Carnival of Personal Finance: Cupid Tries to Teach Personal Finances

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Ever since he was a little boy, Cupid loves L-O-V-E. Since then, the son of Mars and Venus has grown his penchant for shooting love arrows into the world’s leading matchmaking business. Every heart has a lock, but a Cupid’s arrow can pick that lock [Taking Charge]! Of course, Valentine’s Day is Cupid’s favorite holiday – lavish or frugal [Bargaineering] Cupid celebrates all aspects of this holiday.

As a true romantic at heart, Cupid was dismayed to see that many of the love matches he made crumbled under the pressure of every day life. “How sad it is that true love dies because of bad money decisions [Moolanomy] or misaligned financial priorities [Military Wallet], or lifestyle deflation [Nicole and Maggie].” Cupid lamented.

Cupid decided to talk to his parents, Venus and Mars, about the key success factors [Squirrelers] to financial health and love. “Couples need to fight fair about money disagreements [Matt About Money] and share broad financial goals – staying debt free [No Credit Needed] or saving for retirement [Retire Happy Blog],” Venus said. “Yes,” Mars agreed, “big issues such as a 15-year mortgage [Watson Inc] or a 30-year mortgage, how to save [Think Your Way To Wealth], deciding to invest or paying off credit card debt [Clear Choice Credit Card Blog], or figuring out car taxes [Debt Reduction Formula]. There might not be one right answer, but it’s important for both spouses to be on the same page.”

Cupid nodded. Whew, it sounds like love isn’t just about strawberries and chocolates and weddings [Blonde & Balanced]. Then, suddenly, he had an idea. “I shall teach personal finance to everyone [Credit Sesame] so they will be happy AND financially comfortable!”

For his first class, Cupid decided to focus on a few test couples to see if he can be a good financial advisor.

First up: Romeo & Juliet

Oh, Romeo and Juliet were in a bad strait. Their families thought they were dead, and no one will believe that they are actually alive. Instead, they were accused of identity theft [The Smarter Wallet] and with all the legal untangling that’s going on, all they can do is argue. “You don’t know how to work!” Juliet complained, “since this identity theft business [Credit, Eh] all you do is go out and play in sword fights. At least you can do something useful [Money Cactus], like paid surveys [Promo Code Center]. You don’t even cook so we can’t save on food costs [Cash Money Blog]!”

“But I serenade you with a guitar [EEMusings]!” Romeo retorted. “Besides, ow am I supposed to get a job when I can’t even get a checking account?” “Er, actually, you can!” Cupid interjected, “you can open a checking account when you are in ChexSystems [Yes, I Am Cheap]. And to better manage your money, you can check out the best money management software of 2011 [One Money Design].”

Romeo and Juliet looked at Cupid and in unison yelled, “We are from 14th century Verona. We don’t have software!” “Just wait for technology to change the way you buy [Personal Cents],” Cupid said confidently. “Just wait a few centuries.”

Second couple: Peter Pan and Wendy

This couple has a pretty good income – Peter Pan runs Neverland Tours and Wendy is a well-known children’s writer. But they just cannot stop fighting about how to invest their considerable savings [Do Not Wait]. Peter wants to time the market [Fire Finance] and can stand market volatility [Control Your Cash]. Wendy prefers to buy and hold dividend stocks [Dividends Value] and couldn’t care less about Jim Cramer [Growing Money].

Wendy wants to buy long-term care insurance [Funny About Money], but Peter says that they will never grow up, so why bother. Peter wants to get into  forex trading [PT Money] and invest in individual stocks such as AOL [Intelligent Speculator], but Wendy is gun-shy. She prefers to join a investment club [Buy Like Buffett], while Peter Pan is a go-it-alone guy. Peter Pan wanted to buy expensive iPhone apps [the Dough Roller], while Wendy thinks that’s a waste of money.

They even fight over the little stuff, like what to tip for bad service [Free Money Finance] or when to file for taxes [Gen Y Wealth], or even what type of tax return product to use [Digerati Life]. They even disagree about non-money issues, such as Groupon’s Super Bowl ads [Consumerism Commentary]. Ay carumba!

Peter Pan and Wendy both want to stash more cash [Compounding Returns], but Cupid couldn’t make heads or tails of their arguments. Cupid finally sent them home with some good investing books [The Personal Finance Playbook], some tax information [A Gai Shan Life] and a guide to taxable vs. nontaxable income [Net Worth journey].

Third couple: Snow White & Her Prince

Snow White and her Prince fight because of a difference in spending. Snow White has started her own beauty company (which is doing great because of supply and demand [Money Thinking]), while the Prince makes money online [Studenomics]. Everything is great, except Snow White’s penchant for buying very expensive red lipstick and Netflix [Money Beagle]. The Prince says Snow White spends too much and is giving them bad credit [CardHub.com], but she insists that she needs to beat the winter financial blahs [Modern Gal] and that a budget is worthless [Live Real, Now].

“Well I want to retire by 40 [Retire By Forty]. We need to save money if I can do that. And what if we have a baby and one of us wants to stay home?” said the Prince. “Snow White doesn’t even compare auto insurance quotes [Money Smart Life]. And she never cares about my 10 tips to save money [Budgeting In the Fun Stuff]! I am so afraid we will end up in bankruptcy [Personal Bankruptcy Blog].”

“Ah, so you are losing your second income? there are ways to prepare [Rabbit Funds],” Cupid interrupted. “You can also use prepaid cards [Prepaid Card 123] so you don’t run the risk of overspending. And you need to plan in case one of you gets laid off [Len Penzo].”

Prince said, “I work hard too. I go through a lot finding good freelancers on Odesk [Money Help for Christians]. I even adjust my schedule to save money [The Financial Student]. I try to find the best credit card from Chase [Free From Broke] and I make my own group coupon [Blogging for Change].”

Snow White paused, then said, “well, I use cash back credit card [Credit Donkey Tips] to buy my lipsticks! Red lipsticks represent the type of person I want to be [Little Miss Moneybags], and you can’t take that away!”

“Given Snow White’s history of getting into life-threatening situations,” Cupid said, “perhaps you should consider estate planning [Bucksome Boomer].” At this, both Snow White and the Prince left in a huff. Ay, teaching personal finance is harder than Cupid has thought!

Fourth Couple: Pongo & Peridita

Humans are too difficult to counsel. Cupid, thought, so may be canines are easier. So he decided to help Pongo and Perdita. Perdita wants to go back to school to become a show dog, but Pongo debates whether school is a good investment [Good Financial Cents]. “We have 99 puppies,” Pongo said, “if you go to school the debt collectors [Wallet Blog] will come after us! Besides, how about our travel plans [Help Me Travel Cheap]? We wanted to visit Canada, remember?”

Canada! Cupid snapped to attention. “I can talk to you about RRSP basics [Canadian Finance Blog]!” But Pongo and Perdita didn’t hear him. They were too busy discussing their next step: invest in Lending Club [My Dollar Plan], figure out arbitrage techniques [Darwin's Money], bring in non-taxable income [Spruce Up Your Finances], remodel their farmhouse [Mom Vesting], and then they will have enough money to travel to Canada!

The End

After an exhausting four days of trying to counsel these couples, Cupid realized that what he does best is to shoot those little arrows of passion into unsuspecting men, women, and dogs. “I guess I should leave being a financial planner [Consumer Boomer] to the experts!” Cupid decided.

CNN Money Is Looking for Super Savers / Real Estate Investors

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One of my favorite features from CNN Money is their Super Savers / Millionaires in the Making series. CNN is taking that series to paper: the publisher is recruiting for people to feature in their MONEY magazine. [I've written about CNN's Extreme Savers before, and have always found them to be a good source of inspiration].

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According to CNN:

MONEY magazine is seeking to interview real estate investors and super savers.

Specifically, we’re looking for people in their 30s or 40s (couples or singles) who are building wealth in either of two ways: (1) limiting their spending and making a habit of saving at least 15% of their household income; or (2) investing in real estate, with a few years of experience as a landlord or in rehabbing properties for resale. In both cases, we’d like to get advice on wealth-building from people who have at least $200,000 in assets (investments, retirement accounts and/or real estate), not including the equity in their primary residence.

Participants and their families would be photographed for the article; subjects would also have to be willing to have the dollar amounts of their household income and assets published in the magazine.

If you’re interested, please send an email to gmannes@moneymail.com containing your name(s), age(s), a phone number where you can be reached, and a brief description of your situation, including household income and assets. A MONEY editor will follow up with you.

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For me, talking about personal finance is so much easier when you are anonymous, but if you fit the criteria and want to share your story, here’s your chance!

Is anyone throwing their hat in the ring?

Welcome to New Sponsor: CareOne

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Welcome to CareOne as a new blog sponsor! CareOne Debt Relief Services is a provider of debt consolidation and counseling, with over 4.5 million customers. For people who are looking for more lifestyle tips or advice, CareOne also has its own resident Debt Diva (aka Clarky Davis) who blogs about money management and frugality tips.

Remember, if you decide that credit counseling or debt consolidation is the right step for you, be sure to understand the terms of your agreement and understand what type of services a debt management company will provide. Check out CareOne to see if it might be the right solution for you.

PlaySpent The Online Game’s Challenge: Can You Survive A Month in Poverty?

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umdlogo PlaySpent The Online Games Challenge: Can You Survive A Month in Poverty?

via UMD

There are millions of Americans out of work and living in poverty today. Can you survive for a month when you only have $1,000 to your name, can only find a low-paying job, and have kids or pets to care for? That is the question asked by the Urban Ministries of Durham, a faith-based organization that provides food, shelter, and clothing to those in need in Durham, North Carolina. In collaboration with the interactive agency McKinney, Urban Ministries came up with this brilliant and thought-provoking online game: SPENT. (Hat tip to Stephanie for tweeting about this game).

PlaySpent.org

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What is PlaySpent?

Here are the premises of SPENT from McKinney’s press release:

  • Your savings are gone. You’ve lost your house. Accept the challenge to see if you can make it through the month on your last $1,000, learning quickly how changes in employment, housing, medical costs and other expenses can create an unexpected shortfall.
  • Play through a series of difficult challenges that require tough choices about work, where you live and what you can provide your family, seeing all too soon how decisions lead to unimagined consequences. Learn important facts about the condition of homelessness and the many services UMD provides.
  • Whether you quit or get to the end with no dollars or one, click “Donate to UMD” or “Get involved” and view the many ways players can contribute time and/or money via PayPal. Or play again hoping for a different outcome.

My Experience with PlaySpent

This site takes you through a month of trying to survive on little or no income – with real life obstacles that pop up along the way (Do you go to grandfather’s funeral? Should you send your child to camp? Should you pay your cell phone bill or your car note?). I played this game several times, and I pretty much failed every time. My faults came from always paying the dentist and taking the computer science class that can get me a higher-paying job. Two things that I have regarded as wise investments in my future- health care and education – have become luxuries that I cannot afford in SPENT.

In fact, the first time I tried to apply for the Administrative Temp position, I failed the typing test!  Through out different iterations of the game, I had to choose between getting a root canal or suffering more tooth pain. I had to decide if I take $10 that a family friend had given my imaginary child. I had to decide if I want to attend my grandfather’s funeral or skip it.  I had to decide if I want to pay my gas bill or my electric bill. This game is nothing if not sobering.

There are a lot of assumptions about poverty and homelessness. I think SPENT does an excellent job of making the experience easier to understand for a broader segment of the population. For too many people, poverty is not a game.

Business Insurance Experts Premierline Direct

Because Valentine’s Day is Coming Up

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And the economy is still struggling and dating isn’t free!

My newest LendingTree blog post deals with age-old dilemma of dating while broke. I think I’ve found 5 dates that are generally reasonable, either for a first date or the 1,000th date. Because even though “sitting home watching TV online with my significant other” might technically constitute as a date (if so, I’ve been on many a dates in my lifetime), you can still kick it up a notch this February. Let me know what you think – are my ideas good?

Check out my new LendingTree Blog article here:

5 Great Dates That Costs Under $50

Huge bill for burst pipes in Northern Ireland schools

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This is a sponsored guest post by HomeServe.

As the dust settles after the recent cold snap, UK companies, government organizations and residents are counting the cost of the damage. From leaking and burst pipes to broken boilers and heating systems, it seems everyone has been affected in some way by the worst weather to hit UK in years.

Northern Ireland’s educational board has had to shell out almost £1 million to rectify the damage caused by burst pipes in many of the country’s schools. At the height of the cold snap, 700 schools closed their doors to staff and pupils – and almost half of these have suffered damage.

Speaking to UTV, Democratic Unionist Party Lagan Valley MLA Jonathan Craig said that the size of the bill is “shocking”. Mr Craig added that lessons need to be learned from the cold snap – and that pipework in schools and other public buildings need to be protected with insulation and the use of heating systems.

This, of course, is advice that homeowners could also heed as they look to avoid burst pipes and plumbing emergencies in their own home.

However, even the best prepared homes can be caught out when Jack Frost strikes, meaning it’s always a good idea to be prepared for the worst. By keeping your plumbing insurance up to date, you’ll be able to call on the expertise of an expert should you be unlucky enough to suffer a boiler breakdown or burst pipe emergency.

Without this type of coverage in place, you could be left high and dry; needing to find a tradesman to carry out what could well turn out to be a costly repair. No one can predict the future but with plumbing insurance, you can at least prepare for it.

How Do You Budget for Health Care Costs?

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health care How Do You Budget for Health Care Costs?

http://www.flickr.com/photos/katerha/4481575790/

Health care costs can eat up a big chunk of your budget, when you least expect it to. I should know – just ask me how much health care services have cost me so far.

Before this year, I only sought out health services once a year, for my yearly eye/dental/health checkup. This year, however, I am not so lucky. A few months ago, I sprained my ankle, and I am still paying for it (physically and monetarily).

First, I saw an orthropedic specialist ($30 co-pay) and got X-rays (haven’t got the bill yet, but counted toward $500 deductible). I also had some lab work done for my annual checkup ($94), a prescription ($10), and co-pay for doctor’s appointment to get those tests and prescriptions ($30). Now, I am in physical therapy for my ankle, and who knows how much that will cost. Physical therapists are medical professionals, and they don’t come cheap.

Add in my new eyeglasses and eye examination ($160) and dental care, and I am just getting an inkling of the expenses that can incur. I know things can be a lot worse. I don’t even want to think about the staggering sums that should come for a major illness or a trauma.

But as I have learned, medical costs can add up even for someone who is young, generally healthy, and well-insured.

Fortunately, since last year I have been putting $100 a month into a special savings account I dubbed the Health Care Account.  This very creatively-named account has since rolled into a neat balance of $1,000 or so, enough to pay for my deductible and co-pays. I am just grateful that I have insurance and resources for me to make decisions based on what’s best for me health-wise, instead of just focusing on finances.

How do you budget and pay for health care costs?

J Crew Lady Day Coat On Sale

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jcrewladyday 300x300 J Crew Lady Day Coat On Sale

via J. Crew

Remember this post around the holidays? I was considering buying the J. Crew Double Cloth Lady Day Coat in Dark Plum. At that time, the coat was on sale for $238, $166 after discounts. After tax, it was $185. It’s a lovely coat, but I couldn’t get over the price tag. Then my size was sold out and that was that.

On a whim last night, however, I decided to check out J. Crew’s website. To my surprise, almost all the sizes and colors are back, and as of Sunday all the petite sizes are available.

The Double Cloth Lady Day is now priced at $199.99, $139.99 with the same 30% off and free shipping over $100 (use the code MUSTSHOP). Add in taxes, and I clicked “submit order” for $153.64. The original price was $298.

I passed up the Cole Haan booties I was eying in exchange for this coat. If the sizing doesn’t work out (I think I am between sizes, and sized up because I heard that the Lady Day runs small), then I will have a 2P for sale on this blog.

FYI: If you wear petite sizes, check out this excellent review of the Lady Day coat in 0P by Jean @ Extra Petite.

Seriously, though, it’s time to restrain the shopping. Since the beginning of January I have already spent $250 on clothes, but I am hoping that everything I buy will be 1. of a good value, and 2. will last me for several years. I know that Debt Ninja had some pretty strong words for no-spend challenges, but a no-shopping challenge might just be what I need.

Most of you had quite positive comments on the first post I wrote about the Lady Day Coat, so that pushed my decision along as well.

Enablers! icon wink J Crew Lady Day Coat On Sale

Yours, Mine, Ours: Money in Marriage

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Jessica Grose of Slate just published a great 5-part series on How Couples Manage Their Money. Jessica, a newlywed who has been with her husband for 4 years previous to tying the knot, is wondering if, how, and when she and her husband should merge finances.

She interviewed couples from across the country, read up on the historical and sociological sources, and tried to figure out a way that’s right for her personal situation.

Part 1: Our Newlywed Money Dilemma
Part 2: Common Potters (“combine everything”)
Part 3: Sometimes Sharers (“a combination of joint and individual accounts”)
Part 4: Independent Operators (“strict financial separation”)
Part 5: What We Decided

Hopefully I am not spoiling it for anyone when I reveal that Jessica and Mike (her husband) ultimately decided to go the Sometimes Sharer route:

For the month of January, Mike and I have been keeping track of our individual spending. He’s been tallying his expenses on an Excel sheet. I have an account at the personal-finance Web site Mint.com. We’ll have a reckoning about what constitutes a joint expense and come up with a figure that should cover these expenses. Then we’ll each contribute 50 percent of that figure. For now, we will put the remainder of our salaries into our existing individual accounts and keep our savings separate. I’ll publish a follow-up next month with all the nitty-gritty.

There are benefits and deficiencies to each of the three major ways of handling money within a marriage (alas, I haven’t seen a perfect system yet), but maybe I can cobble together the perfect system for us.

Right now CB and I are Independent Operators, which I believe is the right course of action for the vast majority of unmarried couples. I don’t foresee us continuing as Independent Operators after we marry. After we make it legal, this is how I might approach the question of money in marriage: prenuptial agreement before the marriage, a common pot after. This, I think, captures the best of both worlds: protecting yourself and each other in a fair and rational manner for just-in-case, but committing to joint financial goals while you are in the marriage -which hopefully lasts forever, of course.

I like the idea of joint goals for investments and big-ticket items, and I don’t want to be a couple that squabble over who bought the milk last week vs. this week. The biggest benefit of having a common pot, I think, is the retirement factor. Am I really going to feel secure when I’m 60 if I have $3 million stashed but CB’s pot is only $300K (or vice versa)? Doesn’t that mean, for all intents and purposes, that we have a joint retirement kitty of $3.3 million? After all, I want us to jet around the world together, and not have one partner wait at home while the other traverse the Italian Riviera alone.

Just curious, has anyone gone the prenup + common potter approach?

Cole Haan Air Talia Booties: Yay or Nay?

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I’ve mentioned before that I don’t think I can afford to read style blogs. They tempt me into shopping for things that are great for my closet, but not so great for my wallet.

Well, guess what I saw on Wardrobe Oxygen’s website? This beautiful pair of Cole Haan ankle boots staring in my face. At 40% off, they are $150 at Nordstrom. Still a splurge, but not priced so high that they are out of the realm of possibility.

The Cole Haan Air Talia booties: Yay or Nay?

cole haan air talia booties 300x225 Cole Haan Air Talia Booties: Yay or Nay?

via zappos.com

There’s a New Car Waiting For Me (If I Just Stop Being So Stubborn)

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There’s a new car smell in the blogosphere. icon wink Theres a New Car Waiting For Me (If I Just Stop Being So Stubborn)

A few days ago, my mother raised the topic of a new car. She is worried about the long distance I drive and the mileage I already have on my car. She offered to put a down payment on my current car, and then I can buy a new car and she will take over my old car.

It was a very heart-warming gesture (she’s worried about my safety! Plus, she probably knows how cheap I am determined I am to drive my car to the 300K mile mark or at least until I go to graduate school). I told her I’d think about it (and have thought about it before), but really, I am crossing my fingers that my oldie but goodie Honda will continue traipsing over 60 miles of the concrete jungle a day until it’s time for me to pack up and head for my next destination.

Still, wouldn’t it be fun to hop into a zippy Honda Fit? CB loves the Honda Fits, but since he’s heading to school in a few years as well, it just doesn’t make sense for either of us to buy new cars. (Plus, not having a car payment is great).

Best of Blogs Link Roundup: Just the Girls Edition

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In this link round-up I’m featuring some of my favorite female PF bloggers. icon smile Best of Blogs Link Roundup: Just the Girls Edition

Krystal @ Give Me Back My Five Bucks is getting braces. If you are considering getting braces, check out her post for a breakdown of costs.

FB @ Fabulously Broke is shopping smarter with a iPod catalog of all of her clothes. Great idea… now if only I can be patient enough to do it…

Revanche @ A Gai Shan Life might wear a borrowed wedding dress. Like most of the commenters, I say go for it! (The only thing I’d worry about is ruining the dress somehow).

EEMusings has won a lot of things on Twitter. Seriously, I need to enter some giveaways.

A Lotta Lettuce is debating whether to apply for a dream job with a nightmare pay cut. Hard decisions.. I’d say the pay cut would knock the job off “dream” status.

SS4BC talks about the winter gear she has on hand to combat the dreary cold. I cannot imagine how cold it must be on the East Coast. But I get chilly just thinking about it. Brrrr.

Nicole @ The Budgeting Babe is daydreaming about buying a home and finds herself looking at the foreclosure market. I’m right there with you, Nicole.

Laura @ Absolutely Fit has a great tutorial on how to look for the cheapest air line tickets. It’s an oldie but a goodie.

Stacking Pennies bought a new car. Her post has encouraged me to take a closer look at VWs now.

Well Heeled Blog in the Blogosphere:

Carnivals I participated in

A Beginner’s Stab at Minimalism @ Carnival of Personal Finance – Fun with Finance Edition hosted by Living Richly on a Budget and 58 Ways to Save Money or Make Extra Money by Maximizing Money

Non-Traditional Engagement Rings @ Carnival of Personal Finance – Most Expensive Homes in the World Edition hosted by My Personal Finance Journey

Power of Numbers: Quantify Your Way to a More Effective Resume @ Totally Money Carnival hosted by Crystal of Budgeting in the Fun Stuff

Awesome blogs I was mentioned in

7 Independent Personal Finance Bloggers You Can Trust @ Consumerism Commentary

The Top 10 Realest Personal Finance Bloggers @ Blonde and Balanced

The Top 10 Realest Personal Finance Bloggers @ Give Me Back My Five Bucks

My writing elsewhere

A Year Without Spending: How Much Can You Save @ BlogHer

Mindful Spending: Do You Know How Much Money You Use Each Day @ BlogHer

Giving: Do You Give Too Little?

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When I calculate how much I give to charities and donations, I feel downright miserly. And maybe I am.

Meg of World of Wealth is a blogger whom I have read for a long time. Though I don’t agree with all of her positions, she seems to be very smart and is certainly well-written, and I think she always adds an interesting perspective to the mix. She left this comment on my Personal Finance Confessions post:

I don’t want to be judgemental, but for somebody who is saving and earning as much as you, I’m a little bit shocked that you say you are trying to “work up” to giving $1000 a year. There’s no working about it – you can easily afford to give but choose not to.

My first reaction was to feel defensive (I donate my time! I help out people I know! I don’t have a trust fund!).

But after a few seconds I decided to reflect on that comment, because, Meg is right. I can afford to give $1,000 a year (or the equivalent of 10% of my income for 2010 edit: sorry, my math was completely off! $1,000 is around 4-5% of my net income for 2010, I was freelancing/unemployed for part of the year), but I don’t.

If I believe personal finance is about choices (which I do), then the reason why I don’t give is because I choose not to. For right or wrong, in accordance to or apart from my belief that I am a reasonably compassionate person, I have decided that other goals and items are a higher priority right now.

I choose to max out my 401K than donate that money.
I choose to buy nice clothes from Banana Republic than donate that money.
I choose to save for Galapagos than donate that money.
I choose to eat really expensive wild Atlantic salmon than donate that money.

These are choices that I’ve made, and I don’t think I like what that says about me.

Let me tell you, there’s nothing like a little blogosphere-induced self-reflection to make one feel mightily uncomfortable. (But that’s why I love it, you guys make me think).

What percentage of your income (gross or net) do you give to charities each year? What helped you to make that commitment? Can you reconcile the lack of monetary giving with the belief that you are a good person?

You Tell Me: How Can I Do Better at Negotiating A Lower Credit Card APR

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There’s no better way to get better at negotiating than… negotiating, right?  Today I called up my credit card company to ask for a lower APR. My current rate is 19%, which is extremely high. Now, I have very good credit, I pay off my balance in full every month, and I have been a customer in good standing for the past 3 years.

Here’s how the conversation went, and please, tell me what I could have done better and how I can improve next time.

With representative

I said to the first representative, “I’d like to get a lower APR, please. My current rate is really high and I’ve been a great customer la de da… “  He told me that my rate at 19% is the lowest rate the company offers and there’s nothing he can do. I remained calm and said that since I am such a good customer, I really want to work something out. I asked him to transfer me to his account manager / supervisor.

With the account manager

The account manager also said that the rate I have is the lowest rate he can offer me. I reiterated everything I’ve said before: customer in good standing, I enjoy being with this company, I have gotten offers for lower APRs from other companies, I just want a rate that is more competitive.

He reminded me that since I pay my bill in full every month, my APR doesn’t matter (which is true. And which I knew.) But it’s the principle of the matter. I said that I understand, but the APR is still too high for my liking.

Finally he said that he can offer me a promotional rate of 14% for 6 months, but there is nothing else he can offer me. So I took that rate and felt like a chump.

I KNOW he has lower rates. But even though this exercise wasn’t the success I had hoped for, I learned a few very important things: I have a tendency to ask for permission at the end of asking – as in, “I’d like a lower APR, if that’s possible.” Or, “I’d like a lower APR, if that’s okay.” Not. Good.

Readers, please tell me how I can negotiate a lower credit card APR next time.

7 Personal Finance Confessions: I Know I Should, But I Don’t

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1. Check my credit report once every four months

I think the last time I checked my report was a year ago. And I only checked Experian. Oops.

2. Return library books on time

For some reason, I am terrible at returning books. I borrow mostly nonfiction new releases (the ones that have the most expensive late fees), read them, and then forget about the due date until a week later. With all the fines I’ve paid to the library through the years, I’d be half way to a Kindle.

3. Donate more of my income

This is a work in progress. Right now I donate $250 a year to Central Asia Institute (run by the author of Three Cups of Tea) and another hundred or so to my college. Over time I’d like to work that up to $1,000 a year for CAI – when $1 provides a month of schooling for a girl, it really gives you perspective.

4. Pay bills ahead of time

Even when I have the money in the bank, paying bills is not an activity I enjoy. I almost never pay my rent early, even though it doesn’t matter if I send out the check on the 28th or the 29th instead of the 1st.

5. Send my invoices every two weeks

You’d think I’d be invoicing every chance I get, since if I don’t invoice, my freelance assignments won’t be paid. But I’ve gone for a few months before I finally sent in a really, big, invoice. I’ve also forgotten to invoice an assignment for 4 months.

6. Negotiate

This is an area in which I am actively trying to improve. In fact, I will be devoting significant financial investment and time in negotiation coaching, online resources, and of course, good old-fashioned practice. At a previous job, another lady who started the same time as I did made $5,000 more simply because she negotiated, and negotiated well. From that moment on, I vowed to advocate for myself and for what I’m worth, and I try to remember that conviction even during the most stressful of times.

Did you know that I’ve checked my car insurance rate maybe once in the past three years?! I’m almost embarrassed to admit that. But yesterday I spent just 2 hours getting all my policy information together, and made 3 calls to competing car insurers. My quotes came in $50-$250 cheaper, per year, than my current premiums. Not bad for 2 hours of work. (True, that’s not much “negotiating” in there, per se, but I’m learning to ask, and these Quick Wins will help me press forward with negotiating in other areas of life).

7. Stop comparing myself to other people

This is not exclusive to personal finance, but it’s probably the greatest barrier to my own happiness. It’s something I’ve struggled with in the past and continue to struggle with. After all, to compare is be human, and we are our own harshest, most unrelenting critics. It’s that balance I am searching for – how to be content without being complacent, and how to look forward to the future but still enjoy the successes of today, and learn from – but not dwell on – the failures of days past.

If you don’t mind sharing your confessions, I’d love to hear.

Power of Numbers: Quantify Your Way to a More Effective Resume

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It’s always important to keep a current and effective resume, even more so in challenging times such as these. (By the way, unemployment hit a new record in California – 12.5% for the not-so-golden state). A few weeks ago a friend asked me to help update her resume for a job fair. There are a lot of helpful books on resumes out there, so I won’t rehash all of the suggestions, but working with her resume helped me refresh my resume-writing skills. It has reminded me that 90% of the resumes I’ve seen (mine included) can be improved with more numbers and statistics.

Which of these do you think sound more impressive?

A. Awarded Commendation of Excellence
or
B. Awarded Commendation of Excellence, an annual prize given to the top 5% of employees in the company

A. Exceeded sales goals and improved company’s revenue
or
B. Exceeded sales goals by 25%, generating an additional $200,000 in revenue

A. Complied customer database to increase follow-up dental visits
or
B. Complied database of 3,000 client records, which helped increase follow-up visits by 15%

Numbers automatically jump out in a sea of words. Quantify your achievements whenever you can.

Here are the three types of numbers to include:

1. Figures: This is the quantity of number of assignments you have done, people you worked with, length of assignment, etc. For example, an editor may have managed a team of 3 freelancers, a project manager might oversee a territory with 12 locations, a public relations executive may be responsible for 5 accounts. These types of numbers give context and are useful, but I’d say the truly big hitters are the Dollars and the Percentages.

2. Dollars: This is how much your work helped the company increase revenue or cut expenses (both actions that benefit the bottom-line). Your work is valuable, and adding dollar signs help others understand exactly how much your work benefited your employer. This is the answer to the so what? question.

Example: Ann implemented a new IT system. Great, so what? The scenario changes when we find out that Ann implemented a new IT system that saved her client $100,000 in 12 months. That’s what. Or, Ben retained the client for an extra 6 months because Ben expanded the scope of the project. So what? How about the expansion of the project added an additional $30,000 in net income for the company?

3. Percentages: This is a way you can quantify your performance compared to your performance objectives or your peers. It’s also another way to relate to the amount of revenue increase or expense decrease, especially if the dollar amount might seem small.

Example: Jill received an Exceed Expectations rating on her performance review or Jill received a review in the top 10% of her group? The first one tells me nothing about how good Jill actually is compared to everyone else; the second one does. Or, let’s say John saved his department $1,000, which doesn’t sound like a lot of money. But what if the department’s previous expense was $3,000? Then John has actually decreased expenses by 33% – a very big deal!

When It Comes to Housing, What Does Gen Y Want?

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Big house? Big garage? Big yard? According to two surveys reported in the Wall Street Journal, the answer is a Big No. Apparently, Generation Y values convenience and culture over size. No McMansions for us, at least for now.

Check out my new LendingTree Blog article here:

What Generation Y Wants for Their Homes

Banana Republic Shopping Spree: My 3 Items for $100

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Just two days after I wrote about how I want to want less, I end up with a big Banana Republic haul. (I did just drop off a big bag of old clothes and shoes at the local Goodwill, so I have followed the 1-in, 1-out rule… technically).

Most BR sales run out of the small and petite sizes first. Fortunately, this sale seemed to have bucked that trend. Most of the XXSP, XSP, 0′s and 00′s are still available. So if you are a petite lady like I am, you might see something you like.

To get the most bang for your buck:

  • Use Ebates to get 6% cash back from Banana Republic. If you are new to Ebates, please consider signing up using my referral code, I’d appreciate it.
  • Use the code BRWINTER30 for an additional 30% off until January 23.
  • Remember, there’s free ground shipping for orders over $50.

Here are the 3 items I picked up for a total of just about $100 including tax. Add in the 6% cash back, I’ve “only” spent $94 for three solid quality, workplace appropriate pieces. How’s that for rationalizing? icon wink Banana Republic Shopping Spree: My 3 Items for $100

Petite ruffle pencil skirt

($29.99 sale, $20.99 with 30% off)

I have two Banana Republic pencil skirts (one in black and one in gray), and they are both workhorses in my professional wardrobe. I think this piece will be too – I like the zipper and ruffle detailing, it’s a stylish twist on the usual pencil skirt silhouette, but not too edgy for a day at the office. Last I checked, sizes 00P, 0P, and 2P are still available. I think there was a 10P as well.

BR ruffle zip skirt 225x300 Banana Republic Shopping Spree: My 3 Items for $100

via bananarepublic.com

Petite Priscilla sweater jacket

(sale $49.99, $34.99 with 30% off)

One reviewer said this sweater reminded her of Chanel. I don’t know if I’d go that far, but I think this is a good piece for the price. Sweaters with structure = comfortable wear + polished appearance. This sweater is 100% merino wool with ribbon trim. Sizes XXSP, XSP, and SP are available.

BR Priscilla sweater jacket 225x300 Banana Republic Shopping Spree: My 3 Items for $100

via bananarepublic.com

Petite Martin fit winter wool trouser

(sale $49.99, $34.99 after 30% off)

My favorite pair of work pants is a pair of Martin fit pants that I purchased back in 2006. It has held up remarkably well through almost 5 years of wear, two run-ins with guacamole, and a few loose hems. I bought my first Martin fit for the full $98 price, but I think I’ve certainly gotten my money’s worth. I hope this pair will serve me just as well. Plus, it’s fully lined (as wool pants always should be).

BR Martin winter wool trouser 225x300 Banana Republic Shopping Spree: My 3 Items for $100

via bananarepublic.com

So… tell me, did I make you want to shop? Hmm? icon biggrin Banana Republic Shopping Spree: My 3 Items for $100