A lot has been written in the media about the government’s stimulus plan, but what does it really mean to you, me and Jane public? The Dough Roller breaks it down in a very handy Economic Stimulus Package FAQ. 

If you’re carrying a balance on a credit card and paying high interest rates, you simply can’t afford not to read The Simple Dollar’s tips for getting your credit card interest rates reduced. 

Think you’re on track for retirement? Use Fabulously Broke in the City’s informative post to do a little check-up on your nest egg. 

Confession: I hate flying. And since I’m taking one of those dinky little planes to Phoenix today it’s not surprising Master Your Card’s post about what to do before you die caught my eye. I haven’t done some of these things yet, so keep your fingers crossed for my safe travels! 

And with that, I’ll leave you to a wonderful weekend! I won’t be posting again until early next week because I’m in Phoenix attending Angels’ spring training, but I’ll be sure to have a beer (or snowcone for PG-13 readers) for you to make up for it :-)

 
If you’ve ever gotten a computer virus, you know there are few things worse (well, other than a real virus). After bringing his computer back from the brink, My Money Blog shares info about the best free anti-virus and anti-spyware software.

Usually being upside down is fun (think monkey bars on the playground). Not so much when it involves the mortgage on your house. Budgets are Sexy turns his unfortunate situation into a helpful how-to for figuring out the value of your home…if you dare.

The birds, the bees and now a new topic to broach with the kiddos: the Benjamins. MSN Money’s Melinda Fulmer tells you what kids need to know about money in an easy step-by-step guide divided by age.

Ever wondered what would happen if you tried to screw over the IRS? My Two Dollars clears up the consequences in “What would happen if I don’t pay my taxes?” Actually, I’m wondering what the California government would do if someone sent them an I.O.U. in lieu of state taxes…will someone please do this for me, just for kicks and giggles? Any takers?

Have a great weekend!

If I’ve learned anything, though, it’s that you can’t rest on your laurels so below are my resolutions – some personal, some career and some financial and all in no particular order – for 2009:

*Workout at least 3 times per week: This was actually one of my resolutions last year and I’m proud to say I succeeded! Most of the time I actually worked out 4-5 times per week but having that minimum threshold kept me to my resolution so I’ve decided to do it again.
Deadline: ongoing

*Set up a CD ladder for my emergency fund: Okay I lied, I will bore you by talking about one of my accomplishments in 2008 – my $10,000 emergency fund. I didn’t have an emergency fund until last year and right now that money is sitting in a savings account making 2.75% 2.5% (darn ING lowered it again!). I’d love to maximize the return on this while still keeping the fund somewhat liquid but I need to do a little more research on CD laddering before I take the plunge.
Deadline: June 30, 2009

*Make a will: Now that I own a house and my net worth is getting up there, I really should have a will to ensure that my assets aren’t held up in the legal system should anything happen to me. I’ve put this off because 1) it’s kind-of morbid to think about being dead and 2) the cost to hire an attorney to make it legit…both of which are stupid reasons because the cost will be much higher to my parents – in both time and money – if I don’t do this.
Deadline: March 31, 2009

*Blog at least 4 times per week: Right now I’ve been averaging 6 posts per week but I know there will be some weeks that are busier than usual at work or life in general. I’m starting to write more posts in advance but even that is dependent on my schedule so I figure 4 times per week is a reasonable (and doable) goal.
Deadline: ongoing

*Be more social: I know, bad goal because it’s not specific or quantifiable, but I don’t really want to say I have to go out X times per week because that’s not what it’s really about. These last few months I’ve been so focused on saving money that I’ve sometimes turned down social invitations to the detriment of my relationships. I need to be a better friend and to learn to enjoy my time with them without feeling guilty that I’m spending money or that I could use that time to do something else “more productive.”
Deadline: ongoing

*Landscape my yard: My yard is fine as it is, but I’d love to add some flowers and more decorative accents to give it character. I have the money for this so it’s just a matter of getting the quotes, deciding on plants and flowers, researching contractors, hiring a company, setting the schedule…phew, already this is sounding exhausting so I’m giving myself the full year to accomplish this goal.
Deadline: December 31, 2009

*Reach 150 readers on my RSS feed: Honestly I have no idea if this would be considered a gimme or an aggressive goal since I’m so new to the blogging world. But at least it will give me something to work toward and will keep me motivated.
Deadline: December 31, 2009

*Read 6 financial books: I started becoming more interested in personal finance about six months ago when I read my first financial book ever, The Bogleheads Guide to Investing. Much to my surprise, it was an easy read and it taught me some of the things I was doing wrong or could do better.  I’d love to continue my learning, not just for personal purposes but also so that I can pass on some of the best tidbits to you!
Deadline: December 31, 2009

*Get over my ex-boyfriend: I kind-of hate using up one of my resolutions on him so I think I’ll re-label this one, “Don’t let/keep toxic people in my life.” He lied, I’m pretty sure he cheated and he was just an unfit boyfriend in general. I broke up with him, so why has this been so hard?
Deadline: As soon as possible

*Move to California: My entire family is in California and every time I visit it is that much harder to return to Texas. I miss my parents, my nieces and nephews, friends and just being in California in general. Texas has been wonderful to me but these past three years I’ve learned that my heart is wherever my family is…
Deadline: December 31, 2009 (although I reserve the right to move it back since this resolution is contingent on finding a job I like at least as much as I like my current job)

Summed up, I basically want to be a better daughter, sister, friend, girlfriend (hopefully!), saver, investor, homeowner, employee and blogger. Piece of cake, right? :-)

Sometimes I knew a lesson was being imparted and other times I didn’t know until reflecting on it much later, but regardless each has taught me something that I see at work in my current financial philosophy. So without further ado, below are the top 5 money lessons from my parents:

1. Budgeting and frugality – Right before my freshman year of high school, my mom announced that she was no longer going to randomly dole out money to my sister and me. Instead, she would give us $300 for new clothing, entertainment, eating out, etc. for the school year and we’d be responsible for pretty much all other expenses. At first, we were thrilled because the lump sum sounded so much more impressive than the $5 here or $10 there my mom used to hand out.

But I quickly learned that stretching that money throughout the year was not going to be as easy as expected. After buying one outfit at Wet Seal – including the mandatory matching socks, earrings and scrunchie – my stash of cash was not as large as I’d originally thought. My mom’s move not only taught me how to budget, it showed me the value of money because I was forced to take on extra babysitting jobs to pay for my ever-growing list of wants. Working for my money – rather than having it handed to me without effort – suddenly made that list of wants much shorter since I began to weigh whether I wanted something enough to work for it. 

The $300 rule also instilled in me a love for finding a bargain. It became a game of sorts, trying to stretch that money as far as possible by finding high-quality clothing or items at discounted prices. Although I don’t remember my first time shopping at TJ Maxx or Marshalls, I’m sure my love affair with these stores started around the same time my mom cut me off.

2. Money’s not always the most important thing – The summer before my senior year in high school, I found myself shunning babysitting for a more regular job since sporadic babysitting money barely covered my gas and the other things I found important as a teenager. My dad wanted me to look into an internship in journalism since I had expressed an interest in being a writer one day, but all the internships I found were unpaid and I was stubborn.

After I applied for a job at a fast food restaurant, my dad (probably out of desperation) told me he would pay me the same hourly wage if I secured an internship at the local newspaper. Other than that promise, he left it up to me. I had to apply and get the job myself, and luckily after a well-written, creative cover letter to the editor-in-chief, I was offered an internship at the newspaper. Each month, I reported my hours to my dad in memo format and he wrote me a “paycheck.”

Although some people might scoff at the idea of my dad paying me to work, it is because of that first internship that I secured my next internship (at a PR agency), one that was paid. Each subsequent job resulted in a new addition to my resume and a pay increase. As I saw the benefit of hard work and building on my experience, my ambition also increased and gave me the motivation to set new goals for myself.

Now that I’m not a money-hungry teenager, I look back and know without a doubt that – if I had to do it all over – I would take the non-paying internship over a minimum-wage job any day because I understand and appreciate that more experience parlays into better (and higher-paying) jobs in the future.

3. Making mistakes – Although it probably made them cringe, my parents always sat back and let me make my own financial missteps – and deal with the consequences – while growing up. From buying into the Agatha Christie book club because “I’d get five free books” (which ended up costing me $92 when all was said and done) to signing up for a variable annuity IRA because my financial advisor “friend” told me it was a great idea, they’ve let me make my own mistakes.

Although I hate having done these things, they’ve given me a healthy dose of cynicism and curiosity. Instead of taking things at face value, I now look into the true value and the fine print to see if it really works for my needs. I still make mistakes, but I always learn from them and use this knowledge to improve myself and my finances.

4. The power of interest – When I bought my house, my dad loaned me the money for the down payment with a 5-year repayment term. While he charged me interest, he also committed to forgiving half of the loan with the caveat that I had to pay that money to myself via an IRA or my 401k (also due in full in five years).

My dad’s loan arrangement resulted in two lessons. In addition to teaching me the importance of contributing to my retirement (and in the process, the magic of compounding interest) he showed me that something has a higher personal value if you have to work for it. My dad could easily have afforded to give me the down payment outright, but he knew I would have much more of a personal stake if I was required to spend my own hard-earned money. Because of this, I make sure I take care of my house because I’ve already invested so much of my own money and time into it.

5. Diversification – Instead of a new car or a trip around the world, my dad’s present for my college graduation was $2,000 to buy stock in whichever company (or companies) I wanted. To put it mildly, I was underwhelmed. I had always been content putting my money in a savings account and forgetting about it as it slooowwwly grew in value, and I didn’t have the knowledge or the interest in investing. Once I bought stock and saw how its value could rise, though, I wanted to know more. I’ve since read books, signed up for investing newsletters and taken a much more active role in my investing portfolio. Although I’ve also seen how stocks can fall over the years, I recently cashed in that first investment for a 100% profit.

I don’t have children now and quite frankly it is daunting to think that one day I will be responsible for instilling in my children so many important values, from money management to work ethics to personal accountability. I only hope I do half as good a job as my parents.

Hey, get your mind out of the gutter, reader…no matter how much I love saving I’ll never do that!

The selling myself was in the form of an out-of-state interview for a new job. Usually I enjoy the thrill of interviewing – and I think I’m pretty good at it – but for some reason everything felt off yesterday. Maybe it was the fact there was an “arctic storm” in southern California and it’s nearly impossible to look put together when your hair is stringy wet and your shoes are muddy, or maybe I was just tired from waking up so early. But I kept kicking myself mentally because words just weren’t coming together as I wanted them to and my mind seemed all jumbled.

Despite this, I still think they like me and their big struggle is with salary. I’m asking for a lot of money because of the difference in the cost of living and because I know this is my best opportunity to negotiate. Once I accept, they would have the upper hand since there aren’t a lot of jobs out there, especially in the niche I’m in.

So now it’s just a waiting game to see if I bungled the interview enough to make them rethink me as a top candidate. If I didn’t, the question is are they willing to meet me on salary and benefits? The good news is I think I’ll know sooner rather than later since they’re pretty anxious to get someone in this position.

As if yesterday wasn’t eventful enough, I also sold some stock at a loss to offset capital gains in 2008. The losses won’t cover all my capital gains but I was starting to get a little nervous about the stock anyway since it has lost a lot in value and a quick check on trading stats showed insiders have unloaded a lot of shares recently. When I bought it they were buying up shares hand over fist and not at option prices, so this was a big red flag for me. If I change my mind, I can always re-buy the stock in 30 days but for now I’m fine writing off the loss and sticking my money in safer investment vehicles.

Selling losing stocks to offset capital gains is just one way you can lower your taxes this year. Want more? Jim at Blueprint for Financial Prosperity had a great post earlier this month highlighting 10 year-end tax tips. Hurry, though, because you only have until Dec. 31 for most of these!