It’s that time of year again and we’re in the mindset where we begin to think about the things we’d like to do better next year.   Financial resolutions are often high on the list with much “spend less, save more” promises that never seem to quite make it past Valentines Day.

Plan For The Future

Create A Financial Plan:  Getting started with improving your finances requires first developing a plan for success.  A financial plan is the foundation upon which all your plans exist.  Without this plan, it’s impossible to have goal directed success as it relates to your finances.  This helps you decide whether that purchase you’re about to make coincides with your values and goals.  So in essence, it becomes the compass that helps you get to your wealthy destination.

Action:  Use this financial plan template to get started.  Fill it out as directed and then use it to guide your plans for the new year and beyond.

Budgeting

Develop a budget or spending plan that actually works for you based on where you are right now.  Don’t go cold turkey if you know that won’t work for you.  Instead, try reducing your spending in critical areas slowly until it “feels right”.  One mistake we often make us cutting these out cold turkey which actually backfires down the road.  Unless you have really good discipline, slowly but surely wins this race.

Action:  Get started here!  Need a budget template?  Check these awesome budgeting templates from Budgets Are Sexy.

• Take a look at your spending over the last 3-6 months by aggregating your accounts into Yodlee
• Check where you’ve fallen short, for example spending $500 on happy hours and eating out which leads to your account being overdrawn, well you might want to start there.
• Decide how much you need to cut back in each category.  Start off with $250 for the above-mentioned example.
• Create a new budget based on the template you select here.
• Use the next 2 weeks to test drive your budget.  Review your spending weekly to determine where you need to tweak things a bit.  This is an ongoing process, but as you go along, it gets easier.

Get Your Credit In Check

Check your Credit for errors, collections, judgements, late payments and possible liens.  If necessary, start the credit repair process in order to remove derogatory items.  Sign up for a credit monitoring service that will allow you to consistently and actively manage your credit so that you aren’t blindsided when applying for new credit down the road.

Develop a plan to begin the credit repair process

Decide which debts you will pay off and what other accounts need negotiation around a new payment plan for settlement or removing late payments in exchange for paying off the whole balance.  Tip:  If the account has already reported on your credit report, call when you have enough to pay half, more than half or the whole balance.  This way you have leverage and better able to negotiate removal of the derogatory information.  This agreement must be given to you in writing.

Action:

• Check your credit report.  There’s always a section which lists your creditor’s contact information.  Call them to discuss the account and what possible remedies are available to you.
• For the accounts that you have decided to pay off.  Check out these debt reduction strategies and see which one works for you.  The debt snowball method tends to be the most popular but it may not work or be appropriate for every situation.

Schedule Time With Your Money

Set up a time to review the above-mentioned tasks every week.  Staying on top of these issues develops a habit that you’ll need in order to cultivate financial discipline.

What are your financial resolutions for next year?  How have you fallen short this year and how to you plan to change things next year?

With the threat of a double dip recession on the horizon I’ve had many friends ask how to function in a financially efficient manner due to the recent loss of a job.  I often refer to this as “Safe Mode”.  The Windows PC types probably know this as the moment your computer may crash so it operate using only the essentials.

This should be your goal if you recently lost or are about to lose a job with nary an emergency fund in site.

First you should have a family meeting to get on the same page about the following cuts that will need to be made.  Don’t come up with a plan and put it in place without helping each member of your family understand the rationale.  This helps to ease the shock while engendering a team spirit about how you will get through this together.  If you’re single, skip this part.

Downsizing:  Different Strokes for Different Folks

What you do in this area depends on if you’re single, married and if married, how many children you have.  If you’re single and currently renting an apartment then downsize to renting a room, getting a roommate or even a studio.  This may also work if you’re a couple with no children.

If you have young children then you may want to downsize to where the children share a room in a 2BR or they share a space in a 1BR.

If you have older children then they may need to share a bedroom with you, the parent or share a space in the living room/dining room areas.

And, before you write and tell me how your kids need space to run and play, don’t.  We’re discussing the need to stay above the recession tide and your kids having a space to run and play in the house isn’t  priority at this stage in the game.  This especially applies if you have very young children.  They do not need their own bedroom. This isn’t about keeping up appearances to your children or family.  This is about saving money and being able to literally keep food on the table.This is often a very uncomfortable reality for many but the sooner you embrace it the sooner you will move past it and understand that this is only temporary.

Finding Work

If you don’t have a FT job, you can get a job at a supermarket, library, fast food place etc.  I often get the screw face when I tell folks this as if the money isn’t just as green.  Get over it.  While in grad school I walked dogs for a living and went on several mystery shopping trips during the week because I wanted to have my own money coming into our household.  Right now, no job is beneath you unless it is just morally unacceptable.

Until you get back on your feet, get in where you fit in.  Walk dogs, pick up trash, do someone’s laundry, babysit, start a business – there are endless options for bringing in money.  Many people are out of work and your perfect job may not be there right now.  Until then, take what you can get and rebuild little by little.

What Should I Cut From My Budget?

This will largely depend on your streams of income.  How much, how often etc etc

• Eating out-You should under no circumstances be eating out if you’ve lost your job and have no income coming into your hands.  Eating out would be a no no as you should be sticking to eating at home on a low budget.  Try Aldi as a great alternative to high priced supermarket brands:
• Food budget basics include:
• Water
• Lemons/Lime (flavor the water or lemonade)
• Rice
• Canned food: soups, beans, peas, veggies etc
• Pasta: Ramen Noodles, regular pasta
• Bread
• Chicken
• Ground turkey (very versatile)
• No red meat, too expensive

• Hair salon-Do I really need to explain this?  Get a hair dryer and your favorite shampoo/conditioner and make it work!  Youtube gurus offer up a lot of advice around how to style your hair sans salon visit.

• Cell phone-This is tricky.  My advice here is if you have a laptop and regular access to WIFI (local library, Panera Bread, McDonalds) then you don’t need a cell phone.  With the advent of Google Voice and Skype, you can easily make phone calls to prospective employers.  If you have to have a cell phone then Safe Link may be an option as this is available to those who are already in Food Stamps or Medicaid.  If you decide to have a cell phone, please remember to use it responsibly; keep your phone calls to a minimum and, whenever possible, send texts or emails.   When you are bored, avoid mobile gaming at all cost; keep yourself busy: make yourself lunch or go for a walk.

• Car-I would give this up if you live in a fairly “metro-friendly” area.  If you have access to buses and subways then give up the car.  There’s expenses like gas, insurance, repairs and/or a car note that you don’t absolutely need right now.  Sell it and relieve yourself of the monthly expense.  Opt for a bike share or using a service like ZipCar when necessary.

• Makeup/Hair Supplies-You’d be surprised what you can go without when you’re dead broke.  I know some of you must have your make up and hair but I won’t tell you yes on this one.  Mascara, eyeliner and lip gloss sure.  But a full run at the Mac counter?  Nope.

• Health care-If you need to go to the doctor and can’t afford health insurance, a federally funded health center is a great option.  This is often missed when discussing alternatives to health insurance so take a look here:

• You pay what you can afford, based on your income. Health centers provide
  1. checkups when you’re well
  2. treatment when you’re sick
  3. complete care when you’re pregnant
  4. immunizations and checkups for your children
  5. dental care and prescription drugs for your family
  6. mental health and substance abuse care if you need it

Cut Everything, But Need Help Making Ends Meet?

Check with your local social service agency and related nonprofits in your area.  There’s a program called TANF-Temporary (cash) Assistance for Needy Families which gives cash assistance to families with children based on income. Check your state for income guidelines.

There are other food banks like ShareDC.org which gives families 2 bags of groceries for $23 or free if you volunteer for 2-4 hours with their organization.

Check with local clergy for cash and food assistance.  They can also be a good source for referrals in the area around social service needs.

Check your budget to determine what you may be hiding.  Often times we gloss over things we would never dare cut but when we’re operating in emergency mode, those budget items need a 2nd look.

Credit?  Should I Pay Creditors

If you can afford to do so, yes, pay the very minimums to save your credit.  Call your creditors and explain your situation and they may be able to work out a plan with you.  If you can get on the disability payments which pay your premium if you lose your job then do so. Ask your creditor if this is available before you tell them you can’t pay.  Get on that plan, usually pennies ($1.67?) per month which they add to your balance.

However, if you have to choose between eating/shelter and paying a bank, then I choose eating and shelter.  The bank will be fine until you get back on your feet.

This is a scary time for many people due to the sputtering economy.  It’s time to buckle down and spend only what is absolutely necessary.  Take a look at your budget and determine what is critically essential to your well being.  That would be food, shelter and access to health care should you need it.

How do you/would you function when in safe mode?  What would you cut?  What would you keep?

Jennifer Williams is a writer, turner traveler, turned blogger. She’s trying her hand at blogging on various topics, so you can find her stepping into tech, business and finance. Follow her on twitter- @JtotheWilliams or check out her blog-allovertech.wordpress.com

Are you interested in finding simple ways to save money? If your answer is no, you’re probably lying.  After all, everyone wants to save money, even it they DIY or “Do It Yourself” living- meaning, taking care of things that you would generally pay someone else to do.

Here are five great ways to live the DIY lifestyle and get deeper discounts while you are at it.

DIY Discount Number One: Swear Off Lattes

That’s right, swear off all coffee that you don’t make at home or get for free in your company’s break room. This does not mean that you can’t enjoy espressos, cappuccinos, and every other lovely coffee creation that you can imagine. Instead of paying the extra $5 to have a barista serve these up for you on a daily basis, invest in a machine for your home kitchen that can be used to make all of your favorite caffeinated delights. Save even more money by searching for hot deals from stores that specialize in kitchen equipment.  You may find that your coffee tastes better when you made it yourself and saved the extra money.

Savings $100/month
DIY Discount Number Two: Fire Your Lawn Boy

Paying someone to mow the lawn is a luxury. The truth is, most yard work that is contracted out to professionals can be taken care of with a few simple lawn tools. Here is a good rule of thumb: If you have the tools, the abilities, and the strength to do the work, then do it yourself. There’s really no need to pay someone money to mow unless you have 80 billion acres of land… or at least 2.

Savings: $50/month

DIY Discount Number Three: Cancel Your Gym Membership

Once you get into a rhythm of taking care of your own land, you can cancel your gym membership. After all, you’ll probably get a better workout cutting grass, raking leaves, and performing general garden maintenance than you will on the tread mill. They say sweating is one of the keys to losing weight and toxins- you’ll be well on your way. Not to mention you can run outside as well as use the wall to do squats. Get some weights, balance ball, resistance bands and your favorite workout DVD and you’ll never need a gym again. There’s plenty of home exercises you can do to take care of your body.

Savings: $40-$125/month

DIY Discount Numbers Four and Five: Enjoy Your Home and Become a Better Cook

Many people spend hundreds if not thousands of dollars every year on dining and entertainment. If just two evenings a month were spent at home instead of out on the town, the savings over the course of a year would be substantial. One of the best ways to start enjoying time at home to make sure you can entertain yourself there.  Great cookbooks and a low cost $10/month subscription to Netflix might be a good alternative to start.  Furthermore, why spend money at a gourmet restaurant when you can make the same recipes at home? Search for good discounts on entertainment electronics, kitchen equipment, and even a few cooking lessons that will make your nights at home feel just as luxurious as your nights out.

Savings: $150-$900/month

What’s the last step? Become a Better DIY Budgeter

The next step is to take a few minutes and look at your budget and spending habits. For each item, just think to yourself “Do I really need to pay someone else to do that for me?” Ask this question everytime you need to do a task and you’ll soon see the savings start to roll in.

Question:  What are your tips for DIY Discounts and Budgeting?

Welcome to the 236th Festival of Frugality, True Blood Happy Hour Edition.   I am excited to host this weekly edition and ongoing installation of the best articles on Frugality within Personal Finance. If you’re a fan of True Blood, then I think you’ll like this week’s theme!

Vampire King Picks

Finance 101: Introduction to Bonds Lesson 1

• Bloody sweet post detailing how to save even more money by giving a thorough fangbanger primer on investing in Bonds.

Stay Cool When Saving Money on the Electric Bill

• Fangbanger approved post on how to stay cool during the summer heat wave.  You know we get busy at night!

How to Save Money on Your Summer Vacation

• Favorite of the Vampire King picks, fangbangers and vamps alike need vacations too!

Fangbanger’s Delight’s

Checked Baggage Fees List

• Wanderlust Journey shares a timely post about checked baggage fees during the summer travel season.

In OR Out Burger?

• RichlyReasonable reminds us that eating in not only saves money but can be a great stress reliever as well.

Sweet Tea: A Cheap Alternative to Soft Drinks but Tastier than Water

• ProvidentPlan extols the virtues of sweet tea and while it may not be as healthy as pure water, it sure is a great alternative to soft drinks

Tax Holidays for Back to School Savings

• Wealth-Builder teaches us how to save during back-to-school season

Learning to Say “No” to Your Kids

• MoneyNing gives important lessons in how to say no to your children

I hope our happy hour specials were delightful, thanks for stopping by.  If you like what you see, come on back now—>Subscribe Here or Follow Me On Twitter

By: Wesabe

This is a Guest Post by Wesabe via DivineCaroline.com.  Wesabe helps people take control of their money and reach their financial goals via a free, online money management tool and a thriving community. Wesabe lets members see all their bank and credit card balances and transactions in one place, as well as find ways to get the most value for their money. Wesabe has well over 100,000 members who share advice and information to help each other make better financial decisions every day.

Looking for a great, inexpensive gift for your mother or someone special in your life? The following are eleven sure-fire winners. The catch? You’ve got to channel your sensitive side and put a little time, but the results will be a gift people can’t stop talking about.

1. A Book of Quotes
During my senior year in college, I was virtually penniless but wanted to give my then-boyfriend, now-husband, an amazing, thoughtful gift. He always loved my habit of collecting quotes on note cards. So, I bought a journal and filled each page with quote I loved and water-colored over each. He absolutely loved it.

You could make this gift cheaper by buying a bunch of index cards and hole punching the right corner. Paint each card (nothing fancy, just wipe some paint, or paste colored paper to get rid of the index card look), write a quote on each and then loop a ribbon through the whole thing to tie all the cards together.

2. Personalized Memory (or Clutter) Boxes
This is something I did a lot as a kid. I would go to Michaels and buy a number of cardboard boxes. I would spend time collecting photographs, quotes, and images that reminded me of the person. I would then shellac these over the box. These can be used as display or simply put on a shelf or in the closet as a place to save memories or hide clutter.

3. Make Your Own Recipe Book
Does someone you know have a shoebox filled with cut out recipes from magazines, newspapers and the web? Steal the box and paste all of them into a journal. Voila! You have just made them their very own personal cookbook filled with all of their favorite recipes.

I did this for my mom one year … she loved, loved, loved it. And yes, I got some serious tears.

If you know someone who loves to cook but lacks a shoebox full of recipes (or you lack access to it), you can also browse recipe sites on the web, print out your favorites, and build the recipe book yourself.

4. A Positivity, Productivity, or Inspiration Box
(Or any other theme that might fit)

Here is how it works:

Find a cardboard box with a lid. Find a few pieces of pretty paper or construction paper. Cut these up into one-inch by two-inch squares or rectangles.

On each, write something that has to do with your theme. If it’s productivity, put a tip on each (you can find some great ones by browsing Zen Habits or Dumb Little Man). If it’s positivity, put a happiness tip on each (browse the Happiness Project for some great tips). If it’s inspiration … well, you get the idea. Fold them in half and toss them in the box. Aim for somewhere between twenty and forty of these.

You can either wrap it up and tie a bow around it, or you can theme your box by cutting out images and quotes and pasting them over your box.

5. Personalized Stationary
With the amazing amount of templates provided by most Word and graphic programs, this is almost too easy. However, you can make it a bit more personal by taking a manila folder and using craft glue to cover it with fabric. You’ve now made a personalized folder to hold all that personalized stationary.

6. Coupon Books
To make this work, you’ve got to whip out your inner artist. Here are some ideas (these are really good for kids to make for mom or dad):

• A car wash
• Spa day by you (manicure, pedicure, facial, lunch, Sex and the City viewing party, etc.)
• Dog walking services
• Two hours of complimentary house cleaning
• Ice cream sundaes
• A homemade dinner

Check out this Wesabe discussion What Makes You Feel Rich While Being Frugal for coupon ideas. All are things people love to do—transform them into a coupon and you’re giving a wonderful experience as a gift.

Think about any talents or special skills you have and use these as a gift. After you’ve brainstormed what you want to do for your friend or family member, cut up construction paper to coupon size, and then write/draw your gift of time.

7. Make Your Own Frames
You can pick up cardboard frames at craft stores for less than ten dollars. Shellac pretty paper, quotes, or pictures over them and slide in a good photograph.

8. A Music Book
Have a friend you care about who plays an instrument? Head to the music store and buy a book of blank sheet music. Write a letter to them on the first page telling them how much they mean to you and urge them to start writing their own music.

9. A Personalized Journal
If you don’t have the ten dollars to buy a journal, buy a black and white notebook from the drug store, and shellac with pretty paper (link), magazine cut outs, photographs, newspapers (this can make for a really cool look), or quotes. Write a little note in the cover and then wrap that bad boy up.

If you want to get even more personal, you could write a quote or unfinished sentence every few pages or so, to prompt some inspirational writing.

10. A Memory Collage or Scrapbook
I made this for my best friend my senior year in high school and then for a boyfriend in college. I made a list of special memories we had together and found pictures, pamphlets, and quotes to describe them. I think each book was about ten pages. I wrote my memory of the event and then added pictures, quotes, stickers, and movie/airline tickets.

11. Frame a Favorite Quote
This one is super easy. Take a favorite quote of a friend or family member. Buy a cheap frame. Or if you don’t want to buy a frame, you could take a piece of tag board and cover it with nice paper. Use your best handwriting or favorite font on the computer to write it up. Put in the frame or paste on the tag board. Wrap it up. My best friend framed my favorite line from Robert Frost’s poem “Birches” when I was twelve years old and gave it to me for Christmas. It still sits on my desk today.

Question:  Given the current economic situation, are you thinking about giving homemade presents this year?

Scott Heiferman, the CEO of Meetup (love him BTW!) sends out this email to all the meetup organizers today asking us to give people reasons to utilize meetups in order to save money.  Because of recent changes in the economy, people are looking not only for answers, but a way to ease the pain.  And, they often find that in community with others going through the same issues as they are.  He used my meetup, Girls Just Wanna Have Funds, based in DC as an example of this in his video around the 1:30 mark:

Our group helps women get in touch with their sexuality! 35% of women can not orgasm through intercourse and 15% never will in their life. We are set out to change this. And as everyone knows, orgasms release endorphins therefore relieving stress AND COPING WITH TOUGH TIMES!
~Susie Heart
meetup.com/sextalk

I just about fell off the couch LMAO

So miss lady, how are you coping during the recession? Keep it clean! LOL

The Whole Foods gods must have been listening this week as we adjusted our food budget to only include organic foods.  This means only shopping at Whole Foods and after reading this article, it cinched the decision as the following statement blew us away because my husband and I really try to live a healthy lifestyle:

The FDA estimates that 20 pounds of pesticides are used per person per year in the U.S., and at least 50 of these are classified as carcinogenic.

This was a decision that took some thought given the rising grocery costs but we want to be more responsible in the area of what we put into our bodies.

So what’s a girl on a budget to do?  Well the Whole Food gods made it easier by creating Value Tours!

From the NY Daily News:

Faced with rising food prices and a national recession, Whole Foods has launched free value tours, leading groups of bargain hunters through the aisles of natural, sustainable and organically made goods.

Other Whole Foods’ deals include their house line of 365 shampoos and conditioners (16 ounces for $1.99; 32 ounces for $3.79). There’s their Whole Catch line of frozen prepared foods ($3.99 for a 10 ounce box of fish sticks) or their fresh, 6-ounce individually portioned filets of fish for roughly the same size per pound as bigger cuts, nice for one or two people.

For all proteins — like chicken, beef, pork or fish — there’s a case of family-sized “value packs” that are at least a $1 per pound less. And for literally any dry good item in the store — meaning everything from diapers to spaghetti sauce to bottled water to energy bars — you can get a 5% discount if you buy it by the case.

Beyond these specific deals, however, the tours are also designed to highlight overall strategies for cutting costs on your bill.

They got the message! What this means for the budding Bargain Mama is that Whole Foods is finally recognizing that even those who live on a budget want to eat healthy.

Value Tours are conducted by Whole Foods employees who guide budget conscious consumers through the aisles showin them how to shop at Whole Foods.  Honestly?  I didn’t think that Whole Foods had sales because they are a bit on the expensive side.  I’ve never seen a sale circular so when we shop there, we know to take the hit and keep on moving.

But now, we know that there are sales cards as I like to call them stationed throughout the store in for consumers to pick up as they go along.  Now, they aren’t as in depth as what you’re used to at your neighborhood grocery store, but it suffices in addition to the yellow signs that indicate sale items throughout the store.

Why Whole Foods?  Because Shoppers, Giant and Safeway have all increased in prices significantly in my neck of the woods.  What used to be a $100 grocery run is now $165.  If we’re going to spend that much then we might as well go to Whole Foods and get our main items there.  Non food items we can still get at the grocery or Dollar store.

Before our trip to NYC this weekend I stopped by to pick up some sushi, salmon and my favorite, fruit parfait straight from their bakery.  I did have a talk with the Store Manager on duty and she agreed that it’s important for shoppers to be on the lookout for their favorite and routine items on sale.

Here are some more tips from the article on how to shop frugally at Whole Foods:

USE WEEKLY SALES FLYERS: Like most other markets, says Whole Foods’ value tour guide Allison Smith, the store puts out its new yellow weekly sales sheet on Wednesdays, marking each sales item in the store with a large yellow sale sign. So once you learn what tags are used for sales at markets, you can easily scan the store for deals.

SHOP SEASONALLY: “In produce,” says Smith, “the really big thing to look for is seasonally and locally.” When you buy local food some of the transportation costs have been cut out, she says, and when you buy what’s in season, there’s more of it, meaning the price goes down.

BUY STORE BRANDS: Many house brand items are just as good as brand names, and some stores even contract with the same people who make brand name products to create their versions. They’re often much cheaper than sales items or even post-coupon prices.

BUY IN BULK: If you can buy just the amount you need from bulk bins, says Smith, food won’t go to waste and you’ll save on packaging costs. Or if you can buy in larger quantities, you’ll save on cost per pound or unit, too.

CONSIDER COUPONS: Many times store brands are cheaper than items bought with a coupon, but you should still check out weekly newspaper circulars and mailings for brands you buy regularly.

Great news right?  Do you shop at Whole Foods?  If yes, is it for health reasons?  Do you have any bargain mama tips to share?

If you recently graduated from college then you’ve been hit with the task of managing your own finances.  You may now have a job with a decent paycheck and along with that comes bills, unplanned expenses and learning to balance your checking account.  During this time you may also be experiencing some confusion, doubt and you can’t shake the feeling that nothing is wrong, but something just doesn’t feel quite right.

Welcome to your Quarter Life Crisis.

It is often around this time that Quarter Lifers can let their finances lapse leaving a trail of bad credit and unpaid bills due to overwhelming feelings around student loans and disillusionment around maintaining a desired lifestyle.

So how does a Quarter Lifer get through this extremely confusing period of life without letting their finances lapse?

1.   Get Organized

This is indeed a difficult time but it is no reason to let you finances lapse in the midst of it all.  Take inventory of your financial obligations and set them on auto pay through your bank or other online bill pay systems.  This way you can let the bills take care of themselves so long as you keep the funds in your bank account.  This includes saving at least 10% of your take home pay as well.  Remember, above all, pay yourself first!

2.  Create a Budget

You may be asking how do I do that?  It’s pretty simple, For the next month, track your expenses down to the penny.  You can do this by using all cash, only your debit card or just tallying up all purchases, bill payments and receipts at the end of the month.   After reviewing your information, decide which areas need improvement and go on a trial run for the next 30-60 days.  This way you gain a better understanding around which areas need closer oversight.

In my case, when I first moved to DC after college, I really needed to watch how much I ate out each week.  Of course I wasn’t the Martha Stewart wannabe I am today and ate out for breakfast, lunch and dinner, which got really expensive after a while.  So take stock of what areas need closer watch then tally up the totals.  Once you have an idea, you set the limits and voila, you now have a monthly budget!

Here’s a copy of a budget spreadsheet you may find useful:

• Personal Budget Spreadsheet

3.  Communicate With Your Student Loan Lender

If you haven’t already done so, call your student loan lender and find out when you first payment is due.  Get information around due dates, grace periods, payment terms, forbearance and in school status.  Depending on your personal/financial sitution you may be eligible to ask your lender for a forbearance just in case you aren’t able to manage payments at this point in time.  Some of you (like yours truly) may owe over 100k in student loans which is like a mortgage payment for most.  Still, Sallie, Citi, AES, KeyBank etc etc want their money.  It is in your best interest to make sure you are on track with this debt.  Like death and taxes, student loan repayment is another certainty in life.

4.  Curb The Shopping!

This includes lattes, the cute empire dress you could get for the after work party on Friday, the heels you don’t need and anything else not deemed a necessity right now.  If you must, give yourself a monthly shopping allowance and make it your duty not to go above it.  This way you’re able to shop and not feel guitly about it.

5.  Talk to Mom and Dad About Your Finances

Quarter Lifers are often caught up in wanting to seem responsible that they forget that it is still OK to ask for help even if they are on their own.  I can admit to calling my mom 8 months after moving here and telling her that my CC debt was unmanageable and I needed help.  She promptly called the credit card company and paid the balance for me and made me promise not to run it back up again.  Sometimes we need help and mom and/or dad are more than willing to help us out.  Of course, not without a stern talking to but it may be the help you need to get you back on the right path and giving you a fresh start.

Of course I do not advocate parents enabling their adult children, however, I am of the mindset that if they can still help out while you’re still getting your feet wet in adulthood, why not?

This is just one aspect of learning how to manage a quarter life crisis, keep in mind that issues around career, identity and relationships  are best handled by a life coach or therapist depending on the severity of the issues.  Your first step is realizing there’s a problem but that it’s totally OK to feel the way you do.  Just try to maintain control in the area of your personal finance so that you’re not paying for it years down the line when you’ve moved past this period in your life.

photo credit: elisfanclub

I switched to ATT from Verizon with monthly cost being the motivator because of advanced technology and lower rates with the AT&T Family Plan. For the last 3 years I’ve had the Verizon Palm Treo, but with my recent decision to downgrade our budget, the Treo had to go. I could no longer justify the heft bills. Welcome iPhone and AT&T.

Service:

Verizon, while I will admit they have the best reception and customer service and would rate them at a 9, ATT follows close behind at an 8. The customer service has been great between Apple and AT&T as they were very helpful in getting me familiarized with the iPhone and coordinating my initial setup. AT&T also let us keep our 4000 rollover minutes when hubby added me to his account. AT&T also includes the data within the overall rate plan whereas Verizon does not, forcing me to pay an additional $40 for unlimited data in order to access the Internet. Not hot. Especially when Sprint (although known for their horrible customer service), charges $15 for the same data plan.

Price:
Verizon/Treo
As I mentioned above, with Verizon and the Treo, I was paying $40 for the data plan, $79.99 for the voice plan which didn’t include charges for text messaging, picture messaging, insurance, taxes and other miscellaneous fees. Our bills were CONSTANTLY $300+ and hubby’s bills were around $150 for his Treo. Over the summer we paid $600+- for our CELL phones due to overages and going overseas. I could no longer justify staying with Verizon paying that much just for service. Are you kidding me? Once I found out about the family plan offered by AT&T for the iPhone I made plans to jump ship.

AT&T/Apple iPhone
We are currently on the Family plan with ATT. We get 2100 minutes for $109.00, which includes text messaging, voice and data. So in total OUR bill will be $150. That’s a $300-$400 savings in our pocket and an individual rate plan cost of $75 per user. Verizon who?

Technology
Palm/Verizon kept insulting my techie sensibilities with the paltry upgrades they were giving the Palm Treo. I LOVED the Treo but even now with the 755p, its still not an upgrade worth spending Treo money on.

The iPhone is a superior device, not perfect but I believe for my needs, the best on the market. I am not particularly picky so you won’t see me crying for the lack of a camera recorder on the Howard Forums.

The Voyager released by Verizon last month was made in response to the iPhone. It is in no way innovative which means that this will be the ONLY version of it you will have. That’s it. Verizon hoped to sell a few thousand units by the end of 2007 while the iPhone is shooting for somewhere in the millions? How is that the iPhone killer or the answer? Sure, it builds on the iPhone weaknesses but really, if Verizon planned to come with it, then they would have given us the iPhone features and built upon its weaknesses in the Voyager. Instead, they chose to copy and create a device, which pales in comparison to the iPhone.

People tend to stay with their cell phone providers for a variety of reasons. However, I could no longer justify the crazy bills due to having a high maintenance smart phone. So there you have it. Those were my reasons and I swear I haven’t looked back.

photo credit: CarbonNYC

May is around the corner which for some means graduation from high school, college or graduate school. I remember the feeling well. And, while it meant being released from the bosom of self discovery into the arms of adult responsibilities, I looked forward to it with enthusiasm.

I moved to DC in 2003 and I remember talking to my Uncle about all the things I’d need to take into consideration on my meager salary. He wanted to make sure that I was well informed about the realities of adulthood which meant being independent and paying for everything on my own. Now its my turn, for those of you that are graduating high school, college or even graduate school, here are 8 frugal and cost cutting tips to take into consideration when spreading your wings.

Apartment

Consider the cost of living wherever you are headed. After living in NYC for most of my life and then moving to DC, for some reason I thought apartments were dirt cheap since I was moving to the “south”. Ha! I told my uncle that I’d found an apartment for $580 per month in NE DC (not knowing a lick of information about the area mind you…) he just agreed to take me over to the area to judge for myself. While he got a hearty laugh, as I realized we were now in the not so great part of DC, I almost broke down when I realized that where I actually wanted to live, Alexandria/Arlington, VA was more like $1100 per month.

I knew that was out of my budget and regretted taking the position because I wasnt able to afford to live in one of the better parts of town. I didn’t want a roommate and settling for NE DC (no offense anyone) wasn’t in the cards. Looking back I should have considered a roommate in a better part of town. What did I do? I chose an apartment in an OK part of town for $750 per month and lived solo. I’d never live there again but it worked for the time being and I was able to save money.

Lessons Learned:

• Visit the new city before signing a lease or settling on a particular part of town.
• Consider having a roommate or two, as this greatly subsidizes the cost of living in a better part of town while meeting new people
• If you aren’t splitting utilities, find an apartment that includes utilities in the rent. With rising utility costs you’ll avoid paying the high heating/energy bills depending on the season.

Transportation

DC is very different from NY in that people who move here aim to live near their place of employment, while in NYC, its pretty normal to have a 90 minute commute to work getting from Queens to Manhattan. Imagine my excitement when I figured out that my commute would be 20 minutes max! Well that’s because my apartment was walking distance to the metro and I was also 5 minutes from the beltway. If I drove in then my commute increased to an hour because of the traffic getting into DC.

Lessons Learned

• Choose an apartment or house within walking distance of public transportation the metro
• Forgo purchasing a car if you live near a metro as this will save you money on a possible car note, parking, fees, gas, insurance and maintenance
• Before signing the lease, take public transporation around your neighborhood and to work as you would on a typical day. As you get settled in, you’ll be familiar with the area and hopefully not skip a beat as you make your way around your new neighborhood.

Set Up Automatic Bill Pay for all Bills

This includes student loans and credit cards. Don’t risk getting hit with a late fee because you’ll get so caught up in your move that financial obligations fall through the cracks. As I got settled into my new apartment a few bills didn’t get paid because I totally forgot. Why? the credit card company hadn’t sent the statement to my new address and it slipped my mind to call and pay the bill. Also keep in mind that when you pay over the phone, most credit card companies charge you a convenience fee and using checks opens yourself up to identity theft and possibly not mailing the payment to the correct address. If you must use snail mail, use the envelope that accompanies your statement.

Lessons Learned

• Set up automatic bill pay to ensure on time payment of all monthly financial obligations
• If you must use snail mail, use the enclosed envelope that accompanies your statement

Compare Cost of Living with New Salary

This was one of my biggest mistakes when moving to DC,not understanding what my salary would afford. I saw $23, 000 and thought, oh Im rich! I was sadly mistaken and in for the shock of my life when I realized I didnt have enough money to go shopping for new clothes or eat out for lunch with my colleagues. Had I known how to negotiate a better salary I might have been in a better position once I moved here. While I know some believe in paying your dues, I believe strongly in paying the bills. And, after spending 4 years and amassing thousands in student loans, college graduates should command salaries that will keep them just above the working poor, ie living paycheck to paycheck.

Command what you are worth and don’t settle for a salary that will limit you in terms of quality of life and being able to pay your bills, save and live comfortably.

Lessons Learned

• Master the art of negotiating your salary if the offer falls below your target goal
• Compare the cost of living with your salary offer and determine if you will be able to save and cover your monthly expenses without having to eat Ramen Noodles every night
• Use the Paycheckcity calculators to determine how much money you will actually take home every pay period

Sign up for a Local Food or Grocery Charity

The cost of groceries here in DC is higher than NYC. *shrug* Don’t ask me why as I thought the opposite would be true, I was quite surprised after leaving my local Giant supermarket one afternoon. Neighbors told me about Sharedc.org which allowed me to get groceries on the cheap at $18 a bag. This included fruits, veggies, meats and some snacks. It was enough to subsidize my grocery spending significantly. I still toy with the idea of doing the same thing now given the rise in food expenses.

Lessons Learned

• Compare prices of your food staples and create a price book to help you keep track of your favorite items
• Sign up with local food charities like ShareDC.org or Angel Food Ministries
• Cut coupons from the Sunday newspaper to save even more money
• Utilize sites like The Grocery Game to compare local sales in your area
• Buy in bulk in addition to utilizing food charities
• Plan your meals for the week and use leftovers for lunch

Decorating Your new Diggs

While I was on a Ms Independent kick, my mom did purchase my first bedroom set and my uncle purchased all of my kitchenware, bedroom and bathroom linens. I went for a while without real living room furniture because I refused to go into debt for furniture I wouldn’t take with me to the next apartment. I advise you to o the same. I scoured Craigslist for a futon frame and bought a cheap futon mattress from a retail store, bought a 20 inch TV for $30 and a coffee table set for $55. My living room was now complete! All courtesy of Craigslist.org. My futon doubled as a bed whenever friends stayed over and I had a working TV along with a semi new coffee table set. Had I gone out and purchased a new living room set it would have set me back over $1000.

Lessons Learned

• Check into semi used furniture to cut on the cost of furnishing your new space

More Lessons Learned….

• Spend Less than you Earn while Devising a Plan to Earn More
  • Create a budget and stick to it. Know how much you need for monthly bills and how much you have remaining for discretionary spending. While keeping this in mind, remain focused and purposed in devising your next step. Set career goals that will enable you to be promoted by learning new skills through graduate school or taking on extra responsibilities.
• Buy New Work Clothes on the Cheap and Recycle What You Already Have
  • Stores like Charlotte Rousse, Forever 21 and H&M are a godsend in helping a fab fashionista remain updated on the cheap

While this is a new and exciting time in your life, make a serious attempt to reign in your spending habits as this will be useful as you learn to make better decisions when it comes to money. What are some tips you have for the new graduate in a new town? How did you handle your finances in your first year after college?

photo credit: CarbonNYC