change

6 Worries You'll Always Have No Matter How Rich You Become

Tim Lemke — Mon, 26 Feb 2018 10:00:06 +0000

Benjamin Franklin once said, "Do not worry about trouble, or what may never happen. Keep in the sunlight." In other words, don't fret.

But it's not always easy to follow Ben's advice. Worrying is a normal, natural thing, and it happens to the poorest and wealthiest among us. Money can help ease some fears, but there are ultimately things that will cause us to worry no matter how financially secure we are.

Here are things that we all worry about, regardless of our income. What else keeps you up at night?

1. Your health

One of the sad ironies about building wealth is that once you actually have accumulated enough to achieve financial freedom, you may not be young enough to enjoy it for very long. As much as older Americans worry about having enough saved, they also worry about whether they'll remain healthy enough to have the active and happy retirement they dreamed of.

Financial wealth can help you get access to good medical care, but aging can win over even the richest among us. And even young people with money worry about falling ill or getting injured. The good news is that this worry can motivate us to do those things necessary to maintain good health, like eat well and exercise. (See also: 9 Problems You Can't Solve With Money)

2. Your loved ones

Having money may ease your worries a bit, as you can help protect your loved ones from financial hardship.

But you can't protect them from the consequences of their own bad choices. You can't cure their illnesses. You can't prevent them from having their hearts broken. Their health and happiness will be a perpetual source of worry. Even when we're old and gray, we'll still worry about our kids and other relatives. We'll always worry about our spouses. But that's OK. What kind of monsters would we be if we felt differently?

3. The health of our institutions

We can do a lot on our own to ensure financial security, but much of it also depends on outside entities to function properly. We need the federal government to operate smoothly and play a role in keeping our economy stable. We need a banking system that works. We need stock markets that operate effectively and in the best interests of investors. We need education systems that are working to make America stronger and smarter.

At various times in recent years, these institutions have had shaky moments. No matter how wealthy you are, you'll always be keeping an eye on our governmental and financial systems to see if they are working the way they should.

4. Global conflict

There's a reason the stock market took a major dive after the events of September 11, 2001. That's because as a nation, there was genuine fear that we'd be roped into a major conflict or war that might have hurt our nation's economy. We worry about war and global instability due to the potential impact on our finances.

But we also worry about global conflict because we are human. Having money in the bank means nothing when you're worried about terrorism, or concerned about a friend or loved one serving overseas. We worry when we hear about global tensions that might turn into something worse. We actually live in one of the most peaceful times in human history, but until there's peace on earth we will worry, regardless of how wealthy we are.

5. Change

Fear of change is so prevalent that it actually has a name: metathesiophobia. It is natural for people to worry about changes in their lives, particularly those they can't control. Having wealth can help mitigate some negative impacts of change, but there is some change that is inevitable no matter how financially prepared you are.

In fact, some of our biggest life changes — retirement, kids moving out, new living situations due to health declines — come later in life when we have achieved financial security. Consider that many older workers choose to remain in their jobs for no other reason than they fear the lifestyle changes that retirement might bring.

Change is inevitable, no matter how rich you are. Do you have the ability to embrace it when it comes?

6. Money

Yes, you'll worry about money even when you have a lot of money. That's because there's a good chance you've spent all your life worrying about having enough. So even when you reach a point when you're financially comfortable, your brain defaults to worrying. Even when you're rich, there may be things that happen to throw you financially off track.

The stock market can take a dive. Your family may be faced with a string of bad events. You never know what's around the corner. We all want to reach a point when we don't have to worry about money, but perhaps worrying about having enough money may be the very thing that ensures we have enough. (See also: Why Even Millionaires Aren't Happy About Their Finances)

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This article is from Tim Lemke of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Reasons You Should Still Go to the Bank

Dan Rafter — Fri, 06 May 2016 10:00:06 +0000

Did your bank close your local branch? It wouldn't be surprising. According to a report from SNL Financial, banks closed 1,614 U.S. branches in 2015. JPMorgan Chase & Co. led the way, closing 195 branches, while PNC closed 94 and Bank of America Corp. 88 last year.

The reasons are obvious: Most customers rarely need to enter a bank branch. Employees' paychecks are often direct-deposited to their banks. Customers today make deposits through their smartphones. And they pay their bills online.

But that doesn't mean there aren't times when actually visiting a bank in person makes sense. When should you tuck away your smartphone and step into your local branch?

1. You're Applying for a Mortgage

Sure, you can apply for a mortgage online with many financial institutions. And you don't have to even take out a mortgage with your local branch. But if you like your bank, you might want to at least talk to a loan officer at your local branch about a mortgage.

A mortgage is a big financial commitment. Sometimes you want to talk to a financial professional in person for advice and recommendations. Again, you don't have to turn to your local bank for this advice; you can work with any mortgage lender licensed to do business in your state. But your bank might offer competitive rates and lower closing costs. You won't know until you contact them.

2. You're Ready to Buy a Car

It's good financial sense to have financing in place before you shop for a new car. You might still take the financing offered by your auto dealer, but coming into the dealership pre-approved for an auto loan provides you with a back-up if you don't like your dealer's terms. It might also save you money; dealers might lower your interest rate to persuade you to take out a loan with them instead of with a different financial institution.

Your bank certainly offers auto loans. If the rate it is offering is a good one, it might make sense to visit your local branch to talk through your auto-financing options.

3. You Need a Money Order

It's true that you can get a money order from several outlets, including credit unions, the U.S. Post Office, and many retailers. But you can also get them from your local bank branch. And if your branch is conveniently located, charges reasonable fees and is likely to be less crowded, why not get a money order from there?

4. You Need a Notary

Finding a notary is hardly a challenging task these days: Your local public library might even have one on staff. The odds are high, too, that your local bank branch offers a notary service. Most won't even charge to have a notary sign your documents. Again, if your bank is located a short drive from your home and is likely to offer quick service, visiting your branch for the services of a notary public could save you time.

5. You Need a Specific Type of Change

Maybe you're holding a yard sale and you need tons of singles. A good place to get change in specific denominations? Your local bank. Banks are happy to turn your large bills into smaller ones. And your teller won't flinch no matter how specific you get with how many $1s, $5s and $10s you need.

6. You're Ready to Empty That Coffee Can of Pennies

Got a jug stuffed with pennies, dimes, and nickels at home? Your bank will be happy to convert that change to dollars. Yes, you can go to your nearest Coinstar machine to do the same thing. But Coinstar charges a fee. Your local bank branch, if you are a customer, might not.

Do you still pay regular visits to your bank?

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This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

20 Smart Ways to Spend Your Loose Change

Ashley Marcin — Wed, 07 May 2014 15:18:56 +0000

We all have one somewhere. The glass jar or piggy bank of collected loose change that can often sit untouched for years if we're not thinking of it — and that's a great thing. I tend to undervalue all those dirty pennies, nickels, dimes, and quarters. When I find them in the bottom of my purse, they seem more like a nuisance than anything else. However, the last time I rolled up my change to take to the bank, I was absolutely shocked to suddenly have over $100 on my hands.

How to spend this bonus money is another story entirely. In effect, it isn't a "bonus" at all. Instead, it's hard-earned cash that we can spend wisely if we're mindful and do some planning. So, here are 20 smart ideas for how to spend your stash of collected change.

1. Start a Vacation Fund

Travel is one of the items my family cut almost entirely when retooling the budget. Now we always put some of our jar money away to slowly build enough funds for a fun vacation (or at least the associated costs). Last year we paid for the bulk of our meals on our Cape May adventure with our dimes.

2. Enjoy the Nightlife

Entertainment is another area where those pennies can really get to work. Just think of the nice dinner and drinks you could get for $100! Or all the movies you could see on that kind of cash. Time to check your coat pockets, am I right?

3. Fix It Up

Have any home repairs you've been neglecting? We once purchased a new furnace filter with our loose change. Other smaller items to buy might include light fixtures, paint, vinyl tiles, or even some landscaping for the warmer months.

4. Play Santa

If gifts are difficult to find room for in the budget, try saving your change for when you need it most. You need not give many gifts on the holidays, birthdays, etc. — but what a smart way to use up those forgotten coins. And those CoinStar kiosks don't charge fees for gift cards or eGift certificates with a number of participating retailers.

5. Deflect Forgotten Costs

Anything from bus fares to toll charges to parking fees can be paid with your loose change. My dad keeps a bag of it in his car (maybe not the smartest idea) for all of these purposes. That way, he's never scrambling for those annoying tolls.

6. Toss Away Debt

If you're saddled with student loans, car loans, or credit card bills, that $100 (or more!) can go toward digging you out of the hole. It may seem like a drop in the bucket, but every nickel toward a debt-free life is worth it.

7. Start a Savings Account

Have little room in the budget for savings? Try packing away cash by routinely emptying your change collection into an interest-earning bank account or emergency fund. You'll soon see that $25 here and $80 there will add up in your favor.

8. Stock Up on Supplies

If you're running low on bulk foods, shampoo, or other items, check and see how much loose change you have around. You can take advantage of sales (or bulk buying) and build a supply of these items all without increasing your weekly budget.

9. Pamper Yourself

It might sound indulgent, but that's the point. Say you accumulated around $4 a week for a whole year in loose change. That's $208 toward either a new cut and color, a massage, a manicure and pedicure, or whatever other indulgence you so very much deserve.

10. Freshen Your Look

That same $208 could get you quite a collection of new clothing for whatever season you find yourself in. If your dresser is full of clothing that doesn't fit your body or lifestyle, pitch the funds toward changing your style. (See also: 50 Ways to Update Your Wardrobe for Cheap)

11. Purchase New Equipment

Need a new laptop or digital camera? It can be hard to justifying spending a few hundred out of pocket. If you find it in your glass jar? It doesn't hurt as much. You could alternatively invest in the items you already own by getting them fixed or tuned up.

12. Learn Something New

Take a class with your quarters. Lots of educational institutions, studios, and community centers offer courses for adult learners ranging a variety of interests and topics. You could pay for a whole month of yoga, check out that session on vegetarian cooking, or take up a new craft.

13. Invest in Hobbies

If you'd rather continue with your already honed interests, use your spare change to offset some of the costs. A few hundred can get you lots of fabric, yarn, or thread for crafting. Then there's acrylics, brushes, and canvases for painting. Even fishing lures, rods, and reels can be great uses of your funds. Do what you love! (See also: 35 Fun and Frugal Hobbies)

14. Finance Better Health

Enroll in a few personal training sessions or get a membership to a gym. Snag a new pair of running sneakers or sign up for that local half marathon. There are sneaky costs associated with an active lifestyle, but with money in the (piggy) bank, there are more opportunities to foster your fitness.

15. Donate It

Make some change with your change. Find local or national organizations in need, and give. I like working locally because I know that the majority of my money is going to help. Anything from buying groceries for families in need to toys at Christmas can be a huge help. (See also: 10 Local Charities That Need Your Stuff)

16. Buy Books

One of the most surprising costs at college is the books. I couldn't believe the hundreds (thousands!) I spent each year. So, while favoring used books over new — consider using your pennies to purchase this semester's reads. Bonus if you can sell them back and repeat the process again.

17. Prepare for Baby

Many to-be parents worry about the up-front costs with their bundles of joy. Use your saved change to purchase diapers, clothing (think basic onesies, not frilly outfits), teething and feeding supplies, and other items. Baby showers are great, but few grandmothers want to give the practical gifts that help most.

18. Love Your Pet

Fur-babies can also be quite expensive with all the food, training, grooming, and medical costs. Allocate some of those leftover dimes to move to your pet care budget and lessen the burden on your finances.

19. Subsidize Your Habits

Like to get coffee or lunch out each day? That small stuff really adds up to staggering amounts over time. If you just can't break the habit — use your change and try to stick to a budget.

20. Furnish Your Spaces

Moving into a new apartment or starter house can be tough without lots of money on hand for couches, beds, and other furniture. Use your coins to slowly chip away at buying those needed items, and you'll find yourself sitting pretty in no time. (See also: 15 Cheap and Ingenious Ways to Upgrade Your Furniture)

To what good use do you put your spare change? Drop us a dime in comments!

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This article is from Ashley Marcin of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Reasons People Resist Change

Julie Rains — Mon, 02 Jan 2012 18:10:44 +0000

Link:

http://www.openforum.com/articles/5-reasons-people-resist-change

I used to believe that there were two kinds of people:

People who thrive on change; and
People who avoid change.

The former are inspired by freshness, embrace novel experiences, and jump at opportunities to instigate innovations. The latter seek stability, enter new situations cautiously, and place roadblocks before the slightest mention of anything different.

Now I realize that there is a third category: people who want change at a conceptual level but are not willing to do anything risky in order to achieve it.

They are intellectually curious and enjoy newness yet hinder initiatives with their indecision and procrastination. Repeatedly (and predictably), they reject new ideas just as relentlessly as they express concern that too much has stayed the same.

In short, Types 2 and 3 resist change. They avoid, dismiss, and sabotage those who want to move forward in any area including:

Pursuit of a new customer segment;
Deployment of a new technology or work process;
Launch of a new product;
Introduction of new techniques for sales, marketing, and customer service.

Understanding why they avoid newness is a key step in overcoming resistance. Addressing these specific concerns can help build a team that will evaluate new opportunities based on merit and not fear.

1. She believes that her productivity will plummet and stress will skyrocket.

After years of mastering her job duties, she has developed an efficient routine. When employees bring problems to her attention, she provides direction by following a self-developed, mental image of a decision tree with a limited number of variables. The simplicity of day-to-day tasks and the knowledge that she can easily complete assignments on time, on budget, on spec are comforting.

Changes will bring complexity to her job. Decisions will require developing new road maps. The mental heavy lifting that she anticipates will be exhausting. This extra time and effort will certainly detract from her productivity, output, and peace of mind.

Fix: Establish a new performance metric when changes are introduced. If possible, move away from activity-based measures to assessments of creative output and profitable results. Plus, give her enough time to assimilate new ways of doing her job and plenty of space to solve problems that require intense concentration.

2. He thinks that embracing change means admitting past mistakes.

He believes that championing new work processes or pursuing new customer segments, for example, are equivalent to publicly acknowledging that previous procedures caused errors or marketing programs didn’t deliver the right kinds of customers.

Fix: Reassure him that changes being proposed reflect technological advances, emergence of new segments, or other recent happenings that have impacted the business. Emphasize the need for continual renewal, not as an indictment of the past, but as a strategy for ongoing success.

3. She is unable to learn from her failures.

She is not afraid of failure per se, and accepts that changes may not bring immediate results. What she fears is her inability to understand what factors influence success. Navigating change is like falling into an abyss rather than interpreting clues on a hidden-treasure map.

For example, she might express concerns about updating the features of a previous best-selling style. Her hesitation to introduce modifications has nothing to do with her perceived inconsistency between product characteristics and customer desires. Instead, her resistance masks her lack of analytical and problem solving skills. In the past, she has blamed failures on economic conditions, poor timing, and misunderstanding on the part of customers. Unable to pinpoint (or at least guess) the reasons for certain outcomes and then make adjustments that improve results, she avoids change altogether.

Fix: Teach her how to learn from her mistakes, whether they lead to full-flung failures or lower-than-expected performance. Encourage her to articulate assumptions and predict likely outcomes of proposed changes; then show her how to evaluate results in light of the accuracy of these assumptions. By giving her the skills to learn from potentially risky moves, she should feel more comfortable with change and confident about her ability to correct missteps and keep moving forward.

4. He is unsure of his ability to handle problems that may arise as a consequence of change.

He is eager to positively impact the company but is reluctant to implement new ideas. The side effects of change may involve handling situations that he does not fully understand and dealing with consequences that he cannot predict or control.

For example, he believes that claiming the company’s online listing could be beneficial to marketing efforts. But the prospect of having to interact with customers who rate the business is unfamiliar to him. So he downplays the benefits in order to dodge possible headaches in the future and avoid revealing lack of competency in this area.

Fix: Identify known negatives that will likely surface as byproducts of changes. Investigate, identify, and implement best practices for dealing with these situations. Acknowledge that unpredictable things may happen, ask him to alert you to these instances as soon as they occur, and assure him that you will handle problems quickly.

5. She wants to preserve her status among colleagues and employees.

She enjoys her title, position description, and place in the organizational chart. The existing hierarchy allows her to get things done. Her colleagues and employees respect her, and she does not want to jeopardize these relationships for shaky ones with another group. She especially wants to avoid scenarios that put her in conflict with long-time associates.

Fix: Tell her the truth that her current job and existing relationships are increasingly becoming irrelevant as the competitive landscape changes, key customers merge or go out of business, etc. The new organization will challenge her alliances but also position her and the business more favorably in the long term. At the same time, uncover and address any areas of conflict among work groups, and coach her on methods of interacting with different personalities.

This article is from Julie Rains of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Best Ways to Count (and Cash in) Your Change

Julie Rains — Tue, 29 Mar 2011 10:36:08 +0000

What should you do with your loose change? The easiest way to turn your coins into currency is to let someone (or something) else do it for you. Some banks have coin-counting machines. But pinpointing what banks and which branches have this service isn't always simple. PNC Bank has a search filter to locate one of its coin counters. According to a branch representative, customers get coins counted for free while non-customers pay a 5% fee. Here are other options to consider. (See also: Top Online Savings Accounts Reviewed)

Fast, Free, Easy

Based on my personal experience, calls to branches of large banks, and comments by readers (see this article on spending change), here are some banks that offer free coin counting and exchanges to their customers:

U.S. Bank
Chase
Regional banks, such as Commerce Bank, Bank Atlantic, and PNC
Credit Unions (another benefit of credit unions)
Community Savings Banks such as Salem Five and Piedmont Federal Savings Bank

Certain banks will let you bring the coins to a teller, who processes them and then gives you currency or makes a deposit into your account. Other banks have self-service machines that generate a receipt, which you present to a teller in order to receive cash or add to your bank balance. Before lugging your coins to your favorite financial institution, ask these questions:

Do you have coin counting machines at your branches, and, if so, which ones?
Do I operate the machine or do I bring coins to the teller window?
Is there a coin-counting fee for customers? non-customers?
How will I get my money?

Free (Mostly), Not Fast

Some banks require you to roll your own coins and bring wrapped coins. These include:

Bank of America
Wells Fargo
Citibank*

Get wrappers for free at most bank branches or buy them at a discount store. Rolling coins is time-consuming but a good option if you have no other alternatives. For fun and convenience, buy a small coin-counting machine for home use.

*Generally there is no charge to deposit coins; however Citibank charges a 5% fee to customers and non-customers in Illinois. Note that deposit totals may be adjusted if the bank's count differs from yours.

Some banks will take small amounts of loose change at no charge, even if they do not offer coin counting services. After a fund-raising event, I presented a deposit of over $2,000 at a major regional bank. My deposit contained about $10 in loose change as well as hundreds of one-dollar bills (counted by a machine) and personal checks, carefully totaled beforehand. As treasurer of a non-profit group, I visited this branch frequently to make deposits. There seemed to be no definitive ruling about coin acceptance. The bank employee hesitated but eventually decided to take the coins (the deliberation was slow but coin counting was fast).

Fast, Not Free

Coinstar machines count coins for a fee of 9.8% (11.9% in Canada). These self-service machines can be found in high-volume retailers, such as grocery stores. Deposit coins, watch as change is counted and processing fees are subtracted, and receive a voucher that can be redeemed for the value of the coins (less the service fee) at the store.

To avoid the fee, redeem the coins for an eCertificate, gift card, or charitable donation. Sign up online to receive special offers, which may include receiving more than the value of the coins. A current offer, for example, exchanges a $25 eCertificate and $5 bonus for Rixty for $25 in coins.

Options vary by location so check out which services are offered (see this Coinstar locator) before you turn in your coins.

Have you had successes or problems when trying to cash in loose coins?

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This article is from Julie Rains of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

3 Invisible Savings Tips That Work

Darwins Money — Thu, 18 Nov 2010 13:00:06 +0000

With money tight these days for so many people, it's worthwhile considering some subtle "invisible" savings tips to ensure you're meeting your financial goals. When money was tight as a fresh college grad, I had devised a few different ways to set aside money without really noticing it. This both removed the temptation to spend it and the deterrent to give up when I was having a tight month, since these methods were virtually invisible! (See also: 5 Ways to Save Money on Everyday Expenses)

1. Checkbook Roundup

Before the advent of online banking, I was writing 15-20 checks per month. No matter what the payment amount was, I would always round up to the next full dollar amount and record that in my ledger. When something was $1.20, a $2 entry went in and so on. After a couple years, my checking account balance was several hundred dollars greater than what was showing in my checkbook ledger. This served two purposes: First, I'd be hard pressed to bounce a check with a buffer that large, even if I accidentally forgot to record a check or ATM withdrawal. Second, after a few years of this, it was a nice unplanned couple hundred dollars I could draw down to rebalance and start over again once I had accounted for all recent outstanding checks that hadn't been processed yet. These days, if you write very few checks, the system may not generate much in the way of invisible savings, but I still practice it to this day. I like the idea of the cash buffer in there. With interest rates close to zero, the opportunity cost on a few hundred dollars is inconsequential, and it's reassuring to know that if my wife or I forget to record an entry, it's covered.

2. Save Every $5 Bill

The neat thing about $5 bills is they are somewhat rare, yet not so painful to part with for an invisible saving method. I used to pay for almost everything in cash, and I tended to deal with 20s and singles quite a bit. On the occasions where I was handed a $5 bill for change, it went right in my invisible savings jar that night. See, the $5 bill is small enough and rare enough that I didn't really miss having it, yet after a year or so of a five per week, I'd saved around $250.

3. Never Use Change

Aside from the fact that watching the customer in front of me dig around and count out pennies to pay the cashier drives me batty, I've derived more pleasure from saving and investing my change than carrying it around and counting it out. I've always just dumped all my change in a can and then counted it out and savored the pleasant surprise. I used to do it the hard way with coin rolls, but now many banks have automatic change counters for free.

Each of these methods might realistically only yield a few hundred dollars per year, but that's a few hundred dollars you probably wouldn't have saved otherwise. And it's practically invisible!

Important: Have a Strategy for Deployment of Your Invisible Savings

Saving this money is only half the battle. If it's holiday time, you've saved $700, and you go blow it on an impulse purchase, that probably wasn't your initial intent at the beginning of the year. What I used to do with these savings was to deposit the money every quarter or so, even if it was just $100, and write a check for an equivalent amount to a dividend reinvestment program (DRIP). Essentially, these programs allow you to buy partial shares of common stock from publicly traded companies at any time, often for free or a very low fee. By forcing myself to divert these funds to a pre-determined objective, over several years, I was able to amass a nice portfolio of large blue-chip companies simply from invisible savings. Perhaps your objective might be a 529 plan contribution for the year (see 529 pre-paid vs. tuition strategies), Christmas shopping money, next year's travel fund, or simply building up your emergency fund.

Do you have other "invisible" savings methods to share?

This article is from Darwins Money of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The Best Book I've Ever Read About Making Changes Stick

Frugal Duchess — Fri, 31 Jul 2009 13:00:23 +0000

When I put together a list of books that have meant a lot to me, Small Change by Susan & Larry Terkel will be on my list of money-saving, life-altering books. The Small Change formula is really excellent and the minor changes suggested--personal, financial, health, professional--are meaningful and practical.

For instance, the authors suggest substituting one glass of water for a soft drink at each meal. Projected savings: 50,000 calories and $500 annually. Another easy change: walk to a further bus stop rather than the stop closest to my home. Projected benefit: I could walk an additional 150 miles in one year with a small adjusment in my route.

Here's the formula recommended in Small Change:

1. Study your daily habits

"Change something in your daily life and you will see the benefits steadily accumulate."--(p. 9)

Face it: Our little bad habits cause more grief than the occasional huge error. Here's a menu of petty little things that cost us time and money every day: misplaced keys, the extra serving of junk food, the forgotten lunch, etc.

Consider my kitchen counter tops. When I cook, the kitchen looks like the aftermath of a tropical storm through Miami. My kitchen surfaces become overdone with spices, oils and garnishes. As such, clean-up takes longer, which cuts into my income and I'm less likely to cook the next meal because a) I have to find the kitchen counter tops before I can use the kitchen again and b) cleaning up from the previous meal was such a nightmare, why would I want to cook again? Let's order pizza instead!

This bad habit makes it more likely for me to order an expensive take-out meal or to just zap up an easy-to-fix microwave meal, which is usually more expensive and less healthy.

The small-step solution: I'll put away each ingredient and utensil as I use it. The proposed change is based on my review of a poor daily habit.

2. Make only one change at a time

"Self improvement is easiest when taken one step at a time."--(p.14)

This is such a great piece of advice. I learned the value of focus while deep cleaning my bedroom. When I tackle the entire room, I just waltz around in clutter. I call it the Clutter Shuffle in which I move piles from one location to the next. But when I target one section of the room at a time, that level of focus and attention delivers real results.

I deeply clean and put things where they really belong. It's a mindful process, with a big payback.

By the way, once the change becomes a permanent part of my routine, then it's safe to move on to the next target. The Terkels recommend making a minor change every few weeks. I've tried a one-change-a-month schedule and that seems to work for me.

3. Constantly make small change

It's important to keep moving. Professional athletes, for example, practice and run drills. The same process applies for other professions and crafts. "Instruments tuned on a regular basis are easier to tune," the Terkels state on page 17.

4. Keep the faith and recognize the power in small accumulations

This step requires discipline, delayed-gratification and confidence. When I was in my 20s, I sat down to write a novel and not just any novel: I wanted to write the Great American Novel, an epic piece. I wanted immediate blockbuster success. Years later, one draft of that great effort is in a box and other drafts have been fed to the dust bunnies under my bed.

This past summer, however, I completed writing a small book, which will be published this spring. I wrote it chapter by chapter, with small goals. That step-by-step process worked for me. Likewise, I have started writing a short-story collection. Maybe it could be a novel, but each little story has its own destination. And that small target is enough for me.

"Trust the power of small change, and remember it will add up."--p. 22

5. Have fun

If I enjoy the process, I'll be more likely to stick with the program. Consider my penny hunt. As I purge through the assorted piles in my home, I've made it a point to look for pennies and loose change. A bit of spare change is not going to make me richer, but the Treasure Hunt mentality brings a little joy to my clean-up efforts. It's fun to look under a couch pillow if I think I'm going to find a few silver or copper coins.

Additionally, if I can laugh about myself: the messy piles, the comic cooking or the crazy shopping trips, it becomes easier to let go of bad habits and memories of poor choices. It's just another adventure.

Editor's note: Sharon Harvey Rosenberg (The Frugal Duchess) will be joining Wise Bread as a full time blogger in August. In the mean time, she'll be dropping by with a few guest posts a week. You can find more great tips from Sharon in her book Frugal Duchess: How to Live Well and Save Money or in Wise Bread's new book 10,001 Ways to Live Large on a Small Budget.

Can't wait until August? Here are other great posts by Sharon on her blog The Frugal Duchess. Enjoy!

Selling the Car, Jewelry & Other Stuff to Raise Cash

Sell the Coach Bag? What I'm Willing To Give Up for Financial Security

Shocking Results from My Free Energy Audit

Tips for Preparing for Home Ownership

How to Save Money on Hair Coloring (Sorry Jamie Lee!!)

This article is from Frugal Duchess of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Forget Saving...25 Places to Look for Spare Change

Tisha Tolar — Thu, 21 May 2009 12:25:37 +0000

While there have been times you may have had to scrounge around the house for spare change to buy milk until payday or to fill up a coin roll, you may be surprised to learn that if you really took a good look around at the spare change hiding in the crevices of your home, you might add it all up to a small fortune. It is estimated that average American has somewhere around $90 of loose change within their grasp. Some of the places to locate that change may be glaringly obvious, but others just may not be on your radar.

Depending on each person's home and habits, there can be money literally anyway. But just for fun, we came up with 25 different places you may be able to spot some spare change that you can turn in to some usable cash.

1. Couch cushions

2. Washing machine

3. Dryer

4. Under your car seats

5. Coat pockets (including the ones hanging in your closet)

6. Pockets of your clothes

7. Purses (active and inactive)

8. Wallets (active and inactive)

9. Old greeting cards (may find a green bill or two in a card from Grandma)

10. Desk drawers

11. Buried in the yard

12. Attic or closet storage boxes

13. Suitcases

14. Under the radiators

15. Under the carpet

16. On top of or under the refrigerator

17. Old piggy banks

18. Junk drawers

19. Old grocery bags

20. Kids toy box

21. Kitchen cabinets

22. Under the porch/deck

23. In the bed

24. In the clothing hamper

25. Old jars/cups

The company, Coinstar, that consolidates your change into dollar bills has been running a promotion to waive their usual 8% redemption fee if consumers consent to exchange their change for merchant gift cards or certificates from participating retailers, such as iTunes, Amazon, Starbucks, Cabelas, and Overstock.com.

Just when you think you may be broke, take a good look around your living space and see what you can find. Make a sport of it for the kids to see who can find the most change. Get into the practice of leaving collection jars in centralized locations like the kitchen, laundry room, bathroom, and bedroom to make future change collections much easier.

This article is from Tisha Tolar of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

37 Ways You’d be Better Off as a Bum

Paul Michael — Fri, 30 Jan 2009 04:48:38 +0000

First, apologies for the blatantly provocative title (although I do make good on it). But did you know that some people prefer to be homeless? I know, sounds crazy right? But I was watching a news story recently about the growing homeless population in Britain, and the US, and it seems some homeless people stay in their situations on purpose.

Now, one thing was made quite clear; no-one chooses to be become homeless. It is definitely a situation that is thrust upon people by circumstance. Over 95% hate the life they live and want out. But after a few years, a small percentage become used to the lifestyle, in the same way that some inmates become “institutionalized” in prison.

As it turns out, some of the pressures of living a homeless life are comparable to the pressures many of us face living our typical “American Dream” lifestyles. When I say typical, I mean the average family that has credit card debt, struggles to pay bills and wonders how they’ll ever be able to afford to put their kids through college and, one day, retire on a livable wage.

And homeless people can make a pretty good living collecting change. In one article that I found from Associated Content. Deanna Anderson describes in detail how her father-in-law chose to stay homeless, despite the offer of some help. He did stay during the Christmas break, however, and Deanna recounts this tale:

While he was staying with us he asked for some cardboard. Thinking he wanted to do something for the kids (he loved to draw) I gave him some. I cringed with shame when he wrote "Homeless, please help" on the cardboard. He asked for a ride to Wal-Mart and stood outside all day (about 5-6 hours) collecting change. This was his job every day excpet Christmas Day. On a bad day he came home with $20.00 and on a good day he'd come home with $70.00 (what I make in a day filing, typing, and dealing with people in an 8-hour shift). He came home with an entire foot-long sandwich that someone gave him and a warm fuzzy blanket because "no one should be cold during the holidays."

There are also stories of some panhandlers earning $800 a day:

Anecdotal accounts suggest a few panhandlers do quite well. For instance, a recent news story tells of Jason Pancoast and Elizabeth Johnson, self-described "affluent beggars" from Ashland, Oregon. The couple estimates they can make $30-40,000 per year from panhandling. They boast earnings as high as $300 per day, and assert they once made $800 in one day. Similarly, a former Denver City Council president claimed to know panhandlers who made hundreds of dollars per week, or even per day. City Councilwoman Elbra Wedgeworth said, "I know some people are making $150 to $300 or $400 a day. There are some people who are in desperate situations but many who are panhandling for a living." One hesitates to generalize from such stories, though.

And this, from my home town of Denver:

According to a recent survey conducted by the Downtown Denver Partnership, 42% of the population has given money to panhandlers in the past year and the average person there gives $1.84 each time he or she is approached by a panhandler, for a total of about $25 a year. This adds up to an awful lot of money - a total of over $4.6 million, divided among about a thousand panhandlers. That's an average of about $50,000 per active panhandler per year, with confidential interviews with panhandlers indicating that they make between $35,000 and $100,000 tax free per year and view panhandling as the equivalent of a job or a profession. Some even have homes and support families on their panhandling income.

Fox affiliate KMSB-TV reported that panhandlers in the area are making $40 per hour! That’s over 5 times more than minimum wage, and remember, this is tax-free. Outrageous. A former boss once told me that there was a beggar in London who camped outside of a very grand restaurant called The Ivy and committed Grievous Bodily Harm to keep another beggar off his spot; it was THAT lucrative. And I recently saw a photo of a beggar advertising his PayPal account. Wait, what?! (Looks like someone's having fun with Photoshop).

Now, those seem to be examples of extreme cases. I suspect much of this is speculation and exaggeration. And clearly, some of these people aren’t really homeless, they’re more like con-artists. Most of the time, when I see a beggar, they really do look very down on their luck and desperate for a meal and a warm bed. Sometimes, I’ve offered a homeless person food and have been turned down; what they want is money for alcohol or drugs, and many people say “who can blame them?” On other occasions, I’ve given beggars the leftovers from my restaurant meal, or offered to buy them a sandwich or burger, and they were smiling from ear to ear.

And let’s not forget that there are homeless families out there too. As a father of two, I can’t imagine what kind of pressure that it. But getting back to the title of the story, over my few days of looking into this story, I’ve heard and read many accounts of how beggars and “bums” have less to worry about than us regular civilians; some even say they have it easy. Some of these came directly from the mouths of people begging on the streets, I kid you not. I’ll be praying that I never get the chance to find out, but here’s the list. Take it all with an enormous grain of salt.

37 ways you’d be better off as a bum.

You don’t pay taxes on any money you collect
You don’t have a mortgage
You don’t have a boss
You can never get fired
You have zero debt
You can pick up and move anytime you want
You don’t have a car payment
You don’t get stuck in traffic jams
You’ll never break down on the motorway
You don’t have to pay bills
Or remember to pay bills
You don’t care about your credit report
You don’t get harassing calls from collection agencies
You don’t get calls…period
You don’t have to deal with junk mail
You don’t have to wake up to an annoying alarm
You don’t have to do laundry
You don’t get criticized for bad fashion choices
You don’t have email to check (Well, apart from PayPal dude)
You don’t have to wait three hours in security at the airport
You don’t have to attend parties with people you hate
You don’t have to fix yet another paper jam
You never have to sit through an ad featuring Billy Mays
You don’t have to vacuum
Or spring clean
Or scrub the toilet
You don’t get bothered by cell-phone salesmen in malls
You don’t care about identity theft
You don't give a crap about reality shows (you're living one every day)
Going to jail for the night means a warm bed and a meal
You've (probably) never heard of Paris Hilton or Kim Kardashian
Newspapers are actually handy; and you can read them too
You don't care if gas hits $4 a gallon
Sell-by dates are your friend
Every cent is valuable to you; spare change is an oxymoron
Hair salons are a joke
You can say you're free...and mean it

I know, for every one reason listed there are five that would prove how bad it is to be homeless. But that doesn't stop some people from choosing to stay on the streets; and some con artists making a very good living on the back of your sympathy and good will. Personally, I much prefer donating to homeless charities and shelters than to give it to someone on a street corner or at the traffic lights. I know my money is definitely going to help someone who needs it.

Further reading:

http://www.pubmedcentral.nih.gov/articlerender.fcgi?artid=121964

http://en.wikipedia.org/wiki/Beggar

http://blogcritics.org/archives/2005/08/24/020301.php

This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Making Change Count

Julie Rains — Wed, 18 Jun 2008 19:49:36 +0000

I brought a bag filled with quarters to pay for my meal at an Italian restaurant recently. I’ve been taking an informal survey of merchants to see who welcomes my coins. Having received a cool reception from the cashier at a gas/convenience store, I modified my coin-paying technique; now I carry quarters in a plastic bag separate from dimes, nickels, and pennies to accelerate sales transactions. When I showed my bag to the restaurant cashier (also the hostess, waitress, and owner’s wife), I was amused and surprised at her gesture.

She reached down and produced a stash of her own, all quarters in a plastic bag, just like mine. Apparently, her husband brings coins home but never, ever uses them. She described her attempts to corral them in one jar but loose change seemed to be wherever he emptied his pockets. Like me, she realized that most of the worth of the coins was in the quarters and they are easily counted and distributed, so they were bagged and stored for use in the very near future. I commiserated with her and then paid with my quarters.

Someone might say that a restaurant or store has to take coins but that’s not true: a merchant can set the guidelines for methods of payment (it is helpful, though, if these guidelines are equally applied to all patrons).

Here are the best places that I’ve found to use coins:

Restaurants with heavy lunch business (they are often thrilled to replenish their quarter supply)
Vending machines, especially for snacks and stamps
Guest fees at pools and fitness centers
Bus fare
Parking fees
Tip jars (or add-ons to currency tips)
Take a penny, give a penny containers
Automated car washes
Yard sales, bake sales, and children’s clothing consignment sales
Self-service cashier stations at some grocery stores and home improvement stores (pay with coins first and then you can pay the balance with currency or a credit/debit card; if you go to the store at non-peak hours, then you won’t back up the line)

What about the bank or Coinstar? Many banks want you to roll your own (coins), make a deposit, and then let you know if their count equaled yours, at which time your account will be credited. Coinstar gives immediate feedback on the value of your coins but charges a fee unless you convert your money to a gift card or eCertificate. I learned yesterday, however, that my savings and loan does not charge its customers for coin counting. I’ll be hauling my stash via Tupperware or some other container there soon.

Do you have any great ideas for dealing with coins? Share them here.

This article is from Julie Rains of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The Same Actions Will Produce The Same Results (Ten Tenets for Arranging Your Rich: Part 2)

Kate Luther — Thu, 17 Apr 2008 02:00:57 +0000

A while back I posted the first of what I promised would be "Ten Tenets to Arranging Your Rich". And wouldn't you know it, right after posting Tenet #1, things got a little crazy and life interfered with my blogging plans. Go figure :)

In any event, I think we're back on track now and as promised, we've got nine more tenets to go. So, without further adieu, here's tenet #2:

The same actions will produce the same results.

I love this little quote for a couple of reasons: 1) its just so very true and its been proven over and over again in history, politics, love and yes, money.

The second reason I like this saying is that it tells you everything you need to know to fix the problem. Its not just inspirational... you don't have to decipher the meaning of the flying eagle and the sun setting behind the mountains... no, this one's pretty darn clear:

The same actions will produce the same results.

What does that mean for you?

Well, that depends upon how you want to apply it to your life. If your car runs out of gas every time you think you can make it a little further, then perhaps you should start getting gas sooner.

If your spouse stops talking to you everytime you go on a rant, perhaps you should consider some anger management or communication courses.

And if you're still living payday to payday even though you've done everything you're "supposed" to be doing, then perhaps you should do something different.

As awestruck as I am with mankind's potential, we tend to be serious creatures of habit. As we venture out into the world of endless opportunity, we quickly find ourselves a safety zone and then concrete ourselves in it.

We may complain about it, we may whine about it but the truth is, we have no real intentions of ever leaving it.

Why would we? Its predictable. And if there's one thing we don't like, its the unknown.

So, instead of seeing what's really out there, we'll stay where we know what to expect, all the while wondering why we just can't seem to get ahead.

But its hard to get ahead when you've stopped moving forward.

I spent many years working for one company or another, doing everything I knew I was "supposed" to do. I thought that by climbing the corporate ladder, I would one day have the money I needed to do all the things I wanted to do. So, I made sure I always met expectations, even exceeded them on a regular basis and by all accounts, did "well".

But remember Tenet #1? "Rich" is very relative . So, despite my steps up the corporate ladder, I was anything but rich.

I left early in the morning and I got home late at night. I missed many of my son's "firsts" because I was always working. And all those personal enrichment plans I had? There was just no time and in all honesty, the idea of pulling out the paints or tilling up a garden was the last thing on my mind. All I wanted to do was collapse on the couch.

I was no longer working for a living. I was living to work.

By the time I walked away from the corporate world, I was making $60,000 a year plus expenses but I had no freedom. I enjoyed a cushy office downtown but I had no room to run. I had business cards and an expense account, but the real me was nowhere to be found.

So I walked. I did something different. And you know what? I got amazingly different results.

Was it scary?

Absolutely! Change always is. And even now, there are times when a client doesn't pay when they should or my flow of new projects just seems too slow. But every time I think I might considered going back to the corporate world for that steady paycheck, I immediately remember what I'd be giving up.

I find time to garden just about every day. I'm home when my kids arrive from school and if I feel like sleeping in, well... who's to say I can't?

No, I'm not saying everyone should quit their jobs... unless of course, that's what you really want to do. What I am saying is that if you continue to approach life in the same manner you always have, you're going to get more of the same results you've gotten so far and if you're reading this, I'm assuming you'd like those results to be different.

But your boss isn't going to decide that you should have a shorter work day or Fridays off or a siesta break every afternoon. Your paychecks are never going to surprise you by being substantially more than they're supposed to be and while I'll never say "never", waiting to win the lottery is probably not a good strategy for success.

If you want to arrange your rich, you're going to have to make some changes. You have to make them - they won't do it on their own. They might be small, they might be big. Maybe you need to save more, spend less, change jobs or invent that little doohicky that no one can do without. Whatever it is, do it. Make the change. And start enjoying the rippling effect they create in your life. :)

This article is from Kate Luther of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Behind the Times - I learn about Keep the Change

Andrea Karim — Thu, 01 Feb 2007 22:19:21 +0000

I tend to ignore most promotions that banks send my way. I use Bank of America for my primary checking account, and they often interrupt my online banking log-in to try to sell me on some kind of promotion.

So it was with Keep the Change — I just assumed that it was another little gimmick that wasn’t worth a second glance, and I would sigh heavily whenever the advertisement prevented me from immediately seeing my account balance when I logged into my online checking account. It wasn’t until a friend told me that she was participating that I started to pay attention.

Bank of America's Keep the Change program works like an electronic version of a change jar. You know how you hear that when you pay cash for something, if you ALWAYS put your leftover change in a jar, at the end of a year, you’ll have several hundred dollars saved up? That’s true if you are the cash-paying type — I’m not, although that may change over time. I tend to use my debit card for everything. And this is where Keep the Change comes in.

Keep the Change pretty much works like a change jar. When time you pay for something with your B of A debit card, Bank of America will round the total up to the next dollar (no matter what the amount) and deposit the difference in your savings account daily. So, if your morning latte comes to $3.13, an extra $0.87 is taken from your checking and deposited into your savings account.

So, initially, they take extra money out of your checking account and deposit it into savings. This isn’t really revolutionary, but it’s not a bad idea. If you’re already a Bank of America customer, you should consider it.

Pros

It makes balancing your checkbook a lot easier. Whole numbers = simple accounting.
You save money automatically, without thinking about it.
Earn as much as you can by tipping. When I go out to eat (every night), I add my tip so that my total comes to exactly one cent over a whole dollar amount — $29.01, for example. That way, Bank of America will save $0.99 for me.
You can still access the money (although this sort of defeats the purpose of saving the money, and you won’t earn as much interest as if you left it there, but in a pinch, you can grab those funds).

Cons

If you overdraw your account for a day, Bank of America will not round up to the nearest dollar amount and the Keep the Change transfer will be cancelled.
I don’t think it’s really worth it to open a checking and savings account with Bank of America if you don’t already have one.
You only make a good deal of money on this if you spend like I do, on tons of little items, many times a day.

I've been enrolled in Keep the Change for a little over a month, and I've set aside a little over $70. Hey, it's not a lot, but it's a manicure and pedicure, right there.

This article is from Andrea Karim of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: