My apologies.....

It seems once again Google has gone after this blog, with no reason, as a "spam" blog. Despite the last time, when I spent TWO months writing to them and requesting reviews, they insist on this type of behaviour.

I sincerely apologize to anyone who reads this blog, or would like to contribute, for this interruption. This blog is NOT SPAM!! I write every article myself. I often include links to other sites or articles that might be of interest to readers on this blog. I never claim these linked articles/sites as my own. I believe in giving credit where credit is due. When I do provide a link to another resource, I will often give my own thoughts, reactions, comments, or insight on the content of the linked resource. Even when I do provide my own review of the linked content, I will almost always encourage you directly to review the linked resource yourselves.

My hope is that Google will stop these unprovoked, and undeserved, attacks on this blog. According to their warning message, this should be resolved in two days (and hopefully not the TWO MONTHS it took last time). I hope that you all will keep reading, despite this issue.

My best wishes to you all as you strive for your financial health and well being.

Being Debt Free

As the world economy has begun, and continued, to decline in the last few quarters, many people have begun to look seriously at their own financial situations. One thing I have heard from many people is a wish that they could be debt free, or at the very least, in less debt than they are.

I recently came across this post, "20 Things that Rock About Being Debt Free", and I was impressed by the description. I agree with every point on that list. There are many wonderful things about being debt free, and I encourage everyone to read this article, and maybe find a motivation to start their own debt reduction journey.

Taking a Look at Your Financial Health: Review Your BUDGET!

Financial preparedness is an important part of life, especially in these perilous financial times.

One essential step to being financially prepared is having a budget. It doesn't have to be complicated and involve the use of advanced mathematics, it just has to work for you. Budgets often start out simply, as you learn about your finances, and can evolve to be more complicated as life changes and you get a better hold on your financial health.

Once you have a budget in place, it is important to review your budget periodically. Make sure it is still working for you and your family. Are there new expense streams that you aren't including? Are there old expense streams that you can eliminate? Have you considered adding a "rainy day" fund to your budgetary expenses? Take time with your spouse to review your budget and make any changes that might be necessary.

If you don't have a budget yet, this is a good time to get an idea of what you might need. There are several great resources for starting a budget.

The Church of Jesus Christ of Latter-day Saints offers a basic budget worksheet.

Brigham Young University also offers a series of on-line courses in personal financial management at their new personal finance website.

Other resources are available from MSN Money, ranging from topics such as budgeting to college expenses.

Even the government offers resources for personal financial management through the Federal Reserve.

Talk to your friends, your neighbors, your spouse. Use the resources above, share your ideas, your successes and your failures. Take this time to get a look at your financial health.

Budgeting and Financial Communication

Another important part of your financial health is managing your money....a.k.a. BUDGETING!

Keep in mind that the word "BUDGET" means something different to everyone, and that that is okay. They way that you choose to budget may not be the same as your neighbor, or even your spouse.

BUDGET is not a bad word! The goal of a budget is not to restrict you, starve you of fun, or make you miserable. The goal of a budget is to help you be in control of your money, to be responsible with your stewardship.

While the execution may vary, the basic principle of a budget is to help you spend less than you earn. There are a multitude of ways to do that. I have heard ideas ranging from envelopes of cash for expenses, to complicated accounting practices involving electronic tracking of expenditures. No way is going to be the right way for everyone. You have to find a way that fits your finances, your lifestyle, and your knowledge....and keep in mind your way may change as those factors do!

With that said, there are a few things to keep in mind when making a budget:

1. Know what your expenses are. You can't budget for things you don't know about or acknowledge. Keep track of what you spend for a time (most appropriately for a month), holding on to receipts can help. After tracking your expenses for a time you will have a better idea of where your money is going.
2. Be realistic about your expenditures. Make sure your budget realistically reflects your needs. Budgets need to cover not only your bills, but also your expenses. So, if you buy that latte or donut every morning but don't have it as part of your budget, you could get derailed pretty fast. You have to be honest with yourself (and your partner) about what you spend and where you are spending it.
3. Know what your income is. This seems pretty easy, as we all generally get paystubs or some other document telling us how much money we are receiving. Make sure you know how much you are getting, especially keeping in mind things like taxes, fees, retirement, etc that may be automatically removed from your pay before it gets to your bank or your hands.
4. Make sure your budget doesn't exceed your income. When you match your expenditures up to your income, make sure that they are at the very least the same, but preferrably having expenses lower than income. If you find that your expenses exceed your income, it's time to do a financial inventory and see what can be cut or at least cut back.
   
5. Remember budgets are dynamic. What your budget looks like today will likely be different than it will look in a year or two. Make sure to periodically review your budget to make sure it continues to meet your needs. You may find expenses that are new that need to be added, old expenses that no longer exist, or amounts that need to be adjusted. You may start out with a simple budget which may become more complex as you learn more about your money and budgeting. Don't be afraid of the change!
   
6. Share the budget. If you live with other people (like children or a spouse) make sure that they know what the budget is....especially if they spend money from that budget. This can also be a useful teaching tool for your children.
7. Don't be afraid to get help. Budgets don't make themselves, and financial education is not generally prominent. Don't wait to make a budget simply because you think you don't know what to do. There are plenty of resources (many of them free) to help you get started. Look online (see the sidebar for some links to financial resources), you can find free worksheets, budgeting tips, even forums for people to discuss budgeting. Ask friends and family for suggestions or help. Make use of community resources available. Don't be afraid of budgeting, learn, get help, and get started!
   

While budgeting will certainly help with gaining control of your financial help, if you have a partner, FINANCIAL COMMUNICATION is another vital aspect of your financial health. Your finanical health is a joint venture between you and your partner, and you both are stewards of that financial health, responsible for its condition.

Just as there are a variety of ways to create your budget, there are a variety of ways to divide responsibility and facilitate communication. Regardless of how you choose to budget or divide the financial responsibility, good commuinication is essential.

Here are a few ideas on how to facilitate financial communication, and keep everyone in the loop, that were shared at our monthly meeting, and elsewhere:

1. Hold regular "financial" meetings. This was the most stated suggestion. Frequency varied from weekly to quarterly, but most suggestiosn were for monthly meetings. You and your partner can go over your budget, discuss expenses for the month, discuss future expenses, and share your experiences with your financial responsibilities.
2. Be financially honest. You shouldn't be afraid to share your financial concerns, successes or failures with your partner. It may not be easy, but financial honesty is essential for good financial health and a good partnership.
3. Have some place where financial health is documented. These suggestions ranged from a checkbook ledger to electronic logs (such as money management software). Having this information written down can help to facilitate communication, and help you both keep a handle on your financial health.
4. Be involved. While one might be responsible for paying bills, and the other for buying groceries, you should both be involved. You may choose to divide financial responsibility in different ways, but make sure you both participate in this important aspect of your partnership.
5. Take a money day. We all take sick days, vacation days, even holidays, but how many people think to take a money day? Take a day, sit down with your partner, and talk about your money. Take your monthly meeting to a new level. This can be done as often as you want, but is recommended that you do it at least once a year. Set financial goals, review your budget and make any changes needed, take stock of your financial health. Discuss your financial responsibilities with your partner and make changes in that if needed. Don't want to pay bills this year, well maybe you can trade responsibilties or adjust your range of responsibilities to what suits you now. Give your financial picture a good looking over.
6. Make your plan together. While, on some level, this may be best done before your partnership begins (in fact experts recommend you discuss finances before getting married), sometimes we get started late in the game. You may have missed the pre-marital window, but that is no reason to not have a plan. Discuss with your partner your expectations for your finances and for each other. Very rarely do two people with exactly the same financial ideas get married. You'll likely have to compromise, but if you sit down together to make a plan, it is more likely to work. But dont' forget, even the best laid financial plan needs to be dynamic. Life changes and so will your plan!
   

The process of having a workable budget and good financial communication will take time....nothing that important happens overnight! Don't be discouraged if the process seems to take longer than you would think or like. By taking the first step to create a budget and share financial communication with your partner, you have done the hardest part.

Financial responsibility, living with in our means, and being financially healthy are important aspects of our lives. This is made even more poignant by the recent economic crisis sweeping across the world. Some times it is hard to think of the "lean" times when there is plenty, but the lean times will come, and having a handle on your finances will make those times much less scary and stressful.

Resources and Articles:

Happily Living Within Our Means

Family Finances

Where does the money go?

Five Steps to Financial Well-Being

Know Where your Money goes

Make Marriage a Partnership - Couples Counseled at Fireside

Making a Financial Rainy Day Plan

With the changes happening in the world these days, it is imperative that everyone be prepared financially. One way to be prepared for those turbulent times is to have an emergency savings fund or a "rainy day" fund.

While this will take time, experts recommend having at least 6 months, but preferably a year, of your expenses set aside in case of an emergency (such as a job loss, disability, accident, etc). You can start out small (say one pay period) and work up slowly (say the next step being 3 months) toward whatever level you have decided on. A little savings is better than none.

While this doesn't mean that you have to rush out tomorrow and have all your rainy day money set aside and every contingency taken care of, you do have to start somewhere.

Here is what it does entail:

1. Review your income. Determine how much you have coming in.
2. Review your expenses. This ties into our mini-challenge for the last period of making a budget.
3. Determine what your expenses would be for a 6 month period. Assume that for this 6 month period you have no income coming in.
4. Now you know how much you need to save.
5. Determine a goal length for saving your total. Consider saving it over a year, two years, 6 months, whatever you think your income will allow and what fits your needs and wants.
6. Decide on a way to break down the total into manageable chunks, whether that is by week, by pay period, by month, etc. In whatever way fits with your timetable and income.
7. When you have determined how you want to break down the total, make a plan for saving it. There are plenty of ways to find the money.

• Add it as a budgetary item, which is easy if you are breaking the total down by weeks or pay periods.
• Consider assigning "excess" funds, such as tax refunds, pay bonuses, or gifts to meet your total.
• Save your spare change from cash purchases, and after a set time period, deposit the total towards your goal.
• Have 26 pay periods a year instead of 24? Consider budgeting using the 24 and deposit the "extra" 2 pay periods into your rainy day fund.
  

After you've made your plan (and don't forget to include your partner), think of ways to keep yourself on track.

1. Consider making a chart that will allow you to mark off as you contribute to your rainy day fund. Think of those giant thermometers that help us see how much we've contributed to various charities. This can help motivate you as will have a visual reminder of your progress.
2. Think of a reward for when you reach your goal. Maybe a dinner out, a new movie, something to look forward too....just make sure that you have set aside funds for that too :)
3. Keep a "checkbook" ledger to help you track your savings.
4. Consider adding all the dividends and interest from investment and bank accounts.
5. Consider giving up a vice or luxury (such as the morning latte, cigarettes, candy bars, etc) and putting that money toward your goal...it could not only make you richer, but healthier too!

Now, you are on your way to having a rainy day fund! Remember this is meant to relieve some of your financial stress, and give you some security.

As time goes on, your expenses and savings may change. Remember to review your "rainy day" plan and adjust it as is necessary for you.

If you have any easy or cool ideas on how to set aside those pennies, or success stories on how you have saved, please post them! Even if it is just a little at a time, you can do it!

Special Cards for Special people

I will apologize now, if this offends anyone, but I wanted to share. While this doesn't have much to do with stretching the dollar, it does have something to do with being thankful for the dollars we are able to earn.

A friend forwarded me this address. The idea is to make an extra card or cards this holiday season, and send one on to the address below

A Recovering American Soldier
c/o Walter Reed Army Medical Center
6900 Georgia Avenue,NW
Washington,D.C. 20307-5001

These cards will go to some very deserving service members who have been injured in the line of duty. They don't have to be extra fancy, in fact I imagine that many cards that will be sent will be store bought. But, I thought it might be mighty nice for these men and women to receive some cards.

Please don't feel as if I am demanding you participate, I am not. But, if you are going to be doing some holiday cards, please consider sending one. I have the opportunity to live in a military community, and I have the honour of seeing first hand the sacrifice that our military members and their families make on our behalf....this is just a little way to say thank you.

So I looked at the snopes website and it had a link to another snopes website that talked about the Walter Reed address and it actually said that is false. Walter Reed will not accept cards to "recovering soldiers." The website on that is:
http://www.snopes.com/politics/christmas/walterreed.asp
BUT, it is true that this year the Red Cross will be hosting an event like that where we can all send in cards and they will distribute them. The website about that is:
http://www.redcross.org/email/saf/

Death of the Coupon

I found this article on MSN.com. I am intrigued by the prospect of having my coupons waiting at the register for me.

Here is the link: Death of the Coupon

Now my comments. I do some drawbacks to this system. I can use multiple paper coupons, and depending on the store, the number I can use varies. So if I buy 12 packs of Huggies diapers, theoretically, I can use 12 paper coupons. There was no information on the use of multiple copies of the electronic coupons.

Secondly, some stores do not have shopper loyalty cards (which is not necessarily a bad thing), such as DeCA (military) commissaries. What happens when you want to use electronic coupons at these locations?

Thirdly, what is the cost to set this system up at stores? If the cost of introducing, tracking, and ensuring the proper application of these electronic coupons, and associated systems, is too expensive, stores may not be willing to utilize it.

As noted in the article, some stores are already making the transition. In reality, it seems that introduction should not be more difficult that the application of rebates that stores often link to shopper loyalty cards. For several chains, your card automatically gets you rebates on certain products, with little or no effort on your part, and those rebates are tracked and displayed on the stores website.