First, if it’s just a stray thought, I jot it down. I put that jotting in a place that I know I’ll look at later, then I return to the task at hand as quickly as possible. Usually, I don’t break my concentration.

Second, if it’s a minor interruption (like a phone call), I delay. I tell the person calling that it’s a bad time at the moment and that I’ll call them back in an hour. I then jot down a note about this and get back to my work.

Finally, if it’s a major interruption, I tell the interrupter to hold for a moment while I record as much of my train of thought as I can. I’ll finish a rough outline of the post I was working on, or save an email draft with notes on the additional things I wish to say. This way, it’s easier to pick up right where I left off.

When I was in outplacement services, I belonged to a Job Search Work Team.  There are also networking groups out there that may be offer similar work teams to join.  Another option is perhaps a good friend that will both encourage and not judge.

When planning your week, you should keep track of the number of hours you actually performed on your job search.  Add up the hours you spent on Networking, applying for jobs, time spent with recruiters, your interviewing time(including phone interviews), and your time spent on education.  If this number exceeds what you originally planned for the week, please reward yourself!!  You did an awesome job this week.  If the number is very close to what you planned, then give yourself a pat on the back, and keep up the good work.

For those who fall short, or very far short, take a step back and try to figure out what that hurdle was, and try to remove that hurdle.  Some hurdles, such as death, hospital injury, natural disaster, are very understandable, and easily corrected.  Procrastination, discomfort with networking, and depression require special intervention to get you back on the right path.

In addition to being honest, positive, and trying to answer questions in a way that make you look more attractive, you also must remember to answer the question.  While we are all told to answer that infamous “what’s your weakness” question with a very minor positive, that might not cut it today.  It is an employer’s market, which means we do not want to give any reason to not be hired.

The new suggestion I’ve been told to use is to give a real weakness, maybe something minor from a previous performance review for example, and show demonstrate what you are doing to improve this weakness.  A good example someone might have is “not comfortable speaking in front of large groups; however, I have joined Toastmasters to help me become more comfortable”.  This is perfect for our behavioral interviews:  Identified the weakness and the corrective action.

Now in everyday life, when we give an answer, people don’t have to like it.  While that is true in interviewing, the person who is conducting the interview is looking for something real, so make sure you help yourself out by giving an answer to the question.

Here are the things to consider if you are considering paying your taxes with your credit card:

1. Processing Fee: This is the big one.  If you pay your taxes with a credit card, the agency taking the payment is accessing you a processing fee.  This primarily passes along the fees the agency gets accessed in accepting your credit card payment.  This is the single deciding factor.
2. 0% Interest card: While these are rarer these days, they still exist.   Unless your 0% card lets you carry a balance, you still must pay that processing fee for using this card.  You would need to float this tax charge on your credit card several months to break even on that convenience fee you just paid.
3. Carrying a balance: If you are not paying your balance in full each month, you are incurring interest charges for that tax payment… from the moment you charged it in most cases.  The IRS offers much more reasonable payment and interest rates than your credit card does.  CALL THEM.
4. You pay your cards in full each month: Good for you!!  But if you are already doing that, it doesn’t make sense to pay a fee to pay your taxes.  Plan to have the money available, and write the IRS a check (or send directly from your bill pay feature in your checking account).
5. Program Points : This is probably the only reason I would accept, if: 1) you have a 0% card, 2) you can pay your taxes to your credit card whenever you wanted, 3) the processing fee costs less than what it would cost you to buy the points directly.  This scenario is possible, but not likely in most cases.

So, the news got this one right, and in a big way.  That nasty processing fee, which isn’t cheap, is why not to charge your taxes.  You’ve got 2 months before the taxes are due to be paid.  If you haven’t already planned, start now.  Save yourself some money.

by Jmore from Scribbles n Scrawls

A friend of mine said to me a couple days ago, “You always have a plan… something I’ve always admired.” Of course, it made me think. If it didn’t, then there’d be no blog discussion of it, duh!!

I’ve always been a planner. It’s my Virgo nature (I hold firmly to the fact that I am a Virgo, not a Leo as the “new” astrology theory dictates) to be neurotically meticulous and organized. I plan my days, I plan my meals, I plan my workouts, I plan my vacation, I plan my finances, and I managed to learn how to build in some ‘wiggle room’ for spontaneity. At least I used to. And endured a lot less stress because plans allow me to set goals. Goals allow me to get things done that I need to get done, and they allow me to obtain things I want to have. I do well with structure that I create for myself. Plans allow me to relax and enjoy my life.

Somewhere over the past couple years I let people convince me I was too rigid, too strict, needed to ‘loosen up’ and learn to ‘play it by ear’, ‘live one day at a time’ and the one I hear the most is ‘you need to learn to live in the moment’.

Talk about a recipe for disaster. At least for someone like me. Following these cliches, while again trying to convince myself that my need for structure was a character flaw, went totally against my personal nature.

When I don’t know what’s in my bank accounts day to day, when I don’t know my credit limits, what I’m going to have for lunch, what my options are for dinner, when my workout is going to be, what I’m up to for my post-work entertainment, I feel out of control, I feel like I’m at the mercy of someone else’s whims and typically, that’s what happens and I end up resentful.

What else happens when I don’t plan? Blogs that once had a nice following fade away and never get written. Comic strips that were mostly daily and had a following get pushed back and pushed back and eventually stop and fans get bored and move on, probably never to return. Who follows a flaky writer? That may have worked okay for writers who bang out a novel every 1-2 years, there’s room for flakeage, but now… yea, not so much.

My bigger dreams get left in the dust, too. Like finishing the story that First Insight introduces. Like continuing with Convergence, a story that brought in readers and fans I never thought I would appeal to. Getting those things completed and published. Things I love to do, know I will succeed at, all fall to the wayside because I’ve been trying to ‘live in the moment’ and instead of scheduling writing time and keeping up my productive, creative habits, I ‘play it by ear’ and get nothing done.

I won’t even talk about what this has done with my workouts. Or my diet. Or (for now) what the weight regain and lack of motivation has done for my sense of self-worth. I’m sure that will come up when it needs to and a blog will be there about it. My plans and goals motivate me. Without them, I’m a listless piece of couch potato poo.

A few weeks ago I decided enough is enough. I can’t live that ‘in the moment’ mindset. I started with my debts and finances. Now, in less than a month, though things aren’t ideal for my liking or comfort, huge strides have been made to take care of things. My comic book is going to be released soon as a downloadable ebook (by end of Februrary) and I want to have a bound and print version of it on Amazon etc by the end of March. I also want to get my comic strip up and running again and there are discussions of musical collaborations and podcasts with other creators. None of that gets done without plans, goals, and time management.

Retirement is not a birthright.  It is what you plan it to be.  The average life for males currently is 82; females: 87 (in the US).  What this means is the average American will live for 17-22 years (assuming they retire at age 65).  Assuming Social Security remains unchanged (meaning it neither runs out or get reduced), the average American can count on about 1/3 of their current income, leaving 2/3rds to be made up some how.  Where’s your’s coming from?

Now, your average person has a job.  They are trading time for money, and if they don’t work that day, they don’t make money.  Many individuals  also have a 401K or equivalent.  This money is conveniently taken from our paychecks and managed for us.  If you loose your job, you may loose some of the income that was going towards your retirement fund… thus both of these forms of income have been impacted by the same event.

I am also aware of a number of individuals who play the lottery and are hoping that will be their retirement plan.  Really?  That says “I don’t have a retirement plan, and I’m not going to get one.”  This is a huge, scary problem, and it is bigger than any of us realize.  Add in an aging baby boomers population who is driving the need for an expansion of the health care industry, and is expecting to cash in on the entitlement programs they have paid into, I am nervous about the what the future holds for America.  Food for thought.

Anyway,  let’s return to planning for retirement.  Outside of a mortgage and a student loan, you should be debt free before making contributions to your retirement plan.  Why?

• Interest: The interest rate you are paying on your car loan, second mortgage, or credit cards is likely higher than what you are making in your 401K account.  Even if that is not true for your specific situation, you are paying to borrow money to put in your retirement account, which is not a good idea.
• Tax deduction: Mortgage and many student loan interest payments do qualify as deductions for those who itemize on their tax returns.   This means the interest you paid is not considered as income, and therefore, the money you are putting in your 401K is not costing you money.
• Cash Flow: People who get their income from the E quadrant (which is a huge majority of the world’s employable population), are underpaid.  This means we have a small pool of money to spend, which means we have a small pool of money to devote towards a savings account or a retirement account.

Let’s look at an example of a conservatively healthy budget:

• 35% Gross Income: Housing (including electric, heating, water, sewer, condo association, and taxes)
• 20% Gross Income: Income Taxes
• 10% Gross Income: Retirement
• 10% Gross Income: Savings
• 25% Gross Income: What’s Left

What’s left goes very fast when you have a car payment, putting gas in your car or SUV, Smart phone bill, cable or satellite television, and are giving money to charity (or your church).  You have to EAT out of this money, too!!  Fortunately the person in this example has no debt.  Zero.  Nada.  So if this person makes $50,000 a year, and chooses to follow this budget:

• $17,500 for housing ($1,450/month)
• $10,000 for taxes ($835/month)
• $5,000 for Savings ($415/month)
• $5,000 for Retirement ($415/month)
• $12,500 for Everything else ($1,050/month)

Now in that everything else budget is $1,050 a month:

• $300 for Food
• $100 for smartphone
• $75 for Cable
• $100 for medical insurance
• $100 for Car insurance
• $300 for gas
• $75 for everything else

See how fast it went?  Note there is not a car payment up there… no car repairs, no charity… just $75.  Now here’s the good news:  The $415 for savings is for car repairs and other unplanned life experiences such as being unemployed or hospitalized. This is what savings is for:  emergencies.  When you have an adequate savings account (today that is considered 8 months of your net salary (gross – taxes ONLY)  plus your insurance deductibles), then you can always adjust your savings and everything else money… but not before.

So, now is the time to get real.  Become responsible.  Get ourselves out of debt.  There is this huge outcry to have the government, who’s primary responsibility is to protect the people it serves, to balance it’s budget.  Well that starts at home.  With us.  We see and know how long it will take us to fix our own personal picture.  Why would we expect a faster response from our government?

After arriving for my first appointment, right on time (not my usual 2-3 minutes early),I discover a parking lot jam.  This is new.  I circle the lot, but there was no parking to be found.  To make it worse, I was approached by an attendant (which this lot never had before), and was instructed to go to the overflow lot.  Overflow lot?  Where is this?  It turned out to be a couple buildings down, across the street…  which was nearly a quarter-mile away.  And now I have to walk back to the building… in 5 degrees.  Now I was noticeably angry, as I was now very late, and not dressed to be walking so far and long in this weather.  Upon completion of my unplanned trek, I was greeted at door by today’s instructor and mustered the politest ‘hello’ (which sounded fairly rude) I could while I signed in.  I was freezing, and entered a room that had virtually no heat, before realizing I had left my warm beverage in the car (or on it).  This is how I like to start… grrrrrrrrr…

After I took my seat, the workshop started.   60 minutes later, I take my coat off, but I was still shivering.  I was thinking if I don’t take my coat of now, when I go outside, I will freeze even more.  Oh good, the break is here!!  Maybe I can find something warm to drink… even coffee would be tolerated.  I find the powdered warm beverage machine, order my large cocoa, open the door to collect my beverage and there is no cup.  Not having any more money to try ordering a small beverage, I go back out in the hall and walk for a couple of minutes to try and warm up.  grrrrr….. burrrr……..

Returning to the workshop, I notice that the room is colder than the hallway.  Someone comes in with a cup of warm water and told me about the location of this machine.  Just what I like about this group:  Someone always finds a way to add insult to injury here.  Finally the workshop is over, and I can go get some of that hot water to warm me up before I leave this building as quickly as I can.  I get in my car, and really don’t have a plan for where I’m going next.  When I  finally decide I was going to go to one of my favorite places to eat, I recall that the seating is usually cold.  grrrrrrrr…..

Finally, I pick up some Wendy’s.  Go to the library, and eat in my now warm car.  When I enter the library, I notice this building is much smaller than I recalled.  Not willing to leave the warm building, I find a very public area to sit and write this entry, as opposed to my usual quiet corner.  This chair is so uncomfortable, I am giving huge consideration to not proofreading this entry before posting.  Now I have this huge need to use the restroom.  I really don’t like going into the restrooms at libraries; you never know what you’re going to find… and it is not even noon yet.

I’m sure we’ve all had days like this.  They are certainly fun to read or hear about when it isn’t you.  For the person who is enduring the day, it is not easy to stay positive, let alone accomplish the tasks that were planned.  Even with the many calming or centering techniques I have learned, today is a struggle to remain in a place that I will appreciate my productivity.   Believe it or not, they are helping.  If they weren’t, I would already be home (hopefully), and certainly wound not have shared the experience.

The workshop I went to, I don’t recall what it even was, but I know I took notes.  At first glance, I see these notes will be useful, so now I am feeling a little better about having gone, nearly froze to death, and wasted 65 cents on a beverage that was never served to me.

Sometimes experiencing discomfort is a learning experience as well.    For example, sitting at this particular library, I’ve learned I don’t want to come back here for creative muse inspiration.    Hey!  I am starting to feel a little less stress.

This story is actually littered with even more learnings, and things that could be positive; however, I am still in need of that restroom, so you’re on your own for figuring out what works best for you.  Good Luck finding the rest of those “at least you weren’t…” moments.  Hopefully the day won’t get worse when I enter that restroom.

I tend to think there are five fundamental ingredients for personal finance success. And, no, having a lot of money in your pocket is not one of those ingredients.

My idea behind these three ingredients comes not only from my own experience, but from reading the success stories of a lot of Simple Dollar readers over the years. Some of them were rich and some of them were poor. Some of them had great jobs, while others were unemployed. Some of them were old and some of them were still in school. Some of them were highly educated, while others didn’t have even a GED.

All of them had a few key things in common.

A willingness to not blame others Rather than blaming society, blaming their employer, blaming their mother, or blaming their spouse, successful people look to themselves for answers. Yes, quite often other factors in their life were brutally unfair to them: a cheating spouse, a thief in the night, a cruel employer, an illness, an injury, a deceased partner, or countless other things. Yes, they realize that others sometimes get the breaks. However, they didn’t waste their energy blaming that unfairness for their problems. Instead, they looked at themselves and asked themselves, “All right, this is the situation, so what do I do to make the most of it?”

A willingness to learn Successful people know that they don’t have all the answers, so they seek help from others. They read books. They ask questions. They get lots of answers and put things together for themselves. The sheer act of writing in to the reader mailbag shows that they have a willingness to learn (at least, most of the time).

A willingness to work Successful people also know that when you want something, it’s not just handed to you. You have to work for it. You can’t just wake up one morning and have the job of your dreams. You can’t just turn over one day and find that all of your financial and personal problems are solved. You have to work for these things – and often, you have to work for a long time for these things and see failures along the way. That’s part of the equation.

A willingness to change People are creatures of habit, and changing those habits is something that we naturally resist, at least a little. If you want to be successful, though, you have to be willing to upset the apple cart. You have to be willing to walk away from personal demons and hurtful relationships. You have to be willing to completely alter your daily routines. You have to be willing to adopt new routines, even if they’re painful ones.

A goal This is the last of the five key ingredients, and it somewhat rests on the shoulders of the others. A goal means that you’ve clearly defined where you want to go. You’ve written it down, worked it out again and again in your mind, and developed a plan for reaching that goal.

No matter where you are at financially or personally, the path to where you want to be rests on top of these five things.