Many people don’t have their finances well organized and therefore aren’t able to tell where they stand. Disorganized finances can have severe consequences; In the short-term, you may end up paying hundreds of dollars in late fees and penalties. You may be digging yourself deeper into debt without even realizing it. In the long-term you won’t meet your high-level financial goals. Couples often end up re-hashing the same financial issues over and over again because they don’t have a way of tracking the decisions and progress they’ve made as a result of their arguments…er discussions. If your finances are not organized how can you ever have any hope of getting them under control?

The good news is that by taking one simple step you can start down the road of financial security and begin to get your finances in order. You can get a good overall view of your financial picture and establish a base from which you can build your financial future. It all starts with creating your financial binder.

What is a financial binder?

A financial binder is a place to keep all of your high-level financial information including important decisions and goals you’ve made. Instead of containing transaction-level, detailed information about your finances, it is a place for summary-level information about such things as bank accounts, bills, financial decisions, savings goals, taxes, and credit reports.

Your financial binder doesn’t necessarily have to be a binder. Any form of organizing papers into categories could technically work. However, there are certain advantages to using a binder.

1. Binders are easy to expand. You can always add more tabs or upgrade to a larger binder (up to 5 inches).
2. Binders are easy to customize. You will inevitably want to create categories and information unique to your situation.
3. A Binder keeps items in one place and prevents them from getting misplaced.
4. Binders are portable. My wife and I sometimes like to review our financial progress during quarterly getaways. Being able to take our binder and go makes it easy to conduct these remote reviews.

Paper vs. Digital systems

Many people ask why they shouldn’t keep their binder information in digital form. Although your binder is paper based, many of the contents may be created digitally. Simply take the last step of printing out the documents after you work on them and you’ll have a nice backup. Whenever you print a document, be sure to record both the date printed and the digital location of the file for later reference. While digital files do have advantages I discourage the use of exclusively digital storage for the following reasons.

1. The “did I change this?” factor. By printing out a hard copy of digital files, you put a stake in the ground so to speak. You establish that “on this date, I made this decision” rather than second guessing if you’re looking at the most recent version of a document.
2. Backup. If you haven’t had a hard drive crash on you yet, it’s just a matter of time. Most people don’t have adequate digital backup plans.

Here’s a handy tip: To make it easy to cross-reference your paper and digital files, alter your Microsoft Word or Excel settings to automatically print the date-printed and the digital location of each file. In either program, from the menu select “View — Header and Footer.” You can then configure exactly what you want to appear at the top and bottom of the page. You may have to play with this a little to get exactly the effect you want.

What should a financial binder contain?

Net Worth Statement

Ok, let’s get the big one out of the way first. Even though your net worth statement will probably only be less than a page long, it needs the most explanation. A net worth statement is the best way to track your overall financial progress in one quick view. It simply shows all of your assets minus all of your liabilities. If you’ve never created a net worth statement, don’t make it too complicated at first. Start with just the basics at first and you can make it more detailed over time.

Step 1.

List all of your assets, one per line, along with the value for each. For your first version, just list your bank accounts, investment accounts, and a rough estimation of how much your house is worth. If you have no idea how much your house is worth, just put down the amount you paid. Every time you update your statement, make an improvement – add the value of your cars, refine the calculation of the value of your home based on other houses for sale in your neighborhood, or start adding possessions that have significant value such as jewelry or electronics. Adding your possessions provides a nice side effect – it can act as a record for home owners insurance if items are damaged or stolen.

You can use online services to refine the value of your assets. Use Yahoo! Auto (auto.yahoo.com) to estimate the value of your vehicles. Zillow.com will give you an estimated value of your house (accuracy can vary wildly so you may need to do a gut check) or you can use RealEstate.com to find the asking price for similar homes in your area. Search for possessions on eBay.com to see what the market price is for similar used items.

Once your list of assets is complete, sum the individual amounts to show your total assets.

Step 2.

Next calculate your liabilities. For most people this will simply be a list of your debts. List each liability – each loan, for example – and the amount on a separate line. Sum your total liabilities.

Step 3.

Now subtract your total liabilities from your total assets and, voila, you have your net worth! The higher the number the better. Hopefully it’s not negative. This is a valuable report to keep because you can see your progress over time. Sometimes it’s hard to feel like you’re making progress, even if you’re saving or paying down debt aggressively. Your net worth statement shows the concrete effects of your efforts.

You should update your net worth statement at least once every quarter (three months) but if you’re financial situation is in a state of flux, update it monthly.

Monthly Budgets

Every time my wife and I discuss and finalize our budget each month, we print it out, sign it, and file it in our financial binder. This may sound a little strange but it’s amazing how this helps us avoid arguments in the future. It’s too easy otherwise to second guess if this was really the budget we’d talked about. Having a list of previous budgets easily on hand makes it much easier to plan for future months or compare if expenses have gone up or down over time.

A list of bank and investment accounts (including passwords)

Keeping an updated list of all your accounts is a great reference tool. I’m always amazed how easily people forget that they have open accounts they forgot about. This list will help keep your accounts up to date. It’s also a great place to list your usernames and passwords for each account.

A List of your bills

This list is one of the most important. It will help you to pay your bills on time and make sure there’s enough money in the respective accounts to pay your bills. Specifically, you’ll want to track:

• The name of the company the bill is from.
• When each bill is due. Be sure to list if the bill is due on the same day of each month (the 15th of each month) vs. every x weeks (every 4 weeks).
• The amount due for each bill. If the amount varies from month to month, list the range – the maximum and minimum you’ve had to pay in the past.
• How each bill is paid. Do you pay with cash, check, credit card, or using a direct bank transfer? If you pay the bill with a check or bank transfer, list the bank it’s paid from.
• Usernames and Passwords for each account (if applicable).

A list of decisions you (and your spouse) make about finances

This is where most of the customization will take place. List anything you think is important. Whenever you have a financial discussion with your spouse, take a couple of extra minutes and write down what you talked about or decided. This will keep you from having the exact same conversation over again. Writing it down doesn’t mean you can’t change your opinion, but will simply act as a starting point for future discussions.

Short, medium, and long-term savings goals

These should be three separate sections. These may take the form of simple lists or more involved calculations (e.g. planning vacation expenses). We often keep lists of our savings goals in excel spreadsheets and then print them out for the binder. This allows us to easily make changes and calculations as we alter the lists.

Short term goals would be things like household purchases typically under $300 or things that might take a few months to save for. Our list of short-term savings goals is the longest of the three and includes just about everything we want. It’s really our wish list of household purchases. When we have a little extra discretionary income, we’ll typically refer to this list to determine what to buy. This list also changes the most of the three. We commonly add and subtract items.

Medium term goals are items over $300 including things like vacations or items that take less than 5 years to save for. We also include in our medium-term list things like furniture and gift giving. In fact, we break down all the people we want to give to throughout the year and how much we want to spend so we can ensure we have the money budgeted when it’s needed. We do the same for vacations, breaking each vacation down into travel expenses, lodging, food, etc, so we know how much to budget. We typically refer to this list when we have a windfall such as a larger tax return or bonus.

Long-term goals are things that take over 5 years to save for including things like retirement and college savings.

Summarized Insurance information

If your insurance companies provide you with summaries of your coverage, use those. If not, try to summarize on your own how much coverage you have in each area. Include all types of insurance including health, disability, dental, life, auto, and home-owners.

This may be one of the toughest sections to flesh out. I must admit it’s where my financial binder is most lacking. If you’re not sure how much coverage or what type of coverage you should have, a certified financial planner should be able to help.

Summarized tax information

If your tax preparation software or accountant provided you with a summary of your tax return, keep it here. You could keep your entire return here if it’s not too large.

Credit Reports

Keep the most recent version of your credit report from each of the three major agencies: TransUnion, Equifax, and Experian. By law you are entitled to one free report a year from each company. To get your free reports, visit www.annualcreditreport.com.

Keep it safe

Your financial binder is such a great tool to help you get your finances under control, but it also can pose a risk. Having all your summary financial information in one place can make it easy for snooping eyes to see things they shouldn’t. Keep your financial binder in a safe place – a locked drawer or, even better, a fireproof safe.

Take One Step TODAY!

Getting started organizing your finances isn’t hard. It just takes consistent effort over time. Don’t try and enter all this information at once. Do one thing a week…or even one thing a month. The most important thing is to get started TODAY! Take one simple action – if you don’t have a binder, tabs, or a labeler, go buy them. If you already have the materials, put in the information that’s readily available to get started. Every time your review your finances, add one more thing. You’ll often find that taking the first step is the hardest, then you’ll be naturally compelled to take more as you start to get financial clarity. Get started today down the road to financial control.

This article was originally written for Organize Magazine. A shortened version of this article previously appeared in Organize Magazine.

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Lead vs. Lag indicators

One of the major distinctions they made in the training was between lead and lag indicators. These are measurements you can track that help you achieve your goals. A lead indicator is something that can be tracked and acted upon in the moment and that predicts the outcome. A lag indicator is something that can only be tracked after a result has been achieved. Lag indicators don’t predict an outcome, but rather show the results of an outcome that has already occurred.

The main point here is that a lead indicator is also something you can control in the moment whereas a lag measure is something you can’t control because it’s already happened.

Lead vs. Lag example

Confusing? Here’s an example. Let’s say your son has a goal to save $5 for a toy at the end of the month. In this situation a lag indicator would be how much he saved last month. It already happened and can’t be changed. It also won’t predict how much he’s going to save this month. In other words, it can’t be acted upon. On the other hand a lead indicator could be how much he puts in his piggy bank every day. This is a measurable indicator that your son can influence and act upon and will predict how much he has saved at the end of the month.

As you can see from this example, it’s important for us to identify the lead indicators for reaching a goal because they help us act and to achieve the goal.

Applying lead and lag indicators to personal finance

So how does this apply to personal finance? I often see people using lag indicators to try and predict future performance within their finances. For example, how many of you have wanted to figure out what you are going to spend next month on groceries by looking at expenses from last month? We’ve all done it and yet that is a lag measure. How much you spent last month may have nothing to do with the expenses you’ll incur next month. Further, you can’t act to change what you spent last month. Looking at your finances this way is almost useless in helping you curb future behavior.

Instead, what are some lead measures that could help you predict next month’s grocery spending? What measures will help you achieve a goal of spending a certain amount and no more? There actually could be many different lead measures, but let me suggest a few possibilities.

Lead measure examples

One lead measure could be how many times you go to the store every week. By going to the grocery store less you may spend less which would help predict how much you’ll spend by the end of the month. This probably wouldn’t be the most effective lead indicator, but it’s a start.

Another, slightly better lead measure could be creating a spending plan for your groceries. By outlining how much you’re going to spend on what, you can predict what the total expense will be and such a plan will influence your behavior. While this is a much more effective lead measure and will be more highly predictive of the final outcome, it would require a lot of time and work.

Probably my favorite lead indicator for how much you’ll spend on groceries next month is how much cash you take out to spend on groceries. Of course, this assumes you are exclusively on a cash basis for groceries and that you wouldn’t purchase groceries on a credit card. If you take out $400 for groceries and only spend that cash, you have a perfect lead measure that predicts you will spend $400. Cash serves as the perfect feedback loop. Once the cash is gone, it’s gone. Cash is also a great lead indicator because it can influence your behavior in the moment. If the cash is running low, you may reconsider purchases or decide to purchase some items next month if you don’t really need them yet.

Don’t be deceived by “quick lags”

In contrast, let’s look at using credit cards to measure spending. Many people would consider using credit cards to be a lead indicator because they can look up their account at any time and see what they’ve spent. However, using a credit card in this manner is NOT a lead indicator. Instead it’s what they call a “quick lag.” A quick lag is something that can seem like a lead indicator, but has already occurred and can’t be influenced.

The best comparison is someone trying to lose weight. It may seem like weighing yourself daily is a lead indicator, but it’s actually a “quick lag.” Why? When you weigh yourself, you can’t immediately change the results. There is nothing actionable about weighing yourself. Your weight is the result of decisions you’ve already made and can no longer control.

Looking at your credit card spending at the end of every day is the same way. You can’t go back and change what you spent. Your spending is a lag indicator showing what has already happened and it can no longer be acted upon.

Now I will agree that if someone were to look up their account before every purchase to see how much they’d spent in a certain budget category, it could be a lead measure and could influence behavior in the moment. But that is not a common behavior nor is someone likely to go through the hassle of doing so.

How to create your own lead indicators

So how do you create your own lead indicators to help you reach your financial goals? There’s no one clear answer to this question. Identifying lead indicators can take some creativity and can be a fun process. Here are some guidelines that will help.

Characteristics of lead indicators include the following:

• they are forward-looking and predict future performance
• they predict or contribute directly to achieving a goal
• they can be influenced or changed in the given moment

Characteristics of lag indicators include the following:

• they are backword-looking and measure something that has already occurred
• they can not be changed or influenced

Try looking at the measures you use to control your finances and see if they are lag or lead indicators. Can you change or improve them to be more effective? What behaviors or actions are predictive of how much you spend? How much you save? By re-evaluating your system within the framework of lead and lag indicators, you may have some useful insights that will help you achieve your goals more quickly and easily.

What measurements do you use? Leave a comment and share what measures have worked best for you.

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Credit collection practices

In week 12 of Financial Peace Universtiy, Dave Ramsey addresses credit collection practices and how to create a plan to deal with creditors. This is not an area I’m familiar with so I can’t add much of my own opinion. Hopefully those of you dealing with creditors will find this information useful. If you’ve had experience dealing with creditors, please post your experience and any advice in the comments.

It’s better not to go into bankruptcy, but rather to create a plan.

Dave’s first piece of advice is that you’re better off dealing with creditors than going into bankruptcy. If you have a clear plan and communicate that to your creditors, you can make it through the experience.

Collectors are not professionals. Don’t let them manipulate you into thinking they are.

Dave mentions that the average turnover for a collections agent is 90 days. It’s literally a revolving door. This helps you put things in perspective about who you’re talking to. It’s not an intimidating professional in a suit and tie, but more likely some tween in a tee shirt and jeans who won’t even be around next month.

A collector agent’s first rule is to evoke emotion (fear, anger).

Collection agents use scare tactics to manipulate you by evoking anger and fear. If they can get you to react strongly, you’re more likely to take action. Beware – This will lead you to make non-logical decisions that won’t be in your best interest. For example, in the heat of the moment, you may reason “I’ll pay this off to show you and get you off my back.”

Take care of the “four walls” before paying creditors.

Take care of your necessities before paying creditors. Dave defines necessities as the “four walls” – food, shelter, clothing, and transportation. In a previous session Dave tells a story about when he had creditors coming after him. He and his wife ordered their budget according to needs and drew a line on the paper after the “four walls.” When the creditor called, Dave told them “I’m sorry, you’re below the line.” The creditor asked “well how do I get above the line?” Dave replied “You be nice next time you call.”

Creditors have rules dictating how they can act. Don’t let them break those rules.

In 1977 the government passed the Federal Fair Debt Collection Practices Act dictating how collectors can behave.

Here are some things to look for:

• Creditors can only call between 8 AM and 9 PM.
• You can send a certified letter to your creditor with a return receipt stating they are not allowed to call you at work. If they do so, they will then be violating federal law.
• They can’t use gestapo tactics. Dave tells a story about a collection agent who sat in the debtor’s driveway and threatened him when we got home. If the collection agency is using such tactics you can send a cease and desist order. But be warned, doing so could trigger a lawsuit.
• No collector can confescate your bank account without suing you. If they say they can, they are lying. However, they can do this with student loans because there is such a high default rate.

Create a plan for paying your bills.

The main way to deal with collection agencies is to create a plan and communicate it to the agencies.

If you can’t pay all your bills:

1. Take care of your needs first
2. Create a Pro-rata plan in which you pay your creditors as a percentage of how much debt you have with that company. For example, if you owe one creditor 25% of your total debt and another 75% of your total debt and you have $100 a month to pay down debt, you would send the first creditor $25 and the second $75.
3. Send a cover letter with copy of your budget every month along with your payment.

Communication is key in dealing with creditors. If they see you’re making progress and have a clear plan, they’ll be much more confident that they’ll get paid and will be less likely to pester you.

The number one catalyst of filing bankruptcy is pressure from collection agencies. If you communicate excessively they probably won’t sue (although they could). A proactive approach is the best.

Settling debt for less than the full amount.

If you don’t have enough to pay a debt you can ask for “settlement in full.” This means you offer to pay less than the full amount you owe immediately if they will consider the debt paid. If they agree, make sure you have a written agreement. This is a less desirable approach since you should ideally pay whole debt (you do owe it). It also will show as a gray mark on your credit report (which is better than showing as a black mark). Also, if you receive a settlement in full, the amount of the debt you don’t pay off is taxable income.

Managing your credit report.

Here are some useful tidbits to help you manage your credit reports.

• Financial accounts are taken off your credit report every 7 years from last report. Bad debts stay on your credit report because they continue to be reported. The sooner you pay them off the sooner they will be removed.
• Keep track of your credit report. 50% of people have errors on their credit report. 37% have major errors that can make it hard to get a job or loan. Check your credit report once a year. You are entitled by law to one free credit report a year from each of the three major credit reporting companies: Experian, Equifax, and TransUnion. Get your free credit reports at AnnualCreditReport.com.
• The credit bureau is required to remove inaccuracies within 30 days of you reporting it unless they prove the inaccuracy is correct. If they don’t remove the inaccuracy you can have them take off the entire file (Dave wasn’t clear on this point but it sounded like you could actually have the entire financial account removed from the record).
• You can contact the credit bureaus to prevent you from receiving pre-screened marketing offers from financial institutions. You can call each company and follow up with certified mail to each of 3 credit bureaus. If you request a block by phone it lasts for two years. If you request a block in writing, it lasts forever.

The spiritual side of managing your finances.

Dave wraps up Financial Peace University in week 13 by talking about the spiritual aspects of managing money.
I know many people give Dave a lot of flack for talking about spiritual matters, but it’s hard to deny the impact of having a charitable mindset. I personally have had many positive experiences giving funds for charitable causes and have seen miraculous results. If nothing else, the idea of sharing your wealth is healthy from a psychological perspective.

Dave points out that we shouldn’t just try to gain more money for the purpose of holding on to it. Money is just a small piece of life and isn’t the source of happiness. By using money to help others, we can keep money in its proper place and maintain a healthy attitude towards material gain.

Giving money to worthy causes helps our relationships and increases our wealth.

Dave advocates giving a portion of your income to charitable causes. This helps you release your tight hold on money and helps it flow to those who need it most, including to yourself in times of need.

We are happiest and most fulfilled when giving and serving. Giving is:

1. A reminder that the lord owns all. We are just stewards.
2. Praise and worship. We show our attitude towards God when we share our money with others. It’s a form of praise.
3. Spiritual warfare. Giving freely of your wealth can spiritually protects you against both spiritual and temporal harm.

Dave offers the following guidelines for sharing your wealth.

1. Give 10% of your income
2. Give off top. Budget your charitable giving first. Don’t wait until you’ve budgeted all your categories or you won’t have anything left.
3. Give offerings in addition to tithes. When possible give above and beyond the 10% tithing.
4. Never give with the motive of receiving in return. If you give with the wrong motive, you won’t receive the corresponding blessings
5. Financial peace is about understanding. By putting money in the proper place and perspective, you can obtain financial peace. It’s not about how much money you make or how much “stuff” you have.

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Myth 1: Financial aid means grants and scholarships. Truth: Financial aid includes scholarships and grants (don’t have to be paid back) as well as federal loans. Loans can be subsidized and unsubsidized, but either way there is a cap on the interest rate–saving big bucks over the long term. Some jobs after college offer loan-forgiveness programs.

Myth 2: My assets (home and retirement savings) will prevent me from getting a need-based loan. Truth: The home you live in and retirement plans are not included when determining how much aid you can get under federal rules. Private colleges may use a separate formula, but do not include retirement savings.

Myth3: I should go with the lender preferred by my college financial aid office. Truth: Shop around and read the “fine print.” What looks like a good deal upfront might include an origination fee, or heavy penalties for missing a payment.

Myth 4: I’m doomed if I have two kids in college at the same time. Truth: You are likely to qualify for more aid.

Myth 5: The federal aid process follows a strict formula and my situation will never be given special consideration. Truth: College aid officers have the authority to make adjustments on a case by case basis. Documentaiton will be required.

Myth 6: Our child is likely to receive many private scholarships. Truth: Nearly all financial aid officers agree that parents overestimate the amount of scholarship and grant money children will receive.

Myth 7: The 529 college savings plan is bound to be the best for me. Truth: Shop around–be sure to look at fees.

If you are researching college financial aid, be sure to check out this post by Anna Leider.

After reading these articles, my biggest question is: Have parents always footed the bill for college? It never occurred to me to ask my roommates how they were financing their education; I only know that at least half of them worked. My parents paid my first year of room and board, but after that I was on my own. Just the idea that they would have used their retirement or refinanced their home to pay for my education seems crazy to me.

Has a college education become an entitlement? Even at the expense of the parent’s financial future? We live in a land of opportunity, and some believe that our country stays strong because life isn’t handed to us on a plate. We believe in hard work, and the self-made man. By giving our children everything, do we rob them of the chance to struggle, work hard, and fulfill their potential?

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Financial management principles are the same for millionaires and low-income-earners alike. Certainly the numbers your dealing with will change, but the basic principles and processes are still the same. In fact, by following sound financial management principles and optimizing your frame of mind, you can accelerate the process of building wealth and know how to keep it when you arrive. Here are 7 ideas that will help you think about and manage money like a millionaire, regardless of your income.

1. Be who you want to be. Earning more money amplifies who you are.

I’m going to borrow my first idea directly from my lunch partner who said “earning more money really just amplifies who you are.” While that might seem initially like a good thing, it really is a double-edged sword. For some, becoming a millionaire leads to a life of over-indulgence and decay. We catch glimpses of this in the popular media and entertainment world; drug addiction, abuse, and infidelity. Blemishes in your character will still be there if you become wealthy. Don’t fool yourself into thinking that having more money will solve your problems. It could make them worse.

On the other hand, if you have a mindset of serving and making a postitive contribution to your family and community now, you will be able to manifest those contributions with even greater power and effectiveness when you’re rich. By focusing on the positive contribution you want to make in your life, you will be prepared to expand and amplify your contribution as you earn more money.

2. Build your relationships. Earning more money amplifies your relationship dynamics.

Let me tell you a secret: earning more money does not solve your relationship problems. Even though my income has increased significantly over our 10 years of marriage, we still tend to argue about the exact same financial issues. If you have bad arguments over $100, just think of the how intense they will get arguing over $10,000 or $100,000. Working out your finances as a couple isn’t about the dollars, it’s about your values. By making all your spending and budgeting explicit, and by working as a team, you can address those values differences before they get out of control. As you become more wealthy, you’ll have a trusted, agreed-upon system in place to manage your increase.

3. Spend money consciously, but on a macro level.

Even as a millionaire you should know where every dollar is spent, but you don’t necessarily need to know line-item detail. Rather, you need to know how much is spent within broad, macro-level categories. Millionaire’s still need to decide how many thousands of dollars they’re going to spend on the “blow” category every month in relation to other expenses. Their blow category may be able to fund a new truck while mine funds a new book, but the decision is the same.

I recently read an article at StevePavlina.com where he talked about his goal of becoming a millionaire. He mentioned that to get in the mindset of a millionaire he would carry hundreds of dollars in cash in his wallet and not fret over $100 purchases. At first glance, it seemed that he was spending his money irresponsibly. But the fact is you can spend some of your money frivolously and still have total control over your finances. The trick is to simply decide how much you’re willing to blow in relation to the rest of your finances.

If I were a millionaire I may very well give myself and my wife $1,000 in personal money every month. That leaves a lot of room for spending money any way I want, anytime I want. But looking at my finances as a whole, there will be some limit as to how much I’m really willing to spend this way.

4. Be generous regardless of your income.

If you want to become a millionaire, be generous now. Charitable giving seems to be a universal law that attracts abundance into your life. Scriptures have taught this principle for ages and even T.V. shows like My Name is Earl jokingly acknowledge the effect of good karma and the golden rule.

Many people deceive themselves thinking “once I have a lot of money, I will give generously to charities,” but don’t make even small charitable contributions today. If you have a hard time giving away $10 now, what makes you think you’ll be able to easily give away $10,000 when you’re wealthy?

Upon recieving some windfall money recently, my wife and I decided to allocate a few hundred dollars to “random charitable acts.” We already donate to our church regularly but felt that we’d like to be able to give to specific people as we felt inspired to do so. We hope this will put us in a mindset of giving. We can actively be aware of the needs around us and feel empowered to help others financially as needed.

How cool would it be to do this on a large scale? I’ve been inspired by Billion-dollar donations from Bill Gates and Warren Buffet to charitable causes and think it’s a great example of a person’s character amplified. I recently read about someone who just decided one day to go out in public and start handing out $20 bills to random people. It seems counter-intuitive, but the stronger you grasp money, the harder it is to attract it into your life. In contrast, the more generous you are, the more it will flow into your life.

5. Provide enourmous value at work (self-employed or not)

One characteristic most wealthy people I know have in common is that they are totally invested in their business. Whether they earned their wealth by starting their own business or by working for another business, they all are focused on adding enormous value.

Sometimes it’s easy to kick back and waste time when working for an employer. It’s easy to not feel personally invested. But by doing so you’re only hurting yourself. In every job there are possibilities to contribute above and beyond what’s expected. Those who do tend to expand their influence and are promoted faster. Treat your job like it’s your own business and you’ll find a level of enthusiasm you didn’t know existed. Looking at work through the lens of business ownership, you also may just find yourself aching to start your own business. Either way, you’ll be a happier person and will find that opportunities for advancement and wealth come to you more effortlessly.

6. Plan a “millionaire lifestyle” day.

Imagine what your day-to-day life would be like as a millionaire. Would you get up and go play tennis? Or would you sleep in as late as your want? How would you interact with family and friends? Would you still work but only on projects you love? Once you have a clear picture in mind, find a day you can take off work and do those activities. Of course, there may be restrictions on how much you can spend, but do as much as you can afford.

By actually doing what you think you’d do as a millionaire, you can take one small step towards turning your thoughts into reality. Some people may find that they don’t really enjoy the activities as much as they thought. If the reality doesn’t live up to your expectations, re-think things and try again. If you think you’d spend your time running a business, you could use your millionaire day as a way to take massive action towards starting that business. Don’t just do this once. Schedule a “millionaire lifestyle” day 2 or 3 times a year. Have fun and get a taste of the millionaire life.

7. Build a strong foundation and get ready for your finances to explode.

It’s easy for people to get overwhelmed by the enormity of the task of getting out of debt, paying off your house, and saving for retirement. But what most people don’t think about is that with a focused budget and a debt-reduction plan, there comes a point at which your debt and house are paid off and you’re already saving enough for a comfortable retirement. All of a sudden you’re in a position with no debt, no payments, and possibly thousands of dollars a month of disposable income. Overnight, your famine turns into a feast. That’s when life gets really fun.

While we’re still working on paying off our house, we have already started experiencing this shift. It used to be that we struggled to fund luxury categories like gifts and vacation. Bonuses and cash gifts were used to fund categories that we knew we wanted to budget for but didn’t have enough month-to-month income to fund. Over the past couple years, we’ve been able to fully fund these categories and windfall money now goes mostly straight to debt reduction. Soon our second mortgage will be paid off and we’ll be putting that several hundred dollars a month (our payment plus snowball) into our first mortgage. Once the first mortgage is paid off, we should have over $2,000 a month to play with. And that isn’t even taking into consideration any income increases I may have over time. $1,000 a month in personal money doesn’t sound all that far off after all. And I won’t even need to be a millionaire to get it.

8. Recognize your wealth now to attract more into your life.

If you’re reading this blog, chances are you’re more wealthy than the vast majority of the world. Sometimes it’s easy to forget that simple fact. You are wealthy. I recently listened to an audio program by Dr. Wayne Dyer where he mentioned that if you were to compare the population of the earth to a village of 100 people and apply the same statistics you would see that 6 of the people (all from the United States) have 59% of all the wealth of the world and that only 1 person would own a computer. If you have food in the refrigerator, clothes on your back, a roof over your head, and a place to sleep, you are better off than 75% of the world’s population.

By focusing on the wealth you already have in your life, you will attract more of it. If you only think about scarcity and what you don’t have, that’s exactly what you’ll attract. To create wealth, you have to think creatively.

Be a millionaire is a frame of mind. If you’re only after money, you’ll always want more and will never have enough. If you’re after happiness, you can find it at any moment by changing your focus. By following these guidelines you’ll be able to experience just as much joy and satisfaction as any millionaire. “Money can’t buy me love” nor can it buy happiness.

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My wife graciously volunteered to write this post and it’s her first post on GFD so be sure to give her extra praise and adoration!

It’s that time of year again. Rushing around, making last-minute decisions. I’m not talking about Christmas shopping. It’s the annual employee benefits festival—you come home with all sorts of insurance papers, medical, dental, life, and (my favorite) accidental death and dismemberment. It’s not enough that you still have Christmas shopping to do before you get ready for holiday traveling—you are supposed to find the time to make important financial decisions as well.

To help you on your way with minimal loss of holiday cheer, my husband has asked me to write a helpful guide to cafeteria savings plans. Even with the risk of making my debut on his site as “the cafeteria lady,” I have agreed.

How Cafeteria Plans (FSA) work

Cafeteria plans are a great thing. By using them you avoid paying taxes on medical expenses. At the beginning of the year, you determine how much you expect to pay in medical expenses for that year. Your employer deducts pre-tax money from each paycheck, and puts it into a cafeteria plan savings account. You pay for medical expenses up front, and then submit a reimbursement claim, which is paid out of your savings account.

For example, last year we put $750 into our cafeteria plan. His company deducted $31.25 from each paycheck, before taking out taxes. As we spent money on medical expenses, I collected the receipts and submitted them to the cafeteria plan company. Within a few days the reimbursement was direct deposited to our bank account.

How much can you save by participating in a Cafeteria Plan

The first question you may have—is it worth it? Well, I figure we saved at least 30% by using our cafeteria plan*, so this year it saved us $225. Perhaps it is not worth hounding your spouse for the Walgreen’s receipts for a couple hundred dollars. However, several years ago we knew I would be having major dental work that would not be covered by insurance. That year we set aside $5000 (the maximum amount allowed), and saved over $1500. Definitely worth it!

Other benefits of a Cafeteria Plan

Another benefit (depending on how your plan is set up) is that you can get reimbursed for expenses even if you have not yet paid that much into the savings account. For example, say in January we have made two payments into our plan, totaling $62, when I break my foot and rack up a $300 emergency room bill. I can be reimbursed for the full $300 immediately.

I have also found that for professional services, I never have to pay the bill out of pocket. My cafeteria plan will reimburse me with an EOB (explanation of benefits, that lovely, confusing non-bill that your insurance company sends you). So, when I had expensive dental work done, my dentist billed my insurance company. I took the EOB (which said they would not pay a red cent), submitted it to the cafeteria plan, and received my “reimbursement” within a few days. I used that money to pay the dentist.

How to estimate your medical expenses

Great! So you’ve decided that you want to use a cafeteria plan. The next question is how, in the midst of holiday madness, do you determine how much to save. This is important because any money you do not get reimbursed for is lost. So, if you plan on $750 in medical expenses, but only have $500 in real expenses throughout the year, you lose that $250—basically you lose your savings.

If you keep meticulous records, this step is easy. Look through your previous years’ medical expenses and see how much you spent—plan on saving that amount. Perhaps add any large expenses you know are coming your way (having a baby, that long-awaited hip-replacement).

For those who didn’t track every expense for the last several years, here are some guidelines:

1. Know what expenses qualify and identify which of those expenses you typically incur

I have been surprised to find that alternative healer fees, including acupuncture and hypnosis, are reimbursable. So are chiropractor visits, some over-the-counter medications, and weight-loss program fees (with a doctor’s note). Most plans will have a handy list of what expenses qualify. If not, you can refer to the IRS website or see the links at the end of the post.

2. Determine what you spent last year

Look at your last medical and dental EOB’s—many will show the total you have spent on medical visits/services throughout the year. This won’t include all your medical expenses, but it’s a start.

3. Calculate routine expenses

Eye exams, contacts, birth control pills, and any other prescriptions qualify for reimbursement. Also, those expecting a baby can plan on many well-baby visits in the first year (at 2 days, 2 weeks, 2 months, etc.), so multiply the number of visits by your co-pay.

4. Plan for non-routine expenses such as surgeries, babies, major dental work

It’s definitely worth calling your doctor’s or dentist’s office for a cost estimate. Ask to speak with the person who does the billing. I did this, and she told me how much my insurance company will allow for certain procedures. Then I looked at my plan benefits, and figured out that we will pay our deductible plus 20%. Now I have a really good ballpark figure for what we can expect to pay.

Add these figures up, and you’ve got an idea of how much you will probably spend in the next year. Now, start saving receipts, and start saving money!

Additional Resources

• WageWorks.com – Flexible Savings Account Savings calculator (I thought this was the most useful of the bunch)
• WageWorks.com – Qualifying Expenses Summary (an incredibly useful and thorough summary of expenses that qualify and don’t qualify)
• MyUHC.com – FSA expense calculator (click on “Calculate FSA Spending”)
• MyFlexResource.com – A very useful FSA FAQ (that’s a lot of TLAs, three-letter acronyms)
• Financial Planning Toolkit – Comparison tool (participating vs. not participating)
• Sentinel Benefits – Another comparison tool

*Savings of 7.65% FICA (Social Security), 7% State, and at least 15% in Federal taxes

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Greg over at StackBacks.com has a unique and GTD friendly way of managing cash involving envelopes, index cards, and paper clips. His method is a great way of divvying out your cash so you don’t spend it all at the beginning of the month, leaving you living like a pauper at the end of the month. It’s essentially a sort of cash tickler file (look under “Tools and techniques”).

Please let us know how you manage your cash!

Cash Allowance File

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Christmas tends to be a very stressful time financially. Most people grossly underestimate how much they are really going to spend and often take on additional debt to pay for all the extra goodies. With a little planning and forethought, you can still have a full tree without taking on additional debt. Wouldn’t it be nice to not worry about money this holiday season?

1. Decide ahead of time how much you plan to spend on whom.

The first step is to create a spending plan on paper (or a spreadsheet) before you start shopping. By looking at all of your planned gift giving at once, you’ll make better decisions once you get into the thick of holiday shopping.

Sit down together with your spouse and write out a list of everyone you can possibly think of that you would want to give gifts to. Ideally, do this in a spreadsheet. Here’s a list to get you going.

• Immediate Family
• Extended family
• In-laws
• Cousins
• Aunts and Uncles
• Grandparents
• Friends
• Co-workers
• Neighbors
• Community/Civic Acquaintances
• Church members
• Include any people you want to send a Christmas card to

Keep adding people, even if you’re not sure you’ll give them a gift. The idea is to empty your brain and make sure you don’t experience the “oh, I forgot to get so-and-so a present” phenomenon. One of the reasons people overspend during the holidays is because they only budget for their family. Most people realistically buy many friends and acquaintances gifts as well.

Once you’ve completed your list, record how much you think you’ll spend on each person. If you don’t plan on buying a gift for a person listed, simply put $0. At this point, don’t worry about the total, just list what you’d like to spend. You’re estimates will be much more accurate if you think specifically what you’d like to get for that person rather than just putting a random dollar amount. List off to the side the item(s) you plan to buy. Of course, this process will be more involved when estimating planned spending for family members and may require multiple entries for one person.

Now add all the amounts together to see the damage. When my wife and I did this exercise, we were unpleasantly surprised at the total. It was way more than we were planning on spending.

Compare the total with the amount your were planning on budgeting for Christmas. Assuming the total exceeds your planning budget you need to either increase your budget or start cutting down your list. Keep reading for some great ideas at cutting your Christmas spending.

The whole point of this little exercise is to make your holiday spending explicit and conscious rather than spending blindly through the holidays only to find a very unpleasant surprise when the January bills arrive.

2. Give homemade gifts

It might seem cheap to give homemade gifts, but bare with me, they can be quite nice. When it comes to gifts for friends and acquaintances, it’s often the thought that counts more than the gift anyway. Here are a couple ideas.

• Cookie/Cake mix – We’ve received this gift several times and always enjoy it. You just take a canning jar and fill it with the dry mix in the right measurements to make cookies or a cake. You can use either a store bought mix or “homemade” ingredients (flour, sugar, chocolate chips, etc.). You can spruce it up by putting a bow around the jar. Or, let your kids be creative and decorate the jar their own way.
• Family history chart – We made our own 10 generation family history chart for my parents based on a design by Ancestry Circle. We printed it out on a poster-sized sheet and bought a $20 frame for it. It was a fair amount of work but was a meaningful and very unique gift. If you would like the template Adobe Illustrator file, send me an email. If you’re not looking to save money, Ancestry Circle will print a custom chart using your family history GEDCOM file for a reasonable fee of $79.95.
• Make cookies or treats for neighborhood gifts. By simply giving a plate of cookies or brownies, you could give to all your neighbors for under $10.
• Personalized Stationary – One year we made homemade stationary using Microsoft Word and a printer. We bought a ream of fancy paper and a box of matching envelopes. We had the paper cut in half at Kinkos and printed a design (using a word template) along with the person’s name on each sheet.
• Pictures make great inexpensive gifts for family members. Do your parents and grandparents have your most recent family photo? There’s probably nothing they’d rather have.
• Burn family photos or family history to a CD. Total cost: less than $0.10 each.
• Give homemade gift certificates. You can give an elderly person in your neighborhood a certificate to mow her lawn or shovel her snow. Give a certificate for free baby sitting to acquaintances with children. Give your spouse a certificate for a massage. Your creativity is your only limitation on this one.

3. Shop online and use RSS feeds to find great deals

It’s still not too late to find great deals online in time for Christmas. Learn how to use RSS feeds for shopping to be notified when an item you want goes on sale. Many online stores allow you to make purchases just days before Christmas and still have them shipped in time for the big day.

4. Buy used when possible

Using RSS feeds makes it easy to find items for sale on eBay or Craigslist. This is particularly great for younger children who don’t care if an item is used. Would you rather pay up to $50 for a Little Tykes basketball hoop or $5? For adults, electronic items can make great used gifts. People upgrade so often, you can find great deals on computers or mp3 players that are still in perfect working condition.

5. Give your “Favorite Things”

My father started this tradition and my wife and I have adopted the idea. By giving inexpensive items that you love and use everyday, not only will the gift be more meaningful, but the recipient will think of you whenever he/she uses the gift. By giving a gift with meaning, you deemphasize how much the item cost. Last year, my sister gave me a little packet of some of her favorite things that included her favorite gum, mints, and beverage. I loved it. It was neat for her to share those things with me and I could have cared less how much she spent.

6. Find great children’s gifts for under $5

Target, Wal-Mart and any dollar store have some great gifts for under $5 that kids love. Target and Wal-mart both have great generic-brand toy packages in $5, $10, and $15 increments. These toy sets include balls, play doctor kits, die-cast cars, doll sets, toy trucks, a velcro target and balls, and train sets.

7. Tell your family you’re trying to get out of debt

Let your family and friends know that you’ll be giving small gifts, or no gifts at all, because you’re trying to avoid debt during the holidays. Your family and friends will respect the fact that you’re aggressively trying to get out of debt and you’ll get the added benefit of their support. Of course, only do this if it’s true.

8. Make an agreement with others about gifts

The fact is, your friends and family are probably stressing about Christmas finances just as much as you are. Approach them with the idea of making a pact to not exchange gifts this year or to keep the gifts within a certain dollar amount. You’ll both be relieved to not have high expectations hanging over your heads about what to give and how much to spend.

9. Buy them Total Money Makeover for $10 a piece

Dave Ramsey sells his hardcover “Total Money Makeover” books for $10 a piece if you buy a pack of 10. Note: the link to his online store was broken as of this writing. I’ll keep checking and post the link when it’s working. While it might seem like a lot to drop $100 on books, you’ll actually be giving a $17 gift for only $10 while taking care of 10 people on your gift-giving list. Plus, books make the best gifts in my humble opinion.

10. Use cash and/or save receipts

I’ll admit that it’s tough to use cash when you’re making so many purchases in such a small time frame. Credit and Debit cards really are more convenient. But if you really want to guarantee you’ll spend within your means, you’re best off dividing up your Christmas funds and giving cash to each family member. Once they’re out, they’re done spending.

If paying cash is not realistic for you, be sure to save all your receipts. Empty the receipts from your wallet at the end of a shopping day and put them in an envelope for safe keeping. Before you wrap your gifts, you can review how much you spent and, if you’re over budget, you can decide which gifts to return. With all the gifts in front of you, it’s easier to make trade-off decisions about which ones to keep. When you’re at the store in a shopping frenzy, it’s much harder to make such a level-headed decision.

Decide not to go into more debt this holiday season

Most importantly, make a decision along with your family not to go into additional debt during the holidays. You don’t want to be “experiencing” Christmas long after it’s over and the thrill of new toys has faded.

What do you do to save money during the holidays?

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Now there’s a better and more effective way. By combining the magic of RSS feeds (don’t worry, I’ll explain) with your favorite shopping sites, you can now have your own virtual shopping servant that will happily and gladly inform you of the exact items you’re looking for at the best prices. You can even give your servant a name if you please (Reginald the Shopping Servant, RSS).

Let me give you an example. My wife and I are starting our holiday shopping early and want to get our 2 year old some choice items. In his case, whether the item is new or not doesn’t matter. Two of the items we’d like to get are matchbox cars and a Thomas the Tank train. When we search on Craigslist or eBay, we find these toys at great prices. But by the time we do the search, the items have usually been posted for a while and are already taken – especially the REALLY great deals. Instead of doing it the traditional way, we created a few custom RSS feeds. Now whenever a new post appears on Craigslist with the keyword “matchbox” in it, our happy servant delivers the good news and let’s us know instantly. BANG, we’re on the scene picking up the hottest deals in town…and at a discount.

You can use this approach to shop for new items as well. There are a number of sites that let you subscribe to RSS feeds for Amazon and Yahoo Shopping. Better yet, some sites allow you to create a single feed that tracks multiple shopping sites at once.

A great way to fill up the tree without breaking the bank

You may not like the idea of giving used toys. But if you were to buy only the newest, most expensive toys, you could easily go over your Christmas budget or go into debt. In many instances kids (or even adults) won’t care if the items are used as long as they work. My two-year-old could care less. A sword with a small scratch on it is still a sword. But even if your family members do care, by combining new and used gifts you can get one or two newer items, but still fill up that empty space under the tree with quality used gifts at bargain basement prices.

Ready to get started? Let’s jump right in.

What is an RSS Feed?

RSS (Rich Site Summary or Really Simple Syndication) is a technology that notifies you whenever information on a website is updated via an RSS Reader (sometimes referred to as an aggregator). An RSS Reader is similar to an email inbox. There you can see all the new content of websites that you “subscribe” to. It’s like an email inbox–people send you messages and you log in and check your email. Similarly, with RSS, it’s like a site sends you notification when it has been updated.

RSS (Rich Site Summary or Really Simple Syndication) is a technology that allows content from multiple websites to be combined in one place. The Google Reader Blog has a useful video comparing RSS Readers to email. They explain that you wouldn’t individually go to Larry, Cindy, and Fred to get email for you; instead it all comes to your inbox. Similarly, with RSS technology you don’t have to go to individual websites for new content. Instead, you subscribe to “RSS Feeds” which automatically deliver new content to your RSS Reader–just like an email inbox for the web. You only have to check one source. In the case of online shopping, RSS Readers allow you to see the newest updates from Craigslist, eBay, or other shopping sites, all in one place.

Have you ever seen one these images on a website?



All they mean is that an RSS feed is available for that site. In fact, GettingFinancesDone has an RSS feed (see the left-hand navigation). The images reading “bloglines,” “MyMSN,” and “Google Reader” are just links that allow you to subscribe to a feed using that specific RSS Reader (again, I’ll explain).

How to use RSS to search for products

Enough technical stuff. Let’s get our hands dirty and get you using RSS as quickly as possible. We’re going to set up your first feed. Just follow the steps below:

1. Sign up for a free account at bloglines.com. You only need an email address to sign up. Login to your account and you should see something like this:

   

2. Go to your favorite shopping site. We’ll use craigslist for this example

.

3. Select your region (this step is unique to Craigslist).
4. Enter your search term. In this case, let’s look for matchbox cars for my son. Choosing the right search terms can be an art. See the “Search Tips” section below for hints on creating effective searches.
5. Now here’s where the magic happens. See the “RSS” hidden on the bottom right of the screen? Click that.

   

6. Depending on your browser, when you click the RSS link, you will either see a summary of the feed’s content or a bunch of gobbledy-gook (it’s actually xml). Regardless of what the page shows, you can just ignore it (if you really want to see what the gobbledy-good looks like, see the screen shot in the next step).
7. Now highlight and copy (ctrl-C, or right click and select “copy”) the web address (URL).



8. Login to your RSS Reader (Bloglines in this example) and paste the web address (URL) into the search box in the upper right hand corner.



9. Select “Subscribe to URL” in the drop down menu and click the blue arrow.



10. Bloglines will show you a screen with options concerning how you want the feed set up. You can designate a folder for the feed (you can also set up folders and move feeds around later). I usually leave all the settings untouched except for the “Display Preferences” which I set to “Complete Entries.” This will allow you to read the full entry in Bloglines as opposed to just seeing an excerpt. You can also choose if you want other people to be able to see your feeds or not. Click “continue.”

That’s it! You’ve just set up your first feed. Now whenever information is updated for that search term it will show up in your RSS Reader without you doing ANYTHING.

Now simply repeat the process for each search term you want to keep tabs on. You can create feeds for your entire holiday shopping list if you want. Every time a feed is updated, it will show on the left hand side of the screen in bold. After you read a feed, it becomes un-bolded. In the screen shot below you can see there are 6 new results for my “matchbox” search.

Other shopping sites with RSS feeds

Anytime you see “RSS” or one of the RSS images, that means you can subscribe to a feed. Now let’s look at some other shopping sites that offer RSS feeds and how they work.

• eBay

You’d think with a technology as useful as RSS, eBay wouldn’t try to hide it. On the search results page, you have to scroll all the way down to the bottom of the page to find the small RSS button.




• Spendfish

Spendfish.com has a number of preset feeds like “Deal of the day,” “Hot Deals,” and “Top Savings.” But even better, it has an Amazon.com feed builder that allows you to build a feed based on category, minimum and maximum price, minimum discount, popularity, and keyword. Are you drooling yet? You can zero in on just what you want.

• Baebo

Baebo allows you to search eBay, Amazon, and Yahoo Shopping all at once. And you can subscribe to RSS feeds for specific searches or customer reviews. I had to refine my matchbox search a little by clicking on a category before I subscribed to the feed (see screenshot).





• Yahoo! Shopping

Yahoo Shopping won’t let you subscribe to an RSS feed for a specific search term. Instead they have preset RSS feeds for a variety of categories including Most Popular Searches, Most Popular Products, and New Products.

• Clipfire

Clipfire.com is a unique take on social shopping. It searches across multiple shopping sites and gives priority to items that have been “clipped” by other users. The list of sites it searches looks quite long and includes both big players like Amazon as well as lesser known stores.

• StealDeals.net

Stealsdeals.net lists some of the best offers around from a variety of stores like Target, Borders, Circuit City, and Old Navy. With stealdeals.net you just subscribe to their feed of new deals rather than a specific search term. They tend to be a little technology heavy but you can still find great deals on books, clothing, furniture, etc. Their RSS link is little hard to see. It’s there under the tabs in the header.

• Techdeals.net

Techdeals.net is similar to stealdeals.net but very technology heavy. Great if you’re looking for computer gear or electronics.

About RSS Readers

Web-based Readers

Web-based RSS Readers allow you to login using any web browser. Most Readers I’ve seen are web-based. The biggest advantage of web-based Readers is you can access your feeds from any internet-enabled computer.

Software-based Readers

Software-based readers reside on your computer so you can only access your feeds from that computer. The advantage of software-based readers is speed and flexibility. They are often more highly configurable and have advanced features.

Which Reader should I use?

In my opinion the best free readers are Bloglines.com (web-based) and SharpReader (software-based). They both have plenty of features to help you manage your feeds. There are several other RSS readers available. In fact, many are integrated into tools you already use. Yahoo has an RSS Reader integrated into its email service. Firefox has an RSS Reader built into its web browser (as does Internet Explorer 7). Almost all the Readers are free so it’s worth experimenting around until you find one that fits you best. Some of the features that vary between Readers include:

• How frequently feeds are updated
• How you can be notified of new feeds
• User interface
• Options in managing feeds

If you don’t feel like experimenting, I’d stick with Bloglines. In addition to basic RSS Reader features, they have a notifier that you can download to your computer and will show you in Windows task bar (down in the bottom right-hand corner of your computer screen) when a feed has been updated. If you work at the computer for a large portion of your day, this informs you almost up to the minute when a new product is posted. The notifier will also allow you to set how frequently feeds are updated.

Exporting/Importing Feeds via OPML

If you want to try different Readers, it’s easy to export and import your feeds from one reader to the next so you don’t have to create them from scratch every time. Any Reader worth its salt will allow you to do so. The exported file will have an “.OPML” extension. You can also share feeds with others by giving them your OPML file.

List of Readers

Here’s a list of readers that is by no means comprehensive. You can find many more by doing a Google search for “RSS Reader.”

• Bloglines.com
• SharpReader
• Google Reader
• My Yahoo – Not Recommended. It doesn’t allow you to track which feeds you have and haven’t read.
• Yahoo Mail
• My MSN
• Firefox Live Bookmarks – When you’re on a site with a feed, you’ll see a feed icon in the url field.

Other uses for RSS

Do you visit the same handful of websites on a regular basis? Chances are most of them have RSS feeds. Using RSS makes it very quick and easy to check up on your favorite websites. RSS feeds are most commonly used for news sites and blogs, but as you can see there are unlimited possibilities for how they can be used.

Search Tips

Here are a few tips to help you create effective shopping feeds.

• Try to use unique terms for the product. If I’m searching for a Thomas the Tank train, the term “train” will pull up a lot of unrelated results. The term “Thomas” is a little more unique (although it still pulled up a lot of Thomas Kinkade results).
• For sites like Craigslist and eBay, you may want to use several terms for the same item. Again using the Thomas example I might set up feeds for “Thomas,” “Train,” “Thomas the Tank,” etc. You never know how someone will post an item or what description they’ll use.
• Use quotes for phrases. If I search for “Thomas the tank” using quotes, I will only get results when that exact phrase shows up. I’ll avoid results for Thomas Kinkade or water tanks.
• Use lots of trial and error. I would err on the side of creating more feeds up front rather than less. Then pay attention to which feeds produce particularly good or bad results. Delete the ones that don’t produce relevant results and keep the producing ones.

Related Links

• This article from lifehacker.com compares Bloglines to Google Reader. From Bloglines to Google Reader
• This article from lifehacker.com compares the RSS Readers built into Firefox 2.0 and Internet Explorer 7. IE7 still handles feeds better than Firefox 2.0
• This article from the “Back in Skinny Jeans” blog is a nice overview of RSS feeds. “How to Explain RSS the Oprah way”
• If you want more Craigslist goodness, check out this “Craigslist for Power Users” article on lifehacker.com

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Nevblog.com

This is another personal blog that discloses net worth. He’s a young entreprenuer.

NetworthIQ.com

This is a great site showing the net worth of individuals who register. You can search by age, income, occupation, education, and state. The one thing it doesn’t have is the ability to see averages. Instead, you kind of have to guesstimate as to how you compare.

All Things Financial Blog

Fortunately, even though NetworthIQ doesn’t let you see averages, I read this post from All Things Financial Blog containing statistics on average net worth based on age. From my guesstimate on NetworthIQ, it looks like the actual average net worth figures are quite a bit lower over all than what was posted on NetworthIQ. I’m sure people are more inclined to register with NetworthIQ and post their net worth if they’re proud of it. I woudl imagine it skews high because of this.

I enjoyed looking at these stats and comparing them to my net worth. I’m above the statistical average but comparing to NetworthIQ, I seem to be about on track with the others that posted if not on the high end.

I’ve been struck again with how constructive it is to compare net worth. I don’t think you should get overly obsessed with it. I also realize that it could be a somewhat depressing activity if you have a negative net worth. But it does produce some positive motivation for me. I’ve never seen people’s net worth so transparently and it’s a great way to make those otherwise impossible comparisons.

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