If your financial plan has flaws, it's not going to work properly.
This post comes from partner blog The Dough Roller.
It was the budget, with the spreadsheet, in the library -- that's what killed your finances.
The dictionary defines a budget as "an estimate, often itemized, of expected income and expense for a given period in the future." Budgeting, the quintessential money-management tool, should identify where we spend our money so that we can make better spending choices.
While there is no one right way to budget, the purpose of any budget should be to give us the information we need to make smart spending decisions.
Some of these answers might surprise you.
How much do you know about millionaires?
My wife had dinner with her friend Linda, who is a high school social studies teacher. As they ate, Linda bemoaned the lack of personal-finance and economics education in the United States. She mentioned that every year she gives her economics students a short "millionaire quiz" (registration required) to see just how much they know about wealth and where it comes from. They do poorly at it, which surprises them.
Linda says they always pay attention to the follow-up discussion.
Because I asked nicely, Linda sent me a copy of the millionaire quiz in the mail. Here are the questions that give the kids so much trouble:
They live together, and she covers most of the expenses.
Lots of once-routine spending decisions are undergoing scrutiny these days. Should one of them be who pays for the engagement ring?
"Miss M" posed that question at M is for Money. She knows what she wants in a ring, but her intended, "Mr. M," can't afford it. "If this ring is so important to me, then why don't I buy it for myself? Why should I burden Mr. M's finances with something he can't afford?" she wrote.
Here may be the crux of the matter: "If I wait till he can afford a ring, I may be waiting forever," she added. They've been together for six years.
Should you freeze them in a block of ice or keep using?
Matt Jabs of Debt Free Adventure has paid off his credit cards. But now he’s wondering how to proceed.
Simple answer, you say? Cut them into a thousand tiny pieces and close the accounts. Or how about keeping one for emergencies only? And what about the impact to your credit score?
After much thought and consultation with other personal-finance bloggers, Matt came up with three possibilities and asked readers to vote. Each has drawbacks. We wonder, what do you think?
Sure, it's free, but is it really useable or worthwhile?
This guest post comes from Buck Weber at The Buck List.
Can you really find good free stuff on Craigslist? To find an answer to that question, I decided to employ one of the oldest forms of scientific study: observation.
I randomly chose four cities from around the United States (Atlanta, Sacramento, Minneapolis and New York) and during a one-week period of time (Sept. 5-12. OK, eight days) I perused and wrote down what each city had to offer in its respective free sections on Craigslist every day.
What I found was sometimes amusing and somewhat telling of the value we place on our stuff, especially very heavy things.
BOGO brunch, free breakfast, kids eat free and bowling.
It’s time for Friday Food (and a few other) Freebies, courtesy of our friends at Cities on the Cheap.
Here are the latest restaurant and fast-food deals:
- Get $10 off a $25 purchase at Rainforest Café with a coupon good through Dec. 31. You can download the coupon at Rainforest Cafe’s Facebook page, and you don’t have to belong to Facebook.
- Free breakfast and a free cup of coffee this weekend, Oct. 10-12, at participating IKEA locations. No coupon necessary. The deal is not valid in Hicksville, N.Y., Houston or at IKEA Direct.
Attitude matters. Try phrasing your PF goals -- and even your setbacks -- in an affirmative way.
Then came the final disposition of my three-year scholarship. Because tuition has gone up and my other two educational grants have expired, I was left with a truly spooky balance due: $666.
My first reaction: "Oh, man, now I can't use that extra money for taxes!"
My second reaction: "Would you listen to yourself?"
But I did learn 7 lessons from the experience.
With mortgage rates at historic lows, we recently tried to refinance our mortgage. The result? Well, as my son would say, FAIL. For the first time in my life, I was denied a loan. (Actually, this was the second time. I was turned down for a student credit card in college.)
Why I was denied the loan is a bit complicated, but it had to do with the appraisal of our home and the fact that we have a home-equity line of credit in addition to a first mortgage.
To make a long story short, the appraiser used the tax assessed value of our home as the benchmark. Tax assessments where we live are historically far below the actual value of real estate, so why he took this approach remains a mystery. The irony of it all is that two weeks after the appraisal, a home just down the street worth less than ours sold for about 15% more than the appraised value of our home.
As frustrating as this process was, we did learn a few things about refinancing a home loan that I want to pass along.
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