So, it looks like I’ve been bitten by the Amazon Kindle bug.  Although, it’s not buying books for the Kindle that I’m addicted to, it’s writing them!

As of last night, I’ve now published five personal finance books to the Kindle, with the two latest being 5 Money Lessons I Learned from My Blue Collar Middle Class Parents, and Save Money Without Even Noticing.  Needless to say, I think they’re pretty awesome.

For the faithful readers of Saving Without a Budget, you may recognize the blue collar title, since it was one of my more well-received posts, even getting picked up by Time.  Rest assured though, the ebook is not just a cut and paste from Saving Without a Budget; I’ve added lots of new content and insights.

As for “the other” ebook, it gives a bunch of easy ways you can start saving a bunch of money without affecting your lifestyle, or, as the title might suggest, without even really noticing.  This includes ways to save money on utilities, groceries, entertainment, etc.  You name it, you can save it.  (I’m a poet and don’t even know it.)

I’d love it if you’d check out the books and let me know what you think!

Image courtesy of Bess Sadler

In the middle of a seemingly never-ending recession, saving money wherever it is possible is at the top of the list in most households across the country. All the necessary expenditures come first, like mortgage payments, auto insurance, building insurance and groceries, but when it comes to renovating your house, money can be frustratingly scarce. Even if it isn’t particularly scarce as such, you might want to save as much as you can regardless so you can save up for things like new clothes and vacations. If you’re about to become a part-time renovator in your own home, then here are some tips that will help you save some money along the way.

Wallpaper is expensive at the best of times, so you would be wise to opt for a complete repaint instead, even if it is just in one or two rooms. Depending on how big the rooms you wish to decorate are, you could potentially save hundreds of dollars by reaching for the paintbrush.

Saving energy is important when it comes to renovations in the house. If you plan to install new lights around your home, then be sure to fit them with energy saving light bulbs to save yourself a few bucks in the long run.

If you’re planning on renovating your kitchen, there is a copious amount of things you can do to keep more of your hard-earned dollars. You don’t even have to rip out the whole kitchen: a great way to make it look new and fresh is to only replace the worktops and doors on all your cabinets.

If you want to save even more money in this respect, then simply painting the doors of your kitchen cabinets can revamp the overall style and appeal of the room. Even if you reinstall the same appliances, as long as they are environmentally friendly, the kitchen will look like a whole new place to you, your family and all your guests.

Installing a new alarm system during the renovation is a great way to reduce the cost of your insurance premiums, as your house will be a much safer place for you and much less appealing place to criminals. Even ‘mock’ alarms are available on the market now, which will do practically the same job as the real thing. It’s all about image – how it looks from the outside.

The best thing for you when you’re renovating is seeing what your whole home looks like from the inside when you’ve finished. It’s an incredibly rewarding experience and this is especially true if you have saved a few dollars in the long run.

Image courtesy of Keith Ramsey

I believe it was Benjamin Franklin who wisely told us, “Failing to prepare is preparing to fail.”

He’s right – and what’s more, Mr Franklin’s little mantra is appropriate for any of life’s situations – including, of course, your finances. The best way to prepare for financial stability is to make sure you plan ahead, and to plan ahead is to prepare a comprehensive budget.

While at first, the task at hand might seem pretty daunting, once you get going, you’ll be fine. And while you might be shocked at first, you’ll notice that the financial enlightenment you’ve sought will make you feel lighter, more in control, and just all round better. Trust me, I’ve been there and done it.

If you’re the type of person to bury your head and ignore a problem, then you’ll know that it feels pretty awful. Well, as awful as you let yourself feel as you ignore the problem and your feelings about it! You may believe that you’re able to shove your finances right to the back of your mind, but deep down, the problem will weigh on you, which is altogether worse for you and your finances than the initial pain of confronting it.

Bear up, take stock, and list every single one of your incomings and outgoings – it doesn’t matter whether you work on a monthly or weekly basis – just make sure you’re consistent. Make sure that you account for everything you’re spending your money on: rent or mortgage, food, auto, home, and other insurance, credit cards, gas, loan repayments, childcare, clothing, utilities, school trips, school books etc. Get everything down on your list.

So this is crunch time – you might be pleasantly surprised to find that your finances are in relatively good order, and you just need to tidy up your spending a little. However, you may also discover that there’s a huge discrepancy between your incomings and your outgoings – but don’t be overwhelmed and crumble, because you’ve done the very hardest bit, and things can only get better.

Now, make two lists: the essential items (food, rent, etc.) and the non-essential items (clothing, leisure etc.). Calculate out how big the discrepancy is and examine where you can afford to make sacrifices.
You’ll very soon discover that you can cut out a lot of the non-essentials to save a huge amount of money, and that you can also probably acquire your essentials cheaper than you already do.

Use energy, auto and home insurance comparison sites to shop around for better deals than those offered by your current providers, look at your groceries and see whether you can buy less expensive brands or even spend time making healthier homemade meals instead.

Do you buy your lunch from the shop next to work every day? Perhaps you have a coffee on the way to work every day or a few times a week. It all adds up, especially if you’re talking about budgeting for yourself and your family.

Control your finances – don’t let your finances control you. It doesn’t take much to get on the path to financial stability, so why not take the plunge and start today?

Since the recession and banking crisis of 2008, almost all news about getting financing has been discouraging. People with above average credit ratings are unable to get loans to buy homes, and businesses complain they are unable to grow because banks are so stringent in how much they will lend to them. Tight lending requirements include personal loans.

So how is it possible that individuals can borrow small amounts, between $100 and $1500?

In fact, personal loans are still possible. They come under different names and in different forms:

a. Credit card cash advance – This is the type of personal loan that millions of people have basically used for decades. If you make a purchase or get a cash advance on a credit card – not a debit card drawn from a bank account – you are basically borrowing the money. Major card issuers only take new customers who meet minimum credit rating standards.

b. Collateralized loans – This is when you offer an item of value that is greater than the value of the loan as a promise to repay on the loan (you forfeit the item if you cannot repay the loan). This ranges from home equity loans to car title loans to jewelry or other valuables offered at a pawnshop. For car title loans, you usually need to own the car outright (i.e., not have outstanding payments to make on it).

c. Payday cash advance – Anyone with a job and a checking account can get a personal loan based on the value of their next paycheck. State banking laws regulate the amount this can be, and the amount is also determined by the borrower’s pay rate. Online payday advance companies can help a borrower figure out what that amount could be. Credit histories and collateral are irrelevant to payday cash advance personal loans.

While the options each come with their own requirements, each also enable individuals to get a personal loan with relative speed – which is often something that borrowers need.

Creating a budget can be a time consuming pain. You have to track down all of your expenses and income to set your monthly baseline and then from that point on you need to be good about staying on top of all of the data entry and analysis. That being said, it might not really be as hard as you think.

CNN Money has a great article entitled Create A Budget (and Stick to It), which can be read by clicking this link.

If you create a budget and stick to it, you could keep a lot more of your hard-earned money.

Basically, it gives an outline of good financial software and resources you can use to quickly and easily set up a budget. And, the best part is, some of these resources are available to you free of charge.

Unfortunately, the article does recommend that for people who are serious about setting a budget, you’re probably better off buying a program like Quicken Premier:

Buy the good stuff. Quicken Premier software (quicken.intuit.com) requires more TLC than Mint (which was purchased in 2009 by Intuit, Quicken’s parent).

But for the true budgeting obsessive, nothing else comes close. With this software you can set up the most detailed budget goals available anywhere, plus easily track your progress. And unlike Mint, Quicken lets you pay bills online and even export data to tax-preparation software such as TurboTax.

“If you have a complex financial picture,” says Walter Zebrowski, a certified public accountant in New York City, “this is best.”

And, in case you’d rather a video than an article from CNN Money here’s a YouTube video about the importance of budgeting:

So what do you think?  What are your best budgeting tips?  Leave your comments below!

Related articles

• Quicken online is now free (christianpf.com)
• Surviving On A Budget (payplan.com)

While driving home the other day, I heard the Bon Jovi song “Wanted Dead or Alive” and somehow became inspired to write a version of the song that would be good for The Personal Finance Program.

On that note (no pun intended) I came up with the following lyrics to “Wanted Debt or Alive,” which is about how many of us over spend using money that isn’t even ours to begin with.

Enjoy!

It’s all the same
Only the stores will change
Everyday
It seems I’m spendin’ away

Another store
Where the sales are so bold
I shop all night
Because I’m easily sold

I’m a spender
On a Visa I ride
I’m wanted
Debt or alive
Wanted
Debt or alive

Sometimes I’m cheap
Sometimes it’s not for days
To the cashiers I meet
I’m glad to hand my pay

Sometimes you tell the day
By the bill that’s on the brink
And times when you’re alone
You buy everything but the kitchen sink

I’m a spender
On a Visa I ride
I’m wanted
Debt or alive
Wanted
Debt or alive

I’m a spender
On a Visa I ride
I’m wanted
Debt or alive

When I walk these streets
A loaded AMEX string on my back
I buy for keeps
‘Cause I might have to pay it back

I’ve spent everywhere
Still I’m spendin’ it all
I’ve seen a million offers
And I’ve bought them all

‘Cause I’m a spender
On a Visa I ride
I’m wanted
Debt or alive

I’m a spender
FICO’s not on my side
And I’m wanted
Debt or alive
And I’m wrong
Debt or alive
I still spend
Debt or alive

Debt or alive

What did you think?  Any good?  Worth putting together a YouTube video over?  Leave your comments below.

Per FTC regulations, please note that the above link to Amazon.com is an affiliate link.  Should you purchase anything from Amazon.com after clicking the link, I may receive a commission.

Most of us – men especially – view Valentine’s Day as a “Hallmark Holiday.”

For those of you who have never heard this term, it means that Valentine’s Day is pretty much just a corporate sponsored holiday created to force us to spend money on our significant others.

We go along with it because – let’s be honest – if we didn’t, we’d never hear the end of it. This being the case, here are some simple and inexpensive ways for you to get the most of the “holiday” and show your girlfriend or wife that you actually spent a little time thinking about what you ultimately give them.

1) Write your boyfriend, girlfriend, husband, or wife a sincere love letter, explaining why and how much you love them, and why they’re the best thing in your life. Taking the time to write a letter like this will mean a lot and melt their heart!

2) Give him or her something other than the cliche gifts like teddy bears or roses, especially if roses aren’t her favorite flower and he has no need for a new stuffed animal. This will help to save you money, and it shows that you care enough to know what her favorite flowers are.

3) Plan out and cook a dinner at home, and, if possible, make it your significant other their favorite meal. As stated above, it’s cheaper to make a meal at home than it is to go out and eat, plus it will show you’ve listened when he or she has talked.

4) End the night by offering to giving your partner a full body massage. Don’t act like you’re offering this based on alterior motives, and it just might work out in your favor!

Follow this advice and you can have an inexpensive but still very sweet and thoughtful Valentine’s Day.

First of all, happy New Year!

Like most everyone else, you’ve probably come up with some New Year’s resolutions, some of which may include some financial goals. Maybe you want to pay down some credit card debt, save up for a house, or just be “better with money.” Whatever financial goals for 2010 are, I want to help make sure you see them through.

In order to make sure you follow through on your goals for all of 2010 and not just for the first few months, you need to do two separate things, which, if done right, will dramatically increase the chance you’ll complete your resolution.

1. Determine the what, why, and how of your goal/resolution
2. Write down the what, why, and how of your goal/resolution and carry it with you

Both of these steps are pretty straight forward, and leave you little room for excuses!

WHAT: state what you want to achieve, trying to be as specific as possible. For example, don’t just say, “I want to pay down some credit card debt.” Instead say, “I want to pay down $1,000 of my credit card debt by June.” The more specific and absolute you can are, the easier it is going to track your progress and hold yourself accountable.

WHY: state what you stand to gain from accomplishing the goal, again, being as specific as possible. Using the above example, you could say something like, “in order to achieve more financial stability and to improve my credit score.” When you review your goals from time to time, seeing the “why” will reinforce the goal and help to keep you moving forward.

HOW: this is where you outline your battle plan, being (you guessed it) as specific as possible. In taking the credit card debt example, you might say, “by going out to eat only once per week and not buying any new electronics until I’ve met my goal,” as opposed to saying something like, “by spending less.”

Now that you have your fully formed goal(s), go ahead and, on a small piece of paper, write down all of the pieces of your goal(s). When you’re done, stick the piece of paper some place you look at frequently in order to keep the goals fresh in your mind. Because these are financial goals, I find it useful to stick the piece of paper in my wallet.

I wish you a very happy and healthy 2010, and hope that by following this advice you achieve all of your goals – both financial and non-financial – throughout the year.

Want to share your resolutions? Have a better way to plan out and track your goals? Leave your comments below!

First, let me state that I’m not entirely proud of what I’m about to say, but at the same time I hope that you’ll learn from what I’m about to say.

Early this morning, when I couldn’t stand to watch ESPN any longer due to the Tiger Woods “news,” I flipped to one of my free movie channels and started watching Confessions of a Shopaholic, staring Isla Fisher, the crazy sister in Wedding Crashers.

Anyway, Confessions centers around a woman, Rebecca Bloomwood, who as you’ve probably already guessed, is a shopaholic.  She is in massive consumer debt and has a collection agency hounding her, and to make matters worse, she doles out advice consumers while writing for a financial magazine.

Ok, I’ll confess, I thought it was a cute movie and was worth watching purely for entertainment purposes (not to mention Isla Fisher is very nice to look at).

Despite the entertainment factor, I thought there were actually some pretty good financial lessons to be learned from the movie.

1) Know the differences between needs and wants. For those of you who are regular readers of The Personal Finance Program, you know this is something I talk about regularly, and is critically important to getting your finances in order.

In Confessions, Bloomwood is constantly buying new clothes and fashion accessories, despite having closets full of clothes, scarves, purses and shoes.  Whenever she sees something she wants, she gets it, even though it’s certainly not something she needs.  Over time, these purchases put her tens of thousands of dollars in credit card debt.

2) If you’re in consumer debt, you should make paying it down as quickly as possible a high priority. One of the things that gets Bloomwood into such a huge financial hole is doesn’t make paying down her debt a priority.  While the movie never talks about what sort of interest rate she’s paying, we can assume that because she’s in deep credit card debt, the interest is at least 18%, if not more.

Over time, the interest continues to accrue, and eventually snowballs into such a giant number that it’s very hard to get out of.

Obviously, the best thing to do is avoid getting into this debt in the first place.  If you weren’t able to avoid it, try your best to make more than the monthly minimum payments.  This will allow you to pay off your debt much faster, and could ultimately save you thousands of dollars in interest costs.

3) Don’t delude yourself into thinking you don’t have a problem. The final thing that ends up hurting Bloomwood is the fact she refuses to admit that she has a serious problem.  Instead of admitting her issues, she continues to avoid the debt collection agency all while continuing to spend money she doesn’t have on things she doesn’t need.

Had Bloomwood admitted her shopping and spending issues and put together a plan to pay off the debt, she would have been in a much better situation.

Just remember, lying to yourself won’t make your debt go away.

Anyway, if you’re looking for a cute movie that actually has some worthwhile advice, by all means, check out Confessions of a Shopaholic.

Can you think of any other movies that have good financial advice?  Leave a comment below and share your thoughts.

Per the new FTC regulations, the above links are affiliate links (via Amazon.com), and should you purchase anything after clicking the above links, I will receive a small commission.

The other day I was reading an interesting article by Liz Pulliam Weston on MSN Money in which she talks about whether or not “underwater” homeowners should simply walk away from their mortgage.

For those of you who have never heard the term “underwater” used in housing, basically it means that a homeowner owes more money on their mortgage than their house or property is worth. For example, if you owe $250,000 on your mortgage but your home is worth only $200,000, you would be “underwater” by $50,000.

Considering how far and how fast real estate prices have fallen in the past three years, it’s easy to see why so many home owners with a mortgage – nearly 25% according to a recent poll – are in a situation like the one described above.

In Weston’s article, she references a paper written by University of Arizona Law professor Brent T. White in which he asserts that if you’re underwater, you should walk away from the home and mortgage, even if you are able to make the monthly payments.

White argues that underwater borrowers would be better off financially over the long-term, not to mention the fact that the current system isn’t exactly set up to provide much help to those who need it.

White also asserts that the morality regarding walking away from a home and mortgage shouldn’t be taken into consideration as this is purely a financial decision.

Weston, on the other hand, argues to not walk away from your obligations, and to try everything possible to make your payments.

She states that aside from the fact most of us believe we have a moral obligation to continue making payments, letting your home slip into foreclosure will ruin your credit score, and will continue to foster the downward spiral in the real estate market that our country is trying so hard to pull out of.

Weston ends her article by recommending that troubled borrowers attempt to work with their lenders and considering all options prior to deciding to simply walk away.

So, in which camp do you fall? Should underwater borrowers walk away from their home and mortgage because it’s better for them financially, or do they have a moral obligation to stick it out regardless of the financial impact? Let me know what you think by leaving a comment below!