Two friends separately contacted me yesterday with the same question: “I have a full time job now… what do I do?” (They both play the trombone too, it’s kinda eerie.) I understand where they’re coming from. With a sudden influx of money comes this daunting feeling that you should really take control of your finances. But… how?

I’m going to give you guys a warning, though: if you came looking for the sexy answer, you’re barking up the wrong blonde blogger. I’m not going to give you a one-liner like “invest in gold and you’ll be set for life!” Sorry, but I’m going to give you the real down and dirty (that sounds sexy too… but it’s not).

Step 1: The Fun Part
Estimate your income. This is easier to do after your first paycheck, because then you can see exactly what percentage they’ll be swiping up for taxes. But even if you haven’t received that first paycheck yet, estimate away. You can adjust it later.

Step 2: The Depressing Part
Estimate your expenses - a new jobs means they’ve likely changed. I recommend you download and use PearBudget - it’s a free, really easy to use program that runs in Excel. Or, at least use the Pear way of dividing up your expenses:

Regular expenses: monthly expenses that don’t change in amount. E.G. Rent, car insurance, cell phone bill, savings…
Irregular expenses: “things that come up a couple of times a year that you know you need to budget for. For example, you know you’ll spend about $1,800 on car maintenance over the year, but you won’t pay it on a regular schedule. So you budget $150 every month into “Car Maintenance,” and then, on some sad day, you’ll have to give the mechanic all that money.” Other examples: gifts, travel…
Variable expenses: monthly expenses that vary in amount. E.G. groceries, dining out, gas for the car…

Step 3: Try Not to Faint
Take your estimated income for one month, and your expenses for one month… and hope that the first one is larger than the second one. Actually, if you included savings in your expenses, they should be the exact same number. But, they probably aren’t. So… “what do I do…”

“…if my income is more than my expenses?”
In all seriousness, this is a question you would probably never ask me. But if you truly estimated all your expenses accurately, and you came up with this, then you do have a problem. I know at least one of you has some hefty credit card debt playing the monkey on your back. And you need to deal with that. For serious!

Don’t put anything more on those credit cards. Not a red cent. Go cut them up, now. I know, I’m a mean Stephanie, and I don’t want you have any fun. Deal with it. Don’t charge anything else until you’ve paid them both off. (Hey, at least I didn’t tell you to sell your trombone!)
Use that extra cash to really, really work on paying down that debt. I’m assuming it’s high interest, and it’s definitely dragging your credit score down at this point. Just remember, if you only make the minimum payments, it’ll probably take you upwards of 30 years to pay off those cards. I don’t know about you, but I certainly don’t want to meet up when you and I are 50+ and find out that you’re still paying off some charge from 2006.

And if you don’t have any nasty credit card debt? Pump up your savings, and feel mighty proud. Also, know that I hate you.

“… if my expenses are more than my income?”
Ouch… but this was always a likely scenario. You’re going to have to cut down an expense. And no, don’t go for the savings first - that’s like sticking a knife in your own jugular. I’m not going to tell you what expenses you should trim, because I know you’re smart, and you’re the one that has to live with the decision. Find some fat, and trim it.

Make sure you do put away some savings, though. Even if it’s just a dollar a week, get in the habit. It takes about 3 months to establish a weekly habit, so by then you’ll have over $12 (whoopee!), but more importantly, a good habit for life.

Step 4: Just Do It
Live your life, track your expenses, adjust PearBudget (or your tracking system of choice) as you go along. There really isn’t any secret formula - in fact, I’m rather sure there wasn’t anything here that you didn’t already know… somewhere in the back of your mind.

Oh, and about that savings: make sure you’re putting it somewhere that beats inflation, like a high yield savings account. You know how much I love ING Direct (aff), but so long as you’re saving, I’m happy.

Don’t be afraid, this isn’t really my last post! But my friend Sam over at Forest Azuaron put me up to a challenge: write a post as if it was your last. Give one final piece of financial advice.

It’s funny, really, because if I were going to make a final statement, it would be about beginnings. Because that’s really what this is all about. Roth IRAs, interest rates, bank fees, ideas for frugal grocery shopping… none of that really matters, if you never actually start. You can read every personal finance book and blog there is, but if you used all your time to do that, instead of actually looking at your own finances, you wouldn’t actually get anywhere.

Start today. Now. Figure out where you stand: add up everything in your bank accounts and your wallet - count your change! And pull out your latest credit card statements, add up your student loans. Everyone knows, in the back of their minds, what it is they should be doing. Personal finance is common sense. Everyone knows they should be getting rid of their debt, that they should save up for things instead of accumulating more debt, and they should be saving for retirement… these ideas aren’t hidden away in a trunk of knowledge or anything.

People just need that kick in rear to get started on what they’ve been putting off. So, consider this your kick. Go, get out of here, do it right now. Why are you still reading this? Scram!

Ahoy there, mateys! Welcome aboard me ship! I be but the humble Captain Stephanie, steering me vessel toward untold treasure! Actually, me treasure map came by email from Coinstar, but it be a treasure map none the less!

So hop aboard, and I’ll sail us round the dangerous water of… um… my house. And we’ll dig us up some treasure! You’ll be needin’ yer own copy of the treasure map, if yer ta be my first mate, ya scurvy dog! … Ok, I really can’t do this any more. I’m not as well-versed in “pirate” as I pretend to be. There should really be a Google translator for this. Anyways, here’s the treasure map:

1. Grab your lucky penny, drop it in your jar, and proceed to the front door to begin your hunt.
Take: $0.01

2. 71% of Americans find change in cups, jars and other containers. Leave no cup unturned.
I left no cup unturned… but I didn’t find anything, anyways.
Take: $0.00

3. Don’t forget the most obvious spots - your pockets and handbags are places many accumulate coins.
Take: $0.50 in my jeans from last night, and $2.66 in my change bag in my purse.

4. “Bank” on finding a large portion of your treasure in the most practical places - 50% of you keep you change in a “Piggy” or other kind of bank.
My family is all about the change jars. I have three, and my mom has two. My main change jar is an old glass half-gallon milk jug. I also have a smaller mason jar for quarters, and another mason jar for Canadian change. I’m hoping to fund a trip to Canada entirely out of Canadian change some day! While counting that, I found some British change in there as well - it really threw me off, since they both put the Queen on their money. Dear Canada: Stop confusing me!
My mom also has separate jars for quarters and smaller change.
Take:
Milk jug: $16.90, and $0.21 Canadian
Quarter jar: $0.50
Canada jar: $4.51 Canadian, and $0.26 America (sneaky money!)
Mom’s quarter jar: $31.00 and $0.50 Canadian (which I kindly moved to my Canada jar for her)
Mom’s loose change jar: $5.70 and $0.01 Canadian

5. Don’t give up, 18% of Americans find loose change in random places scattered around their homes.
I even checked under the fridge (ew), but didn’t find a thing.
Take: $0.00

6. Would you have believed that 19% literally sit on their stash every night?
I believe it, but I must be in the other 81% - nothing in the couch.
Take: $0.00

7. You might find more than junk in your drawers, 33% revealed they find spare change hiding there.
My mom just organized our junk drawer, so no change there.
Take: $0.00

8. Among the dryer sheets and lint balls, 36% of us find the cleanest of the coin in the laundry room.
I believe the close proximity of the laundry room to my mom’s room is why I didn’t find any change there!
Take: $0.00

9. Before making your getaway to your local Coinstar Center, sweep the car and you’re boung to find even more treasure.
Yep, I carry the family habit of hoarding change in my car.
Take: $2.60 and $0.01 Canadian

The email this treasure map came with stated that the average household is hoarding about $90 in change - so how did I measure up?
Final take: $60.13 and $5.24 Canadian.

That’s actually far more than I thought I’d find, considering it’s only been a few months since I last rolled up my loose change and took it to the bank. So if you include that money from February, I beat the national average with $101.63.

Hmm… only $5.24 Canadian? I may have to rethink my strategy for saving up for that trip…

So, ye scurvy dogs, do you have what it takes to take this treasure map and hunt in yer own stormy seas? If so, post yer booty in me comments!

Greetings, my fellow debt-fighters. I stand here before you, a general in this War on Debt! Though I only enlisted some four months ago, I have been fighting this war for much longer… since The Debt led a sneak attack against me when I began my university education. But I have joined up, and I’m taking the fight to them! Here are how things have progressed since my “Resolutions are for sissies!” speech:

The Main Objectives

Get a job: I have a part time job now, and this website has become a part-time job on it’s own. I’m also looking for some other income streams, because money is my ammunition, and I need a lot of it.

Sell something on eBay: Ok, I haven’t yet. But I have sold several textbooks and some furniture using other internet sites, so it’s a start. Getting ready for the move to the suburbs is unearthing a lot of items to sell (for ammunition)!

Get rid of all this stuff: I’ve been going through everything in the process of packing. I’m really hoping to get it down to a bare minimum, which really requires going through each box of “stuff” multiple times. I burned a lot of stuff in a bonfire this past weekend (which was awesome).

Make a budget… again: I’ve actually kept on top of my spending and my budget (which is really just a balance sheet) this whole time. It’s a habit now, and I freak out if it gets messed up. Point is, I know exactly how money has flown in and out of my life since the beginning of 2007.

Start a retirement fund… for serious: Nope, haven’t done this. I really don’t think I will until my credit card is paid off, and I’ve started a mini emergency fund.

Go back to school: Currently, it looks like I should be back for the Fall 2007 term. Woot!

Pay off my credit card: I haven’t made as much progress as I would like, but that could change very soon. Now that I have my part time job, I’ll have more ammunition to throw at this Axis of Evil!

Secondary Objectives

Pay off my car: Been making steady progress, but even better, it looks like my loan may be forgiven after this month’s payment. Either my grandmother, who is the one I bought the car from, will just forgive the loan, or my mother will pay the rest off for me (I may, however, have to start making payments to her, if she does that!). If the loan is forgiven, that’s one Enemy Nation of Debt conquered, and I can take all the troops that were fighting there, and direct them at Credit Cardonia and The United Forces of Student Loan.

Get a better job: I’m not gonna lie, I like my new job, and because it’s all online work, I can do it from anywhere (I’ll likely live out half the summer in Los Angeles) and I can continue to do it when I go back to school. Still, I’m on the lookout for additional streams of income, and may even start another business when I go back to school. More ammunition!

Organize a killer garage sale: So far, this has consisted of packing up boxes of stuff to sell. The garage sale will probably take place just before or just after we move (July 1st).

Start up that business I thought of: This really isn’t relevant until I go back to school.

Start up some other business I haven’t thought of yet: No ideas percolating right now, but I’ll let you know.

Try out Prosper: As a lender, I mean. This is probably also a “after I have defeated the credit card” thing.

Start a protest outside a Wal-Mart: Not yet, but it’s always possible!

Final Thoughts

This war may never be truly over. There will be conflicts with The United Forces of Student Loan for a long time yet. And if our imperialist nature brings us to conquering a house of our own, we can expect attacks from Greater Mortgage Payment. However, all is not lost, so long as the interest rates are low, our aim true, and our payments on time.

Congratulations to commenter Jeannine, who won my ING Giveaway this week! I sent her an email with instructions on how to open her account. Not only did she win $25, but now she’ll have a nice savings account that actually beats inflation!

I’m hoping to do another, more exciting giveaway soon, so stay tuned (or should I say, stay connected?)!

Oh, School House Rock! A staple of my childhood. Actually, these School House Rock shorts I found about money seem to be newer than the ones I watched “back in my day,” so I’d venture to say they were made in the last ten years. Still, they’re very good, so show them to the youngin’ in your life. Or watch them for yourself - I won’t tell anyone. Just don’t blame me if they get stuck in your head!

Where the Money Goes (Family Budgets)

$7.50 Once a Week (Allowance)

Walkin’ On Wall Street (Investing)

I have to say, I adore ING as a company. With slogans like “Nothing beats money in the bank, except for more money in the bank,” and “Savers have all the funds,” they have my heart, even if their Orange Savings Account isn’t winning the rate race (at 4.5%, they’re lagging behind Emigrant, Etrade, HSBC and a host of others).

You’ve probably seen their promotion around, where you can get a $25 bonus if you sign up using someone’s referral link, and deposit $250 in your account to start. But I have something special - it came in my mailbox the other day. A promotion from ING, offering a $25 bonus for opening an account… with any opening deposit you wish!

Of course, I first thought to jump on it myself, but then I realized that I’m stretching my meager balances between two high yield savings accounts as it is. I’m simply not ready to open an ING account yet. And once I am, I’ll be doing it with $250 and a referral link.

But my sweet offer from ING should not go unused! So I’d like to give it away to someone who could use it. How about you? Would you like it? If so, just leave a comment on this entry, and include a valid email address. After one week (11:59 EST May 20th, 2007) I’ll pick a random commenter and email them the activation code (alternately, you can choose to have the paper offer mailed to you).

Fellow bloggers, want to let your readers know about my little giveaway? Doing so will earn you an extra entry in the contest, if you’d like! Just make sure you email me (use my contact form) the URL of where you linked this entry!

Disclaimer type stuff:
ING links in this entry are affiliate links.
This contest is open to US residents only. Poorer Than You is sponsoring this giveaway, not ING, so any and all questions should be directed to me. Winner will be chosen at random from commenters and blog linkers. All decisions are final and up to me: I am your judge, jury and executioner.
The $25 bonus is only available to new ING accounts with a new customer as the primary owner.

I have a fair number of gamer friends, so I often get caught up in conversations about World of Warcraft. Usually I let my eyes glaze over, and try to pretend I’m somewhere else, with friends that don’t play WoW. But lately I’ve been spinning the conversation around, trying to gauge how my gamer friends feel about the new WoW credit card. The response so far as been universally: ”It’s a good card, I was thinking about getting it.”

In my stupor, I forgot to ask them how they define a “good card.” So I figured I’d take a look at the card myself, and give an evaluation.

The Hooks

Pretty! - This credit card has some flashy ways of trying to pull WoW players into getting the card. First of all, they’re offering 13 different designs to choose from - enough that every single player can find one that makes them say “Oooo, pretty!” However, that’s completely irrelevant as to whether it’s a good card or not. My credit card is black with purple glitter! Doesn’t make it awesome.

Rewards - The main pull of the card is the rewards program. The site defines it as “Accrue World of Warcraft gametime at the rate of 1% of every dollar in qualifying purchases.” What that means, in English: For every $1,500 you charge to the card, you get a free month of WoW. You also get one free month just for getting the card and using it once.

A 1% rewards program is pretty pitiful. Also, the points you earn aren’t transferable to anything else, even to another WoW account. So if you decide to stop playing WoW (it could happen!), you can’t get anything else with your accumulated points, and you can’t sell that month of access to anyone else. You’re stuck. Tricksy way to keep you playing WoW? Yeah, I think so.

But if you’re truly gung-ho about the game, and have no plans to ever give it up, then this is a fair reward for you. But just to put it in perspective: if you were to only charge your monthly WoW access on the card (and nothing else), it would take you 100 months (over 8 years) to earn a free month of play.

Introductory 0% APR - This, as far as I can see, is the best feature the card is touting. 0% APR for 12 months on all purchases and balance transfers. Balance transfers still carry a 3% fee, up to $75, but that’s becoming pretty standard. The rates after the intro period are actually pretty good - if your credit is excellent, you’ll get 9.99%, if it’s good, 11.99%, and less than good, 13.99%. Of course the rate is variable - they can change it on you at any time for any reason. Standard icky credit card practice.

The Other Terms

The rest of the terms of the credit card are rather important, but I’m willing to bet most people don’t look at them, or do, but don’t understand them. But they’re still really important to know before you apply for any card.

Cash Advance APR: 23.85% - Don’t get a cash advance. They’re so painful!

Penalty Rate APR: up to 31.85% - The rate you’ll get if you’re late on a payment. I’m willing to bet there’s also a Universal Default clause hidden in here somewhere. That means this is the rate you’ll get if you’re late on ANYTHING - even your electric bill or your cell phone bill.

Grace Period: not less than 20 days - This is the amount of time from when your statement ends for the month until they start charging interest. Pay your bill in full in this time frame, and you’ll never be charged interest.

Method of Computing the Balance for Purchases: Average daily balance (including new purchases). - This is good. What you don’t want to see here is “two cycle billing.”

Annual fee: None. - Good! Unless a rewards card is really, really, spectacular, and you know you’re going to charge enough to take advantage of it, you never want to pay an annual fee.

Over Limit Fee: $35
Late Payment Fee: $35 if your New Balance is less than $500; or $39 if your New Balance is equal to or greater than $500.
These fees are painful, but pretty standard. Remember, not only will you be charged the late fee, but your interest rate might jump to upwards of 31.85%.

So… good card?

Yeah, it qualifies, if you’re an avid WoW player who’s going to charge enough to get the real benefit out of it. The 0% APR intro period is nice, too. Just remember, once that intro period is over, you have to pay your balance in full every month, or else the interest charges will almost certainly cancel out your rewards.

This is a long-awaited follow-up to Why I Left School.

If you got the feeling like I somewhat disappeared over the last week, you’re not wrong. I’ve had several appointments with my school’s academic and financial aid advisors. I’ve been trying to work out a way to go back to school in the fall.

I left that place an emotional wreck - it took me a full month to recover. You might be wondering why I even want to go back. I guess it’s sort of complicated.

I was a film major. My credits won’t transfer into another school, or another major within my own school. Options are very limited for me, unless I want to start over. And even starting over at a state school isn’t financially possible for me - I already have so much in loans, I can’t afford to “buy” four more years anywhere. So it had to be the same school. And it had to be less than two years to get my degree.

I can’t tell you how in love with my school’s Multidisciplinary Department I am right now. A quick meeting with them showed me I can graduate with a Bachelor’s Degree in Applied Arts and Science (a “Film and Finance” degree), and probably in less time than it would take me to finish up my straight-up Film degree.

If anyone is looking to switch majors, and you already have a few years under your belt, I suggest you seek out a similar department at your school. I’ve seen people spend two years at my school in the Computer Science major, and then transfer into the film program, only to spend four more years there. 6 years for a Bachelor’s in film is more than excessive.

I can afford two more years at my school now because of some changes in my life. I have my car now, so commuting is actually a possibility. And because my family is moving closer to my campus, it will be a much easier drive.

I understand the trade-off that commuting will bring. I already understand how much I’ll hate living out of the campus “sphere.” Some of my friends will probably have to get used to me crashing on their couches! The main cost problem will be avoiding the lure of the expensive vending machines and campus eateries. I haven’t quite figured out how I’m going to work around that - even when I was just living on the far side of campus, I was pretty dependent on the vending machines.

I’m still looking at more loans, probably another $10,000 or so. I suppose that’s the reality of poor kids going to expensive schools. Luckily, I’ll also be getting my academic scholarships and grants back.

I guess I don’t get to call myself a film school dropout anymore. But I guess I’m not really a film major again. I’m something else now. Something new. A finance major? Sort of… I guess I have a while now to figure it out.

As May 15th approaches, I become more and more engrossed with my fight against No Gas Day. A quick reiteration: I’m not fighting this because I love high gas prices and hate hippies - quite the contrary: I filled my tank up for $50 the other day and screamed and cried, and I also hug quite a few trees myself. But I find No Gas Day to be a bunk idea that takes away from real plans to lower gas prices and help the environment. And now MSNBC is backing me up:

Why one-day gas ‘boycott’ won’t work

The article addresses the accuracy of the No Gas Day email itself (no, gas prices did not drop 30 cents in one day after the first No Gas Day), and goes on to speculate about what would happen if no one used any gas for one day (no cars, lawnmowers, ambulances, or fire trucks) and who exactly would feel the pinch from that. In the end they come to the same conclusion I did: the best way to impact the price…

“is to reduce the amount of gasoline consumed per person. And the best way to do that is to improve the efficiency of cars on U.S. roads. If you doubled your average mileage, you would cut consumption in half.

Now that would put a big crimp in gasoline sales and almost certainly send pump prices tumbling.”