Personal FinancierPersonal FinancierArticles on personal finance ,economics, business and Investments. How-tos, opinons, commentaries and strategies Articles
Gas Prices Finally Impact US Car Sales
2008-06-06 15:07:00 More on the better side of record gas pricesFor some reason pickup trucks and SUVs have rooted themselves in American culture. Apparently they serve as symbols for strength, power, durability and more values that are held dear to many Americans.I?ve read somewhere the pickup serves as the modern horse, keeping the old west?s heritage alive. With all due respect to culture it seems more and more Americans are finding it hard to continue maintaining these gas eating monsters with gas prices constantly rising.Americans save on gas by switching to economy carsAccording to Reuters US auto sales tumbled in many as consumers spurned pickup trucks and SUVs in the face of record gasoline prices, driving General Motors Corp (GM.N), Ford Motor Co (F.N) and Chrysler LLC to double-digit declines.Furthermore, Japan?s Honda Motor outsold Chrysler for the first time to emerge as the new No. 4 U.S auto-maker with Toyota closing the gap on General Motors.Record gas prices apparently sent Ford?s sales... More About: Economics , Sales , Gas Prices , Finally , Prices
The Perfect Home is a Financial Nightmare - Don?t Get Caught Up In the Cost
2008-06-04 19:56:00 It is very easy to get sucked in a terribly expensive effort which never really ends My wife and I just returned from our 203th visit to IKEA with some interesting insights I?d like to share. Since we?ve bought our apartment and renovated it we?ve been caught up in a continuing effort to furnish and design it into our perfect little home. All this time a very obvious yet elusive insight eluded us: There?s no end to this effort, no finish line to the race. It starts very early on. You decide to buy a house, maybe even decide on a budget but all the plans and all the decisions soon fade away when you start shopping for a one. It?s understandable. Some locations, architecture and design, extra rooms and more may be well worth the extra money but have you ever heard of anyone buying a cheaper house than they initially planned on?It continues with massive, endless renovations trying to shape reality to dreams with multi-million homes as our inspiration. Even the world?s best interior des... More About: Nightmare , Financial , Home , Cost , Perfect
The Festival of Stocks #91 ? Israel?s Stock Market Facts Edition
2008-06-02 16:08:00 This edition of the festival of stocks will be dedicated to the Israel i stock marketIt?s my first time hosting the Festival of Stocks . I believe there are quite a few good posts in this addition and I had a hard time choosing my editor?s picks.I?ve chosen to dedicate my edition of the Festival of Stocks to the Israeli stock market which has generated excellent returns in the past 5 years and serves as a growth or value investment in a developing economy with the conditions and environment of a developed market.I?ve also chosen to comment on each post and add my point of view (where I had something of value to say).My Picks:Fact #1: Israel?s stock market is called The Tel Aviv stock exchange and features two prominent stock indices called the Tel Aviv 25 and Tel Aviv 100 made of the 25 and 100 companies with the highest market value. The market value of the companies traded in the Tel Aviv stock exchange is approximately $460 billion.The Digerati Life presents an eloquent and creativ... More About: Economics , Facts , Stock Market
Hedge against your bills, banking mistakes and more @ The Roundup
2008-06-01 19:27:00 The customary weekly Roundup It?s time for another weekly roundup. I?m pleased to say I had a guest post featured on Consumerist Commentary titled ?Make Investment Decisions Together to Avoid These Common Mistakes?.Tomorrow I?ll be hosting the Festival of Stocks with what seems to be a promising array of posts from personal finance bloggers near and far.The Carnival of Personal Finance #154 was hosted by Canadian Dream: Free at 45. I?ve enjoyed these posts in particular:Hedge Against Your Bills by Owning the Company @ Million Dollar JourneyAvoid the Top 10 Banking Mistakes @ Personal Finance Hacks The Festival of Frugality #127 was hosted by Funny about Money. The following posts caught my eye:Generous Return Policies and ?Risk Free? Trials Can Fool Your Frugality @ Can I Get Rich on a Salary?The Benefits of Saving Habits that Make You Look Poor @ SavingAdviceMore from fellow personal finance bloggers:29 Free Or Low Cost Ways To Save Energy & Money. @ My Two DollarInternational S...
Psychology tricks and increased spending ? The Case of Expensive Wines
2008-05-31 14:10:00 Our psychology is terribly easy to trick. We?re actually pretty good at it ourselvesIn each and every day of our lives we are bombarded with psychological tricks and quirks which have one goal: Make us spend more.Advertisements take many forms and influence us both at a conscious and a subconscious level. However, every now and then a consumer research appears. It?s always rare, small and hard to find due to certain conflicting interests of the media but they always teach us valuable lessons.This time the NY Times (Arik Asimov) gets the credit for giving a stage to a new research on the American wine consumer which I find fascinating.Wine connoisseurs and the image of the Nuevo richWine is probably the drink most associated with good living, refined palate and the upper classes (we?ll discuss associations in advertising in the near future). There are reasons why wine is portrayed and marketed as such a complicated product with infinite grape types, vineyards, years of aging, complic... More About: Tricks , Spending , Psychology , Case , Wines
Become an Invaluable Employee by Adopting a Solution Oriented Mind Set
2008-05-28 20:57:00 Invaluable and desired employees are a very rare resource. I believe a solution oriented mind set is a prerequisite to becoming oneAnyone should be able to quickly recognize the following scenario either as a manager or as an employee: Deadlines are closing, uncertainties are abundant and a certain employee, you had handed down an assignment a week ago to, keeps coming back with questions that make you wish you had done it yourself and saved that precious time.Another relevant scenario is the perfectionist employee trying to find a perfect solution to a practical problem unable to accept time and money constraints.Usually these scenarios end in conflict, shouts and frustrations for both sides. Expectations where no met for neither of them. The employee had expected guidance and tutoring and the manager expected results.I feel many employees don?t fully understand how powerful a solution oriented mind set can be or how much frustration an unsecure or perfectionist employee might gene... More About: Career , Mind , Employee , Solution
Sell In May and Go Away? Historical Research and Surprising Results
2008-05-26 21:22:00 Seasonal indicators are always a tempting and counter-intuitive notion. Sell in May and go away?Second in reputation only to the January effect ?Sell in may and go away? is a common and well known seasonal indicator. I imagine the papers will soon fill with articles on this indicator. I think it?s a good time to examine the historical evidence.?Sell in May and go away? refers to the abnormal returns of months November-April compared to May-October. This seasonal indicator is believed to exist due to the following reasons:1. The summer months are usually dedicated to vacationing and time off in the capital markets as well.2. Patterns in bonuses3. Taxes and patterns in saving vehiclesA quick research ? Should we really sell in May?I?ve decided to take a quick look at some historical data. I?ve checked the S&P500 back from 1950?s up to today. The results of my research are displayed in the following charts. The bars represent the difference, in percentages, between the returns of N... More About: Research , Results , Investing , Historical
Financial Philosophy, Leaving the Office Earlier and Work Lunch Ideas @ The
2008-05-25 22:37:00 Sunday Roundup as CustomaryAs some of you may have noticed I've switched to my own custom domain @ www.thepersonalfinancier.com. Hopefully everything will work smoothly as it always has. As always your suggestions, thoughts, questions and comments are always welcomed.The Money Hackers Carnivals #13 was hosted by Moolanomy. I made editor?s choice with Higher Gas Prices: A Blessing in Disguise or an American Wakeup Call. I also enjoyed:No, I Won?t Accept Your Counter Offer @ Cash Money LifeWhen People Go Bad: A History of the Sub-Prime Mess @ Greener Pastures: Personal FinanceThe Carnival of Personal Finance #153 was hosted by Money and Values. The following posts caught my eye:Mind vs. Brain Part II: Priorities, Pursuits and Productivity @ The Financial Philosopher - I?ve only recently discovered this blog and I wish I had done so much earlier. The financial philosopher presents personal finance wrapped and inspired by philosophical concepts. I enjoy philosophy immensely and I?m cur... More About: Philosophy , Ideas , Office , The Office , Lunch
Budgeting for Unexpected Expenses
2008-05-23 16:04:00 Unexpected expenses are just an expense with uncertainty attachedUnexpected expenses can really hinder your saving or debt repayment efforts. You have your budget carefully planned and meticulously detailed and thought out. Then, out of the blue, pops an annoying significant and unexpected expense and re-shuffles everything.I?ll be arguing further along this post that all unexpected expenses are really expected costs with an attached element of uncertainty. This is a powerful claim which I believe to be true. Hopefully by the end of this post you will agree.Not all unexpected expenses were created equal. I like to think of a hierarchy of unexpected expenses and in the following I will present my hierarchy of costs and how I budget and plan for these.#1 ?Is it Christmas already?? ? Seasonal recurring expensesWhen it comes to the first type of unexpected expenses, such as holiday presents for example, the case is clear. These are obviously expected costs which were not planned for. Th... More About: Expenses , Budgeting
Budgeting for Unexpected Expenses
2008-05-23 16:04:00 Unexpected expenses are just an expense with uncertainty attachedUnexpected expenses can really hinder your saving or debt repayment efforts. You have your budget carefully planned and meticulously detailed and thought out. Then, out of the blue, pops an annoying significant and unexpected expense and re-shuffles everything.I?ll be arguing further along this post that all unexpected expenses are really expected costs with an attached element of uncertainty. This is a powerful claim which I believe to be true. Hopefully by the end of this post you will agree.Not all unexpected expenses were created equal. I like to think of a hierarchy of unexpected expenses and in the following I will present my hierarchy of costs and how I budget and plan for these.#1 ?Is it Christmas already?? ? Seasonal recurring expensesWhen it comes to the first type of unexpected expenses, such as holiday presents for example, the case is clear. These are obviously expected costs which were not planned for. Th... More About: Expenses , Budgeting
Is There an Oil Price Bubble Evolving?
2008-05-21 19:55:00 The fears (or hopes) of another bubble in oil and commodity prices is gathering followersWith oil prices easily crossing $130 a barrel and with no end in sight the fears, or hopes, of an oil price and commodity price bubbles are gathering a crowd.The case for the existence of an oil price bubbles and the case against the possibility of such a bubble are both convincing and interesting to observe.For the sport of it I?ll wager that the chances of a bubble evolving in oil and commodity prices is much bigger than the possibility of these price levels holding on for the long term. I base my intuition on my firm belief in the rational of market irrationality.The case for the existence of an oil price bubbleOil prices have a history of price speculations with little regards to the fundamentals. The nature of the oil market is responsible. Lately, more and more signs have started to show that a bubble might have evolved in oil prices.The US stock of crude oil has risen 12% from the beginni... More About: Economics , Investing , Price , Bubble
Is There an Oil Price Bubble Evolving?
2008-05-21 19:55:00 The fears (or hopes) of another bubble in oil and commodity prices is gathering followersWith oil prices easily crossing $130 a barrel and with no end in sight the fears, or hopes, of an oil price and commodity price bubbles are gathering a crowd.The case for the existence of an oil price bubbles and the case against the possibility of such a bubble are both convincing and interesting to observe.For the sport of it I?ll wager that the chances of a bubble evolving in oil and commodity prices is much bigger than the possibility of these price levels holding on for the long term. I base my intuition on my firm belief in the rational of market irrationality.The case for the existence of an oil price bubbleOil prices have a history of price speculations with little regards to the fundamentals. The nature of the oil market is responsible. Lately, more and more signs have started to show that a bubble might have evolved in oil prices.The US stock of crude oil has risen 12% from the beginni... More About: Economics , Investing , Price , Bubble
The Relation between Age and Portfolio Risk ? Counter Intuitive Results
2008-05-19 15:26:00 Should young investors really hold riskier portfolios?There is a common financial thumb rule when it comes to an investor?s age and the risk level of his portfolio. Most financial planners recommend a higher level of portfolio risk to younger investor and a lower level of portfolio risk to older investors.This thumb rule is rooted in what seems to be common sense financial logic. A younger investor has more time left to save thus allowing his portfolio to adjust and compensate for possible loss due to the high risk level taken. And older investor should, by the same logic, avoid portfolio risk and concentrate his investment efforts on preserving his hard earned and saved capital. Academic research is not supportiveSurprisingly enough this practical thumb rule has little in the way of academic support. I?ve been trying to find an academic justification for this professional habit and I?ve failed. Furthermore, I?ve found articles dating as early as 1970?s doubting this very logic appl... More About: Portfolio , Results , Investing , Risk , Counter
The Relation between Age and Portfolio Risk ? Counter Intuitive Results
2008-05-19 15:26:00 Should young investors really hold riskier portfolios?There is a common financial thumb rule when it comes to an investor?s age and the risk level of his portfolio. Most financial planners recommend a higher level of portfolio risk to younger investor and a lower level of portfolio risk to older investors.This thumb rule is rooted in what seems to be common sense financial logic. A younger investor has more time left to save thus allowing his portfolio to adjust and compensate for possible loss due to the high risk level taken. And older investor should, by the same logic, avoid portfolio risk and concentrate his investment efforts on preserving his hard earned and saved capital. Academic research is not supportiveSurprisingly enough this practical thumb rule has little in the way of academic support. I?ve been trying to find an academic justification for this professional habit and I?ve failed. Furthermore, I?ve found articles dating as early as 1970?s doubting this very logic appl... More About: Portfolio , Results , Investing , Risk , Counter
An oil bubble, Gas prices and a higher salary for the same work @ The Round
2008-05-18 21:18:00 I didn?t have enough time today to carefully review my favorite carnivals and recommend my picks so I settled for the editor?s picks instead. I?m sure they did a great job as usual.As always, my favorite posts from around the finance blogosphere are also listed. Without further a due I present this week?s roundup:The Carnival of Personal Finance #152 was hosted by Money Under 30. The following are the editor?s picks for the carnival:You Don?t Need That! 8 Tricks for Impulse Control @ I?ve paid for this twice already10 Steps to Avoid Becoming a Millionaire @ No Debt Planfrom a yield of -99.79% to +9.99% so far this year @ Money NingFour ways to account for cash expenditures in your budget @ The Personal Financier (shameless self promotion)The Festival of Frugality #125 was hosted by Quest for Four Pillars. Here are some of the editor?s picks for the carnival:Deceptive gas pricing @ Free From Brokefrugal ways to keep your home safe @ Saving to InvestWhat are your real savings @ Mrs. M... More About: Work , Gas Prices , Salary , Bubble , Higher
An oil bubble, Gas prices and a higher salary for the same work @ The Round
2008-05-18 21:18:00 I didn?t have enough time today to carefully review my favorite carnivals and recommend my picks so I settled for the editor?s picks instead. I?m sure they did a great job as usual.As always, my favorite posts from around the finance blogosphere are also listed. Without further a due I present this week?s roundup:The Carnival of Personal Finance #152 was hosted by Money Under 30. The following are the editor?s picks for the carnival:You Don?t Need That! 8 Tricks for Impulse Control @ I?ve paid for this twice already10 Steps to Avoid Becoming a Millionaire @ No Debt Planfrom a yield of -99.79% to +9.99% so far this year @ Money NingFour ways to account for cash expenditures in your budget @ The Personal Financier (shameless self promotion)The Festival of Frugality #125 was hosted by Quest for Four Pillars. Here are some of the editor?s picks for the carnival:Deceptive gas pricing @ Free From Brokefrugal ways to keep your home safe @ Saving to InvestWhat are your real savings @ Mrs. M... More About: Work , Gas Prices , Salary , Bubble , Higher
Higher Gas Prices: A Blessing in Disguise or America's Wakeup Call
2008-05-17 15:16:00 Higher gas prices have got Americans driving less and public transport has never been this busy - A blessing in disguise? Gas prices have been too low for too long. The American public demanded and received cheap gas and is slowly undergoing an adjustment process as the result of dramatically increasing gas prices which can no longer be held at bay by any means.With oil prices climbing to $130 a barrel, and with no end in sight, the economy suffers as higher gas prices take their toll in the form of higher transportation, manufacturing and energy costs.Gas prices at $4. $5 and maybe $6 a gallon are now very significant to any household?s budget and considerations.However, I can help but notice the many blessings and advantages higher, or more real, gas prices will have both in the long and short term.Higher gas prices carry significant advantages #1 Reduced WasteThe NY Times reports more and more drivers are abandoning their cars in favor of public transportation or mass transit. Ap... More About: Politics , Economics , Gas Prices , Call , Higher
Higher Gas Prices: A Blessing in Disguise or America's Wakeup Call
2008-05-17 15:16:00 Higher gas prices have got Americans driving less and public transport has never been this busy - A blessing in disguise? Gas prices have been too low for too long. The American public demanded and received cheap gas and is slowly undergoing an adjustment process as the result of dramatically increasing gas prices which can no longer be held at bay by any means.With oil prices climbing to $130 a barrel, and with no end in sight, the economy suffers as higher gas prices take their toll in the form of higher transportation, manufacturing and energy costs.Gas prices at $4. $5 and maybe $6 a gallon are now very significant to any household?s budget and considerations.However, I can help but notice the many blessings and advantages higher, or more real, gas prices will have both in the long and short term.Higher gas prices carry significant advantages #1 Reduced WasteThe NY Times reports more and more drivers are abandoning their cars in favor of public transportation or mass transit. Ap... More About: Politics , Economics , Gas Prices , Call , Higher
Saving Hundreds of Dollars Easily with Well Placed Outlook Reminders
2008-05-15 18:56:00 Timely reminders can help save you a lot of money avoiding automatic renewals and getting better deals Ever since I started blogging I?ve adopted a positive outlook on the expensive and costly mistakes I make from time to time. I simply view them as tuition paid and a good story earned for The Personal Financier which just might save money for my readers.We got a really good packaged deal with all out telecommunications needs included (Phone line, Internet, Cable etc.). This deal saved us at least 400$ for the year. We signed up for a one year deal knowing we should expect some tough negotiations the following year.Time passes by so fast a year has gone by and we didn?t even notice. You can imagine our surprise when we were billed significantly higher for the first month of this year cutting deep into our earlier saving. We had expected it of course but we were sure we?d catch it on time and avoid the automatic and pricy renewal.This is a prevailing tactic and sales technique of man... More About: Outlook , Dollars , Saving
Saving Hundreds of Dollars Easily with Well Placed Outlook Reminders
2008-05-15 18:56:00 Timely reminders can help save you a lot of money avoiding automatic renewals and getting better deals Ever since I started blogging I?ve adopted a positive outlook on the expensive and costly mistakes I make from time to time. I simply view them as tuition paid and a good story earned for The Personal Financier which just might save money for my readers.We got a really good packaged deal with all out telecommunications needs included (Phone line, Internet, Cable etc.). This deal saved us at least 400$ for the year. We signed up for a one year deal knowing we should expect some tough negotiations the following year.Time passes by so fast a year has gone by and we didn?t even notice. You can imagine our surprise when we were billed significantly higher for the first month of this year cutting deep into our earlier saving. We had expected it of course but we were sure we?d catch it on time and avoid the automatic and pricy renewal.This is a prevailing tactic and sales technique of man... More About: Outlook , Dollars , Saving
Know your Portfolio - Three Simple Charts Can Make a World of Difference
2008-05-13 16:37:00 Portfolios change as investments change ? make sure it still fits your goals and risk toleranceA friend of mine used to manage his own investments. He was a good investor and had enough experience to avoid the common mistakes novice investors often make (more on common mistakes). Time progressed and his investments grew nicely.After a long period of independently managing his portfolio he decided to consult with an investment broker to explore new options and other financial assets. A few moments after the broker reviewed his portfolio my friend was very surprised. He was amazed to find out his once solid portfolio now had over 60% invested in stocks.Needless to say he learned a very valuable lesson that day. Managing our portfolio requires more than properly understanding risk, selecting the right assets to match our goals and term of investment and avoiding common mistakes. It requires constant and routine review. Even if our portfolio is managed by a trusted investment broker it?... More About: World , Portfolio , Investing , Charts , Simple
Know your Portfolio - Three Simple Charts Can Make a World of Difference
2008-05-13 16:37:00 Portfolios change as investments change ? make sure it still fits your goals and risk toleranceA friend of mine used to manage his own investments. He was a good investor and had enough experience to avoid the common mistakes novice investors often make (more on common mistakes). Time progressed and his investments grew nicely.After a long period of independently managing his portfolio he decided to consult with an investment broker to explore new options and other financial assets. A few moments after the broker reviewed his portfolio my friend was very surprised. He was amazed to find out his once solid portfolio now had over 60% invested in stocks.Needless to say he learned a very valuable lesson that day. Managing our portfolio requires more than properly understanding risk, selecting the right assets to match our goals and term of investment and avoiding common mistakes. It requires constant and routine review. Even if our portfolio is managed by a trusted investment broker it?... More About: World , Portfolio , Investing , Charts , Simple
Home Maintenance, The Sucker Factor and more @ The Roundup
2008-05-11 22:40:00 It?s Sunday again and as customary I?ll bring my selection of some of the best personal finance articles of the past week.Starting with my picks from The Carnival of Personal Finance which was hosted by Alpha Consumer:How to Dress for an Interview @ Cash Money LifeFinancial Infidelity - The Leading Cause of Divorce? @ Million Dollar JourneyThe Festival of Frugality was hosted by Frugal for Life. I enjoyed:Saving Money Is In! The Recession Diet and The Shift To Frugal Living @ The Digerati LifeHome Maintenance Tips @ Save and ConquerFrom The Carnival of Money Stories @ Free from Broke and the Money Hacks Carnival @ Save and Conquer I chose the following posts:Do I Really Need Long Term Care Insurance In My 30s? @ Can I Get Rich On a Salary?Free Time or More Money-Which is it? @ Greener PasturesMore from fellow personal finance bloggers:The Sucker Factor : The Cost of Being Unable to Say No - And How to Get Out of It @ The Simple DollarReader Story: Beware of Scams and Pyramid Schemes ... More About: Roundup
Home Maintenance, The Sucker Factor and more @ The Roundup
2008-05-11 22:40:00 It?s Sunday again and as customary I?ll bring my selection of some of the best personal finance articles of the past week.Starting with my picks from The Carnival of Personal Finance which was hosted by Alpha Consumer:How to Dress for an Interview @ Cash Money LifeFinancial Infidelity - The Leading Cause of Divorce? @ Million Dollar JourneyThe Festival of Frugality was hosted by Frugal for Life. I enjoyed:Saving Money Is In! The Recession Diet and The Shift To Frugal Living @ The Digerati LifeHome Maintenance Tips @ Save and ConquerFrom The Carnival of Money Stories @ Free from Broke and the Money Hacks Carnival @ Save and Conquer I chose the following posts:Do I Really Need Long Term Care Insurance In My 30s? @ Can I Get Rich On a Salary?Free Time or More Money-Which is it? @ Greener PasturesMore from fellow personal finance bloggers:The Sucker Factor : The Cost of Being Unable to Say No - And How to Get Out of It @ The Simple DollarReader Story: Beware of Scams and Pyramid Schemes ... More About: Roundup
Israel Celebrates 60 Years of Independence ? An Economic Review
2008-05-10 17:03:00 Israel at 60 is as prosperous as it has ever been, but not without challengesThis weekend Israel celebrates its 60th year of independence. Since 14.5.1948 this small country in the heart of the Middle East has turned from an agricultural based economy into a full blown economic wonder and success story.I chose to review Israel economic success through this list of little known facts and figures which, unfortunately, hardly ever make it to the news. The list will be divided in to Geography and Government, Economic Review , High-Tech Industry, Education, the Stock Market and Challenges.Geography and Government1. Israel has a very small land area of approximately 8,500 sq. miles (vs. 3,794,100 sq. miles of the US).2. Israel is a representative democracy with a parliamentary system.3. Israel?s labor force is comprised of 2.85 million employees.Economic Review 4. Israel?s economy is constantly transforming. Once characterized by a substantial public sector and a socialistic point of view ... More About: Economics , Israel , Independence , Years
Israel Celebrates 60 Years of Independence ? An Economic Review
2008-05-10 17:03:00 Israel at 60 is as prosperous as it has ever been, but not without challengesThis weekend Israel celebrates its 60th year of independence. Since 14.5.1948 this small country in the heart of the Middle East has turned from an agricultural based economy into a full blown economic wonder and success story.I chose to review Israel economic success through this list of little known facts and figures which, unfortunately, hardly ever make it to the news. The list will be divided in to Geography and Government, Economic Review , High-Tech Industry, Education, the Stock Market and Challenges.Geography and Government1. Israel has a very small land area of approximately 8,500 sq. miles (vs. 3,794,100 sq. miles of the US).2. Israel is a representative democracy with a parliamentary system.3. Israel?s labor force is comprised of 2.85 million employees.Economic Review 4. Israel?s economy is constantly transforming. Once characterized by a substantial public sector and a socialistic point of view ... More About: Economics , Israel , Independence , Years
The Problem of Accounting and Budgeting For Cash Expenses
2008-05-08 15:15:00 Where did all that cash go ?I?ve recently written two posts on payment methods or credit cards vs. cash. I argued that while cash payments help us avoid overspending credit card payments provide us with valuable and timely information for budget planning and review (Credit Cards or Cash : A Costly Tradeoff).I also provided my tips and insights on how we can make credit card payments more tangible and real to help save us money (How to Save by Making Credit Card Payments More Real and Tangible: 5 Practical Tips).There is, however, one remaining question which I?ve yet to find a successful solution to. How do we account, and budget in turn, for routine cash expenses?We can?t avoid paying cash as part of our daily routines. The problem arises at the end of the month when I take a look at all my cash withdrawals and start scratching my head trying to remember where I spent all that money. These cash withdrawals, when summed up on a monthly basis can really amount to significant sums of m... More About: Accounting , Problem , Expenses
The Problem of Accounting and Budgeting For Cash Expenses
2008-05-08 15:15:00 Where did all that cash go ?I?ve recently written two posts on payment methods or credit cards vs. cash. I argued that while cash payments help us avoid overspending credit card payments provide us with valuable and timely information for budget planning and review (Credit Cards or Cash : A Costly Tradeoff).I also provided my tips and insights on how we can make credit card payments more tangible and real to help save us money (How to Save by Making Credit Card Payments More Real and Tangible: 5 Practical Tips).There is, however, one remaining question which I?ve yet to find a successful solution to. How do we account, and budget in turn, for routine cash expenses?We can?t avoid paying cash as part of our daily routines. The problem arises at the end of the month when I take a look at all my cash withdrawals and start scratching my head trying to remember where I spent all that money. These cash withdrawals, when summed up on a monthly basis can really amount to significant sums of m... More About: Accounting , Problem , Expenses
Procrastinating Just Cost Me Money
2008-05-06 18:56:00 They're counting on us to be lazy I?m a very organized person. I keep my records in order, my desk is clean and everything is filed and sorted into place. I?ve even wrote a post about how it can save you money.Unfortunately, my orderly behavior is sometimes a mask and means of procrastination. I tend to postpone dealing with the things I find least interesting and they often find themselves sitting, very neatly, in the incoming mail tray waiting to be opened, reviewed, dealt with and scanned for posterity.I?m constantly fighting the urge to procrastinate. I know it?s costly. But every now and then I fail.This is exactly what happened to me a couple of week ago. I got an envelope from one of my insurance agencies. Now as every novice personal finance enthusiast knows you should always, always immediately read and respond to any financial letter and when discussing insurance companies all the more relevant.The lesson I re-learned: Always deal with finance related mail as soon as poss... More About: Money , Cost
Procrastinating Just Cost Me Money
More articles from this author:2008-05-06 18:56:00 They're counting on us to be lazy I?m a very organized person. I keep my records in order, my desk is clean and everything is filed and sorted into place. I?ve even wrote a post about how it can save you money.Unfortunately, my orderly behavior is sometimes a mask and means of procrastination. I tend to postpone dealing with the things I find least interesting and they often find themselves sitting, very neatly, in the incoming mail tray waiting to be opened, reviewed, dealt with and scanned for posterity.I?m constantly fighting the urge to procrastinate. I know it?s costly. But every now and then I fail.This is exactly what happened to me a couple of week ago. I got an envelope from one of my insurance agencies. Now as every novice personal finance enthusiast knows you should always, always immediately read and respond to any financial letter and when discussing insurance companies all the more relevant.The lesson I re-learned: Always deal with finance related mail as soon as poss... More About: Money , Cost 1, 2, 3, 4, 5, 6, 7 |
|
 |
|
 |
