%, which is way above the expected inflation numbers. Another one of the many reasons to become, be, and stay healthy...

If only I had a dollar for every name in this book...

2006-09-26T13:41:00.000-04:00

Currently reading...

This complete baby naming resource includes more names and more helpful features than any other book on the market:

Over 100,000 baby names and their meanings, derivations and famous namesakes
5,000 Hispanic names.
Icons to identify names used for both genders, and to indicate whether they're used evenly, more for boys, or more for girls.
Updated lists ranking the 100 most popular names for boys and girls in 2004
Top-hundred ranked names are starred in the main text of the book.
A new introductory chapter by Bruce Lansky: "How to Pick A Name for Your Baby"
300 helpful lists of names to consider, including famous authors, actors, athletes, artists, scientists as well as lists of names that convey an image: attractive, smart, competent, friendly, wimpy, etc.

Wedding day...

2006-09-23T12:51:00.000-04:00

Today my wife and I will be attending a co-workers wedding and reception. It'll be one of three we will be going to in the next several months. And two of them we'll actually be participating in! Needless to say the frugal angel on my shoulder is wondering how much this is going to cost. We typically give about $200 bucks from the both of us. That's normally the approximate cost of a plate nowa days. And in my friends case, his future in laws will be paying for it, so that's 100% profit. How much do you typically give at weddings?

You're Fired...

2006-09-19T14:26:00.000-04:00

That's what a former co-worker heard last week. It's not often that some one is fired from our department, but it does happen. That's what happens when you frequently call out sick, and come in late. The good and bad of this for me is more overtime, one of the reasons I haven't been posting as much recently. I'm actually hitting an all time high this year in overtime. With a baby on the way, we need all the help we can get...

Wallet cooling down as the summer heats up...

2006-09-11T18:13:00.000-04:00

...Well, at least for our electric bill. We saved $23.40 for the month of September from last year on our electric bill. That translates into using 226 kilowatts per hour less for the month. Since January it's a total savings of $179.44. That's very surprising since the average temperature for last month was 98 degrees! According to electric company that's up 18 degrees over last years temp.

A child's allowance: How much and when?

2006-09-07T17:01:00.000-04:00

Janet Bodnar @ Kiplinger's writes about how she's big proponent on giving children an allowance and asks, how much and when? She points out that certain experts say that you should start to teach your children about managing money around the age of 3 or 4. Having three children of her own, she feels that too young.

"I believe in keeping kids young as long as possible and not pushing them into things they're not ready for. And most pre-schoolers are too young to understand the abstract idea of money. They'll choose a nickel over a dime because it's bigger, and they have no idea how far $1 will go."

She believes at ages 6 and 7, children are more mature and will most likely be learning about it in school. She also believes that buying gifts for their friends at age 7 or so is too young to be making decisions about things like that.

"they should be getting a seasonal clothing allowance by age 9. Kids should definitely take on those responsibilities, but I'd recommend waiting until middle school for the gifts and high school for the clothing allowance."

Do you have children? How much and when did you start with the allowance system?

When is the best time to buy...well, everything?

2006-09-06T06:45:00.000-04:00

Kelli Grant @ Smartmoney writes about the best time to buy EVERYTHING. She points out that bargain lovers know there's a smart time to buy anything and everything. Shopping for a car, and looking for a good deal? Go on the weekday mornings in September. Looking for cheaper groceries? Check them out on a Sunday evening. They talked to the experts to find the best time to buy everything from Airplane tickets to wine. The article goes on to mention 15 different things to buy at the best price and at the best time. Here are a few...

Computers and electronics
When to buy: Just after a new model is launched.
Why...

Cars
When to buy: Weekday mornings in September.
Why...

Clothing
When to buy: Thursday evenings, six to eight weeks after an item arrives in stores.
Why...

Gas
When to buy: Early morning or late evening on a weekday.
Why...

Baby Clothes
When to buy: During your pregnancy.
Why...

Survival in a one income family...

2006-09-04T10:16:00.000-04:00

Terri Cettina @ Bankrate.com writes about "How to survive as a one-income family." What a coincidence, my wife and I were discussing that after finding out the good news. With a baby on the way, we started to discuss what we'd do after the child is born. We feel child care before starting school is very important. So what do we do once my wifes maternity time is up? We have several options available...

Daycare: We'd like to try and avoid this option as much as possible. Between not being comfortable with strangers taking care of our baby, and the cost of daycare, this will have to be a last resort.
Family members and close friends: We have several people in mind that may be able to watch our baby while @ work. We'll only need someone to watch the baby 4 days a week, from around 9 in the morning to about 3 or 4 in the evening, about 6-7 hours. So hopefully that may make it easier on whomever is willing to help us out. My job schedule is flexable, so I may be able to shrink it down to 3 days a week.
Change of work schedules: Like I mentioned, my schedule is flexable. If need be, I can watch the baby during the day and then my wife during the evening while I work. We feel this may be tough on the marriage, so we'd like to make this next to the last resort.
Wife quits job: This is another tough decision. The wife is the one with the bigger salary, so it would be financially tough to live on only one income. We haven't run the numbers yet, but I believe we may be able to do it for a while. We're currently saving for a house, and plan on purchasing one in about 3-4 years. If she quits, it will really delay things. Another reason for moving is to find a town with a good educational system. The city we currently live in...does not.

The bankrate article gives 5 tips/suggestions on how to check if your family can survive on one income...

1. Track actual expenses for one to three months.

2. Try living on the working spouse's income for three months.

3. Get insurance, update wills, consider a home equity line of credit.

4. Check into tax implications.

5. Don't put off retirement planning.

Pregnancy Announcement...

2006-09-03T14:46:00.000-04:00

I hinted in a previous post, but would now like to make it official, we're pregnant! Which brings me to enlisting your help. The wife is only about 6 weeks along, but we were kind of excited so only made the announcement to some close family and friends. We're still debating on when making the announcement to everyone, other family and friends, co-workers, etc. Many people are superstitious and think it's bad luck to announce it before the first trimester has ended. We're stuck in the middle. It looks like that superstition is based on the fact that... "About 15 to 20 percent of known pregnancies end in miscarriage, and more than 80 percent of these losses happen before 12 weeks." I've also heard that percentage may be higher with first time pregnancies, and having a mother who has had more than one miscarriage. When telling close family and friends, we knew if anything happened, they would understand. But some people say whatever happens, will happen know matter who you tell, so why not? What do you think, and what did you do with the announcement of your first child? This question is for both women and men, with and without children. I've also created a little poll in the lower right side of he blog for you to vote. I'd also like to hear your comments on the situation.

September Net Worth Snapshot...

2006-09-03T10:40:00.000-04:00

It was truly a fight last month between saving and spending. It was close, but saving wins the month! Saving needed some help by the extra paycheck for the month, and some overtime, but it stands victorious this round. Our net worth increased $4,063.06 to $113,594.65 or 3.71%. I was expecting a better number due to the extra payweek, no car insurance premium this month, and my wifes cell phone bill to be paid by her new job. But she won't be reimbursed for that until this week, so that's a little over $250 out of our pockets for now. The cell phone plan has been adjusted, and should only be around $80 for the month..and paid by her employer. The overall net worth has also been helped by the market improvement, with slight increases in all of our retriement funds. If you noticed the wifes fund sitting still for the past several months, it's because with her prevous job she had to be employed for a year before being able to roll it over and start contributions again. Now that she has recently started a new new job, we'll have to wait a little longer. If you notice, we have plenty of cash along with plenty of debt, i.e. auto and student loans. It's because we're saving for a house. We moved into a condo 2 years ago with the intentions of saving and buying a house in about 5-7 years. And between having a 5-1 ARM mortgage loan, not living in an area we're used to, living on the first floor of a 3 floor building condo, we're pretty motivated! Don't be fooled by the credit card debt, it's paid off on time, every month..no finance charges. We use the cards for pretty much any type of expenditure, from a pack of gum, to groceries, to car repairs. It helps pay for entertainment expenses like, movie rentals, movie theater visits, and some cash gift cards here and there. Slowly but surely, climbing the financial ladder...

Currently Reading...

2006-08-29T19:26:00.000-04:00

Hamilton went on to oversee the creation of the First Bank of the United States, the ancestor of today's Federal Reserve. Even more important for America's future prosperity were Hamilton's plans for government-encouraged industrial capitalism. "The magnitude of Hamilton's feats as treasury secretary has overshadowed many other facets of his life: clerk, college student, youthful poet, essayist, artillery captain, wartime adjutant to Washington, battlefield hero, congressman, abolitionist, Bank of New York founder, state assemblyman, member of the Constitutional Convention and New York Ratifying Convention, orator, lawyer, polemicist, educator, patron saint of the New-York Evening Post, foreign-policy theorist, and major general in the army," writes Chernow.

A Little Yellow Basket...

2006-08-26T15:53:00.000-04:00

For the first time I'm actually going to apologize for the lack of posts. I'm doing this because I suprisingly have several people that subscibe to my feed! A lot has been going on with the two of us. Don't worry, it's positive. I can't announce it right now, but I'll give a little hint. I believe there's a song that goes..."A trisket, a trasket a little yellow basket..."

Gas under $2...and then you wake up...

2006-08-21T11:25:00.000-04:00

Tamara @ Banktrate asks "Will American motorists ever again see gas under $2 a gallon?" She finds that some experts say "no" over the short term. They point out that it's due to the recent history, along with the current economic and geopolitical conditions. But over the long term it's a definite maybe. An expert says that if the U.S. became serious about investing in alternative fuel sources, oil producing nations would cut the price of oil in half! The present prospects for alternatives are Biodiesel, ethanol and hydrogen. But this year Saudi Arabia announced that they will be trying to get to it's "hard to reach" oil reserves. It's said that "the oil is heavier than that which is currently used, and it requires special equipment to get it out of the ground and to free it from impurities." If the they are successful, in four or five years, they might have much more oil coming online. Other options are the oil sands of Canada, an area in the northern part of Alberta. But that spot as well will have oil that is hard to reach. Many projects have been started to increase the global supply. "A major shift in the global economic climate could also cause gas prices to trend downward. " One of the main reasons for higher gas prices is an increasing demand for oil. They say that American consumers and car buyers can play a role in gettnig gas prices to decline. Interesting...

Gobs of reasons to be debt free...

2006-08-18T08:05:00.000-04:00

Well, more like 50. Steve Bucci over @ Bankrate finds 50 good things about being debt free. Here's a sneek peek...

#4. Never being required to spend money you have not yet earned.
#7. Having a savings cushion for emergency expenses.
#16. Knowing how to create a realistic budget.
#20. Setting a good example for your kids.
#26. Reading a statement that reads "paid in full."
#29. Never having to pay late fees.
#32. Sleeping better at night.
#43. Experiencing the joy of living below your means.
#45. Being able to prevent financial problems before they happen.

My money is safe at Chili's...

2006-08-17T11:45:00.000-04:00

In a weak attempt to help prevent credit use by an unauthorized user, I have "check ID" written on the back on my credit card. I started doing it on this particular card about 3 months back. Well, today after enjoying a delicious dinner @ Chili's bar & grill, I saddled up to pay the bill and was surprised when asked for my ID! That's probably the first time out of approximately 100 times used. So roughly 1% of the time I may be safe from unauthorized credit card use. For more tips on preventing credit card theft/fraud, check out the "Federal Trade Commission."

Saving energy, saving money...

2006-08-16T15:44:00.000-04:00

It's been a couple of months since I've posted about our electric bill savings, and since I recently received the bill, nows my chance! (check chart on left) It looks like becoming more aware of energy consumption, we've saved over $156 compared to the previous year. With the exception of a few months, not bad...

August Net Worth Snapshot...

2006-08-03T11:30:00.000-04:00

I have to admit, I was a bit reluctant to calculate a net worth this month. It seemed like a tough month between the extra summer spending, medical bills, and auto insurance premiums. But to my relief the gain wasn't so bad this month. This month we made a gain of $3,375.80 or 3.18%. Not having an extra auto loan payment, and my wife's new job probably helped a bit. I don't want to jinx myself, but I'm looking foward to the rest of this month. 5 pay periods, one less auto loan payment, wifes new job, which means more money, no more car insurance premiums, hopefully not many medical bills, and my wife's cell phone bill will be paid by her new employer. Still climbing the financial ladder...

Minimum Wage To Be Raised By 2009...

2006-07-29T17:27:00.000-04:00

Today Reuters reports that the House of Represenetives voted 230-180, to raise the minimum wage to $7.25 by mid 2009. It will be raised 70 cents in three steps by that time. The current minimum of $5.15 has been in place for almost a decade. I'm not certain what the effect will be on the economy, some experts have their theories...and some, other theories.

Pay Raises Vs. Inflation...

2006-07-27T17:16:00.000-04:00

A few months back I mentioned that I received a pay raise of only 3%. I pretty much wined about it actually. I see that I may not be the only one that's received a raise that's not beating inflation. The associated press mentions that pay raises are struggling to outpace inflation this year. A recent survey shows that U.S. employers are planning to increase base salaries by 3.7%, which is a bit higher than last years 3.6%. As of right now the projections for inflation are 4.7% this year. That's more than 1 percentage point over last years 3.4%. And it looks like companies will be relying less on pay raises, and more on year end bonuses which help keep good employees without raising fixed costs. Of course industries that are planning the bigger pay raises will be the energy companies, which will be giving raises averaging 4.8%. Running right behind them are the legal and accounting sectors who plan on 4.5% increases.

New Jersey FAIR Homeowner Rebate Surprise...

2006-07-24T14:13:00.000-04:00

New Jersey has the highest property taxes in the United States. In order to relieve some the this tax burden, they have several programs in place. Among them is the annual "FAIR homeowner rebate." We didn't qualify for the rebate last year, because we purchased our condo in late part of 2004. I was pleasantly surprised by the application in the mail the other day. The deadline is August 15th, so I made sure to fill out the rebate application online later that night. Turns out we won't be getting the money until the fall of this year. With our age and income, we are eligible for a $250.00 rebate this year. Not a bad surprise...

Federal Reserve Nearing The End Of It's Economy Nature Trail Hike...

2006-07-19T15:34:00.000-04:00

Federal Reserve chairman Ben Bernanke hinted that they may be nearing the end of the long interest rate hike. The federal fund rate was rasied .25% last month to 5.25%, making it the 17th consecutive hike since the end of June 2004. Mr. Bernanke says "The economy was likely to slow and this should ease inflation pressures." They also mention that a weaker housing market supported the case for the fed to back off it's rate tightening.

Covering All Of The Top % Rate Bases...

2006-07-18T19:53:00.000-04:00

Earlier on in the month I was getting tired of seeing the fed rate raise, and seeing most of the online savings banks not keep up. And occasionally I like to chase some of the online bank account rates. I currently have an account @ ING, Emigrant and Virtual bank. At the time, ING was about 4.35%, Virtual 4.60% and Emigrant 4.80%. The HSBC online savings account was among the leaders is high rates 5.05%. Plus, they are running a sign up promo, a $25 Best Buy gift card. I figured why not? There's no minimum, it's a great rate, and I'll be getting a gift card for signing up. Well, the process is taking a bit longer than expected. It's a couple of weeks later and I'm now waiting for the password to arrive in the mail. And soon after applying for the account, Emigrant raised their rate to 5% even. And they now plan on raising it to 5.15% coming late July. Oh well, the price for chasing...

140 Personal Finance Calculators?!

2006-07-17T16:32:00.000-04:00

I Recently came accross AOL's personal finance section and noticed that they have 140 financial calculators! I never knew there could be so many. Here are the catagories, and the number of calculators they contain...

Autos: 11
Bonds: 13
Budgeting: 7
Credit Cards: 8
College Planning: 7
Credit & Debt: 6
Mutual Funds: 11
Mortgages and Home Finance: 17
Life Insurance: 7
Paycheck Planning: 6
Retirement: 15
Roth IRAs: 8
Savings: 10
Stocks: 9

The calculators range from "Should I lease or purchase a vehicle?" to "Should I use a home equity loan instead of an auto loan?" Or maybe..."Should I consolidate my debts?" to "What will my tax savings be?" The page I hyperlinked has about 135 calculators. Another five can be found here. Pretty interesting...

It's not the summer heat I feel...it's my wallet on fire!

2006-07-16T11:55:00.000-04:00

I'm only slightly bothered by the summer heat compared to the heat I feel from the wallet, when summer comes around. I knew that weather is more conducive to spending, but sheesh. Summer fairs, barbeques', dining out more often, summer blockbuster movies, beaches, vacations, oh my!

Lazy Boss = Happy Wallet!

2006-07-15T12:27:00.000-04:00

Like i've mentioned before, my wife really likes her new job. The new job requires the use of a company cell phone. While recenlty inquiring about waiting for the new cell phone, her boss mentioned that due to new cell phone logistics, he was too lazy to get the cell phone, so offered to pay her personal cell phone bill. Not the difference or something like that, but the entire bill. Nice! With her cell phone averaging about $40 bucks a month, that should be about $480 in savings a year! Not a bad deal...

Student Loan Hike...

2006-07-14T16:39:00.000-04:00

Well, it was bound to happen sooner or later. We just received notification from my wife's student loan company that the interest rate will be rising. From 5.3% to 7.14%. Anyone know any good student loan companies with lower rates?