To the Class of 2019

Tomorrow I will help carry a futon and clothes into a dorm. My little sister is now a freshman in college. This summer she has worked her butt off with three jobs and now found a reasonable and reliable car to take to school. I’m proud of her and her new monthly payments in an effort to build credit.

I see her heading into college just as I’ve started out into the “real world.” I've begged her and her friends to please actually get some advice from someone who has been there around the same time you are, rather than from your mom who may or may not have been stuck with a $20 bill for college after loans in the 80s.

Some of these diamonds of advice are either from things I accidentally did well, or wish I would have done looking back at my four years worth of loans. (Apparently I love lists, but really, who wants to read fluff paragraphs?)

• Consider going to a tech school for just a few classes. Find out exactly what classes you need at X University of State and then take the Intro 101 class at a local tech school for lots less. If you can cut out a whole semester through tech classes and AP credits, you will be happy in the long run. If you really don’t know what you want to do, this is the kind of place to figure it out.
• Get as many scholarships/grants/stipends as possible. You may not think the $350 from your old middle school will be of much help now, but when you need to pay for expensive science books, you’ll be thankful. Be aware that at state schools it truly is more difficult to get scholarships. Unless you’re the brightest of the bunch, consider looking into a more “pricey” private school. They will give scholarships more freely based on academics, music talents, majors, and even slide some under the table for athletes. Ask current students about their situations and see what you’re likely to be offered.
• Work through college. Your mom might be worried if you ever sleep, but let’s face it, no one actually goes to bed in college before midnight. Use your time wisely and spend a few hours working in an on campus office or at a business near campus. Try looking for a paid internship or job that is near the field you’re studying. This is a great way to do some real networking and get experience.
• Put your own money towards your tuition. Now that you’re working, save some of those paychecks and put them towards your tuition. Try making a budget or at least transferring funds to savings. If you can’t pay it all off in the Fall and Spring, that’s alright. That’s one less dollar owed in January of 2020. Ask your school about payment options. If you could break down your payment into manageable portions each month, maybe your job/savings could cover it.

Once you get this book at your graduation party, its six months ‘till loan payments start. Relish the moment, and I’m hoping you’ll have a few less regrets come January.

“You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose. You're on your own. And you know what you know. And YOU are the one who'll decide where to go...”   - Dr. Seuss, Oh the Places You’ll Go

How to get Free Money

Has anyone ever told you that money doesn’t grow on trees? Well, they’re right. It actually grows in high interest savings accounts. I have an Ally savings account with a .99% interest rate. This account is my emergency fund. It’s pretty easy to put money into the online account, but it takes a little time And effort to pull it out. Kind of a perfect situation to keep you from spending your emergency fund frivolously. 

I started with a $3,000 balance at Ally and two month’s worth of interest has given me $4.62 extra income. Now this may not sound like a whole lot, but let’s think about it. I did almost NOTHING to earn this money. The bank is rewarding me for not spending my money in that account. How awesome is that? By this time next year I’ll have earned more than $25 in interest (assuming I don’t add more to the account). 

I never really paid much attention to how much interest I receive through my accounts a Black Hawk Credit Union, but I always knew it was more that at other places. I’ve gotten $2.40 back from them so far this year. 

This month I also received a check for $4.60 from the SCRIP program at my church and former school. My dad has taught there my entire life, so my family enjoys using this program. How it works is that a business will donate a small percentage of a gift card bought through the program towards the organization. Then a percentage of that percentage goes directly to the person who bought the gift card. My almost $5 surprised me, since I’ve only been participating for a couple months and just for my typical gas budget. This is such a great program to use if you already go to a store or restaurant that participates. It’s another way to earn basically free money and donate to a non profit. 

Do you know of any other free money out there? Share in the comments so we can all try it out too!

 

Keep It Up Keep that Debt Free Spirit Up

This month's $1000 budget challenge is rounding out pretty nicely. I want to strangle my Mint account, because it doesn't understand that I paid off one of my loans through my savings account. After answering my father multiple times as to why I want to pay off this certain loan, I'm excited that one is done. Now, if Great Lakes Higher Ed would understand my method, life would be grand. So far the payment has been split between each of my loans and not applied just to my single "snowball" debt. I'm pleased to see the number go down overall, but I'd be even more excited for one to be eliminated. We'll see how working with Great Lakes ends up, but knowing I'm that much closer to a positive net worth is peace of mind for now.

 

The excitement has already worn off though, because there is still a long road ahead. Here's how I plan to keep it up:

 

-Track my progress with multiple spreadsheets. Yesterday I viewed my spreadsheet that shows how much my loans have been reduced by my payments and that makes me so happy. Even though some are only $3.38 lower, it gives me hope to know that when I do reach it on my list, it will be even that much lower.

-Do the numbers, but focus on progress. If I really calculated how much I'll be paying in interest I would give up. At some point, you need to focus on the fact that you're making more progress than you did before taking your debt seriously.

-Challenge everything. J$ keeps it fresh by constantly trying to slash his spending. Think you're down to the minimum? Try haggling a lower cable bill or rethinking your lunch habits.

-Figure out what keeps you from staying on budget. For me, it's always gifts and medical expenses. Now I have two savings accounts ready for when I need them. Also, it seems that when you're ready for an emergency, gift, or expense it isn't as big of a deal. I somehow figured out how to afford a $20 gift this month all while sticking to my $1000 budget and not tapping into my "gifts" savings account.

How do you keep up the savings? What are you planning to change next month?

Weekend Success!

How many of you wake up Monday morning, look at your accounts and say, “Where did my money go this weekend”? I have been in this camp many nights due to girl’s day trips and birthday shots, but this Monday, I am smiling with glee.

Somehow my boyfriend and I pulled out a trip to Chicago with friends for around $50. I’ll give you the deets, just because I know you’re wondering how in the world we did it. (I will add a disclaimer, I’m not going to calculate exactly how much gas we used. I like math, but that’s a bit much.)

Activity	Cost	How?
Gas to and from the Chicago Area	$15	We drove a Mazda3 there. I don’t know much about cars, but it’s a fuel efficient one. Also, we got gas at home, much cheaper than in the Chicago area.
Train Ride into and from Chicago	$12	We got lucky and the Metra “ran out of tickets” on the way there. A normal price for two round trip tickets with the weekend pass would have been $16, which is still not bad.
Ride to Shedd’s Aquarium	$0	This was our first experience with an Uber. Our friends use Uber often and said the driver kept turning it on and off so he could give us a tour of downtown. It was about $5, but they picked it up.
Admission to Shedd’s Aquarium	$0	Our friends’ have a membership to the aquarium, which let us get in free. Seriously consider supporting a museum/gardens to get free admission and usually the membership is tax deductible.
Misc	$14	Dip n’ Dots and a water bottle to keep us from starving. Not terrible for Chicago prices, but still not great.
Transportation to Dinner	$0	One way we kept the cost down was to walk all over Chicago. It was great weather and to see the sights, but man was I tired that night.
Dinner at Ed Devebic’s	$24	This restaurant isn’t one of the most “chic” places, but it has diner food and entertainment.
Transportation to Union Station	$0	More walking and window shopping. My sample from Ghirardelli's was a snack the next day.
Total Cost	$65	I expected us to blow the budget on this trip, but it ended up being a low-key day.

So see, it can be done. A whole day in Chicago for about $30 a person. How are you enjoying the summer on a budget?

August Net Worth

One thing I love about the financial community is that everyone is open about where they are and where they want to be. Currently I'm at -65,695 Net Worth. J$ and many other bloggers post their Net Worth to keep each other accountable and watch their positive net worth grow. Mine will be published monthly at  rockstarfinance.com. Thanks to everyone reading from over there!

Net Worth is calculated by the formula of Assets - Debts. As you guys know, I have a much larger amount of debts, which is shown by the negative Net Worth. My formula is pretty basic. It is, my (savings + checking) - (student loans + auto loan).

Next month it should go up due to loan payments. One thing of note is that I have included my auto loan but not the value of the car in assets. Honestly, I didn't get a great deal on it, but maybe I'll add it in later. Also, I have a smidge put away in retirement, but really not enough to add as an asset.

Enjoy a frugal Saturday, everyone! 

Treat Yo' Self

Treat yo' self. This internet sensation is now a marketing tag line. It means if you have a bad day, buy yourself something. If you did great, buy yourself something. If you're bored, buy yourself something.

After a cruddy day, I want to buy myself anything to feel a little bit better. I just want to make myself feel good via a great deal or new (beautiful) Michael Kors tennis shoes. But then today I realized, will those shoes make me feel any better? No. 

In reality they will be another pair of shoes on my bedroom floor that I try to not step on in the middle of the night. The beautiful leather will be another payment on my credit card instead of a night out with friends. They will be another $45 down the drain (Those shoes seriously would be a steal with my discount!) rather than getting out of debt. 

I'll be the first to admit that I am highly susceptible to marketing and advertising. I will try a new restaurant just because of a catchy jingle and the nail polish that accentuates the hand models' perfectly manicured nails. 

Instead, let's choose the positive action. "Treat yo' self" by finally binge watching MadMen with your mom. Hitting that extra gym circuit. Just sitting outside with a good book. Whatever lifts your spirits and may actually add some value to your life is a much better option in the long run. 

Mid-Month Starvation

Now we have our budgets and are sticking by them. What happens when it's the middle of the month and you're already near out of money?

For me, the going out to eat budget is never enough. The last couple weeks are usually a scrounge for change or lunchtime deals. One way I make it through is to bring my lunch to work. If I bring leftovers and have them ready in the fridge, I will not go out and pick up something else. Another way we all can save or spend wisely is to eat or drink at home. My family usually has at least one "must-go" lunch or dinner each month. We pull out all the possible leftover and meal combinations possible and have basically a "free" meal.

Instead of finding more food, find more funds. Maybe reconsider if you actually need new health and beauty products or if you could make it through till next month. If you're a hardcore budgeted this wouldn't be your best bet. Cleaning out your car, desk, and junk drawers can lead to finding lost money or giftcards. 

Don't worry. You'll make it through. There are only two weeks left. 

Cutting Costs at the Fair

Yesterday was a relaxing day off. My family spent their annual day at the Wisconsin State Fair. I love the cream puffs, side stages, and as seen on tv products. Here is how my family and friends keep costs down at the fair.

 

Share. I love to eat fair food. I will admit, that is pretty much the only reason I go. My problem is that there are so many options that I can’t make up my mind. One way I sample all the fried items on sticks is to share with my family or the group I’m with. By splitting cheese curds and mini doughnuts, you can eat just as much food for about half the price.

 

Pregame. When a domestic beer costs $6 and a craft beer $8, this is not the place to get wasted, but maybe that’s your primary reason for going to a fair. I suggest finding a local bar nearby that offers specials or even just regular priced drinks. These establishments are usually within walking distance or offer a shuttle to the event. In the long run, you get the desired effect without spending the arm and a leg required at the actual event.

 

Discount Booklets. Many events have a “discount booklet” you can buy for a few dollars that goes straight to supporting the event. Not only does this make sure your favorite summer pastime will be around next year, but it also can save you on food, drinks, and even services during the event.

 

Plan Ahead. Again, planning ahead can save you on admission and parking. Often parking will be cheaper during the day than at night, and the same goes for admission prices. Many fairs and festivals coordinate with business to offer free or reduced admission during the morning and early afternoon. Some of these promotions are as simple as bringing in canned goods for the food pantry.

 

Carry It In. Find out exactly what the carry-in policy is at the event. Bringing in approved umbrellas and sweatshirts could be money saving if bad weather disrupts the event. Also, some will even allow unopened water bottles on very hot days. Check out the specifics online before you go and see how to work within the lines.

Have any tips or tricks at the fair? What's your main reason for going? 

LC and Me

Now that I have a strict budget, I need to actually follow it. I'm attempting a $1,000 budget this month. I'll be making extra income, so to curb my spending I've been even more drastic with my saving goals. 

Any millennial girl knows that Lauren Conrad stole the hearts of millions on The  Hills and now shares recipes and budgeting tips on her website, like this post http://bit.ly/1NgcTgn. So taking LC's inspiration, I have a few tips for staying on budget. 

1. Don't work retail. Seriously. If you can do anything else or work somewhere that coupons, credit cards, and tables made just for impulse buying are not around, then do it. 

2. Be organized. Remember to get cash out from an atm that won't have a fee rather than while you're at the local dive bar paying extra for your Spotted Cow. Getting downtown early for a play or night out could mean cheaper parking rates or even finding a free spot. 

3. Ask for help. Negotiating with roommates, thrift stores, and service providers can really add up the savings. Don't be shy to ask for a deal. 

4. Know your progress. Keep tabs on your finances by checking your accounts and receipts. It's much less tempting to go out to dinner when the money has already been spent. Also, make sure your receipts and accounts match up. 

5. Remember your goals. Why are you budgeting? What are you trying to achieve? Ask yourself if your purchase will help you get there. 

These are my five tips. What are your tricks to staying in the green? 

Dave Ramsey's Toal Money Makeover

I finally got to read Dave Ramsey's Total Money Makeover, which was suggested by Even Steven Money and multiple other bloggers. After reading the book, I understand why it is a necessary read for anyone with an interest in financial independence and debt reduction. It has fundamental concepts that are embraced in one way or another by almost every blogger. Ramsey admits that his concepts are not new or completely original, but the titles and his analogies have been popularized.

Ramsey used Baby Steps toward financial independence and retiring with dignity. The first is to save a small emergency fund (between $500 and $1000 depending on income). 

Secondly, is the Snowball Method, which is to start reducing debt based on the lowest amount owed no matter what the interest or the type of debt. After debt is paid off, one is to return to the emergency fund and save three to six months' income. The last steps include saving (investing) for retirement and children's education. 

These steps aren't quite "baby" in the amount of sacrifice and time it may take to achieve all of them. Overall, he sets a standard operating procedure for acquiring wealth and independence. He encourages readers to be very strict when following the steps (ie. Not saving for retirement without first paying off debt), but through multiple testimonials he shows that this process truly works. 

My English Major self does also want to critique his writing style. I found his mixed metaphors to be annoying and confusing. In one paragraph he used his gazelle like intensity analogy along with a logger trying to bring longs to the sawmill down stream all in the goal of completing the snowball method of reducing debt. See how this could get messy? 

Also, this is a typical convention for motivational speakers/writers, but I found his catchphrases to be underwhelming and also annoying. After hearing people in their success stories say multiple times that they are "sick and tired of being sick and tired", I knew this was one of his phrases. I've read other reviews commenting on the repetitiveness in regards to similar phrases in his radio show. 

Even English Major Maggie would suggest reading or skimming this book. It is referenced by (pretty much) the whole financial blogosphere, so it's best to start where it came from. Whether you take his strictness with a grain of salt like I do or follow it catch phrase for catchphrase, his methods are quoted for a reason.

Find it here or even better at your local library for free.