Budgeting Made Simple

While cruising around the web, I happened upon a very useful spreadsheet. It was developed by Dave Ramsey of Money Makeover fame so it adheres to the zero based budget concept. Very simply a zero based budget is one where every single dollar is allocated. Basically you have planned your spending to the last penny. The spreadsheet is cool because it breaks it down by each paycheck how it will be spent. The second tab calculates if you were on track for the month. The budget template is available in Excel or for you cheapskates it can be downloaded in openoffice format.

Collection agencies working your last nerve?

Recently I found out a collection agency slapped something on my credit report. I had a hunch this was not a legitimate debt, but I didn't know how to start the process of getting it cleared up. So as usual, I turned to the net and found credit info center. A site that is full of great ideas for cleaning up your credit for FREE. That's right, no money needed. Their link is on the right side of my blog.

One of the coolest things on the site is their explanation of the debt validation process. They give step by step instructions for making collection agencies prove that a debt is valid and they are entitled to collect the debt. Many times they are not. The site even includes a form letter which you can customize and send to creditors. If they are not able to validate the debt is legitimate, you have the legal right to request it to be removed from your credit report. For all of the skeptics out there, I have personally verified that this process works. Check it out and let me know how it works for you.

Maxed Out

My new fave show is Maxed Out. It features a personal money coach who breaks down financial issues for women. The show is pretty direct and entertaining. I learn something new every show. However, it is a Canandian production so there are some slight differences in terms. Check it out and get free financial advice. Here is a link to the wnetwork so you can get more information. In my area, the show is on the Style network. So you probably want to check your local listings. http://www.wnetwork.com/tv_shows/shows/maxed_out/index.asp

Family Money Visualization

While doing some searching for finance/psychology issues, I stumbled on a site by Fred S. Brown. A Yale graduate, he has over 25 years of experience as a Personal Finance Consultant. I was intrigued by the Family Money Visualization exercise. It is a more indepth version of the questions in my previous post.
http://www.moneyandspirit.com/approach.html

Personal Finance Blog #2,756,148

Why write yet another blog on personal finance?
I created this blog to breakdown finance to those who are struggling to understand it. Contrary to popular belief, it can be understood. Once the foundation is laid, the fun can begin. Get creative, and it can pay off. Literally.
Some think finance is all the same, whether you are looking at a corporation’s balance sheet or your personal financial statement. While the same basic principles apply, personal finance is different. A corporate buying decision rarely has the psychological component of a personal buying decision. Yes, I said psychological. Personal finance decisions use more than one side of the brain. There are analytical and (gulp) even emotional factors that come into play. To ignore this aspect is to repeat the same mistakes over and over.
Case in point: I spent the last year counseling people in financially stressful situations. It was interesting how a person’s attitude toward their situation would impact the outcome. If the person was not ready to make serious changes, their situation may temporarily improve but long term they would find themselves in the same situation i.e, using the counseling service for the same issue. The solution was useless if the mindset was not there.
It is time to fuse psychology and finance. Not in a hokey, "I am one with my wallet " way. However, asking brutally honest questions about how you feel about your finances can’t hurt. The bonus is it could uncover some financial landmines. Sometimes our beliefs can lie so deep under the surface we do not even realize they are there, kinda like hidden fees.
Some questions I formulated to consider:
What is my earliest memory of money? Was it earned or was it given to me?
How did my parents handle money? (Answer separately for each parent or primary caregiver) Do I handle money more like one, both or none of my parents? Did I make a conscious decision not to handle money like one or both of my parents?
Was money a source of anxiety in your childhood home? Why?
If you have siblings, how do they manage their money?
If in a relationship, do my partner and I have similar or opposing views of money?
Do you plan major spending expenditures (car, appliances, etc)? If you are in a relationship, are major purchases discussed beforehand? How about minor purchases?
How often do you spend more money than you intended to (register total is a surprise)?
What is more important to me than money?
If I had unlimited money what would I do with it?
If I lost my ability to earn money how would that make me feel?
List one word that describes your current attitude toward money?
List one word that describes the attitude you would like to have toward money?
Be honest. Your answers might surprise you. Then again, you probably already know how some of these issues affect your attitude toward your finances. It’s important to know where you are in order to see where you are going.