Jersey Jen's Money Crunch

Wow, I really haven't updated much in the month of February. As I mentioned in

previous post, I received the bonus for 2006 last week (yeah, the company I work at is weird, they give out bonus after closing out 2006 earnings). Look at the CC3 at the right, it's gone! Originally, I balance transferred CC2 to CC3. Last week, I used the bonus to pay off CC3 balance of $12,000. Now I only have about $13,000 on CC1.

Also, two more car payments and the car will be paid off!

Happy, happy!!

Incoming (all figures are after tax):

$3,719 salary
$800 housing
$277 misc
Total: $4,796

Outgoing:

$557 car payment, gasoline, tolls, parking
$101 cable, broadband, phone
$39 cell phone
$270 utilities
$2,175 housing
$175 student loan payment
$100 clothing
$292 dining out
$149 groceries
$92 household
$225 education - textbooks
$50 gift - friend's house warming
$28 company store - gifts
$301 auto insurance
$166 credit card interests
$24 train rides to/from airport
Total: $4,744

Net:

Difference: $52

* As I began my MBA classes, I shelled out about $250 for textbooks.

* Food expenditures seem to be on the rise, totally about $450 this month.

* Looking forward to big bonus in February, probably enough to wipe out CC3 and part of CC1. Also, the federal tax refund would help as well.

I filed my tax returns on February 5! The federal refund is $4,900. The net state refund is $100.

This is the earliest I have filed my tax returns. Last two years, I did it in March. Even better, I expect to receive the refund on February 20. This year (2006 that is) is a bit strange, since I had to file two state returns and one federal return. So the I'm ending up with a refund from State of New York and owing State of New Jersey. Of course, I'm not filing NJ return until April :-)

What would you do with the refund? Did you file your tax return yet?

In the previous week, I was invited by a co-worker to a "E-commerce Seminar" about starting an online business. At first, it sounded like an interesting opportunity to make some money on the side (ha, try to fit that into my schedule). When I arrive at the hotel it was holding, pretty much everyone wore suits or some kind of business attire. In the end, it's called

Quixtar and BWW. All you need to do is to "buy from yourself and teach other to do the same."

I have never heard of these companies (or organizations) and this type of business concept. Is this something new? Help me with what you got.

As a follow-up to

previous entry on what to use for filing tax return, I've decided on TaxCut from IRS Free File.

Among the reasons:
- It's free to file federal tax return
- My AGI will be below $52,000 (like in 2005 tax return)
- I can file state tax returns by printing them out and mail them (I have to file both New York and New Jersey)

Have you filed your taxes yet?
- Boomeyers is done!
- SCFR's brother is done!

Alright, this is hardly personal finance-related, but I would like to use this

blog to see if my thought process is relevant.

I've always been hearing from guy friends who complain about taking girls out and being expected to pay for expensive dinners and drinks. It appears to me that guys should pay for the first date, since he is the one who initiated. This act of gentleman politeness is definitely appreciated. However, if the girl becomes interested at the end of first date, she could offer to pay her share to indicate her interest. I've met a guy who insisted on paying for first three dates, then I offered to take turn paying so we don't have to do math lessons all the time.

Of course, when I meet someone interesting, I don't want him to spend all his money on food. After the first date, if there are more dates planned, the going-out could be split. Moreover, nowadays, women are making more money and prefer to pay for their share.

As for expensive dinners and drinks, well, I have low-tolerance and one drink is about it. I consider a good time in a coffee worthwhile for a date also.

Don't be a jerk, if you (male) ask someone out, then bring your wallet. Don't be a freeloader, if you (female) haven't offered to pay by the third date, don't waste his time.

Today I received the first tax return document from my bank, the

1099-INT. What does this mean? Oh no, tax season is here (and hopefully getting a refund)!

Can you tell what do you use to do tax return, i. e. good old paper forms, software (TaxCut, TurboTax), accountant, or "I have to pay taxes"?

After a month of shopping and eating, the time has finally arrived to tally up the staggering expenses. This is also a good month for income, as there are three Friday paydays.

Incoming (all figures are after-tax):

$5,558 salary
$800 housing
$50 misc
Total: $6,408

Outgoing:

$483 car payment, gasoline, tolls, parking
$101 cable, broadband, phone
$40 cell phone
$97 utilities
$2,175 housing
$275 student loan payment
$80 cash withdrawal
$84 clothing
$153 dining out
$230 groceries
$106 contacts, medicine
$173 household
$457 leisure - Christmas gift shopping
$122 company store - Christmas gift shopping
$34 post office - shipping those gifts
$19 train rides to/from airport
$483 plane tickets to

Text is Houston and Link is houston.sidewalk.com

Houston
Total: $5,112

Net:

Difference: $1,296

* December is unusually due to the higher income and expenses (now every month has its reason to be unusual).

* About $600 was spent on Christmas presents. Mostly for parents and myself :-)

* About $500 was spent on Christmas travel, including plane tickets and train tickets. For some reason, travel this time costs more than before. I guess plane tickets have been going up.

* The extra money left over will be most likely going toward credit card loans.

It seems in the U. S. that even people living in poverty have material goods that are not affordable to rest of the world. Americans seem to have lot of stuff. I came across an

article on MSN Money. It's somewhat amusing that Americans in general may be living paycheck-to-paycheck or incurring credit card debt, but we have all the conveniences.

I compared myself against the stats:

Refrigerator: 99.20%. I got one!

Stove: 98.30%. I got one!

Color TV: 98.20%. I got one!

Auto: 85.70%. I got one!

Microwave: 98.20%. I got one!

VCR: 86.9%. Does a DVD player count?

Washer: 80%. I got one!

Dryer: 77.10%. Mine is a stacking unit with the washer.

Stereo system: 72.55%. Yes, I have a 5.1 system!

Computer: 59.30%. Laptop it is!

Merry Christmas! So what did you get for Christmas?

Nowadays, I don't really expect gifts from my parents. Since I'm making enough money to buy myself presents, all I want is good home cook meal when I visit my parents twice a year. Humorously, this year, I got some gift cards as Christmas presents, and they're not even the stores I shop at! A $100 gift card is $100-equivalent, it'd be hard for me to just throw them away. Thank goodness there is

eBay, I'm going to sell these useless gift cards and get some cash back!

Also, on MSN Money, there is an article about Trade In Those Unwanted Gift Cards for additional tips.

I was reading an e-mail newsletter from

DailyCandy NYC. It compiled a bunch of fun stats about the holidays.

Number of calories in

Text is FDA and Link is fda.gov

FDA-mandated fruitcake serving size of four ounces: 500

Average number of pounds gained between Thanksgiving and New Year’s: 1 (It just feels like 10.)

Number of movies and TV shows in production in

Text is New York and Link is newyork.sidewalk.com

New York in December: 133

Number of personal dramas in production over the holidays: 8

Average amount spent on holiday party outfit (including salon appointments): $272

Average time spent in outfit before eggnog spills, cigarette burns, etc.: 57 minutes

Number of sprigs of mistletoe in NYC holiday decorations: 1,045,232

Number of kisses from someone you actually like under said mistletoe: 0

Ratio of men to women in NYC: 1:1.11 (It just seems like 1:3 whenever there’s mistletoe around.)

Number of holiday cards sent through NYC postal system: 244,154,645

Projected number of gifts to be exchanged in New York City over the holiday season: 27,942,705

Average number of presents to be regifted: 2

Average number of gifts bought and then kept for self: 4

While checking personal

e-mail before leaving work today, I jumped to CNN Money to see if there is any funny news. And behold, there is a story about a family of 6 getting by on $150,000 a year. Before you say "these people are money foolish" or "things cost a lot nowadays", you can read the full story here.

I have to admit, depending on cost of living, a 6-figure income may not be much. For example, in the New York City metro, where $1,000-$1,500 for rent is typical, making $60,000 is getting-by. Making $100,000 is comfortable, but definitely not something people would say "you're set". It seems like $100,000 used to be the status of economic success, but $200,000 is the new $100,000 now.

Tell me your thoughts! Do you find it hard to believe a family with a six-figure income would have a hard time making ends meet? Or have you experienced that yourself?

Uh oh, it's middle of December already and I am just posting my November cash flow. Why have I been slacking? Well, first, I'm finally done with holiday shopping today, both online and offline! Second, work has been hectic. There're samples needed for a public relations (PR) event in Asia-Pacific region, yet circumstances
keep coming up to delay it and I'm the one needs to resolve it. I was truly in a panic mode yesterday.

Incoming (all figures are after-tax):

$3,668 salary
$800 housing
$374 misc
Total: $4,841

Outgoing:

$466 car payment, gas, tolls, parking
$101 triple play - cable, broadband, phone
$40 cell phone
$142 utilities
$2,145 housing
$211 student loan payment
$140 cash withdrawal
$125 charitable donation
$13 clothing
$237 dining out
$71 groceries
$7 household
* $635 insurance premium
$173 leisure - black Friday shopping
$20 gift - pet toy
$12 post office - stamps, packages
* $337 travel - plane tickets to Chicago (

Text is MDW and Link is www.fly.faa.gov/flyfaa/flyfaaindex.jsp?ARPT=MDW&p=0

MDW)
$91 misc - bars, clubs, dry clean
Total: $4,966

Net:

Difference: ($125)

:: Three months after starting a new job, my income and expenses are gradually stabilizing into more predictable numbers.

:: This month, November that is, the income is within 10% of previous month.

:: From expenses categories, it seems like about $300 on food (groceries and dining out) and I also eat out a lot more than cooking. Approximately half of the cash withdrawal went to eating out? It's hard to track when everyone just put in cash.

:: The one-time insurance premium would not be present for December, and the one-time trip cost would not be present, that's about $970 toward positive cashflow.

Although November ended slightly negative, December is looking good!

So far this month, I have reduced the total amounts by $244 on CC 1, $135 on CC 2, and $139 on CC 3. That's total of $518 reduction in credit card debt! Now I'm just looking forward to a big bonus . . .

I'm heading out to

Chicago (from EWR to MDW). Have an (early) Thanksgiving, everyone!

An idea from

TinapBeana, it's amazing that the minimum wage hasn't changed! When I was a freshman in college (back in 1998), I got paid $5.15 for doing clerical tasks at admissions office. That was hard enough to pay for expenses and everything else. 8 years have passed, I'm sure a lot of things have gone up in prices (just look at gasoline). I jump to Federal Reserve Bank for a quick calculation, the inflation-adjusted amount should be $6.40.

The state of New Jersey minimum wage is $7.15. What's the minimum wage in your state? How about tipped employees?

Hey, I'm back (with greater excitement)! It was a hectic week at work. People tried to pull a fast one on me because I'm new. My co-workers stepped in to pull me out of the corporate swamp. Also, I made changes to next year's benefits selection (I'll blog about that soon).

There is an interesting comparison of 1915, 1967, and 2006 in

National Geographic magazine to show some of the ways US life has changed. The US population passed the 300 million mark this year. In 1915, it reached 100 million, in 1967 200 million. Some stats come at no surprise, but a few are intriguing.

US Population
1915: 100 million
1967: 200 million
2006: 300 million

Foreign-born Population in US
1915: 13.5 million mostly from

Text is Germany and Link is www.amazon.com/gp/product/0743550471?ie=UTF8&tag=photojournaja-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=0743550471

Germany (that's 13.5%!)
1967: 9.7 million mostly from

Text is Italy and Link is http://www.amazon.com/gp/product/0743550439?ie=UTF8&tag=photojournaja-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=0743550439

Italy (only 4.85%)
2006: 34.3 million mostly from

Text is Mexico and Link is http://www.amazon.com/gp/product/1740594959?ie=UTF8&tag=photojournaja-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=1740594959

Mexico (that's 11.43%! Surprise, we actually don't have as many immigrants as before.)

Life Expectancy
1915: 54.5 years
1967: 70.5 years
2006: 77.8 years (No wonder retirement age keeps going up!)

Annual Earnings
1915: $687, $13,284 in 2005 dollars
1967: $5,974, $29,589 in 2005 dollars
2006: $34,926

Women Working
1915: 23%
1967: 41%
2006: 59%

Registered Vehicles
1915: 2.5 million
1967: 98.9 million
2006: 237.2 million (That's 79.07%, pretty much everyone has a car. Too many crazy drivers...)

A Gallon of Regular Gas
1915: $0.25, $5.01 in 2006 dollars
1967: $0.33, $2.00 in 2006 dollars
2006: $3.04 (Surprise, gas price is actually not too bad, especially since it has been coming down to about $2.)

A Gallon of Milk
1915: $0.36, $7.22 in 2006 dollars
1967: $1.03, $6.24 in 2006 dollars
2006: $3.00 (Surprise, I always thought milk price is going up. But it's not as high as before.)

Children per Household
1915: 1.90
1967: 1.41
2006: 0.94 (A lot of only child!)

There is an

article on MSN Money about how broke people in 20s are. On the other hand, people in 20s are innovators and entrepreneurs (think Google). It's true that my peers are burdened with debt, but I think we're also best positioned to become millionaires and create wealth.

It includes some benchmarks for comparison, I selected a few to measure myself. Please comment on my progress and show me how far you have come (my comments are in italic).

Median income $27,726. I'm above the median!

Median value of vehicle(s) $11,000.

Text is KBB and Link is kbb.com

KBB says it's $7,000, minus the car loan. Yikes, I'm below!

Median credit card debt balance $1,400. OMG, I'm at staggering $27,942!

Median amount of student loans owed $9,200. I seem to owe everyone money, $20,697.

Here are some advices:

Live cheaply as long as you can.

Get health insurance.

Shovel money into your retirement funds.

Take a chance.

Be strategic about debt.

Pay attention to your credit score.

(Read the full article here to see some statistics.)

Update: As Sun mentioned, I'm including other non-debt related info.

401(k) or IRA accounts 31.50%. Cool, I'm part of the group.

Median value of accounts $7,300. My 401k is $1,646, Rollover IRA is $15,621, Roth IRA is $9,208.

I read an

article on MSN Money about urban legends. Quite humorous!

Myth No. 1: You can float a check longer if you write in red ink. The theory is that a bank's equipment can't scan red ink, so it takes longer to process the check.

Myth No. 2: You don't have to pay

Text is income tax and Link is www.irs.gov/

income tax -- it's illegal. Only foreign income is subject to Uncle Sam's cut, the story runs, and there's a form you can file to exempt yourself. But no one will tell you about it.

Myth No. 3: I'm under 18, so I can't be held accountable for a debt. (Variation: Credit-card debts are wiped out when you turn 19.) Spring-breakers love to use this one to justify running up a cruise or resort-hotel bill on their credit cards.

Myth No. 4: My hotel key card has my credit-card information. The ramification is that you'd better clutch it tightly or a con will decode it and rack up a big bill.

Myth No. 5: Boycotting a few gasoline brands brings gas prices down. Poor

Text is Exxon and Link is www.exxon.com

Exxon and

Text is Mobil and Link is www.mobil.com

Mobil. They often show up as the bad guys in a mass e-mail urging Americans to avoid their pumps on a particular day.

Myth No. 6: It's better if you don't sign the back of your credit card. Some well-meaning pigeon decided one day this would protect him from identify theft.

Myth No. 7: You can make a pile of dough by helping a foreigner solve his money problems. "Hello, my name is unpronounceable, and I need to get money out of my country. Will you let me use your bank account?" is the gist of this e-mail plea.

Myth No. 8: You can now opt out of having credit bureaus give your information to anyone who asks. Just call

Text is (888) 567-8688 and Link is www.experian.com/preapproved_credit/opting_out.html

(888) 567-8688 and give them the Social Security numbers of everyone in the household in a single call, says the message. But hurry -- you only have 60 days to take advantage of this ability.

Myth No. 9: You can buy your way out of points on a speeding ticket. If you pay a bit more than your fine actually is, the state will send you a refund check for the difference.

Myth No. 10: Hotel

Text is Bibles and Link is www.biblegateway.com

Bibles often have $100 bills tucked into them. Heard the one that

Text is Gideons and Link is www.gideons.org

Gideons leave $100 bills in their hotel

Text is Bibles and Link is www.biblegateway.com

Bibles to reward folks who turn to the

Text is Good Book and Link is www.biblegateway.com

Good Book?

(Read the full article to learn why these are myths).

Small purchases can really add up. Don't believe me?

iTune songs = student loan payment
Purchasing 20 songs every month for a year totals $237.60.

Text is Wii and Link is wii.nintendo.com

Wii = rent
Those $50 video games don't play nice with budgets. One a month, and you're talking $600.

Pizza = groceries
Two $1.50 slices every Friday night for a year totals $156.

Fast food = phone bill
Addicted to Big Macs? At $2.90 once a month, that runs you about $34.80 a year. Now that's a lot of beef!

Nail polish = furniture
A $15 manicure 3 times a month chips $540 away from your budget every year.

Fancy dinner = car insurance
Dining out on the town once a week, at $20 a night, totals $1,040!

Extravagant Extras. Do you really need them?

HBO,

Text is AT&T and Link is att.com

AT&T,

Text is AOL and Link is aol.com

AOL.
Surprise! 58 channels, a dial tone and instant messenger are no longer free. Basic cable can run you $40 a month; the cost of just to have a cell phone is about $40 a month; and internet can range anywhere from $10 (crawling dial-up) to $40 (so-so broadband) a month. Some good advice, get an antenna, rely on your landline and check e-mail at your workplace during your lunch break.

Today's special.
Dining out is a common budget buster. Lunch should always be bagged, especially if you are really trying to save. Dinner out on the town should be reserved for special occasions or a once a week treat. If you must eat out, and have the choice between lunch and dinner, go with lunch. Dinner at a sit down restaurant can run you $15 to $25, almost double what you would normally spend on a light lunch. And as you know, pizza, burgers, and Friday night take-outs do add up.

New set of wheels.
Do you really need a brand new 2007 Jetta? Are heated leather seats, a moon roof, 6-CD changer, rear spoiler and rims really necessary? The average cost of a brand new car is about $20,000. Even if you put $5,000 down, that still leaves you with $13,000 to pay, usually over a 36 to 60 month period, plus interest. That's guaranteeing you at least a $200 to $350 payment a month! And a new car means a bigger bulkier insurance bill, especially if you live in New York/New Jersey area.

Plastic payments.
Credit card debt is an extra that you really want to avoid. It is easy to charge everything, get the bill, see a huge total, and only pay the $20 minimum payment. But interest will follow you! Down the road, a $20 sweater could cost you upwards of $50, depending on how long it takes you to pay off your bill. Solid advice: choose paper of plastic every time.

Name brands.
If you are an "image is everything" kind of thinker, get ready to spend a lot of unnecessary money. Shop for clothes at your favorite stores off season for the best deals (that means "sale"); even better, check out high-quality consignment shops or stores such as Marshall's or TJ Maxx for name brands at half the price. Furniture is another big buck eater. Spruce up a flea market find or hunt for a sofa at Goodwill. Chances are your tastes will change, so why drop hundreds or thousands on trendy finds that you'll only junk when you buy a house? Only buy what you love or need.

Bills To Bank On. Why so many?

A roof over your head.
Rent is the big one, but it can be the most flexible. In this part of

Jersey, bank on paying a lot more, $1,00 and up, for a lot less space. In the area further from the city, rent may start as low as $800. Keep in mind that a roommate can lighten the load and apartment complexes with extras are more expensive.

Bachelor's degree.
Six months out of college, there will be the ever popular school loan. Sit down and figure out what you're expected to pay every month and see if it is possible to double-up on payments.

Food, glorious food.
Usually $100 to $150 per month is plenty, but keep in mind that meat, medicine, cleaning supplies and beauty products add up quick. Coupons and food store savings cards can help you save.

Getting from point A to B
Transportation by car, bus or subway can really drive the bills home. Settle on a reliable used car that eats up little gas and doesn't require monthly payments. Budget in the cost of insurance, maintenance and gas. If you have to take public transportation, plan ahead and include the cost in your budget.

Insure.
Homeowner insurance is good for renters because it protects your belongings (even clothes and CDs!) from theft, fire and water damage. A basic policy for someone with less than $15,000 worth of belongings can range from $50 to $75 for the year.

Is it cold in here?
Gas, heat, hot water, electricity, sewage and trash are basic utilities, with heat being the expensive in Jersey. Some are covered in the rent, so be sure you know what's included. A place that's only $800 a month could cost you $1,000 or more after utilities. Ask other renters in your building what they average a month and work that into your budget.

Yesterday, I had a chance to talk to a group of new college graduates at work. It was interesting to hear the enthusiasm and confusion (about money). While it might be hard to budget all of your money, it does help to monitor spending and put a set amount of it away each month. Why? Because if there is one thing life after graduation will bring, it's bills, bills, and more bills!

Budgeting isn't very glamorous, but that first paycheck . . . it's practically triple the work-study pay at college. When payday rolls around, it's easy to get distracted and go crazy with the spending. The cash that was supposed to be saved for rent, insurance, and those dreaded college loans, can disappear fast. A new car here, a plasma HDTV there and before you know it, the bank is broke!

I'm going to prepare some money guides, based on my little talk for new college graduates. Stay tuned!

On Sunday evening, I took a little time and tallied up all my incomes and expenses.

Incoming (all figures are after-tax):

$3,668 salary
$800 housing
$110 misc
Total: $4,578

Outgoing:

$488 car payment, gas, tolls, parking
$101 cable, broadband, phone
$45 cell phone
$54 utilities
$2,145 housing
$200 student loan
$180 cash withdrawal
$100 charitable donation
$175 clothing
$174 dining out
$233 groceries
$75 household
$290 car insurance
$73 credit card interest
Total: $4,350

Net:

Differentce: $228 => credit card payment?

With my living arrangement right now, I write checks for $2,145 each month while getting $800 paid back. In short, I spent $1,345 on housing each month. The $290 car insurance is quarterly, so it won't show next month. The $175 clothing shouldn't be there next month :-)

In November, I look forward to cutting back on dining out, clothing, and random cash withdrawal. Good news, no black hole this month!

A few days ago, I read

eFIPO's post on "Generation Y Not". It was somewhat shocking and amusing. It's true that the Generation Y (people born in 1972-1981 1978-2000, age 6 to 28) is in deep debt, having less net worth, and facing super-high housing costs. But at the same time, the Generation Y still have the time to make changes. Better yet, the high debt level is met with low interest rate. Moreover, the home ownership for 35-or-below is 43%, higher than 37% of 10 years ago.

I ran into Feed the Pig that intuitively teaches people how to save money. Personally, I think latte factor is not practically. Here are some recommendations I collected from Feed the Pig:

Plan for retirement early: Start saving at 24 will give you an edge over someone starting at 35. Save $4,000 per year and invest in

Text is IRA and Link is service.bfast.com/bfast/click?bfmid=29150849&siteid=41637482&bfpage=home

IRA . The amount will grow to $449,000. If you wait until 35 to start, it will only grow to $232,000.

Prioritize goals: Save from various sources, spend it on something your really want, say a high-class honeymoon or a

Text is 42" plasma TV and Link is www.amazon.com/gp/product/B000F6SR0O?ie=UTF8&tag=photojournaja-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=B000F6SR0O

42" plasma TV. When you have a goal, it's easier to make sacrifice on minor things.

24-hour wait period: Commercials nowadays are well-designed, they persuade you into buying things you often don't need. When you want to buy something you're not sure about, give yourself 24 hours to think over.

Eliminate credit card debt: Enough said. Start from high to low interest rate and pay it back ASAP, even if you need to do overtime or shop at dollar-store.

Buy a house (townhouse, condo): Nothing beats investing in your own residence. Certain markets are over-prices, so wait for the right buyer's market.

Learn to invest: The difference between 6% and 10% return on investing $200 per month can be $500,000 in 35 years.

I'm planning ahead! I'm finalizing my cash flow for October and writing about The Money Book for the Young, Fabulous & Broke by Suze Orman.

Job change and relocation often add more expenses (or sometimes less). Since I started at the new job, I find myself spending more on housing and food. Housing is obviously more in this part of

Jersey. I also eat out more.

Well, like yummy saves recommended, I'm putting some efforts to save a few dollars a day:

Save $3.06 (2 x $1.53) on Starbucks coffee
:: I usually drink 2 cups of coffee. Since there is decent free coffee at work, no need to buy!

Save $2 on gym membership
:: Instead of $60/mo on gym membership, I use the free gym (although small, but it has tread mill and free weights I need) at work.

Any tips on effortless ways to save a little here and there?

Sometimes a retirement fund is not enough, you need to save to emergencies and luxuries, too. There is a

MSN Money article about 6 (worthless) excuses for not saving money (my thoughts are in italic):

* Excuse 1: I don't make enough. No kidding, I think I'm underpaid. But I also find that the more I make, the more I spend. Someone once said, "it's not how much you make, it's how much you keep".

* Excuse 2: I'll get around to it later. Procrastination. If you can't save now, how can you save in the future [with house, family, kids, aging parents]?

* Excuse 3: I deserve a little luxury in my life. I struggle with this. "Wants" can be strong.

* Excuse 4: Someone else will take care of it. Hahaha, I think I figure out that

Text is Social Security and Link is ssa.gov

Social Security won't be around when I retire.

* Excuse 5: I am saving through my 401(k). You know, 6% contribution plus 4.5% matching. Is it enough?

* Excuse 6: This item or service will pay for itself. Oh my gosh, this is definitely a struggle. I tell myself that "I'm not buying, I'm investing in this thing."

Tonight I read an

article on Newsweek magazine on tips to get out of debt. Some are cookie-cutter lines from personal finance books, while some have practical values (whether you do it or not is another day's discussion):

* Pay it Down: Work overtime, take on a second job and devote that income to paying down debt. Cash in CDs, home equity loans, loans against retirement.

* Cut Spending: Cook at home more often, brown bag it at work and be creative about gifts. If you have the biggest cable package offered, cut back to a lesser plan. Same for cell phones, Internet.

* Track Your Expenses: This is the only way to have a true picture of where your money goes. Once you see where you are, it might be helpful to have a family meeting to decide how you want to spend your hard-earned dollars. A joint effort yields a greater result, so let the kids in on things. Reviewing how you spend your money allows you to set priorities and results in a freedom, putting you in charge.

* Pay Cash: This results in a significant savings, both in terms of what you purchase, but also in not paying interest on your purchases. When you're out of money, you simply stop buying!

* Around the House: Adjust the thermostat by only two degrees. Experts say you can reduce your heating and cooling bills by 5 to 10 percent by simply moving the thermostat two degrees. Also empty your car’s trunk & fill the tires. The heavier your vehicle, the harder the engine has to work to push it around town. Correct air pressure in your tires will improve your gas mileage by about 10 percent.

* Check Your Withholdings: Speak to your human resources department at work and confirm that you have the proper number of withholding allowances on your W4. If you routinely get a federal tax refund, you're shorting yourself each month. The average refund for 2005 was well over $2,000.

* Have an Insurance Check-Up: You don't want to be over- or under-insured, but if you haven't compared rates in a while, it's time to do so. Also, inquire about discounts for good driving, security systems, or putting all of your insurance with one carrier.

* Don't Impulse Shop: If you see something you want, don't buy it on the spot. Later, if you still want it and you're sure you can afford it, then go ahead.

* Have a Garage Sale: If you are paying for a storage building, go through those items and get rid of what you can. Then, do the same at home. You'll make money off of the items you don't use anyway, and you'll save the cost of storage.

* Power Pay Your Creditors: Some people find that paying off small bills one at a time gives them a sense of accomplishment. When one bill is paid in full, take the amount you were paying to that creditor and start paying the next largest bill. Keep working your way up the ladder of bills. When you get to the largest bills, you've built up a significant payment and can likely knock off that large debt quickly. Meanwhile, be sure to keep paying at least the minimum on everything.

Since I started the

Money Crunch blog, I learned that one important thing is to manage the cash flow. I spent some time and tracked down my incoming cash and expenses for September. I hope this would give me a more revealing picture of my finances. I welcome your suggestions and comments as well!

Incoming (all figures are after-tax):

$4,200 signing bonus
$5,769 salary and misc
Total: $9,969

Outgoing:

$645 Automobile - car payment, gas, tolls, parking
$2,492 Bills - housing, utilities, cell phone
$560 Cash withdrawal - probably goes to dining out
$171 Clothing
$150 Dining out
$262 Groceries
$141 Household - things to make the place clean and tidy
$402 Leisure
$201 Vacation - plane tickets, hotel to a wedding in

Text is Austin and Link is austin360.com

Austin,

Text is Texas and Link is traveltex.com

Texas
$900 Misc - black hole
Total: $5,924

The numbers are not typical, since it includes:
* one-time signing bonus (after scary 40% combined federal and NYS tax rates)
* one-time security deposit
* one-time moving charges

I expect income to stabilize around $4,500. Since I get paid bi-weekly, some months have 2, some have 3 paychecks. I expect expense to drop to about $3,500, well, assuming I'll eat out and play less.

My goal is to put $1,000 to $1,600 into savings each month!

I'm going to tally up the income & expenses for month of October (October cash flow), then post it here soon. In the mean time, I'm going to write a bit about financial things. Stay tuned!

Hello! My name is Jennifer Taylor and this is an adventure in financial challenge.

One day, I was looking at a deal finder web site, I stumbled upon a

blog about one's journey toward becoming a millionaire. It was quite interesting. Through a bunch of linking and clicking, I found Saving Advice.

I thought, wouldn't it be nice that I write about my adventure to make (work sucks) and spend (the unstoppable spree at BR) money?

Thanks for visiting and keep me on track!