Owner: Thrifty Penny URL:http://thriftypenny.blogspot.com Join Date: Fri, 19 Oct 2007 17:37:36 -0500 Rating:0 Site Description: My name is Penny, and I am a 20 something year old who is struggling with the dilemma of living the American dream without drowning in debt. I entered the working world in January 2006 with a lack of financial knowledge, massive amount of debt, and zero i Site statistics:Click here
Part-time Seasonal Job 2007-10-26 08:21:00 I decided to get a part-time seasonal job at a retail store. I’d earn some extra cash, which will go into savings. I learned that it’s easy to get a job in the city compared to a small town; I grew up in a small college town. Obtaining a part-time job in a small college town was like pulling teeth! The competition was fierce among high school and college students; there was a limited number of jobs and a surplus of applicants. Well, I applied for a seasonal position at the Gap this past Monday. I barely filled out the work history, and I had to list three references. A couple of days later, I realized that I listed an outdated phone number for one of my references. That would have been an automatic out in my hometown; I wouldn’t even make it to the interview round! Fortunately, I had an interview Tuesday evening. On Wednesday, they called two of the three references I listed, and I found out that afternoon I got the job! That experience was nothing like I expected; maybe the Gap
Career Crisis 2007-10-26 04:57:00 Full-time job:I heard rumors circulating around the office that the clients are putting projects on hold. This is important because if there's less work the company needs less transportation people. I'm sure the company as a whole will support the Texas offices and try to work share with other offices before taking drastic measures. But, what if there isn't enough work to support the Texas offices? Then, layoffs are imminent. Internally, I freaked out. I am not financially ready to be laid off; I'm sure nobody is ever ready. However, I have approximately $950 in savings and $33500 in debt! I can't afford to be laid off. I'll have to use credit cards to support me financially until I secure another job. My savings isn't adequate. I know that these are only rumors, but it's better to be prepared. I'm going to cut back on my debt repayment plan and contribute more to savings until further notice. Once I realize my job security is no longer in question, I'll go back to paying my Read more:Career
, Crisis
What if I Were Debt Free? 2007-10-25 21:39:00 I've been tagged by Frugal Law Student in a post "What if I Were Debt Free?"Truthfully, I've never thought far ahead. I'm so busy concentrating on the finish line that I never thought past the finishing the race. Will I have a victory celebration? Or go back to my poor financial habits? Continue building wealth? Getting out of debt is similar to losing weight. Once I reach my ideal weight I'm scared that I'll slip into my old habits and gain weight again. However, I realize getting out of debt and losing weight requires lifestyle changes.I'm sure I'll have this awesome feeling of relief like a burden has been lifted from my shoulders. I can't even imagine the feeling...a day without financial worries. I'll still continue living frugally. I believe in spending money that creates positive memories, and I'll find ways to save money on bills. Once I'm debt free, I'll beef up my contributions towards savings, retirement, and investing. I want to donate more to charities and trav
Reduce Expenses: Electricity/Natural Gas 2007-10-25 21:36:00 There are several ways to reduce electricity and natural gas expenses. Air conditioning is an expensive luxury in Texas. First, shop around for a low price per kilowatt hour. If you live in the Dallas/Fort Worth area check out Power to Choose. Several electricity companies are listed. Determine if locking into one year contract is cheaper and avoid monthly fees. Buy a programmable thermostat to control temperature during the workday. Or employ an extreme tactic don't run the air conditioner at all! A crazy thought in Texas! Since the winters are mild in Texas avoid using the heater and sleep in layers of clothing and thick blankets. Better yet, buy a space heater and shut doors to keep the room of interest warm. Go to places with "free" air conditioning and heating during weekends...malls, library, etc. Also, avoid running the dishwasher and taking a hot shower simultaneously. Also, reduce your electricity and water bill by running the dishwasher, washer, and dryer when it's full. Or Read more:Expenses
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Reduce Expenses: Rent 2007-10-21 09:02:00 This series, Reduce Expenses
, explains how I eliminated the "fat" from my budget and found creative method to lower bills.1. RentLook for affordable housing and avoid getting an expensive apartment. In the end, the rent and utilities are not worth it. You are basically throwing your money away and have to nothing to show for it. Do your own research, and don't trust apartment finders. They'll gouge you for every dime. Don't compensate safety for price. Some cheaper apartments are located in questionable areas. However, apartments located away from the city are cheaper. If you live in a state with summers as all 4 seasons like Texas make sure the apartment doesn't face west. BF and I brought a compass to make sure the apt doesn't face west. The sun sets in the west and causes the apt to stay constantly hot, which increases the need to leave the A/C running. The Texas heat is already unbearable! Avoid this problem, and that reduces the electricity bill substantially. Get a smaller a
Blog = Business 2007-10-19 19:58:00 One of my future goals is to own and operate a business. Writing and running a PF Blog similar to running a business, in my opinion. All the business owners are probably scoffing at this analogy, but I see quite a few similarities. Typing and updating a PF blog requires time and effort with no initial return, which is similar to a business in the early stages of infancy. Then, I have to spend time promoting, marketing, and directing traffic to my blog as business owners do with their corporations. Additionally, I develop relationships with fellow bloggers and readers through emails and comments. How is that not similar to running a business? Networking and schmoozing with clients? Also, I’ll run promotions in the future such as giving away stuff and submitting articles to carnivals to keep current readers and attract new ones. This is comparable to stores having sales to keep and gain more customers. I enjoy waking up and updating my blog; most business owners wake up early and look Read more:Business
Five Expensive Habits 2007-10-19 11:21:00 MSN's article, 5 Most Expensive Habits, discusses the five most expensive addictions. The article was an eye opener. I always assumed only hobbies are expensive...now I know basically anything that is fun is expensive. *Sigh* The top five most expensive addictions are:Alcohol: Drinking is fun in moderation, esp. during social events such as happy hours or parties. It allows you to bond with other people and relax from the daily stress associated with life. However, alcohol is not fun in excess. Imagine the results: making a fool of yourself, vomitting, unpleasant hangovers, or even worse...drinking and driving. Alcohol is expensive, and I'd rather spend my earned dollars elsewhere. Islam prohibits drinking of alcohol, and I have never seen my parents drink. For those who are trying to lose weight, one gram of alcohol contains 7 calories. Think of the extra time on the treadmill needed to burn the calories from alcohol.Smoking: Mother is an immigrant so I grew up with mixed American a
Money Matters 2007-10-18 21:35:00 Here are some great financial articles I've read:Roth IRA Contribution vs. Emergency Fund Savings @ My Money
BlogGreat post exploring which vehicle is better to contribute your limited dollars.What Percentage Should I Contribute to a 401k Plan @ My Money BlogAnswers a common question among entry level college graduates.Can You Afford an Emergency @ Frugal Law StudentExplains setting and savings an emergency fund. A must for everyone!What is Financial Security @ Get Rich SlowlyAn analysis of the definition of financial security.Live on Less Income-Give Yourself a Voluntary Pay Cut @ Cash Money LifeAnswers to a hypothethical situation: What would you do if your your salary is decreased by 15%, prohibited from switching jobs, and can't borrow money?
Future Plans 2007-10-18 20:18:00 So I have been super busy with work for the past two weeks. Currently, I work for a architecture/civil engineering company. My specialty is transportation engineering; I design highways. (I am destined to live in cities with terrible traffic!) I like and dislike my job. I like my pay and benefits. I don't like how people are treated and other corporate drama. I'm not sure if I want to be a civil engineer for the rest of my life.I eventually want to own and run a business. I'm still not sure what industry or any of the other logistics. I have an interest in pursuing a degree in either law or accounting. I took a couple of law and business classes in college. Construction, environmental, contract, or patent law sounds interesting. Also, my civil engineering degree won't be a total waste then. However, I enjoy working with numbers, especially money! When I volunteered completing low income families' taxes I truly enjoyed myself.With either degree, I can have a private practice. Maybe Read more:Future
Vacation Dilemma 2007-10-16 11:28:00 I need to decide where I want to go for vacation next year. I want to start planning now so I have more time to save. I usually go on vacation during late May to early June. I have approximately 6 months to save. My goals are to spend cautiously and to have enough cash to cover all expenses. I plan to use my rewards credit card to earn points and make purchases, come home, and pay the credit card bill with the money in my checking account.My top two choices are:1. Belize- for scuba divingAdvantages:I will be going with my boyfriend and his parents. Boyfriend and his parents will pay for majority of expenses.I’ll be diving among beautiful sea life.I’ll spend quality beach time-the ultimate vacation away from work!I can work on my tan?Disadvantages:The flight and hotel is expensive.I’m spending way too much time with his parents.Scuba diving is tiring.2. Bangladesh- to visit intermediate and extended familyAdvantages:I want to see my family in one setting before everyone leaves the Read more:Vacation
Money Matters 2007-10-15 13:11:00 I’m pleased to say “Fat Tax” was chosen as one the lucky articles posted in this week’s carnival. Check it out! Meg from Wealth is Good wrote how debt is similar to weight gain. It’s easier to stay financially and physically fit.Budgeting Babe wrote an inspirational article about setting financial or any type of goal.Trent from The Simple Dollar has a great article on how to beat impulse shopping.We’re in Debt has a good philosophy when it comes to buying purchases before the money materializes. Read more:Money
Islamic Mortgages 2007-10-14 22:05:00 Grad Money posted a link to an article "Demand for Islamic
Mortgages." As a Muslim, this article sparked interest. I didn't know such a concept existed. (I stopped attending Sunday school when my parents divorced. Mother didn't have money to pay for it.) Apparently, demand for Islamic mortgages increased substantially because due to Shariah law of Islam. This law forbids the concept of interest; Muslims shall not charge or earn interest. In order to avoid charging or paying interest, two methods are offered: Murabaha Mortgage and Ijara Mortgage. Murabaha Mortgage is similar to a conventional mortgage paying 20% down and making fixed payments; however, the house is registered as yours from the very first day. Murabaha Mortgage is more expensive upfront so only the wealthy can "qualify" for that type of mortgage. Ijara Mortgage is cheaper and popular. The buyer pays rent and a portion towards the house monthly.This is news for me. I don't think Mother even knows about this type of mor
Fat Tax 2007-10-12 10:18:00 My boyfriend and I imposed a “fat tax” on ourselves. Boyfriend and I penalize ourselves when we display unhealthy habits that promote obesity. We will put the change in a jar; the jar will serve as a daily reminder for our laziness. The change collected will be used towards apartment furniture.Rule #1:Boyfriend and I must go to the gym and workout 6 times a week. If we miss a day and don’t make up the session we have to put 75 cents into a jar. We decided on 75 cents because that’s how much we calculated our gym membership costs daily. The jar will constantly remind us how much money we are throwing away at a gym membership when we don’t exercise. A gym membership costs money! That is one of the costly expenses most people have and never use. I like holding onto my money, and when cash and coins slip through my fingers for wasteful reasons…I am not happy! I’d choose going to the gym anytime over lounging around my apartment and paying a fee of 75 cents for my own apartmen
Importance of an Emergency Fund 2007-10-12 06:27:00 I have a deadline today so I have been busy slaving away at work and ignoring the real world-otherwise known as life. Yesterday, Friend X who is also a coworker interrupts me abruptly and asks for a hug. I awkwardly give her hug while trying to leave the world of numbers to reality. Then, Friend X tells me that she had a car accident. She rear ended another car, and her car is towed away.There are so many financial horrors in this story. Friend X recently spent most of her savings on positive items: living room furniture and an extra payment on her student loans. So she spent her savings on constructive items, but Friend X’s savings is close to zero. Her car was an older vehicle so it’s highly likely that her car will be deemed as totaled. To make matters worse, she only had liability on her car. This means if the accident is deemed her fault she won’t get any money for her car. Since she rear ended the other car it’s most probable that the accident is deemed as her fault. But, Read more:Emergency
Budget Changes 2007-10-11 13:30:00 I decided to make a few changes in my budget. Now, 4% of my net pay will be directly deposited into my savings account. I filled out the necessary paperwork at work to get the ball rolling. Before, I had 100% instead of 96% of my paycheck direct deposited into my checking account. The money allocated towards savings lingered in my checking account. My fingers itched to spend the money. I couldn’t fight the temptation and spent the money on stuff that I “needed” or couldn’t live without. With the money automatically deposited into savings, my temptation is removed. Pretty soon, my savings will grow, and I’ll be one step closer to financial independence! I’m excited about this positive financial step I’m taking!
Free Weight Loss Websites 2007-10-10 21:55:00 There are several expensive products being thrown at desperate people who are willing to spend tons of money on a quick fix item to lose weight. Spending money on diet pills is a total waste of money! The best method to lose weight is to exercise regularly and eat healthy. Did you notice how both methods are free? Usually, the most practical ways to approach a problem are the most difficult to implement. It requires time, dedication, and willpower.Being healthy is important in the long run. Great health increases longevity and keeps our bodies strong. It helps prevents costly medical procedures and reduces a chance of a stroke, heart attack, high blood pressure, high cholesterol, and diabetes. A health related illness usually depletes a person’s savings or nest egg, which prevents a person from achieving financial freedom sooner.Before you go off trying the latest expensive diet (such as Jenny Craig or Weight
Watchers), check out these free websites:SelfSparkpeopleFitdayThese website Read more:Websites
Savings Advice 2007-10-10 21:33:00 Sorry, I have been slacking on this blog. I have been really busy with both of my jobs this week. Whew! I'm so glad the week is almost over! Anyways, I came across some good financial advice while I was "cleaning" out my files on my computer.Each month, you should contribute some money to your security (having good insurance or an emergency fund), your retirement (automatic 401(k) and Roth IRA contributions), and your dreams (a savings account or an investment plan).Pretty good advice, I must say. I esp. like the idea of contributing towards my dream! I'm going to print it out, and tape this advice onto my bathroom mirror. That's my daily visual reminder, which will keep me motivated. I'll dream about this nugget of wisdom while I sleep! Good night! Read more:Savings
Quarterlife Crisis 2007-10-10 10:54:00 My obligation to pay these debts consume me constantly...sort of like that weight loss commercial where people are walking around with scales chained to their ankles. At times, I dislike my job, but I can't quit. I have several debts hanging over my head, and I can't afford to quit. However, I don't want to get fired either due to the same reason: I still have those pesky debts!I feel lost. My goals are to lose weight and pay off my debts. But what else? Before, it was easy. My purpose was to go to college, obtain a degree, and secure a good job. Mother emphasized these goals repeatedly...attend college, get a degree, and get a good job. I've accomplished that. Now what do I do? Twiddle my thumbs? While I'm driving home from work I always wonder "Ugh, what am I doing?"Eventually, I want to go back to school and get a masters. I'm just afraid how much debt I'll acquire from graduate school. I'll figure out a method to finance education. I'll probably work full-time and attend s Read more:Crisis
Does Your Job Promote Frugality? 2007-10-08 08:30:00 When I graduated college I received a degree in civil engineering. Before you start thinking I earn oodles of money, I want to tell you it's not true at all. Civil engineers are paid the lowest of all engineering disciplines. I work for a company who offers civil engineering, environmental science, and architectural services. However, my company's bread and butter is civil engineering. So it's safe to assume engineers earn more than the architects.Anyways, I have noticed a startling difference between how engineers and architects spend their money. For instance, I notice a disparity between their cars. The architects drive more expensive lavish cars. Of course, there are a few who have cheap old cars. For example, one architect drives a nice new Mercedes Benz convertible. The engineers drive older used cars even though they earn more money. They are more frugal. My boss earns quite a bit of money used to drive a 1994 Honda Accord and recently "upgraded" to an used 1997 Honda Accord. Read more:Promote
, Frugality
Money Matters 2007-10-07 11:06:00 Sorry, I've been busy lately. Here are a couple of great articles from Adventure in Money
Making.Quality of life v. quantity of lifeValue of American dolllar falling
Carnival of Personal Finance 2007-10-07 09:39:00 I'm still learning my way around the PF blogosphere. I have mastered some concepts, and I'm slowly working on others. I have enjoyed my exposure to html code; this is beneficial for career skills. Anyways, Coworker Y introduced me one new concept called, "Carnival
of Personal
Finance." I must say, " What an splendid idea!"One blogger's website (Is that even worded correctly? I'm still learning the jargon.) is the hosting site for the week and lists best personal finance articles. Such finance topics include taxes, career, money management, debt, frugality, and other fun filled financial topics. The carnivals are posted weekly and increase traffic to the blogs. I really like how the PF bloggers help each other out promoting blogs.I submitted my first article, "Too Ambitious", to the carnival of personal finance. Hopefully, I'll get picked among the list. If not, there's always next week. (I'm trying to become more positive!) I was confused during the submission process. I had pro
Positive Random Thoughts 2007-10-06 22:30:00 I wanted to share that I enjoy being busy. When I'm busy I don't have time or the temptation to go spending money I don't have! Being busy prevents me from eating unwanted extra calories. Yes, I was one of those people who ate when bored. I'm busy with my full-time job, part-time job, this blog, and exercising. I'm on a mission to dig myself out of debt and lose weight. One day I'll be one skinny sexy smart lady with oodles of money! Think Reese Witherspoon. Being busy isn't a bad thing until the apt looks like a wreck! Read more:Positive
, Random
Impatience 2007-10-06 20:00:00 I created a schedule that estimates when I will pay off all my debts. I only considered income from my full-time job. This schedule doesn't factor in potential raises, increase in expenses, and income from the second job. As I mentioned before, the private student loan is at 0% so I will continue making the minimum payments of $200 until the loan is paid. Right now, I am concentrating on the credit card with a balance transfer interest rate and my auto loan. According to my schedule, I will pay the debts completely by:Credit card: May 2008Auto loan: March 2009Federal student loans: October 2009Private student loan: June 2010This is a conservative estimate. Of course, I'm aiming to pay them before the estimated date. Just looking at the dates is frustrating. I am so impatient. It seems like the auto and federal student loans will take forever to pay them off! However, I am going to stick to paying the highest interest rate loan because I will save money rather than paying the loan w
Finances Update 2007-10-05 18:53:00 I paid the credit card balance of $350 completely. Sweet! Something to celebrate! That credit card had an interest rate of 17%, and I wanted to pay the balance before it accrued interest. I paid the minimums on the other debt.I earned extra income from my second job. I used that paycheck towards debt and savings/emergency fund. I paid a medical bill and a friend. I put the remaining money into my savings account. I need money in my savings in case another financial catastrophe occurs. I’m aiming to have $2000 in my emergency fund.My net worth increased from $-28120 to $-25966. The debt meter on the right reflects my progress. As you can see, I am slowly chipping away at my credit card debt, auto loan, federal student loans, and private student loan. I want to have at least $2000 in my savings/emergency fund before I start throwing money at my debts. I want to feel safe knowing I had some money in the bank in case a financial disaster occurs. I am sticking to my budget loyally, and I Read more:Update
Debt Repayment Efforts 2007-10-05 12:26:00 In order for me to maximize my debt repayment efforts, I reduced my expenses, obtained a second job, and work overtime occasionally.Reduce expensesForemost, I looked at my budget and determined areas where I can completely eliminate or substitute a cheaper alternative. To keep living expenses low, I live with a roommate. My net pay per month is higher than $2600; however, I try to live on $2600 a month. I’m trying to live below my means. The excess amount goes either into savings or towards debt. Here is a breakdown of my expenses:Monthly net pay: $2600DebtCredit card $480.00Auto loan $380.50Federal student loan $112.36Private student loan $200SavingsEmergency fund $100Savings $136.24RetirementRoth IRA contribution $100401(k) contribution 4% of gross payInsuranceAuto & renters insurance $101.40Rent and UtilitiesRent $437.50Sewer/water/trash $20 maxElectricity $50 maxCell phone $40Cable/internet $25Natural gas $11 maxMiscFood $160Gasoline $80Toiletries $20Mad money $20Personal $12
Blog Business 2007-10-27 09:37:00 When I started this blog I had intentions to earn "millions" while typing this blog. However, I realized I enjoyed this blog more as a hobby. Also, my information won't be tainted by adverstisements. I wouldn't feel comfortable promoting a product I didn't use. I'll find another channel to earn revenue. Additionally, I didn't feel comfortable giving out my social security number to various websites like Linkworth, Review Me, etc. I know I could have applied for EIN, but I realized I cannot make a hobby into a business. It would remove all of the fun! Read more:Business
Reduce expenses: Cable/Internet 2007-10-26 15:14:00 Cheapest method is to forgo cable/internet or take advantage of free amenities offered from the apt complex. My previous apt offered free basic cable and a business center for internet access. I had an old school TV which I'd watch television occasionally. I find it extremely difficult to live without internet. I realized I can surf the web during my lunch hour or during off hours at work…free internet access! I sit in front of a computer 8 hours and don’t want to look at a computer after work. That’s money down the drain if I’m making payments towards internet. Also, sitting on a chair or couch isn't good for your health. There is always a possibility of weight gain and developing health problems. Stay active! I’m also willing to spend my hard earned towards something beneficial rather than TV. I grew up reading books for entertainment, but I also grew up with basic free cable. I can handle my life without TV.However, BF is the complete opposite when it comes to television Read more:Cable
, Internet
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