Archive for the ‘Relationships and Money’ Category

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.

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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?

Marriage and Money: Roth IRAs and 401ks

By: Green Panda | Date posted: August 10, 2009 (4:39 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.

Retirement planning can seem like a far away goal for some, but it can be one of the smartest moves you make. How you two sat down and discussed some of your financial goals, like when how you’d like to retire?

Remember your marriage is more important than money.

Remember your marriage is more important than money.

Invest While You’re Young

Investing young for retirement brings compound interest on your side. Compound interest speeds up your savings without you doing anything, but automatic deposits in sensible investments. here’s a snippet from previous post on how compound interest works:

The concept starts with the principle that you have some money ($1,000) which is earning interest (10%) each year. So the first year, you earn $100 in interest. However, the next year, you do not earn another $100—you earn $110.

This is because your 10% interest is applied to both your initial principle and the interest you received. Thus, as time continues, your interest each year grows larger and larger because it is compounding on top of itself.

Have Your 401(k)s Working For You

Looking at the chart below, you can see if you are consistent with your contributions, you can have compound interest help you increase your retirement fund even more.

Early starts with retirement contributions lead to big finishes aka. more money.

Early starts with retirement contributions lead to big finishes aka. more money.

What’s more amazing is some employers offer a match for a percentage of money you put in. That’s free money you’re throwing away if you’re not contributing.

Check with your human resource department to see if you company offers a match and how much is it. an added bonus with 401ks is that the money is taken pre-tax, which can reduce your taxable income.

Open and Fund an IRA

Where can you open an IRA?

Many banks, brokerages, and credit unions offer both traditional and Roth IRAs. Compare your options to keep your fees as low as possible and get the best performance.

Some online options for opening an IRA (Traditional or Roth):

  • E-Trade (Annual fee and minimum are waived when you sign up for electronic statements)
  • Vanguard (Some funds require $3,000 minimum)
  • T. Rowe Price
  • Charles Schwab ($1,000 minimum is waived if you direct deposit $100/month)
  • Sharebuilder (No minimum to open; no admin annual fee)
  • Zecco( No minimum to open; $30 annual fee)

Each time you invest, you’re buying a bit at a time. Many choose to automate their investments at a fixed rate. The same amount is spent but the amount of shares you buy changes. I like index funds and when the price is low, I can get more shares for the same price I’ve been putting in.

While 40 years is a long time, the best time to start saving and investing is now in order to let compound interest work for you. Over time, you can make compound interest work for you.

Photo Credit: catlovers

Marriage and Money: Automating and Free Bill Pay

By: Green Panda | Date posted: August 07, 2009 (8:00 am)

This series was inspired by the recent marriage in our family. I organized some information with my brother in law and new sister in law in mind. If you find these tips to be useful, please share them.

Congratulations on getting married. I hope you have a happy and long one. One of the biggest reasons marriages have problems is due money issues. Remember your marriage is more important than money. Use money as a way to bring you two closer, not drive you apart.

This post is about creating a financial system that will help you and your spouse without having to keep tedious track of it.

Choose a Bank or Credit Union That Works for You

The best protection you can give your money is knowledge. Know your rights as a consumer and work on familiarize yourself with competitors’ rates and products. If necessary, you’ll know which bank to transfer your money. Use your money to show banks that support that support financial institutions that respects and value their customers, not belittle and exploit with fees.

Some Features to Look For in a Checking Account

  • No annual fees
  • $0 required minimum balance
  • Online BillPay service
  • Debit cards for purchases and ATM transactions
  • Plenty of in-network ATMs around you

Some Bonuses to Look For in a Checking Account

  • Interest bearing
  • Optional overdraft protection
  • Online images of most cleared checks

We use ING for our joint expenses and savings and have not had a problem with them. Their Electric Orange checking account is wonderful and fit all the essential criteria listed above plus it offers some interest on our money.

Setting Up Bill Pay

It took less than an hour to set up most of our bills with our checking  account. We only need around 20 minutes a month to pay bills.  Once you set your online bill pay system up, it’s very easy to maintain.

We took copies of our bills and set them in a pile. I entered the bill names, addresses, due dates, account numbers, and bill amounts with our bank.  You can set the bills up to be recurring, where it will pay it automatically for you. If a bill changes from month to month, I just login and change the amount. The bank takes care of the rest.

Easy Ways to Monitor Your Financial System

There are different ways that can help you watch and track your spending habits.

Personal Spreadsheets

We use a Google Spreadsheet for our joint budgeting. It’s free and easy to use. It lists our deposits and expenses for the month. We also add a buffer in case we go over what we plan. Using Google for our joint budgeting spreadsheet is great as we share the spreadsheet and it notifies the other person of changes. We review our  spreadsheet on an as needed basis such as when we went down to one income.

Mint

We also use Mint to keep an eye on our spending habits and set have alerts sent if we’re getting close to reaching one of our spending limits, such as eating out. We keep each other in the loop with balances before we had out to go shopping.

Wesabe

I have a Wesabe account and use it occasionally, not tracking my spending, but for the community. Wesabe has a HUGE community that can motivate and enlighten you on finances. Type in a goal that you have, you’d probably find a group on the topic. It’s a great way to bounce ideas off of people.

Your Take

Do you have any stories about what worked and what didn’t work with you? Do you have any ideas on future posts on the series?

Related Blogs

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Marriage and Money: Financial Game Plan

By: Green Panda | Date posted: August 05, 2009 (7:50 am)

This series was inspired by the recent marriage in our family. I organized some information with my brother in law and new sister in law in mind. If you find these tips to be useful, please share them.Wedding Cake

Congratulations on getting married. I hope you have a happy and long one. One of the biggest reasons marriages break down, though, is money. Remember your marriage is more important than money. Use money as a way to bring you two closer, not drive you apart.

If you’re looking to have a solid financial foundation with your marriage, here are practical steps you should start with right away.

Create a list of goals you wish to achieve in 1, 5, and 10 years. You two need to think about what you value. Talk about some financial and personal goals you’d like to achieve.

  • Do you want to eventually own a house in the country or do you want a condo in the city?
  • Do you like to have some gadgets or do you want to collect cars?
  • Does either one of you want to start a business?
  • Do you guys want kids down the road?

Asking these questions can allow you to build something together instead of cobbling a plan as you go. It can save you some headaches. Learn about each of your money personalities and talk about the differences up front.

Share with each other a list of your debts and assets. You need to have a clear idea of what your starting point is to have a plan as a couple. Don’t lie about the amount of debt you have, if you’re on the same page you can both work down on paying down your debt.

Create  a budget or spending plan together. Your first couple of times doing a budget together will be wrong. All couples have to go through this as they are merging their money, bills, and goals. My personal tip is to add 15% to your budget for things like car repairs, rental insurance, etc. Both of you should have a say on where the money goes.

Open a joint account together. Our main accounts are joint accounts and we both have access to the individual accounts in case of emergencies. I know some couple have separate accounts, but having some money pooled together encourages you to talk. consider having a joint savings account for some mutual goals, like a house down payment. I also recommend saving up for at least an annual vacation for the two of you. It doesn’t have to be grand or exotic, you just want to get away from it all and spend time together.

Make paying off debt a priority. Look again at your spending plan and see how much money each month goes towards debt. If you can eliminate that, you can spend that money instead on your dreams and goals. Use either a debt snowflake, snowball, or avalanche to work your way to being debt free.

Build an emergency fund. Start small and tuck away one months’ expenses and then automate a small deposit into your savings while you eliminate your high interest debt.understand that marriage, just like life, has some unexpected events. An emergency fund can relieve a lot of stress and tension in your relationship.

Rent an affordable apartment. Please try to keep your rent as reasonable as possible. If you are in a marriage with a lot of debt already, having a modest amount for rent can be a huge way for you to have money to pay down debt. You can always upgrade later, but it hard to downgrade. We had a very small first apartment (ask our friends), but we were able to pay off the car loan faster and later we upgraded to a more spacious place.

Drive used cars. I wish I didn’t have that car loan when we first got married. It was an annoying monthly bill that slowed us down on building our savings. Owning a car also means car insurance, gasoline, and maintenance bills. If you have a car that is relatively dependable and you own it, that’s a great win. If you live in a city with a good transportation system, then use it.

Set up free online bill pay with your bank. Most banks and credit unions offer this money and time saving feature. Spend an hour setting up your free online bill pay with your bills, account numbers, due dates, and amounts, and you’ll only need a few minutes a month to keep it up. I’ll have another post just on that soon.

Your Take

Do you have any stories about what worked and what didn’t work with you? Do you have any ideas on future posts on the series?

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