Archive for the ‘Relationships and Money’ Category

Enjoy The Small Things While Saving Money

By: Mike | Date posted: August 23, 2010 (5:00 am)


I’m on vacation for 2 weeks. I really like the end of August to take a some time off. The first reason I wait so long before taking my vacation is that most people went already and this leaves me with more time and space to do my things.

Last week, I took a full day to work on my land. I was actually planning on setting up a fireplace so we can enjoy a nice fire with a few marshmallows with the kids.

Since I live in a remote area, my yard is big enough to take a 20’ x 20’ spot to install a nice setup for a fire. I wanted it pretty big so I started my project early in the morning and dug a hole.

I asked my kids to gather small rocks and dry wood for the fire. They were all excited and they were running all over our yard to find what I asked for.

Building the whole thing cost me $40 since I wanted to place nice small rocks all around the fireplace. I used rocks and big pieces of wood to make a place to sit and I have gathered all the big rocks I could find to make a circle around the fireplace.

At the end of the day, I noticed how great my day was:

#1 I spent quality time with my family

#2 I got my share of exercise for the day

#3 I have a nice fireplace

#4 I felt proud of myself since it is now “my” fireplace.

This is when I realized that sometimes you don’t need much money to have fun. That you can find a lot of fun in the small things that don’t cost much. And, more importantly, spending time with my children makes me very happy and this, doesn’t cost a penny!

Tomorrow, we are heading towards Montreal to have a picnic in a park downtown. We will also go to a Museum and visit a labyrinth near the old port of Montreal. Then again, this vacation day won’t cost a thing but will definitely be enjoyable!

Image credit

Should I Borrow Money From My Family?

By: MD | Date posted: July 29, 2010 (6:00 am)

Loaning money from family– the post that you need to read. Us young people have a lot that we want to do and we want to do it right now. Once college is done it feels like it’s time for us to take over the world. We all would like to have the money to:

  • Start our own business.
  • Pay off debt.
  • Travel the world.

The only problem is that it feels like it takes an eternity to save up for any of these above options. This is when a loan seems like an excellent idea. Unfortunately, it’s extremely difficult to obtain a bank loan for traveling or starting your own business (and the interest rates aren’t the greatest). The only way to alleviate some of the stress of student loans is to consolidate your student loans.

The next logical step to ponder for many, is a loan from a family member– yes loaning money from family, a very sensitive topic but somebody has to cover it. Before you make any decisions regarding family and money, you need to consider the following questions:

How strong is our relationship?

How long have you known this person? Would the awkwardness that goes along with creating a lender-borrower relationship make it difficult to hang out? Everything could be perfectly fine with this person until money comes in the way. You need to take an honest look at your relationship and if money would hurt it. Chances are that yes it would. I know that’s not the answer that you want to hear, but it’s unfortunately more common for money to hurt relationships than strengthen them.

Who is this person to you?

What is your relationship with the lender? Your rich Uncle Fred will have an easier time loaning you a few thousand dollars, than your middle-class cousin Steve. You need to truly comprehend who this person is to you before you decide to ask them for money. You really don’t want to put anyone in an awkward position. You also don’t want to shed a negative light on yourself by asking someone for a loan that you really shouldn’t.

What if I can’t pay back this money?

This is a very sensitive area. You’re loaning the money with the greatest intention in the world to pay it back. However, what if life turns into a roller coaster and paying the money back within a specified deadline becomes impossible? Is there a backup plan? How will the lender deal with this?

There needs to be a contingency plan in place. You could offer to pay the individual the money back in set intervals. You could also offer to pay the money back through offering your services. Whatever the contingency plan is, it must be clearly identified and agreed on by both sides before you borrow the money.

One last final note– even though you’re dealing with family, you still MUST get everything down on paper, with the signatures of a few witnesses. You need to put emotions aside for a few minutes and agree to the terms of this financial agreement. A handshake agreement might work when you buy someone lunch, but not when thousands of dollars are at play.

My take on financial agreements between family members?

I wouldn’t do it. I stay away from this at all costs. I have loaned money to my younger brothers in the past, without expecting to be paid back (more of a gift). Maybe I will get paid back one day down the road, but I knew going in that I didn’t want to create a lender-borrower relationship with someone close to me. When it comes to anyone that’s not a parent or a sibling, I wouldn’t even entertain the idea. Nothing good could come out of it. I’m not telling you to turn your back on someone with financial woes, but you really do need to protect the relationships that matter to you by not getting money involved.

What’s your take on the issue of family and money? Have you been involved in such an agreement before? How did it pan out?

Img Source: Robby Virus

Finding The Balance Between a Sideline and a Day Job

By: Mike | Date posted: April 28, 2010 (6:26 am)


Since I earned my very first buck, I have wondered about how to make more. I wake up in the morning and dream of being an entrepreneur. I really would like to own my own business and be my own boss. Not because I have a power trip or because I absolutely want to manage a company; just because I am always thirsty for freedom!

We all have financial obligations. Some bigger than others. However, it all comes down to the same thing; we are afraid to quit our day jobs to pursue the dream of becoming an entrepreneur. I would hardly leave my day job at a bank to work on my own knowing that I am the only bread winner in the family.  My wife and 2 children (and my mortgage!) count on me to bring home the bacon.

So the solution I found as a compromise was to create a sideline (my online company) so I can keep my day job and still increase my income significantly (I have replaced my wife’s income with my online income). Finding balance between day job and my sideline is not always that easy. As requested by a fellow blogger, Financial Samurai, I am sharing how I was able to balance my sideline with my day job while keeping both at a high performance standard.

Finding the money

We started our online company very slowly because we didn’t have any money to chip in at first. The hardest part about creating a additional income stream is that it usually requires a cash injection to start. My partner and I thought of starting websites as it doesn’t require much money (a server at first and that’s about it!). Therefore, we were able to start something at a very low cost. At first, I thought it wasn’t possible to start a small business with $100… but we did it!

Finding the time

Time was and still is probably the biggest issue we have to manage. While you don’t want to lose your day job (we both still need it!), you want your company to grow at a decent rate (after all, we’re not in it just for the giggles  ;-) ).

I established a fixed schedule as to when I work on my company and have made it fit into my existing schedule. I think the key point is to seriously consider your sideline and to invest the time required to get results as it was for your day job. Don’t under estimate the power of a sideline. My wife was able to stop working because I have replaced her income with my online company revenues; everything is possible! However, you must remain disciplined about your project.

Don’t start by “doing it when you have the time”. The truth is that we don’t have extra time for anything. We have to make it a priority and do something with it!

My Schedule

In order to manage more than one blog at a time, I have created a fixed writing schedule. The time of day when I am the most productive is in the morning. This is why I write for a solid 30-45 minutes every morning. I prepare a list of topics I want to write about so I have don’t have to seek inspiration at 5 AM every morning!

In order to keep up, I have also kept Laura as a writer on Green Panda and I am looking for another writer at the moment. This should free up  enough time to concentrate on promotion and general improvement of the blogs.

Motivation

If you start a sideline that doesn’t motivate you, it will difficult to succeed. Like every other other field, the internet is a rough market and it is not always easy to grow your sites. It requires time, effort and if you don’t love what you do, you will quit at one point or another.

Final thoughts

If I had 3 “magic” rules to creating a sideline and balance it with your day-to-day life, they would be:

#1 Find something you love

#2 Take it seriously

#3 Blend it into your schedule.

Get Financially Naked Book Review

By: Green Panda | Date posted: January 06, 2010 (1:12 am)

Get Financially Naked: How to Talk Money with Your Honey is by Manisha Thakor and Sharon Kedar. I received a copy of the book for an honest review and I was pleasantly surprised by the amount of information packed into this slim book.

I think this is a good guide and easy to read in a weekend.

I think this is a good guide and easy to read in a weekend.

I’m going to present a brief review of some of the chapters so you can see if this book would be a good fit for you in your situation.

Get Financially Naked

The book opens up with description from real people on what financial empowerment means to them. Unfortunately far too many do not have this right now and the book mentions that approximately 70% are living paycheck to paycheck. Kedar and Thakor go ahead and explain some reasons for people living on credit and then have an exercise so the reader can look ahead to when they are financially empowered.

This book has a lot of write in activities to get the involved and they share they’re answers and personal perspectives on them as well. I think they do a pretty good job of balancing it all.

How Financially Compatible Are You?

The authors have some frank questions to help you see if  loved one is living beyond their means. I personally know of a friend that had a boyfriend always offer to pay her back, but he could barely keep up with his regular bills. Communication is the key to seeing if this is a lifestyle or if they’ve hit hard times.

Some people are afraid of creating tension by talking about finances, but I think you create more stress by being silent. If you need some motivation and information to get started, this chapter has what you need. There is a compatibility quiz at the end that could open up a discussion based on the results.

Save Wisely for Your Financial Goals

It’s good to have a financial gameplan that you both agree with if you’re married. That means creating a budget together. it may take awhile to get it right, but don’t worry, it’s normal. All couples have to go through this as they are merging their money, bills, and goals. My personal tip is to add 10-15% to your budget for things like car repairs, rental insurance, etc. Both of you should have a say on where the money goes.

My Take

I really enjoyed this book and I thought it covered some big topics without a lot of filler. Since it’s not as long as other personal finance books I’ve reviewed before I think many people can finish this as a weekend read if not sooner. I love the worksheets, scripts, and questions and I think this is a really practical guide for couple looking to be successful with their finances.

Your Take

If you grab a copy of the book, please share your thoughts on it.

Show Someone You Love Them Without Buying a Gift

By: Green Panda | Date posted: December 23, 2009 (8:49 am)


To me, love is giving your time to someone.

To me, love is giving your time to someone.

Some people feel a need to always give something as a gift to express how much they love someone. That doesn’t have to be the case. There are some things that can’t be bought.

Gifts of Time

  • Visit them. If you live nearby, see if you can at least spend a couple of hours or a day with a loved one occasionally. It’s hard to replace face to face’s power. I used to take my grandmother to the craft store to pick up some knitting material for her. It gave us an opportunity to spend some one on one time and we included a meal with the errand.
  • Call them. If you’re limited in your travel budget and you still want to stay in contact with your family and friends, consider calling them. Set aside a time where you can call your loved one, completely uninterrupted.
  • Send a letter. Emails are convenient, but sending a personal handwritten is well worth the effort. When we moved several states away, my grandmother used to get letters from us as we grew up and she kept all of them.

Please take some time in your schedule and show your loved ones how much you appreciate them.

Photo Credit:  Osvaldo_Zoom

In Good Times and Bad….. Book Review

By: Green Panda | Date posted: November 04, 2009 (8:00 am)

It’s time for another book review. In Good Times and Bad: Strengthening Your Relationship When the Going Gets Tough and the Money Gets Tight is from M. Gary Neuman and Melisa Neuman. This is an interesting one, especially in light of the economic times we live in. Gary Neuman has been on Oprah a few times and discussed this topic earlier this year.

Relationship advice for couples having problems with finances

Relationship advice for couples having problems with finances

Like a lot of my other book reviews, I’m going to present a review of some of the chapters so you can see if this book would be a good fit for you in your situation.

Chapter 1: Our personal story

The Neumans open up with their personal stories and share the growth and learning.  They’ve received from their struggles.  They had to deal with both financial and family health struggles.  Something I think some readers can identify with is their story of being upside down on a mortgage while balancing a family, raising two small kids, and having little savings.

They also shared a serious health crisis with one of their children. I could relate to this as my sister had to be hospitalized many times.  When she was a small child, due to epilepsy.  What I found interesting were the two questions posed in the first chapter, how do we come through an experience of difficult he impact or with a sense of growth?  What makes one couple stronger while other families deteriorate and failed?

I think this first chapter gives readers an idea if this book is for them.  It’s a great personal introduction and sets up how the Neumans’ can cover this topic.

Chapter 2: The decision to fight for your relationship

This chapter, shared many stories from different families struggling in their relationship.  Gary shared how he had helped a couple on the Oprah Winfrey show, with their marriage. Amy and Timothy were in a very difficult situation. Timothy had lost his job and then went into a deep depression.  He was isolating himself and Amy eventually left him and lived with her mother for a bit.

Gary spoke with Amy about her battle with cancer, and she had made the comment that that was easier than this problem her family was facing. besides the couple’s own struggles, Amy’s family added more tension.  Her mother was generously helping Amy out by watching the baby. Timothy made changes in his behavior and along with Amy, they decided to fight for their marriage.

Using the examples, the Neumans pointed out some teachable threads. They emphasize the fighting spirit, give yourself permission to have fun, and find something constructive.  They also shared a little history behind the Nobel Prize story.

Chapters 3: The moment to save (or lose) relationship

From reading this chapter, I gathered that a lack of clear and honest communication can be a huge problem. for one reason or another instead of tackling of the problem as a couple.  Sometimes we want to handle it ourselves. Some of the stories here present different ways that couples decided to communicate and work on their marriage.

Chapter 4: What money really means to you and your partner

This chapter starts off the second part of the book, transform your relationship. For many people, a fight about money isn’t really about the money. As Dave Ramsey likes the point out how personal finance is 80% personal. While we were growing up we were learning what money is or is it from our family, whether right or wrong.

There’s an exercise on page 41 that can quickly let you and your spouse see, what money represents to you.

as with the other chapters, the Neumans gives case study after case study of couples working through their financial and their family problems. Many people have a fear of money and have been paralyzed, allowing their relationship to deteriorate in their finances to dwindle.

Chapter 5: What you learned about money

This chapter gets a little bit deeper about the lessons we learn concerning money.  It tackles topics like:

  • the difference is between handling money
  • who’s responsible for managing and making the money you sentence,
  • how should people discuss money
  • What money means to you

The issue of keeping up with the Joneses is discussed here. I think it’s quite easy to be influenced by your friends and neighbors ever so slightly.  But sometimes you don’t even notice.  I also found it interesting that the Neumans looked at, briefly, the American culture of consumption.

My Take

I really enjoyed this book, and while I would’ve preferred more financial topics discussed, I understand that that wasn’t the authors intention in writing the book. I think this is a helpful book specifically for families trying to keep themselves together, while going through hard economic times. I think the biggest message here is the advice:

Attack the problem, not each other.

I enjoyed the exercises and case studies that the book presented and it definitely made for a good conversation topic with my husband this weekend.

If you are single college student,  you should probably check out the book in the library and just scan and review part two with the book.  It does a pretty good job of covering situations that many people find themselves in when they’re dealing with money in a relationship.

Your Take

Do you think that this economy has added more stress to your marriage? What have you been doing to stay on track with your family and your finances? When you finish reading the book, I’d love to hear your thoughts.

5 Things Your Parents Didn’t Teach You About Money

By: Green Panda | Date posted: September 02, 2009 (8:03 am)

Today’s guest post is from Broke Grad Student founding member and catalyst of the College Money Network. Please subscribe to his blog to receive the latest. This part of our “Back To School Shuffle” series, where we will be sharing articles on a variety of back to school topics and giving away an iPod Shuffle and other prizes.parent and child

As we grow older, we start to realize how much information our parents hide from us when we’re young. That’s right, Mom and Dad, the birds and the bees didn’t fool me. Okay, maybe it did for a little while, but just like everyone else, I figured it out.

There are certain topics that every parent dreads having to discuss with their children. Without a doubt, sex is the at the top of the list (it’s so awkward that we just call it “the talk”), but the only other topic I remember my parents avoiding like the plague is money. As I’ve grown older, I’ve started to realize why parents don’t like to talk about money, and it’s as simple as these five things.

1. Parents don’t know everything about money.

Parents don’t want to admit to their kids that they don’t know everything they should know about money. When I was a little kid, I was pretty sure my parents knew everything. How else would they have been able to keep answering my endless succession of whys? The truth is your parents may not have taught you about money management because they never learned it themselves.

2. The only way to learn is by making mistakes.

You can read, write, ask, and talk about money all you want, but until you actually do something with your money, you won’t learn anything. Knowledge is only half the battle. Knowing everything about a Roth IRA won’t do you any good if you never open one, and even if you do open one, there’s still a chance that you could lose your money. Learn from your financial successes and failures, and use the experience to help you fight the other half of the battle.

3. Never lend money to your friends.

No, I’m not talking about lending a few bucks to a friend to cover lunch. That’s fine in small doses. I’m talking about what to do when a friend says they have a great idea for a business and need some financial help to get started. Or maybe they found an awesome car but need to borrow some money to pay for it. The answer is simple — no. The only reason you should ever say “yes” is if you can honestly say that you wouldn’t mind never seeing your money again. Otherwise, don’t expect your friendship to last if/when they don’t pay you back.

4. Stuff does not equal wealth.

Just because someone has a lot of nice stuff — a luxury car, designer clothes, a big house, a boat for the weekends, etc. — doesn’t mean that they’re rich. In fact, it might just mean that they spend all of their money on stuff that they may not even be able to afford, which means they’re actually broke. Why don’t our parents teach us this? Because it’s natural to want to keep up with the Joneses, and they may be guilty of overspending themselves.

5. There are trade-offs to everything, including making a lot of money.

I have a rich uncle, and when I was growing up, my parents used to encourage me to talk to him to learn his money secrets. When I went to college, I became friends with someone whose parents are rich. Both cases are stories of self-made millionaires, and after hearing their stories, I’ve realized that there are definitely trade-offs involved. Forget about free time if you start your own business. It’s a 24-hour job. My parents may not be millionaires, but my dad always had the time to coach my little league baseball teams when I was growing up. That wouldn’t have been possible if he had been running a business at the same time. Nothing in life comes for free.

Photo Credit: pipitdapo

Marriage and Money: Joint or Separate Accounts

By: Green Panda | Date posted: August 12, 2009 (5:07 pm)

This series was inspired by the recent marriage in the family. I organized some information with my brother in law and new sister in law in mind, though the information can apply to others looking at their finances. If you find these tips to be useful, please share them.

Seeing how finances can have an impact on marriage, here are tips and stories to help you avoid common financial pitfalls of married couples.

Having joint accounts, separate accounts, or a combination of the two is a very personal and emotional topic. Each couple has to decide for themselves what’s best for them. Find out how we and other handle our finances. i think this is a great opportunity to learn.

Our Joint and Individual Bank Accounts

Joint Checking

This is our main account and a big chunk of our paychecks is directed towards it. It’s an online bank account (we used to have a Bank of America account) that we use to pay our bills like rent, groceries, cable, light, Internet, doctor visits, and car insurance . My paychecks come in on a weekly basis and my husband deposits twice a month. The majority of our bills are scheduled and automated.

Joint Savings

We  use this to keep our emergency fund and our house down payment. With interest rates going down, we’re not earning as much as we did before, but it’s still more than the local bank options right now.

Individual Accounts

We have our individual accounts at Wachovia. These individual accounts are for splurges such as lunches out, gifts, gadgets, and gasoline. We know the balance of each other’s account and we can access them in an emergency.

All of our bank accounts have no maintenance fees.

How We Budget Our Joint Accounts for Income:

I think the key for us is keeping it easy to use and easy to change. We use a Google Spreadsheet for our joint budgeting. It lists our deposits and expenses for the month. We also add a buffer in case we go over. Using Google for our spreadsheet is great as we share the spreadsheet and it notifies the other of changes.

We review this on an as needed basis, if someone gets a raise or works more hours, etc. To determine how much each deposits, we go by monthly income and come up with a percentage and then use that to calculate deposits.

How Others Handle Their Finances

Jim from Bargaineering and his wife have joint accounts.

Baker explains why they handle their finances with joint accounts:

Once we were married though it was our debt.  Our income is our income.  Our bills are our bills.  Our financial goals are our financial goals.  I love the fact that we have one shared plan and are constantly working together to implement it.

JD from Get Rich Slowly and his wife have separate accounts.

Your Take

How do you handle your joint finances?

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