Rejuvenate & Renew Challenge Update: 6/1 to 6/14

Okay. Sorry for not getting the update up sooner! Between moving out of my home so quickly and arriving here in Hawaii, I simply let it slip my mind. I know our numbers are few, but we would LOVE to have more people join in on this challenge. I like to think of it as a "learn something new" or "self-help" challenge. It's my way of pushing myself to read those nonfiction books that I've been wanting to read about things like finance, diet, etc. Please join! You can click on the button above to link back to the challenge & leave a comment. I even think there will be a giveaway in this genre at the end, so pass the word along and join with us.

For those who are involved in the challenge, you can leave a comment here to let us know if you've read anything yet. I'll even try to give people a link on my next "update" post (which will be once a week from now on). If you haven't yet finished a book, you can even just tell us what you're looking forward to reading or are in the middle of!

As for me, I did manage to finish one book for the challenge. I read Suze Orman's 2009 Action Plan, which was my way of trying to get my finances in order as I prepare to buy a new townhome this fall. It was some great information, but also caused me a lot of strange stress. You can see some of Suze Orman's suggestions and my review at: "Review: Suze Orman's 2009 Action Plan."

Review: Suze Orman's 2009 Action Plan

Talk about a stressful way to start off the reading challenge! I've actually posted about this book, back when I first picked it up to read. Many of you know that I'm in the process of buying a townhouse. That is, if the builders can get their financing! The entire process has been extremely stressful, and had me rethinking it a million times, and wondering if I can do it. Yes...I think I can, but Orman's book sure makes me rethink it once again!


Synopsis: In 2008, seeing where the economy was headed, Suze Orman sat down and wrote a new plan for 2009. Knowing that things were going to be tough, that the market was going to tank, that people were going to lose their jobs, and that the real estate market would head south in a serious way, Orman outlines strategies and challenges for how Americans can save their own finances and get out of this recession with their families and lives in tact.

Review: Although I had looked over the worksheets several weeks ago, so that I had my own "financial health" mapped out as I headed into getting my mortgage (and felt good about it), Orman's information and challenges had my stomach in knots. I definitely think she's being realistic, but she doesn't sugar-coat things for one second, nor does she make you think that "everything will be all right" without major effort on each of our parts. The book has 10 chapters, and each one focuses on a different financial issue, such as: paying for college, planning for retirement, buying a home, spending, etc. Each chapter then lists a series of questions that real people might ask Orman.

While this book stressed me out...major, I do feel like there are things I can do to reduce my own debt (ha, ha...even with a mortgage coming around the corner), and ways that I can secure my financial freedom. For instance, she suggest some of the following:

• Put away at least 8 months of salary as a fall back.
• DO NOT dip into your 401k.
• Pay down credit cards as much as possible.
• Keep your FICO score above 700, preferably above 720 by making payments on time.
• Make sure your family has health insurance.
  
• If buying real estate, you should be able to make the 10-20% downpayment, or you're probably not ready to buy!

She also issued a challenge that I think I'll try some time in the next month:

1. Do not spend money for one day.
2. Do not use your credit card for one week.
3. Do not eat out at a restaurant for one month.

Overall, a great resource, and one that I'm glad I have. It's not fun to read, and is quite sobering, but one that I think we all need in this recession. Even though it's tough to face the facts of this economy, the education Orman can give in this book are invaluable and comforting.

For more information, see: Suze Orman's 2009 Action Plan

*This also fulfilled my second in the e-book Reader's Challenge.

Money...What a Fright!

I've been reading Suze Orman's 2009 Action Plan, and was sent all in a tither last night. I had so looked forward to going home Thursday night and just relaxing and reading...that is until I read Suze Orman! I thought I'd "leisurely" take in a chapter of her book, but that chapter started outlining the importance this year, more than ever, of getting debt as low as possible because credit ratings are going to fall. Now, I have a pretty good one, but I'm thinking that with a few accounts that are still hanging that debt over my head, that I better get myself squared away.

Well, there went my leisurely night! I ended up going through my financial stuff for over four hours last night, shredding old stuff, putting together receipts and things for taxes, etc. I've known I needed to get things put together so I could go get my taxes done, but haven't had the time or energy to do it. Well...as of 11:30 pm last night, I'm READY to go face the firing squad! :) I actually think I'll be ok, but I'm still a big worry wart. Managing and investing money off of one small paycheck is pretty scary, especially since I'm looking to buy a new car, and would like to buy a place to live...since the market is so good for buying. Sigh...that is, if I'm squared away. Too scary!

Anyone else fretting over this junk?

Saving Money

Well...after a weekend in Vegas with Doc, I'm rethinking thrift and how to tighten my belt after spending more than I would have liked. It was a GREAT weekend, and I really had a lot of fun (walked my buns off!!!), but now I need to save money like crazy so that I don't let my one many-hundred dollar weekend get the better of my budget. Having said that, I noticed an article about how to save money from this "Dumb Little Man" site (crazy name for a site there). Anyway, I'm listing his suggestions for saving thousands a year:

Here are his choices, and my answer...maybe I need to rethink my life's priorities???

1. Brown bag lunches--Already do this. I don't have time to do otherwise with my job!

2. Go Vegetarian--When you're single, buying salad is almost like throwing money down the garbage...you just can't eat the lettuce that quickly unless you eat your next three to four meals as all salad. Besides, I don't eat meat all the time. Pasta and rice are more my fare.

3. Switch to store brands--Some things are okay...others not. Does clipping coupons to make name brands, store brands prices count?

4. Take a thermos--I don't know that I drink anything that requires a thermos???

5. Leave your gym--NO WAY!!! That's asking me to let go, gain the hundreds my body seems to want--not to mention the health issues. My mom would FLIP OUT if I stopped going to the gym!

6. Don't buy greeting cards--I don't buy a lot of cards, but I could back this one up if the few I actually send out cards to (grandma & grandpa, aunts, and mom) wouldn't think I'd given up and didn't love them anymore!

7. Buy non-perishable food in bulk--I've kind of done this. Once again...when you're single and share storage space with a roommate, this can be tricky.

8. Switch off the lights and TV--This one I need to do. I tend to leave a light on in my room when I get home so that I never have to cross the room to switch the light on. I also leave my TV on when I'm puttering around upstairs, all for the noise. I guess I should stop!

9. Get your home insulated--Rental...no choices there.

10. Buy clothes on E-bay--I do a HUGE amount of my shopping at TJ Maxx, so I think I'm doing okay here. My only exception is my once a year trek to Kohl's and Macy's for nice school stuff.

11. Use the library--ADDICTED to the library. Although, I will admit that I still collect, purchase, and download to my Kindle, books that I really want. I do need to chill on this one.

12. Read newspapers online--Yes, I pretty much read my news online all the time, and check out news on TV on a daily basis.

13. Host weekly get together--I can see what he means if you go out to eat all the time. I DO tend to get together every other weekend or several weekends a month with Doc, and we tend to go out to eat. So, does that mean he wants me to cook for us???

14. Car-pool--NO WAY! My car gets the same gas mileage as a hybrid, and it's paid for. I really can't beat being able to have the freedom to come and go as I need from work.

15. Buy multi-packs of chips and cookies. --Umm, I don't think this is a good idea! :)

16. Buy from Amazon.--I'm a Prime member here, as I order things using my school account. However, Amazon can be addicting as well...especially when you own a Kindle and LOVE reading. The other downfall here is that I've had some real NIGHTMARE stories about UPS and DHL. In my opinion, the USPS is the only way to go anymore. The other shipping companies just give you too much of a run around and don't seem to care about their customers. (Yes, I have stories to back that!)

17. Carry a water bottle.--I've done this for years, so no savings there.

I guess in the end, I have to just evaluate my own spending and cut accordingly. For me:

• Cook at home, saving leftovers by freezing and putting into serving sizes for later.
• Limit book & other purchases through Amazon.
• USE the gym consistently so that money is well spent and keeps medical bills down (seriously...no joke there).

I'm sure there are other ways of cutting back. I need to just tighten my belt and not spend unnecessarily. Thank goodness I have a good, steady job, so I need to be thankful and make do and wear it out...as a wise man once advised! :)