Wow!  March was a seriously crazy month.  A crazy wonderful month.  Highest traffic by far, which is awesome of course.  So thank you for that.  Subscribers went from 400 to 480ish.  Yay!  I want to give a special welcome to all my new subscribers.  I hope you enjoy your stay.

My post Sam’s Club vs. Costco was editor’s pick in the Festival of Frugality and then was picked up on MSN Money. That is always a nice surprise and it brought a ton of traffic.  I also hosted the Carnival of Personal Finance yesterday.  Make sure you check that out.  There are a ton of great articles in there!

I got a lot of help on my site this month from some wonderful bloggers.  I want to take this opportunity to give them a public thank you.  It would have been pretty bare and boring around here without them.

So here is a big thank you to…
Credit Card Assist
Budget Pulse
My Fit Wallet
M is for Money
Ultimate Money Blog
Financial Nut

If you enjoyed their guest posts make sure you head over to their site and check out everything else they have to offer.

Ok, so with all that said here were the most popular posts this month, according to traffic.

Costco vs. Sam’s Club
A trip to Costco
100 uses for vinegar
Why we upgraded our Costco Membership
Budget Percentages
5 easy ways to increase your savings
Turning a hobby into a business
Pay cuts vs. Layoffs
Housing prices over time
Show up

And here were the top 10 referring sites (leaving out MSN money, Google, or Stumble… they certainly don’t need any link love from me)

Living Almost Large (+2)
Ultimate Money Blog (new!)
Not the Jet Set (no change)
Remodeling This Life (-4)
Shaking the Money Tree (+5)
No Credit Needed (no change)
Frugal Dad (new!)
M is for Money (-1)
Political Calculations (new!)
Wise Bread (new!)

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Hello and welcome to my blog.  I’m thrilled to be hosting the Carnival of Personal Finance today.  My name is Ashley.  I post here daily about my family’s finances with a focus on budgeting, saving, and frugal living.  I hope you take a look around and if you like what you see please subscribe!

Editor’s Picks

Here’s a World Record I would like to take a shot at.  The most Ferrero Rocher chocolates eaten in one minute.  Seven!  I think I could swing that.  On October 10, 2008, Jim Lyngvild ate seven Ferrero Rocher on TV in Denmark.   So while I try a shot at my favorite world record… make sure you read my favorite submissions to the Carnival this week.

Mrs. Money from Ultimate Money Blog presents How to Avoid Prepayment Penalties.  Seriously, never pay another prepayment penalty again.  It’s simpler than you think!
Mr. ToughMoneyLove from Tough Money Love presents Money May Satisfy But It Does Not Bring Happiness.  I totally agree.  Once you have your basic needs met, your happiness is up to you.
Wojciech Kulicki from Fiscal Fizzle presents Using a Monthly Report to Discuss Money With Your Spouse.  Getting your spouse on board with the financial plan is absolutely critical to its success.  If you are having trouble talking with your spouse then this post is a must read.
Matt from Finance for Physicians presents 9 Ways for Medical Students to Begin Building Wealth.  These steps aren’t just for Medical Students.  They are for absolutely everyone!
D4L from Dividends Value presents Will Housing Lead Us Out Of The Recession?.  Some uplifting news about the housing market… finally!

Money Management

The most expensive pair of jeans :  An original pair of Levi Strauss & Co (USA) 501 jeans aged over 115 years old were sold by Randy Knight (USA) to an anonymous collector (Japan) for $60,000 (£33,230) through internet auction site eBay on June 15, 2005.

Jason Unger from Automatic Finances presents The Superstar Athlete’s Guide to (Mis)managing Your Money.  Sad but true.  Don’t manage your money like a Superstar!
FFB from Free From Broke presents No Job Is Below You!.  Any job you put your all into is a job to be proud of.
Super Saver from My Wealth Builder presents The Recession Has Stress Tested our Financial Situation.  Super saver takes a look at their retirement savings and gives an analysis.
Thomas from Paying For Retirement presents Flexible Spending Accounts - Did You Know?, and says, “Discloses the advantages and disadvantages of having an FSA account including how to get free money.”
Neal Frankle from Wealth Pilgrim presents Do You Have a Financial Allergy?. Often times our feelings about money have nothing to do with dollars and cents.
Glblguy from Gather Little by Little presents The importance of income diversity.  I’ve come to see the importance of income diversification lately.  This is a concept that everyone should be aware of.
Four Pillars from Four Pillars presents Buying A New Car or Used Car? Things To Think About. New car or used car? The issue is more complicated than you might think.
Erin from PlinkPlink: Moms Talking about Money presents Mom Reigns as CFO in Many Families.  What percentage of women feel they are the household CFO?
Money Blogger from Another Money Blogger presents My Personal Finance Mistakes: The Beginning.  The start of a series of posts about financial mistakes in his past.  Seems like being raised poor would set a person out for good money management.  Click through to see how it did just the opposite.
CPF from Christian Financial Help presents 12 ways to earn extra money - doing what you love!. These are 12 great tips to make some extra cash doing things that you love to do!
asgreen from Always the Planner presents Talking About Money.  I’m a huge huge fan of honesty in money.  But you guys already knew that.
Emiley Thacker from The Smarter Wallet presents Should You Buy Extended Warranty Coverage?. I never pick up the extended warranty.  Extended warranties are very profitable… for the seller.  Which means that most people never use them.
Stephanie PTY from Poorer Than You presents What You Don’t Know About Renters Insurance.  I never had renters insurance, but it’s probably something all renters should have.
Pinyo from Moolanomy presents Extra Income Ideas For College Students And Recent Graduates.  Here are 7 ideas that college students and recent graduates can use to start earning side income.
Kyle from Amateur Asset Allocator presents Avoid Scams By Using Common Sense. Unfortunately, I think common sense is a rare commodity.
Studenomist from Studenomics presents Can You Be An Entrepreneur Within An Organization?.  I really never looked at being an entrepreneur this way.  Interesting.
RC from Think Your Way To Wealth presents Do You Think Like a Rich Person.  So true!
Flexo from Consumerism Commentary presents Eight Tips for Living Through a Recession.  Good tips for all the time, not just recessions.
Kate Kashman from The Paycheck Chronicles presents Powers of Attorney.  I’m surprised that USAA doesn’t have a better system for Powers of Attorney.  That seems like something they would deal with all the time.
FMF from Free Money Finance presents 20 ways to make more money.  Everyone can use more money and you should be able to find at least one thing in this list that suits you.

Investing

The largest gold coin weighs 100 kg (220 lb 7 oz), measures 50 cm (19.6 in) in diameter, 3 cm (1.1 in) in thickness and is made from bullion with a purity of 99.999 per cent. The legal-tender coin was introduced on 3 May 2007 by the Royal Canadian Mint with a face value of CAN$1 million (US$900,375; £451,585).

RJ from Our Financial Planner presents Portfolio Income and Financial Independence. This is a really good read.  It points out the whole reason we should be investing.
jim from Bargaineering.com presents Guide to Social Lending Networks.  A must read if you are thinking about getting into peer to peer to lending.
FIRE Finance from FIRE Finance presents Early Retirement Case Study - Sandy Aldridge and Dale Lugenbehl. Here’s a couple who retired comfortably on $270,000.  Find out how!
Investing School from Investing School presents Diversification Across All Asset Classes. Are you diversified?  I mean really truly diversified?  Read this article to find out.
Kyle from Suburban Dollar presents Why Lending Club Isn’t for Most People. Do you know the qualifications for being a lender with Lending Club?  I had no idea.
ABCs of Investing from ABCs of Investing presents Online Discount Brokerages.  A brief description of online or discount brokerages.
The Financial Blogger from The Financial Blogger presents 3 Reasons Why You Should Not Do Market Timing.  If you got out of the market before the crash… great!  But when will you get back in?
Amit from Investo Blog presents Covered Call Writing explained. Writing a Covered call and some variations of this options trading strategy explained using a simple example.
Retirehappy from My Retirement Blog presents Earning $20,000 Equals Half Million Dollar Nest Egg.  A nice compromise for those who can no longer retire due to market conditions.
MoneyNing from Personal Finance Blog by MoneyNing presents The Impending Retirement Crisis.  Another crisis? Can we really handle it?
Debt Kid from Debt Kid presents What is a Self Directed IRA?. Ok, I’m going to be completely hones here.  I’ve never heard of a Self Directed IRA.  But it seems interesting.  I would like to know more.
The Dividend Guy from The Dividend Guy presents 8 Ways to Deal with Volatile Markets.  The markets will go up, and the markets will go down.  How you deal with it will affect your returns.
Ray from Financial Highway presents Leveraging-The Benefits and Dangerous.  Find out the benefits and risks of leveraging.
LAL from LivingAlmostLarge presents Cheering the Meltdown?.  I just wish I had some money to take advantage of the discounted prices.
ElizabethG (Modern Gal) from Modern Gal presents Where Did the Dividends Go?.  Good question.  Find out how she is dealing with the missing dividends.
Jeremy from Generation X Finance presents Five Things We Can Learn From the Market Bust.  I’ve learned I have a higher risk tolerance than I thought.
Sun from The Sun’s Financial Diary presents Asset Allocation: What It Is and Why It Is Important .  Where are you on the efficient frontier curve?

Real Estate

Steve from Personal Finance Start-Up Blog presents New Chapter in my Mortgage Refinance Journey: The Home Affordable Refinance.  He thought the Home Affordable Refinance program didn’t apply to him.  Turns out he was wrong.
Frank Curmudgeon from Bad Money Advice presents Is Owning or Renting Best?.  As with so much in personal finance,  it depends!
Dan from Darwin’s Finance presents Is it Ethical to Re-Lock your Mortgage Deal when Rates Drop?
Peter Jeziorek from eHow Article presents How to Buy Property in China.  Ever thought about buying real estate in China?  Step One: Live or work there for at least a year.
FruGal from FruGal presents Is buying a repossession capitalizing on someone else’s misfortune?.  I don’t think so.  You are taking a “bad asset” off the market, which helps everyone… including the family that had it foreclosed on.
Dan Melson from Searchlight Crusade presents Buyers: Stretching Your Budget Means Compromise.  Bottom line:  The great steals are drying up in the real estate market.
Miranda from Yielding Wealth presents Stopping a Foreclosure Once It Starts.  If you are battling a foreclosure, you must know your options.
Smarty from Growing Money presents Rental Property Update February 2009.  Read this if you are thinking of becoming a landlord.
Miss M from M is for Money presents The First TIme Home Buyer - Be a Smarter Shopper.  A must read if you are thinking about house hunting soon. Discusses the ethical issues in dropping your current locked in rate for a lower rate before closing.  I say “go for it”.

Budgeting and Saving

On May 25th 1999, Michael Kettman had 28 basketballs spinning at once in London England.  Sometimes I feel this way when I’m trying to get the budget to balance.

Chance from Personal Finance Software Reviews presents Use Your Tax Rebate to Make the Best Budgeting Move Possible.  Do this!!  I have been budgeting this way for years.  I can’t imagine any other way to do it.
J. Money from Budgets are Sexy presents Dear J - “Please help before money ruins our marriage!” A reader needs some help on getting on the same financial page as her husband.  Make sure to leave your advice for her.
Bob Vineyard, CLU from InsureBlog presents Meals Served with a Health Insurance Garnish. How would feel about a $1 surcharge to your bill to help your waiter buy health insurance?
Adam from Your Money Relationship presents Buying a New Car? Cash Rebate vs 0% Financing Spreadsheet. Confused as to whether or not you should take cash back or super cheap financing?  This post explains the options and includes a handy dandy spreadsheet to help with your calculations.
Tim from 401k Planning presents Tools for Rating Your 401k.  This is really cool!  A super handy tool if you are in the job market.
BP from One Chance To Live presents How do you help the helpless?.  You can’t.  That’s the frustrating part.
John Hunter from Curious Cat Investing and Economics Blog presents Add to Your 401(k) and IRA.  If you haven’t been saving for retirement… now might be the best time in the past 10 years to get started.
Savings Toolbox from Savings Toolbox presents Finding Money to Save.  I love these tips!
Kristia from Family Balance Sheet presents In today’s economy, it pays to ask for a discount. Never hurts to try!

Frugality

The largest collection of air sickness bags (aka: most frugal collection ever) is owned by Niek Vermeulen.  He has 5,468 air sickness bags from 1,065 airlines, as of March 26, 2008.

Jim Leigh from Switch to Riches presents Saving Even MORE on Groceries. See what you can learn from America’s Cheapest Family.
Ron from The Wisdom Journal presents Rethinking the American Dream.   Have we taken the ideal of “Freedom from want” a little too far?
Young Cash Cow from Young Cash Cow presents What’s in a Name Brand?.  Name brand Vs. Generic.  What’s your preference?
Megan from Counting My Pennies presents Has the economy changed your spending habits?.  I don’t think it’s changed mine.  But maybe it has in a way I haven’t realized.
morrison from All Doors Considered presents Frugal is the new Black. Everybody seems to be jumping on the frugal bandwagon now.  This blogger has been on it since 1985!
Aryn from Sound Money Matters presents How to Host a Spa Party for (Almost) Free.  I have to admit I’d never heard of a spa party.  But anything you can do for (almost) free sounds good to me!
Jeff from StretchyDollar.com presents Who You Know Could Save You.  Don’t underestimate the power of networking.
pfincome from Passive Family Income presents 8 Benfits of Eating at Home - Other than Saving Money.  Don’t tell me this stuff… I love to eat out.

Debt and Credit

Paying down debt can feel like the world’s longest road trip.  But the actual world’s longest road trip was taken by Emil and Liliana Schmid of Switzerland. They have covered 626,960 km (389,574 miles) in their Toyota Land Cruiser since October 16th 1984, crossing 159 countries and territories in the process.

Chief Family Officer from Chief Family Officer presents Becoming debt-free: Sometimes you just need to believe it’s possible.  She just realized she can pay off her mortgage in just over 6 years.  Find out how!
mfd from My Findependance Day presents Debt Repayment: Feel the rush.  I think some people get a bigger rush from shopping than they do from paying off debt.  Not me!  But some people.
Finance Girl from Finance Gets Personal presents How to Fly to Europe for Free. A detailed guide to quickly and carefully earning enough miles to fly your family to Europe (or anywhere) for free!
Baker from Man Vs. Debt presents Declaring War: Canceling Credit Cards. To cancel or not to cancel.  That is the question.
Destroy Debt from Destroy Debt presents Credit Companies are Hurting Your Credit Score.  This happened to me… and it’s very frustrating!
Tyler Metzger from Taking Charge presents Donor wants $10,000 back for missing inauguration.  It’s an interesting dilemma.
Peter from Bible Money Matters presents Are You Emotionally Invested In Your Credit Card?,  I guess I can understand.  I don’t want to close the credit card account I got when I was 18.  I would have never guessed I would be attached to an account.  Strange.
CreditCardAssist.com from CreditCardAssist.com presents Three Methods to Protect Your Credit Card in Online Transactions.  I used to take Verified by Visa customer service calls.  (blah)  Surprisingly few companies actually use this service.
Apply4-Credit.com from Apply4-Credit.com presents Top 5 Credit Card Deals That You Must Have.  You already have these benefits, you might as well know about them!
Silicon Valley Blogger from The Digerati Life presents Get The Best Home Loan Rates With These Tips. 4 steps to getting the best mortgage.
Trisha Wagner from American Consumer News presents Should You Purchase Credit Card Protection Insurance?.  I really dislike Credit Card Protection.
Debt Freedom Fighter from Discover Debt Freedom presents Personal Loan Information for People that Have a Low Credit Score.  Understanding the terms of your loan is always important.  Even more so for those with bad credit.
Clint from Accumulating Money presents A Home Improvement Loan - Will it Work for You?.  Is a Home Improvement loan the same as a home equity loan?  I guess not.
Chris Holdheide from Stumble Forward presents Help Getting Out Of Debt When You’re Frustrated.  How big is your “why”?
Madison from My Dollar Plan presents Would You Take a Loan Modification?.  If you qualify and it will save you money… do it!
Jason from MyMoneyMinute presents Recession Buster: Increase Cash Flow With High Interest Checking.  I wish I could earn 4% on my checking account. That would be fantastic.
PFR from Personal Finance Reviews presents The AmericanDream Card - The Pooled Rewards Card.  This card gives you an entry into a drawing instead of points or cash back.  Interesting… but I’ll take my guaranteed cash back.
Miss Thrifty from Miss Thrifty presents Miss Thrifty’s Mortgage Masterplan (cough).  I like this post for the look into how they do mortgages in the UK.  Plus, I’m a fan of paying off the mortgage early.

Taxes and the Economy

Taxes and the economy are enough to make me want to jump.  The largest number of jumpers happened on May 10, 2003.  Twenty members of a parachute club jumped from a balloon simultaneously at 2,000 m (6,500 ft) over Markelo, The Netherlands.

Mr. GoTo from Go To Retirement presents Understanding Taxes on Retirement Job Income.  A handy easy to read and understand explanation of taxes after retirement.
Jeff Rose from Good Financial Cents presents What Happens When You Don’t File Your Taxes?.  Yikes, can’t be good!
Beyond Paycheck to Paycheck from Beyond Paycheck to Paycheck presents First Time Home Buyer Credit - Your options if you buy after April 15. Can you take the home buyer’s credit this year if you buy a house after April 15th?  In short, yes.  Find out how!
Lisa Spinelli from Greener Pastures presents 5 Consumer Trends in the Recession Economy.  Do you think alcohol consumption went up or down in 2008?
vh from Funny about Money presents Buy!.  Shop now to beat inflation later.
Mr. GoTo from Go To Retirement presents Medical and Health Insurance Premiums - Finding the Deductions.  Make sure you know all your deductions, no need to pay more in taxes than necessary.
George from Fat Pitch Financials presents Deflation Risk Fading.  It appears the risk of deflation is fading and that the real focus of concern should once again be inflation.
Kevin from Red Stapler Chronicles presents How Would You React to a Pay Cut?.  I hope you don’t ever have to find out.

chocolate pic by: 10 Corso Como

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I just wanted to take a moment and say hi to everyone… and let you know I’m still alive.  I hope you have been enjoying the guest posts I had lined up for you.  I appreciate your patience with me while I get though this time.

First things first, I want to let you know that I’m hosting the Carnival of Personal Finance on Monday.  So if you haven’t already, make sure you get your submission in to me.  Use this link.

My mom was visiting last week.  It was crazy busy while she was here.  We went to the zoo, the botanical garden, and a fire fighter museum.  Our company also worked for the first time, so that fun.  I ran payroll for the first time and made our first invoice.  I’m looking forward to having those things be routine.  Because everything takes a million years right now.  Every little step is a huge dilemma.   It took me four hours to pay one employee.  Then it took me another two hours to figure out how to enter the payroll into Quickbooks. I was up til 2 in the morning working on it.   Someday I will look back on this time and laugh.  Hopefully.

Here are some pictures I took this week while my Mom was visiting.  We went to the Zoo and Botanical Gardens.  It was pretty neat.

At the botanical garden they have glass sculptures all around in with the plants. They were amazing. I was way more interested in the sculptures than I was the cactus. But check out this humming bird…

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Today’s post was written by Trevor from the Financial Nut.  Trevor is a 24 year old college student.  He owns his own business and will graduate from college debt free and with start on retirement.  If you like this post make sure you check out his site, or subscribe to his feed for free updates.

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Statistics say that fewer than half of Americans have a household budget. Kind of scary, isn’t it? As a result of our current recession, there’s a good chance that budgeting is becoming more common, as people are becoming more and more aware of their money (or lack thereof!).

With such a low number of people using budgets to control their spending, I have to wonder why budgeting isn’t more common amongst Americans. Is it that half of us are doing so well that it’s not necessary? Certainly not! Maybe it’s because many haven’t been taught to use a budget or that people just plain don’t know how. Whatever the case may be, it needs to be something that our society changes. Much of our current economic crisis may have been avoided if we’re collectively better with money, and at the foundation of that would be having and maintaining an accurate personal financial budget.

Not Everybody Loves Budgeting

My wife and I wrote up our first budget together 2 weeks after being married. Luckily I managed to marry a girl that is fantastic with money, so we enjoyed sitting down together to draw up the plan. First we wrote down what our combined net income came to be monthly; after, we listed each expected monthly expense and found out how much it cost us to live on a regular basis. After subtracting our monthly expenses from our monthly net income, we came up with a dollar figure that could be used for savings.

As I reflect on my experience drawing up my first budget with my wife, I have to laugh at the fact that I enjoy it so much! I mean, really- I know most people don’t enjoy it like I do. I love analyzing the numbers, figuring out how we can improve month to month, and working together with Alex (my wife) on setting goals that reflect our financial dreams. I understand that it’s odd to innately enjoy budgeting!

So in the spirit of helping to convince others that budgeting must be done, I again have to go back to the original question: Why don’t people like to budget?

Many, I feel, quickly connect budgeting money with negative emotion! A well-developed budget for them means restriction and lack of recreation; in essence, it means no fun.

Leisure Money Is Part of A Well-Balanced Budget

May I suggest that any well-written budget should include leisure money to maintain healthy levels of sanity amongst the masses. Alex and I decided on a dollar figure that we would set aside every single month for fun. That money must is used for eating out, bowling, skiing, the movies, going out for ice cream, and anything else we want to do together. We call this our “Date Fund,” and I believe it’s an absolute must for any couple. The benefit? You don’t feel guilty about spending money on yourself for entertainment when you’ve planned for it!

Our budget also provides us both with a separate “Leisure Fund,” enabling Alex to spend money on what she enjoys (clothes, iPods, etc.) and for me to spend money on what I like (basketball tickets, books, etc.). That dollar figure is a fixed amount for each of us per month to do as we please. If we don’t spend it all in the month it’s provided, we can save it and use it for something bigger and better the following month. Truly a “Leisure Fund” empowers both of us to spend our money on things we enjoy without feeling guilty for it.

As you decide to either start a budget or improve the one you’re currently using, take the time to include date money (for you and your significant other) and/or a “leisure Fund” for sanity’s sake.

A budget empowers if written the right way, and no budget is complete without those items. If you can remember the positive side to budgeting money (and there are many positives), you may find yourself enjoying it just as much as me!

Ashley here: We have a “dates” category in our budget too.  We also each get a fixed amount that is our own personal blow money.  It works really well for us.  I think a lot of people don’t make budgets because they don’t want to know the truth about the mess they are in.

pic by: cw3283

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This is a guest post from the Ultimate Money Blog.  Her site offers different ideas on how to save more money, make a little money online, and pay off debt.  If you like this post, make sure you check out the rest of her site!

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It seems that fraud lately has just gotten out of hand. With the economy being in the toilet, people are now turning to stealing check card, credit card, and debit card numbers. The thieves have even gotten so high tech as to where they can now replicate the card with your number but “their” name on it. Scary, huh? I’ve seen a lot of this fraud happen lately to customers, and it’s sad to say, but you’ve got to be careful anywhere you use your card lately. If you follow these steps and use common sense you can do your best to minimize your risk of fraud.

Be observant any time you use your card. I just heard of a story where a friend’s husband when through the drive thru at a fast food restaurant and while the person at the window was waiting for an approval, the gentleman in the car was watching him on his cell phone. The worker was keying something in on his phone, and at the end, the customer realized that the last two numbers the person keyed in were the last two of his credit card! I am just amazed at people sometimes.

Be careful when you are shopping online. Obviously this is an important one, and one everyone should follow without saying. You may even want to think about purchasing a prepaid debit card to make purchases online. The only times I use my card to make purchases online are when I am paying bills or I know it is a legitimate company. Also, paypal may be a good option for businesses that take paypal.

Don’t use your card at a restaurant. I am so leary of people taking my card away and swiping it without me present. Who knows what they are doing with those numbers, and how secure is their system? There is a Mexican restaurant that was rumored to be selling credit and debit card numbers to criminals. Needless to say, I pay cash there.

Be very very careful at places like ATMs, Redbox, and other machines that swipe your debit card. There was an article about Redbox having thieves putting “skimmers” on the machines to steal your card information. Always inspect the machines before you put your card in.

As always, using common sense is the best rule of thumb. Of course, if you were a victim of theft, you would get your money back after filling out affidavits with the card issuer. Stay safe and shop smart! An ounce of prevention is worth a pound of cure.

pic by: d70focus

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This is a guest post from M is for Money.  She started her blog in 2008 after pulling herself out of $20,000 of debt.  If you like this article make sure you head over to her site.

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“You can get loans to pay for college but no one will lend you money for retirement”

Many parents struggle to balance saving for the future and providing for their children. Saving enough for retirement is difficult even without the added expense of kids and most people are woefully unprepared. But a college degree is the new high school diploma, a must to land a decent paying job. Any well meaning parent wants their kids to have the best possible start in life, a basic education. That leaves many parents with a difficult choice, should they take care of themselves or their children?

The opening quote is an often repeated piece of financial advice, advocating that parents should take care of retirement since there are alternative ways to pay for school. Many parents risk their own financial security so that their kids can have a better future. They put off saving for retirement so that little Susie or Johnny can attend the college of their choice. Since there is no substitute for retirement savings, they have instead jeopardized their own future.

Unfortunately there is a flaw with this advice, our system assumes that parents will help with college costs even if they do not. Most colleges use the Free Application for Federal Student Aid (FAFSA) to determine financial aid eligibility. This form collects information on the parent’s income and assets and is used determine the family’s share of the cost. The government and school will then help fill the gap with a combination of grants and loans.

Assets like retirement accounts and the family home are not included in the calculation, but any other savings and investments are expected to be used. Even if you have no assets, you will still be expected to contribute based on income. A family without assets, a taxable income of $60,000 per year, both parents working and two children would be expected to provide $4000 per year towards college. This is a simplified estimate based on the 2007-2008 guidelines. Assets or only one parent working would increase the amount that parents are expected to contribute.

If your family is expected to come up with $4000 per year for college and you don’t provide it, where will your child get that money? The college won’t reconsider aid because of a family’s unwillingness to help. From the FAFSA website – “Under Federal law your family is primarily responsible - to the extent they are able - for paying for your college expenses.” Your child will have to take out additional loans, most likely private loans at a higher interest rate, to cover your portion as well. Currently those loans are hard to find, college aid is drying up. What happens then?

I don’t think that parents should put off saving for retirement to pay for college. The money in your retirement accounts won’t be considered when they calculate your child’s financial need. In fact, maximizing your retirement savings will shield more of your assets and make your child eligible for more aid. But unless your income is very low you will still be expected to cover some of your child’s college expenses. It’s important to know how much your family’s contribution will be based on your finances and be prepared to provide that amount. There are online calculators that will walk you through the steps and give you the current expected family contribution.

I know many parents count on their kid receiving scholarships to cover the gap, but this is poor financial planning. What happens if the expected scholarships don’t materialize? By planning ahead for college you can cover your share of the costs without jeopardizing your retirement or your child’s education. Huge student loans are a burden on young adults, I know most parents want to help as much as possible. While covering the entire cost of a college education may be unrealistic, parents can be prepared for their expected share.

pic by: Schlusselbien2007

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This is a guest post from My Fit Wallet.  Her blog chronicles her journey to become debt-free and financially balanced.  She says “I don’t need a fat wallet–just a fit one.”  Ha!  I like that.  If you enjoy this post make sure you visit her blog or subscribe to her feed to receive free updates.

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Save money, get fit, help the environment, increase your energy levels, and impress your friends! No, this is not an infomercial for a miracle product–I’m talking about commuting via bicycle. With gas prices rising, commuting on two wheels makes financial sense.

I realize that bike commuting is not possible for everyone out there. Maybe you work 30 miles from home, you’re not physically able to bike to work, you must travel on dangerous roads, or you have to drop the kids at school on your way. Fair enough. But I think many people who could benefit from bike commuting have written it off as too difficult, time consuming, or a logistical mess. If that last sentence sounds familiar, then this post is for you. I will attempt to lay out the basics and answer some frequently asked questions.

What equipment do I need?
You don’t need fancy clothes or footwear to get from point A to point B, though you can make cycling as expensive as you like. The below items are the basics.

• Bicycle: You don’t need anything fancy, though I would not recommend picking up a Huffy at Walmart. Spend a little extra cash and get a decent brand that will last. There’s a reason I still see Raleighs and Schwinns from the 1970s riding around town! Visit your local bicycle shop and speak with someone knowledgeable, then check Craigslist before you buy. If you will need to take your bike on the bus or subway for portions of your commute, consider a folding bike.

• Bag: Pick something comfortable and roomy. A proper bike messenger bag can hold the most stuff, though a backpack will do. My waterproof messenger bag can hold a change of clothes, an extra pair of shoes, my lunch, wallet, keys, bike lock, cellphone, and some papers from work if needed—with a little room to spare.

• Helmet: Don’t even think about biking without one! Be sure your helmet is rated for cycling.

• Lights and Reflectors: Every bike should have these. You will need both if you plan to bike through fog, rain, dusk, or dark. I recommend Frog Lights, which are cute little LED lights that attach to the bike frame without any hardware.

• Lock: A lock is like an insurance policy for your bike. Don’t get a flimsy cable. Protect your investment with a solid, sturdy lock like the Kryptonite Evolution. You won’t regret it.

What about the weather?
Planning ahead is the best way to make bike commuting safe, comfortable, and fun. The night before, be sure you check two weather reports (always good to have a second opinion), and dress accordingly. If the weather isn’t going to cooperate, you can plan to drive the car or hop on the bus, instead.

Won’t I stink all day?
Not if you plan ahead! Not everyone is lucky enough to have a shower at work (me included), but that doesn’t mean your coworkers have to hold their noses through your morning meeting. Give yourself an extra 20 minutes to cool down when you arrive. You can answer emails, check voice mail, or have coffee and breakfast. Keep a washcloth, small towel, soap, deodorant, and a light perfume or body oil in your office to freshen up before the daily grind starts.  (Personally, I think Lush brand’s Olive Branch solid perfume smells amazing on a guy or a girl, even after a workout, without overwhelming everyone around you.) And this seems obvious, but don’t bike to work in the clothes you will wear all day. Take a change of clothes with you, including extra socks and underwear. If you plan to ride some days and drive others, you can even drop them at your office the day before.

Isn’t biking dangerous?
Yes, and so is driving a car. Careful planning and vigilance on the road will keep you safe. Check out your route beforehand and get to know traffic patterns. Determine when and where you will need to switch lanes, turn, or yield to oncoming traffic. If you’re not comfortable biking on a busy road, try a less direct route with lighter traffic. Learn and obey traffic rules, use hand signals, and always wear your helmet.

What if I can’t make it all the way to the office?
If your office is 10 miles away and you’re new to biking, don’t try to ride it all at once. Start slowly and build your stamina. Try biking half the route on a weekend and see how you feel.

How many calories will I burn?
This varies, but assuming you ride at a slow to moderate pace (10mph), you can expect to burn about 26 calories per mile. As speed increases, so does the number of calories burned. My ride to work is 6.5 miles, so that’s about 170 calories one way, biking at a moderate pace. Why waste time sitting in traffic in your car, then head to the gym? You could finish your workout by 5:30pm.

How much money will I save?
That all depends on your situation, but here are some potential savings:

• car maintenance

• car resale value (fewer miles)

• car insurance

• gas money

• gym membership

• health care costs

Add it all up, and you could save hundreds or even thousands of dollars per year—just by hopping on your bike whenever possible. You don’t need to bike commute every day to reap the financial and health benefits. Think of the essential items listed above as an investment you will earn back over time.

If you enjoyed this article, I hope you will stop by My Fit Wallet and consider subscribing to my feed. Thanks to Ashley for hosting!

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We got the California gig!  It’s exciting but it brings up a lot of new problems.  Because I tend to get overwhelmed and then give up, I’ve been careful not to let my thinking get ahead of me.  I’ve been trying to only deal with the problems at hand.  Which so far have been getting proper insurance and learning the state’s requirements for starting a business.  All that fancy jazz.

But now we have an actual working employee.  So I have to learn how to process and keep track of the work being performed.  I have to learn how to send invoices. I have to learn how to do payroll.  I have to learn how to pay taxes.  We have to take the risk we said we were willing to take.  It’s one thing to say I’m willing to bet $1,000 that this will work out.  It’s another thing to actually withdraw $1,000 out of your emergency fund.

Speaking of money, the California venture is increasing our out of pocket expenses.  So far we have contributed $2,000 to the business.  Getting started in California will cost another $600.   Then we have to pay payroll out of our pocket for at least a month, probably longer.  Assuming no more work than we have been offered up to this point then that will be another $1,000 or so.

Which means before we see a penny in revenue we will have put out at least $3,600.

Mostly I have to get over the fact that we are actually doing this.  Up to this point it has felt very fake.  Especially since the only person I talk about the business to is my husband and you guys.  When I spoke to our new employee the other day I actually felt bad, like we were tricking him.  I’m on the phone thinking “This poor guy thinks we are a real company.  He has no idea that I am wearing my PJs and was just about to put my 3 year old down for a nap when he called.”

But I need to get over that.  Maybe once we actually get paid for work I’ll feel more comfortable with the idea.

To read about our past adventures in business check out the following posts:
When we started it
Deciding on California

Pic by: Kevin

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Hello everyone!  I’m enjoying a nice time with my mom who is visiting from out of town.  I have a guest post for you today from Craig, the marketing guy behind www.budgetpulse.com? If you enjoy this post make sure you visit his site and have a look around.  There are some great budgeting tools on there.

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Is Paying for TV Cable Plans Worth it?

Cable TV is a luxury item that seems to be a standard in households these days.  Families can spend a lot of money on cable plans for entertainment value, but is it worth it?  That is debatable for who you ask and how much you get out of it.  As technology increases, there are actually ways to watch your favorite shows through other methods which could actually lead one to cutting cable costs all together.

Movies:

One of the cheapest ways is to check movies out of the library. You can also loan/borrow movies amongst family and friends. Netflix is a great way to rent movies in an inexpensive manner and you do not have to worry about late fees.  They have a few different pricing plans set up and offer free delivery.  A great service that is hard to beat.  They also have a lot of movies that you can stream for free online, an easy way to watch a movie while you are waiting for the next one to come.

Streaming TV:

You can also stream shows of your computer.  There are several sites one can use. First, of course, there are the TV Chanel websites, which offer scenes of the show. Megavideo is a service where you need to pay / subscribe, but it will also let you watch up to 72 minutes of video free each day. After that, you have to wait at least 54 minutes to watch another 72 minutes. Miro is useful for downloading the network news programs. This is a good client for watching all sorts of video sources, including Youtube video and many other sites. It is especially good for various video programs involving technology. One more similar tool is Hulu.  You can legally watch full episodes of your favorite shows here in very good quality.

As streaming TV becomes more popular and the quality improves even more, cutting cable may be a good choice to save money.  If you don’t watch a lot of TV or diverse programming, this may be something to at least consider in the future.  Nobody likes commercials or paying high prices for cable.

Ashley here:  I personally don’t see us voluntarily cutting cable any time soon.  I don’t even watch that much TV and I want to keep it.  It’s just that when I want to “veg out” nothing really beats getting cozy on the couch and watching some random junk on TV.  I’ve watched a few shows on the computer but it’s not for me.  I would need a much nicer set up to make it work.

Are you willing to cut your cable bills completely for online video?

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This article was contributed by Steve Sildon at CreditCardAssist.com. Steve writes frequently about credit cards, providing advice, tips and expertise on a variety of personal finance and credit-related topics as well.

Given the recent swoon in our economy, the credit worthiness of thousands of consumers has been left in shambles with rapidly declining home values, job losses and bad mortgages on top of it all. For years, the credit markets have been overly generous with consumers and now these bad lending practices are coming home to roost.

Card issuers have been forced to adapt to the recent changes in the credit markets and have tightened their lending and credit approval criteria significantly since late 2007. Card issuers have cut credit limits substantially for scores of consumers and have even started closing accounts en masse due to account “inactivity”. Many consumers that have relied on their credit cards in the past are suffering heavily from the fallout.

With so many credit card accounts being closed and credit limits being slashed so suddenly, many consumers have been left wondering how these credit decisions are being made. Who decides who gets credit? How do they decide how much credit to extend? Is it based solely on my FICO score? What factors are taken into consideration when making these credit line decisions?

For starters, there are 2 separate classifications for credit line decisions: traditional and non-traditional factors. Traditional factors in credit decisions, typically considered first in the decision-making process, are things such as credit card payment history, credit bureau data (FICO scores) as well as reported income, among others.

What most people are unaware of is that there are several “non-traditional” factors that weigh heavily in the decision making process as well. One non-traditional factor in particular that is considered is the type of mortgage that the cardholder has and, in particular, whether the loan is subprime or prime. A subprime mortgage, suitable for borrowers with less than ideal credit, might indicate to a card issuer that the cardholder is much more of a default risk on a credit card balance than a prime mortgage holder would be. Card issuers have always factored in the mortgage type of the cardholder as one consideration in the process, with the housing market in such a perilous state though, card issuers are weighing it much heavier in lending and credit limit decisions than they have in the past.

Another non-traditional factor taken into consideration is the geographic location of the customer. Location has always been a factor that’s been considered as well, taking into account where you live as a factor in your credit risk. But nowadays, geography has a heavy influence on decisions about credit worthiness. Cities, towns and entire geographical areas that have experienced job losses or heavy unemployment represent a significant threat to lenders who fear the impact of unemployment and its effect on the ability of cardholders to repay their debts. Banks and lenders are keenly interested in knowing about the threat of unemployment in any geographic area. Even those cardholders with steady, long-term employment and no legitimate threat of job loss have been hampered trying to get credit specifically because of their geographic location.

As of late, spending patterns of cardholders are another non-traditional factor that’s being heavily considered as well. People who begin to show a sudden change or an atypical pattern of spending represent a huge red flag for card issuers and lenders. Charging “necessity” items such as insurance premiums, electric bills or grocery items signals the issuer that the cardholder is starting to have financial problems. Things like sudden cash advances being taken out, small payments being made or card balances rolling over from month to month instead of being paid down as usual, all represent atypical spending behavior and sudden changes in spending patterns that can red flag your account and indicate that you could be in trouble financially.

So what can you do about all of this to protect your credit-worthiness? For those of you who’d like to protect your ability to get credit, there are a few things that you can do, or not do for that matter. One of the best things that you can do is to keep your spending patterns status quo. Don’t suddenly change your spending behavior by taking out cash advances or start revolving balances when you’ve always paid them down in full in the past. Any sudden changes might indicate cash-flow or financial issues that might scare your card issuer into changing the terms in your agreement, reducing your credit limits and/or even increasing the interest that you’re paying on that 0% balance transfer that you made months ago!

The best advice about protecting your credit worthiness in times like these is simply this: make sure that you keep making your payments on time, and above all, keep those card balances low.

Easier said than done? Yes, but if you can simply follow that advice and stick to it, you should never have any problems getting credit now and keeping it in the future.

pic by: Andres Rueda

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