Archive for April, 2008

Lending Money Can Make You Lose Friends and Family

By: Green Panda | Date posted: April 28, 2008 (9:49 am)

 

Lending money to friends and family is a tough situation. Perhaps you want to help someone with a geniune need, but you’re not sure if they’ll actually pay you back. Both parties are put in a tough spot. How do you handle it? Since I think most people are inclined to want to help out, I include some cons to loaning money.

It’s up to you to weigh the options and come up with the right answer for you.

Some Reasons NOT to lend money.

1. You can’t afford to lose the money. If this loan will be a strain on your finances and family, then don’t loan money.

2. You will not be able to see your friend in the same light and it puts a strain on your friendship.

3. Your friend will keep looking for a way to repay due to guilt or they’ll resent you for giving the loan.

4. You can become an enabler of his/her bad spending and non-savings habits. Some people just don’t budget well and giving them money will not solve that problem.

What you can do:

  • Don’t loan them the money. If giving them money would make it worse, then don’t loan them the money.
  • Give a smaller one time gift. Remember give what you can lose. It removes the tension of being in debt to someone without you going in debt.
  • Share with them some ideas on how you budget. Sometimes it’s a matter of helping one learn to fish. Without pulling out numbers, just show them the basics of budgetting. Be careful with how you approach them with this. Nobody wants to feel like a fool.
  • Share with them some ideas on how you cut costs. Be tactful and show them what money saving habits you’ve developed.

If you do loan the money:

  • You have the right to have it put into writing.
    • Include how much is going to be repaid, how much each payment is, and how frequently they’ll pay. It’s not just a protection for you, it’s to help clarify what the plan is.
    • Having this can reduce having awkward conversations.
  • You have the right to know why you’re loaning them the money. Is it for neccesities or it for vacations or a business venture? Obviously having this information will determine if you loan the money or not.

It’s ultimately your decision, but please consider it carefully. Have you given or received a loan between family or friends? How did it turn out?

Some references:

Photo Credit: Pwbaker

Weekly Round Up: Washer and Dryer Edition

By: Green Panda | Date posted: April 27, 2008 (10:34 am)

 

 

Yesterday my husband and I got a washer and dryer for the apartment. The total cost was around $190. We got the pair from Craigslist for $150. We asked a friend if we could borrow his truck and we paid $20 to cover using his gasoline.

The gentleman who sold the washer and dryer kept them in good condition. His wife just bought a new set and they needed to get rid of the older one. We just needed to get a new hose for the dryer and another hose for the washer. That was about $20 to get them from Lowe‘s.

The hardest part was getting it to our apartment which is on the third floor! To be honest, my back is a bit sore from the move. A kindly neighbor helped us move the washer, which was very much appreciated.

Installing a washer and dryer wasn’t too bad. You just need to put the hoses and plugs in the right spots. I’m happy we got this used set, as the cost of renting one for the apartment would be $20/month or more (depends on who you rent it from).

Since I’m relaxing at home for a bit, I decided to share some of my favorite post from his week:

I hope everyone’s weekend is going well. My brother is coming to visit this afternoon so I’m looking forward to hanging with him.

Photo Credit: A Princess

Frugal Pet Care

By: Green Panda | Date posted: April 23, 2008 (10:52 pm)

 

 

I’ve had my (baby) cat for about five years. I got him while I was still in school, which meant I did not have a lot of money to play with. He’s been healthy and for the most part happy (he’s a bit mean at times). I’ve set aside money in my budget for him and it has worked so far. Now that I’m married and my husband has adopted my cat, there are two people looking out for him.

 

Having a pet is not cheap, so if you’re struggling to make ends meet and want a pet, please wait. Even though there are ways to cut some expenses down, it cost money to take care of an animal.

Find a good and affordable veterinarian

If you’re low income, consider speaking to your local animal shelter. Some of them have clinics with reduced fees for vet visits and commonly used medications for lower income families. Also ask around for more information on vets in your area. A good vet can save you money if they can diagnose the problem early.

Also don’t be afraid to ask the vet if you can workout a payment plan. Some are willing to work with you if you’re upfront.

Consider a healthcare plan for your pet.

PetSmart also has the Banefield clinics which are supposed to be affordable to most people. They also have a monthly health plan that covers many common appointments. I haven’t used it, but my sister swears by it.

Keep your pet up to date on vaccinations.

Some cities sponsor events that offer vaccinations at lower than normal costs. Take advantage of such programs.

Vaccination Recommendations for Cats

  • FVRCP(Panleukopenia, Rhinotracheitis, Calicivirus, Chlamydia)
  • Rabies
  • Feline Leukemia (FeLV)
  • FIP (Feline Infectious Peritonitis)

Vaccination Recommendations for Dogs

  • DHLPPC (Distemper, Hepatitis, Leptospirosis, Parvovirus, Parainfluenza, Corona combination)
  • Bordetella (Internasal)
  • Rabies
  • Giardia
  • Lyme

Play with your pet

By exercising with your pet you’ll:

  • Keep your friend healthy
  • Bond with him/her
  • Get some exercise for yourself in

There are a lot of cheap toys you can buy to keep your pet entertained. My cat is addicted to his 99cent mice. Remember, though, your pet’s best companion is you. Don’t just buy toys, interact with your furry friend.

If you have a dog, taking him or her out for a walk is good both physically and mentally for them.

Groom your pet yourself.

Keep their nails, teeth, ears, and hair clean. My cat isn’t exactly a fan of when I use the fine tooth comb for his hair, but he loves when I use the wider toothed comb because it’s like a massage. You also save some money.

 

Being frugal doesn’t mean being skipping on vet visits and buying low quality food (which in turn can aid a pet in gaining weight and developing other problems). It means saving money in case a serious problem comes up and you don’t worry about paying the light bill or your dog’s surgery.

 

Please be responsible and only get a pet if you can afford the basic care.

Where to find more information on reducing your pet care expenses

In case you want to compare and find some more information, here are some other posts on the topic:

Do you have pets? How many? How do you take care of them?

I’m curious to see how many people are pet-owners.

Photo Credit: fweez

 

 

 

 

Cutting the Cable Bill

By: Green Panda | Date posted: April 21, 2008 (11:12 am)

Last post I wrote about how the cable plus Internet bill here in the new state was less than the cable bill at our last place. One way we achieved it was cutting the extra channels. If we would’ve maintained both the extra channels plus the Internet it would’ve been about the same price we paid in our last state for just high speed Internet.

Choosing Our Cable Plan

Some people may have wondered why we didn’t just keep the extra cable channels if they was no change in our budget. The real wasn’t whether we can afford, it was whether we used it enough to justify paying for it.

My husband and I got used to not having those channels and were able to be fine. In fact some of the shows are available on the channels website, which gives the benefit of saving money and fitting TV into our schedules.

I was tempted to keep the channels, especially since I love Sci-Fi, HGTV, and Spike TV (they show Star Trek a lot). When I looked at how much TV I watch, though, I realized it was a waste of money.

How We’re Using the Money We Saved

I could think of three ways to better use it:

  1. Pay down my car debt. I can’t stand having this loan. This would help me sleep easier at night. (It’s growing everyday and my last payment had $50 applied to interest!)
  2. Put that into savings. That’s an extra $200/year that give me a cushion from bills.
  3. Put that towards our eating out budget. We do enjoy eating out with friends once in a while and I’d rather do that then veg out in front of the TV. I think after we pay off the car, we might increase our eating out budget.

Does this mean I’ll never upgrade my cable? No, never say never. Circumstances change and I can see myself watching HGTV. I just don’t think it’s the best use of my money now.

What bills have you cut down? Which expenses do you think are worth it? What’s your favorite channel and why?

Photo Credit: Midnight-digital

Update: The Carnival of Money Hacks #10 hosted by Money Hacks featured this article!

Our Budget After Moving Out of State

By: Blue Panda | Date posted: April 18, 2008 (10:26 am)

Since moving a few weeks ago to a new state I wanted to give an update to how our budget has been affected.

Bill Change
Rent

35%
Food

-
Gasoline

-50%
Cable/Internet

-15%
Car Insurance

-22%
Phone

-
  • Rent: This actually has increased, but we expected it would go up because we wanted a second bedroom. The apartment is twice the size of our old place and we couldn’t get the same deal in our old state. The one bedroom apartment was definitely affordable, but having guests over proved to be stressful. With a second bedroom in the new apartment, we’re going to use it as an office. We’re looking for a futon to utilize it also as a guestroom as we’re hoping friends and family will visit us. We also now have a second bathroom, a nice bonus, which is now used for the cat as his space.
  • Food & Phone: These are pretty much the same. We use our cell phones primarily and I added a Skype number ($3/month) for local people who call us.
  • Gasoline: My favorite change of the budget. I filled my gas tank and it lasts around two weeks (a bit more) instead of one. My work commute is mainly responsible as I’m 15 minutes away from work. Gas itself, though, is about 10 cents more in this state than last.
  • Cable/Internet: We got high speed internet and basic cable for less than just internet back home. Not bad. I use Hulu.com to watch some shows, so I’m not really craving the extra channels.
  • Car Insurance: Points to my husband for getting this expense down. I really happy we were able to save some cash.

So far we’re doing alright with the move. There is still a lot of the city to explore and boxes to unpack, but no rush. We’re just trying to enjoy our new apartment.

How was your budget affected from a move? Do you wish you did things different?

Photo Credit: krayker

April is Financial Literacy Month

By: Green Panda | Date posted: April 16, 2008 (6:38 am)

Photo Credit: Jekkyl

I just found out April is Financial Literacy Month. I decided to make a contribution by checking on the state of affairs of our future.

The Washington Post had an article about the lack of basic knowledge U.S. high-schoolers had in personal finances.

“In light of the problems that have arisen in the subprime mortgage market, we are reminded of how critically important it is for individuals to become financially literate at an early age so that they are better prepared to make decisions and navigate an increasingly complex financial marketplace,” the Fed chairman added.

Some of the questions were involving different type of investments and credit card liability. While those are good things to know, it would be great to focus on the basics of personal finance. Learning to budget can help them plan ahead for larger purchases, like buying a home.

It’s about building a foundation to get to the next step of what type of investments to use or how to plan your retirement.

I have to include Single Ma’s quote, which like her blog, is insightful and funny:

Personal Finance is NOT rocket science. If you earn $5 and you spend $6, that’s a bad. If you earn $5, spend $2, invest/save $2, and give away $1. That’s good. I hate when “experts” make people think you have to understand complex issues in order to make responsible financial decisions. It’s discouraging for the average person.

Personal finance is a necessary skill for life. You don’t jump right into the complex stuff, you start with the basics and then go from there. Just looking at some of the headlines in the papers, there are some problems that could’ve have been avoided if people followed the most basic rule of budgeting:

“Spend less than you earn.”

I found a great quiz to share with middle and high-schoolers that will give a reality check on how much it would cost to support their lifestyle. If you know someone who could benefit from it please pass it on.

While we can’t turn back the clock, we can start now on improving our finances. We can also help the next generation to learn good financial principles that will help them to succeed.

Don’t know how (or when) to start? One series is the M-Network’s Money Matters for All Ages. It’s available as a FREE e-book. Here are the articles in the series:

As you can see by reading my blog, I try to learn about finance and use what I learn (It’s useless unless you do). I’m not perfect, but trying to change little by little. What advice would you pass on?

Wonderful Dinner Last Night

By: Green Panda | Date posted: April 15, 2008 (5:58 pm)

Photo Credit: Harris Graber

My husband and I were able to meet Glblguy from Gather Little by Little for dinner at a local Cuban restaurant. The food was good and the company was great. He was charming and polite. My husband had a good time as well. I did bring my digital camera, but I had a such wonderful time chatting, I forgot to ask for a photo!  :P

Rebuilding An Emergency Fund

By: Green Panda | Date posted: April 13, 2008 (8:22 am)

 

I used some of my emergency fund to help with the moving expenses. Let me explain. I got a job opportunity offered that would give me:

  • A slight raise
  • More flextime
  • Less stress
  • A reason to move to an area with a lower cost of living

Sounds good, doesn’t it? The catch was we had to move out of state in two weeks. Needless to say that put us into rush mode.

We were fortunate to find a place with a rent that fits within our budget.  We got the utilities turned on Thursday and moved in on Sunday night last month. I have to say I really like our new place and my job is going well.

I did have to dip into my emergency fund, but I have in motion a plan to build it up (and increase it by a bit).

  1. Ignore my raise. I’m using my raise and putting it into savings. This is great because I know I can live on what I made before,  so it wont feel like I’m sacrificing a lot.  I should have the emergency fund back up to pre-move level by next Monday.
  2. Cut down on eating out. I’m doing this because I realize that I need to cushion my emergency fund just a bit more.  I’ve been eating leftovers and sandwiches.
  3. Save my extra gas money. My commute to work has went from 60 odd miles a day to less than 20 a day. It’s a nice change and puts some extra money for the emergency fund.

That’s my plan so far on getting the fund up. I also wrote about other ways to ‘find’ money in your budget for emergency funds. After refilling the emergency fund, I’m going to put the raise into eliminating my car loan. Being Frugal is also rebuilding her emergency fund. We have to compare notes some time.

How did you build or rebuild your emergency fund? What was the hardest part? What was the easiest?

Photo Credit:  babasteve

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