personal finance

13 ways to prepare for income reduction.

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budget © by 401(K) 2012

A reader suggested an article on preparing for income reduction. Not layoff or job loss, but rather a partial loss of expected funds – salary reduction, an end to child support and the like.

“Where you still have a job, but really need to evaluate the ‘new budget’,” she says.

I’ve written on this subject before, calling it the “financial fire drill.” You figure out how little you can get away with spending – and you do it with an attitude of calm preparation, not fear of deprivation.

This baker’s dozen of tips will get you started.

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5 ways saving for retirement is like a marathon.

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Paula Radcliff © by eviltomthai

Recently ING Direct did a survey asking about saving for retirement vs. training for a marathon. (The company sponsors the New York City Marathon.)

More than half the respondents think retirement is harder. I disagree, mostly because I do not choose to run.

Actually, I hate running. Walking is fine. Walking fast is OK. I even plan to learn cross-country skiing when enough snow falls to permit it. (Which could happen any minute: The sky is fluffy and gray and the temperature is inching into the high 20s.)

I’ve automated my retirement, living carefully so that I can save as much as possible. My work history does include an 18-year stretch of full-time employment, but I’ve spent about 14 years working only part-time (and earning very little indeed during five of those years).

But frugal living is a lot easier for me than running. I just don’t have the inclination. The only way I could ensure that I would run for health would be to hire someone to chase me.

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Think your money questions are dumb?

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Well, they’re not. Or so says my MSN Money colleague Liz Weston, aka the most widely read financial columnist on the Internet. Her latest book, “There Are No Dumb Questions About Money,” is this week’s giveaway.

Liz bases her text on real questions people have asked. In other words, this is information that people like you and I can use.

As a writer she is direct but also compassionate. While she understands how people can get into money trouble, she also is clear that the best person to help you usually is you.

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Are dimes the new pennies?

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2005 Pennies © by Mat_the_W

To prepare for my current column at Get Rich Slowly, “25 ways to give (without breaking the bank),” I counted my found money collection. From last December through yesterday, I’ve picked up $13.24 in singles and coins.

Here’s the surprising part: $5.60 of that amount was in dimes. As many as 56 people didn’t bother picking up the 10-cent pieces they dropped. I routinely see dimes in those “need a penny, take a penny” cups at cash registers, too.

Maybe some shoppers added the dimes by mistake, and maybe those who dropped coins didn’t always realize it.

Maybe they just didn’t consider it a big deal — or maybe they were too embarrassed to pick the money back up.

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Why I have life insurance.

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insurance © by Alan Cleaver

(This post is part of the “Life Insurance Movement,” created by Jeff Rose of Good Financial Cents. Just as with his “Roth IRA Movement,” more than 100 PF bloggers committed to write about a single issue on the same day to raise awareness.)

About six years ago I was a midlife college student and in debt after a divorce that had dragged on for two years. During that time I’d been helping my daughter as much as I could as she waited for her disability claim to be approved. (That took two years as well.)

After the divorce I figured to finish my degree on $12,084 per year – a mix of short-term alimony and leftovers from scholarships and grants. I was also determined to keep helping my daughter, since her disability payment covered rent and utilities but not much else.

One evening I had the radio on while I studied. An insurance commercial came on, one that I’d heard before. This time, it clicked: What would happen to Abby if I got hit by a bus tomorrow? I have no savings to leave her.

 

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The financial foot rub.

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Beth

Things got a little hectic during my New York trip last week. Too much to do, poor air quality, my inability to score at the lottery for “The Book of Mormon” tickets, heat and humidity, dueling deadlines and general exhaustion laid me low on Thursday evening.

(How many times do you get to use word “Mormon” and “lottery” in the same sentence? Not enough, if you ask me.)

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Crunch time at the PF Olympics (aka, “I need your help once more”).

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Pic: Political parties

Thanks to the support of friends, readers and business associates I made it into the finals of the PF Olympics. Each of the finalists were given the same topic to write for the final judging:

“Which golden rule of personal finance have you abandoned since the recession, and why?”

For some reason I thought these would be judged by a panel of experts. I was wrong. Once more, it’s Internet voting. Argh. And once more, I’m asking for your help.

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Declaring my freedom.

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Fireworks © by bayasaa

On Wednesday I read “A message of freedom” over at DailyWorth. It pointed out that “happy Independence Day” could also be read as “happy freedom day,” i.e., the freedom to live the way you want if you take responsibility for your finances.

“Happy freedom to dream differently, choose carefully and slow down a little right now day,” wrote site founder and CEO Amanda Steinberg.

“Declare it. What is your freedom?”

Steinberg’s statement jibed pretty well with what I’ve been mulling over for the past few days: Frugality made me independent and it keeps me that way.

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