Money Monday: Little Known Facts that Effect Your Credit Score

Found this article yesterday on Yahoo Finance and it's the first time I've ever seen a breakdown of how much certain actions will damage your credit.

Here's the article: How Common Mistakes Effect Your Credit Score
Here is the chart:

Still think this doesn't effect you?

Here's another way to look at (excerpt from the article)

"In order to show just how badly a drop in your FICO score can hurt your wallet, we spoke with members of the home mortgage, auto and credit card lending industries. We presented hypothetical scenarios of a consumer who decided to apply for a $200,000, 30-year mortgage; a $20,000, five-year auto loan and a credit card... they were able to provide an idea of what a borrower who had the following credit scores could expect.

For a Consumer Who Started With a FICO Score of 780:
-Following a 30-day late payment, the consumer's car loan rate would jump nearly 3 percent, costing the borrower $26 more each month.
-Following a debt settlement, the consumer would pay as much as $109 more each month on a home mortgage.

For a Consumer Who Started With a FICO Score of 680:
-Following a 30-day late payment, the consumer would pay $41 more each month for a car loan.
-Following a 30-day late payment, the consumer would pay as much as $95 more each month on a home mortgage.
-Following a debt settlement, the consumer would no longer qualify for a credit card."\

If you own a home and car (or are thinking about purchasing one) that's almost $1700 extra PER YEAR that you're paying because you were 30 days late on your credit card. That's the average person's car payment for 4-6 months.

Something to think about before you charge your holiday shopping without knowing how you're going to pay for it...

Money Monday: Holiday Shopping

The holiday season is upon us. I thought you all might enjoy this as you start looking at your holiday shopping list.

Budget For Holiday Shopping

Personally, I'll be looking at some Amazon.com (Y.M. has me addicted) on Thursday and Friday because of their awesome price matching and shipping straight to my job.

Money Monday: I had to share this...

...because this puts my industruy into terms everyone can understand.

Plus it's funny.


Courtesy of: http://www.zwixy.com

Money Monday: Back-Ass-Wards

I was watching a Dairy Queen commercial and I had an epiphany.

The western world is messed up. In the rest of the world if you are poor, you don't have enough food,you are skinny and malnutritioned. However in the West, especially in America, if you are poor you are the more likely you are to be fat.

Think about it: 99 cent Value Meals at Wendy's, Dollar Menu at McDonald's, 5 for $5 deal at Arby's and pick 3 for $4 combo at Dairy Queen; you can get an entire meal for $3.00-$4.00 from your favorite fast food place but you'll get 850-1,200+ calories with that $1 fry.

But...

If you want to eat a wholesome lunch balanced 400-500 calorie lunch at Whole Foods it will cost you a good $5-$10.

So in the words of Main Thang (that's a whole 'nother blog post...) "Do the math."

You can have a $5 side salad or you can have 5 roast beef sandwiches. If you're broke than obviously you're trying to get the most for your money and therefore Arby's will probably win.

Money Monday: How Americans spent there money

Since this was the last weekend for awhile that I don't have anything planned, (it's wedding season, part deux) so I was getting my life in order. Whilst reading through some emails I came across this one from a work colleague: How The Average U.S. Consumer Spends Their Paycheck.

Now the one thing that is clearly missing from this chart is any debt payments; not the things you charge to you your card every month (like food and clothes) but the cost of your debt (such as interest and fees.)

Either way, this chart is interesting and worth taking a look at. And while you're at it...

Take an hour and look at where you're money's going. I recommend using www.mint.com, it'll change the way you see your money. :-)

Money Monday: "On Your Side"

Jumped the gun a bit BUT...

We had some amazing news at work today.

McKinney is "on your side."

and the Press Release

YAY!!!!

Money Monday: 10 Commandments- Courtesy of MSN Money

I came across this Financial Commandments for Your 20s and I thought of all the people who I know who need to read this article.

Basically:

1. Thou shall plan ahead
2. Thou shall live WITHIN your means
3. Thou shall make saving a habit
4. Thou shall pay off your credit cards
5. Thou shall start investing
6. Thou shall establish credit
7. Thou shall develop a marketable skill
8. Thou shall cut the financial umbilical cord
9. Thou shall marry wisely
10. Thou shall have fun

I think I'm in good shape but it's always nice to have a easy to understand reminder.

Money Monday: Credit Myths in 60 seconds

This came through my RSS from Lifehacker and I thought it was worth passing along.

Money Monday: Career Log

In my RSS feed this week came up a "How To" that I think everyone should do:

How to Keep a Career Log

I have a lot of friends that are in the job market, or are fearfully they soon will be, and are having a hard time with getting their resumes to speak to the people they are hoping will employ them. By keeping a Career Log it's easier to reflect on projects and roles you have experienced that may help you land that next position. :-)

Money Monday: Why do you do what you do?

I am one of those people that is lucky enough to love my job but this post from my sorority sister at Darling Dexter got me thinking because a lot of my friends that are 1-2 years out of college seem to be dealing with this same internal issue.

Just thought I'd pass this along because I think this is a good articulation of a problem a lot of 20 somethings (and beyond) face.

Money Monday: Haggling...umm...Negotiating

Got this article about haggling prices from Ladies Home Journal (yep...LHJ...I'll admit I get a weekly newsletter from them.)

How to Save Money on Just About Anything

What are things worth haggling for? According to LHJ...

1. Big ticket items
2. Hotel rooms (FACT, saved my crew $300 on a trip to Vegas recently...)
3. Bulk purchases
4. Anything damaged
5. Anything already marked down
6. Healthcare

Money Monday: Resolution #5

On Friday I discussed my resolution to shop more and spend less on food and I'll have to make sure I'm saving enough money to do my Sabbitical Saturday resolution. Now how am I going to keep up with all that?

By doing my Money Monday resolution: Tracking my finances using the Mint.com. One of my Alpha Rho girls turned me onto it is pretty easy to use and very easy to manipulate into my obsessive accounting system that I developed as part of my (SUCCESSFUL!!!) debt busting resolution from 2008.

Hopefully we'll come out of this year in better financial shape for the second year running.

Money Monday: Little Steps

As this year winds to a close it becomes time to reflect on the past year and make aspirations for the next one. In a totally unscientific poll of my friends the two highest things on our list of things we want to focus on in 2009 are: 1) our weight and 2) our finances. To achieve success in either one of these it takes a gradual lifestyle change, starting with little steps.

Here's a link from "The Simple Dollar" of 100 little steps that can get you saving:
http://www.thesimpledollar.com/2008/02/06/little-steps-100-great-tips-for-saving-money-for-those-just-getting-started/

My top 5 from the blog:

• Switch your bank accounts to a bank that respects you. (...and that's why I'm not a Wachovia customer any more...)
• Master the thirty day rule. Whenever you’re considering making an unnecessary purchase, wait thirty days and then ask yourself if you still want that item.
• Invite friends over instead of going out. (My Yankee Manfriend's favorite MO)
• Do a price comparison - and find a cheaper grocery store. (That's why I buy my packaged goods at Wal-Mart Supercenter. I get 2 weeks worth of food for $50 compared to the $70 at Food Lion and the $80 at Harris Teeter for the same items. That's a $520-$780 yearly savings a.k.a. my car insurance for the whole year. )
• Design your “debt snowball.”

Here's one more list from Jeff at "My Super-Charged Life": http://mysuperchargedlife.com/blog/20-ways-trim-your-budget-survive-hard-times-ahead/

Happy saving. :-)

Money Monday: WWGD (What Would Grandma Do)?

We are a very credit dependent society. We buy things with money we are going to earn because they are 10% off and then charge them and have to pay 10, 15, or maybe even 25% interest on it. That makes NOOOOOO sense. I guess it's our society's "it will get better" attitude. But we are in need of a serious reality check and it starts with everyone individually looking out how they spend money and use credit.

I personally have a general rule about buying things: I don't pay for anything longer than I'm going to use it.

What does this mean?: Financing a car for 5 years is fine (but not ideal) because you're going to be using it in 5 years. Charging (which is the SAME THING as "financing") my Starbucks is not ok because I'll be paying for it after the 20 minutes I took to drink it. Now I'm not saying this is the perfect way to run your finances, but for someone starting out in the real world I don't think it's a bad start.

I think young Americans need to stop thinking about financing and finances like our parents' generation of "I can have it all now and pay for it later" baby boomers and start thinking like our grandparents' generation in a more "I'll buy when I can afford it" mentality.

I found this article on MSN Money that I think brings my point home: People need to learn to live on cash (meaning money in your checking account so your debit card is fine.)

Totally worth the read. :-)

Money Monday: Your Digital Reputation

In this day and age where recruiters for jobs look at your MySpace pages and your VP is on Facebook, you have to make sure you're digital rep is as well taken care of as your regular work reputation if you want to be respected in the real world. This respect could be the difference between a raise or being laid off.

I found this article on MSN.com that might be useful. However I have more advice. (Duh.)

My #1 suggestion: Look at your privacy settings on Facebook.

Not kidding...

I'll wait...

I'm sure you have facebook open on another tab anyway...


Ok good.

Some things you need to look at and my suggestions of who you should access to:
(Anything with a "*" means it's subjective based on the content you put in that medium and therefore gets a "but ONLY if it's appropriate for this group to see" tag.)

What everyone can see:

1. Your name
2. Your friends (Everyone can see this...you never want to cut off networking opportunity)
3. Your school and occupation information
4. Your networks
5. Your hometown
6. Activities*

What your friends of friends can see:

1. Same as above
2. Your blog*
3. Email address
4. Your relationship status
5. Your religion and political views
6. Class list
7. Activities

What only your "friends," the ones you make limited profile...like your coworkers, parents, and friends' parents, can see:

1. Same as above
2. Cell phone number
3. Your blog*
4. Interests* (Beer and dancing on bars...maybe not so much...)

What only your friends can see:

1. Your pictures (You never know who the friends of your friends are...)
2. Your wall (Same as above...)
3. All your random applications (You don't want your coworkers thinking you have too much time on your hands...)
4. Your blog that has your rantings about your life
5. Your notes
6. Your events
7. AIM screen name
8. All that other stuff Facebook has

One more thing: Remember that your profile is a representation of YOU and therefore YOU are responsible for it. Don't feel bad about deleting inappropriate comments on your wall or untagging pictures of yourself that don't display the kind of person you want people to see you as. You never know when Mom, Dad, or the CEO of your company might decide they are going to be "hip" and get on Facebook (like my mom did last weekend...) and you don't want them to see double fisting cheap beer, dancing on a bar, and showing your Britney.

Money Monday: Perfect Time for a Budget

So I woke up this morning and CNN told me about how the world's economy is going still going into the toilet and will be for...well the foreseeable future.

Made me think: Good time to revisit my budget and see where I can squeeze some extra savings out.

I made my first budget at 19 and I think it's the best habit I ever got into. (Now if only I could feel the same about diet and exercise...) If you don't have a budget and you have income, then you need to make one. It will help you so much in the long run to achieving your goals and being independent. You don't want to have to be 28 and not be able to buy a car if you need one.

Here's a resource with 79 other resources for budget making.
http://mysuperchargedlife.com/blog/back-to-basics-79-brilliant-budgeting-resources-youll-love/

Work on yours this week and then next week I'll show you mine.

Money Monday: Lunch- My Daily Mid Day Dilemna and a hole in my wallet

One of the big things that I have learned in the first half of my 20s is how much it costs to feed myself. (Thank you Mom for feeding me for the first 18 years of my life.) I mean, I am in theory, I'm still paying for meals on my credit card from my first senior year of college. (Lesson learned: "Do not charge food and /or booze"... but that's for another Monday...)

I read this article on MSN (http://articles.moneycentral.msn.com/CollegeAndFamily/MoneyInYour20s/HowToBuildYourFirstBudget.aspx?page=2) about making a budget and this is the part that stuck out to me:

"Food: Basic groceries should cost a single person about $150 a month. You'll spend a lot more if you eat out frequently, however, or if you buy lots of processed foods, frozen dinners and gourmet stuff. Cut your food costs by bringing lunches and snacks from home. Substitute potlucks or picnics for expensive socializing at restaurants. Shop grocery-store sales, and learn to make a few healthy meals at home."

Makes sense right? One problem: I personally don't have/am willing to take the time to make lunch every morning or even every night.

Solution: Pack lunches for 5 days on Sunday afternoon.

This is what I did (with the assistance of Lil Lisa):

1. Decide on the menu for the week. (Morning Snack: Yogurt and an orange; Lunch: Ham sandwich, orange, and salad; and Afternoon Snack: Fiber One Bar)
2. Bought materials. (A loaf of bread, a small jar of Fat Free Miracle Whip, sliced deli ham, alfalfa, a half pound of Spring Mix salad, a bottle of salad dressing, pudding singles, 6 pack of yogurt, 5 oranges, and a box of Fiber One bars.)
3. Got out 10 (5 sandwich ones and 5 round 2 cup) Glad plastic containers and 5 sandwich bags.
4. Put a serving of ham in each sandwich bag.
5. Layer contents of sandwich container as follows: 2 slices of bread, plastic bag with ham inside, and then alfalfa. This order will prevent any of the contents of the container from getting gross before Friday.
6. In the 2 cup containers I put salad and croutons.
7. I packed up my lunch and snacks for Monday and then put the rest in the fridge.

And now my fridge looks like this: (This is on Monday night so there's only 3 cause my Tuesday's lunch is already packed.)

Now all I have to do is put the lunches in my lunch box every night and then grab the lunch box in the morning when I get my water before heading to work.

Easy...and cheap. Total savings between last week (in which I ate out every day for lunch) and this week... $25. YAY!!!