Over the summer i had this "meeting" with Adam about personal finance. (I used the term meeting loosely because to be honest we were sitting at buddies after i got done a lunch shift, and i was drinking.) Anyways, he was doing his thing for Northwest Mutual asking me questions about where I saw myself in 5, 10, 15 years. To be honest while i was sitting there with him i had no idea how to respond. I never had really thought about my future, financially. I never thought about what kind of assets I had wanted to own, or even just the little things i wanted to be able to do. It was really just recently that those things became important to me. Yes i want to own a house in the next 5 years. Yes I want to be a baseball season ticket holder in the next 3-5. Yes I want to go back to school within 5. Yes I want to be married with kids in the next 7-10. I just didn't know how to get there.
Like I have mentioned before, my past disaster of money management has come back to bite me in the ass. However, I may have found some solutions. The last couple weeks I've been really getting into personal finance and everything that comes with it. I'm sure if i could keep track of my most viewed websites in the last month the first would be kiplinger.com not to be out done by Yahoo! Finance.

I'm seriously obsessed and its because of one simple factor: i don't want to live paycheck to paycheck. Which is probably a given, because most people want to live that way. Basing my life on the next week's pay isn't going to get me closer to the things I want out of life, the things i mentioned above.

Now I'm not really certified to be giving out advice, and mike already laughed at me for saying that is something i could see myself doing. I'm not going to tell anyone to make a budget, cause lets face it, no one will ever stick to it. The idea of a budget is about as appealing as a diet. But there are definitely some things, everyone should know.

1.) Open a high yield savings account:
Whether its through your bank or a bank like ING it is definitely worth it. Most savings accounts net very little in interest each year. My savings account through my credit union in Philadelphia only has a 1.12% APY. However, the ING account that mike and I opened together has an APY currently of 3.65%. That is 3 times as much. And that's is after a decline. Prior ro the fed cutting its rates we were getting a 4.20% APY.

2.) Direct Deposit a portion of your check in the savings:
If you get direct deposit already its not that hard to do because if you don't see it to start, then you won't miss it. You will adjust your style to reflect what ended up in your checking. And if you try to do that, but tend to miss some weeks just think about the cold hard numbers--- if you but aside $10 a pay period, that's $260 with out even trying. $20 a pay period, and that's $520. Put it all into a high yield savings-- and watch your money grow.

3.) Some debt is OK:
I know mike just shivered at the thought of that statement, but its true. One of the most important figures on your credit report is your debt:credit ratio. Having balances that equal about 30-40% of your credit limit is actually not a bad thing. First of all it shows that you have a positive and active credit history. Secondly it shows that you are no where near the top of your spending capacity, so you are not really at risk.

4.) Concentrate on your card balances that exceed the 40% thresh hold:By putting more then the minimum payment towards these balances you are increasing your debt:credit ratio, which can make your credit score more attractive, and yourself more eligible for loans (especially in the current economy) Its also going to end up saving you money on interest. In addition, when it comes to paying down debt, make a spread sheet of all you owe (or use microsoft money) because once you see it, you will want to get rid of it. And atthe same time, watching it go down will make you feel better about yourself.

5.) Look for a credit card with rewards:
If you are going to put money on a credit card, you might as well get something back for it.


alright.. so really all i have to offer is pictures of my cats, and talk about money. I am so old..