Diamonds in the Rough Roundup 6/13/14

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(If you don’t care for NBA basketball at all, then just skip down to the couple of posts I had a chance to read and think on this week.  For the rest of you awesome basketball fans, here is my commentary on the NBA Finals.)

The winds of change are upon us.  What looked to be another championship by the Miami Heat has turned around right on them, as they stand on the brink of elimination down 3-1 to the Spurs.  I don’t think anyone envisioned this, especially the talking heads on ESPN.  Most thought Miami would cruise to another title or that this would go down to a Game 7 for sure.  While coming back down 3-1 to win the Finals is certainly possible, it has never happened before.  And I find it hard to believe a team as experienced and well prepared as the Spurs would let that happen.  But stranger things have occurred.

This could also be the end of this Heat “dynasty” of they end up losing.  Lebron, Wade and Bosh are all free agents and they won’t keep all 3 of them.  Lebron might leave, Wade is looking like an old man once again and Bosh has forgotten how to be a big man.  This will be a very interesting off season because there are a number of possibilities about where these guys might go as well as some other stars in the league (Please stay Carmelo!!).  I’m enjoying this Finals so far because I absolutely loathe the Miami Heat starting in the 90’s when the only way they could beat the Knicks was by getting half the team suspended.  Add Lebron deciding to go to Miami instead of New York a few years ago and my hate grew even more.  So it’s nice to see the possibility of this team being broken apart.  It may not happen, but a guy can dream right?

–The Average Savings Rate by Income by Financial Samurai:  The average savings rate in America is 4%.  That is astonishingly low considering Social Security will probably pay out less and less as time goes on.  Some very interesting data on saving in this post.

–All or Nothing Thinking is Holding You Back by Student Debt Survivor:  Perfection is the enemy of the good.  Many people have been brought down by this by abandoning a goal because of one hiccup.

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Do You Really Need to Save for Retirement?

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Certain sayings or ideas get repeated so often throughout time that they become second nature to say or believe.  Our moms always told us not to put our eyes like “that” or they would get stuck (I’m an eye doctor and that is not possible).  They also tell us over and over to eat our vegetables.  That is something we should be doing and something I do a lot of, especially if you count fried potatoes as a vegetable.  At some point things become so repetitive and automatic that we just recite them without even delving into the reasons why.

This could not be more true when it comes to personal finance.  One piece of advice you hear from many people is that you need to buy a house.  It’s just the way things are done and if you’re old enough and have enough money, just get a house.  People who followed this advice during the recent housing crash would beg to differ.  You have to be able to AFFORD the house before you can buy it, even if interest rates are low.  And the interest rate deduction is not as awesome as most make it out to be.  In any case, “you must buy a house” is a piece of advice that gets repeated over and over but should not be followed blindly.

Another idea that you hear get repeated over and over is the importance of saving for retirement.  Talk to any financial planner and visit any financial blog (including this one) and you will inevitably see a post on the best ways to save for retirement.  This gets repeated everywhere so I thought it might be a good thought exercise to think of the reasons why we should save for retirement and if there are any compelling reasons not to.  After doing some hard thinking, casual interviewing and meticulous research (Google), I’ve realized that saving for retirement is something that EVERYONE should be doing and there is no reason not to.  I’ve listed some possible reasons why retirement savings aren’t that important, and then proceeded to explain why those reasons are dead wrong.

1.  I LOVE my job and could not see myself ever leaving:  This is the reason I have come across the most, but it is dumb on so many levels.  Loving your job at age 30 doesn’t mean you will love it at age 60.  Heck, you might not even love it at age 31.  Many things can make you not enjoy your job as much later in life such as changes to your industry, office politics or not feeling fulfilled.  Many people in their 50’s and 60’s now did not stay with their current company or even their current field all their life.  You really have to plan for the fact that you may not like your job so much at some point.  Not saving for retirement because you think you will die on the job you love is one of the most foolish things I have ever heard.

Another reason that depending on your undying love for your current job is stupid: life may have other plans for you.  You might get laid off or see your position disappear.  But more likely, your health could be jeopardized.  According to the Social Security Administration, 25% of 20 year-olds will become disabled at some point in their lives.  That means you probably won’t be making much money during a sizable time period in your life.  Health care issues are by far the number one reason people declare bankruptcy.  Human health is a fragile thing, and you have to almost expect your health to fail at some point.  Knowing all this, not saving for retirement because you think you will always be on the job is one of the most irresponsible things you could do to yourself.

2.  I want to enjoy my money now instead of when I’m 70:  This is one of the reasons I have heard that actually has some merit.  There is some wisdom to the idea that life should be enjoyed in the moment, and I agree with this.  We only get a limited amount of years on this planet, so why spend it worrying about the end of our lives while we can enjoy the present?  We’re young and healthy, so let’s take advantage of it!  This is not a bad motto to live by, but if enjoying life to you means spending all of your money, then you have some bigger issues to worry about.

I agree that we should take advantage of our youth and travel and explore when we can.  But this is just one chapter in our life.  The average US life expectancy as of 2011 is about 78 years.  Most people retire in their early to mid 60’s.  That means you have potentially 20 years to live without the help of a paycheck.  Simply ignoring this chapter of life because you want to have more fun in your 20’s and 30’s is not a smart decision.

The solution?  Put your retirement savings on autopilot and enjoy what you can on the rest.  You can focus on enjoying your young years (which is important) without putting your retirement years in jeopardy.  Besides, there is nothing that says you will not be able to have fun in your 60’s and 70’s.  If you keep relatively good health, you will still be able to travel and work on your hobbies while being able to spend more time with family and friends.  We need to focus on preparing ourselves for each chapter of our life, not just the one we’re currently in.

Be a happy retiree

Be a happy retiree

3.  If I put money away for retirement, then I won’t have enough to cover my expenses:  People who use this as a reason not to save for retirement really have some problems.  If your day to day expenses are so high that you are setting yourself up for failure during retirement, you have to make some changes.  Right now.  If credit card debt is the culprit, which is true for many Americans today, get those paid off in full ASAP so you can start contributing to retirement.  Contributing to a retirement account while paying 20% in interest on credit cards is not a wise move anyway.  You also need to cut expenses and use that money to help pay off the credit cards or start contributing to your retirement account.  If you have a workplace 401k, start there because the hit won’t be as bad since it is taken out before taxes.  If you have some serious issues like healthcare bills, you really need to cut out your unnecessary expenses until everything is in order.  Treat it like an emergency because once you retire and have nothing to live on, that’s exactly what it will be.

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Diamonds in the Rough Roundup 6/5/14

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The intro to my roundup posts have started to become sports commentary.  Which is fine by me because I was a sports fan before I became anything else.  Looks like this Finals will be as exciting as last year.  A memorable Game 1 with the A/C not working and everyone having to suffer through the heat.  Kind of surprised they played the game since basketball players aren’t used to playing professionally with those temperatures but it was a great game.  Ginobili and Duncan both played great games, and that needs to continue for them to have a chance to win.  And here are some great posts for the week:

–How Big Should Your Emergency Fund Be by Mom and Dad Money:  Emergency funds are an essential part of everyone’s financial picture, but the question lies in how big should it be.  Some gurus swear it should be 6 months.  Others say 3 months.  Some say a year.  Again, it all depends on different factors and this article does a good job of going into those.

–We Paid Off My Student Loan!-and then got a $1,000 bill by TrendyCheapo:  In our never ending quest of debt repayment, there are always bumps along the way.  You just have to be ready for them.  This post provides a good example of that.

–Better to be rich than poor by Bankrate.com:  Short post that talks about an interesting study which finds that the health of those over 65 is correlated to their income.

–Dieting and Financial Freedom Have More in Common Than You Think by YoungFinances:  A lot of times we get caught in our own negative mindset when trying to accomplish things.  Whether it’s money or health, it takes a new approach in order to see improvement.

–Expense Value as Time Worked by 20somethingfinance:  This post gives a sobering look at just how much expenses REALLY cost (A $5 frappuccino doesn’t cost $5)

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Diamonds in the Rough Roundup 5/30/14

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What a crazy week.  Got home from vacation 2 days later than planned because of cancelled flights due to weather.  Traveling is fun but can really test your patience.  Thankfully we got home safe and sound.  The baby is gonna need some time to recover.  Here are some great posts I caught up on:

–Why You’ll Never Be Rich:  The American Dream is Dead by Money After Graduation:  I never bought the idea of the “American Dream” since everyone has different dreams and goals.  But wealth inequality is making it harder as of late for a lot of people to even buy a house or get health insurance.  It’s a different world we live in compared to 30 years ago.

–Account For Depreciation by Frugaling:  This laptop I’m typing on will die at some point.  I’ve had it for about 3 years and it’s starting to show signs that the end may be near.  To counter this, I try to budget $25 or so a month so when it’s time to replace it, the money will be there.  Everything will meet its end.

–This is America, Right? by Broke Millenial:  America has a lot of problems, but it’s also a country that most people will find success in if they work smart and hustle hard.  It takes some luck too, but luck usually finds those who work at it consistently.

–Sacrificing a Small Trip Today for a Big Trip Tomorrow by Budget and the Beach:  Vacations can be a real money sink but we all need one once in a while.  Sometimes the question comes down to fighting the urge to take a vacation now or waiting to save up cash and points for a big vacation later.  This article has some good tips at the end to save money while on vacation.

–Why It’s So Hard To Get A Mortgage: A Loan officer’s Perspective by Financial Samurai:  Fascinating thoughts by a loan officer about getting a mortgage.  He says not to blame the banks or people that work at them but to blame the borrowers who didn’t pay.  Borrowers certainly had a hand in this, but so did top executives at the banks who allowed the money to be lent out.  Many people lost their jobs, but the bank executives only get richer.  It seems more important than ever to have a steady income and a great credit score in order to secure a good mortgage.

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It’s Easy to Save Money on Your Meds

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America is a sick country.  It is reported that around 70% of Americans are on at least one prescription drug  and around half of the country is at least on two.  That’s a lot of pills for a lot of people.  Seeing patients on a regular basis myself, I can definitely confirm this.  I see multiple patients every day who are on a whole cocktail of medications.  Now this is a huge problem in itself, but it is also a huge financial problem for the patient.  Medications can get expensive, especially if you have to take a lot of them.  So I’ve compiled a few ways that I think can really change the game when it comes to paying for meds:

Ask for a generic medication- This should be the first thing you ask your doctor.  Doctors may give you a brand name medication because of incentives from a company or just because they are used to writing it.  It never hurts to ask for a generic as long as it will get the job done as well as the brand name drug.  And there can be huge cost savings.  There certainly are cases where a brand name medication may work better than a generic, but it definitely pays to ask.  And don’t think that if a brand name is covered by your insurance that you won’t pay much.  In my experience, it is actually cheaper to pay for a generic out of pocket than a brand name that is covered.  Always ask your doctor if there is an appropriate generic medication you can take for your condition.

Shop around- Many people are unfortunately unaware that you will pay different prices at different pharmacies for the same medication.  Simply calling around to different pharmacies to see how much your medication will cost can save you lots of money.  Some pharmacies even have special low prices for certain commonly prescribed medications.  Generally, warehouse stores such as Costco and Sam’s Club have much better prices than other pharmacies.  It is definitely worth it to call or visit different pharmacies in your area to get the best price.  A website that can help is called goodrx.com.  Just type in your medication and zip code and it will show you which location in your area will have it for less.  It can be surprising to see the price disparity between different stores.

I prescribe medications on a regular basis, and when patients come back for their follow up exams I always ask how much they paid.  I’ve gotten wildly different answers for the same medication, even with insurance coverage!  It really is worth your time to call around to your surrounding pharmacies and get the exact price.

Consult the drug formulary- To add more confusion to the health insurance maze, not all insurances cover all medications the same way.  It actually varies very widely so it pays to check the formulary, which is the list of medications that your insurance will cover.  Insurance might cover medication A for a disease, but not medication B.  You should check with your doctor to see if they can preferably prescribe a drug which is already on the formulary.  Being prescribed a non-formulary drug and getting sticker shock at the pharmacy is no fun.

Ask the doc for samples- Doctors get bombarded by drug reps who want them to prescribe their companies’ medication.  They sometimes give doctors samples of their medication.  If the doctor tells you a brand name medication is necessary, be sure to ask for any samples they may have.  That will at least give you a few days supply so you can shop around at different pharmacies.

Ask for coupons- Similar to the last point, drug reps sometimes leave coupons for certain medications.  Some websites (such as needymeds.org) also have coupons for various medications.  Many drug companies have reduced cost programs for certain drugs.  It never hurts to ask if something like this exists.

Get a second opinion- There can sometimes be more than one way to treat a condition.  Certain levels of high blood pressure, for example, can be treated with a medication or simply with diet and exercise.  When you get a potentially serious diagnosis and the doctor insists on one way of doing things, it might be worth it to get a second opinion.  You can ask family and friends for any trusted doctors in the area and see if there may be an alternative.  In the aforementioned example, controlling blood pressure with diet and exercise may be all that is needed, which can lead to better health overall and definitely some money saved.  Some doctors may be quick to pull the trigger on prescribing medications, so that could be the right time to seek another opinion.

Use an FSA account- Many workplaces offer flex spending accounts to their employees.  What these accounts do is set aside a portion of your pay for the year, decided by you, and give you a debit card with that amount that can be used on certain medical related expenses.  It can be a game to see what exactly is eligible, but FSA money is definitely eligible to be spent on medication.  The main advantage of an FSA is that the money you have set aside is not calculated as part of your income. So instead of using money that has already been taxed, you can use pre-tax money to pay for medication.  Even if you do not go to the doctor much, FSA money can be used for other things like dental work or glasses and contact lenses.

Open a Health Savings Account (HSA)-  HSA’s are great for many reasons.  And they’re definitely useful for their intended reason: helping you with your healthcare expenses.  Paired with a high deductible health account, which aren’t the best choice for everybody, the HSA is a great companion.  It lets you set aside money before taxes, allows them to grow tax free and then be withdrawn tax free as well.  I wrote about how you can use it as kind of a pseudo-IRA here.  When it comes to your health care costs, it is a powerful tool as well.  If you can handle small costs like doctor co-pays and medications out of pocket on your own, you can allow your HSA to grow and use it for big planned (or unplanned) expenses like LASIK or any other surgeries.  As I mentioned before the high deductible plan may not be for everyone but if you decide to go with one, you should definitely sign up for an HSA.

As the famous saying goes, prevention is always better than cure.  Practicing healthy habits such as staying active every day and eating right will lessen the chance of needing certain medications.  Most people need the occasional antibiotic, but conditions such as high blood pressure and diabetes are preventable for the most part.  These chronic diseases can be debilitating to your well-being and also your wallet.  Your health can be looked at as an asset, just like any bank account you may have.  If you don’t take care of it, you will definitely be paying for it.  Hopefully some of these tips will help ease the financial burden.

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Diamonds in the Rough Roundup 5/16/14

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The NBA Conference Finals are finally set.  We will probably see a rematch of last year’s match between Miami and San Antonio but I’m hoping the Spurs can pull it off this time around.  I should start a sports blog.  Here are some great posts from the week:

–Retail Stores Are Seductive Seriously by The Broke and Beautiful Life:  Many people go into a store with the intention to browse but end up buying one thing or another.  Why does this happen?  Because retailers know what we look for.  They know how to present things to make us want them more and more.  It’s their job to make is buy something impulsively.  It’s up to us to know when we’re being played.

–Why I Love Vanguard and You Should Too by 20somethingfinance:  I’ve been using Vanguard for a few years now and they’re great.  Low costs, great customer service and great performing mutual funds.  You really can’t go wrong by going with them.

–10 Things Every Millenial Should Do to Get Rid of Student Loan Debt by Claire Murdough:  Many new grads are clueless about their student debt.  You need to know how much you owe and find ways to get rid of it quickly.

–Want to See Italy?  Do This… by Holly Johnson:  Using credit card rewards strategically can get you a nice close to free trip every year or so.  This post maps out how to get to Italy.

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You Are Your Own Worst Enemy

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The human race is a very interesting one.  The past few centuries of our existence have produced massive leaps in the areas of technology and exploration.  Just a few decades ago not many people had computers or cell phones.  Despite all of this progress, there are still dark things that always occur.  Violence, war and intolerance to name a few.  These have all taken on different forms in different eras but that self destructive nature is always there.  We are a true dichotomy and probably always will be.

These self destructive habits can be found in our individual lives and habits as well.  In our never ending quest for comfort, people still smoke and eat poorly despite knowing the harmful effects to our body.  We avoid doing things we know will be beneficial for us, while choosing things that are easier to do but may not be good for us in the long run.  While these individual flaws don’t have a global effect like wars and violence do, they can be minimized in the same way.

Society sets laws to limit our destructive habits.  For whatever reason, many people resort to things like theft and violence to get what they want.  Laws were created to prevent this and while they don’t eliminate it completely, it greatly reduces the amount of crimes that occur.  We all follow some types of law, be they religious or secular.  For the most part, they are there for our own good and for the good of society.  In essence, laws prevent us from making bad choices that we might have made if left to our own devices.

This same idea can be applied in order to improve our financial lives as well.  Most people commit a financial “crime” at some point.  Spending a little more than we would have liked on the coffee run.  Going out for an overpriced dinner while cooking at home would have been much cheaper and just as tasty.  Not contributing to our 401k plan because we need all the money we can get in order to pay the credit card minimums.  We know actions like these are not good for our financial health, but they end up happening anyway to a lot of people.  But just as society can set laws to keep the crime rate down, we can set some laws of our own to keep financial crimes from happening.  The two best laws to help us financially: setting up automatic transfers and creating a spending plan.

Automatic transfers:  The best thing to come from being able to bank online is the ability to easily transfer funds from one account to another.  It’s so easy to do and is the single best way to prevent financial crimes from occurring.  Why?  Because it takes the decision out of your hands.  By having a set amount of money transferred from your checking account before you ever get a chance to spend it, you’re taking away the potential of doing something stupid with that money.  Part of your earnings need to be earmarked for savings and investment.  Instead of stressing about how much you have left over to contribute to your savings, set a comfortable amount to be taken every month so you don’t have to worry about it.

We all need to have something saved for the future and the best thing to do is save early and often.  That means contributing as much as you can to your retirement account as soon as you can.  For those who can participate in a 401k plan through their employer, this is best done with deductions from your paycheck straight into your retirement account.  You won’t even have a chance to miss the money.  This is key since most people don’t like getting less money in each paycheck. If you start early and have it deducted automatically, you have to find way to make do with what you get.  In my own personal situation, the ability to automatically transfer money from my checking account into my savings and 401k has been the best thing I have ever done for my finances.

Spending plan:  The second way to keep yourself from committing a financial crime is to set a spending plan.  This can also be called a budget, but spending plan sounds cooler.  It’s really very simple.  Just take a look at how you spent your money the last 6 months or so.  The longer time period you analyze the more exact you can get, but 6 months will give you a good overview of how you’re spending your money.  Divide it up into categories and look at where you feel you’ve been spending too much.  This is where personal finance gets personal as everyone has different tolerances.  Some people love food and don’t mind spending a lot on eating out.  Others like a strong cell phone plan and will gladly pay for it.

The key is to optimize your spending.  Spend what you like (within reason) on what you value and cut what you don’t.  This takes a few minutes of thought but it will have a profound effect on your finances.  You can then set up estimates on how much you want to spend in each category and try to stay within those values.  The goal is not to hit that exact dollar amount every month, but to recognize where you’re spending your money and shift it to where you want.  Any money you save from those things not so important to you can be sent to your savings and investment accounts.  Knowing really is half the battle.

These are two of the best ways to hack your finances and keep yourself from making a costly mistake.  There are many financial “laws” you can set to protect yourself against yourself, so just experiment around and find what works the best.

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Diamonds in the Rough Roundup 5/2/14

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I’m really loving these NBA playoffs.  And by that I mean the Western Conference playoffs.  A lot of drama (some of it unnecessary) but some great basketball as well.  The East looks atrocious as the #1 seed Pacers look lost and Miami looks like it will cruise to another NBA finals.  Only 2 posts this week, but they come from two of the premier financial bloggers on the web.  And they are chock full of good info and can be referred back to every so often.  Enjoy:

–Portfolio ideas to build and keep your wealth by jcollinsnh:  This post was written 2 years ago but the advice is timeless.  Investing is fun, especially when it’s easy.  And this post pretty much breaks down all the investing you will have to do for the rest of your life.  If anyone tries to make investing complicated for you, they’re probably trying to make money off of you somehow.  Do yourself a favor and read this post in its entirety, and then read it again.  It will serve you well and your future self will thank you profusely.

–Zero your cerebral inbox by Johnny MoneySeed:  A really great idea to try .  I know when I’m at work I’ll think of this or that and then get interrupted and it will just repeat.  This causes stress and with the method outlined in this post I can hopefully reduce that.

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Hedonistic Adaptation and Your Finances

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happy hobbits

Be happy. Like the hobbits.

Humans are unusual creatures.  Unlike hobbits, who are perfectly content with their lives of eating, drinking, smoking and just plain chilling, we humans keep wanting more and more.  From those in poverty to those who have had everything served to them on a silver platter, we all just want more.  And we think having more will make us more happy.  “If I just made $1,000 more per month, all my problems would be solved.”  “If only I had gotten that promotion, my life would be perfect.”  We all say these things to ourselves from time to time.  And we are lying to ourselves all the way.

I recently read about a term called hedonistic adaptation.  According to all-knowing Wikipedia, hedonistic adaptation is “the supposed tendency of humans to quickly return to a relatively stable level of happiness despite major positive or negative events or life changes.”  Meaning that no matter how high or low we get, we tend to end up at a happy medium at some point.  There are many examples of this in all of our lives, but the one that jumps out to me the most is a death of a family member or friend.  When you first found out that someone close to you has passed away, there is this feeling of crushing sadness.  Usually accompanied by lots and lots of tears.  You don’t want to eat, sleep or work because you are just so down about your loss.  But eventually, some people taking a longer time than others, you get over it.  You’re able to get on with your life and not let the loss completely debilitate you.

Everyone has lost or will lose a loved one at some point, but we move on.  No one lives the rest of their life in the same fashion as they did when they first found out about the death.  We had an incredible low, but we get back to our medium more or less.  The same goes for happy events.  A celebration for getting a job doesn’t last forever.  We eventually get back to a steady state.  This is an important thing to remember and a good reminder for us not to get too high or too low on ourselves, because we’ll eventually get back to normal.  Celebrate and grieve within limits, and then move on.  While this seems like a somewhat callous and objective way to think of things, it is so very true.

The idea of hedonistic adaptation can also be applied to our financial lives.  We all want more money because we think it will solve all of our problems and make us happy.  But most likely it won’t.  Think back to your time as a kid.  More than likely, you had a lot less money in your pocket when you were 10 years old (though probably a bigger net worth if you’re a broke professional).  Many people probably remember being a bit happier when they were younger.  We were used to the simpler things in life as kids, but as we get older and get more money, our expectations change as well.  As the good old saying goes, mo’ money mo’ problems.

If most of us remember being happier when we had less money as kids, how can we possibly think that having more money will guarantee happiness?  Well it’s easy to say that Hollywood is the cause of the world’s problems, but in this case it certainly is.  Specifically, marketers making us believe that having more money will bring real happiness.  This idea has turned this age into the age of consumption, spawning a whole new set of problems (such as Keeping up with the Joneses).  This goes against our nature of returning back to our happy medium no matter how high or low we get.  And this is a problem.

But how can knowing this help us?  Should we make it a point not to worry about money?  Should we turn down that raise or not increase our prices because it won’t make us happier?  Absolutely not.  What we can do with this knowledge is become smarter with our money.  The two things that many people, including myself, worry about when it comes to money is reducing debt and ensuring my family and I are financially secure for the future.  Notice this doesn’t include worrying about what type of TV or phone I will get years from now.  Most people innately worry about having enough for the future, and this is where debt and retirement savings come into play.

If you get a raise that nets you an extra $200 per month, don’t just let it sit in your account and eventually spend it on something frivolous.  Automatically transfer that extra $200 into your debt repayment amount.  This will get you out of debt sooner and decrease the amount of interest you pay.  Got some more money?  Increase your retirement plan contribution and don’t even give yourself the chance to miss that money.  Your heart will want that extra money to buy things or go on an unplanned trip to temporarily increase your happiness.  But knowing what we know about hedonistic adaptation, that happiness will not last.  Increase your piece of mind by getting rid of debt and saving for the future.

This obviously doesn’t mean living like a hermit and having a too large retirement account (yes there’s such a thing).  Spend money on yourself and your family on things that you will remember and that will bring lasting happiness and memories.  But focus on securing your future selves financially.  This is what brings people most happiness in the end.

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Diamonds in the Rough Roundup 4/25/14

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Ready for Zero really is a great website.  Using their tools I found out I will save $25,000 in interest payments over the life of my student loans by just contributing $300 extra per month to my highest interest rate loan.  This has motivated me to find even more ways to add to that extra monthly payment, allowing me to save even more interest and be debt free sooner.  If you have student loan debt, use their tools to find out the exact day you will be debt free.  Don’t worry they’re not paying me to say this.

–Is College Still a Wise Investment? by Modest Money:  While I don’t agree with the conclusion that college isn’t a good investment, I do agree that it’s not a GREAT investment anymore.  Gone are the days of just getting a bachelor’s in anything and finding a well paying position.  If you want to make sure you’re getting your money’s worth, know what you want to do early and scope out the employment/self employment prospects early on.

–I Just Paid Off a $25,000 Student Loan by Frugaling:  I really enjoy reading about stories about people quickly paying off student debt.  Because that means the banks are getting a little less and people are getting a little more.

–Would You Let Your Insurance Company Monitor Your Movement to Save Money? By Green Money Stream:  Insurance companies putting trackers in your car is probably going to be a normal offering soon.  If it saves me money and forces people to drive safer, why not?  I would use it if my auto insurance offered it.

–The Secret to Getting Out of Debt by Personal Finance Utopia:  Great article on the various ways debt ruins your life.  Most people embrace debt and go on their merry way.  It really must be despised so you can take firm action against it.

–Why Your Net Worth Matters by Miranda Marquit:  I’ve always been a fan of net worth (see my post here).  You shouldn’t live and die by it, but it’s a good number to look at once in a while.  The best way to increase your net worth?  Find expenses to cut and then out those savings right into your investments or debt repayment.

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