Am I the only financially stupid person here?

[akaivyleaf]

Selling on Ebay, or books on half.com or other entities gets a little money- all the way to some people make careers of selling things on Ebay.

If you're going to have internet, let it work for you, so sell things through this medium while you're job hunting. How about child care? IF you have children, you might consider opening your home to others.

What skills do you have that you can parlay into money making ventures?

[PrincessPerky]

Hey I thought of another thing, I couldn't think of getting my finances in order if my house wasn't, and I certainly couldn't think of working from home. I have found great peace with www.flylady.net dunno if you need help in that area, but I sure did after my second kid, somehow what was working before kids was downright impossible. Now not only is it possible it is also easier and more fun than before kids. (not that it is perfect, just more peaceful)

[laughsalot]

You are definatly not alone in feeling financially stupid. I am taking my first steps at becoming responsible with my finances. At this point in time I would just like to be able to pay my bills on time. I am ashamed of myself for being so irresponsible. I am thankful to have found a place where there is support of this magnitude. Hang in there, every little step is a step in the right direction.

[akaivyleaf]

Paying bills on time is a very big step and should be commended. It might seem small to you, and in the whole scheme of things it is. But maybe you can feel good about paying bills on time, if you call and have your due date changed with your creditors. If you're better able to pay your phone bill on the 16th, call the phone company and ask to have your bill date changed, that way when you pay on the 16th as you routinely do, you'll be on time and you'll have that sense of accomplishment.

You can ask for changes in bill date with the majority of your creditors I"m sure.

[amomof4]

You either have to make more money, or you have to spend less money. For every dollar you spend, you pretty much have to make $1.50 gross. So you win more when you don't spend.

It would be a good idea to cancel every unnecessary expenses such as cable. Some people even have the option of using the internet at the library, so they can get rid of internet services.

Budge101 has a menu to feed a family of 4 for $10 for one week. This is a very plain menu, and is something you could probably live with for 1 or 2 weeks out of the month until you get caught up.

Read my journal and Momtwo's journal for a lot of money saving ideas. I just read Tammy's journal, and hers is pretty good too.

Write out all of your fixed expenses such as:

mortgage/rent
cell phones on a contract
minimum credit card payments
car payments
insurance payments

These things you can't do anything about. You can include your utilities, but these are not always fixed as there are things you can do to reduce them somewhat. But list an estimate of them anyways.

If you have 2 cars, most probably you can get rid of one of them. My daughter was amazed at how expensive a second car really is. She had only looked at the car payment, but she has insurance, gasoline, registration, maintainece, & repairs. If you can't get rid of the car, try to reduce some of the insurance on it such as comp & collision coverage, towing, rental car, medical coverage, and uninsured motorist coverage. These are all optional. Comp & collision coverage isn't optional if you have a car payment. This seems scarey, but it is better to do without all the optional stuff & still be able to pay your bills.

There are a lot of optional coverage on a homeowners insurance policy too. You can increase the deductible & get rid of all optional coverage. You can also cancel the homeowners policy & replace it with a fire policy & add libility & contents coverage. The main coverage that you will lose is theft to contents. Maybe a few other things too, but this could/would be only until you get back on your feet.

You could unplug all your electrical appliances except your refrigerator.

Look up water conservation if that is an issue.

Quit spending on anything that is not essential. Most of us can do without shoes, clothes, etc. for a while, maybe even a year.

Cut out hair cuts for the women & maybe makeup too.

Switch to generic everything.

Cancel lawn service & anything else like that.

Read tightwad gasette. I bet you could save more money than you could earn. My daughter pays over $600 for daycare & $400 for just the car payment for the extra car that she had to buy.

Seek out free entertainment only. Only for a while.

Get rid of the lattes <grin> (Had to throw that in)

Hope this helps.

[miclason]

Little by little!
Hey, I'm selling tamales here! (and my share of the profit is $0.04/ tamal!!)..but, it IS something!! (I'm trying to think of something else, of course, but, right now, I'm focusing on selling 250 tamales/month = $40!!)

[jhd815]

I think one of the keys is to concentrate on one thing at a time. Certainly pay your bills on time. This goes a long way toward setting a good foundation for handling your finances which in turn is reflected in your credit score.

As others have suggested either find ways to make more money or spend less money. The eBay idea is a wonderful suggestion. Many people I know sell items on eBay much like a garage sale. Remember, "One man's junk is another man's treasure."

What if you could find a way to save $5/week? That would = $260.00 saved in a year. $10/week = $520.00 and so on.

I had to tackle my credit card debt first. With that out of the way my next goal is to begin saving for an emergency fund. When I reach that goal, then I want to begin investing in some form. I can't do all of these at once, so I take one at a time, realizing that each step I take forward means progress toward a better (or more stable) financial future.

Begin with one small step.

[liveandchi]

Things are looking a little better, but there is still such a long way to go. We have cut down our spending that we now have the same amount going out as coming in. That is better than before when more was going out than coming in, but we have no wiggle room. If anything unexpected comes along, there is no money for that.

I've been looking for part-time work but I haven't been able to find anything. I would like to start ebay, but we don't have a digital camera or the means to buy one. Plus the fees look rather expensive. Is this really a good idea?

It's a roller coaster and I'm hanging on for deal life. Will this ever stop?

[34saving]

Ebay would (for all practical purposes) require a digital camera. However, for 640 by 480 resolution (which is all you'd need), you wouldn't have to pay much. $10 or less should be just fine. Otherwise, do you have a friend who could loan you one for an hour a week? As for the fees . . . they're kind of high, but I've found you make so much more than you would selling in a garage sale that it's worth it. Good luck with your ventures!

[Momof3grls]

I am nowhere near getting my finances together dont think that will ever happen but we have our ups & downs & I find the harder I work on them the more ups we have & coming here helps me work on them we have came along ways in the last year year but have along ways too go!!!

[Russell]

You know, at times like this I really wish I had enough money to help everyone I could. However, like most here even without the money I want to jump in and offer any help and support I can...that's what we all do here.

One thing I wish Nate would make mandatory when signing up is the 'Location' field so we know at least which state (if not county/city) you are in. For example, if you are anywhere in Los Angeles I'd be happy to let you borrow my digital camera.

I may have missed it but are you looking for additional work or do you not have a job at all ? What kind of work have you done before ? what are you good at ? what are your interests ? there has to be something out there that you can do.

[loveofpets]

I agree with everyone else - you are not alone. That's why we're all here. I struggled financially in my 20s after graduating from a private college -- and for several years, worked 3 jobs - one fulltime and two part-time jobs. I am finally at a point where I've more money going into savings (401K, ROTH IRA, CD's and savings, and some stocks) than I've had before -- but we never know how long our situations will last. The first thing I did -- and it took going through being laid off -- is build up my emergency fund -- (just in the last 3 years). I now have it at a point where I know I'll be okay (to pay mortgage and house bills) if I get laid off again. It's happened 3 times in 3 years, so I'm adjusting just to that fact.

I also have a separate cc for gas - and that's all I use it for - the AAA Gas Card, which gives about 5% back on each gas purchase.

I got rid of all but one of my other credit cards - forget freezing (I remembered where they were and they still work whether frozen or not--especially if shopping online!) -- which I use as an emergency card IF and only IF, there are no other options (e.g., medical expenses or vet bills). I have no problem asking (medical or vet bills) if I can make monthly payments vs. using a charge card. Normally, as long as you pay regularly, there are no interest charges or late fees applied.

I also recently investigated a non-profit organization here in DE called the Delaware Money School. It is a no-profit organization that holds free classes at local libraries or schools in the evenings and/or during the day on a host of financial issues - getting out of debt, investments, retirement planning, etc. Perhaps there is something similar in other states that you can take advantage of. ALL the classes are free of charge and are taught by peoploe who have financial training. I took a retirement planning class (was the youngest one in there!), and learned alot from both the instructor and from the othe participants (who were already retired!).

[cicy33]

I have the same problems of getting money saved up. Can't get another job, no time and who is going to take care of the kids? daycare alone would eat that up. don't really have any extra. The extra I didn't have I already have taken out for my IRA at work. it's not much but better than nothing! I joined this site (and GREAT site by the way) to try to learn and whatnot. I have already learned a few things and if nothing else it is helping me to stay motivated. That is the hardest you know. I personally will not live in squalor (sp) in order to be rich. I love my cable tv and internet, but I try to keep costs down in other areas. My big one is couponing. I trade alot on line and it is amazing how much I can save on groceries and cleaning stuff. Just keep trying and you will do great!

[BCompDude]

The only financially stupid person here? Hahaha. I would infer that we all have something to learn or we wouldn't be participating in a forum such as this. Speaking for myself only, I used to be a complete wreck when it comes to financial matters; with credit card debt up to my ears. . .no, make that the top of my head, outstanding car loans, creditors calling because I was late with payments. . .the list could go on.

I have since gotten my life back together thanks to God and the people he has placed in my life but it wasn't always easy--and it still isn't. Although I have no more debt, contribute to both my 401k and Roth IRA to the max, and save over 40 percent of my income--its only a start. There is much to learn.

We all have gifts and views that are uniquely individual and wonderful--this includes yourself. Imagine parts of the body, each one has its talents but needs the rest to become full. What good is a hand without fingers? Vice versa? By sharing those gifts and views, we will enable one another to overcome the finanical (and hopefully other) obstacles in our lives. So here is a comment of hope, that it isn't as bad as it seems, that life will go on (and it WILL get better!), and that there will always be someone to help you when you falter. Glad to have you aboard! Make sure to share your gifts and views in other posts--they have more impact than you can possibly know!

[tomkat]

You are definitely not alone! If they gave out a "stupid with money" award, I'd easily win first place! I've been fortunate to make a decent income from my regular job as a programmer/analyst, plus regular money from a second job that I've had for at least 10 years (ranging from $400/mo to $800/mo). After I finished college in '95, for 7 years I lived in one of the cheapest apartment complexes in my city (rent was $500/mo at its highest, $402 at its lowest) with a roommate. Utilities were cheap. My car note for my old car was under $200/mo, under $300/mo for my new car. I had no student loan debt (scholarships covered my schooling). I figured I was doing really good to put aside the money in a regular savings account (paying little interest) from my second job each month. I had credit card bills, of course, but I would use my savings to pay those off, only to run them up again. But, still, I thought I was doing well to even save money. Although I had a roommate and cheap living expenses, it never occured to me to save money from my regular job--and it could've easily been done! Instead, I was on a continuous shopping spree, and I ate out almost every day, and I splurged on my cat Tom!!! How silly is that!?!?!? Oh, I was able to achieve goals I wanted to achieve--I saved enough to cover the downpayment on a brand new house that I bought for myself before I got married, saved for a downpayment for a brand new car when my old one conked out, saved money to pay for my wedding, saved pay off credit cards (although I would always run them back up). Hey, I was single, no kids, might as well enjoy my money! To make a long story short, I ran through money like water! I never thought about fine nuances of finances. Savings account interest--I wasn't interested!!! Investing?? Never thought about it. 401k? Never contributed--and my former employer was one of those who matched your 401k contribution (I figured I didn't need to contribute to a 401k since my former employer provided a pension plan--by the way, I worked for this employer for 8 years! I gave up Eight years of free money!). But, because I managed to put a little money in the bank (even though I would eventually spend it), I didn't realize how dumb I was when it came to money.

Then, two years ago, I got married...to a saver! When we sat down before the wedding to go over our finances, he saw my savings account balanced and was sorely surprised. He made me realize that, although I was putting aside money, I had the potential to be saving even more money. He made me see that I was wasting a lot of my money on stuff that I didn't need. Truthfully, I should easily have at least 4 or 5 or even 6 times the amount that I have saved now. And, the sad part is, I can't look around and see anything that I spent all of my money on (except for the house, computer, car, and wedding--and those expenses are a fraction of what I should've had saved up).

You'd think that all of the lecturing and encouragement from my husband (who is, again, an avid, avid saver who hates debt--he pays his credit card in full every month regardless of the balance, and he paid his brand new honda off in two years, wears clothes until they are unwearable--and did I mention he makes less than me???) would have gotten me on the straight and narrow. Wrong! Heck, I'm still trying to get my money straight! I should have saved several thousand from my second job last year, but when we looked at my savings balance in december of last year, it was the same as the year prior! Several thousand gone, just like that! And on what, I really don't have a clue. Well, yes, I do have a clue--overspending on credit cards! You see, I paid off a credit card early in 2004--about $5500. Then, I started using a credit card for my daily expenses, paying the balance in full each month. Well, let's just say that I always spent more than I intended, so I found myself dipping into my savings to help pay my credit card in full each month.

So, you see, you're not the only financially challenged person out there! And, you can make a very good salary like me and still have almost nothing! Like my husband says, it's not what you make, but what you save. He has far outsaved me and I've always made more money than him!

I'm learning, though! Still struggling with the credit card thing (my balance is sitting at $2500, and that's not counting the balance on my everyday card), but it's on a zero-rate card until next year, so I'll have the money saved to pay it off. Also, I had the misfortune of being laid off late last year, but was able to get a decent severance and another job in a short period of time, so that severance went into new credit union savings account paying good interest (over 3%) that has my husband's name on it (that way, I won't spend it, because I feel I won't have a right to unless I discuss with him first). I've been consistently putting my second job money in that account, in addition to money from my regular job paycheck (the amount of half the cost of the mortgage and household bills). Plus, I've been saving a little money from my paycheck in my own separate account with my brick and mortar bank. I've paid my car off, so that money goes into an ING account that I have. I participate in my new employer's 401K, which is necessary now because they don't provide a pension plan (they do match my contribution, which is a very good thing). I've even started investing a little. I still dip in my brick and mortar savings account, but I've not touched our joint account or ING account. I don't shop nearly as much as I used to, and I try to limit my eating out. My husband and I would like to eventually purchase a larger home and start a family, plus I need to pay off my credit card...so I have goals to meet, and that's keeping me somewhat on the straight and narrow. I'm making progress! And, you will, too! It takes time, but be patient, you'll be able to reach your savings goals. It took a long time to acquire financially unsavvy habits, and it will take a while to break them.

[BAGAGT1]

Far from it, I think everyone can learn new ways to save and grow their money. I continually fall off of my savings goals; here are some of my missteps and missed opportunities:

NEGATIVE:
While I was working my way thru college I had a decent job with a company that matched your contributions Dollar for Dollar, and I never contributed a single dollar to the plan. I worked there part-time for four years I could have amassed at least 2 to 3k (probably more) in that time frame if I would have at least made the minimum contributions to get the match. I saved some of that money in a savings account, but not much since I was using it to pay for my books and tuition.

NEGATIVE:
After graduation I took a better paying job, and once again did not contribute a single cent to the 401K. During this time I was still living at home with my parents, so I could have easily contributed 10% to 15% of my pay, but I was too ignorant about 401K’s to even think about it. During this time I did save a lot of my money in a savings account, but I would later use a large portion of this money to pay for my wedding.

POSITIVE:
About two years into my marriage, I quit my job to take some computer training courses provided to me for free (in exchange, I would have to work for this consulting company for seven months). I was fortunate to have had enough savings to carry my share of the expenses for six months. However, I did not want to be unemployed for so long, so I got a part time job working during the evenings. When things got slow during working hours I would do my homework or prepare for exams. After the course ended, I continued working at the same place while I searched for a full time job in the IT industry. During this time, I picked up the book “Personal Finance for Dummies” by Eric Tyson. This book changed the way I looked at my money. Since both my wife and I both came into the marriage with car loans, we immediately took money from savings to finish paying the cars off. We moved most of our savings from our banks to my Credit Union, which was offering 3% interest on a simple savings account.

NEUTRAL:
Eventually I found a job in IT, and have been making a decent living ever since, however, just as I found the job with my current employer, I was also offered and accepted a part-time position with another company making a decent wage (especially for a part-time job). As soon as I started working for my current employer, I started putting 5% of my salary to my 401k (and every time I get a raise, I increase my percentage by 1%). That was one of the smarter financial moves I have made. However, while working the part-time job, I never contributed to the 401k at that company (even though during one year I made over $30K), in retrospect I would consider this a stupid decision on my part. I did save most of the money I made at the part time gig, used some of it for my down payment on a new home, put a nice down payment on my new car, bought new furniture for the house, and still managed to save a good emergency fund (all while putting my wife thru college).

NEUTRAL:
As far as credit is concerned, I’ve always managed it well (that is until last year), I have never charged more than I had in my savings account. That doesn’t mean I haven’t been irresponsible either. I ended 2004 with some expensive car repairs and a long vacation, which means I started the year 2005 some $4700 in the hole. Fortunately, because of all the great Credit Card offers I receive, I have not paid interest on any of my charges in the last two years. Nevertheless, this was the first time in my life that I have ever had so much credit debt, and it scared me. It scared me enough to make a plan to quickly get rid of the debt, and I am happy to report that as the end of July of this year, I will be free of my Credit Card Debt.

So you see, even though I considered myself a good financial manager of my money, I made a lot of mistakes that in hindsight I could kick myself in the ass for. The important thing is to recognize your mistakes, make a plan, try to stick to the plan, make adjustments to the plan when necessary, and be PATIENT. Because once you taste the sweet nectar of having your finances in order, it becomes that much harder to have them fall out of order. BTW, I still have a two car notes and a furniture bill to attack once the CC is out of the picture, so I am in now way out of the woods, but I can see the tiny light at the end of the tunnel. Sorry for the long post.

[Fern]

please don't feel stupid. we all learn from each other, no matter where we are in the financial food chain.