Geezeo is all about community. It’s a great place to share ideas and tips. So I wondered, what’s the best money advice you’ve received? Did you get it at Geezeo, or somewhere else?

Here are my “top 3″:

Pay Yourself First

Where I Learned It: From my father, at age 18
When I Actually Did It: Um, uh… not consistently until age 30. Too bad! It really makes a difference.
What I Learned: Now it’s even easier to have the discipline. Route that money electronically into an account you can’t easily spend!

Invest a portion of every payday in your 401(k) and/or IRA

Where I Learned It: From my father, age 22
When I Actually Did It: Age 22 — thank goodness! But, there were times when I put in very little, and years when I didn’t contribute anything at all.
What I Learned: Even if you don’t work for a company that offers a 401(k), you should still contribute to an IRA. You won’t get any “company match”, but you will see this account grow over time.

Credit Cards Can Really Suck

Where I Learned It: School of Being-Out-On-Your-Own-And-Buying-Too-Much
When I Actually Did It: Credit card debt really stressed me out ages 23-26. Harsh lesson, but well-learned.
What I Learned: Overspending is a habit you can change. Credit cards are useful, but should be paid in full every month. Go without rather than charge it and think you can pay it off later…if you can’t afford something right then, chances are good you can’t afford it at all.

What if you weren’t lucky enough to have a father give great financial advice (even if you didn’t take his advice at first)? Or, what should you do to deal with your credit card debt and spending habits? Speak up and befriend people here at Geezeo! You never know what good tip you’ll discover.

With all the emphasis in the press these days about tightening the belt I thought it would be nice to think about life with less money. Does it always mean sacrifice?

Self-employed writer Rita Farin had these points to say. I’ve added my own comments, too. Thanks for the thoughtful writing, Rita!

* Life requires living, whether you have the money or not. It also requires a plan. If you have a plan for your new life, then you can start really living by doing what you love.

One way to start planning is to write it out. The list doesn’t have to be in any particular order. The important things is to get it all out. Some items you’ll commit to doing and others you’ll think, “that’s a cool idea but I’m not ready to commit to that, yet!”.

Even though we’re talking life goals the same could be said for your financial life. Your list could include goals like “Save 10% of my income”, “Give 10% to charity” or “Start a secondary savings fund for Goal X”. In the end you may decide that you can only commit to one of these immediately.

As they say, you must start with the end in mind.

* You have more money than you think you have. Even with a budget in place, it’s hard to know how much money you actually have until you have to spend it without bringing in any income. I had no idea until I started a business a couple of years ago and lived off of my savings. That savings lasted a lot longer than I ever thought it would. And I found pockets of money that I had forgotten about, lasting me nearly two years.

I totally agree here. I literally saved my “lunch money” for 9 months and then lived off of it for nearly the same amount. How did I do this? With a budget. Get yours here at Geezeo.

* You can easily learn to live on less. Having less money taught me how to do more for myself and become more resourceful. I used to shop retail. Now I don’t.

This is great advice because it works. There are multiple groups here at Geezeo with a living-below-my-means emphasis. Find one or more that you’d like to do (or currently do!) here.

* Not having money helps you overcome your fear of not having money. Ask yourself, what’s the worst that can happen? For me, the worst that can happen is going back to a career that I once loved and still enjoy.

This is a common fear among freelancers or the self-employed. Pursuing your life dreams shouldn’t be dictated by money. But the reality is money plays a role in that it can make it easier or harder. To gain control you have to control your money. While no one should “plan to fail”, there are always ways to get back on your feet.

* There are resources for living with no money. As long as you have good credit, you can take out loans or lines of credit. You can also research grants and other available money.

Rita makes a good point here. But I’ll add the caveat: be careful not to lean into these resources too heavily and find yourself with debt you cannot manage. Be sensible in your approach.

* Having no money is a choice and is temporary. It’s a time of investing in your future to rebuild. Transitioning to a life you love at every level brings abundance. Whenever I’ve needed money, it’s come—through opportunities that land on my doorstep.

It’s said that “broke” is a mindset. Don’t let it be yours.

* You always have something to fall back on. We have so many skills. If you’re transitioning out of a career, you can always go back if really necessary. Or you can turn that knitting hobby into a money-making endeavor.

Be flexible with what you can do and you’ll be able to do more.

* Listen to yourself and commit to your passion. Friends, family and strangers may tell you you’re crazy when you decide to make a change. “You can’t make any money doing that,” they may say. Just remember that they’re expressing their own fears, and you can in fact make money from anything you love and commit to do.

We’ve all experienced naysayers. That’s part of the reason money — and by extension, dreams — are so infrequently discussed. Rather than keep your dreams to yourself, find people who will support you and guide you. If these people aren’t in your life, look for them in any of the groups here.

Think big, take action, and believe. Money itself won’t make a life worth living. Yet, managing what you have will make your life easier and increase the chance you’ll reach whatever goals you pursue.

Good luck!

Friday night is here — are you going out on the town or snuggling up with your honey? With marriage season upon us, MainStreet.com asks, “Would you marry for health insurance?”.

Kudos to an Onion-worthy video headline: “People Marry for Love Occasionally”.

Saving for a wedding? Check out this Geezeo group.

One classic personal finance book is “The Millionaire Next Door” by Thomas J. Stanley and William D. Danko.

For anyone unfamiliar, the book covers habits and strategies of “normal” people and how these behaviors contribute to a million-dollar (or more) net worth. Everyone profiled in the book share what could be called “middle class” incomes and values. A common trait is being somewhat low-key on the exterior (no flashy millionaires here!).

Chapter Three is titled “Time, Energy, and Money”. In it the authors write:

“PAWs [Prodigious Accumulators of Wealth] allocate nearly twice the hours per month to planning their financial investments as UAW [Under Accumulators of Wealth] do.”

The book was published in 1997. I wonder what the 1997 PAWs would make of Geezeo?

One of Geezeo’s strengths is the ability to collect all your financial accounts in one place. If you monitor your accounts on a regular basis it is much easier to do so at one location (Geezeo) instead of logging into many different banking websites.

But few were probably monitoring their accounts and investments online when the book was written.

Interestingly, this chapter went on to say that UAWs [Under Accumulators of Wealth] spend more time worrying about being able to retire comfortably or ever accumulating significant wealth (pg. 71). The authors conclude they have every right to be concerned! To illustrate the point, the chapter outlines the choices between two fictional doctors — Dr. North and Dr. South. Despite high-paying professions one ends up with better financial resources.

So what does this have to do with you? Do you exhibit behaviors of a PAW?

I would guess that the Geezeo community has a greater percentage of millionaires and millionaires-in-the-making that most websites. For starters, our users monitor their accounts on a regular — even daily — basis. They save time checking multiple online accounts. But, they are likely to spend more time thinking about, and acting upon, longterm financial strategies. Couple that with the ability to discuss your strategies with peers, and, I think it’s safe to assume that being involved at Geezeo is good for your net worth.

So ask yourself today: what am I doing on a regular basis to secure my financial future? Am I using my time, energy, and resources to the best of my knowledge and ability? What goal am I actively pursuing (paying off debt, saving a cash cushion, and saving for a home are three popular goals). If you’re just starting, click here to check out some of the Geezeo community goals.

For this and other personal finance books, check out the Geezeo group “Bookworms Unite”.

Here’s to your time + your energy = your money!

What “ripple effects” are happening in your financial life right now? Can you change them?

Yesterday The New York Times featured an article about people first losing their homes and then losing their possessions because they cannot pay for their storage units. (Here’s a link to the mobile phone version of the story).

A “ripple effect” occurs when something happens and the consequences spread out to touch and affect other areas, often unintentionally.

Some examples in your financial life might be:

Not paying your bills on time, every time….which sinks your credit score….which makes it more expensive to borrow money for large purchases….which makes your new bills even higher.

That’s one ripple effect cycle to avoid! Here’s another:

Not investing small amounts when you can….missing the advantages of dollar-cost-averaging….requiring more savings and/or higher, riskier returns to live comfortably when you’re older and cannot work.

Phew! Sounds terrible! But couldn’t ripple effects in your finances also be positive? Consider the inverse of the two examples mentioned. Or, consider these shifts in behavior that can dramatically change your financial life:

Figure out where you spend all your money….create a budget to maximize your resources….meet your financial goals.

Or another good one:

Get out of debt….feel more confident and in control….be a happier person.

Choose your moves wisely. Your financial behavior will allow you to enjoy ripple effects we all want — those that keep getting better and better.

So with the first wave of economic stimulus checks coming through, I am eager to see the total amount that will actually be sent to us. According to the IRS website, we should be receiving it by this Friday.

However, our family doesn’t plan on stimulating much of the economy with the check. We plan on using it to pay off a major bill. Something that was supposed to be paid off with our tax refund, but that didn’t happen due to our washer and dryer quiting on us!! (Yes, at the same time - Oh the joys of being an adult with responsibility now!)

I’ve been reading a lot of blogs and different magazine articles talking about how many are planning on following the same idea as our family - paying off a large bill/credit card debt/etc.

However, I was watching a news program the other night, CNN I believe, and it mentioned that while the government is expecting a large number of citizens to use it to pay off debt, they fully expect the economy to still be stimulated. How? They are expecting that once citizens free up debt, they will go right back to charging more because 1) it’s “available credit”, and 2) things are rising in cost (so how else will they pay for it?) I thought about it, and I agree. For the average American they are probably right.

But don’t fear, Geezeo is helping its users to redefine the average American! We have the tools to help set up budgets and track our spending so we can be better prepared for the things that might happen tomorrow. Take full advantage of the capabilities. Set some goals so that you can pay off that debt, keep it off, and have a cushion to rely on in hard times (so you really can stimulate the economy with the IRS check and a guilt free conscience!!). Share your successes with us in groups such as You Don’t Really Need It…tales of consumerism. And if you do take a step backward (which most of us do), you can always get your purchase off your chest by confessing your money sins here!!!

Do you know how to make money? Could you do better?

Here are five tips to make more money:

1 - Earn more. Here’s how: Go beyond basic expertise in your field. Do all work to the best of your abilities. Deliver more than expected. Treat others with respect. Follow through. Be the kind of person people like to be around. Practicing these habits will position you for more money.

2 - Mix Passion and Purpose. Passion and purpose are critical ingredients. Not all jobs will align with your passion or purpose. Find one that will. Work a job that doesn’t until you’re able to make the switch. Keep passion and purpose a goal. As they say, “the money will follow”.

3 - Financial education. Make it a priority. It’s not what you make, it’s what you keep. An increase in money won’t matter unless you’re already practicing sound money management. Some good financial habits: saving or investing 10% of your take-home pay, living below your means, and paying off credit card debt. Here are six bad habits to quit immediately!

4 - Expand your skills. New skills keep your mind sharp. They also provide a competitive advantage in the marketplace. Plus, the more you know about a variety of topics the more you can relate to others. That directly plays into #1, “be the kind of person others like to be around”. Expand your experiences.

5 - Check your attitude. It’s really easy to complain. It’s more fruitful to look on the bright side. You attract more money-making possibilities when your mind is open and your attitude is good. Believe in your ability to control and grow your finances — and you will.

Here are four “one click” solutions to help you manage your cash. Got your mouse trigger-finger ready? Here we go!

1 - Money Confessions — Know you’re not alone. People everywhere spend their cash foolishly. Confronting your own “money mistakes” is job one if you want to change your behavior. Just one click, here!

2 - Name Your Goals — It can seem overwhelming. So, make a list of your financial goals. If you list them they tend to lose their “impossibility” factor. Click here once to see a particularly popular goal.

3 - Find Others Like You — Misery loves company. But the inverse of that is true, too. Happiness loves company, too. Find people who are working to make their financial lives better. You can share your progress and encourage each other. One click is all it takes.

4 - Register with Geezeo! We’re a free service. We started in order to get handle on our own money. Now we’re a growing community. To get started simply fill out a simple form and click “register”. That’s one click you won’t regret. Click here!

Geezeo: saving your wallet, one click at a time!

“Not one had a clue what they were paying in fees.”

Several things can restrict a healthy retirement. One of the least discussed is the role of fees. Several kinds of fees can add up: fees to your financial advisor, fees associated with owning an investment, and fees tacked on in unexpected places.

I spoke with Suzanne, a Geezeo user who runs the Geezeo group “About Financial Advisors”. She realized in the nick of time how much fees were costing her. She now teaches others common-sense ways to keep your fees at a minimum for maximum returns.

Suzanne, you narrowly escaped some bad financial advice. But, you rose up to take the lead yourself. Can you tell us what happened?

I started putting money into my retirement account when I was in my early 20’s, Katie, but had it all in company stock. When I retired, at 47, I realized how much risk I had taken and that it was luck that my stock had done well. I was completely ignorant about investing and thought I’d better get a financial advisor. I also learned a bit about index funds and how fees badly hurt returns.

Every one of the twelve financial advisors I interviewed charged high fees (it was a bear figuring them out) and advised against index funds! I knew this was wrong and concluded I had to do my own investing. I was terrified! But I kept reading and learning and I started to see I was making it much harder than it needed to be. I set up a simple, very low-cost, diversified portfolio that I understood and that has done very well. I spend less than 8 hours a YEAR on my investments.

I started looking at investments owned by my friends and family and all of them had been sold poor-performing, expensive funds. Not one had a clue what they were paying in fees. Most thought…nothing. So I started helping people learn, and it turned out to be so much fun! I recently started a website that shows people how to use Morningstar to look up information about their funds and learn how to do their own investing.

www.saveyournestegg.com

What’s the best part of taking control of your own financial decisions?

It’s a four-way tie! Saving all the fees (literally hundreds of thousands of dollars over time), knowing what is happening to my money, the self-confidence I earned and being able to help people.

Here’s something a ‘financial advisor’ will never tell you: Objective studies are showing that people using ‘financial advisors’ usually get much lower returns than those doing their own investing. Here’s one:

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=616981

What’s the best advice you’d give someone who is intimidated by choices or “experts”?

I think we all start out intimidated! The industry is set up to intimidate us. Ignore the noise. You can set up a great asset allocation with 4 - 6 funds and there are free tools to help you do that. For example:

https://personal.vanguard.com/us/planningeducation/general/PEdGPCreateHwToCreatePlnContent.jsp

Just honestly assess your risk tolerance (my site has links to several quizzes) so you won’t panic and sell low. And, don’t chase past returns! Read a good book, like this one:

http://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/0471730335

It is so important that people take responsibility. I know how much people want to trust their ‘Financial ADVISOR’, but that name is very misleading. 95% of ‘financial advisors’ are brokers - salesmen that work for a firm, not you. They make no money selling low-cost, no-load index funds unless they charge an ongoing % of assets (wrap fee) which ruins the benefit of low-cost funds. My opinion: If you must, use a fee ONLY (not fee BASED) planner to set you up and pay a flat fee or one time fee, not a percent of assets. If you have a special need, find an expert in that area and pay them by the hour.

This scares me: The safe withdrawal rate in retirement is usually considered to be 4% BEFORE CONSIDERING FEES. (This is what you can safely withdraw from your investments and not run out of money before you die). It’s typical for clients to pay 2 - 3% of their investments in wrap, commission and fund fees. What does that leave the retiree? (Here is a tool to help people find out: http://fireseeker.com/firecalc.php )

Figure out (or get in writing) every single fee you pay, including the cost of turnover within your fund, which is not disclosed in your expense ratio. Add up the fees and know what you pay dollar-wise every month. Would you write a check for that amount every month?

What do you discuss in your Geezeo group?

After many years of research I have come to the conclusion that much of the financial advice industry is a sham. As you might imagine, that makes for interesting discussions.

I bet! Thanks, Suzanne, for discussing this often overlooked part of longterm financial planning. If you’d like to discuss these and other topics with Suzanne or others in her group, please see “About Financial Advisors”.

Many things can speed up or slow down your quest for financial success. It may be a long ride, so a road map (or financial plan) is a key travel companion.

When you begin to create this “road map”, you will need to make some tough decisions when it comes to your time, energy and money. Sometimes, there can be a conflict . For instance, you may end up needing to work over time at work. Unfortunately, that means that amount will be be taken away from quality time that you will get to spend with your family.

The trick to making a successful financial plan is balancing the people in your life with all of the things you need to take care of and do. This way, each area is supporting the others. If you have a success in one area, this often promotes success in another.

What are some of the benefits of having a financial plan in place?

A financial plan will:

~help you learn how finances work in your life.
~help you make good decisions regarding your life.
~show you where your money is going.
~help you find ways to save money for specific items/goals.
~helps you figure out if you can live within your means, or if you need to find a way to create more income.
~helps you find a way to cut your spending - by a little, or a lot!
~provides methods for keeping good records of spending.
~creates a way to measure your progress.

With all this in mind, it makes sense to take the time to make a financial plan, just as it does to plan your trip with a road map and potential attractions along the way. Join one of our groups, and explore the many “financial attractions” that are available in today’s market. Go ahead and start setting yourself some goals. Who knows, financial success could be just over the next hill.