Area Extras
Money on the mind
Posted by: Meg Thilmony
Wednesday, February 20, 2008 1:46 PM
One of the first topics Gov. Rod Blagojevich tackled in his State of the State address today was the economy."Today, as we focus on what I believe we must do to strengthen the economy, we must never lose sight of the fact that it is all about families and our ability to help them build a better, more secure life," Blagojevich said.
While things have gotten pretty messy lately in the state government, I think the governor nailed this one. Money is an emotional issue - for families, for singles, for almost every adult I know. And with the threat of a recession hanging over our heads, it's an issue people seem to be talking and writing about a lot lately.
And while family finance is important for many, I went hunting for resources for people like me - young, single people who are more worried about paying off their own degrees than how to save for an eventual child's college.
I found some pretty good advice along the way. Here's some:
"Newly-minted adults tend to overestimate how far their paychecks will go and blow too much on apartments, cars, wardrobes, eating out and all the other trappings of grown-up life," wrote Liz Pulliam Weston over at MSN Money. "A smarter approach: keep living like a broke college student for a few more years. You'll get a better handle on what you can really afford and be able to free up more money for real adult goals, like retirement and health insurance."
That's not what many young people want to hear, but maybe that's necessary when it comes to money. Weston also gave some scary statistics in her story, including the fact that one out of four families headed by people between ages 20 to 29 owe more money than the value of the things they own, and their median net worth is $7,901. That doesn't speak well for my generation.
But G.E. Miller of 20somethingfinance.com believes that there's no uniform way to ensure 20-somethings get their financial stuff together.
"What I have learned is that there is no glass slipper for everyone when it comes to financial planning. Circumstances change, people change," G.E. Miller, who's devoted an entire blog to compiling information for 20-somethings hoping to get a rein on personal finance. He suggests readers think carefully about how changing careers, marriage, divorce, children and even medical emergencies will affect their finance.
Luckily, he has a few simple solutions for making it through these events.
"Real Simple" magazine has some tools to help anyone - not just young people - figure out how to get his or her finances together. The March 2008 issue had an extensive section about money and the worries associated with it. The magazine's Web site has plenty of interactive tools to help readers out, including tips for finding free stuff (who doesn't love that?) and worksheets for recording your spending.
When you figure out where your money is going, financial journalist Barbara Whelehan suggests you re-route some of that into your retirement fund. For young people, time is on our side, she says.
"Believe it or not, if you're lucky, one day you'll find you are older, so it's best to be prepared. Setting up automatic contributions to either one of these retirement vehicles at a young age will help you build wealth painlessly," Whelehan suggested in one of many financial tips.
And continuing in the trend of giving straight-talk to young people struggling with finance, The New York Times' Damon Darlin has written a couple of columns touting advice he claims college graduates don't want to hear. His second edition included some valuable information and calculations about spending.
He came up with a list of pretty good suggestions for young people. I'll leave you with his thoughts:
- Never pay a real estate agent a 6 percent commission.
- Buy used things, except maybe used tires.
- Get on the do-not-call list and other do-not-solicit lists so you can't be tempted.
- Watch infomercials for their entertainment value only.
- Know what your credit reports say, but don't pay for that knowledge: go to www.annualcreditreport.com to get them.
- Consolidate your cable, phone and Internet service to get the best deal.
- Resist the lunacy of buying premium products like $2,000-a-pound chocolates.
- Lose weight. Carrying extra pounds costs tens of thousands of dollars over a lifetime.
- Do not use your home as a piggy bank if home prices are flat or going down or if interest rates are rising.
- Enroll in a 401(k) at work immediately.
- Postpone buying high-tech products like PCs, digital cameras and high-definition TVs for as long as possible. And then buy after the selling season or buy older technology just as a new technology comes along.
- And, I'm sorry, I'm really serious about this last one: make your own coffee.
Comments
At my age I still do a good job of living like a broke college student.
Posted by interestedreader on February 20, 2008 at 1:57 PM
I am thoroughly appalled at what people are spending on bottled water. I think it is an out-and-out ripoff!
I moved to Tulsa last year because my father was ill, but since he is now back in illinois, his ashes buried in Carthage, I plan to move back to Illinois this summer. I miss the people in C-U a lot.
I see things worse in Tulsa, the traffic, the sales taxes, the poor mass transit system
The bottled water situation is appalling here as much as it is in C-U. I see many empty bottles littering the roadsides. But I was shocked when I saw the driver of a car pour out half a bottle of water from car window, while waiting for a traffic light. Then I found an unopened bottle in the trash can at a car wash. Iwas looking for discarded Coca Cola bottles to collect points for the premium offers. I don't find nearly as many as in C-U, because they don't take caps on recycled bottles, nor the kind of cardboard in cartons.
That bottled water costs several times as much as an equal volume of gasoline.
Most of the students don't realize that. It adds up as much as a cigarette habit.
I did spend the equivalent of a pack per day habit on Krnnert Center tickets during the 2006-2007 season. I don't go to as many perfornmances in Tulsa. It is a hassle to get there, as strets are torn up downtown to build a new BOK center. And such is funded through sales tax and we must pay 8.517$ even on food! Ouch!
Oklahoma has a high excise tax and license fees on new vehicles, so I am trying to keep my old 1997 Toyota RAV4 running until I get back to Illinois.
I am trying to keep credit card bills current. I haven't paid any interest on one since June, 2005. I got a bill for 98 cents in July, for interest accrued during time final payment was in mail. I found that in cans after July 4 parade. I now pay bills online so can pay almost instantaneously.
I still do shoot color slide films and that is a substantial expenditure. I have to buy film and processing mailers on ebay, as the camera stores no longer carry them. But I refuse to go digital until film is extinct altogether. I do get PhotoCd's o print film for family pictures for ease in reprints and sharing.
I do have to drive several miles to church and sister's and there is little or no bus service to that part of town.
I will try not to drive in Cmpustown any more than I ha to, once I get back to C-U. Iwould like to see tolls levied or "even-odd" days to cut traffic in that area.
I was appalled at the many things the students throw in the trash, that could still be used.
I admitting squandering some of my father's money on films, concerts, CD's etc, but now that is dwindling, I can no longer afford to do
Housing is cheaper he in Tulsa, but I miss the people and Krannert too much not to want to go back to C-U. I wpould ahve voted forUrbana park District tax referendum, hadI still been in C-U.
I would have to give up about eight rolls of slide film per year to cover tax increase.
These students need to be less waseful. Bottled water wastes petroleum resources in manufacture and shipment of bottles, and way too many are ending up landfills.
Like making coffee at home, that is a very first step to save money. I want a total boycott of bottled water. I am trying to cut down on soda and can't buy any more during Lent.
I am still disgusted with Illinois for levying soda pop tax to fund the 1992 Chicago World's Fir that was cancelled, but we have paid the tax ever since. If the tax were dedicated to health concerns, then I would be in favor.
Posted by Urpetybana on February 20, 2008 at 3:31 PM
In response to the last message. *blink* *blink* *blink* ??????????
That is all.
Posted by Warriors0607 on February 21, 2008 at 11:15 AM
Yeah, it might seem a little over the top, but once you do a little research on bottled water...
Posted by dw on February 21, 2008 at 4:37 PM
The new book by that Mad Money guy Jim (Cramer?) seems like terrific advice for young people trying to manage their finances. Very practical advice.
I might add that shopping the classified ads is the only way to go for virtually anything you want to buy. It's unbelievable what you can find if you're patient. (no bottled water though)
Posted by ChampaignSadie on February 28, 2008 at 9:35 PM
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