I’ve tried to budget before – wads of cash hidden under the bed, leaving the debit card at home – we’ve ALL tried. What I realized last spring was that I was trying to regulate a shadow, telling myself I had to spend a certain amount without knowing EXACTLY how much I was spending. My budget was based on how I thought I should be, not how I am. It’s time to keep a record of my rights and wrongs.

It’s laughable that at 27 I consider myself crotchety and set in my ways. Yet at any age, a willful decision is no walk in the park. So here I am, raising my glass of Vino Verde to an entire year of managing my money. If you’re nodding and thinking “yeah girl,” keep reading.

•    Pay UP! I get money from three different paychecks. Though I list these numbers at the top of each two-week entry, how much you start off with isn’t so important and I don’t look at them very often. What I do watch is what and where I spend.

•    Know Thyself. Split up your budget into less than 5 simple categories. I use:

Bills. Groceries. Eating Out. Expenses.

$12 for fishnets ordered off sockdreams.com is an expense. Deli pasta salad at the co-op is eating out. Save those receipts and mark down the totals, the automatically debited car payment, the money you count out in quarters from the tip jar.  Staying on top of the paper is the most annoying bit, but it keeps me on track with my budget maintenance because once there is more white than green in the pocketbook, it’s time to evaluate.

•    Knowledge pays. I began shuffling money into my savings account within the first month. By that point, I had noticed a trend in my spending: roughly $60 bucks a week on non-essentials like manicures and beers at the Duck Island. So, if I didn’t spend the expected amount I would simply pull open a new tab and transfer it into savings.

•    Keep it simple. I use Excel, but a notebook and a calculator will suit. Do the math yourself; let everyone else play Sudoku.

It sounds too easy, but trust me. Once you start writing it all down and focusing on where your money goes – you’ll spend less. And it’s not about ‘accidentally’ charging appetizers and french75′s at Oliver’s Twist and having to forgo going out for a week to make up. I splurge, totally. Having a budget simply let’s the smart girl know what cards she’s willing to throw down on the table.

Let me put it this way: my spreadsheet is better reading than a diary. When you can read through your budget the way you look at old photo albums there will be a new understanding that takes place. Those little white slips of paper will start to mean something; they are proof…of who you are and how you can change.

photo by jeff keen

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Recently I was in Aspen attending an invite only CEO’s and Entrepreneurs under 35 conference, called The Summit. Not surprisingly, out of the 115 people attending, about 15 were women. Sadly, I think we have come to expect that women just aren’t in that top tier of business, or if they are, there are such few women that they typically make up less than five percent of any statistic.

I was fascinated by the social experiment that lay before me. What was it about this room full of insanely successful (especially for their age) young men? It took me back to seventh grade when Ryan Hatch asked Kara Crow to the Valentines dance and I was left wondering, “What does she have that I don’t?” The same question lingered in my mind as I watched a band of money making boys doing tequila shots at the bar; are you kidding me? What do they have that all my girlfriends lack?

It wasn’t until I had a conversation with one of the boys, Elliott Bisnow, the creator of The Summit and in his own right a master businessman, that new light was shed on my query. He said, “Yeah I’ve never understood it. In college, my best girlfriends were always the smartest people I knew. The only difference was that me and all my guy friends were always scheming, figuring out how to make money selling t-shirts, or hosting poker games. All we ever talked about was money and how we could make more of it.”

That’s when it dawned on me and I started asking all my girlfriends, my mom, sister-in-laws, women in the Starbucks line, any chick who would talk to me: why don’t we talk about money? And sure enough, most of the responses had something to do with the fear associated with being “money hungry.” It’s like it if we’re money conscious, then we’re heartless, maniacal,  and man-eating. So Instead, we are focused on getting dolled up, on why the Ryan Hatch’s of the world didn’t ask us to the dance, on discussing our latest diet endeavors (as though narcissism is a more acceptable reputation than greed).

And, ladies, I am so far from preaching about this from some soapbox because the moment I realized the necessity of money being a priority in my life, it occurred to me that, in creating and running this company, i am that girl, I have spent less than 5% of my time and attention on our finances. Are you kidding me?!?!

Now, I don’t know what kind of girl you are and whether you’re a fighter, but I am. I had a quarter-life epiphany and it could not have come at a better time in my life. I know NOTHING about money. I don’t know how to make it, save it, invest it and, as an adult, it’s important but, as a business owner, it’s ESSENTIAL. And for the record, just because I want a self-sustainable company, because I want to pay my employees very well, and I want to be able to afford the lavish lifestyle I live, does NOT make me a cold-hearted b-witch.

Here’s the deal: I had a male business executive tell me once, as we sat in the living room of his multimillion dollar San Diego mansion overlooking the ocean, “Money is a tool and no, it doesn’t buy happiness but it’s a pretty damn good down payment on it.” Maybe I don’t need oodles of money, but money is freedom and independence to do what you want, when you want, because you want. And the beauty is that money and passion are not mutually exclusive.

The challenge is on, money is power, and we here at i am that girl need power to reach all our sisters around the world. I’m on a mission to soak up years of lost “college scheming.” You may want to jump on this bandwagon because we’re on a mission to move mountains, very, very expensive ones.

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I’m no stranger to penny-pinching. My first experience living on my own was much like everyone else’s — barely making rent and feeling blessed to have a boyfriend who pitched in. Now as a young married couple, we work hard to get by and stash away a little at a time for our dream house.

A lot of us are hard-hit by the recession and are trying to stay out of debt or struggling to scrape by. Morning, noon or night —there are simple ways you can start saving:

Morning

•    Throw a roast and some veggies in the Crock-Pot before leaving the house. Inexpensive roasts or soup can make as many as three meals that can be refrigerated or even frozen for future dinners.

•    Eat breakfast before heading to work to avoid hitting the drive-thru. Addicted to Starbucks? You can pick some up at the grocery store. Brewing your own can easily save you over $700 a year.

•    Consider the efficiency of your mode of transportation. With the recent rise in gas prices, my husband sold his car and bought a motorcycle for his short commute. If you’re not the biker type, hop on a moped, a bicycle or use your trusty legs (assuming you work close enough).

Noon

•    Skip the vending machine. You could be throwing away several daily dollars on food that would cost you half as much at the grocery store. Packing your lunch may not be considered cool, but it does save money.

•    While you’re running errands on your lunch break and need to grab a little cash, only withdraw what you need from the ATM. If you have enough self-control to own a credit card, consider applying for one that offers rewards.

Night

•    Wait until after you’ve returned home and eaten dinner to hit the grocery store. You’re less likely to pick up things you don’t need when your tummy isn’t growling. Scour the sale fliers and pick your store accordingly. Subscribing to the local weekend paper is fairly inexpensive and will give you access to lots of coupons. You can also surf sites like coolsavings.com for deals. Bottom line — never buy something you don’t have a coupon for or isn’t on sale.

•    Start banking online. Some banks offer higher interest rates for online banking and with the rate of postage constantly rising, you can save $70 a year by avoiding snail mail.

•    Try dedicating every other Friday night to staying in. It can cost upwards of $25 to go see a movie in the theater, but renting one is much more cost-efficient. If you’re an avid moviegoer, subscribe to netflix.com where you can pay anywhere from $5-$17 a month to have movies delivered. There’s also the option of pulling out your favorite book or puzzle, or gathering your family or friends for a game night.

Now that your penny-pinching day has ended, you can sleep soundly knowing you saved money and didn’t feel deprived.

photo by laura billings

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Here’s a brief breakdown of how the new stimulus plan could help you!
•    First-time homebuyers who purchase their homes before December 1, 2009 would be eligible for an $8,000 tax credit, and people who buy new cars before the end of the year can write off the sales taxes.
•    College students -or their parents- are eligible for tax credits of up to $2,500 to help pay tuition and related expenses in 2009 and 2010.
•    We can expect to see about $13 extra in our weekly paychecks, starting around June, thanks to the new $400 tax credit to be given through the rest of the year. Couples would get up to $800.
•    Those receiving unemployment benefits this year wouldn’t pay any federal income taxes on the first $2,400 they receive.
•    For those who have lost their health insurance as a result of losing their job, the government will now pick up the tab for 65% of the cost of continuing insurance through the COBRA plan for the first nine months while you look for a new job. COBRA is typically very expensive, often over $1,000 per month so this is a huge cost savings for job seekers.
•    Homeowners who add energy-efficient windows, furnaces and air conditioners can get a tax credit to cover 30% of the costs, up to a total of $1,500.

Information from the Associated Press
official portrait by pete souza

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Nicole is a Commercial Banker who has always been passionate about empowering women. She studied Finance and Entrepreneurship at Miami University (Ohio) and currently runs the Career Girls! Blog at http://smartsexysavvy.com.

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It’s hard times in Moneyville, ladies, and you know how I know this? Because I accidentally threw away my brand new mascara in the kitchen trash and rather than replace it with a brand, spanking new one, I went diving in after it. Sifting through old milk cartons, egg shells, and coffee grinds, I finally found my CoverGirl eye wand awaiting her rescue. Let’s be honest, six bucks goes a long way these days; it’s a Starbucks date on you, a promotional foot long at Subway, daytime valet, an hour and a half long distance call to Brazil, a medium Cold Stone ice cream with a single topping, or half of a Papa John’s pizza split between you and your best friend.

Here’s the deal, we’re in a financial crisis and it’s time we buckle down and get serious about our spending. Speaking of, I was recently the “plus one” to the premiere of Confessions of a Shopaholic and was pleasantly surprised by the glossy chick flick. Our leading lady, Isla Fisher, is hysterical and the storyline actually had some relevant advice for young women today: Get in control of your finances! Admittedly, something I am desperately working on!

I will never forget talking to a business graduate from Harvard, explaining to her how passionate I was about “empowering girls/women and how I just wanted them all to feel beautiful.” Her candid and rather trite response was, “That’s great, but if you’re not teaching them how to be financially independent, then you’re crippling them because it doesn’t matter how ‘pretty they feel’ if they can’t pay their bills.”

She had a valid point. From that moment forward, I knew that I wanted to build a company that was not just a “warm and fuzzy, feel pretty” company, but one that gave tangible tools to better equip women for what life might throw them. And if you want to see what is important to you, if you want to know where your priorities lie, check out your bank statement. Where you spend your money is a direct correlation to what matters the most to you.

For instance, while I wouldn’t throw down three hundred dollars for a new purse, I have no problem dropping a grand on a plane ticket to Tibet; because, for me, I simply cannot put a price tag on an adventure. Similar with experiences, I’d much rather pay for a dinner out with my friends as opposed to a new pair of shoes. Obviously what motivates my spending habits are adventures, new experiences and opportunities to hang out with the people I love.

So whether it’s shoes, clothes, food, entertainment, international tickets abroad, gym membership, art, school tuition, etc., you can quickly learn a lot about yourself. Who needs horoscopes, astrology or palm readings? Your bank statement will tell you more about who you are than all the fortune telling combined.

As for the current economy, figure out what are the “musts” and what things you can go without for a bit. Whether it’s fishing out your yoke covered mascara from the bottom of the trashcan or just being more conscious of your random credit card swipes, keep your purse buckled a little bit tighter, practice your restraint and together we’ll sail through this economic hiccup.

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There are several numbers a girl should be very protective of: her phone number, her social security number, her SAT/LSAT/MCAT/GMAT/GRE score, and her credit score.

With credit cards being offered out like sample sprays of perfume at the mall and made to entice young people with the ever-tempting free gift, this form of easy money has got this generation in some hot oil.

Your credit score says a lot about you. It is a report that gives you credibility as a responsible adult, and in this case, the higher the number the better.

Before you sign that application and start swiping, read and understand the fine print. As you begin to build your credit, there are a few important things to remember:
•    Introductory rates don’t last forever. What started off at zero can spike to 25 percent, it says so there in the fine print that no one reads. A rate of 16-17 percent is average, and fairly typical when establishing your early credit history. Any lower is a sweet deal; any higher, you might want to keep looking.
•    Annual fees are bad! They are fees often applied in addition to your APR. Don’t get stuck with a card that charges you just for carrying it around in your wallet.
•    Time is money.  A check received a few hours past a deadline can result in a hefty charge.  Most credit agencies are charge happy, they will not hesitate to pile on the penalties for late payments, paying a bill over the phone, or going over your limit.
•    Cash advances are really high interest loans in sheep’s clothing. They come with outrageously inflated rates, and should only be used in dire emergencies, if at all.

Paying your credit balance in full every billing period will earn you major brownie points with the credit gods. Allowing your balance to lapse over month after month will result in gathering more charges and yielding higher finance fees.

The next trick is to fight the urge to CHARGE IT! Every girl has the divine right to indulge. We need pastries to ease PMS, boys to relieve pent up tension and boost body morale, and retail therapy to renew our spirits on those bad days. But as your grandma would say: everything in moderation.

Creditworthiness is next to Godliness. Scoring high marks on your credit report card can be they very thing that gets you approved for the loan on your new car, passing your background check for that new job, or getting the lease on your first apartment.

Years from now, after graduation, when the loans are paid off, after you put in extra hours at the office and establish yourself as a fabulous independent woman, your credit score can help you make some of your bigger dreams come true.

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So you’ve exhausted every possible lead for a scholarship, but there is still a looming gap of zeros in your education costs. You’re ready to bite the bullet and sign your name in blood to interest rates and payment plans. But what about this recession everyone’s talking about? What about that $1.6 billion loss Sallie Mae posted last quarter? Who can you trust to still give you a fair interest rate?

It’s a slippery slope and my first advice to anyone contemplating major loans right now, is buyer beware! We’ve all learned valuable lessons in the last year when it comes to adjustable interest rates. Make sure you ask lots of questions and have a complete understanding of your terms of agreement.  This is your financial life for the next 10 years; it’s not to be taken lightly.

With that admonishment out of the way, here are your jumping off points:

Subsidized and Unsubsidized: These words are bandied about endlessly, but what do they mean? In a nutshell, subsidized means the government is going to pay the interest on your loans while you’re in school, and probably for up to 6 months after you graduate. Unsubsidized means you are responsible for the interest immediately. Usually you have the option of either beginning payments on the interest immediately, or deferring them up to 6 months after graduation when you begin payments on the principle.

Federal Loans: These are the bad boys that you’re looking for.  They have fixed interest rates and are typically subsidized. You apply for these loans by filling out the FAFSA (Free Application for Federal Student Aid). There are mainly three different kinds of loans, the Perkins Loan, the Stafford Loan, and the PLUS Loan.

• Perkins: You’ll have to prove exceptional financial need, but it’s perfect for independent students. Typically it’s a 5% fixed interest rate and it can grant you up to $20,000 for undergraduate, and up to $40,000 combined undergraduate and graduate. The best bonus is that these loans could be cancelled if you go in to fields like nursing or law enforcement, volunteer for the Peace Corps. or go on to teach in a low-income school.

• Stafford: Be cautious of the Stafford because it can be either subsidized OR unsubsidized. If your family can prove less than $50,000 of gross income per year you can be approved for the subsidized version. Otherwise they may offer you the unsubsidized loan. The interest rates on this loan are currently higher than the Perkins, around 6%, but by 2011 it should be a mere 3.4% due to a government program.

• PLUS: (Parent Loan for Undergraduate Students) This is a loan designed to cover the gap between the financial aid packet that a school offers you and what you actually need, including books and room and board. It’s deceiving in its name, because you can also apply for it if you are a graduate or professional student. Interest rates are around 8.5% and vary depending who is offering, and based on your credit check. You must apply separately from the FAFSA. Look for banks and credit unions that offer federal education loans.

Private Loans: These are your riskier loans due to the fact there are no government- backed securities.  Despite private loans being a whopping 20% of the student loan market, they are not only going to be harder to find and obtain, but interest rates can vary from 8% to a terrifying 19%. These are loans from banks and credit unions that are not part of a federal student loan program, and repayment will probably begin immediately.

IATG Quick Tips:

•    Don’t procrastinate. Fill out that FAFSA ASAP!
•    Talk to your financial aid office! They can point you in the direction of your best private loan options if federal loans don’t come through.
•    Find a co-signer who can increase your credit score, it could help you out with more money and a lower interest rate.
•    Don’t get discouraged, the money is out there and you will find it.

Questions, comments, and concerns: send them my way at diane@iamthatgirl.com

photo by bill mcbain

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If you’re searching for college financing, whether for a BA, MA, etc., you may suffer giant stress headaches, erratic sleep and night sweats. Fear not. These are normal symptoms.  It all seems like an endless sea of boxes to check and forms to fill out and enough fine print to fill a bottomless pit.  I’d rather clean my toilet, scrub the grout between the tiles of my shower, or do anything other than reading the dry repetitive material about student loans and scholarships.

I asked myself how on earth a high school student is supposed to navigate these rocky waters and make wise financial decisions that will affect them for the next 15-20 years of their lives. How are teenagers supposed to wrap their minds around loans and interest rates on tens of thousands of dollars when they’ve never had anything other than a minimum wage job? It seems socially irresponsible to be merrily waving the next generation down the drain of debt.

I sound depressingly pessimistic; I know. That’s how I felt when I first googled the word “scholarship” and started sifting through the search results. I left a message for my editor, ready to cry “uncle!” The websites seemed so interested in gathering information about me that I was certain they would sell my name to every mailing list imaginable. They were difficult to navigate and reduced me to describing myself in means of ethnicities and grade point averages. I was frustrated and discouraged by the fact that I didn’t seem to possess any qualities worth receiving money as each search offered alarmingly slim leads.

Before my editor called me back and before I officially threw in the towel, a divine beam of light shone down on me. I came upon www.scholarshiphelp.org. I swear the angels started singing as I gleaned a brand new understanding of grants, financial aid, and scholarships written in a comprehensible way and on a website that is simple to navigate. This is where you should begin your search in order to help you understand the basics and beyond. (They are willing to guide you in everything from searching for schools to writing your essays.)

What this experience illuminated for me was that this is not a topic meant to fit into a 500 word article. Rather, this is the gigantic elephant in the room that every student is ignoring because it happens to be a very boring elephant. Unfortunately, it’s also a very important elephant so we all better get used to its monotonous voice and confusing legal terms and figure out how to be friends. I’m pledging to you, readers, to tackle this subject with you and address as many questions and concerns about this process as humanly possible. In other words, there is much more to come on this topic. (Thank goodness it is finally becoming more enjoyable than cleaning my toilet.)

If you have any tips, websites recommendations, questions, concerns, or just need to vent about how you don’t even want to go to college anymore because you can’t figure out how to pay for it, shoot me an email at Diane@iamthatgirl.com.

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