Breaking Even, Inc.

A Thinking Weekend

I Need To Make A Decision About Work Soon...

Many of you know, I work for a local newspaper, which I really like as a job but not as a salary. I understood that initially, they were taking a chance on me. I had no newspaper or web design experience. I was new to the area and, from the looks of my resume, seem to move every two years. I understood (or at least I thought I did) the low salary as a way to test my performance and my loyalty.

As a result for the past year, I've put my heart into this job. To be honest, I feel more successful at this job than I ever have at any other. I've accomplished and surpassed the goals I set for myself. I have tried to go above and beyond when possible, and am proud when someone says something to the effect of  "Give it to Nicole; she'll get it done." I genuinely enjoy the people I work with, my boss in particular. He's honest, positive, gives feedback when I ask, and lets me try out my ideas. My coworkers teach me a lot and make me enjoy going to work everyday.

So full disclosure time. I went to Boston last weekend for two informational interviews. (To be clear, I didn't go looking for a job; I just met someone who knew someone and boom! it was set up.) The digital PR companies I interviewed at were modern and filled with creative, smart people. They had a whole department of web content creation (which is what I really enjoy) and offered a great salary in addition to great benefits and professional development opportunities. One company said if I relocated, they would offer me a position while the HR person for the other company wanted to follow up with me later in the week.

It felt really weird not telling my boss about my trip. I wasn't sure if there would be anything to tell but after my interviews, I felt there was. So I told him. I wanted him to know what I was thinking and I also wanted to make sure he didn't have an offer from our company in mind. My year review is coming up and I was thinking it would be time for a raise.

I sat down with him yesterday for my review. I was offered a commission if I would sell advertising on our web site as my raise. I know that their offer was meant to give me more money than their typical raise and as a compliment to my people skills. But I walked out of the meeting feeling bummed. Not even a cost of living standard 3% raise?

The thing is, I wouldn't feel comfortable upgrading my lifestyle in any way if my extra funds were based on commission. You never know what's coming in moneywise. I also thought that I was productive enough at work in what I was doing to warrent a raise free and clear. But I don't think the company works that way. The low salary wasn't a test of my loyalty; it is how things were going to be.

This is a tough one. Clearly I have a lot to think about this weekend...

How did I get hooked up in the first place? A classic informational interview. To learn more about informational interviews, see this article "The Informational Interview: A Job-Hunter's Secret Weapon" at Get Rich Slowly.

The Zen And Art Of Coupon Clipping

There are some things we admittedly can't do much about. Gas prices and high taxes are two such things (though I suppose you could convert your car to biodiesel or work under the table but both those things require too much effort for me).

I've been looking for ways to further trim my budget, which is actually quite lean. I have made it a goal though of cutting off $50 a month from my $250 a month grocery bill (that's for two people).

There are a few tips related to grocery shopping that I seem to keep hearing over and over in my research and from talking to people: make a price book and cut coupons.

Price Book
If you look at your grocery list, you are probably buying the same things most every week. A price book is just a book you bring with you to the grocery store and write down the lowest prices you pay per item. This way, when you are shopping and wondering whether something is a good price or not, you can consult a reference specific to where you live and shop. I think I have one of these in my head but I really should formalize it. I may be surprised.

Coupons
Yes, I have been using the Grocery Game for a few months now and it is quite helpful but I really want to step up my game (plus it's $5 a month, I mean, can I do this myself?). I've also used coupons off their website to go with the sales. The idea with coupons is 1) that you wait until something is on sale and use a coupon to buy it and 2) you buy nonperishable things while they are on sale so as to "stockpile" them.

And here's an article if you want to get really serious about the coupons (From The Digerati Life).

Since I haven't given coupon cutting the chance it deserves, I went out on Sunday and bought the weekend paper for $1.50. I then proceeded to cut the coupons from it (probably at least $20 worth). I listened to the radio and had a coffee. I found myself quite relaxed after! I even took a photo to illustrate the experience.

So my financial goal is to reduce my grocery bill by $50 a month using a price book, coupons, and The Grocery Game.

Wish me luck and do feel free to share your own coupon cutting tips and tricks.

Budget, Interrupted

How A Grocery Budget Can Effect Your Relationship

Looking at last month's budget, I am struck by how off I was. Groceries were almost $250 off my budget. What kind of personal finance blogger am I? To be fair, eating out spending for me was one meal out, meaning I was eating more food at home. (Other things that threw me off: stuff for the dog, my spontaneous weekend trip to Boston, and the fact that I paid to have my taxes done, which I wasn't going to do initially.)

To get the full picture, fuel spending was half what it usually is and I didn't have to buy any gifts last month (I budget $150 a month for that and if you think of birthdays, weddings, and holiday giving really isn't much).

The grocery overspend made Sean wonder, too. Then I showed him some information in the blogosphere. Apparently, in times of trouble, food companies may not increase prices but decrease volumes as a way of saving money instead (CNN Money). I am also intrigued by putting a teenager on a grocery budget, which to me makes sense if your older children are always putting things in your cart(Debt-Free Revolution). Sean admits to wanting to impulse buy and I hate to act like Mean Mommy and say "no" to him just adding stuff randomly to the cart. He's agreed to sticking to the list with no whining and I've proposed that we don't go to the grocery store this week to get a jump start on saving money this month. So far, so good.

This strict budget has been a way to make us both accountable (for shared expenses) and has kept me honest. I think it's important for couples to be on the same page financially, even if it is something silly like groceries. The Simple Dollar had a great post on how to talk to your partner about money: The First Money Talk: The When and How of a Conversation Every Couple Needs to Have. Both Sean and I have regular conversations about money coming in and going out so we both have an idea what the other is dealing with. Do other people do this as well?

Photo: Homemade food: Inexpensive, yummy, and nutritious!

America's Money Series At CNN Money

Looking for the kind of website that keeps you reading. Check out the "America's Money: In their own words", an almost voyeuristic look at some "typical" Americans and their money.

The other day, I had my first big doubt about what I'm currently doing with the blog. "Do I really know enough to write this blog?" I thought. But then I realized as Sean was reading me some of these America's Money stories last night that there was a clear difference in people's thinking.

Some were continuing on a wrong path and frustrated (A favorite paraphrased quote: "..and with private school tuition, I don't even know what to do.") Some people, however, were making changes and striving for self improvement. I think that's the kind of person I am. It was then I realized that as long as I learned new things and kept sharing them in interesting ways, that maybe I can do this blogging thing. And as long as you keep learning and make strides to improve your situation, financial or otherwise, things should only get better for you too, even if you doubt that you can do it from time to time.

Short enough to be addicting, these money stories kept Sean and I looking at this website for half an hour or so (just another exciting Saturday night!).

Check out America's Money here...

From The Ridiculous News Desk

Couple Makes Cutbacks We Could Only Dream Of

Front page of CNN Money last night: Careers vanish after subprime 'free fall'

In case you don't feel like doing the reading, the highlights:

First Few Paragraphs: Couple gets canned after industry cutbacks but before that they were raking it in.
"The two didn't say exactly how much money they made at their last jobs but Kent admitted they each had six-figure incomes."

The Issue: While their life has changed, they refuse to make major adjustments.
"Their home equity line, mortgage, health and life insurance premiums alone cost about $10,000 a month. Still, they are trying to hang onto what they call their dream home with a view of the Pacific Ocean where they live with Mysti's 11-year old son."

Here are the sacrifices they have made:
"We've used up most of our reserves, cashed in her 401K," said Kent. "We're going Mach 1 into a wall. When we run into it, then we've got to decide what to do next."

Despite their financial problems, the Copes have worked hard to protect their credit rating, staying current on bills. And they've made cutbacks: trading in Kent's Corvette for a Suburban and getting rid of the gardener, for example. But the couple also has learned that it didn't need everything it used to spend money on.

"We used to eat out a lot. Now we are the leftover king and queen," said Kent.

Apparently, sub prime morgage companies now have a stigma to them, making it hard for the couple to find jobs.
"Since he lost his job, Kent has gotten a real estate license and is trying to start a business selling the rapidly increasing inventory of foreclosed homes in Orange County, Calif. Mysti is trying to build an online business selling jewelry and beachwear, some of which she designs herself."

"...For Mysti, 37, all her efforts to find work since she lost her job last May have been futile. She said she believes the attention given to subprime borrowers who have run into trouble paying their mortgages work against her and other former colleagues. It's almost like having "Enron" on your resume.

"The media has somewhat tarnished the subprime industry and all the employees, and portrayed them as being dishonest," she said. "We're not dishonest. Not everybody was a bad borrower. Not every company was a bad lender."

What I'm trying to figure out is why did CNN interview this couple? Clearly it's nearly impossible to feel sorry for them; I mean, their "step down" is a Suburban.

What I do think is CNN Money is using this extreme example to teach us all a lesson. Kent and Mysti had no savings and cashed in a 401K to live on. They aren't taking lower paying but steady jobs and working on their side projects (education, online business) in their free time. I feel like at this point, you have to look at your life and say, "You know what? This is going to suck for awhile." Get rid of the huge house (even if it's worth less than you paid for it), get a smaller rent, find a job that pays five figures, and get a cheap small car. Oh, and they could read this blog if they needed some help in other areas. Maintaining a lifestyle you can't afford hurts only you, whether you want to cash in your chips before it gets bad or get carried out of your house kicking and screaming.

I think we could all learn a little from Kent and Mysti, and maybe on some mean level, feel better about our own situations.

Image from CNN Money article mentioned above

The Magic of Life: 14 Things I (Almost) Never Have To Buy

Do you have things in life that you use but no matter what they always seem to be there in reserve? I have things I haven’t bought in months (and sometimes years) that still seem to be well stocked in the house. They are barely a flicker in the fire of my budget. Perhaps you can identify with some of these:

1. Pens and Pencils- So when I got a little fat in college, I asked my mother (nicely I hope) to not send me any more junk food. She began to then send silly socks, healthier food, and pens and pencils in my care packages. Between mom’s generosity, accidentally kleptoing, free giveaways, and provisions from every job I’ve ever had, I have enough writing tools in reserve indefinitely.
2. Toothbrushes- There has been a debate in our house about how often one is supposed to change toothbrushes. Here’s one opinion on the subject. I get one from my dentist every six months when I go in for my cleaning. Apparently that’s enough for me because I can’t think of when I ever needed to buy one.
3. Cleaning Products- Maybe it’s because I move all the time and other people tend to leave cleaners behind or maybe it’s that I’m not as clean as the rest of Americabut about $50 worth of cleaning supplies (the bulk of it being laundry detergent) is more than enough for me for a year. And that isn’t $50 of cheap cleaner. I buy the organic, good for the environment stuff so I can feel alright when Sadie is licking the floor or cabinets. I like Method a lot. If I was really industrious and cool, I’d make my own.
4. Paper- I buy one ream of paper every couple years for printing projects that are going somewhere special. Otherwise, I recycle office paper used only on one side in my printer for stuff only I will see. I have also cut paper into small squares and stapled them together for a not so fancy notepad.
5. Candles- Perhaps it’s my femaleness or the fact that candles make good gifts in general but I have enough good smelling ones to last me through many a potential power outage. I have also been known to remelt (I used one of those candle warmers to get the wax pourable without dirtying a pan) and recombine bits of candles into one new one.
6. Perfume, Body lotion, soap…- Again, perhaps my femaleness makes me more inclined to get this sort of thing as a gift. All of these things seem to appear far faster than I could ever use them. I have five perfumes going right now, and this is after giving several away. Oh well, at least I smell good!
7. Wall calendars- everyone seems to be giving away a calendar at the end of a year. While I saw a cool woodblock pattern one this year, I couldn’t justify buying it. We already had two perfectly good (and free) wall calendars.
8. Socks- Mom has single-handedly kept me in socks for years between college care packages and other gifts. Also it probably helps that the moment it gets warm enough, I don’t wear them anymore, which saves a few months or so of wear and tear every year. Oh and I’ve also been known to sew holes. Cheap, yes. Practical, yes.
9. Vases and flower pots- Often coming with flowers, vases can be washed and reused. After a couple years of dating the right type of people, you should have amassed quite a collection. If you’ve expressed interest in flowers that last through time, the same can be expected for your flower pot collection.
10. Dishes and napkins- I feel like dishes are either given to you or so cheap that you can buy a set and use them for years. My $20 set of Corell white dishes is still going strong. I’ve received glasses from my friend Kate and silverware from Mom. Also, cloth napkins can be made and washed easily enough that you almost never have to replace them. One set I’ve had for six years is getting just a little warn out. (As a complete aside, cloth napkins may or may not be more environmentally friendly than paper.)
11. Pajamas- Between gifts and retiring old sweats and t-shirts to my pajama drawer, I have always had enough things to sleep in and putter around the house in.

Of course, there are the perennially free things like:

1. Plastic Grocery Bags, which have many uses as litter collectors, dog poo holders, lunch bags… (not all at once, of course).
2. Boxes, which you should never have to buy. (A little tip: if you need some boxes for moving, ask a small town grocery store a couple weeks before you move. My Vinalhaven grocer had stashed away over 40 free medium-sized boxes for me (the ones that liquor come in). Of course, when I was moving in, my neighbors thought I had a drinking problem but that’s another story…
3. Kindling- maybe it’s that I live in Mainebut every time I see a bunch of kindling at convenience stores for $5 certain times of the year it makes me laugh (at least I’ve seen this in both Lewiston and Freeport). Just walk in the forest in the fall (with your blaze orange, of course) and collect some tree branches. As long as you only have a fire occasionally, your hunter-gatherer instincts should lead you to enough wood for a few winter time fires. You can also burn other things to fuel your fire, but that’s another story.

So the next time you get a gift that’s a little overly practical or find something that seems kind of basic around the house, just remember, it’s one less thing you have to buy, which is always good for the budget. Now think “Yay, socks!”or “Wohoo, mechanical pencils!” because that means more money for fun stuff. And isn't that kind of magical?

Is there anything free (or purchased so infrequently that it’s almost free) that I’m overlooking?

Photo from www.magicianstore.com

A Free Budget Template And A Challenge

It occurred to me when I was putting my receipts into my monthly spreadsheet last night that I may not have said ever exactly how I figure out what I spend monthly on different items in my life.

You can go to the Microsoft web site for all the free budget planners you can think of. May I make a few suggestions:

• You may not be able to update and analyze a budget weekly or bi-weekly but you can probably commit a couple times a month to your finances, right? Plus monthly is how your bills are probably set up anyway. You might as well get a monthly template. Here’s the one I use.

• Decide on computer or pen and paper: For many things in my life, I am a paper and pencil kind of girl. Contrary to what you would think, you can do your budget this way with a template. Instead of filling it out on the computer, keep it tacked by your desk and fill it out in pencil. File them away when you are done, starting a fresh one every month. In budget instances, I prefer storing things on my computer.

• Round up or down to the nearest dollar. That movie receipt for $24.49 becomes $24 while the cleaners receipt for $7.56 becomes $8. You will thank yourself when you are looking at a sheet of nice round numbers and in the end, it all evens out anyway.

• Keep a Post it note stuck in your wallet and write down purchases for which you don’t get a receipt. Do it at the time of the purchase since there is usually a pen at the counter, otherwise you will forget. This may seem a little nuts but after a month, it will seem perfectly normal. Even the guy at my usual convenience store seems to think my writing “$1 coffee” on the paper in my wallet is perfectly normal now.

• Set aside a time (me it’s Wednesday nights and when my wallet gets full) to input your transactions into your budget. Pick a time when you aren’t likely to get interrupted. Do something you enjoy while you are doing it, like drinking coffee or listening to music. It’ll make the task seem more meditative or perhaps even pleasurable. It usually takes me 20 minutes.

So pick your template, download it off Microsoft, and then fix it up really general for you. Put your income in (net, not gross), your expected costs for different things. Then save it as “mybudgettemplate” or something generic like that. This way, all your base info is already in there. Then your template becomes “budget-feb-2008”, “budget-march-2008”, etc.

I warn you this will seem pointless the first couple of months you do it but then patterns will emerge. Perhaps you will notice, as I did, that you are spending more money then is coming in and adjust. You may realize you spend a lot of money on coffee. I guarantee you an epiphany within three months. (I had both of the example epiphanies and in general learned a lot about my spending habits.)

Are you ready to take the Three Month Budget Challenge? If so, email me with “I am ready!” the subject line. We will have weekly check-ins and otherwise be supportive of each other’s budget journeys. We’ll set up how it will work together. Think of it as a virtual budget club.

Picture from: www.learn2dostuff.com/Articles/B_BudgetMoney

Gone Daddy Gone

I haven't written in awhile because the impossible happened last week. My father died, suddenly and tragically. I got the phone call at 9:30 pm. Five minutes later, my boyfriend was driving me the five hours to my hometown.

Before leaving the house, I emailed my boss immediately (I don't have his phone number) and spent a week with my family. When I got back to work yesterday, I found that I will only get paid for twelve hours of the forty hour week I missed because that's how much leave time I had saved up.

Needless to say, there are some times in your life where you just have to get through without thinking of the money. But then you have to remember there are other times when you actually have to deal with it. Hello, reality. I'm ready to deal, and not just financially.

When You Have To Pat Yourself On The Back

What I wanted to do tonight: Order out some Chinese dumplings for dinner and buy a new glossy magazine to flip through. Total theoretical cost: $10

What I did do: Ate leftovers and downloaded a free TV show on iTunes. (This feed let’s you know what free downloads are available from iTunes. Very handy.) Total actual cost: $3

Once a month, in an effort to save funds, I like to not go to the grocery store for a week and really clean out the fridge and pantry. The results are usually bizarre and can result in small portions of random dishes. I find though that I waste less food this way as I find, for example, some corn that has migrated its way to the back of the fridge or a can of beans I forgot I had.

Yes, it’s easy and fun to go out to eat. But it’s expensive. My average meal at home costs about $3 while even my inexpensive dumplings would be double that.

So I think it’s good to do some small thing that’s a little annoying or hard. It’s not about self deprivation but about thinking ahead. Think of it as saving money for something more important like Christmas gifts, your retirement, or that trip to Budapest.

Skip the gourmet coffee and just get a small regular one, decide to walk to work and not use gas, print local grocery store coupons… whatever saves you a little money and doesn’t in the end make a big difference in the grand scheme of things.

Now how did that feel? Good. So pat yourself on the back and enjoy some of that slightly bizarre yet nourishing stirfry made from items in your fridge. Pretty soon, you'll be on that plane to Budapest...

I Heart/Hate My Budget

I moved to my current location a few months ago and accepted a job that pays $7,000 less a year then my last job. While it may sound crazy to some, I think most would agree with the statement "Money isn't everything". Because it isn't. I love my current job. When I am there, I'm happy. I like the people I work with, I find my actual work interesting, and I feel needed and appreciated. I leave it at the end of the day and never think about it after I drive out of the parking lot. But did I mention I barely make above minimum wage and have bare bones health insurance with a $5,000 deductible?

So I have decided to use the last two months to figure out my budget, which I need to stick to pretty closely. Here is what I've figured out so far:

My Monthly Budget
Rent: $350, electricity, heat, and phone/internet included (my boyfriend=my landlord, though I think any roommate would work out to a similar situation)
Retirement account: $200
Insurance (car): $100
Gas (car): $75
Groceries: $125
Dining Out: $100
Coffee: $10
Dog: $50 (did I mention I have a geriatric beagle mix?)
Gym membership: $25
Personal care (clothes/toiletries): $75
Entertaiment: $80
Gifts: $200

Total Money Earned every month: $1,420
Total Money Spent every month: $1,390

This means I have $30 net. Of course, there are areas you can see where I can cut into if I say, have to have $400 of work done on my car to pass inspection (which happened last month).

Making a budget is not so bad. I'll be honest, I thought it would stink. It doesn't. Really. I've found it really helpful to see where my money goes and when I finish the month in the black, it is a real sense of accomplishment as I have been actively working towards it all month.

Making a good budget requires writing everything down, even a coffee. (Commit to doing this for two months because after awhile, you'll get into a routine after that point and may no longer need to do it anyway!) Once a week, I go through my receipts and enter them into a spreadsheet to track my expenses.

Do I have time to write a blog and check Myspace everyday? Yes. Do I have time to make a pretty looking spreadsheet? No. But it is more motivating to put information into a good looking and well set up spreadsheet. Microsoft has some good, ready-made budget templates.

If you do end up trying this, let me know how it goes and if it works for you.