Archive for November, 2011

Is Saving Money About Motivation?

By: Green Panda | Date posted: November 09, 2011 (5:00 am)

Why Your Friends Can’t Save Money

Have you ever heard any of your friends complain that they just can’t seem to save money? Have you ever tried to save yourself and wound up failing? Is saving really about motivation or is there a secret that can you reach your financial goals?

Believe it or not, many people fail due to two things - external and internal influences. External influences include losing a job, getting unexpectedly sick or injured, or having your car totaled. Internal influences are the psychologically barriers we’ve placed on ourselves.

While people often blame external influences on why they have no money saved up, there are many cases where it’s actually an internal barrier that can hold us up.psychology and money

Becoming Friends with Money

Being properly motivated to reach your financial goals often means have a realistic relationship with money. What feelings do you associate with money? Do you think about security and control or do you worry about how it would affect you?

Don’t make the same money mistakes others have. Become empowered to become richer and make more money.

Use Psychology to Become Rich

You don’t have to be super motivated and self-disciplined to build your net worth. In fact you don’t have to dedicate a huge amount of time to make better money decisions. What you need is to make our psychological barriers work for us rather than against us.

Here’s one example – having a debt free vacation. What usually happens is that we say we want to save for our vacation, but instead we end up putting the trip on our credit card and slowly pay off the debt until the next vacation comes around and we repeat the cycle.

Here’s what you can do in 5 minutes. Go to your banks’s billpay portion for your accounts. Set up an automatic transfer of x amount of money (10% of what you last trip cost you if you want a number) to either your savings account at the same bank or better yet to a savings account at another bank/credit union. The key is to make it automatic and make it a bit harder to get to your money.

Alan Corey used this technique with his paychecks and saved money to fuel his real estate deals and become a millionaire before he was 30.

It’s not hard at all, but it works.

Psychology of Money

Curious to see what affects your money making (or losing) decisions? Check other posts in the series:

What have been some hurdles for you when it comes to saving money? What helped you to succeed where you had failed before? How long did it take for you to reach your savings goal?

Photo Credit: shortformvideo

So Many Choices in So Little Time: College Choices That We Have To Make

By: Kristina | Date posted: November 08, 2011 (7:30 am)

Good Morning Green Panda Readers.  Welcome to the next post in our “Me, My College Education, and My Money” series.  Today we are discussing an important decision, actually many important decisions, that we have to make in College.  When we are in High School we are told that our study habits will determine how we perform in College, and in College the decisions that we make will determine how we perform in the work world after graduation.

Declaring a Major in College

College is full of tough choices from deciding on our course load to choosing where to study.  The first decision that we have to make in college is choosing our major.  Declaring a major in College is a big decision because it can determine our career path as well as our job opportunities after graduation.

I suggest that students take the maximum time allowed before declaring a major in college because it will help you explore your options, discover your talents, and avoid the same mistake that I made.  I applied to College in a faculty that seemed interesting in the course book, but that I really didn’t know much about.  I wanted to attend College away from home and the application deadline was quickly approaching, so I chose a major without exploring my options.

My quick decision to declare a major was a big mistake.  I changed my major twice before I graduated in my final program of study.  Thankfully I didn’t lose too much time and I was able to allocate the courses from my first two majors as electives, but some other students that I know where not as lucky.  Declaring a major in College too soon can add a lot of time onto our college career.  Our major in College should be a general topic and our minor (if we chose to declare one) should be a more specialized subject.

Deciding To Study Abroad

Some College Programs offer the option to study abroad for a semester.  If the option to study abroad is available I definitely suggest that we take advantage of this unique opportunity.  Learning about different cultures and how business works in different parts of the world can only help us in searching for career opportunities.  Many programs such as hospitality, finance, and business administration offer the option to study abroad.

Deciding not to study abroad in College is by far my biggest regret.  I often wonder what path my life would have taken if I had spent a semester abroad in Europe, South America, Africa, or Asia.  If I could go back and change one aspect of my College Career I would definitely decide to study abroad.

Applying to Grad School

Deciding whether to apply to Grad School is another major decision that we will have to make in College.  Students apply to Grad School for a variety of reasons that include everything from not finding a job after graduation to hopefully having more job opportunities after graduating from Grad School.  Before we decide to apply to Grad School we should consider the opportunity cost versus the educational cost.  Sometimes having the three letters MBA beside our name on a business card will not bring more benefits than the cost of a higher education.

 

Photo by Marina Avila

 Don’t Forget to Check Out the previous posts in this series:

Use Your Time in College Wisely

Trade School or College Diploma

Graduate From College Debt Free

How to Use your Time at College Wisely

By: Kristina | Date posted: November 07, 2011 (7:30 am)

Good Morning Green Panda Friends.  It’s time for the next post in our “Me, My College Education, and My Money” series.  Today we are discussing how to make the most of our time at college.  Every single year of college brings a new experience and a new opportunity; Green Panda is here to help you use your time at College wisely.

 

Our First Year at College

Our First Year at College is a social learning experience.  For the first time in our lives we are probably out of our comfort zone; we may be away from our families for the first time and we have to make friends.  The social aspect of our First Year at College may be the most important learning experience of all.

Our First Year at College is about making new friends who will become our support system throughout our College career.  It is important to have a strong support system because being away from our family and friends as well as living in a brand new environment can be very overwhelming.  I moved 800 miles away from my family to attend College and I was back at my parents’ house within 6 months.  I wasn’t prepared for this turbulent emotional road otherwise known as my First Year at College, and therefore I went right back to my comfort zone…my parents’ house.

 

Our Second Year at College

A year later I tried again and I am happy to say that I successfully completed my Second Year of College.  By our Second year at College we should have already made some great friends.  There is nothing that brings people together more than sharing a new experience and trying to bear and unbearable situation.  During our Second year at College it’s time to start getting our academic career on the right path.

Our Second Year at College should be used to make connections with our professors and other administrators in our program.  We want to get noticed and we want to put ourselves on the scholastic map. Join a club, become the member of an organization, and schedule meetings with your professors during office hours; even if you don’t have something specific to discuss, find a topic to talk about.

 

Our Third Year at College

During our Third Year at College it’s time to step up as a leader.  We have already made great friends, we have established a good support system, and we already got our feet in the door with the faculty in our program.  Now we need to make sure that our hard work and dedication are noticed by the right people.

In our Third Year at College we should offer to help our Professor with administrative tasks such as grading papers of their first and second year students.  A job as a Teacher’s Assistant is great experience. It also allows us to make a great connection with our Professors circle of friends who will hopefully become our potential employers after graduation.  If we joined an association it is time to move up from being a contributing committee member to an event organizer or a member of the executive committee.  We need to get our name published and we need people to start noticing us.

 

Our Fourth Year at College

Our fourth and final year in college is the home stretch.  This is where we really want to shine.  We have to put our previous three years of dedication and connections to work for us.  We can ask about, and start applying for internships or other entry level positions.

Career Prospects should be our focus in our Fourth Year at College.  We can ask for letters of recommendation from our Professors as well as the Administrators who oversee the committees that we joined. Use all connections and centers of influence to obtain any and all career prospects.

Don’t Forget to Check Out the previous posts in this series:

Trade School or College Diploma

Graduate From College Debt Free

Photo by Quen

Yakezie Challenge Time

By: MD | Date posted: November 04, 2011 (6:00 am)

Yesterday I went over Lifestyle Changes at Home That Can Help You Travel More and I shared practical tips that will help you travel more. Will this be the year that you do more and see more of the world?

Time for the Yakezie links:

1. Bank of America Debit Card Fees Are Cancelled @ KNS Financial.

2. Are The Top 1% Getting Screwed The Most? @ Financial Samurai.

3. Creative ways to help a charity without spending any money @ Wealth Informatics.

4. Avoiding Debt – Why is it Important? @ Life and My Finances.

5. A Week Full Of Temptations – And Victories! @ FGSW.

6. Are you penny wise but pound foolish? @ Bucksome Boomer.

7. November Net Worth–Remember To Back Up Your Information Edition @ MJTM.

8. 5 Saving Money Tips for Car Owners @ Consumerism Commentary.

9. 10 Tips To Slash Your Spending Now @ Not Made of Money.

10. Economic Inequality Is Bad For Your Health @ Retire by 40.

11. What Is Your Price? @ Mom’s Plans.

12. Clearance = Great holiday gifts! @ The Saved Quarter.

13. 100 Words On: Why Miracle Whip Doesn’t Belong on a Tuna Sandwich @ Len Penzo.

14. Eurail Adventure: Bucharest to Brasov @ Wandering Earl.

15. The Power of Money is Relative @ Money Crush.

Lifestyle Changes at Home That Can Help You Travel More

By: MD | Date posted: November 03, 2011 (6:00 am)

Welcome back to our traveling like a rockstar series. As you can tell by the depth of this series, I love to travel. I also love to help others travel and then discuss travel plans together. There’s nothing that excites me more than planning a trip. I love the trip of planning a trip. The euphoria kicks in once I book my flight ticket. Then I get more nervous/excited as the date gets closer.

Whenever discussing plans for my next trip I’m always bound to run into someone that’s going to say:

I wish I could travel like you do.

Guess what? We can all travel. You just need to make some lifestyle changes to help you cut back on your spending. If you’re serious about traveling more in 2010 you need to take this post seriously. If you slowly apply the following tips to your life you can find yourself traveling like a rockstar.

Let’s jump into the lifestyle changes that you need to make at home so that you can travel more in the future:

Go out to less expensive places.

I’m not going to tell you to never go out because then you’re going to hate me. I will tell you that you need to stop spending your money at expensive places that don’t add much value. What I mean by this is that you don’t have to go to some club that charges $20 to get in just to have a good time. You also don’t need to be buying $10 drinks. You can have a blast by going to house parties and making your party instead of spending large money for a night out.

The less money that you spending on going out, the more money you have to travel and see the world. Would you rather hit a bar in Budapest, Hungary or some expensive place downtown?

Learn to prepare your own meals.

Food is the biggest budget killer for most us. We either convince ourselves that we don’t have enough time or just forget to plan and we end up buying food. The problem with this is that the average take out meal can cost about $10 when we factor in the drink and whether we actually want to eat something healthy. On the other hand, if you prepare your own food you can find yourself putting together a solid meal for a few bucks.

What are some solid meal options if you want to prepare your own food to save money?

  • Egg whites.
  • Buying your own chicken.
  • Eggs and toast.
  • Homemade wraps with chick and your choice of wrap.

Give this a try and see how much money you save by not eating out. Then take this money and put it in your trip account in ING Direct or where you keep your savings. Grow this account until you hit $1,000. Then you can plan your next trip.

Delay your gratification

In other words, stop being so damn spoiled! Can you not wait until you buy expensive crap? You need to delay your gratification so that you’re not always buying the newest crap that comes out. You don’t have to deprive yourself from the fun stuff. You just need to delay the time it takes you to buy something new. I want an iPad, but I’m willing to wait until I see a massive price drop. If you want to increase your income while delaying spending, I always recommend finding one of the many online jobs for college students.

At the end of the day, if you’re willing to follow these tips most of the time, you can save some serious money that you can put towards your future travel plans.

Check out the other articles from the Travel Like a Rockstar Series:

Can I Travel When I’m Not Rich?

4 Little Known Ways of Saving Money While Traveling.

3 Things You Must Know About Traveling

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Decisions, Decisions – Making a Big Purchase

By: Green Panda | Date posted: November 02, 2011 (5:00 am)

I Want This! – Inside Decision Making Process of a Spender making big purchases

Admit it, you’ve been eyeing that TV for a few months now. It’s just the right size to fit in your living room without looking ridiculous. It’s been so expensive in the past, but now it’s on sale! Sure, it’s still a few hundred out of your budget, but the store has a great deal if you open a store credit card.

We all have a weakness when it comes to spending on things we enjoy. I’ve tried keeping up with smart-phones, but it’s just too expensive and not enough bang for my buck upgrading every year. I’ve learned my lesson and I’m keeping my current one until my contract ends.

Right now for my husband and I, game consoles and video games are our weakness for spending. We wait a few months before we buy most of games (exception for Mass Effect – gotta have it NOW), but they’re still fun purchases. They’re definitely not necessities so we plan before we buy them. We want to keep our financial goals while having some fun.

For some however getting a big ticket item can throw their finances into chaos, especially if they have no spending plan. How do you decide if this is a good buy for you? How do you know if you’re getting a good deal? I’ll share some tips on how we’ve saved money on big ticket items.

Saving Up for Big Items

Look for most items, it’s not a question of neccessity, it’s a question of afforability and desire. Why do you want this? How often will you really use it? How much joy will you derive from it? Of course if you’re married you have an additional person to consider before making a major purchase. Getting a TV may be financially fine, but what if your spouse nags you over it. suddenly it’s a little less enjoyable.

The big question, though, is – How badly do you want it?

You want to spend your money – go ahead it’s yours. If you want to spend your money while still building your net worth takes a bit more planning. It’s not hard at all, but it does take some discipline.

Make Saving Easier

Don’t wait until everything is paid off before you start saving, most times there will be nothing leftover. Instead schedule and automate transfers into a savings account for your big ticket item. tuck away that money into a high interest savings account. It’ll keep you less tempted from spending it too soon and you’ll earn just a bit of money while you save up.

Avoiding Falling Off the Wagon

If you need help keeping focused on your goal, use some of these tips to keep you on your path:

  • Have a visual reminder- Put your goal on the fridge or put a Post-It on your computer monitor.
  • Rally your friends - Get a support network to cheer you on. Better yet make it a competition to see who can save first.
  • Schedule a party - Confident that you’ll make your goal? Schedule a party celebrating your victory in advance. Knowing that friends will be there may be the nudge to keep your on track.

Don’t let big ticket items keep you from missing the big picture.

Getting a Great Deal

Want to make sure you’re getting a great deal before you hand over a big chunk of your money? Take advantage of these options:

  • Price Match: Look for this whenever you buy. Look for all the deals you can in your area. Show the lowest price to a retail store that offers price match and great customer service. You’ll save money and avoid headaches if something is wrong with your purchase.
  • Price Alerts: Don’t have time to shop around (shame on you!)? Use sites like Slick Deals can see you email when items go on sale for a certain price.

What sites and stores do you use regularly to get a great deal on big ticket items?

Psychology of Money

Curious to see what affects your spending? Check out last week’s post on choosing friends to build your net worth.

Photo Credit: sushi♥ina 

A College Degree or a Trade School Diploma. Which Will You Choose?

By: Kristina | Date posted: November 01, 2011 (7:30 am)

Good Morning Green Panda Readers.  Welcome to the second post in our “Me, My College Education, and My Money” series.  Today we are discussing the choice of attending College or Trade School.  There are advantages of having a College Degree but there are also several benefits to earning a 1 to 2 year Trade School Diploma as well. We are going to explore the cost of a College Degree versus a Trade School Diploma as well as the Job Opportunities that come with them after graduation.

The debate of a College Degree versus a Trade School Diploma is always ongoing.  Many students feel that having a 4 year College Degree is more beneficial than having a Trade School Diploma, but this is not always true.  My Dad attended Trade School for 2 years to become a Certified Mechanic and he has been employed at the same company for over 30 years.  My Mother graduated from University with a Degree in Human Resources and she has worked at 5 different companies over the last 30 years, so no one really knows which is better. I guess it depends on your program of study and what you want to achieve in your career.

The Pros and Cons of Trade School

A major advantage of attending Trade School is that it gives us real hands on experience.  This is great because we will know what to expect when we enter the work world after graduation.

Trade Schools usually offer a 1-2 year Diploma in a specific program of study.  This can be both a pro and a con of attending Trade School.  Being an expert in a specific field can help us work towards our dream job, but it can also be a problem if we lose our job.  Being a specialist in only one field with one specific skill set can be a problem if our field is not currently hiring.  It’s always a good idea to have a backup plan, for anything in life.

Another con of graduating from Trade School is that we may not like our program.  If we don’t have a back up career plan and we don’t like our program of study in Trade School we could be stuck after graduation in a job that we don’t like.  Trade School Programs of Study include Welders, Sound Engineers, Dental Assistants, Paralegals, and Mechanics.

The Pros and Cons of a College Degree

A major benefit of earning a College Degree is that we learn valuable information.  Because a college degree usually takes 4 years to complete, unlike a 1 to 2 year Trade School Diploma, we learn a lot more information; but it is also more generalized.

A 4 year College Degree can open many doors of opportunities for graduates of programs such as Human Resources, Business Administration, and Accounting.  These are jobs that may be offered in many different types of companies and corporations, this is an advantage because we do not have to limit ourselves to one particular sector or industry.  The Automotive Industry needs Human Resource Officers and Corporate Accountants just as The Field of Finance also needs them.

A con of graduating from College with a 4 year degree is that our program may be too general, and therefore we may not be able to find our dream job without a few years of working experience first.

Very often is the case that College Students graduate with a 4 year degree and they are unable to find work right away.  An alternative for recent College Students is to return to school or Trade School and narrow down their expertise to a specific field.

Check Out the other posts in our “Me, My College Education, and My Money” Series:

How To Graduate From College Debt Free

 

Photo by USACE

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