Inflows/Outflows

Here are some quick personal finance updates:

• I spent $1,263 last month while I was being a nomad. Most of this was on food, cabs, gifts and fun things since friends were incredibly generous with letting me stay with them!
• I spent $440 on movers. My Dad generously offered to pay the other half. (Yes, it was ridiculously expensive, but that was due to being last minute.)
• I was able to save $700 which was split between travel, gift and E-funds.
• I just wrote checks for September rent ($1,200), security deposit ($1,175) and September cable/internet ($67.73) which is billed forward.
• I had to buy a wireless router (roommate has a desktop that he plugs in via ethernet)...the cheapest was $32 at Best Buy because I wanted it right away.
• I've already got $140 in cash back rewards from my Chase Freedom card! Granted, $100 of that was the sign-up bonus...but I'll take it!
• I've also been buying some things online (like this via Nordstrom!)...but I don't really want to talk about that. It's coming out of my budget but not putting me in the red, so it's all good. ;)

With all of this money going in/out, my bank account is FINALLY back to a "normal" balance after having so much inflow due to selling my car before moving here and the return of my prior security deposit just sitting there.

The New Young Investor: Shunning Stocks

The other day, I read this article on the Money section of CNN's website, entitled The New Young Investor: Shunning Stocks.

To be honest, the article didn't surprise me that much. Investing is very emotional for everyone. I can see how those of us in our 20s and early 30s might be confused/scared/nervous after seeing many of our parents and elders lose a lot of money in the stock market over the last decade.

However, I in no-way-shape-or-form believe that Generations X and Y should be pulling all of our money out of the stock market. It's a tried-and-true form of income, especially if you are investing for the long-haul of 35-40+ more years. Sure, even I've been slightly skeptical at times. But then again, I've only been investing for two years come this October! Of course the market is going to fluctuate during that short time frame, especially given the economic situation/recession we are in. 100% of my Roth IRA and 401k investments are in pure stocks. No bond funds for me! Of course, I do have a sizeable chunk of money is savings... but those are just for rainy days and I expect to deplete/replenish those accounts as life happens. My retirement funds are for the LONG haul!

I have faith in the stock market. I won't stop having faith in the stock market unless it completely implodes and disappears all together one day. I'm going to continue to invest and have a bit more money than those who have decided to pull out for the time being and who are trying to "time the market"... it's impossible to do!

What are your thoughts on the article?

New Renter's Insurance and Car Insurance

I posted last month about getting renter's insurance. I lived in my previous apartment for 2 years without having it (!) and knew that had to change! It's been on my to-do list for way too long.

When I tried to get renter's insurance through my current car insurance company (AAA) to see if I could bundle and get a discount... I was told that I "live with too many additional roommates." Uhh, what? Even if I just want to insure myself, 3 people in an apt is too many? That's not right.

So, I got some quotes online from GEICO, State Farm and All-State. In the end, State Farm was the cheapest so yesterday I went to a nearby office and set up a policy! It ended being $180 for a year to insure $20K worth of stuff. Expensive but worth it and I'm so glad I finally have renter's insurance because you just never know.

While I was there, the (really nice) agent I was talking to asked me about my car insurance. I thought I was paying a decent amount through AAA, which is the company my parents have used for YEARS and where I went to get my insurance through last year when my car was officially titled over to me from my Dad. Well, after going back to the office today with my AAA policy coverage and amounts, State Farm matched the same coverages for $300 less per year! Plus, they don't charge interest if you pay monthly (just a flat debit fee each month, $1 or $2) and you pay in 6 month installments instead of annually. Oh, and then they immediately gave me a multi-policy discount due to my renter's insurance so I'll be receiving a check for $39 soon because it dropped from $180 to $141. Awesome!

It was a bit of an effort, but in the end it's saving me $300 per year... plus there are no more forms to fill out (everything's online) and there was hardly any paperwork. Hooray for State Farm and saving money! :)

Monday Money Check-Up

This week I'm participating in the Monday Money Check-Up hosted by My Pretty Pennies! :)

1. The most I've spent this last week was on a pedicure! $27 including tip which is more than I normally pay.

2. Today I feel good towards money. My budget is looking to come quite a bit under for the end of August, and it's a long weekend with fun plans plus payday!

3. Money can’t buy happiness. One free/inexpensive thing I did last week that made me happy was hang out with friends! Board game night on Friday and movie/wine on Saturday night. :)

4. I will consider this week a success if I go to a State Farm office and get renter's insurance. Seriously!

5. My favorite room in a house is the kitchen and living room. I find both very comforting, inviting and relaxing. :)

Carnival of Personal Finance

I made my very first submission to this week's Carnival of Personal Finance (#255), hosted by Well-Heeled!

Check out her awesome roundup by way of the Origin of the Piggy Bank. :) Tons of fantastic submissions! I used my blog post about Why I Pay 41% of Take Home Pay in Rent.

Personal Finance Mad Lib

There's a really fun personal finance mad lib created by Punch Debt In The Face going around the blogosphere, so I thought I would join in!

Hi, my name is Money Maus. I currently have $14 dollars in my wallet. When I started managing my finances I was worth $4K, and now have a net worth of $22K. I currently work in finance and have been doing it for 1 year. I make roughly $35K per year. I want to have $2MM+ waiting for me when it comes time to retire. Aside from learning about finances, I really enjoy text messages. I think the world would be a better place if greed didn't exist. I had chicken/ravioli/broccoli for dinner last night and it was scrumptious. I have had 4 significant others over the course of my lifetime (counting awkward middle school relationships and relationships that lasted 4 months or less). One thing that makes me different is my petite size. Now that I'm done with this mad lib, I think I'm going to go to sleep.

One Year Blogiversary!

Today is officially my one-year blogiversary! It really surprises me that it's been a whole year since I graduated, landed a job, and started down the path of personal finance. I have created my own net worth and learned a lot along the way!

One year ago, my goals were simple: donate to charity, open an ING savings account and open a Roth IRA. I have done all three (I contribute $25 monthly to a rotation of 3 different charities, including my alma mater) and even maxed out my Roth IRA for 2008! I absolutely love my ING savings account... especially the sub-accounts.

One of the biggest events, both personally and financially, was my promotion. It has been exciting and enjoyable - and it occurred so quickly that it truly surprised me! However, it also makes me respect the company I work for in seeing my potential, and that I hope I can be here a long time. I did my taxes for the very first time (using TaxACT) and I also started dating K in March!

I have felt welcome in the pf (and general blog) community and continue to read all of yours daily as inspiration. Here's to another great year of blogging and personal finance! :)

2008 In Review

This has by far been an incredible and interesting year!

Personal
I spent time in NYC for New Year's (and my last Spring Break) and I took a university course in India for 3 weeks in January. I graduated college, got a job in my industry of choice and started this blog after becoming engrossed in the world of personal finance. I learned to budget on an entry-level salary, got my wisdom teeth pulled, broke up with my boyfriend of 1.5 years and got a promotion. I also went on 2 dates with a new guy.

Financial
I watched as the economy (and the financial markets) spiraled downwards. All I can say is, I am glad to be young in such tumultuous times! I have been contributing 6% to my Roth 401k at work to garner the full 3% match since becoming eligible in October. I opened a Roth IRA at Vanguard. I started saving with my very first paycheck and have over $4K in my emergency fund as well as some savings in a travel fund, gift fund and car maintenance fund. I received a holiday bonus at work, of which I saved some and splurged as well.

I am looking forward to 2009: the first week will include the beginnings of my training for my new position and my 23rd birthday! I'm off to Vegas tomorrow for New Year's and the long weekend.

Happy New Year!! :)

Suze Says: Do What's Right For YOU!

In the current economic conditions, do you buy or sell? This is the question that lots of people want to know. According to Suze, you need to do what is right for you in this time, in this place, with your situation, with your money. The markets (stocks, real estate, etc) should not dictate what you should do.

Should you buy or sell real estate right now? Especially when prices are so low? It depends on your situation. You should not do it if you really can't afford it. If you CAN afford it, then you should go right ahead!

Should you buy or sell stocks right now? Again, all these decisions are personal. They should not be dependent on ideas that "stocks are very cheap" or other ideas. If you have excess cash that you can afford to put into the markets, then perhaps that is a good idea. However, if your own personal current situation says you shouldn't (debt, etc) - then it's not a good idea.

It comes down to this: you need to figure out what you personally can and cannot afford. (Which you should always figure out before a large monetary expenditure, anyway!)

I am young, I live below my means, so I can afford to invest few hundred dollars into the stock market each month. However, I know that I cannot afford to buy a condo (downpayment, high property taxes, mortgage that is more than my current rent, etc) so therefore it's not the right decision for me right now.

"People First"

People first, then money, then things. - Suze Orman

At the beginning of 2008, my Mom mentioned that I should watch "The Suze Orman Show" on CNBC. I had never heard of it, so I gave it a try on a Saturday night after one of my finance professors had also recommended it.

And I've been hooked ever since! Suze gives fantastic advice. She is straight to the point, offers lots of insight and covers a variety of topics--all of which are PF-related. Of course, the "Can I Afford It?" segment is my favorite.

I would love to be a guest on her show one day! :) I truly believe the above quote as well, which is her end-of-the-show tagline and I try to follow it in my own life.

Starting next week, I will begin a "Suze Says" post on Sundays or Mondays with a piece of financial advice from her weekend show.

NYTimes - Your Money Article

I thought this article from the NYTimes' "Your Money" section rings very true.

It makes me proud to be a PF blogger, to have a community of bloggers/readers that provide constant support and an overwhelming amount of advice! :) We make a fantastic club.

What's in my Wallet?

(Sorry for the lack of posts recently - we're FINALLY all moved in to the new place, with internet/cable/utilities set up and *almost* completely settled.)

I've seen this on a few other blogs, and I think it's a really cute idea!

My wallet is my most recent large purchase, and one my first purchases on my credit card. It is a Michael Kors, and I absolutely love it! I use it a lot just by itself when I'm going out. So, what's inside of it?


The front compartment has 2 slots to it and 1 zippered area for change. The front slot is for all my bills (currently $10) and the back slot holds my receipts and a few checks. I am a receipt horder, but I have been getting into the habit of cleaning it out once a week, keeping the important ones in my mini filing cabinet.

The back compartment contains all my cards. My license is the blacked-out portion and it's still from my home state... I really should update it soon since then I can make use of the near-by library! My most-used card is my WaMu Gold Debit Card. It comes with PayPass, which I have only used once at a local 7-11 but it's pretty neat and the card gives me $0.03 back per purchase, up to $250 per year. (After doing some calculations, that means I would have to use it 23 times per day to receive the maximum return, lol.) My other cards are:

• CapitalOne Platinum Credit Card
• Health Insurance HMO Card
• Costco Membership Card
• AAA Membership Card
• Starbucks Card x2 (one might be empty... shows how much I use them!)
• AMC MovieWatcher Card (still says I am a student, love the discount!)
• Nordstrom Gift Card x2 (from returns I've made recently)
• Coach Gift Card (Christmas present)
• Victoria's Secret Gift Card (maybe $1 and some cents left on it)

The flaps in the same card-holder area continue a few business cards of acquaintances and friends, my old student I.D. card, my old debit card and my Sephora rewards card. What's in your wallet? :)

Short Update

The pieces of my personal finances are slowly coming together:

1. First Credit Card! I received it yesterday, and it came with a $500 limit which is more than I expected, especially having no credit history.

2. First Credit Card "Purchase" - actually a donation to charity for $50. (The donation was to Myanmar, which is where I would like to continue to give money. I have been to the country and the people there are truly amazing and gentle but unfortunately under a ridiculously sadistic and greedy junta, not to mention the added strife/poverty from the cyclone.)

3. My emergency fund now contains $330, which will be increasing when I deposit a $50 check from my German professor for graduation. I will be putting $100 per month into it initially, starting in July when my paychecks are regular - I started my full-time job last Wednesday (6/11) but already had a flight booked home to Seattle, 6/18-6/29, to get all 4 of my wisdom teeth removed. (Thank goodness I am still on my parents' insurance for the procedure!)

Those starting points above actually hit on 2 out of 3 of my initial goals of donating to charity AND opening an ING Direct Savings account to slowly start my emergency fund. There was also the unofficial "I-need-to-build-credit-but-am-scared-of-credit-cards" tidbit. Time to start working on goal #3 from below!

Welcome!

After taking a fantastic "Personal Finance" course as part of my Finance major at my now alma mater, I became hooked on the subject matter. I turned towards the Internet to continue my education on personal finance and, lo-and-behold, I came upon the wonderful community of personal finance blogs! So, for the past month or so, I have spent many days just reading the wealth (no pun intended!) of information from various perspectives of those who are also attempting to navigate this topic within their own lives. As a brand-new college grad who is still in the job-hunt process, I have slowly started to put into perspective everything I learned in the course. Add this to what I have been reading about real-world experiences via blogs and it certainly makes for a good basis. Thus, I wanted to become a part of it!

As stated previously, I have a degree in Finance (cum laude) from a private university. My parents have always been my rock, both emotionally and financially. My dad works in finance and has been a huge influence in my choice of major and future career path, and he could not have been more proud when I began calling him weekly to update him on what I was learning in my Personal Finance course. I have been blessed enough that he has made enough money to pay for my college education, such that I graduated without any debt. Always having been extremely open with my parents about money, and they to me, I feel like I have learned a fair amount but I have a long way to go - especially once I land a full-time job and therefore start down my own financial road. This leads to my "Current Net Worth." In my checking account, from prior summer internships and an on-campus job, I have cash in the amount of $3,931 (in a checking account) but I also have my car, valued at $10,000 according to Kelly Blue Book - though obviously this is a depreciating asset!

I am extremely happy and blessed to know that I am not coming out of my expensive university with any debt, let alone thousands like the majority of my friends have. But, I realize that now I need to start getting my finances in order, instead of having too much money sitting in my checking account, where it could be earning interest in a high-yield savings account...

This leads me to quickly run down my goals for the rest of 2008 (until I land a full-time job and can change those goals accordingly):

1.) Donate to charity
2.) Open an ING Direct Orange Savings Account
3.) Open a Roth IRA (either Vanguard or Fidelity)

This has been a very long and involved post, I know. I can ramble and write a lot when I truly enjoy a subject! :) Anyway, welcome to my blog!