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By Tracey, on July 26th, 2010
 On Friday, I talked about the dangers of falling off the wagon in terms of tracking my spending and noted that it almost cost me big time. It made me think about the different ways that I stay on top of my spending–and I thought that I would share it with you!
1. I track my spending. I am a huge fan of carrying around my little notebook and noting every time money leaves my pocket. I write the date I spent, how much I spent, what the money was spent on, and a general category for spending. At the end of the day, I drop the data into my excel spreadsheet to keep on top of my spending.
2. I check my bank account religiously. I am also a religious zealot when it comes to checking my bank account. “Why?” You may ask. “If I am tracking my spending why do I need to also check my bank account?” The reality is that there are some charges that recur monthly. There is also the possibility that I forgot to write down an entry. Additionally, I am able to monitor my account for fraudulent charges.
3. I check other accounts, as well. Let’s face it. Mistakes happen quite often in life. This applies to our other accounts, too. So I check my other accounts–credit card and student loans–at least once a week to make sure that no negative changes have occurred since the last time I checked. This is more of a concern with my credit card as erroneous charges could cost me money. However, this is also applicable to my student loan balances to make sure that payments have been received and credited in a timely manner.
This is how I try to avoid the Financial Folly I wrote about on Friday. Unfortunately, I am not a fool-proof machine. Sigh. Being human, I do make mistakes.
By Tracey, on July 22nd, 2010
I am not an individual who goes “all out” for gifts for others. I am not really much of a spender on material things, really. However, there are times when gift giving is not only expected, but obligatory. Anniversaries, graduations, weddings, birthdays, and holidays are really times when giving a gift is obligatory.
There was one year when I overspent on Christmas gifts and spent the next six months digging myself out of the temporary hole I put myself into. Granted, I could have paid off the credit card debt more quickly if I had been more aggressive. I know I am not alone in this experience. I know many of my friends–and I imagine there are millions more Americans–who find themselves in this annual ritual.
START BUDGETING FOR CHRISTMAS GIFTS NOW
Look, it’s July. We are in the midst of the glory of Summer. We are in the midst of meandering through long, hot, humid days, sipping our lemonade or ice teas trying to plan events to keep our children busy. I know that many minds are not on the harsh and cooler December days.
But they should be.
Christmas shopping will be here before we know it and there are three ways that we can minimize the financial impact of holiday shopping.
1. Set a budget and stick to it. Figure out what your spending needs are going to be during the holiday season. People who do not set a budget for spending on gifts are much more likely to overspend. And they are likely to overspend by a lot. So, spend the next few weeks assessing what gifts you will need to buy for friends and family and figure out a target amount. Then you can spend time saving towards that goal.
2. Start putting money aside now. This falls under the category of “Things I Should Have Done Yesterday.” Granted, paying down my debt is important to me. But so is finding meaningful gifts for friends and family. By the way, notice I said meaningful and not expensive. But in order to have some money to spend on them in December, I have to start building a gift fund now.
3. It really is the thought that counts. I am a big believer in thoughtfulness over price tag. I have a gift in mind that I may share with y’all down the line that is rather inexpensive when it comes to dollars and sense, but may actually be priceless when it comes to emotional impact. I really do believe that people like getting meaningful and thoughtful gifts over expensive ones. (Unless, of course, an expensive gift is meaning and thoughtful too! LOL)
So…here we are in the midst of July. And already I am thinking about Christmas.
Jeez. It does seem to start earlier and earlier every year…
By Tracey, on July 20th, 2010
 Debt collection agents can be ruthless in attempting to get individuals to pay old debts. These old debts are assumed, by the individual, to be dead and gone for years. But debt collection agencies bring these debts back from the dead. If you get a call from a debt collector be aware that “zombie debts” exist. You may not have to pay.
“Debt collectors are ruthless in their attempt to get money,” said one insider who wishes to remain anonymous. He had been employed as a debt collector at a large agency before the strains of the job got too much for him. “Especially in this economy, it was hard work. Painful work.”
This insider told me that debt collectors often target these zombie debts, “even if we know that they were paid.” He warned that consumers should be wary of this tactic since it can have an adverse effect on your credit. “You see, even if the zombie debt is dead—i.e. off of your record for the last seven years—the moment you make a payment, it brings the debt back from the dead. And it can take your FICO score and credit report along with it.”
He warns consumers to know their rights. “Know that debt collectors have a boundary and a line that they can not cross.” If you feel you are being pestered by a collector, call your state attorney general’s office to research if a statute of limitations exist on this debt. Rules differ in each state, as well as for different types of debts. “Debts that were not paid may not need to be paid if the statute of limitations is up. But this is how these companies make their money. They buy your old debt from the company that never collected for pennies on the dollar, hoping to get 100% of the payment from you—by using almost any means necessary.”
“A good tool in your defense is to ask the collector to send a detailed letter via certified mail.”
At the end of the day, know your rights and research the topic of debt collection and zombie debts. Ignorance in this area may end up costing you hundreds—or thousands—of dollars.
By Tracey, on July 19th, 2010
In creating a blog, I have always thought that a sense of community was just as important as the quality of the content being provided. That’s why today I have really exciting news!
I am rolling out the ISeeMillions Marketplace!
WHAT IS THE MARKETPLACE?
The marketplace is a gathering of sorts. Services and products will be featured there by advertisers and sponsors, but it extends beyond that. It is just as important for this marketplace to be a place for you to be able to advertise your products, as well.
Make this marketplace can work for you!
- Advertise your Etsy page
- Place a link to your books being sold on Half.com
- Place a link to auctions or items that you are selling on eBay
- Advertise other services or products, as well.
You might be thinking that you can do this all on Craigslist or Ebay and you are right. But my readers want to support each other. They want to be able to help someone else on their quest to make money. For all members of the ISeeMillions community, it is more meaningful to help each other out!
THE PRICE?
Honestly, in building this marketplace, I am charging the RIDICULOUSLY low price of $1.99! This is a buck ninety-nine for as long as this site is in existence. No monthly fees. No additional charges.
Follow the link to the Marketplace: http://iseemillions.net/marketplace/
WHY AM I DOING THIS?
I am doing this for various reasons. First and foremost, I really want to create a community of value for readers who find themselves drawn to this blog. I want this to be a community that will have some additional value beyond just reading interesting and thought-provoking posts.
I am also doing this because I want to be able to make money in a new and exciting way. Rather than just sit here and ask for donations to help this social worker get debt under control, I thought I would offer a value where people could advertise their own interests. In short, I think it is a win for everyone involved.
I am really excited to see where this Marketplace idea goes.
By Tracey, on July 16th, 2010
Each Friday–or at least most Fridays–I will spend some time writing about whatever I damn well please! (That made me laugh. Could I write with more indignation?)
Anyway, I have gotten some email from a reader and was asked by another individual why I named my blog “I See Millions.” Each wanted to know if it was linked to some “secret”–cough, cough. Was this some sort of law of attraction that I was putting to use in my life? And the simple answer is “no.”
Years ago a friend of mine bought this domain name and he was trying to help people make money from it. He sold a few books on businesses or pointed people in the direction of some other books about feasible work-at-home opportunities. However, he didn’t have the time or the energy to get that endeavor up and running, so he asked me if I wanted to take over the domain and the website that was already running.
I jumped at the idea. Why? Because I loved the domain name.
It inspires me. To me the domain name is only the beginning clause of a sentence. “I see millions…”
Every time I type the domain name in the header, I always play with different clauses and words.
I see millions…
- …of opportunities throughout the day for bettering myself.
- …of different opinions that could all lead us to new and better directions.
- …of smiles every day.
- …of avenues for change.
- …of strategies for success.
- …of roads not taken.
While this is primarily a personal finance site to document my path towards debt reduction–and therefore, I hope one day “I see millions of dollars”–until then, my other interpretations will suffice.
And that’s why.
By Tracey, on July 15th, 2010
  I was talking to a friend the other day who has begun to investigate attending Debtors Anonymous meetings. She is a person who has run up over $35,000 in credit card debt and she has little–if anything of real worth–to show for it. While I know that the bulk of my debt is connected to earning my graduate degree (and even then, my credit card debt increased because of grad school), I often wonder what makes spending an addiction.
I did some research online and found a 12 Signs of Compulsive Debting. So I thought I would share the questions–and my answers–here. (By the way, these twelve signs can be found on page 14 in The Currency of Hope.)
1. Being unclear about your financial situation. Not knowing account balances, monthly expenses, loan interest rates, fees, fines, or contractual obligations. –> This doesn’t apply to me. I sometimes think I am too clear about these issues.
2. Frequently “borrowing” items such as books, pens, or small amounts of money from friends and others, and failing to return them. –> Nope. I do borrow items at times, but it isn’t frequent. Also, I sincerely do not like to borrow money from friends. It can muck up the relationship.
3. Poor saving habits. Not planning for taxes, retirement or other not-recurring but predictable items, and then feeling surprised when they come due; a “live for today, don’t worry about tomorrow” attitude.” –> I might be in the midst of this. I am trying to get in front of this issue.
4. Compulsive shopping: Being unable to pass up a “good deal”; making impulsive purchases; leaving price tags on clothes so they can be returned; not using items you’ve purchased. –> I actually hate spending. I am not a very materialistic person.
5. Difficulty in meeting basic financial or personal obligations, and/or an inordinate sense of accomplishment when such obligations are met. –> Nope.
6. A different feeling when buying things on credit than when paying cash, a feeling of being in the club, of being accepted, of being grown up. –> Nope. Doesn’t sound like me.
7. Living in chaos and drama around money: Using one credit card to pay another; bouncing checks; always having a financial crisis to contend with. –>Not me. I have always heard about people who use one credit card to pay another and am always amazed that they don’t understand the trap they continue to put themselves in.
8. A tendency to live on the edge: Living paycheck to paycheck; taking risks with health and car insurance coverage; writing checks hoping money will appear to cover them. –> I always have health insurance. I will pay that premium before I write my rent check! Car insurance is very important to me and I always make on-time payments. I am living paycheck-to-paycheck because I am trying to get out of debt!
9. Unwarranted inhibition and embarrassment in what should be a normal discussion of money. –> I can actually hold my own in terms of discussing money. So, nope!
10. Overworking or under earning: Working extra hours to earn money to pay creditors; using time inefficiently; taking jobs below your skill and education level. –> Let’s face it, don’t we all feel as though we are under earners??? LOL.
11. An unwillingness to care for and value yourself: Living in self-imposed deprivation; denying your basic needs in order to pay your creditors. –> Nope.
12. A feeling or hope that someone will take care of you if necessary, so that you won’t really get into serious financial trouble, that there will always be someone you can turn to. –> And finally, nope.
I am interested to see if these twelve points resonate for my friend who is seriously researching DA meetings. To be fair, just because these are not salient to me does not mean that information and literature from DA can’t be helpful to me. But, with My Total Money Makeover, I feel as though I am ahead of the game.
By Tracey, on July 14th, 2010
 I work for an organization that–among other things–provides short-term financial assistance to those who qualify. We don’t only provide money, we also provide a slew of financial wellness classes and courses in order to guarantee that people will be able to break their cycle.
Many of the clients I work with discuss their financial situation as temporary. A “temporary” situation that they have been in for the past twenty-five years. They drown in debt. They have always earned a minimal amount every year. They continue to spend. They live in a precarious financial situation day-in-and-day-out. Some face bankruptcy. Some face foreclosures.
And all because they lived their lives waiting for a financial windfall.
As a result of working with these clients, I have discovered three rules that I have begun living by.
RULE #1: THE WINDFALL RARELY COMES For many of us, the financial windfall that we wait for rarely comes. Many of our parents or grandparents won’t have an inheritance that will significantly change our lives. Still fewer will ever win a lottery jackpot. (I feel like I should repeat that–still fewer will ever win a lottery jackpot!) Ed McMahon won’t come back from the grave and knock on our doors with an oversized check. Most of us will never write that best-seller or be hired as an actor on a hit television show. The financial windfall rarely comes.
RULE #2: PLANNING COULD HAVE MADE YOU A MILLIONAIRE Just because the windfall may not come, does not preclude the very real fact that you could become a millionaire many times over. Through planning, discipline, and hard work, you can fulfill your financial dreams–or at least find a level of financial stability! Many people figure this out far too late…all because they are waiting for the windfall.
RULE #3: BANKRUPTCY DOESN’T HAVE TO BE THE ONLY OPTION My favorite realization is that bankruptcy does not have to be the only way out. Unfortunately, I am not able to talk about the wisdom of Dave Ramsey and Suze Orman. I can’t point people in the direction of pfblogs.org. I can’t tell them that by hard work, they can get to the bottom of their financial mess and clean it out.
Too many of us wait around for our windfall. We scratch those lottery tickets and place a dollar on a MegaMillion quick pick, hoping that will deliver the keys to debt elimination. What we don’t realize is that the power to our financial future already lies within ourselves. With some great guidance from the people mentioned above, we can get our debt and live our financial dreams.
By Tracey, on July 13th, 2010
 This is a confession that–not only am I making to you–but I am making to myself as well. I am increasingly honest with the state of my finances, but I continue to live a financial lie. There is one are in which I have not been honest to you (the reader) or to myself. I have stopped using credit cards and now work to pay them off as quickly and aggressively as I can. I dutifully track my spending and create a monthly spending plan accordingly.
Yet, I continue to overspend from $250-350/month. Here’s how:
1. Overdraft on my ING Checking Account My ING Debit Card is the one hole in my financial plan. Every single month, when my primary checking account slinks closer and closer to zero, I then pull out my ING Debit Card, knowing that I have a $250 overdraft “cushion.” While this may help ease my financial stress in the moment, it always turns into financial pain down the road because I have to pay that $250 every single month to bring the balance in that account back to zero. Guess what…Tracey don’t play that! I have now cut up that card and will think about closing the account entirely.
2. Overdraft protection via my primary bank. Oh, Dear Overdraft Protection. How you have saved me throughout the years from pesky $35 NSF fees! But this workaround is actually expensive in a similar way. Not only do you, Mr. Bank, automatically charge me $100 from my credit card, but you also charge an extra $10 fee for this service. So each time overdraft protection is activated, I am looking at the reality: I just “borrowed” another $110 in a high interest loan.
3. Last minute transfers from my “emergency fund.” To avoid using my ING Debit Card and to avoid overdraft “protection” from kicking in, I have often transferred just enough from my “emergency fund” to cover the expected amount. While not a true emergency, I don’t mind continuing this practice because the $50 or $60 transfer is the best money saving approach of all three.
My goal for the next few months: I will bring my spending under control. I overspend from $250-$350/month. That’s inexcusable and shameful!
In fact, doing so will only keep me locked in to this financial mess.
By Tracey, on July 12th, 2010
 Week in and week out, I set lame goals that are nebulous. They aren’t specific. I don’t write them down. They tend to be general in size and scope and sometimes sound like the following:
- I will save less money.
- I won’t spend money.
- I will figure out a way to save money on lunch.
None of those sounds very motivating.
This week, it will be different. This week, I am going to set goals that are specific and attainable. Each goal I set I will work towards attaining. Even if I don’t attain the goal, I won’t abandon it entirely, but I will spend some time figuring out why I didn’t achieve the goal.
Here are my goals for the week:
- I will bring a packed or prepared lunch to work four days this week.
- I will finally finish cleaning out our storage unit (we paid for one extra month).
- I will not buy a dinner or spend money on a happy hour this week.
- The money I would have spent will be applied towards debt.
I think those are pretty specific and attainable goals. I will keep you updated as to how they turn out!
By Tracey, on July 11th, 2010
Here are some great reads that have made me think this past week. I hope that you enjoy this edition of the Roundup.
Dawn at Frugal For Life talks about the life lessons on frugality she learned from her grandparents and her parents. She even recognizes the lessons she was able to learn on her own in a post titled “Frugality is Life Long.”
Beks talks about the difficulty of setting a financial challenge at Blogging Away Debt.
Nora, one of the writers at Wise Bread invites us to ask ourselves a comprehensive list of questions to figure out the health of our financial plan.
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My Total Debt Original Debt: $52,690.46
PAID OFF: $608.00
REMAINING: $52,082.46
Debt Breakdown Credit Card #1:
$0.00 (6/10/2010)
Credit Card#2:
$10,478.00
Student Loan #1:
$20,839.35
Student Loans #2:
20,765.11
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