No-Spend November: Week 4 Recap November 30, 2011

I figured I’d wait until the end of the month, since there’s a little more than 4 weeks in the month.  So, here we go:

Tuesday Nov 22:  I gave in and got soup at the work cafeteria.  $2.55

Wednesday Nov 23:  Driving home to NJ for Thanksgiving.  Some traffic made me decide to take a detour and look for a pit stop.  Found a random tiny diner to use the facilities, then felt bad for just using their place for the bathroom, so I bought a $2.25 burger.  Not worth the cost, but oh well.  Was on the road for quite a few more hours (boo traffic) so I guess it was good that I ate something.  Also, tolls (tallied up on my Fast Lane) for that trip:  $9.90

Thursday Nov 24:  Thanksgiving!  The only thing I spent was time with my family

Friday Nov 25:  My mom gave me an early Christmas gift:  a visit to her local hair salon so I could get highlights to blend away the gray hairs!  The hairdresser was pretty surprised at how much gray hair I had.  But I think she did a good job camouflaging it!  So, that was “free” as a kind gift from my mom.  I think she knew I wouldn’t do it otherwise!

The family tradition is going to a local shop run by a high school friend’s aunt.  That’s the only place we went, so we avoided the insane Black Friday shoppers.

Later that night, I drove with my younger sister to my older sister’s house to hang out with her and her husband.  On the way back to my parents’ house, noticed my gas tank was getting low.  Fuel up costs:  $33.86

Saturday Nov 26:  The thing about coming home is that we get a little spoiled.  Fun things included:  Going to the movies! We saw Arthur Christmas.  It was super cute, and really funny!  The kind of movie that I probably could only have seen with my family

Afterwards, we went to a local Mexican restaurant that we love.

My parents were awesome enough to pay for the movie and dinner.  Hooray them!  Thanks

Sunday Nov 27:  Didn’t want to leave!  Love being with my family.  Stopped partway home to grab a coffee and a small fries from McDonald’s to keep me awake and keep my stomach from growling.  $2.12.  Total cost of tolls for drive back to Boston:  $14.30 (I took the Tappan Zee Bridge both directions, they only charge going South/East)

Monday Nov 28:  Brought my lunch.  But I got tempted by all the Cyber Monday sales.

I had won a gift certificate from Cuddl Duds by entering their “Quote of the Day” contest.  (You can still submit your quotes for a chance to win!), and I also knew they were having a Cyber Monday sale of 30% off…I figured it was my best chance to get a good deal!  I went for the top and the leggings from the Activewear Lightweight clothing.  After discount and gift certificate, $9.80

Then, I was on the Kohl’s website, and realized that there was a slightly different selection of Cuddl Duds for sale.  There was some overlap between sites.  So, that made me decide I’d get the Activewear stuff directly from Cuddl Duds, but then I caved seeing the insane sales plus extra 20% off (making most other options cheaper than buying direct) plus free shipping, so I went for the ActiveLayer Top, then the Climatesmart Top and Pants.  I went a little nuts.  My logic was, hey, it’s cheaper on the Kohl’s website, but I have the gift certificate on the Cuddl Duds website, and only some things are available on each site….

My brain went crazy.  At least I got some good deals.  And if I regret these decisions, I can always return it (though, who am I kidding, I probably wont).  Total expense on Kohls.com:  $47.98

Oops.  Why did I buy all this?  My reasoning is that they’re good for outdoor activities, so between skiing, winter walks, and shoveling, I’ll get good use out of them.

Tuesday Nov 29:  Brought my lunch.  But then realized I needed shampoo/conditioner for my now color-treated hair.  Not sure how much it matters, but I wanted to make sure my highlights lasted!  And while I was at CVS I saw a coupon for $1.50 off any deodorant, so I picked up a new one while there.  I guess I cheaped out on the hair care, because I only spent $5.81 at the store.

Wednesday, Nov 30:  Last day.  I brought lunch.  But because of all the driving I did this month (i.e. a round trip between Boston and central New Jersey) I had to fill up the gas tank again.  $33.99.

This final “week”:  $162.56.

What a month!  I didn’t do as well as I hoped.  I caved a few times when it came to dining out or buying lunches.  And I spent more on gas than usual due to the extra driving.  Expenses I didn’t include throughout was rent, utilities, transfers to savings/retirement accounts, student loan payments, and my gym.  Why?  Well, most of those transactions are automatic, so they just happen on the days they’re scheduled for.  Yeah, my gym membership is charged every month.  $27/month.

So, total amount of money I consciously spent this month?  $438.05.  Not exactly no-spend, eh?  Some of these expenses were unavoidable (I need gas to drive to work!), some were splurges (going out to dinner, buying myself a new wardrobe of Cuddl Duds).  I’m planning on continuing to bring lunch to work as much as possible (though tomorrow we’re going out for a colleague’s retirement party…but Friday, I promise I’ll bring lunch!).  I know next month will be expensive, with more retirement parties, holiday parties, and Christmas gifts.  I haven’t started shopping for gifts yet, and I’ll try to not be too extravagant, but I do tend to spend a lot on other people for Christmas.  We’ll have to wait and see what happens.

So what do you think of my no-spend November?  Impressed at how little I spent?  Disappointed at how much I spent?  Or was that the exact amount you predicted I’d spend?

Would you pay for someone to manage your portfolio? November 24, 2011

The other day I got an envelope in the mail.  It was an offer (through my 401(k)) to sign up with a retirement advice company.  My employer signed up through them to offer a retirement portfolio management service.

My first response was:  No Way.  I’m not paying some people to do something I could do for free!

But then I read the paperwork they sent me.  Apparently I have two options available to me.  I can use their site for free to continue to manage my 401(k) on my own.  Or I can pay a fee to have them plan out, monitor, and rebalance my portfolio. Of course, the paperwork tries to point out how much better things would be if I did pay them for help.  They included stats/graphs showing that if you get their help, you’re likely to improve your return over the long run.

So, will I sign up?  Turns out they’re offering a few free months to hook you onto the “paid” plan.  The fees actually aren’t horrible, and it’ll be nice to actually talk to someone about my fund selection.  Plus, I can import my other retirement accounts (like my Roth IRA and rollover IRA).  I’ve tried out their free program, and it has some decent advice (like how to reallocate my funds to have a slightly more aggressive portfolio) and what other funds I could invest in within my IRAs.  It also told me to increase my contributions from 5% to 7%.  So, I actually already changed the contribution amount.  It was an easy change that made sense.

As for the fund recommendations, they aren’t quite right.  For example, one of the funds they suggested I invest my Roth IRA in has a $1million minimum investment.  Um, no.  But it’s putting me on the right track, I guess.  I could look for similar funds that don’t have outrageous minimums or high fees.

I think I’ll try out the paid program, get my portfolio in order, then switch to the free advice system.  It sounds like Krystal is also thinking about briefly trying a financial advisor, then continuing to manage her portfolio herself.

So, like Krystal asked, would you pay for someone to manage your portfolio?  Would you pay for just advice?  I’ll admit, while I think I’ve got personal finance stuff covered, I’m not very confident about my investing skills.  So, trying this out to start, but then trying to learn more along the way (and shifting back to the free plan after the trial period is over) is the best way for me to approach this.

No-Spend November: Week 3 Recap November 23, 2011

I think I’m losing steam.  Also, I’m realizing this month is not very no-spend, what with all the spending I’m doing…

Tuesday Nov 15:  Was sick of bringing in sandwiches and leftovers.  Call it no-spend burnout.  Bought the taco salad at lunch.  $5.87  Good news is that kept me pretty full all day, I think I didn’t even need dinner!

Wednesday Nov 16:  Back to the sandwiches.  No Spend.

Thursday Nov 17:  We had a section meeting, so we got lunch coupons for the cafeteria.  Used it to buy two large bowls of chili and a granola bar.  No spend (of my money!)

Friday Nov 18:  Ate the second bowl of chili for lunch.  I’m a chili fiend! Dinner time, boyfriend and I wanted to go out to eat.  So we did.  Got some Thai food at a local restaurant.  A few appetizers and entrees (and a little leftover to eat the next day) + tax + tip:  $40.

Saturday Nov 19:  Didn’t do much of anything, just relaxed all day.  Staying home means no-spend.

Sunday Nov 20:   Met up with some old friends in Cambridge.  Ate at Abigails.  $14  Wasn’t very impressed with the service, or the prices for that matter.  But I was willing to go since I hadn’t seen these friends in awhile.

At church, put $1 in the collection plate.  I’m a cheapskate.

My car’s gas tank was running on empty, so I had to fill up.  Luckily, I had enough gas to get to the cheap station near home.  $37.

Monday Nov 21:  Brought salad for lunch, but was craving something warm.  So I bought a cup of soup in the cafeteria to supplement my meal.  $2.55.

As you can tell, I’m not doing so great at this no-spend thing.  Total this week was $100.42.  My mom’s been following along, and was worried that I was starving myself or being ridiculous with my lack of spending.  But I assured her, I’ve just been cutting down on bought lunches, really.  And avoiding going anywhere near Target or the mall…

Looking ahead, the expenses will definitely be another tank or two of gas, a few more lunches if I can’t get my lunch-packing act together.  The only shopping I’ll be doing this weekend will be at local shops, trying to go with the Shift Your Shopping movement.  And I wont be shopping anywhere that opens before 10AM on Friday

I’m very much looking forward to this Thanksgiving break.  Family and Food?  Two of my favorite things!

Will this weekend be no-spend for you?  Or will you be spending up a storm at all the Black Friday sales?

No-Spend November: Week 2 Recap November 15, 2011

So, week 2 of No-Spend November.  I haven’t given up just yet!

Tuesday Nov 8:  Went to a 401(k) presentation sponsored by the young-employee network at work during lunch…and lunch was provided!  I think I already knew most of the stuff they talked about, but it’s always good to get a refresher on retirement investments!

Wednesday Nov 9:  Brought my lunch.  But then on the way home from the gym that night I filled up my car tires (for free) but didn’t have a tire gauge to confirm my tires weren’t overfilled (which I did discover they were, had to let them out quite a bit), so I bought a tire gauge and some valve caps to replace ones that had fallen off.  $4.55

Thursday Nov 10:  Stayed home sick again, so I didn’t need to pack or buy a lunch.  No spend!

Friday Nov 11:  Brought my lunch.  Went out with some friends from work for drinks/dinner.  Beer, burger, fries (plus tax and tip):  $15.55

Saturday Nov 12:  Wanted to use up the $20 in Kohls cash that was expiring.  Bought these shoes (in brown).  With the sale, the Kohls cash, and a coupon, I paid an extra $3.79.  (and when I got home, I put TWO pairs of old shoes in the donate pile!)  Then went to the grocery store so I could buy yogurt for the banana bread recipe I wanted to make.  Saw English Muffins buy 1 get 2 free, so I let the deal seeker part of me win out. $6.58

Went out for dinner at Tu Y Yo (SO DELICIOUS!) with another couple.  Boyfriend paid for our half of the meal (it was his turn to pay, we trade off who pays).

Sun Nov 13:  Went to church.  Intended to put some money in the collection plate, but I didn’t have any cash on me, so I gave a measly 60 cents.

Mon Nov 14:  Brought leftovers to work.  So, no-spend!

So, this past week, I spent a total of $31.07.  (check my math?)  Not too bad.  I’m realizing that this No Spend plan is really more of me training myself to bring my lunch and think twice about purchases.

Should everyone contribute to a Roth IRA? November 10, 2011

The short answer?  No.  It’s not perfect for everyone.  And actually, not everyone is eligible for it.

Roth IRAs are the Big Thing these days for younger people looking to save for retirement.   We’re all encouraged to open one, and contribute to it.  Seems like it doesn’t matter what fund you buy.  Your mission (from the personal finance gurus) is to put money in there.  Put all $5k in there if you can.  If you’re doing that and contributing to a 401(k) up to at least any employer match, you are on the right track (according to gurus, and to be honest, according to me, too!)

My younger sister is currently in grad school.  She sent me a message the other day, with the basic question:  Should I open a Roth IRA?  What are your thoughts on this?

My response?  A combination of advice and general information.  Read on:

They’re a good idea.  It’s good to start saving for your retirement now.  Plus with the stock market down, you buy funds “on sale”

I maybe sound like a salesperson.  Ooops.

You can contribute up to $5000, or your income (what shows up on your W-2s), whichever is lower.  But I’m assuming your stipend is more than $5000!

Also, not sure what your stipend is, but if you make less than $27,750, you can get up to $1000 tax credit if you contribute to a retirement fund

The benefit of contributing to a Roth IRA right now is, of course, “The Power of Compounding”.  There’s a common example that if you contribute now and for only a few years, you’ll have more money than if you start later and contribute longer.  Magic.  Assuming the markets go up!

With a Roth IRA, you’re paying in money that was already taxed (through your employer), so when you contribute to your Roth, it can now grow tax-free (and be withdrawn tax-free when you retire).  And since your income level isn’t super high right now, your tax rate is relatively low.  Presumably, in the future, your tax rate will be higher, so if you had used a traditional IRA, while you don’t pay tax now (or you get a tax refund now, depending on how you do the IRA), you’d have to pay taxes on the money you take out of the account (when you retire).  So taxes might be higher then.  It’s a bit of a hedge, because it’s hard to know for certain what rates will be.

Lastly, if you’re mildly freaked out by the idea of putting a lot of money into an account, don’t worry.  Two parts make it less scary:  1.  You are able to withdraw your CONTRIBUTIONS at any time without penalty.  So, you can take out that money.  2.  You don’t have to put the whole $5000 (or however much you decide to contribute) all at once.  I contribute 1/12th of the total amount every month, and buy into a fund every month.  The idea of “dollar cost averaging” will work in your favor, here.  The basic idea is that you buy some of the fund every month, and you buy more when it’s “cheaper” (when the stock price is down), and less when it’s more expensive.  That way you don’t have to worry so much about putting all your eggs in one basket and trying to time the market perfectly.  Because that’s basically impossible.

As for what fund to invest in, most companies offer a fund geared at your particular retirement year.  So you can just contribute to the 2055 fund or something like that, and it’ll start out being more aggressive, then transition to being more conservative as you get older.  Another good option (often with much lower fees) is an index fund.  You’ll want to put your money in a fund with a low expense ratio (read:  cost) so that more of your investment goes to you and less to fees.  Usually it’s hard to buy certain other funds or individual stocks/bonds when you’re just starting out, because you need to have a pretty large minimum amount.  So you can build up your retirement fund until you have enough money to diversify, or you can just keep it in the lifecycle fund that fits your age or an index fund.

So.  If you want to start saving for your retirement (and you should!) I think Roth IRAs are a really good way to start, and it’s good to start now when you make less money (you can’t contribute if your AGI is over $107k…you know, SOMEDAY you might make that much!) and while you’re in a relatively low tax bracket.  It’s hard to know where the markets or tax rates will go, but I’ve found my Roth IRA to be a great balance to my employer’s 401k plan.

(Reminder, I’m not a financial advisor…I’m just a girl who likes talking about money!  But if you have any questions, I’ll answer them!)

Do you have a Roth IRA?  Traditional IRA?  Do you max out your contributions every year?

No-Spend November: Week 1 Recap November 8, 2011

So, many of you remember I decided to try a No-Spend November.  How did I do?

Tuesday Nov 1:   Success!  Brought my lunch, didn’t spend anything.

Wednesday Nov 2:  Success again!

Thursday Nov 3:  Super tempted by the chili they have every Thursday in the cafeteria.  But I resisted!

Friday Nov 4:  Stayed home sick, slept almost all day, so I didn’t even eat that much

Saturday Nov 5:  Got my haircut.  My last haircut was in June, my hair was just looking bad.  Yes, excuses.  $35 + $7 tip:  $42

Also on Saturday, I went with some friends to a wine tasting event at the Danforth Museum of Art.  Donation/ticket price:  $65.

Sunday Nov 6:  Went to work to make up some time from my Friday off.  Had to fuel up on the way home.  $37

Monday Nov 7:  Brought my lunch again.  Woooooo!  No spending.

So, the first 7 days, I’ve managed to avoid paying for lunches.  However, I have already spent $144 in these 7 days.  (not including online transfers like rent, utilities, and other bills).  Granted, I wont be buying more gas for 300-400 more miles, so while it’s a common (and pretty much unavoidable) expense, it won’t happen for a little while.  As for the Saturday expenses:  I could have gotten my haircut in October.  And I probably could have waited until December.  Or gotten a friend to cut it.  But I didn’t.  I found I had time that I could set aside for that, and took advantage of that time.  Plus I got in a really good walk to and from the hair salon!  As for the wine tasting, I had already given a maybe/yes to my friend coordinating it, and I felt bad backing out.  Plus I wanted to go  Good news about those two expenses, though, is that they wont happen again this month!  (or probably for a while!)

I’m going to try to keep up the no-spending all month.  I might end up spending more money this month, but I’ll try my hardest not to!

So, how did you do so far?  What are your No-Spend November rules?  Do you have exceptions?  And maybe do we realize that I’m more or less just tracking expenses publicly while trying to build up the habit of packing my lunch each day?

No-spend November: Can it be done? November 5, 2011

I decided to try out having a no-spend month.  And what better time than November?  No-spend No-vember!

Why did I start this quest?  I think there were a few reasons.

If you recall, my last blog post was about having a spendy weekend.  I bought stuff that I (mostly) needed, some stuff that I just wanted.  But it was a lot of money all in one weekend.

I also realized that I’ve been buying lunches at work A LOT.  Those costs add up.  AND, cafeteria lunches are not really the healthiest options.  So I was looking out for my wallet and my waistline!

And maybe I wanted to join in on a movement like the No-Shave November, more often called Movember.   It also inspired the guys at How To Do Everything to have a Beard Sprint.  And since I’m a lady, I couldn’t grow a beard.

Plus!  Brad from Enemy of Debt is also having a no-spend November!  His goal is No Restaurants for all of November.  With my main “no-spend” category being cafeteria food, I think this is a good goal to work with!

What are the rules?  There are always rules with these sorts of anti-spending challenges.  My main one is:  don’t buy lunches at work.  And while I rarely buy coffee, I also will not let myself be tempted by my need for caffeine.

Obviously, I’ll still be paying rent, paying bills, and buying gas when my car is running on empty or buying groceries when it’s my turn to fill the fridge.  And, to be honest, I’m really just focusing on not buying food while at work.  But the no-spend mentality is also going to be weighing on me all month.

I’ve already got a problem with this weekend.  I was planning on getting a long-overdue haircut.  And I’m attending a wine tasting with some friends.  (I’ve gone every year since the first year I wrote about it).

One last November habit I’m trying to build:  Using my Wii Fit every day.  To at least weigh in and take the balance test.  Then maybe a few activities to get in shape.  Between my better eating habits (not buying lunches) and my exercise, maybe I can get back to my college weight!

So can it be done?  And if I just consolidate my spending to one day a week, will you forgive me?  Are you in Enemy of Debt’s No Restaurant November?  Will you join us in our pledges to avoid spending?