Breaking Even

Why I Live In Maine

So Kristy at Master Your Card commented on my business post about my bed and desk being really close together. Truth is, I couldn't put them any further away unless I'd be working on my porch. Girl plus dog in 220 square feet is not much, but in Bar Harbor, this is what affordable looks like.

It is reasons like this tiny apartment that I sometimes ask myself why I live here.

Let's face it, Maine has some not so good points:

- 2nd highest tax burden in the US (after Vermont)
- 46th worst business climate as ranked by Forbes
- median age is 39 and Maine has been designated as the oldest, whitest state in the nation

Maine also has some things going for it:

- is 10th in the nation in terms of public health by USA Today
- citizens living below the national poverty line are actually lower then the national average
- beautiful natural scenery and nice people (just ask anyone!)

I put out the question to my Facebook page "Why I choose to live in Maine" and got some pretty good debate going.

Jennifer and Tom debated the economics of it:

 

I took a 40 percent paycut when I moved here, doing essentially the same job, only to discover that most everything costs 40 percent more. (Tom)

 

I think it's all a matter of perspective; when my parents moved here 10 years ago, my dad actually gained a pay raise in moving from NM to ME (he's in education) and living expenses are similar. (Jennifer)

 

As a newspaper reporter, it didn't take long to realize that there's not much (any) opportunity here for "kids" just out of high school or college looking for work, especially in a state where the minimum wage is, last time I checked, $7.25 an hour. That's $300 a week, before taxes. Who can live on that ? (Tom)

 

I think if we could get our, er...leaders to be a bit more business (and tax!) friendly, we could see some real growth and prevention of the, what was it deemed? The "Maine Drain" or something like that. That is most assuredly a problem-I'll give you that. (Jennifer)

 

In the end, both agreed that making a life in this state involved some comprimises and financial hardships that were well worth it in the end.

 

Justin, however, summed up the general sentiments with his comment: We live in Maine because it's where everyone else goes on vacation, and we get to live here all the time ;)

 

At the Inn, multiple tourists have told me how lucky I am to live here. I smile but don't tell them about working two jobs to afford it. Because really, it comes down to more then just straight economics.

 

So why do I live in Maine? I guess in a photo, this is why:

 

 

This is at beach five minutes from my house. And this is my dog being silly. And this was an afternoon that didn't cost me any money. I am hard pressed to put a value on any of that but it certainly makes trying to make a life here a lot easier. 

 

What about you, despite that not-so-great points about where you live, what makes you stay? 

Financial Advice From Nonfinancial Places

I was perusing meat at the grocery store the other day when I overheard two youngish guys talking with each other (Late high school? Early college? Hard to say):

"Dude, I telling you, you buy a chicken and roast and then you can eat it for like a week. It's really cheap... I do it all the time!" (FYI: While the actual quote is slightly paraphrased due to my moderately terrible memory, he actually did say "dude"!)

Fast forward to yesterday at lunch when I'm checking out nerve.com's advice column Miss information. She usually gives, uh hum, not so financial advice. You know the advice I'm talking about: the "should I break up with my boyfriend" sprinkled with the occasional what-the-heck physical problem that could effect a romantic relationship. This week though, the leading question was financial in nature. (She even has some good tips to avoid online fraud from it. Click here to check them out.)

Even Real Simple tried to slip me some advice between its glossy pictures of well-composed food photographs and ads for cleaning products. It's kind of weird how we're all obessed with money now.

Do you find yourself hearing advice about saving money from odd places too? I'd especially love to hear stuff you've overheard!

How Poor Are You? Part II

About four years ago, I did some volunteer work at a local food pantry. My job is interviewing prospective users of the pantry which included an in-depth discussion of the budget and finances. I remember one day having to look up the federal poverty rate and having epiphany that I was below it.

That's right, I could have not only been using the food pantry I volunteered at but I could have also taken advantage of some of these programs I had been talking to people about.

I thought it would be interesting to look up some of the programs I used to know well to see who would qualify for them now. Yesterday, I tackled food and health programs and today I'm talking housing.

Circuit Breaker Program
Paying 20% or more of your income on rent? Maine's Circuit Breaker program may be able to help you out. Click here if you want to read the whole post I wrote about it or download the application. (Just a heads up: You have to apply by May 1st.) Not in Maine? Check to see if your state has something like this.

Heating Assistance
LIHEAP (Low Income Home Energy Assistnce program) is regulated by states and some programs are even decided at the local level so it's hard to give some hard figures for who qualifies. Your local town office is a good place to start and a full list of contact people by state can be found here.

Low Income Housing
There are three seperate programs from the U.S. Department of Housing and Urban Development. Basically, these programs seem to be for people who spend more then 30% of their income on housing. Of course, the HUD site is ginourmous but if you click on your state, you'll see opportunities for homeowners (money for home repairs, home buying classes, etc.) and for renters (directory of substidized apartments, help with utility bills, etc.).

What I thought was going to be purely curiosity research turned into an exercise of realizing my good fortune. I am glad that these programs exist for those who qualify, and I do hope if you're reading this and you find out you qualify for these programs that you pursue it. Because trust me, most of us have been there.*

*I've been thinking about people who work the system and I've certainly run across them in my travels. Once a woman and her mother interviewed with my friend and I seperately at the food pantry, each claiming the same children as dependents so they could get more vouchers. Right after this happened (I was furious having been lied to), a woman came in whose husband was in the hospital. She so clearly did not want to be there but didn't know what else to do. And you know what? I realized that helping that one person was worth losing a few vouchers to scammers. . .

Read How Poor Are You? Part I...

How Poor Are You? Part 1

About four years ago, I did some volunteer work at a local food pantry. My job was interviewing prospective users of the pantry which included an in-depth discussion of their budget and finances. This part of the interview process was to help families find additional resources and programs like WIC or heating oil assistance if they weren't aware of them.

I remember one day having to look up the federal poverty rate and having an epiphany that I was below it. That's right, I could have not only been using the food pantry I volunteered at but I could have also taken advantage of some of these programs I had been talking to people about. Hmph.

Fast-forward to now. I'm making double what I was living on back then at my day job (and this is not even including income I make with my business). While I am no longer a poor college student working part-time, I don't exactly feel like I'm rolling in it.

I thought it would be interesting to look up some of the programs I used to refer people to and see who would qualify for them now. Today, I'll tackle food and health programs and the following post I'll talk housing.

Food Stamps
This is a little formulaic but there are some basic requirements, like being a US citizen and having less than $2000 in assets. (Note: Your house does not count as an asset, but your car may depending on how you use it.) Here is a handy little online calculator to see if you qualify. I personally have too much in savings to qualify.

Medicaid
For single people, annual income to qualify for Medicaid is roughly $8500, total resources being $13,800. Pregnant women and children, however, you make of this 200% above the federal poverty line. There are, of course, exceptions.

Dental/Medical Clinics
Clinics seem to vary state to state compared to other programs. When I called my local dental clinic, I could not get any assistance because an income of $22,000 a year is making "way too much money" to qualify.There is, however, a great directory of health clinics that are searchable online.

WIC
WIC is a USDA program where new mothers and their children (up to five years old) qualify for not only breast-feeding support and immunization services but also can purchase "nutritious" foods such as formula, milk, and cereal. Income guidelines are 185% above the federal poverty level, which means a household of one would make around $19,200 a year.

Free or reduced price meals at schools
School lunch programs offer discounts in the way of reduced price meals (185% above the federal poverty line or $19,200) and free meals (130% above the federal poverty line or $13,500).

Stay tuned for Part Two of this series, and if you want more possibilities:
See other programs from the Department of Health and Human Services...

Shameless Promotion: The Slowly Roasting Chicken Edition

I bought myself a small organic chicken earlier this week thinking I'd roast it up and ave tons of leftovers for fun things like soup and enchiladas.

I turned on my oven at 5:45 last night immediately after getting home from work and took the chicken out of the fridge. 20-25 minutes per pound at 350 F. Works for me.

Then I looked at the weight of the chicken, which I assumed to be a couple pounds. Nope, it was 4.5 pounds. Ugh.

So the roasting began and I looked for things to do around my apartment besides cleaning. Trying to ignore the awesome smell of the roasting chicken (I covered it in butter... yum.), I started to gather up some of the cool things I've been reading. Enjoy!

The Washington Post made up a pretty graphic about the stimulus bill (from Grow Smart Maine). The military circle looks pretty small compared to the health/education circle. No matter how you feel about it, at least there is a plan for where the money is going, right?

And the girl who came to the office selling Girl Scout cookies reminded me, it seems to be the time of year for school fundraising. If you can't buy one more tub of cookie dough or tacky jewelry without screaming, check out this post from Frugal Upstate about her school fundraising philosophy. It has the potential to be quite liberating for those of you who have kids or just feel pressure to buy things from them.

Got seven hours to dedicate to your finances? Check out this fabulous series of posts at No Credit Needed.

An interesting question posed at Get Rich Slowly this week: Is it unethical to work a second job? I clicked on it because I thought it may be written from the primary employer's point of view (as in lower productivity) but it was about taking jobs away from people who could really use them. As usual with GRS, the comments are as interesting as the post.

And a reminder from Kristy at Master Your Card we can't do it all and there are some ways we don't set an example. I buy $6 juice, she eats out a lot. It happens.

As you can see lots of good reading out there in InternetLand.

Update: The chicken was finished and cool enough to deal with around 9:00 pm. My dinner last night turned into lunch today.

That's Expensive, Huh?

Why Do Cashiers Comment On My Purchases?

I'll preface my story by saying that strangers talk to me all the time. I get why: I seem friendly and wholesome, I look harmless, and I have a vaguely familiar face that makes me look like someone you may know. Am I so-and-so's old college roommate? Do I know your granddaughter? I've heard it all.

People randomly talking to me is not something new, though recently I've noticed something interesting in what strangers are saying to me.

The other day, I was buying my usual Odwalla Superfood juice which I sometimes drink for breakfast.

"Wow, that juice is expensive huh?" the cashier said.

At multiple grocery stores, I've had cashiers comment on my expensive purchases of, say, organic produce or in this case slightly overpriced spinach/fruit juice.

Now if I was a smoker, would the person cashing me out have said, "Wow, this carton is expensive huh?" Of course not. Yet for some reason, when I buy something healthy, I get comments.

I know we are in hard economic times and my $6 gallon of juice may seem frivolous but why? My food and drink are an investment in my health. Why would someone, especially a stranger, share with me that they think it's expensive? 

Has this ever happened to you? And if so, have you noticed others stating opinions your purchases more lately?

On a related note, I found a recipe to make Odwalla juice at home for a third of the price. Hmph

Three Months Later: My Finalized Budget

Part I: What I Cut

When other people write about stuff like this, to be honest my eyes glaze over. It's your budget, why do I care? I think. But I realize that occasionally as bloggers with a take on personal finance, we have to look at our budgets. It's a way of keeping ourselves honest.

I’ve famously said that you should give yourself a few months to get into your budget, not as a way to procrastinate but as a way to be realistic and fair to yourself.

Now I moved about three months ago into my new place which meant, among other things, a new budget. While I’ve worked hard to keep costs low, living on your own is inherently more expensive. So it’s been a balance for me between keeping costs low and stepping up work outside of my 8 to 5 weekday job. Part One of this (today) is about my cuts. Part Two will be about stepping up my extra curricular jobs (this will run Thursday, since tomorrow is Too Cute Tuesday and Wednesday is my Writer's Series).

New Budget (Final Draft—Three Months In The Making)

Needs (First Draft Budget: $790, Now: $735)
$500 rent (includes heat, gas for stove, and electricity)
$50 gas for car
$100 food
$55 car and renters insurance
$30 car repairs
_____
50% of my primary income

Wants (First Draft Budget: $453, Now $402)
$55 cell phone
$35 internet
$50 my dog Sadie
$100 gifts
$50 clothes/personal care
$37 Y membership
$75 entertainment
_____
29% of my primary income

21% of primary income into retirement and savings

So a few dollars saved a month. Big deal right? Well folks every little bit helps!

How I cut down on my needs:

I have a new commuting buddy. I’ve cut down on fuel costs by giving someone a ride into Ellsworth everyday. My commute is now mostly paid for with the gas money she gives me plus she regales me with interesting stories of her life. (G's a hoot!) I am still keeping a flyer up at the laundromat though because I could fit another person in my car easily (and in case commute buddy doesn’t stick around the area).

I’ve cut way down on laundry. Since when does it cost $2 to wash a load of clothes? I’ve went from two loads of laundry a week to two loads a month. I have a lot of clothes so this development just means everything in my wardrobe gets into the rotation (excluding ball gowns, of course). To get through, I sometimes do a little handwashing once a week. And once a month, I lug my clothes to a friend’s house and use their washer. So I took laundry right out of my budget!

I previously renegotiated my car insurance and got a further discount by paying for the whole year ahead. Glad I took the time to do that last month because an extra $15 is still an extra $15, right?

How I cut down on my wants:

I watch my cell phone useage like a hawk. Initially, I fell into that cell phone trap where I used too many minutes the first month and got a huge bill. Ouch, but lesson learned. Now I monitor my use on my carrier’s website and stay within my monthly minutes.

I am putting aside less money for my dog. Sadie is actually doing really well despite the fact she’ll turn 15 this year. I have some friends who are really great at helping me out with her care, meaning I don’t have to pay someone to let her out at night when I have to work late. These same friends also used to be vet techs and/or also have dogs themselves so I can talk to them about issues she’s having rather then hauling her into the vet when she has a little something wrong.

Socializing is now done at friends’ houses or at the gym. Not a lot of nights out for drinks or seeing the newest movies for me but good company and a chance to leave my little house is fine with me.

The biggest change to my situation, however, is I now have about 50% more additional income coming in. How am I managing that? That's for Thursday my friends!

Meanwhile have you been fine tuning your budget lately?

Related posts:
How To Save Money When You Can't Stock Up
New Life, New Budget (First Budget Draft)

Would You Accept Free Stuff In Exchange For Giving A Review?

I have a new client who is a local restaurant owner and while we were meeting today, he offered me a free sandwich. At first, I was going to turn him down and politely drink my coffee but sitting there for over an hour and smelling all the good smells, I broke down.

"The Italian Job" is a restaurant favorite that has got high quality salami, roasted red peppers, fresh baked bread trucked in from a Boston bakery...I know enough with the temptation, right? I said yes to a sandwich that was both free and looked fantastic.

And you know what? It was fantastic. It may be among the best sandwiches I've ever had in my life.

This got me thinking about doing something to get something free and how common this actually is. Zagats sends you a free guide for a review, bloggers get paid for posts (not me but some bloggers do it for extra income), and publishers and record companies send out free stuff to the press to review all the time.

Now I'm not getting paid to say I like this sandwich, but was getting a free sandwich going to taint my review? I'd like to think that I'm impartial, as I have said unfavorable things about some books that have been sent to me to review on this blog. Hmm...

What do you think: If you walked by a restaurant and they were offering a free sandwich for a review, would you take it? And when you did write the review, would you feel like you had to say something good about it since it was a "free"?

Why My Adult Ed Class Is Ginormous

Those of you who've read the blog for awhile know that I teach adult ed to make a little extra money. I haven't written about it in awhile because, well, there wasn't anything to write about. Enrollment for my courses was too low for them to run the classes so I had lots of free nights the last few months.

I got an email earlier this week that the French class I offered to teach months ago has way more then enough people. The first class was tonight and I had the most people I've ever had in a course. A sudden interest in intermediate level French? I'd like to think so but I somehow doubt it.

Maine community colleges have had huge increases in applications and I'm sure if I compared numbers with other adult ed programs they would also be up. Less expensive professional development in a cruddy economy? Unemployed or underemployed people with time on their hands?

No matter, I admire the adults in my program. It takes a lot to work a full day and show up to learn something which is completely out of your element.

Are there training programs you're farmiliar with seeing these increases in numbers? I'm curious if my French course is a fluke or a sign of the times...

Shameless Promotion: The Zonked Sunday Night Edition

My Saturdays have become full in the last few weeks, which is good from the standpoint that I am making more money and in general growing my little business. On the other hand, by Sunday I am completely exhausted and ready for my day of rest.

And if you're wondering why the heck bloggers like myself do lists of cool links about once a weekish, check this out. It pretty much explains the logic, and I did write it so I think it's good!

At Breaking Even

This week, I participated in the Carnival of Personal Finance hosted by CleverDude. (And if you are wondering what the heck carnivals are check out this post.)

Some Great Links

For those of you like me who need their protein, it's getting harder to find cheap sources isn't it? (Not to mention that eating a lot of meat is not good for our planet either.) Enter imitation crab meat, which you can actually do a ton with. (via Wisebread)

Hard times give people new insights. Blunt Money lets us in a little on her personal life and reminds us that in life's difficulties are opportunities. At least, I hope so...

Could you live without spending any money for a year? This guy is trying to. I'm not hardcore thrifty enough to ever try anything like this but it's always interesting to live vicariously through people who are. (from Give Me Back My Five Bucks)

On the same note, these people are eating on $1 a day. (from Portland Psst!)

And I feel let in on a big secret: how you know Sam's Club pricing is as low as it'll go. And it's not even complicated or hard to remember. (from Spending Less 101)

This woman is living one of those crazy exciting lives those with dogs and cherished kitchen gadgets can only dream of (that would be me folks). I'd like to travel more but could I ever travel this much? The adventures and costs of full time travel. (from Wisebread)

Free Stuff

Suze Orman's latest book- Oprah's queen of personal finance. I'm not a huge fan (something about her I can't quite put my finger on) but, hey, if it'll help you make better financial decisions in 2009, that's great? (from BudgetsAreSexy)

Vowed to manage your money better in the new year? Quicken is now free but so is Mint.com. (from Mrs. Micah)

Ordering your credit reports yearly is a good idea, and free. And how to do it online. (from CleverDude)

Weight loss podcasts that could keep you motivated. My fat-looking Wii will only do so much for that I suppose! (from No Credit Needed)

Captain Obvious Links
Common sense, sure, but some links to back up the statements.

Library use is going up.

United States living standards still among best in the world.

Walking like a penguin will help you walk on ice. (Check out the animation...hilarious!)

Greyhound has lowered their fares to get people to travel.

People who are in jail for embezelling will try to get rid of anything they have of worth rather then have it get taken by the government.

Happy Sunday! And if you have any good links, feel free to let me know about them. I'm always on the lookout!

Shameless Promotion: The Avoiding Wrapping Christmas Gifts Edition

I've been done my Christmas shopping for over a week but the chore of wrapping still looms over me. The good news is there is plenty of fun things online to keep me nice and distracted!

32 Things You Can Do With Beer @ Men's Health
This link accidentally happened to me but whether you get stuck with a six pack of beer you don't like or just enjoy random information, some interesting reading.

A New Way To Make Money By Taking Online Surveys @ Sense to Save and Counting My Pennies
I always pass on via this blog ways to make extra money when I hear about them and, while I haven't done this program, I trust these ladies who have. It may be worth a look to make a little extra cash.

Good Wines At A Great Price @ GRS
Whether you are looking for a hostess gift or a Christmas toast, check out these tips to picking a good wine. Or do a Nicole standby with a Polka Dot Reisling or Bully Hill red.

Tips For Traveling This Holiday Season @ Intelligent Travel
If you are looking for last minute travel deals (or just ways not to get screwed over while traveling), there are some good ideas here. Me, I have one option to get where I need to go and that's driving. .. using tips for good gas mileage of course!

(And if you are traveling to a major city this holiday season, this blog also has an in-depth look at celebrating the holidays at places like Paris and New Orleans.)

An Economics Christmas Poem @ WSJ
A little nerdy but festive and applicable to current events. It's the WSJ, what do you expect?

Seven Lessons Learned Working Retail @ Wisebread
As you become a crazed shopper, remember not to take it out on your poor cashier. In my only retail experience, I just remember people being disappointed by my wrapping job (we offered free wrapping). I wanted wanting to say out loud "well, it is free, lady!" but instead smiling politely and rewrapping.

The Best and Worst of The Credit Card Industry @ Master Your Card
If you are thinking of shopping for a new credit card, like myself, check out this comprehensive list from Consumer Reports, compiled by this fantastic blog.

Christmas Gifts For Foodies @ Cheap Healthy Good
Food is always a good gift. Here is a guide to food and food prep gifts.

Wrapping Gifts Without Wrapping Paper @ Squawkfox
Hmm... maybe I can avoid wrapping all together...

Happy Saturday night to those of you who are having tons of fun or getting way more done then I'm avoiding!

The Christmas Shop Local Challenge

It's Cheaper and Easier Then I Thought

Early this Christmas season, I decided that I was going to buy all my gifts locally for several reasons.

1) My family owns a small business. (I do too!) It would seem at least a little hypocritical to not support others in my same situation.
2) My Best Buy fiasco clearly illustrates what it can be like to do with the corporation.
3) Living in the community that is heavily dependent on summer tourism, the least I can do is help support the businesses that serve year-round residents like myself. I appreciate not have to drive half an hour to buy milk, or a cashmere sweater for that matter. (Milk happens a little more often in my world.)

I was a little worried about how shopping local this was going to go. Should I buy my brother-in-law that gadget I saw an online gift guide? Will I be able to find the perfect gift for my mother in some small specialty shops?

I realize that two things have happen for me to have success at buying local: I had to be flexible (what! no, insert-specific-item here in purple?!?) and also actually visit storessee what they had. (And as a personal finance blogger who almost never goes shopping, some of these people would never have seen me otherwise.)

I was pleasantly surprised at the selection of items, the reasonable prices, and the friendliness of salespeople who were genuinely appreciative of my business.

Here are a few moments I relished as I finished up my Christmas shopping today:

• reading through funny children's books to find the funniest on
• laughing with some fellow drug store shoppers at the now available Clapper Plus
• running into a potential friend I met last week wearing a really fun hat
• finding a really great book/gift store that has all kinds of things that I'd go back for (I know, I am not buying books at the moment but I can dream, right?)

All in all, there is no long mall drudgery or battling crowds to buy my Christmas gifts, which made spending money oddly relaxing for me. As a bonus, I actually got to know my community a little bit better and still stayed within budget.

So whether you are completely finished with your Christmas shopping or have yet to start, I urge you to consider a local purchase as your next purchase.

Some good reasons (economic or otherwise) to buy local...
Something to inspire you to shop at a local bookstore...

The Mainebiz Book of Lists: Maine By Money

when my father was alive he used to love getting the annual Mainebiz Book of Lists, which usually comes out around this time of the year.

What this magazine does it rounds up a lot of Maine's financial figures and puts them in list form. Here's some interesting stuff:

Largest nonprofit organization: Bowdoin college at $895,629,000

Highest-paid nonprofit professional: Director of the Jackson lab $452,390

Highest-paid public company executive: Pres. of TD Banknorth $2,050,410

Highest-paid healthcare professional: Pres. of Maine Medical Center (Portland) $1,151,520

Largest employer: L.L. Bean (8000 to 9500 employees—I'm guessing there's some seasonal employees)

Largest farm subsidy: farm in Clinton $89,220

Largest Maine-based brewer: Shipyard Brewing Company, producing 69,700 barrels of beer

Largest hotel: Bar Harbor Regency Hotel with 278 rooms

There's obviously tons more information in this magazine. It's interesting to see not just who is on top but the other people and businesses that make the list. (Like the fact that a few professors at my old college made the list). The other thing to keep in mind is that these numbers are a couple of years behind. It'll be interesting to read this Book of Lists a few years from now to see how the economy really affected Maine.

It's easy to see that the nonprofit economy is central to the state of Maine (though sometimes I have a hard time seeing how multimillion dollar organization can be seen as a nonprofit but that's just me). As someone from Aroostook County, it's also interesting to see the information on farm subsidies. I just see how the center of commerce and industry is in southern Maine only and I wonder if it really has to be like that.

Even considering the southern part of the state, Maine doesn't have a lot of large businesses but in this economy, maybe it pays to be small and diversified.

If you want to get your own copy, the magazine costs about $20 but there's also lots of information on the Mainebiz website if you're interested in reading further. I'm actually wondering if other states have this kind of information available... I hope so because if your numbers person, this is a fun afternoon read!

Mainebiz's Lists on their website...(you can also buy the whole book at this link)

Three Reasons Not to "Bail Out" The Auto Industry

The more I hear about this automaker bailout stuff, the more ridiculous it seems. A quick look at where some of the money these companies make has went previously:
 
1. Ford CEO Gets $18.5M upfront, $2M salary and an immediate payout of $18.5 million for taking the job in September 2006.(Ford lost $1.4 billion in the first half of 2006.)
 
2. GM lifts CEO salary to $2.2 M, translating to a 33% raise (The stock has dropped 10 percent since the start of the year and about 64 percent since Wagoner became CEO in June 2000. GM reported a record loss of $39 billion for 2007, its third consecutive net loss.)
 
3. Chrysler's new CEO declines to detail salary package (Chrysler lost $680 M last year.)
 
If a typical worker makes $30,000 per year, one Ford CEO equals 68 regular workers. One GM CEO equals 75 regular workers. 
 
Why can't we ever fix the problem before throwing money at it? Even people who know something about money are agreeing with me here. Even some of the auto workers themselves aren't for bailing out these guys.
 
It must have been a sad private jet ride home for those CEOs when they were not granted bailout money by Capital Hill but as my coworker said, "I wish I could make $2 million for being a complete failure."

(Thanks to Mike for some of these links!)

A Container Shortage That Effects Us All

I heard a really interesting story on NPR on Friday night (I know, you were probably doing something more interesting, right?). There was a great story about how a shortage of containers is effecting the flow of everything in the economy. We're buying less which means less containers (as in containers on container ships) are coming into American ports. And the less containers coming in means the less containers coming out.

This is a really excellent piece of journalism with good facts and storytelling. It's probably the best I've heard since This American Life tackled the housing crisis a few months ago. Oh, and the whole thing is only six minutes and forty one seconds long and made me sound smart in a meeting today.

Listen to "A Strange Shortage Illustrates the Global Economy" here...

Moving Update: On my end, I'm actually dealing with an abundance of containers as I unpack. I'll post pictures soon but it's still looking too messy for me to show the world.

The California Women's Conference: It's On Video

Welcome to my week-long women's series. It's no secret that one issue that I'm passionate about is female empowerment. I used to answer a domestic violence hotline, coach cheerleading, lead a girls technology club in my local middle school, and met with a monthly girls book club. I'm currently on the board of our county's domestic violence program and doing some writing for the Maine Women's Fund. My point is it's certainly been a common thread in my life no matter where I am or what I'm doing.

So this week, it's about the ladies, and of course money (as usual). Enjoy!

Last week, 14,000 women gathered for California's Women's Conference which was organized by Maria Shriver, first woman of California.

There were some great speakers on hand discussing their views on women's issues (which are really everyone issues but you understand what I'm saying) as well as the role of women in the future of America and the world. It was a pretty inspiring lineup which included Bono (keynote), Warrent Buffet (talking the economy as well as putting a sexistly pandering Chris Matthews politely in his place), Jennifer Lopez (talking with young girls about body image), Oprah (duh) and lots of other gifted speakers and accomplished women.

While it certainly would have been cool to be there, the great news is they have a great online presence.

Click here to get streaming video of the different speaker sessions (and not just two minute clips from Youtube here, actual hours of video).

You can also get more involved by keeping up with their blog and discussion board at the California Women's Conference's official website.

I'm thinking of this time listening as a combination motivational pep talk and professional development session. Hope you do too!

Here's Me Finally Aknowledging The Bailout (uh, I mean Rescue Bill)

So my stats have been up this week I think in part because I'm talking about other things besides the bailout bill. I wanted to see how the whole thing played out before reacting. So the bill passed and it's been signed. I guess all we can do now is watch our own finances and cross our fingers that things will work out. Maybe pray.

I love how this went from a "bailout" to a "rescue bill" in two days. Ok, enough of my cynicism.

While I didn't talk bailout, lots of other bloggers and websites had the subject completely covered, if you'd like to read more about it:

First Draft of the Bailout analyzed by Gen X Finance
The ING Savers Pledge at Happy Rock
Fresh Air economy explanation link via Wisebread
A Great Depression Comparison to today via The Wall Street Journal
What Is Money? explained by Get Rich Slowly

Of course if that isn't enough, just check out your favorite news website or do a quick search in your favorite search engine. Talk about information overload!

And just because I haven't said anything doesn't mean I wasn't getting my little ducks in a row. I called my broker and we did a little moving around putting some extra into the market while prices were low. My small town bank where most of my money is remains unaffected. My ING account also remains unaffected. Having well under $100,000 in savings, I am FDIC insured. I guess won't be stashing cash under my mattress for the moment.

If you aren't sure if your money is safe, there is a way to check (besides calling your financial institutions). www.myfdicinsurance.gov has a few simple questions you can answer to see if your accounts/investments are safe.

Happy Friday, and since everything is supposedly going to go well now, why don't you take a little cash from under your floorboards and go get yourself a nice bar of chocolate. Mmmm, endorphins. They're going to save us all!

Spending By Percentages: The Average American

 So I have this list of links that I maintain and use as a go-to whenever I want to highlight a resource or even if I have a little writer's block (which happens on occasion when one has a daily blog). I realize tonight I've been saving a few of these links since May.

Yup, apparently I wasn't very blocked writingwise this summer, but also I thought that now more then ever, we're all doing number crunching of our own budgets.

The New York Times had a great chart it created back in May showing the spending habits of the average consumer:

"Each month, the Bureau of Labor Statistics gathers 84,000 prices in about 200 categories — like gasoline, bananas, dresses and garbage collection — to form the Consumer Price Index, one measure of inflation... The categories are weighted according to an estimate of what the average American spends..." Check out the original graph here. It's really fun and interactive.

I put the percentages of the largest items in. Interesting huh?

The other aspect of the graph besides being voyeristic about people's budgets is how it examines inflation.The darker pinks and reds are things we're spending 20-40% more on then we did in 2008. Gasoline, fuel oil, and propane are all expected though eggs was kind of interesting to see. And we're spending 10% less on computers, televisions, and video equiptment (dark blue).

So are you average? I'm not quite but more on that in Part II: Your Spending Versus The Average American. But in the meantime, head to the New York Times and enjoy the graph!

Read the Get Rich Slowly analysis of the same graphic...

Shameless Promotion: The Super-Secret Edition

So in the last few weeks, we've found out that Julia Child was a spy, the KFC secret chicken recipe had to be transported by guards, Bank of America bought Merril Lynch in the middle of the night, and the Fed wants one guy to control $700 billion to keep us out of a recession. What's with all the secrets lately?

Well, I'm tired of the secrets. I want to use this link roundup to do a little demystifying of my own. Enjoy these great articles; I sure did!

Car Dealerships Demystified at Get Rich Slowly
If you're thinking of getting another car or selling your own car, get inside the brain of a car dealer. Knowledge is power!

Your Credit Score Demystified Via BudgetsAreSexy and Wisebread
Even in my earliest blogging days, I knew how to get free credit reports. But a free score? Cool!

Thrift Store Fashion Demystified at DC Goodwill Blog
Thrift store shopping is a great way to save a few bucks. (I'm pretty well dressed and I'm sure if I told people over 50% of my closet is thrift store clothes, they'd be shocked.) DC Goodwill Blog is among the best fashion blogs I've seen because it talks about real things you could (or may already) actually own. If you want to hone your skills picking out good pieces at the discount stores, skim this blog for awhile.

Buying Stocks Demystified at Blunt Money
A mere few months ago, people thought you were kind of an idiot if you didn't own any stocks. Blunt Money reminds us to proceed with caution on these sorts of things and with the last couple weeks, I'd say thinking before buying is definitely smart.

Identity Theft Demystified from ThinkLikeASpy.com
I first heard from this guy on a podcast. Ok, so obituaries with your family's names in them could be used against you but come on. But while John Sileo is a little paranoid, he is right. There is lots of free stuff (at the very least advice and resources) on his site about how to reduce your risk of identity theft.

Adulthood Demystified at CheapHealthyGood
A few weeks ago, a theoretical course on adult hood geared for high school students was posted at Cheap Healthy Good. Check out parts one and two of the curriculum. Cool, huh? I'm going to read up on my weak points for sure.

So maybe there are some things that aren't so secret...Good thing, because while I am pretty good at keeping secrets, I certainly don't like to.

How To Buy Something You Know Nothing About

I mentioned earlier this week that my digital camera finally bit the dust. It was six years old. I think I got great use out of it so I'm not at all bitter. I paid to it repaired a few years ago (around $100) mostly because I didn't want the hassle of replacing it. Now I see a new digital camera that I want costs $150. It seems like a no brainer: it's time to buy a digital camera.

Now I know nothing about digital cameras. I know more mega pixels is better and there is some definite brand loyalty out there but that's it. It can be a very frustrating exercise to buy something you know nothing about but there are a few ways to make the process a little easier. You don't want to walk into a store (or go onto that website) cold. They can smell a sucker coming a mile away but that sucker will so not be you if you follow these ideas:

1) Ask your friends, family, coworkers...well, ask everyone what they think. I asked around the office and found out what a couple different specs mean as well as what kinds of cameras other people had.

2) Search online for comparison websites. The more comparison websites you look at, the better idea you'll get. I've been very specific in digital camera searches (especially in terms of price) then I write the top five from every site. A pattern began to emerge.

3) Pay attention to things you hated in the past and learn from them. An old digital camera I had ate batteries and while my last camera had a rechargable lithium battery, it took crappy indoor shots. Bonus points if you find out why it didn't work well (online forums are good for that). Learn from the past; this is when it pays to hold onto a grudge!

4) If you have no clue (and don't know anyone else who has one), pay $5.95 for the Consumer Reports website trial membership. (Don't forget to cancel it immediately upon getting the info you need; it autorenews monthly.) There is a reason Consumer Reports is such a trusted source.

5) Recruit a buddy to go with for the transaction. A smooth talking salesman will have much more trouble selling you something you don't need if you have your brutally honest buddy telling you like it is.

So I've got my information ready to go and tomorrow I'm going to walk into that store, buy my camera, and not be a sucker. If you have any tips about buying things while clueless or cameras specifically, do jump in! 

Cheaper By The Gallon

With a long weekend approaching and the price of gas being the way it is, a road trip seems a little ominous. In this state alone, traffic has been down this summer about 6% with an expected 750,000 cars on the road this weekend. (from Maine Business)

I'm sure a lot of us will spend the weekend in a car so I thought we could use a little gas price cheering up. Here is how much a gallon costs in terms of some of life's other important liquids:

Budweiser: $8.88
Hershey's syrup: $13.23
Coffee: $17.44
Smirnoff vodka: $18
Head and Shoulders shampoo: $37.74
Salsa: $40
Robitussin DM: $109.76
Sunscreen: $160
Chanel #5: $15,200

Anything interesting you want to add to the list? Comment below, and feel better that we don't fill our cars with some of this other stuff.

Prices from cockeyed, chicagoist, coldchilli, and me.

Times They Aren't A-Changin'

In A Doom-And-Gloom Economy, There's Only One Thing To Do: Learn As Much As Possible 

Reading economics articles make me feel smart. I've included some links to some if you want feel smart too! Since schools all over the country are winding down, I thought I'd divide my findings by theoretical school subject.

Sociology

Could you live with just 100 things? It's an interesting idea, and the article makes me think of my about 100 kitchen utensils and appliances in a whole new way. Anyone want a blender?

When faced with a range of choices, most shoot for the middle. This principle from the book "Predictably Irrational" is explained with graphics by Can I Get Rich On A Salary.

There is an active moment to get Americans thinking that it's cool to save. Um, just check out the personal finance blogs and websites, Confronting the Debt Culture Conference. We've been talking about how cool it is for months, some people out there years. See this New York Times article for analysis. 

And according to the New York Times, rich people are having a hard time not getting to go on fancy vacations or wearing expensive clothes. Cry me a river.

Statistics

Can I Get Rich On A Salary had a great analysis called "What Are Your Chances of Moving Up, Really?" examining the ability to attain the American Dream of doing better than our parents. The short form: It's not where you start but how you save that determines you moving up, that and a good education doesn't hurt. The long form though includes some great charts and additional resources.

But even in a down economy, people still have their priorities: big perky boobs. (via SmartMoney)

Environmental Science

And no need to worry about clubbing baby seals in the Arctic for our oil: The Center For Economic and Policy Research outlines three ways to save consumers money and decrease our country's energy emissions. Now what are they going to do with these ideas? (via Wall Street Journal)

Home Economics/Life Skills (the more PC term)

You too can write a polite Dear John letter to the person you want to buy a home from (or vice versa). Proves the old proverb, you'll never know until you ask. (via NYT)

And you may feel like you pay a lot for rent but a little research may prove otherwise. The Baglady plugged her numbers and found she is getting a good deal. Are you?

What did you learn in school today?

1. Can I Get Rich On A Salary is a great blog you should read often. http://www.canigetrichonasalary.com/

2. The New York Times backs up the obvious, but sometimes surprises with the occasional new nugget.

3. Nicole aggregates articles like no other. (Or at least tries to).

Check out other timely personal finance articles at this week's Carnival of Personal Finance.

Image: Gee, according to Google, people care more and more about saving money all the time. Hmmm....

How I Get Motivated To Save: Reverse Psychology

Do I Really Need More Stuff? I Guess I Just Don't Care

There is a story in our family of my first Christmas, or one of them anyway. I open a gift and begin playing... with the box. After waiting awhile for me to get tired of it (apparently I wasn't), my parents show me the toy in the box so I begin playing with that. They have to practically force me to open my other gifts, which they think is pretty funny. Little Nicole would have been just as happy with the box.

I've been thinking hard of a post to submit to the Summer Savings Contest at Bible Money Matters. One of the categories is motivation to save money. So I've been giving this a lot of thought.

At the same time I'm mulling this over, I think of all the advertising I'm exposed to about Father's Day. The need to make Father's Day special. The need to find Dad that perfect gift.

You may or may not know that my dad died in November at the age of 51. This is my first Father's Day without him. "Well, at least I don't need to get him a gift." I thought, attempting to look on the bright side of a not very bright situation. But wait a minute, I don't usually buy him a gift. . .

When my dad was alive, the thought of buying him one more knick knack did not seem right. Besides going to his camp, golfing, and hanging out at home with my mother, my father had no hobbies. He didn't read. He didn't collect things. He wore the same pair of jean shorts all summer until they wore out. My gift on Father's Day or most any other occasion was often just showing up, sometimes even with a card. He never gave me any indication that this was anything but fine. He was always grateful that I could drive from wherever I was living and just hang out for the weekend.

So I play with boxes; I don't buy my father a Father's Day present; and I move all the time. What a bizarre person, you're probably thinking. There must be a point for my little stories.

Here's my point. My motivation for saving is simple. I ask myself what I'd use the money on. More stuff I'd have to pack in a box a year from now and move a few hundred miles then unpack again? A gift my father wouldn't even use or remember? If I didn't buy stuff, I guess I'd just have money which sits in a bank somewhere. I wouldn't be buying more things to strain the environment, exploit workers, or take up space in my life or others' lives. Saving becomes pretty easy when you look at it like that.

So my motivation is a lack of motivation to buy and need more and more and more. Is that yours as well?

See a great video "The Story Of Stuff" (as blogged by Get Rich Slowly and other bloggers)...

Book Review: Nickeled And Dimed

"That's the kind of book that old people read." -12 year old girl I know

I finished Nickeled and Dimed: On (Not) Getting By In America in a record time of five days. It was less then 250 pages and a remarkably quick read for the subject it was about: "case studies" of poverty in America.

When one of the middle school girls I work with saw my book, she immediately could not believe I was reading it. Maybe I seem too young and hip (my words, not hers) to be reading something that seems so boring. But to be honest, it was quite interesting. Heck, they even made this book into a play.

The premise is Barbara who spends a year trying to live on minimum wage jobs (or close to) in different parts of the US. I bought the book even before I knew part of it took place in Portland, Maine (she becomes a maid with an agency similar to Merry Maids). Her detailed accounts reminded me of people I know and made me look about the people who wash my dishes, serve my food, and cash me out at the grocery store in a different way.

The evaluation stopped me dead in my tracks. A study shows that the minimum wage to pay for a basic standard of living with a home, a reliable used car, childcare at a liscenced day care, etc. should be $14 an hour. And she was using numbers from 1998-2000. Those making $10 an hour or under are part of the "working poor". My salary translates to about $10 an hour, and it's 2008.

Now until this moment, I didn't think of myself as poor. I have three college degrees and work experience that would put me in the "professional" category. This book made me a little sad and a little inspired at the same time. And more importantly (and beyond looking at my own situation), it made me see the world in a different way then I was seeing it: as a bunch of hardworking people who will one day get to the point where they can't take it anymore and do something about it.

Just a reminder that I'm giving this book away as a prize to the winner of the June Blood Drive. So check out that page for details to enter (it's easy!).

Image from http://www.hoardedordinaries.wordpress.com.

June Blood Drive

You may remember a few months ago that I gave blood at the Red Cross and thought the whole thing was a pretty good use of my time. This month alone, I've gotten two phone calls and one postcard from the Red Cross asking for another donation.

I remember my Dad getting a lot of phone calls for blood donations because he was AB negative, which is fairly rare. But I do know the Red Cross needs blood of all types all the time. In light of recent events and due to the drop in blood donations during the critical summer months, I thought I'd launch a challenge with this blog: The June Blood Drive.

The goal is 50 pints of blood for the Red Cross by the end of June. Can you give a pint? 

To let me know you've donated, comment on the blog or email nicole @breakingeveninc.com and let me know that you have. If you want to take a picture of your "I Donated Blood" sticker or you showing Oreos in your mouth moments afterward to prove your story, go for it. I could always use cool blog art! I trust in your honesty because what sick person would lie about a blood donation?

The prize is a book I picked up in Boston, pre-windshield incident. "Nickeled and Dimed: On (Not) Getting By In America". It's a fascinating read (I'm half way through in two days) and interesting from both a personal finance and anthropological perspective.

Ready, set, give! Contest ends June 30.

Nicole's State Of The Economy Address

I'll be the first to admit that I have little to no-pull in terms of making people think one thing or the other about the economy. I do, however, come to a point where I have collected some cool links that just need to be shared.

I'll cover the economy in seperate sectors of the agreed-upon needs of all people: Food, Water, Clothing, Shelter, and Love (and I'll throw in Government just for fun!).

Food

Food price inflation may not be as bad as we thought (check out inflation explained at Debt-Free Revolution). I also read a completely hilarious blog about media mass hysteria about food prices meanwhile the average barbeque meal only cost $1.65 more than last year... if you know who wrote this post let me know, because I lost the link! Even the Wall Street Journal has reported rice futures going down.

Water

My friend Sarah sent me this fabulous SIGG water bottle for my birthday. It is amazing. It keeps my water cold and crisp and does not leave a plastic aftertaste in my mouth...and, of course, it's refillable. I don't normally endorse products but here's the store if you want to buy one.

Clothing

Apparently, the New York Times is having a hard time believing that Sarah Jessica Parker's newish Bitten line of clothes is so wonderful. They seem to think that attraction towards inexpensive clothes is a phenomenon in these economic times. Those of us who love women's magazines though have seen a "Bitten" example in every issue for at least the past year. Ok slight exaggeration but SJP (and women wanting cute cheap clothes) is here to stay.

Feeling left out menfolk? Please don't: LL Cool J has got your back! (from USAToday.com)

Shelter

If you want to understand how this whole housing debaucle happened, listen to this hour-long program from This American Life. Great storytelling, which you can expect from TAL but makes this whole thing way more understandable.

And if you're a renter, feel free to get angry. Read this fabulous post by Baglady to see why this housing crisis will effect us all whether we rent or not.

Love

Ah, poor Anne Heche. She may love her kids but can't afford to pay child support. OK, if she can't afford it, I think that pretty much lets everyone else off the hook, too. (I have no sympathy for celebrities who make more money in one day then I have in five years then waste their money. Where I'm from we call that gaspilleuse!)(from People.com)

But in the good news bin about love, people apparently love and appreciate small businesses enough to actually pay in a pay-as-you-wish situation. (from Freakonomics blog)

And according to a recent Gallup poll,almost 50% of us are happy and thriving. How happy? People are working on an index for that! (from Freakonomics blog)

Government

Haven't spent your new government stimulus check on a new Wii or a crazy night in Vegas? Good for you! Here are some more productive things to do with it. (from Mighty Bargain Hunter)

And guess what? The government is doing something about credit card companies (from Debt-Free Revolution).

Need even more government fun? Now you can actually prove if you could do a better job then your Congress people. Balance the federal budget...it's a new game called Budget Hero. (Freakonomics blog)

To summarize: things may or may not be as awful as we thought, but we certianly can't control everything. Might as well smile and wave...

Image from www.shorpy.com.

 

Getting Up In My Business

SMBIZ4ME Governor's Regional Business Conference Was Interesting, Worth A Day Off

I took the day off work Wednesday to attend the SMBIZ4ME Conference for a few reasons: 1) It was only a half hour's drive away. 2) I heard it was going to be good from a few people. and 3) It only cost $25 and one day off to attend. As someone who has already heavily invested in my brain but knows little about business, I figured the price and the opportunity to network with people in the area would be invaluable. It was.

The vendors set up over breakfast and gave me something to do when I first walked in and was getting my bearings. (I can be social; I just sometimes need to ease into it). I made a few good connections with some Maine publications that were at least theoretically interested in my writing as well as met the guy behind Mainecreates.com. Mainecreates is a social networking site for Mainers involved in the creative economy. (I got on the site to set up a profile when I got home but I see I will be charged for it after a year, which I'm not really down with. But it is a good idea so I set up my own account there.)

In my first seminar, I met Melanie Brooks, who just got hired at MaineBusiness.com. It's a division of MaineToday (another newspaper) but it's focused on business content. She's a blogger, I'm a blogger. She suggested I crosspost on their site. So I'm trying that out to see if that'll be a good use of energy. (Really I want to end up as one of their featured bloggers, I'm competitive like that.) Melanie was fun, energetic, and into blogging; she seems like the kind of person I'd hang out with if I lived closer to Portland, though though the blogosphere can at least be a virtual friend.

All this happened in the first two hours. Did I mention there was all the free coffee I could drink and croissants I could eat? (Out of restraint, I had one croissant, ladies and gentlemen, with an apple chaser).

Meeting a lot of people who are all either thinking about or running their own businesses and having to give my "elevator speech" about my blogging consulting/web content creation business allowed me to not only realize that I actually did have a good, original idea but that I do really believe that I can do it.

As with any event of this nature, there is some golf clapping, boring speech listening, corporate sponsors to thank profusely, and a couple snotty people but that was all minor. (One PR woman in my last seminar seemed ridiculously jealous of me and conducted herself in such a way that I wondered, is she actually a PR person?)

Overall though, I met some wonderful people and got some great ideas. I left feeling energized, even though being nice and civil to people you barely know all day can be fairly exhausting.

Have you had a rockin' professional development day recently?

Best Advice You Ever Got?

A Little Philosophy About Money And Life

CNN Money recently had a slideshow of financially successful people all answering the same question "What was the best advice you ever got?" The answers are what you'd expect: kind of general, a little profound, and applicable to money and life in general. Here are a few favorites:

Focus on things you do different than others. (Peter G. Peterson)
Get out of your comfort zone (David Petraeus)
Always be the person who signs your checks (Tina Fey)

To be honest, a lot of other people I didn't know. A lot of older white guys who run large companies (at least I'm assuming, a lot of the companies were not recognizable to me). I would have liked to see a broader spectrum of different types of successful people.

Most of the advice that was stated came from fathers or bosses. I wish I could remember advice my father gave me. He was pretty tight lipped on finances in general. (According to the New York Times, it's a movement among young people to not keep their finances to themselves but with the popularity of personal finance blogs, I'm highly doubting it's just younger people.) I had long wanted to pick my dad's brain for financial advice in particular because he ran a successful business and was loved by his family and community at the same time. How did he build his money early on? What were the best things he did for the business and for his life? But sometimes you can't wait too long to ask... As far as bosses, I do remember an old boss who taught me how to "manage up", meaning to manage yourself when your direct supervisor can't or won't give you feedback.

The slideshow is a little superficial but does the job of getting your mind going on what you've gotten for financial advice (both good and bad).

What I always keep in mind, in finances and in life: 1) Everyone is doing the best they can. and 2) If it will make a good story, you should try it.

(And from the Freakonomics blog, some computer-related proverbs for these technological times.)

Have you gotten any really good advice? Maybe CNN Money forgot to ask you but I certainly won't.

Will A Recession Make Us Fatter Or Skinnier?

So the economy is in stagflation mode, not recession mode as of yesterday (Debt Free Revolution). Food prices are soaring and are expected to be inflated for at least two more years (CNN Money). What I want to know is does recession make people fatter or skinner?

You'd think that having less money available would mean less food available, which would make America as a whole skinner. (Interestingly enough, car's are actually lightening up these days. Ford introduced it's car that lost sixty pounds to gain some gas mileage (CNN Money). Maybe if we lost weight on our bodies that sit in our cars, we'd also get better gas mileage?)

In short, recession should slim us all down. There is, however, much more evidence that a recession/stagflation will make us all a little porkier. The Simple Dollar delves into how recession triggers poor food (and other) buying decisions while Sense to Save has reviewed a cookbook born out of a phenomenon: The 99 Cent Only Store Cookbook.

Also in a nation of comfort food, where people are depressed about the economy and watching more television (the most accessible "free" entertainment), it seems we are headed towards getting fatter.

What can we do? In short, shop smart and cook more. If you are totally not excited about cooking or don't know where to start, this is a great post for you. And if you want to know how and why this food crisis is happening (and what you can do), check out this great post at Cheap Healthy Good.

In short, the recession will only make you fatter if you let it. Start cooking and thinking ahead about food purchases and you should stay your healthy self.

Other posts at Breaking Even, Inc. that may be of interest:
A Look At Extreme Grocery Shopping
The Grocery Game Review
A Week In Food (good healthy meals for less than $10 per dish)

Free Business Workshop Series

I don't have a self improvement category on this blog because I think (or at least hope!) the vien of self improvement runs throughout. I think if you are reading this, you either appreciate my quest towards self improvement or you constantly work towards self improvement yourself.

My friend Jessica told me about a series of seminars being given at our local community college called The Basics Of Starting A Business. This morning is the last morning but the three week course has forced me to learn more about the business behind writing.

Now I may have three bachelors degrees but I have never taken a business course. (Though, don't get me wrong, a geology major and being able to speak French together have been pretty fun at parties, and have collectively gotten me where I am.)  I have not been implicated in my family's hardware business. In short, no knowledge and not much experience in business.

I have, however, always enjoyed jobs where I could set my own goals and schedule. In those environments, I have worked hard and really thrived. Also I've always wanted to write and be paid for it. Launching a part-time freelance business seems like a logical thing for me to be doing. I figured a free seminar may help keep me on track and working towards really doing this.

The class is being given by Women, Work, and Community, though even if this organization isn't in your area, you should try local community colleges and business women's organizations for possible resources like this. The series of three seminars and three hours at a time and have forced me to do things like finally buy a shorter domain name (Read more about the changeover to Breaking Even, Inc. here.) and figure out how much I should charge people for my work (if you're a freelance writer, here's a good collection of links I happened upon about how much to charge).

Essentially, the course is forcing me to write a business plan. It is also forcing me to meet other people in the area starting their own businesses that I would have not otherwise met. I know I could go online and find a web page on it but having to have homework done is making me finally put things on paper.

I hope you take advantage of free education opportunities where you live. (Not that I'm biased or anything but a good place to start is your local paper's community calendar.) Many free cultural and learning opportunities probably exist that you never even knew about. Keep learning always; your mind (and perhaps eventually your wallet) will thank you.

Three Things To Make You Mad

Ignore Them Or Learn About Them: One Way Or Another, They Aren't Going Away

So there were multiple things going on in the news this week that would make even an even keeled optimist like myself fume just a little. You have the option of ignoring these things but personally, I'd rather know. Here are the three issues of the week that really got my goat:

Bear Stearns: Their Ridiculously Spending And Decisions That Got Them In Trouble
The Satellite Sisters (who have a great talk radio program whose podcast I listen to often) broke down the Bear Stearn's money wasting ways (pre-stock crash). Julie put it the best I've heard it yet on their March 28 show. Below is an excerpt.

Bear Stearns: The Fact The Fed Bailed Them Out With Our Money
Here's some great audio from Marketplace about us paying for the bailout of a huge coorporation who would never do us the favor in return. (There is also text to the story if you don't have the means to listen.)

And Straight To The Dark Ages, Women Still Make Less Than Men
In Maine (and probably other places), things are still a little sexist, though slightly more sexist if you don't have a college degree. See the article here. Sadly, this got little more than a mention on news programs and in newspapers.

So I don't know what effect hearing about these three things in a row will have on you but you are probably pretty fired up! I hope you can harness just a fraction of that energy to do something positive for the world (or even for yourself). Because there is plenty of good out there but apparently, we may need to provide it!

Money In The News

For your midweek news roundup...

Gold is through the roof...

You'll be getting that rebate check by May 16...

Some people are hoarding...I mean investing in copper...

75% of Americans think we're in a recession, but it won't be official for awhile...

Restaurant eating is down 0.3% and chefs are making higher profit meals (pasta dishes, cheaper meats) to compensate...

Grocery stores are noticing people buying less beef and more store-brand products...

Interest rates were cut but everyone seems to think this is just a drop in the bucket...

Oh Dollar, Why Don't Thou Go Up?

A Falling Dollar Gives Us All Something To Panic About

According to the financial buzz online, no one is sugar-coating the whole dollar tanking issue anymore.

Dollar's Fall Is Scary but Not a Reason to Panic, Kiplinger's tells us the dollar will plummet but eventually rebound. National Intelligence Director Michael McConnell has said the falling dollar is a weakness potentially expolitable by U.S. rivals, especially those with energy reserves we want and need. CNN released an article yesterday about the dollar value reaching a 12-year low vs. yen and how it's at an all-time low versus the Euro (which to be fair has only been around for a few years). Plenty of people are talking about this, but our government officials are noticeably silent. It's like people are only supposed to think we are in a recession/crisis if Ben Bernacki says so. But why would he?

Anyway, I've been watching all these doom and gloom dollar headlines all over the web the last few days and had to round some of them up for you all. Experts are all predicting how low the dollar (and how high the oil prices) will get and when things will turn around.

To me, this sounds a lot like predicting the outcome of a sports game, or deciding who will win an Oscar. There are clearly some of us with more information than others but all opinions are still on the table. Pre-Superbowl, I watched three out of four pros in really nice suits pick the Patriots as the winners. I picked the Colts and was within two points of the final score at the end of the game. I saw no football the whole season (and know nothing about the sport in general) and somehow, I made a better call than "the experts". Of course experts can't always be right. That's why we watch the Oscars even if insert-movie-here is the predicted winner. We can speculate just like the experts because no one really knows for sure.

In the end, the market goes up, the market goes down. It's cyclic in a way no one can know for sure. So in part because I'm an optimist and in part because I have my own ideas, I think I'm just going to sit back and watch how this all plays out...Heck, I may even make some popcorn, because at the very least, it should be an interesting show.  

Is It Getting Hot In Here Or Are We Playing The Stock Market?

I'm In A Couple That Knows The Meaning Of Romance

Some young couples buy their first piece of furniture together, or buy land to build a house. Sean and I have gone an even more romantic route and bought stock together as our first jointly owned item.

I've long wanted to enter the stock market game. But buying stock in some small unknown company or just a company I couldn't get excited about never seemed interesting to me. Yet that was precisely what I could afford.

I've talked about wanting to "own Google" frequently enough. At work, we use a lot of their software and I like that they are a company who treats their workers well. (I also think they are going to figure out television on the internet before anyone else but that’s just my hunch.)

When I inquired at dinner one night whether one could buy half a share of stock (GOOG was approaching $600 at that point), Sean offered to go in on it with me. We submitted money to eTrade and waited while it cleared. (Unlike their Superbowl commercials that promised instant stock purchasing, there is a nine business day waiting period on new funds.)

Meanwhile, Sean became interested in a company called Luminex that he likes and uses a lot at work.

As of two days ago, we are proud owners of 1 share of Google and 4 shares of Luminex (Sean has less expensive taste in stock than I do). We have a romantic dinner wager on which stock will do better, which we will evaluate six months from now.

And while I’ve always felt cheated that I couldn’t play the stock market game in high school economics class, I get to play it now.

Of course Google tanked and Luminex slightly tanked yesterday. I’ve decided for personal sanity reasons to take the little stock graphs that update every 15 minutes off my Google homepage. While I’d love to think I’m going to get rich off GOOG, I think this will just be a fun way to hopefully grow my money in the long run and allow me to learn more about markets firsthand.

I’d love to know how you’ve played the stock market game and how much you enjoyed or didn’t enjoy it.

Image from: http://btr.michaelkwan.com/2007/10/09/google-stock-breaks-600-will-anything-stunt-its-growth/

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.

An Introduction

Money is boring.

I think many people think it is. It seems elusive to some and in too much abundance to others. But money effects us all in profound ways. It affects the way we see the world, who we interact with and how we interact with them, what we do and don't do with our time. Whether we want to think it or not, economics drive our lives, determine our opportunities , decide our material comfort level and if our basic needs are met.

I am a young person. I don't make a lot of money. Actually, I make a little less than $10 an hour. I'm trying to pay my living expenses, plan for my future, and have fun. I think many other people are in this same position, too. Sometimes I look around and wonder how a lot of us are even making it. But we are.

I don't think this is a problem unique to young people. No matter how much money we make, I think we all know what it feels like to deal with what we feel is a shortfall.

I am not an economist but I like to read, write, research, and talk to people. I find economics facinating yet practical. I think it is important for everyone to know about money and how to make it work for them. Knowing more is empowering and can save a lot of time and effort. Also, I don't think there is much information out there for people like me. So I've decided to create it. I hope you find it useful and interesting. Your communication is welcome and your readership appreciated.

Now let's bring home some bacon...