Abandon Nest

Free Money Finance has another great post today, this time on spending more than you earn. In his post, he details a couple whose spending is completely out of control. Because of this they’re up to their eyeballs in debt and spiraling toward financial oblivion. Look at the stats for this family:

• Earning $165,000/year - That isn’t the kind of money to sneeze at.
• Husband is a banker - Doesn’t that mean he should know something about money?
• Owe $285,000 on their mortgage - Now that’s an expensive house. Do they really need it?
• Owe $125,000 in other debt - And what’d it get them? A car, a motorcycle, and a boat. They also owe money on credit cards which is never a good idea
• Save nothing for their son’s college education - Why? They figure he should work his way through college because it’s the American way

I honestly don’t even know what to say. All these things speak to an intense lack of discipline, and I’m literally flabbergasted. Think about all the ways you could manage $165,000/year. Throw the maximum amount into retirement accounts. Drive a slightly used car to save money and pack away the rest. Save for your child’s college fund. Take a vacation once a year (nothing extravagant) and start to live a simpler lifestyle.

I don’t even know how to continue this post. When it comes to money, I sometimes get angry at those who should have enough, but overspend and end up in a bad financial situation. It defies any kind of logic that this couple should be in debt. Maybe they should read about starting a budget and start to act responsibly for a change.

What would you do if you were them and had that kind of money to spend responsibly? Am I being irrational or is my anger reasonable?

Technorati Tags: Credit Cards, Debt, Money Management, Goals

Today at work I gave a presentation on conference call etiquette. In my personal opinion it was informative and relevant, but that’s beside the point. In this post I’d like to talk about some tips for presenters. What should you do when you’re standing in front of an audience showing off something you carefully crafted to convey a point? Here’s some DOs and DON’Ts for the situation:

DO:

• Speak clearly and firmly
• Prepare thoroughly
• Beg the question
• Think on your feet
• Hold a pen/pointer/remote

DON’T

• Look at the screen behind you
• Read from notecards
• Hold a clicking pen
• Say “um” repeatedly
• Try to answer a question to which you don’t know the answer

As quick pointers, these things should do you well. In a future post I may expand on the points, but I believe them to be self-explanatory. What kind of advice would you offer to someone presenting in front of others?

Technorati Tags: Tips for Job Seekers, Presentation, Powerpoint, Projector

For the longest time I had one bank account. It was a checking account that I deposited my paycheck into and withdrew all my expenses from. It got the job done for the most part, but I never saved any money and sometimes found myself having to restrict my spending drastically. This changed when I moved to Louisville.

After arriving in Kentucky I quickly opened two new bank accounts. One was a savings account so I could deposit a certain amount of money into it with every paycheck. The other account was for my apartment rent. Again I deposit a set amount of money into this account with every paycheck to assure that I have enough money to pay for my abode. The question comes, has this been beneficial and would I recommend it to others?

Without any doubt I would tell anyone to open multiple bank accounts to take advantage of compartmentalization of money. Knowing that one of my accounts is just for rent is nice because I never worry whether or not I’ll have enough money to pay for that all important bill. My savings account encourages saving of all things. I don’t think I would have saved a dollar if it weren’t for that account. My final account, and old standby, is that which I get my check deposited into every other week and what I live off of for the most part.

Another advantage of opening multiple accounts are the bonuses you can take advantage. In fact, My Money Blog has an excellent post about two deals going on right now. You can find it here.

How many accounts do you have? Why that many and would you recommend it for everyone? I’d be happy to hear other’s experiences.

Technorati Tags: Saving, Money Management, Goals