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2008 Financial Goals

Patrick over at Cash Money Life is running a contest to encourage formation of financial goals for the next year. In order to set a goal that has a hope of being met, he's asked that everyone use the SMART mnemonic to make sure that our goals are: specific, measurable, achievable, relevant and time-bound.

My most pressing financial goals really are organizational goals. I have accounts at several different brokerage houses and banks. I use several online-only banks and financial institutions (i.e. Paypal). Do I know where all my money is? No! could I find out if I really had to? Yes, but...

Ah, that but. See, here's my goal. By the end of 2008, I want to have fully implemented a financial organization system. This might just be a Word table, an Excel sheet or even a Notepad file. It might involve using one of the newer online services, like Mint or Wesabe. It might just be a notebook filled with information. The means isn't as important as that it gets done.

To do this, starting in January of 2008, I'll gather the information from each bill and statement that comes in through paper mail. In February, I'll tackle those that come via email. In March, I'll seek out the ones with no statements at all (i.e. Paypal, which only sends me information if I use it). Thus, by the end of March 2008, I should have a clear picture of how much I have, how much I owe and where I hold and spend my money. I'll be able to make changes to my portfolio based on actual information rather than on what looks good in the financial section of the newspaper. And, I'll better be able to track expenses.

There's another component to financial organization and that's the brutal reality of all the paperwork that we get. I have two Rubbermaid bins full of several years' worth of bill stubs, check registers, bank statements, and what have you. Why aren't they filed neatly? Well, that's a good question. If you've peeked at my other blog, you'll know that I'm a hoarder. I love stuff, and I hate letting go of things. But I also despise disorder and clutter. Ironic, eh? In the past, when I tried to set up a financial organization system, I would try to make it perfect. Everything in chronological order, alphabetized...you get the picture. Guess how much of my filing I got done? Yeah, not much. In fact, I have two large Rubbermaid bins full of unfiled, unorganized paperwork. Why? Because my system was too labor-intensive. I just couldn't keep up.

My new system will involve a simple rack for my desk, those manila file folders, and a file tray. After a bill is paid or a statement opened, it will go into the file tray. Once a week, I'll take what is in the tray and sort it into its appropriate folder. Once a folder is full, it will go into the file cabinet and a new one will take its place.

The true test of how this all works will be at tax time. I'll update you then!

Mega Returns Master Buffett

So, you've heard of Warren Buffet, of course. Master investor, buddy of Bill Gates, Bridge player, general nice guy. Master philanthropist (gave away a huge chunk of his money after being inspired by Bill G.).

A recent Bloomberg news article discusses just how good a stock picker Warren Buffett is. "Buying whatever billionaire Warren Buffett bought, often months after his share purchases, delivered twice the return of the Standard & Poor's 500 Index during the past three decades." The best bet for an individual is to buy class B shares of Buffett's company, Berkshire Hathaway. Of course, the price for a single share runs around $4,475.00. Luckily, you can buy partial shares.

If you wanted to have some fun, you could open an account through a company like Zecco, which offers ten free stock trades per month if you have an account balance of at least $2,500, and set up your own little Mini-Berkshire Hathaway.

Black Friday!

So, yes, I went out today, Black Friday, the most infamous shopping day of the year. I deliberately planned our departure from home to miss the most common doorbusters. That is, we left around noon, at least an hour after the end of the craziness. We ventured into the downtown core of our not-so-fair city, visiting two bookstores, a Starbucks, a brief stop at the Gap, and a peek into the window at Nordstrom to see Santa (he waved at us).

Along the way, we encountered some environmentalists (no, I don't have "a minute for the environment today"), a sax-playing Santa, and the oddest group, well-dressed folks carrying black signs with white lettering that say "Buy More Stuff" and "Buy Stuff". They seemed cheerful, and completely serious. A gentleman in a camel overcoat handed me a card, which merely said "Buy More Stuff" and listed a url.

Now, I've heard and read about Buy Nothing Day and that makes perfect, lovely sense. I want to believe that the Buy More Stuff folks are being delightfully ironic, but if you look at the site, well, the serious tone doesn't slip. They're devilish, eh? Lots of photos on their site, here's one from my own not-so-fair city.

And, to be truthful, I'll tell you what I bought today. Two small items for holiday gifts, coffee and hot cocoas for the family, and a math workbook for my older daughter (actually, DH paid for that). I checked two books out of the library. I windowshopped. I tried on a ladies undergarment. Ooo La La!

Happy Thanksgiving!

This holiday has the grocery stores hopping! You can find some great deals, and if you have a stand-alone freezer, you can really take advantage of the sales. If you have the space, and have the ability to plan, go ahead and stock up. Buy an extra turkey, cans of pumpkin (great for soup, quick breads as well as the pie), cranberries (freeze the fresh ones right in the bags to use later for cranberry bread, extra sauce...hmmmm...I have a great Crock-Pot recipe for cranberry beef...)

Happy Thanksgiving! Enjoy your day, don't eat too much, and don't watch too much football!

Year End Activities

We're closing in on the end of the tax year, if your accounting year follows the IRS's that is.

That means it's time to make those last donations (before end of calender year), think about your IRA and Roth IRA (due by April 15), and make any stock or other security sales you want to count for this tax year.

It's time to go over your portfolio, and check your holdings, see what you have too much of and what you'd like more of.

Preparing Financially for the Holidays

Ah, the holidays we say these days. The winter holidays. Can't say the religious ones, can we? The stores are mostly full of holiday trees and winter themes. Be bold and talk about what you actually celebrate!

But, anyway, on to the money aspect. The Christmas season is huge for retailers. It's when they make the bulk of their profits. It's gold for them. They need us to buy. But always remember, it's our choice whether we buy or not.

The Consumerist has a report from All Financial Matters with six tips for surviving the season with your budget intact.

The Consumerist takes issue with the last item, which involves actually (gasp) talking with your family to coordinate gift efforts. I think that is a great idea, although it's quite a loaded issue for many families. I finally had the talk with my extended family a few years ago. Essentially, I asked if we could please stop the obligatory gift giving amoung the adults. Keep giving gifts to the kids, but don't feel that a gift must be bought for each adult. Most took it not just well, but as a relief and ever since, the gift tide has ebbed. Less clutter, less unnecessary spending, more happiness.

Welcome to Clean Simple Finance

Since 2006, I've been blogging about clutter reduction, hoarding, the tyranny of stuff, and moving toward a cleaner, more simple lifestyle. Throughout, I've had a sub-focus on finance, since having a clean house is so closely linked with having clean and clear finances.

To that end, I've started this blog to discuss finance. The clean and simple side, the complicated side, and most important, the necessary side.

Join me here to hear more about my philosophy on finance. I'll be posting several times a week on various financial topics.