The Budgeting Babe

The Budgeting Babe Has Moved!

2010-09-27T15:17:00.000-05:00

Hi friends -

It's been great connecting with you on Blogger the past 6 years. As of today, I'm excited to share that The Budgeting Babe has moved over to WordPress at www.thebudgetingbabe.com. Please update your bookmarks and the discussion on my new site. And before I forget, thanks a million for being the best readers a girl could want. You honestly make every post worth it.

Yours in personal finance,
Nic

Budeting Babe on Hiatus

2009-09-26T09:37:00.002-05:00

I've always hated housekeeping. But as I look around this blog, it's obvious that housekeeping is sorely needed. The world of the web has changed rapidly since I set up the blog in 2004 and so has my life. Therefore, I'm going on an indefinite hiatus to redesign the site and rethink what Budgeting Babe means to me.

Among my tasks: clean up the links, organize posts, update graphics and widgets, figure out my e-mail situation for the site and potentially even switch to another site host, provided I can learn HTML. And of course, there's the issue of posting. During the last year, my writing has become uninspired. I need to find my voice again as a writer, rather than just posting thoughtless one-offs becasue I haven't written anything recently. That's a disservice to you guys, and a waste of all our time.

So, allow me this winter to grow and change and learn some new things. I'll leave the old site up so it's still searchable (I've heard about a few people finding the site through search engines), but I won't be posting anything new for a while. Good luck to you all on your financial journeys, and see you soon.

My Magical Summer of Wonder

2009-08-31T21:31:00.004-05:00

It’s a chilly late summer evening, and during my run tonight I feel Fall in the air. It’s a bittersweet feeling, knowing one of the best seasons I’ve had in years – my magical summer of wonder (MSOW) –is coming to a close. I wish I could take the MSOW, ball the whole thing up and keep it in my pocket for the winters ahead. The memories I’ve made and experiences I’ve had this summer are sure to be nourishment for the long, tough journeys I’ll one day face. But for now, I’m free to revel in the delight of fleeting golden evenings, enjoy the last days of flip-flopped toes and spend cool nights with windows wide open.

MSOW was expensive, true, but it was also a celebration of who I’ve become and what I’ve accomplished during the past 10. As you know, I ran a triathlon, quit my job and found a new one and celebrated my 30th birthday with 50 of my closest friends in my parents’ backyard. I also traveled to Michigan, Wisconsin, Nevada and Colorado, kayaked a whitewater river, biked down a mountain, dressed like a banana, saw my favorite band live, bought a computer and a new microwave, invested in a new wardrobe and spent tons of time with my family… and I did it all without collecting any debt.

Times are tough, yes, but what I thought would be a summer filled with uncertainty due to the economy turned into one of joy. (Two weeks off and a dream job will do that for you.) It was unexpected. It was delightful. And here I am now, watching that fabulous MSOW pack up and drive away as I stand on the curb waving wistfully.
So what will I take from this MSOW? What lessons have I learned?

1. Be open to new experiences. If there is one theme to this summer, it’s to be unafraid. Even if your body is shaking and your limbs are paralyzed at the starting line of a race. Even if you feel glued to your office chair, the same one you’ve sat in for 10 years. Even if you think there’s no way you can do it. Just try. Step out of your comfort zone. You’ll never know what will happen unless you take the first step. Open yourself to the possibilities.

2. Celebrate the small things. Turning 30? Throw a party. Turning 31? Get your friends together. Life is too short to wait for something huge to happen, so take advantage of the time you have together and celebrate each other. I know that this year of 30th birthday parties for me and all my girlfriends was a gift, and that one day we may be gathering for not-so-happy times. So while things are happy, get together, turn on the music, drink some wine and dress like fruit (or whatever makes you happy). The memories will last a lifetime.

3. Make the tough choices. I still don’t have a house. But that was the right decision for me. If I would have spent money on a downpayment when my lease was up, I would have no savings at all (we’re talking zero) if I would have lost my job. And at an agency, even at the one I was with for eight years, business is always cyclical. Translation: Losing everything was a possibility. So I held off on buying. It wasn’t an easy decision, but by the time my lease is up in April, I’ll be in a much more secure position: I’ll have a stable job and more savings.

4. Spend thoughtfully when you have to. We needed lots of new appliances this summer - computer, router, microwave, house fan. Our old ones were on their last legs, all working about ten percent of the time and the rest just causing headaches. So we had to spend some. But we bought on sale, and we bought with a card that gave us points and we paid off in the same month we bought. That’s how to spend smart.

Did you have an MSOW? What lessons did you learn this summer? Anything you’d like to share?

New Chapter, New Job!

2009-08-07T23:10:00.004-05:00

Blank pages. I often associate them with the negative (as in writers' block). But I recently made a decision to leave my agency job, where I had worked for eight years, in favor of a new position with a new company. I put in my notice, worked my last two weeks, took a two-week vacation to Colorado and have filled out all the paperwork for the the new job, which starts Monday. So this weekend I'm staring down the blank page, excited to see what this new chapter may bring. (Yes, Natasha Bedingfield says it better.)

You, my savvy, sophisticated readers, will understand that certain sensitivities arise when transitioning to a new job, so I haven't been able to write much and I can't share many of the details about salary, benefits, etc.

However, I will say this: For the past eight years at my former company, I learned and grew every day. The people I worked with were some of the best in the business and I plan on keeping in touch with most of them. MS&L Chicago will always hold a special place in my heart. I had a hard time leaving; in fact, I was a sobbing mess the day I walked out the door. The company, and my peers, were nothing but supportive during the entire transition.

But despite my fondness for my job and my co-workers, I simply couldn't pass up the opportunity that presented itself to me in the new job, working in communications for an Illinois-based university. (Need to find out if I'm OK to blog about it.) For many reasons, including my personal passions and interests, benefits and more, it seems to be the perfect job for me. I'm overwhelmed with excitement and thankful for opportunity.

So for those of you looking for jobs in this rough economy, maybe this provides a little hope. Feel free to post your questions about interviewing, networking, etc. here and I'll do my best to answer them this week.

I Finished my First Triathlon! ... But Accomplished so Much More

2009-06-16T00:10:00.005-05:00

“Today, you’re starting this race a different woman than you will be when you finish it.” Cheesy, I thought to myself when I heard the race announcer say it. I wanted to get going.

I was standing alone at the sandy start line, amidst 2,000 women in goggles, wetsuits and rainbow-colored swim caps, shivering from a mix of cold weather and deafening anxiety, struggling to push down the lump of panic that was slowly forming in my throat as the announcer spoke. This was the morning of my first triathlon, and though I was amazed by the energy, enthusiasm and emotion of the crowd, what I wanted most in the world at that very moment was a friend, someone to share it with, someone to calm me down. I was tired of explaining to all the nervous and smiling girls in my wave that I was, in fact, alone here; that I was racing by myself. I did not consider myself brave or courageous. At that moment I felt stupid for thinking I could handle such a thing. I wanted the race to start. I wanted the sun to come out from the clouds again. I wanted to see my family and my boyfriend and my friends.

But I had told everyone to arrive in time for my swim start at 8:24 a.m., not for the start of the race at 7:00 a.m., and so I was alone (and had been since 5:00 a.m.), surrounded by a swirl of competitors and energy and rubber and precautionary sunscreen. The only thing that kept me sane was Twitter; if I didn’t know anybody in the mob around me, I could at least broadcast my experience to calm my nerves. And so, I continued tweeting right up until B appeared at 8:00 and took my phone for me. It was the only thing I could do while waiting impatiently for the race to start.

I had no idea I would be so nervous. Ten weeks ago when I signed up, it was almost on a whim. I was planning to do a half-marathon in 2008 and was secretly hoping to follow up with a marathon in 2009, just in time to count the accomplishment before I turn 30. But instead I injured my back and ended up at the chiropractor, the doctor and the X-ray machine, with a prescription for physical therapy and no prognosis. I was frustrated and unhappy and gaining weight. And I hurt. Yet there was nothing wrong with me. “You have the Mladic back!” my dad pronounced. My dad has had two back surgeries. This was not welcome news.

My co-worker suggested a triathlon. For whatever reason, I signed on without giving it much thought. She sold it pretty well, “Anyone can do a triathlon. If you get tired, you can just sidestroke in the pool, pedal slowly on the bike or walk the run. It’s short. You can do it.” And I bought it. I signed up. I figured I could get at least three others to sign up with me. I overestimated my persuasive powers. Apparently not many people like doing three sports in one day.

I, on the other hand, thought it sounded fun and less harsh on my back than running every day. And so my training began, six days per week for ten weeks, running, swimming, biking and strength training.

At first people were supportive. My Facebook page was filled with messages of support. But that support quickly eroded. It was spring in Chicago and my friends didn’t understand why I wasn’t going out. My best friend, whom I love dearly, needing my support through some things in her own life, wished I would “get over this working out thing” I was doing. (Joking, of course, but half-way serious.) It hurt to not give all of myself for my best friend. But I couldn’t be up until two in the morning every weekend; for my health, for myself, I needed to focus on training. I invited her to start working out with me to start a healthy habit, but she declined. I tried to be there as best I could, but post-workout, work-night phone calls are usually pretty empty.

She wasn’t the only one I left hanging. “You know, sometimes you get on a streak where we see you often,” another close friend explained. “And other times you sometimes drop back. This is just one of those times. Nobody expects you to be out year round.” Still, it felt to me like everyone was out and about, whooping it up without me. And I was letting everyone down by not being “fun Nicole.” Despite my disappointing social performance, I kept my training schedule.

I made compromises for the sake of my workout schedule every day. To wash the dishes or go to the gym? To stay out with clients or go to the gym? Time and again, I committed to the triathlon. After a while, the commitment got easier. I was happy at the gym. I found a rhythm in the pool. I slept better after a hard workout. The stronger I felt, the better my back felt. Soon, my back was a non-issue and I was feeling great (with a very dirty house). In May I ran a personal best at a 5K charity run. My uncle told me it was the best he’d ever seen me run.

But as I listened to my body more and my distances became longer, I noticed another hurdle: My exercise induced asthma was getting worse. At the finish line of that personal best 5K, my chest tightened up. As my dad raced for my inhaler, I began to worry yet again that I wasn’t fit for a triathlon. But unlike my back issues, this time I didn’t put off a trip to the doctor or try to work through the pain. A trip to the allergist and a list of confirmed asthmatic allergens later, I started on a new regimen of lung treatments designed to get me through the triathlon. Within two weeks, my lungs were performing up to speed with the rest of my body. Physically I was ready.

Mentally, however, I was building myself into frenzy mode.

Two weeks before the race, with local temperatures hovering in the 50’s at night, I began obsessively checking the weather. The week of the race, I was in full panic mode. I was texting my coach -- the same friend who encouraged me to do the race – to share my concerns. Should I get a wetsuit? Water temperature turned into my favorite discussion topic. And it stayed that way until the day before the race.

The day before the race, the highest temperature didn’t even reach 60. It was pouring outside. The fitness expo was filled with amazon women, all who had wetsuits. I did not. I probably asked ten people what to do. Each had a different opinion. A 50-year old told me it would be no worse than a cold shower. A muscled, superfit athlete told me I absolutely needed one. I weighed the $300 cost in my head ($300 for 15 minutes?!?) and talked a vendor down to $150 for a suit. Ultimately it didn’t matter. Standing in the rain, trying on a suit too big for me, I learned not one vendor had a wetsuit for rental or purchase in my size. The nail was on the coffin. I was going to swim cold. I went home and chugged a bottle of Cherry Pepto.

That night, B and I checked into the host hotel, a Holiday Inn in Naperville, about an hour outside of the city. Another woman, also in total freak out mode, told me how mad she was about the hotel choice. Now, I know this sounds ridiculous, but the moment I stepped into the hotel I knew the universe was trying to tell me something. A six-foot-six, two-hundred-seventy-something pound man in a kilt was standing at the desk with a puppet on his arm, letting the puppet do the checking in. Behind me, a man with hair to his butt in head-to-toe tie dye was discussing photography with a couple in what I can only describe as renaissance gear. A few tipsy elf girls strolled off the elevator, looking for the nearest party.
“Sci-Fi convention,” the woman at the front desk explained. For some reason, a wave of relief rolled over me. I’m pretty sure that was somebody up there – my grandma, my grandpa – telling me to lighten up. Enjoy the moment. As I walked outside to gather my things, the sun broke through the sky.

Later that night, I ran through my pre-race checklist, packed my bags and set out my supplies for the next day: helmet, race belt, sports bra, tri-suit, shoes, Gatorade, banana and more. I slept well that night. As well as I could, I guess, considering I would awake at 4:30 a.m.

My alarm jolted me out of bed in what felt like the dead of the night. I dressed in the dark, rustled B out of bed and off we went, he sleepily and I electrified, into the sunrise. We passed some sci-fi-ers smoking a hookah. I don’t think it contained tobacco.

B dropped me and my bike off at 5:00 a.m.; I insisted he go back and sleep until 7:00 a.m. He was working on a paper for his summer law clinic and he couldn’t be in the set-up transition area anyway. I was on my own. I got my body markings (one for your swim wave on the leg, and two for your bib number on the arms). I thought they looked cool. I hope I looked confident. I was honestly fine at this point. One girl told me I was brave for being without a friend. Another lended me sunscreen. We debated the benefits of the wetsuit yet again. The sun started to heat up the parking lot, the energy level rose and I was excited.

Which brings me back to the beach. After two hours of mental preparation and meeting fellow triathletes, I was suddenly feeling very alone, wishing I hadn’t blown off my friends for ten weeks, pushing down the panic of the unknown and cursing myself for the mental drama.

And then, my internal crisis was rudely interrupted by the blaring of a horn, indicating the race had started. I was 90 minutes away from my wave start – it felt like a week – and it was a roller coaster. I was awed by the power of the elites, I was humbled by the cancer survivors, I was swept up by the spectators and fascinated by the ages of the oldest competitors. One woman walked out of the water and immediately needed her cane. But she did it. She walked up the beach with her cane.

B showed up right on time. He carried my warm-up fleece, snapped pictures and hugged me good luck wishes. But he was a spectator and so when my orange cap went on, he stood in the spectator area, cheering me on. I signed up for this by myself, and I would do this myself. I had to get in the water and get going. The waiting was killing me.

My wave got into the water at 8:20 a.m. The sun made a re-emergence and was proudly beaming down on our group as we playfully cheered ourselves on. There were 50 of us or so. I was positioned in the back, goofily grinning and looking out of place. By the time I got in, the water had warmed to 70 degrees and I instantly knew my worrying had been for naught. This was it.

The air horn sounded and we were off, a mess of flailing limbs and splashing, bobbing bodies. The swim was harder than expected. I could not swim straight. I could not get into a flow. I kept bumping up against slow breaststrokers in front of me, and getting lapped by fast swimmers behind me. I could not break free from the pack. I swallowed a lot of water. I worried the women in front of me had peed in the pool. It felt like an eternity in the water; like a floating roller derby. I was winded when I got out of the water. I had to keep going.

The next leg was the bike and that wasn’t difficult for me, but I went a lot slower than anticipated. I didn’t pass ANYBODY on the bike. (I was counting.) Lots of women passed me. Still, it was sunny and my energy was good. I caught sight of my aunt and uncle, cheering me on loudly from the sidewalk and it bolstered my spirits. I started to hear people cheering on the streets. I smiled the entire second lap of the bike. By the time my hour-long ride was over, I was having a ball. But the run was still left.

I had heard a lot of girls freaking out about the run in the same way that I freaked out about the swim. The run, however, was my best leg of the race. I ran the whole way. I passed people. I said, “Keep going!” and “Nice job!” to those near me. I ended up running my regular 5K pace, even though my legs were on fire. I couldn’t believe I had the energy. I couldn’t believe I was running. I couldn’t believe I was laughing.

As I came down the home stretch, through the trees on a beautiful summer morning, strangers along the course were reading my name on the race bib and calling out my name. “FINISH STRONG NICOLE!” and “YOU GOT THIS! GREAT JOB NICOLE.” I was soaring. I crossed the finish line and the announcer called my name. I threw my hands in the air. A woman gave me a medal and snapped my picture. I held back tears. My aunt, my uncle and B were waiting at the finish line with congratulatory hugs. I took it all in.

I suppose I realized it then. But I was too tired to think much about it. I came home and posted my race results (1:55:50), shared the news with my friends who couldn’t make it and looked through pictures. I was basking in the post-race buzz. But only today did I truly realize what the race meant to me. I didn’t do this with anybody else, for anybody else. I did it for me. I conquered my own fears, overcame my physical issues and mental anxieties and persuaded myself to accomplish a goal I never imagined I could do. Five years ago, a 5K seemed like an impossible task. Yesterday I finished a triathlon. The post-race big breakfast was nice, but the knowledge of my own strength and the depth of my determination will stay with me for life.

Ten weeks ago I made a commitment. I didn’t know what it would take, or how it would affect me or how far I’d have to reach inside myself to do it. I didn’t realize how much making a commitment to myself would teach me about the life I live, and the life I want to live. Ten weeks ago, I signed up for a triathlon. And today, one day after crossing the finish line, I won’t call myself a changed woman. Rather, today I will call myself a woman for the time in my life.

Budgeting Babe Alert: New Credit Card Rules

2009-05-21T08:40:00.003-05:00

If you've been spending all your time reading US Weekly and Perez, you may have missed that the government is enacting some new credit card rules.

Read all about it here to get educated on the subject:

NY Times Online
Consumers Dealt a New Hand in Credit Cards

There are some interesting new rules, such as:
"Card companies will have to give 45 days’ notice before raising their interest rates. There’s also a notice requirement for any significant change to a card’s terms, which may keep companies from surprising customers who have been saving their loyalty points for years with huge alterations in rewards programs."

However, some are saying the new legislation won't be that great for those of us who pay off the balance every month and use the cards to stack rewards.

What do you guys think about the new laws? They look pretty good to me.

And here is the rest of it.

Tips for Loving Your Weekend, Even Without a Road Trip

2009-05-17T14:39:00.004-05:00

Some weekends are a neverending swirl of glitzy parties, fabulous dinners and social scene meet-ups. They're incredibly fun, but inevitably exhausting.

This weekend, after several weeks of decidedly unglamorous work travel, I cancelled all my committments and chose to chill in my hometown. B and I were supposed to take a road trip to celebrate the end of finals, B's birthday and our 10-year anniversary but given the craziness of the past few week we just couldn't get it together in time. Instead, we stayed close to home and enjoyed some local treasures together. And it couldn't have been better.

Are you debating a road trip out of town? If time and money are working against you, take some notes on how to enjoy a weekend in your 'hood like an out-of-towner. Here's what we did:

Enjoy Your Local Favorites Like a Tourist
We started the weekend with dinner at our local watering hole, Poor Phil's. Instead of inviting all our neighborhood friends, we made it a date night for two. Instead of staying for too many drinks parked at the same familiar bar, we left immediately after dinner. Moving around the neighborhood, always searching for something new, keeps the vacation feel.

We landed at Hemingway's an oddball of a hotel bar filled with overpriced drinks (just like a vacation), and chatted up some visitors while enjoying fruity "Flirtini Martinis" by friendly bartender Justine. It's off our usual beaten path and the martinis, made with fruit puree, are totally fantastic (and stiff). Being there, among vacation-minded visitors, made us forget we were in our home town (the martinis didn't hurt, either).

Try Something New
On Saturday, we took our bikes to Geneva, IL, home of the Illinois Prairie Path bike trail. Though we had biked on the path before, we decided to plan an expedition to Two Brothers Brewery in Warrenville, IL, roughly 10 miles away. It was a windy, crazy ride but we made it and were rewarded with friendly service and tasty food (two YUMS up for the delicious fish tacos). Had we planned a full weekend, we likely would have overlooked it. So glad we didn't.

Slow it Down
This morning, we walked to a coffee shop we usually drive to, Nola's Cup. On the way there, we noticed two open houses. We stopped at those open houses on the way back, curious to see what today's market offers. And we learned a lot... Apparently keeping our noses buried and books and computers has prevented us from staying updated on the local housing market. In talking with realtors, we found out about new homebuyer incentives that began this week and made two great networking connections. I'm going to pay a lot more attention to our local realtor network starting today. Maybe weekend walks should become part of my usual weekend routine.

Live in the Moment
I was tempted to check my blackberry for email, twitter and facebook updates but for the most part managed to stay offline until now. This weekend, my phone stayed off - tough to do, but it forced me to stop and smell the flowers, so to speak.

* * *
So now, it's time to get offline and get back to my lovely weekend. I'm not sure what tonight holds, which makes it all the more appealing. This is the way to celebrate Spring. How was your weekend?

Net Worth Update... Good News Edition

2009-05-11T10:30:00.001-05:00

Spring is here, the market has been looking up lately and I'm in need of some good news to prevent me from starting another ridiculous project. Time for a net worth check in to help me refocus on my goals.

The first time I checked my net worth in February 2006, it was a whopping $2,600. Most recently in July 2008, the total had grown to $64,000, and I felt like a rock star. But... it's been a crazy year and July 2008 happened before I lost 40 percent of my 401K and we became a one-income household, so let's see where I stand now.

(I pause here to calculate my net worth. It takes a while. Maybe you should go get some chips or something...)

(OK, I'm back with an update...)

Holy. Crap.

I am super pleased to say that despite the sputtering economy, my net worth has grown to a very healthy and respectable... $82,000! I'm in shock!

I thought for sure my number wouldn't have grown, but I have been putting cash away in my downpayment savings fund, my student loan will be paid off within the next year and I haven't taken on any more debt.

So what am I counting? Here are my categories:

ASSETS
- Checking
- Bank Savings/Emergency Fund
- Downpayment Savings Account
- 401K
- Cash Balance Plan (Retirement)

LIABILITIES
- Student Loan

I think staying away from significant debt while I paid off my student loans really helped me to find a happy balance that allowed me to save. When I'm done paying my loan, I've been quietly thinking to myself that I might buy a car (it would be my first) since ours is paid off and more than 10 years old.

But now I'm getting ahead of myself. For now, this little piece of good news will attach itself to my heart like makeshift angel wings. I'm stable and I'm going to get through this economy. And for that, I can celebrate.

Don't Forget Your Finances, but Don't Let Them Slow You Down!

2009-05-10T21:46:00.004-05:00

When life gets busy, people can choose to cope one of two ways: they can slow down, take time to relax and get their life in order; or, like me, they can take on more. It seems totally counter intuitive, but I thrive on the chaos. On any given weekend, if I have 10 things to do, you can bet I'll add another three to the mix. It's a mindset that's worked for me, and amazingly, everything usually gets done.

Usually.

Lately, my impromptu projects seems to get bigger -- there was the $500 DIY wardrobe from IKEA that I bought on a whim, an "on the fly" trip to visit my cousin at her university and a reorganizing of my apartment that had to be done NOW. But the biggest project I've taken on recently has been training for a triathlon. I've committed to be in the gym five to six days per week for a total of 10 weeks leading up to the main event, and it's left my blog unattended to, my apartment a mess, my friends upset because I'm never out and my work schedule in shambles. It's a mess.

But truth be told, I feel amazing. I have five weeks of training left, and I'm already in better shape than I've been in for the past two years, I'm sleeping well and I'm less stressed. (Yay me!)

I do feel guilty about neglecting my life outside the gym, but not enough to apologize for prioritizing my fitness above the cleanliness of my apartment or trying to leave the office with enough time to workout. We all make choices, and sometimes the best choice for me means that some other areas of my life won't be picture perfect; I've got to be OK with that.

One area that shouldn't be neglected during busy periods is finance. It's easy to forget about when you're preoccupied... I haven't looked at my accounts in weeks. But the problem with neglecting finances is that, unlike your harmless laundry pile, neglected finances could actually hurt you. If you miss even one credit card or mortgage payment, your credit rating could drop -- leaving you with a lot more problems and less time to tackle your next big challenge.

I logged onto all my accounts today for my May check-in (which I'll share tomorrow), and was surprised to see how tight I cut my payments to due dates this month -- within days. I also forgot to make a student loan payment in April .. Yikes! (Luckily, I'm ahead of the student loan repayment schedule so I'm not in default.)

Moral of the story? Take care of yourself, but don't let your finances fall by the wayside. If you have to adjust your priorities, it's better to stop watching America's Next Top Model than stop paying your bills. Better yet, get an online service like Quicken or Mint to e-mail you (at a working e-mail address) when your bills are due, or set up all your accounts for automatic bill pay. Then, you won't have to worry about stopping to smell the flowers, er, pay your bills.

A DIY Disaster, Then Saved by my Brothers

2009-04-07T14:31:00.004-05:00

Last weekend I had the brilliant idea to swap two rooms in my apartment to try and squeeze a little more storage out of the place, rather than get a bigger apartment and pay more rent. Brilliant because while it's not a bad idea, this was the week that I started my triathlon training -- which means six out of seven days I'm in the gym -- and it's also end-of-semester law school deadlines for B, which means he's at the library studying all day. He warned me in advance that he wouldn't be able to help move stuff until after finals are over. I considered the training and the law school stuff for a good two seconds, then decided to go ahead with the room swap anyway, on my own. Bad move.

Good idea + poorly planned = really rough going, as in sitting in my apartment alone under a mountain of my belongings in total despair wishing I hadn't started this project. Nothing like taking on more than you can chew.

Luckily, with a lot of phone calls to friends for mental support, and a little carpentry wizardry from two of my brothers, everything got done. Still, lesson learned - while stubbornness and willpower can get a lot accomplished, sometimes it can really get me stuck. This weekend tested my physical and emotional limits, and I learned that I need to be more patient with myself and respectful of the people around me. I can't always expect my brothers to come bail me out at a moment's notice, and I can't always barrel through a spontaneous project on my own.

All that said, I now have a linen closet! The crux of the room swap involved the idea that a new floor to ceiling wardrobe could function like a storage closet in the bigger room if we rearranged how we used the space. I selected a PAX/KOMPLEMENT wardrobe from Ikea (or as my mother calls it "Ikea's") that ran me about $450. The wood is particle board, of course, but I liked that I could create any number of combinations using shelves, drawers, clothes racks, baskets, bins and frames. I left off doors in favor of a cotton curtain that I have yet to install. (The cheapest doors were like $300 more.) It's a great add to our place, and though the rooms aren't completely done yet (pictures left to hang, etc.), I'm feeling better and more organized already.

Speaking of the new storage space, one of the funnier moments this horrible weekend came when I told my cousin, a trendy 21-year old college student, that I bought a $450 wardrobe. "Yay!" she said, clapping.

I interrupted her, "No, it's a wardrobe, like a closet, a wooden storage space."

"Oh," she replied, with a look of disappointment on her face. "I thought you meant clothes."

I know. But at this point, I can't ever picture myself spending $450 on clothes in one shopping trip, not even in one, two or three months. So while I might have a lot to learn about my personal limits, it's good to know I'm at least in complete control over my spending limits.

29 and Holding...

2009-03-29T22:34:00.002-05:00

My 30th birthday is fast approaching, and while I haven’t been vocal about it like some of my friends (love ‘em for it!), I can’t help but notice that the something inside me is changing. It’s not that my life has evolved significantly in any way, or that I’ve become unhappy with where I am, rather, the thoughts that used to occupy my mind have been replaced with much heavier constructs.

In my early 20’s, I used to spend time fretting about living paycheck to paycheck, how my relationship might be affected by career decisions and where to invest my money. What to wear and where to go were always important decisions, as was how I spent my money in general. But as I grew and learned more about my finances and myself, I felt more and more in control of my future and more relaxed and confident about where I was headed.

Lately, though, I find my thoughts drifting off in other directions, into places where I have less control. I’m anxious about my parents’ finances during their imminent retirement and, though they are still young and relatively healthy, their health care once they retire. I’ve learned how to save my money, but I can’t figure out how to balance my needs for a stable future with the need to invest and take a risk. I worry that I’m putting my career (and B’s journey to find one) ahead of my desire to have a family. Things are going well, but now that I’ve spent so much time working to get “here,” a whole new set of worries has replaced what I thought would be the time when I enjoy the fruits of my labor.

I imagine that many of you have dealt with the same set of worries. Any advice you can share about how you deal with the nagging questions and find balance among your priorities would be much appreciated!

New Self.com Personal Finance Blog

2009-03-25T11:00:00.000-05:00

Good news. Yet another mainstream women's magazine is getting into the PF blogosphere: Self online this month introduced "Save Like Me," written by MP Dunleavy, who writes the the award-winning Women in Red series for MSN Money and the "Cost of Living" column for The New York Times. Her first book, "Money Can Buy Happiness," recently won the "2007 Books for a Better Life Award" for personal finance. Check it out - it's definitely worth a read.

(And as always on the quick hits, ignore this command) --->

Super Smart Spring Saving Strategies, Part 2

2009-03-23T11:30:00.001-05:00

Yesterday I posted the first in a series of tips on how to save smart during spring, the season that calls me to spend, spend, spend every year. Here are a few more strategies.

Tip 2. Put your friends on alert.
If you were trying to lose 10 lbs., you’d tell your girlfriends, right? You’d want them to know why you’ve suddenly gone vegan and are committed to running a 10K in two months. And you’d expect their full support.

Why shouldn’t savings goals be the same? The next time you’re out with friends, try this, “Ladies, I’m trying really hard to hit my savings goals this spring so I need to be extra budget conscious and I wanted you to know.” The point here is that you need them to stop pressuring you to go everywhere and do everything, and be supportive when you can’t. Once they know you're on a budget, you might need to suggest cheap eats or free group activities (lazy day on the beach, anyone?); true friends will glady join you.

And lest you think this tip only applies to single gals – mommies, I’ve seen the admissions fees for amusement parks and they ain’t pretty. Get creative; sometimes a hike at the local state park fuels the imagination as much as a well-engineered roller coaster.

Tip 3. Do it automatically.
If you read my blog regularly, this should be burned into your brain by now: Pay yourself first. Use direct deposit to make sure your savings account and 401k get a portion of your salary before you ever see it. Spring or winter, this is always a smart strategy.

Tip 3. Travel frugally this spring.
Flights are cheap again! Surely that’s reason to celebrate. Unfortunately, many people won’t be able to take advantage of the low fares due to the economy. But if your wanderlust calls (and trust me, mine usually does during the spring), save some extra cash by cashing on a friend’s couch. You can read about my couch-crashing experience here.

Staycations are, of course, another option. But I find those don’t quite quench the thirst to travel. The point is to experience new things in new places, which is hard to do in your own ‘hood.

Tip 4. Coupon it up.
I recently heard that couponing web sites were the #1 fastest growing on the web last quarter. Makes sense, right? But coupons are for more than just groceries. I’ve noticed major retailers like REI, J.Crew and Anne Taylor Loft offering great discounts and incentives through coupons lately. To take advantage, be sure to visit your favorite store’s web site before you shop there, and also sign up for the mailing list and twitter feed.

Tip 5. Read everyone you can.
Let’s say you wanted to start training for a race. Wouldn’t you visit some well-respected running/swimming/biking sites to find a training schedule, information on injuries, nutrition tips and motivation information? Well, think of reaching your savings goals just like you might training your body to get in shape: You need coaching, and you need a lot of it.

I won’t pretend to have all the answers, but I think you can learn a lot during the rainy days this spring by reading some well-respected PF divas and dudes like Jean Chatzky , Suze Orman and Dave Ramsey, as well as financial web sites like Kiplinger.com and Money Magazine . Finally, be sure to check out my “Best PF Bloggers” to find other PF blogs to add to your reading list. Good, sound advice is really lurking around every corner if you know where to look. You can be a savvy saver in no time this spring.

Tip 6. Use your tax refund wisely.
I’m torn here. I know it’s best for the economy if we all go out and spend our tax refunds, but I also know there are some who can afford to spend and others who cannot. So on this topic, I will say: the majority of my readers probably need to save their cash right now. If you have bad debt, don’t have a savings cushion and have an unstable job, you probably shouldn’t spend your tax refund on frivolous things. If you have a savings cushion, though, and a stable job, do the rest of us a favor and buy a refrigerator or a new computer or something. (Just remember to use coupons and get your money’s worth.)

Tip 7. Pick up a hobby.
OK, this is also recycled territory for me. But what better time to pick up a cheap, healthy outdoor hobby than spring? If you’re running every day (or walking or biking or playing volleyball or whatever), you’re not spending money. It’s that simple. Let the warm weather inspire you to a better waistline and bottom line.

Tip 8. Visit America Saves.
Here’s another great resource with zillions of things I haven’t even considered.

Tip 9. Walk everywhere.
It’s nice outside, so save money on gas by walking to pick up your groceries, library books, kids from school and anywhere else within a mile or two.

Tip 10. (For renters…) Move!
Spring is the best time for moving, with a dearth of apartments open and the weather relatively accommodating. If you can’t find wiggle room in your budget, even after making serious changes, you may need to find cheaper rent. Check your local listings to see what apartments are going for now and how much you can save. I’ve heard from a few people that it’s a good time due to so many people trying to downgrade their homes and condos (and in need of renters).

Super Smart Spring Saving Strategies, Part 1

2009-03-22T22:00:00.002-05:00

If you live in a cold weather climate like me, you know how easy it is to save money during the winter; you don’t feel like leaving the couch because the car door is frozen shut, you’re dressed in a down comforter and the ice is too treacherous for anything but Uggs. But as soon as St. Patty’s day passes, we Northerners feel the urge to spend on anything and everything, regardless of whether we want or need it.

Personally, I feel it’s my duty to take advantage of the beautiful weather … that concert I hate? Sure I’ll go! It’s too nice a day to waste in my apartment! Those ugly padded bike shorts? Throw ‘em in the cart! I’m bound to ride every other day in the lovely sun! We’re eating out again tonight? Well, if it’s al fresco, it’s a must! …The cycle enthusiastically goes on and on.

The spring spending cycle is good for business, but for those of us trying to reach our savings goals, a 70-degree day is enough to derail our monthly dining and entertainment budgets completely. So how can a fiscally responsible gal take advantage of the warmer weather without going for broke? Try a few of these smart saving strategies to start spring on the right foot.

Tip 1: Stop and think about it.
Let’s pretend it’s Saturday afternoon and you’re running to Target to pick up supplies and Rubbermaid bins for spring cleaning. While there, you spy you bff browsing cute new summer dresses. She invites you out to day drink and watch the NCAA games. You agree because, hell-o, it’s 65 out and sunny.

Two previously unnecessary dresses and $45 later, you’re off to the watering hole where you spend $50 on lunch and a few rounds of drinks. While there, you notice you’re late to meet a few friends for dinner, so you run home, change and take a $25 cab (it’s too late for a bus) to your $25 dinner, followed by another $40 on evening activities with the girls.

The next day, you know you had a great night, but your spending hangover leaves you feeling guilty and swearing off your friends for the next two weeks. When I was overspending, some variation of this scenario seemed to occur nearly every weekend in the spring and summer.

Sound familiar to you? Well, rest assured, I come bearing good news. While those of us on a budget can’t say yes to everything, it doesn’t mean we can’t have fun. In the scenario above, we could have made the following smart savings moves, had we stopped to think about them:

Stayed away from shopping Target for cleaning supplies (the clothing racks are always too tempting)

Stayed away from shopping Target for cleaning supplies (the clothing racks are always too tempting)

Told that friend at Target to watch the afternoon games at our house over home-made Margaritas

Or, met that friend at the bar after we had lunch at home

Looked at our watch often enough to know when we needed to leave in order to take the train to meet our other friends

Had a glass of water between each drink out to cut down on the total cost of the night

Done research ahead of time to find specials on dinner and drinks

At any point of the day in the scenario, we had the chance to think about the actions we were taking and make a good decision. But we were too swept up in the moment to notice it.

The next time you find yourself saying yes to unplanned activity just because it’s a nice day, stop and think for a minute. Ask yourself these questions:

How will this interfere with what I already planned to do today? Will it make me run late? Will I need to replan my travel or today’s budget?
Can I take one simple step to make today cheaper?
Do I need to drop everything and do it right now, or can I take 15 minutes to make some adjustments that will save me a few dollars?
Do I want to do this? How will I feel after I do this?

Your answer to the above questions will help you determine how quickly you can adapt to the change of plans in a budget-friendly way. Sometimes, the best way to save money is to stop and think about the choices you make to understand how they can affect your bottom line.

More coming on this topic tomorrow!

Budgeting Babe on CNN.com!

2009-03-17T08:44:00.005-05:00

CNN.com
Thrift fashions on the money during recession
By Lisa France

... Nicole Mladic is the "babe" behind the "Budgeting Babe" blog for "young, working women who want to spend like Carrie in a Jimmy Choo store but have a budget closer to Roseanne."

Mladic said she encourages her readers to not only shop thrift, but also to be generous in their giving.

"I make sure to thin out my wardrobe every so often," she said. "Any pieces that I am not wearing, I donate."

That type of generosity is much appreciated, especially in the current economy...

Budgeting Babe on Twitter (and Many Other PF Bloggers, too!)

2009-03-15T18:16:00.005-05:00

For Twitter fans: You can now follow me there (http://twitter.com/budgetingbabe). I'll try to pepper in deals, tips and links along with the more usual updates on where I am and what I'm doing. I'll also occasionally look for stories ideas and sources there.

A ton of PF bloggers are already on Twitter - Bible Money Matters is way ahead and already has compiled a list of 125 people PF junkies should follow on Twitter.

In case you have troubles with BMM's list, I'm republishing it here.
1. http://twitter.com/ptmoney
2. http://twitter.com/remodelthislife
3. http://twitter.com/glblguy
4. http://twitter.com/freefrombroke
5. http://twitter.com/christianpf
6. http://twitter.com/sensetosave
7. http://twitter.com/MoneyNing
8. http://twitter.com/MilkYourMoney
9. http://twitter.com/paidtwice
10. http://twitter.com/SmartyPig
11. http://twitter.com/TheHappyRock
12. http://twitter.com/FourPillars
13. http://twitter.com/jnickles
14. http://twitter.com/ThatOneCaveman
15. http://twitter.com/marubozo
16. http://twitter.com/ifeelgod
17. http://twitter.com/mrsmicah
18. http://twitter.com/hank_MiB
19. http://twitter.com/bripblap
20. http://twitter.com/Miss_Thrifty
21. http://twitter.com/Finc_confluence
22. http://twitter.com/ncheapskate
23. http://twitter.com/moneymender
24. http://twitter.com/RCThinkWealth
25. http://twitter.com/Green_Panda
26. http://twitter.com/nodebtplan
27. http://twitter.com/sforzley
28. http://twitter.com/ebillme
29. http://twitter.com/Shayna
30. http://twitter.com/budgetsaresexy
31. http://twitter.com/Andys2i
32. http://twitter.com/pfhacks
33. http://twitter.com/MoneyWatch
34. http://twitter.com/moneylovechangeb
35. http://twitter.com/frugalbabe
36. http://twitter.com/moneycoach
37. http://twitter.com/PenelopePince
38. http://twitter.com/squawkfox
39. http://twitter.com/nomorespending
40. http://twitter.com/MMarquit
41. http://twitter.com/mytwodollars
42. http://twitter.com/frugalinva
43. http://twitter.com/aroundthesun
44. http://twitter.com/cheapcheapcheap
45. http://twitter.com/Kidscash
46. http://twitter.com/bargainist
47. http://twitter.com/BargainBanana
48. http://twitter.com/mbhunter
49. http://twitter.com/DebtDiva
50. http://twitter.com/FredPeters
51. http://twitter.com/taxtweet
52. http://twitter.com/banker_girl
53. http://twitter.com/elym
54. http://twitter.com/L_buckets
55. http://twitter.com/moneymanagement
56. http://twitter.com/3princessesmomm
57. http://twitter.com/JennFowler
58. http://twitter.com/debtfreerev
59. http://twitter.com/simplemom
60. http://twitter.com/SunFinancial
61. http://twitter.com/moolanomy
62. http://twitter.com/MoneySmart
63. http://twitter.com/GBlogger
64. http://twitter.com/MatthewDP
65. http://twitter.com/wisdomjournal
66. http://twitter.com/moneywatch
67. http://twitter.com/FrugalTrader
68. http://twitter.com/MJTM
69. http://twitter.com/BudgetPulse
70. http://twitter.com/passiveincome
71. http://twitter.com/TheMoneyHawk
72. http://twitter.com/PennyCoach
73. http://twitter.com/MsMoneySavvy
74. http://twitter.com/prosperousfool
75. http://twitter.com/loveGodnotmoney
76. http://twitter.com/BudgetNerd
77. http://twitter.com/framblings
78. http://twitter.com/nickelsndimes
79. http://twitter.com/LazyManAndMoney
80. http://twitter.com/moneymonk
81. http://twitter.com/Frugal_Frank
82. http://twitter.com/brokegrad
83. http://twitter.com/preciouspennies
84. http://twitter.com/FinanceGirl
85. http://twitter.com/debitvscredit
86. http://twitter.com/RichChristian
87. http://twitter.com/SingleGuyMoney
88. http://twitter.com/ToughMoneyLove
89. http://twitter.com/bargainbriana
90. http://twitter.com/MoneySavingGuid
91. http://twitter.com/centsiblesaving
92. http://twitter.com/BoomerinthePew
93. http://twitter.com/MsPennyPincher
94. http://twitter.com/OneFrugalGirl
95. http://twitter.com/WideOpenWallet
96. http://twitter.com/FrugalJulie
97. http://twitter.com/AlmostFrugal
98. http://twitter.com/ChicShoppaChick
99. http://twitter.com/gearedinvestor
100. http://twitter.com/kingdomfirstmom
101. http://twitter.com/FeedTheBull
102. http://twitter.com/marty0518
103. http://twitter.com/breakingeven
104. http://twitter.com/debtrepreneur
105. http://twitter.com/moneybluebook
106. http://twitter.com/mydrblog
107. http://twitter.com/CWRandall
108. http://twitter.com/moneyconfession
109. http://twitter.com/debtkid
110. http://twitter.com/mommieswithcent
111. http://twitter.com/saverqueen
112. http://twitter.com/thewriterscoin
113. http://twitter.com/daylatebuckshrt
114. http://twitter.com/thepennymine
115. http://twitter.com/creditgeek
116. http://twitter.com/creditfreedom
117. http://twitter.com/frugalfreebies
118. http://twitter.com/ThriftyJinxy
119. http://twitter.com/MomsWhoSave
120. http://twitter.com/jasonmitchener (now a contributor to this site!)
121. http://twitter.com/pennypinchingp
122. http://twitter.com/thefrugalmomma
123. http://twitter.com/CommnSenseMoney
124. http://twitter.com/Debtwarriors
125. http://twitter.com/BSimple

As I get more familiar with Twitter, I will go through and highlight those who are good resources for guys and gals in their 20's and 30's. Now I'm off to go update my list of folks to follow... exciting!

Doing my part to stimulate the economy

2009-03-08T16:38:00.002-05:00

I haven't shared a list of recent spends in some time. It's pouring rain in Chicago today so I took to the car and ran some soggy errands. Here's the damage:

Spent $96.84 at Ann Taylor Loft on:
2 brightly colored, office appropriate cardigans
1 floral blouse
1 jersey knit shirt
1 skirt ($10!)
The total would have been $126.84 but I used a $30 gift certificate.
While in the store, I resisted the urge to buy a cute jersey dress and a fabulous but full-priced skirt. The clerk gave me a $25.00 gift certificate for my next purchase when I checked out, so maybe I'll go back when they're on sale.

Spent $136.11 on 39 items at Whole Foods. Yes, I know you hate when I shop there but they have the longest-lasting produce. My Trader Joe's produce goes bad after three days. I was also stocking up on frozen Amy's lunches for the next week to avoid spending $7-$10 per lunch in the office. TJ's doesn't have as many lunch options and all the other stores are more expensive for Amy's lunches and meatless products.

Spent $33.18 on cat food at PetCo. We have to spend a little more on special food for our meow, but it's way better than having to pay for and give her insulin shots. She's now 100 percent off insulin and we've been able to get her blood sugar back to normal through diet alone. It's crazy but true.

Spent $12.22 on a pound of coffee at Blue Max roasters. Clearly more expensive than Folgers, but it's our daily indulgence. Plus, I'm hoping to ween myself off the $2 per cup fare at Au Bon Pain. Brewed a few pots at home last week before dashing out the door and think I can maintain it.

Finally, I need to get a new backpack for work so I'm going to shop for discounts this afternoon online. I'm dreading it though -- why do backpacks have to be so fugly? (Thanks to Bobby Breidholt's Flickr stream for the pic.) Can't we transfer one or two of our best purse designers to the backpack team? Seriously. My laptop is way too heavy to carry every day in handbag that lopsides my posture.

So there you have it, my spendy day. If it sounds like I'm living a little larger than someone called "The Budgeting Babe," (lest you think I should be buying my groceries at Aldi and my clothing at thrift stores) know that it's because I budget for it! Sometimes spending a little more on groceries means spending a little less on expensive lunches, avoiding nights out at the theatre or walking around town to avoid paying for gas. No matter what you plus up or reduce from your bottom line, how you choose to spend is your perogative. Sometimes expensive cheeseballs do the trick for me.

When it comes down to your bottom line, you can live well and still live below your means. Life is all about choices and your wallet is no exception. So, dear readers, run your errands with aplomb this week. Just be sure to budget for it.

Are 30-somethings screwed?

2009-03-08T16:35:00.002-05:00

Loved this article by Boston Gal.

From the article:
I have learned that despite my overall conservative financial tendencies, I can't prevent net worth or income loss. I can't time stock, housing, or job markets. I can't assume medicaid, social security, or even corporate pension plans will be there for me in my old age.

Stop by Boston Gal's blog to see her perspective and remember to add Boston Gal to your reading list.

Good Find: Jean Chatzky's Blog

2009-03-05T22:12:00.003-06:00

I like Jean Chatzky, and not just because last year her publisher sent me a free copy of her book, Make Money, Not Excuses to review (though that was pretty sweet). I like her because she's smart and practical, and I can understand her. But I don't have time in the morning to watch her on TV (true story: I do not wake up one millisecond before I absolutely have to. Most days I hit the snooze button four to five times before getting out of bed). So I rarely get to catch her live.

But today I came across her blog and want to share it with you. Click here to read about Jean's positive outlook and soak in her advice.

The blog is good; her topics are interesting and informative and given that it's her full-time career, she obviously catches a lot of things that us part-timers miss. Plus, I found her blog to be more relevant to this Budgeting Babe than some of her books, which seemed to speak to women of a different life stage than mine.

Thanks for the good work Jean! Your perspective is refreshing for those of us in the trenches.

Ski Trip Weekend!

2009-02-26T11:36:00.003-06:00

Ski trip weekend is here! This is when my closest friends and I take our annual girls' trip. We decided two years ago that as we get older and our lives change, we needed to make a commitment to each other to renew our friendship every year. And though one of the regulars can't make it due to her impending pregnancy, a group of six is ready to hit the road in our twelve-person rental van (aka Tata-mobile) for Michigan... or Bust! (or is it Michigan and bust?)

I've been practicing my ski form in the mirror all morning while I'm packing. I can't wait to hit the treacherous slopes of Michigan for a weekend of fun and friends. (So cheesy, right? but it's true.)

If you're looking for a getaway on the cheap, check out trips that are one day's drive from your hometown. In Chicago, I have had great weekend getaways in Madison, WI; Boyne, MI; Milwaukee, WI; Lake Geneva, WI and plenty more. Going with a group typically makes the trip cheaper because you can split rooms, food, etc.

Here are some other tips for saving money on your next weekend getaway:

Eat in.
I always find that eating out in vacation towns is costly. Not only do you tend to splurge a bit on your meal, but since you're on vacation, expensive fruity drinks and citusy martinis always seem like the BEST option on the menu. Instead of eating out, we assigned meals for our trip that could be made in advance, frozen and then thawed at our lodge: Italian beef, lasagnas and casseroles. We plan to dine at the lodge for one dinner, but the rest will be spent catching up and sharing memories over home cooking over bottles of wine.

Bring your cooler.
Not everyone drinks; those who don't probably save loads of cash. But if you are a drinker, bring a cooler of alcohol and mixers with you to save on pricey lodge drinks. Common sense, I think!

Bring some activities.
Anybody who grew up in a big family knows that cards and board games can make the difference between a great trip and complete boredom when you're traveling with family. Why should traveling with friends be any different? We're bringing Taboo, Cranium, LCR and cards just in case it rains. Besides, Board games make great drinking games... I just watched an old episode of How I Met your Mother and got some inspiration for making my own game night rules.

Cut off the workaholics.
Ahem. My name is Nicole and I am a workaholic. I pledge not to obsessively check my work e-mail every 10 minutes throughout the trip. I may need help with this.

Split costs on everything.
We're splitting the cost of a private ski lesson Friday morning, and we split the cost of gas, groceries, alcohol and any other expenses that come up on the trip.

Look for deals.
Brunch and lift tickets are included with our lodging. Before I found Boyne last year, I looked at three or four other places, and factored in gas, mileage, food and equipment rentals into a handy-dandy comparison spreadsheet. Boyne was the best deal. If you're scouting weekend getaways, don't book the first thing you see. Wait for a good deal, shop around and use travel web sites like Kayak.com and Hotels.com to find discounts and great deals. Your friends will thank you.

OK friends, I'm off! I hope you have a fabulous weekend and I'll see you when I'm back in the city.

Is Staying In the New Going Out?

2009-02-21T19:26:00.002-06:00

Pack away the fancy heels and close up the closet. I'm saving cash for next week's big annual ski trip with the girls, which means I'm staying in this weekend to save some dinero. On the agenda for tonight:

Recipe for home-cooked dinner.
Bottle of wine.
SNL.
$3.50 1000-piece puzzle I bought at Target.
Plenty of texting and Facebooking with my best gals, who are also at home saving cash tonight.

Last night, B and I made pasta and rented Changeling, which wasn't bad. After all, I haven't seen movies in ages. Now's as good a time as any to catch up. And apparently I'm not the only one.

According to ABC News, more of us are staying home on the weekends to save our dough.

I think that's true; I'm spending less time on the social scene lately and more time visiting friends homes. Then again, that may just be winter in Chicago. We'll see what happens come spring.

UPDATED: Be Aware Of Montly Expense Changes (or Ramen Noodles Forever)

2009-02-20T13:09:00.000-06:00

Our electricity bill in December and January doubled this year vs. last year; up from the $150 range to $300 per month. We're not using more electricity; the cost of it must have gone up. But it begs the question: when a monthly expense suddenly becomes more expensive, how do you cope?

Eating nothing but peanut butter sammies, ramen noodles and soup is the old college way. But my own non-scientific research indicates that earning a salary directly negatively impacts one's taste for ramen noodles.

Beyond returning to a college lifestyle, I see two short-term techniques for coping with an increased expense when reducing the expense itself is not an option.

1) Reduce expenses elsewhere.
2) Take it from what you were putting into your monthly savings.

Reducing expenses is obviously the better option. Figure out how much the increase is (in our case, about $75/per person, per month during cold months) and see what line items you can afford to cut... Maybe it's having one less vacation for the year; maybe it's one less night out per month; maybe it's two dinner-date nights less in favor of home-cooked meals (Ramen, anyone?). Or maybe you delay the purchase of something you were saving for.

As is the case in the second option, you can also increase your monthly operating budget. Basically, if you were living off of $1,000/month (just an example for easy computing) and saving the rest, you now need $1,075/month to live, and you'll save a little less every month.

Neither is a very good option, which is why they're short-term solutions. The long-term solution is that you'll need to make more this year to cover your new expenses. So ultimately, if you're saving a little less this month, the idea is that your pay raise should cover the increase in expenses and you'll ultimately even out. Taking on a second job or getting a new, better-paying job are options, too.

This year, however, I'd be willing to bet that few of us see pay increases. After all, if the work force continues shedding jobs at this rate, some of us will be lucky to actually have jobs (let alone extra jobs). So then we go back to tightening the purse strings and cutting expenses.

There's a third option on the table, which could work for some short-term gains if you're desperate (living VERY tightly month-to-month), and that is selling stuff. If I was really in a tight fix and needed money, I could always sell my Wii or my camera on e-bay. Some can sell designer clothes or shoes, or perhaps art, jewelry or furnishings. It's the modern day equivalent of a garage sale. But clearly it's short-term and the downside - loosing your stuff - negates the short-term fix in most cases.

A final option, which is not really an option, but people do it regardless, is to not change your spending patterns. How's that possible? Credit. Once the bills are paid, some people put groceries, gas and non-essentials on credit. But again, what you'll pay in the future for these items, considering interest, makes the long-term cost greatly outweigh the short-term relief benefits. I'd stay away from this one.

I think most people would do a combination of the first two options, reducing costs and saving less, if a significant expense suddenly came up. But in the case of my electricity bill, I don't think people pay enough attention to notice the changes. In Chicago, our electricity bills swing wildly depending on the season. In Spring and Fall, they're super cheap, while Summer and Winter are crazy expensive. So if you're not paying attention, you might just think the price increase is part of the normal trend.

The point here is that even with small monthly budget changes, it's important to review the costs, explore options and pick the best one. If your expenses are increasing each month and you're blind to it, you could be unconsciously heading to the land of bad decisions, and ultimately costing yourself a whole lot more.

UPDATE: Two additional suggestions just came in from my super-awesome readers.

MOXIE says:
1) Double check that you don't have a leaky window or something for the heating increase. That happened one month in our first apartment & we got a ridiculous heating bill.
2) You probably could use less of either utility, too, if you're like most people. Look into energy vampires like always on appliances.

STEFANIE says:
If you plan ahead, you can put some extra money away during the cheaper electricity months to use for the more expensive ones. You can also reduce your energy use as much as possible (turn down heat and hot water temps, use power strips for multiple plugs and when you're not using them, turn the whole plug off, take shorter showers, don't use hot water in a washing machine, don't use dishwasher, etc.)

--- Stef: Great suggestions! We're already in layers and wearing blankets, so I don't think we can get any colder around here, which is probably why I forgot this one. Also, our washer/dryers are communal in my apartment, but good suggestions for those whose are not.

Random Thoughts: We're Writing Off 2009 Edition...

2009-02-18T22:24:00.004-06:00

In the last two weeks, I've noticed that people have already written off 2009. Congressmen, spokespersons, business leaders and tv personalities are all saying things won't get better until 2010 (if that). If our government and business leaders have already written off an entire year as early as February, how are the rest of us to remain positive? Are we also supposed to write off 2009? What does that even mean? Am I just supposed to sit around waiting for some mysterious signal that things are officially on the up-and-up? No gatherings, no going out, no vacations, no celebrations... just hunker down and hope for winter to end?

While a company can write off 2009 as a down year, it's infinitely harder to write off a year of your life. In 2009, for instance, I'm celebrating my 30th birthday, one of my best friends is getting married, my youngest brother is graduating from college and I've got two mini-vacations planned with friends and family. We may all face the possibility of financial setbacks this year, but that doesn't mean life stops. Enjoy what you can, and celebrate what you have - don't lament what you're missing.

***

My sign of the times: I found out yesterday that my cash balance plan (kind of like a pension) is being frozen for good. I didn't quite understand the mailing I received in the mail that shared the news, so I made B read it for me (being a law student with a background in finance FINALLY came in handy!). He confirmed what I thought I read... I can keep what I have, and it will earn interest moving forward, but no more will be put in. Another casualty of the recession.

***

I'm seeing lots of articles on how to have a fun, money-savings games night in your home. The formula goes like this: make some dip, pull out Scrabble and Taboo, grab some wine and yuk it up! (Really.) But lately, even those money-saving get togethers result in exasperated, anxious conversations about the economy, savings accounts and 401ks. Until a recent party I went to that featured a tournament-style couples night; eight couples competing in trivia, bags (or cornhole), beer pong and ping pong. There were point systems, losers' brackets and payouts, but not a lot of time for our between-jobs friends to discuss their employment status. The lesson? Keep it competitive, casual and complicated to get your mind off work!

***

I've decided I hate the word stimulus. It's creepy and I don't want to see it any more. Thank you.

Response about my W-2, and a note for Mely5862...

2009-02-16T08:30:00.002-06:00

I just wanted to take a minute and say thanks to everyone for participating in such a great discussion in reaction to Why My W-2 Makes Me Cry. Despite how often I think, read and talk about finance with friends, family and readers, I was definitely hurting as I considered my 38.8 percent drop in my retirement fund. But I'm thinking more positively now thanks to your comments and have a more rational (or optimistic) point of view that during the next 30 years its value will recover. I'm also thankful that this is happening now as opposed to when I'm close to retirement. The experience and knowledge will make me a smarter investor in the future.

That said, I wanted to take a second to respond to a comment from a reader that I think is worthwhile to share because it can help you all to learn a little more about me, my level of financial knowledge and my approach to writing the blog. Mely5862 said:

After thinking about your post, I became mildly irritated. You have a blog read by tons of people and that has, I believe, been featured in articles and magazines. A finanical babe right?

Yet, computer savy as you are, you have not been following your 401K declines on the that company's website? I check mine at least weekly and once it began to drop I decreased my contribution. Sure I lost alot and you may end up ahead of me when the market recovers but I knew what to expect on my W-2.

The first point she makes is about my level of financial knowledge. I hope everyone reading The Budgeting Babe does understand that I am a public relations professional with a degree in communications and fine arts (and minors in marketing and Spanish). I slept through Econ 101 in college and never took a finance class. I'm not sure I ever took any math classes beyond "math for the communications major." So, I'm actually not a financial babe in that I work with the industry, nor am I someone with any sort of financial aptitude. I'm a finance newbie fumbling my way through the ups and downs of balancing a checkbook like a lot of other folks. I have a hard time not paying bills late and until recently kept track of my accounts in a homemade excel spreadsheet (just started using Mint.com but I'm still scared of it). I don't own real estate, and I'm still paying off my student loans. Most days I'm still proud of myself that I have a growing savings account. I still use Google to look up finance definitions when I read the NY Times. But I'm well on my way to being in a good financial place as I continue my journey to learn about finance here.

With regards to my knowledge of my own 401K, did I know the value was declining? Yes. I used to check my 401k once per month, but given that the market was declining rapidly I stopped on the advice of some folks who know finance better than me. They were right. I typically freak out when I see the ups and downs. Had I been checking, I would have had a greater desire to reduce the contribution. Which runs counter to the goals I set for myself. And despite being very upset about the negative change, I'm glad I kept my contributions in. It's better for the long run.

That said, I know a lot of people who have contemplated decreasing their 401K contributions - like I have (I even posted about it last year) - during this time despite their better judgment. In creating the post, part of the writing was just a reaction to seeing a number on paper. But I wanted to share that frustration with other financial newbies and offer a place to dialogue about it. I want people to know that it's OK to be frustrated and scared right now. There's an emotional reaction that I don't always feel is addressed when financial gurus say "just don't look at it," and I believe there's some release in talking about those emotions. I'm not the only one feeling it, nor is the girl in the cube next to me or the 30-year veteran who's losing her retirement. It's important to talk about it. Or cry about it. Or freak out about it... whether you're paying attention to your monthly statements or not.

But despite all the emotions, my actions are in the past and I have faith that the market will come back and pay off my patience sometime in the next 30 years. It's a risk I'm willing to take.

Spending Winter Frugally: While Decluttering is Good For Your Wallet

2009-02-16T00:03:00.002-06:00

Several pounds of various fruity smelling lotions that I got for Christmas five years ago... gone.

Bags of "gently used" and slightly frumpy work shirts that I wouldn't dare wear anymore even if I had no clean laundry... gone.

The black soap dish and toothbrush holder from when I thought it would be cool to have black accents in my Pepto-pink tiled apartment bathroom... gone.

Winter 08-09: Remove, recycle and move on.
* * *
Can you think of a better time than this winter's deep freeze to spend hours decluttering your home? Really, when it's zero outside (or BELOW zero), and you're going stir crazy at home, is there anything better than throwing some old s**t out to feel like you've accomplished something? I think not. Spring cleaning may be a time for renewal, but winter clean-out is time to deal with your demons.

As you may have gathered, I've spent some down time during the last seven weeks decluttering and organizing my stuff. When I started, I was unhappy with the clutter in my apartment and the fact that I seemed to have no space, especially in my closet-sized bathroom. On a frustrated whim, I started cleaning Oprah-style in that tiny room... I pulled everything out of it - which took up an entire hallway AND the dining room of my place. I was shocked by the excess. I threw out garbage, set aside a pile for the Salvation Army and kept only the supplies I need right now. Did I really need ten bottles of hair product? Three kinds of hot rollers? An entire drawer of travel-sized moisturizers? Absolutely not.

I've never consciously decluttered anything other than my closet because it always happened naturally for me. From the time I was 18 until I was 25, I moved about once per year. Moving is a natural declutter - boxes are heavy so whatever you take better be worth it. But now that I've lived in my apartment for five years, I've accumulated some stuff. Too much.

So I took advantage of this winter's harsh weather to take action. After I finished the bathroom, I went room to room to see what I could trash, recycle or donate, and what I could move to my parents' garage (seasonal stuff). The end result? I'm happy again with my apartment and I have a better idea of my unnecessary spending/shopping/storing patterns.

How does decluttering relate to your finances and the economy? Good question! Here are several reasons why you might want to consider cleaning out, uncluttering and reorganizing your place that have everything to do with finance:

1) You hate your place, but you're stuck there. I thought I'd be out of my cramped apartment in April 2009 and moving into my first condo. That's no longer happening due to the crazy financial crisis. I need to stay put. Getting rid of some stuff opened up new space in my apartment and enabled me to see the space in a way that had been blocked for a while.

2) You're trying to curb spending. Two factors help out here. First, decluttering takes hours and hours, and doesn't cost a thing. Second, once you see how much stuff you already have, you might realize you no longer need to go to the store.

3) It's below zero outside, and there's no good TV on. What are you waiting for? That point sells itself. See above points for good-for-your-wallet benefits.

4) Lots of people need your old stuff right now. If you've got a blender taking up cabinet space because you received a new one for X-mas, I bet there's an out-of-work family that could really use a blender. Same goes for your old coats, blankets and work clothes. Some charities will even pick it up for you on your doorstep.

How do you do it? I'll leave the DIY tips to the experts. Here are a few to check out:

O Magazine/Oprah's Web site: Learn to conquer clutter

Real Simple Magazine: Lots of good clutter-ridding tips

The Nest: Get Rid of Clutter!

It's not an easy process, but I can report that having done it, I'm happier with my apartment and feel I can breathe again now that I've cleaned out my mess. Everything has a home, from random Halloween costumes to travel kits to scarves to my tax paperwork.

Let me know if you guys have any good tips on how you're spending the winter frugally.

Why my W-2 Makes me Cry

2009-02-05T18:30:00.002-06:00

It's tax time, and those pesky W-2 and 1090 (or is it 1099?) forms are slowly finding their way into my mailbox. Yesterday, frustration and anger set in immediately after opening my W-2. I'm not being overly dramatic; I wanted to throw something. Hard. And scream. And cry.

I have been doing my best to keep contributing to my 401k while avoiding looking at it, as is the advice most personal finance gurus share. But when my W-2 informed me, like a gossipy schoolgirl, that I had plunked $7,500 of my salary into my retirement fund last year, my stomach dropped. I knew that my fund had not grown much in the past year. And so, I went online to check out what happened to my $7,500 in savings from the year.

And here's the answer: it's gone. For now.

On January 1, 2008, my 401k was $19,101.60. During the following 12 months, I contributed $7,359.99. My employer contributed $3,359.99. Yet on December 31, 2008, my 401K's official balance was $19,978.78. My personal rate of return on the account was -38.8 percent for the year.

I felt like someone punched me in the gut.

Do you know what else I could have done with $7,359.99? I do. In fact, it makes my heart ache to think about all the things I could have done with that money -- hard-earned compensation that caused me to work late nights and weekends and sacrafice personal relationships. Here are a few ways I could have spent the money:

- Put it into my downpayment fund and been that much closer to buying a home
- Taken a month-long vacation to several foreign countries
- Upgraded my apartment
- Given my mom and dad their long-awaited vacation to Italy or Alaska
- Gone back to school
- Sent my younger brothers to study abroad
- Used it to buy a car
- Created a scholarship fund
- Held a wedding for me and Brian (or at least half of one)

The list goes on, and on, and on. While I know it's important to stay positive, is it OK if I tear up for a while at how right now it feels like I threw $7,000 out the window, and how far away I feel from my financial goals?

Dating a Banker Anon: Elaborate Hoax?

2009-02-03T09:00:00.000-06:00

A couple people sent me this article, "It's the economy, girlfriend," with the headline "hilarious" or "OMG." I couldn't decide what to do with it. I don't know anybody like these women. They seemed kind of cartoonish to me. But just because I don't know people like this doesn't mean they don't exist. So, I was going to post it with some snarky comment, until I saw this article on NPR.org: "Did the New York Times get Punk'd?"

What do you guys think?

And if it were real, what do you think about the girls? I took a look at their blog, got one paragraph in and promptly tuned out the nonsense. It's not worth my time to read. I'm more of an "invest in your smarts and savvy" kind of girl, than an "invest time into finding a rich boyfriend" kind of girl. To each their own, I suppose. Good luck with your book, girls.

Feb: Starting Again.

2009-02-02T20:08:00.004-06:00

I was on a weird sort of self-imposed hiatus during the month of January, as you may have noticed. A sprinkling of writer’s block, a dash of winter blues and some good ol’ (long) recession-style office hours have conspired to stop my usually creative and energetic self from doing much of anything lately. But I haven't stopped thinking about this blog or my finances. And I'm not alone (about my finances, I mean).

Now that we're officially in a recession, as companies cut thousands of jobs every month and Americans reduce spending, everyone from Vogue to MTV seems to be writing, talking or offering advice about personal finances. It’s a scary, unsecure world out there and nobody seems to know when it’s getting better. My challenge is to figure out where The Budgeting Babe fits into the new dichotomy. Neither an expert nor someone who’s struggling to start out anymore, what can this site offer to girls and guys who are trying to find a place in the world?

Well, I’m someone who has been affected by the recession – my 401k is tanking, I’ve decided not to buy a place this year due to all the economic uncertainty and now that B’s laid off, we’re soon to become a one-income household – but I’m not overwhelmed and living month-to-month, either. I’m navigating the waters just like you, and hoping that we all come out OK in the end.

That said, I think a lot of smart, talented, young men and women are just now learning that in order to survive on their own in this new economy, they must live on a tight budget. Many of my friends who were living the good life a few years ago – partying every weekend, eating expensive dinners out, buying trendy clothes – are now being forced to develop a budget and (gasp!) stick with it.

Thankfully, that’s one area where I can help. So I plan to go back to basics and write more about what it takes to create a budget, how to stay to true to your plan, how to occupy your time when you have no cash and, of course, how to find a great deal (and look good doing it). Things will still be scary out there and we’ll continue to talk about what’s going on since so many of us are affected by it. It’s a new world, but I’m still the same girl.

Mint.com Review: A Convenient Timesaver

2009-01-14T22:41:00.003-06:00

Given that I run a site called The Budgeting Babe, people are always asking me to review one financial product or another. And I usually decline. Why? Some valid reasons, some not... For one, I have never considered myself a financial expert that should be judging someone else's work. But also most requests are poorly written and the sites look bad (are difficult to understand, boring or sketchy). So rather than hurt someone's feelings and waste my readers' time, I typically stay away from these kind of requests.

The sites and products I do write about are those that I actually use myself. They add value to my daily routine - which is quite rushed anyway - and serve as a time saver, rather than just one more thing to do. They have to capture my fancy and be relevant to me, whether or not they work for the rest of the population.

In the curious case of Mint.com, however, I've simply been hit over the head with so many ringing endorsements from friends (via facebook and in person) that I succumbed to the pressure. Tonight, I signed up for a Mint.com account. And two hours later, I was still on the site, modifying entries, searching trends and making looking for mobile capabilities so I can access my accounts anytime, anywhere. So there you have it, peeps, I did it.

Is this Budgeting Babe in love? Not yet. I see some pluses and some minuses to the site. My initial security concerns still exist (especially after visiting their forums), I don't like the offers portion of the site and I would like to see some improvements to the mobile site. But my overall impression is that Mint.com is a convenient timesaver with a lot of potential that will ultimately enable me to free up more time for work, the gym and my friends. It's a good place to start your financial journey if you're currently using the Web to manage your finances (but not actively interacting with them), and it seems easier to use than MS Money. And best of all, it's free.

A deeper dive into my experience follows.

POSITIVES

As I mentioned, the site is easy to use. Setting up an account is a snap and not much of your personal data is needed to sign up - just a password and your zip code.

Once you set up your accounts, your "home" screen (that displays your activity overview) is well-designed to show helpful information upfront, like account alerts, simple pie charts of spending activity, current account totals and a quick net worth display.

This was eye-opening for a few of my friends - one mentioned that she noticed Starbucks was her most frequent retailer visited last month (she was surprised and said she'd kick the daily habit). For me, a lot of the information displayed was already on file on my computer (in spreadsheet form). But the nice thing about Mint.com is that the site does everything for you; I don't have to calculate my net work every month, it's already done. That's a timesaver. Likewise with seeing my spending categories - they all were what I expected month-to-month, but I didn't have to calculate them manually... nice.

There are a couple other good features I noticed - for instance, my rent check wasn't easily recognized as rent, so I recategorized one entry as "rent" and all the other checks written for the same amount automatically updated (with the ability to change them again if needed).

THINGS I'M NOT SURE ABOUT
Rather than asking you for account information (SSN, account numbers), the site asks you to sign in to your accounts on other financial sites you're already using. There is still personal information being exchanged. On one hand it still seems risky, but on the other hand, if you're already using the web to manage accounts, you're probably at risk anyway. Bad rationale on my part, but I've received notice of so many "secure" account breaches that I'm giving up on it in favor of being more vigilant and using trustworthy companies.

AREAS FOR IMPROVEMENT
Two things that bugged me about the site:
1) There was some ad-supported content. This is to be expected since the site is free, and it's late so I'm going to have a hard time articulating this, but here goes... it feels weird to have offers coming through onto a screen where my financial data is housed. The site claims to be secure, and yet, they have to be sharing some information to allow Discover to show a credit card rate offer that's comparable to what I'm currently paying, or E-Trade to show ads that tout the return on their investment vs. my trusty savings account. I feel like I should get to opt-in to offers. As much as I like the site, I'd be willing to pay a small fee to have a site free of offers for peace of mind that my data is mine alone.

2) There's an iPhone app, but no mobile-ready site. I'm starting to live off my mobile phone, which is a BlackBerry. I would love to open a BB app and have all my data in front of me ("Can I really afford that? Let me check my phone!"), but it doesn't look like that's possible yet.

So there you have it. I'm tired and need to go to bed.
What do you guys think about Mint.com? Are you using it?

Ringing in the New Year, Miami Style

2009-01-03T22:28:00.000-06:00

I’ve chosen to start 2009 in sunny Miami, where the weather is as perfect as the golden tans sported by lean bodies on the beach, where the mojitos are sweet and sunsets form peach, magenta and purple streaks over sparkling waters. It’s a far cry from my usual frozen hungover and sleepy start to the New Year. Just last week I was iced like a popsicle in sub-zero snowbanks, battling grey skies and a greyer mood, bundled in a down coat, scarf, hat, gloves, boots, two pair of socks, wool under layers, fleece mid-layers and more. Today I was lying on the warm beach in a swimsuit, soaking up rays and lazily watching primary-colored kites fly overhead amidst billowy clouds as manatees lolled by the shore.

For a $275 plane ticket and a free stay in my cousin’s condo, Miami and the Keys are the perfect winter getaway for this Budgeting Babe. The salty sea breeze is just what my body needed to ward off the colds I’ve been fighting for what seems like an eternity. And the pace of life…well, it may sound weird, but sometimes I actually forget that I’m still in my 20’s (though not for long)… the daily grind and a bevy of personal, financial and family obligations can get me a little stuck focusing on the future, rather than on the present. But here, it’s hard to get too far ahead of yourself as picture-perfect palm trees sway to the tune of ocean waves and care-free locals toss frisbees in the park. It’s a nice reminder to stop and focus on the present, to enjoy myself and to just live a little.

So how did I get here? Well, very serendipitously, actually. I was dropping off some gifts for my godson and his sister (who live in Texas) at their grandmother’s house in Illinois, and she mentioned that her son – my cousin – who lives in Miami was headed to Brazil for a month. She casually mentioned that he offered his condo to her as a winter getaway but she couldn’t take advantage of his generosity. My ears perked. At the time, B and I had just about given up hope on taking a trip to the Florida Keys during his winter break from law school… we had been trip-planning for several weeks, but hotel rates were too expensive for our taste. We immediately called my cousin (less than 24 hours before his departure) and arranged to stay here for a week. It was super spontaneous but we did it. And I must say, now that we’ve gotten over the weirdness of staying in someone else’s house while they’re away, it’s perfect.

In our first few days, we’ve managed to spend time exploring Coconut Grove (where we’re staying), South Beach and Key Biscayne. We’ve blown through cash pretty fast since our first day of meals and drinks was fairly expensive, and we also didn’t pack the right kind of clothing (note: 75 in Miami is MUCH warmer than 75 in Chicago!), but from now on we’ll be hitting the grocery store before heading out to the beach for supplies and groceries and avoiding the pricey dinners (the sushi on 5th Street was kind of calling my name last night…yum).

I’ll post some pics when I get back home, but now I’m off to go do some reflecting on my goals for the upcoming year and grab another mojito. Happy New Year to everybody reading my posts; I can’t wait to hear your goals and resolutions for 2009.

12/28 News Roundup

2008-12-28T11:35:00.004-06:00

I've spent time contemplating the highs and lows of my 2008, and so have the professionals. Here are a few highlights from the big guys (and my fellow bloggers)while I'm out cashing in my gift cards and workin' on my fitness. Happy reading!

Kiplinger: 12 things to look forward to in 2009

US News and World Report: Eight ways to cut back without sacrificing

Wall Street Journal: Say good riddance to 2008

Bible Money Matters: 10 people all personal finance junkies must follow on Twitter

WiseBread: Plan for your wants

OK, I was planning to list a bunch more articles, but my computer is crapping out and my internet connection is slow. I've been writing for more than an hour and have had to restart my browser at least five times. So read those for now, I'll do some AdWare stuff and hopefully we'll be back up and running shortly. Arg.

A Fond Farewell to A Crazy Year... 2008 in Review

2008-12-19T21:41:00.005-06:00

Brilliant or flat broke, I think most people will be happy to say au revoir to 2008. Like a Peter Jackson movie, it feels like it’s taken for-eva to end, and I get the general sense that most people in my community are terribly worried about their own future and that of their loved ones. From high gas prices this summer to foreclosures, the credit crisis, mass layoffs and the stock market roller coaster this fall and winter, it’s been difficult to focus on anything but the negative.

However, at the beginning of this year, I pledged to focus on the positive, saying, “Tears do not become me.” So to round out 2008, it’s time to take a look at the good things that happened to me this year. And I think you should, too. It may have been a better year than you noticed.

Vacations galore. This year, to recharge my batteries, I went on my first ski trip, traveled to Houston with my mom, visited Elko, Nevada and camped in the Ruby Mountains, hiked and kayaked on the sparkling Puget Sound in Washington State in the San Juan Islands, checked out Park City and Salt Lake City, Utah, and took a fishing trip with my dad, brothers and uncles in UP Michigan. (Not to mention a staycation in November!) Amazing. And none were taken on credit -- they were all carefully planned for and budgeted far in advance. You don't need to stay at fancy resorts and high-priced hotels to experience the world. You just need a willingness to explore and step out of your comfort zone every once in a while. Cabins, tents and spare couches can take you just as far as any AmEx card.

A HUGE promotion. After more than seven years with my company, I earned a ginormous promotion to vice president this year. This was an important step for me in the industry and though it hasn't been an easy transition, I'm excited about my prospects for the future. Since I'm talking about my career, I'll also note that I attended a very cool women's leadership program at the Kellogg School of Management that was incredibly enriching and valuable. Even with promotions, it's important for me to continue learning at every step of my career.

The opportunity to give back. Soul nourishment isn't just about getting away from it all, giving back to the community helps a gal feel special, too. This year, I raised funds for the Chicago Police Department Memorial Foundation by participating in a run, where I raised $325 (my first fundraising run ever). I also donated ~~$110~~ $210 to Chicago Children's Memorial Hospital, gave lots of gifts to family members I love, sponsored a free book giveaway on my blog and donated blood to LifeSource.

A first for me. I got a frickin' drivers' license this year! This was an even bigger deal for me than the promotion. Both me and my dad cried at the DMV (yep, we really did). I wish I had the picture he took with his cell phone to post here. It's hilarious.

Great publicity.. I had some truly wonderful exposure this year for the blog - including the CBS Evening News with Katie Couric and US News and World Report. If I were my client right now, I'd be so jazzed.

Marvelous money. I managed to make all my finance goals this year, those being:
- Got my down payment account to $30,000
- Got my student loans down to $2,500
- Increased my 401k contribution to 10% (and kept it there)
- Did not take on any additional debt

Healthy, happy... My parents, though both had recent surgeries, and my brothers are healthy. B's family is healthy. B made it through his surgery and is getting healthy. And that equals one happy me.

Wow, I've had so many bright spots this year that I can't believe how much I've focused on the negative and neurotic. True, it wasn't all highs - the PR industry's instability affected my job and my career mindset, B was laid off, my 401k tanked, I was sick often and couldn't do much to keep myself in shape and there were most definitely some relationship issues early in the year... but ultimately, I think I've really let the headlines get to me. In fact, before I started writing this, I was sitting around my apartment feeling stuck in slow motion about my life and my future. Hard to believe when I see how far I've come in 12 months.

When I look back on 2008, I hope I'll remember the positive and not the negative, be thankful for the amazing people who touched my life and forever remember the experiences I afforded myself (how's that for a high-school yearbook signature?).

How 'bout you? What positive things happened this year that you may have missed in looking back on 2008?

What Makes a Budgeting Babe?

2008-12-10T22:39:00.003-06:00

As I've been thinking more about the mission of my site, and about my readers and my friends, I though I'd take a moment to define what a Budgeting Babe is and what we stand for. Sure, the name might seem kinda fluffy and the site is pretty in pink, but there's definitely a deeper mission underneath: to help women better understand their own finances and spending patterns, and learn how to increase their net worth.

So let's talk for a minute about what it means to be a Budgeting Babe. I asked this question in September during my first-ever giveaway and got some amazing responses. But until now, I've never really spent the time to come up with a list of characteristics (other than those that described myself in 2006 -- one of my favorite posts). So tonight, as winter snow blankets the Chicago area and I have a few seconds for some quiet introspection while curled up on my couch, it's the perfect time to contemplate some of the attitudes and attributes that may describe parts of Team Budgeting Babe. Here's my attempt. Not all of these will apply to you, but some of them may be universal...

-- Until recently for some of us, a few years ago for others, spending money was far more important than saving it. If you asked us what our 401k looked like, we'd probably laugh and say something like, "I don't even know what that is!" Then we'd secretly fret that we were falling seriously behind, but rationalize it by saying we don't make enough to save anything. (Insert pouty face here.)

-- Now, contrary to our initial spendy ways, we're focused on making our savings goals.

-- We're career women (or trying to be); our jobs are part of what defines us, and we're OK with that. Nope, more than OK... we really like it. (But sometimes we wish we worked a few less hours.)

-- But we also like to have fun, live in the moment and enjoy life to its fullest. That doesn't mean going out like Lindsey Lohan every night, but it does mean a full social calendar - from nights out with the girls to family gatherings to volunteer work to just plain ol' galavanting around.

-- We're travelers, because nothing makes you really appreciate what you have until you see how everyone else lives. And because after all that work and serious social activity, a girl's gotta unwind sometimes.

-- Having nice things is far less important than living each day for the experience.

-- We don't spend more than we make (anymore) and don't use credit for frivolous purchases (anymore).

-- We read, we watch movies, we see shows, we love music and we totally get the online world.

-- US Weekly may not be required reading, but gosh is it fun after browsing depressing financial news on NYTimes.com or WallStreetJournalOnline.com.

-- We're workin' on our fitness... Health and well-being are top priorities for us. (And yet, why is there never enough time to make it to the gym during the week?)

-- Though we really want to learn about our finances, sometimes financial books can be pretty intimidating and frankly kind of boring. Still we try to slog through PF literature.

-- We're OK talking openly about our finances, and we wish our best ladyfriends were, too.

-- We're total suckers for sales.

-- We're still (groan) paying off student loans.

-- But we avoid going into major debt.

-- We may not have the best apartment/home/condo on the block, but we don't spend much time in it anyway.

-- Buyers remorse? Not quite sure if that describes the feeling of running back to the store to return what was destined to be your "new favorite thing" less than 24 hours after you bought it.

-- We're learning to speak our minds and share our knowledge.

Did you read this? "Tightwad Ethics"

2008-12-10T15:00:00.000-06:00

Did you guys see this article last week in BusinessWeek?

The Ethics of Being a Tightwad
Amid the economic slump, don't feel bad about putting saving ahead of spending. In fact, it's unethical to squander money you can't afford to spend

I'm thankful for the post. Although I'd love to allow myself to spend more under the guise of "doing it for my country," I know it's not the best for my wallet, which is ultimately what's best for the people I love and potentially will want to take care of in the future.

I never thought "ethical dilemma" would apply to anything I write about on the site, but interestingly, this article takes a scholarly look at an issue a lot of you may be thinking about. Take a read and let me know what you think.

Tips for Caring for Your Pet when Your Wallet's Skinnier than your Skinny Jeans

2008-12-09T21:35:00.003-06:00

Those of you who read The Budgeting Babe regularly know I have a particularly soft spot for los animales. I have a fabulouso turtle named Betsey and a saucy diabetic cat named Nala, both who are total handfuls yet completely worth it. (OK, it helps that B is a superhero when it comes to pet care.)

So I was saddened, but not entirely surprised, to receive an e-mail with this lead:

"With economic pressures on the rise, consumers are looking for ways to tighten their belts while maintaining the best level of care they can for their pets. In the midst of the downturn, veterinarians around the country have observed a decline in visits and spending for recommended procedures."

Luckily, the team at Merck/Merial have come up with a few tips to help pet owners get through tough times:

1. Be a Grooming DIYer: You might think clipping Miss Fancy's toenails is as fun as a bad hair day, but grooming is really important in maintaining your pet's health and condition. And, according to our friends at Merck/Merial, it's a skill anyone can perform with practice.

An added bonus for taking an active role in your pet's grooming is that you can identify problems early (e.g., bumps, lumps, changes in coat quality, etc.) that a groomer may not think to tell you about. Doing the grooming yourself can save as much as $400 to $1,000 per year, but to avoid a costly mistake be sure to use products, such as shampoos, that are designed for pets and not people. (Me: cleaning, clipping and combing are easy to do. Why not?)

2. Bulk Up: Resist the urge to buy pet food, heartworm and other preventatives in smaller quantities to cut immediate costs at the cash register. The reality is, as long as you're mindful of expiration dates, buying in bulk is generally cheaper. (I need to check this one out. Wellness brand cat food is not cheap.)

3. Don't Wait to Vaccinate or Medicate: Making sure your pet is current on recommended vaccinations will save you a bundle in the long run because you'll help ward off preventable diseases. Vaccinations such as one that prevents rabies, for example, are particularly critical and may save your animal's life. Similarly, routine medications such as heartworm preventives should be given every month. Skipping doses can be expensive, as treating heartworm costs as much as $800 - $1,000 (yikes!). In addition, treating the disease is risky and can be painful for your pet.

4. Spay and Save: For the average pet owner, spaying or neutering is a must. If you have a limited income, you may be able to save by taking advantage of low-cost clinics for these services. Keep in mind that spaying or neutering your pet can prevent the immediate expense of new pets in your family and the societal expense of unwanted pets being turned in to shelters. It also reduces the occurrence of some common diseases, such as breast cancer in pets.

5. An Ounce of Prevention: Prevent an unplanned, emergency vet visit this holiday by doing your part around the house. Many items that are a routine part of holiday celebrations could be toxic or harmful to your pet. Examples include:
-- Mistletoe and even poinsettia, while beautiful, are highly toxic to dogs and cats
-- Chocolate and macadamia nuts are toxic as well, and yeast-based bread dough can actually be fatal to your pet as it causes intestinal bloat
-- Tinsel, if swallowed by a curious kitten or puppy, might cause intestinal blockage
Consult The Merck/Merial Manual for Pet Health for more in-depth guidance.

6. Brush Up: Proper dental care is an often-neglected component of the pet health regimen. Regular use of an inexpensive toothbrush and toothpaste designed for pets can delay or avoid a professional cleaning costing several hundred dollars. You also can purchase pet food designed to help eliminate tartar. (I buy tarter-preventing treats...yum!)
******

My friends at Merck/Merial note that more tips are available in their book, "The Merck/Merial Manual for Pet Health," written with tips from more than 200 veterinarians. You can buy it for $15 at www.merckbooks.com and wherever books are sold.

Thanks for the info! What tips do you guys have for caring for pets on a budget? I would add to the above that spending time with your pets can keep them healthier and happier, and might actually stop you from spending all your time shopping.

My New Favorite Word

2008-12-07T13:07:00.002-06:00

It's Recessionista.

So cute, right? Thanks to WhoWhatWearDaily for coining the term. Read about it here.

(No more to read on this one.) >>

:)

When It's OK to Spend a Little

2008-12-06T13:02:00.002-06:00

When I was growing up, the best thing my mom could say to me was, “Sometimes it’s OK to spend a little on yourself.” This was usually said during one of her marathon weekend shopping trips. As a mother of four young, rowdy kids, her weekends usually consisted of frenetic trips to the grocery store for carloads of food, and trips to JCPenney, Kohl’s and anywhere in the mall with a sale where she power-walked her way to pick up clothes for our family’s ever-heightening inseams (“Come on! You guys walk so slow! The store’s gonna close and we’ll miss the sale. RUN!).

You can imagine how tight her budget was. Though my dad always worked multiple jobs to support the family, his paychecks were always stretched to the max to support our needs. That’s why it was always such an indulgence when we were allowed a little something extra, like a Seventeen Magazine, during the course of the weekly shopping trips.

As I got older, mom and I continued shopping together on the weekends. As an intern, earning $10 an hour and living with my parents (and all my brothers) after I graduated, these shopping trips were downright depressing for me. Frazzled by long hours and demanding accounts, I went along for the escapism, but bought only necessities and stuck to my budget. This meant forgoing all the great deals on shoes, clothes and sparkly things I felt I was entitled to as a full-time worker in the “real world.” But every once in a while, as I looked wistfully at a new lipstick or fragrance, my mom would say, “Oh, go ahead. You have to spend a little on yourself every once in a while or you’ll go crazy.”

And despite my shtick about keeping to a budget and the importance of saving, it’s a philosophy I adhere to today.

I was thinking about this “spend a little on yourself” idea as I browsed my staycation spending post. In today’s economy, it seems strange – and almost selfish – to splurge on things like spa days and nights out. But walking home last night, it occurred to me that even in a recession, there are certain circumstances where it’s OK to spend and not feel bad. In fact, sometimes it’s even necessary. Here’s my list of top situations during this messed up, down economy holiday season when it’s OK to spend.

Prerequisite: You have a job, a savings cushion, your finances are in order and you’re not using credit to buy. All the other suggestions are based on this prerequisite. If you don’t maintain all of the above, sorry, you gotta hold off for a while on the spendiness.code>

Your look/grooming. Sure we’re all scared of the economy. But that does not make it OK to forgo personal grooming habits for those of us who deal with clients or customers on the job. If you’re holding onto your job, show your bosses you take it seriously by always putting your best foot forward. This means you may have to spend a bit on haircuts, makeup, nail polish and styling products. You may also have to keep your clothing current. I’m not saying you need to go overboard, but if clothing is faded, torn or you got it in the 90’s, it’s OK to update your wardrobe to be more sophisticated. You get paid a salary, and part of that salary, if you can swing it, should go into maintaining your appearance if you deal with clients or customers.
Your kids. Even if there’s doom and gloom everywhere in the papers this holiday season, give them just as special a holiday as any other, whether that means decking the halls and stringing popcorn or just enjoying the snow. It’s OK to spend a little on the little ones. Even if it’s just a Seventeen magazine, a little goes a long way.
Technology upgrades (within reason). Why is it OK to upgrade your technology? Because it keeps you current and connected. Let’s say your computer breaks down and you don’t fix it and then you lose your job. Where will you update your resume and job hunt? The library is a natural answer, but you’re limited to what software your library has and the library’s hours. And then when you do have a job interview, you’ll need to be able to research the company, the industry and important relevant news, all which can be challenging with no Internet.
Winter clothes. If you need a new coat, boots, under layers, hat, scarf, etc. this winter to stay warm, buy it. You’ll probably get a good deal, too.
Your health. Don’t scrimp on your health. This includes preventative measures, like a gym membership, as well as “health management” of problems. If you have a bad back, go see a doctor. If you need medicine, get it filled. Educate yourself on how to feel better and then do it. You’re not the only one counting on your health, after all.
Travel. If you’ve been saving up for a trip, don’t cancel it. You may end up going somewhere cheaper, but at least go somewhere. Not everyone will agree with this, but to me travel – exploring new cultures and destinations – is as important as any of the above. Travel helps broaden perspectives, it results in shared knowledge and sometimes even helps us to understand just how good we really have it. It’s nurturing for the soul and gives us an overall feeling of renewal (if done right). So keep your big trip. You may need to rely on those memories someday.

I’m sure I can think of more, but I’ve got to go visit my dad (he just got done with surgery) and then we’re off to B’s nieces’ birthday party. Let me know if you agree or disagree with the above, and have a warm and happy weekend.

All I Want For Christmas...My Charity List and Christmas List

2008-12-04T22:52:00.005-06:00

My brother and I were talking the other day about our Christmas plans, and discussing what we really need vs. what we want. I really need a new camera and computer (both are on their last leg) and he really needs tools for his house. Unfortunately these are pretty big-ticket items and given that both B (my boyfriend) and my brother's wife are out of work, we decided to give gift certificates to each other to help out with the payment. But then we realized that we would just be giving each other gift certificates with the same amount of money in them, which seems a little odd.

So we decided to give each other just Christmas cards, no gift certificates, and save the trouble of shopping for each other. This will be hard, but I think I'm going to draw him a card or create it with photography somehow to make it special and meaningful. And I'm OK with that.

The truth is, for in the last few years, I've been tired of filling my Christmas list with little stuff that I don't need that will just take up space in my apartment. In the past, I've tried the "Make a donation to this charity in my name," request, but I always get the "Oh, that's not fun" response. It sounds selfish, but I think people naturally want to indulge in the gift-giving process -- it says something about the giver and serves as a relationship builder to let the recipient know you're thinking about them by picking out just the right gift.

But if you're self-sufficient, it's a little awkward to create a Christmas list at the request of your family. You see, I'm able to spend money on myself to get the experiences and things I really want during the year. When it comes to the holidays, I always feel strange asking for gifts I don't need, when, for instance, I know that my younger brothers and some of my cousins in school or with kids really need a lot.

So this year, I'm going to create an extremely small wish list... gift certificates to Best Buy to supplement the computer and camera. That's it. And I'm going to give the charity request another go around...

The charities I will probably request donations be made to this Christmas are:

Children's Memorial Hospital (Chicago)
The Chicago Food Depository

And to start the trend, I am gonna go out on a limb this year and make donations in my co-workers' and families' names to those charities, and to It's Hip To Have Heart, my cousin's wife's foundation.

(As some of you know, during the year, I also donate to the Chicago Police Memorial Foundation, still a fantastic and worthwhile organization.)

Gifts are great, but this year, I'm lucky enough to have everything I need.

How I Spent My Thanksgiving Staycation

2008-11-30T12:17:00.003-06:00

After a long week off work, tomorrow I'm back to the grind. The time off has been restful, but I realized that I spent much more time "catching up" with friends and family (I think I attended a party every other day) than I did at my own apartment. Which is probably a good thing. Being here just makes me want to spend money to fix things that probably don't need it.

Take today, for instance: I woke up and thought to myself, "I really need to clean the bathroom." But when I got in the bathroom to clean it, I thought, "I really need a new cabinet to help me organize my ever-growing collection of hair and skin products (where do they all come from?). Also, I need new rollers for my hair. And I should definitely stop at Ulta and pick up some of that plumping lip gloss Angie was talking about last night."

And so it goes. In my living room as I'm vaccuming, "I could use a tall bookshelf from Ikea. Maybe I should go to Ikea today." While blogging, "I SO need a new computer. It takes this one eight times to start up," (it does), and "Why am I still using my broken digital camera?"

When I'm here, nothing seems good enough and all I want is new stuff.
But when I'm out with friends and family, enjoying their company, my apartment's imperfections are the farthest thing from my mind. And really, on a regular weekday, I'm here, what, two or three of my waking hours?

Having said all that, I'm wondering what I really did spend at home on this "staycation." Is it really cheaper to spend time outside of my apartment, or should I just make some small improvements here, like bookcases, shelving and a computer?

A quick look at my debit card reveals I spent the following on my staycation:
...

I took a quick overnight trip to Peoria for my friend's 30th birthday party:
$34.00 Amtrak ticket
$109.00 Birthday present (that will be split with a friend..but still, yikes!)
$10.00 Train food (Wine and cheese)
$6.00 Dinner (Fast food)
$10.00 Breakfast (Eggs, bacon, toast, taters, yumminess)

Back in town, I took my cat to the vet yet again due to her diabetes and behavioral problems:
$78.25

Which led to a trip to target for some kitty supplies, where I ended up buying some stuff for me too (pajamas for the winter, on sale!, a season of "Always Sunny!," on sale!)
$118.45 on miscellaneous stuff and cat supplies

Around this time I also managed to pay all my monthly bills, and make a monthly transfer to my savings account.
$1,200 to savings
$450 to bills/loans

And I made my quarterly trip to get my hair done and... this is a total splurge and I also got my nails done which I do once per year around the holidays... total spa day.
Nails (w/ tip) at Macy's: $25
Hair (w/tip for stylist and shampoo girl): $215 for shampoo, cut, dye, highlights and style
Margaritas and dinner with my friend after: $23.16

Then, it was Thanksgiving, and thankfully I didn't spend anything over the next few days... until B and I decided to have an expensive holiday dinner and pub crawl involving several high-priced martinis at Hemingway's Bistro.
B picked up dinner
$55 for martinis
B also picked up drinks at bar #3

Yes, that was pricey, but I can't tell you the last time we went on a date, given our schedules. The night ended with me challenging B to a 1-mile race, and instead we both passed out on our couches watching episodes of "Arrested Development." B woke up the next morning in his running shoes.

Yesterday, my friends and I held a game night to save money, so I only spent about $10 on dinner and had a fabuloso time.
...

Looking at the above, I don't think I saved any money by staying in. But I did manage to get a bunch of health appointments (mine and the cat's) out of the way, and spent time with with my friends (an overnight in Peoria, plus a spa day and a girls' games night), my boyfriend (date night) and my family (Turkey day gatherings).

It may not have been expense-free, in fact, I splurged more than a typical week, but doesn't that week sound much better than setting up a computer or installing shelving into a bathroom? It does to me.

Now I'm off to go complete a few final errands before I start working again tonight... turns out I really do need that lip gloss from Ulta.

"Get your financial house in order"

2008-11-29T13:25:00.004-06:00

Most personal finance books start at some variation of “Chapter 1: Get your financial house in order.” Great concept. But how do we go from, “I don’t know what’s happening with my finances,” to “I feel good about my finances”? And what does “getting your financial house in order,” exactly mean?

If you’re like me, you probably have bills in random places around your house. You may have shredded some stuff, and held on to others for years and years (I actually have an old plastic bin with paper copies of all my tax returns, bank statements and credit card bills going back to 1997!). You probably use a combination of online banking and bill pay and hard copy payments and records. You may have attempted to make a budget once or twice, but who knows where your finances go now.

So how are you going to “get your house in order” when your finances are literally all around your house?

Certified professional organizer Joshua Zerkel, founder of Joshua Zerkel’s Custom Living Solutions (www.customlivingsolutions.com), has some answers for us. He specializes in organizing home offices/small offices, managing paper clutter and helping clients deal with the never-ending influx of paper, email and other information that can clutter our daily lives.

Here are Joshua’s best tips:
1. Collect all your financial "stuff" and have it in one place (he likes Pendeflex accordion folders to stay organized). For me, this means going into my home office, my coat closet, Brian’s home office and our shared mailboxes to find all the financial paperwork lying around, some organized, and some not.

2. From here, use a tool like NeatDesk desktop scanner to get a sense on how much you spend across all the areas of your life to help you make informed decisions on how you can save.

Joshua likes Neat because it gives you an overview of your spending and is a great way to manage paper clutter (and not just your financial papers so it serves other purposes for organizing your desk and home)
He likes Quicken to manage your investments and have a comprehensive look at your portfolio. Neat scanners and Quicken have different tools and it's a matter or what best suites you. (However, spreadsheets you create in Neat can be easily exported to Quicken.)

3. Another suggestion Joshua recommends for important papers is to store them offsite to have a backup in case your computer dies or there is some natural disaster- he likes Mozy and Anywhere Vault which are both web-based storage for scanned images and are low cost.

As you scan into your computer, it's important to shred these documents to make sure you don't become a victim of identity theft.

Another advantage to organizing your finances with digital tools is that you free up physical space in your home office - time to move out some of the filing cabinets!

Getting your house in order can go beyond your finances. Joshua also shared some tips for decluttering your home and office.

Not to be confused with the web-based storage I mentioned earlier, physical off-site storage units can be a huge money suck each month, so if you have one, it's time to get in there and see what you really need. Look for treasures and bring them home. Then donate (get a tax deduction while you are at it) or sell the rest on eBay.
He often advises clients to access everything they use on a regular basis - cell phones, cable and even home services like loan or house cleaning. Call up each company and be honest with them - tell them you want to keep their service, but would like to look at ways to reduce extra fees, even if that means just through cutting back on services. He says they will often work with you.

Thanks Joshua! We're thrilled to have your input. Now I've got to go start collecting, shredding and scanning (but not in that order). It's a great way to spend a cold winter day.

MIA Me: Here's Why

2008-11-19T08:52:00.003-06:00

Team finance, sorry I've been MIA for the past two weeks. I've been on the road, sick and dealing with some PF issues of my own at home.

On the road: During the past month, I've been in Boston for a week, Greensboro, NC, for a week and in Utah (Salt Lake City and Park City) for a weekend. My life has become a never ending rotation of packing and unpacking suitcases. It's much less glamorous than you might think, and timezone-hopping wears me out! Plus you would absolutely freak out if you saw my credit card statements with hotel rooms, flights and other reimbursable expenses on them. But I'm home for two solid weeks now, time to get my bills settled and spend Turkey Day with the fam, until I go to New York the first week in December for work.

Sick: Ugh. Sinus infection. Doctor's appointments, antibiotics, nasal sprays, personal steamers, humidifiers and neti pots. Need I say more?

PF issues at home: Not mine, per say, but my bf got laid off from his job, caught in the whirlwind of the financial mess. While I can't share the specifics, I can say that we're OK and happy that he started law school before the economy went down the tubes! Chicago seems to be pretty hard hit as a result of the financial crisis/recession, and we have several other smart, talented and professional friends and family members out of work. Life goes on, right?

I hope you're keeping up with all the news and managing your finances through what seems like it's going to be a really bad holiday season. More to come on that, but until my next post, remember that time with your loved ones is more valuable than any pricey gift you can buy.

Chicago Election Night Pics

2008-11-05T19:35:00.004-06:00

No matter who you voted for, last night was an historic night for the city of Chicago. Here is a link to my cousin's photos from the main rally so you can see how massive the crowds were in Grant Park. My camera did not perform quite as well (add that to the list of things to buy), but I've uploaded a few photos from the non-ticketed rally here, too (but go to the link above first, they're really amazing photos).

This is yet another example of all the cool things you can do for free. The largest political rally in the country on election night in a safe, secure, beautiful and happy environment? Check. I was so proud of my country and my city last night.

To the city of Chicago:
Thank you to the police officers, fire fighters, officials, security guards, emergency workers and city planners for putting on a breathtaking show last night. The city absolutely sparkled, and you made it possible for so many of us to witness history in the making. Your sacrifice and courage are appreciated by the masses who attended the rally. The world was watching, and you showed them the city at its best.

And now... my pictures. (My camera is really, really bad in low light. Go visit my cousin's photos before you see these.)

The Art Institute, patriotically perfect

Cool sign on the way to the rally

Walking in on Michigan Ave

Looking back on security

The non-ticketed folk (mostly students and families) walking to our unplanned rally

Getting excited

People in trees

Two of the big screens in our area. There are TONS of people watching them, but I think the effect of the screens is really cool with my cheap-o camera.

Obama addressing the crowds

Walking home, a sea of people behind us (look all the way back, the entire bridge is covered in people).

.

More Incentive to Vote: Free Stuff!

2008-11-04T16:14:00.002-06:00

Coffee, doughnuts and ice cream, oh my! As many others in the blogosphere have noted, an "I Voted!" sticker gets you lots of fabulously free stuff today.

Companies offer free coffee, doughnuts, ice cream for election
By EMILY FREDRIX | AP Business Writer
8:38 PM CST, November 3, 2008
MILWAUKEE (AP) _ Americans will pick a new leader for the country on Tuesday, and will be able to pick up some free coffee, ice cream and other goodies too.

Starbucks Corp. is offering a free cup of brewed coffee to anyone who asks on Tuesday, while Krispy Kreme Doughnuts Inc. is giving away star-shaped doughnuts. Ice cream maker Ben and Jerry's is offering a free scoop as part of a celebration of the election.

Seattle-based Starbucks had originally planned to give away the "tall" brewed coffees to anyone who reported that they voted, saying in an ad: "If you care enough to vote, we care enough to give you a free cup of coffee."

The company broadened its offer to all customers to ensure it was in compliance with election law, spokeswoman Tara Darrow said Monday evening.

"We hope there is a record turnout on Tuesday and look forward to celebrating with our customers over a great cup of coffee," she said in a statement.

David Ammons, spokesman for the state elections division of Washington state, had said earlier that a promotion tied to whether people voted could be construed as rewarding someone for voting and could violate federal and state law. He said the state's attorney general's office contacted Starbucks about the issue on Monday.

Starbucks spokeswoman Lisa Passe said earlier Monday that the company wouldn't disclose how much the promotion was costing or how many cups of coffee would be given away.

"We're confident that this is a smart investment for our brand and that it's simply the right thing to do at a time when every vote counts," she said in an e-mail.

By late afternoon Monday, more than 127,000 people had indicated they would take advantage of the coffee giveaway on the online networking site Facebook.

Ben and Jerry's, meanwhile, will be giving a free scoop to each customer at its shops from 5 p.m. to 8 p.m. on Tuesday.

The company said in a statement it had planned to give free scoops only to people who voted but learned that certain laws may not allow it. Instead, it's celebrating the election with a "national party," said Walt Freese, Ben and Jerry's chief euphoria officer.

"Even though we're giving scoops away to everyone, regardless of whether they vote or not, we hope they still take part in their civic duty," Freese said.

Krispy Kreme is giving star-shaped doughnuts with red, white and blue sprinkles to anyone who mentions the promotion, said spokeswoman Ayana Hernandez, but they won't be required to show an "I voted" sticker.

The company's 85 company-owned stores will be participating, along with an unknown number of its 145 franchisees, she said. Krispy Kreme estimates it'll give away about 200,000 of the doughnuts.

"It's just another way to give customers a free doughnut," Hernandez said. "It's not in any way tied to you have to be a member of a certain party, political party or anything like that."

There's also the possibility of free food from Chick-fil-A restaurants. The company says its local, independent operators — perhaps a couple hundred of them — will be doing voluntary giveaways of products like chicken strips, sandwiches and milkshakes on Tuesday. It's not clear if people will have to show proof that they voted to get the free food because the promotions are run at the local level, said Brenda Green, a spokeswoman for Chick-fil-A Inc.

The companies, for the most part, have shied away from endorsing specific candidates.

But in the primaries, the founders of Vermont-based Ben & Jerry's endorsed Democrat Barack Obama and donated two "ObamaMobiles" to his campaign to drive around the state and give away scoops of "Cherries for Change" ice cream.

Remember to vote today!

2008-11-04T08:03:00.000-06:00

It's election day in America! Chicago is abuzz with possibility this morning and alive with hope on this beautiful 70-degree day. I'm blogging from the polling place in Oak Park to encourage you to get out and vote today. And from a strictly financial perspective, you should! Roughly a third of your salary goes to the government, so why not have a say in how it's spent? Get out there and cast your vote in this historic election. Your finances are depending on you!

Last Minute Costume Ideas on a Budget

2008-10-31T13:43:00.000-05:00

The other week in Boston, a friend and I were discussing whether or not she would dress up for Halloween. I was all for her dressing up, and offered easy and fun, yet fully covered suggestions ranging from the classic nerd outfit to marathoner to ninja.

And then it hit me: I didn't have a costume or plans!

When I got back to Chicago, I quickly found a hotspot to hit up (the Yelp party) and chose a costume (rhythmic gymnast, as part of a team). And since then, I've been spending my nights shopping for and making my costume - freehanding glitter designs with fabric paint and firing up the glue gun to bedazzle my leotard and velour track pants.

Why spend money on something as frivilous as a Halloween costume this year? Why go to the effort to create and decorate a costume? Because for one night, one weekend, you have the chance to leave behind your worries, step into a character and create memories that last a lifetime.

I was reading in the Tribune today a story about the guys who play ghouls in local haunted houses and a Halloween memory came rushing back. When I was in college, a close friend and I volunteered to be ghouls at the Jaycee's haunted house. We spent the day together, scaring young teens and laughing hysterically. I think I was a girl who shouted "I see dead people" (it was when the Sixth Sense came out) and then he'd come up behind them and scare the pants off them. My friend has since passed away, but I will always have that powerful and happy memory every Halloween. It's so out of the ordinary that it's crystal clear in my mind.

As is the time when I visited my first haunted house in grade school with my mom, where I had to reach in a box and touch something spooky. It was cold cooked spaghetti noodles, lumped together, but I thought it was a brain. I was pretty freaked out, but once my mom (and a volunteer) convinced me that it was spaghetti noodles, this former scaredy cat and perrenial "glenda the good witch" I got over it and eventually made visiting haunted houses an annual tradition that would last through college.

More recently, in my adult life, my friends and I have used the evening as a way to bond. While we love to gather and tell stories about the crazy times we had, the opportunity to wear a group costume (whether a basketball team or a table tennis team) is a great way to make new memories. After all, how many nights with your girlfriends can you really say something like, "There I was, singing Bon Jovi karioke dressed as a ninja next to an NFL Ref, when this huge banana walked into the bar ..." now THAT'S a story.

So take my advice to heart: grab a friend, make a cheap costume and dress up tonight. Put all your economic fears aside and live on the edge for one night. Burn that costume and everything you embody in it, into your memories. Make it a night that counts, make it a night that lasts and most of all, enjoy yourself!

Tips for making a last minute Halloween costume:

1) Avoid costume stores. Last-minute shopping is no time to waste at a costume store. Go for something easy - grab a plaid shirt at Marshall's and some snug pants or floor length skirt, pick up some "reading glasses" at Walgreens, affix some tape to the bridge, throw in a pocket-protector and voila! Nerd costume! Or, pick up some short shorts and a head band at Target, grab a running shirt, use magic markers to make number on a white piece of paper and Poof!, you're a marathoner. How about a poncho from CVS, and some hair gel to mess up your locks? Now you're a weather forecaster in a hurricane.

2) Don't spend a lot. The trick is to be creative, but not to spend a lot. I once went to a family party dressed as my uncle (who happens to look like a superfan). It was awesome and all I bought was a Bears t-shirt and a flat-brimmed baseball cap. The rest (including mustache) was made from materials at home. I think I spent about $10 on that costume.

3) Don't forget the make-up. Make up can increase a costume's awesomeness in a second. It's easy, cheap and if you mess up, who cares? It's washable. My rhythmic gymnast costume, for instance, wouldn't be nearly as believeable or funny without glitter, bronzer, red lipstick and heavy eyeshadow. Committ to it!

4) Don't go trashy. I once saw a bartender who was wearing a bra and some body paint. Eww. Don't stoop that low. Even on halloween, it's not OK. I don't even know what her costume was supposed to be, I think she was trying to be a vampire victim. They need shirts, too, you know.

5) Don't go creepy. We once saw a group of grown men wearing diapers, pacifiers and baby bonnets. Were they hoping to meet women? I hope not. Nothing screams "stay away" like a guy who can't grow up. Plus it's just creepy to see grown men in diapers.

6) Use those old bridesmaid dresses! 80's prom queen! Miss America! Carrie! Drag queen! The possibilities are really endless. Trust me on this one.

Personal finance gurus on my mind

2008-10-27T21:22:00.004-05:00

Does it seem as if the entire world has gone budgeting crazy? Everywhere I turn, every personal finance guru is urging caution: follow a budget, increase your savings, live within your means, pay off your debts, eat out less.

I have a few thoughts on this:
1) The message is getting across...with mixed results. I read retail is tanking right now, and household savings are up. Smart for the millions worried about loosing their jobs or struggling to make mortgage payments, but not good for those who work in retail. It's crazy how unintended effects can happen even when people have the best of intentions.

2) With so many experts talking budgeting, it's hard for me personally to feel inspired to write about budgeting. I actually feel budget-fatigued. Not in the sense that I don't want to follow a budget, but more that I am tired of reading about the same theme: Entertain on a Dime! Dressin' for Recession! Smart Shopping Strategies! Ugh. Familiar territory, right?

So what's a budgeting babe to do when feeling frustrated and uninspired about personal finance? I've gone back to basics to try and learn a little more about some new topics, I've started thinking about the cause of my frustration and I've started to spend time on some new creative outlets. After all, the point of having a budget isn't to stress more about how you're spending and saving money; it's to free up your anxiety about being broke so you can live a more fulfilling and enjoyable life.

++++ Back to basics. I'm reading two books about personal finance, but not about the usual stuff. It's slow-going, but I'm reading a book about the economy called "Common Cents," which is more of an Econ 101 book, and I'm actually getting past the first few chapters of "Home Buying for Dummies," because hey, eventually my downpayment fund is going to be spent.

++++ Thinking about causes. You know, I honestly thought I would be further ahead by now. I wanted to buy a place in July 08, but I didn't. I wanted to buy a place in April 09, but now it's looking like that's not smart idea either. I continue to save, but not to see the results. While my accounts are looking good, it's not reflected in my daily life. I'm still living like an entry level employee, and socking away money every month. Only it's not enough. After 4 years of savings, the financial crisis has put the breaks on my spending plans.

I'm not going to go out and spend my downpayment or anything drastic like that. But I've got to come up with a way to feel like I'm growing in my life without moving to the next step I've been working towards just yet.

++++ Creative development. This weekend, I ran the wardrobe and make-up on my brother's movie set for his art school project, and coordinated a dance scene under his direction. Working on the set, seeing his creative vision come to life and being a part of it, was totally fun and tapped into an area of interest I had forgotten. I was tired when it was done, but I felt creatively refreshed. I realized that life can't be all seriousness, cubicles, numbers, fluorescent lighting and finances. I personally need to live in color and explore interests outside of the daily grid in order to have a distraction every now and again. And it doesn't have to be expensive.

Speaking of creative pursuits, I'm off to go work on my weekend wardrobe and bedazzle my Halloween costume; I'll be sporting a sequined rhythmic gymnast outfit at Friday's Yelp Party and can't wait to see how it turns out.

Tips for Sticking to Your Guns (or Swords) When It Comes to the Bill

2008-10-21T22:47:00.004-05:00

A few weeks ago, my friends and I threw a fabulous pirate-themed 30th birthday party for my besty, Miss K, a tiny - yet fiesty - brunette with a quick wit and a penchant for tap dancing and shoe stealing. She's the greatest, so we went all out and threw her a reasonably priced, all you can drink gathering at a popular dive bar in Chicago's Bucktown neighborhood. (OK, maybe not ALL out. But we did purchase a pirate pinata and had hats, swords, eye patches and name tags of famous pirates to wear. Mine was "The Dread Pirate Roberts." The bar tender didn't get it.)

The party went swimmingly, until about three hours into the "all you can drink" wristband deal, when the bar manager brought the bill over. We were expecting to see a charge of $150 plus food, because that's what my friend S agreed to when she booked the room. Instead, the charge was $300 plus food. "Crap," we thought; we were screwed.

How could this happen? We went over the details in our head. Initially, after talking with dive bar owners at several other places in the city, we selected this one because S had a close friend who knew the owner and could get us a good deal for the party. We put down a $150 deposit to hold the room, which would be kept if we didn't get 40 people to buy a $30 wristband.

Only now the owner was saying that we had to purchase all the wristbands that we didn't sell up to 40. There were a couple more details that aren't important enough to note, but bottom line, the owner wanted $300 and we were only prepared to pay $150. We were convinced it wasn't a miscommunication: as S said, "Why would I have booked this bar if it wasn't the best deal? We talked to so many other places."

S and I wondered to each other whether we should just make it easy and pay the extra $150. After all, it was only $75 extra for each of us. We resigned ourselves to being angry and paying the bill, but asked our lawyer friend (LC) for her opinion first.

"What does the contract say?" LC asked us. S said that she never signed a contract. I thought that was weird, given that I plan a lot of events and you NEVER book an event without a contract. LC said that was ridiculous. So she summoned up the owner, brought us into a staircase/hallway setting (very intimidating) and told him we were only paying $150 and advised him to start using contracts. And it worked. We paid our $150, signed the bill and took our party elsewhere.

Granted, we had to agree to not come back to the bar, but given the lame-ness of the owner, we were OK with that. I doubt we'll miss it.

What did I learn? Well, here are a few tips for your next party:
1) Don't book without signing a contract. The written document should have all the specifics of your payment detailed on the page. There should be no ambiguity as to what you're responsible for covering.

2) Stick to your guns (or swords) when negotiating. S and I were ready to fold, but LC had a few tricks up her sleeve. For instance, she knew that if she said, "We'll pay $150 now and I'll give you my card to discuss the rest of the bill on Monday," that he wouldn't follow up. She knew that it takes $200 to file the paperwork (or something like that), and that the money in question was only $150... legal follow-up would cost the bar more than not.

3) If you have two people planning the same party, make sure one of you is the consistent point of contact for any particular venor. Otherwise, your lines could get crossed and you might miss out on little details (like contracts).

4) If the bar kicks you out because of their contracting shortcomings, don't be salty. There's another one right down the street, and they'll let you whack a pirate-pinata using a red stilleto heel to rain down candy all over their floor, much to the delight of all the other patrons. And really, that's way more fun than standing around haggling over the bill, anyway.

Random Thoughts from Boston - How Much is a Hat Worth?

2008-10-16T14:55:00.004-05:00

Hello from Boston! I'm here on business, staying at a posh hotel near Boston Commons. Remember how I used to be all nervous about staying at fancy hotels because I felt I could essentially be a member of the wait staff? I'm not saying those days are behind me, but gosh, a girl could get used to this.

I just got sidetracked by a hat store on the way to a site check and ended up spending $35 dollars on two hats. I'm slightly conflicted because 1) I did not need the hats, and yet 2) Hats are very practical because they keep your head warm in the cold winter months. At any rate, I adore the hats and I got them on sale, so I'm keeping them. Besides, I just got this fantastically existential Steve Martin quote printed on the side of my Starbucks coffee cup (yes, I swore off expensive lattes in favor of home-brewed java, but I'm so dragging and away from home so I excused it this time) that I'm now pondering. Here's the quote:

"If you've got a dollar and you spend twenty-nine cents on a loaf of bread, you've got seventy-nine cents left. But if you've got seventeen grand and you spend twenty-nine cents on a loaf of bread, you've still got seventeen grand. There's a math lesson for you."

Indeed, Mr. Martin. Budgeting babes, feel free to ponder with me. I suppose the value of money really is relative based on what you personally think about it and where your finances sit. Let's all remember that the next time we pass by the hat shop, OK? In college, $35 for two hats would have seemed expensive, but today it's cheap. I need to try to keep my college budget mentality in order to help me curb spending in the here and now.

Here's one way I'm making up for it: I was considering indulging by getting a manicure for the meeting I'm attending, but instead I'm going to do my own nails tonight using the supplies I brought with me from home. That's how I roll: spend a buck, save a buck. Choose one or the other. Not both.

OK, enough for that short ponder-ific break. Back to work.

Read more of my travel adventures here.

Should I reduce my 401k contribution while the economy tanks?

2008-10-10T13:01:00.003-05:00

Here's a question. I'm currently putting 10% of my salary into my 401k. Given how craptacular the stock market is doing right now, and that my fund is actually going down instead of up and hasn't made any money this year - has actually been steadily losing money - would it make sense to lower my contribution to 5% until the storm has passed? I mean, I won't be taking anything out that's already in the account but right now it seems like I'm literally throwing my money away.

OK, I already know the answer is an emphatic "LEAVE IT IN!" but seriously, if I can put another 5% of my salary into a savings account while my 401k is tanking, why wouldn't I? I'd bump it back up to 10% when things start looking up...

Enlighten me and give me some confidence, smarty pants-ies!

New Web Link: Savvy Sugar

2008-10-09T08:52:00.003-05:00

Hey gang,

Today I added a new Web site to the "Best Web Sites" page of the blog. It's called Savvy Sugar and it takes a similar approach to finances for fun-loving ladies. Good to see more folks getting in the game!

Be sure to check out all my favorite fiscally fun sites here. And be sure to let me know if I'm missing your favorites.

1 in 6 Homeowners "Under Water"

2008-10-07T22:04:00.005-05:00

Wow. Just how deep does this thing go? The Wall Street Journal says:

"The relentless slide in home prices has left nearly one in six U.S. homeowners owing more on a mortgage than the home is worth, raising the possibility of a rise in defaults -- the very misfortune that touched off the credit crisis last year."

Read it here.

... and ignore this --->

You Win! Blockbuster is more expensive, and I'm a cheap-o

2008-10-07T20:05:00.003-05:00

OK, I clearly paid too much for B's post-surgery DVD selections, LOL! You guys were kind enough to point out that recent TV seasons were available much cheaper on Netflix and also pointed out that the library is a great resource for videos and DVDs. And I thank you for that! Blockbuster isn't the way to go, I guess. As someone who rarely rents movies, can you forgive me?

This discussion is a great example of how, for those of us living on a budget, clearly even the smallest things matter. Here are a few small things I do to keep costs down:

- In my building, I shopped around for the cheaper cup of coffee between Dunkin' Donuts, Starbucks, McDonald's and the winner, Au Bon Pain... they even give a discount if you bring your own cup. Woo-hoo! (OK, bringing your own cup is way cheaper, but I don't wake up early enough in the morning to make it.)

- Pay all my bills on time so I don't pay late fees

- We don't keep a land line, only cell phones

- We started buying cat litter at the grocery store because the same brand is cheaper than the pet stores

- We buy our Clif/Luna Bars by the case at Whole Foods b/c you get a 10% discount on all purchases by the case

- Do my own manis, pedis(and they're fab, thank you)and brow waxing

- Stay home at least one weekend per month to avoid spending at bars/restaurants (plus, it's good for the soul and sleep schedule)

- Use coupons!

- Resist the urge to buy a new work bag, even though I look ridiculous carrying a backpack because my old bag killed my back

- Keep a bottle at my desk for water, instead of buying bottled water

- Rearrange my furniture at home instead of buying new stuff! (I think it helps get the chi flowing.)

What small things do you do to cut spending in your daily and monthly routines?

My week in sleep, Cubs losses and travel

2008-10-05T16:12:00.006-05:00

I'm feeling uninspired today... probably has to do with last night's Cubs game... so I thought I'd share a few high/low points of my week. Here goes:

Monday
12 a.m.: B nearly passes out in the shower for no reason, ends up lying on his bed seeing stars. Thankfully he's OK, but we definitely did not go to the emergency room to have him checked out because we're cheap. Instead, I checked his vital signs - heartbeat, breathing rate, eyes, color/complexion, temperature - all seems normal and he decides to call the doctor in the morning. His biggest complaint is that he didn't get to rinse the shampoo out of his hair. Still, I'm worried enough to delay my flight to Philly from Monday evening to Tuesday morning. I wish trips to the ER weren't so expensive. I spend the rest of the night tossing and turning, and get about three hours of sleep. Then I'm extremely grumpy at work all day, and take to drinking lots of coffee to compensate. Arg.

Tuesday
5:15 a.m.: I'm in a towncar riding to the airport. Another night of no sleep. Thankfully today's coffees will be on my expense account. Another double shot soy latte, please.

6:30 p.m.: Eating a Philly cheese steak in Philly. Heaven.

11:00 p.m.: At the hotel bar with a big group. I forget that I've only slept about 8 of the last 48 hours.

Wednesday
6:45 a.m.: My alarm clock reminds me that it's 5:45 my time. My face is puffy, my eyes are bloodshot and I'm pretty sure everyone I'm traveling with thinks I'm hung over. If only there were a face cream that could clear up "sheer exhaustion." I would buy it in a heartbeat, I don't care the cost.

I get into Chicago around 8 p.m. and pass out on my couch around 9 p.m., listening to the Cubs get thumped.

Thursday
9:30 a.m.: I wake up two hours late. My head hurts and I'm convinced I'm getting sick. I go buy a new multivitamin and a B-Complex with vitamin C and zinc to ward off any cold. I start drinking tea instead of coffee. I wonder if getting back to the gym would help any of this, but going to the gym would mean even less sleep. I curse my schedule a bit, then get super thankful that I have a job in this economy. Sprinting from the train to the office when you're 2 hours late counts as exercise, right?

7:00 p.m.: I meet up with friends to see Weezer in concert. At this point, I totally don't want to go, but I've already paid $60 for my ticket and I'm holding tickets for two friends who are VERY excited to see Angels and Airwaves. B and I reluctantly head to the stadium... thankfully the show doesn't suck and we manage to enjoy ourselves, despite the couple inappropriately making out in my personal space... (Can you imagine? Rivers Cuomo as an aphrodisiac?)

11:00 p.m.: I try to stay up to watch my Cubs, but they're getting crushed and I'm tired so I pass out on the couch for a second night straight. I'm pretty sure my couch arms have mascara stains on them by now.

Friday
11:00 a.m.: At the eye doctor, I learn I don't need new glasses. Sweet! Unfortunately I get a prescription for some hard-core eye drops that cost $40/month so I can try wearing contacts yet again. Darn. And I get an appointment for a follow-up to make sure the drops are working and get a "contact fitting," which is billed separately from the eye exam.

Saturday
3:00 a.m.: I wake up with an intense headache that lasts all day. Does this mean the vitamins I bought for $20 aren't working?

2:00 p.m.: I get out of bed... ouch. Head still hurts.

5:00 p.m.: I drive into the city by myself for the first time. This means I pump gas for the first time. But I can't get the gas to pump and have to ask the guy inside to come out and help, and he tells me I have to press some lever to make the pump work. Score: Gas station - 1, me - 0. Typical. I drive into the city extremely afraid of getting carjacked, because my mother and aunt have convinced me that Cermak Ave. is no place for a single lady to be driving alone; this despite the fact that we all grew up walking and driving down Cermak Ave. and many other places that are "not safe for single ladies," and that I take the el through the same neighborhoods every day. Sheesh.

9:00 p.m.: I drive home on the expressway from the city (woo-hoo!) but I take my brother with me in case I get carjacked on the expressway. (Seriously, what is wrong with me!? I go EVERYWHERE by myself on the train.) We watch the Cubs lose. Boo.

Sunday
12:00 p.m.: I wake up and watch the Bears kill the Lions. FINALLY, some good sports news. Also, I learn how to poach an egg and successfully make breakfast instead of eating out at a diner. That's saving some pennies!

2:00 p.m.: We go to Whole Foods for corn dogs and end up spending $150 on groceries. We also spend nearly $40 at Blockbuster on TV series for B - he's having surgery tomorrow and will be on the couch for about a week. I pick up two prescriptions, which total $60 and swipe my credit card in dismay as I realize that this will be a monthly cost for me. Stupid dry eyes.

5:00 p.m.: Still tired, having spent loads of money today, I have the incredible urge to shop. It's fall and I want new pants and sweaters, a new bag for work and new shoes to wear during my daily commute. I blog instead. Hopefully the urge will pass.

What'd you do this week?

Time to Remember What Money Can't Buy

2008-09-28T13:24:00.002-05:00

In this time of financial worry, maybe it's worth remembering some of the joys money can't buy. Here are mine.

The simple beauty of sitting outside, surrounded by nature

My friends' ability to cheer me up any time, no fancy dress or flashy night out required

The comforting warmth of a phone call from my parents

Music that speaks to my soul

Hugs

That first moment of unbridled joy when you see someone you've missed terribly

The energetic feeling that rushes through my body right before a race begins

The luxury of sleeping in my own bed after a grueling business trip

Love

The smell of home-baked cookies

What simple pleasures help to ground you when the news is totally crazy?

Saw this one coming: WaMu (my bank) goes down in flames

2008-09-26T09:36:00.004-05:00

Less than five years since opening my accounts with WaMu, the bank is no more. Here's the message I got when I visited WaMu today:

WaMu Customers, Welcome to JPMorgan Chase!

We're proud to welcome you to one of the nation's largest banks; as of September 25, 2008, JPMorgan Chase & Co. has acquired the deposits, loans, and branches of Washington Mutual. Your deposits remain insured by the FDIC and are now also backed by the strength and security of JPMorgan Chase. Our combined company will offer superior banking convenience - over 5,400 branches and 14,000 ATMs in 23 states.

You can read the rest of the "Welcome to Chase" statement here.

Who knows if this is a good thing for the WaMu customers or a bad thing. I really liked banking with WaMu and always thought they had good customer service. When I heard that things weren't looking good (several months ago), I kept my money in WaMu because I use EFT and direct deposit for the vast majority of my bills, and am basically too busy/lazy to go through the hassle of canceling and changing all my account information.

So now we'll see what happens. I took out cash last week after Lehman Bros. collapsed, not a ton, just enough for a week, because I figured that WaMu would be sold soon and I wanted to make sure I had some funds to get me through any transfer period. I wonder if I'll have to buy all new checks, get hit with new fees, etc.

The good news is that all my money at WaMu was FDIC insured, so I still have what little I keep in my checking and emergency funds.

Just another day on the financial roller coaster, I guess...

Common Cents Contest Winners!

2008-09-25T03:00:00.001-05:00

Thanks to all my girls who entered the book giveaway. You guys are talented, insightful and inspiring women. And readers Michelle, Rachel (aka Little Miss Moneybags) and Kimberly are receiving free copies of “Common Cents: How the Economy Really Works” by economist Nancy Kimelman. Congratulations!

Here are the winning entries:

Michelle
I'm a budgeting babe because I am proof that people can change!! In college, I was so bad at managing my money that my checking account balance was often negative. My most apprehensive moments were not final exams or paper presentations - they were standing in line at the supermarket checkout, urgently hoping, willing, praying that my debit card wouldn't be rejected due to insufficient funds. Getting a job and a steady flow of income after college didn't change my money management habits - in two months, I blew a $5,000 signing bonus on clothes and restaurants. Then, when I was 23 I read a book* about personal finance and had an epiphany: I needed to take charge of my finances or I would never be able to get what I wanted out of life! Now, I can happily say that I home-owning, 401(K) contributing, Roth-max-outing, spending less than I'm making, credit card debt free... BUDGETING BABE!

Rachel
I am a budgeting babe because there's no other way to be! A budget gives me the freedom to live life for today AND tomorrow. Rather than wondering where my money goes, I can tell it what to do. I'm not worried in today's economy, because I already know that I'm living in a way I can afford--and there's no vacation like a cash vacation, baby!

And the runner-up
Kimberly
I am a budgeting babe because that is the only way I have any control in my life. I may not always be on target but I think half the battle is being flexible for what life throws at you…… And it always does. I am a 40-year-old woman with a part time job and a full time 15-year-old daughter and back at school to get my degree and change my life. So that makes me a babe who is budgeting time, money, energy, patience, and peace…… hopefully at some point I can add in some romance. My girl has the desire and imagination to go to medical school and as her support team (me) I need a better grasp on what’s happening in the world, economy at home, and how to keep food in the fridge.

Feel free to read the rest of the excellent entries, too.

Erin
I'm a budgeting babe because I love to find new and better ways to wring more value out of fewer dollars! I live by myself and pay my own expenses (including rent), but my frugal tendencies make room in my $1,000 monthly budget for nights out on the town, movies, date night and more.

Jennifer
I am a budgeting babe because I have to be. I live in New York City , one of the most expensive places to be. I’m not married and have no help. I’m not an investment banker and am not rich. I’m tired of being forever in debt and living paycheck to paycheck. I get a thrill out of saving, finding a bargain or getting a discount. The more I can cut back and not be wasteful without drastically altering my lifestyle, the more satisfied I feel with myself and existence.

Simika
I am a budgeting babe because .... I am an expert at resisting iPhones, Jimmy Choo shoes, Longchamp bags and Chanel dresses. It helps that I don't earn insane amounts of money (but hey, I'm still optimistic!). In the meantime, I spend most of my time figuring out how to reconcile my expensive tastes/lifestyle choices with my financial goals and after-tax earnings. I'm an economist by training,and I value companies for a living, so you wouldn't think it would be so hard. But while I am excellent at dissuading others from making rash financial decisions, and at discussing ad nauseum how the rural-urban income disparity gap varies across regions, my inner Diva struggles on a daily basis to maintain that same level of objectivity when it comes to my own life :) I can rationalize almost every financial decision! The good news is I am credit card debt free, I do well on most shopping expeditions and am well on my way to live the lifestyle I want without having to beg, borrow and steal to do it! :) Now, that makes me one awesome Budgeting Babe ;-)

Crystal
I am a budgeting babe because about a year ago I took a good hard look at myself and realized that I was a Closet Debt-Drowner, feeling overwhelmed and ashamed by my financial situation which consisted of a huge negative net worth due to massive college debt (student loans/credit cards) that never seemed to get any better. I'm in my late 20's now and I decided that it was time to turn that all around so I made a plan and, in sticking to it, I will be free of credit card debt by the end of the year and have a fully funded 6 month emergency fund by April 2009. Eventually I want to free myself from all debt, build a substantial savings and retire when I'm 45 to a cattle ranch in Montana with my fiancé (soon to be husband) and never answer to anyone else again; be they boss, coworker, credit card company, or debt collector.

Shannon
As my younger brother put it, 'For as much money as I think she makes, why does she watch her money so closely?' And this to me, is a question that, in these times, shouldn't be asked. One, I have a mortgage and I am the only source of support; two, I have a car payment; three, what's the harm in clipping coupons and walking to work, if it saves me money to eventually get to go on a simple vacation someday; and four, while on the surface it may look like I take home a decent paycheck, I actually immediately deposit at least 10% into my two IRAs.
Especially with the economic times we, as Americans, are in right now, it's almost silly not to be frugal. The big worry that hangs over my head is, what do all of the bailouts in Washington mean to me? A girl who doesn't have even close to 100,000+ in a bank (I'm lucky if I get to $500), a girl who is trying to save like mad, but sees the shares that she's bought decrease immensely in value. Should I worry or relax. Share a bottle of wine at home or go out on the town? Help!

Jen
I am a budgeting babe because I am a gardener in Canada (aka seasonal labourer), but I still travelled to London, Paris and New York this year. I didn't go into debt to travel, and I still have a healthy emergency and retirement fund on the go. I'm only three paycheques away from being consumer debt free forever. I'm 29 years old, and I have wasted so much money in my life that I don't even like to think about it, but over the last year I have worked hard to learn about personal finance and develop goals. It took a lot of time, error and effort, but now I am now earning, spending, and saving my money on my own terms. It is such a liberating feeling :)

My thoughts on the economic mess

2008-09-24T20:41:00.003-05:00

Thanks for sharing your thoughts on the economic situation. Here are a few of mine. I'm weary to share because I really feel like I'm wading in dangerous waters here, but I think dialog is really important, too. Here it goes...

INFORMATION GAP: From what I understand, bad mortgages and foreclosures are at the heart of the current financial crisis. I read yesterday's explanation of the $700 billion bailout in the Wall Street Journal and found one vague paragraph saying the package would extend to housing. If bad mortgages are to blame, why does it sound like the package is so light on homeowner help? Even if the lending companies get money to stay afloat, won't there still be millions of people who can't afford their mortgages? If you have a link with the answer, share it here.

ONE MORE QUESTION: On the other hand, if we give the homeowners money to keep their houses, won't housing prices stay inflated? Isn't that bad for the economy, too? The next generation of people will just have to borrow more to buy homes, and what happens when government support runs out? More foreclosures?

TALES FROM THE FRONT: My cousin was in the midst of selling her house - the movers were supposed to come this weekend - when the buyer's financing fell apart. Because they couldn't afford to pay two mortgages, she and her family couldn't get their new home in Texas (she lives in Illinois now), where her husband's new job is located. I guess that's what they mean when they say the Wall Street Crisis can directly affect Main Street.

CONFUSION, FEAR... How credible are all the politicians who are warning of imminent economic failure if we don't act now? The general impression from Washington, based on Sec. Paulson and Chairman Bernake's congressional appeal, and Bush's speech, is that if we don't pass the bill, OMG WE WILL ALL LOSE OUR JOBS TOMORROW AND THE US WILL GO DOWN IN FLAMES!!! Is that really where we are? Cuz I just heard some billionaire on 20/20 complaining that "the hardest thing he ever had to do" was give up his private jet due to the crisis. Come on guys, give it to us straight. Are we all about to lose our jobs and homes, or are a few billionaires about to lose their personal jets and one piece of property? I'm getting mixed messages. One politician says the entire economy is on the brink and that no cash is flowing, and the next minute Warren Buffet's throwing millions of dollars into investments as a sign of faith.

I HAVE TO ASK: Investments in the US are all about risk and reward, right? I mean, that's why people risk SO MUCH -- because the rewards are so great. Investment profiles and 401ks are based on "risk tolerance" or "risk aversion." Anybody who visits Vegas knows you can't win big unless you bet big. But now, essentially what we're saying is, "Go ahead, take huge risks. Bet ALL your money on red! If it doesn't work out, we'll still help you!" How do I get a sweet piece of that deal? ...Stupid me! I could have been betting big this whole time!

Seriously, though, shouldn't companies be allowed to fail because they made bad bets? I know, I know... these companies can't fail because too many people are invested in them and then we'd all lose our jobs.

CONFLICTED? YES!... If you're watching the news, you've no doubt heard the contradiction, "Bailouts are bad ... people made bad decisions and they have to pay!" "Bailouts are good ... companies made bad decisions and they need help or else we're all going down!" Huh?

MY 401K... I have not looked at it in two weeks. Thank god I don't need it for a while.

Something tells me I'm out of my league here, so I'm going to leave the economic discussions to the economists and resort to just reading about it. I'm swimming in the deep end without water wings, so now it's time for me to go back to the kiddie pool, into safer, more familiar territory: budgeting and saving. I think a lot more people may be looking for real-world advice on those topics soon!

Question of the Day

2008-09-23T12:46:00.004-05:00

How are you guys feeling about the economy? Scared? Confused? Confident?
Do you feel like you know enough to keep up with what's going on? I'm interested in your opinions, o' faithful readers.

I hit the wall... literally.

2008-09-20T11:17:00.003-05:00

Well, it had to happen: I had my first car accident. Almost. It wasn't with another car or anything. More like me vs. the wall. You see, our apartment's parking lot is tight...really tight. I was creeping around a corner, foot on the break, maneuvering to avoid several parked cars and some garbage cans, when... POW!... the passenger side door hit the corner of the building and SCRRRAAAAPE!... the sound of bricks scraping paint off the door filled the air.

It happened last night, and it's B's car, so I feel terrible! There are dents in the door and a few 8-inch wide scratches (deep ones) in the paint. He cares for the car pretty meticulously, and although he said, "It's OK, accidents happen," when we talked about it, I'm still upset. I insist on fixing the door, but B says it will cost more than it's worth... he estimates it will cost between $800-$1,500 to fix ...on a 10-year-old Mitsubishi Eclipse. He says there are better things to spend my money on.

From my perspective, yes, it's a lot of money, but you don't ruin someone else's car and then just leave it that way. Sure, it could have happened in a parking lot or parked on the street, but the point is that I did it. No amount of fresh paint can cover up that guilty feeling.

Free Book Giveaway for the Best Budgeting Babe (or Boy)!

2008-09-17T21:31:00.005-05:00

As my Facebook friends can tell, I read tons of books. But besides my Econ 101 text book and "Freakonomics," I haven't indulged in much written by economists. This may explain why the latest financial news makes me want to hide in my closet. Truth be told, like many of you, I don't fully understand how America's complex economy works. I'm beyond, "Why don't they just print more money?" but can't quite grasp, "Oh, don't worry about that; the market will correct itself."

Now, just as my lack of understanding is hampering my ability to read today's newspapers, an economist (Nancy Kimelman, Ph.D.) has offered me a copy of her book, "Common Cents: How the Economy Really Works, from the Global Market to the Supermarket," to review. The back cover reads, "Ever feel adrift in a stormy sea of economic uncertainty?" Um, yes. And from what I can tell at first glance, the book provides a pretty straightforward and snappy explanation that's much easier to digest than my Econ 101 book. How cool.

Even cooler: As I'm absorbing her nifty knowledge, I've got two free copies to give away to some loyal Budgeting Babe readers.... read on to learn how to enter to win!
...
RULES/ENTRIES
To enter the contest, just send an e-mail to budgetingbabe@yahoo.com with your name, return e-mail address and answer to the question below no later than 6:00 p.m. CDT on Sunday, Sept. 21, 2008. There are 2 winners, and I will not accept late entries.

Here's the entry question:

"I am a budgeting babe/boy because ____________________________________."

Answers should be one paragraph or less.

JUDGING
The best answer, judged by my own completely subjective opinion, wins. I'll be looking for originality, ability to inspire and Budgeting Babe values.

WINNER NOTIFICATION
I'll send you an e-mail back asking for your mailing address if you win. Also, if you don't win, I can't answer why you didn't. Why? It's just how I roll. (Don't enter if you don't like the rules.)

I can't wait to see what y'all come up with.

Wow. Money crisis rocks the news... And totally spooks me

2008-09-14T21:42:00.006-05:00

We need to be serious tonight. Though we are budgeting babes and boys, the years have largely been good to us. We have built a solid financial foundation via paying down debt and funneling money into savings, and we have managed to enjoy the last few years thanks to our blossoming social circles, job promotions and higher net worth. Despite a few setbacks, our financial plans have been right on track.

But tonight, as I'm reading the Wall Street Journal and the New York Times, watching CNBC, I'm not so sure about those financial plans. Earlier today I was riding my bike around Chicago's flooded suburbs, making mental notes about which homes I thought I could afford to buy ... it seemed so many of them were for sale. I thought the fact that so many homes are on the market would work well for me, a potential first-time buyer with cash, and I vowed to sign up for a first-time home buyers' seminar in hopes that my current rental lease, up in April, would be my last.

It was a happy, carefree plan, but doubts lingered about my timing. And now, after reading the latest financial news - and if you haven't yet, you should really get your a$$ over to the financial pages - I'm thinking it's probably better for me to have cash in the bank for a while longer instead of dumping all my cash into real estate at the first available moment.

Why? Well, the idea behind buying when the market's down is that you hope it will pick back up soon. But with major banks and lenders closing their doors and huge corporations asking for bailouts, where are the signs that the market will pick back up? All I'm hearing from those billion-dollar men, those who created the models that run the financial systems and those that regulate them, is "we don't know." And that totally scares me.

"What's the big deal?" you might be asking. Am I trying to flip a house? No. But given the industries in which B and I work, right about now, neither one of those jobs is as secure as, say, a nurse's or fire fighter's job might be. So picking up a 30-year mortgage probably isn't the best way to go. Yes, interest rates are low (and according to tv analysts, may be lowered again soon), but it wouldn't be wise to sign up for 30 years of payments if you're not totally sure of your ability to pay them.

Are the TV analysts the only reason I've started thinking this way? No. While the front-page stories haven't yet really affected me directly (as in, my day-to-day life hasn't changed), it seems a lot of other people are affected. Several of my young, capable friends are out of jobs. I know a lot of young couples hoping to "trade up" who can't sell their condos. Gas is still crazy expensive (really high today due to Ike), and credit is harder to come by. For those nearing retirement, 401Ks are a nightmare right now. Is America in for a major lifestyle change?

Well, if you've been living below your means for a while now, and you have a good savings cushion, I suspect that you'll have an easier time dealing with all this. I can't tell you whether we're in for a major change - that's what the big news outlets are for. I'll just say that on the ground, things are looking very scary right now.

Good luck to everybody on Monday; I hope we all come out top. ... Hopefully this was an overly panicked post, and come tomorrow morning I'll be laughing about how I was so spooked over nothing. But if not, be cautious, be smart and read the signs ... and the paper.

Pet problems: Cat diagnosis

2008-09-12T23:34:00.005-05:00

Owning a pet can do a lot of great things for a gal. There's the fabulous companionship, the rewarding feeling that you're actually, you know, taking care of something that's alive and well, and all the doggie ladies know that a cool dog can serve as the perfect conversation piece. But there's a downside to pet ownership that's more significant than just cleaning the litterbox or having to go home early for a late-night walk: the cost it takes to actually have a pet.

Those of you who read often know that I currently have two pets: a cat, Nala, and a turtle, Betsy (after designer Betsy Johnson... I was really into pink clothes for a while). I sort of inherited the beast of a turtle while in college, but sweet Nala's all mine. She sleeps with me at night, wakes me up for work in the morning and always lets me know she's around - whether with a loud, comical purr or a loud, significantly less comical MEOW. A beautiful little calico, Nala was a shelter cat when we got her; we've had her for five great years (she's 10 now).

Recently I started noticing Nala was drinking way more, using her litterbox way more and just acting out of sorts. We took her to the vet on Saturday. On Monday, after more than $250 worth of testing, the vet dropped the bomb: Nala has diabetes.

$60 more to confirm the prognosis, and here we are. It's Friday night, and B and I are at home, staring at prescriptions for insulin and syringes, talking about expensive special food and testing equipment, and our schedules. How will we manage to give her two shots per day, 12 hours apart? How much will this cost? How did ths happen? Where do we go from here?

Pet ownership is a challenge, and one that's easy to categorize as fun or a test of responsibility for future parents. Celebrities often tote pets around red carpets in handbags, like the latest accessory (see Britney, Paris). But the reality is, these are living things that need care and require time and commitment. Nala's diagnosis is good reminder of that.

We're going to try to regulate the diabetes, but I'm pretty sure it will not be fun. Luckily for me there are a host of free resources online to help navigate the process. If only the treatment was free, too.

Trouble Consolidating Sallie Mae Loans, Part 2: I talk to Sallie Mae

2008-09-07T20:00:00.003-05:00

I feel for recent grads reeling from student loan sticker shock. After all, I'm still in repayment, more than seven years after graduation, for all the courses, parties, bad food, cramped dorm rooms and heavy books that gave me the sweetest - and shortest - four years of my life. So when my newly minted cousin called me in tears looking for advice about loan repayment and consolidation, I gladly offered to help -- only to find that the student loan landscape had drastically changed over the past five to 10 years and that my knowledge was a little rusty.

My cousin needed advice about consolidating private loans from Sallie Mae (which is not a government lender). Unable to give her much direction, I contacted the company directly and was able to correspond with Martha Holler, vice president of corporate communications at Sallie Mae.

Martha told me that private loans, even those called "student loans" or "education loans," were never available to be consolidated through the government. If you have a student loan through Sallie Mae, and it's a private loan, you will have to go through another lender to consolidate your loans. However, consolidation may not always be the best option for you if a lower interest rate isn't available, and it's important for you to note that consolidated private loans don't always carry fixed rates (like consolidated government loans do).

She also told me that government loans (Stafford or PLUS loans) are still available for consolidation under the Federal Direct Consolidation Loan Program. However, Federal loan consolidation is no longer the "no brainer" that it used to be, because new Stafford and PLUS loans carry a fixed interest rate (it used to be variable) so consolidation is no longer necessary to "lock" a rate.

The bottom line here is that it's important for parents and students to really understand the terms and conditions of any loans when signing on the dotted line. It's difficult for 17-year-olds to comprehend what they're getting into, and harder still for parents to keep up when the loan environment seems like it changes daily. Planning ahead is key, so whether you're saving for your child's college fund, taking out loans now or just starting your payments, don't try to just "go with the flow" in hopes that you'll always come out on top. Be an information sponge, and stay on top of your finances and loans. Only then can you (or your daughter) become the fierce, fabulous and ferocious diva that college degree entitles you to be.

For those of you interested, here is Martha's complete response to my e-mail. There's a lot of good information here for those in repayment. (And for those of you still planning for college, it happens to be National College Savings Month... visit www.CollegeAnswer.com/savings or www.upromise.com to learn about long-term savings options.)

********************
FROM: Martha Holler
DATE: Wednesday, Sept. 3, 2008
SUBJECT: Sallie Mae Follow-Up

Nicole,

Significant legislative cuts that went into effect on Oct. 1, 2007 created an environment in which federal loan consolidation generated a negative return for lenders. Many lenders stopped consolidating loans - either leaving the business altogether or suspending their participation n the federal consolidation loan program because the program was no longer economically viable. Sallie Mae was among them, announcing in April our decision to suspend participation in the federal consolidation loan program so that we could direct more of our resources to students entering school.

Those who wish to consolidate their federally guaranteed student loans may still do so. While there are virtually no lenders who still participate in the federal consolidation loan program (see this link that amalgamates lenders' program participation changes), the U.S. Department of Education can and will consolidate your student loans under its Federal Direct Consolidation Loan Program.

A few other points for consideration: Federal loan consolidation is not the "no brainer" that it used to be. New Stafford and PLUS loans carry a fixed interest rate and so consolidation is no longer necessary to "lock" a rate.
In addition, there are several other repayment options available (extended repayment among them, which allows you to extend your term to 25 years) to help you manage your monthly payment amount. Remember, anytime you extend your repayment term beyond the standard 10-year period (whether by consolidating your loans or by selecting an extended repayment option), you will pay more over the life of the loan. So, I encourage consumers to ask themselves what they are hoping to achieve? Lower monthly payment amount? Single bill? Would a temporary break from making payments suffice? If so, another option (such as a deferment or a forbearance, both authorized periods of time - usually 6 month increments - when you don't need to make payments on your loan) may be a better bet. Then you can get on with successful repayment of your loans.

While it's not quite as simple as saying "pick the amount you'd like to repay each month," student loan repayment does have a number of flexible options - you can pay interest only, a percentage of your monthly income, you can extend your repayment term, you can stop making payments altogether for a short period of time. Consolidation was a popular option about 5 years ago when student loans carried variable interest rates that happened to approach 40-year lows - because it allowed you to lock a low rate. But much has changed since then to make it less attractive (new student loans already carry fixed interest rates), so I must highlight that it is not the only option available to help you manage the repayment of your loans.

Now, with regard to private loans - those are the consumer loans that students typically take out to cover any remaining financial need after federal student loans have been exhausted: these loans never were eligible for federal loan consolidation because Congress limited loan eligibility to federal student loans only (Perkins loans, Stafford loans and PLUS loans, primarily).

It was possible to consolidate private loans - essentially a refinancing into another consumer "education" loan that would allow you to extend your repayment term and (possibly) lower your interest rate. In most cases (I can't speak for other lenders, but I can speak for Sallie Mae), private consolidation loans carried a variable interest rate (note the difference from the fixed interest rate on the federal consolidation loan program). Again, repayment options existed to allow you to extend repayment of your private loans - so I would ask someone who wants to consolidate their private loans what they are looking to achieve? Lower monthly payment amount? Lower interest rate? A single bill for all of their loans?

If the rationale is purely rate related, then they could refinance into another consumer loan, although we always counsel customers to read the fine print and fully understand what the interest rate would be, how it could change over the life of the loan, whether there is a prepayment penalty, etc.

If it is monthly payment amount related, well, you don't need to consolidate to achieve that goal. And you can always ask your lender to send you a single bill for all of your loans with them so that you only have one check to write each month.

######

Martha Holler began her career with Sallie Mae in 1996. In her current role as vice president of corporate communications and officer of the company, Holler serves as Sallie Mae’s media spokesperson on a range of corporate and consumer topics, including the company’s core business of saving, planning and paying for college. In addition, she directs communications to business-to-business and other external audiences. The corporate communications department produces executive speeches and corporate publications, including the Annual Report. Prior to this position, Holler helped analyze merger and acquisition opportunities as a member of Sallie Mae’s business development unit.

Labor Day Finance Articles - Read All About Personal Finance!

2008-09-01T23:24:00.003-05:00

The new Carnival of Personal Finance is up at One Caveman's Financial Journey, and this week's includes the Sallie Mae articles by yours truly. For those of you who haven't polished your PF (that's personal finance) glossary yet, it's basically a magazine written by real people on all topics related to personal finance: career, investments, debt, credit, budgeting, etc.

The Carnivals are great, because if you're used to just reading my blog, it introduces you to a whole new world of writers with different points of view. When I hosted it in July, I noticed that while a lot of women writers focus on budgeting and saving, almost all the writers talking about investments were men. If you're ready to branch out and learn more about the world of personal finance, the Carnival is a great place to start.

Kudos to One Caveman for a really nice layout. I know it's a TON of work to host these things, and to put such a delicious design on top of the editing is simply phenomenal!

Trouble Consolidating Sallie Mae Loans, Part 1

2008-08-30T15:50:00.004-05:00

A few weeks ago, my super talented, creative and beautiful cousin, K, 23, called me in tears. She just graduated from the Harrington Institute of Design in Chicago, and like most of us, was blown away by the cost of her monthly payments on her loans.

She went to see her family's banker to find out how to lower her monthly payment - which, by the way, was the cost of a mortgage. The banker, likely unaware of what it actually costs to go to college these days, chastised K for spending too much on her education and taking out too many loans. She basically said, "Good luck. There's nothing I can do."

K felt totally taken aback, helpless and frustrated. Nothing she had done throughout her long education had prepared her for this. Her parents, though upset, had no answers. And so, on a random Wednesday morning, I received a frantic call from K, pleading to meet with me and learn more about how to consolidate loans.

I directed her to this site, to my consolidation post. I told her that a lot of people have a similar debt upon earning a master's degree, and that many of my friends in similar situations had consolidated their loans for lower monthly payments. I encouraged her to look into consolidation options.

But in later conversations, we hit a bump in the road. K had taken out her loans through Sallie Mae. She thought that meant they were government loans when she took them out. (Like many, she thought "student loans" automatically meant they were borrowed from the government.) But it turns out, they're through a private bank. The interest rates are much higher than they should be, but she wasn't sure if she could consolidate them through the government Web site, which appeared to be only for government loans. What's a girl to do?

I consulted my bookshelf, but all the books I found only talked about government loans. Most of my friends my age had government loans, but as I spoke with our younger interns and my brothers, I realized something had changed in recent years. Everybody has Sallie Mae loans now. But I got the sense that nobody really knew why they had them, and that the borrowers thought they had government loans.

So, what is Sallie Mae? Are Sallie Mae loans government loans?

Sallie Mae was originally created as The Student Loan Marketing Association in 1972 as a "government sponsored entity." According to its Web site, it began privatizing operations in 1997, and in 2004 "terminated its ties to the federal government." It is now a publicly traded, for-profit company, and is the leading provider of student loans and administrator of college savings plans. It currently owns or manages loans for 10 million people in the US.

Got that? It's a private company that lends money to 10 million people, NOT a government entity.

Interestingly, I visited the consolidation portion of the Sallie Mae site today, and got this message:

"Thank you for your interest in Sallie Mae, the nation’s leading provider of saving- and paying-for-college programs. Severe legislative cuts made by Congress made federal student loan consolidation uneconomical. This, combined with the credit market deterioration, has caused us to suspend participation in the federal consolidation loan program."

And below some corporate babble about the mission of the company, this:

"Sallie Mae reserves the right to modify or discontinue loan programs at any time without notice."

I went on the student loan site, where I consolidated my loan, and found nothing about Sallie Mae loans. Only a list of what is an "eligible" loan (mostly looked like Direct Loans, Stafford Loans, etc.) and what is "ineligible," including private loans.

So how do we make sense of this all? I'm no expert, and truth be told, I found most of the information online to be very confusing and hard to navigate. This was the closest article I found:

From SmartMoney, April 2008
Sallie Mae Halts Student Loan Consolidation
...As a result, borrowers will have to pay the price. Former students who want to consolidate their loans can now only turn to the government and a small pool of lenders.

Read the whole article here: SmartMoney

I'm going to do some more digging, and certainly if you have more information, post it here. For the time being, my brother, who used to work at a bank, advised my cousin K to look into Chase Bank's Private Student Loan Consolidation options. He has a similar amount of debt, but consolidated all his loans through Chase and they are roughly $600 to $1,000 cheaper per month than hers were expected to be through Sallie Mae.

For those of you wading through the student loan waters, check out www.FinAid.org to learn more. For me, the student loan process was easy, but talking with K and others about their trouble has been an eye-opening experience.

The Bills Keep Rollin' In

2008-08-26T21:52:00.002-05:00

Riding home from work on the train, simultaneously wolfing down a burrito fresco from Taco Bell, finishing up my work and blogging, and suddenly half the burrito is in my dry-clean-only, multitasking lap. Great. I am currently in the midst of a vacation hangover of the "Did I pay my credit card/student loan/phone bill?" variety. The bliss that results from a week outdoors is gone, the tan has faded and reality sets in. This is my life.

I've been ignoring my financial life for a full few weeks, freely spending on vacation-related purchases and generally trying to avoid my mailbox/inbox at all costs. But now that I'm back, I have no more excuses. I went through all my mail on Friday and realized that I was severely behind on a few doctor's bills. Luckily, I set up all the rest of my bills to pay automatically when we were gone, but seeing the dent in my wallet from the trip as I was visiting all my cards' Web sites was a wince-worthy experience. You know how when you were little, you watched scary movies with one eye shut and only focused on the bottom corner of the screen? (OK, I still do that.) Well, that was how I felt looking at my "current activity" statements!

I've been ignoring a host of other things too, my inbox isn't the only one. I promised my mom I'd do some research on the benefits of an IRA vs. putting some more money into her 401K and I also need to research how to consolidate Sallie Mae loans for a cousin who got some bad information from her family's banker. I'm hoping to be able to write about both of those.

Plus, I'm so far behind on the news! I haven't posted good articles in forever, nor have I been following my beloved newsprint/newsmagazines/financial web sites. I can only imagine what's taken place in the financial world in the last few weeks: the housing market, gas prices, financial scandals and important statistics about Americans and the economy, I'm sure!

So the point of today's article is this: you can't ignore personal finance for long without feeling totally behind. Nor should you try! It's easy to get caught up in life's bliss or the daily grind (pick your poision), but two reliable facts are that the bills keep coming in, and your financial life never stops.

2008-08-24T15:18:00.005-05:00

We got back from our vacation to Washington state's San Juan Islands and Olympic National Park on Monday and had a fantastic time. Here's a little slideshow I put together with our best pictures. To see the captions with descriptions, just roll your cursor over the pic as it slides by. The pics are also up on my Facebook page.

We've been dreaming of this trip for the last few years, but in reality the planning became a last-minute affair. As you guys know, we were waiting for airline prices to come down - three months ago, the cost to fly into Seattle was more than $700, the same as a flight to Costa Rica! We couldn't justify spending $300 more per ticket than estimated, so we kept a back-up trip to the Apostle Islands, WI, ready to be planned. But in mid-July, ticket prices to Seattle came down to about $400 per ticket (on Southwest) and we booked flights.

At that point, we didn't realize how expensive lodging would be for last-minute booking. We usually travel in the shoulder season, when you can get hotel rooms for just about anywhere on the west coast for around $100/night, but given B's law school schedule we had to travel in August -- peak season -- and ended up paying between $100 and $200 per night for rooms per night. I know we could have found cheaper places, but I travel so much for work that the thought of spending my vacation time in a shabby motel room wasn't appealing at all.

Our itinerary for the trip put more than 900 miles on the rental car, and allowed us to see some of the most beautiful and diverse scenery on the west coast - we visited mountains, islands, rain forests, beaches, trails and parks. We traveled by air, by car and by ferry to hike, kayak and relax. We spent time in Seattle, Renton, Mount Vernon, Anacortes, San Juan Island, Orcas Island, Lopez Island, Port Angeles, Olympic National Park, La Push and Neah Bay. We were happily exhausted by the end of it - as usual we did too much with our free time - but were able to rest assured knowing that our hard-earned money and vacation time were well spent.

For a general idea of how much our trip cost, I've posted some of the expenses below. Remember that everything was split by two, so I paid about half of what is listed here, and that this is peak season. If you're planning a trip out there and can go in late-Sept or October, you can probably save hundreds of dollars. This was one of our more expensive trips, and I don't know that we'd do it exactly the same, but for what it's worth, here's the breakdown:

Airfare (2 people): $922

Lodging (8 nights): $1,273.70 (averages out to $159-ish per night)

Car (7 days, plus a pre-bought tank of gas): $276.30 (we had a $300 gift certificate on top of this)

Food: This is kind of hard to gauge. Our breakfast was included with most of our hotels, so I'll exclude those costs and factor those in with lodging. We also did a lot of grocery shopping for snacks, drinks, beer, wine, etc., to keep at our B&Bs/hotel rooms. We generally got sandwiches to-go from delis and grocery stores along the way and ate on hikes, in the car or on the ferry, so I'd say lunch was about $20/day for both of us. Dinner probably averaged out to around $50/meal, including drinks, but there were a few fast-food nights because by the time we got back from our trips to Olympic Park, most of the food places in Port Angeles were closed. So I'd say $20/day for lunch and $50/day for dinner, which averages out to $560 for 8 days on the trip.

I also had some incidental costs: I spent about $177 on gear for the trip (shoes, binoculars, sunglasses), and about $150 on art and gifts while we were there (I'm becoming a big fan of native american art).

Then, a few additional costs: I think we spent about $60 for the Ferry (multiple trips), several additional tanks of gas, we definitely stopped for drinks at brewpubs is many towns and we spent about $200 to kayak for two days (one was a very expensive guided tour, the other was a very cheap kayak rental with no guide).

I recognize that this is not a trip everyone can afford to take, and that we were blessed to be able to afford the getaway this year. Neither B nor I had the luxury of taking these kinds of trips growing up... for me, part of a family of six, there were too many of us to frequently travel cross country and incur the expenses that come with it. But I was lucky to have parents who gave me the gifts of appreciation for the outdoors, a sense of adventure and a zest for life learned during an action-packed childhood of midwest road trips, local camping weekends, visits to family in neighboring states and infrequent trips with aunts, uncles and cousins to then exotic and far-away states, including Florida, Idaho and California.

For us, there's something special about getting away from our familiar city-centric lives, away from the daily grind, into the fresh air and open spaces of the outdoors. We value the experiences spent in these magical windswept places of wild beauty, and keep them in our memories to fuel our daily lives. Who knows if we'll stay in Chicago forever; our hearts are definitely in the west, but our extended families and jobs are here, as is B's education. Therefore, we're here for at least the next four of five years. So for now, we'll keep our experiences as pictures in our mind as we close out the Summer and move into a busy Fall.

I hope your summer vacations were as good as all mine were (Houston, Nevada, Michigan, Lake Geneva and Washington), and I hope you've enjoyed reading about my summer travel adventures. Send me links to your pictures and trips so we can all start planning our ideas for next summer!

On vacation

2008-08-09T16:24:00.000-05:00

We've geared up at REI, booked budget b&b's all on the pacific coast, arranged for a housesitter (B's mom) and spent the last week working insane hours and making preparations at home, and right now we're driving out of Seattle, rocking out to Pearl Jam, making our way to the San Juan islands for a week of rest, biking, kayaking and enjoying the great outdoors. ">This is why I work the way I do. This is living. Enjoy your week, and I'll post when I'm back to the grind.

Relationships and Finance - What a Hot Combo

2008-08-03T22:30:00.004-05:00

During this hottest week of summer, an anonymous reader asks a steamy question about relationships:

"How do you and your boyfriend handle finances? I am in a relationship and I am pretty frugal and I enjoy working on finances. This can be pretty tricky in a relationship and I was interested to know how you balance that."

OK, I lied. Her question was not steamy in the traditional risque sense ... but have you ever gotten into a fight about finances? (Read that one, it's worth it.) Finance fights are the hottest it will ever get in your relationship (outside of the bedroom). Tempers flare, spending habits collide and the strongest of couples can feel like they're living life in a pressure cooker of expectations.
So while I usually try not to pull B too much into my writing at his request (hee-hee, at least I tell him that), I'm willing to take this question for the frugal Ms. Anon. You should know that what works for me most certainly won't work for everyone else, but since a lot of us are living in the crazy co-habitating space and our parents didn't, I suppose it's important for me to share.

Before I get into the nitty gritty of our finances, I want to share my perspective on living together. I know too many people for whom it has not worked, and trust me, it's messy when it doesn't. Unless you are truly comfortable with yourself, and have shown that you can live on your own with and without roommates, you should probably think twice before moving in without a committment. If your relationship is new, think twice. If you're moving in because you have no where else to live, or it's more convenient or just because it's cheaper, think twice. These might be signs that you're not ready to move in together, or that you're taking things too fast. And in your 20's, who wants to go fast? Life right now should be about developing a mature, healthy and happy you. So enjoy it while you can be your most fab.

But for certain situations, living together might be right. And when you live together without being married, the question comes up, how do you manage your finances together, separately?

For us, we think of each other as two equal individuals. We pretty much split everything home-related 50-50, like roommates (think heating, electric, renter's insurance, car insurance). There are a few big line items that we scaled based on income (rent). Since B pays for the car and gas, I cover the groceries (they are about equal). When it comes to miscellaneous trips to the store for random stuff, we take turns paying. The same goes for dining out (though I think B usually ends up paying more often when we eat out).

We do not have a joint checking account or a joint credit account. We do have a joint cell phone plan that we split, but we itemize the charges. We also have a joint gym membership, but that's pretty easy to split charges, too.

We typically go about our business paying the bills we each "own" and then typically two or three times per year, we put everything on a spreadsheet and figure out who owes who money. We should probably do this once per month, but we get too busy and we're usually close to even when we tally up the totals anyway.

Our arrangement works well for a few reasons. First, though we split living expenses, we in no way tie or disposable incomes or savings accounts together. Therefore, if I go off on a spending binge (like I did this weekend), I have no one to answer to but myself. I am responsible for reconciling my own actions for my financial health. It might sound cliche, but it's very empowering to only have to depend on yourself for financial support.

Another benefit to keeping separate finances is that should this relationship not work, I have a solid understanding of where my money comes from and where it goes. There would be no learning curve, no mystery accounts, no questions and no financial mess should we break up. Without a legal commitment, I'm protected from a potentially damaging situation. And while some people might find this unromantic, it's really just pragmatic. Our relationship is based on love, trust and understanding, rather than financial support. Should that change, we could easily consider other options. (Blech. I don't even like writing that.)

Another reason why our arrangement works is because we 're working towards mutual financial goals. Though our current lives aren't legally tied together, we believe at some point they will be. Therefore, we work individually for the best shared future. For instance, my savings are going to a downpayment on a house or condo. B's savings are primarily being used for law school. Both the house and the legal degree will help our shared future. And neither of us feels like we've had to stifle our dreams to achieve the other's.

Finally, B and I have similar backgrounds and similar attitudes about money. I'm not sure whether this makes a difference or not, but I've never felt that buying material stuff was detrimental to my happiness. While B probably is a little more sensitive to being able to provide a future family with a secure and happy life, he's the least material person I know.

All that said ... It just occurred to me that Anon never mentioned that she wanted to move in together. If you're not planning to move in together, I wouldn't recommend combining finances. I would keep all your finances separate, and come to agreements about what you want to spend when you're hanging out together. For instance, if you prefer to be frugal and he's very spendy, that's OK - he'll either have to be spendy without you, or to spend a little more on you. He can't ask you to spend your hard-earned money if you don't want to.

For instance, if he wanted to go to Lollapalooza this weekend but you thought the ticket price was outrageous, he has three options: go with his friends while you listen to CDs at home, pay for your ticket or stay home with you. If I were you, I'd tell him to go enjoy the show with his friends, and I'd plan a cheap-o girls night with friends. (Having separate lives is just as important as separate finances!) This way, if he wants to pick you up a ticket, he can. But you're secure enough with your relationship either way.

You should know that this approach flies in the face of a lot of couples, I think. My friend from India always thought I was "very odd" for wanting to be so financially independent. And many of the American women I know would probably freak if their bf told them he was going to Lolla alone. But my feeling is, if you don't care enough to buy the ticket, you don't really want to go. Why get upset about it?

As long as you both set expectations in advance, communicate about your needs and understand that one of you is a cheap-o and the other is a spendaholic, you'll be able to lay some ground rules in advance to prepare for every situation. I think you should talk about this stuff every step of the way. Who knows... maybe you'll find a happy middle ground somewhere.

... There was another part to the question saying that it might be tricky because Anoyn likes to do finances. Why is that? You will have to explain. I think most guys I know would be happy to have a significant other to discuss finance with. I was at a party two weeks ago and talked at length with friends about stagflation, investing, my finance questions and brokerage accounts. A lively, engaging discussion was enjoyed by all. So stick with your interests! You may becomes the life of the party.

And there you have it. My finance and relationships mini-manifesto. Or, what my friends call "one of Mladic's lectures again" (they secretly love them). I'd love to know your thoughts. All discussion is welcome here!

I promise I'm still alive!

2008-07-30T15:22:00.006-05:00

I promise I'm still alive, just totally swamped with work and vacation planning. This isn't permanent; I'm hoping to put up some new posts soon.

In the meantime, enjoy one of my favorite finance-related video clips ever.

Oh how I love both Kristin Wiig and Suze Orman. This makes me laugh so hard my sides hurt. I actually think I liked the one with Jonah Hill better, but I can't find the video anywhere. Darn.

Best Budget Date Night?

2008-07-21T10:19:00.003-05:00

Alpha Consumer's asking you to share your best budget date night, and she's giving the winner a free book. I know you guys have some great ones, so post them there and then post them back here! When I think of one, I'll submit and share it with you. This could be fun.

Also, while you're there be sure to read a few of the great ideas her readers are posting. Here's a good one:

"Now that it's summertime, the Brooklyn Bridge Park Conservancy has started showing movies under the Brooklyn Bridge on Thursday nights. My boyfriend and I pack some snacks, order a pizza from Grimaldi's for about 20 bucks, and watch a FREE movie outside. Last night we even got to watch some fireworks that were being fired from Governor's Island before the feature, Invasion of the Body Snatchers."

Fireworks, movies, pizza and the Brooklyn Bridge? Love it. I can't wait to hear your thoughts.

Choose Your Own Adventure

2008-07-21T00:42:00.002-05:00

So many things on my mind, so little time to write. Which is the topic you'd most like me to write about next?

1) The fact that I'm noticing more and more of my friends are out of work. Young, smart, talented and totally capable people are being laid off left and right. WTF?

2) How I don't know my credit score and I'm afraid I somehow recently messed it up. Arg! Credit!

3) To brokerage account or not, that is the (potentially) million-dollar question.

Let me know and I'll whip something up faster than you can microwave last night's leftovers.

Quick Carnival Note

2008-07-17T11:24:00.001-05:00

Hey guys, the Carnival is updated to include a few articles that were inadvertedly left out. Please go back and check out the Reviews and Retirement section and make sure to visit our friends!

My Bad Relationship with American

2008-07-16T22:15:00.004-05:00

Lately, I've been feeling stuck in a bad relationship. You know the kind: the more effort you put in and the harder you try to make things work, the worse it gets. The kind where you get nothing in return for your loyalty and sacrafice. The kind where promises always disappoint, and joyfulness turns to bitterness.

That relationship describes the one I have right now with American Airlines (we'll call it Amer). Despite how perfect we seem together -- it's for business travelers, it has great schedules, direct flights and courteous staff -- I know that deep inside, Amer doesn't really care about making this relationship work. He's got too many other things going on to care about little ol' me. He's working late nights, trying to come up with efficiencies to balance the cost of fuel to keep his planes running. He's lobbying congress for lower oil prices and higher subsidies. He's focused on the bottom line. And our relationship is suffering.

In the beginning, Amer was the best. There was a certain glamour to flying together, a cache that came with the ticket. He offered gifts (sure, they were just peanuts, but they meant something) and we went to movies together. When I got cold, he offered me a blanket. When I got tired, he offered me a pillow. We stayed together long enough for me to earn Gold status, and I couldn't have been happier. He even managed to take me on vacation once per year.

Our relationship wasn't always perfect. I admit, I strayed a few times over the years. But those experiences only reinforced how strongly I felt for my superior partner.

But over the past two years, to be blunt, things have been strained. Amer first stopped doing the little things - pillows, blankets, food, movies. I could deal with that if he kept me on time and running efficiently, and especially if I managed to get a free ticket out of the deal, but for two years, due to CRAZY restrictions on travel and changes to the loyalty program, there's been no vacation trip. (Really? Do you think I'm going to take a three-leg, 12 hour flight to San Jose??? Am I worth nothing to you?) Just a cold, online booking interface that frustrates me to no end. And a promise to sock my friends and family with extra baggage charges whenever they bring their trip supplies.

So last weekend, instead of waiting around for Amer to meet me halfway, and after waiting around for months Amer to come to its senses on price or rewards, I did the unthinkable: I applied for a loyalty program with Southwest Airlines, and then I booked two flights on it.

And now, I have a vacation scheduled. For $450 ($300 less than Amer), I'm flying to Seattle in August to enjoy a lovely coastal retreat (my favorite kind). And while I'm not terribly excited to be traveling with a bunch of families on summer vacation, (I'm a travel snob now, what can I say...it's no fun to be around crying babes or rowdy teens when you're on a plane and wound tight. It's just not.), I think there's a lot to like about Southwest.

So Amer, I know we'll be seeing each other around, and probably will even be hanging out sometime soon. But know this: it's not the same. I'm through being that naive girl who waits expectantly for your gifts, only to settle for broken promises. I'm moving on. Southwest may not have your glamour, but it certainly makes up for it in niceness (how's that for a word?) and appeals to my sense of frugality.

Plus, he's offering that vacation flight way easier than you are.
+++++++++++++++++++++++++++++++++++++++++++++++++
(Moral of the story? I FINALLY booked our week-long vacation! More expensive than I wanted -- I was hoping to cash in free miles to cut the flight cost in half -- but less expensive than it's been looking for the past few months. I'll let you know how Southwest's Rapid Rewards program goes. I think more and more of us are going to be flying it lately.)

Carnival of Personal Finance #161: The "Feeling Renewed" Edition

2008-07-14T00:00:00.008-05:00

Happy Monday and welcome to the 161st Carnival of Personal Finance! This week’s theme is renewal, because I’ve been thinking about it a lot lately. It’s been a central focus of my site, “The Budgeting Babe” since I started blogging in 2004 with a little savings, a lot of debt and a weakness for power shopping.

When I developed The Budgeting Babe, I did it knowing that my 20’s were a time for reinvention, the decade when I would officially “grow up” and define who I would eventually become. Today, going on 29, I’m happy to be a financially independent, fiscally fit (most days), free-spirited, fun loving woman. But while I’ve spent all this time reinventing myself in hopes of growing into a mature, financially savvy adult, it never occurred to me this week that rebirth, reinvention and growth never stop.

All around me lately, I see friends and family in the midst of change and fresh starts, most incredibly positive (new jobs, new roles as a mother or farther), yet some negative (foreclosures, layoffs). And in the midst it all, it has occurred to me that life is all about growth and renewal. Just because you’re fiscally fit today can’t predict who or where you’ll be in five years. Picking yourself up after a long slump, or reevaluating yourself to manage life’s changes are key to your ability to succeed financially.

On that note, here are my editor’s picks for the week:

So Sick of Debt announces that she’s DEBT FREE! Kudos! If anyone doubts the power of transformation, read about it here and catch the feeling.

Kim at Alpha Consumer was reading my mind this week. She published a great letter from a reader who lost it all, along with some great advice for starting over.

Amanda at Value for Your Life is deciding whether to reimagine the shape of her dreams.

Twiggers at In Debt Because I Like Nice Things has started a three part series on selling your stuff. Those of you thinking about starting fresh must read her exhaustive and helpful tips for sorting through your past life.

Young Black and Prosperous has hit a new milestone: she’s engaged! And she has the best savings plan ever for affording a wedding. Who cares how long it takes? They’re smart, young and in love.

Benjamin at Trees Full of Money offers planning tips to those expecting a new baby. Sort of a “What to Expect” for the PF community.

Enjoy the editor's picks this week, but don't stop there! Each category listed below features wonderful writing, thought-provoking articles and fabulous financial tips. It's been an absolute pleasure hosting this week and I hope you enjoy the rest of the articles. Read on for more of this week's best of PF blogging.

BUDGETING
My two cents: It's never too late, or too early, to start a budget. If you've been thinking about it, today's the day to start! And here's some inspiration.

The Happy Rock has a pretty good breakdown of his financial hole. It’s interesting to read and compare strategies. I personally was shocked at the cost of day care!

Christine at Blue Jeans Millionaire does a great job of explaining all the factors to consider when choosing a health care plan. Wow, she’s through. And smart.

Pasadena Financial Planner recommends a few budgeting systems for you.

Curt at PennyJobs.com gives us tips for creating a budget.

Bob at Platinum Years Network wonders why we’re so sensitive to some kinds of spending, and so careless about others?

Jason, the Healthcare Economist, reviews a new budget tool.

Brice at Save and Conquer shares some details about corporate budgeting.

CREDIT
Up to your eyeballs in credit card debt? Figure out a plan to pay it back and start living again. For those starting out on their repayment journeys, here are a few great resources.

My Credit Card Blog offers an overview of the best credit reward programs.

Money Blue Book offers an intriguing overview of how credit card numbers are created.

Dana at Not Made of Money breaks out of the credit card loop.

Ask Mr. Credit Card gives his take on why store credit can be a bad idea.

DEBT

Can I Get Rich on a Salary investigates a woman who won’t pay off her debts.

ECONOMY
The news has been bad lately, hasn't it? Our economy is due for a renewal, I think...

Nina at Queercents posts a thought-provoking piece on life in the exurbs.

Tim at Canadian Dream asks: Will high priced oil change the way business works in the future?

Emily at Taking Charge is finding the real world a little scary right now, and notes that consumers are cutting back on spending.

FINANCE

Anthoney at Help My Cash Grow notes that personal finance is all about attitude.

J. Money’s biggest financial vice is…bananas?

JS at Smart Money Daily shares the stories of billionaires.

MoneyMonks asks: Which would you prefer?

FRUGALITY
Lookng to reinvent yourself? Read about those who have discovered the benefits of the frugal life.

Blunt Money wonders if people who say “I have everything I need” ever really mean it.

Funny About Money notes the perks to living a rural lifestyle.

Chief Family Officer writes about coupon problems. Oh how we love to clip and save!

Passive Family Income just got a cashback credit card for gasoline. Interesting concept.

Sallie’s Niece figures she spend $900 on Gyros, and she’s done with ‘em!

Brooke at Dollar Frugal is totally right about obsolescence.

GradGirl finds a good use, and a good cause, for old bridesmaid dresses. Awesome!

Ashley from Wide Open Wallet reviews the inspiring “Go Green, Live Rich.”

Jamie at Cheap Healthy Good gives us three frugal rules she breaks, and three she lives by.

Finance Gets Personal sells some books on Amazon.

Sean at Financial Ramblings gives us a great overview of auto insurance. (I’ll be using this next week, when I buy mine!)

INVESTING
This is where I'd like to grow my knowledge. Maybe the Budgeting Babe will someday become a Dividends Diva!

Kyle at Amateur Asset Allocator asks, “Do stocks get less risky with time?”

The Dividend Guy spends some time reflecting on the fundaments of investing.

BrianMounts.com announces his monthly stock and ETF selections.

Andy at Saving to Invest reminds us to teach kids about investing.

MoneyNing wants us to keep investing, despite the news.

Megan at Counting My Pennies tells why the ladies need to step up their investing game.

Dividend Growth Investor analyzes AT&T.

Dividends4Life analyzes Eli Lily.

David at Make Cash Online Today is talking about FOREX trading robots, whatever those are.

I’m Not Cheap, I’m Fiscally Concerned is never watching CNBC again. Ever.

MONEY MANAGEMENT
Great advice here for those in search of a renewal of balance.

Living Almost Large ponders living large.

Aaryn at Sound Money Matters reminds us why we need a will.

Shannon at Saving Advice reveals her secrets to success.

Broke Grad Student shares why he hates cash.

Free From Broke deals with financial problems with loved ones.

Ron at The Wisdom Journal gives us 10 Commitments You Should Make for Your Own Financial Success… how wise!

The Financial Blogger tells us how to find a good financial advisor.

DJ at the Family Wallet shares details about insurance needs when you have a new baby.

RC at Think Your Way to Wealth offers tips for moving to the next financial level.

Madison at My Dollar Plan shares advice for your mid-year money check-up.

REAL ESTATE
Buying property? Then you're in the midst of a financial reinvention! Read on and support your new goals.

Cheap as Chips helps us avoid the rental crisis.

Journey2Retirement asks: Is now a good time to buy a house?

REVIEWS
(Updated section)

SVB at The Digirati Life has a helpful post reviewing GlassDoor.com. Great reading for any career professional.

RETIREMENT
For the ultimate rebirth: The day when you leave work behind and do what you've always dreamed of with your free time.

Henry at InsureBlog has the true story of one woman's retirement planning dilemna, and how difficult it is to "get it right."

Toxic Money gives us information about your options when rolling over a 401K.

Clint at Accumululating Money tells us how to retire comfortably with a Roth IRA.

Jay at Personal Finance Hacks compares 401k plans.

Dan at Everyday Finance looks at 401 asset allocation and shows what you can do to protect your nest egg.

Daniel at A Financial Life asks: How much do you save for retirement?

SAVING
It might not be a big deal for anyone else, but the day I opened a savings account with direct deposit was the day my life changed.

Jim at Financial Blueprint opened an HSBC savings account.

Sun’s Financial Diary finds a savings account with 4.7% APY (!).

SPENDING
Renewal is about a commitment to a larger goal, and baby steps help you get there. Cutting back on spending is one of those baby steps.

Lisa at Greener Pastures writes, “How are you affected by the power of suggestion? The answer might surprise you.”

Bob at Christian Finances and Debt Help shares a cool tool to help spend safely.

Shana at Smart Easy Money is spending her stimulus check, and won’t miss it.

Preet at Where Does All My Money Go says smoking a pack a day costs you… millions.

Our Fourpence Worth resists the urge to splurge.

Dorian, The Personal Financier, shares why buying groceries online is the way to go.

One Frugal Girl avoids full retail prices for 30 days…can she do it?

Tanesha at Personal Financial Analyst shares her love of Netflix.

…while Money Smart Life analyzes Blockbuster’s Total Access Pass.

TAXES

BeThisWay wants to know where his sales tax holiday is this year. Sales tax holiday? Are you kidding? Where do I sign up?

Free Money Finance tells us how to hire a good tax professional.

TRAVEL
Because we're all in need of a good summer vacation to feel refreshed and renewed, I opened up a new category. It's a little self-serving for me, but I eat these articles up!

Mighty Bargain Hunter scouts out newer, sneakier ways airlines give you a walletectomy.

I really appreciated this article by Student Scrooge on airline miles. Given all my travel issues lately, I found it very informative.

And that rounds out this week's edition! If you didn't make it in this week's edition, it's likely due to the cut-off time I had to implement this evening in order for me to get some work in. Your submissions will be considered for next week's Carnival.

I hope you all have a fabulous week, and if you're new to The Budgeting Babe, be sure to check me out from time to time.

Thanks to Flexo for being such an amazing PF steward. You rock.

Changes

2008-07-12T16:48:00.003-05:00

Phew! I've been making changes to the site all day to make it easier to navigate. I've been wanting to make these changes for like two years but no one would help me (cough, cough, design school brothers) so I took it on myself. I even took the new header pic of myself! I'm pretty pleased it turned out so well. I wish the menu bar were a little snazzier, but for now, this is the extent of my design skills. I would love your feedback!

As you can see, I'm trying to free up a little room on the site. I've been getting a lot of inquiries from potential advertisers and as soon as I can figure out how to set up a contract and payment method, I'm going to open it up. Of course, the ads WILL NOT interfere with the site content or usability. I will be very choiceful about what I put up. That said, after four years of hard work, I'm excited to finally start making some cash to go towards my downpayment!

Monday is the big Carnival of Personal Finance HERE so tune in and help make it a success. If you're going to submit articles, please get 'em in by 10 p.m. on Sunday.

Quote of the Day

2008-07-11T12:40:00.002-05:00

Just read this and I liked it, so I wanted to share:

"The successful women I know in business, academia and elsewhere think of themselves as leaders who happen to be women" not as female executives, female college presidents or female politicians, says Nancy Koehn, a Harvard Business School professor.

Certainly timely and thought-provoking for those of us climbing our career ladders, be they corporate, academic or public.

High-flying, risk-taking women

2008-07-10T22:04:00.003-05:00

I have a secret, and it's time I came clean.

This will shock absolutely no one who reads my blog regularly, but growing up, I was a cheerleader. From fifth grade all the way through my senior year of high school, pleated skirts, pom-poms, glitter and spirit sticks ruled my life. Oh, sure, I considered myself an atypical cheerleader, or Sprit Leader, if you must. Coming from an inner-city Jesuit high school best known for academics, where our post-game-loss chant was "That's allright, that's OK, we have higher GPA's!" you can't really take yourself too seriously. But still, that was me. And I'm OK with it. And I thought you should know.

Why am I talking cheerleading? Because as all former cheerleaders know, there's huge risk involved in the sport. Have you ever watched a group of 90-lb girls attempt to learn a basket toss, a three-person climb or a head stand-spin move that ends in a split? I have, and if the number of female investors out there are any indication, many of those daring, awe-inspiring, high-flying risk takers grow up to totally avoid the element of risk that is investing. It's amazing to me.

So grab your pom-poms, ladies, we're going to reminisce for a while and figure out how to recapture our youthful risk-taking tendencies and bring them back into our adult lives.

Let's start by going way back... to grade school. Aside from learning super-awesome cheers composed by my fifth grade squad ("The Cats are hip, we're happenin', the top's where we belong!"), the team had the unique ability to get a group of girls to take big physical and mental risks, like convincing flyers to be tossed into the air or climbing up to the top of a pyramid for a stunt. Back in the early 90's, we trained on these tiny mats in my church basement, so looking back maybe those risks weren't terribly smart. But we took them. I'm guessing it was the support of the group, real or perceived, that allowed us to believe that even if we fell down or got hurt, the other girls and our coaches would help us back up, and that we would get up and move on.

The concept of a support group is a lesson women seem to forget when we talk about finances. We so often think we have to go it alone, that it's just us and a piece of paper or a Web site asking us to part with our hard-earned cash. In my case, I usually sit around pondering what I should do for so long that I eventually just give up. Staring at the Vanguard Web site isn't going to tell me whether investing in a mutual fund is a good idea or not, and it would be too painful to make a wrong decision that results in a loss. So I generally do nothing.

But there are women out there changing this trend. Jean Chatzky is a big believer in financial support groups for women. WIFE.org sponsors Money Clubs all across the country. And don't forget the power of your own social networks. It's OK to talk to your friends about money, about their goals and how they save or invest. And if you're friends aren't good with money, look to all the personal finance bloggers and Web sites that exist out there for women and get inspired. Because as we learned in grade school, you can't perfect your technique without a few drops, scrapes and bruises. Having the right people to help you pick yourself back up is key to ensuring that you try new things.

Another behavior my squads employed to encourage risk taking was letting the creative process flow. In high school, I remember spending hours on choreography. During practice, after practice, before class... you name it. I was always challenging myself to come up with new routines, new ways of looking at the same problems. And I had a coach who was incredibly receptive to our ideas, skilled at fostering talent and encouraging of any ideas we threw his way. So rather than sit by idly and take direction, we were always pushing ourselves to try new moves, take on new challenges. Sometimes it worked, sometimes not, but once we got it in our mind to try something new, we tried it and never looked back. (OK, sidenote... my freshman year of high school we had this CRAZY coach who took our money to buy new uniforms and then RAN OFF WITH IT, true story!)

So if you're worried about the risk involved in investing, see what you can do to spark your creativity and come up with solutions to the issues that are bothering you. If you're worried that investing in your own future will put your kids' college funds at risk, it's clearly a legitimate concern. But what are some ways to get around it? Don't just do a Google search and be done with the question. Internalize the matter and find a solution that works for you and your family. Let the creative juices flow!

Alternatively, you can also use creativity to figure out how to get the best deal in a negotiation. For your next salary discussion, brainstorm three or four additional "nice-to-haves" that would turn a so-so raise into a great raise. More vacation days? A work-from-home day once per month? More responsibility? More support? Use your creativity to come up with other "wins" that you can use during a negotiation or payroll discussion. Then, when your boss lowballs you on that big raise he's been promising, your creative solutions will encourage you to ask for other concessions on your company's part. (The worst they can say is no, so you might as well ask.)

One more way the squad encouraged people to take risks was through competition. Did you guys watch Diddy's "Making the Band" when they were making Danity Kane and the girls had dance-offs in the dance studio? We totally had to do that in high school! I remember there were times when I was too scared to try something new, or just thought I couldn't do it, but I knew that if I didn't try it, the spot on the floor went to someone else, or I got put in the back of the formation. I'm not sure what the real-world equivalent of that would be. Maybe you could challenge all your friends to do some investing and if you don't do it, you get some sort of (non-financial) penalty? It's not fully baked yet, but you get the idea. Competition is good for risk-taking. (Then again, maybe I can't think of any equivalent because we're not yet using the concept of dance-offs to fire up our financial brainpower. A girl can only hope. Sigh.)

I know it's a bit far-fetched, but I think there's something to be said for cheerleading teams in that they create very positive environments that spur women to take risks that they ordinarily wouldn't. (Can you imagine any other situation where you'd be willing to be thrown high into the air, only to caught by a group of teenagers with a tumbling mat for a safety net?) I'm postulating that some of the ways teams do this is by offering a trustworthy support network, fostering creativity and encouraging competition. I'm sure there's more to it, but I believe these are all concepts that can be applied to help women get more comfortable with finances, negotiations and investing.**

It's worth noting that I also, at varying points in my youth, was on softball, track and volleyball teams, and participated in a variety of student leadership organizations, and none of them even came close to getting me to step outside my comfort zone and take risks like my cheerleading squads did.

If you were a cheerleader, I'd love to know your thoughts on how your team environment fostered risk-taking among the girls. Are there any special techniques I'm missing?

**Disclaimer... clearly not ALL women are uncomfortable with investing.

I'm hosting Monday's Carnival of Personal Finance

2008-07-09T00:07:00.003-05:00

I've fallen off the bandwagon lately, I know. My posts haven't exactly been compelling or personal finance-related... they've just been about how I spend my money on things like sandals that break and bars that offer drink specials. And while it's nice that at least some of you care about where I spend my weekends (aww...thanks, Dad!), my sense is that the blog is far more helpful and interesting when I actually am learning about finance and writing posts of substance.

I actually get a little too into posts about my social calendar every summer, but this year, I've got a plan to remedy the problem. How's that, you ask? By hosting Monday's Carnival of Personal Finance on July 14th, of course. It's perfect because I'm turning 29 on the 20th of July and this virtually guarantees that I'll usher in a new age chock-full of important financial knowledge.

So, to all the other PF bloggers out there... educate me! Give me some new topics or else I'll be forced to take a picture of all the clothes I've bought this year and tally up their totals. (Trust me, the totals are already tallied and NOBODY wants to see them.) Continue reading to find out how you can enlighten me.

To submit an article for Monday's Carnival of Personal Finance, you can click here and use the form to send in an article. If you've never done it before, it's totally easy. Even I can figure it out and half the time I have no idea what the other bloggers are talking about.

Some of you are probably asking what a Carnival of Personal Finance is, which is perfect because I asked the same thing when I first heard about it. While I will not be offering cotton candy, free rides or games that cost 25 cents, I will be compiling a ridiculous amount of clever, witty and intelligent personal finance posts from around the globe.

A better definition from the Carnival's main Web site follows:
In this case, a “Carnival” is a weblog post that brings attention to some of the week’s most interesting and informative blogger-written articles within the broad spectrum of personal finance. It is a showcase of weblog posts, submitted by their authors or by casual readers for consideration.

Some of the topics considered for inclusion are budgeting, saving money, earning money, managing debt, living below your means, and any other topic somewhat related to personal finance.

So basically, I'll be compiling the best of the blogosphere's financial articles and posting them here for all to enjoy. How absolutely exciting! And how much work, now that I think about it.

I want lots of WOMEN to submit articles for this one, so lady PF bloggers, represent! (But fellas, don't leave me out in the cold. I need your manpower for this exercise, too.)

Back up and running

2008-07-07T15:59:00.002-05:00

Thanks for your patience! You should now be able to see everything as you could before. Nothing a little HTML can't fix :)

A Net Worth Update - With LOTS of Good News!

2008-07-06T12:37:00.005-05:00

It's been a while since I've updated you guys on my goals, accomplishments and my net worth, so without further ado, here you go. I'll call this "What's new with The Budgeting Babe?"

NEWS!!!!!!
1. I've been promoted to Vice President at my job! This is a hugely significant career milestone for me and a top goal on my list of things to do before turning 30. It's a lot of work, but will hopefully help me reach my financial goals sooner (paying off my student loan and buying property). I've literally been celebrating for the past two weeks :)

2. I got my driver's license! I have been practicing for almost 6 months in hopes of getting my license this year. Since I technically started trying to drive at 15, and since then have had several permits and flunked two driving tests, it's been an uphill battle - my personal Everest - filled with frustration and self-doubt. But on July 3, 2008, I rocked the test and officially became a licensed driver in the state of Illinois!

I may have cried at the DMV when the instructor passed me.

Isn't it amazing what goal-setting can do for you?

NET WORTH UPDATE
I haven't tallied my net worth in a while, so it was a pleasure to see that despite the market woes, my overall net worth has risen by 15 percent since March 1st to $64,000, the result of a very ambitious and focused savings plan.

It's funny; the more my net worth increases, the less I want to spend and the more I want my accounts to grow. At first, I thought I would buy a condo as soon as I had what I considered to be a good downpayment in place (I thought $10,000 sounded good at first). But now I want to be able to put down money without paying PMI, and I'm reconsidering whether I want a condo or to keep saving for a small house with a yard.

It's so exciting! Thanks to everyone for your support along the way. We'll get there together!

3 Crazy Nights in Chicago: Chapter 3 - Pride and Joy

2008-07-03T11:43:00.003-05:00

As a native Chicagoan, I get a lot of questions from potential visitors (through the blog and personally) about what to do and where to go in the city if you're on a budget or not looking to spend your life savings on a weekend here. And with the recent trend of staycations, Chicago's at the top of a lot of people's summer destination lists. So I hope those of you considering a trip to the city found these last couple posts helpful.

For the final day of their trip, my friends and I took in two extremes of Chicago tourism: A $12 guided architectural boat tour, a long-standing pillar of city tourism for all ages, and the $0 gay pride parade, a more adult and more recently popular addition to the city's tourism scene.

For $12, the dazzling architectural tour shares the history of the city's most celebrated buildings, sprinkled with sparkling conversation pieces. I can now tell you exactly how tall the Chicago Spire will be when it's completed, and provide a visual reference for just how high 2,000 feet really is. For those of you looking for activities for your families in the city, this is a four-star treat. Though we rushed to our next destination, you could always follow up the tour with a trip to Navy Pier, or a nice afternoon lunch at Grand Lux on Michigan, easily walkable from the boat docks on Wacker and a great spot for parents, aunts, in-laws or grandparents.

Following the boat tour, we made our way via el train to the colorful gay pride parade. Despite living here for 28 years, I had never seen it and was thrilled to experience the joyful pageantry of the day -- dancers, mardi gras costumes, bikers, floats, costumes and oh-the-glitter -- on such a beautiful morning. To see pictures of the event, go here. The downside was that organizationally, with more than 500,000 people in attendance, we spent the first hour hot, crowded and barely able to see anything until we walked a half-mile north to find an open spot. Unfortunately at that point someone fell off a float, it started to rain and the entire parade stopped for 40 minutes. (Luckily we were standing near a radio station float jamming to "Bootie Call," "Yolanda," and "Percolater," so the time passed quickly), but eventually we had to get back into the city and so instead of waiting for the floats to move again, we strolled down the street along the parade route, seeing the rockin' floats up close and personal (thank you Minibar). Next year I'll definitely get there earlier, research better places to stand or potentially try to find somebody along the route with an apartment from which to get some good pictures!

As with any large-scale city event, it's important, both for your safety and your wallet, to be prepared before you go. Whether it's the Taste of Chicago, the South Side Irish Parade or simply a Cubs game, research everything online before you get there - public transportation, weather, dining, good spots to stand - and go with a game plan. We didn't and I think my friends were a little overwhelmed by the whole thing.

One more trip for pizza before boarding the train for the airport and I said good-bye to my friends. I can't wait for them to come again.

I recently wrote that shacking up with a friend is a great way to save money, but I sort of forgot how much work goes into being a great host. As host, you're at least partially responsible for making sure out-of-towners leave with a smile on their faces and great stories to tell. I suggest offering budget-friendly options that combine local mainstays with more off-the-beaten-path activities, planning days based on their interests and staying away from editorializing too much. Allow guests to experience everything your city has to offer and form their own opinions about what they love.

And if at all possible, try to keep a handle on your cell phone while guests are in town.

3 Crazy Nights in Chicago: Chapter 2 - Eating and Drinking Our Way Through the City

2008-06-30T23:18:00.003-05:00

I was toying with calling this chapter "Texans Like Pizza and Drinking," because that pretty much sums up my weekend.

I'm not sure whether my Texan mamas (and some fellow Illinoisians, to be fair) fully expected the beast of a weekend we got. But one thing was clear from the start - they wanted pizza and drinking. And lots of it. And since I know all too well the city's famously hearty foods - and few of the famously foodie foods - I sent them to reasonably priced casual places. Though I'm always happy to provide recommendations for those looking for a trendier, less-touristy or more upscale scene.

So we started our caloric extravaganza at Gino's East on Friday night; their pick, although since I eat it so infrequently it's a treat for me. If I had to pick the best pizza in the city, it would be difficult, so I usually take out-of-town guests to the place closest to where I am at any given time: Lou Malnati's on the North side, Gino's East downtown, Giordano's or Salerno's in my hood and Home Run Inn on the Southwest side. You really can't go wrong with stuffed deep dish. We ordered a large one, two pitchers of beer (Goose Island, thank you), toasted ravioli and spinach sticks. Including the beer and a few mixed drinks, the total came to about $22 per person. Which is a great deal considering how much food was on our table!

After dinner, we went to Stanley's on Racine for a happy hour in the West Loop, where I taught my girls the fine art of playing bags in the dark. I think I only bought a few beers there, because our bag play amused the crowd, so folks kept our drinks coming whenever we were out. Gotta love the city. We made some new friends, but after losing both games to the Jeffs (that's Jeff and Geoff, to be precise), we were ready to move on.

A quick cab ride later brought us to English, a newish local hotspot downtown, where my smooth tap-dancing moves pretty much owned the top floor. Well, at least I thought they did. Another few drinks, some non-tappy dancing and the bar called last call. So we began our walk back to the hotel (which was a cool corporate apartment complex) with a stop at McDonald's along the way.

Saturday morning I skipped breakfast in favor of Dunkin' Donuts iced coffee and a chocolate donut as I frantically cruised around the city trying to get a phone. The other girls headed to Navy Pier and then west to Wicker Park, where they discovered Earwax, a trendy vegetarian diner that they raved about. I still can't stomach the name, because actual earwax really, really freaks me out, so despite its loveliness and dedication to keeping food real, I don't think I'll go there anytime soon.

Saturday night, we wanted something close, so we headed to the House of Blues, where we split bottles of champagne and racks of ribs. Weird combo? Yes. But also totally fun. There was a FANTASTIC musician performing and I've always thought the space itself is really cool, and they let us on the stage to take pictures with the band. That's usually more of a lunch place for me, but I'd go back for the BBQ ribs. Without the champaign, the ribs came to about $20 per person, including tip. Considering that we saw awesome live music with dinner, it was a great deal.

After HOB, it was up to Sheffield's for the beer garden. We planned to go to Funky Buddah Lounge but got rained on, and thus ended up instead at Trader Todd's because one of the girls was feeling some karaoke coming on. And apparently some shot-ski's... which my super fun Texan friends loved (you'll have to go there to figure out what those are). A few Virginia's Bananas, and some shot-ski's later, we were ready to call it a night.

But first, we finished things off with some late-night burritos. I couldn't even tell you where they were from. It was kind of a "hey cabbie, stop here!" thing. Though I can definitely offer some solid advice on picking a late-night burrito joint... look for long lines and happy faces! Two of my favorites are The Burrito House and the one by Wrigley Field, where Ish will serve you up burritos with a smile all night long at a tasty price. OK, LaBamba will also hit the spot when needed.

Sunday was a late breakfast at Potbelly followed by a heaping spoonful of pride at the Pride Parade (more on that later), and then the girls wanted MORE PIZZA before they got on the plane for Texas so we hit up Giordano's for one last stuffed deep dish and some fried zucchini.

Sure they missed out on some things - Al's Italian Beef, Taylor Street Italian Ice, Nicky's Hot Dogs, Garrett Pop Corn (get the Chicago mix), Portillo's and every foodie place in the city...

And of course they missed out on museums and most indoor activity aside from shopping, but that's why they need to come back in the winter. Maybe by then I'll have a handle on the places that require a coat and tie.

3 Crazy Nights in Chicago - Chapter 1: Chicago Swallows my Phone

2008-06-29T22:36:00.002-05:00

So much happened this weekend that I need to write it up by chapter to organize my thoughts. And so, I bring you tales from the city streets. Enjoy.

Chapter 1: Chicago Swallows my Cell Phone
Hot as an oven, vibrant, pulsating with life and music and smelling familiarly industrial like rubber and asphalt, Chicago in the summer infuses my soul with life, heat and passion. Maybe it's because I was born here on a steamy July day, but walking downtown this weekend, I felt one with the city. We are jersey dresses and flip flops and iced coffee and open fire hydrants and sunburns and sweat and ponytails and baseball caps. We are Cubs and Sox. We are proud, tall buildings that stand up to winds and storms. We are families and sisters and brothers and lovers and fighters and friends and everybody and nobody all at once.

It's enough for a girl to get caught up in, swallowed whole by the romance of a sunny day when the world is free and open and bright and anything ...can happen. Well, I didn't get swallowed up. But I was so ennamored with the city this weekend, serving as a guide for friends from afar, that I lost track of time, I lost track of my responsibilities... and I ultimately totally lost my phone.

I first noticed it was missing Saturday morning, apparently discarded somewhere between late night McDonald's and our hotel around 2 a.m. I wondered: Is it somewhere on a street curb, lonely? I wonder if it was karma - The City's way of balancing out the perfect evening with a little unpleasantness to remind me that like the seasons, Chicago's mood can change at any time.

Unfortunately, and much more pragmatically, turns out that someone else has it. They tried calling my parent's house in the morning before turning off the phone for good. Sadly, this means I won't get it back. This also means all my cell photos... including California sunsets, Wrigley Field from the top balcony and my mother dressed in a banana suit... are lost.

So on Saturday morning I went to the Sprint store, where I spent two hours negotiating a new contract (mine was up) and cell phone. I ended up with a pricey BlackBerry Pearl (I had planned to buy one for work, just not at that moment) with an added service pack and insurance for an extra $37/month, but my work will cover the BB pack so the monthly costs aren't bad.

While I didn't enjoy loosing my perfect afternoon and precious time with friends to the Sprint store, I was grateful to have a rainy day fund to fall back on. You don't plan to loose your phone with out-of-town guests in your city. But you should plan to have some extra cash in case you do. My rainy day fund turned out to be more than a cliche -- after I got my new phone, it poured most of the evening, cooling down temperatures but serving as yet another reminder to be prepared for anything at any moment. Because what saves you today might be that layering sweater or the small umbrella you keep in your bag, but tomorrow might be far more costly.

Chapter two coming tomorrow.

Figures...

2008-06-27T12:30:00.002-05:00

Note to self:
Cheap shoes = shoes held together with packing tape when the strap breaks.

Turns out, you DO have to spend more than $20 if you want to look professional at work. Sigh. Still, you can't blame a girl for trying to save a few dollars.

Wednesday News Round Up: I'm a total YAWN! (...Awesome)

2008-06-25T18:51:00.004-05:00

Sorry all, been in UP Michigan with my dad, brothers and boyfriend on our annual fishing trip, and we had no Internet there. (Yes, I am Midwestern..It was fantastic cheap fun.) Until I can catch up, here are a few helpful articles to help you pass the time. Enjoy!

Young, Prosperous and Frugal
Kiplinger.com
By Erin Burt
What you can learn from millionaires on a budget.
TOTAL BB shout-out for this fantastic article! Read it and learn how we roll.
I am a beliver in the YAWN philosophy (just without the W).

Living together while keeping money unmarried
US News and World Report online
By Kimberly Palmer
Welcome to my world, yo.

Using your tax rebate: What's good for you vs. the economy?
USA Today online
By Mindy Fetterman, Alex Newman and Juan Thomassie
It was interesting to see how what's good for you isn't really going to help the economy. Yeesh, that's a head scratcher.

What the Fed's decision means for you
CNN.com
By Jessica Dickler
This was helpful, so read it.

A first job primer

2008-06-16T12:59:00.003-05:00

In today's edition of "I scour financial news so you don't have to," check out this must read from Ron Leiber at the New York Times.

Your Money
A Primer for Young People Starting Their First Job
By RON LIEBER
Published: June 14, 2008
What employee manuals on health insurance, taxes and retirement plans should say, but don’t.

Get the full article here.

And since 'tis the season to talk first jobs (welcome interns!), here are a few things I've written on the subject:

-- My tips for starting a new job

-- About my job search, post-college

-- What to wear to the office

-- When to turn down a job

I hope these help you and good luck with your career journey!

Frustration: My savings accounts aren't keeping up

2008-06-15T01:56:00.007-05:00

I've just spent the last four hours online, researching my finances. And I feel frustrated. Not just because I'm sick and my head feels like a giant balloon is expanding inside of it, or because after four hours of sitting on the floor, my bottom has fallen asleep, or because it's a lovely summer Saturday night and I'm stuck at home. No ... I'm frustrated because I'm working hard to every day to save my money, but my accounts are acting like total deadbeats -- unmoving, unsuccessful and quite possibly hung over.

After my last post, a reader asked me to explain exactly how inflation is affecting my bank account. So I went back to pull the numbers, and analyzed my accounts during May 07, November 07 and May 08. I expected to find that expenses for ordinary things have gone up over the last few months. But on the contrary, I've been pretty good about adjusting my purchases to keep groceries and other staples at the same cost; for instance, we've made an effort to shop at Trader Joe's more regularly vs. Whole Foods, and at the high-priced Whole Foods, we've cut back on the higher-priced items.

While I was rather impressed with my spending discipline, I knew there were more accounts to investigate.

Up next was my savings account - and that is most definitely hurting. First, the good news: I have managed to save nearly $15,000 towards my downpayment during the last twelve months! Now the bad news: During the last twelve months, my money market account has plunged from a 5.05 percent APY in May 07 to a 2.75 APY in May 08. It's not even keeping up with inflation (which is currently at 4.2 percent), which sort of defeats the purpose of a savings account.

In fact, none of my accounts are keeping up with inflation. Not my bank savings account, not my money market account and not my 401K. In response to this statement, B said, somewhat sarcastically, that if my rates of return are above zero, the accounts still doing OK, and that the only people doing well right now are those who invest in commodities. I asked him if this meant I should invest in eggs and corn and cows. He laughed for a second, and then, more seriously said, "Well, if you open a brokerage account you can. Corn and gold are up right now."

Unfortunately I don't know how, or where, to open a brokerage account. Or if it's a good idea. So I looked it up on google, and found that it's pretty much just a standard investment account, which is not on my list of things to do with my downpayment funds.

It's weird - I'm so close to where I want to be with that account, but it still feels so far away. I'm probably a year to 18 months away from buying a place -- I have about $25,000 saved up right now -- and I have a plan for the next twelve months that involves home buyer education and real estate market analysis. So I should feel good, or great, about my progress. But instead of feeling like my money's doing well, I feel like my accounts aren't working as hard as I am to help me reach my goals.

But given the economy, I guess everyone's in the same boat. Maybe I should be happy that despite my savings accounts, I'm still managing to sock away money. Maybe I should also be happy that I haven't lost any money, or any equity (since I don't own a house). My net worth has steadily grown, despite the "market contraction." All very positive things. So what's bugging me?

I think the problem is that I feel helpless to do anything about the fact that my accounts aren't keeping up. On the downpayment account, I shouldn't move into higher risk, higher yield accounts, because I'm not planning on keeping money there five years or more. On the retirement account, a 1.9 percent rate of return is actually better than where my account was in November 07 (-4.5 percent). Truth be told, I wouldn't want to make any bold moves in this economy; there's too much uncertainty. And really, the difference between a 5.05 percent APY and a 2.75 percent APY probably only boils down to about $20 per month for me. So the best bet is to sit here and continue to save, like I always do.

I don't know, maybe it is the weekend cold talking. Let me get a little better and tell you how I feel next week.

Inflation jumps

2008-06-13T08:53:00.003-05:00

It may be time to adjust your budgets. I'm noticing a change in my bank accounts - are you?

AP: Inflation rate jumps highest in six months
By MARTIN CRUTSINGER, AP Economics Writer
WASHINGTON - The inflation rate shot up in May at the fastest pace in six months, pushed higher by soaring costs for gasoline and other types of energy.

Read the full article here.

Along the same lines, I read something yesterday on "stagflation." Can anyone explain that concept?

A Vacation Alternative for an Expensive Summer: Crashing

2008-06-11T22:25:00.010-05:00

As I noted a few posts ago, summer's gonna be rough for vacationers - gas prices have skyrocketed, airline tickets are outrageous and nobody has any extra cash to spend on exotic getaways, since prices of everyday things are rapidly rising. So what's a girl to do when she needs to get away?

My answer: Shack up with a faraway friend.

This may seem obvious for legions of college students accustomed to spending time crashing on friends' couches during summer vacation, but for many young couples and young-at-heart singles, the days of "crashing" ended with the diploma (or at least the sober, non-sexual kind did). Work schedules, family life, significant others and small apartments create imposing barriers to hospitality, and eventually it becomes easier for everyone involved to stay in hotels. As a traveler, you don't want to impose on your friends.

But one of my best friends just moved to Elko, Nevada, with her husband, and since I was desperate to get the frick out of Chicago and she was happy to have a visitor, we found a cheap flight, coordinated our schedules and made it work over a long weekend. The entire trip ended up costing about $150 more than I expected due to a last minute travel snafu (more on that), but overall I ended up having lovely time in a totally unexpected place that would never have been on my radar ... all for about $750, including flight, meals, entertainment, gambling money, snacks, souvenirs and extra lodging.

So if you're thinking of shacking up this summer to save a few bucks on a hotel room, here are some tips: plan well in advance to score a cheap flight, don't assume anything about your hosts' schedule, be as specific as possible about what you want to do during your trip (set expectations) and be a polite guest.

If you're interested in my trip to Elko and some cheap activities we did there, read on. My trip synopsis is below... I warn you, it's a long one; I will edit later... Read at your own discretion for now.

Day before the flight:
8:00 a.m. - I send an e-mail to my friend informing her how excited I am to visit Elko, then run off to attend about 800 morning meetings.

10:00 a.m. - When I come back to my desk, I find an e-mail from her nicely telling me that I am a moron because I assumed she was taking a half-day off work to pick me up from Salt Lake City. She is not, and now my options are to wait six hours at the airport for her or wait twelve hours to take a train. Rats.

12:00 noon - Friend informs me that she has found a flight for $180 to take me from Salt Lake City to Elko and offers to pay 1/2 the ticket b/c she feels bad that I am an idiot. I accept. She books the flight. Hurrah! I'm definitely getting to Elko, but since I'm planning to insist on paying the whole thing, my flight is now costing me roughly $480. I am mad at myself but too busy to care much.

Day one: United sucks. Reunions rule.
I make it to O'Hare fully packed with plenty of time to spare. Then I sit on the runway for 90 minutes. Then I miss my connecting flight, and the United flight attended tells me I'll probably have to pay another $100 dollars since my flight itineraries weren't linked and my missed flight was on Delta. I want to step on her toes.

Luckily, someone at the gate is much nicer and gets me onto the next Delta flight for free. She is a goddess. I profusely thank her and dash over to catch the flight to Elko... which leaves three hours later. Luckily I bought an $11 Quizno's sub and a $15 dollar copy of "My Sister's Keeper" to hold me over during the wait. I spend most of my layover crying like a baby in the airport. Damn that book is good.

At 6:00 p.m. I finally meet up with friend in the Elko airport. She and her husband take me on a brief tour of this high desert town -- we drive past the mysterious brothels of Elko, the oldest casino in Nevada and some men wearing cowboy hats. I learn that Elko is as high above sea level as Denver, that it's a gold mining boom town and that there are so many people trying to buy property there that all the hotels are booked with semi-permanent residents waiting for homes to be built.

We eat at a folksy Basque restaurant called "The Nevada" where the waitresses are super friendly, the gold miners eat in long rows and there is no sign of Basque cooking from what I can tell; however, friend points out that the homemade soup contains alphabet letters and this makes us happy. I estimate that the population of Elko is about 30 men to every one woman. Over a few cocktails, we speculate what it would be like to be a single woman in Elko. I bet you'd get a lot of ... um, dates.

Then we go see Sex and The City. It ranks a "meh" and shoulder shrug on my SATC scale. We're tired and go to bed.

Day two: Elko gets plastered
I sleep in while friend works; when I wake, I discover that I have the worst hair of my life in Elko - one half is plastered to my face and head via static and the other half is sticking straight up. I try five different hair creams to no avail. My hair sticks up like pipe cleaners. No wonder there are no women in Elko.

Friend gets off work early, and we eat lunch in a casino with a polar bear on the front. It's the only place in town that's open for lunch at 2:00 p.m. (Elko moves at a different pace.) We window shop around and pick up some souvenirs. I do not buy cowboy boots. We visit the cowboy museum, where the national cowboy poetry reading is held annually (who knew there was such a thing?). Then we watch her husband compete in a tug-of-war for charity (who knew there was such a thing?).

In the evening, we go to this crazy party at the Red Lion Casino, which friend tells me is THE BIGGEST PARTY OF THE YEAR in Elko. And no wonder! There's a band, a beer tent, a mechanical bull (yep!) and an amazing all-you-can-eat buffet with a seafood bar. AND IT'S ALL FREE! Apparently one of the gold mining companies is doing so well that it can host this extravaganza for about 1,000 people every year. They don't do that stuff in Chicago! I proceed to partake in the free bonanza.

By midnight, I'm playing craps at a $3.00 table with $20 worth of chips. At $5 left, I resolve to quit with my dignity in tact, but friend's friend says to me, "No risk, no reward!" so I keep playing. I end up getting on a nifty streak and winning my money back, plus $35 more dollars. Life in Nevada is good, and my souvenirs are covered with my winnings. Plus, gamblers drink free so I still haven't really spent anything on the awesome evening. Vegas, eat your heart out.

Day three: Ruby Mountain High
We wake up late because we're hung over. Then we drive 20 minutes outside Elko to the Ruby Mountains, which are amazingly beautiful. Our campsite is $15 per night, it's secluded and it's on a mountain stream. We pitch tents, cook dinner and start a fire.

But we're freezing cold, so we go to sleep early. The temp gets down to 30 degrees at night, and I am shivering in my winter jacket, gloves, hat, hood, sweatpants and wool socks. I think about going to the car or jumping into friend and her husband's tent, but it's too cold to get out of the sleeping bag. I think I hear a murderer or a grizzly bear outside but am more intimidated by the cold than the bear. So I wait in bed until the sun comes up. And when it does, I am warmed and I fall asleep and I am at peace.

Day four: Hiking the Rubies
When we finally get up, the sky is bright and we are refreshed, but my skin feels like sandpaper. I disregard it and we feast on campfired eggs and turkey sausage -- protein never tasted better. We then hike up to the snow line in the mountains. It's more beautiful than I imagined from our camp site.

After hiking, we head home, wash up, pack up and hit the road for Salt Lake City, where friend and I booked a hotel on priceline.com for $60 near the airport. We have a fantastic seafood dinner in Salt Lake City, though the city is dead on a Sunday night. After I roundly kick her arse at air hockey at a local watering hole, we head back to the hotel, exhausted and full. I am sad to say goodbye.

Day five: Homeward bound
Friend leaves Salt Lake City at 4:30 a.m. I sleep in and leave for Chicago around 1:00. I cry reading "My Sister's Keeper" the entire trip home. I hope no one sees me. With my dry skin, flat hair, red-rimmed eyes and general look of exhaustion, I'm sure I paint a pretty picture. But despite my outward appearance, I feel alive. And that's what my vacations are all about.

Budgeting Babe Podcast on US News!!

2008-06-04T13:42:00.002-05:00

Check out this interview I did with Kimberly Palmer at US News & Report. I think it's worth a listen over your lunch break.

Podcast: Being Young and Thifty
US News & World Report
Interviewer: Kimberly Palmer

What do you guys think?

(No more to read on this one, so ignore this >>>)

Summer Poll

2008-06-02T23:08:00.003-05:00

It's the first day of the meteorological summer! So I've decided to celebrate with a random poll. Tell us: if you had an extra $50 this summer, what would you spend it on? I've listed a few options with my very unscientific poll here and I've decided to be very rigid. You can only pick one of these, so if they don't appeal to you, pick the closest. No wimpy "none of the above" options in my make-believe land of happy $50 for all. No sir.

Or you can just, you know, write it in the comments. But take the poll first, and then tell me how you'd rather spend an extra $50 if someone approached you with it right now.

My extra $50...

Consequently, I did get an extra $50 this summer as a gift, and I spent it on ... gas. In May (ok, still technically spring) I traveled to Wisconsin with my mom to visit my aunt and donated $20 towards the trip. The rest was spent at Mars' Cheese Castle off the 94 expressway outside of Kenosha (aka the best place on earth), where I loaded up on cheese curds, summer sausage and New Glarus Beer - a virtual cornucopia of Midwestern delight - before heading to my aunt's to chill by her firepit and watch my little cousins catch bullfrogs.

If that's not $50 well-spent, I don't know what is.

And here is the rest of it.

2008-06-02T21:13:00.001-05:00

This part of the site remains under construction while I figure a few more things out. Until it's active, contact me about advertising and sponsorships at budgetingbabe@yahoo.com.

And here is the rest of it.

Helpful Budgeting Babe Posts

2008-06-02T20:59:00.001-05:00

Here are some of my most helpful how-to posts. If you're just starting out, these might inspire you to learn more. Enjoy!

Welcome!
This is the post that started it all. A manifesto of sorts.

Credit 201
All you ever wanted to know about how your credit card actually works.

Free Credit Reports
Get yours here.

Lost Wallet?
Really, who hasn't lost it at least once? Here's what to do about it.

Student Loan Consolidation
One of my most popular posts.

Grad School Dreamin'
A few thoughts on furthering your education.

CD's: Not what you think
An investment basic.

Shopping Addiction
Pretty self explanatory.

Health Expenses and Flex Spending
I got braces at the age of 24. This saved me a lot of money.

Determine Your Net Worth
One of the best aspects of a PF regime is watching your net worth grow. Learn how to figure it out here.

Best of the Web

2008-06-02T20:41:00.002-05:00

I've found all these sites incredibly helpful on my financial journey. Visit them often.

BEST OF THE WEB
Alpha Consumer
Bank Rate
Budget Travel
CNN Money
Credit.com
Daily Cents
Frontline: Credit
Kiplinger
Kobliner
Ms. Money
Queercents
Savvy Sugar
The Nest
USA Today: Financial Diet

Friends and Family

2008-06-01T19:50:00.004-05:00

Meet a few of my favorite budgeting friends: browse around, post comments and build your financial knowledge base. Join our beautiful budgeting revolution.

BUDGETING BABES
Beachgirl's Budget Blog
Birds and Bills
Boston Gal's Open Wallet
Clutter2Cash
CT Mom's Family Financials
Divine on a Dime
Fiscal Responsibility
Frugal for Life
Give Me Back My Five Bucks
Mapgirl's Fiscal Challenge
Money and Values
Ms. Money Blog
My Financial Goal
Penny Foolish
Save Like Me (from Self.com)
Savvy Saver
Smart Easy Money
Today's Budget
Udandi

BUDGETING DUOS
Make Love, Not Debt
Tired But Happy

BUDGETING BOYS
A Penny Saved
AllThingsFinancial
Broke in the Bay
Canadian Capitalist
Canadian Financial and Consumer Opinons
Consumerism Commentary
Finance Mind
Finance News Pro
Five Cent Nickel
Free Money Finance
Get Rich Slowly
Grow in Value
It's Just Money
Molly's Brother on a Budget
Money and Investing
Neville's Financial Blog
Okdork.com
PFBlog
Phat Investor
Saving Advice
Simplify My Life
Young Finance Guy

MEET MY FAMILY
OK. These aren't related to budgeting, but I find them inspiring, just the same.

Becky (International Adoption)
Christine (Professional Photography)

The Difference

2008-06-01T11:39:00.005-05:00

Last night, a group of friends old and new gathered to celebrate the passage of time, the ritual of the 30th birthday, for two of our best party boys at the mysterious Debonair Social Club on the city's West side.

The bar, billed a "boutique video club" by a local review site, featured a curious mix of clientele, decor and wait staff. Among mash up of goth-ish goers, heavily tattooed leather fans, 80's material girls and quasi-punk lovers, my casual crowd was totally out of place. The bouncers seemed more focused on keeping people out than getting people in, and the bartenders were ridiculously rude, but for the most part, we didn't mind. Intrigued by the people watching and the strange interplay of Nirvana, Annie Lennox and Fall-Out Boy on the speakers, we spent most of the night debating whether the place was an all-out gay bar, a bar for the more dramatic theater crowd or simply an oasis for the eccentric. The videos and images on the high walls offered more than a little fodder for conversation.

Today, in thinking about a bar whose image is up for grabs, I began noticing how within my own social scene, people's images, personas and passions have changed over the last 10 years.

The fun-loving, free-sprited lifestyle of our early 20's - yet so filled with drama, tension and angst - seems to have given way to a more focused kind of existence. As some friends said good-bye early to be home with their babies, others laughed about recent stints living abroad in Europe and Brazil while others discussed career goals and other aspirations. Of course, this conversation was often punctuated by the occasional sing-along to Billy Idol and eventually became more vodka-driven than not, but still, this morning I can't help but think about the change that's occurred.

If our early 20's are all about defining our identity, determining our priorities and filtering out what we don't want in our lives, then our late 20's - for some of us, at least - are about internalizing those priorities and goals and setting in motion a path to get there.

I'm not sure how long this "setting in motion" phase lasts. But I would define it as the point in between once you finally identify what you want out of life until you actually are able to achieve it. Crap. Scratch that out. Because that sounds an awful lot like life itself.

OMG, the enormity of what I wrote just hit me...

When did we become adults?

That's the difference, isn't it. Individually, we're at different stages, but collectively, we're all officially adults now. I'm at once proud and sad.

Is that what our 20's are really about? You pay the student loans back, you learn to succeed in the nine-to-five (Ok, 8 a.m.-to-8 p.m.) world, you buy the furniture and the wall art, you adopt pets, you learn to manage your finances and live well within your means.

And somewhere in there, adulthood happens. Who knew?

Air Issues

2008-05-26T23:08:00.002-05:00

My annual budget-friendly trips have become a highlight of, well, my life. During the past few years I've traveled on the cheap to California several times, to Washington and Oregon and to Ireland, to name a few. I early await trip-planning season every year. And every year, I book a reward ticket on American and use my credit card rewards to keep the cost of most trips around $1,000 for a week-long expedition.

But have you tried booking flights lately? It's out of control! I'd spend the cost of my entire annual trip on airfare alone. The cost of flying to the Pacific coast has doubled since the last time I flew there, and now my miles are ridiculously difficult to redeem. We were considering a trip to Belize, but the flights cost an arm and a leg. I checked a few other destinations and the costs and mile redemptions are nuts...

This is a vacation crisis, people!

I feel blindsided. I mean, I know the cost of gas is bad, but what happened to Southwest's cheap flights? I guess I haven't been following the effects of airline consolidation and the high prices of gas haven't really hit me yet either(don't laugh, I don't drive).

So what's a girl to do this summer? I was really relying on cheap airfare for the summer. I need some suggestions for a good August destination with outdoor adventures stat! I'm thinking now I should just try to go to the boundary waters in Minnesota or do something in the Midwest. Which kind of sucks because I really love meeting people from all over, learning about the history and culture of new regions and GETTING FAR AWAY with my long vacation time.

SOS!

Five Basics for Your Finances

2008-05-24T14:46:00.003-05:00

For those of you who missed this...

New York Times: Your Money
Five Basics for Building a Solid Financial Future

By RON LIEBER

Published: May 17, 2008

A new Times columnist offers guidance for making financial decisions, when making good ones is more critical than ever.

Read the full article here.

(Sorry, I can't figure out how to delete this darn "read more" link, so ignore it here.)

Biggest Purchase of the Year!

2008-05-20T10:24:00.005-05:00

I confess, I splurged. I bought a Dyson vacuum cleaner. I was totally reluctant at first; after all, at more than $400, it's my most expensive purchase of the year. But after my first apartment sweep (and five canisters of horrifying gunk pulled off my floor), I absolutely love it. It's worth every single penny. Vacuuming could very well be my new favorite sport. Which is weird for a girl who spends most of her time away from home...

The Cost (or, How I Paid for this Beast)
As you can probably guess, I didn't pay the whole $439 by my lonesome. B and I agreed to split the purchase, which was nice since he could probably live with another $40 vacuum that doesn't pick up anything (eh, guys). On top of his portion, I used a $50 gift card (cha-ching!). With that help, I was able to buy the Dyson outright (not on credit). PS. Love the feeling of ownership, rather than credit card debt!

At the Store
As for my purchase decision, I was between two vacuums - the Kenmore progressive, ranked #1 by Consumer Reports and priced at $375, and the Dyson Animal DC17, which received rave consumer reviews here (gracias), from my brother - an inventory manager at Best Buy - and on many Web sites, priced at $550.

I visited several retailers online, including Amazon, Best Buy and Sears to scope out pricing and reviews. I ended up at Sears, determined to buy the Kenmore model (though deep down I wanted the Dyson).

While browsing the aisle, B and I discovered the Kenmore needed new filters every ten months; we added up the cost of filters over five years and found they added an additional $210 to the price of the vacuum. That brought the total five-year cost of the Kenmore model to $585 (plus tax, of course). I was bummed, but at that point, the sales lady stepped in and told me she had a Dyson on close-out pricing... and so the magic began.

Sears had a Dyson model with attachments (the Sears-exclusive fully equipped DC-14) for $439 - it requires no additional filters or extra parts, and comes with a 5-year warranty. She demonstrated some nifty features, like the crazy long hose and ghost-busters extendo-arm, and then had me vacuum some dirt off the floor. I kid you not, at this point, I was in the center of my very own "as seen on TV" commercial. Sweet.

At that point I was sold, though still a little skeptical of how great a vacuum could really be. I mean, I already vacuum my floors every week. Would there really be that much of a difference? We packed up the cool-looking Dyson into the Eclipse and headed off into the sunset, with just a twinge of buyers' remorse.

The Proof is in the Pudding (THIS THING ROCKS!!!!)
OK, you're bored, I know. But I have to tell you, this vacuum is freakin' amazing. I pulled what looked like an entire additional cat off the floor. It was like I never had vacuumed before; like there was a science project happening in my living room. Poor B was trying to study and I just kept shoving the full canister in his face shouting, "Look! Look at this gunk! Can you believe it? Can you believe we're living in this???"

My carpets are clean, less smelly and less full of cat hair. If you are a pet owner, I would definitely recommend getting the Dyson, especially if you have frequent visitors with allergies (I do - my mom can't visit for more than a half-hour at a time; though I'm hoping she can get in a full hour now). Sure, there are probably more pressing things to spend your money on, but if you're living in an apartment, and your vacuum breaks and it's the only appliance you are actually responsible for and you have the money set aside (wow, that's a lot of "ifs"), then I would splurge.

I think it's safe to say I'm obsessed. (You should have seen me cleaning the thing after I used it; it was like my dad cleaning, waxing and polishing a car.) If you ever want to come over and watch me vacuum, you totally can. Maybe the next time I sweep, I'll take a picture of the full canister to share so you can share my obsession.

Until then, what new items are you randomly obsessed with? What's the best big purchase you've ever made? Ever had a bad case of buyers' remorse? Enlighten us!