...When opportunity knocks

It is my firm belief that if it looks too good to be true, it usually is. The latin term that sums up my skepticism is "Caveat Emptor" which translates as "Let the buyer beware". Now this does not only apply to purchases. Tonight, I want to talk about all those get rich quick "opportunities" that are knocking down doors looking for the next sucker. That's right I said "sucker"! I have watched so many of my friends and family dive into so many different get rich quick schemes with minimum success. The only thing that they have in common is that they lost more money than they earned. I've seen everything from cosmetics, water filter businesses (I did that one), vending machines, flipping houses, time shares, and the list goes on. By the way, your personal time is worth a dollar amount and if you've invested you are involved in a get rich "opportunity" that requires both, you may consider doing the math. That being said, here are a few tips to consider before you unload your hard earned money into one of those "opportunities" that comes knocking at your door.

Rule #1: If someone approaches you with any opportunity that requires you to spend your money, run do not walk to the nearest exit.

Rule #2: By the time the masses find out about these secret "opportunities" the only person getting paid is the person selling it to you.

Rule #3: If "opportunity" knocks on your door, calls you on the phone or emails you, RUN do not walk to the nearest exit! Think about it, are there really people out there looking for you to give you money. Not likely as they are looking for the next sucker.

There are some real opportunities in this world. The people who are best prepared to "meet" those opportunities will have the most success. I was riding down a street one evening and saw a sign that said "Luck is being prepared for the opportunity." It made a lot of sense.

A good opportunity is one that you have prepared yourself for and instead of it knocking on your door you will most likely find it while searching for it or meet it halfway. For example, you can't win the lottery if YOU don't play the ticket. The greatest rewards often come from the greatest risks. So that "safe" investment opportunity that everyone knows about even though it's labeled as a "secret" will in many cases not give you enough of a return on your investment to make it worthwhile.

Taking a calculated risk means doing your homework. That means spending time researching and gathering information from numerous sources. Don't be lazy and rely on the words of that co-worker who always has lots of opinions. Formulate your own opinions by doing your homework. Consider where you are getting your information from and who is providing it. When looking for a good investment, look for the thing or idea that is not currently in the mainstream. In the event that you are approached with this type of opportunity, spend time researching the supply and demand aspects and the marketability of the opportunity. For example, if the folks at HP had recognized the potential in the Apple computer when Steve Wozniak presented it to them, all of our lives might be a little different today. Good luck folks and if you do uncover the next Apple or Starbucks, etc. Please let me know! I might not open my door, but I will do my homework and see you at the bank.

…Good, Better, Best.

The recent launching of the latest iPhone 4 gave me much to think about regarding when it is time to replace an existing item. One of my friends stood in line for 5 hours waiting for his new toy. Now, he’s a frugal and practical kind of guy and he had a fairly recent version of the iPhone in his possession. However, the allure of all the new bells and whistles was a bit too much to ignore. Quite frankly, if I had not purchased the 3GS model recently, I might have been in that line waiting with him. After hearing his description of the new version, I was tempted. However, I have been relying on my good, better, best rule which helps to keep me out of trouble. I rationalized that while the new iPhone is probably the best cell phone on the market, my 3GS is better than most of the good cell phones available today. While the transition to the new phone is almost seamless, I am a creature of habit. I like every App exactly where it is. I am also getting to the age where I really don’t like change. Years ago, being frugal was considered a positive attribute. In today’s world, where an electronic device such as a cell phone gets replaced more often than some of the food in your pantry, we need to really stop and think about the good, better and best options. This includes those high priced sneakers, fancy purses, and other merchandise that we buy to impress others. When you are paying the bills do you ever stop and think about how impressed those others would be if they knew what you sacrificed to appease them. By the way, did you ever think to ask yourself who those others are that you are trying to impress? Chances are, they’re the people who are robbing Peter to pay Paul just to impress folks like you. I have to admit, I love my iPhone and in my opinion, it is a necessity for me. Different folks have different priorities. The key here is to prioritize your purchases so everything does not become a necessity. It’s okay to splurge on an item that really rocks your world. But, before you spend that hard earned cash, stop and think about the good, better and best rule.

…having it all.

You can have it all, but don’t expect to have it all at once. If you are a parent raising small children and working a full-time job there is very little time left for school unless you have a very good support system. Your time is your most valuable asset. Your children are only small for a short period of time so if at all possible try not to cut into time spent with them. If you are in a relationship, married or otherwise, your partner needs face time too. If you have pets, Fluffy and Fido need attention so factor that time in first. Pace yourself when it comes to balancing out your life. When you are making the decision to reinvent yourself, sit down and think about what you are really willing to sacrifice. Some things can never be regained so be careful. On the flip side, do not be so giving that you don’t give yourself some me time. If you find that you are starting to resent folks when doing favors it might be time for a little me time. The goal here is to find something that you are passionate about and do it. Now, let me just warn you parents out there about the effects of finding your passion. For example, if you are a reader, have you noticed that just when you sit down and start really enjoying the book, your kid shows up and wants to have that meaningful talk. As a matter of fact, I discovered that it is a good way to get your children to talk to you. Try it sometime! The next time that you want to talk to your child(ren), sit down on the couch with your favorite book and act like you are really enjoying yourself. Within minutes they will suddenly appear with a situation that needs your immediate attention. LOL, all you single folks take notes, you might need this advice one day. If you don’t believe me, try it and let me know how it works for you.

… show me the money!

Welcome back gentle readers. I became inspired to continue with this blog after watching “Julie and Julia” last night. Better late than never, right? Okay, I have been talking to you about spending wisely. However, in order to spend money you have to have money. Back in my younger days we referred to being broke as “eating ice”. I’m talking about being broke, busted and totally disgusted. I remember my breaking point as the day I lost my mind over a jar of salad dressing. My family gave me an economy size jar one Christmas as a joking reminder of my insanity. At the time I was in deep despair over my inability to purchase the name brand of my choice. It was then that I realized that despite my best efforts and intentions, my financial life was out of balance. So I started to focus on what I had coming in the front door. In order to change my circumstances I had to change my market value as an employee. It is not enough in these times to be a hard worker. You need to bring something to the employer that makes you stand out above the rest. If it means going back to school or learning a new skill then you should do that. But you should not do it on any one's terms but your own. Do not let some fast talking salesperson or representative give you the speech about hurry up or it will be too late. It is never too late as long as you have breath in your body. When you stop breathing, guess what, at that point none of it matters. Reinventing yourself is not only about getting a better education. Sometimes the easiest and most cost effective way to change is to simply change your attitude. Believe it or not, putting on a smile and presenting a positive outlook can reap huge results. People have often told me that I am lucky. I was riding down the street on day and saw these words posted on the side of a building “Luck is being prepared for opportunity”. I didn’t create that statement but it really resonates in my soul. Over the years I have constantly prepared myself for better opportunities. I didn’t want to sacrifice time with my child so when she was young I did self study computer based training (CBT) during my lunch break at work. If your job offers free training take it! Knowledge is power and has the power to transform and move you into a higher paying job. Another tidbit is to find your passion and the money will follow. I would rather work a job that pays less but gives me self satisfaction than one that pays an enormous salary that I don’t enjoy. I am speaking from experience here so pay attention. Much of what I am saying to you can be found in any self help book on the shelf. But, just like a cookbook if you don’t try it then it’s just a recipe. I have cooked in the game called life and I can tell you quite honestly that these little tidbits work. If you want to change your circumstance today, just stop and ask yourself what can I do at this very moment to make my life better tomorrow?

... the art of shopping

Before I committed to this posting I thought about the psychology of spending. I thought about how empowering it is spend money. You know what I mean. That rush that you get when you say "Charge it!" knowing that your charge card will actually work. Of course there is another kind of rush with spending money. It's best depicted by the commercial of the lady running out of one of my favorite stores like she stole something. Her arms are filled with bags and she is screaming at her spouse "Start the car, start the car!" LOL, I how well do I know that feeling. Shopping is a fine art and when you hit the mother lode there is a euphoria that is better than.... I will let you complete that sentence. Anyway, this state of euphoria can be habit forming. That's how folks end up on those shows about hoarders. As much as I love a bargain, yard sales, auctions, and such I have finally come to terms with enough is enough. I don't have any more space in my house for stuff, no matter how much I save. I have also come to realize that the more I acquire, the more I have to maintain. I am getting too old for maintenance. But, for those of you who are still young enough to enjoy the rush let me share some of my shopping tips. First, never, ever, pay retail prices for anything. Honestly, you can always get the same quality and products at a cheaper price. Today's economy is a gold mine of great deals. As a quick reminder, if you have bad credit, you will find yourself paying higher prices for everything. So, keep or work on getting that credit straight. Let's start with car purchases. DO NOT focus on the monthly payment. When you go into a dealership be prepared to say NO many times. Whenever possible, get pre-approved at your credit union or bank first. The interest rates at dealerships can be RIDICULOUS! Also, know how much you are prepared to spend and stick to that plan no matter what. DO NOT get suckered into that low monthly payment. By the time you pay off that car you might be using it as a lawn ornament. DO get an insurance quote on the vehicle before you commit to purchasing. DO shop around on the internet first. DO ask your dealer about the demos that are in stock. You can save a huge amount of money buying a demo with all of the benefits of a new car. Buying a car after it has a few miles on it is often an advantage, because if it had any bugs the dealer should have discovered and fixed them. It has been my experience that extended warranties are a waste of money. Again, don't look at the monthly payment, look at the total cost with interest. You are better served to save the additional cost of a warranty in a rainy day fund. That way, you earn the interest, not the dealer. If something should go wrong with the new car you are covered by the manufacturer warranty. If something goes wrong after that warranty expires (on average 3-5 years later), you should have money in the rainy day fund to cover it. If nothing goes wrong or you buy a new car, you have cha-ching in savings that can be applied as a down payment and reduce the cost of a new car purchase. Paying extra on the principle also eliminates some of the interest charged. If you are stuck with bad credit, then try to pay off the vehicle early by making additional payments toward the principle. (Warning, some lenders charge a penalty for early payoffs. Make sure that you read that fine print.) This also works well with home loans. It can take a long time for your credit rating to catch up to your current financial status. The same rules apply when shopping for other merchandise. If you can pay cash, then pay cash! If it cost more than you can pay, save up for it. If it is a hot item at the Black Friday sale, charge it if you must, but pay off your charge card completely whenever possible. I know it's not easy but, what's the point of getting something on sale when you end up paying so much more in interest charges? Another tip for the shopping warriors is, if it looks like it is too good to be true, it usually is. If someone approaches you with a sale don't buy! Only buy when you are looking for an item. Always ask questions, always compare. If the salesperson does not accommodate you then go somewhere else. News flash! Money spends almost everywhere. I haven't figured out where it doesn't spend but I am working on that. Sometimes we get caught in the trap of shame and spend our money in places that make us feel bad. You know, those pricey snobbish boutiques that make you feel like you are too poor to be acknowledged. The first rule of shopping is if you are not being treated appropriately, take your business elsewhere. Chances are, not only will you get better prices; you will get superior service as well. That includes everything from cars to fast food. As a consumer you should be sending a message to retailers that if you aren't treated well you will spend your money elsewhere. That will assure that you get quality in addition to quantity when you purchase your merchandise. Okay, time to let the dogs run. Come back and see me soon.

...going out the back door.

Greetings all and welcome to my blog. I named this site fifty-nine cents because all the good names were taken and I remembered a little rhyme we used to sing about trying to make a dollar out of fifty-nine cents. With the economy in the toilet these days many folks are squeezing their dollars to get the most bang for the buck. I thought that it would be a great topic for a blog. My first post will speak to bad spending habits. The bottom line is that if you spend more money than you make you are broke. It doesn't matter how much you make if you spend more than you make you are BROKE!!!! It doesn't matter how much credit you have or can get. If you owe more money than you have you are essentially BROKE!!!!! A woman earning minimum wage who saves a dollar every payday is richer than you even if you earn six figures. So stop kidding yourself. When I see fancy cars or homes I think nice, but how much did that cost them? People can acquire all kinds of stuff, but the trick is keeping it. As the recent housing market decline showed us, many people are living beyond their means and got caught when the bottom dropped out. I realize that it was difficult in some areas to purchase affordable housing. But, remember the market was driven up by people who were willing to agree to almost any term to get that dream house. And for what? Who did you impress? How impressed were they when the foreclosure sign went up? Did they offer to pay your mortgage? I don't think so. Chances are they were covering up the foreclosure sign on their own doors. So, robbing Peter to pay Paul to please Mary is just STUPID!!! Okay enough of the soap box, let's talk about how to get and stay on your feet. The first step is to clearly understand where you really are financially. No fancy equipment or software needed. Get a copy of your credit report(s). Get all three if you can afford it because they sometimes will vary. Don't be scared. If debt collectors are on your trail, then go to a car dealer and act like you are buying a car. They will pull your credit report and it they are nice may even give you a copy. We'll talk about evasive maneuvers in another post. Okay, back to business. Sit down and review your credit history. If you need a box of tissue it's okay. Believe it or not once you face that fear it gets better. The next step is to write down a life plan. It should be at least one year and no more than five. When you write out your plan, put down all the things that you want to do and could feasibly do within the time frame. Don't cheat yourself either. Once you make your plan go back to your credit report and make a plan of how you plan to pay off your debt. Keep in mind the things that you have already written down on your life plan. One thing that I discovered when I was fighting bills was that I needed to reward myself after working hard every week. I went through several years of denying myself and felt extremely guilty when I bought anything for me. Now I'm not talking about expensive bling, fancy cars or such. Sometimes something as simple as a specialty cup of coffee will do the trick. One of the things that you will learn by writing down what you owe, how you plan to pay for it and what you want to do, is where you are wasting your money. Another thing that you must determine is what is a need and what is a want. For example, cable TV, manicures, pedicures, the regular trips to the barber or beauty salon, cigarettes, beer, and wine ARE NOT NEEDS!!! A roof over your head, food (and I don't mean eating out or take out) clothing, and basic transportation are modern day needs. By the way, a beige Mercedes is not basic transportation get over it. For those of you who are people pleasers you should start asking yourself, Why? The bottom line here is that if you earn $100 and spend $75 you have $25 to the good. Just basic math. If you train yourself to spend no more than a set limit that is less than what you can afford to spend you should do okay. What can you afford? Well a simple rule is if it takes you less than six months to pay back, think about saving up for the item if possible and paying cash. A clear sign that you are broke is that you can't afford to save. If you can't afford to save, then you can't afford that item that is most likely a want and not a need. Grandma always told us, "It's not what you have coming in the front door, it's what's going out the back. Think about it! I'm not a finance professional or a self proclaimed economist. I am just an average woman who has survived and conquered being in debt. Please stop by regularly and join in on my blog.