It might seem weird for me to offer my favorite blogs on the topics of saving money and being frugal. I'm filing bankruptcy, right? So what would I know?
I have to say that over the last two years we've become significantly more responsible with our money. We're paying for things that we charged long ago as well as for a drop in our income after I had my child. I feel like I have a pretty good handle on our day-to-day and future funds.
The Simple Dollar is my hands-down favorite blog. It's the only one I subscribe to via email and read every day. All the others I check in with on occasion.
No Credit Needed is another blog I enjoy quite a bit.
Five Cent Nickel
There are a few others; I'll dig them up when I get a chance.
Sunday, February 28, 2010
Saturday, February 27, 2010
Books
A few days ago I mentioned a book called Maxed Out. I also mentioned a few others.
I haven't opened Raising Financially Fit Kids yet.
I started Credit Card Nation. The author of Maxed Out makes a comment about CCN, basically saying that it's a dry read. I agree.
It's overly-complicated. I hate it when I feel like an author is trying to impress me by using as many large words as possible in a sentence. I have a large vocabulary, so it's not that I don't know what the words mean... there's a flow and ease of reading that allows me to absorb the text much more quickly when it's not written in an overly-complicated manner. It's part of the reason I love reading blogs. I love the personal and conversational tone.
Maxed Out was written so that it was easy (and amusing) to read. Credit Card Nation is sitting on my bookcase. I haven't read past the first three pages and I probably won't.
I'm about a third of the way through Getting Credit After Bankruptcy. Hmm. Where to start on this one.
(Provided so you can see what book I'm talking about; this is one I don't recommend buying.)
First of all I'm not impressed. I've even outright laughed, scoffed, and harrumphed while reading. The sole qualifications of the authors seem to be that they went out and gained credit after filing bankruptcy. And while "been there, done that" anecdotal evidence is often important to me when getting advice from a friend, I'm not sure it qualifies me to trust someone to my financial future.
Some sections of the book seem downright thrown in as an after-thought. For example there are 32 suggestions on how to save money. These are clearly outdated and random. Sending letters rather than calling is no longer a good strategy. Giving up the beloved family pet is a rather callous suggestion. Whole books and blogs have been devoted to saving money... it's a topic with far more scope than a two-page chapter can cover.
The author offers biased opinions that are offensive at times. Not really offensive, and not enough to make me not want to finish the book, but I don't feel that the personal bias adds anything to the experience. (Example: Complaining about driving an American-made car, because that's all they could get approved for.)
Finally (and remember this is not a whole book review, just my first impressions), I think the advice goes against my personal goals for bankrutpcy. I DO want to reestablish credit, of course, but I'm not going to run out and lease a car. Leasing a car is one of the first action steps (after opening a checking and savings account, getting a credit card, etc.) the author recommends. After that is getting a home-equity loan.
Their list of qualifications (their approved credit) is long and impressive. Getting approved for and charging furniture and, later in a different establishment, a camera? They eschewed going cash-only though it was their initial goal, but it seems overboard. It just strikes me like all of these things would be horrible temptation for someone who can't control their spending. How many open lines of credit do we need? How many cards?
Again - I'm no expert. I've changed my opinions about a lot of things several times as I've learned more. I shake my head and laugh at my prior ignorance. So I might be judging this one too harshly.
Links to the other books I mentioned:
I haven't opened Raising Financially Fit Kids yet.
I started Credit Card Nation. The author of Maxed Out makes a comment about CCN, basically saying that it's a dry read. I agree.
It's overly-complicated. I hate it when I feel like an author is trying to impress me by using as many large words as possible in a sentence. I have a large vocabulary, so it's not that I don't know what the words mean... there's a flow and ease of reading that allows me to absorb the text much more quickly when it's not written in an overly-complicated manner. It's part of the reason I love reading blogs. I love the personal and conversational tone.
Maxed Out was written so that it was easy (and amusing) to read. Credit Card Nation is sitting on my bookcase. I haven't read past the first three pages and I probably won't.
I'm about a third of the way through Getting Credit After Bankruptcy. Hmm. Where to start on this one.
(Provided so you can see what book I'm talking about; this is one I don't recommend buying.)
First of all I'm not impressed. I've even outright laughed, scoffed, and harrumphed while reading. The sole qualifications of the authors seem to be that they went out and gained credit after filing bankruptcy. And while "been there, done that" anecdotal evidence is often important to me when getting advice from a friend, I'm not sure it qualifies me to trust someone to my financial future.
Some sections of the book seem downright thrown in as an after-thought. For example there are 32 suggestions on how to save money. These are clearly outdated and random. Sending letters rather than calling is no longer a good strategy. Giving up the beloved family pet is a rather callous suggestion. Whole books and blogs have been devoted to saving money... it's a topic with far more scope than a two-page chapter can cover.
The author offers biased opinions that are offensive at times. Not really offensive, and not enough to make me not want to finish the book, but I don't feel that the personal bias adds anything to the experience. (Example: Complaining about driving an American-made car, because that's all they could get approved for.)
Finally (and remember this is not a whole book review, just my first impressions), I think the advice goes against my personal goals for bankrutpcy. I DO want to reestablish credit, of course, but I'm not going to run out and lease a car. Leasing a car is one of the first action steps (after opening a checking and savings account, getting a credit card, etc.) the author recommends. After that is getting a home-equity loan.
Their list of qualifications (their approved credit) is long and impressive. Getting approved for and charging furniture and, later in a different establishment, a camera? They eschewed going cash-only though it was their initial goal, but it seems overboard. It just strikes me like all of these things would be horrible temptation for someone who can't control their spending. How many open lines of credit do we need? How many cards?
Again - I'm no expert. I've changed my opinions about a lot of things several times as I've learned more. I shake my head and laugh at my prior ignorance. So I might be judging this one too harshly.
Links to the other books I mentioned:
Friday, February 26, 2010
First Look at Paperwork
On this website I found a list of free documents for my district that are needed to file for bankruptcy.
I printed out the free bankruptcy forms, looked them over, and went back and filled in as much as I can with what I have in front of me (and while watching my toddler).
First thoughts: Damn, I just killed a lot of trees. They don't provide enough room for some things. The instructions provided on the forms aren't very clear, and I'm glad I have an attorney on my side as well as internet for reference.
Second thoughts: Is there less oxygen in here? Gasp...
Third thoughts (after resuscitation): I pity the people who have to look at legal forms day in and day out. Especially with all the mistakes people must make. Yikes!
I printed out the free bankruptcy forms, looked them over, and went back and filled in as much as I can with what I have in front of me (and while watching my toddler).
First thoughts: Damn, I just killed a lot of trees. They don't provide enough room for some things. The instructions provided on the forms aren't very clear, and I'm glad I have an attorney on my side as well as internet for reference.
Second thoughts: Is there less oxygen in here? Gasp...
Third thoughts (after resuscitation): I pity the people who have to look at legal forms day in and day out. Especially with all the mistakes people must make. Yikes!
Regrets: Not Planning
I didn't find out about various ways of budgeting until a few years ago. When it was too late. I used to just say, "these are the bills that happen every month, we'll pray for windfalls to cover the rest." Okay, I didn't actually say that, but my actions did.
I currently like two theories of budgeting:
Zero-Based Budgeting and FSA Budgeting
Zero-Based is the kind of budgeting that would have kept us out of debt. We used to look at our account at the end of the month and say, "Hey, all our bills are paid, we have an extra $40, let's go out to eat again."
With Z-B you figure out all your income, all your expenses, and then make the total 0 at the end of the month. EVERY dollar is earmarked for something. And if you find your electric bill was $20 under what you had budgeted, that $20 immediately gets allocated to something else.
For years we would spend the "extra" without really thinking of it. Even though we had big expenses coming up, things we needed to plan for, debt to pay off, we'd spend it. I can't tell you how many $20 Target items we've added onto our household good shopping trips because "we could afford it".
FSA Budgeting--probably not the correct technical name, but it's what I call it--means taking all your non-monthly/irregular expenses and breaking them down over 12 months.
Let's say my normal bills total $2000 a month. But then I pay my car insurance every 6 months ($600) so that I get a bigger discount, get my teeth cleaned twice a year ($80 each time) plus an exam (another $50, let's say). I also need three oil changes a year ($30 each) and new windshield wipers ($20).
Car Insurance ($1200) plus ($160) plus ($50) plus ($90) plus ($20) = 1520.
1520 over the course of 12 months is about $127.00.
So my expenses aren't really $2000 a month or $2127 a month, but the latter gives me a chance at making sure all my occasional expenses don't fall through the crack.
Some of my actual FSA categories are:
HOA Fees
Dentist Appts
Car Maintenance (oil changes, wiper blades, etc.)
Car Repairs
Car Replacement
Doctor's Visits
Christmas/Birthdays/Holidays/Gifts
License Renewal
AC and Large Appliance Replacement
Now... have I been putting anything into my FSA account? No. I'm falling far, far, short of what I need. That's part of the reason I'm having to file. Not only are we living paycheck-to-paycheck, we're only paying our basic expenses and minimum payments.
If I had the same combination of Z-B and FSA budgeting that I use now, things would have been really different.
Can I consider this a very expensive financial education? I guess.
Do I wish I had done many things differently? Hell yes. I would have less clutter, less stress, and far less debt.
So my regret is not planning beyond my immediate comfort and needs.
I currently like two theories of budgeting:
Zero-Based Budgeting and FSA Budgeting
Zero-Based is the kind of budgeting that would have kept us out of debt. We used to look at our account at the end of the month and say, "Hey, all our bills are paid, we have an extra $40, let's go out to eat again."
With Z-B you figure out all your income, all your expenses, and then make the total 0 at the end of the month. EVERY dollar is earmarked for something. And if you find your electric bill was $20 under what you had budgeted, that $20 immediately gets allocated to something else.
For years we would spend the "extra" without really thinking of it. Even though we had big expenses coming up, things we needed to plan for, debt to pay off, we'd spend it. I can't tell you how many $20 Target items we've added onto our household good shopping trips because "we could afford it".
FSA Budgeting--probably not the correct technical name, but it's what I call it--means taking all your non-monthly/irregular expenses and breaking them down over 12 months.
Let's say my normal bills total $2000 a month. But then I pay my car insurance every 6 months ($600) so that I get a bigger discount, get my teeth cleaned twice a year ($80 each time) plus an exam (another $50, let's say). I also need three oil changes a year ($30 each) and new windshield wipers ($20).
Car Insurance ($1200) plus ($160) plus ($50) plus ($90) plus ($20) = 1520.
1520 over the course of 12 months is about $127.00.
So my expenses aren't really $2000 a month or $2127 a month, but the latter gives me a chance at making sure all my occasional expenses don't fall through the crack.
Some of my actual FSA categories are:
HOA Fees
Dentist Appts
Car Maintenance (oil changes, wiper blades, etc.)
Car Repairs
Car Replacement
Doctor's Visits
Christmas/Birthdays/Holidays/Gifts
License Renewal
AC and Large Appliance Replacement
Now... have I been putting anything into my FSA account? No. I'm falling far, far, short of what I need. That's part of the reason I'm having to file. Not only are we living paycheck-to-paycheck, we're only paying our basic expenses and minimum payments.
If I had the same combination of Z-B and FSA budgeting that I use now, things would have been really different.
Can I consider this a very expensive financial education? I guess.
Do I wish I had done many things differently? Hell yes. I would have less clutter, less stress, and far less debt.
So my regret is not planning beyond my immediate comfort and needs.
Pre-Bankruptcy Payments Have More Impact than Bankruptcy Itself
Article About This
Is it worth $600 to have less impact to my credit score?
Today is February 26th.
My due dates for debt are March 6, 12, and 14. We should receive our tax refund sometime in March and as soon as we do we're going to get started on our paperwork.
The attorney said it often takes 4 weeks to get everything finalized for paperwork before filing. I'm extremely organized as far as important things are concerned and can probably have most, if not all, of what I need before I even retain the attorney. Then it's a matter of transferring it onto the correct forms.
So chances are--as long as my mom's situation get straightened out--I'll only be 30 days (because it's less than 60) late on three accounts, all of which were previously current.
Is it worth $600 to avoid a hit to my credit?
From what I've read a 30 day late payment can affect you for 1-2 years. However, this article also points out that credit sometimes improve because the income to debt ratio improves so much. Will those two factors cancel each other out?
Things to ponder...
Is it worth $600 to have less impact to my credit score?
Today is February 26th.
My due dates for debt are March 6, 12, and 14. We should receive our tax refund sometime in March and as soon as we do we're going to get started on our paperwork.
The attorney said it often takes 4 weeks to get everything finalized for paperwork before filing. I'm extremely organized as far as important things are concerned and can probably have most, if not all, of what I need before I even retain the attorney. Then it's a matter of transferring it onto the correct forms.
So chances are--as long as my mom's situation get straightened out--I'll only be 30 days (because it's less than 60) late on three accounts, all of which were previously current.
Is it worth $600 to avoid a hit to my credit?
From what I've read a 30 day late payment can affect you for 1-2 years. However, this article also points out that credit sometimes improve because the income to debt ratio improves so much. Will those two factors cancel each other out?
Things to ponder...
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