Gather Little by Little - Personal Finance with a Christian Perspective » Guest Posts http://www.gatherlittlebylittle.com Proverbs 13:11 - "...he who gathers money little by little makes it grow." Fri, 20 Nov 2009 11:00:36 +0000 en hourly 1 Best Free Events to Enjoy Almost Anywhere http://www.gatherlittlebylittle.com/2009/06/best-free-events-for-kids/ http://www.gatherlittlebylittle.com/2009/06/best-free-events-for-kids/#comments Fri, 26 Jun 2009 09:43:51 +0000 glblguy http://www.gatherlittlebylittle.com/?p=1699 Best Free Events for Kids this summer

Kids are famous for complaining to their parents that they are bored or that there’s nothing to do. A lot of adults who have recently switched over to a frugal lifestyle are starting to sound just like those kids. They simply don’t know what to do to entertain themselves if it doesn’t involve spending any money. Well, just like your parents told you when you were a bored kid, there’s plenty to do if you get creative.

Here are some of the best free events for kids that you can enjoy in almost any place that you might live:

  • Outdoor adventures. Hiking, camping, picnicking and reading in the grass are all activities that don’t cost you anything. They can be done just about anywhere especially during the summer. If you live near a lake, river or national park then you have even more options.
  • Other outdoor events. Nearly every small town offers planned outdoor events for the community. Outdoor movie screenings, plays in the park, Farmers’ Markets, craft fairs, youth sports events and concerts are all examples of things that you might find offered for free in your area.
  • Arts and cultural events. There are a lot of free events that are great if you’re interested in arts, literature or learning in general. Lectures at the local library, open mic nights in your town’s coffee shop and opening receptions at art galleries are all examples of free events you might have fun at. If your town is too small to offer these things, check in the town closest to you and plan an inexpensive day trip.
  • Window shopping and people watching. Sometimes it’s fun just to get out and be around other people. Browse through antique stores or malls without buying anything. Sit in a public space and make up stories in your mind about the people that you see there. Daydreaming doesn’t cost a dime.
  • Get-togethers with loved ones. Host a potluck dinner. Have a home movie viewing at your house. Put together an impromptu game of touch football in your backyard. You can have a great time with the people you love and you don’t have to spend any money.

Stop complaining that you’re bored because you don’t have money to spend! You don’t have to spend money to have a good time. Look for free events in your area. Just get off the couch and get creative. You’ll be surprised by how much fun you might have.

Guest article by Kathryn Vercillo. Kathryn is a writer for Promotionalcodes.org.uk which gives away free voucher code deals (like this Debenhams promotional code) and also publishes money saving tips.

Photo by: pawpaw67

Blog Traffic Exchange Related Posts ]]> http://www.gatherlittlebylittle.com/2009/06/best-free-events-for-kids/feed/ 5 Reverse Mortgages: Destined to be the Next Subprime Meltdown? http://www.gatherlittlebylittle.com/2009/06/reverse-mortgages-destined-to-be-the-next-subprime-meltdown/ http://www.gatherlittlebylittle.com/2009/06/reverse-mortgages-destined-to-be-the-next-subprime-meltdown/#comments Sat, 13 Jun 2009 12:09:18 +0000 glblguy http://www.gatherlittlebylittle.com/?p=1672 senior-citizens

Reverse mortgages are suddenly coming under fire. But these unique loans remain an effective and at times essential financial option for seniors across the country – and they’re proving more popular than ever.

One of the federal government’s banking regulators this week warned that reverse mortgages may soon need greater oversight and scrutiny. John C. Dugan, Comptroller of the Currency, compared reverse mortgages in part to subprime mortgages, claiming some of their similar risks should “set off alarm bells.”

In short, a reverse mortgage allows homeowners to convert parts of the equity in their home into cash payments that can be taken as a lump sum, in monthly installments or through a line of credit. These mortgages are for senior citizens who either own their home or have a low mortgage balance. The Federal Housing Administration insures about 90 percent of all reverse mortgages in the United States.

That penetration rate that worries regulators like Dugan, who fear taxpayers may wind up on the hook because of the risks associated with reverse mortgages. Dugan’s office issued a press release that spelled out some of his concerns, which included “the ability of consumers to access their home equity through immediate and large lump sum payments.”

He also expressed concern that seniors can be “particularly vulnerable to coercive sales of annuity and long-term care insurance products that are expensive and may not be appropriate to their needs.”

While these concerns are certainly valid, reverse mortgages are on the rise. Federally insured reverse mortgages increased almost 20 percent in March and April, the Wall Street Journal reported this week. The U.S. government backed 11,660 reverse mortgages in April, its highest monthly total ever.

Much of the increase is linked to the down market, as senior citizens continue to search for ways to keep their retirement savings intact.

This was a guest post by Brandon Laughridge.  Brandon is a mortgage blogger with Mortgage Loan Place. MLP specializes in educating consumers about Home Loans and FHA Loans.  If you would be interested in writing a guest post for Gather Little by Little, feel free to contact me.

Blog Traffic Exchange Related Posts ]]> http://www.gatherlittlebylittle.com/2009/06/reverse-mortgages-destined-to-be-the-next-subprime-meltdown/feed/ 5 Saving Pennies by the Pound: My Weight Watchers-Inspired Money Diet http://www.gatherlittlebylittle.com/2009/05/saving-pennies-by-the-pound-my-weight-watchers-inspired-money-diet/ http://www.gatherlittlebylittle.com/2009/05/saving-pennies-by-the-pound-my-weight-watchers-inspired-money-diet/#comments Sat, 30 May 2009 13:21:29 +0000 glblguy http://www.gatherlittlebylittle.com/?p=1635 This guest post is by Amanda Steinberg of DailyWorth.com. DailyWorth offers daily personal finance tips for women by email.

I’m a Weight Watchers master. In 2003, I was 5′8″ and 160 pounds — not exactly ideal for a 25-year-old single girl living in Manhattan. I spent three (!) years on Weight Watchers, and for two years, failed repeatedly. I obsessed over every drop of salad dressing and kernel of popcorn only to learn at my weekly meeting weigh-in that I’d gained half a pound. I quit multiple times, but would return months later with new resolve. Finally, in my third year, something clicked. I dropped thirty pounds in just six months.

To this day – and two babies later – I can still lose weight when I want to by altering certain habits. Here’s what I do, and how I’m now using the same rules to shave pounds off of my spending:

What I learned from Weight Watchers: How I’ve applied it to my money habits:
On Weight Watchers, you’re allotted a daily number of “points” (like calories). When you run out of points for a day, you have to resort to zero-point foods like carrots, or risk not losing weight.
 Determine after fixed expenses (rent, phone, etc) how much spare cash you have per day. Plan for days when you know you’ll exceed your daily budget (night out at the movies) and spend less on other days.
Plan your meals every morning. Before you even make your breakfast, visualize each meal so that you don’t break for a cheese steak out of convenience. Plan your spending every morning. Today, I need to: meet Cristina for coffee, pick up dry-cleaning, buy a gift for baby-shower. Ask, can I make it work inside of my daily allotment? Adjust accordingly.
If you trip going down the stairs, get up and keep walking. Don’t throw yourself down the rest of the stairs. (This metaphor got me through many tough days on Weight Watchers) If you spend more than you budgeted, don’t burn your budget and go on spending. Acknowledge that you fell off the wagon, get back on, and proceed.
When eating out, order two appetizers, not an appetizer and an entree’. Two appetizers are generally more than enough food to qualify as a healthy meal. When eating out, order two appetizers. Save 30% on your meal!
Don’t totally deprive yourself, or you’ll binge. Don’t deny yourself small, frivolous gifts, as long as you buy them consciously.

I’ve learned that, for me, diets of any form work better when I can track progress in my head. That’s why I like simple rules I can repeat daily. If a system is too complicated to track, it’s not a good system.

Blog Traffic Exchange Related Posts ]]> http://www.gatherlittlebylittle.com/2009/05/saving-pennies-by-the-pound-my-weight-watchers-inspired-money-diet/feed/ 4 Help Your Local Church http://www.gatherlittlebylittle.com/2009/05/help-your-local-church/ http://www.gatherlittlebylittle.com/2009/05/help-your-local-church/#comments Wed, 13 May 2009 09:42:07 +0000 glblguy http://www.gatherlittlebylittle.com/?p=1586 camp

This is a guest post from the blogger behind Studenomics a personal finance blog that offers common sense advice for college students and recent graduates. Studenomics is the ultimate resource for young people looking for advice on how to survive this current recession, grow their careers, manage their finances, and still be able to enjoy the weekends.

How many times in the last 8 months have you used the excuse, “I would attend church today if I didn’t have so much homework.” Well guess what? You can longer use this excuse for not attending church since college is out for the summer. I’m realistic and I know many college students won’t read the Bible daily or attend church services regularly, but there are many ways you could help your local church.

  • Volunteer at your church. If you find that you can’t sit through a one hour service then you could try providing your services to the church for free. There is so much going on at every church that any help is greatly appreciated. I have helped out in the past by serving food and offering my time to do some yard maintenance work (what can I say I enjoy cutting grass). The point here is that an hour may be nothing to you but it would be really beneficial to your church.
  • Work as a church camp counselor. Not only is this an excellent opportunity to meet some great people but you also have the privilege of giving back to your community. We were all little kids at one point and I’m sure we were sent to some of the free camps offered by our local churches. This is your chance to return the favor and do some good for your community.  Even if you help out once a week it will make at least a small difference in someone’s life.
  • Pilgrimage. Yes they actually exist in real life. In fact my cousin goes on a pilgrimage every summer. I have always personally wanted to try this but it is impossible for me to get the time off from work that time of year. It’s approximately 2 weeks in duration and they walk about 6 hours a day for those 2 weeks until they arrive at their destination.

We all want to have a productive summer but we just don’t know where to start.  Here’s a little secret: you can start by reading The Summer of George- The Most Productive Summer a College Student Will Ever Have:

Blog Traffic Exchange Related Posts ]]> http://www.gatherlittlebylittle.com/2009/05/help-your-local-church/feed/ 7 Delay Gratification To Succeed http://www.gatherlittlebylittle.com/2009/04/delayed-gratification-2/ http://www.gatherlittlebylittle.com/2009/04/delayed-gratification-2/#comments Wed, 15 Apr 2009 12:50:31 +0000 glblguy http://www.gatherlittlebylittle.com/?p=1516 drivethru

In today’s busy and hurried society, we want everything now.  Think about some of the “instant” things we have in life.

On-demand TV programming.  30-minute 30-second meals.  Instant messengers. Drive-thru options for just about any store (because who wants to get out of their car for anything?!).  The list goes on and on.

We want what we want, and we want it now.

Welcome to America.

But if we were to go through each of our closets, dig under our beds, or browse around our attics, we would find plenty of items that would fall into the category: “I just had to have it.”

Except that you didn’t.  You used it or wore it once or twice, and it has collected dust ever since then.

Delaying gratification isn’t just a money principle, but it’s a life principle.  Think about it.  Which tastes better?  Something cooked in the microwave or the crock-pot?  Hopefully you said the crock-pot as you pull your frozen pizza from the microwave!

But how do you get a teenager to understand this?

  • Lead By Example – Teenagers watch to see if you’re living out what you’re telling them to do. If you always have to have the latest and greatest and never delay gratification, don’t expect your child to do it either. Here’s a good question…are you smoking what you’re selling? (Can he say that!?)
  • Just Say No – When your teen comes to you asking for $50 for that new outfit, an advance on their allowance for the new iPod, or wondering if they can sell their younger sister on Craigslist for some extra cash, just say NO! I’m sure they’ll kick and scream and foam at the mouth, but they will also begin to realize having that new item isn’t that important.
  • Implement A Waiting Period – You may have heard this before, but anytime you’re making a significant purchase, give yourself a few days to think it through and prevent yourself from buying on impulse. When you leave the store and wait a few days, it will cause you to think clearer and use better judgment. Teach your teen to wait for it.

12 Things Every Teenager Needs To Know About Money (And How To Teach Them) is a community blog experience.  This post is only one of the 12 points in the series so to view the other 11, please visit the list of links below.  Here are the rest of the articles in the “12 Things Every Teenager Needs To Know About Money (And How To Teach Them)” series:

This is a guest post from Grant Baldwin, the author of Reality Check, a book about helping students transition into the real world.  His new website, BrokePiggy.com, answers questions from teenagers about personal finance, savings, and all things money.

Photo credit: TheTruthAbout…

Blog Traffic Exchange Related Posts ]]> http://www.gatherlittlebylittle.com/2009/04/delayed-gratification-2/feed/ 14 Top Ways To Lower Health Insurance Premiums http://www.gatherlittlebylittle.com/2009/04/lower-health-insurance-premiums/ http://www.gatherlittlebylittle.com/2009/04/lower-health-insurance-premiums/#comments Sat, 11 Apr 2009 12:42:38 +0000 glblguy http://www.gatherlittlebylittle.com/?p=1511 doctor

With increasing budget restraints, I have been struggling with health insurance premiums just like many others in the current economic situation. However, being in the business, I am considering some options to lower my rates while making sure I still have the best coverage when I need it.

Although it is more difficult, it is still possible to find affordable health insurance, you just have to know what to look for! As you probably know, your rates for individual health insurance will depend upon many factors. We need to examine these to determine what we can control.

Health Insurance Rates Are Set By:

  • Your Zip Code. Yes, where you live will affect your premiums. Insurers look at the cost of medical services in your city, town, or rural area, and then set base rates accordingly.
  • Your Age. Many insurers will group people by age, or by age band. For instance, the base rates for a 30-34 year old will be lower than those for a 50-54 yea old. In the US, we middle aged people, between 50 and 64 (Medicare Age), can really struggle with health insurance premiums.
  • Your Health Habits. Overweight people, generally have higher premiums than others, the same goes for smokers compared to non-smokers. These factors greatly increase the chances of an expensive doctor’s bill down the road and thus raises the insurance company’s risk of insuring you.
  • Health Conditions. Even controlled health problems, like high blood pressure, may cause insurers to increase rates over  people who have never been diagnosed with those health conditions.
  • Type of Plan. If you buy a PPO, where the insurer can encourage you to use their cost-saving network, your rates may be lower than if you buy a policy where you can get their best coverage with any medical provider.
  • Deductible and Copays. You know that, given the same plan, a $500 yearly deductible major medical plan will cost a lot more than a $2,500 yearly deductible policy! Likewise, a plan with a $10 doctor’s office visit copay will cost more than a plan with a $40 copay, or of course, a plan that does not offer a copay.
  • Yearly Maximums. Be careful of this, but some policies set a yearly maximum on some, or all, medical services that is fairly low. For instance, outpatient services may be set at $10,000 a year. I would caution against using this tactic to lower premiums though. It may be fine if you only need to use your insurance to cover a minor ER visit, but awful if a family member needs outpatient chemotherapy for cancer! And that’s why you really buy health insurance, for large expenses, isn’t it?

What Can You Do To Lower Health Insurance Premiums?

Consider an H.S.A Major Medical Plan.

Health Savings Account plans have many benefits, and they work out well for some people. You buy a higher deductible major medical plan, which should be cheaper. The plan works with a tax advantaged savings account that can be used to pay for many medical services that are not covered, or that cost less than the higher deductible amount.

These plans tend to work well for people who are disciplined savers, and who appreciate the ability to deduct their contributions to the savings plan. However, people who cannot make a consistent contribution to to the savings plan, probably won’t be satisfied with them.

Advantages of an H.S.A

  • Higher deductibles usually mean easier underwriting and lower premium.
  • Tax advantaged savings accounts can cover deductibles and pay for non major medical services like dental and vision.
  • Savings balances roll over if they are not used every year.
  • Some savings accounts pay competitive interest rates on the balance.
  • The savings account balance can be withdrawn at retirement (Medicare Age).
  • Even if the covered person has to pay more towards the deductible, they should still get the benefit of some policy’s negotiated prices. This is an advantage over not having coverage at all.

Disadvantages of an H.S.A

If no money gets contributed to the savings account, a covered person would have a higher deductible to pay before the insurance company will cover medical services! In these cases, a traditional PPO or HMO may be a better option.

What if a Health Savings Account Medical Plan Won’t Work Out?

If you don’t think this type of plan will be a good option for your family, you may consider a couple of options for lowering your traditional health insurance premiums.

  • Can you do without a doctor’s office copay? This may sound like heresy, but those copays can add 25% to your premiums and may not save you that much money. If the negotiated fee for a network doctor is only $100, and you do not see a doctor that often, you might consider dropping this benefit.
  • Can you raise your yearly deductible? The premium difference between a $500 deductible and a $2,000 deductible should save you hundreds of dollars every year. Of course, it would be a good idea to set aside some of your savings in case you do need to pay a deductible.

Shop Around For Affordable Health Insurance

Insurance companies strive to remain competitive in the marketplace, and they introduce new plans all of the time. You may be able to find a more affordable major medical policy from another insurer.  This can be done by talking with local agencies, or more simply online, and then comparing coverage with cost to make an educated decision.

If you are shopping around for a new policy’, do not cancel your old policy, though, until you are sure that your new plan has accepted you, and you have a policy in your hand!

This guest post was written by one of the founders of 247QuoteUs.com , Barbara Waltz. 247QuoteUs is a resource blog and insurance quote comparison guide.

Photo by: Lisa Brewster

Blog Traffic Exchange Related Posts ]]> http://www.gatherlittlebylittle.com/2009/04/lower-health-insurance-premiums/feed/ 4 3 steps to smart shipping spendings http://www.gatherlittlebylittle.com/2009/03/3-steps-to-smart-shipping-spendings/ http://www.gatherlittlebylittle.com/2009/03/3-steps-to-smart-shipping-spendings/#comments Sat, 14 Mar 2009 09:00:12 +0000 glblguy http://www.gatherlittlebylittle.com/?p=1444 In today’s climate of bad economy and higher fuel prices it is natural we need to save on everything. Online shopping offers us quite a number of cool opportunities – one of them is to save on gas by shopping from home and getting our purchases delivered to our front door. The following hacks will get you one step further: not only will they allow you to save money on fuel, they will also help you save on the transportation service.

Be Smart: Look for Free or Discounted Shipping Deals

There are a number of aggregating shipping deals across multiple retailers. My personal favorite is FreeShipping.org. I like it for a few reasons: it is free and clean. The site provides exhaustive information for you to decide if the offer suits your needs. You can navigate it using the list of categories (to the right), via the merchant brand names (with help of the drop-down menus) and using the search option (it will search by the retailer’s name).

If you are a frequent shopper, you can also subscribe to their mailing list and receive weekly deals to your email box.

Each page dedicated to a separate retailer contains comprehensive information on the deal: the coupon code, expiration date and the conditions to qualify. Note: the site lists free shipping offers without conditions (that is, your purchase will be shipped to you for free no matter what you buy) as well free shipping deals with minimum purchase (your purchase will be delivered for free if your order total is over the set minimum) and free shipping deals on the selected items. Besides the deal details, you will also be able to see the merchant’s official shipping and return policies. Here is the exampe of the retailer’s page – Macy’s coupons:

Be Picky: Let Shipping Providers Bid for Your Package and Choose the One That Fits

UShip is an online auction that “lets customers choose the Transportation Service Provider who will give them the best service at the best price”. You will be able to register there for free and choose the lowest possible price for your package to be delivered. The sign-up process is fast and smooth. Immediately after the sign-up you will be offered to specify the details of your package. You will be able to provide the exhaustive information of it to save time on further discussion with the service provider – you can even upload a photo and add comments.

The auction is eBay-style meaning you can view the service provider’s ratings and reviews and thus avoid any sort of scam.

You can also link your eBay account to your UShip account to get your purchased shipped with ease.

Be Prepared: Estimate Your Shipping Charges Beforehand

Two online calculators will allow you to estimate the shipping cost and also compare it throughout major service providers. One is ShippingSideKick. It compares shipping rates for USPS, UPS, FedEx and DHL.

ShipGooder is another one. Transportation services listed include the U.S. Postal Service, FedEx, DHL, Purolator, Canada Post and various local couriers. You can choose the table view: to compare either by days or couriers. You are also able to save the report in Excel, print it or email it to a friend:

The guest post by Ann Smarty – check out her SEO Consulting blog or follow her on Twitter.

Blog Traffic Exchange Related Posts ]]> http://www.gatherlittlebylittle.com/2009/03/3-steps-to-smart-shipping-spendings/feed/ 2 How California Changed Our Budget http://www.gatherlittlebylittle.com/2009/03/how-california-changed-our-budget/ http://www.gatherlittlebylittle.com/2009/03/how-california-changed-our-budget/#comments Sat, 07 Mar 2009 10:00:22 +0000 glblguy http://www.gatherlittlebylittle.com/?p=1430 la

The following is a guest from Shawna who writes at Two Working Parents.  I’ve been reading Shawna’s site for a few months now and enjoy reading her blog and invited her to write a guest post for me.  She graciously accepted.  If you enjoy the article, make sure you head over and subscribe to Two Working Parents.

For all of our lives, my husband, children, and I had lived in Michigan.  For the last 6 years, we lived in the Detroit Metro area.  If you’ve ever been to this area, you know that there is nothing to do, housing is relatively inexpensive, and winters are brutal.  Despite the fact that we grew up dealing with winter, my husband and I both hate snow and cold.  So, last year, we decided to do something about it.  We vowed that 2008 would be the last winter we would spend in the frozen tundra.  Then, I was blessed with a job transfer, and we moved to sunny California.

We now live in a suburb of Los Angeles.  We love where we live.  We are close enough to the city and ocean to go on a whim, and far enough away to feel safe and comfortable.  We are also within a few hours of snow, so if we got nostalgic or something, we could see that too.

Shock to the Pocketbook

Of course, the problem is that California is EXPENSIVE!  While my salary is higher than it was in Michigan, it barely covers the cost of living increase.  There are obviously some changes that we had to make to our budget, and some were more unpleasant than others.  The biggest, longest lasting, and least painful thing we did, though, was dropping our cable service.

Now, we have two kids and we are all big TV watchers, so this was a tough decision to make.  It took us about 3 months before we finally came to terms with the fact that we needed to do it, and another few weeks before it actually happened.  We cut cable in November, and honestly, rarely miss it.

Hallelujah Hulu!

We went out and purchased an expensive, top of the line antenna for the TV so that we could get the basic channels.  Turns out, because we are in a valley, we can’t get reception on an antenna or with the digital convertor box.  This was a bit of a disappointment, but we were determined.

I had read about Hulu.com on various PF blogs, and so I looked it up.  We can watch all of our favorite shows (with the exception of American Idol and So You Think You Can Dance….anyone know where I can get these???) online!  We did not cut our internet service because we both use it extensively, so this seemed like a perfect solution…except no one wants to watch TV on their computer.

Since we had to return the antenna anyway, we decided to do some research and see if we could hook our TV up to the computer so that we didn’t have to squint at the computer monitor from across the room.  Turns out, all we needed was a $15 S-Video cable.  My husband hooked the TV up as a second monitor, we use our computer speakers, and now we watch almost all of our favorite shows on Hulu.  The ones we can’t watch on Hulu, we can usually get on the network websites.  It is not any different than having a DVR.

What About The Kids?

A lot of the shows that the kids watch are not on Hulu.  We started using Nickelodeon.com to watch Spongebob Squarepants and iCarly, but that was a hassle.  The website is not as user friendly as Hulu.  So, for Christmas, we bought a ton of DVDs for the kids (did anyone notice how cheap DVDs were last Christmas?).  But, there is one more thing that really helps us with kids shows.

My husband started working at a video store!  He started working there part-time, but is now an Assistant Manager and is full-time.  The best perk of this job is that he is able to rent up to 5 movies per week…for FREE!  We get a few movies for ourselves and a few for the kids.  It works out great.  Of course, not everyone has the free time to get a second job, but if you are trying to cut your entertainment budget, this is an idea.

Can’t Wait For Summer

As happy as we are with all of our entertainment options, we are still looking forward to summer.  We really enjoy taking walks as a family, going for hikes, and going to the pool.  Being in Southern California, we could do this now, but because our daughter is in school, it’s tough to fit it in during the week, and our weekends are full with errands and whatnot.  I’m really looking forward to other free entertainment…the kind that doesn’t involve a big bowl of popcorn.

Photo by: Marshall Astor

Blog Traffic Exchange Related Posts ]]> http://www.gatherlittlebylittle.com/2009/03/how-california-changed-our-budget/feed/ 10 5 dollars really adds up! http://www.gatherlittlebylittle.com/2009/02/5-dollars-adds-up/ http://www.gatherlittlebylittle.com/2009/02/5-dollars-adds-up/#comments Sat, 28 Feb 2009 10:00:51 +0000 glblguy http://www.gatherlittlebylittle.com/?p=1410 Cash

I read about a woman who saved her $5 bills for 3 years and saved $12,000! I thought it would be cool to conduct my own experiment & see what I could do for the month of December. Up until this decision, I didn’t use a lot of cash, mostly my debit card, but I had wanted to transition over to cash (for more accountability) anyway, so this was the perfect time. I took out my ‘play’ money at the beginning of December and went on with life.

This ‘play’ money is budgeted every month. I use it for special treats I may want for the office, eating out and other little things I may want or need during the month. More often than not, I would not ‘want’ it so much when it actually came down to buying it. My play money amount is $200 per month.

I can’t tell you how many times I would break a $20 and wait in anticipation to see what I received back. It became the funniest game to me. More often than not, I would get 2 and sometimes 3, $5’s back. I would just laugh and into the envelope they would go. One time, I was going to pick something up at the store & my mom asked me to pick something up for her and handed me 2 fives, LOL. Into the envelope they went! I admit there was a time when I came close to using a $5, but I held fast and did not use it. I decided I did not need the item that bad and stuck to my guns.

At the end of December I counted up my fives and found that I managed to save $65! So I thought I would just keep going. I did not count them at the end of January and I have continued on through today. As of today, I have… $230!!!

An added bonus to saving the $5 bills is I have found that I am totally stingy when it comes to my cash! I have even managed to have extra play money left over each month. I just turn it into the next month’s cash ‘kitty’ so I am always a little ahead in case something drastic comes up.

I am not sure how long I will continue to do this but, it certainly has not been as hard as I though it would be. A few things I could do with the money are:

  1. My nephew has a birthday coming up and he has been saving for a Nintendo Wii so I could contribute some to that.
  2. I have a friend that is having her first baby and could give some to the new baby for his first savings account.
  3. I also know someone that has been out of work and could really use help with bills about now.

I know, I could put it in savings (I have a daily interest savings), but if I can help someone out and/or make them happy, then why not? What would you do?

Thank you so much to GLBL for letting me guest post on his blog. If you haven’t subscribed, you need to. Gather Little by Little is awesome. – Bobbi

From Glblguy: This was a guest post from Bobbi who’s been a reader of Gather Little by Little almost since the beginning.  She and I have exchanged emails off and on and I finally asked her if she would be interested in writing a guest article for me.  Bobbi, you are most welcome and thank you for being such a loyal reader!

Blog Traffic Exchange Related Posts ]]> http://www.gatherlittlebylittle.com/2009/02/5-dollars-adds-up/feed/ 8 Family Money Mangement – Helping Friends And Family In Financial Trouble http://www.gatherlittlebylittle.com/2009/02/family-money-mangement/ http://www.gatherlittlebylittle.com/2009/02/family-money-mangement/#comments Wed, 18 Feb 2009 12:43:39 +0000 glblguy http://www.gatherlittlebylittle.com/?p=1384 Family money management

When it comes to family money management and assisting friends and family who fall victim to the current economic crisis, most people want to help, but often have absolutely no idea what to do. 90 percent of us understand that the equation of “family + money” = “a particularly nasty” outcome. Hence, the dilemma resulting from being put in this awkward position, not knowing what to do, nor where to turn, can be a bit daunting.

Family Money Management, The First Step

Not to worry – I’ll talk you through it. Firstly, you need to confront the situation in a very sensitive way. Let’s say that your best friend is currently between jobs, and they have no income being generated whatsoever. Unfortunately, this person still has a mortgage, with a repayment due in the short term. If you knew this, and decided that you should indeed take action to assist – you need to think long and hard about what you are about to do. You must realize that whenever you lend money, there is the risk that it may not come back to you. Even though the person is your friend or family member – this very fact alone doesn’t mean they are immune from things like bankruptcy.

Discussion Time

Having made the decision that you are willing to risk your own money, you need to discuss your choice with the relevant person. In the above example – take your friend out for a coffee, and get straight down to business. Bring up their situation (in a sensitive way), and ask if you can go in to as much detail as possible. Assuming that you have enough money to support this short term financing act – you should be feeling quite comfortable at this stage.

If you are financially literate (and most people lending money are), take the opportunity to give your friend some good advice on how to generate more income, hopefully to get their feet back on the ground. Friends and family appreciate this, and it can go a long way to helping things.

More times than not, the friend or relative will try to refuse the money. Yes, this is a natural reaction to being offered this type of support. If you truly believe that the money is needed, and can be repaid in time, push ahead with your decision. You should have considered that in the first step above.

Following Up

Once you have transferred the money to the persons account, ensure that you follow up on a regular basis. Avoid calling to see when you will be repaid – because this puts everyone in a sticky situation. Instead, ask indirect questions such as: “how’s everything coming along?”. “how are the finances going?”, “are you keeping up with those mortgage payments?”, “did you action any of that advice I gave you previously?”. This should stimulate the topic, and will probably get you the answer you were looking for.

One thing is for certain, regardless of what you choose to do. You need to tread with caution. The very fact that they are one of your closest companions should never be compromised by something as material as money. Think about this, and then decide whether lending a financial hand is indeed the right thing to do.

This was a guest post by Andrew Wang who lives in Seattle area.   He writes about Travel Reward Credit Card & Student Loans.  If you enjoyed this article, make sure you head over and subscribe to his blogs!

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