Breaking Even, Inc.

Do You Cost? Determining Net Worth

I was surfing the New York Times web site and happened upon their personal finance calculators. Now I love online calculators because they give you fun figures and you have to do a minimal amount of work. The first calculator I used determines how wealthy you are compared to “others in your age range”. The variables you input are your age, your income, and your net worth.

The third variable got me. How much am I worth? Friends and family would say a million bucks because they are sweet but also delusional (you know, in a fun way). Here is a link that’ll help you calculate your net worth to the actual world. Meanwhile with my car, various possessions, savings, and retirement investments, I’m worth about $55,000.

All told, according to the calculator, for my age and income, I am 0.962 of the Desired Net Worth, meaning that people my age making my salary are worth a little more than I am. The only reason I am worth even close to what my peers are is that 1) my parents started a retirement account for me earlier than I ever thought of it and 2) my grandfather died last year, leaving me some unexpected money. To be an average accumulator of wealth, I need to be making at least $29,000. Hmph.

To make myself feel better, I did the simple savings calculator. If I’m able to continue putting away $50 a week into my retirement over the course of 25 years (even at a merely three percent) for $70,000ish I will have invested, I'll have acumulated $45,000 in interest. Yay compound interest. But that means I have to keep at it.

Do you know of any good calculators for personal finance? Leave them in the comments for others to see! Until then, have fun with some numbers, knowing that the more you can save, the less you'll cost yourself in the long run because in some ways, it's good to be a cheap date. Happy 2008.

Free Music and Movies

I know, I put the word "free" in there to get your attention. But it is true.

I just found out that our library has CDs (and I already knew about movies) that you can take out for free for a couple of weeks at a time.

While what our library had wasn't necessarily cutting edge (albums that were cool about five years ago with a few new ones), your local library can be mined for classics or local independent stuff. (At least I would think, if you're too awful musical-talentedwise to be carried by the local library, you may want to rethink that music career.)

Yeah, I've totally "rented" library movies but when I saw the two racks of CDs, I had a new found appreciation for my local resource.

Of course, I only listened to the CDs I took out a few times and then brought them right back... I certainly didn't rip them to my computer or remix them or anything. Oh, and I didn't check out any Metallica. So record companies, please don't sue me. And everyone else, check out your library!

New Year, New You

I don’t know if it’s the New Year approaching or the fact that new cameras and old friends seem to be out and about a lot more this month but something about December makes me long for some kind of change. It’s easy to get in a rut. So what’s a girl (or guy) on a budget to do?

I find there are a few things that have help me get excited about a new me in the upcoming year. Maybe a few of these can work for you. They are all instantaneous, meaning you can do them right away, as opposed to say, working out, which takes a few weeks to feel good about. Today, it’s all about instant gratification.

1. Get a haircut. Today, I got bangs and am toying with the idea of a boxed hair color (or possibly some of that glaze stuff) to tone up my natural color. A twenty dollar haircut and a ten dollar box of color may be all you need, too. Don’t like it? It’ll grow back! It’s not like you’re getting a tattoo or anything! Here’s a good link about choosing a box hair color. I also recommend bringing a friend to help select as they can see your hair better than you can and give you a much needed reality check (“No, Nicole, your hair will never look like hers.” is sometimes exactly what you need to hear).

2. Get a new accessory... or outfit for cheap. A thrift store or discount store can have something great that won’t break the bank, whether it’s a new scarf or a whole new outfit. A great place to find a fun New Year’s ensemble that no one else will be wearing! Find a store near you (and read what other people think about the store) here. Or, you know, check your Yellow pages.

3. Get a new lipstick… or have your way-too-eager friend do your makeup. Sometimes buying one trendy item to go with what you already have can inspire you do try new things. My hot pink lipstick last year really gave me a lift when I needed it. I’ve always wanted to learn how to look better with makeup and if you or your friends aren’t so gifted in this department and you’re interested in learning, check out Bobbi Brown’s site which includes videos of how to create make-up looks, like for me the elusive smoky eye.

4. Clean out your closet and get the clothes you keep tailored. Get rid of those old clothes holding you back (plus get a receipt when you donate them for your very own tax write-off!). If you don’t want to get rid of things right away, put them in a box for six months. If you can’t name what’s in there six months from now, you officially don’t miss them. Have a few nice pieces of clothing that could fit better? For a few dollars at the tailor, your clothes can fit you like a glove and become clothes you love. Here are some ideas about how to find a tailor.

5. Do something for someone else. Join a board of a local non-profit. Volunteer at a shelter. Do something for someone else. Nothing gets you out of a rut like getting out of yourself for a few minutes. It puts those couple extra pounds and a lack of smoky eye into perspective like nothing else. Volunteer Match will match you to a volunteer opportunity near you, or you can just ask around.

So make a change if you want, or even if you don’t want. Because we all need change. It’s a good thing and really the only way we can attempt to improve ourselves. Until next time, I rock my new bangs and all other chances I have to try something new.

Making Money Blogging... Some ideas

I told myself I would never blog about blogging. It just seemed like a kind of odd thing to do. But here I am...

So I think it's clear that I like to write. Always have, always will. I'm trying to figure out if blogging will actually ever make me money. Before I think about making money off Google Adsense or my own ads or endorsements, I need to build some credibility. And I need more people to come to this site.

To drive up traffic, I've 1) added this blog to blog directories (see my list of links on the side of the page). Have a forgotten one? Let me know. I'm going to track my stats and see which blog directories are driving the most traffic my way. I'll let you know.

I have also 2) emailed and told people about this blog. Some of my friends love it and tell me, and some just read it, both of which I totally appreciate.

I am taking a next step 3) learning how to market my blog. There are some great tips on this web site.

I'm evaluating a multi-media course on blogging from the folks at Simpleology. For a while, they're letting you snag it for free if you post about it on your blog.

It covers:

• The best blogging techniques.
• How to get traffic to your blog.
• How to turn your blog into money.

I'll let you know what I think once I've had a chance to check it out. Meanwhile, go grab yours while it's still free.

I am hopeful that all three of these things will drive up traffic on my little blog. Anyone else have other ideas they've tried or know about? 

The Credit Reports Are In...

Remember waaay back when I ordered my credit reports? Well, I have them all in and have gone through them with a fine toothed comb. It shows every credit inquiry and account opened (because who hasn't opened a Filene's card to get 10% off?). By the way, going through them doesn't take long. They are surprisingly readable. It only took me long because it's been a crazy fall for me. . .

The good news with my credit reports? Nothing unusual on any of them. But I will keep ordering them every year because 1) I'm entitled and 2) You never know.

I'm wondering if anyone out there has ever had a dispute with their credit report, and how they resolved it. If you're in or have been in this boat, I'm sorry to hear but I hope you can share your advice. . .

I'm Offically Addicted...

My mom has been recieving Bon Appetit magazine and then either sending them or giving them to me for years now. Also, whenever people see a great recipe in a book or are thinking of getting rid of a cookbook, they ask me first.

I'm known as a lover or recipes and a bit of a cook (though not at all a baker as some friends are a little too quick to point out...though my cake with substitutions did work out in the end, anyway...). The problem then becomes a file folder of recipes I can't organize, let alone find to make. Plus piles of ripped out magazine pages just get to me.

While in my real life, I would love to go completely paperless and get rid of my three file boxes (which were whittled down from four last year), I realize I need to take this one step at a time. Organize one life area at a time, feel success in that, learn to maintain the organization, then move onto the next thing.

I stumbled upon this great recipe coraller via another blog which has great recipes in its own right. Tastebooks allow users to import recipes from Epicurious, Bon Appetit, and Gormet magazines as well as type up their own. You can then share them with other people and then choose recipes and assemble them into your own nice cookbook. If you want control over th design, you have it. The products look beautiful and, at only $35 each, they seem like they would make a great gift for any friend who likes to cook. The best part though is it's free to store and share recipes. And you know how much I like free, but never at the expense of nice. Tastebooks is no exception.

Now, I used to belong to an all female "dinner club" and if we had known about this site, I bet we would have shared a lot more recipes with each other! (My poor friend Ally was in charge of combining our recipes and formatting them into a book... and apparently, we are a hard bunch to extract recipes from!) So sign up and begin organizing and sharing your recipes with your friends and family.

Tis the season to cook up a storm and share good cheer! 

A Cozy Afternoon With Just Me and My Taxes

I finally sat down yesterday with all my tax stuff and began a new sheet of paper called "Tax Crap".

No one likes doing this. I don't like doing this. But at least I know all my tax stuff is together and ready to go. I also know what I'll be claiming for deductions. Allow me to share.

1. Charitable contributions (the key with this is you need proof... a receipt, a check copy, a credit card statement, something): about $1,500

I sponsored my buddy Marc for the Trek Across Maine (it goes to the American Lung Association). I am an MPBN member, contributed to the SPCA where I got Sadie, and gave some money back to my college. That was almost $200 right there. My donated clothes value (I kept a list of all donations and receipts from them) put me over the required $500 minimum deduction. Yipee! Being charitable pays off!

2. Moving expenses: Moving is a pain. Moving off an island, even more so. Take the Uhaul and add almost $80 in ferry tickets. My move cost $250. Exempt that, Uncle Sam!

3. IRA contribution: I'm putting $50 a week into my IRA and have been for the 22 weeks I've been working at my current job. $1100 that Uncle Sam can't tax me on.

4. Medical bills: I technically have medical insurance but it kind of stinks in that it doesn't seem to cover much. With my adjusted gross income (which I don't know how to calculate), I may have spent over the 7.5 percent on medical bills. I'll have to check this with my accountant but I have the receipts and the calculations ready to go. $500 in medical stuff may just be enough for me. Oh, and remember that dental, eye, mental health, etc. all works for this too. Count it all.

Yup, Uncle Sam is getting way less of my money this year. And it was well worth an afternoon of "Tax Crap". 

In Praise of Homemade Gifts

A few years ago, during a period of unemployment, I decided to make my own Christmas gifts. I had my family and my then-boyfriend's family as well as friends who I felt I should give gifts to.   What followed was a period of frustration and exhaustive work that lasted the month before Christmas and ultimately helped me realize how much my time was worth. Allow me to explain.

One can do a simple cost breakdown to see the value of some sample homemade gifts. Here are breakdowns for some of mine:

What: Scarf
For: My sister
Raw Materials and cost: Yarn, $10
Amount of Time spent on gift: 10 hours (it was my first scarf, and a long scarf that involved fringe)
Value of Gift (materials + time compensated at minimum wage): $80

What: Candles
For: Mothers and sisters
Raw Materials and cost: gel stuff, wicks, containers to put candles in, $50. Used pots and oven in my mother's kitchen.
Amount of Time spent on gift: 3-4 hours
Value of Gifts (materials + time compensated at minimum wage)= $71-78 for four candles

What: Soaps
For: Everyone
Raw materials and cost: soap stuff, dye for soap (don't use food coloring; it will dye people's skin and make them laugh at you), fragrance, $15. Used molds from my mother's kitchen.
Amount of time spent: 2 hours
Value of Gifts: $29

What: Chocolates
For: Everyone
Raw materials and cost: Truffle materials, $20
Amount of time spent: 2 hours
Value of gifts: $34 for 8 small packages

I made more than this and a few more specialized gifts for close family. I calculate now that I spent about $200 on supplies including packaging to put my homemade gifts in (baskets, jars, bags, pretty ribbons, cards). I spent about 20 hours making the gifts, which doesn't sound like much, but the State of Maine values this time to be at least $140. My $340 was far from cheap, even though some gift recipients thought my gifts to be small trinkets (and they are, thankfully, no longer receiving gifts from me).

So after my experience, would I encourage someone else low on funds to make gifts for the holiday season? Maybe, but I certainly won't do it again. It is much less time and effort to go out and buy a gift, even an inexpensive one than it is to think of homemade gifts, research how to make them, and actually make them. It is also much more economical to buy that scarf in the bargain bin or those little candles for 50 cents each than to try to recreate them yourself.

So when I receive a homemade gift from someone, I feel a little more grateful than I would have in the past. Because good things take time and how valuable is something from the heart made with the hands?

Homemade gifts, I salute you but admire you from afar... Well ok, I am making something for my mom this Christmas. :^) What can I say, I couldn't resist...plus I know she appreciates it.

Don't Be Blinded By The Shiny Christmas Decorations...Or Target Deals

I know that Jesus is supposed to be the reason for the season but unless you haven't walked into a store in the last two weeks, it's hard not to at least spend some time thinking about the commercial crap. I walked into Target tonight and got swept up for several moments into wondering why I didn't have a basket of pinecones by the door or sleigh bells just in case. Oh, that silver reindeer ornament is so classic! Then I mentally slapped myself and focused on the mission at hand.

Sean and I bought wreaths this weekend. We didn't get a tree but I couldn't resist the urge to get a wreath for each door. They smell fresh and pine-y and will last at least a couple months. To go with these wreaths, I needed two over-the-door hooks (weath hangers for lack of a better term) and two red bows. I bought the items and a couple wrapping aids (bows, tags) and went to the cash. I was $15 over what I was expecting but wanted to leave so bad, I figured that I just couldn't add. I used my gift card (the reason I had went there in the first place was to use the card before I lost it) and I paid the $15 over in cash.

I got home and unpacked my bag. One of my bows was a thrifty 99 cents, the other... $19.99! What the heck? How could three pieces of folded ribbon cost what a dinner out costs? They were right next to each other on the rack. I am posting a photo below of both ribbons below. Can you pick out the ridiculously overpriced bow?

Moral of this story: don't be blinded by all the red and flashing lights. Just because it's in the seasonal/bargain rack/clearance section doesn't mean the item should be there. Check the prices of each item and if things aren't coming out right numberswise when you check out, look at your reciept before driving over half an hour away. Oh and Target, much less impressed than I once was.

Here's hoping someone will learn from my mistake. Also, I'm keeping these darn ribbons for the next five years at least. Might as well do a year by year comparison as to how they hold up at the very least...Merry Freakin' Christmas!

A Weekend Getaway

Sean and I are going away overnight on Saturday to visit friends. They have a baby and a dog already so I figured if at all possible, I'd try to leave Sadie behind (I know, look at that face. It's amazing I get to work every morning!)

Rather than spend 45 minutes driving her to my aunt's house (which is in the wrong direction anyway), I'm paying the neighbor's kid to watch her. $25 will allow Sadie to stay in her own house and put some money in a kid's pocket. It's what I'd pay to leave her at a kennel anyway.

I'm hoping that he likes doing this so that whenever I want to leave, I don't have to start going through my address book desperate for a puppy sitter. And knowing I have someone I can count on, I may actually leave a little more often. Sorry Sadie, momma needs a life.

A Bookcase of Ones Own

Yesterday, my long awaited bookcase was ready for me to put my books into it.

When my boyfriend asked me this summer what I wanted for our anniversary, I told him a bookcase. I've always had built-ins everywhere I've lived but in this house, there was no place to put my books. And I had boxes and boxes of books.

Some nagging and about $200 of supplies later (Sean's money, not mine), I now have a beautiful and ginormous bookcase that holds 12 boxes of books and still has room to spare. I have decided though that while I could very well keep all my books that it would be much better to share at least some of them by giving them away to friends one by one. And voila, a random act of kindness (a gift you could even say) that's free.

For the books I am giving away, I am writing them down in a notebook, title and author as well as my overall impressions. If I ever want to be reminded of a book that has left me, I only have to look in my notebook to be reminded.

I gave away my first book today. And it felt good. So if you get a book in the mail, don't be surprised. I'm actually trying to make your day.

SOS (Shoveling Own Snow)

The great thing about having a house is getting to play outside in the snow.

The great thing about having a house is getting to wake up early and shovel snow.

The great thing about having a house is getting up early and taking half an hour to shovel the minimum amout of snow it takes to get the car out of the driveway to be able to drive to work.

OK, to be truthful, it's not so great.

Just get a snowblower, you say? Have you ever priced those things? I have better projects to spend $500+ on. . . Why we can't pay some guy with a plow truck $20 to plow our driveway in five minutes, I don't know.

Until then, I am shoveling getting to "save money and burn calories" as the boyfriend says. It's all about looking on that bright side. Here's me headed out into the great white world...