What Angry Birds Can Teach Us About Personal Finance

I'm sure that most people, even if they haven't personally played Angry Birds, at least have heard of it.  I learned about it watching an interview with Jon Hamm on Conan.  A quick rundown for those who may not be familiar: The pigs have stolen the birds' eggs.  The birds are angry.  The pigs create various fortresses to protect themselves, and the angry birds launch themselves at those fortresses to destroy the pigs and reclaim their eggs.

It's a total time suck, and I'm really, really good at it.

As I was wasting away an evening recently, I realized that these angry birds actually do have a lot going for them that can actually be applied to the world of personal finance. Skeptical? Read on!

Be persistent:
The birds do not quit, and likewise, when I'm playing Angry Birds, I keep saying "just one more game..."  Persistence is obviously key in the world of personal finance because oftentimes paying off debt or saving for retirement seems like an insurmountable goal.  But once you start chipping away at the goal ever so slightly, you start noticing progress--debt is shrinking, balance is growing, and then it finally sinks in that what you're doing is paying off!

That little yellow bird is determined!

Know your strengths:
Each of the birds in Angry Birds has a unique talent.  Once you figure out what that talent is, you do better at the game.  Everyone has different talents that can be applied to personal finance as well.  If you're really organized, you can create and maintain a rock-solid budget; creative types have a knack for investing (I have found this to be true).  You may figure out that you're really good and cooking and re-purposing leftovers.  There are really any number of ways that we can each tap into our strengths to save and grow money, but we just have to figure it out.

I like the yellow and blue birds best, but sometimes you need the others!

If one strategy doesn't work, find one that does:
Maybe you make out your budget and think I'm only going to spend $100 a month on food!  Then you go to the grocery store and find that it's impossible to spend that little and not wind up with scurvy or some other 18th century malnutrition disease.  Always re-evaluate.  That's why monthly roundups are so important.  Take a look at your spending for the month, examine where the money went and determine whether it was just an expensive month for a particular need, or if you need to change some numbers around.

Get help from your friends:
The Angry Birds don't work alone and neither should anyone else!  That's why I love the blogosphere so much.  Maybe I haven't met a lot of the people who read my blog or whose blogs I read, but I feel like I know them, and I've learned so much over the years.  Sometimes all it takes to figure something out is just asking the right person, or having a conversation.

Examine the angles:
In order to beat most of the levels of Angry Birds, you have to hit your target just so.  We've all seen financial advisors who advise people to start saving even while they're paying down debt.  At first that seems crazy and counterproductive, but when you think about it from another perspective, you realize that if you focus solely on paying down your debt and then have a crisis of some kind--medical, car accident, house fire etc., you're completely wiped out again and all your hard work was for nothing.

Don't be afraid to try new things:
I certainly never thought I'd be eating as much barley as I have in the last year, but I tried it, I like it, and it's totally frugal!  Experiment with new foods, new budgeting tools, new ways to get around.  Just be open and look at personal finance as an adventure!

I'm not advocating you try to make an Angry Birds dress, like
the wife of a Rovio executive did, but it is a little awesome...

Crowdsource:
The Angry Birds know that it usually takes a number of them to take down a piggies' fortress, likewise, it takes a number of people working together to understand the ins and outs of personal finance.  For instance, your financial view of the world is significantly different when you are a 19-year-old vs. after age 30.  What you need to know changes.  As I advance in levels in Angry Birds, I often get stuck and can't figure out the trick to beat the level and move forward.  I know that nerdier people than me have created youtube videos explaining every way to beat every level.  As an individual forging your way through the world of personal finance, it helps to remember that there are nerdier people than you out there who know exactly what you need to know--find them.

The little blue birds break glass and ice!

If you decide that you want to waste hours and hours or your life playing Angry Birds, you can do it for free through google chrome.  But you've been warned.

Trader Joe's vs. The Grocery Store

I went to Trader Joe's the other day for a quick trip, and once again was amazed at how cheap it is.  You would think, since I go to Trader Joe's quite regularly, I would actually remember that, but since it's a bit out of my way, I go there infrequently on stock up trips. That results in me spending a lot of money (usually on five months worth of coffee), and thinking that it's a really expensive place to shop.

Not so.

Today, I'm going to do an item by item comparison between things purchased on my recent trip to the regular grocery store--Stop & Shop, and my even more recent trip to Trader Joe's.

Exhibit A:  Hummus

I bought hummus on both of my trips to the grocery store, and do you want to know why?  Because I love hummus, that's why.  Despite frugal attempts to make my own, I've stopped wasting my time and just get store bought.  I don't know how they do it, but my homemade version just sucks, and even the generic brand at the store is delicious.

This most recent trip, I bought Sabra Hummus, which is my hummus of choice, but I only bought it because it was on sale--naturally my favorite is the most expensive, sigh.  I got 17 oz for $5.99.  Trader Joe's, I got 16oz of hummus for $3.99

Current Standings: Grocery store trip $5.99, Trader Joe's $3.99

Exhibit B: Pita Bread

The pita bread is to enjoy with my hummus, of course.  Grocery Store pita bread retails for $2.79, Trader Joe's $1.29.

That brings our standings to Grocery Store:  $8.78, Trader Joe's $5.28

Exhibit C: Tempeh

The Trader Joe's tempeh is both delicious and dirt cheap.  Whole Foods also has a store brand of tempeh, which is really affordable, but I think it's icky.  The Trader Joe's stuff compares to the high end stuff, but is about half the price.

Grocery Store Lightlife Three Grain Organic Tempeh: $3.29, Trader Joe's Organic Three Grain Tempeh: $1.69.

Current Standings:  Grocery Store: $12.07,  Trader Joe's $6.97

Exhibit D: Snacky Popcorn

The Grocery Store retails Smart Food Popcorn for $3.99 for a 9 oz bag, Trader Joe's retails their popcorn for $1.59 for a 7oz bag, but the Trader Joe's stuff is low sodium and low fat and it is incredibly bland.  I'll tack on an extra $1 penalty since I'll have to add my own flavor agents, so that brings the Trader Joe's total to $2.59 for 7 oz.

Final Standings: Grocery Store: $16.06, Trader Joe's $9.56  

Overall, I got the same food, albeit slightly fewer ounces, for significant savings at Trader Joe's, which makes it totally worth driving a little further.  If there's one that's a lot further from where you live--get a carpool together!  Make a day of it!  It was just so nice to leave the grocery with two full bags of groceries and not feel like I'd been robbed in an alleyway.  I've started to loathe grocery shopping, but this perked me right up.    Also, I got four of these:

Best. Candy Bar. Ever.

For the low/low price of $1.99 apiece.  Then I hid the in the back of the cupboard.

Food Waste Friday: Too Much Comfort Food

I made this recipe last week: Gnocchi Mac and Cheese, which sounds phenomenal.  I'm all about any excuse to eat cheese as a main component of my meal, and over the years I've perfected my baked mac and cheese recipe, so I figured this one would come our amazing as well.  In the interest of not having a super-heavy meal, I added some baked broccoli, and kind of made it up as I went along.

It was good, but very, very heavy.  BF and I each ate some (I had two servings), but then it languished in the fridge for more than a week.  I wanted to want to eat it, but then the weather got really warm, and the thought of that much heavy food was just not appealing.

So, I trashed my creation, but I can't say that I wouldn't ever not make it again.  I think next time, I'd add some squash to the cheese sauce, and think of some other way to lighten it up a little.  That gnocchi was heavy!

Taxing

I know it may seem like an odd time of the year to talk about taxes since April is five months away, but the end of December is the end of the 2011 tax season, and I'm thinking a lot these days about what loose ends I need to tie up before the 31st.

1. Maximize Deductions.  I want to make a big push at the end of the year to send a large payment to my student loans.  Why?  Because I owe them so much money that every payment I make goes solely toward interest, which is tax-deductible up to $2,500.  So basically, the more I pay in student loan interest this year (which I'm paying anyway somehow or another), goes toward reducing the amount of income I'm taxed on this year.  I've had an increase in pay since getting my second job, so I'm not sure if that will bump me up into a higher income tax bracket--I'll take any deductions I can get.
2. Charitable Deductions.  Even when I moved cross-country and donated most of my furniture to the Salvation Army, I still couldn't get to the $250 threshold where I could start writing off charitable contributions. But if you're some one who regularly donates goods or money over the course of the year, or someone who donates a lot during the holiday season (make sure it's to a qualified organization)--save your records!  In order to deduct charitable contributions, you need to itemize your tax return using form 1040 Schedule A, and you need to send in your charitable contribution records for verification.  Charitable tax deductions may be going away in the future (though I really, really hope not). If you have some time post-holiday or post-holiday shopping, get your records in order so you can file and get your return that much faster.
3. Roth IRA Contributions.  A Roth IRA only allows a person to contribute $5000 per year, so in addition to trying to send a lot of money this month to the student loan people, I'm also going to try to sock a large amount in my IRA.  I'm nowhere near $5000 and won't be by the end of the year (since I started my IRA only six months ago), but I would like to get as close as I can to maximize that lovely compound interest (my retirement is going to be so exotic!).  In this case though, I'm determined to earn $100 in savings interest for this year, so I'm going to make a big contribution to my IRA and student loans right at the end of the month so I'll earn the most interest on my savings account.

One thing I remember my accounting professor in high school drilling into our heads is that we should never, ever claim any dependents on our W-2 forms but should instead claim status Exempt.  That way, we wouldn't be taxed over the course of the year (but Social Security would still be taken out), and we would just make a payment in April to the IRS for what we owed.  His logic was that we could invest the money that we would have gotten as a refund, and therefore make more money.  I tried it one year, and found that I absolutely hate owing at the end of the year, and that I wasn't disciplined enough at the time to invest my money into any kind of account that had a decent rate of return--I was only 16 after all.

I'm curious, how do people decide what to claim?  I don't think I'm eligible at this age to claim Exempt even if I wanted to, so I claim 1 dependent at one of my jobs and 0 at the other.  That way, I figure I'll just about break even with state and federal, and if I do have to pay in something, that something will be less.  That way I'm not really losing any potential interest (and hearing Mr. Wicker's voice in my head), but I'm also not stuck with a huge payment that ruins my spring.  

Hopefully, most of my readers don't have more than one job (unless you want more than one), so don't have that option, but I'm curious what the most common choice is.

I Need an Intervention

Just stop shopping, Dumbass

I have let the spirit of gift-buying punch a huge hole in my wallet.  I should have seen this coming, seriously.  Here is one thing I've noticed about my self and the way I relate to money: When my savings account is looking healthy and I'm contributing to it regularly, I start taking the same kind of pleasure in adding to savings that I do buying stuff.  When I have large, necessary (but not fun) purchases, I get pouty, throw up my hands (metaphorically), and say "what's the use!?!"  I've noticed this before, but continue to get blindsided, especially now when stores are tempting me with deals too good to pass up!  But, as I know that I don't need more things, I've been buying things for other people, which is very nice of me, but not nice to my savings plan.

Coming right on the heels of my car insurance payment, I had to get BF an x-mas gift.  After that, I realized that since my brother is coming out to visit, I should get him one too.  Then I found another something awesome for one of my best friends, then because I was being so virtuous and giving, I bought myself a dress.  It's like I need a sponsor to call when I feel like I'm going to spend!  Also, I bought running shoes, but I honestly did need those and saved about 100 dollars.

So that's why things have been a bit quiet on the old blogfront--I've been too busy ordering things.  In the back of my mind, I'm honestly hoping that the dress I ordered doesn't look good so I can return it, so I guess that's positive?

Starting December 20th, I'm off for six weeks from job number 2, so I need to keep that in the back of my mind.  With only one job, that means no extra income, just breaking even. I have a car tax bill looming--mustn't forget.  And I made a decision that will give me a goal to focus on so I (hopefully) won't be distracted by other shiny things in the meantime.

All of the cool runners have started getting these Garmin GPS running watches.  Initially I scoffed because it's clunky and expensive and seems like a laughable luxury item.

It's huge! But friends tell me it's not cumbersome

Now I'm in a position where I painstakingly google map out running routines, but sometimes alter them while I'm out and have no idea how far I've run.  The other day, I set out on my 9 mile loop, but still felt good at the end and took a spin through the park winding up with 9.5 miles for the day.  If I had known I was already at 9.5, I certainly would have pushed for 10.  So you see, the only way I can properly train is by having a giant computer on my wrist that tells me how far I've gone at any given time.

Yeah, that's a stretch, but I'm just going to save up the points I earn on my Amazon Visa card, and also the change that I save to bring to the Coinstar machine, which gives me an Amazon Gift Certificate (or just gives me cash, but then the machine takes a percentage).  Hopefully, this savings goal will occupy my fickle brain enough that I'll stop yearning for other things.  Hopefully.

December? Really?

That's not me, this guy is crazy

Guys, it's totally December today.  I'm flabbergasted, and I suspect I will be writing November 31st on a lot of things at work today, but that's beside the point.  With a new month, comes new financial goals, and precisely because it is the season of giving, I need to reign in my personal spending more than ever.  My goals for November kind of fell flat--not a total FAIL, but I wasn't as successful as I wanted to be.

Here's what I had planned for November:

1. One in/ One out i.e. getting rid of something when I buy something new.  Ok, I did get rid of some things, but I don't think it's equal to the number of things that I bought--gah!  BUT, one good thing that I did, the other day, I had the morning off, and I spent it hemming and mending whist watching 500 Days of Summer.  So I reclaimed three shirts/dresses that I wasn't wearing before!  Basically, as I've discussed before, dresses from Modcloth tend to be a bit short for my modest self.  So I shortened them further and made them into tunics!  I was wearing pants under them anyway, now I won't look quite so weird.

2. Save up enough for six months of car insurance.  Also, didn't quite make this, but I'm close, so that's something.  I always put my car insurance on my Amazon.com visa cause it nets me some sweet points that I can use for things that are more fun than buying car insurance.  So, to save up, I've been sending payments in to that credit card, even though I don't owe them anything.  So I have a nice credit balance to put toward the stupid car insurance; I'll also get a bit of cash from BF since he does use the car occasionally; and then I'll pay the rest promptly.  It's a plan!

3. Put any and all extra cash toward my student loans and Roth IRA.  I did ok here too.  Sadly, I didn't have a ton of extra cash, but I got a Thanksgiving gift check from my parents (they feel sorry for me, they know I'm broke), and I put that promptly in my IRA.  I also, finally, set up my bank account to debit twice the monthly required payment for those damn student loans.  So now, I won't even have to to think about making payments, and I can kick in a little extra every now and then.

Looking to December:
My brother is coming out for a visit over Christmas, so that will ease up on my spending considerably.  Why, you may ask?  Because my brother makes a ridiculous amount of money and has very few expenses.  The most frugal thing you can do--encourage your only sibling to choose a profession where he makes a lot of money!  Ok, maybe not, but it is nice when he comes to town because I love him, and because we get to have adventures without me worrying about how to pay for them.  With him around, I'll also be distracted from online shopping, like for those boots I've been coveting.

This is that last-minute kick to sock as much away in my IRA as I can--so I'm going to focus on that.  This is also the start of the winter break at my university, which means I finally get some time off, but also don't earn much money--once again, I challenge myself to enjoy my time without breaking the bank.

Wish me luck!!  What are your goals for this month?

Remix Round Six: Shorty

This dress was my first-ever purchase from Modcloth:

Sci-Fi Heroine Dress

Totally cute, totally interesting to look at, totally too short. I wore it a couple time with leggings, but it was just so, so short that I never felt comfortable in it; plus, I have the kind of legs that just don't look good in leggings, so I still want to conceal them.  I finally reached the conclusion that this dress is just not a dress for me, but it is a shirt.  The only problem with that conclusion, is that this shirt has an elastic band really, really high.  It doesn't look like it in the picture, but it's right below the boobs.

I've contemplated for a while trying to shorten the skirt to make some kind of tunic, but the fabric is slippery nylon and hard to sew, so I fretted that I'd make this already unwearable dress even more unwearable.  I've come up with two potential solutions to this issue, and I now put it to the group for some feedback.

Exhibit A:

Sci-Fi Heroine Dress with high-waist interlock skirt from American Apparel

Disregard the tights--and the wrinkles

Exhibit B:

Sci-Fi Heroine Dress with High-Waist Grey Flannel Shorts

I'm not sure how I feel about the second outfit.  Could be cute, but also could be construed as "wacky" and that really drives me nuts.

Thoughts?  Or should I just give up and try to hem it?

Free Art! Link Love

Oh Canada!  What will they think of next?  Canada is phasing out paper money in favor of a polymer that is harder to counterfeit, more durable, recyclable and has a groovy maple leaf window on it.  The instructional video shows it off in all its glory, and the guy doing the narration seems to have run out of things to say because by the end he's just saying "Look at it."

It's clear!

Something pretty amazing happened to me this week, which resulted in me getting free, one-of-a-kind art used in a major Hollywood film.  Intrigued?  I would be.  I blogged about it on my other blog, since, aside from free art, it has nothing to do with frugality.


People can be really, really stupid about their money.  Obviously, I'm a budgeting nerd and know exactly where every penny goes, but there are a lot of people who are the complete opposite of that. Andrea at So Over Debt, takes on a couple of them,


Do you tip a lot for the holidays?  I never really have because I don't have people that I get regular services from i.e. trainer, cleaning person, but I admit I don't really know the rules.  Michelle at Making Sense of Cents tackled the subject and got some good comments too.

Food Waste Friday: I'm Throwing Out the Coleslaw

In between eating up leftovers to clear out fridgespace for more leftovers, and then eating a feast so decadent I never want to eat again, I have decided to pull the plug on the coleslaw.  It's just cold enough out that I do not want to eat it, and it's been in the fridge for like a month.  Plus, I double-checked with stilltasty.com, and they tell me that coleslaw only lasts five days refrigerated, so, yeah.

Thanks to everyone who gave slaw-related advice--next time, I'll do better.

Tips For Frugal Gift Giving

Note:  I'm not  hater, but I'm not much of a gift-giver.  Thankfully, my friend Melissa is!  I called upon her to lend some frugal advice about the upcoming holiday season.



The holiday season is approaching, and it’s that time of year to get ready for get-togethers and gift giving. Even if you’re trying to be frugal, that doesn’t mean gift giving has to be a drag, nor do you have to be “cheap” (after all, there is a difference!). As a lover of all things Christmas, and especially gift giving, here are some tips I find handy to avoid going broke during the holidays.

1.  Handmade gifts: There are endless tutorials on blogs and other websites that have thousands of ideas for gifts that can be handmade and thoughtful. One favorite of mine is this tutorial on making bookmarks out of paint chips. This is especially great for young children to give to parents. One handmade gift that I made this year is something for my mom and sister. My grandfather was musician and I found some old brass tuning slides in a box that I took while cleaning out the home he lived in with my grandmother. I almost pitched the slides, but it dawned on me that these would make great necklaces. All I had to do was purchase chain and bails to match, and I made one for myself as well. He passed away last year, and I know these necklaces will be loved.

2.  Make a list: Having a list of people that you give gifts to, which should include all friends, family, and service people (the mailman, dog sitter, and so on), will help to eliminate unnecessary spending. Another good idea is to set a price point for each person, and to not stray from it. A physical list with set price points eliminates the urge to go broke on a last minute gadget or commercial “must have” item.

3.  Shop after the season and in advance: This is one of my favorite ways to Christmas shop, because it makes everything affordable. Everything in stores is priced and set out according to seasons. Most people won’t be wearing shorts in February, so that’s why shorts end up $5 on the clearance rack at the end of August. This works especially well if you are shopping for people with specific hobbies. My husband loves to golf, and this year he expressed interest in building his golf wardrobe. At the end of the season, I bought him a nice pair of golf khakis that were originally $30, but paid only $7, because it was the end of the season.

4.  Make donations: Making donations to a cause that the gift-recipient supports is not only thoughtful, it also helps with staying on a budget. For example, if a sibling if really passionate about helping the homeless, donating $25 in their name, or even donating needed edibles to a food bank, is a wonderful gift that is not only thoughtful, but helps out other people as well.

5.  Give services: This is a great idea for loved ones, especially children. Most parents would love to receive the gift of a house cleaned top to bottom, or the give of having their garden weeded for a month. Services can be gifted creatively by making a book of services for the recipient to use, or even producing a framed image of the service. Last year, “the kids” pitched in for my in-laws to have their carpet cleaned, and they loved it.

6.  Be creative with free samples: Many companies rely on getting their products purchased by handing out free samples. While the immediate thought might be, “Free samples? How tacky!”, consider their usefulness. Last year, I made a creative gift for my husband by collecting samples of colognes, shaving gels, bath gels, and other manly cosmetics, and putting them inside of a gift basket. He used the samples at home and during short weekend or overnight trips, and liked trying out the new products!

When it comes down to it, gift giving should be fun, not stressful! If gifts just aren’t in the budget, don’t be afraid to say so if there is someone in the family seriously wondering why all of your gifts are handmade, or even free. After all, it really is the thought that counts when it comes to giving a gift that is meaningful.