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Friday Link Love

How are we all recovering from Christmas? Are you thoroughly exhausted? I know I am. Are your finances exhausted? Mine are.

So today we take a bit of a beach vacation and cruise through some links from this week.

We’ve all heard that money does not equal happiness. But there were many studies proving that that was true if you made up to a certain amount. Anything above that amount didn’t necessarily improve your happiness. That amount was $75,000. And to an artist like me that number seems ridiculously unattainable. Well, how about this. Now it seems that internationally that number has gone up to $161,000. Yikes! In my house we are perfectly happy with our combined household income that is far below that.

Now this idea is a little convoluted, but I do love the idea of incentivizing other behavior to contribute towards a more expensive hobby you have. I think I would contribute $10 a week to my coffee fund if I worked out 5 days a week. Oh, that’s not a hobby.

Have you ever looked for a job and been told to just go “pound the pavement”? Turns out that may be the worst advice you’ve been given for job hunting. Check out this instead.

And finally, the power of proclaiming your frugality. Have you ever noticed how much more free you feel if you just come out and say “I can’t afford that right now.” Magically, most of your friends don’t hate you and you go for a walk instead of out to lunch. Though in Seattle at this time of year walks are harder and harder to come by.

Anyone got any other great links from the week?

The After-Christmas Financial Slap in the Face

How’s everyone doing post-Christmas? Are you looking at your credit card or checking account and feel smug knowing you didn’t spend one cent over what you budgeted?

Or are you like most of us and going “Holy &$^*@#*$^#$^&$@*#!!!!! I spent how much????”

Shoot, even I feel that way. Our grand present total came to *gulp* just over $900. What happens when we have kids? We’re going to explode is what.

So here is where I plug my most awesome workshop. I’m going to take your exploded finances and make them manageable. And not just for the next few weeks, for all of 2013. I promise. If you don’t feel like that when you leave my workshop you will get your money back. Promise.

And here’s your chance if you’ve always wanted to get some financial planning but didn’t want to spend the money (ha!). The workshop is only $70 per person. And if you bring a friend it’s only $60 per person. My  normal hourly rate is $85 so you get me for 2 hours at $35 an hour or a 60% discount.

Come on. It’s like the best deal I’m ever going to give you.

It’s at ACT Theatre on Monday, January 7th from 6:30p-8:30p. We’ll make finances manageable and easy to understand and you’ll walk away knowing I have your back throughout the whole year.

Oh, yeah, did I mention that? After the workshop you get access to me for any financial questions for the whole year for free.

So just sign up already. You know you want to. You know your wallet and bank account want you to. You know your best friend or dog or fish who are sick of hearing you whine and cry every time you look at your bank account want you to.

Do it.

Coming Soon!

AFP is making changes! I’ll be offline for a bit while my website gets a makeover. Look for it by January 1st 2013!

Friday Link Love

My good friend Julie over at Vylette does a round-up every Friday of her favorite links during the week. It is no secret that here at AFP we’ve had some time issues and as a result not a lot has been said about personal finances in the last month or so.

So, to keep the juices flowing and to remind you of your own personal responsibility to your finances, I thought I’d give you some alternate perspectives from other personal finances bloggers.

Also, Andy’s brother-in-law, a writer, suggests this technique and he’s kind of smart so I’m going to listen to him.

Here we go!

As a small business owner I would love to start offering services like allowing people to pay with a credit card before they leave my office. Who doesn’t love to get paid ASAP? This little device might be the future for that.

Unrelated to personal finance but a great article nonetheless about how to be both peaceful and looking for higher goals. I am constantly looking for the next great challenge and had no idea I could do this without being constantly stressed. This article has great steps for how to avoid that.

The Mint.com blog MintLife took a poll and found the top 10 money mistakes. The most often committed money mistake didn’t surprise me. Does it surprise you?

And finally, one of my favorite bloggers, though I don’t necessarily support the super-frugal lifestyle he writes about, recaps a classic book Your Money or Your Life. What I find most helpful is the list of 9 steps from the book he outlines. The article is a bit long so just jump to the steps to get the gist.

Finally, if you’re not in the reading mood listen to this great podcast from Planet Money about how the dollar bill was born. It’s fascinating and at only 11 minutes it’s a perfect accompaniment to a short walk around the block to escape the family.

Hope everyone has a safe, happy and healthy weekend and Christmas!

What’s in Your Wallet?

It’s the motto of Visa and a good question to ask yourself. I refer very specifically to the cards you have in your wallet. Have you ever thought about what you could lose if your wallet is lost or stolen? I’m going to break down for you exactly what it is you need in your wallet and what you should leave at home or take in and out as necessary.

Necessities:
1. Photo ID- Duh.
2. Debit card- if you’re still using checks bring yourself into the 21st century and get a debit card.
3. A check- ok, but have one just in case. This is more for those times you are without cash and need to pay the babysitter or someone else who doesn’t accept a debit card.
4. 2 credit cards- one needs to be a major card accepted almost universally, like Visa or Mastercard. The second is a back-up card and can be a less accepted card like American Express or Discover. This is merely to cover you in case of a catastrophic emergency and you can’t leave without paying an exorbidant bill. Unlikely, but that’s what it’s for.

If you have more than 2 credit cards leave the others at home unless you know you use them for very specific purchases, like a store credit card or a rewards card specific to travel.

Extras:
1. Your most used frequent purchaser card- for example, A and I go to a sushi place and froyo roughly twice and 4 times a month respectively. Rather than track taking our “frequent diner” card in and out of my or his wallet, I just leave it in mine.

And that’s it! No Social Security cards, no passports, no extra frequent purchaser cards, no gift cards. Keep your wallet light. Like a salad instead of a burger.

The only exception is if you are a small business owner and have a small business debit or credit card.

Right now I know I’m violating my own rule by having a few extra coupons and receipts stashed that I just haven’t unloaded yet.

How do you stack up with the slimmed-down wallet?

How to Have a Holiday Like a Hallmark Card

I’m surrounded by parents at Christmas Carol. And not just because the audience is full of kids and families, but my cast and crew are loaded with parents. One consistent refrain I hear from parents at this time of year is “I just HAD to buy it”. Always referencing an extra gift for their favorite little one(s). Who can blame them? We love shopping, we love our children, combine the two and impulse purchases will abound.

One of my best friends composes a diligent list of things for her children and every year when we do the final tally of what her children get she inevitably has a handful of unplanned items.

Maybe it’s because I have no children, but I find I do not have this problem. I don’t have impulse purchases for Andy or Gus. What I have are impulse purchases for myself.

How many fancy coffees have I bought in the last week? Let’s just say the Starbucks card Auto-Reload receipt is a regular occurrence in my inbox right now.

Why does this happen? Why do we all succumb to impulse purchases at this time of year in particular?

It’s because our inhibitions are low and our stress is high. I don’t know about you, but work is crazy right now and not just because we’ve entered 12+ shows a week territory, but my other projects are amping up and people have an inability to just chill. The holidays are full of images of sitting by the fire in a cozy sweater sipping hot chocolate and admiring our brood while they play with old fashioned blocks.

Who has that reality? No one. And the pressure feels awful high to HAVE FUN during the holidays.

For us it’s more like wake up, get out the door, work like crazy, meet a million people, come home, watch a Glee and go to bed. I’m grateful Andy and I sync up once during the day for a mid-day download otherwise we’d never have the energy to get all of our awesome daily occurrences out to each other.

So if there’s one thing I can teach you about December, it’s not just to budget for your present shopping and your holiday party throwing, it’s to allow yourself a few impulse purchases. As long as they aren’t cars, houses, boats, major stereo systems, etc, you’ll be fine. Check in with yourself every few days about how you’re feeling about your spending and if it’s starting to worry you ask yourself what you really need. Is it just a half hour alone? Is it for someone else to clean the house or cook a meal?

Be sure to give to yourself in the holiday season as well as to others. This will prevent you from turning into Medusa with too much wine on Christmas Day and you will have your very own Peanuts/Williams Sonoma Christmas. Though maybe with an iPad instead of blocks.

Free Friday December Edition

It’s our last Free Friday for 2013! I hope you all have enjoyed them! Justus will return in 2013 with more. I can’t wait to see what she has for the rest of Winter. 
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December always seems like a rush: a blur that starts with panicked shoppers debating items over the constant thrum of holiday music and ends with a glitzy or pajama countdown towards a New Year. Throw in a few latkes and a solstice festival or two and your head (like mine) is sure to be spinning.

With that in mind, this Month’s suggestions are low-key and not too time-consuming–just easy and fun free activities.

First, did you know REI offers free courses on all sorts of outdoor (and sometimes indoor) activities? I had not clue! Now that I do, though, I’ve gotten all sorts of use out of it! Check it out and see what you can learn for free!

Short notice, but consider making your way to Vashon Island this Saturday or Sunday to enjoy their annual Holiday Art Studio Tour. It’s an amazing event where you’ll have a unique opportunity to peek inside a number of local art studios. You’ll find more information at http://vashonislandartstudiotour.com/Holiday2012/

If you miss the Vashon Island Art Studio Tour, consider going to an event at the Seattle Centre Winter Festival. There are a number of activities you could do, all of which are listed at http://www.seattlecenter.com/winterfest/

The Seward Park Environmental & Audubon Center is hosting Winter Wonderland Family Saturday Parties (Saturdays, December 8, 15, and 22). These parties are free and awesome. Just have a look at http://sewardpark.audubon.org/

I’ve mentioned the Elliott Bay Book Company before, but I have to mention them again because they are hosting a phenomenal holiday readings put on by ReAct Theatre every Saturday thru December 22nd.

Alright, after all that, you may want to Take a moment to relax. Make your way down to Greenwood, Ravenna, or Queen Anne. In these three neighborhoods you’ll find some if the most incredible light displays.

Speaking of incredible light displays, the Solstice Candlelight Walk in Snohomish on the 21st promises to be spectactular! Actually, they have quiet a few fun and free events for you to enjoy. I’ll be at the Solstice walk. Think about coming out!

Maybe a Solstice celebration isn’t quite your speed. If that’s the case, I suggest you host your very own End of the World party. Oh, did you forget about that whole Mayan calendar, December 21st thing? I admit, it does tend to fade into the background given all the other pressing end of the year concerns. Make good use of your library card and request a few oh-no-the-world-is-ending type if thrillers. (And sign up for my 2013 Resolution Workshop!)

Whatever you do this month, be safe, have fun, catch the New Years fireworks at the Space Needle, and think up some adventurous resolutions (then make an appointment together your budget I the same page!). Until 2013… xo

Could your bank account be too fat?

I have emerged from Christmas Carol in (mostly) one piece.

I had very little personal finance advice for you during the last month, but I now have a few ideas I want to share with you which will be parceled out over a few blog posts.

This first one is a direct reflection of the link I always find between how we spend and how we eat. How we feel about food is how we feel about money and I was recently thinking about your body’s “set point”. This is the idea that there is a place your body prefers to stay in terms of how much you weigh. You have a hard time keeping weight off because your body has found a place it finds most comfortable and you are literally fighting against your biology to change that. Some believe that the only way to change your set point is through exercise.

So what about your financial “set point”? I bet there’s a point where your checking account gets to and if it falls below that point you start to panic a little. And where your credit card limit is comfortable but if you go above that you feel uncomfortable.

Andy and I are about to combine finances in January as I start on the road towards grad school and find that our financial set points are radically different. Like in the thousands of dollars different. He doesn’t like his checking account to get below $4000 and I’m comfortable all the way down to $400. So how can my set point be literally one tenth of his and how are we going to reconcile that going into our joint financial venture?

Well, the first part is easy. Andy has been growing wealth for 15 years more than I have. So he has been able to accumulate wealth and hang on to it. His life has been steady as he’s been at the same job for 13 years and has managed to grow steadily and live a relatively low-overhead life.

My financial earning years have been much more uncertain and unstable with my income fluctuating dramatically and the expenses of moving across the country and starting a new life in a new city (twice!) means that I am more used to watching my account dwindle while I wait for the next gig to come up.

And how do we reconcile our different set points?

Oh, that’s easy.

He’ll have to come down and I’ll have to come up. Obviously easier for me to see more money, but also I’ll have to get used to the idea that the extra wealth is actually not available for spending. It is there for a cushion and nothing else. So while it may seem easier for one to raise their set point, with it comes the expectation that money that is there is actually not there.

Do you and your partner have different set points? Has yours changed over the years either up or down?

Shop Small

You’ve heard of Black Friday and Cyber Monday, but do you know about Small Business Saturday?

Now you do!

Small Business Saturday was started by American Express in an effort to get people to “Shop Small” during the holiday season. They have a cute promotional video that’s all about supporting your local Small Businesses.

As a small business I love being supported! So this holiday season, do what several of my clients have already done and give the gift of financial peace of mind: give someone me! I have gift certificates for any service and any amount. Can’t afford a full comprehensive package? Give someone your budgeted amount and let them put it towards a single session with me. Or ask for one!

You can also give someone a seat at my 2013 Resolution Workshop.

Here are some of my favorite small business you can also support this holiday season (yes, I realize most of them are food):
Portage Bay Goods
White Cap Frozen Yogurt
Portage Bay Cafe
Theo Chocolate
Les Amis
Bakery Nouveau
Elliot Bay Books

And most of these places offer stuff, imagine all the things you can gift that are experiences! Myself included, but also something like a ride on the Seattle Eye, Ski Shuttle Service to a local resort, a gastronomic tour of Seattle, or a picnic in a local park with goods bought at a farmer’s market.

This holiday season, shop small and support local small businesses and feel good knowing you’re sustaining your unique blend of community.