Update: Keeping the Change, Credit Card Spending, and Car Stuff

I'll keep it short today. Here are a few updates:

Keep the Change

At the beginning of the month, I enrolled in BofA's "Keep the Change" program. To date, I've "kept" $17.98 in change. For the first three months of the program, the bank will match my savings, penny-for-penny. This (i.e. the match) sure beats the heck out of their sorry interest rate.

Credit Card

Four billing cycles for 2011 have passed and I am still not paying interest on my credit card. Woohoo for "free credit". However, I should keep a closer eye on what balance I carry at any time. You've probably heard that if you carry a balance that you should keep it under 30% of what's available to you (if you haven't heard this, you just did.....you can thank me later ;>....and if you don't believe me, look what Kiplinger's said here). Although I do not carry over a balance (from billing cycle to billing cycle), I am also unaware of when my credit card company reports such information to the credit reporting bureaus. As such, I prefer to stay on the side of caution.

Car Stuff

My balance is just over $5,000 and if I stay on track (and not go crazy shopping for two upcoming weddings and go bezerks with graduation gifts) then I'll pay the note off by the end of August. What's more 'exciting' is that I haven't been made aware of any repairs needed for my car. We know how repairs derail the car note elimination plan.

Would Anything Change?

While searching for insights into small groups working on financial goals, I came across a website called WealthGathering.com. The article that popped up is titled "Social Wealth: Can Facebook Friends Affect Your Wallet?"

In short, the article discussed influence, social contagion, and a few tips on how to maintain one's financial sanity in the midst of a social snowstorm. A specific tip on how to maintain one's wealth habits is to "Share your savings goals with a select group of friends using a tool like SmartyPig.com." I started to think, what if people shared a few other things on more public forums (ex. Facebook, Twitter), say for example, your current credit card balance (and limit), balance in checking account, balance in savings account (compared to one's goal for that account), or the last time you made a contribution (and amount) into a retirement account.

I recognize that money is still on the list of "taboo" topics, yet I wonder what would happen if people openly shared a few indicators of their financial health (and, most importantly, their goals). Would anything change? Would people start paying off their credit card balances in full? Would people start saving on a more regular basis? Would they increase the amount they save?

Although I have no data to support it, I suspect that a "I'll-show-you-mine-if-you-show-me-yours" display of financial health might encourage us to change for the better. At worst, people would be so annoyed/ashamed and "unfriend"/unsubscribe/etc.

What are your thoughts? 

Would you change your financial behaviors if your friends shared theirs? 

Do you think your friends would change their financial behaviors if you shares your own?

I Want Some PiggyMojo!!!

If I was paid to promote PiggyMojo, I'd be a ga-gillionaire. Unfortunately, I am not. I'm a fan, nonetheless.

PiggyMojo makes the concept of spending less money equal saving money. In, Dumb Marketers or Dumber Consumers? I explain how spending less money is not the same as saving money UNLESS you actively set aside the difference 'saved' (i.e. not spent). Well, thanks to a bunch of really smart people and technology, spending less literally translates into saving money.

See how it works...

www.piggymojo.com

Tax Realities....Better Than I Thought

Several weeks ago, I lamented that my goal of paying off my car by the end of this month had been dashed. Why? Because I anticipated a $2500 tax return (federal and state) which would have have been applied to my loan balance....and then I started using TurboTax and I soon discovered that my refund, if any, would be no where near that. So I updated my debt repayment plan to reflect NO tax refund. After having a CPA friend help me sort through taxes for two states (and one municipality) I've learned that I do get a refund (federal and state; I actually owe in one state). Now I am wondering how I should spend my refund. I've already purchased $100 worth of savings bonds using IRS Form 8888, so I have roughly $1100 left to play with. If I apply all of it to the car loan, I can finish the note approximately 1 month early. I could also contribute the amount to my Roth IRA for the 2010, for which I have $3,670.89 remaining. I could spend a portion of it for two weddings (within the month). I could put it in my emergency savings account towards my $10K goal. Or, I could equally divide it among the abovementioned expenses/savings. Decisions, decisions, decisions.....

What would you do if you expected something, then didn't expect anything, yet received something? Would you stick to your original idea when you were expecting something or change course?

April Net Worth Update

My net worth this month increased by $1,024.70. Here's the summary explanation:

Assets

403(b): (+682.51) Every two weeks, $125 goes to this account. The bulk of this month's increase (sans the $250 contribution) is based on the performance of my investments.

Emergency Savings: (+0.75)  No deposits (yet). This is interest earned.

Regular Brokerage Account and Roth IRA: (+146.36 and -272.36, respectively) $50 to brokerage account....$96.36 increase in value in the investments in the same account. $272.36 decline in value in investments in Roth account<<<sad face.

Savings Account: (-50.00) Originally, I had a balance of $25, then I had an automatic deposit of $25, and then I transferred $50 to spend. Now I have a penny in this account. Recently, I enrolled in "Keep the Change" - a program that rounds up the amount of my transactions in my checking account and deposits the difference into my savings account- so we'll see how this affects my savings account balance.

Liabilities

Car Loan: (+574.18) Steady paying more than the $269.11 requested of me. I can't wait for this sucker to be gone!

Credit Card: (-1514.22) From March 1st to April 1st, I've paid $1514.22 to my credit card. A large part of this is because of a $1,010.31 car repair. The other expenses are work-related (which will be reimbursed), a bit of airfare and some other things I can't quite remember (I know, I've gotta do better!)

Student Loan: (+111.64)  With each payment, a few more dollars go towards the principal. I can't wait to get rid of this sucker, too!

Until next time!

From Loose Change to Keeping the Change...

Today I enrolled on BofA's "Keep the Change" program. I've connected my checking account to my savings account, so now, when I make a purchase, Bank of America will round up my transactions to the nearest dollar and deposit the difference (between the higher number and the actual transaction amount) into my savings account.

This service is remarkably appropriate for someone like me, who, rarely carries cash.I wonder why I hadn't taken advantage of it sooner! On the rare to occasional events when I carry cash, I dump all of my change into my piggy bank at the end of the day .

With this service, I have the cashless customer's equivalent of "dumping my change" with every transaction I make. I'm also a bit excited at the prospect of having the amount deposited into my savings account matched by BofA fo three months; afterward, they match 5% of the change that has been "kept" (who knew they could do something right? LOL!) Hello, free money!

Are you enrolled in "Keep the Change" (or an equivalent, such as "Ways to Save"?) How much money have you accumulated through these programs?

Loose Change

The past 30 days have been kind of crazy. Compared to previous months of spending, I can say that my most recent spending has been out-of-control. Most of my purchases have been for food, namely eating out. Yesterday, I was faced with the temptation of getting yet another coffee from DD (Dunkin' Dounuts). For a split second, I reflected on my spending for the month and decided I would feel better if the money didn't come out of my bank account or wasn't charged to my credit card. What option did I have remaining? Short of asking someone else to pay for my indulgence, I went to my piggy bank. I cracked that sucker in half (I didn't break it, it splits down the middle to open and close) and selected 8 quarters. 

I found myself grabbing for my Visa a few times (out of habit I guess) and it was kind of weird handing the cashier the coins. Nevertheless, I experienced a sense of accomplishment knowing that that I wouldn't have to look for this expense when reconciling my expense tracker and bank and credit card statements. It was like free money!

Although my piggy bank is small, I'm happy to have it. In the few instances when I do use cash, I find myself depositing my change at the end of the day (too many coins weigh down my wrislet and I don't care for having to sort through the extra stuff). I don't have any plans for my piggy bank, such as savings or going out to a movie. Maybe I should. Perhaps only then I would become a little more intentional about using my piggy bank.

What do you do with your loose change? 

Do you have a particular purpose for it? 

How do you store it?*

*My mother has ziploc bags of coins around the house. It's kind of crazy.

What Do Your Expenses Say about Your Health?

If you believe that a snapshot of your spending is a good indicator of your health, then I would be among the 2/3rds of Americans who are overweight or obese. Since March 18th, I've spent more than $100 on food. Approximately 70% of it has been on eating out...which wouldn't be so bad if it was healthy. Instead, I've been stuffing my face with french fries, sausage biscuit sandwiches, donuts, and 290+ calorie macadamia coconut mocha drinks. In other words, McDonald's, Dunkin Donuts, and Caribou coffee (and a French bakery,  [cheese] steak shop, Panera Bread, and Subway). 

Frankly, my spending is more reflective of a recent bout of laziness than my general health status. I haven't been waking up early enough to eat breakfast at home (which doesn't make since, really, once you consider the time it takes to wait in line for someone to take my money and give me something fried and super salty). Moreover, I haven't made any time to pack lunch: mornings are out (see abovementioned excuse) and since I've been getting home considerably late, recently, I focus more on showering and sleeping once I get in the door (no packing lunch here). I know if I keep up with this habit of eating out excessively (without making adjustments to other areas of my spending plan) that I'm setting myself up for financial failure.....and high blood pressure and jiggly body parts. Instead, I'll commit to doing better the next time around =)

Fortunately, I'm a healthy weight for my height and my BMI is less than 20 =) Hooray for exercise!

What would your most recent expenses (let's say, the past two weeks) 

tell us about YOUR health?

What Are You Reading?

Image from www.caltech.edu.

Recently, I shared that I am reading Nudge, a book about behavioral economics. It's far from the typical personal finance material that I am used to consuming, yet it is very relevant to how people make decisions (including financial ones).

Today, I'd like to know what personal finance, or PF-related books, you are reading or have read. Please share what your "takeaway" is....I might have to hit up the library later ;)