#248: A Balancing Act (Friday, September 30)

Last week, Wall Street had it's worst week in 3 years which prompted protesters to swarm the Financial District in droves. And now there's talk that another recession is approaching. So, like me, many people are having the same dilemma: should I be spending to help boost the economy or should I be saving and bracing myself for the months ahead?

I think the answer is a little bit of both...a balancing act, if you will. Life is short, so I don't think one can totally halt their goals and dreams just because they are afraid of a recession. If you've made plans and have a list of things you want to accomplish, you should still try to stay on track. On the other hand, I don't recommend frivolously spending. Tighten your spending where you can and try to increase your emergency reserves. I found this great video on CBS that provides tips on how you can increase your cash reserves.

Happy balancing!

247: An Essential Skill (Friday, September 23)

One of the most essential skills for successful financial management--or even life, for that matter--is the ability to budget. Budgeting, or lack thereof, is part of the reason our country is in a financial mess; it could mean the difference between staying on top of your bills and being engulfed by them.

My budgeting is generally very loose: I live off one paycheck a month and wherever it ends,  it ends. But there are times when I need to stick to a stricter budget and when that happens, I use The System, a bunch of envelopes that keeps me honest. Most people have heard about the jars, but I find that they aren't practical; who walks around with a bunch of jars?

How The System Works:

1. I make envelopes for each category of my expenses: Rent, Grocery, Commuting, Entertainment, Bills, Miscellaneous (doctor visits, medication, etc.)
2. I put the budgeted amount for each category in that envelope. For Rent and Bills, I use checks. For the others, I withdraw cash and keep it in the envelopes.
3. I leave my debit card at home and only carry the envelopes. 
4. I only use money from the appropriate envelope.
5. At the end of the month, if there is money left over in any envelope, I add it to my savings.

The System has been successful every time I needed to keep track of my expenses. If you have difficulty figuring out where your paycheck goes each month, or have difficulty meeting your monthly financial obligations, I definitely recommend this method.

#246: Do You Have the Formula? (Friday, September 16)

Good things come to those who work.


Life is a series of equations and formulas; you just have to apply the right one in order to find the answer you need. I think Success = Preparation + Hard Work + Timing + Positive Thinking. In order to achieve a goal, these four things must be present.

We all came into 2011 with financial goals--whether it was to pay off debt, get a better paying job, make a large purchase, save more, cut spending, start a business or get better at managing your finances. But how many of us have been applying the formula that will enable us to be successful?

An acquaintance of mine had the financial goal to increase his income in 2011. In order to do so, he needed to complete a certification in some IT system that would make him more marketable. In the beginning, I was his biggest cheerleader. I sent him links to places that offered his certification and followed up with him every week on his progress. (I think my constant followup was what made him register for the certification program to begin with.) But then I came to the realization that in order for him to be successful, he needed to be applying the formula for himself. I still provided encouragement, but stopped doing the work and preparation for him. He ended up taking the summer off and has decided to "wait and see what happens"...but he is still complaining that he needs to be making more money.

Do not sabotage your financial goals; apply the formula and you will be successful.

#245: The Glass is Full (Friday, September 9)

In the last couple of weeks, there has been so much focus on jobs and unemployment and it has largely been depressing. Most experts are saying the jobs are gone for good because the U.S. doesn't produce anything and corporate taxes are too high and we're victims of consumerism and blah, blah, blah. If you're someone who's out of a job right now, this coverage would probably send you over the edge of despair.

But remember, even in the Great Depression when the unemployment rate was at 25% (16% higher than it is today), 75% of Americans were still employed. 


So where are all the jobs? They are still many out there; I once read somewhere that most people already know the person/people who will get them their next job opportunity. I believe it's true; these days, getting a job is less about what you know and more about who you know. So here are some tips that may help you get the job you want (and I spoke to a couple recruiters about this, so it's not just my uninformed opinion).

1. Network. Networking is not about exchanging business cards. It's about establishing meaningful relationships with others. As a practice, I don't even own business cards; I take others' cards after I make a connection so I can follow up.
2. Befriend a recruiter in your industry. You need to know someone in your industry with whom you can discuss salary trends, available jobs and the like. Only a recruiter who specializes in your industry will have access to that information.
3. Do your own legwork. You can't just rely on a recruiter to send you jobs. You also need to help yourself. LinkedIn is still the best resource for finding jobs and people who can connect you to that job opportunity. TheLadders is also another resource if you're interested in jobs of a certain dollar amount, but it's subscription-based and they mostly compile existing information, so with a little groundwork you can find the same jobs on your own. If there are particular companies you want to work for, check their website frequently and also try to meet contacts there.
4. Volunteer. If you're currently out of a job, volunteering in your field can help you get in the door. For one, it helps you maintain a consistent work history (rather than having a gap in your work experience) and it can help you hone your skills. A friend of mine recently got a marketing job after volunteering her marketing services at a nonprofit.

Remember, "10% of life is what happens to you; the other 90% is how you react to it." Happy hunting!

#244: Til Debt Do Us Part (Friday, September 2)

For many men, their masculinity is tied to their ability to provide for their spouses and family. And in today's world, that often equates to making lots of money. Now I can't speak for every woman out there, but for me it's not about how much money a man makes, it's more about how he manages it. In relationships when couples argue about money, it's usually not about how much of it there is, but more about how it's being spent.

So when a friend of mine told me about a show--a reality show in Canada--that helps couples manage their finances and get out of debt, I was all over it! And then when I found out the host, Gail Vaz-Oxdale, is Jamaican, that sealed the deal. I couldn't believe some of the episodes: couples with $70k, $80k in debt and still spending. There was one episode where the couple had been paying off a $1,500 payday advance for years! Yikes.

And I just found out that the show is coming to CNBC; in fact I think one episode has already aired. I've got my TVR set!