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Archive for November, 2010

I hid money from my boyfriend. Am I a bad girlfriend?

By: Kristina | Date posted: November 30, 2010 (8:00 am)

My boyfriend and I have been together for a long time, 11 years to be exact, and we always split all of our expenses 50/50. We earn approximately the same salary. However, I work in finance and a significant portion of my income is commission based. Therefore, in the last couple of years his income has been greater than mine.

The only time we don’t split our expenses 50/50 is when one of us wants something personal that the other person does not also want. A perfect example of this is our cell phones. My boyfriend always has to have the best new phone with the most expensive monthly phone and data plan. I on the other hand, have a very basic monthly cell phone plan and I never go over my monthly minutes. Therefore, we don’t share a family cell phone plan; we pay for our cell phone individually.

Another expense (and hobby) that I don’t share with my boyfriend is his love of sports, specifically NBA basketball and NFL football. From August to January my boyfriend orders the NFL Sunday Ticket sports package, this adds approximately $55 onto our monthly satellite bill. Since this is not a shared luxury, it is not a shared expense. I do not pay half of the monthly expense for NFL Sunday Ticket because I feel that football is a total waste of time.

This past week I had an extra $100 of disposable income and I did not tell my boyfriend about it. Honestly, I feel guilty about keeping the secret from him. I don’t know why I didn’t tell him, he wouldn’t have cared. Usually we don’t feel bad about spending our own money on ourselves. We work hard for our money, so if one of us wants to spend some extra money on ourselves it is ok.

I think that I didn’t tell him about the extra money because I didn’t want to share it with him. I wanted to spend it on myself. Is that totally selfish of me?

If I spent the money on takeout food I would also have to buy food for my boyfriend, because I would never eat out and not offer him some food. But when I pay for my boyfriend’s dinner it more than doubles my bill. I could eat out 3 times alone, or I could eat out once with him. I know it is probably selfish, but I just really wanted to spend the money on myself. Even as I write this I still can’t explain it. I did it, it’s not a big deal, but for some reason I feel bad about keeping this money secret.

Do you and your boyfriend/girlfriend keep your money separate or do you merge it all together?

Photo By Scented Mirror

I’m Only 20! Do I Need Life Insurance?

By: Kristina | Date posted: November 29, 2010 (2:27 am)

The answer to this question is yes. Everyone needs to have life insurance. Of course the amount of life insurance depends on everyone’s personal financial situation; which includes their assets, liabilities, and family situation. But the short answer to this question is yes, everyone needs to have life insurance.

Why Do I Need Life Insurance?

If you are in your 20’s than life insurance may not be your financial priority. You may be thinking about paying off student loans, planning a summer trip around Europe, or focusing on paying for tuition and books. However, life insurance should be somewhere on your list of financial priorities….even if it’s at the bottom of your list.

Our expenses do not stop after death. The most obvious reason for life insurance is to cover any outstanding debts that are existing at the time of our death. Believe it or not student loans, credit cards, and car loans all have to be paid off in full, even if the owner is deceased.

Even if we don’t have any debts, we will still need to have enough life insurance to cover our final expenses upon death. Believe it or not, death is actually a very costly expense. It would not be ideal for our family members to grieve over their loss while trying to find the money to cover all of our final expenses.

How Much Life Insurance Do I Need?

Funeral arrangements including the burial ceremony, the casket or cremation, a mass, and the flowers can also be a very costly expense. If we do not have life insurance to cover our funeral arrangements, our family will be obligated to pay for any final expenses out of their pocket.

If we are renting an apartment, the lease is not void upon death. The landlord will usually charge the equivalent of 3 months’ rent to break the lease. This is another added final expense upon death.

They say that two things in life are certain, death and taxes. This could not be more true. There are two tax returns that need to be filed in the year of someone’s death. The regular annual tax return needs to be filed, along with a final tax return.

Life insurance is a safe way to ensure that all debts will be paid off, and all expenses will be paid at the time of death. For someone who does not have any debts, I would recommend $20,000 to $25,000 of life insurance to cover all final costs and expenses. Of course this is a general statement and the amount of personal life insurance is different for every individual.

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Posted in Insurance | 2 Comments »

Yakezie Challenge Time

By: MD | Date posted: November 26, 2010 (6:00 am)

We started touching upon personal finance basics here at Green Panda Treehouse. This week we opened up the discussion on mutual funds and what they are. Mutual funds can be a powerful savings vehicle for all new investors. It’s just important that you look into the topic before you start investing your hard earned money.

1. Making changes @ Early Retirement Extreme.

2. Think Long Term When Shopping Black Friday and Cyber Monday @ Free From Broke.

3. Top 5 Reasons Not to Budget @ BITFS.

4. Time To Extend Unemployment Benefits Again @ Financial Samurai.

5. Performance Reviews: Useless or Worthwhile? @ Consumerism Commentary.

6. What Are Capital Gains? @ Canadian Finance Blog.

7. Turning Your Passion Into a Money Making Dream @ Buy Like Buffet.

8. A shot at redemption @ Punch Debt in the Face.

9. How to Pick the Perfect Christmas Tree (In 3 Easy Steps) @ Len Penzo.

10. Do You Actually Know How Much Money You Spend Per Year? @ MJTM.

11. Black Friday 2010 Deals: Walmart to Offer Price Matching @ KNS Financial.

12. Making the Most of Your Flexible Spending Account @ Everyday Tips and Thoughts.

13. How To Diversify Your Income @ Money Green Life.

14. Scrooge Had The Right Idea @ Control Your Cash.

15. Save Money on Food By Using a Dehydrator @ Out Of Debt Again.

Posted in Blog Round Ups | 1 Comment »

The Importance of Money During The Holiday Season

By: MD | Date posted: November 25, 2010 (6:00 am)

Holiday Season and Finances

How important is money exactly during the holiday season? I personally feel that money is really important during the holidays. Don’t start calling me a Scrooge or thinking that I forgot all about the spirit of Christmas. Both are far from the truth. Let me explain myself.

Here’s why I think it’s important to have additional savings ready for the holiday season:

Ability to throw parties.

I don’t know about you guys but the holiday break is a perfect excuse for me to have good company over. I like to consider myself a pretty darn good host. A part of being a solid host, involves having decent food and drinks for your guests. It’s going to be difficult to purchase enjoyable food and drinks if you don’t have any money saved up to do so.

A few more tips involved with throwing an unforgettable Christmas party:

Be accommodating to your guests. You don’t want to purchase a fridge full of meat for a vegetarian crowd. You also don’t want to grab vodka for a beer drinking bunch. It’s important that you consider your gifts prior to purchasing any items for the event.
Provide entertainment. Whether you decide to rent a few movies or dust off the old pool table. It’s essential that you find a way to entertain your guests all evening. You don’t want to throw a lame holiday party.
Ensure your friends reciprocate. The thing with throwing memorable gatherings is that others are bound to return the favour eventually. You don’t want to be the guy that’s always throwing events. It’s cool to have a circle of friends that takes turns with this.

Travel to visit people.

Do you have family or friends across the country that you want to visit? The holiday season is the perfect opportunity to use your time off to visit those that you rarely get to see. This is why it helps to have money saved up. If you have the money to do so, you can take advantage of the holiday break to travel to wherever it is that you want to visit friends. Without money saved up, you might miss out on some fun opportunities.

Show your appreciation.

I like to purchase gifts to show my appreciation for those around me. Christmas can be that time where you show those around you that you’ve been thinking of them. As you complete college and go through your 20s, you’re told that you’re “too old” for gifts. Why? How can you be too old for a gift? I personally don’t think that anyone is ever too old for a gift. This is why I like to use Christmas as the time where I show those around me that I pay attention and that I care.

What can you do if your financially not ready for this holiday season? What if your finances have been sidetracked and you have no savings left?

Prepare for next year.

The beauty about Christmas is that you know when it’s going to happen. Every year on the 25th of December, it’s Christmas. Instead of dwelling on it, you can begin to prepare for next year. You can use your ING Direct account to setup a separate savings account for this financial goal. The best part about long term savings is that you can set aside a small amount ($20 a week) as you plan to meet the goal.

Prioritize your spending.

Is your shopping habit killing your ability to visit friends? Buying that new Mac Pro might seem like a decent idea at the time, but how will this purchase affect your other financial goals? I like to prioritize my spending so that I spend my money where it matters the most, as opposed to frivolously throwing my money away on crap.

How important is money for you during the holiday season? Am I a complete whacko for even thinking about money and Christmas?

This article was part of a “finance and holidays group project” coordinated by Go Banking Rates.

(photo credit: Caveman Coker)

Posted in Budgets and Bills | 2 Comments »

Using Discount Sites When You Shop

By: Green Panda | Date posted: November 24, 2010 (5:00 am)

As a college student, I remember having a limited budget. I was working at the time, but it was to pay my bills and help with my education. Whatever leftover money I had, I used with my friends to have a good time and relax. If there was a deal at a restaurant or if any of us had a coupon, we were there. With a little creativity, eating and shopping were fun and affordable.

If you’re looking a limited budget or you want to reign in some of your spending expenses, I’ve gathered a small list of discount sites. Using these can help you save some money while you shop for thing you love and enjoy.

Travel Sites

Bing Travel: If you’re not sure if you should buy your plane tickets now or wait for a better deal, Bing can alert daily with prices and a forecast on price trends.
Priceline: I use their Name Your Own Price option often with our trips and have saved an average of 50% on our hotel stays.

Food/Dining

Restaurant: We’ve used this with a group recently and was able to a complete dinner for $13/person, including tax. Pay attention to any restrictions and you’ll be saving a bundle.
Groupon: Deals of the day can be found on the site.

Clothes/Shopping

Gilt: For those with expensive taste, but are looking for a deal, Gilt has some big discounts on apparel.
Froogle: Pretty much use this tool to see where the best prices are for items.
RetailMeNot: This is one of my favorite sites to find a last minute discount for online shopping.
FatWallet: Wonderful community that highlights deals around the web.

Thoughts on Discount Sites

I’d love to hear your best discount stories. I know everyone has their favorite deals and I probably didn’t include a few of them on my list. What discount sites do you use when you start shopping?How often do you use them? How much do you save on average?

Tags: coupons, discounts, student discounts
Posted in Deals and Offers | 1 Comment »

Being Frugal vs. Being Cheap

By: Kristina | Date posted: November 23, 2010 (2:42 am)

As we all learn to live on a budget, there is a fine line between being financially smart while watching our money and being flat out cheap. Think about the last time you tried to save a few cents or a few dollars. Were you clipping coupons or cutting financial corners? When we try to save money every month as we buy groceries and shop for our necessities I wonder…are we being frugal or cheap?

I personally don’t ever want to appear to be broke even when I have under $10 to my name until the next pay day. How can I be frugal without appearing to be cheap? Here are some tips to try and separate being frugal from being cheap.

Being Frugal Being Cheap

Buying frozen appetizers in bulk for 2 parties Bringing half eaten leftovers to a party

Ordering an appetizer as your meal Picking food off of your friends plate

Eating at home before the movie Sneaking popcorn into the cinema

Drinking alcohol at home before you go out Expecting other to pay for drinks all night

There are several ways that we can stretch out our money so we get the most out of our spending. Here are some ways to be financially frugal without being cheap.

Cut coupons. Don’t be ashamed to bring a coupon for every single item you buy. Sign up for online coupon websites and look through your weekly flyers.

Shop around before you buy. One stop shopping is a thing of the past. Look through the weekly online and print flyers to plan your purchases. We may have to visit a grocery store, a pharmacy, and a hardware store for our weekly purchases. It’s ok, as long as we save more money on our purchases than we spend in gas.

Don’t buy name brands. It is ok to buy no name or house brand products. We shouldn’t be name brand snobs. Usually we can’t even taste, see, or feel the difference between a name brand and a no name or house brand product.

It doesn’t matter who is watching. Don’t be ashamed to shop at discount stores such as Target, K-Mart, Wal-Mart, and the Dollar Store. They do have some good quality products that are definitely overpriced at other stores.

Photo By LomoCam

Posted in Budgets and Bills, personal finance | 2 Comments »

What is a Mutual Fund and Why Do I Need It?

By: Kristina | Date posted: November 22, 2010 (2:37 am)

A Mutual Fund is a pooled investment that buys stocks and bonds of individual companies and government bodies. A pooled investment accumulates all of the money from investors and purchases individual investments which make up the Mutual Fund.

According to Franklin Templeton Investments the definition of a Mutual Fund is an “investment portfolio (that) may be invested in one or more asset categories such as stocks, bonds and cash. These funds offer investors the advantages of diversification and professional management, for a management fee.”

How Much Does a Mutual Fund Cost?

A Mutual Fund indirectly charges clients through a Management Expense Ratio or MER. It is indirect because the MER is already withdrawn from the profits before the rates of return are published. The MER covers all administrative and management costs such as the fund managers salary, as well as accounting and recordkeeping costs.

A Mutual Fund company may choose to hire an individual fund manager, or a fund management team. Mutual Fund companies may also charge clients a transaction fee to purchase or sell our Mutual Funds as well as an annual account fee.

What are Mutual Fund Fees?

If we purchase our Mutual Funds directly through our Financial Institution we can save on all extra transaction fees. As an example if we choose to purchase HSBC Mutual Funds through an HSBC bank branch we would save on additional transaction fees. However, Mutual Funds will always charge an MER.

The transaction fees charged by a financial institution or a brokerage firm are called Front End Load Fees or Back End Load Fees. A front end load fee is charged when we purchase our Mutual Fund. It is usually a percentage of the total value of our purchase. A back end load fee is charged when we sell our Mutual Funds; it is also a percentage of the total value of our sale. As time goes by, the percentage of our back end load fee decreases. All back end load fees are usually 0% after a period of 7 years.

Why are Mutual Funds Good Investments?

Mutual Funds are good investments because their risk ranges from low to high, and therefore they are suitable for all types investors. Not all Mutual Funds are high risk. Investors who may not be comfortable with large fluctuations in the value of their Mutual Funds may prefer to invest in low risk Mutual Funds, such as Money Market Mutual Funds or Income Mutual Funds. Low risk Mutual Funds usually invest in short term investments such as banker’s acceptances and treasury bills. They can also purchase local and federal government bonds, as well as bonds of corporations.

High risk Mutual Funds invest in equities and stocks of companies. The stocks can range from large local corporations, to small or medium foreign companies. The investment options purchased in a Mutual Fund depend on the Mutual Fund objectives.

It is important to discuss any Mutual Fund investments with an Investment Advisor before making a Mutual Fund purchase. Investors should also read the prospectus prior to investing. A common investment vehicle in the past has been Globe Advisor mutual funds due to a variety of reasons. Ultimately, the decision you make is up to you.

Posted in Investing | 3 Comments »