Get Your Read On: My Personal "Best Of" Personal Finance Books for twentysomethings

I am an avid reader. I love to read anything and everything - when I was a kid my mother could punish me by denying a weekly trip to the library. Oh so devastating!

My reading genre changes all the time from romance to biography to essay - but I love a good money self help book from time to time to keep me focused. Here I list my favorites - some I have read more than once!:

You're So Money, by Farnoosh Torabi

Love love love this book. Torabi broke everything down in that late - twenties hipster type way that in the end makes you feel that saving and investing aren't that far beyond you on your two - cent paycheck. A must read for those who plan on moving to a big city but will be on an entry level budget.

The Money Book For The Young, Fabulous, and Broke, by Suze Orman

I use this book as more of a reference. Suze always gives a straight answer on what steps you need to take to achieve financial wellness. Each book comes with an interactive code, which allows you to access message boards, budget forms, all all things financial to help learn more about personal finance.

Save Karyn, by Karyn Bosnak

I read this book a few summers ago, and was taken in to the real life story of this young woman. The true story of Bosnak moving to New York and ending up on over $25 000 in debt turned triumphant when she created the website savekaryn.com, along with selling her wares to pay down her debt.

The Broke Diaries, by Angela Nissel

Angela Nissel tells us the highlights of her broke college years with humor and wit. Nissel chronicles her senior year of college by her ins and outs with holding on to a dollar. She tells of her many tricks and schemes, which can now be looked back on with a good laugh. From pretending to be a student teacher for the free books to cajoling the electric man to not shutting her power off, this is a fun and fast read.

Next on my list:

Make Money, Not Excuses - Jean Chatzky
Generation Debt - Carmen Wong Ulrich
The Savvy Girl's Guide To Money - Emily Chantiri

What finance books have you read?

Tax Return Filing 101

So, this week, I have been especially excited for one thing: tax returns are going to be postmarked on Friday! Which means, this time next week, we will have W-2's collect on! Yippee!

Now, usually, every year, I have my return sent home and my mother has it filed through her accountant. Her accountant, however, has higher and higher fees every year. I decided that this year, since it's going to be a year of big steps anyway, to go out on a limb and file my own tax return. I have been doing some investigative work and have decided to go on and file online and ask for a direct deposit, which makes for a faster return.

The IRS provides a list of reputable tax filing web sites , in addition to FAQ's for first time tax filers.

One thing to remember: If you made over $3300 last year and cannot be claimed as a dependent by someone else, then you must file taxes. On that note, here is a list of 10 overlooked tax breaks that can be included.

If you are wary about going it alone, you can always search for a CPA (certified public accountant) to file your taxes for you. Just be prepared for the additional fees.

Sunday Blogroll - Career edition

Forbes.com released the best jobs for college grads - right now

On that note, Squakfox tells us 6 words that make your resume suck

Budgets Are Sexy has, along with her readers, compiled a list of the weirdest, craziest, jobs ever

And, here's a little throwback video to keep you motivated until Friday:

Easy Money - Saving Idea: Leave Your Wallet At Home

It will save you more than you ever imagined - especially since you won't have any money!

No really, we've all had those days when we've been rushing out of the door, or changed purses or cars and left all of our identification and currency at home. We get ready to buy a coffee, or food, or something and reach into our pockets... and come up empty. This happened to me the other day when I was in one of the many convenience stores on campus. I picked up several frivolous items on my mental list, and then some. As I reached into my wallet to pay for my purchases, I realized that something vital was missing: my Act Card. Silly me took it out to use when I went to the Rec and forgot to return it to its nesting place. Alas, I had to leave my purchases and curse myself for my mistake. But, I was able to hold on to my Dining Dollars a little longer.

So, has this happened to you before? What did you do?

Take Advantage Of: Liquidation Sales

So, sadly enough, a lot of businesses are having to liquidate their assets in order to cover their debt. Doing this, however, means the end of business for some places.

But what does that mean for you, the consumer? Great deals on some of your favorite items. During our day off , I scoured the mall and found that retailer Suncoast (Movie retailer) is liquidating, along with The Icing (accessories retailer) , where I was able to get four pairs of earrings and a headband at the cost of $8.00, a huge discount. Circuit City is liquidating as well, with many of their best products still intact. (FYI: I heard they still have several items in storage, so you may want to wait for their prices to get dangerously low.)

Liquidations are great for getting deals on the best, often latest, merchandise at steals. However, you aren't able to return any of the items, so make sure you are willing to deal with that clause. With electronics, fill out a warranty sheet with the manufacturer instead of the retailer, to make you insured against damages.

That being said, bargain shop away!

I'm glad all of this happened Monday, because Tuesday my attention was 100% focused on this:

Sunday Blogroll

The Inauguration is Tuesday. Stay informed.

Get your money right with Suze Orman's series on Oprah.com

Don't let your finances get this bad...

So you bought that $200 espresso maker with every intention of being a barista, but only used it once? Build a bridge and get over it over at Stop Buying Crap.

Learn how to make your budget more cost effective over at The Frugal Duchess


And, now, the reason we don't have school tomorrow, and more importantly, why people of all races are able to attend this university...

The Number One Free Resource You're Not Using

THE PUBLIC LIBRARY.

Tuscaloosa Public Library

Seriously, the Public Library is a gold mine for everyone - and you don't have to consider youself a bookworm to get use out of it. The Public Library has a vast array of books, DVD's, cd's, and internet - access ready computers. You can find the latest bestsellers in stock, as well as classic and modern day movies - and you don't have to pay for any of it. 

Well, I take that back: at our library here in Tuscaloosa, if you are not a resident of the city, i.e. a UA student not from Tuscaloosa, you have to pay a $10 fee, which is refunded to you once you graduate. The $10 pays for itself almost instantly. There are also magazines, maps, and test prep books. The library is the perfect place for those of us who are interested in reading that book or magazine, but know we can't afford the added expense, as well as the clutter. 

And Bonus: There is a bookstore located in the back of the library that sells old magazines and surplus book titles at garage - sale prices. So the next time you need a book for just one class and know you will probably be doing some highlighting, look no further than the store. 

The checkout time for a book is 3 weeks; DVD's and cd's are for one week. Magazines and newspapers, unfortunately can't be checked out.

The libaray is located on Jack Warner Parkway, with an additional branch near downtown. Check out the link for more information and directions. 

Financial New Year Resolution Roundup

Here is a list of every entry in the Financial New Year Resolution series. Feel free to share these with friends!

Get A Side Hustle

Work On Your Credit

Learn How To Budget

Learn How To Save

Splurge

Financial New Year Resolution #5: SPLURGE

courtesy of the Boston Globe

Ok, so I am not a total Scrooge about my finances. I do like to go on junkets every once in a while, but not really, because that's still money I need...

Anyway, you can't be in a financial money pinch all the time without treating yourself. Having little treats along the way helps to give a small taste of what you term to be the "good life." I told you guys earlier about my end of the year mini - spree . In addition, I like to have pedicures, buy a book from Barnes and Noble,(which is rare, because I have been known to graze for copious amounts of time) and hit up the Dollar Spot in Target. You can get carried away on $1 anything!

So, no matter what your budget, always leave a little room to splurge. Buy that magazine! Have that sushi! Go see that movie! But there's nothing wrong with looking for the savings. At Barnes and Noble you can obtain the $25/year membership card, which, if you're a frequent customer, pays for itself. Go to your favorite restaurant during the day, when more specials are offered. Or, go see the matinee movie - nothin' wrong with that.

I hope this series has helped to enhance your financial outlook for the year. With that, I hope you take my words and apply them to your daily financial lives and be more mindful of your financial interactions - it's your money, after all!

Financial New Year Resolution #4: Save More, Spend Less

I mean, who dosen't wanna be like Rich Uncle Pennybags?
Oh, don't even act like you didn't know this one was coming...

So, raise your hand if one of the following has happened to you:

- Your computer has crashed and the warranty has expired
- Your car has crashed and the repairs are expensive even after insurance
- You have almost had a heart attack after seeing a brand new pair of shoes in Macy's and realize you've got $10 to your name
- You got fired/quit your job and you have nothing but your last paycheck
- You want to go to Gulf Shores/Florida/NOT UA and realize that your monies wouldn't allow you to last more than a day, let alone a week.

See, this is why you need a savings account.

There is nothing more empowering than knowing that you have a stash of money that you have built up all by yourself, patiently building up interest and holding out for that new car/computer/dress you have been wanting.

But wait, you say, I am usually left with only pennies after I pay my expenses - how do I save on that?

Easy, my friend - ever heard of a Piggy Bank? Yours truly has what I like to call a "visible savings account" - I save all of my pennies, and at the end of the year, I roll them and cash them out for something fun - like a pedicure or a new DVD. It's not much, but it teaches me that I have the power to save. Another story: I remember a savings tale of a young woman who wanted to save up enough money to go on a Mission Trip for spring break. So, beginning in August, she saved $5 out of every ATM transaction and stored the money in her glove compartment. At the beginning of March, she had enough money for a plane ticket, spending money, and souvenirs! Now $5 might seem like a little much for every $10 - $20 withdrawl, but think about this:

Save $10 every month. In 6 months, you'll have $60; in a year, you'll have $120 - and enough to buy Christmas presents.

Or think about it like this: A tall cup of House Blend from Starbucks costs $1.80. If you start making your coffee at home, you'll save $12.60 a week. Then $54 a month. Then $648 a year. Wow...

Saving just a little bit each day can help you out in the long run. You never know when an unexpected expense will arrive, whether it be a car repair, or a medical injury, or the newest X Box Game (do people still have those? Clearly I'm not a gamer!)

So, who's ready to get started?

There are several savings options available:

You can open up a Savings Account at any bank, and there are several to choose from in Tuscaloosa.

Or, if you prefer to handle everything online, look into an online savings account . Online accounts have higher interest rates, since they don't have to pay taxes on brick and mortar establishments. You can set up automatic deduction plans, check your rates anytime, and not have to worry with paper anything.

For more money savings tips, check out this list at The Simple Dollar and remember, all it takes is baby steps. Cut back on your Starbucks habit. Save change by bringing Cokes from home. Borrow a friend's clothes. Eat leftovers. Walk. Become a library carholder.

In fact, here's a challenge. I challenge you (and I'm in this too!) to put away $5 every week until Spring Break. Beginning Sunday January 11, hold on to $5 and stash it somewhere. By the time the break comes, you should have $45,which at the least can cover your share on gas money. Do it, DO IT...

Happy Saving!

Oh - one more thing!

Suze Orman is offering a free download of her new book. Get it before the offer expires on January 15!

Financial New Year Resolution #3: The B Word

So now that you've been working on that Side Hustle and have started looking at building up your credit, it's time to put some of those extra dollars to the side. That's right, I'm talking about creating a budget and sticking to it.

Everytime you receive a paycheck or a monetary supplement, most of the time you are aware of where that money is going to go: gas, rent, groceries. And, with the little money you have left over, you usually put in your pocket to have as spending money. That is, unless the first place you head to is Target (where the air must be laced with crack or something, it's so addictive) or to your favorite restaurant, or to anywhere where your willpower is seriously diminished. Before you know it, your wallet is filled with numerous receipts and leaves you asking that age - old question: Where did all my money go?

Making a budget helps you to keep track of your spending, figure out how much money should be alloted for each activity in your life, and make you more aware of your regular purchases.

Here is a sample budget:

Let's say you make $500 a month. You also receive a monthly check of $100 from your parents, totaling $600 for the month. Your fixed (never changing) expenses are rent, gas and food. Your variable expenses could be utilities and your weekends out with friends.

Here is a good breakdown. Let's say this is the profile of a person who pays $250 in rent where utilities are included:

Rent - $250
Gas - $60
Food - $60
Car Insurance - $50
Entertainment- $50
Internet - $30
Cell Phone - $70


This budget totals to $570, with $30 left over for spending money.

If you wanted to cut costs, you could break down a "budget in a budget" and figure out what purchases are not necessary. For instance, breaking down your grocery budget and analyzing your receipts. Hey, how did that People magazine get on there?

When making a budget, make sure to always pay yourself first, plan for extra (if possible), and stick to it.

For sample budgeting sheets and tips on how to budget, visit about.com - Financial Planning

If you prefer to do all of your budgeting online, check out Mint.com a personal finance website. You can upload accounts, track your spending, and learn more about personal finance.

Financial New Year Resolution #2: Work On Your Credit

So, the next area of our financial lives that leaves the most impact is our credit. Credit is a lot like a GPA - you can bring it down in a matter of minutes and spend the entire remainder of your life building it back up. Establishing GOOD credit now sets us up for a sound financial future later. Credit is what helps to get a car, a house... anything linked to truth, basically. Now is the time to work on building up that score.

A couple of tips from my personal file:

My first credit car was (and I still have it) my Old Navy card. I had heard from others that it was a good idea to get a department store credit card first to establish good credit. I never charge more than $50 on it at a time, and the low balance makes it easy to pay off. Also, I get emails on sales and Bucks Back certificates every once in a while.

After about a year, I moved up to a real credit card. I went to citicards.com and filled out an evaluation to find out the best card for me. I chose a card that gives me cash back on every purchase. After I accumulate $50, I am eligible to get that money back.

On that note, I would like to give you a little advice:

- Pay your card off every month (if you can). If not, always pay more than the minimum. Paying your cards off helps to establish a solid score and makes you a good credit risk.

- Choose a card that benefits your lifestyle. If you are a jetsetter, find a card that gives you frequent flyer miles. Or, if you like having something to show for your purchases, the bucks back benefit is a great option.

- You really only need one card. Sure, a store card is nice, but nowadays, you can sign up on the store website for promotions and deals. Get one major card and stick with it.

For some "professional" advice, check out the Bank Rate site and find out which type of card is right for you.

Financial New Year Resolution #1: Get A Side Hustle

So... HAPPY NEW YEAR!



How did you ring it in? Did you go out? Stay in? Sleep? Either way, it's a New Year, which means there's a new start. If 2008 was the year that you were clueless when it came to budgeting, alone on Friday night because your cash flow was short, or your account summaries were full of overdrafts, then now is the time to turn it all around.

So, for the next five blog posts, we are going to start the New Year with an open mind, and end on a high note! Hopefully, a c-note, haha.

Financial New Year Resolution #1: Get A Side Hustle.

Now what is a side hustle , you may ask?

A side hustle is a separate job from the actual job you report to on a daily basis. It may be a profitable hobby, a weekend job, or something you do seasonally to increase your cash flow.

For instance, last semester, in addition to being an RA and working for the Housing office, I worked at the desk on Saturday nights. The hours may have sucked, but I appreciated making an extra $60 every two weeks for basically being a watchman.

There are several side hustle opportunities available. For instance, during football season, several of my friends worked the nearby vendor tables and tents and continue to work for them in the spring. I also have a friend of mine who does well babysitting for a professor and his wife every month or so. You could get a weekend job at a department store or other retailer to pay for your shopping habit or your weekend fun.
Also, I'm know I'm not the only one who glances at the CW Classifieds section for jobs - come Spring semester, there will be several opportunities to pack your pockets.

So, get out there and find your side hustle. Work it!

If you already have one, share!

SIDE NOTE: Did you know Tuscaloosa has a craigslist?