My New Budget!

Instead of watching Desperate Housewives last night, I put together a tentative budget. I plan on opening a Schwab free checking account for my bigger items (rent, car payment, car insurance, etc.), but keeping my Chase checking account for my grocery money and fun money. The convenience of Chase ATMs in my area makes it difficult for me to give up that account, even though I have been disappointed with their customer service.

Break down of my monthly budget:
Gym membership--charged to my credit card
Groceries--$300
Rent--$380
Utilities--$40 (automatically charged to my credit card)
Car Payment--$222.65
Car Insurance--$104
Gas--$100
Clothing--$50 (I'm thinking about setting up an ING account for this)
Down Payment Savings--$50 (CitiBank Savings Account)
Travel--$50 (ING)
Presents--$50 (ING)
Roth IRA--$250 (automatically wired from my account)
Fun Money--$250

I have my health care (health insurance, dental insurance, FSA), taxes, and 401(k) contributions removed from my paycheck before I ever see it.

4.25% Interest Rate on a Free Checking Account with Charles Schwab

When I saw the title, "Going after 'lazy money' with 4.25% checking," I clicked, but expected to see a high minimum and a lot of strings attached. However, the article claims that the checking account is pretty much string free. "The Schwab account includes free checking, free online bill-paying and free rebates on any ATM fees customers incur worldwide." WOW! I'm definitely going to look into this.

Schwab also explain his motivation--luring younger clients (or nursery clients as he called us)

Each Schwab (Charts, Fortune 500) checking account will be automatically be linked to a brokerage account, into which customers can transfer funds in order to buy or sell stocks, bonds or mutual funds. Those who sign up for checking won't be required to trade, but Schwab still believes the account will serve as a gateway into the other brokerage and banking products Schwab markets.

I currently have a checking account through Chase that offers no real perks. I think I'm going to have to consider switching my accounts over to Charles Schwab. I went to their website, and I have to admit that I'm impressed. I also think it might be a good thing for me to have a checking account linked with a brokerage account, so maybe I'll start investing instead of spending.

50 ways to trim your budget

This is a great article on MSN money by Liz Pulliam Weston, 50 ways to trim your budget. Articles like this make me realize how much I need to re-do my budget in order to save enough for a down payment.

A few of my favorites:
Under the transportation cost, she mentions biking or walking as often as possible.

Under Food, bring lunches and snacks to work.

Cook once, eat twice: Double whatever you're making and freeze the excess for a later meal.

Give up a vice (smoking, drinking, soda, salt snack foods)

Under clothing and services, "Make hair appointments at beauty schools, rather than full-priced salons."

When will you be a millionaire?

I love the "When will you be a millionaire?" calculator on CNN Money.

My retirement savings will be worth one million dollars in 27 years and 4 months. However, with inflation adjusted (3%), I will have to wait 36 years and 1 month.

Fatwallet Cash Back

I received another $4.50 from the Fatwallet Cash Back Program. I purchased a pair of boring black flats for work from Zappos a few months ago. If you do any shopping on the Internet, Fatwallet is a great site to earn a little cash back for purchasing things you're already planning on buying anyway.

I deposited the $4.50 into my CitiBank account (bringing my account to a grand total of $24.17).

I've realized that my progress is minimal, so I need to make a few more changes. I'm going to begin to keep little jars around my apartment for spare change. I'm also going to prepare a new budget with monthly deposits into my down payment account.

I LOVE LISTS

Top Ten Reasons to Turn off Your TV

1) Television Eats Your Time

2) Television Makes You Stressed

3) Television Makes You Overweight

4) Television Make You Uninteresting

5) Television Ruins Your Relationships

6) Television is Not Relaxation

7) Television Loses Opportunities

8) Television is Addictive

9) Television Makes You Buy Things

10) Television Costs Money

Top 10 Fuel Saving Tips

This article from about.com entitled Top Ten Fuel Saving Tips gives obvious, but much needed advice.

1. Check your air filter--even better would be to switch to a K&N filter (I'm slightly obsessed with mine)
2. Check your tire pressure--under-inflated tires decrease gas mileage
3. Slow down--I probably will not do this
4. Hang with the trucks--ignoring this one too
5. Accelerate with care--I try, but fail.
6. Get back to nature--at lower speeds roll down your window instead of using the air conditioner
7. Back off the bling--stock tires give better gas mileage
8. Clean out your car--lighten the load
9. Out with the new, in with the old--I just think you should keep your old car and don't buy a new one.
10. Don't Drive! Working on this...going to start riding my bike to work.

Packing my Lunch

As mentioned in a previous post, I am horrible about packing my lunch. I'm trying to limit my meals out in order to save money. Last night, I went to Trader Joe's to stock up on easy, packable items. I picked up a few bags of prewashed salad greens, already sliced carrots, baby carrots, hummus, celery, pita pockets, fruit leathers, and gelato (not for lunches). I packed my lunch this morning in under 5 minutes.

Does anyone have any good tips for packing a lunch?

I'm also HATE to cook. So, I frequently order pizza for dinner. I'm trying to break the habit by stocking my freezer with easy to prepare meals (like frozen pizzas). However, I'm always open to new recipes that don't require a lot of ingredients. When I have visitors, I make a killer Chicken Pad Thai. I have to admit that my recipe may resemble Chicken Pad Thai, but I have made several changes to save time (took out a few steps, including the egg) and cut down on fat (cut out oil and replaced with lime juice).

Many Americans ignore their finances

A survey of 1,0003 Americans by Princeton Survey Research Associates International was was written up by MSN Money Staff here. I found it interesting that

Three in 10 people surveyed said they are interested in learning more about financial issues or seeking professional advice in the next year, particularly Americans 18 to 29, blacks, Latinos and people living in the South. Half said they would turn first to a spouse, parent, relative or friend for financial advice. A third said they did not know where to turn.

I think it is great that 30% of Americans are interested in learning more about financial issues. I think the key to reaching your financial goals is to create a budget. I really need to revamp my budget in order to save more for my down payment.

Addition to my Down Payment Account

You might notice that I have been increasing my account very slowly with any extra money that comes up. I do plan on funding the account with money from my paycheck as soon as I redo my budget.

The most recent $2.10 is from Fatwallet cash-back program. For those who are not familiar with it, you receive a percentage (based on the online retailer) back from your purchase if you click on the link from Fatwallet. I'm a huge fan of this page for freebies, online coupons, and the cash back program.

Gas Prices Increase 33%

My car takes up a large part of my budget--car payments, car insurance, and gas. Now, gas is more expensive. According to an article on MSN,

"After 11 consecutive weeks of price increases, U.S. motorists last week were
paying $2.88 a gallon, up 27 cents in just three weeks and 33% since late
January."

I have noticed the shift, and I will act accordingly. I will start to bike to and from work (even though it's only a 2 mile drive). I also switched to a K&N air filter. I will start to check the air pressure of my tires every time that I purchase gas.

My K&N air filter was an impulse buy, but I have already decided it was the right decision. I purchased the air filter because it was

1. On sale--came with a free cleaning kit
2. able to be cleaned, does not have to be thrown away
3. Increases gas mileage
4. Increases horsepower (this really wasn't a factor)

I have noticed a huge improvement in my gas mileage. However, the increase in horsepower, I have NO idea about that!

Increase your FICO score

I know that I am a long way away from applying for a loan, but I thought I would try to start increasing my FICO score now. As you probably know, a high FICO score=lower interest on your mortgage=lower monthly payments.

I found an article on CNN money with a few tips on how to raise your FICO score. They recommend the obvious things like paying off your balances to keep a low debt to credit limit ratio. They also mention that old credit cards (5 or 6 years old) help your credit score and newer credit cards can lower the score. I have an old card that I have had since college that I refuse to cancel. It doesn't give any sort of rewards and has a horrible interest rate, but I still keep it around. It's good to know that this is helping my score. Also, they let you know that requesting your credit report will not lower your score.

I'm going to request my credit report and start spring cleaning--cancelling any cards that I don't use (except for the college card mentioned above), correcting any mistakes, and double checking any information.

Vacation

I'm going to be away from my computer (on the beach) for about a week, so I won't be able (or want) to post anything new. This is a last minute trip. We found a great deal on a hotel from Travelocity.
I'm excited to get away from work and rainy, miserable weather!

Bank of America Checking Accounts

Bank of America has a referral program for their checking accounts. If you're planning on opening a Bank of America checking account, contact me and I will e-mail you a referral. The money I earn from referrals will go to the down payment savings account.

If the person you refers opens a Bank of America personal checking account with a Bank of America Visa® Check Card, they'll receive $25 (I will receive $25 also). Add any Bank of America savings account at the same time and they can get an EXTRA $10.

If the person you refers opens a Bank of America CampusEdge® Checking account with a Check Card, they'll receive $10 (I will receive $10 also). Add an approved Bank of America Student Visa® Platinum Plus® credit card or one of our Student College or University Cards, and they can get an EXTRA $10.

If the person you refers opens a new business checking account, they'll receive $50 (I will receive $50 also). Plus, if they open additional small business accounts at the same time they could receive up to $220. Add any Bank of America business savings account and they can get an EXTRA $20. Add any approved Business Credit Express® account, Business Credit Card, line of credit, loan or lease and they can get an EXTRA $50. Add and activate a Merchant Services Card Processing account and they can get an EXTRA $100.

Be Jane.

I recently found a link to Be Jane. on MSN, and I'm addicted to the site. Not only is it about home improvement, they dumb home improvement down and make it fun. Since I'm still in a rental, I will not be updating my shower head any time soon, but it's nice to know that I could do it if I wanted to.

I find both of the women extremely fun and interesting. I think my favorite story is how to replace a toilet seat. It's super easy to do, but I would have NEVER thought about doing it. Plus, I love how they put a black seat on a white toilet. SUPER CUTE!

Am I a Freebies Junkie?

Clicking around on about.com, I came across Are you a Freebies Junkie? I decided that I would come clean and admit my obsession. However, I only really found four that described me. I think I'm a fan, but not a junkie. No rehab for me!

can type the Web address of three or more freebies sites from memory--can't everyone?

get depressed on days when only one freebie arrives in the mail--I love mail!

have more than three free email accounts--I have a LOT of e-mail accounts.

have ever used soap that came in a first class mail envelope

How to make money online

I searched Frugal living on zotspot, and I came across this article on About.com.

Make Money on the Internet

They break it down into four categories: write content, boost forums and take surveys, blog for pay, and do rewards programs.

This is how I stumbled across myLot. I will keep updating my blog with any income that I earn from myLot. Since I found the website on about.com, I do have faith that it will pay. However, I'm not sure how much. I have attempted to link my blog to the page, so maybe that will increase the traffic.

myLot

I just joined a type of social website. This one pays you to post pictures, blogs, and comments.

SavingDiva

Zotspot Update

I was asked for an update about Zotspot. My account information still shows $0 for my earnings.

If you want to check it out,

101 ways to save $1 a week

My first million at 33 had an interesting post about a list of 101 ways to save money ($1/week). I couldn't help but look at the list to see which of the 101 I implement (or at least strive to implement).

101 Ways to Save One Dollar a Week

1. Draw up your current budget: I have definitely done this. I have a very in-depth budget based on the 60% budget solution outlined in this MSN article.

3. Turn off your lights

8. Simplify your cable--I don't have cable TV, just Internet.

12. Do the dishes--I don't use paper plates and cups because I don't want to add anything else to the growing landfill problem.

26. Keep air in your tires--I try to keep my tires at the required pressure.

35. Use cruise control--I use cruise control because my foot gets tired of holding the pedal down.

43. Ride a bike--I ride a bike to work in the summer, spring and fall.

44. Cut coupons--I only clip the ones for products that I know I will use.

59. Drink water--at restaurants instead of ordering a drink.

64. Shop online--I recommend using http://fatwallet.com for cash-back and for coupon codes.

The one that I am trying to reach (and would definitely save more than $1/week), number 97 take your lunch to work. If anyone has any advice about packing lunches, please leave a comment or e-mail me. I don't really cook...but at least I bought a few Tupperware items to transport food! :)

Drugstore Rebates

Since I just raved about Rite-Aid rebates, I thought I should also mention the monthly Walgreens rebates. Walgreens are the traditional mail-in, but you have to put all of your receipts from one month in the same envelope (and receive one check).

My favorite deals for Rite-Aid and Walgreens for the month of April.

Rite-Aid

Free After Rebate--Softsoap Pure Cashmere or Nutra Oil Body Wash, 12 oz.

$1.50 Rebate--GE Light Bulbs 60, 75 or 100 Watt Soft White Spiral (as discussed in an earlier post)

Walgreens

Free after Rebate--Aleve LiquidGels, 20 Pack

Free after Rebate--Excedrin Back & Body, 24 Pack

Free after Rebate--Butler G•U•M Toothbrush, 2 Pack

Another addition to eSavings Account

$9.00 deposit from Rite-Aid rebates

If you don't take part in this program, I recommend that you check it out. There are items that are free after rebate every month. Also, you don't have to mail in receipts like traditional rebates. You create an account, then input information from your receipts into the form. Then, you know within a few days if your purchases didn't qualify for the rebates (I've never had a problem).

GE Light the Way to a Better World

GE Light the Way to a Better World Sweepstakes

Prizes

Enter the GE Light The Way To A Better World Sweepstakes for a chance to WIN:
Grand Prize (1):
$5,000 Energy Efficient Home Makeover
1st Prize (1):
$2,500 Energy Efficient Home Makeover
2nd Prize (100):
A Copy of “365 Ways To Save the Earth” by Philippe Bourseiller, Published by Harry N. Abrams
3rd Prize (1000):
Free ENERGY STAR Qualified GE Energy Smart™ light bulb

I also was given a coupon (I had to get mine by mail, but it gives you the option to print) for a CFLB.

Compact Fluorescent Light Bulbs--Worth the Investment

In my previous post, I mentioned compact fluorescent light bulbs. I have only one in my apartment, but I am trying to phase them in(I don't want to throw 3 boxes of perfectly good light bulbs into a landfill).

The best article that I've found about CFLBs

"Watts and efficiency: Our ammeter’s CFL wattage results were all within 3 watts of manufacturer ratings — but all CFLs use about 70 percent less electricity than incandescent bulbs. The average U.S. household has 45 light bulbs — replacing that number of 75-watt incandescent bulbs with CFLs would save $180 per year."

This article also looks at 7 CFLBs and one traditional light bulb (Sylvania Double Life Soft White). I will definitely look back at this article before purchasing additional light bulbs for my apartment.

Could you live on $12,000 a year?

This is an article written by someone who lives on less than $12,000 a year. There are a ton of tips about how to save money (including switching to CF light bulbs). The motivation for this site is to avoid paying taxes. In order to avoid paying taxes (legally), they keep their income extremely low.

"The only way we have discovered so far to legally pay no income tax in the eyes of the government is to reduce your income below the taxable level. For single persons under 65 with no other adjustments, this would be $8450 a year. First of all, contribute to your Individual Retirement Account (IRA). Contributions to your IRA are not taxed until you retire and start drawing down your IRA account. For 2006, one can contribute up to $4000, or $4500 if you are age 50 or older. This brings our single person under 50 to $12,450 a year before he has to pay any federal income tax."

I know that I would be in serious debt if I had to live on $8,450 a year. Do you think you could do it?

To Withdraw or Not to Withdraw

I currently have a Roth IRA through Fidelity. I'm still unsure if I will withdraw any money from this to help with my down payment. It isn't 5 years old yet, but it will be by the time I purchase my first home. It's a tough decision. I also have a company 401(k), so it is not my only retirement account.

What do you think about withdrawing from an IRA to put a down payment on a house?

I also looked at a few place online. However, my favorite answer came from Carrie Schwab Pomerantz. She mentions the perks of a Roth IRA, which makes me feel a little savvy that I opened one up. Therefore, I wouldn't have to pay tax on the amount that I withdraw.

I currently set aside 15% of my gross income for retirement. However, my other savings are almost non-existent. I have a mutual fund that is not doing well, and about $1000 in a savings account (emergency fund). I am trying to save more, but I'm struggling.

First addition to CitiBank Savings account

I made my first deposit into my CitiBank Ultimate Savings Account. I only have a total of $18.57, but I'm on my way!

$5 from a Pinecone survey
$13.57 from selling junk on eBay

Blogging for Dollars

In her article about bloggers, "Blogging for Dollars," Johnson gives a few cases of bloggers making six-figure salaries from their blogs. She gives the example of Darren Rose of problogger.net. I will admit that I have been to his page a few times. I admire his dedication, but I'm not sure that I could post a minimum of 20 times a day as he recommends.

However, she does mention that, "Fifty-two percent of the 233 people surveyed said they blogged mainly to express themselves creatively; 85 percent said they did not blog to make money." I have to say that I'm part of the 85%. Since my blog is mainly to monitor my progress toward reaching a goal, I don't use my blog as a creative outlet either.

Why do you blog?

Do you think blogging is a fad that will pass? Or do you think that people love to know what's going on in other people's (mostly strangers') lives?

Frugal Living Meme

As a new blogger, I thought that I would participate in a Frugal Living Meme.

The rules are to write a post about "one thing you do well and one thing you do poorly with respect to saving and spending money"and link it back to the page.

I am great at using coupons and rebates. I have a coupon organizer that holds any coupons that I come across. I also have a folder with photocopies of all of the rebates that I've mailed in that I have to receive the checks from. With this skill, I will never pay for shampoo, conditioner, or toothpaste ever again.

Much like Superman has Kryptonite, I have restaurants. I hate to cook, so I frequently out. It's a habit that I am trying to squash. I'm the worst at lunch. There is a cafeteria in my office building that you can purchase an entree for $2-3. Oh, and it's delicious!

Interested in a link exchange?

If you would like to be added to my list of favorite blogs, please comment to this post. I would be happy to add you if you would be willing to do the same.

As an added bonus, your blog might be added to my list of daily reading! :)

23 Surprising Things You Can Get for Free

23 Surprising Things You Can Get for Free

A few of the items that I'm going to take advantage of

BBC, FrenchPodClass. The BBC offers top-notch online and MP3 lessons in languages familiar and obscure, including French, German, Portuguese, Mandarin, Greek, and Urdu. FrenchPodClass has easy-to-use, enjoyable podcasts that allow you to learn French while you do errands or go for a run.What’s the Catch? Classes are one size fits all, which fast learners may find sluggish (and slow learners may find difficult).Find Out More: www.bbc.co.uk/languages, www.frenchpodclass.com.

800-FREE-411. Instead of dialing 411 and being charged 50 cents to $1.50, call this service, from a cell or a landline, for free nationwide directory assistance.What’s the Catch? You have to listen to a 20- second ad before receiving your number.Find Out More: 800-373-3411 (800-FREE-411).

Ben & Jerry’s Free Cone Day. On one day every year (this year, April 17), all of the more than 600 Ben & Jerry’s stores worldwide offer free cones, with no limit — eat all the Cherry Garcia you’d like.What’s the Catch? There are often long lines, and popular flavors, like Chocolate Chip Cookie Dough, run out early.Find Out More: http://www.benandjerrys.com/scoop_shops/ for stores.

Buyers in Charge

I have recently become obsessed with reading anything I can about buying real estate. I found this great article on money.cnn.com.

"Buyers in Charge: 4 strategies"

By George Mannes, Money Magazine senior writer
April 12 2007: 8:54 AM EDT

The article is great because it shares the experiences of actual buyers, not just market statistics. All of the home buyers had received great deals on the purchase of their new homes. However, they did caution about jumping into the real estate market if you aren't prepared.

"For extra protection, buy only if you can make a 10 percent to 20 percent down payment and heed the lessons from the current mortgage madness: Adjustable rates do adjust, and when you're paying interest-only, eventually you will have to pay the principal as well. "

Quotes like this make me feel a little vindicated for trying to save for a down payment. I have a few friends that jumped in without any savings. Now, they're paying PMI, plus two loans. Most of them have had to rent out a spare bedroom in order to afford to make their loan payments.

And to sum up the article, and my current position, "Can't afford to buy the home you want at today's fixed rates? Keep renting or look at cheaper homes. " I guess I'll stay in my rental until I can save up enough to put down a 10-20% down payment.

Awesome Links

Is it better to buy or rent?
Compare the costs of renting and buying equivalent homes.

My Money Blog's Rough Guide to Money

A great blog with a lot of information

MSN's Savings Calculator

Figure out how long until your meet your savings goal (down payment), how much will I save, how much must I contribute to my savings, how long until I've saved my first million.

25 Rules to Grow Rich By

A great list about what types of home renovations give the best returns (bathrooms, followed by kitchens), total housing payments should not exceed 28% of gross income, how to improve your credit score, and more....

Fatwallet

A great place to look for online coupons, great deals on products, and freebies. I'm addicted to their forums.

Slickdeals

This is another great place to search for great deals on the internet.

How much house can you afford?

CNN Money version--put in your salary, down payment, interest rate, property taxes, and homeowners insurance.

Houses Cheaper Than Cars?!

When I looked at MSN.com, this article jumped out at me, "In Detroit, houses cheaper than cars." Mainly because the major goal in my life right now is to purchase a home (whether it is a condo or an actual house). At first, I thought that all of these houses must be pretty run down. After reading the article, I realized that if I lived in Detroit my dream of home ownership would be much closer than it is right now.

However, this article really makes you take a step back and consider homeownership. These properties are all foreclosures (over 300 sold over the weekend), which means that someone was unable to keep up with their mortgage payment. How many of these people got into a mortgage that was too much for their income?

"Real estate agent Ron Walraven had a three-bedroom house in the suburb of Bloomfield Hills that had listed for $525,000 sell for just $130,000 at the auction." I think the housing bubble has definitely burst in Michigan.

Trade your old stuff for new stuff

I recently discovered PoshPoints. It's an online trading community that allows users to buy and sell things (not at an auction) for points. You can buy additional points using PayPal, but wouldn't you rather try to sell some stuff that you have around your apartment.



The above icon will give you 15 points for signing up (and I receive 10 points for a referral). I blew all of my inital points on a magazine subscription. There are a lot of cool items like seeds for all sorts of plants, gift certificates, craft items, used paperbacks, and all sorts of junk. I just enjoy browsing through the listings.

The best part of the program is that the shipping is included in the price, so the seller pays for it. Therefore, if you sold something, you can send it the cheapest way possible and not feel guilty if it takes a few extra days to get to someone. However, if you buy something, it's totally free, no cash to be paid toward shipping (unless you decided to splurge and buy points through paypal).

Getting paid to search?

I recently signed up for a search engine that pays you to search. I haven't received any payments, and I'm not really sure how their pay structure is set up. As I find out more, I will keep you posted.

Selling on eBay

I used to sell designer clothing on eBay when I worked in retail. I found out what was popular (Juicy, Cosabella, Uggs, etc.) and would purchase the items to resell for a profit. I never made very much money, but it was a fun hobby.

Now, I'm trying to make actual money selling items on eBay. The first major barrier is--what should I sell? I recently found a website that you can earn free ipods (shuffle, nano, and video ipods) on the web. I saw this posted in a forum on SlickDeals. The users had varying degress of success, but there were not any negative posts. Ipod shuffles are going for about $60 on eBay right now.

What do you sell on eBay? Do you have any advice?

My first post

Welcome to my blog! I'm not really writing this for any readers, but more for myself. I realized the other day that I still refer to my parents' house as home. I'm tired of renting an apartment. I want a home to call my own. Therefore, this is my first (and I hope only) attempt at saving for a downpayment.

I will try to post any income that I am able to set aside for the downpayment, as well as any other means that I might be able to stash available cash.

I opened a CitiBank Direct Ultimate Savings Account (with 4.65%APY) http://direct.citibank.com/CBOL/07/usa/thirdpartymedia/default.htm?Promo_ID=CSKL&BTData=402107A706161745C564B46B8BEB1A9A19F9B8490FEF7F1EEEAC5C2D66FC7932&BT_TRF=519029&BT_CON=139&ProspectID=ABF4D9CBA08341F28F534E756F564887
It promises a $50 signup bonus if you qualify and open an account by 5/31/07.

If anyone has any advice, please feel free to send me a message. Even if you don't have any advice, general comments (even a hello) would be welcomed. This is my first blog, so I hope that I don't bore every person that attempts to read it. I will try to discuss my latest discoveries on saving/making money.