Counting Pennies

Lack of money is no excuse for lack of exercise. I worked for many years as a personal trainer and I always told my clients that you don’t need to sign up for a gym membership in order to get fit and lose weight.

Take Advantage of Your Environment

There are no rules that say you need an actual gym to get a good workout. In fact, getting your daily dose of exercise outdoors or by doing simple everyday chores at a higher intensity can be equally effective. Before you despair for not being able to afford a high-tech option, head to your local park and search for an open playground. If there are benches, monkey bars and other type of metal construction, you should be able to workout most muscle groups (think pull-ups, ab training and triceps dips) without any trouble. Otherwise, simply use your own furniture at home to do this and then head to the park for your cardio workout: take to the trails, use the local track or play Frisbee with the kids.

Look for Discounts

Lots of gyms offer a trial membership so you can try their place and see if it fits you. While these trials are short (one to two weeks is the norm), it may be a good solution if you are just temporarily short of money and will eventually be able to pay for a membership. Otherwise, look for ways to get a discount based on other factors. For example, many gyms offer free membership to their workers. This may mean something as simply as working a few hours behind the desk or as involved as becoming a trainer there. If you are over 65 or have a medical condition, you may be able to work out at a local Y for a reduced price as well.

Buy Your Own Equipment

While spending money doesn’t seem to be the smartest idea if you’re on a budget, the truth is that having your own workout equipment can save you tons in the long run. While a full-size gym may be out of reach for most people, don’t overlook the opportunities that abound at garage sales, online stores and second-hand shops. From small sets of dumbbells to workout stations that come complete with cables and pulleys, buying something used can be a great moneysaver and a good jumpstart to your workout. If your budget is very small, start with some basic items, such as step and a weighed bar or a par of dumbbells and that should get you through a few months of workouts before you need to upgrade to anything heavier or more involved.

Something unexpected came up and I’m supposed to travel out of the country in September. This will be a big blow to my wallet and my saving goals. I just bought the tickets (charged them to a credit card because really, I had no option, and the longer I wait to buy them, the more expensive they will be) and now I need to think about saving enough money to pay for my expenses for 14 days of hotel living! It’s not like I have a choice, though (this is NOT a vacation), so I’m trying not to freak out about it right now and see how I can come up with the money by the time I leave. It won’t be easy.

This got me thinking about savings and loans. I don’t have any savings at all except for the $400 you see in the ticker down the page. I have only one credit card, which is already near the limit now that I charged the (very) expensive tickets on it. I also don’t have anybody to loan me money in times of an emergency. Which means that in moments like this, I’m left to stress by myself. I’ve been feeling really guilty over the past few days. I know I’ve wasted money in the past (the casino trip is a good, recent example), and now that I desperately need it I understand how foolish I’ve been regarding my finances. I’m trying not to dwell on it, but I’m also hoping this will teach me to take better care of things so that I don’t find myself in this type of situation ever again.

You may remember this post, where I talked about the fine line between getting something for free and stealing something from your boss. Turns out the issue has more sides that I could imagine at one point. Let me explain.

I travel a lot as a freelancer, both locally and internationally. I;m currently in Russia in what was supposed to be a two-week assignment and turned into a six-month deal (don’t ask). Since my Russian is limited to words like “priviet” and “nyenada” and since there are no TV channels, radio stations or movie theaters showing anything in English, I’ve often found myself in desperate need for something… understandable. I’ve been spending my down time on the internet, mostly because it means I get access to other people who speak my own language and somewhat understand what I’m talking about when I say I love the sci-fi channel. The thing is, I’m bored out of my mind. So when I accidently ran across movie and magazine websites this past week, I felt in heaven.

Let’s be clear on something from the start: these websites are definitively not legal. They’re peer-sharing sites, where people post ripped DVDs, cam-recorded versions of movies still on the big screen or review copies that are not intended for home viewing. Then somebody on a writer’s forum I attend suggested a magazine site, where apparently you can read ANY magazine you want for free (each page is scanned and uploaded, high-quality). The writer was quickly scorned by others for promoting piracy and the link erased, but the name is easy to remember and so I found it anyway.

Now, if I was currently in the US, I probably wouldn’t even be searching online for things to watch or read, but as long as I’m in a place where I have access to NOTHING in English, is it really so bad to do so? Downloads are not possible at this sites; you basically just go online, watch (or read) whatever you want, and then move on.

I don’t want to name any sites here, but popular places such as YouTube and GoogleVideo also have lots of things to watch, including episodes from some of the most popular TV sitcoms. So if they don’t take those down, is it really my place to worry about it? I’m not exactly feeling guilty here.

Anybody has opinions on this?

For somebody who talks about her personal finances online, I’m still incredibly reserved about money issues. The internet allows certain grade of anonymity, which makes it easier to talk about my mistakes and goals and struggles. But sharing my finances with friends and family members? I’m not so sure. Lately, I’ve been faced with lots of questions from coworkers. See, I’m currently in Russia, where asking others how much they make is perfectly acceptable. This is not a question I’m comfortable with, though. For one, I know I’m making about 3 times what the locals make for the exact same job. This is a perk of being a foreigner, so I’m not going to get into an argument about the fairness of it. Still, my money is mine. I’m not sure I want to be telling others how much I earn or what I do with it.

I had a similar experience with a friend back home. We had agreed to do something together, but as the time grew near, I told her I needed to bow out because I simply didn’t have the money for it. She then went into this long speech about how I had told her just the week before that I landed a nice publishing contract and what had I wasted the money on. I was immediately taken aback by the comment. Yes, I had just signed a contract for an article, and yes, the money was good. That doesn’t mean I actually could spend the money on something frivolous (or, by the same account, that I even had the money yet, as anybody who works in this business knows it takes months between a signed contract and an actual paycheck).

Do people have a right to ask you what you do with your money? Your husband/wife does, but anybody else?

If you think the reason you have debts is because you don’t make enough money, think again. Experts agree that is not how much you make, but how much you spend that makes all the difference. Americans are in debt because they spend more than they earn. Yes, it’s that simple. We all want to live a rich, comfortable life, even if we can’t seem to afford it. That’s where credit cards, loans and layaway merchandise come in.

During a recent survey, almost 64 percent of the people interviewed believed that getting a second job would solve their problems. When asked what they would use the extra money for, they mentioned things like paying off their store credit cards or using it to pay for their next vacation with cash, rather than charging it. While I know we’re all guilty of the same (or similar) excesses, you can’t help but wonder why are these people taking a vacation at all if they’re already in debt? Or why are they charging things (we can assume these are either clothing or electronic department cards) if they don’t actually have the money for them? I’m not saying we have to deprive ourselves of everything, but doesn’t it make sense to hold off on these things if they’re out of reach? Wouldn’t you rather do that than taking a second job and having no days off at all? When will you actually enjoy those things you just bought?

Shouldn’t we at least be thinking about these things?

I ran into a great website a few days ago. FixUpMyPic.com does just what the name implies: helps you fix your pics and get rid of unsightly blemishes, dark backgrounds or unbalanced whites. You can airbrush, create frames or use lots of effects on your photos. The best part? You don’t have to do it yourself? Simply upload a photo, choose what changes you want to see and then wait 24 hrs to receive the photo back by email. Their basic service (which includes everything I’ve mentioned above) is free, and they also have a Premium service that for just 99 cents per photo will fix major problems (like getting rid of your dark undereye circles or cropping annoying people out of the photo). I have some really nice photo retouching software on my computer (that I actually know how to use), so I probably won’t be using their free service much (although I did try it to see how the photos would turn out and it was really good), but if you don’t want to spend money on a program or if you have something done by professionals, this website is definitively worth it.

Have you ever cashed your paycheck, only to see a third of it gone in a week? How often do you find yourself lost when trying to figure out where that money went?

Welcome to the club.

According to a recent survey, over 50 percent of Americans have no idea of what they do with their money: they write no budget, have no savings account and keep no records of their expenses. Experts believe that most of those who deal with “disappearing” money have one (or more) of the following small habits. While they may not sound too dangerous written like this, they do have some serious consequences.

1. Impulse buys. Those magazines and chocolate bars you buy at the checkout counter add up.
2. Snacks. From chips to soda cans, these single-serving, prepackaged foods are extremely expensive (just add them up over the course of a week and you’ll see)
3. Extended warranties. They’re a waste of money. If something does break after three years, you’re a lot more likely to replace it than to bring it over for repair.
4. Bottled water. I actually can’t get myself to drink tap water, but at home I use a Brita filter. If I’m on the go, I’m still willing to pay for bottled water (it’s still cheaper than soda)
5. Prepackaged anything. Buying in bulk is cheaper and nicer to the Earth.
6. Gourmet coffee. Unless you make your own at home, in which case it’s ok to buy one-of-a-kind, expensive beans. Otherwise, spending $4 a day on a latte on your way to work is a really, really bad idea.
7. Cigarettes. Do I need to say anything more?
8. Lottery tickets. You don’t really think you’ll win, right?
9. Memberships you don’t use (how many times have you been to the gym since you signed up?), subscriptions to magazines and newspapers you don’t really read, and classes or things you paid for but never used.
10. Clothes that don’t fit. Do you ever go shopping and love something even though it doesn’t fit. Do you ever buy it anyway thinking you’ll lose the weight and be able to get into it eventually? Don’t. You’ll either won’t lose the weight or by the time you do you may feel differently about the item. Always buy things that fit.

I’m a list-maker. I write lists for things to do daily, weekly and monthly. I have lists of things I want to accomplish this year and things I want to accomplish before I die. Sometimes I make secondary lists to break down some task into smaller steps, and I’ve been known to make lists when planning a vacation, shopping for presents or trying to decide what to do with my life (like how to solve a specific problem or dilemma).

The only thing I don’t make lists for is my weekly shopping.

Sounds crazy, doesn’t it?

The thing I’ve discovered with lists is that not only do they make my life easier but they also help me stay in track, whether that means making the most of my day or spending less money. I wrote about that on an article called How to Stop Wasting Time (can’t do copy/paste, so I’m linking to it). I’m not sure why I haven’t been able to incorporate the list making into my shopping as well, but that’s definitively my goal for September. Lists for food shopping, for household items, for weekly shopping. Rather than just going out and buying things I’ve run out of, I’ll work out a list and try to stick to it. I’m hoping this will give you better control over my cash flow and help me cut corners on things I shouldn’t be really spending on.

I’ll let you know how it goes.

While getting a degree is a smart financial decision, it also brings along some heavy consequences for your wallet in the short run. Whether you’re still in college or are out and ready to face the world, here are some tips from Family Savings Expert Kim Danger on making the most of your situation.

Live Beneath Your Means. The “I’ll pay for it later” mentality is a common pitfall among young adults, according to Danger. “Assuming your paychecks will only get bigger and that paying the bills will be easier when more money is rolling in can get you into big trouble. Always spend less than you earn (aim for living on 80% of what you earn) and your financial future will take care of itself.”

Resist the Urge to Spend. If you’re a new graduate, your first paycheck may be burning a hole in your pocket. “Resist the temptation to go out and treat yourself with big-ticket items,” says Danger. “Let your friends go into debt buying cars they really can’t afford and always carrying the latest designer handbag.” It’s ok to reward yourself for your hard work by buying small pleasures and “realizing that financial security is a bigger luxury than anything you can buy.”

Student Loans. According to official statistics, the average graduate leaves college with about $20,000 in student loans. “It’s a natural urge to want to pay down your student loan as quickly as possible, but if you have a low rate and good terms you may want to re-think,” says Danger. “If you’re able to apply extra to your loan, pay off higher rate debt such as credit cards first. Then, consider investing in something with a higher rate of return to build wealth.” 

Don’t Abuse Credit Cards. In today’s world, getting a credit card is extremely easy. Paying it off isn’t quite so simple. “Having one or two cards to establish credit history is a good idea, but leave it at that,” says Danger. “Many credit card companies target newly minted college graduates with low introductory rates. Read the fine print and make sure that your rate doesn’t skyrocket after the initial introductory period.” 

Young adulthood is an exciting time. You’ve got your entire life ahead of you and minimal obligations.  With systems in place to ensure a good financial footing, be sure to enjoy your money too. Now’s the time to live it up!  

Yesterday was a friend’s birthday and as a celebration, she asked a few of us girls to tag along with her to Atlantic City. I didn’t want to say no because we don’t often get the chance to hang out (I’m always super busy and she has a really complicated –read: difficult– life), so I ended up saying yes against my best judgement. Turns out there’s a reason I don’t go to casinos often (besides the fact that there isn’t any around here): I have a hard time stopping. This is especially true if I’m winning or at least win something through the day.

I made it a point to leave my credit/debit cards at home so I wouldn’t be tempted to overspend, but I did bring about $200 in cash, just so I could shop a little or have lunch or whatever we felt like doing. My friend, however, wanted to spend most of the time visiting the different casinos and she was having such a difficult day that none of us had the heart to tell her no. So we all ended up winning and then eventually losing pretty much all the money. I came back home about $120 poorer and with nothing to show for it –Not even a happily full stomach, since I’m on a diet. Turns out I have a lot more control when it comes to food than money. I’m totally proud of myself for the first point and totally ashamed about the second. I mean, I’m old enough to know better, right?

I’ve been feeling really guilty about the whole situation today and keep wondering if this is an indication of the lack of control I seem to have over my finances in general. Do I do this often? Spend money when I know I shouldn’t? Save cents here and there and then throw dollars away without giving it a second thought? I need to sit down and deal with these feelings and ideas at some point, but today they just feel a little overwhelming.