Most people are not comfortable negotiating for things.   Negotiating is one of those awkward things that makes most people want to just throw in the towel and try to be ‘fair.’  Well, life is not fair and that is great new for you.  If you have the cahones to tip the balance in your favor.

As a culture we are taught that negotiating is uncomfortable and awkward, and it can definitely feel that way but just like anything else, practice makes perfect.  There is a graphic I like:

Now, the goal is the push the negotiation so that you are to or near the “other’s” minimum.  I am not going to go into specific tactics, there are entire websites dedicated to negotiating but I have a few points for you.

-The average person who negotiates their salary upon higher ends up with at least 10% more than the person who does not

-Contrary to popular belief, negotiating will not cost you the job

-You can negotiate more things than you probably think you can.  For example, we actually negotiated with Best Buy when we bought our TV and got them to knock $100 off the price.  Thats right, best buy.

-Don’t be afraid.

Step one I want everyone to try.  Call your credit card company, and ask them to lower your rate.  If they refuse or make up and excuse, tell them you would like a 10% lower rate.  If you are already at 15% or under, tell them you want 5% lower rate.  You hold the chips here, you can mention you will balance transfer elsewhere, you can mention you are going to consolidate with a loan at another bank.  The credit card company has everything to lose (your monthly fees) and nothing to gain.  Some may not budge at all, but I think you will surprised if you try…

What is worth buying?  Its something I get asked fairly frequently and something I seem to think about frequently.  The funny thing about it is, it seems to vary from one day to the next what I think is worth it.  Some days I think my collection of tequilas was worth buying and other days (particularly mornings after) where I think they were the worst investment I’ve ever made.

All joking aside, there are things that I never regret buying and have told myself over and over again what a great investment they were.  For today I am still on quite a health kick that my wife and I got on before we went on vacation to Mexico (another thing worth spending on, that I will talk about sometime soon!).  So today here are five things worth investing in for your health that I do not regret spending money on.

1)  Ipod
I have had a second generation ipod nano for what feels like forever.  Its the little black square one that holds I think 2 or 4 gigs.  It is by far the most long lived $100 I have ever spent.  I listen to music everytime I work out and I have a psychological dependence on music for some sort of rythm while running or lifting.  If you do not need that, more power to you.  If you find music motivating, get yourself one.  You don’t need a brand new shiny one, get a refurbed old model.  In fact, I have gone through more ipod armbands than I have ipods (3 to 1).

2) Comfortable Clothing
When I was a kid I used to run with my dad.  We would routinely run two miles.  Since then I have never done any serious running outside of a sports environment.  I started to try to get in my cardio when I realized that I was much fatter than I had been in years and I did not have time to joing 4 sports leagues to get my cardio in.  I quickly realized that it was not as simple as when I was younger; aside from being winded quickly, I was uncomfortable.  To be blunt, I was chafing badly and it made it miserable to run.  I went to a local running place and bought a pair of running boxers for $30.  Immediate difference.  I could focus on running instead of focusing on being uncomfortable.  I soon was up from half a mile to nearly 4 miles.  As a side note; if you have not run in a long time and are out of shape, be careful of shin splints, that was my main limiting factor.  I went from 223 lbs to a very lean 197 lbs.  See picture.

3) Gym membership
I know many people think this is a waste of money but I disagree.  If you use it, it is an excellent investment.  I simply cannot exercise at home.  I dont have a weight set but even if I did I would probably use it as much as the treadmill we do have; not at all.  The gym is close to my work and I try to go at lunch.  Even if you are intimidated by the people there, give it two weeks and suddenly the huge musclehead is not intimidating but rather a familiar face.  There was a very very overweight older gentleman that was going at roughly the same time as me and when I saw him in there I admired his sticking to it and actually found it motivating that he was trying so hard.

4) Healthy Food
My wife and I grill fish.  A lot.  Fish is more expensive than hamburgers.  We do not care.  The healthier food is worth it.  This does not mean you need to go to an organic food shop and spend 10x as much as you usually would.  It just means means choosing healthier foods from your regular supermarket even if it does cost a little more.  For example; try getting lean turkey burgers instead of 70/30 hamburgers.  Buy spinach and steam it.  Buy cucumbers and cut them up and make a salad.  Hell, right now, corn is selling for 3 for a dollar.  Another big winner here; protein powder and skim milk.

5)  A regular checkup
I am terrible about this.  I hate going to the doctor and I had paying to go to the doctor.  I hate waiting in the waiting room.  I hate waiting in the office once you get called back.  Pretty much I just dont like any of it.  But lets face it, as you get older you need to get examined once a year.  You owe it to yourself and your family.  Most people have some sort of insurance particularly around preventative care.  Use it!

Everyone feeling motivated?  Alright, lets spend (a little) money!

Investing is one of those things that people think is sexy.  Nice suit, nice shoes, clean cut, tall athletic people living the huge lifestyle in New York.  Hey that sounds like a damn good time!  The truth is, its not easy, and those poster models down on wall street aren’t a hell of a lot smarter than you or me.   They think they are, but I promise you can do as well as any of them can with the exception of a rare few.  Now stop right there, I know what you are thinking.  That doesn’t mean jump in and throw your life savings into an investment account.  Read this first and lets cut off any of those newbie tendencies before they have a chance to take hold.  Mistakes to avoid:

1) Not paying off debt before investing.
This one is easy.  If you are paying somewhere in the realm of 20 percent on credit card debt, and averaging a great 15 percent return on your investments, you’re paying out more money in interest than you’re earning on your investments. Not to mention taxes, broker fees and all that other stuff that comes out of that 15%.   Get rid of credit card debt first unless you can get a crazy low interest rate (like 0-5%).

2) Following tips
I’m not just talking about penny stock emails.  I’m also talking about friends, family, and anyone else who promises you they have a tip to make you rich.  If you can make me rich why the hell aren’t you already rich uncle Ricky!?

3) Impatience
Im as impatient as the next guy, but investments take time to grow.  Too many investors make the mistake of getting easily frustrated and selling quickly. Don’t be a slave to minor fluctuations in the market.  A great example is my 401k.  I look at it, get ready, once a year.  Thats right, once per year.  I know I have things setup correctly, I know I am diversified, so I do not worry from day to day how it is doing.

 4) Being to risky or too cautious
Didn’t your momma ever tell you moderation is key?  Or was it don’t drink on weekdays?  Well both are good bits of advice, though as you get older the latter is self apparent while the former becomes cloudier.  Don’t dump all your money into one stock.  In fact, don’t dump all your money into stocks (bonds, gold, money market).  On the other hand don’t get a portfolio full of bonds and wonder why you aren’t rich when you retire.  If you are young, the majority of your investments should be in stock, hands down, but spread it out, or grab an index fund.  If the market hasn’t grown by the time you retire Mr. 30 something, why then, the country has probably collapsed and there is likely bigger trouble you are worrying about.

5) Pulling out
If, by chance, you manage to make a lot of money, or some money, or any money, you might be tempted to pull out completely and reap your rewards.  Well, don’t.  Reinvest, keep gaining, it will be worth it in the long run.

Oh and when you all get rich, don’t forget to tip your blogger…

Its that wonderful time of year again; tax time.  I know all of you out there are jumping for joy but try and calm down, sit back down in your chair and lets talk a bit about organization tax paperwork.  As many of you know by now, organization is not exactly my strong suit.  With that in mind, my wife and I are both making a concentrated effort to keep all tax documents in one place.  Even with that, I have an idea for what I am going to do for next year because there are some things that get missed keeping everything in one place.

I will setup a folder with some categories and accumulate things there over the course of the year:

- House related

- Rental house related

– Business expenses/home office expenses

– Medical expenses

– Charitable contributions

- Income Related

This should help a lot because despite the fact that I have all the ‘important’ paperwork for the year such as W2s, I don’t have any good way of tracking the small, extra expenses.  For example, there were expenses related to our rental house that I did not track that I now have to go back and try and dig up.  There were expenses related to home office and keeping TPS going that I now need to go back and dig up.  We also gave away bags (and I mean bags) of clothing to charity, that I now have to try and estimate.

Good luck to rest of you with your taxes; remember, if you dont claim it, the goverment will!

Money management is a difficult issue, and a lot of people don’t ever really get it.  A lot think they get it only to be disappointed later when they realize their carefully laid plans have failed. will assure you of a money management plan to fit YOUR special needs. If you follow each step, It will also save you a complicated job of bookkeeping. This guide won’t be able to work miracles for you but will help show you the way to get the most out of your money.

To make a sustainable plan:

1. Add up your total income, including any funds you receive in addition to your earnings.
2. Figure out your total fixed expenses such as rent or mortgage, insurance premiums or car payments.
3. Provide for a savings fund adequate to meet emergencies and achieve special goals.
4. Estimate how much you need for day to day living expenses.

While these steps are listed in sequence, it’s likely you will arrive at your final estimates by considering them as a group. You may need to do some adjusting of the amount in each step until you have what you feel is a satisfactory plan. After going through each step and filling out the worksheet, you will have a better idea of where your money is going and how much you have left over to work with.

Before you begin to work out your plan, it is important to remember good money management starts long before you begin keeping track of dollars and cents. As we have discussed in previous lessons, your plan is a personal or family matter. You need to take a long hard look at your values. Your goals will reflect your values. No one can tell you what your lifestyle ought to be. Only you can decide how your income is spent. Effective money management will depend on the way you choose to live and the goals you plan to achieve.

So where do you cut expenses to keep the budget balanced? Travel? Clothes? Entertainment? Education? That’s up to you. Think about where you are now and where you want to be in five or ten years. Your long-term plan should reflect those goals you and your family have decided are most important.

Plan For Savings
When making out your budget, plan for savings first. You can grow richer each month if you pay yourself first. Here’s an idea you might want to try. Before paying any bills, decide on an amount, to pay yourself first–say five or ten percent–or whatever you decide– of your paycheck. Then, deposit the amount into a savings account before paying any bills. When you do this at the beginning of the month, your entire paycheck will not slip through your fingers. If you wait until the end of the month, there may be nothing left to save.

Paying yourself first gives you a systematic way to make your money grow. Regardless of the kind of job you have or your income, this system works!

Another technique you might try for saving money is to empty your change into a coffee can or jar each day. At the end of the month, roll the coins and put them into your savings account. You may be able to save up to $30 a month this way.

Remember, good money management is more than a mathematical formula. It’s too closely tied with the ups and downs of living for that. Your money management plan is always subject to change if your life situation changes. The object of a good budget is to make your money help you reach your goals, not to force you to conform to rigid rules. Don’t be discouraged if this budget plan doesn’t work out right away. You may have to revise it several times until it fits your wants and needs. Then, review it from time to time; to be sure it continues to help you use your income in the best way.  Good luck and happy managing!

Have you ever been to one of those really fancy restaurants where they sit you at a table next to each other and the entire room seems like one big awkwardly staged scene?  I had a dream last night about one such place, called picasso in Vegas that Lauren and I went to once.  I think it was about $300 for the meal when it was all said and done.  I should mention that it was so little food that when we were done eating there, we had to go re-eat at a burger joint that I think cost a total of about $10.   Not only that, but we were miserable the entire time we ate at picasso because we felt out of place, and they seated us in an awkward place next to each other where the entire restaurant could stare at us.  On top of that, the wait staff was pretentious and rude (at least those that served us were).  When I emailed the Bellagio about my experience, the ‘helpful’ person sent me back not a response, but instead a MENU OF PICASSO.  Nice customer service Bellagio.  I guess they don’t care about the average Joe.  In any case, it seemed like a good idea at the time but it ended up in my top 10 of dumbest money mistakes.  It certainly wasnt the largest in amount, but in value it was right toward the top.

Instead, here are some ways to actually get your money’s worth.

1) Know what you want and actively look for it ahead of time
I did this with Christmas presents this year on some sites such as Slickdeals.com and it worked out wonderfully.  Yes it gets rid of the instant gratification but it will save you a ton of money in the long run.

2) Dont buy things you dont need
I know this seems simple but I know we all do it.  Or at least most of us do it.  Or at least I do it.  This equates directly to the topic.  Its hard to get your money’s worth if it is something you dont even need (or want that badly).

3) Use discounts
When you do have to make big purchases there is always a way to get a discount.  We had to buy new car seats since our son grew out of his rear facing one so we waited until we had 15% off coupons and then used them.  When you are buying 2x $150, suddenly 15% off is a decent chunk of change.

4,5,6,7,8) Price compare.  I dont know how many times I have bought something only to see it cheaper somewhere else.  And hey, if you see something advertised for a certain price, Walmart will always price match.  I know, I know some of you hate Walmart.  I get “Dont talk about Walmart” emails all the time.  Since Im not a hippy and I dont like unions, Ill keep talking about big-box-mart with the caviat of: there are other places that price match, find em.

I hope everyone had a wonderful Christmas and came out of it financially unscathed!  Here are my random Christmas wishes for you, my readers:

1) Get out of debt this year
I know this isnt within reach for some of you, but for some of you, it is.  For those that can; do.  For those that can’t; make progress.

2) Save
I know that trying to get on top of #1 might make #2 seem like less of a priority, but its a good idea to still try and put some away for an emergency fund.

3) Spend on something worthwhile
Take a vacation with your wife/husband/Significant other.  Buy something you need.  This also conflicts with #1 and #2 but it is also important.   Life should be enjoyed, even if it is in moderation.

4) Take up/rediscover a hobby
My wife has gotten back into photography and it has been a lot of fun seeing her enjoy it.  I want to get back into writing, despite my ridiculously busy schedule.  I also want to get back into lifting, and find time to play some sports.  We all have things we love but have forgotten.  Do your best to find time to get back into whatever you love.

5) Read TPS more
If I promise more articles, hopefully you read more.

Merry Christmas everyone!

As many of you know, despite the links on my navigation bars, I do promote a lot of websites, blogs, books or anything else other than common sense and financial information (ok and maybe a healthy love for sarcasm photoshopped pictures) but I have run into something recently that I just plain love.  Well, times are a changing, or at least this one time is a-changing.  What is this mysterious site that I am referring to? Pets.com?  No… its…

Bing shopping cash back!

If you are like me, you probably only know Bing as the overly-advertised-we-wish-we-could-compete-with-google site from microsoft.  This time though, they win a battle with google in the shopping department.

Depending on the merchant you can earn between 1-30% cash back on any purchase.  Thats a pretty damn good deal if you ask me.  The only thing that I can think of that compares is the discover card 5% cash back when they have it (rarely).

Some other nice things about bing are that
1) You dont have to use a credit card you can use paypal, checking account, debit card, some other credit card
2) You can do it all from your computer - hurray culture of laziness convenience!
3) You can use it for everyday things
4) Great customer service - Their turnaround time is less than 1 day.  That’s really really good.

Disadvantages:
1) It takes a while to get your money back
2) Sometimes it doesn’t register correctly and there is no way of knowing for a day or two after purchase
3) Coupons/special codes will usually void cashback

Overall, pretty cool and supposedly there are going to be some huge cashback specials coming up to compete with the “black friday” craze.  I don’t know about you but I would much rather  sit at my computer to shop than go fight the crowds.

For the majority of my life I have really struggled with keeping track of bills.  It sort of goes back to the fact that in their natural state, my organization skills consist of at best piling everything into one giant pile to be “sorted later.”

Every time I try and organize mail or a stack of papers, I end up with either 1 stack, or 10,000 stacks which in the end are combined into (you guessed it) one giant stack.  I think my ability to categorize might be broken.

As you can imagine, inability to organize papers has a slightly negative effect on keeping track of bills.  “I know I remember putting in here somewhere” is a thought that I have had more in my adult life than I like to reflect on.

As far back as six years ago I heard people talk about auto bill pay but I honestly never put much thought into it because it either 1) cost monday or 2) I was scared of money being auto pulled.  Now that I am settled in, out of college, married, and have a one year old I am realizing that…hey, my expenses are the same every month, and man is it a pain to call and pay 10 different bills.  This coincides with the fact that recently Wells Fargo started offering online bill pay.

I took the plunge…and I love it. I get paid and my money automatically goes where it is supposed to go; bills, savings, checking, thin air.  Ok the thin air one is the part that goes into checking.  No late payments, no late fees, no forgetting anything, no overspending just steady as she goes.  I will say this, I highly recommend centralized autopay.  I can imagine many scenarios where I had things automatically pulling from my account and magically disappearing into thin air for years after I meant for them to stop.  That one bit aside, I love logging in and seeing a nice list of my bills and ‘paid’ next to all of them.  Except Qwest which likes to reject autopayments because, well, qwest has the worst customer service in the history of man kind.  Just google qwest customer service sucks and you can read for days.

All said, auto bill pay lives up to it’s billing (I know, har har). Now go forth and autopay!

Its never too soon to agree with your spouse on how you spend money.  There was a study that I read a long time ago that said the number one source of tension in marriages in a random sampling of couples was (Dum dum dum) MONEY!  Ok, so who here is surprised?  I know I am not.  Considering most of us Americans have a large load of debt so when you bring two people with debt together (or even one person with debt and one without) there are bound to be some hard money discussions.  The best time to figure out finances is before you’re married when both of your money is separate.

I’m getting married in August but we have had relatively combined finances for quite a while.  Admittedly I came into the relationship with more debt than Lauren did.  The one main thing is that we both want to get out of debt but not become misery in the process.  That being said, I know quite a few couples who just cannot figure the money thing out.  There is a one huge lesson to learn here: if you are getting married, talk about money beforehand, it is never too soon.