Ask Donna from MSN a question (Women of Personal Finance Spotlight)

[Lynn]

For this entire week (9/15-9/21), Donna Freedman from MSN's Smart Spending blog will be answering questions in our forums about personal finance, frugal living, and her writing career.

Donna and her partner in crime Karen Datko have done a great job reaching out to the personal finance blogging community. They are constantly scouring the web for great material and they are always generous about linking out to smaller bloggers.

If you are are a new blogger looking for exposure, you should definitely drop by the forum and tell Donna about your blog. (hint hint )

[nebula]

Hello Donna!
I love MSN Money and I have a link to it from my blog. I've been blogging since 2004 and reviewing personal finance books for the Dollar Stretcher since 2006ish but just recently I began my own blog, Mindful Money in Miami, www.mindful-money.blogspot.com.
I loved the part of your video where you say you furnished your entire apartment from thrift stores and dumpster dives, because until recent years, that was my method, too! We lived in a university town for eight years, so the dumpster finds were great! I still have many of those pieces. We also used green stamps (remember those? I loved those!).
I think I was more satisfied with those pieces than I have been with any of my new store-buys.

My question for you is: many original bloggers have now become book authors. Are you planning on writing a book based on your ideas?

If so, please send me a review copy! ha, ha! (Seriously though, I am still reviewing for the Dollar Stretcher in my Book Buzz blog, http://community.stretcher.com/blogs/tbb/default.aspx.)

I love reading blogs but there is something so satisfying about reading a book. (I am a university librarian, so you can see where I'm coming from!)

P.S. Good luck with your college career--my favorite patrons at the library are the returning students. Make sure and consult a Reference librarian and explain to them your situation, they can save you a lot of trouble and time by helping you in your research. I wish you the best,

Beatriz

[nebula]

P.S.
Not to snub Wisebread--thank you for hosting this discussion! (I also have a link to you from my blog!)

[khorrell]

Hi Donna! I've just found your site but I love it! I'm sure I will be sending my readers over as well.

Here is my question: What advice/suggestions/comments do you have for military families? We are fortunate that our income is usually pretty secure and we do have some good benefits, but the pay isn't high and there are often extra costs that come up as the direct result of military service. I welcome your response!

[Jason White]

Hi Donna! I'm a big fan of yours and Karen's work at Smart Spending, and have benefited from being included in a couple mentions from your site (for FrugalDad.com). I've got a personal finance dilemma that I would like your thoughts on.

I'm interested in "retiring" early (by retiring, I mean leaving the corporate rat race and doing a few things I've always wanted to be involved with--some for pay, some not). I have a 401(k) at work, but beyond contributions there should I max out a Roth IRA, and then save in taxable accounts, or skip the IRA and save strictly in low-cost index funds above the 401(k) so the money is accessible before "retirement" age? I know Roth contributions are available any time, but I may need to live off of some of the growth to fund my early exit from the corporate world.

Thanks for any advice!

[AlmostFrugal]

Hi Donna,

I don't have any particular questions, I just wanted to say that I very much enjoy reading your work; you're a great writer. I also wanted to thank you for featuring Almost Frugal (for my ABCs of Frugality post). Being recognized like that was a great boost, both personally and as a blogger.

[Myscha Theriault]

Hi Donna

Great to have you here with us at Wise Bread! I too am wondering if there is a book in the works for you . . .

[Donna Freedman]

It's almost 1 a.m. here and I should wait until after I've had a good night's sleep so that I have at least a chance of being compos mentis. But I can't wait. So...
Nebula and Myscha: Thanks for the kind words, and the vote of confidence about a book. In fact, I was recently approached by a literary agent who wants me to do a proposal that she can shop around. I've put her off for the time being because I've been overscheduled and overwhelmed (and fighting a couple of health problems) for far too long. I'm very excited about the possibility of doing this. I just need to figure out when I'd do it.
Almost Frugal:
Jason: I'm afraid I don't feel comfortable giving specific retirement/investment advice. I wish I could help you, but there are a lot of smart people out there who would do a better job at it.
Khorrell: I guess the advice I'd give to military families is the same advice I'd give to any family trying to make ends meet, namely, live below your means. That's just a little harder when you're living below military means. Some examples: Make a budget and stick to it (and bank any leftovers); build an emergency fund (a dollar at a time if that's what you've got); examine your "needs" to make sure they're not really "wants" in disguise; shop at thrift stores or start a clothing swap among other families; save spare change and bank it regularly; trade child care instead of paying a babysitter; revise your shopping to exorcise as much junk food as you can (expensive, empty calories) and focus on whole foods/staples (they take a little more time to prepare but are cheaper and better for you); cut the cable and/or limit TV severely, and if possible do away with it entirely by getting free DVDs from the library (not only does TV promote inactivity, it subtly programs kids -- and adults! -- to consume mindlessly); and emphasize family activities such as game nights, walks, bike rides, Frisbee, etc. And, of course, read Smart Spending and other frugality blogs and click on the tags for your specific concerns/goals.
That all sounds like terribly basic advice, but you'd be surprised how new it seems to many people. Here's an example: When I did an article for MSN called "Join the brown-bag challenge," most of the people I interviewed had never sat down and added up how much they spent on daily lunches out. It simply never occurred to them. When they finally did, they were appalled at how much it cost them each month -- and each year.
Perhaps you could get a few other parents interested in the idea of stretching the military pay, sharing ideas and strategies. I wish you luck, and I also thank you for your service.
I hope to see more questions in the morning. For now, I'm conking out.
/dlf
P.S. I got my freezer today! It's a 5.5 cubic foot chest freezer that is now sitting to the right of the bureau in my bedroom. I paid $179.99 for it. There would have been a $65 delivery fee -- but I asked the owner of the building I manage if he would drive me to Sears, about four miles away, in his truck. He's a nice guy, so he readily agreed. I call this the Pickup Theory of Life: You don't need a truck, you just need to know someone with a truck. Similarly, I don't need a television, I just need to have my daughter tape things for me.
The building owner and his wife will be repaid at Christmas when I give them a basket of three kinds of homemade cookies and four kinds of homemade jam.
As to why I bought a freezer, well, there will probably be a blog about that soon.

[bargainhunter]

I love the tips you share on your MSN blog, Donna. Thought you might want to know about a similar blog I write for the LA Daily News called the Bargain Hunter, at http://blogs.dailynews.com/bargain/

I help readers save on everything from groceries to Gucci, and I post only the best sales and savings tips. These days with the economy in the dumps I focus on personal finance issues and being a savvy spender.

Hope you will check it out at http://blogs.dailynews.com/bargain/

Thanks again for your down-to-earth tips.
Julia
aka the Bargain Hunter

[Donna Freedman]

Thanks for weighing in and letting us know about your blog. I expect in an expensive city like Los Angeles people can use all the bargain-hunting tips you can throw at them.