Think Your Way to Wealth

Determining Your “Next Action” with Your Personal Finances

RC — Thu, 03 Jul 2008 15:45:31 +0000

A problem I think many people have, and I know I do, is determining what to do next to take care of or improve your personal finances. If you are trying to get out of debt, increase how much you are saving, and spend less, it can be overwhelming to think about all of the things you need to do to get your financial life in order, and sometimes it can be hard to remember and keep up with all of the things you want to do, as well as all of the things that have to be done. Just like in David Allen’s Getting Things Done, I like to make a list of my next actions w/ my personal finances. I either leave it on my desk at home, or write it in the notebook I carry around, or both.

Here is a typical list from several months ago:

Review 401k asset allocation
Automate 529 account-set up electronic withdrawals
Set up separate online savings account for irregular expenses
Cancel gym membership
Pay all bills as soon as they come in -(recurring)
Make weekly payments on credit card-(recurring)
Plan next week’s menu-(recurring)

I like to prioritize, and place recurring items on the list at the bottom, which I may forget or put off if I don’t put them on the list. I try to do all of my recurring items on Friday (for example to plan next week’s menu so I can do any shopping over the weekend) so I get everything done before the weekend. Automating your finances can also decrease the number of things you need to remember on a weekly or monthly basis as well.

GRS Roth IRA Setup

Ways to Make a Good Impression Without Spending Money

RC — Wed, 02 Jul 2008 12:22:21 +0000

There are many people that believe you need to “show off”, drive a fancy car, wear designer clothes, and generally spend money to make a good impression or to impress other people. The truth is, you don’t have to spend a lot of money to make a good impression. People develop an impression of you by how you present yourself and interact with them and other people. Especially in the workplace, making a good first impression is important, as well as how you present yourself on a daily basis. Here are some of the free or low cost things you can do to make a good impression.

Practice good personal hygiene- Taking a little pride in your appearance can go a long way. Keeping your hair neat and not disheveled, your nails trimmed(if you are a guy) and clean, and paying attention to other small but important aspects of your personal appearance gives off a good first impression. Showering and brushing your teeth on a daily basis is a necessity as well.

Keep your clothes clean- You don’t have to go out and spend hundreds or thousands of dollars, but keep your clothes clean, neat, and wrinkle free. Ditch the faded clothes at work, wear those around the house or on weekends. Today’s business casual has gone far enough, you don’t need to push the envelope with it either. Wear nice looking shoes, and keep them clean and/or polished.

Speak clearly- You don’t have to be a loud mouth, but speaking clearly, slowly, and loud enough to be heard and get your point across can help your personal and business relationships. I have always been a little quiet, but when I speak more clearly and with a little authority, I notice a difference in the way my words are received.

Keep your car clean inside and out-Whether you are taking a client out or just a friend, your car can say a lot about you as well. it doesn’t have to be fancy or expensive, but keep it fairly clean on the outside, throw away all of the fast food wrappers, and vacuum it regularly.

Keep your house and yard neat- Similar to other aspects of your life, and nice, well-manicured front yard and a neat, organized household makes people feel comfortable. While your co-workers or clients may never visit your house, your friends and relatives probably do, and if you keep your house neat, you won’t have a problem inviting others over either.

Be a good listener- People like to hear themselves talk and be listened to, and if you dominate the conversation, you can easily rub a person the wrong way.

Be responsive- Return phone calls and emails as soon as possible, it makes others feel important, or that they are important to you, when you respond to their needs or requests in a timely fashion.

Don’t lose your cool- Try to remain calm and collected, even when you are irritated or aggravated with someone else. You will appear to be under control, and show that you are not a loose cannon and can handle pressure- a good trait to have.

Be punctual- Don’t be the guy (or gal) that is always late for meetings, late for work, etc. You can quickly develop a reputation as a person who is not reliable.

GRS Roth IRA Setup

The Basics on Finding Ways to Increase Your Cash Flow

RC — Mon, 30 Jun 2008 12:00:30 +0000

Even though many people use credit and debit cards for their day to day expenditures, cash is still king. Cash flow, that is. If your incoming cash flow does not exceed your outgoing cash flow, you are setting yourself up for trouble. There are several basic ways to generate a larger cash flow. You can work more at your regular job, work a 2nd job either full or part-time, or create passive income streams. You can also increase your current cash flow by decreasing expenditures. If you are looking for ways to pay off debt or invest more, available cash flow is the key. To maximize your usable cash flow, both increasing your income and cutting back on expenses will be the most effective . Here are several basic ways to increase your cash flow by increasing your income or decreasing your regular expenses.

Increasing Income

Work overtime at your current job, if it is available.
Moonlight- Look for work outside of your primary job, doing the same type of work you do in your primary job, that you can do on the side. Find out what your employer’s policy on moonlighting is, however, as some companies discourage it or even have policies prohibiting it, especially if it is work with a competitor.
Get a part-time job- While you may not make as much per hour as moonlighting, it can be a great way to boost your income, even temporarily.
Start a side business- Starting a side business is a great way to earn extra income. Do you have a hobby or skill you can use to make extra money? Do you want to start an eBay business? Try it out now.
Sell things you already own- On eBay, Craigslist, or have a garage sale. You will declutter your house and your life, and make some money in the process as well. This will provide a temporary increase in your cash flow, depending on how much stuff you have that you can sell. If you can turn selling things into a steady eBay business, however, you have an additional income stream.
Maximum the interest on your savings and investments- There is no reason you should be losing out on interest in your savings, so make sure you are using a high-interest savings account for you savings. Consider investing in dividend paying stocks, if you invest in stocks as well.

Decreasing Expenditures

Examine your regular expenses and trim them- starting with recurring, non-essentials. Consider cutting back on your cable plan, canceling your gym membership, etc. Several small changes can start adding up to a significant boost in your available cash each month.
Consider raising your deductibles, for car or home owner’s insurance, provided you have a well-funded emergency fund to cover your new, higher deductibles.
Shop Smarter- Use coupons, look for deals on the internet, especially for large purchases, and think carefully about how you spend your money.
Change your eating habits by cutting back on your food and grocery bills.
Drive Less- Carpool to work, take public transportation, or walk anywhere you are able.
Don’t take on new, recurring expenses. You decrease your available cash every time you add a new, regular payment to your financial obligations.

What are some other ways you can think of for someone to increase their cash flow?

Image by stopnlook

GRS Roth IRA Setup

Weekend Roundup-Independence Day Edition

RC — Sun, 29 Jun 2008 17:05:27 +0000

This upcoming Friday is July 4th, or Independence Day, the day the United State declared independence from British rule and basically the “beginning” of our country. Hope everyone has a happy and safe 4th of July holiday.

I had a guest post over at Prime Time Money this past week entitled 10 Ways to Simplify Your Finances. PT has a great blog with many though-provoking and informative articles, so head on over and explore his blog.

The winner of the Tightwad Gazette book giveaway was Jane J. I will be emailing her to get her address so I can send the books over. Congratulations! I will have more giveaways coming up in the near future, so stay tuned.

I participated in 3 carnivals last week:

Rich Credit Debt Loan hosted the Carnival of Careers #4- Longest Day of the Year Edition, and included my article “10 Tips for Going the Extra Mile at Work Without Putting in More Time” as an Editor’s Pick.

My favorite articles from the carnival of careers were:

The Financial Blogger presented Dealing with People You Don’t Want to Deal With (part 1, you can check out part 2 as well.) A difficult part of being in the workforce is dealing with people without losing your cool, and these tips can help you do just that.

Bripblap presented “Does Innovation Require Desperation“. I find that I perform better when I am under the gun myself, but if I had to start my own business or work from home to support my family, could I do it? I am not sure if I could.

Mrs. Micah presented a very creative Carnival of Personal Finance No. 158-Vampire Slaying Edition, and included my article “The Two Simplest Ways for Graduates to Achieve Retirement Success”.

My favorite articles from the COPF were:

GBlogger from Can I Get Rich on a Salary presents the Cost of Your Favorite Color. I have noticed certain colors costing more for some items, but unless it is a bright yellow or some other color I don’t care for, I try to go with the cheapest.

The Silicon Valley Blogger presents suggestions to protect your job and career during an economic slump at the Digerati Life. These tips are good to apply at any time, but are especially pertinent during weak economic times or a recession.

Hank from My Investing Blog hosted the Money Hacker’s Carnival # 18-The History of Money, and put a very interesting and informative carnival theme together. He included my post “7 Reasons You May Not Have Received Your Economic Stimulus Check Yet.”

My favorite articles from the carnival were:

The Chief Family Officer presented Lesson: Always track Amazon’s prices. Good tips on how to track prices and request a refund if the price drops on Amazon after you make a purchase.

Nickel from Five Cent Nickel presented Four Financial Tips for Recent Graduates. Good financial advice for graduates as well as anyone trying to get on the right track.

GRS Roth IRA Setup

If Gas Prices Dropped Suddenly, Would You Stop Trying to Conserve Fuel?

RC — Sat, 28 Jun 2008 18:16:10 +0000

According to recent congressional testimony, some experts believe changes (i.e., controls and restrictions) to the oil futures trading market could result in up to a 50% decrease in the price of a barrel of oil, with gas prices also dropping as much as 50%, or to around $2.00 per gallon as soon as 1 month after. I do not really believe it would have that much of an effect, as I am sure there are other factors involved, such as global demand and the loss of value of the U.S. dollar vs. global currency, etc. However, it got me thinking about whether, were gas prices to drop that significantly that quickly, would people stop trying to drive more efficiently, stop looking for the cheapest gas stations, and generally just stop worrying about the price of a gallon of gas?

I have been trying to drive more efficiently, plan my trips and errands, and be conscious about my driving habits due to the recent spike in gas prices over the last 6 months to a year. Would I continue to do so, if gas was only $2.00 gallon? I think so, and I would certainly try. By driving more consciously, I would continue to save the same percentage per mile driven, and those savings over a month to a year would continue to add up.

Frugal habits developed when you have to save money should be carried forward even if the necessity of saving is no longer present. Keeping your costs and expenses to a minimum is an important component in building wealth.

Image by PhilipsPhotos

The secret phrase for the book giveaway is “Frugality Rocks!”

Book Giveaway and Upromise Bonus Reminder

RC — Thu, 26 Jun 2008 11:17:42 +0000

Reminder, the giveaway for a copy of both the Tightwad Gazette I & II ends this Saturday, so make sure to enter!
To enter, subscribe to my RSS feed or via email to get the secret entry phrase. Email the phrase to me at:

rc {at} thinkyourwaytowealth.com or use the contact form above.

Each email received will be one entry into the drawing.

Bonus! If you mention this contest in a post or roundup, you will receive five (5) entries into the drawing!

Also, the $10 Bonus for opening an account with Upromise ends June 30th, so if you have not signed up yet do so now and start earning money for college (or just for yourself- you can receive a check as well) right away!

The secret phrase for the book giveaway is “Frugality Rocks!”

Two Free Software Programs That Can Protect Your Computer

RC — Wed, 25 Jun 2008 12:30:43 +0000

Protecting your home computer is essential in this day and age. There are new viruses being created everyday with the intent of damaging your computer’s operating systems or files, and hackers are always looking to access your personal computer to get access to personal information, including financial info, passwords, etc. The two key pieces of software every computer user that connects to the internet should have are a good antivirus program and a good firewall. Fortunately, instead of spending up to $50 or more on each one, and paying a yearly renewal fee, there are two great programs out there that can provide this protection for free. Not too many things can be had for free these days. I know there are other free antivirus and firewall programs out there, but I have been using both the free version of the AVG antivirus and the Zonealarm firewall for over 3 years now, and have not had one problem. I am not a computer expert, so you may need something more robust. But if you are a fairly careful web user, I think these two programs probably provide all of the protection you will need.

AVG Antivirus

- The free version of AVG antivirus program is rated highly by many PC magazines and hardcore computer users. I have not had any problems with it slowing down my computer, which is a complaint of some of the popular antivirus programs out there. It provides protection against viruses, spyware, adware and identity-theft, and updates on a regular basis. Make sure you allow the option of the program to download the updates when they are available so you have up-to-date protection.

Zonealarm Firewall

-The free version of the zonealarm firewall provides basic firewall protection, blocking attempts to access your computer, and making your computer basically invisible to those online. You will get a pop-up when a new program tries to access the internet, which some people find annoying, but if it is a program you want to allow, you can click a box so it does not ask you again in the future. I don’t really find this to be a problem.

The secret phrase for the book giveaway is “Frugality Rocks!”

The Roth IRA: A Closer Look at a Powerful Wealth Building Tool

RC — Tue, 24 Jun 2008 12:00:47 +0000

The Roth IRA gets talked about quite frequently these days, as a great tool for reaching your retirement goals and building wealth. While many people are well-versed and may be experts on the Roth, for those of us just beginning our saving and investing journey, I thought it would be a good idea to touch on the basics and a few details of the Roth IRA.

What is a Roth IRA and how does it work ?

A Roth IRA (individual retirement account) is a retirement savings account which allows a person to save money for retirement which can be withdrawn tax -free during retirement, after reaching a minimum age of 59 1/2. Investments are normally made in stocks, mutual funds, index funds, or bonds, although other vehicles can be used as well. Investments are made with after-tax contributions, and as stated above all of the principal and interest can be withdrawn tax-free upon reaching an age of 59 1/2.

Roth IRA vs. Traditional IRA

In a Roth IRA, contributions are made with after-tax money, while traditional IRA contributions are tax deductible. Contributions to a traditional IRA are made with pre-tax money, but the withdrawals during retirement are taxed (both principle and interest) at you ordinary income tax rate at that time. Therefore, a Roth IRA can benefit someone who anticipates being in a higher tax bracket at retirement age. However, because contributions are made after tax, a tax-deferred option such as the traditional IRA can allow someone with a lower income the opportunity to put money away with a lower decrease in their take home income. There are no rule on the age of required minimum distributions of a Roth IRA, which is currently 70 1/2 for a traditional IRA and a 401k. (This means in a traditional IRA or a 401k, you are required to start taking out money when you reach age 70 1/2.) There are certain situations when money earned (in the form of interest) can be withdrawn as well, while the traditional IRA is far more restrictive on withdrawals. As long as the Roth has been open five years, earnings can be withdrawn if the participant becomes disabled. Contributions can be withdrawn from a Roth IRA at any time, since they have already been taxed. In some cases, up to $10,000 in earnings can also be withdrawn to acquire a principal residence.

Roth IRA Income Eligibility Rules

Income Limits for 2008

Single - Up to $101,000 (modified adjusted gross income)

Married filing jointly- Up to $159,000 for full contribution, partial between $159k and $169k

Roth IRA Contribution Limits-2008

For 2008, the maximum contribution to a Roth IRA is $5000 for those age 49 and below, and $6000 for those 50 and above. This limit is slated to increase $500 per year starting in 2009 to account for the effects of inflation. The $5000(or $6000) limit applies to all IRA contributions, so that is the max. that can be contributed to either a traditional IRA or a Roth IRA.

Roth IRA Conversion

If you have saved money in a traditional IRA, and wish to now pay tax on that money and convert it to a Roth IRA, you are able to do so if you meet the income limitation. A conversion is good for someone who has an existing traditional IRA, and has the money available to pay taxes on it now in order to eliminate future tax liability. This is especially attractive if the person anticipates being in a higher tax bracket in the future. However, only taxpayers with a modified AGI of $100,000 or less are currently eligible to convert a traditional IRA to a Roth IRA. This limitation is slated to be removed starting in 2010, so already many people are planning to do a conversion then. The tax liability will be able to be spread over 2 years (2011 and 2012), as well, which is an added bonus for many.

The secret phrase for the book giveaway is “Frugality Rocks!”

Weekend Roundup- Back from the Beach Edition

RC — Mon, 23 Jun 2008 03:58:13 +0000

We came back today from a trip to the beach; the weather was good and it was very relaxing. Getting away from the daily grind is a great way to recharge yourself mentally and physically, and I am ready to get back at it!

I participated in four carnivals/festivals last week:

Flexo at Consumerism Commentary hosted the Carnival of Personal Finance # 157 Third Anniversary Edition . Flexo is also the founder of the COPF as well as pfblogs.org, a great personal finance blog aggregator. Congratulations on 3 years!

My favorite articles from the carnival:

Too much debt can ruin your health @ Taking Charge

One of the Many “Lemonade” Moments of My Life by Hank @ My Investing Blog

David at Moneyning hosted the Carnival of Money Stories #64- Time to Listen to Others Edition

My favorites from the carnival were:

Some Advice to A Friend @ Not the Jet Set

Debt Drains Cash Flow @ Money Monk

Mrs. Accountability from Out of Debt Again hosted the Festival of Frugality # 130- The Eight Little Pigs and included my article “Watch for Companies Adding New Fees When Changing or Upgrading Service Plans”

My Favorite Articles from the Festival:

Free Workout Program- 100 Push-up Challenge @ The Happy Rock - I am going to start this later this week!

What You Need to Know Before Going into Debt @ Rich Credit Debt Loan

Mrs. Nespy from Mrs. Nespy’s Frugal World hosted the Money Hackers Carnival # Music of the 80’s and included my article “How to Put Next Year’s Tax Refund to Work for You Right Now”

Passive Income-Look at Your Passive Expenses First @ Till Debt Do Us Part

The Five Essential Elements Of Automated Income Generators @ The Shark Investor

GRS Roth IRA Setup

Test Your Frugality- Book Giveaway #2-The Tightwad Gazette I & II

RC — Sat, 21 Jun 2008 00:00:08 +0000

How frugal are you? Well, you can compare your frugal techniques with that of Amy Dacyczyn if you win this book giveaway! I will be giving away gently used copies (in the spirit of frugality after all) of both the Tightwad Gazette (paperback), and the Tightwad Gazette II (hardcover) to one winner.

To enter, subscribe to my RSS feed or via email to get the secret entry phrase. Email the phrase to me at:

rc {at} thinkyourwaytowealth.com or use the contact form above.

Each email received will be one entry into the drawing.

Bonus! If you mention this contest in a post or roundup, you will receive five (5) entries into the drawing!

The contest will end Saturday, June 28th at midnight. I will take all of the entries and use a random number generator (random.org) to pick the winner. If you are the winner, I will contact you via email to get your mailing address, so you must use a valid email address. If the winner does not respond, I will keep redrawing until I find a winner. Only readers in the U.S. are eligible. I am the final judge on any disputes, etc. relating to the contest. Good Luck!