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Break Out of Your Personal Finance Slump

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This guest post was written by Go Banking Rates, bringing you informative personal finance content and helpful tools, as well as the best interest rates on financial services nationwide. Follow them on Twitter at @gobankingrates.

Personal finance can be very exciting. Unlike most things in life, the results of your efforts are crystal clear. If you’re working hard to battle your debt, you see the little increments of every dollar you pay down in the short-term. Over the long-term, you see the giant leaps you’ve made since you started your plan. The same goes for saving money. The experience of knowing that you have your finances in control can be very rewarding.

Yet, even the best of us sometimes lose track of our budgets and indulge in a little overspending. That’s usually not a big problem, but if you start cutting yourself too much slack too often, you run the risk of negating all the time and hard work you put into getting yourself fiscally fit.

Motivate Yourself Again

If you feel you’re suffering from personal finance burnout, set some time aside to regain your motivation. Whether you’re trying to pay down debt or save money, the key to personal finance is all in your desire and discipline. Once you lose sight of that, it’s very easy to fall back into bad habits that leave your debt spiraling out of control and you living paycheck-to-paycheck.

Matt’s note: Remember… those in the midst of financial slip ups need not be the only readers taking this to heart, others who can benefit greatly are those like myself, who have reached a financial plateau but could take things to the next level.

Ask yourself these questions again. Maybe your motivation has waned because you don’t remember the answers to them:

  • Why are you saving money/paying down debt? Maybe you’re saving for retirement or a house. Or maybe you’re paying down debt to build your credit score or so you won’t have to worry about interest piling up.
  • Why is it important to you? Only you can answer this question and that’s what makes it more special. The reasons are for no one else but yourself.
  • What are your goals to help you get there? Be realistic. If you set the bar too high, you can easily get discouraged when you don’t clear it. Aim low and accomplishing your goals won’t feel very significant.
  • How do you plan to accomplish these goals? This will serve as your guideline to follow as you execute your plan.
  • When do you want to accomplish them? Give yourself a deadline so you won’t put it off too much. Stay disciplined.

Use your answers to these questions to refocus your strategy and regain your motivation. The most important part to personal finance success is to want to succeed. As long as the want is there, the rest should fall in place.

Take Control of Your Money

Just like the way you can see your personal financial successes, you can also see your mistakes. It’s clearly listed for you in your bank statements and credit card transactions. Take these steps to get back into the driver seat:

  • Own your mistakes: It’s never easy to have to look back at your spending binges. It’s easier to just forget them, but you need to face them head on and identify what you did wrong and how you will prevent that from happening again. Analyze your spending habits.
  • Talk to someone: The buddy system works. Find a friend who’s also trying to get their money right and talk about your challenges and ideas. You can try seeking professional help like debtors anonymous meetings or a debt relief specialist if you feel the need. There are many non-profit organizations out there that can help as well.
  • Celebrate your wins: Fighting debt or saving money is about fighting a bunch of small battles that add up to a greater result. Take joy in those little wins and carry that momentum into the next one. It all adds up in the end.

So whether you’re saving cash for a big purchase or trying to pay off debt because of one, remember that money is only a means to getting what you really want. Don’t think about it as little green sheets of paper or just a number you have to monitor. Think of it as one step closer or farther away from your real goal.

DFA Link Rally: Gardening Saves Money

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Jabs family garden plans 2010

You may remember that we fancy ourselves amateur gardeners, and while we never grow a lot, we do like to grow at least some of the things we love to eat.  When you grow your own… you know how it was grown, how it was fertilized, and where it comes from – and we love that.  We also rather enjoy paying $2.00 for a plant that grows to produce 10x its cost in delicious bounty, and we love walking 30 feet to get it… we think it’s a darn good ROI.

This week we weeded the garden and readied the homemade organic fertilizer from our diy vermicompost bin.  Now all we have left to do is plant, which will only take about an hour.  In the photo you can see our new plants on the left, both our garden beds in the middle (with the herbs already present in the small bed,) and our rain barrel on the right.

One other thing worth mentioning is that our Thyme and Sage plants are apparently perennial… we did not know that and seeing them come up on their own was a pleasant surprise.  Another thing that came up on it own was the Cilantro from the Coriander seeds I planted last summer.  I had forgotten about them because they never came up last year, but they sprouted all over the place so far this year.  Cool stuff.

This year we have:

  • Sage
  • Cilantro
  • Thyme
  • Basil
  • Tomato (Rutgers, Primtimes, and Sungold cherries)
  • Zucchini
  • Lettuce (Green leaf and Oak leaf)
  • Cayenne Peppers

Although we are yet undecided, we may supplement what we are growing with a local CSA membership.  Either way, we cannot wait to taste our homegrown veggies, and cannot wait to break in our pressure canner to preserve whatever we cannot eat or turn into salsa.  What about you, are you growing a garden this year?

Link rally for this week

Save Money on Gas – Buy a Scooter

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Buy a scooter… don’t be afraid

While I’m fully aware a lot of people think driving a scooter is wimpy, dorky, etc., I’ll also challenge those closed minded, old-fashioned opinions as being too concerned with what others think.

It makes sense. Our ability to think outside the box has been beaten out of us by a consumeristic culture and persuasive advertising.

Despite numerous benefits and few draw backs – unless you’re a college student – owning a scooter is relatively uncommon in most parts of the United States – not so in other parts of the world.  When considering the pro et contra, buying a scooter can stack up quickly into an economically wise purchase.

Scooters, moped, and motorcycles

In the interest of this article, scooters are synonymous with mopeds and defined as follows:  a 2-wheeled vehicle with a saddlelike seat mounted on the footboard and being propelled by a motor – and for the purpose of economy let’s focus specifically, but not entirely, on scooters of the 50cc motor variety (to be further explained later in the article.)

A scooter ≤ 50cc and a motorcycle ≥ 51cc. CC = cubic centimeters and refers to engine size (volume of air and fuel mixture intake in a cylinder bore.)

Although some states differ, most states consider any motorized bike 50cc or less to be a scooter and any bike 51cc or higher to be a motorcycle… a very important distinction because many of the benefits below do not apply to motorcycles.

Since scooter/moped laws differ from state to state be sure to check your applicable state laws pertaining to helmets, insurance, registration, etc.

Let’s take a look at some benefits, along with a few buying tips, as seen through the eyes of this fledgling scooter owner; but first, some helpful details about my scooter.

My scooter

My scooter is a 2009 JCL model MP50B.  I purchased it in mid April 2010 for $600 despite a KBB value of $710 at the time of purchase – I love a good deal.  The bike had been driven only 385 miles, was in pristine condition, and ran like a top.  One month and 450 miles later… everything is on the up and up and I couldn’t be more pleased with my purchase.

Save money on gas

Driving a scooter will save you a boat-load of cash on gas.  Let’s look at the specifics of how much I have saved in just one month.

Since purchasing my scooter one month ago (at time of writing) I have driven 450 miles on 4 tanks of gas.  The tank is 1.32 gallons and the scooter gets 100 mpg, using an average gas price of $3.00/gallon I have spent $13.50 on gas compared to the $90 I would have spent driving my 2000 Jeep Cherokee Sport, which gets a mere 15 miles to the gallon.

Conclusion?  My scooter gets 6.667x better gas mileage than my Jeep and should pay for itself in one driving season in gas savings alone.

Save money on vehicle maintenance

Every mile I drive the scooter means one less mile on my Jeep.  Maintenance and parts for my Jeep are much more expensive than for my scooter.  I can perform maintenance on the scooter myself and replacement parts are much less costly.

Save money on insurance and registration

Again, although some states may differ, in Michigan a 50cc scooter does not require insurance coverage.  The only cost associated with driving my scooter, other than gas, maintenance, and repairs… is the registration tag.  Michigan charges $15 for a 3 year registration sticker.  That’s it folks, $5/year.

Save money on a helmet

In many states a 50cc scooter rider is not required to wear a helmet.  While many choose to wear a helmet anyway, they are not required to by law.  This could obviously draw a lot of comments, but putting aside all that debate, the fact remains… many state laws do not require a helmet on a 50cc scooter.

Buy a scooter used

Just as purchasing a slightly used vehicle is often a better decision than buying new, the same is true for scooters.  Here are my tips for those looking to buy a scooter used:

  1. Do not buy a scooter from a college student. No offense young’ens… but I was a in college a few years back, which is precisely why I’m telling people not to buy a scooter used from a college student.  Sure, there are always exceptions to the rule but there is a reason their insurance premiums are high, so use common sense.  🙂
  2. Buy a scooter from older folks. Many RV’ing retirees buy scooters for buzzing around RV parks and campgrounds while traveling.  The truth of the matter?  They don’t usually end up using them much and tend to take great care of their possessions.  This means low miles, routine maintenance, fewer wipe outs, and no beating on the scooter.  Find a good price and you have yourself a recipe for a good buy.
  3. Use KBB to estimate buying price. Before you go test drive a scooter, be sure to check out the Kelly Blue Book Motorcycle Retail page to determine a solid buying price.  Simply pick your year, make, model and size to reveal what a low-mile bike in excellent condition is worth.  Print the page and take it with you as a bargaining chip (unless they’re asking less than the bike is worth of course.)
  4. Use Craigslist. Beyond the obvious benefit of using Craigslist, I recommend using a CraigsList search/notification app.  Said application will allow you to input a search term – like “scooter” – and set up alerts for all newly placed relevant ads so you can be the first to contact the seller.  That is precisely how I found my, virtually brand new scooter for such a great price.  I was the first to call, first to visit, first to make an offer, and it paid off.
  5. DO NOT FINANCE. If you don’t have the money saved and previously budgeted… don’t buy anything.  Period.

Wear a helmet

Yes, even if you don’t have to, and yes, even though I listed it as a possible money saving benefit above.  If you’re not going to wear a helmet, consider purchasing a windshield, and a the very least be sure to wear some type of eye protection like eye glasses, sunglasses, or Dumb and Dumber scooter goggles.  😉

Perform regular maintenance

To ensure optimal operation and to extend the life of your scooter be sure to follow the maintenance schedule supplied by the manufacturer.  Most everything is routine like checking/replacing engine oil, gear oil, air filters, tire pressure, etc.  You will not need to hire a mechanic unless you’re diametrically opposed to elementary mechanical maintenance.

Dress warm and carry extra clothing

Even in a northern state of Michigan, I can easily get 7 months of ride time each year, but not without proper winter gear.  If you choose not to wear a helmet, when it’s chilly out you’re well advised to wear a winter cap; while you’re at it… don’t forget the gloves.  Be sure to wear a jacket that seals off your neck and wrists, since failure to do so can turn a cool ride into a freezing cold ride really quick.

Scooters are cool

Don’t let anyone fool you.  When you drive a scooter you save money hand over fist, you get to ride down the open road, and of course… chicks dig guys on scooters.  Just ask my wife.  😉

What are you waiting for?  Go open an Capital One 360 savings account, label it “Sweet Scooter Fund,” and start saving for your soon purchase!