Secrets from the Millionaire Teacher, Andrew Hallam

“Review or door stopper,” read the subject line of the email.

Now that is a book review request I enjoy. Make me laugh, and you have my attention.

But this is not going to be a book review. This article will give you actionable tips from inside the book. Suffice it to say, Millionaire Teacher is a comprehensive personal finance book for beginning or intermediate investors. And I recommend that you read it!

Take Action

Read this article and come away with actions to implement to become a Millionaire. Some of these may not be completely new and that is because there are tried and true strategies to grow your resources.

First come the Quick Tips; next is the in depth information and motivation.

Nine Rules of Wealth Checklist

1. Spend like a Millionaire, if you want to become rich. That means don’t spend too much. In general, millionaires live conservatively, not extravagantly.

2. Start investing early to allow your funds to compound and grow over time.

3. Invest in low-cost index funds to maximize your future wealth.

4. Learn about stock market history, greed, and fear, so you don’t become a victim of buy high and sell low.

5. Learn to build a complete stock and bond portfolio using index funds. You will beat most professional investors.

6. Use index accounts, no matter where you live.

7. Don’t fall for an advisors ”hard sell”.

8. Watch out for “too good to be true” scams that promise outsized results.

9. If you want to dabble in individual stocks, do so only with a small portion of your portfolio.

In Depth Advice for Wealth Building

More detail pilfered from Hallam, a high school English teacher who built a million dollar investment portfolio on a teachers salary.

Spend Like you Want to Grow Rich

You’ve heard it before, the millionaires are not the folks riding around in Cadillacs and Porches but are those living in the modest home driving an older car. Hallam’s path to millionaire status was peppered with a cheapskate lifestyle for many years. This guy rode his bike 70 miles per day to work through rain and sleet. He lived on clams salvaged from the beach accompanied with low cost pasta and potatoes. Free rent was the byproduct of house sitting gigs for those Canadians wintering in the south.

That’s how he can afford to live well today; travel, live in a condo with a pool and squash courts, and drive a classic Mercedes.

What’s the takeaway for you? I certainly don’t want to get my food from the beach or ride a bike to work. Yet there are other ways to live conservatively with an eye towards the future. Substitute low cost alternatives for life’s necessities. You need a place to stay, you don’t need a luxury apartment. Take in a roommate or two. You need food, but you can cook at home instead of eating out. Have a peanut butter sandwich (I have one at least three days a week) for lunch once in awhile and pasta for dinner.

The lesson is this, delay gratification for a while and understand that the wealthy “Look to the Future.” Spend responsibly, think creatively, save profusely, and you can become wealthy on a teacher’s salary.

Conquer the Enemy in the Mirror; Watch out for Fear and Greed

I tend to worry a lot, so anything to do with “mental money” strategies catches my interest. Hallam explained that mutual funds tout 10% average annual gain. Great, that means that all the investors in the fund earned 10% annually as well? Not quite.

Investors tend to be influenced by the bifurcated emotions of fear and greed. When the price of a mutual fund falls, many investors get scared and pull their funds out. Then after the fund goes up for awhile they get back in.

What just happened is that those investors missed the largest portion of the funds’ gains. Hallam underscores the importance of the classic statement;

It’s not timing the market, but time in the market, that leads to long term financial growth.

The stock market goes up and down. In the short term, these movements are completely random. In the long term the trend is upward. Jumping in and out of the market leads to buying high and selling low. Not a great way to make money!

Hallam disclosed that he put money into the stock market after 9/11, when the fearful were pulling out. He reasoned that businesses weren’t worth less because there had been a terrorist attack. And of course, taking advantage of bargains when fear is in the air is a wonderful method of buying low.

Fight the tendency to follow the crowd and your profits will grow.

In sum, for those just starting out, there are engrossing stories and time tested wealth building strategies showcased in Millionaire Teacher. There’s even a section on how to make money buying and selling your vehicle. It’s a fascinating approach that anyone can try.

Remember, live sensibly, spend smart, and invest regularly. You may not get rich overnight, but you will set yourself on a path to a wealthy future.

Can’t Get Enough Wealth Building?

• 10 Rules for Building Wealth; CNN Money and Fortune
• How Young Adults Can Build Wealth; Young Adult Finances
• Side Businesses You Can Start Today; Wise Bread by Ashley Jacobs
• 12 Tips to Build Wealth for Early Retirement; Financial Mentor

Tried any of these strategies? What additional wealth building advice can you offer?

How can someone who doesn’t even have the old iPad make such a bold claim? Because I am interested in your net worth and want you to get wealthy!

If money is no object in your life and you are loaded, you can stop reading NOW. Or if your planned splurge is the new iPad, who am I to judge?

The iPad is Here! Now, when will the next iPad arrive?

For the rest of you, here is why you do not need a new iPad.

They are really expensive and less functional than a much cheaper laptop.

 According to Computerworld, “the Wi-Fi models run $499, $599 and $699 for the 16GB, 32GB and 64GB tablets, respectively; the 4G device is priced at $629, $729 and $829.”

I was happy to read in the comments section of the Computerworld article other readers echoing my thoughts. Here’s a paraphrase of one of many similar remarks;

“For the spec Hounds that want USB, Full Size HDMI, etc etc. there’s a great product on the market it’s called a…………………………Laptop, Pick up 2 along with Your choice of an Android Tablet, you will get all the ports, software and an Open OS. GOOD LUCK”

This commenter at Computerworld had the same take that I did. Maybe there is something to the idea of delaying the push for the newest and most popular gadget.

Be Strong and Don’t Let Advertisers Define You

I know what it’s like being swayed by advertisers. After watching an episode of Shark Tank, the reality show where wealthy business people help struggling entrepreneurs with an infusion of cash in exchange for equity in their company, I started to feel like I wasn’t doing enough. After all, I’m not a billionaire on television bidding for a piece of new companies. I don’t even have a fabulous niche product that could benefit from a financial partnership with Barbara Corcoran or Mark Cuban.

So what!

But that is the power of advertising, television, and the internet. Watch out for the influences that are omnipresent in your world.

Take the time to evaluate who and what is causing you to feel as if you do not have enough.

If you have a computer and a television and a phone, do you need more ways to connect? Okay, I get it, some people travel all the time and their jobs require constant access, and a laptop is too heavy and a phone too limiting. If this is your situation, then I’m not talking to you.

For the rest of you out there, force yourself out of the world of “comparisons.” There will always be someone with more than you. As soon as you buy the newest iPad, within a few months there will be a newer and better one.

Attitude Adjustment

Here’s my favorite trick for coping with the “Poor me, I don’t have the coolest of everything syndrome.” Switch your attention from what you lack to what you have. I suspect that if you spent a few minutes listing all the wonderful technology within your grasp, you’ll realize you have abundance.

Most of you have access to these technologies:

• Computer
• Phone
• Television
• MP3 player
• Camera
• Video camera
• Gaming System
• Incredible software and applications to go along with the gadgets

Actually, I have almost (oops, I lost the MP3 player) all of the above, plus an extra desktop computer. So, am I a hypocrite telling you not to get the new iPad? Most of my technology items would be considered by the experts as “obsolete.” None of the above are in any way “new” and the video camera and television must be more than five years old. My theory, if it still works, why replace it?

Action Steps

Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it for all of your personal finance thoughts, activities, and plans.

Make a conscious decision before running after the latest and greatest gadget. Is it worth sacrificing your long term financial goals; college, family, retirement, vacations, home ownership and more? Most folks don’t have enough money to buy everything they want.

Be deliberate in how you allocate your precious financial resources.

1. Make a pros and cons list next time you feel you must have some new item or tech treat.
2. Analyze whether the reward of purchase exceeds the cost.

 What Others are Saying

Do I Need an IPad? at Wealth Informatics

The “Wow Factor,” Do You Overpay for it? at Money Crashers

Apple IPhone and Google Android; Who’s Winning Market Share at Financial Success for Young Adults

I Didn’t Buy and IPad and I’m Proud of it at Prairie Eco Thrifter

Barb Across the Web

• Best of Money Carnival at Fiscal Phoenix (selected 1 of 10 out of 82 submissions)
• Carnival of Financial Camraderie at My University Money
•  Self Directed Investing for Retirement Carnival at Arbor Investment Planner
•  101 Centavos; a Fistful of Links
• Meal Plan Rescue Round up
•  My Care One; Straight Talk on Debt

Do you really need the new ipad?

image credit; znet.com

Ikea customer says, “I love those light fixtures.”

The partner replies, “Come on, it’s not on the list.” (eavesdropping transcript from IKEA)

That simple exchange left me speechless. Then made me anxious. Were the items I was purchasing “on the list”? Whew, yes they were. It’s so ingrained in me to shop with a list, I sometimes don’t even think about it.

Do You Have the Discipline to be Wealthy?

 Wealth in money and life are made up of a string of smart decisions.

I learned “list making 101″ from my parents at a very young age. We made “to do” lists, grocery shopping lists, and going to the mall lists. My daughter, now in her 20′s, said when she discovered at a young age that she could write an item on the refrigerator shopping list and I would buy it, it seemed like magic. Not exactly, the entries for candy and treat food were not automatically put into the shopping cart! But I give her credit for ingenuity.

That couple in Ikea exemplified the single minded determination to stick to a goal. They obviously had a budget and specific items they planned to purchase. Would one splurge have made a huge financial difference in the long term? Probably not. But, a lifetime of self indulgence and “I deserve it” type of thinking causes a life filled with financial stresses.

Financial Implications of Self Indulgence

Imagine two couples; disciplined couple one, the Smarty’s and indulgent couple two, the Spendy’s. Assume these couples were identical in income and location.

The Smarty’s Habits

• Shop with a list.
• Plan for rewards and indulgences.
• Contribute regularly to their workplace retirement accounts.

The Spendy’s Habits

• Shop frequently without a list.
• Treat themselves to indulgences whenever they feel like it.
• Don’t bother contributing to their retirement fund because they believe in LIVING FOR TODAY.

Outcome of Smart Money Habits

Look at the amazing wealth amassed from a small amount of money. The Smarty’s saved $40.00 per week from avoiding impulse shopping. They added that $40.00 per week to their investment account and let the magic of compounding return work.

SMALL SAVINGS = MORE MONEY

On the other hand, the Spendy’s were self indulgent. When they wanted something, they bought it. The Spendy’s filled their lives with impulse purchases.

The outcome? It’s unlikely that this spur of the moment spending made them any happier or more fulfilled. It’s probable that this spending filled their lives with clutter, bills, and stuff. Not to mention that later in life, they certainly lacked the necessary funds to retire.

 Self indulgent splurges are quickly forgotten. Saving and discipline lead to long term wealth and feelings of self control and strength.

Little Changes Matter

Spend a minute examining that NOT SPLURGING chart. Invest just $40.00 per week and be over four hundred thousand dollars richer at age 65. 

Do you have the discipline to say no to yourself?

SECRET SAVINGS TIP; The simple strategy of sticking to a shopping list can yield monumental results.

Caveat; I didn’t say never splurge. We all need rewards and splurges in our lives. The trick is to plan for these indulgences and make them meaningful.

Women’s Money Week

I’m participating in Women’s Money Week next week. Women have historically been laggards when it comes to finances. This week is about encouraging women to speak up about money, take control of our finances, and reshape our financial future. Women’s Money Week will run from March 5th-11th, 2012 on WomensMoneyWeek.com — coinciding with International Women’s Day.

Following are a few of the participating blogs in Women’s Money Week (I’ll include a few more each day next week):

Are you a list maker or not? How do you handle splurges and indulgences?

Superbowl Party Tips & Links

El Carino and I were visiting San Francisco the day of the division playoffs between the New York Giants and the San Francisco 49ers. We ventured into a Marriott and were caught off guard by the abundance of NY Giants fans. This gaggle of folks spawned an interesting conversation about the finances of football fans. First, a little background, we are die hard football fans and have watched every single NY Giants game for years, on

SUPERBOWL PARTY - GO GIANTS

television. We have never been to a live game, although we did venture up to Albany, New York one summer to check out Giants training camp.

In the hotel lobby, we struck up a conversation with a girl dressed head to toe in Giants attire in town to see the game with her dad. They have season tickets and planned to go to the super bowl as well. El Carino and I decided to figure out how middle income folks can afford to attend live football games. We understand how the wealthy and corporations can afford the tickets, but what about those fans who are middle class. How do they do it?

How to Afford Live Football on a Middle Class Income

This is all conjecture, as we don’t know anyone personally who has season tickets to the NY Giants. Although my uncle did have tickets to the Bengals, but he was wealthy, so that doesn’t count. But for arguments sake, I have to believe the middle class can afford to attend live football.

Season Football Tickets (estimated)

NY Giants Season Tickets: $850.00 to $7,000.00

Parking: $200.00

Food: $300.00

Playoff game (including travel, hotel, tickets): $1,500.00

Total: $2,850.00 on Up

I am pleasantly surprised at the results of this calculation. For a single guy, making $55,000.00 per year, it is certainly possible to afford $2,850.00 for a season of football fun. (I’m not counting a superbowl visit) Granted, it’s 5%  of your gross pay. But if football is really important to you and you prioritize going to live games, it’s doable.

I’ve talked a lot about spending on what matters. In short, living in accord with your personal values. For a die hard fan, the majority of your entertainment spending can go towards football.  Skimp on other expenses, and it can work! Forgo an annual vacation and eating at expensive restaurants and a football fan could afford season tickets.

For the rest of us, here are some tips and thoughts for celebrating the Superbowl on the cheap.

Barb Recommends

Gambling, Taxes, and the Superbowl at Bargaineering

How to Host a Superbowl Party on the Cheap at Personal Finance Journey

Superbowl Party Trays; Can You Save Money by Making Your Own? at Frugal Confessions

5 Ideas to Save on Superbowl Party Food, Recipes, and Supplies at Money Crashers

50 Party Recipes for the Big Game at iVillage

Superbowl and the Stock Market at Squirrelers

Score Big with a Superbowl Party at Blogging for Change

 Barbara Friedberg Personal Finance Across the Blogosphere

Be sure to visit these sites who published and promoted my work.

• Free Money Finance-Star Money Articles
• Young Adult Finance-What are Your Goals for 2012?
• My University Money-Carnival of Financial Camraderie
• Control Your Cash-Carnival of Wealth
• Carnival of Passive Investing-Afford Anything
• Totally Money Blog Carnival-Canadian Personal Finance
• Yakezie Carnival-Amateur Financier

image credit; xboxaddict80

& Update on Moving Across the Land (Part 1)

You may think living with the folks is just for the young, not so! El Carino, Zoey, and Simon took my folks up on their kind offer to live with them “rent free” after our home sold. There were surprising benefits over the cash saved!

Quick recap for those just joining in.

El Carino got a new job at the other end of the country.

Last April we courageously put in an offer on a well priced, short sale (In a short sale, the buyer pays less for the property than the seller actually owes. It happens in a falling home price environment when the seller has difficulty paying the mortgage) condo in a beautiful development. We’d heard about the horrors of buying a short sale, but thought we had plenty of time to work out the kinks.

Fortunately, we sold our existing home, but we were left with nowhere to live. What was initially expected to be a couple of days has turned into a month with the ‘rents. (Update… 6 WEEKS WITH THE ‘RENTS)

From April until June, we were waiting to hear whether our offer on the property was accepted. After 2+ months, our offer was accepted.

Next hurdle, get our financing lined up on the condo. It didn’t seem to matter that our credit was great, or that we have successfully paid off several other mortgages. After sending reams of documents to the mortgage company over the ensuing weeks, we thought we were nearing the end of the loan approval process.

During the final week in July, we were informed that our loan was approved and the settlement papers would arrive any day. Five days later and no documents was no surprise.

While writing this article I received another call from the mortgage broker. Oops, they need one more piece of information. So our loan is approved, but we can’t close until we get this next piece of information is clarified. Mind you, it’s 7:14 PM on Friday evening. Not likely we’ll be able to do much else on this matter until Monday.

A week later, our loan is really approved. Another three days and the remote title company notary visits  the ‘rents home for us to sign the settlement documents.

Next, I’m off to the bank to wire the funds for the down payment!

In a few days weeks we will begin our journey to our new home with stops at Mount Rushmore and Brice Canyon. Our four month process of moving across the land is drawing to a close… stay tuned for the final episodes!

How We Saved the Cash; Would This Work For You?

Had the folks not offered their home, we would have been in temporary quarters for about $100.00 per night! A few days wouldn’t have been
too bad, but our temporary stay ran into an entire month 6 weeks or a total savings of more than $3,000.00 in hotel bills.

Although we are buying some food and incidentals, and taking the ‘rents out to dinner on occasion, the savings are huge. The folks love having us here, we’re old enough to clean up after ourselves, and we are pleasant company .

The evenings, filled with watching movies and playing games has been fun and a unique change from our usual routine.

For those readers strapped for cash, out of a job, or in transition; if you have willing relatives, go hang out with them for awhile. But remember, be pleasant, courteous, pick up some groceries, and take them out to eat once in awhile. You’ll save some cash and might even enhance your family relationships.

How have you handled major life transitions?

image credit; kc2014

LIVING IN CHAOS!

For a quick overview of Investing Strategies, pick up my FREE eBook; 20 Minute Guide to Investing (top right of the page). If you like what you’re reading, sign up for my RSS feed or email subscription and follow me on twitter so you get the word immediately.

“If you want to achieve things in life, you’ve just got to do them, and if you’re talented and smart, you’ll succeed.” Juliana Hatfield

I’ve taken this approach, I don’t evaluate my ideas too much, but just dive in. That eradicates the possibility that I’ll avoid new activities because I’m scared. I assume that I’m talented and smart enough to achieve my goals.

Moving day is approaching. The kitchen packers are coming in 5 days and the movers are coming in a week. Our house is almost sold, yet we still have NO CONFIRMATION of acceptance of our (short sale) condo purchase in our new land. In one week, we have no address and no secure internet connection.

All of my work and personal financial records require a secure internet connection.

In one week, unless I find a secure internet connection, while in transit, I am completely cut off from all of my financial records. That includes my job records!

This is an uncertain and stressful time, here’s how I’m coping, along with tips and inspiration for your stressful times.

ACCEPTANCE

Clearly delineate and accept what you can and cannot control.

 There are always things in life you cannot control. Do not waste time and energy trying to change people, events, and circumstances which are unchangeable.

If you are stuck in debt or a financial morass, you must face up to your situation. You cannot begin to move forward, if you do not know where you are. Accept, don’t avoid, your financial picture.

 It is unlikely I will be able to check online financial records for up to one month after we move out of our home. I can live with this likelihood, if I plan ahead.

MAKE A PLAN

A road map in life propels you towards your goals. Use goal setting and planning to make life smoother. 

When you’re stuck, stressed or overwhelmed, your plan is your guide.

Generally, I keep records of all income and spending in Quicken and update on line. I predominantly use a debit or credit card and then download and categorize my expenses. Then it’s easy to check against our budget to see how we are doing.

Without a permanent address and secure internet connection, this is not going to happen.

Here’s my plan:

• Upload all financial records a few days before we leave.
• Review and print hard copies of all investment accounts at that time.
•  To avoid overdrafts, transfer adequate funds into spending accounts.

DO LESS & SPEND LESS

Although counterintuitive, accept that this is a time when certain tasks are not going to get done. Get help from others. Cut out the uncessecary. Use your plan to focus on the important. Personally, I value relationships and make sure to prioritize my family and close relationships. Go to your boss  to discuss options during a stressful period.

During times of stress, temporarily delete the unimportant activities from your life.  

Do not add to your stress by overspending. Avoid the temptation to manage stress by shopping.

We are remarkably relaxed giventhe magnitude of our stress. El Carino and I are enjoying the extra time we have together by playing games, making movies, and working out; low cost-high fun.

What are your personal and financial tips for coping with stress?

GUEST POST; by, Rob Bennett, creator of a stock cycles calculator called “The Returns-Sequence Reality Checker.” His bio is here. 

Most People Hate Budgets

I love mine. I believe that that’s what makes me an effective saver.

Is it Possible to Like Your Budget?

Money for Fun?

buys financial freedom. Financial freedom can be put to all sorts of exciting purposes while you are in your 20s and 30s and 40s and 50s.

For a quick overview of Investing Strategies, pick up my FREE eBook; 20 Minute Guide to Investing (top right of the page). If you like this site, sign up for my RSS feed and follow me on twitter so you get the word immediately. 

 

& BARB RECOMMENDS LINK ROUND UP!

Just got done with a twitter chat led by Ashley Jacobs of Wise Bread. The theme of the chat was managing your money and keeping 

COST CUTTING

 track of it. Ashley laid down the gauntlet after I confessed that I don’t monitor my spending very frequently. She challenged me to blog about it. 

Not one to shy away from a challenge, I am going to share a bit about how I can get away without monitoring my spending daily or even weekly. And before I go any further, this is a, “Do as I say, not as I do,” article.  

I’m one of those unusual people that has maintained a budget for my entire adult life. Not only that, but, El Carino and I have always lived beneath our means. On top of that, every home we bought cost less than our approved amount. Getting me to splurge is like pulling teeth. In fact the only debt I have ever incurred is mortgage debt. That’s right, I’ve never taken out a car loan! 

Before you start getting annoyed with me, I wasn’t always like this. 

When I was a teen, they posted my picture in the dictionary next to the word “PROCRASTINATE.” It was not unusual for me to wake up at 5:00 am to do the homework due at 9:00 am (that same day!). I was a huge procrastinator and completely undisciplined. 

Flash forward a couple of decades. 

Somehow, as I entered adulthood, I became a “get it done in advance” girl. 

As I matured, I practiced smart money and life management habits. I invested early, budgeted young, lived beneath my means, and guess what….. with all that practice, I don’t need to monitor my spending too often because living beneath my means is a habit. And the reason I don’t have to track expenses daily or weekly is that I’ve been doing it for years already! 

Just to be clear, almost every expense is recorded in Quicken, I just don’t review them all that often . 

As I’ve said many times, one of the most important paths to wealth is to be mindful about your spending, and tracking expenses is a key activity. Do you agree? 

Barb Recommends:

• Financial literacy month kick off at GenX Finance. Make the commitment to become financially smart!
•  Moneyning asks, Will I Ever be Able to Retire? Wonderful “face reality” discussion.
•  Problem solving at Krantcents-Great format and ideas!
•  Prairie EcoThrifter asks How to Avoid Overbuying. This is a great reminder!
• I’m always fascinated with “make more money” posts. This Successful Guide To Craigslist from Wealth Informatics is filled with helpful ideas.
• Who doesn’t want to know, How to Rank Highly in Google Search at Smart Passive Income?
• Watch fees and have an earlier retirement at Extra Money Blog
• Is saving always worth it? Maybe not…Squirrelers
• Oblivious Investor asks, Where to Find Financial Advice; Probably Not Your Broker. This is a really important topic that I’ve blabbed about more than once!
• 10 Things We Can’t Live Without, But Grandma Did, by Len Penzo talks about how spoiled we have become. Read it and feel really greatful.
• More money lessons from Mark @ Buy Like Buffett, published at Entrepreneurs Journey!
• Who doesn’t want to make money blogging? Crystal, from Budgeting in the Fun Stuff, one of the most ambitious bloggers out there tells you how!
• This article is literally unique. If you have a desk, you must read this productivity article from bripbrap
• My Personal Finance Journey hit it out of the park with this Savings versus USA.
• Awesome contest at StoopidSuccess.
• Are you sick of budgeting? This article at Wealth Informatics the topic out in a easy-to-grasp format.

Featured Articles & Mentions Across the Blogosphere:

• Guest article @ Everyday Tips and Thoughts
• Guest article @ Centsible Life
• Carnival of Financial Planning at Consumer Boomer
• Yakezie Carnival at Retire by 40.
• Budgeting in the Fun Stuff
• Retire by Forty
• 101 Centavos
• Tight fisted Miser

To continue the Wise Bread twitter chat conversation…… here’s the question for you which I stole from Ashley: 

How often do you monitor your expenses? 

image credit; ucogency

I am honored to be hosting this Carnival Today. Please forward this Carnival Link to anyone who likes SAVING MONEY! Isn’t is fascinating how conserving resources not only helps our pocketbooks, but also the environment? Keep waste and excess to a minimum and help the world.

These articles range from saving money eating out, travel, doing your taxes, using (or not) your car, your bank, and many other topics. Learn something new and tell your friends about all the great money saving resources here. 

Silicon Valley Blogger presents Don’t Let Costly Auto Repair Estimates Get You Down posted at The Digerati Life, saying, “How you can control your spending on car maintenance.”

Donna Freedman presents Do you scrape burned toast? posted at Surviving and Thriving, saying, “The waste of food in this country is staggering. It reflects poor stewardship of resources, an increasing separation from the production of food we eat, and an inability to comprehend just how blessed we are.”

CPF presents 3 Budgeting Ideas That Changed My Life posted at Christian Personal Finance, saying, “Check out these principles that can change your life if applied.”

Craig Ford presents The Best TurboTax Discounts | Save 35% Off posted at Money Help For Christians, saying, “The results after scouring the web for TurboTax discounts.” i am eligible for about half of these discounts…BIG SAVINGS!

Tom @ Canadian Finance Blog presents Financial Fast: Week Four posted at The Canadian Finance Blog, saying, “While trying a financial fast to save money and reduce spending, we encountered some unforeseen obstacles, but learned some important lessons as well.”

Jim Yih presents The Latte Factor posted at Retire Happy Blog, saying, “The Latte Factor is those small, day-to-day purchases that, when eliminated, can actually provide you with a significant, and somewhat surprising, sum of money.”

Michael Pruser presents Eating Healthy is Becoming More Expensive Every Day posted at The Dough Roller, saying, “No wonder why America has trouble with weight … have you seen the cost of healthy food lately?”

Michael presents Is Frugality Still Here? posted at Consumerism Commentary, saying, “Even though we talk about the term often, has frugality left economics for good?”

Dave@50plusfinance presents The Best Time of Year to Buy Things and Go on Vacations posted at 50 Plus Finance, saying, “It’s always time to save some money. Knowing which products to buy at right time of year will lead to more money in your pocket.”

Kristia presents My Menu/Grocery List Clipboard posted at Family Balance Sheet, saying, “This clipboard saves me time and money.”

Money Beagle presents Saving The Day (And Some Money) At Work posted at Money Beagle. Clever thinking and a bit of elbow grease led to big savings!

RE Ausetkmt presents Remember Earth is Our Ship ? Not Our Dumpster posted at Reality Ausetkmt – Recycled Frockery, saying, “We’re talking about Earthships again. this time we’re showing you both the high end; and the low end. the designer and architect Mike Reynolds committed his skills toward green relief. his chosen project was to begin to build sustainable housing in Haiti. of course they’re earthships.”

Stephan Marks presents How to Make Money with Paid Surveys posted at Promo Code Center. A balanced approach to a tricky topic!!

Paul Foley presents Eating out on a budget: Restaurant.com posted at Life and Times Living with In-Laws, saying, “Walking through the math of Restraunt.com certificates to get the best possible deal”

FMF presents The Cost of Being Overweight posted at Free Money Finance, saying, “Save money by losing weight.”

MoneyNing presents 6 Ways to Avoid the Temptation to Eat Out posted at Money Ning, saying, “Do you always want to eat out? Here’s how to avoid always spending too much on food.”

Arjun Rudra presents How To Adapt Your Investing Approach To Changing Market Cycles With Eden Rahim, Portfolio Manager at Jov Investment Inc. posted at Investing Thesis, saying, “Highlighting the importance of adapting your investing approach to changing market cycles with Eden Rahim, Portfolio Manager at Jov Investment Inc.” A sophisticated investing article filled with fascinating data.

Saymour Hodge presents How To Be Frugal: Frugal Car Shopping Tips posted at All Things Frugal, saying, “Shopping for a car can be an anxiety-inducing experience. It’s a major expense and a purchase most people usually only make once every handful of years. The goal in shopping for a car is to walk away feeling good about your purchase. Follow these tips to achieve that goal”

Jeff Rose, CFP presents Why Wielding a Credit Card is the Best way to Approach Credit Restoration posted at Jeff Rose, saying, “For those people looking to rebuild their credit standing, the answer is, perhaps surprisingly, use of a credit card.”

N.W. Journey presents Understanding Your Financial Values posted at Networth Journey, saying, “Your financial values affect how you spend your money.”

Jeri Ford presents 27 Websites to Visit Before You Book Your Next Vacation posted at Help Me Travel Cheap, saying, “Save money on vacation with these websites.”

Miranda presents Why I Don’t Shop Much at Club Stores posted at Coupon Shoebox Tips, saying, “Club stores may be a foundation of frugal living, but for a small family like mine, they aren’t worth the membership fee.”

Rhiana presents Why Be Frugal? posted at A Frugal Life, saying, “Why Be Frugal? -Inspired by a Seth Godin blog post on What is School for? I decided to post on why you might want to live a more frugal lifestyle. The question comes up as I think of a lot of people I know who SHOULD be a bit more frugal, but aren’t”

Kyle James presents 6 Easy Ways To Save $500 Per Month posted at Kyle. Give them a try!

Niki presents Why we are a one car family posted at Debt Free by Thirty.

FIRE Getters presents Car Pool, Ride Share, Hitch Hike your way to Fun & Dollars! posted at FIRE Finance, saying, “There are days when we wished someone else was at the wheels so that we could relax for a while. Bad boss, uncooperative colleague, difficult deadlines, too many meetings – often build up a lot of stress. Imagine how risky it is if we had to drive on such a day when our nerves were already strained. To add insult to injury we could end up being late for dinner, courtesy bumper to bumper traffic. Sounds familiar?”

liverealnow presents Medical Costs and Choices posted at Live Real, Now, saying, “Medical costs can be insane. Is it worth it to automatically pay for the best doctor for every procedure?”

Craig/FFB presents The 8 Least-Evil Banks as Determined by CNNMoney posted at Free From Broke, saying, “The banks listed here can help you save on dreaded bank fees which most banks are increasing.”

Mr. Cents presents Pocket Change posted at Personal Cents.

MoneyThinking presents So, Today, I Went to the Store? posted at Money Thinking.

Dana J. presents Start Saving For Your Summer Vacation Now! | Not Made Of Money posted at Not Made Of Money, saying, “Start saving money now for that summer vacation so you can enjoy it debt free.”

Ken presents Where to Find Tax Help and Free Tax Preparation Service | Spruce Up Your Finances posted at Spruce Up Your Finances, saying, “Even with the free online tax filing, there are still a number of people who just don’t want to do the taxes themselves. Shows the list of IRS programs that offer free “person-to-person” tax preparation service.”

Tim Chen presents Continental 50,000 Mile Credit Card Sign Up Bonus (United Too!) posted at NerdWallet Blog – Credit Card Watch, saying, “Continental and United are merging their mile programs at the end of 2011, as part of their recent merger, so users of both mile programs should take note of this huge sign up bonus offer.”

Grace presents Frugality: Temporary, Tenuous, and Not Really Our Style posted at GRACEful Retirement.

Fanny Seto presents Free 2011 Hello Kitty Calendar posted at Living Richly on a Budget, saying, “This is a free, printable Hello Kitty calendar for 2011.”

Barbara Friedberg Personal Finance has 25 ideas for recreation that can save you big bucks in; 25 CHEAP IDEAS FOR FUN. Add to the list and pass it on!

That concludes this edition. Submit your blog article to the next edition of festival of frugality 2 using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

image credit: woodleywonderworks

Stop over and check out my guest post at Consumerism Commentary entitled Invest in Stocks or Mutual Funds?

MAIN TOPIC: Is it Strange That a Personal Finance Blogger Has No Budget?

After all of my relentless haranging about the importance of saving, budgeting, and managing your money, that I have no budget now may seem strange. In fact, I never would have revealed this here because it’s so counter to EVERYTHING I BELIEVE IN! So what gives? Kevin, over at Invest It Wisely threw down the gauntlet and challenged some Yakezie personal finance bloggers to think critically and play devil’s advocate with our core beliefs. Not one to shy away from a challenge, I decided to reveal why I have no budget in 2010.

This is a bit difficult to justify since I like love budgets. And I particularly like the many variations one can use, like the gazelle budget! The order and discipline a budget or spending plan allows is an invaluable aid in personal finance. In fact, maintaining a budget is a PERSONAL FINANCE CORE BELIEF of mine!

PRACTICAL APPLICATION: How Going Against My Belief in Budgets Makes Sense

Another tenet of mine is to live in accord with your values. That means spend your most precious resource, time, in the way that affords you the most pleasure and reward possible. Let me explain what I mean. In How Trading in a Car Every Two Years Makes Good Financial Sense, I relate the story of a man who values driving a new car above many other material things. He would rather drive a new car than go on vacation. So, even though economically it seems wasteful to trade in his car so frequently, the amount of enjoyment he gets from the car FAR OUTWEIGHS the money he would save by keeping his car longer. Furthermore, he is not living beyond his means in order to drive a new car. (He owns his condo free and clear!)

Personally, El Carino and I do not value driving new cars. We would rather travel and spend money on other things than transportation. That is why our cars are 7 and 12 years old and we travel a lot. 

BACK TO BUDGETS!

This year Quicken personal finance software required an upgrade. I had no choice in the matter and had to upgrade to version 2010! I have used Quicken since last century and had over a decade of financial transactions in my personal portfolio. You can imagine, being an investment professional and passionate about finance, my records are very important and well organized. Additionally, in the software, I maintained our annual budget.

Our original Quicken file with all of our historical records was too big to transfer. After many hours with customer service as well as sending my whole file to their “workshop”, my data did not transfer correctly.

I decided to forgo my prior files and start fresh with the 2010 data. After inputting all of the transactions for 2010, I WAS DONE! It took way too much time and energy. I MADE THE DECISION THAT THE ADDITIONAL TIME REQUIRED TO MAKE A BUDGET FOR THIS YEAR WAS NOT WORTH IT TO ME.

I made a conscious decision to go against my long held behavior of maintaining a budget. I valued the time spent on other activities over the additional time required to set up a 2010 budget. Let it be known that I tend toward thrifty behavior, pay off our credit cards every month, have no debt other than our mortgage, and save close to 15-20% of our income each year. After so many years of maintaining a budget, I have a fairly good idea of what we can spend each month. So far it is working out okay. Although, NEXT YEAR I AM GOING TO BEGIN OUR BUDGET ANEW. But for now, the core belief that “one must budget every year”, is not suitable.

Have you ever challenged long held beliefs? How did it work out?