Friday, August 29, 2014

Cheap Baby Toys

Waah Waah Waah! The baby is crying again. Have you ever had second thoughts about having had that baby? Maybe you are frustrated because of the new addition to the family. Some people have to juggle between the baby at home and the stress from work outside. Not to mention with the baby comes added expenses. Medical bills, hospital bills, bills for clothes and equipment and you feel so stressed out! Even worse when this is your first born. You got no clue how to handle the baby! Changing diapers becomes a challenge, understanding what the baby is trying to say when she is crying and even knowing the proper methods to feed the baby is a test. And all this is driving you crazy.
What I would recommend is that first of all take a big breather. Yes slow down and try to get a breather. Get everything under control and stay calm. And think hard about how you can solve this problem, or try to make life easier for yourself. OK maybe you got a spouse who is very understanding and willing to share the baby load with you. But what if you are a single parent and it is just you and the baby? That becomes a real bummer doesn't it?
Well, let me recommend you something. Have you ever tried buying some baby toys to calm the baby down? Yes I am talking about baby toys. Well if you feel that with the baby already comes many added expenses then think again. You can actually purchase cheap baby toys from online. No time to buy these toys while the baby is untended at home? Well, you can do this in the comfort of your own home. Free and easy. Have those toys delivered to you at home.
And how would these cheap baby toys which were purchased from online help? Well you can't just purchase any baby toys that you see fit. There are actually certain toys that are more important than others. First of all, a baby toy you should get is something which can keep your baby occupied so that he would get distracted and not be idling all the time. For example, you can get a mobile to hang above the cot. Even better if the mobile plays music! That will definitely soothe that little devils ears and make him happy with joy instead of crying!
Oh do note that babies at different ages would need different kinds of toys so always check to see if the toy is suitable for your baby at that age. At the later stages, you should buy some cheap educational toys that help with the baby's development. There are just so many different types of baby toys that you can get for your baby and make life easy. Join me in buying cheap baby toys online and you will never see a crying baby again.
My Name is Lincoln and I like writing about toys. An example of a cheap baby toy which can be bought online includes this perlengkapan bayi baru lahir - Brilliant Basics Baby's First Blocks. This toy is an educational toy which develops a baby's recognition of shapes and helps in skill coordination. If you are interested to search for more cheap toys and cheap baby toys, you may want to check out my pelengkapan bayi murah blog to look for more cheap toys.

Baby Toys To Stimulate Your Baby

We all want the best for our babies. We give them the love they crave, warm their bellies, and rock them to sleep every night. One important factor in becoming a new parent of a baby is providing them with the tools they need to learn, grow, and conquer the world. Baby toys are a very important investment for all parents to make. But what are the right baby toys to purchase for your baby?
Baby Toys to Stimulate Hand-Eye Coordination
Hand-Eye coordination is the ability to see and grab objects. At the age of four months your baby's hand-eye coordination is beginning to develop. Your baby will grab at objects, and try to pick them up. Don't worry, he will master this quickly. Around five to six months your baby will learn how to reach for a baby toy, perhaps a baby block, grasp it, and hold onto it. Around seven months, your baby will learn how to drop that toy when he is done playing with it.
Developing hand-eye coordination is a crucial tool for all babies to master, and as soon as possible. We use hand-eye coordination in every day tasks such as bringing a fork to our mouths, brushing our teeth and hair. Think about it. Mastering hand-eye coordination can help a person to be able to do more complex tasks like typing quickly on a computer, playing the piano, painting a masterpiece, even sewing a button on a dress. You could be the proud parent of a modern day Mozart!
When trying to help your baby, the best thing you can do is hold a baby toy within reach from him. Then wait for him to grab it. You do not want to show him how it works. To him, that's all the fun of it! Some baby toys that help with developing hand-eye coordination are:
  • Blocks - Soft Blocks for ages 4 - 7 months and more sturdy blocks for babies older than 12 Months.
  • Stacking Toys will teach your baby to not only maneuver the object, but to also fit them together.
  • Household items such as plastic lids, plastic bottles.
Stimulate Your Baby's Senses with Textured Baby ToysHave you felt the pull of your hair when your baby is about four months old? We've all felt it, and our reaction is first pain, then joy. A lot of us, just remove the baby's white knuckle grip, and say "No", but is this really the response we should be giving? This is your baby saying, "I need my sense of touch stimulated!" Maybe instead of just saying "No", give your baby a toy that will stimulate his sense of touch, teaching him that many different things have different textures, shapes, and colors.
There are many baby toys that will do just this. There are toys that have different textures such as bumps, and curves; Baby toys that have crinkly material, and other fabrics. There also toys that have all this and lights and music to stimulate your baby's sense of hearing.
Some toys that you might want to consider are:
  • Crawl Mats and Play Nests - Baby crawl mats comes in several styles. One toy manufacturer, Galt, has created an infant play nest that stimulates touch, vision and hearing. The fabric covers inflatable ring creating a self contained safe play environment for babies and toddlers.
  • Activity Cube - A big soft colorful block with fun activities for baby to explore. Features may include mirrors, crinkle material, wool, sounds and lights and more.
  • Music makers - These baby toys allow baby to press different buttons and see what new sound is made.
Stimulate Your Baby's Mind and Emotions with MusicHave you ever heard a song that, no matter what mood you were in would cheer you up immediately? Or maybe one that made you sleepy? Well, babies feel all these emotions from music too. Music is a wonderful way to introduce your baby to their own sense of emotions, feelings, and the wonderful world of creativity and imagination! Several baby music CD's are available to invoke various feelings in your baby. Some better choices for parents to consider include the Brainy Baby® music collection.
  • Peaceful Baby(TM) by Brainy Baby® - Calming, restful music that progressively lulls your child into a deep and refreshing sleep.
  • Cheerful Baby(TM) - Cheerful Baby's compositions, melodies, rhythms and tonal ranges encourage a happy mood!
  • Playful Baby(TM) - Vibrant, invigorating music that encourages your child to actively experience the richness of their world.
  • Sleepy Baby(TM) - Calming, restful music that progressively lulls your child into a deep and refreshing sleep.
So What Do You Look For?When you go toy shopping for your baby, make sure you got perlengkapan bayi murah and perlengkapan bayi baru lahir properly and you will want to focus on toys that will stimulate your baby's mind, senses, curiosity and imagination. For a baby up to one year old, keep it simple with large, soft baby blocks, stacking toys, play mats or play nests, activity cubes. As a bonus during playtime, throw a CD in the CD player and watch your baby touch, explore, and learn about his new found abilities!

You can find all the toys mentioned in this article at Babymania Shop , as well several other toys for toddlers, and older children. Stop by, and see what you can find at

Essential Things You Need When You Have a New Baby

Struggling to quiet a fussy baby? The following baby tools may well assist your child (and also you) to feel additional comfortable.
Blanket you ought to have usually observed an infant wrapped in material blanket like a cocoon? Practice we usually encounter, specifically in newborn baby infants is, apparently for great cause you understand, because babies are very pleased to be handled like this. Just envision, your infant was inside of her mom womb for months, in a state physique "with folded arms" conferences, with hands and feet that are not no cost to move and he loved this state. With a blanket, he felt like being in the womb his mother had. Not just that, a material / blanket is actually beneficial to protect your newborn infant in the intensity of extreme noise and light to him.
Carrying cloth Arms (each arms sideways and entrance carrier), is useful not simply to encourage your little one to stroll out from the house, but can also be valuable to serene her lower when she was crying and fussing. Dental Gear for emergence For fussy infants for teething method, gear for example moist washcloth or perhaps a special toy contains water that has cooled (teething toy) may be quite useful. Do not have? As an additional alternative, you may use a stainless metal spoon dipped in chilly H2O. Permit your tiny bite its.
Nipple Additionally to feed her, to serene a fussy little one, you'll be able to attempt using an instrument just like infant pacifiers, or even allow the little chew your finger (have to clear finger) The pediatrician stated that activity bite in newborns, it stimulates the mind to release specific organic chemicals, which will have an effect on the nervous system and can set off a calming stimulus for him.
Child swing quite a few babies are popping up swing lately, which not just rocked forwards and backwards, but additionally to the facet. It's intended to mimic the motion inside the belly of the mother. Nevertheless, you will discover also some experts who tend not to help the use of swing for babies and toddlers. The cause is, since it was feared would cause the little one to have a sense of lack of self-confidence when he grew up.
Infant seats you might know of unique newborn seat that could be folded and taken anywhere? Effectively, in case your baby can sit up, this device can help also to calm him lower. Occasionally, in case your child is fed continuously at a certain position. If your little one spends lots of time by lying down or worn continuously, attempt to place him in an infant seat, to change the mood and standpoint. These seats can also be practical in the event you convey your infant to a buddy or relative. Together with your baby seated in the chair, he'll really feel a lot more comfy, even though he was inside a strange location for him - and simply if you want to find a shop for perlengkapan bayi murah and perlengkapan bayi baru lahir in indonesia , feel free to visit

Saturday, July 19, 2014

Soto Betawi di Gading Serpong

GADINGSERPONG - menu sup pasti sudah tidak asing di telinga foodies. Makanan Indonesia yang terbuat dari daging dan kaldu sayuran terkenal karena kelezatan. Salah satu menu sup yang cukup populer adalah sup daging sapi. Ingin mencicipi menu, sepertinya Anda perlu datang ke Roxy Restaurant Soto H Darwasa. restoran gading serpong ini terletak di Bolsena komersial, ini adalah cabang pertama dari Soto Roxy H Darwasa. Di restoran Jakarta cukup legendaris, seperti yang telah didirikan sejak tahun 1950 lalu. Tidak hanya usia tua terkenal, restoran gading serpong ini terkenal untuk melayani sup daging yang memiliki rasa khusus. "Khusus untuk kaldu sup, kaldu daging kita menggunakan dicampur dengan santan dicampur dengan rempah-rempah pilihan. Jadi rasanya lebih enak dan aman untuk makan karena mereka tidak menggunakan rasa bumbu, seperti monosodium glutamat (MSG)," kata Zulkarnain, pemilik Soto Roxy H Darwasa. Ada beberapa menu sup yang bisa dipilih sesuai keinginan pelanggan. Ada yang digoreng dan direbus sup daging, daging sapi paru-paru, lidah, kikil, usus dan vena. "Isi sup dapat disesuaikan dengan selera pelanggan," kata Zulkarnain. Dia menambahkan bahwa salah satu favorit dan terlaris menu di sini digoreng sup daging. "Jadi dalam daging goreng pertama, dan kemudian disajikan dengan sup saus. Sebagai pelengkap diberi kerupuk dan irisan daun bawang. Jangan lupa wedges kapur untuk lebih terasa segar". Untuk mendapatkan porsi menu, Anda tidak perlu menghabiskan mendalam. Semua menu sup di sini mulai dari Rp 28.000. Sementara itu, dalam rangka untuk memanjakan pelanggannya,restoran gading serpong Soto H Darwasa Roxy melayani rencana paket untuk katering, pertemuan sosial, pernikahan, dan pertemuan.

Thursday, July 10, 2014

Masakan Kepiting

Kuliner - Masakan seafood terkenal kelezatannya. Dari sekian banyak korban dari hidangan makanan laut, kepiting adalah salah satu yang menjadi favorit banyak orang. Di balik cangkang keras, daging kepiting memiliki tekstur yang lembut dan lezat. Nah, untuk pecinta makanan pecinta kepiting olahan, ada satu tempat di Gading Serpong yang dapat menjadi tujuan referensi kuliner Anda. Leaf Crab Restaurant nama Jembo. Family restaurant konsep restoran yang memiliki menu andalan yang patut dicoba, daun kepiting jembo terbakar. Sebelum diolah, kepiting bumbu racikan diolesi pilihan pertama. Agar bumbu lebih meresap, kepiting direbus dan kemudian digoreng dengan pembungkus daun pisang. "Bungkus daun pisang dibuat campuran rempah-rempah yang lebih luas. Tampaknya cukup menggoda, daging lembut, lezat, dan tidak terlalu pedas saat dimakan. Untuk kepiting, pelanggan bebas memilih sesuka hati. Ada pilihan kepiting jantan, telur, dan jumbo, "kata Harris F Aison, Crab Restaurant General Manager Leaves Jembo pemilik restoran gading serpong. Ada juga pilihan lain kepiting olahan senilai check-out. Seperti saus lada hitam kepiting, gurun, dan tiram. Namun, bagi pelanggan yang ingin merasakan sensasi kepiting persiapan soft shell, menu kepiting soka bisa menjadi pilihan. "Jika menu ini, soft shell dan mudah untuk membuka. Jadi, pelanggan tidak perlu repot-repot untuk memakannya," kata Haris. Tidak hanya kepiting menu, pergi Haris, di mana ia juga menyajikan menu seafood olahan lainnya. Mulai dari panggang ikan kuwe lilin jimbaran, kerang madu, panggang cumi melompat telur jembo udang rebus, dan berbagai sayuran olahan. Sementara haus rilis, bandung es yang terbuat dari campuran fanta jeruk dan santan dan es bisa menjadi pilihan yang pas. "Untuk Berbicara tentang harga menu sekarang tetap laris es jeruk kelapa., Semua menu kami mulai dai tag harga Rp 40 ribu," pungkasnya

Saturday, March 8, 2014

Why Women Need More Money Than Men -- and What Can Be Done to Make It Happen

Women need more money than men. Why? (No, not so we can buy more shoes, handbags or manicures.) Women need more because we live longer than men, make significantly less salary than our male peers, and are more likely to be single parents raising a family on one income.
Having a child is now the single best indicator of financial collapse.
Women comprise 87% of the impoverished elderly. A woman who works full-time for 40 years will earn $523,000 less than her male counterpart. At age 65, that extra half a million dollars could keep her from becoming one of the elderly poor.
What do these grim statistics tell us? They tell us that women, especially as they become older, are not prepared to take care of themselves financially. Yet nearly 90% of all women will end up managing their finances alone at some point in their lives.
Despite a woman's greater potential for financial need, it appears that many factors hamper financial equality between the sexes.
What can women do to beat these alarming odds?
Here are a few of my own - perhaps unique - ideas:
Delay motherhood.   My husband and I purposely waited until we had achieved financial freedom before adopting our daughter, because we didn’t want to repeat our own parent’s experiences. We both grew up with workaholic, struggling young parents and quite frankly, that often stunk. We didn't want money to interfere with our parenting.
Forming a family through adoption, rather than pregnancy, was a decision I made when I was a mere teenager. (The way I figured it, why "make my own" child when there are countless orphans dying for a family already.)  Since my husband and I chose to create our family through adoption, my biological time clock wasn't a ticking time bomb.
As my blog’s tagline says, “Financially free, our family hasn’t set an alarm clock in years. Whether it be work, parenting or play, we wake with the sun, eager to spend each new day doing whatever we choose.”   We waited until we could afford to commit to parenting 100%, together. For our family, the wait has been worth it.
I realize the path we chose isn't a good fit for most, but I do think it's sensible for parenthood to wait until certain things are in order. Consider taking the time to first:
  • finish college, establish your career, or launch your business
  • pay off your credit cards and other consumer debt
  • build an emergency fund
  • protect your growing wealth with insurance policies like disability and health
  • start your retirement account
  • build a solid partnership with your significant other
Share parenting and careers with your child's father.   I have two biases to confess right off the bat: One: I think most kids grow up best when raised by their parents (as opposed to day-care providers); and two: women need to know how to make money (see the statistics referenced in this article, above).
My ideal parenting-career model looks like this: Mom and Dad divide childcare and career hours between the two of them. For instance, rather than settle for the stereotypical full-time working father and the stay-at-home mom, each parent works part-time (20-25 hours each), during different shifts, while swapping care of the kids.
Think about the benefits to this kind of arrangement:
  1. Kids grow up spending quality time with both parents
  2. Both Mom and Dad get to spend quality time with the kids
  3. Both parents have the opportunity to pursue their own career paths
  4. No childcare expenses are required
  5. Mom hasn't given up her earning power
I recognize this isn't an easy arrangement for everyone. Many families feel they both need to work full-time to support their family. Some don't think their employer would allow them to work part-time. Others are single-parents who can't count on reliable child-support or parental care from the other. It's not the perfect solution for everyone. But if it sounds like an appealing idea to you, see if you can eliminate the "yes-but's" and figure out a way to make it happen anyway.
Refuse to be underpaid.  Remember-- a woman who works full-time for 40 years will earn $523,000 less than her male counterpart.  When you perform the same work, why in the world should you settle for less pay? Demand what you deserve,
Become financially literate.  Almost 90% of all women will end up managing their finances alone, so it's foolhardy to allow the man in your life to handle your finances. Read books, take classes, find a money mentor.
Come to grips with the emotions behind money.  The “How To’s” of personal finance are the same for women as they are for men. What is different is our feelings and beliefs about money. It has been demonstrated that most women are raised to nurture and seek acceptance and view money as a means to create a lifestyle. Women spend on things that enhance day-to-day living. Conversely, most men grow up learning to fix and provide. They view money as a means to capture and accumulate value, like a house and retirement. Men don't spend, they invest. Men don't want something, they need it. Theirs tends to be a future-money orientation.
Modify your money mindset to a more functional one.
Create a lifetime financial plan.  I use Microsoft Money's lifetime financial planning tool. Stay tuned for a future post for more details.
If you are married (or in a committed relationship), invest in it.  Money ranks as the first most argued topic for many couples. It has been estimated that an astounding 80% of divorces are the result of money disagreements.
A good marriage takes effort. I've been married for 21 years, so believe me, I know.  We schedule regular date nights sans kid, and see a counselor for "maintenance tune-ups". Money and time well invested, I assure you.
Push for national change in Congress, state legislature, public schools, and at the corporate level. Support systems that will help to ease financial differences between genders.
Readers, how do you think women can beat the odds?  I recognize this topic could raise some controversy, so please remember to express your constructive opinion, thoughts and ideas with respect and kindness.
Learn more on this topic:
Prince Charming Isn't Coming: How Women Get Smart About Money
The Two-Income Trap: Why Middle-Class Mothers and Fathers Are Going Broke
The Overspent American: Why We Want What We Don't Need
Women & Money: Owning the Power to Control Your Destiny
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Note: Statistical information for this article was obtained from the following sources:

Rent, Grow Rich, Be Free

I recently shared my formula for uncovering the difference between your needs and wants and today, I'm sharing a relevant personal story.

 In 1994, my husband and I built a fabulous home on a seven acre farm. We constructed a huge barn and filled it with critters and big boy toys.
Each weekend, we'd have a mile long to-do list: we'd plant more trees, paint fences, weed the garden, remodel. Our housekeeper spent half a day each week cleaning our home-- despite the fact that the two of us occupied only half of our total living space.
One financially reflective day in 2003, I calculated the total cost of living in our home. Due to our sweat equity, our mortgage balance was very low ($120k with monthly principle and interest payments of about $855), but once I added property taxes, insurance, maintenance and, especially, lost opportunity costs (home equity not available to earn money), it became very clear that our shelter "need" was costing us too much in life energy. The total cost for living in our home, including lost opportunity costs, was an astounding $60,000 that year.
That day was a turning point in my financial life. We discussed our options, sold our home and became renters. I took our home equity and invested in a well-diversified equity portfolio.
Our net worth blossomed exponentially. Some might find it ironic, but the day I officially became a millionaire, we were renting a small apartment.
By downsizing into a rented apartment, we had replaced our previous $60,000 annual shelter expense with one costing $9,000 per year. This huge reduction in spending quickly accelerated the growth of our net worth.

Our downsized move saved on other costs, too: the clubhouse, swimming pool and exercise room eliminated the need for our health club membership; our utility costs dropped dramatically; and our commute was shortened, cutting car transportation expenses.
The benefits were more than financial-- we enjoyed our first taste of freedom. We'd wake on Saturday morning with no to do list: no mowing, no repairing, no cleaning, no sweat. We'd sit smugly on our patio, enjoying our coffee and newspaper, watching the property management's landscaping and maintenance crews busy at work.
We chose to move into a house when we adopted our daughter. Currently, we rent a nice family home located across from a large neighborhood park. Compared to owning our previous house, our annual savings is about $44,500. How long do we plan on staying here? As long as our property manager comes when we call and no yappy dog moves in next door.
Important Update: Welcome! If you have arrived here via Lifehacker, Mental Floss, or are jumping into this conversation without any additional background information, you MUST read the following posts to completely understand the point of this post. Additionally, please read the information I offered in the comments sections.
In Rent vs Buy: The Hidden Cost of Lost Opportunity, I explain why it was so costly, despite my mortgage payments being so low, to own my house. In a nutshell, lost opportunity cost is defined as the cost of something in terms of an opportunity forgone and the benefits which could be received from that opportunity.
In my post I Get Richer As A Renter, I directly compared apples to apples, using a comprehensive rent versus buy calculator, on one typical home. The calculator reported, "Your home purchase does not breakeven after 30 years."
Finally, in Dispelling The Myth That Home Ownership Is Your Best Investment, you'll find answers to common questions and objections.
Additional resources comparing renting versus buying:
The Motley Fool: The Worst Investment Ever
MSN Money (by SmartMoney): Why rent? To get richer
Priced Out Forever: Renting vs. Purchasing
Click here to view some of my favorite books.

If You Want To Be Wealthy, You Need To Know This

Do you want to be wealthy? I'm going to share something with you today that you really need to understand - on a gut level - before you can make it happen.
Even if you learn all there is to know about money (how to make it, save it, invest it), if your relationships with others - or yourself - are dysfunctional, you'll never reach your full abundance potential.
In the past, I used to bitch, moan and complain (aka commiserate) with certain people because it seemed to bring us closer together. Misery likes company, so I feigned misery so these people would like me. I didn't want to make anyone feel jealous or envious either, so I talked myself down. It seemed so PC (politically correct).
I learned the hard way that this didn't do anyone any favor. I curbed this behavior... and I grew wealthy and happy.
I hear from these individuals now only when something difficult is occurring in my life. But when I'm all smiles and gratitude, I don't hear a peep from them. Similarly, a reader suggested recently that I make some people feel depressed by expressing my satisfaction, gratitude and happiness. He/she thinks that I should express more humility instead.
I know that my blog's traffic might increase if I discussed the mess my latest bookkeeper made of our financial records, the hit our retirement accounts have taken during this economic downturn, the exhaustion I felt during our recent move, or the disturbing mystery behind my still missing sister-in-law.  We all know that bad news sells. The media is full of tragedy, fear and despair because it works to increase circulation and readership.
But I don't want to write about bad things, even if it would drive my blog's traffic to new heights. Sure, bad news sells, but I don't have anything to sell.
If I focused on hardships, I'd feel like a car wreck on the side of the highway - the type that drivers can't help but slow down to gawk at (even though we know it's what causes the horrendous traffic jam).  I'd be attracting negative thoughts into my mind, and people that choose to focus on negativity into my life.
I write to express myself, and to share the steps I take to live a fuller, richer, happier life. By doing so, I actively practice my intentions and keep aligned on what is important to me. It brings a higher caliber of relationships into my life, and it gives me the strength to deal with the occasional curve ball thrown my way.
Here are some things I've learned by attending the University of Hard Knocks:
We become the company we keep.  Like attracts like. Be negative and you'll attract negativity; be positive and you will attract positive relationships into your life.
Limit your exposure to toxic people.  We all have them - friends, family or co-workers - that seem hell-bent on bringing us down to their level.  Immunize yourself from their poison by maintaining healthy personal boundaries. Don't be a martyr, learn to say no. Be a positive role model instead. Perhaps you'll inspire them (when they are personally ready) by modeling a different, healthier attitude.
Envy and jealousy will get you exactly what you don't want.  Acknowledge these feelings, then release them and let go. Compare yourself not to others, but only to your best self.
Don't be pressured into humility.  Definitions of humble include:
     - cause to feel shame; hurt the pride of
     - low or inferior in station or quality
     - marked by meekness or modesty
These definitions don't fit with a healthy, positive self-esteem.
Choose to use different language. The language you use directs your actions and therefore the path your life takes.
Limit your exposure to mass media. Pull the plug on bad news. Be selective - record uplifting, humorous and educational programs and keep the boob-tube turned off otherwise.
Focus on the bright side of life. I promise - there is always a bright side! What you think about is what you will get. Practice this skill by keeping a gratitude journal.
Stop looking in the rear view mirror.  Live your life from this day forward.

I Choose Happiness. Do You?

Four years ago, my husband and I sold our country farm home. Our intention was to kick start our early retirement with a year-long travel adventure across America in an RV. We planned to submit our adoption paperwork before leaving so we'd keep busy during the long wait for a referral. During our road trip adventure, we planned to keep our eyes peeled for the perfect place to call our next home. We were ecstatic about the prospect of living as vagabonds for a whole year, then welcoming a child into our lives.

Two months after selling our home and placing our pet goats, chickens and horses with new owners, my mom was diagnosed with a rare blood cancer. Whoa. Not only did our trip preparation come to a screeching halt, but so did my carefree and positive outlook. My mom wasn't just family-- she was one of my dearest friends. She was only 59. She'd always been extremely active and healthy. She was going to be such an incredibly fun “Gramz” for our future daughter. I was completely thrown for a loop.

My mom lived with my husband and me for much of her two-and-a-half-year-long battle with cancer. I watched helplessly as her once strong body weakened, withered and starved. I've never before felt such intense and prolonged pain.

I realized I had to do something to avoid going completely out of my mind with fear, grief and overwhelm. I tried all the usual things: support groups, therapy, sleep. While these things certainly helped, I discovered something even better. And it was so ridiculously simple.

During this intensely difficult time, I realized that I could be happy anyway.

How? I made it my mission to look for at least five things each day that make my heart melt, my soul sing and my smile grow. I wrote a list of five happy moments everyday. I actively searched for things to add to my list. My focus changed and in turn, so did my mood. I learned that happiness takes practice. With practice, I developed a habit of feeling happy.

At first I felt like a traitor. How could I think about happy things while my mom suffered? Was I being unfair, insensitive? Fortunately, I realized that I couldn't be a good caregiver for my mom when I felt bad. Fortunately, I chose happiness over guilt.

I learned an invaluable and powerful life lesson: It isn't circumstance that dictates whether I live a happy life -- rather, it is a matter of choice. I can succumb to sadness and overwhelm or I can choose to feel gratitude, love and happiness.

I know it sounds hokie, but give it a try anyway. Right this minute, grab a notebook and write down five things that make you happy. If a negative thought pops up, wave it away and look for something positive. Just in case you're having a really “bad day”, I'll offer a few ideas to get you started:

crisp autumn air
the smell of puppy breath
reading the Sunday newspaper
creative photography
vine-ripened garden tomatoes
a good book
surfing the internet
setting a goal
enjoying a massage
watching birds congregate at my birdfeeder
playing hide and seek with my child
chai tea
my favorite wine
buckets of sunflowers at the farmers market

The power of focus is amazing. Recounting painful memories in the beginning of this post was making me feel a bit blue. But after compiling the list of “happy things”, I'm once again feeling, umm... happy!

I continue to develop and practice my happiness habit. I choose to feel happy. What about you?

Relevant and Recommended Reading:

View my favorite books on happiness (and other topics) at the Millionaire Mommy Next Door Store. Profits are offered as micro-loans (via to sponsor small businesses operated by the world's working poor-- empowering them to lift themselves out of poverty.

Marshmallow Test and Money

5 Things The Marshmallow Test Can Teach You About Money

Tina is an intellectually-gifted bartender who struggles to pay her bills. Tina serves martinis to Susan. Susan is no more intelligent than Tina, but Susan is a millionaire.

If not intelligence, then what explains the difference between wealth and financial lack? And what do sticky, gooey marshmallows have to do with it?

In the 1960s, Stanford University psychology researcher Walter Mischel conducted a longitudinal study. Mischel placed marshmallows in front of hungry four-year-old children. He told them they could have one marshmallow now, or if they could wait several minutes, they could have two. Some children quickly grabbed the marshmallow and ate it. Others waited.

Mischel followed the group and found that 14 years later, the children who eagerly devoured the first marshmallow weren't faring as well as the children who had waited for two marshmallows. Years later, the “grabbers” suffered low self-esteem. Teachers and parents viewed these kids as stubborn, prone to envy and easily frustrated. The "wait-for-two-fers" possessed better coping skills; were more socially competent, optimistic, self-assertive, dependable and trustworthy; and scored about 210 points higher on their SATs.

Perhaps the key difference between between financial lack and wealth is not merely hard work or superior intelligence, but the ability to delay gratification.

What can the Marshmallow Test teach you about personal finance?

Avoid looking at marshmallows when you're hungry

During the Marshmallow Test, some successful kids reportedly covered their eyes so they couldn't see the tempting treat. Avoid temptation-- stay away from the mall when you're bored.

Save a marshmallow today and you'll eat well tomorrow

The children who waited for the second marshmallow were rewarded with a 100% return on their first marshmallow. Unleash the power of compounding and you'll be rich when you retire.

Drooling over s'mores? Wipe your chin and wait for the hot goo to cool-- because you don't want to burn your mouth!

One child reportedly licked the table around the marshmallow while waiting for the experimenter to return. Imagine having what you want, but wait until the time is right to consume. If you shop, wait until you have cash in hand to buy-- don't get burned by finance charges and credit card debt!

Stick your marshmallow into the fire, keep your eye on it and remove when perfectly browned-- before it bursts into flames.

Some successful children watched their marshmallow to prevent others from snatching it, waited patiently until the researcher returned with the expected second marshmallow, then enjoyed their reward-- without begging greedily for more. Invest in the market, monitor your investment and sell your shares when they reach your target price-- before the bubble pops.

Give your children mini-marshmallows and teach them how to make rice crispy bars.

Some kids handled the wait by turning their back to the marshmallow, singing songs or talking to themselves. With practice, kids can learn how to delay gratification. Provide opportunities for your child to develop strategies. Give your children an allowance and teach them money management skills.

Friday, March 7, 2014

Uncover The Truth About Needs and Wants

Baby Step to Financial Freedom #12

I'll explain this next step by way of an example. I know a family of four that lives in a large, beautiful home. Kids' toys multiply like horny rabbits, spilling out of their huge playroom. Both mom and dad drive late model cars. This two-income family owns a recreational vehicle they rarely use because they're too busy to leave home.
The parents tell me their number one priority is spending time with their two young children. Unfortunately, their children spend more awake hours with a daycare provider than with their loving parents.
Mom wants dad to work more so she can quit her job and be a stay-at-home mom. Dad wants mom to continue working so they can pay down debt and build some savings. Despite earning a higher than average combined annual income, they often argue about money. Worse, they feel stuck, unable to do anything about their current financial situation.
Clearly their personal priorities are out of whack with their finances. They want to spend more time with their children, but they believe they need to work more, earn more, to take care of their financial needs. And their financial "needs" keep growing.
The problem, as I see it, is they don't know the true difference between their needs and wants.
Do you? Let's uncover the truth...
1. List your basic needs categories: food, shelter, clothing, transportation.
2. Imagine that you and your family are currently staying in a homeless shelter, eating at the soup kitchen, receiving government assistance. Now, imagine that you earn just enough income to rent a small apartment and buy your own groceries. Add roundtrip bus fare for your work commute. Write down your bare bones monthly costs.
(Example, based on data collected for a family in the lowest income category):
Food = $254
Shelter = $627
Clothing = $71
Transportation (public) = $12
Total Monthly BASIC NEEDS = $964
3. Write down your own expenditure numbers from Baby Step #4: Where Does Your Money Go? Tips and Tricks for Tracking the Flow for these same needs categories.
4. Subtract your bare bones costs (#2) from your own expenditure numbers (#3). The results are your basic wants.
Example (using the family I described earlier):
Food: $1027 (spend) minus $254 (need) = $773 (want)
Shelter: $3280 (spend) minus $627 (need) = $2653 (want)
Clothing: $457 (spend) minus $71 (need) = $386 (want)
Transportation: $1613 (spend) minus $12 (need) = $1601 (want)
Total Monthly BASIC WANTS = $5,413
5. Similarly, separate the rest of your expenditures into needs and wants. Be brutally honest! It might look something like this:
Kids' Toys: $200 (spend) minus $15 (need) = $185 (want)
Tobacco/Alcohol: $123 (spend) minus $0 (need) = $123 (want)
RV: $250 (spend) minus $0 (need) = $250 (want)
Cable TV: $70 (spend) minus $0 (need) = $70 (want)
Let's return to the story of the family I told you about above. Hypothetically, if they reduced their material wants as outlined in my examples, they'd save at least an extra $6,041 a month ($72,492 annually)-- easily enough to afford one parent the option to quit their job and pull the kids out of daycare. On top of this, If one parent stayed home, daycare expenses would be eliminated. If their top priority is to spend more time with their children, clearly they can afford to do so.
I'm not advocating that you get rid of all your wants-- heck, what fun would that be? In fact, I personally choose to spend more on wants than I do on needs.
Live your life in accordance with your priorities and values. Uncover the role that needs and wants play in your financial life. Realize that your life is full of choices. Reaching your goal is simply a matter of taking care of all the little details, one Baby Step at a time.
Coming next... I will share my own needs versus wants evaluation plus a few personal illustrative stories. Then I'll share instructions for the next Baby Step: Craft A Budget That Fits Your Needs AND Wants. Rather than restricting your fun, a well-crafted budget will offer you more financial freedom. Don't miss anything: Subscribe to receive free email or RSS notifications every time I publish something new.
Did you miss a step? Want to learn my recipe for success, happiness and a million dollars? Start here: Baby Steps to Financial Freedom.

8 Questions To Ask Yourself Before You Buy

                                                          Baby Step to Financial Freedom #11

In my previous post, How To Put A Price Tag On Your Time (Baby Step #10), I suggested that you write your true hourly wage on a piece of paper and carry it in your wallet or checkbook. Before you make any purchase, divide the sales price by your true hourly wage. If the item or service is worth the hours of work to you, buy it. If not, walk away.

Today, I'm sharing some suggestions on what to do if you determine that the service or item you want is not worth your life energy price tag-- but you still need or want it.

Before you buy, ask yourself:
  1. Can I buy it for less? Comparison shop. Find it on sale. Negotiate. Look for a recycled one in the newspaper, at garage sales or consignment stores, on ebay or craigslist. Avoid the mall. I bought an entire summer wardrobe last year from a consignment boutique for less than $100 while vacationing on Kauai.
  2. Will I change my mind? When I leave a store to comparison shop, I often find that I stop wanting it. Advertisers and retail stores are notoriously skilled at making shoppers believe that they need something-- even when it isn't true.
  3. Can I trade something for it? Swap with a friend, neighbor or family member. Create a toy exchange with other parents. Ask the seller if she wants something you have in exchange for the item or service you desire-- we've traded plumbing repairs for health club dues, computer work, pizzas.
  4. Can I borrow it from someone? Borrow books, music and movies from the library. Ask your neighbor if you can use her seldom-used yard tools or specialty cooking appliances. Just make sure you are willing and able to repair or replace damaged or lost items.
  5. Can I share the expense with someone? Co-op with your neighborhood to buy one set of yard maintenance equipment. Consider car-sharing. Ask your babysitter for a reduced hourly rate for watching your child along with another.
  6. Can I cut back on another budget item instead? If what you want to buy doesn't fit into your budget, choose to spend less on something else for awhile. Use the money you're saving on that budget category towards what you want to buy instead. I often cut back on dining out the month before a vacation because I'd rather use the savings generated to enjoy special meals at our travel destination.
  7. Can I sell something to come up with the extra money? Sell an item you no longer use, then use the money to purchase the item you want. Try a sales listing on craigslist, ebay, community bulletin boards or your local classified ads. Here's an idea for toy-hungry kids (or adults!): declutter, hold a garage sale, then buy something new with the proceeds. Better yet, make “found” money go further by using tip #1 above.
  8. Can I make a green choice? Look for products that make less impact on our environment. Choose a less toxic alternative, one with less packaging and more recycled content, or something that can be reused for something else when you're done with it.
Did you miss a step? Want to learn my recipe for success, happiness and a million dollars? Start here: Baby Steps to Financial Freedom.

Don't miss anything: Subscribe to receive free email or RSS notifications every time I publish something new.

How To Put A Price Tag On Your Time

                                                    Baby Step to Financial Freedom #10

Why is it important to convert dollars to time?

For many, buying with credit is akin to paying with funny-money. You want something, you pull out a plastic card and shazam, you own it. By translating the number of dollars you pay for something into hours of your life spent working, you can make well-informed choices regarding what you're willing to pay for with your life energy.

1. Determine your true hourly wage: Plug your numbers into this Time Value Calculator.

I am illustrating this Baby Step with an example. I entered a $37,135 annual salary (2005 median individual income for a person age 25+, employed full-time with some college education). I included typical work-related expenses: work clothes, commuting, etc. and daycare for one child. I used the defaults for work and non-work time. The calculator's results tell me:

“Including time spent on commuting and work-related activities outside the workplace, you work an average of 47.12 hours per week. For that, you were paid a net $8.90 per hour after expenses, such as gasoline, child care, clothing for work and the like.”

Wow, $8.90 per hour. Based on salary alone, it would appear that this person is making $18.57 per hour ($37,135 by 2000 hours per year). The difference between salary and a true hourly wage can be significant!

2. Next, pull out your categorized list of expenditures (Baby Step 4). Take each monthly expense subtotal and divide it by your true hourly wage.

For example:

Car Payment: $250 by $8.90 = 28 working hours
Electronic Gadgets: $200 by $8.90 = 22 working hours
Dining Out: $175 by $8.90 = 20 working hours
Cigarettes, Chewing Gum: $150 by $8.90 = 17 working hours
Credit Finance Charges: $100 by $8.90 = 11 working hours
Shoes: $80 by $8.90 = 9 working hours

3. Take a deep breath and let your own numbers sink in. This is how long you spend working to pay for the things on your list.

4. Pull out your Treasure Map To A Rich Life (Baby Step 1) and your prioritized list of personal values (Baby Step 2). Compare the hours you work - to pay for the things you buy - with what you find most important in your life. Now, answer these questions:
  • Are they in alignment?
  • Are you working towards your dreams and values?
  • Are the price-tags of your life energy too high? In other words, are the things you buy worth the time you need to work for them?
  • What could you do with your life if you trimmed away some of the expenditures that aren't on your Treasure Map or list of prioritized values?
5. Schedule a family finance meeting (Baby Step 3) to review your findings and reactions.

6. Write your true hourly wage on a piece of paper and carry it in your wallet or checkbook. Before you make any purchase, divide the sales price by your true hourly wage. Is the item or service worth the hours of work to you? If so, buy it. If not, walk away.

We'll use your true hourly wage again in a few upcoming Baby Steps. Don't miss anything: Subscribe to receive free email or RSS notifications every time I publish something new.

Did you miss a step? Want to learn my recipe for success, happiness and a million dollars? Start here: Baby Steps to Financial Freedom.

Learn More:
Create Your Treasure Map To Riches (Baby Step 1)
By taking the time to establish what real wealth looks like to you, you direct your efforts in ways that will make becoming rich, in your own terms, simple.
Take Inventory: Identify Your Spending Values (Baby Step 2)
Once we've identified what truly makes us tick, our financial decisions will be guided in alignment with our values. I believe that under these circumstances, money can indeed contribute to our happiness.
Money Can Buy Happiness: How to Spend to Get the Life You Want (paperback)
Affluenza: The All-Consuming Epidemic (Paperback)
Your Money or Your Life: Transforming Your Relationship with Money and Achieving Financial Independence (paperback)
Microsoft Money 2007 Premium (software)

How To Calculate Your Net Worth (and why it's an important financial freedom step)

Just imagine having enough money socked away earning passive income- enough to pay all your bills and still have fun –that you can afford to say “asta la vista” to the shackles of your 9 to 5 job. You wake each day able to do whatever your heart desires.

At age 30, I decided I wanted this kind of freedom. And I didn't want to wait too long for it-- I wanted financial freedom while I was still young and healthy enough to enjoy it. To get there, I needed a plan. First, I needed to know where I was starting and then, where I planned to finish. Your current net worth serves as the starting line to your financial freedom journey. Knowing exactly where you are today is the first step to moving to where you want to be.

It may sound like a difficult chore, but all you're really doing is totaling up what you own and subtracting what you owe. If you sold all your assets and paid all your debts, what would be left over? That's your net worth.
  1. List the current market value of the things you own (assets): cash, bonds, stocks, mutual funds, retirement accounts, whole-life insurance cash value, annuities, pension and profit-sharing plans, real estate, business assets, vehicles, household furnishings, jewelry, collectibles.
  2. List the current balances of what you owe (liabilities): mortgages, loans, medical bills, back taxes, credit cards.
  3. Subtract the total of what you owe from the total of what you own. This is your net worth.
  4. Save your calculations, update once every quarter and track your progress. You might find it helpful to make a wall chart and hang it near your treasure map to a rich life. It can feel draining to make loan payments and feel as if you're getting nowhere. By updating your net worth regularly, you'll be encouraged as you watch your number rise.
It's possible that your current net worth is a negative number, especially if you're young, recently took out a mortgage on a house, or you've been living beyond your means on credit. But don't despair, because you've just taken a step towards upward progress. You can learn ways to beef up your assets and trim down your liabilities.
In a future Baby Step, I'll show you how to figure out your target net worth. Then we'll plot your course between today's net worth and tomorrow's financial freedom!
Exercises for Extra Credit:
If you want to feel accountable -- or competition spurs you on -- set up a free NetWorthIQ account to track and compare your progress with others. You can view my account here.

This calculator estimates how your net worth could change over the next ten years.
See where you rank based on your age and income.
See where you stand according to the book titled The Millionaire Next Door by Thomas J. Stanley and William D. Danko.

Don't miss anything: Subscribe to receive free email or RSS notifications every time I publish something new.

Did you miss a step? Want to learn my recipe for success, happiness and a million dollars? Start here: Baby Steps to Financial Freedom.

8: Invest On Your Own

I'm sure there are investment brokers worth the fees and commissions they charge, but I haven't met one. I burned through five brokers before realizing that no one cares as much about my money as I do. Brokers are salespeople. Naturally, they care more about their bottom line then mine.

Each year, I'd compare my broker-managed portfolio's long-term performance with stock market indexes (Wilshire 5000, S&P 500, Dow Jones Industrial Average, NASDAQ, MSCI EAFE, etc.). I found that despite paying a decent sum to brokers for their expertise, my portfolio was under-performing the standard index benchmarks.

In 1999, I decide that it was worth my time and energy to learn how to manage my own investment portfolio. My efforts have paid off handsomely. Here's a down-n-dirty summary of what I've learned:

1. Start Today

Start as early as possible to take advantage of the astounding power of compounding growth. By reinvesting the gains you receive from the money you invest, you can double your money in less than eight years assuming a 10% average annual return.

Take a look at the following example, then try this calculator to see how much postponing your savings plan could cost:

Start Now
Starting amount: $0
Savings plan: Save $10,000 per year for 30 years
Rate of return 10.00%
Ending balance = $1,809,434

Start Later
Starting amount: $0
Savings plan: Postpone saving for 10 years then save $10,000 per year for 20 years
Rate of return: 10.00%
Ending balance = $630,025

Cost of waiting = $1,179,409

2. Put Your Investments on Auto-Pilot

Instruct your bank to automatically transfer at least 10-20% of your gross income to your investment accounts each month. If you don't think you can afford to do this then you can't afford your lifestyle. Get creative and cut expenses elsewhere and pay yourself first.

3. Maximize Retirement Account Contributions

How taxes are applied to an investment can make a big difference in the long run. There are tax advantages to retirement accounts which is why you should maximize your contributions to these accounts first, then add to your taxable accounts. Additionally, some employers match your contributions which equals free money.

This calculator compares a normal taxable investment to two common tax advantaged situations: An investment where taxes are deferred until withdrawals are made, and an investment where taxes are paid on money that goes into the account but all withdrawals are tax free.

4. Do It Yourself

Invest $10,000 each year and use a broker to place your order and you might pay $575 per year in sales commissions. Alternatively, learn to place investment orders yourself and your commission savings, compounding 10% annually, would be an extra $104,042 in your pocket after 30 years.

I use TD Ameritrade, an online trading brokerage, and spend $0 to $49.99 per trade in commissions. Compare their prices with a few competitors.

5. Diversify and Build a Balanced Portfolio

Speculative investments are like eggs-- when they fall, they make a mess. Don't place your bet on a single stock or sector. Spread your risk into a variety of market caps and styles as well as domestic, foreign and emerging markets. Proper diversification helps your portfolio weather any ups and downs the market can take. Asset allocation accounts for 94% of the variation in portfolio returns, while market timing and stock selection account for only 6% (Gary Brinson, Randolph Hood and Gilbert Beebower). Review and rebalance your portfolio annually to maintain your desired allocation percentages.

The Asset Allocator calculator is designed to help you create a balanced portfolio of investments. Your age, ability to tolerate risk, and several other factors are used to calculate a desirable mix of stocks, bonds and cash.

I'll share what my portfolio looks like in a future post, so please check back soon.

6. Be Mindful of Fees

Invest in a low-cost equity portfolio using no-load mutual funds, Exchange Traded Funds (ETFs) and index funds. Even a small difference in the fees you pay on your investments add up over time.

Use this calculator to see how different fees can impact your investment selections.

7. Don’t Try To Predict The Future

Rises and falls in the stock market are normal, frequent and not a reason to sell quality investments. On average, a 10% drop in the stock market has happened once a year during the past 100 years (Ned Davis Research). Don’t try to time the market by predicting the effect that current events might have on the market. You're likely to buy high and sell low which will cost you a bunch of money. Stay invested. Even professional market timers get it wrong most of the time.

8. Cover Your Ass(ets)

Protect your growing wealth with adequate insurance. The number one cause of bankruptcy is major medical expenses. In addition to health insurance, consider coverage for disability, life (use term rather than whole life), auto, homeowner/renter, business, and personal liability. Buy policies with the highest deductible you are comfortable with and invest your premium savings.

9. Understand Your Assets and Liabilities

Most people consider the home they live in as an asset but the truth is, it’s a liability. You're spending money (mortgage payments, repairs and maintenance, insurance, property taxes, etc) on property that isn't producing income. Stop thinking of your home as a savings account. In fact, consider living in a smaller home to free up extra money to invest. Put your money into investment property that produces a positive cash flow or into stocks and bonds.

We sold our home four years ago to invest the equity accumulated. Alarmed at the irrational exuberance in the real estate market, we then chose to rent a home to live in as the bubble grew and popped. Renting instead of buying our home saves us money and, by keeping money invested in equities rather than in the roof over our heads, affords us the opportunity to retire early. Don't believe the sales-pressure hype that homeownership is your best investment. I'll discuss this concept in more detail soon.

10. Crack Open Some Good Books

What I've offered today is a summary. I've shared my opinions and experiences. But don't just take my word; ask questions, read quality books, practice investing as you wean off of your high-commission broker.

Readers, what is your best investment rule-of-thumb? Do you use a broker or financial advisor? Have you been successful investing on your own?

Relevant and Recommended Reading:

View my favorite investment books at the Millionaire Mommy Next Door Store. Profits are offered as micro-loans (via to sponsor small businesses operated by the world's working poor-- empowering them to lift themselves out of poverty.

110 Personal Finance Calculators: Fast Answers For Your Financial Questions (my previous post)
5 Things The Marshmallow Test Can Teach You About Money (my previous post)
Start on your first $1 million at age 16 (article at MSN Money)

Did you miss a step? Want to learn my recipe for success, happiness and a million dollars? Start here: Baby Steps to Financial Freedom.

7: Improve Your Credit Score

This is Millionaire Mommy Next Door's

Why is it important to improve your credit score?

You can save hundreds of thousands of dollars over the course of your lifetime with a good credit score.

Let's say you want to buy a new home, with a loan principle amount of $250,000, and your credit score is 619 (out of a possible 850). Since your score indicates that you've had trouble taking care of your obligations in the past, your lender is able to offer you a 30 year fixed mortgage at 11.88% APR with monthly principle and interest payments of $2,548.

Would you like to know how much I'd pay each month for the same home? Just $1,554. Wow. I'd pay almost $1,000 less each month, simply because my credit score is above the 720 point benchmark.

Over the full 30 year mortgage term, I'd pay a whopping $357,873 less than you would. For the same home!

To compare other credit score and loan scenarios, check out the calculator at: A Higher FICO Score Saves You Money

Instructions: 14 Ways To Improve Your Credit Score
  1. The best way to raise your credit score is to pay your obligations on time. Your payment history represents 35% of your total credit score.
  2. Order your credit report and correct blatant mistakes. Changing a mistake on your report, such as a payment that is wrongly labeled as late, can take 30 days or longer.
  3. The length of your credit history represents 15% of your credit score. If you don't have a credit history, open a checking and savings account and obtain a secured credit card. Build your credit by managing them responsibly. Convert to a regular, unsecured credit card after 12 to 18 months of on-time payments.
  4. Don't apply for lots of credit cards. Each credit inquiry can ding 5 points from your credit score.
  5. Pay off debt rather than moving it around. Don't consolidate your accounts or bounce your balances from card to card. Transferring balances from a high-limit card to a lower-limit one, or concentrating all of your credit-card balances onto a single card can hurt your score. In general, it's better to have smaller balances on a few cards than a big balance on one.
  6. Don't charge more than you can pay off when the bill comes due. It's not necessary to pay interest on a credit card to earn a good credit score. Pay off your balances in full each month. I never pay interest or fees on our credit cards; instead, I get paid almost $2,000 a year in cash-reward money!
  7. Even if you pay off your credit balance each month, limit the percentage of available credit you use to no more than 30%. The credit-scoring formula favors a large gap between the amount of credit you're using and your available credit limits.
  8. Don't close unused credit card accounts near loan time-- you'll only raise your balance-to-limit ratio.
  9. Pay down the cards that are maxed out first. You'll get points deducted from your score when you charge more than 50 percent of the limit.
  10. Pay your library fines, parking tickets and traffic penalties promptly.
  11. Don't bounce checks.
  12. Don't allow a dispute to go unresolved.
  13. If you must, make it difficult to use your credit cards. Put them in a water-filled container and freeze until your score is back on track.
  14. If you're having trouble making ends meet, contact your creditors or see a legitimate credit counselor. This won't improve your score immediately, but once you begin managing your credit and paying on time, your score will gradually improve.
Relevant and Recommended Reading:
You Need To Know What People Are Saying About You: How to Order Your Free Credit Report (my previous post) A good credit score can save you thousands of dollars over the course of your lifetime. A poor one can make it difficult to land a job. Learn how to see what your record says about you, free.

6: Order Your Free Credit Report

This is Millionaire Mommy Next Door's

Why is it important to order your free credit report?

Your credit report contains information about where you live, how you pay your bills and whether you've been sued, arrested or have filed for bankruptcy. Some estimate that as many as 80 percent of all credit reports contain errors or misinformation.

Lenders, insurance providers, merchants, landlords and employers check credit ratings. If you have a low credit score, you'll likely pay more for car and home insurance, cell phone contracts, credit card and loan interest rates, and apartment rent. A good credit score can save you thousands of dollars over the course of your lifetime.

A poor credit report can even make it difficult to land a job. Some employers believe that if you're irresponsible with your financial life, you're likely to behave similarly at work.

The General Accounting Office estimates that as many as 750,000 Americans are victims of identity theft every year. Many more people don't even know they've been victimized. Keep tabs on your credit report so you can uncover wrongdoings as soon as possible.

Last but not least, you'll need your credit and loan balances for a couple of my upcoming Baby Steps to Financial Freedom.


1. Order your free credit reports is the official site to help consumers obtain their free credit report. Make sure you access the right web site because there are hoards of online imitators. This site allows you to request a free credit file disclosure, commonly called a credit report, once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. Asking for your personal report won't hurt your score.

Tip: Since you are allowed one free credit report from each of the three reporting agencies every 12 months, consider ordering a single report from just one of the agencies and rotating orders every four months. This allows you to keep a closer eye on your credit report for errors and identity theft while avoiding fees.

2. Report any errors found on your credit report

If you find a mistake on your credit report, such as an account that isn't yours or a disputed late payment history, you'll need to follow the agency's instructions to clear up the errors.

3. Purchase your credit score

Remember, credit reports are free, but you need to pay to see your current credit score. Credit reports are used by the credit bureaus to create your credit score. Your credit score is a mathematical calculation expressed by a three-digit number that lenders often use to rate your creditworthiness. The higher your credit score, the more likely your are to make payments on time.

Ordering your credit score will cost about $5.95 and up, depending on whether you purchase a credit monitoring package, too. You can purchase your credit score several ways:
Tip: MSN Money provides a free online credit survey. Answer their 10 questions to see your potential credit score range.

How To Find Financial Happiness

Baby Step to Financial Freedom #5: How To Find Financial Happiness
Everyone needs food, shelter and clothing. But beyond our basic survival needs, there is an endless array of money-hungry possibilities that can consume our disposable income. For instance, one person may value a beautiful home so they spend more on their home purchase, decorating and remodeling than someone who values travel and adventure. Another may feel it's important to protect the environment so they pay more to purchase a vehicle that operates on alternative fuel, while their neighbor's priority is safety so they drive a large, gas-guzzling (albeit safe) SUV.

Why is it important to take this Baby Step?

It could be that you are investing in things that are not as important to you as others. Financial happiness is figuring out what is important to you and spending accordingly. This step provides a beginning structure for your spending plan-- a budget that you'll be enthusiastically motivated and happy to adhere to.

1. Take your list of prioritized values from Baby Step to Financial Freedom #2, Identify Your Spending Values, and copy the highlights onto a new piece of paper. Leave a few spaces between each of your listed values.
2. Refer to your subtotals from Baby Step to Financial Freedom #4, Where Does Your Money Go? Tips and Tricks for Tracking the Flow. Take each expense category amount and assign it to the value that feels most appropriate (see my example below). If an expense fits under more than one value, divide it proportionally into those that apply. If you have an expenditure that doesn't fit with any of your listed values, record it at the bottom of your page.
3. Add the expenses listed under each of your personal values.
To serve as an example, here's how this Baby Step looks using my own list of priorities and values and our annual family expenditures for 2005:

Family Relationships:
$213,754 = Savings Contributions (for our early retirement, allowing us both to be stay-at-home parents)
$3229 = 25% of Travel
$2735 = 50% of Dining Out
$543 = 50% of Telephone
$641 = 50% of Gifts
TOTAL = $220,902

$3229 = 25% of Travel
$2735 = 50% of Dining Out
$1294 = 50% of Recreation
$986 = Liquor
$543 = 50% of Telephone
$641 = 50% of Gifts
TOTAL = $9,428

$2864 = 50% of Organic Food
$4522 = Medical (not including insurance)
TOTAL = $7,386

$3229 = 25% of Travel
$1294 = 50% of Recreation
$2025 = Pets
$1808 = Toys
$689 = TV Programming
TOTAL = $9,045

$5640 = Health Insurance
$395 = Disability Insurance
$264 = Life Insurance
$125 = Renter's Insurance
$108 = Personal Liability Insurance
TOTAL = $6,532

Curiosity-Led Learning:
$3329 = 25% of Travel
$268 = Internet Service
$148 = Books, Subscriptions
TOTAL = $3,745

Environment and Sustainability:
$2864 = 50% of Organic Food
TOTAL = $2,864

Community and Compassion:
$419 = 10% Auto (transportation for community and volunteer activities)
TOTAL = $419

Other Expenditures (that don't fit with my list of values above):
$9531 = Rent
$3771 = 90% Auto
$1235 = Storage Unit
$959 = Beauty
$871 = Misc
$568 = Utilities: Gas
$477 = Utilities: Electric
$318 = Clothes
$240 = Tax Prep Fees
$127 = Bank Acct Fees
$43 = Furnishings
TOTAL = $18,140
4. Now look at the correlation between your priorities and values and the money you spend on each of them. Is your spending in alignment with what is truly important to you? What can you do to align your spending better with your personal value system?

Referring again to my example above, I felt 90% satisfied with how I spent my money. What expenditures bothered me? What can I do to better align my spending with my personal value system?
  • Storage Unit ($1235): I hate paying for STUFF that we no longer use or want. What can I do? Give items to a charitable organization. Keep the receipt and use the tax deduction.
  • Auto: I drive a 10 year old SUV. I feel badly about how much gasoline it consumes. What can I do? Since one of my priorities is the environment and sustainability, consider replacing it with a used hybrid vehicle. Since safety is also important to me, select the hybrid vehicle with the highest safety rating.
5. Finally, schedule a family finance meeting to discuss your results and gather feedback from each member of your family. Brainstorm ways in which your family can spend less on the items listed on the bottom of your page- the things you spend money on that have nothing to do with your personal values. Check this blog's Fun and Frugal archive for money-saving ideas.

The more money you free up on the items that don't mean much to you, the more you'll have for the things that thrill you. And this, folks, is a main ingredient in my recipe for financial happiness!

Question for my readers: How closely related is your spending to your personal values and priorities? Please share your thoughts on how you intend to get the two in better alignment.

Relevant and Recommended Reading:
Here's a classic containing terrific values and money content: Your Money or Your Life: Transforming Your Relationship with Money and Achieving Financial Independence (paperback)
The Simple Living Guide (paperback) is a great resource about choosing to spend less money than you earn.
Money Can Buy Happiness: How to Spend to Get the Life You Want (paperback)