Where to start?

Personal finance can be a fairly daunting subject.  After all, money touches essentially every aspect of our lives.  While I've been done well so far with my finances, it doesn't hurt to get back to the basics every so often.  So where does one begin?

Well, I've thought about it for a little bit, and I'll start by trying to answer the following three questions in order:
#1:  Where am I?
#2:  Where do I want to go?
#3:  How do I get there?

I'll try and deal with each of these questions in later posts.

Trying again

I first started this blog over 4 years ago, when I had just started working my first job out of college.  I was spending a lot of time reading other personal finance blogs, and was learning a lot.  At the time, I thought I could also offer my own unique perspective.  Unfortunately, it turned out to be something I couldn't stick with - although the lessons I learned from others on budgeting, savings, and investing I have kept.

Now - four years later - I think I'm ready to try this again.  Why? What has changed? Well, I'm going back to school, which means difficult choices ahead.  Do I cut back on savings to pay for school?  Do I take on student loans?  Should I even be bothering to go back to school considering I am in a profession that does not require it?  If I do go back to school - what can I do to minimize the cost?

These are some of the questions I hope to answer in this blog.  Thanks for taking a look.

Money & Я: Personal Finance in Russia

Russia recently privitized the majority of their state pension system, which means that Russians must be thinking more about how they are going to fund their retirement. Combine this with private ownership of homes, and you can see the need for information on personal finance. I was just browsing along when I found this great little personal finance magazine published in Russia: Money & Я (tr: Money and Me). Now this is what a personal finance magazine should be: scantily clad models describing the state of the world economy. The message is clear: personal finance is sexy! On a more serious note, there are articles showing step by step how to get a mortgage, picking the right retirement fund, a history of the ruble, and others. Too bad, it looks like only three issues were published.

Things I do to be frugal.

This isn't an exhaustive list. To me, being frugal is just a matter not spending more than one has to.
1. I don't have cable or a new flat screen TV. Network TV is all I watch anyway, who cares if my TV is 20 years old anyway!
2. I am still using a four-year old refurbished laptop. All I really use my computer for is surfing the internet, and assembling spreadsheets, so it really works fine. (Although it is one its second hard drive, and I have been forced to add extra memory.)
3. The public library is my best friend. Books, DVDs, CDs, I can keep myself entertained for a year for just $5.50 in overdue fines.
4. I walk or take public transportation to work. To get to work, I can drive in 15 minutes, take the bus in 30, or walk in 45. Walking is free, I like it best :)
5. I rent. Sure, I could probably "afford" to buy a place, but renting is less expensive at the moment. There are other reasons as well, I'll get to those in a later post.
6. Shop sparingly. Every time I go to the store, I walk out with way too much stuff; therefore, I'm frugal by avoiding the store as long as possible.
7. The largest part of my budget is taxes, therefore, I try to maximize my tax deductions as much as possible. At the moment, this mainly consists of maxing out my 401k account at work.
8. Conserve energy. During the winter I keep the thermostat at 65 degrees F. I don't have AC, so that helps during the summer. When I drive, I go a constant speed and avoid rapid acceleration and braking.
9. Pack my lunches. Yum, sandwiches.
10. Staying single. I discovered that when I was dating someone, I was tripling my discretionary spending. Staying single, while not my ultimate goal, has contributed to some frugality while I am just starting out.

Well, there you have it. 10 things I do to be frugal.

Long over-due update

It is about time that I updated this blog. After all it has been around three months. A lot has happened. I did manage to buy a car. That turned out to be a huge learning experience. I ended up with a lousy loan because all I paid attention to was the rate, not the APR (which includes fees), and not the pre-payment penalty. Now, I'm stuck with this loan for the next five years (even though I originally asked for three years). C'est la vie!

Still trying to buy a car...

This week I discovered what a pain buying a car is. First, my budget limits me to used cars only. Unfortunately, everytime I find a car that fits what I am looking for, I call the dealership to discover that it has already been sold. Or, I go to the dealership to discover that the car wasn't clean, had a cracked rear-view mirror, and no spare tire. Hmmm... looks like I might have to give up on the heated leather seats, and raise my budget, or else, just be extremely patient and pounce on that deal the moment it is listed.

Giving more: Week one

For Lent, most people find something they enjoy, and give it up for the 40 days until Easter. I've decided to do something a little different. I'm giving an hour of my time each day to charity. What do I mean by that? I mean, the money I earn from one hour's work will be donated to charity. To make it interesting, I'm giving to a different charity each week.

Today marks one week since Ash Wednesday, which means it is time to make my first donation.

How am I choosing where to make my donations?

Works of Mercy or Social Justice?

Charitable works take two forms: 1) Actions that provide immediate relief to some need (works of mercy), and 2) Actions that address the root cause of the need (social justice). Personally, I prefer to give to organizations that address the second; however, there is both are necessary. For example, I can give money to an organization that provides education in less-developed countries, but education is difficult if the children are starving. As a result, I'll try to split my donations between the two.

Local, National, or International?

It seems that more can be accomplished with small donations internationally than nationally, or locally; and so it is my preference to give internationally. However, I cannot ignore those with need in my own backyard. I'll be sure to give to organizations that have both a local and international focus.

Charity of the week: Junior Achievement

Junior Achievement fits in remarkably well with this personal finance blog. From their website:

Our programs focus on seven key content areas: business, citizenship, economics, entrepreneurship, ethics and character, financial literacy and career development.
In the elementary grades, students learn about needs vs. wants, different types of jobs, and money & banking. Middle grades students study budgeting, job interviewing and decision-making. In high school, students try their hand at entrepreneurship, writing business plans and financial management. The Junior Achievement programs supplement standard social studies curricula and develop skills that are essential to success in the workplace and in life.

Success isn't always measured by money, but learning to understand it goes a long way. Because of the programs offered by Junior Achievement, they are the first group to receive my weekly contribution.