Just the three of us: Me, my Honey, and my Money.

Yes, I know I am single. (No need to comment on the bottom of the post. I get it. And if I didn’t get it? Valentine’s Day always makes sure to remind us single people out there.)

In honor of the holiday I want to shed some light on a topic that has become near and dear to my heart. The psychology of couples and their money. Here is why: I have a ton of friends getting married (and many that are not accountants). The divorce rate is over 50% and rising. The majority of marriage end due to money related reasons. How many friends could I help if I simply encouraged them to talk the money talk before the wedding/baby talk? People simply have different views on money. (I honestly think that this may be finally what I decided I may want to do with my life – so feedback is much appreciated)

Happy Valentines Day – Feel free to take my mini-test with your honey. Ideally I would be curious to have each person take the quiz separately and then compare answers and discuss (although, maybe you should take it on the 15^th?)

1. How do you feel about joint checking accounts vs. separate checking accounts?
2. Do you share credit cards?
3.  If your honey spends $100 for a new pair of shoes, do you get the spend $100 for a new pair of shoes?
4.  If your honey spends $1000 in car repairs, do you get the spend $1000?
5. At what dollar value do you need to run your purchase through your spouse? $10? $100? $1000? $10,000?
6.  How do you plan to save for retirement? Kids? A house?
7. Do you think its important to pay for your kid’s college? Do you want them to go to private school?
8.  Do you believe in investing conservatively with lower pay out? Or would you rather take a risk and invest with a chance of a higher payout?
9. If you can’t have everything: Would you rather have an expensive house, clothes, car, or vacation?
10. How do you manage and maintain a “fun fund” – is it fair for one person to go on vacation without the other? Do you keep track? How do you make sure the other person doesn’t hold a grudge?

Food for thought. And really? This food for thought has way less calories than that chocolate you intend to eat tonight.

(Oh yea, and please feel free to email me with comments/questions/ideas – or to let me know how the conversation went with the test. malloryspigel@gmail.com. I can also put out a fire if this post caused one- OR LEAVE A COMMENT - If you are brave)

Ode to Online Shopping

Ah, let's get back to the basics. Shoes. (and shopping)

It's been awhile since one of these posts. Here is the thing, with the holiday season just now over, it is hard to rebuild our savings (if we had to dip into for holiday presents/parties/trips) and treat yourself. Oh, but in steps the solution.

My Ode to Online Shopping:

(1) Affordability- That's right, you can price shop all you want at the tip of your fingers! Have your heart set on some new boots? Check out the same style at 6 online stores in less than 5 minutes (thank you google shopping). See where you can get free shipping, and suddenly you have saved more money than if you spend $10 on gas and 3 hours of your life driving to different stores. It's a blessing to be part of this online-generation, take advantage of it!

(2) Convenience - Seriously? I can shop in my sweatpants from the comfort of my living room while watching TV? Almost too convenient if you ask me...

(3) Variety - So I can visit 12 stores in an hour? That's physically not possible. PLUS many places carry clothes that they don't carry in stores (this is even more relevant if you live in a small town without a mega mall or outlet stores)

(4) Sale Items - Many stores carry more sale items that they don't carry in the stores. For an added benefit, you get to find sale items without digging through the huge bins for 30 minutes before discovering they don't have your size anyways.

(5) Shipping - You have your package in a few days show up at your door step. A little present to yourself.

(6) Crowd-less - If you don't like people (or even just crowds?) no worries. No one can push you out of the way or cut in the check out line. Sounds good for stress levels if you ask me!

(7) Easy Gifts - Need to send a gift to a friend out of town? Easy! They do the shipping for you. That is one less hassle!

Thank you internet for providing me with the wonderful world of online shopping. And with that? I am signing off to visit a few good friends (Amazon.com & Overstock.com)

Happy (Online) Shopping!

Pay Yourself First

Pay yourself first. Trick yourself first.

I was talking to a guy friend who is worries that his future wife would drain all his money. (I am sure he put it in slightly nicer words than that, but I figured I should cut to the chase). Her idea of "investing" is investing in a new pair of shoes (can we blame her?) and her idea of "saving" is saving for that new Mercedes she has always had a crush on. Money in the bank is money in your pocket ready to spend at the nearest mall.

The best advice I could come up with? Pay yourself first. (I'll admit it, my mom once gave me that saying... but I am going to give the action plan). I told my friend that he should up his 401(k) and roth IRA contributions that are automatically deducted out of his pay check. I suggested that each month he moved the money that he wants to save into a mutual fund before his future money-loving-wife can even see the balance appear in the checking account. He thought this was brilliant.

The next day I realized that this simple concept is not just for stingy-husbands out to deprive their wives of shoes for the benefit of their future children... this applies to ME! How many times have I decided not to transfer money into savings/mutual fund/investments/etc since "this month is crazy". Guess what? "this" month is ALWAYS crazy. December holidays, January vacations, February weddings, March birthday adventures... and then summer - oh my! The next day I went to work and up my % of automatic deductions from my paycheck into my roth IRA and 401(k). What an easy way to keep myself from spending my savings. Turns out, you can't spend money that you can't touch! (what a concept!)

For extra credit, some companies even match part of your contributions. Definitely check into this with your current company/firm. This is FREE money that you could be wasting. (And if this is the case? Feel free to write me a check with your extra bonus)

Pick Your Poison

... Your financial poison that is. Everyone has one.

Here's the story. I was driving with Danielle, a friend from work (the same exact salary), and she was talking about her tanning membership. She mentioned the monthly cost and I swear my heart skipped two beats. I remained calm on the exterior while my internal alarms went off thinking "You pay WHAT to fake tan!? You've GOT to be kidding me! ... you do realize the sun is free right? and skin cancer? and..." (Disclaimer: I am not judging those who fake tan, and I am fully aware that your arms really do look more toned with a nice tan). Here's the thing though, her tanning membership is approximately the same monthly cost of my overly priced (and yet so charming) yoga studio. In the end? we end up the same. Its just how you pick your poison.

So here's the concept. No matter what your financial state is, you are going to have to make choices. For Danielle and I? Do you spend the money on a tanning membership or a yoga membership? My mom on the otherhand chooses to get her nails done weekly and a pedicure every month. Is there anything wrong with spending money on yourself? absolutely not! Everyone has their poison- the trick is to not pick TO MANY poisons.


How do we do this?
(1) Look at your big purchases. Your house, your car, your vacations. You have to decide how to allocate your income and still have some disposable income for those irresistible shoes.. oh yea, and groceries. Maybe you are a car person and could care less for a large house. Maybe you will sacrifice both for world vacations? Just realize there are sacrifices.
(2) After you look at your big purchases, make decisions with your income left over (your disposable income). Do you need to buy a bridesmaid dress this month? This might not be the month to order a round of drinks for everyone at the bar then. (When you do decide to order a round of drinks for everyone at the bar- don't forget to invite me) Pick what you spend your money on. Do you like nice highlights? or namebrand clothes?

Yes, this concept is simple. But it really, truly applies to everyone. (Even multimillionaires have to decide if they want their next mega-mansion vacation home in England or Paris) Be careful that your eyes are not bigger than your wallet.

So.... What is your poison? What do you give up? How do you decide? ....Until next time, Happy picking!