#261: Thank You, Bear! (Friday, December 30)

Early one morning, a little bear found a little box.

He looked inside. Then he exclaimed,

“Why, it’s the greatest thing ever! Mouse will love this.”

Bear’s friends aren’t so sure of his newfound treasure, however. “That’s not so great,” says Monkey. “I’ve seen those before,” says Owl. And by the time Bear finds Mouse, his own doubts have grown. But Mouse has the last say when he looks inside the little box. “It is the greatest thing ever,” he tells his friend. “Thank you, Bear.”

Excerpt from Thank You, Bear by Greg Foley

We're at the end of another year of Good Fridays! I can't believe we've gone through the year so quickly.

Like Monkey, you may have thought my financial tips were "not so great". Or some of you may have "seen them before", as did Owl. But I hope the majority of you were like Mouse and found them useful (yes, I know "the greatest thing ever" might be a bit of a stretch. LOL). 

And if you are even a little better at financial management than you were at the beginning of the year, then for me that is "the greatest thing ever".

As we leave this topic and move into 2012, here's the one link you need to help you manage your money and stay on top of your financial goals:

Wisebread: 190 Resources for Saving Money

Use it. Love it. Live it.

#260: The Things You Can Count On (Friday, December 23)

There are only two things that are certain in life: death and taxes.


Every year before December 31, I make sure I do one thing: I contribute to the 529 plans I have for my godchildren and niece. In New York, I get a deduction for contributions which is great for a single gal like me. But every April when I'm filing my taxes I inevitably hear about some other deduction that I might've qualified for if I'd done it in time. Buzzkill.

So I was absolutely thrilled to find this article on CBSnews.com that plainly lists the 7 deductions that are expiring this year as well as some other tax strategies that I can put in place, depending on whether I expect my income to increase or decrease. Yay!

Check it out; you only have a week left to take advantage of some of these before they're gone for good.

#259: You Are Not Your Stuff (Friday, December 16)

Accumulating debt can be a trap; it limits your possibilities because you're always consumed with paying it off. I've been following this blog, Man vs. Debt, for a little while and I think it's one of the best real life examples of how to become financially free. There's a post from a woman who sold the stuff she didn't need and netted $15,000 which she used to pay off her loans over the course of 9 months. But the most impressive thing thus far for me has been the list of the family's possessions. Yes, everything they own is cataloged on the website with pictures.

Many people spend a lot of time focusing on their "stuff"--the things they have and the things they want to have. We spend an inordinate amount of effort and money to acquire and store things we don't need. In fact, this year when I considered downgrading to a smaller apartment quite a few people discouraged it, even though I have a room that I barely use.

As we approach the holiday season of gift-giving it's important to remember that while it's essential to have good credit and some measure of savings, we are not our stuff.

I challenge you to spend one day before the year ends going through your stuff. Consider gifting the items you don't need (instead of buying new ones), or selling them and putting the proceeds into your emergency fund.

#258: The Courage to Be Different (Friday, December 9)

There is a saying that doing the same thing over and over again and expecting different results is the definition of insanity. I heard the same sentiment expressed a different way today:
"Running into a brick wall hurts just as much the first time as it does the 500th time."

In order to get a different result you have to be different. Whether you're trying to improve your credit, change your spending habits, save more or pay off your loans you have to change your current behavior in order to be successful. Sticking to existing habits and expecting your financial situation to change is like running into a brick wall over and over again.

They say in order to form a habit you have to practice the behavior for 30 consecutive days. I'm not sure how true it is, but it's worth a shot right?

So for the next 30 days, use your phone's calendar to keep track of your daily spending. Just write the amounts you spend. I recommend using your phone because it's something that's always with you so you don't have to worry about maintaining another log.

If you have an iPhone, you can download one of the many free aps available; just search "expense tracker" in the App store. Blackberry users can use Expensify or Money Menttor.

Keeping your spending habits at your fingertips is a great way to cut back expenses.

Breaking a bad habit is hard, but isn't the end result worth it?

#257: The Cost of Waiting (Friday, December 2)

We're already in December, can you believe it?! That means we only have five more Fridays to make some positive changes in our finances, so I'm going to make these five weeks count by providing some actionable idea you can implement every Friday 'til the end of the year!

This week we'll focus on the cost of waiting to save. What is it costing you? For me, every month I buy drinks from the vending machine instead of saving it, it costs me $40. Now that may not sound like a lot, but if I saved that money for a year I'd have over $500. Not to mention that water is a healthier alternative.

I found this wonderful tool called Me Save? on Feed the Pig that can help you figure out what kind of spender you are and how much you could save if you put that money elsewhere.

Use it and let's make these last five Fridays count!