12/28 News Roundup

I've spent time contemplating the highs and lows of my 2008, and so have the professionals. Here are a few highlights from the big guys (and my fellow bloggers)while I'm out cashing in my gift cards and workin' on my fitness. Happy reading!

Kiplinger: 12 things to look forward to in 2009

US News and World Report: Eight ways to cut back without sacrificing

Wall Street Journal: Say good riddance to 2008

Bible Money Matters: 10 people all personal finance junkies must follow on Twitter

WiseBread: Plan for your wants

OK, I was planning to list a bunch more articles, but my computer is crapping out and my internet connection is slow. I've been writing for more than an hour and have had to restart my browser at least five times. So read those for now, I'll do some AdWare stuff and hopefully we'll be back up and running shortly. Arg.

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A Fond Farewell to A Crazy Year... 2008 in Review

Brilliant or flat broke, I think most people will be happy to say au revoir to 2008. Like a Peter Jackson movie, it feels like it’s taken for-eva to end, and I get the general sense that most people in my community are terribly worried about their own future and that of their loved ones. From high gas prices this summer to foreclosures, the credit crisis, mass layoffs and the stock market roller coaster this fall and winter, it’s been difficult to focus on anything but the negative.

However, at the beginning of this year, I pledged to focus on the positive, saying, “Tears do not become me.” So to round out 2008, it’s time to take a look at the good things that happened to me this year. And I think you should, too. It may have been a better year than you noticed.

Vacations galore. This year, to recharge my batteries, I went on my first ski trip, traveled to Houston with my mom, visited Elko, Nevada and camped in the Ruby Mountains, hiked and kayaked on the sparkling Puget Sound in Washington State in the San Juan Islands, checked out Park City and Salt Lake City, Utah, and took a fishing trip with my dad, brothers and uncles in UP Michigan. (Not to mention a staycation in November!) Amazing. And none were taken on credit -- they were all carefully planned for and budgeted far in advance. You don't need to stay at fancy resorts and high-priced hotels to experience the world. You just need a willingness to explore and step out of your comfort zone every once in a while. Cabins, tents and spare couches can take you just as far as any AmEx card.

A HUGE promotion. After more than seven years with my company, I earned a ginormous promotion to vice president this year. This was an important step for me in the industry and though it hasn't been an easy transition, I'm excited about my prospects for the future. Since I'm talking about my career, I'll also note that I attended a very cool women's leadership program at the Kellogg School of Management that was incredibly enriching and valuable. Even with promotions, it's important for me to continue learning at every step of my career.

The opportunity to give back. Soul nourishment isn't just about getting away from it all, giving back to the community helps a gal feel special, too. This year, I raised funds for the Chicago Police Department Memorial Foundation by participating in a run, where I raised $325 (my first fundraising run ever). I also donated $110 $210 to Chicago Children's Memorial Hospital, gave lots of gifts to family members I love, sponsored a free book giveaway on my blog and donated blood to LifeSource.

A first for me. I got a frickin' drivers' license this year! This was an even bigger deal for me than the promotion. Both me and my dad cried at the DMV (yep, we really did). I wish I had the picture he took with his cell phone to post here. It's hilarious.

Great publicity.. I had some truly wonderful exposure this year for the blog - including the CBS Evening News with Katie Couric and US News and World Report. If I were my client right now, I'd be so jazzed.

Marvelous money. I managed to make all my finance goals this year, those being:
- Got my down payment account to $30,000
- Got my student loans down to $2,500
- Increased my 401k contribution to 10% (and kept it there)
- Did not take on any additional debt

Healthy, happy... My parents, though both had recent surgeries, and my brothers are healthy. B's family is healthy. B made it through his surgery and is getting healthy. And that equals one happy me.

Wow, I've had so many bright spots this year that I can't believe how much I've focused on the negative and neurotic. True, it wasn't all highs - the PR industry's instability affected my job and my career mindset, B was laid off, my 401k tanked, I was sick often and couldn't do much to keep myself in shape and there were most definitely some relationship issues early in the year... but ultimately, I think I've really let the headlines get to me. In fact, before I started writing this, I was sitting around my apartment feeling stuck in slow motion about my life and my future. Hard to believe when I see how far I've come in 12 months.

When I look back on 2008, I hope I'll remember the positive and not the negative, be thankful for the amazing people who touched my life and forever remember the experiences I afforded myself (how's that for a high-school yearbook signature?).

How 'bout you? What positive things happened this year that you may have missed in looking back on 2008? Read more!

What Makes a Budgeting Babe?

As I've been thinking more about the mission of my site, and about my readers and my friends, I though I'd take a moment to define what a Budgeting Babe is and what we stand for. Sure, the name might seem kinda fluffy and the site is pretty in pink, but there's definitely a deeper mission underneath: to help women better understand their own finances and spending patterns, and learn how to increase their net worth.

So let's talk for a minute about what it means to be a Budgeting Babe. I asked this question in September during my first-ever giveaway and got some amazing responses. But until now, I've never really spent the time to come up with a list of characteristics (other than those that described myself in 2006 -- one of my favorite posts). So tonight, as winter snow blankets the Chicago area and I have a few seconds for some quiet introspection while curled up on my couch, it's the perfect time to contemplate some of the attitudes and attributes that may describe parts of Team Budgeting Babe. Here's my attempt. Not all of these will apply to you, but some of them may be universal...

-- Until recently for some of us, a few years ago for others, spending money was far more important than saving it. If you asked us what our 401k looked like, we'd probably laugh and say something like, "I don't even know what that is!" Then we'd secretly fret that we were falling seriously behind, but rationalize it by saying we don't make enough to save anything. (Insert pouty face here.)

-- Now, contrary to our initial spendy ways, we're focused on making our savings goals.

-- We're career women (or trying to be); our jobs are part of what defines us, and we're OK with that. Nope, more than OK... we really like it. (But sometimes we wish we worked a few less hours.)

-- But we also like to have fun, live in the moment and enjoy life to its fullest. That doesn't mean going out like Lindsey Lohan every night, but it does mean a full social calendar - from nights out with the girls to family gatherings to volunteer work to just plain ol' galavanting around.

-- We're travelers, because nothing makes you really appreciate what you have until you see how everyone else lives. And because after all that work and serious social activity, a girl's gotta unwind sometimes.

-- Having nice things is far less important than living each day for the experience.

-- We don't spend more than we make (anymore) and don't use credit for frivolous purchases (anymore).

-- We read, we watch movies, we see shows, we love music and we totally get the online world.

-- US Weekly may not be required reading, but gosh is it fun after browsing depressing financial news on NYTimes.com or WallStreetJournalOnline.com.

-- We're workin' on our fitness... Health and well-being are top priorities for us. (And yet, why is there never enough time to make it to the gym during the week?)

-- Though we really want to learn about our finances, sometimes financial books can be pretty intimidating and frankly kind of boring. Still we try to slog through PF literature.

-- We're OK talking openly about our finances, and we wish our best ladyfriends were, too.

-- We're total suckers for sales.

-- We're still (groan) paying off student loans.

-- But we avoid going into major debt.

-- We may not have the best apartment/home/condo on the block, but we don't spend much time in it anyway.

-- Buyers remorse? Not quite sure if that describes the feeling of running back to the store to return what was destined to be your "new favorite thing" less than 24 hours after you bought it.

-- We're learning to speak our minds and share our knowledge.
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Did you read this? "Tightwad Ethics"

Did you guys see this article last week in BusinessWeek?

The Ethics of Being a Tightwad
Amid the economic slump, don't feel bad about putting saving ahead of spending. In fact, it's unethical to squander money you can't afford to spend

I'm thankful for the post. Although I'd love to allow myself to spend more under the guise of "doing it for my country," I know it's not the best for my wallet, which is ultimately what's best for the people I love and potentially will want to take care of in the future.

I never thought "ethical dilemma" would apply to anything I write about on the site, but interestingly, this article takes a scholarly look at an issue a lot of you may be thinking about. Take a read and let me know what you think.
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Tips for Caring for Your Pet when Your Wallet's Skinnier than your Skinny Jeans

Those of you who read The Budgeting Babe regularly know I have a particularly soft spot for los animales. I have a fabulouso turtle named Betsey and a saucy diabetic cat named Nala, both who are total handfuls yet completely worth it. (OK, it helps that B is a superhero when it comes to pet care.)

So I was saddened, but not entirely surprised, to receive an e-mail with this lead:

"With economic pressures on the rise, consumers are looking for ways to tighten their belts while maintaining the best level of care they can for their pets. In the midst of the downturn, veterinarians around the country have observed a decline in visits and spending for recommended procedures."

Luckily, the team at Merck/Merial have come up with a few tips to help pet owners get through tough times:

1. Be a Grooming DIYer: You might think clipping Miss Fancy's toenails is as fun as a bad hair day, but grooming is really important in maintaining your pet's health and condition. And, according to our friends at Merck/Merial, it's a skill anyone can perform with practice.

An added bonus for taking an active role in your pet's grooming is that you can identify problems early (e.g., bumps, lumps, changes in coat quality, etc.) that a groomer may not think to tell you about. Doing the grooming yourself can save as much as $400 to $1,000 per year, but to avoid a costly mistake be sure to use products, such as shampoos, that are designed for pets and not people. (Me: cleaning, clipping and combing are easy to do. Why not?)

2. Bulk Up: Resist the urge to buy pet food, heartworm and other preventatives in smaller quantities to cut immediate costs at the cash register. The reality is, as long as you're mindful of expiration dates, buying in bulk is generally cheaper. (I need to check this one out. Wellness brand cat food is not cheap.)

3. Don't Wait to Vaccinate or Medicate: Making sure your pet is current on recommended vaccinations will save you a bundle in the long run because you'll help ward off preventable diseases. Vaccinations such as one that prevents rabies, for example, are particularly critical and may save your animal's life. Similarly, routine medications such as heartworm preventives should be given every month. Skipping doses can be expensive, as treating heartworm costs as much as $800 - $1,000 (yikes!). In addition, treating the disease is risky and can be painful for your pet.

4. Spay and Save: For the average pet owner, spaying or neutering is a must. If you have a limited income, you may be able to save by taking advantage of low-cost clinics for these services. Keep in mind that spaying or neutering your pet can prevent the immediate expense of new pets in your family and the societal expense of unwanted pets being turned in to shelters. It also reduces the occurrence of some common diseases, such as breast cancer in pets.

5. An Ounce of Prevention: Prevent an unplanned, emergency vet visit this holiday by doing your part around the house. Many items that are a routine part of holiday celebrations could be toxic or harmful to your pet. Examples include:
-- Mistletoe and even poinsettia, while beautiful, are highly toxic to dogs and cats
-- Chocolate and macadamia nuts are toxic as well, and yeast-based bread dough can actually be fatal to your pet as it causes intestinal bloat
-- Tinsel, if swallowed by a curious kitten or puppy, might cause intestinal blockage
Consult The Merck/Merial Manual for Pet Health for more in-depth guidance.

6. Brush Up: Proper dental care is an often-neglected component of the pet health regimen. Regular use of an inexpensive toothbrush and toothpaste designed for pets can delay or avoid a professional cleaning costing several hundred dollars. You also can purchase pet food designed to help eliminate tartar. (I buy tarter-preventing treats...yum!)
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My friends at Merck/Merial note that more tips are available in their book, "The Merck/Merial Manual for Pet Health," written with tips from more than 200 veterinarians. You can buy it for $15 at www.merckbooks.com and wherever books are sold.

Thanks for the info! What tips do you guys have for caring for pets on a budget? I would add to the above that spending time with your pets can keep them healthier and happier, and might actually stop you from spending all your time shopping.





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My New Favorite Word

It's Recessionista.

So cute, right? Thanks to WhoWhatWearDaily for coining the term. Read about it here.

(No more to read on this one.) >>

:) Read more!

When It's OK to Spend a Little

When I was growing up, the best thing my mom could say to me was, “Sometimes it’s OK to spend a little on yourself.” This was usually said during one of her marathon weekend shopping trips. As a mother of four young, rowdy kids, her weekends usually consisted of frenetic trips to the grocery store for carloads of food, and trips to JCPenney, Kohl’s and anywhere in the mall with a sale where she power-walked her way to pick up clothes for our family’s ever-heightening inseams (“Come on! You guys walk so slow! The store’s gonna close and we’ll miss the sale. RUN!).

You can imagine how tight her budget was. Though my dad always worked multiple jobs to support the family, his paychecks were always stretched to the max to support our needs. That’s why it was always such an indulgence when we were allowed a little something extra, like a Seventeen Magazine, during the course of the weekly shopping trips.

As I got older, mom and I continued shopping together on the weekends. As an intern, earning $10 an hour and living with my parents (and all my brothers) after I graduated, these shopping trips were downright depressing for me. Frazzled by long hours and demanding accounts, I went along for the escapism, but bought only necessities and stuck to my budget. This meant forgoing all the great deals on shoes, clothes and sparkly things I felt I was entitled to as a full-time worker in the “real world.” But every once in a while, as I looked wistfully at a new lipstick or fragrance, my mom would say, “Oh, go ahead. You have to spend a little on yourself every once in a while or you’ll go crazy.”

And despite my shtick about keeping to a budget and the importance of saving, it’s a philosophy I adhere to today.

I was thinking about this “spend a little on yourself” idea as I browsed my staycation spending post. In today’s economy, it seems strange – and almost selfish – to splurge on things like spa days and nights out. But walking home last night, it occurred to me that even in a recession, there are certain circumstances where it’s OK to spend and not feel bad. In fact, sometimes it’s even necessary. Here’s my list of top situations during this messed up, down economy holiday season when it’s OK to spend.

Prerequisite: You have a job, a savings cushion, your finances are in order and you’re not using credit to buy. All the other suggestions are based on this prerequisite. If you don’t maintain all of the above, sorry, you gotta hold off for a while on the spendiness.code>

1. Your look/grooming. Sure we’re all scared of the economy. But that does not make it OK to forgo personal grooming habits for those of us who deal with clients or customers on the job. If you’re holding onto your job, show your bosses you take it seriously by always putting your best foot forward. This means you may have to spend a bit on haircuts, makeup, nail polish and styling products. You may also have to keep your clothing current. I’m not saying you need to go overboard, but if clothing is faded, torn or you got it in the 90’s, it’s OK to update your wardrobe to be more sophisticated. You get paid a salary, and part of that salary, if you can swing it, should go into maintaining your appearance if you deal with clients or customers.
2. Your kids. Even if there’s doom and gloom everywhere in the papers this holiday season, give them just as special a holiday as any other, whether that means decking the halls and stringing popcorn or just enjoying the snow. It’s OK to spend a little on the little ones. Even if it’s just a Seventeen magazine, a little goes a long way.
3. Technology upgrades (within reason). Why is it OK to upgrade your technology? Because it keeps you current and connected. Let’s say your computer breaks down and you don’t fix it and then you lose your job. Where will you update your resume and job hunt? The library is a natural answer, but you’re limited to what software your library has and the library’s hours. And then when you do have a job interview, you’ll need to be able to research the company, the industry and important relevant news, all which can be challenging with no Internet.
4. Winter clothes. If you need a new coat, boots, under layers, hat, scarf, etc. this winter to stay warm, buy it. You’ll probably get a good deal, too.
5. Your health. Don’t scrimp on your health. This includes preventative measures, like a gym membership, as well as “health management” of problems. If you have a bad back, go see a doctor. If you need medicine, get it filled. Educate yourself on how to feel better and then do it. You’re not the only one counting on your health, after all.
6. Travel. If you’ve been saving up for a trip, don’t cancel it. You may end up going somewhere cheaper, but at least go somewhere. Not everyone will agree with this, but to me travel – exploring new cultures and destinations – is as important as any of the above. Travel helps broaden perspectives, it results in shared knowledge and sometimes even helps us to understand just how good we really have it. It’s nurturing for the soul and gives us an overall feeling of renewal (if done right). So keep your big trip. You may need to rely on those memories someday.

I’m sure I can think of more, but I’ve got to go visit my dad (he just got done with surgery) and then we’re off to B’s nieces’ birthday party. Let me know if you agree or disagree with the above, and have a warm and happy weekend.
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All I Want For Christmas...My Charity List and Christmas List

My brother and I were talking the other day about our Christmas plans, and discussing what we really need vs. what we want. I really need a new camera and computer (both are on their last leg) and he really needs tools for his house. Unfortunately these are pretty big-ticket items and given that both B (my boyfriend) and my brother's wife are out of work, we decided to give gift certificates to each other to help out with the payment. But then we realized that we would just be giving each other gift certificates with the same amount of money in them, which seems a little odd.

So we decided to give each other just Christmas cards, no gift certificates, and save the trouble of shopping for each other. This will be hard, but I think I'm going to draw him a card or create it with photography somehow to make it special and meaningful. And I'm OK with that.

The truth is, for in the last few years, I've been tired of filling my Christmas list with little stuff that I don't need that will just take up space in my apartment. In the past, I've tried the "Make a donation to this charity in my name," request, but I always get the "Oh, that's not fun" response. It sounds selfish, but I think people naturally want to indulge in the gift-giving process -- it says something about the giver and serves as a relationship builder to let the recipient know you're thinking about them by picking out just the right gift.

But if you're self-sufficient, it's a little awkward to create a Christmas list at the request of your family. You see, I'm able to spend money on myself to get the experiences and things I really want during the year. When it comes to the holidays, I always feel strange asking for gifts I don't need, when, for instance, I know that my younger brothers and some of my cousins in school or with kids really need a lot.

So this year, I'm going to create an extremely small wish list... gift certificates to Best Buy to supplement the computer and camera. That's it. And I'm going to give the charity request another go around...

The charities I will probably request donations be made to this Christmas are:

Children's Memorial Hospital (Chicago)
The Chicago Food Depository

And to start the trend, I am gonna go out on a limb this year and make donations in my co-workers' and families' names to those charities, and to It's Hip To Have Heart, my cousin's wife's foundation.

(As some of you know, during the year, I also donate to the Chicago Police Memorial Foundation, still a fantastic and worthwhile organization.)

Gifts are great, but this year, I'm lucky enough to have everything I need. Read more!