Jana Says

Living life from cover to cover

Guest Post: Dear 13 Year Old Me

by Jana 8 Comments

Since I’m on vacation this week, I thought I’d use the time to showcase some fellow bloggers. Today’s blogger is Marissa who blogs at Thirty Six Months. She talks about paying off her student debt, budgeting, and investing.

Dear 13 year old me.
Pink Sherbet Photography /Fote

 

We all have moments where we look back and realize that we could have made some different choices and we would not be standing where we are today. How I handled my finances is that subject to me. I grew in a family where both parental figures are financially savvy. We were never left needing anything, but we were taught from a very early age that wants are something that we save and work for. My parents, especially my mother, tried to show my siblings and I the value of hard work . I got my first job delievering papers at the age of 11. That paycheck was amazing. I remember the thrill of being able to spend my own money. I felt independent and so proud of myself. I am pretty sure that first paycheck was spent on a video game. Yes, I was a nerd back then too.

I always wonder why certain people blog. Is it to share stories about your life? Or is it to set up visual goals and achieve them? Or is hoping that someone else will learn something from their mistakes? My reasons for blogging combine the last two questions. I like visual goals and I want others to not make the same mistakes that I did.

But what if instead of someone else learning from us, we could just talk to our younger selves? What would we say to them? Where do you think you would be in life if you had the chance? If I can go back and talk to my 13 year old self, I would tell her so many things:

  • $300 for jeans is stupid, regardless of how nice they make my butt look. Buying 2 pairs is insane. Yes, I did that. The total bill came out to $1057- 2 pairs of jeans, a hoodie and 4 tank-tops. My mom ended up throwing the brand new jeans out by accident because they had too many rips on them. Yes, that happened.
  • I do not need to the best car of all your friends. Most of friends are guys, and they know a lot about cars. I learned a lot by being around them. Going car shopping with a impulsive car fanatic doesn’t end well. Next time- take mom. She will talk me into a nice Honda Civic.
  • Spending money on boyfriends is stupid. Just because I have a steady income at all times doesn’t mean that I should pay for everytime. The boys that expect that are jerks. Run, dont walk, away from them.
  • Buying my godson a $600 toy is foolish. He doesn’t know or appreciate such “quality” items and will proceed to throw it over the railing. He liked the box that it came in a lot more.
  • Learn how to budget. This is the key to life.
  • One pair of sunglasses, one watch, one purse at a time. Buying multiples is not smart since only one can be used at a time. Also, changing purses daily is a pain. I don’t know how other people can do it.
  • Choose friends wisely.
  • Just buying a guitar doesn’t mean I know how to play it. It takes time, and work, and I don’t have either, just invest the money instead.
  • Spend more time with family. They are the best link to the past and will stick by me in the future.
  • Heart break will cause anxiety and going shopping will seem like a great idea, but it isn’t. Our minds purges unpleasant thoughts quickly. Invest that money instead. I still have this habit. I am positive that I developed it at the age of 13.
  • Hair dying is a bad idea. It takes a long time and a lot of money to get it back to the natural colour. Dying it 4 different colours at the same is just dumb.

Being financially responsible,and independent is the best present that I can give myself.

Those are my lessons. What are some of yours?

 

 

Guest Post: 6 Tips to Keep Your Dream Job from Becoming Your Nightmare

by Jana 4 Comments

Since I’m on vacation this week, I thought this would be a good time to showcase some guest bloggers. Today’s blogger is Dr. Jason Cabler, who blogs at Celebrating Financial Freedom.  It’s a Christian Personal Finance blog that focuses on becoming and living debt free.

This time of year is the time when a lot of people resolve to change their lives in some way.  From weight loss to finding a mate, New Year’s resolutions can run the gamut.  But today I want to talk to you about one particular resolution that a lot of people are thinking about these days, and that’s quitting your job and starting your own business.

I think most people have at least entertained the idea of striking out on their own at some time in their life.  But if you’re serious about it and you’re really wanting to make that leap of faith, there are some things that you really need to consider first to help ensure success and minimize the failure that can come quite easily if you don’t have a good plan in place.  Here are some things you should consider first before going all in:

  1. You absolutely need to have a passion for what you plan on doing.  Striking out on your own can be extremely difficult and lonely.  Passion and love for what you do can help get you through those difficult times.  Make sure that if money was no object, you’d still be doing it anyway.
  2. Have you proven you can make money doing this?  If you haven’t then you need to be very careful.  It’s usually best to work on your dream part time and keep your day job until you know you can make the business work well enough to support you.
  3. Be excellent at your day job.  Sounds a little counterintuitive I know.  I mean this may be a job you really hate and have no passion for, and that’s why you want out.  But here’s the deal, you need to practice excellence in your day job because it’s good practice for your dream job.  Sometimes your dream job is going to be no fun and stressful too, and knowing how to be excellent even when things suck is key.
  4. Is your spouse on board?  You have to make sure your spouse is ok with your plans and will be supportive.  If there is a problem there, it must be addressed before moving forward, because if he/she is not on board, then the harder you work on your dream, the more your spouse is going to end up resenting that dream (and thus you too).  Don’t sacrifice your marriage at the altar of your dream.
  5. Do you have an emergency fund in place?  You’re gonna need it.  Even if you’ve been making money on the side from your dream it can still be a big jump when you quit your day job.  The better prepared you are for the uneven paychecks that can come with self employment, the better off you’ll be.  And let’s face it, if you’re not disciplined enough to have some financial stability before you made the jump, you’re not gonna suddenly get it.  Making the jump before getting some financial discipline in your life is a recipe for disaster.  Let your financial discipline fuel your dream instead of potentially killing it.
  6. Don’t jump too early.  This goes along with #2 and #5.  Quitting your day job before your dream is fully ready and going for broke too often results in just that… ending up broke.

When you follow these steps to achieve you dream job, it can make your dream much more achievable.

When you still have a steady income, a supportive spouse, and some amount of financial stability, it gives you the power to say one of the best words in the English language, and that word is “no”.

When you don’t have to say yes to those questionable opportunities that inevitably com along that may cause you to compromise your ethics, your plans, or even your morals because you desperately need the money, you have the power to build your dream the right way, without compromises that could eventually serve to kill your dream before it even really gets off the ground.

There are a few good books that I recommend that expand much further on the subject and can aid you in developing your dream: “48 Days to the Work You Love” and “No More Dreaded Mondays” by Dan Miller, and “Quitter” by Jon Acuff.  These books are excellent and can really move you a long way toward developing your dreams.

I especially like “Quitter” because author Jon Acuff actually lived what he wrote he wrote about, so it all comes from first hand experience.  I’ve attended his “Quitter Conference” and was very impressed, I highly recommend it.

I truly believe that if you are careful with your dream and treat it with the care it deserves, you can make your dream come true and keep it from turning into a nightmare.

Have you had any nightmare experiences while pursuing a dream?

 

Guest Post: 7 Things Everyone Should Know About Personal Finance

by Jana 3 Comments

Since I’m on vacation this week, I thought I’d use the time to showcase some guest bloggers. Today’s blogger is Suzanne Cramer. Suzanne is a certified credit counselor and a Social Media Specialist for Care One Debt Relief Services. Suzanne writes for Divorce, Debt and Finances and A Straight Talk on Debt. Follow Suzanne on Twitter @ADivorcedMom and @AskCareOne where she stares her insights on divorce and managing your finances. 

There are certain things everyone should know about personal finance. The debate goes on as to whether or not personal finance should be taught in schools or if these are lessons best taught at home.

Regardless of where the lessons are learned, your age, gender, or socioeconomic status there are a few personal finance lessons everyone should know and practice.

One of my biggest goals in life is to have learned something new everyday. Here’s hoping you will learn something new about personal finance today!

1.  How to budget. Budgeting is the cornerstone of personal finance and is the most effective way to ensure you know what is happening with your finances. Getting started is easy; calculate how much you earn each month, and account for each dollar in a budget category.

  •  Recurring bills
  • Entertainment
  • Living expenses
  • Savings
  • Miscellaneous

By setting up a realistic budget based on your current lifestyle you are more likely to stay on track.

2.  Understand how credit works. Credit is a contractual agreement in which a borrower receives something of value now and agrees to repay the lender later. It often materializes in the form of credit cards, or loans for a car, home, or education. But there are costs associated with using credit, so it’s important to compare the cost of various credit options with the actual features that come with the credit offering. Also, you must be responsible in how you use credit so that you don’t accumulate more debt than you can afford to repay.

3.  How to check and read your credit report. It is easier to maintain good credit health when you review your credit report at least once a year and correct or dispute any errors. You can request an annual free copy of your report and ensure all the information listed is accurate. If you find that you have bad credit, only time and consistent payments can repair it, so go easy on your spending and make timely payments against your outstanding debts.

4.  How to attack debt. View getting out of debt as a long-term goal, but set smaller milestone goals that you can celebrate achieving, such as paying off each individual creditor. If you need some ideas or support, join the CareOne Community.

5.  How to choose a debt relief provider. Sometimes the best way to address your debt problems is to partner with a reputable debt relief company. A reputable provider should have a solid record with the Better Business Bureau, multiple options to help you get out of debt, and a relatively long history of helping people get out of debt. The provider should also have the experience, resources, and certified counselors needed to work with you to help pay off debt and turn your financial life around.

6.  How to save for your future.  While most Americans lack a formal savings plan, you don’t have to be among them! Instead, identify ways to build up your savings reserves so that you can endure tough economic times without amassing debt. Start saving as soon as possible – even if only a small amount – and make saving a regular part of your life. For example, set up automatic deposits from your paycheck into a savings or retirement account.

7.  How to select a health plan. Most employers offer healthcare plans be sure to take advantage of this benefit and obtain the coverage you and your family need. Also, read up on the new Affordable Care Act to learn about changes stemming from this health care reform legislation that could lower your costs and make care more accessible.

There’s always new ways to improve your financial health and you can better your knowledge by reading personal finance blogs, following experts, or just staying in the loop with the news.

Personal finance is a big part of your life and making it a priority can help to keep you debt free, financially secure, and ready for your future!

What have you learned lately about personal finance?

 

Guest post: Why You Have No Excuses For Not Building Financial Skills in Your 20s

by Jana Leave a Comment

The following is a guest post from Martin of Studenomics. He has just released his premium guide on how you can Completely Conquer Credit. If you’re tired of spending all of your money on debt payments and want to see SERIOUS results, you need to check out this guide.

Jana recently responded to a post with her side to the story as to why she didn’t learn certain financial skills in her 20s. I had a chance to meet Jana a few weekends ago in Chicago and we got to chat about various subjects, with none of them being related to personal finance (Admin note #1: It’s true. We talked about nothing personal finance related). A few days later I was asked to respond to this specific post and here I am with my side of the story. I’m a 23 year old dude that has been blogging about personal finance since 2008.

I wanted to respond and share why you have no excuses for not building financial skills in your 20s:

We’re all going to be “old” one day. I won’t be old like Jana for another decade so it’s all good (Admin note #2: Thank you, Martin, for reminding everyone that I’m 34. It was sweet of you). The reality is that we’re all going to grow older (not grow up) so we need to keep this in mind. It’s easy to dismiss financial issues and tell yourself that you’ll deal with it when you’re older. The major problem with this is that you won’t just automatically improve your financial skills as you get older. There’s no guarantee that age=increase in financial wisdom. You need to get started ASAP. If you can’t save five bucks when you’re 17, you won’t be able to save $5,000 when you’re 27.

Figuring out money management is actually really easy. It really is easy to manage our own money (unless you’re a celebrity!). We just listen to too many delusional people that want to act like big time investors and share complex investing strategies with us. We need to bring it back to the basics. This is the same advice that I give my friends that are just getting into weightlifting. You need to keep it simple. With weightlifting you need to train hard, rest, and eat well. With money management you need to increase your income, spend less than you earn, and save the rest. You can get more complex and start debating the minutiae. All you’re gong to do is overcomplicate something when it should be simple.

Once you get more advanced you can worry about balance transfers, buying shares, and different investment strategies. As a 20-something you need tomake money, look to increase your income, watch your spending, and savewhat you can. There’s nothing else to it.

Parents are not the only role models. We all look up to our parents. This doesn’t meant that our parents should be our only role models when it comes to money management. Blaming on our parents for our poor habits is justifiable… in elementary school. Once you hit the age of 18 you’re responsible for your own decisions and you have nobody to blame. You live in the real world and sure your parents can
help you out. You just can’t rely on your parents for a bail out. You also can’t blame your parents for poor skills.

You’re on your own now. The beauty of life is that you really can do anything that you want to do. You can apply to any school for any program. You can start any business that you want. You can choose to save money or you can squander it all. We all have enough resources available to us. We just need to take advantage of them, find different role models, and stop blaming our parents.

You don’t have to be patient to save money either. I’m the least patient person in the world. I bought an expensive Macbook Air while travelling through Budapest, Hungary without much thought at
all. All this means is that you have to work with your weakness. If you’re impatient with your spending then you need to keep your money locked up! There are many investment vehicles and accounts where you can lock yourmoney up. If your account requires 3-5 business days to access your money that means you have a few days to think this impulse purchase over. We need to accept our weaknesses and work with them.

That’s my side of the argument. There’s no excuse that you can convince me of that you can’t build financial skills in your 20s. I can out drink most people on a Wednesday night and I like to have fun. This doesn’t mean that I ignore my finances.

If you enjoyed this post please don’t forget to pick up your copy of Completely Conquer Credit (Admin note #3: I had a chance to preview Martin’s book. It’s quite good and it’s definitely full of information I wish I had had in my 20s.)

Guest post: Guide to surviving an imminent layoff

by Jana 1 Comment

Melissa Dawson is a long time member of the No Spend / Controlled Spend thread which started within the former MSN Money Boards and is now hosted on ProBoards. While not a traditional blogger you can see what else she is up to, or what is on her mind at her site The Lioness Den at http://honeylioness.proboards.com/           

So your company is looking for ways of improving their net income. When sales don’t increase to cover the higher cost of supplies, insurance premiums and overhead they look at reducing staff. And that is where you now find yourself – the dreaded meeting with your manager who tells you they have eliminated your position.

So now what?

First, let yourself be upset.  I don’t recommend doing this to excess while still at work, though it can’t always be helped. Hopefully you were able to maintain your composure until you got home. Losing a job is in the top ten of stressful life events. It’s normal to cry, rant, rave, panic and get angry. Once you get over the initial emotions it’s time to come up with a plan of action.

Some of you will be fortunate enough to receive assistance from your soon-to-be-former employer in the way of a severance package, re-training assistance or other types of compensation. Others will be handed a final check and a box to clean out your desk. Regardless, there are things you can do to help you manage the situation in a productive way.

There are many online resources out there that can walk you through the “hows” of looking for a new job: State unemployment benefits, resume building, agencies, networking and brushing up on your interview skills. But I would like to focus on what you do can on the home front in regards to your personal finances.

  • If you haven’t done it in a while, now is the time to sit down with all your statements and bills. The idea is to not be overwhelmed by your numbers – but to take an objective overview of where you are today.
  • Make a list of all outstanding balances and monthly minimum payments if applicable.
  • Determine the bare minimum you need to meet your monthly obligations: housing, food, utilities, insurance etc.
  • Talk to your family including your children, though it needs to be age appropriate. A seven year old can be told that Mom is looking for a new job and so sometimes we won’t be able to do some of the fun things we used to. A teenager can be told more and be a part of the family’s cost cutting program.
  • Look at what you can cut right now. Sometimes we get used to thinking there are things we must have when actually they are wants and not true needs.
    • Cable – contact your provider and drop the extended channel package. Change to their most basic package. Consider another company altogether. There are some great deals for new customers that can run for a year or more at reduced rates.
    • Cell Phone – look into switching to a Pay As You Go plan. Unlimited texting is a luxury that you can learn to do without.
    • Memberships – check to see if you can cancel your health club membership. Chances are like most of us you aren’t using it enough to justify the expense.
    • Video Services – If you keep even a small cable package do you really need the Netflix account?
    • Contact your utility and credit card companies to inform them that you are unemployed. Ask them what sort of hardship payment plan they can offer you.
    • If you have a mortgage check out their website and get familiar with their hardship, or unemployment, programs well in advance of needing them.

I know some readers will think that approaching creditors at this point is premature. My position is that right from Day 1 you should go into cost cutting mode. While it’s a good thing to be optimistic about finding another position in a few weeks, the current reality is that for most people it will take a lot longer. It is also easier to negotiate with creditors from a position of strength – and that means before you start falling behind. The sooner you can reduce your expenses, the longer you will be able to get by with unemployment and savings.

There are however a few things that I would recommend spending money on:

  • Review your vehicle’s maintenance records – if you are close to the service date get the oil and filters changed. Now is not the time to have to deal with transportation issues.
  • Do you have a Flexible Spending or Health Savings Account? Gather up all your receipts and submit them for reimbursement before you lose those funds.
  • If your insurance coverage will remain in effect for any length of time make appointments to have your teeth cleaned, go in for a check-up, talk to your physician and get refills of all your medications before your coverage ends.
  • While you friends all think monsterkiller@website.com is a cool e-mail address, it does not look professional on a resume. Open a new, free, Yahoo account using just your first initial and last name to use during your job search.
  • Once you have an updated resume get copies made on high quality paper.
  • If you don’t have a warehouse membership, ask a friend who does to take you with them and stock up on items such as toilet paper, pet food or cereal. They are items you will need to buy anyway, so you should get them in bulk and at a lower price.
  • Get a haircut. You need to look your best as you interview. And it’s an esteem booster.
  • If you do not already have at least one professional outfit to interview in consider purchasing one. It can be as basic as a black shirt, crisp white shirt and a blazer.

By facing the situation calmly and being proactive with your expenses you can at least feel more in control of your situation. And that sense of empowerment will come through during interviews, improving the favorable impression you leave with those you meet.

For those wondering, I am speaking from personal experience and preparations. You see, I was laid off on the fourth of this month.

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