The celebration of the New Year is one of the oldest traditions around…yet people have learned how to make good bank on the holiday as well. My friends and I have been looking for weeks to try to find a place to spend New Years Eve now that we are all 21 or older and can all go out together. We choose the Liquor Store for our location in Boston to bring in the New Year! But it really was a difficult decision for all of us to decide on! We’re college students…so of course we don’t have a lot of money. Christmas just passed and it feels like Spring Break is looming right around the corner! All of this sucking a ton of money out of our wallets. So, the Liquor Store charges $50 just to get in on New Years Eve for the celebration…not really all that much is included, but it was a decision we all had to make, and check our budgets for! I mean none of us wanted to be out of money, but at the same time…we all wanted to have a night we could remember our Senior year of college before we entered into the real world of work and jobs and routines (ughh)…

As we were looking for places to go though, prices ranged from $30 – $200! I was really amazed at how much money bars and places like hotels make on this small little celebration. People rack in so much money just for one night where the whole world celebrates together. I was amazed though that really nothing was included with this $50 they are charging us! PLUS…they told us that we should go to pick up the tickets beforehand…which requires an additional trip into Boston.

haha, one of the reasons we did choose to go to the Liquor Store for New Years is that we thought we would have a good laugh at everybody that gets onto the mechanical bull…and it would put some memories into our New Year as well!

Much consideration went into our decision to spend the $50 just to get into a bar…but in the end, for all of us it was definately worth it instead of spending our New Years Eve walking around Boston and trying to find a bar to get into. Luckily since I go to BU, I have an apartment in Brookline so we don’t have to pay for a hotel…which is why I was glad we decided not to go into New York City for New Years and spend even more money!

Has anybody else realized that New Years can be a huge rip-off…but at the same time a ton of fun!? Did other people find themselves checking out their budgets in order to tell if they would even be able to afford this night out…share your New Years experiences with the rest of us! I’m sure there’s all something we can learn about how to save a little bit of money here and there!

Joe knows budgets!

Quicken Online set up a facebook group asking what is everyone’s biggest financial challenge: (read Joe’s comment below):

Joe, Geezeo is for you. If Joe used Geezeo he could text “Geezeo Entertainment” and know exactly how much he has left in his Entertainment budget. Here’s a sample Geezeo budget with a real time text to “Clothes”:

So if you know Joe, let him know that Geezeo is here for him.

Greetings Geezeo Interweb Cyber-Nationalists! Let me introduce myself. I am the newest Geezeo team member.

No, let me first start by complaining about Katie. Yes, Katie. Here is what she wrote in my AOL account:

Pete and Shawn, this guy you hired is a complete MORON! Why are you hiring someone who can’t even post to the blog by themselves? We’re an internet company! He seems like an arrogant, sexist jerk. Strategy-wise I don’t think this is a good decision at all. People don’t need more jerks telling them how to handle their money!

Also, he smells.

Well! Let me tell you a thing or two, missy! First of all, I have my secretary, Edna, transcribe everything. All you have to do is publish my words onto the information superhighway, alright? Stop your complaining, sister.

Second, Katie, perhaps you need to be reminded of my credentials? I hold a B.S. degree from Oxford. Yes, Oxford! That’s why you’ll post my words whether you want to or not. Oxford Numerology Institute happens to be very elite. Do I need to add that I am also a lot older than you and also know more about living? So there! I’m here to give advice. You’re here to put it on The Web. Got it? Good.

Oh, and one last thing. That “smell” happens to be “Polo” by Ralph Lauren. Maybe if you had some class you’d appreciate that. I know my lady friends do.

Okay. Now that I’ve got that broad back in line let’s get down to brass balls, shall we?

Do you have a money problem? Problems are my specialty. I’ve been having them as long as I can recall. Not just money ones, either. Recently I’ve been having a lot of problems with these kids showing up claiming to be mine. All I can say is I got paid for those samples, and no, I’m not Donor X83-7734. So let’s just get that out in the open now. Stop coming to my house!

Write me with your money problems at d.expert@geezeo.com. Edna will transcribe them and Katie — if she knows what’s good for her — will put them here.

Editor’s note: This guy confirms he is a jerk! Send your money problems anyway. Or, go into your Geezeo account and check out our brand new feature: MONEY CONFESSIONS! What are the silly, stupid, or just plain wrong ways people are handling their money?

Geezeo Money Confessions

Ever make a bad financial decision? Want to get it off your chest? Check out Geezeo Money Confessions. A fun new feature that allows you to post money related confessions publicly or anonymously.

Simply log into your Geezeo account and you’ll notice a new box on the right side where you can post your confessions. Select to broadcast your confession either publicly or anonymously.

As an added feature we have also integrated Geezeo Money Confessions with Twitter. You’ll be able to post your public confessions to your personal Twitter Profile allowing you to share your posts with people following your twits. Anonymous confessions will automatically be posted to twitter.com/moneyconfession which should be a fun profile to watch.

Check your budget from your mobile phone!

Hopefully confessing your less then perfect financial choices will make you feel a little better. And just when you think you’ve made the biggest bonehead financial decision, we’re willing to bet that someone else has made one a little bit bigger.

Now in an effort to absolve you from your financial sins, we have also launched a new feature today that makes it easy to check how much money you have left in a specific budget category using text/sms on your mobile phone.

If you have set up some monthly spending targets for transactions like “food”, “clothes”, “gas”, etc. you can now simply text “Geezeo” plus the category you want an update on. For example, lets say you want to know how much you have left in your Clothes Budget, simply text “Geezeo Clothes” to 41411 and Geezeo will text you back with your progress and available money to spend in this category. Just our way of making it easier for you to stay closer to your money, your financial goals and monthly progress.

There are also Geezeo Goals and Groups to jump into. Create or join a good discussion with some of your peers that might be able to help you stay on the right track. There’s strength in numbers!

We hope you enjoy these new features! As always…more good stuff to come.

Thanks for using Geezeo!

The Geezeo Team

“…the day I got my first statement and saw that only $5 of my $1251 payment was going to principal”

Yesterday we talked with Frugal Zeigeist, a personal finance blogger obsessed with paying off her mortgage. (Check out Part 1 here). We learned a little about why she’s chosen this pursuit as her personal financial focus. Was it caused by a bite from “Houselatium Payoffius”? (Okay, no more jokes about New Yorkers with bug bites.. you have heard of our bedbug problem, right?)

Now, let’s see what Frugal says when asked about any regrets (or other thoughts) she has placing her mortgage so high on her priority list.

What is the strangest thing(s) you’ve done in pursuit of paying your mortgage?

I don’t know that this is strictly related to paying off the mortgage because I started this when I was a broke-ass grad student, but whenever I go out West to see my family, I take a half-empty bag and go to Costco. Then I drag fifty pounds of toothpaste, vitamins, shampoo, conditioner, coffee, minced garlic, and other stuff back to New York so I don’t have to buy it locally at twice the price.

Are there any boundaries to your budgeting, or things you’re unwilling to do to further your goal?

There are three: First, I won’t compromise my 401(k) or IRA. If I can’t max both out while making accelerated mortgage payments, then the accelerated payments have to be cut back. Second, my parents are over 80 and not in the best of health, so I travel across the country every eight weeks to visit them and help out while working flex time. That adds up quickly, but family is non-negotiable. Finally, I’ll make compromises just about anywhere else in my budget, but I’m not drinking crap coffee. (Yay Costco!)

{Editor’s note: So true! Life is too short to drink crappy coffee! As a side note, Geezeo users spend an average of $17/month at Starbucks in October, and $23/month in December. Clearly, we’re a coffee-happy community!}

Have you done anything in pursuit of your goal that now seems foolish? Or, put another way, something you did in pursuit of this goal that now with hindsight you might have done differently?

I started prepaying my mortgage the day I got my first statement and saw that only $5 of my $1251 payment was going to principal. If I had started out with a fifteen-year mortgage instead of a thirty-year and concentrated on making higher prepayments earlier, I think I could have lopped another year or more off.

What are your recommendations for young people who dream of owning property in large, expensive cities like New York? How can they prepare for home ownership, particularly when it comes to hard work and sacrifice for longer-term goals?

For middle income earners, becoming a homeowner in New York is much harder than it was six years ago because of the drastic run-up in real estate prices. To anyone who doesn’t have a load of cash but wants to buy, I’d suggest researching income-based options for lower mortgage rates (yes, 4% fixed does exist if your income is low enough!), concentrating on where you can get the most bang for the buck ( e.g. neighborhoods that are in early to middle urban renewal), and recognizing that saving enough for a down payment requires discipline, dedication, and a willingness to compromise on lifestyle in pursuit of a larger objective. Doing your utmost to further your career and make sure you get paid what you’re worth is equally important. In other words, maximize the financial inflow and minimize the outflow.

Final thoughts: Once you pay off your mortgage, what will be your next big financial goal?

I have a series of goals: First, Fake Millionaire (real estate + financial assets = a million dollars); second, Real Millionaire (financial assets alone = a million dollars), third, swanning off into the sunset for a FABULOUS early retirement.

I applaud Frugal Zeitgeist’s hard work and dedication in pursuit of her financial goals. Good luck on your million dollar pursuits! Thank you, Frugal, for taking the time to give us a glimpse into your financial situation.

If you also share Frugal’s determination to pay off her mortagage make sure you subscribe to her blog, Frugal Zeitgeist.

“In daily life, I even have strategic goals for drinking water and going to the bathroom.”

Blog Name: Frugal Zeitgeist
URL: http://frugalzeitgeist.blogspot.com
Start Date: March 1, 2007
Blog tagline or theme: Money, saving, personal finance, and being happy with what you already have.

A lot of new homeowners get bitten by “the bug” — known to some by its Latin name, “Houselatium Payoffius”.

The bug presents a pretty compelling premise. Says the bug in the homebuyer’s ear: “The faster you pay off their mortgage, the sooner you won’t have to worry with house payments!” or “your asset will truly be your own”. Sometimes the bug simply demands: “it’s pay back time!”

So who are these people, those who are determined to pay off their properties as quickly as possible? There are a few in the Geezeo community and even a Geezeo group of folks who share this goal. I sat down with financial blogger Frugal Zeitgeist to discuss how she caught the bug and how it’s influenced her financial house. For anyone who is or dreams of being a home owner, take note!

First, an introduction. Why did you start a personal financial blog? Have you always been interested in financial topics?

I tend to frame my interest in personal finance in terms of goal orientation. I’ve always been goal oriented and something of a strategist: in school, I wanted not only good grades, but also to be able to problem-solve and connect the dots between disparate pieces of knowledge. As an avid runner, my goals are focused not only on race times but also on training smarter as opposed to harder. In daily life, I even have strategic goals for drinking water and going to the bathroom. Some of my most important personal goals are focused on home ownership and early retirement, so it’s only natural to gravitate to the personal finance community to figure out how I can best achieve these objectives. In addition, having a blog gives the little goal oriented hamsters in my brain a place to run around without boring the crap out of my friends.

What’s the best benefit of having a personal finance blog?
Knowing that if I’m insane, I’m in very good company.

Your regular readers know you’re obsessed with paying off your mortgage. Tell us a little about how that started. Do people in your life know you keep a personal finance blog or that you are so obsessed with this particular financial goal?

Obsessed is probably the right word. I’m pretty risk-averse in many ways, and I think that stems from two key sources: first, I had a disastrous and short-lived marriage to a man whose financial values and priorities were very different from mine. If I hadn’t watched our finances like a hawk and screeched when we were obviously out of sync, we wouldn’t have built up any assets at all. Second, after my divorce, I survived three waves of layoffs that whittled my group down to nearly nothing during the last recession. Given that I’m a one-woman show and the cavalry’s not coming if I screw things up, I’d like to know that when the next recession hits, I can afford to lose my job and go work at Starbucks without losing my home. In addition, while there are a great many investments more lucrative than paying off a fixed-rate 5.125% debt, early payoff without a pre-payment penalty is risk-free asset diversification. What’s not to like about that?

My real-life friends and family know that I’m fixated on paying off my home in less than seven years, and they probably wonder what kind of crack I’m on. Only one real-life friend knows about my blog, though. He thinks I’m beyond redemption.

What are some things you do on a regular basis to control your expenses given your goal of paying off your mortgage ASAP?

I live on a screamingly tight budget for the most part. I don’t buy books; I borrow from the library. I don’t have TV at all because I can’t justify paying for cable and there’s no reception in my apartment without it. I cook at home and without processed foods far more often than I go out, I haven’t bought clothes in ages, and I go to a really skanky gym. (The budgetary aspect of this last one backfired to some extent when I picked up a foot fungus there. It cost $20 to hear a specialist say “Yup, that’s a fungus” and $30 to get the special cream to get rid of it.)

I should note that the pain in my budget only became acute when my employer introduced the Roth 401(k) last year. I ran the numbers and it makes far more sense to fund my 401(k) after taxes since the gains are tax-free and I’m planning to be a rich old bat. The difference worked out to a couple of hundred dollars per month; the only way I could fund my 401(k) after tax and pay off the mortgage when I want to was to slash my budget to extremes. . . . so I did.

Do you have a desire to pay off your mortgage as soon as possible? Or, are you just dreaming of the day you can afford to purchase your own place? No matter where you are in the homeowner path there is a Geezeo group made of members similar to you. Check them out!

Do you have an opinion about the pros versus the cons of paying off a mortgage early? There are differing schools of thought. Comment here and explain why you would or would not choose this approach based on your own situation.

Tune in again tomorrow when Frugal Zeitgeist admits: “I started this when I was a broke-ass grad student”.
What is she referring to, and how close is she to paying off her mortgage? Don’t miss it.

I know for all you college kids out there that spring break planning starts around this time (maybe even a little bit earlier)…but the talks about spring break started way back in September! I think Spring Break is really fun…I got with 3 of my really good girl friends every year and we always have a great time! But there has to be a budget…booking and planning Spring Break is always the worst. Looking for flights, finding all-inclusive hotels, the list goes on and on of things that need to be checked out. But saving money is always key for everyone…so here are a few tips…

BOOK EARLY – This is huge! Booking as early as possible leaves you with the best choices and usually the best rates on airfare…the closer you get to the date, the more to prices of the flights sky rocket (unless you really luck out)

ALL INCLUSIVE – Every spring break we have gone all inclusive! I mean really, nobody wants to have to worry about how much they are going to spend on lunch that day or drinks that night. So doing all inclusive takes that burden away! The prices might be a little bit more expensive to begin with, but just think…you are saving in the long-run for sure!

A LOT OF PEOPLE IN ONE ROOM – This one I have never actually done, but people do it all the time. You have to think that you aren’t going to be spending that much time in the room…sleep on the beach! You don’t need to necessarily sleep at night…or at least not sleep all that well.

BRING SOME FOOD – We always bring snacks with us! Granted, these never last the whole trip…but in between meals when you are napping/showering/drinking or whatever in your room or on the beach…its always great to have something to snack on that you didn’t have to buy at the expensive hotel gift shop.

AVOID CRUISES – Yes, there are times when you can find some great deals on cruises…but from my experience…you then have to find the flight (usually to Miami) and although food in included with your cruise, alcoholic beverages are not and this adds up a significant amount. Also, once you get off the cruise…if you want to do a excursion on any of the islands, these range from $75 – $100 and that for sure will take a hit to your bank account.

GROUP DISCOUNTS – Look online for flight discounts if you are planning on traveling with a large group of friends. I know that American Airlines does group discounts at www.aa.com/college and other airlines do as well.

RESEARCH — This is huge! You don’t want to end up somewhere miserable…and you don’t want to end up paying a lot of money and get nothing in return for it. Make sure you are booking a vacation from the right places and aren’t getting ripped off.

I know that everyone wants to go on Spring Break…but we also don’t want to be broke when we get back! Make sure to budget and set a limit for yourself so that when you come back and still have a few months left of school until summer vacation…you can still have fun on the money you have left. Make sure that everyone is on the same page and wants the same things!…you don’t want to be unhappy with how much money is being spent or the location you are going to.

Shopping is my downfall for sure. So, of course I fall into the trap and sign up for all the credit cards to get a discount and then I always register my e-mail to get more discounts. Thankfully, I’m pretty good about the credit cards and never really use them past the first use in order to get my discount. The e-mails are what drive me absolutely crazy! Having two jobs, a school account, a gmail account, and a Yahoo! account…the e-mailing gets a little bit ridiculous. My Yahoo! account is what I use for all of the stores and for my family…but seriously, every single day, I probably get about 4 e-mails each from Victoria’s Secret, Express, JCrew, American Eagle — you name it there’s probably a few more too!

I really just want to know why they insist on sending me so many e-mails advertising the same exact deals. I’m sure a lot of other people get this too! I mean I get it, you want me to go to the website, purchase items, yada yada yada…but the truth is, I’m going to be more willing to check out an e-mail that I receive every once and a while! Because when I receive these e-mails every single day…multiple times a day…I’ve stopped even reading the subject lines and just send them directly to my trash. And it has not gotten to the point where I am ready just to trash that e-mail account…and start new!

Does this happen to anyone else too!? It has to drive someone else absolutely crazy besides myself…

This holiday I’ve decided to give a small gift of stock to two children of a deceased friend.

The children are ages 5 & 9 and live in another state. I don’t bring this up to brag (the stock purchases are quite small). Rather, I would like to ask for your ideas. How should one give in the context of a family friend giving a financial gift? I want to give without strings attached but I would ideally like the gift to be a learning experience, too. Like I said, the actual financial gift is small. The greater gift is the practice and development of saving, investing, and giving charitably until the account is turned over to them at age 18.

My thought is if the child is personally involved until age 18 it will increase the likelihood that my small gift would be used wisely. (Though, I’m giving it knowing it could be spent on cartons of cigarettes and lotto tickets at age 18!)

Here’s what I’m thinking of writing in a way a kid could understand (after a description of what a stock is):

I would like for us to work together to save and invest for your future. For starters, you’ll need money for college.

Here is your end of the bargain: I would like you to save $50 between now and your next birthday. Half of this total you will invest in your stock account. The other half you will give away to someone who needs it more than you. You will send me your $25 and proof that you’ve donated $25 to a good cause. You choose the cause. You can donate to people, animals, or our environment. You can tell me why you chose it when you send me your $25.

Here is my end of the bargain: I will match your $50 savings. This means I will contribute $50 to purchase more stock. My $50 plus your $25 will equal $75 more in your account. Plus, you will have helped someone else by donating $25 of what you earned and saved. Remember: I will only match your $50 if you can show me that you’ve saved $25 and given another $25 away. I will take care of the stock until you are 18. When you are 18 you can use this money for college or continue to save and invest it.

I know I could pitch in $100/year for my friend’s kids. I also realize this gift isn’t particularly exciting for a kid or even make sense to the younger child. (That’s why I also sent a box of candy!) But I’m hoping with practice and encouragement from the other adults in their lives I could help them develop some good saving, investing and giving skills.

Any advice from others who wish to instill good financial habits in kids — particularly in a situation where the kids aren’t yours?