Need a Realistic Budget? Make One According to Your Spending Habits

Make a budget. That’s what everyone tells you to do when you’re trying to save a buck here or there, but no one tells you exactly how to do it.

Back in the 10th grade we learned all about balancing checkbooks — something I’ll admit I still don’t do — and how to create a budget. Read more

Review Corner: I Will Teach You to be Rich by Ramit Sethi

A few weeks back, I was able to get my hands on a copy of  Ramit Sethi’s (a personal finance blogger gone best selling author) new read.  Sethi’s book, “I will Teach You to be Rich” is a six-step program offering financial advice for people just starting out managing their money.  Like most financial know-hows, IWTYTBR doesn’t break any new barriers when it comes to basic financial principals.  But let’s face it:  personal finance isn’t nuclear science.  A successful PF book teaches people how to implement those basic ideas into their daily routine and make them stick.

I’ve read a decent amount of personal finance and investment books, and the ones that I find particularly effective and worthwhile are always the ones that break down the financial jargon into simple to understand terms.  No investopedia needed.

Luckily, Ramit’s book fits the bill with its easy-to-understand concepts and injected case studies that further explain financial concepts with realistic scenarios from friends and blog readers.

The starkly different concept of Sethi’s book, however, are his ideas on spending.  While hoards of other financial writers and bloggers will praise frugality and lecture you on the merits of reusing ziploc baggies and making your own laundry detergent to save $6 a month, Ramit does quite the opposite promoting an alternative to traditional budgeting called a “Conscience Spending Plan”.  And in doing so, he succeeds at bringing a sense of reality to money management.

As an example, in his chapter on controlling expenses he discusses his friend “Lisa’s” shoe spending — dropping a whopping five grand a year on footwear.  However, he further describes, that along with a healthy salary, she also still lives with a roommate, nixes expensive electronics and keeps eating out at a minimum.  While her priorities may seem out of whack to the rest of us, she’s spending money on the things that are important to her, while conserving funds in other areas of her life that she deems less important.

IWTYTBR revolves around a six-week program promoting a different financial concept each week that includes:

• Setting up credit cards and improving credit history
• Setting up the right bank accounts by negotiating no-fee, high interest accounts
• Opening and managing your 401(k) or Roth IRA Investment account
• Analyzing your spending and conceptualizing a budget that fits your spending
• Automating your banking infrastructure to make things run as smoothly and flawlessly as possible
• Learning how to get the most out of your investment accounts with very little work

At around 250 pages, it’s a quick read — and definitely worth your time if you’re like most people and trying (or perhaps forced?) to restructure your finances during the down economy.  And with the majority of young adults exiting college with an average of $12,000 in student loan debt and 66% having at least one credit card, it really couldn’t come at a more opportune time.

You can pick up a copy of Ramit’s book here , take a test run of a few chapters here, or you can play our little game in the Comments section for a chance to win a FREE copy!  Keeping on the topic of personal finance, we’re asking you guys to chime in with your own tips for saving money and managing your finances.  Our favorite tip wins a brand spankin’ new copy of I Will Teach You To Be Rich.  Contest officially closes on May 1st at 5pm, and the winner will be announced on May 4th.

Can Someone Please Help Me Find My Sympathy? I Seem to Have Lost it.

Heads rolled after Obama’s stimulation restrictions were voted into place allowing companies receiving federal support to limit executive salaries to $500,000.  According to an article from StockWire, Crain’s, a New York business weekly, conducted an impromptu study of the Manhattan banking elite’s typical expenses.  Read more

Recession-Proof Activities III: Bigger, Badder, Harder

So, New Yorkers…how are your finances? If you’re like the majority of Americans riding out the recession wave, penny pinching, saving, and being financial responsible is more vital now than in any other time in our lives. Still, you can have plenty of smile without opening your wallet, purse, or murse. It’s Recession-Proof Activities III, the follow up to follow up to Recession-Proof Activities I and II. Consider this a sequel that doesn’t suck.

Download free music from RCRD LBL: The brainchild of GDGT’s visionary Peter Rojas, the vowel-less RCRD LBL is an ad-supported site that lets users download free, legal MP3s–no RIAA lawsuits up in this piece. The MP3 catalog is a mix of new and established artists (Black Dice, Santogold) who get a cut of ad profits. The icing on the cake? You don’t even have to sign up for an account–point your browser toward RCRD LBL and commence partying.

Resurrect an old notebook with Linux: Have an old PC that chokes, wheezes, and coughs when you power it on? Put it to good use with Linux, a free open source operating system that has less bloat than Windows, so it runs fine on ancient hardware. Linux comes in many flavors, but we recommend Ubuntu which has an easy level of entry for wannabe techies. Simply download the ISO file, burn to CD/DVD, and boot your PC from the disc.

Check Out the NYC Public Library Cultural Calendar: If you’re looking to take in some learnin’, the NYC Public Library is here to help. The institution hosts lecture series covering a range of topics from business to science in various locations around the city.

Get A New Do–For Free!: The hair stylist ninjas at Bumble & Bumble (the salon to the stars), have to start somewhere–and the somewhere is Bumble & Bumble University. There the students learn to trim, dye, and cut with real human heads. Sign up, get styled, and take pride in knowing you’re assisting stylists-in-training make steps towards their dreams — and get a kick-ass hundred dollar haircut for nary a dime (they don’t accept tips).

Take A Ride on the Staten Island Ferry
The Staten Island Ferry shuttles 20 million people a year between St. George on Staten Island and Whitehall Street–without charge! Enjoy the terrific view of Ellis Island, Lady Liberty, and the city’s skyline as you cruise one of NYC’s most under-appreciated modes of transportation.

Sit In on a TV Show Taping
Many popular TV shows are taped right here in NYC such as the Daily Show, The View, The Colbert Report, Letterman,  and SNL,  and it won’t cost you a thing to sit in as a member of the studio audience. Tickets, naturally, can be hard to come by so you may have to call/request them online several times to nab one (or even stand in line outside of the studio in hopes of copping the seat of someone that’s canceled).

That’s Recession-Proof Activities III for you. Keep those eyes peeled for more freebie activities that will put a smile on your face no matter if you’re home or out on the town.

Organizing on a Budget

With the seasons changing and the weather getting progressively colder, I’ve been trying to pack up my tank tops and make way for my winter coats and boots.  Unfortunately, that’s not as easy a task as it sounds.  To add to the misery, it can also be a hugely expensive project to undertake — buying up all those plastic storage bins and wire shelving units. Read more

Monthly Mashup: October Edition

It’s that time of year when the weather turns crisp and the proud citizens of New York bundle up in their winter gear. But before we head off into the mother of all holiday seasons, let’s take a look retrospective look back at some stories from the past month.  Here are some of our favorite posts from around the net, as well as our more popular stories from October in this month’s Mashup.

One on One with Credit Karma’s Ken Lin – We spoke to the CEO and founder of Credit Karma, a new internet start-up that allows you to check your credit score whenever you want. We got the 411 on how the site works and where they plan to go from here.

The Under $60 Work Outfit - The Budget Fashionista showcased a great example of budget shopping with her $60 Work Outfit.  Find out how you can look fabulous for pennies on the dollar.

5 Well-Paying Careers You’ve (Probably) Never Considered – Now can be a rough time for students looking into future career paths.  With layoffs aplenty right now, the usual career paths may not be such an enticing route.  Check out these five career paths that are blossoming despite the recession.

8 Fun Recession-Proof Activities – You don’t have to stop your social life because of rising prices and stagnate salaries.  There are still ways to entertain yourself at home and around NYC –  even when you’re on a shoestring budget.  Check out our 8 recession-proof activities for some low-cost NY fun.

Six Benefits of Bill Consolidation – Consolidation doesn’t have to mean defeat.  There are many benefits of consolidating bills and we’ll take a look at six of them.  Take a look at them and get your finances under control and back on track.

Gotta Travel? Take the Bus! – With air travel sky rocketing (excuse the bad pun), it’s no wonder people are looking for alternate travel means.  Check out these four bus companies that are helping NY’ers ease the pain and costs of traveling.

Consumers Feel the Next Crisis: It’s Credit Cards – The New York Times takes a look at the credit card industry, and how the current economic situation is affecting the way they pick and choose lendees.

5 Simple Meals Made with Ramen – You may not be able to afford a fancy dinner, but that doesn’t mean that you have to spend five nights a week rotating between beef and chicken flavored ramen.  Take a look at our five fun and easy meal ideas to spice up that ramen.

Switching to Cheap Beauty Products – Drugstore spending can easily spiral out of control — especially for women purchasing makeup and beauty products.  Read up on how to trade in those expensive products for budget alternatives.

Work Out for Cheap: Alumni Gym Memberships – Gym memberships are super expensive these days, but staying fit and healthy is still a prime and valid concern for most people. Think you can’t have both?  It may be more possible than you think.  Check out our list of NYC alumni gym memberships.

Creating a Last-Minute Halloween Costume (on the cheap)

According to the National Retail Federation’s survey, Halloween costume spending has increased this year to 5.8 billion this year compared to 5.07 billion last year. Statistics are showing that each consumer will spend approximately $64.82 each on costumes. Spending money as a way of escapism from financial hardships is not an acceptable method of therapy. So, in order to persuade you NOT to spend $65 on a one-time wear, we’re offering some cheap costume tips that will help keep that wallet padded.

Keep reading for some cheap and fun last-minute costume ideas that will run you less than $30.

1. Super Mario
What You Need: Red T-shirt, Overalls, Brown shoes, white gloves, and Black felt.
What You Do: Cut out a mustache from the black felt, use double-sided adhesive to attach it to your face, and throw on the aforementioned outfit.

2. Tinkerbell
What You Need: Green tights, wings, green skirt and shirt, scissors
What You Do: Cut the bottom of the skirt in a V (or zig zag) patten (see here). Put on your green tights, attach your wings, grab your wand, and BAM – you’re ready to go.

3. Waldo
What You Need: A red and white striped shirt, blue jeans, brown shoes, and a red or white pom-pom cap. (I realize that his cap was red and white striped, but the odds of finding one of those are close to non-existent)
What You Do: You basically just get dressed.

4. Laundry
What You Need: Cheap, small, circular laundry basket, sturdy ribbon, miscellaneous t-shirts, towels, and underwear.
What You Do: Cut a hole in the bottom of the laundry basket big enough for you to fit around your waist. Tie two long strands of ribbon to each side of the basket (front to back) so that it hangs on your shoulders like suspenders. Drape miscellaneous clothing/towels/underwear around your body and off of the laundry basket.

Find Daily Bargains with GoToDaily

LifeHacker featured another really cool website the other day called Go To Daily.  A cross breed between Coupons.com, Retail Me Not, and a social networking site, GTD is an online shopping community with deals not only limited to food, but to clothing, electronics, books, flowers, gifts, health & beauty — even office supplies.  Read more

CNN’s Quick and Easy Budget Pie Chart

I’ve said it plenty of times before, and I’ll reiterate it again: Americans have a serious lack of budgeting skills.  That’s why I was thrilled when On The Money put up a special budgeting calculator that breaks your monthly take-home income down into down into expense categories that are based on rule-of-thumb expense allocation. Read more

Quicken Online — Free Personal Finance Manager

Quicken — the guys behind some of the most popular finance tools in the home and workplace today — has finally learned from the Internet start-ups what the people want:  Free Personal Finance Management.  And they’ve launched Quicken Online to feed the starving masses.  Read more

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