rocket finance

More frugal relativism courtesy of Wendys

One of the reasons that I took a new job that moved us several states to the west was that the job change allowed for more family time. And so far, I have had more time to spend with the family. Actually, might be home too much now and I suspect that Mrs. Rocket might be getting a little weary of having daddy home every night . . .

Last Friday night, I was home and we are still exploring our new area, so we decided to eat out as a family. In our pursuit of the cheapest meal possible, we succumbed to the siren song of the Wendy’s Dollar Menu. Here is what we ordered: 3 hamburgers, 3 orders of chicken nuggets, 2 orders of fries, and 2 orders of mandarin oranges. We shared the various items and everyone in the family drank water - except for my five year old who refuses to drink water - until she gets really, really thirsty or the water is in some kind of “princess” water bottle.

We were able to feed our entire family of five on 10 bucks plus tax. A pretty cheap meal all things considered. If we had ordered beverages, we would have increased our costs by 50%. If we had ordered kids meals for our three children, we would have spent 60% more. If we had ordered from the restaurant across the street, our costs would have increased by at least 200%.

We felt pretty frugal until I started to do some more math. If we spent $10 on every meal that our family eats, our food budget would be over $900 per month! There is no way that we could afford to spend that much of our monthly budget on food. I developed a new appreciation for the fact that Mrs. Rocket successfully feeds (judging by my size) our family of five for less than $200 per month.

This also means that when our stimulus check arrives, we will be turning it into a grocery store gift card that comes with a 10% bonus. Our stimulus rebate might feed the Rocket household for the next seven months.

Or we might just eat from the Wendy’s Dollar Menu for a month and half.

Posted in frugality | 8 Comments »

138th Carnival of Debt Reduction

Coming to you from the great state of Colorado: it is the 138th Carnival of Debt Reduction. I want to thank Mighty Bargain Hunter for giving me hosting privileges for the week.

Now, on with the show -

This week’s top picks are from Not the Jet Set and Digerati:

Not the Jet Set proclaims the frugal virtues of frozen pizza. I remember that frozen pizza was a pretty good option in college. However, the fact that my roommate and I would each eat an entire pie did not make it a cheap meal. Unfortunately, ramen noodles were the most frugal (and less tasty) meal.

Digerati suggests ways to make 10 ordinary things last longer. I especially liked her suggestions regarding razor blades and soft soap. It always bothers me when our kids use about 4x as much soap as they really need and Mrs. Rocket will not be storing her razor in the shower anymore. Don’t ask, just read the article.

Enjoy the rest of this week’s submissions:

American Consumer News reminds us that your vehicle might be breaking your budget. There are a great many hidden costs to car ownership. Our car insurance just increased $40 a month because of our recent move. My car salesman didn’t mention that during negotiations.

I liked PaidTwice’ post about how life does not wait for us to get out of debt and even though PT does not include Rocket Finance in her blogroll, her opinions on and approach to debt are right on the money (pun intended).

No Credit Needed presents part 2 in his series entitled Debt Reduction Guide. He outlines several easy ways to save interest every month.

My Daily Dollars shares her budget busters. I can safely say that I do not struggle with anything on her list, but Mrs. Rocket and I sometimes create a bit of friction regarding #5 . . .

Boy, am I glad that my wife does not read this blog.

Ana from Debt-Free Revolution posted her opinion on the latest debt related news from Congress and the Fed. Ana is not a friend to or a fan of credit card companies.

If you hadn’t noticed.

The Campus Grotto offers some helpful advice on student credit cards. The advice is good, but while I am a credit card user, I’m not sure that easy credit is an expedient tool for a college student. Those on-campus Starbucks are just too convenient. . .

Personal Debt Management posits that by developing a budget, one can increase income. While I’m not sure that I buy the theory completely, I get the point. Budgets are knowledge and as G.I. Joe reminded us in the 80’s, “Knowing is half the battle”.

No Debt Plan and Living the Cheap Life both offer advice on what to do with your stimulus check. NDP suggests paying down debt, saving or investing. LCL suggests using it at a grocery store that is offering to a 10% bonus on the money. We are leaning toward the latter . . . although a 40″ flat screen with surround sound is also a possibility.

Just kidding.

Discover Debt Freedom summarizes several bad financial habits that we must break in order to expedite debt reduction. #2 is one of the most ill-considered decisions that people make. I personally have fallen into this trap in the past, but will never “go there” again.

Organize It of the UK lists 7 ways you can stop wasting food and save the planet. We definitely don’t want to waste food, but our reasons have nothing to do with saving the planet. We at Rocket Finance don’t put much stock in the theory of man-made global warming. But that is a topic for another day. . .

Christopher Johnson explains the difference between several types of mortgages. I always get my balloons mixed up with my ARM’s.

Picture of Wealth discusses the importance of writing down a financial plan - not a budget - a financial plan.

Your Finish Rich Plan implores you to achieve debt freedom by any (legal, I assume) means necessary and his post basically summarizes the content of all of personal finance blogdom. Good stuff.

That’s it! Thanks to all who submitted and look for next week’s edition at Debt Free Revolution.

Now, back to my pizza.

Photo by Pirate Johnny.

Posted in blog round-up | 18 Comments »

How do you deal with a budget deficit?

Earlier this week I shared that I use Excel for our family budget. In the spreadsheet I have set the formula in one particular cell to show our average monthly surplus or deficit as we move through the year. Since we are currently making a fairly large rent payment in our new location on top of the usual expenses associated with owning a home in our old location, we are running a monthly deficit. Once our house in the midwest sells, we are confident that our monthly budget will show a surplus.

Many financial advisers deal with deficit spending by simply saying that “you can’t spend more than you make” or “you must find a way to make your budget work”. However, while my new job came with an 18% raise, our rent, mortgage, HELOC, health insurance and car payment consume our entire monthly income.  A balanced budget is impossible for us right now. Mrs. Rocket does a great job in feeding, clothing, dealing with other life issues on about $350 a month at the moment - a pretty frugal amount for a family of five - yet that amount is still deficit spending. Gas and utilities further increase the shortfall each month.

So how are we staying financially solvent? Here are few ways:

1. We are spending into our savings. This will cover the deficit for 8 to 12 months barring any unforeseen complications.
2. Hustling. We look for deals, use coupons, and any other way to stretch a buck.
3. The 2008 economic stimulus rebate will reduce our monthly deficit by 20 to 30% depending on the amount we receive.
4. A cash back credit card. One to three percent cash back might not seem like much, but it adds up.
5. A few bank bonuses. I don’t plan to open 20 accounts like I did a year ago, but we needed new accounts when we moved so Mrs. Rocket earned $125 from Chase and I took advantage of a $100 bonus from a local TCF Bank branch. We also registered each of our Chase debit cards for a $75 bonus if we spend $750 by June 15th. We have earned $100 of a possible $150 total. The Revolution Money Exchange bonus also added an aggregate $60 toward the cause. Ebates, ING and Virtual Bank have also helped.
6. Side jobs. I hope to make an additional $2,000 to $5,000 this year by doing a number of odds and ends.
7. Blogging has not really taken off for me yet. I am not considering going pro like Digerati, but Rocket Finance has helped to reduce our deficit somewhat.
8. Gifts. Any birthday money that we receive this year is going toward our budget deficit.
9. Reading personal finance blogs, of course!
10. Prayer. We believe that God is interested in our family and in our financial situation. He has promised that he will meet our needs. We don’t necessarily know how the needs will be met, but we can live and rest with the confidence that He has promised to set our path straight.

There are other more drastic ways to deal with a deficit - find a new job, move again or become homeless, but right new we are trying to make our current situation work. We are happy and looking forward to seeing how this story unfolds.

How do you deal with a budget deficit?

Or maybe you have never had one. . .

Posted in budget | 6 Comments »

I am a spreadsheet budgeter

I first started tracking our family budget in 2005. Some of you will remember that our budget deficit that year was in the neighborhood of $25,000. I had taken a class in Microsoft Excel and decided to start plugging our numbers into a spreadsheet and see what happened. I continue to use a spreadsheet for our budget to this day. I am a tinkerer and MS Excel lends itself to tinkering.

Some features include:

1. Color coding - Each major category is shaded in a different color and after I finish a particular category for the month, I shade it gray. This also helps me keep track of paid and unpaid bills.
2. Simplified categories - My categories are the following:
   • Income
   • Giving
   • Saving
   • Taxes
   • Debt
   • Insurance
   • Living Expenses (rent, utilities, etc.)
3. The big picture - I “pre-fill” my budget for the year - all our estimated income and expenses are filled in at the beginning of the year.
4. Every penny affects the bottom line. I have added formulas that indicate the following at the top of the spreadsheet:
   • Total Yearly Income
   • Total Yearly Expenses
   • Average Monthly Income
   • Average Monthly Expenses
   • Average Monthly Surplus (Deficit)
   • Total Yearly Surplus (Deficit)
   • Total Cash on Hand
   • Total Yearly Net Cash
5. Mrs. Rocket has her own page that is hyperlinked to the main budget. She fills in the categories for which she is responsible and the changes affect the total budget.
6. Every category is totaled on the right hand side of the budget. I can see what we spent on each expense category - or what we are projected to spend throughout the year.
7. At the bottom of the spreadsheet, a cell is designated to show how much we are behind or ahead of budget each month. This number can vary by thousands of dollars based on our fluctuating income and expenses.

I enjoy my spreadsheets - they are almost fun. However, Glbl guy’s post from a few weeks ago has almost convinced me to use something different. He strongly recommends YNAB or You Need A Budget. If you aren’t comfortable with Excel spreadsheets, maybe YNAB is the answer for you.

I might even switch to it later this year and let you know how it turns out. In the meantime, if you would like to try one of my Excel budgets, contact me and I will send you one and even customize it a little to fit your needs.

Posted in budget | 1 Comment »

Three Chase bonus coupons

No time for a long post today, but I have in my possession two $125 bonus coupons from Chase and a single $100 bonus coupon. The $125 coupons are for opening a checking account with direct deposit in a Chase branch and expire on June 30. The $100 coupon is also for direct deposit checking can be used in a branch or online at www.chase.com/checking. It expires on May 23.

Mrs. Rocket and I just opened new accounts after our move. We each get a portion of my check direct deposited into our respective accounts and double up on every bonus.

Here is what you have to do to get the bonus codes - email me through my contact form above. I will email you the bonus code and a $25 referral code - please use both because I need to make a little money on this deal as well! These codes are “stackable”. Most bankers just need the code in order to credit the bonus, but if you want me to snail mail you the certificates, that can be arranged.

I will update the comment thread below as each coupon is given away. Make yourself a little snowflake money!

Posted in bonuses | 1 Comment »

Saturday’s are for Coffee: Economic stimulus rebate checks

I am sitting here with my latest coffee flavor from Gevalia on a Saturday morning. We have heard a lot about the United State’s government plan to revive our sagging economy over the past few months and in light of the news that the stimulus checks might be coming early, I thought you might enjoy a recap of the opinions and information on the subject from some top personal finance bloggers.

One of the experts on the subject, Patrick from Cash Money Life, has done a series of posts. The first one explains, the who and how much regarding the checks. Another interesting post is a poll on how people plan to use the money. Stop by his blog and vote for yourself. Then check out the results of the poll. Given that the poll demographic was taken by personal finance readers, the answer will not surprise you. Patrick also has several more articles on the subject, but the most comprehensive is Economic stimulus rebate: Frequently Asked Questions.

Randall from Credit Withdrawal points out the the big retail chains have plans for your stimulus check. But I guess that is the point. Please ignore Randall’s panning of Reaganomics . . . Rocket Finance is a big believer in trickle-down theory, but if everyone agreed with me, the world wouldn’t have any problems the world would be a pretty boring place.

Glbl guy asks for advice on how to spend his check. I wonder if he will tell us his decision after it arrives? Glbl guy also has a useful article that emphasizes the fact that you will not have to repay the stimulus check, it is not a loan.

Pinyo from Moolanomy emphasizes the fact that you must have filed 2007 taxes in order to get a check. This makes me wonder how many people might be assuming that a check is on the way, but for some reason, they don’t qualify? I wonder how much government resources will be tied up in trying to sort out the claims of people who believe they were wrongly left out?

Lynnae from Being Frugal tells us that the rebate check is the cause of a big debate in her household - not over politics, but over what to do with the money. Read her article and decide who is correct.

Many people were excited to learn that the direct deposits might be coming earlier than expected. Prime Time Money emphasizes this news and tells how he will spend his check. Mrs. Micah also posted an article about how she and her husband plan to spend the money. I must warn you, that MM used restraint in writing the piece and while course language is not used, it may be implied. . .

Ryan from Millionaire Money Habits teaches us what a future millionaire does with an unexpected windfall. Are you using millionaire money habits?

And finally, two bloggers from opposite ends of the political spectrum agree that the stimulus package has some problems. With whom do you agree?

On the left, David from My Two Dollars: My thoughts on the $100 billion dollar fiscal stimulus package.

OR

On the right, Rocketc from Rocket Finance: The stimulus package is a crock.

Enjoy your check, if you get one!

Posted in economy | 10 Comments »

Something Extra: stimulus checks to go out early

CNN Money just highlighted the following statement from President Bush:

Beginning Monday, the effects of the stimulus will begin to reach households. This money is going to help Americans offset the high prices we’re seeing at the gas pump and at the grocery store.

 It looks like a lot of people are going to start getting their checks four days earlier than was originally announced. Originally, the stimulus checks were going to start being sent near the first or second of May, but now at least 800,000 tax filers will begin to have their checks direct deposited as early as the 28, 29 and 30th of April. I was scheduled to get mine around the 9th of May, hopefully this will move things up for me.

So, will the stimulus package make a difference?

Well, it will make a difference for my family . . . and that’s all I really care about at the moment.

Posted in economy | 4 Comments »

The gift economy and socialist theory

A couple of weeks ago, my friend, Plonkee wrote about the idea of a gift economy. After reading her take on the idea, I have a couple of ideas and thoughts of my own to add:

Gift economy’s most often exist within the family structure, however, I believe that most gifts given in this framework are given with no thought toward quid pro quo. I believe that gifts given within the family relationship are given with the most altruistic of motives - the desire to cause another human being’s happiness.

Another place where I have seen a type of gift economy at work is within the bounds of a local church. Several of Plonkee’s commenters also mentioned this manifestation of the gift economy. I have been a member of small churches for my whole life and have seen many gifts given within this structure with no chance or expectation of the gift ever being re-payed. In some instances, I have been the recipient of such gifts. I will never be able to repay those who gave to me, but I plan to give to someone else at the first opportunity.

I think that the gift economy is one of the main ideas behind a socialist economy: “From each according to his ability, to each according to his need.” In this respect, the socialist economy is a noble ideal, but the reality is that the gift economy does not work on a large scale. Here is why I believe a gift economy works only within small groups:

• Gifts are only gifts if given freely, not under compulsion. Socialism must always “compel” the giver.
• Givers want to see their gift appreciated. Federal redistribution robs them of such joy.
• Givers want to give to something of value and desire to observe the value with their own eyes.
• Givers give to a person or entity that will appreciate their gift - and desire to observe that appreciation.
• In a gift economy, if a giver’s gift is wasted, they will stop giving. In a socialist economy, if the gift is wasted, more is demanded from the giver.
• The gift economy only works when there is solidarity of purpose and accountability between the members of the group. In a large country, neither exists to any great extent.

The gift economy is an admirable part of the human condition, however, I believe that it will only truly exist on the small scale.

Posted in viewpoint | 1 Comment »

Best Financial Decision in College

Earlier this week, I was tagged by Plonkee and commissioned to tell about the best financial decision that I made in college. The fact is, and I have already shared, that I made relatively good financial decisions in college. However, those good decisions did not continue into my early years of marriage . . . but that is a different topic.

I attended a small, private college in the early ’90’s. This particular school was more expensive than a number of other options, but I strongly desired what that college had to offer. The best financial decision that I made was simply to work as much as possible - even when I did not have an immediate need for money. My evenings, weekends, and breaks were filled with work opportunities.

I believe that my work schedule helped me in several ways:

1. Staying busy on weekends and evenings kept me out of trouble.
2. Going to work on a Friday night kept me from spending money on gas
3. Going to work on a Friday night kept me from spending money on food.
4. It gave me a good excuse not to take my girlfriend on a date that might cost money.
5. It forced me to use my time wisely, there was no room for procrastination.

Despite my healthy work schedule, I was still able to make time for extra-curricular activities. Believe it or not, I was able to participate in choir, a musical, a ministry group or two and play four seasons of intercollegiate sports. Mrs. Rocket also worked while in college, but she also invested more time than I in socializing on the weekends. Every once in a while, she calls me a nerd for studying or working on Friday and Saturday nights back then.

I always tell her that even though we did not know each other at the time, I was working on the weekends so that I could pay off her student loans today.

Posted in college | 9 Comments »

A little extra money never hurt (unless you don’t have any deductions)

Last night I sat down and really crunched the hard numbers on our housing situation. I soon realized that 85% of our monthly take-home pay was being spent on housing costs - both on the home we “own” in Wisconsin and the home we will be leasing in Colorado. That leaves 15% to go toward tithe, car payment, food, clothes and any other expense that we might have along the way. Obviously, we are moving toward deficit spending. Last year, we faced a similar crisis and pulled through with some hard work and a little ingenuity.

I don’t think we will ever set out to earn $5,000 in bonuses again, but we are in no position to turn down free money either. Furthermore, I don’t want any of you to miss out on some of the extra cash floating around the internet right now. Here are some of the good deals:

Revolution Money Exchange is offering a $25 bonus just for signing up - and $10 for each referral. Act fast because this bonus is only good for a limited time. It was supposed to end on April 15th, but RME extended the bonus period until May 15, 2008. The account takes less than five minutes to open and referring friends is easy. Furthermore, RME allows members to send money to each other without any fees! I have paid over $25 in Paypal fees over the last year. . . RME seems like a pretty good deal. I referred Mrs. Rocket for a quick $60. Open your account through this badge:

 Ebates is offering another $10 bonus for signing up. The bonus was only $5 when I signed up originally, but I have saved a lot more than that by shopping through their portal for items that I was already going to purchase. If you can refer two friends, you will get $20 worth of bonuses plus a $10 Target gift card. Target is Mrs. Rocket’s favorit store. I will score major points with that gift card. . . This offer ends on May 31, 2008.

Virtual Bank is still running their $20 bonus promotion if you open an account with at least $100. Contact me for a referral email.

ING Direct is still offering a $25 bonus if you open an account with at least $250. Contact me for a referral.

I was tagged by Plonkee from across the pond in the “Best financial decision I ever made in college” meme. Come back to read tomorrow’s post for the answer and see who I tag.

Have a great day!

Posted in bonuses | 1 Comment »