2012 January | Well Heeled Blog

Giveaway: Stiletto Hardware Memory Foam Cushion for High Heels

Written by WellHeeled on January 31, 2012 · 9 Comments

It’s no secret that I love high heels (exhibit A: name of this blog). I stand in them, I walk in them, I even dance in them (exhibit B: tango)! What I don’t love, however, is the discomfort that comes with subjecting your feet to 3-inch – or even higher – heels. I’ve been a frequent user of foam inserts, so when Stiletto Hardware contacted me to try out their memory foam cushions, I said yes enthusiastically.

Stiletto Hardware makes ball-of-foot cushions for high heels and heel cushions for flats. What makes them so special is the top layer of memory foam. It diffuses pressure points and molds to your foot, making them so comfortable! Stiletto Hardware was nice enough to send me a sample pack to try out – and WOW. These cushions make a huge difference, especially in heels that have a very thin insole and when I am on my feet for a long time.

Other great features include:

Sophisticated and thin design
Antifungal and anti-microbial
Made with Poron
Strong adhesive backing but also easy to remove without ruining your expensive shoes
Made in USA

Stiletto Hardware has also agreed to sponsor a giveaway. One lucky reader will win a prize package of 3 pairs of insoles (one of each product that Stiletto Hardware currently offers). Please click on the permalink and enter via Rafflecopter.

Dollar In, Dollar Out: What’s The Best Expense Tracking App?

Written by WellHeeled on January 30, 2012 · 29 Comments

For the longest time, I thought I didn’t have to keep track of my spending, I told myself that I make a decent living, I save for retirement, I don’t spend wildly… and it just seems so restrictive to have to keep track of every penny that comes in and out of my wallet.

Incidentally, I’ve always felt that way about calorie counting – hated it, didn’t see the point of it, assumed my metabolism would just take care of everything. But as my dresses fit a little more snug and jeans hung a little tighter, the truth became clear. It’s all a matter of mathematics, and I’m not going to reverse the trend without some serious work. About two weeks ago, after I heard about the app MyFitnessPal through Newlyweds on a Budget, I decided to give it a try. I started counting every bite and every sip. Instead of finding the tracking restrictive, I love knowing exactly where my calories are “spent” on.

The very act of typing in numbers keeps me accountable and keeps me informed, and that’s what I need with my spending as well. After all, saving money is all about math as well – dollar in, dollar out. And it’s mightily hard to control or reduce dollar out when I don’t have any idea how much dollars are going out and what they are going out for. That’s why I am on the hunt for a good expense tracker app, something that does for dollars what MyFitnessPal does for calories, if you will.

I’d prefer the app not be linked to my checking or credit card account. I like Mint’s interface, but at this stage of my spending, I need something that forces me to manually enter the numbers.
I’d like the app to be able to separate my spending into different categories, and if it has preset categories, allow me to add my own. Little charts and graphs to display the data are always appreciated, but I don’t need anything too crazy.
I’d like the app to track income input as well – ideally also support the capacity to separate out taxes, pre-tax medical premiums, etc.
There are lots of great paid apps out there, but ideally the app is free. (I think my experience with my MyFitnessPal spoiled me).

Some apps, both paid and free, that I am considering are: ExpenseTracker, iXpenseIt, and Buxfer.

So, I’m asking for your help. Please share in the comments what you use and what you like (and what you don’t like)!

10 Ways to Deal with Your Wanderlust When You’re Short on Time and/or Money

Written by WellHeeled on January 27, 2012 · 18 Comments

I’ve been bitten by a serious case of wanderlust lately. Part of it is the fact that I have not flown since last October, and another part is that I just really cannot wait until our honeymoon to Buenos Aires. What to do, what to do, when you are itching to travel, but cannot (at least not yet) because of lack of resources, whether that be time or finances?

Here are 10 ways to deal with that wanderlust when you’re short on time or money.

Attend a travel convention. That’s what I’m doing this weekend – the Los Angeles Time Travel Show is here, and if I can’t head to London or Barcelona at least I can listen to Rick Steves TALK about the wonders of Europe. (If you want to go, use the code “LATR” or “LATO” for $2 off the $10 admission tickets).
Set up a dedicated travel fund. If one of the obstacles to a trip is money, there’s only one way to resolve that obstacle – with money! Putting dollars away in a specific fund help us prepare for a big vacation – our Galapagos Fund has grown from a twinkle in my eye in April 2010 to $10,000+ now.
Subscribe to well-written travel catalogs with lots of colorful photos and detailed itineraries. OK, this might only make your wanderlust that much more powerful, but it’s a fun way to torture the traveler in you! I especially enjoy Wilderness Travel’s paper catalog (it’s free, and they don’t spam). I have one from last year that I’ve read, cover-to-cover, more times than I can count on my fingers.
Read blogs of folks who have visited the destination of your desire. I am a frequent visitor of this Galapagos trip blog. I try to tell myself that my time will come.
Plan out an entire trip in your head. From airfare, to specific hotels and restaurants, to entertainment options, to local transportation. Maybe keep a few spreadsheets detailing the budget breakdown of what such a trip will cost. Go back to #2. Repeat as necessary for all the trips that you want to take. Thanks to my penchant for researching and planning trips, I now have the itineraries of Turkey, Paris, New Zealand, and a several other places floating around in my head. Hmmm.. Oops? (I can’t be the only one who does this!).
Host a foreign exchange student or foreign traveler. If you can’t go to Rome, you can bring someone from Rome to your home! If you are ready for a longer-term commitment, serving as a host for a foreign exchange student would be a great way to learn more about that person’s culture. Or sites like couchsurfing will let you play host for a few days.
Pretend to be a tourist in your own city. So many times we forget or overlook the tourist attractions in our own cities, attractions that real tourists pay good money to be able to visit! I’ve been guilty of this. So play tourist for a day – maybe even ask someone for directions.
Go on a day trip. Leave early, come back late means that you save on the hotel costs but can see visit someplace a little bit different from the day-to-day. If you are in Los Angeles, you can make it to Santa Barbara on a day trip. If you are in San Francisco, Monterey (and the famous aquarium) is doable. If you are in D.C., the wineries of Charlottesville are 2.5 hours away. If you are in San Diego, land of perfect 72 degrees, WHAT are you complaining about?!
Open a rewards credit card to pay for your hotel or flights. Done and done. Of course, only do this if you can pay off your balance in full every month.
Drink wine and pretend you are in Paris. Enough said.

Share in the comments! What effective, unusual, wacky ways do you try to deal with your wanderlust, when you just can’t get away?

Save vs. Splurge for Wedding Night Hotel

Written by WellHeeled on January 26, 2012 · 24 Comments

What do you do when you realized that you picked a really popular area to get married during the start of the tourist high season? I find myself in that position, as I scour the interwebs for a hotel for our wedding night / mini-moon. It turns out that Santa Barbara - one of my favorite cities in the summer, while a lovely place to get married, is also extremely pricey if you want to stay in a nice hotel to celebrate the start of that marriage. All the hotels and bed-and-breakfasts that come highly-rated cost at least $250+ a night, plus taxes and fees. The places that are a little cheaper, at between $150-$200, have some fairly uncharitable reviews that give me pause. There are some lower-end motels or hotels that are around $150, but I am not THAT frugal.

Still, as much as I enjoy a luxury hotel stay (I do), and as much as I understand that weddings / honeymoons are probably not a time to skimp on accomodations (I do), it pains me to think about spending $300+ when I’ve stayed at gorgeous properties for half that price. On the one hand, I suppose it’s better to just spend a little extra to guarantee a good experience, but on the other hand, it’s so much money. Thus began an internal battle between the personal finance blogger and the bride-to-be.

But then, inspiration! I started looking outside Santa Barbara… and found that by staying in a seaside town a few hours north instead of the seaside town where we are getting married, we will save up to $100/night for a hotel of comparable quality. Instead of $250/night, we can pay $150/night. Three nights stay means a saving of $300, which will be enough to pay for some horseback riding, a nice dinner, and event a jaunt to the Hearst Castle. So here’s our plan: after our day-time wedding, we are going to drive up the Pacific Coast Highway and check into our hotel for a 3-day mini-moon before our official honeymoon to Buenos Aires the week after.

What would you have done in my case? How much would you spend (or have spent) on your wedding/honeymoon hotels?

Business Insurance Experts Premierline Direct

Win Free Book – When Life Strikes: Weathering Financial Storms

Written by WellHeeled on January 25, 2012 · 2 Comments

Life – and finances – can get pretty tumultuous through the course of 10 or 20 years. What do you do when the inevitable problems crop up? To that end, I am giving away a free copy of Cal Brown’s When Life Strikes: Weather Financial Storms.

From the publisher…

About the book: There are certain life events that are as stressful as they are unavoidable. All of these events may not happen to every individual, but nonetheless they each cause emotional heartache — and financial headache, and Cal Brown has seen them all. Thanks to his years of experience as a financial planner, coupled with various tumultuous events in his own life, Cal is able to give general guidance and specific financial tips to help ease the stress of these inevitabilities. When Life Strikes is an excellent resource for coping with unexpected tragedies, learning how to prepare for them, and looking ahead for the sake of your spouse, children, and personal future.

Author bio:Cal Brown, CFP, MST, has over twenty-five years of experience in the financial services field. He received his master of science in taxation (MST) from American University in Washington, DC, and his undergraduate BSBA degree from the University of Arkansas. Cal is currently an adjunct professor in the MST program at American University, teaching estate planning. Cal is vice president of planning for The Monitor Group in Virginia, a wealth management firm working with over 250 clients and managing approximately $500 million in assets.And if all that isn’t enough, Cal also plays guitar in a classic rock cover band in northern Virginia.

If you’d like a chance to win the book, please click on the permalink to this post and enter via Rafflecopter. Good luck!

Zooey Deschanel: Responsible Celebrity Spender

Written by WellHeeled on January 24, 2012 · 24 Comments

The news is full of stories of famous people behaving badly, especially in financial matters. How else would you have actors and former sports players filing for bankruptcy and putting their homes into foreclosure? Well, Zooey Deschanel can teach all those financially-free-wheeling stars a thing or two! The actress in “New Girl” and “500 Days of Summer” apparently revealed her earnings and spending patterns in a divorce filling – showing the world that she’s a responsible spender and saver.

According to information leaked to TMZ, Zooey makes $95,000 a month (or close to $1.2million a year). But her expenses only average $22,500 per month, less than 25% of her gross income. Some of the expenditures included in that figure are her clothing at $2,000 a month, eating out and groceries at $1,500 a month, and $600 in laundry and cleaning. Plus, Zooey also donates $1,500 a month to charity. Thanks to her earning prowess and living-below-her-means-habits, Zooey has accumulated $1.5 million in cash, plus another $2.3 million in stocks, bonds, real, and personal property. She is setting herself up very nicely for life, and it’s good to see a star preparing for the future. The divorce filings also show that Zooey only has 3 credit cards (quite a bit fewer than me and some of my readers), and is debt free.

I’ve liked Zooey Deschanel ever since I saw her movie the 500 Days of Summer, but this filling confirmed it for me. She’s a personal finance blogger’s new celebrity crush! Given that Americans have a pretty fervent love affair with celebrities, I wonder if famous people can ever make “saving” and “investing” cool, like the way that a bag that they carry or cars that they drive are cool. I’m not going to be holding my breath… but you know never know!

Gong Xi Fa Cai, Hong Bao Na Lai

Written by WellHeeled on January 23, 2012 · 2 Comments

Saturday was the Chinese New Year, according to the lunar calendar, so Happy Year of the Dragon to everyone! One of the best parts, aside from the food, the fun, and the family get-togethers of Chinese New Year is the cold, hard, cash. Traditionally, parents, or elders, would give red envelopes stuffed with money to their kids for the New Year. Thanks to some relatives who were visiting this year, we received a little bit extra in our red envelopes. So with the $400 (woo!) we got, we promptly increased our Galapagos Fund to $10,400.

By the way, the title of this post is a cute play on the New Year’s greeting in Chinese: “Gong Xi Fa Cai” means “Wishing you a prosperous New Year”, and “Hong Bao Na Lai” means “Red envelope, please!” The two sounds would rhyme in Mandarin. It’s kind of a tongue-in-cheek response.

I know that many Asian countries (Vietnam, Korea, and Japan come to mind) have money-giving traditions during the Lunar New Year. I’m wondering if there are any other holidays where a giving of money takes place. Share in the comments – I’d be really interested to know!

image source: 123newyear.com

How to increase your chances of landing your dream job

Written by WellHeeled on January 21, 2012 · 1 Comment

This post is sponsored by RBS Insurance, a leading British general insurer.

Despite the doom and gloom in the media about how jobs are increasingly hard to come by, the fact remains that if you maintain a positive outlook and take the necessary steps to stand out from the crowd, you’ll find the right opportunity sooner rather than later.

There are a number of simple, logical moves you can make to increase your employability — things that will help you rise from the mass of identical applicants and straight to the top of the pile.

Tailor your covering letter

Having one well-written ‘catch all’ covering letter will put you ahead of a lot of the field — but to really stand out you’ll need to tailor a new covering letter for each application. The effort won’t go unnoticed and it’s an easy way to score a few vital points before your prospective employer has even got to your CV.

Preen your CV

It’s good to talk yourself up and demonstrate any relevant experience but it’s also important to be concise. Recruiters have a lot on their plate on any given day, so if they come across a four-page CV you can bet they won’t make it through all of it. Try and get yours down to a single page if possible or a couple of pages at most — that’s still enough to entice potential employers with the pertinent information.

Get smart

It might sound like a no-brainer, but if you manage to land an interview dress smartly for the occasion. You may well feel like ‘smart casual’ will be good enough but unless you’ve been told that specifically by the recruiter themselves, don’t take any chances. Don’t turn down a great chance to make a good impression from the off.

Read up

If you’re heading to an interview, don’t expect to be able to just turn up and dazzle them with your natural wit and charm. It’s vitally important that you’re able to demonstrate knowledge of the company that you claim to want to work for. An early question is likely to be: ‘Why do you want to work here?’ If you can’t answer that well, then you may as well not turn up at all.

Get ahead

A sure fire way to stay two steps ahead of the majority of your competition is to gain relevant experience in your chosen field. For instance, if you’re having trouble landing insurance jobs, scour the internet for news of work placement opportunities or internships within insurance companies. Not only will it look fantastic on your CV, but you’ll also make valuable contacts or even put yourself in the frame for permanent work at the company that takes you under its wing.

How Many Credit Cards Do You Have?

Written by WellHeeled on January 18, 2012 · 31 Comments

Credit cards, some people love them, some people hate them. For some, even one is too many, and other apply for 6+ cards every year (see: credit card points bloggers). On Twitter there was a thread with Brad at Enemy of Debt about the number of credit cards that people have. That got me curious. Before 2011, I only had one credit card and in fact wrote about how happy I was that I only had one card. Then I started reading travel/credit card points blogs, and realized how with a little bit of effort, I can get some cool travel experiences for not so much money. Now I have 5 credit cards:

Citi Thank You Card, no annual fee
Chase Hyatt Visa, $75/year fee
Chase British Airways Visa, $95/year fee (looking to cancel this one soon)
American Express Starwood Preferred Guest, $65/year fee, first year waived
American Express Hilton Honors, no annual fee

I just applied for my sixth card, the Chase Sapphire Preferred Visa for it’s 50,000 points bonus and the Ultimate Rewards network. Because I pay for almost everything on credit cards, I look for ones that will give me great sign-on bonuses and everyday rewards. To make them worth it, I practice SAFE credit use – I pay off my balance every month (OK, I’ve forgotten once or twice, but I call the credit card company to request a courtesy refund of the late fee, which I almost always get) and I keep a low credit utilization ratio. That’s not hard, because my total available credit tops $40,000, and the most I ever have on there is maybe $5,000 – and that’s with a few big purchases – before I pay off the monthly balance.

I wouldn’t keep signing up for cards if I expect to take on a loans in the next two years, but since I am still several years off from buying a home, and my credit is strong, I can take the credit inquiries that card applications “cost”. To keep track of my cards, I have an excel spreadsheet with the card’s name, the minimum spend requirement to hit sign-on bonuses, and the due dates. In addition, I try to use all of them at least once every few months so that I have some sort of activity on there.

How many credit cards do you have? How many do you think is too many?

Seeking: Words of Wisdom for Newlyweds

Written by WellHeeled on January 18, 2012 · 21 Comments

Most of the folks in the personal finance blogosphere have probably heard about J.D.’s announcement on Get Rich Slowly. At last view, the post had over 350 comments. I don’t have anything of value to add, except to say that I wish the best for both J.D. and Kris, and also admit that I was caught off guard by how heavily this news hit me.

I am getting married in June. I said yes to the dress and CB got his ring and we are planning out our honeymoon. On our wedding website, I talked of us embarking on this “grand adventure called marriage” together. Then I realized, this institution / commitment / relationship called ”marriage” is an adventure… in a strange land that we have never been to. We talk about what we think it will be like, what the terrain may be, the hills and valleys. We have some maps, but we don’t know how accurate those maps are or whether new obstacles will sprout in the future, blocking off roads that we thought we can navigate. We have a compass, but that compass might break or be lost on the way. We’ve heard others’ stories about their journey to that strange land, but we know that while the same wind, streams, and animals may exist for us, but their presence or dissappearance will be one we have to experience on our own.

So, there is a lot of excitement about this adventure together. But there is trepeditation as well. Not of who we are now, or how we feel about each other now, or our commitment now, but of who we will be in 10 years, 25 years, 50 years. Who we will become. How we feel about each other then. Our commitment through trials that we have not yet experienced and indeed, probably have not even foreseen. There are many studies out there on the financial consequences of divorce. And as this is a personal finance blog that might be what I should talk about. But money is money – it’s just money – I have confidence in myself that I can make enough. Love, trust, a shared sense of history – that’s a whole another thing. That’s what I am afraid to lose to an unhealthy marriage or a divorce.

My fiance and I met ten years ago in high school, and we have certainly changed during those ten years. I have no doubt we will change during the decades to come. In fact, two months after we get married I will be starting my MBA program and CB will likely be in another graduate school program in another state. People change, goals change, health and finances change, distances change. What we want out of life might change. How do we grow together and not apart?

I’d like my readers, especially those of you who have been in long marriages or have reconciled from conflict or separation, to impart some words of wisdom for this pair of soon-to-be-newlyweds.

Income, Goals, and What Is “Enough”

Written by WellHeeled on January 16, 2012 · 32 Comments

That’s the big question, isn’t it? What is “enough”?

When I asked about saving for a down payment while still maintaining contributions to retirement accounts and fulfilling our travel dreams, StackingCash, a long-time reader, commented that my income isn’t enough for my goals. When I read that comment, I was taken aback at first, I thought “I make OK money, and our goals aren’t that outlandish!” But StackingCash is right. We don’t have “enough” income to fulfill our goals.

Don’t get me wrong, I recognize that in a country of 8%+ unemployment and even higher underemployment, many folks are struggling. We are lucky in many ways. Adding up salaries, bonuses, overtime pay, and some freelance work, our 2011 gross household income hit $140,000. That’s the highest number it has been and will be for at least a few years, given that we are both planning on going back to graduate school this year.

That number is also higher than many families’, including CB’s family. It is apparently high enough to place us into the top 25% of household income in the country. But that number is not so high when we look at all things we need and want to pay for, now and in the future. I don’t say this to complain, “oh poor us.” We are thankful for what we have, but I also know that to fulfill our goals for the long-term, we need to make more. The bottom line is, we need to focus on progressing our careers and increasing our income. With two professional careers in relatively-well-compensated (but certainly not the most lucrative) fields, hard work, some luck, and ingenuity, I don’t think it’s unrealistic for us to make a combined gross household income of $250,000-$300,000 in our peak earning years. Also, $300,000 in 10 years will not mean the same thing as $300,000 now.

Again, the question: How much money is enough? Doubling our income to $280,000 or beyond for several years would make a material change in our lives: more aggressive retirement savings, a bigger down payment and quicker mortgage payoff, money to invest in rental properties, more travel (certainly more luxurious travel!), and more resources for helping our families. Imagine if CB and I can consistently max out all of our retirement accounts – 401K/403b and Roth IRAs – and have enough money to pay off our home and go on big travel every year? Or if we can send our parents on around-the-world cruises and fly them first class. Imagine what an amazing gift that would be.

On the other hand, I’m sure that I have readers who do make $300,000 who have obligations and goals that require an even higher income. I remember when we made $70,000 combined a couple of years back, I was laid off for part of the year and CB haven’t gotten a full-time job yet, and I was driving myself crazy trying to figure out how to make sure both of us were still on track and saving for retirement. Now money is less tight, and we’ve been able to save more for a few big goals and spend more on some little things, but it’s quite amazing how easily we have adjusted to having more money. What if we do make $300,000 in 10 years, what if our wants increase in tandem with our income? What if instead of staying at a hostel we now are only comfortable at 4-star hotels? What if instead of a 3-bedroom home in the mid-$400,000s, we want a 4-bedroom home in the high-$900,000s. What if I become addicted to Louboutins? (tongue-in-cheek… kind of).

Will our income be enough to accommodate our goals and wants then? Wants are infinite. Financial resources – for most of us – are not. I want to be very careful that we realize that money is a means to an end, and not the end itself. And that – this is very important – not to confuse our income with our self-worth. Not to let income determine how we relate to each other, especially not in our marriage. It’s a balancing act: to strive to make more money but also to recognize that just more money isn’t the answer to everything. It’s a balancing act that we are trying to work on, every day.

How much money do you make now (feel free to comment anonymously), and how much you think you’ll need to make to have it be “enough”?

Are Travel Flash Sale Sites Really Cheaper? Do Your Homework Before You Buy

Written by WellHeeled on January 11, 2012 · 9 Comments

As someone who (1) loves to travel, (2) enjoys luxury, and (3) has a budget, I was so happy when travel flash sale sites started popping up a few years ago. These sites host “flash sales” on hotels, cruises, vacation packages, or even airfare. The sales last for a few days and is often final sale, and in exchange consumers are supposed to get a deal that’s much better than what is available on the travel vendor’s own website. But don’t assume that you are automatically getting the best price. In some cases, you won’t be saving money going through travel flash sale sites – you’ll actually be paying MORE by going through a flash sale site.

Case in point

Last night, I was looking up hotel options for our honeymoon to Buenos Aires, Argentina. Jetsetter, Gilt.com’s travel site, features several hotels in the city. Palermo Place caught my eye – Jetsetter offers me a price of $235/night rack rate. Sounds pretty good, right? The picture below is of Jetsetter’s checkout page – as you can see, 4 nights over a weekend in May will cost $1,132.

But wait! On Tripadvisor.com, Palermo Palace is advertising a 30% off special, which would make it cheaper than Jetsetter. So I input the same dates, the same room type, and same number of nights at the hotel, and it turns out that booking directly with the hotel would only cost $796, $300+ cheaper than the Jetsetter price. $300 is no chump change, especially in Buenos Aires where it’d be enough for several very nice meals, a bunch of leather souvenirs, and more than a couple private tango lessons!

So this is what I’ve learned - always, always do your homework. It is easy to assume that travel flash sale sites have the best deals. After all, that’s what they are there for. But it only takes a few minutes to do a quick search on the Tripadvisor, the hotel or cruise website, and Google. You might discover that the so-called deal isn’t that great of a deal given what other discounts or specials are out there. Or, you might confirm that it is truly too good to pass up (our proposal weekend bed & breakfast was $149 on Living Social Escapes but $280+ on the hotel’s website). In that case, click buy and enjoy the trip!

Do you use travel flash sale sites? Have you found that they are more or less expensive than other sources?

Giveaway: Ghirardelli Gourmet Milk Chocolate Gift Packs

Written by WellHeeled on January 9, 2012 · 56 Comments

Is there anything in the world that’s better than rich, indulgent chocolate? (OK, maybe, but not many…).

That’s why I’m so excited to be working with Ghirardelli on a giveaway to promote their new Gourmet Milk line of “upgraded milk chocolate.” Two lucky winners will receive a gift pack includes 4 bars of each of the following flavors: Gourmet Milk Creamy Devotion with rich and creamy 32% cacao milk chocolate, Gourmet Milk Sea Salt Escape with sea salt and roasted almonds and Gourmet Milk Coconut Rendezvous which features toasted coconut flakes. That’s 12 bars in a gift pack!

One of my favorite things to do is to kick back at the end of the day with a good book, a cup of tea, and a bar of chocolate or a few pieces of truffles – purchased with my chocolate budget, of course. It makes me feel positively indulgent when I do that, and it’s much cheaper than going out. Besides, life is just sweeter (pun intended!) when it includes chocolate. And you better gather ye chocolates while ye can – after all, our favorite cocoa treats be as expensive as caviar in 20 years.

Please see the Rafflecopter form below (click here to see the permalink) for ways to enter.

a Rafflecopter giveaway

Spending Goal: $2,000 On My Wardrobe in 2012

Written by WellHeeled on January 5, 2012 · 31 Comments

Most of personal finance is about how to earn, save, and invest money. Yet, spending money with intention is just as important.

Bottom line, I don’t think there should be guilt associated with responsible spending. That is why I have made a goal of spending $2,000 in 2012 on something that is important to me: a wearable, chic, cohesive wardrobe. The $2,000 will cover everything related to editing, building, and refining my wardrobe, including alterations, shoe inserts, bag repairs, jewelry and accessories, etc. I am going to try to limit myself to $150/month, and have a month or two when I can make an extra purchase if I want – such as when I head to Buenos Aires, Argentina in June.

My favorite stores include Banana Republic, Gap, J. Crew, Nordstrom Rack, and TJ Maxx. I also check out sample sites Ideeli and Rue La La quite a bit. Before I make any purchases online, I go through Ebates so I can get 2%-5% cash back on my purchases. That money goes into my Funny Money account. I am a consummate sales shopper who tries really hard to look for at least a 50% discount on the original retail price before I pluck down my credit card. That’s how I am confident that I can get attire that is of good quality (wool, silk, and leather, fully-lined, etc.) at fairly reasonable prices. But at my planned spending limit, Louboutins are definitely out.

Why spending goals are important

When I first started blogging, and even to this day, there’s a level of guilt associated with buying things for myself – things that are not considered “necessary” or “important” (i.e. non-educational items). But we all make money to spend it – what matters is how we spend and on what we spend. And the only right answers to those questions, of course, is responsibly and joyfully and things that we value. With a spending goal, I can structure my expenses so that they are guilt-free, planned, and carefully considered. If I didn’t have spending goals, I may very well STILL spend $2,000 on clothes and shoes. But my purchases wouldn’t be nearly as fun or as planned.

(Also, a confession: I’ve tried to try (and like) the minimalist thing, and I decided that there is a difference between my 3 black wool sheaths, and I do need a 4th. Oops!)

Do you have spending goals for 2012?

2012 Goals: Big Changes Are A Coming!

Written by WellHeeled on January 4, 2012 · 12 Comments

2012 will be a year of big changes for me, personally and professionally. I am heading back to school to pursue an MBA. I will be getting married and then I will likely embark on a long-distance marriage. I’ve thought about the things I like to accomplish this year, and I haven’t gotten them all down yet. All I know is that things will be in transition. I am excited about what the year will bring, and I feel very lucky.

Financial

Income: I am setting a goal to make $60,000 gross, including $25,000 in freelance/blog income. Why $25,000? That number is what I expect my annual MBA living expenses to be. When I go to school, obviously I will be giving up my full-time employment and the corresponding paychecks. The prospect of having NOTHING coming is frightening. But if I can make around $2,000 a month, I can support my own living expenses during my time in school. This means I will be able to reserve my savings for tuition or a future down payment. And that would make this personal finance blogger very happy. $25,000 is a pretty big stretch for me, but I know this goal is possible and I believe it’s a not-unrealistic-goal, as long as I devote the necessary time and attention to it.

Saving: In terms of saving money, our goals (and plan for executing said goals) are fairly simple. CB and I both aim to max out our Roth IRA at $5,000 per person or $10,000 total. For 401K, I am contributing 25% of my base salary and CB is contributing 10% of his salary to the 401K. I will also contribute ~$1,400 to my SEP IRA after the taxes are done in April 2012. That means we are going to save $20,000+ for retirement in 2012, depending on when we leave our jobs for school.

Spending: This ties into one of my blogging goals below, but I’d like to spend $2,000 this year (or around $150 a month) in pulling together a well-edited, professional wardrobe. I have many good pieces, but no coherence. Some of that money will go to nice suit (or two), some for heels, and some for bags.

Blogging

Giveaways: I love hosting giveaways, so I have a goal of hosting at least ONE giveaway every month of the year. In fact, I have a giveaway (hint – it will be something sweet) coming up next week. I just got the new widget Rafflecopter, which will make administrating contests and counting votes so much easier. If any sponsors/PR folks are reading this, please email me! If I think my readers will enjoy your product or service, I would like the chance to feature it.

Facebook: Yes, I have neglected Well Heeled Blog’s Facebook presence. Fortunately, I have finally gotten a vanity URL (http://facebook.com/wellheeledblog), and I have recruited a very capable and talented individual to handle the back-end of the blog administration. And get this – he will work for FREE! Haha. Can you guess who?

More involvement with bloggers: I’ve said again and again that the best thing blogging has given me are the relationships I have built. Now I don’t expect to become BFFs with every blogger I encounter (because that would be weird), but I have made some of my very good friends thanks to this blog. In fact, two of them and their significant others will be coming to my wedding. That means 10%+ of my entire wedding guest list originated from this blog. So I’m going to make a goal of being a little more open to meeting other bloggers, maybe even attending the 2nd Annual Financial Blogger Conference in Denver, CO, and be a more active member of Yakezie and Wisebread communities.

A second blog: I plan to start a personal style blog. It will not be connected to this blog, although I expect some money-related materials might sneak in now and then. My goal is to get this blog up and running by February. I love writing about personal finance, but I also would like a dedicated space to talk about my goal of becoming a more confident and stylish dresser at work without feeling like I’m a shopping enabler. I plan to be a little more public with the style blog, and I look forward to putting my wedding pictures up there.

Personal Goals

Travel: Here are some planned travel – business trip to Las Vegas in February, road trip along Pacific Coast Highway and then honeymoon to Buenos Aires, Argentina in June, perhaps a quick jaunt to China in July? I also want to do plenty in Southern California travel while I am still in the area.

Annual Goals vs. Monthly Goals

Written by WellHeeled on January 2, 2012 · 10 Comments

Happy New Year everyone! 2012 is here, and along with the new year comes a rash of goal-setting. I’ve been actively setting annual goals and keeping track of my progress for the past few years, and I know many bloggers also have monthly goals. So here’s my question – are annual goals more effective or are monthly goals more effective?

Get Rich Slowly has said that annual budget goals are the best, because people who construct annual budgets take into account the irregular expenses (potential car accident, Christmas presents, etc.) that can knock a monthly budget off-kilter. On the other hand, monthly goals can help you keep track of your progress so that you are aware of any slip-ups and can quickly correct your course.

Of course, annual goals and monthly goals don’t have to be mutually exclusive, so perhaps the best approach incorporates both. In the past, I’ve focused exclusively on annual goals, but I’ve realized that it’s a good thing to have some smaller, more discrete goals on a monthly basis. I do that for my job, so why not for my personal finances? Krystal at Work is a pro at keeping track of her monthly goals, and I find that inspiring. Given the fact that I have some big stretch goals in the works for 2012, I need to keep an eye on my progress, month-in, month-out.