Nickeled and Dimed

If this is your first time visiting Centsability to Wealth you may want to see what we are about , read about me, or read our introductory post.

This week’s Open Mic question comes from Zach Thomas in Scottsdale, Arizona.

I have been reading your site for about a month now and have really been working to get my personal finances in order.  So far I have managed to pay off nearly all of my credit card debt and build a modest emergency fund.  But my question doesn’t isn’t directly about me.  It is about my parents.  The more I get my own finances in order, the more I realize how out of order my parents finances are.  Although they are both over 50, they have very little saved in retirement accounts.  They have credit card debt exceeding $10,000.  And they continue to buy things they can’t afford.  My question is, how should I go about talking to them about their finances without making them mad?  Where is the first place I suggest that they start?  Should I even talk to them at all about it?

Thanks for the question, Zach, but wow, this is a tough one.  Talking to anyone about their finances, unsolicited, is extremely difficult.  Doing it with your parents can only be that much harder.  But if their finances are in as bad a shape as you say, I think it is something you absolutely have to talk to them about.

First of all, their finances do effect you.  What if something happens and they can no longer work, who do you think will be supporting them?  Probably you.  So you have an obligation to try and get through to them about their finances, not only for their own sake, but more importantly for yours.

Where and how to start the conversation is the tricky part.  And without knowing you or your parents, it’s hard to give the best advice.  But here is how I would handle the situation if it were me:

I would first start by trying to get them to read a few personal finance books.  Before you even mention that you are concerned about their finances, simply tell them you have been reading some awesome personal finance books and would like them to read them too and get their feedback on them.  Which ones you suggest is up to you, but two that I would strongly consider are Your Money or Your Life and Dave Ramseys The Total Money Makeover.  In my opinion these two books are powerful enough to “scare” someone into changing their financial ways.  Make sure you read the books yourself first, if you haven’t already, so you can discuss them with your parents after they read them.

If you are lucky, after reading these books a light will go off in one or both of your parents heads and your work is done.  And these books are powerful enough to make that happen.  But if it is not enough, or they just refuse to read them, it’s time to sit down with your parents and express your concerns.  Explain the behavior and situations that concern you and why it concerns you.  Start first with why it concerns your for their sake and then why it concerns you for your own sake.  Be prepared for the conversation with notes and specific numbers.  Be ready to explain the actions you want them to take and goals that they can shoot for.  Perhaps even have the names and numbers ready for Certified Financial Planners in your area they can turn to for help.

If you are still not getting through to them at this point, it’s probably best to let it drop for now.  Explain to them that you will not be there to help if a financial disaster hits and move on.

Financial problems are very similar to drug problems or drinking problems or eating problems or nearly any other kind of addiction problem.  Until the person decides they want to change, you can’t help them.  The best you can do is give them the information they need to make the changes they need to make, offer encouragement and hope for the best.

Eventually your parents will find the errors in their financial ways and be willing to get your help.  In the meantime don’t let it ruin your relationship with them.  Be glad that you are getting your finances in order so early and be their to help when your parents are ready to change.

What advice would you guys give to Zach?  Have you had to deal with family or friends who were awful with their finances?  How did you approach the situation?

If you would like to be featured in a future addition of Open Mic, send your personal finance related question to centsabilitytowealth@gmail.com.

If this is your first time visiting Centsability to Wealth you may want to see what we are about , read about me, or read our introductory post.

In yesterdays guest post, Nate talked about goal oriented savings.  He used his personal situation–moving to Egypt–as an example of identifying a goal (that will cost money), figuring out how much it will cost, and saving for it.  By taking these steps, Nate says, we can do the things we are passionate about (moving to Egypt in his case, perhaps buying a new TV in yours) without ruining our finances.

In a continuation of the goal oriented savings theme, I want to talk SmartyPig, a goal oriented savings account. SmaryPig is similar to any normal online savings account.  You deposit money from your regular bank account and have the option of making reoccurring automatic deposits in the future.  But it also offers many features to cator to those who are simply saving for one big goal.

After opening an account with SmartyPig, they will ask you what your goal is.  You will then tell them how much money you need to meet this goal and when you need the money by.  With this information, SmartyPig will figure out how much you need to deposit each month to reach your goal.  Pretty cool stuff, but not ground breaking by any means.  Here is what puts SmartyPig over the top for me:

It allows you to make your account “public” (this term is misleading, people will need to know your email address to access it and they will not be able to get any information about your account, so it is not truly public).  By making your account public, family and friends can use your email address to locate your account and can then donate money to it.  Mom and Dad get a little extra money on their tax returns?  Guide them over to your SmartyPig account and they can make a nice little contribution.  They also give you a widget to put on your Myspace and facebook pages that will allow anyone on your friends list to donate money to your goal.

Now if you are simply saving for a big screen TV, you probably won’t find many contributors.  But if you are saving for something life changing, like Nates move to Egypt, or my up coming wedding, you may find many willing contributors.  And even if it is just $10 here and there, every little bit helps.

And here is the kicker with SmartyPig; they are currently offering a fantastic 3.25 percent rate (ING Direct is currently offering just 1.85 percent!).

To sum up all their qualities, SmartyPig will allow you to identify a savings goal, tell you how much you need to save each month to reach, allow and encourage others to contribute to your cause and give you one of the best interest rates around.  What’s not to love?

Registering with SmartyPig is simple.  Just head over to www.smartypig.com, click the “register now” tab on the right side of the front page and follow the simple instructions from there.  All you will need is the bank account information from the bank you will be making deposits from and your goal information.

If you have a large savings goal you are looking to reach, give SmartyPig a try.  The interest rate alone will make it worth your while.

Please continue sending any personal finance related questions, suggestions and story tips to centsabilitytowealth@gmail.com.

If this is your first time visiting Centsability to Wealth you may want to see what we are about , read about me, or read our introductory post.

This is a guest post from loyal CTW reader, Nate.  He has been a part of the community here since our very first post and I often discuss financial issues with him outside of Centsability to Wealth.  When he told me he had a guest post to contribute, I was excited, and he did not disappoint.  The following story is all his.  My comments will follow in this color font.

As a long time reader of CTW, I’ve thought a lot about contributing a guest post.  A recent developement in my own life provided me the perfect opportunity for one.  Without divulging too much into my own finances, let me say that  I am employed, making enough in a month to pay every bill I have, and am planning on moving to Egypt this fall.  I graduated from The Ohio State University in December with a degree in Political Science.
 
Now, how is this all relevant, you might ask?  Well, a move to the other side of the planet is not exactly a cheap endeavor.  I certainly don’t want to be broke in Egypt, and while I have plans to aide me in finding work, nothing is guaranteed.  This brings me to the moral of today’s story: goal oriented saving.
 
I know how much money I need to be able to live for a certain amount of time in Egypt.  I know how much I’ll have to save.  I like Josh’s boat metaphor, so we’re going to run with it.  I know my destination.  I have a financial goal that, once it is achieved, will enable me to do something (in this case, move to Africa). 
 
It doesn’t make a whole lot of sense to simply sail this ship with no direction.  No one (except my girl friend, whose sanity I frequently question!) wants to simply float around the planet on a boat, never docking.  I want to stop in all the cool port cities along the way.  Sydney.  Alexandria.  NYC.  Amsterdam.  Seattle.  Obviously, the entire journey is BIGGER than those cities themselves, but that’s the goal while sailing.
 
So, we need to put destinations or goals in our financial plans.  Remember Josh’s story about his motorcycle?  That is the perfect example of why you need goal oriented savings.  If Josh had planned to get a bike as a destination rather than an impulse purchase on credit, he would have evaded the worst financial decision he’s ever made.  Perhaps your goal is a brand new HDTV?  Set a goal for what you want (and when you want it), and then find a way to save extra money every month to achieve it.  So you want that $600 TV.  Set a goal to save $100 a month for six months.  Make it achievable. 
 
In the mean time, take the time and do the work to make sure you’re getting the most out of your goal that you possibly can.  Research televisions.  Figure out how a bike will work out for you.  Learn about the costs of living in Egypt, and the job prospects.  Read reviews, learn from others, read forums.  This makes it even more worthwhile to achieve the goal, and ensures that you’re making an informed purchase.
 
Saving money towards a goal not only lets you see short-term fruits of your saving labor, but keeps you from going into debt.  While credit-cards are O.K. when used wisely, why pay the extra interest? This gives you a destination for your boat, and allows you time to prepare for what you want to see (research your product) when you dock.  Before I go to Egypt, I will have scoured every nook and cranny of the internet in order to find out all I can about my career path there, housing, utilities, food costs, what I want to do while I’m there, etc.  You should do that as well with your goal.  Otherwise, you end up lost and not always making the best decision for your dollars.

I love this.  I feel like too often I focus on just the money aspect of personal finance.  While money is important, it is not most important.  It is simply a means to an end.  We’ve all heard the phrase “money can’t buy you happiness”, and it is certainly true.  But by setting goals, like Nate is with his journey to Egypt, you can use money to buy things that do make you happy, without ruining your financial life.  I wish Nate the best of luck on his adventures ahead and hopefully he will keep us updated when he is living across the planet.  He could share some great stories about the financial situations over there.

I would love to have more guest posts in the future.  Not only do they give me a break from writing, they give you guys a chance to hear things from a different voice and different point of view.  If you have an idea of a guest post you would like to post on Centsability to Wealth, I would like to hear it.  It can be anything that is related to personal finance in any possible way.  Send any proposals to centsabilitytowealth@gmail.com.

Technorati Tags: personal finance, saving, debt, goals, money

The pyschology of spending is an interesting subject.  I’ve talked plenty of times about figuring out where you spend your money, but figuring out why you spend money is even more important.  One key area in the pyschology of spending is whether or not you spend more money when you use credit or debit cards to pay for things.

Nearly all personal finance experts will tell you that you are more likely to spend money when you use plastic instead of cash.  And there are plenty of studies to back it up.  For me, however, it is the exact opposite.  When I pay with cash, I am much more likely to spend money on things I don’t need or had no intention of buying.  And while I am certainly not smarter than the experts,  I think the same is true for many people my age, regardless of what the overall statistics show.

Why I advise paying with plastic over cash

1. I spend less money using plastic.

As I said above, I realize this is the complete opposite of what most finance experts will tell you.  And for you, this may be completely wrong.  But I think for those people who pretty much have their finances in order, it is pychologically easier to not spend as much money when you use a debit or credit card instead of cash.

When I pay with my debit or credit card, I think of it as money coming directly out of my account.  On the few occasions that I have cash with me, I think completely differently.  I think of the cash as already a sunk cost out of my account, and am much more loose with how I spend it.  I am infinitely more likely to spend money on things like fast food, movies, magazines, candy and all other unnecessary expenses when I have cash in my wallet.

For whatever reason, my mind considers my cash gone as soon as I take it out of the ATM machine, which makes me much more likely to spend it.

2. It’s harder to track your spending with cash.

Tracking your spending is incredibly easy when you use plastic to pay for everything.  Simply buy some software like Quicken, or use free internet software like Mint, and every purchase you make with plastic will be tracked with the touch of a button.

When you use cash to pay, you have to track your spending the old fashioned way, with pen and paper.  If I had to physically write down everything I spent money on, there would be no chance of me doing it.

By knowing my money will be tracked and monitored when I use plastic to pay, I am less likely to spend it on things I don’t need.  When I use cash, and I know I won’t track it, I am again more loose with how I spend it.

3. I earn rewards when I pay with plastic.

This reason is admittedly a slippery slope.  The potential to earn free air line miles or cash back could serve the opposite purpose I intend to convey with this article, it could cause you to spend more money.  But only if you aren’t careful.

If you can use them responsibly, though, using your credit cards could earn you some serious cash back or make your future trips much less expensive with free plane tickets.

In my opinion there are many benefits to switching to an all plastic financial system.  And in my experience, you will ultimately begin making less impulse buys when you use plastic.  But in order to get to a place where you can implement an all plastic system, you must first get your finances in order and be responsbile enough to use credit cards. 

I’d be interested in hearing your thoughts on this.  Do you find you spend more money when you use cash or plastic?

Please continue sending any personal finance related questions to centsabilitytowealth@gmail.com

If this is your first time visiting Centsability to Wealth you may want to see what we are about , read about me, or read our introductory post.

On Wednesday we talked about the personal finance formula, which is Cash flow= How much you earn - How much you spend.  Yesterday I listed 30 ways to cut your monthly expenses.  Today we will go over the other part of the equation, ways to increase your monthly earnings.

When looking for ways to increase their monthly cash flow, most people will immediately start looking for ways to cut expenses.  This is fine, cutting expenses can be a great way to improve your finances.  But you can only cut your expenses so far.  Your ability to earn more money, on the other hand, is essentially limitless.  Yet most people ignore this part of the equation.

So here is a list of some ideas to increase your monthly earnings:

• Get a second job- No one wants to work more than the 40-60 hours a week the work in their “real” job.  I understand that.  But if you need extra money to pay off debt or build an emergency fund or simply save for a vacation, nothing is more effective than get a part-time second job.  Even a minimum wage job working 20 hours a week could increase your monthly cash flow by $400 or more.  $400 extra dollars a month is huge!
• Sell your stuff on eBay or Craigslist- Selling electronics, clothes, furniture, books or nearly anything else on eBay or Craigslist can be a great way to earn a quick $100 or much more.
• Turn a hobby into extra income- Whatever your hobby is, you can probably find a way to make money off it.  Play the guitar?  Give guitar lessons.  Enjoy writing?  Do some freelance writing.  Good at tennis?  Give tennis lessons.  If you have skills in a certain area, there is probably someone looking to learn those skills (and willing to pay for it).
• Earn cash back from credit cards- If you are a responsible with credit cards, they can be a great way to earn money with their cash back offers.  Simply make all purchases with your credit card and then immediately pay it off and you will rack up the cash back earnings.  The better your FICO score, the better cash back offers you will receive.
• Ask for a raise at work- With the current economy, it’s not the greatest time for this one, but in normal times ask for a raise when you feel you are being underpaid.
• Switch jobs- Again not the easiest time to do this, but sometimes the best way to a promotion is switching jobs.
• Have a garage or yard sale- Similar to selling things on Craigslist or eBay, but easier to sell a bunch at once and you keep all the profits.
• Rent out a spare room- Excellent way to significantly increase your monthly earnings with very little work from you.  You will have to be willing to give up some of your privacy, but if you can handle that and are careful with the screening process, it could even be fun.
• Babysit- Babysitting can be a way to earn decent income.
• Donate plasma- Depending where you live, you could be paid anywhere between $30 and $70 to donate your plasma.  And most places will allow you to do this twice a week.
• Donate sperm- Similar to donating plasma, though doesn’t pay quite as much typically.

These are just a few ideas to increase your monthly income.  There are plenty more out there.  While cutting expenses could save you hundreds or thousands of dollars a month, there comes a point where you can’t cut anything else.  Your ability to earn more income has no limits and you could easily increase your cash flow by tens of thousands of dollars a year by implementing a few of the strategies above.

If you are looking for ways to increase your cash flow, nothing is more effective than finding ways to increase your income.  Try some of the suggestions above or come up with your own ideas.

What do you do to earn extra income?  Have any ideas that I didn’t list here?

Please continue sending any personal finance related questions to centsabilitytowealth@gmail.com.

If this is your first time visiting Centsability to Wealth you may want to see what we are about , read about me, or read our introductory post.

Yesterday we talked about the personal finance formula, which is cash flow= how much you earn - how much you spend.  There are two ways to improve your formula, and in effect your cash flow.  You can either earn more money, or you can cut your expenses.  Today we will look at the latter, cutting your monthly expenses.

Following is a list of 30 different ways to cut your monthly expenses.  Some of these will work for you.  Others won’t.  Some could save you hundreds of dollars a year, others will save you a few dollars a month.  But even the smallest savings do add up when you combine a few of them together. 

Here is my list of 30 ways to cut expenses:

1. Turn your thermostat up or down at least three degrees.
2. Pack your lunch at least three times a week.
3. Push your haircuts back two weeks.
4. Make lists when you go grocery shopping, and stick to them. 
5. Negotiate a lower cable bill.
6. Negotiate a lower cell phone bill.
7. Sign up for the higher deductible, lower premium options on your insurances.
8. Clip coupons.
9. Buy generic foods and medications (if your dr. permits).
10. Drop your home phone line and use only your cell phone.
11. Carpool to work.
12. Use bank accounts and credit cards with no annual fee’s.
13. Change your own oil.
14. Start a garden to make your own veggies, fruits and herbs.
15. Discontinue magazine and newspaper subscriptions you rarely use or can get online.
16. Rent books, CD’s, DVD’s and magazines from the library instead of buying them.
17. Turn down your hot water heater.
18. Only use ATM’s at your bank to avoid $2-$4 fee’s.
19. Sign up for a credit card with good cash back offer and make all purchases on it (and then immediately pay them off ).
20. Make your own gifts instead of buying them.
21. Make coffee at home instead of making daily stops to Starbucks.
22. Use Craigslist to buy anything from furniture to electronics.
23. Buy pet hair trimmers and trim your own pets hair.
24. Refinance your mortgage.
25. Order water when out to eat instead of pop or alcohol.
26. Quit smoking.
27. Install a programmable thermostat.
28. Shop around for car insurance (especially if it has been a few years since the last time you updated your coverage).
29. Pay all bills on time and avoid late fee’s.
30. Switch to a credit card that offers 0 percent interest on balance transfers (as long as the rates after the introductory period are still acceptable).

As I mentioned above, not every thing on this list will be realistic for you.  Try the tips that are realistic and discard the ones that aren’t.  Every dollar you cut out of your monthly expenses is another dollar you can use to pay off debt, build an emergency fund, or save for retirement.

What tips do you have for cutting monthly expenses?  Have you had success with any of the tips above?

Please continue sending any personal finance related questions, suggestions and tips to centsabilitytowealth@gmail.com.

If this is your first time visiting Centsability to Wealth you may want to see what we are about , read about me, or read our introductory post.

In the first accounting course I ever took, my professor spent half the class stressing to us the most important formula an accountant would ever need to know; Assets= Liabilities + Owners Equity.  Once you figured this formula out, everything else we did in the class became much easier.  If you were making an entry to one side, you simply had to figure out where it hit on the other side to make the formula balance again.

Your finances have an equally simply formula.  And like in accounting, once you fully grasp the formula everything else begins to fall into place.  What is this magical personal finance formula?  Cashflow= What you earn - What you spend.

Cashflow is the key to your finances.  It is what you save, invest and pay off debt with.  In order to increase your cashflow, you have two choices, you can either raise your income or lower your expenses. 

The problem a lot of people run into is trying to get around this formula.  If they don’t have the cashflow to buy the new Plasma TV they want, they put it on a credit card.  This only further throws their personal finance out of whack, as they have now increased their monthly expenses (credit card payments), while keeping their income the same.  This is how our country got to the point we were at a few months ago where we had a negative savings level.

The larger the gap you can create between your monthly earnings and your monthly spending, the better your financial situation will be.  For the next two days we will discuss first different ways to save money, and then different ways to earn more money.  Some of these may work for you, while others will not.  But if you can implement just a few strategies from each side, you could dramatically improve your formula and in turn improve your finances.

Please continue sending any personal finance related questions, suggestions and story tips to centsabilitytowealth@gmail.com.

If this is your first time visiting Centsability to Wealth you may want to see what we are about , read about me, or read our introductory post.

The dumbest financial decision I have ever made came when I was 22 years old and about to start my junior year in college.  My friend had bought a motorcycle a couple months earlier and I was convinced I had to have one too.  Forget the fact that I had never even rode on a motorcycle, much less driven one, I needed one and I was going to buy one.

So when my college roommate and I visited a local motorcycle shop and I saw that brand new, shiny blue, Kawasaki Ninja 250R sitting there, I knew I had to have it.  After the $3,200 for the bike, $180 for the helmet, $800 for the useless warranties they suckered me into and various taxes and title expenses, the total bill ran to about $4,900.  Being an unemployed college student, I had no money to put down.  Kawasaki didn’t let this stop me from buying their motorcycle, though.  They simply gave me a $5,000 limit credit card to make the purchase on (You may be wondering how a college student with no job was approved for a $5,000 credit card?  That was easy, the nice lady in the credit department of the motorcycle store simply told them that I made $36,000 a year.  Shocker that we are in the credit crisis we are currently in, huh?).

After signing off on my $4,900 loan at 8 percent interest (was set to jump to 12 percent after two years), I had myself my dream motorcycle.  I spent the next few weeks learning to drive it and spending even more money getting “necessary” motorcycle equipment and insurance.  After about a month, one thing became clear; the motorcycle wasn’t for me.  I reluctantly came to the conclusion that I need to sell it.

For the next year and a half, the motorcycle sat in my dads garage.  I “tried” to sell it, but was extremely unrealistic in my prices and never got a serious offer.  Finally, in the spring of 2008, I sold the motorcycle on Ebay for about $2,500.  Here’s a look at the final cost for my months worth of motorcycle riding:

$4,900 purchase price + $200 equipment cost + $200 insurance cost + $400 interest payments = $5,700 total cost

$2,500 selling price - $100 eBay fee’s - $130 new battery cost - $50 fixing up fee’s = $2,200 total earned from sale

Total amount of money lost on motorcycle purchase= $3,500

Ouch.  Until I sat down to write this article I never realized how much that silly motorcycle actually cost me.  That seriously hurts. 

The road to financial independence is paved with many mistakes.  Like all other mistakes in life, the important thing is what you learn from them.  Here is what I learned from my costly motorcycle mistake:

1. Seek advice, not just approval.

When I started asking people for advice on whether or not I should buy the motorcycle, I simply ignored the people who told me it was a bad idea and listened to the people who thought it was a good one.  I wasn’t seeking advice.  I was seeking approval.  And anyone who didn’t give me that approval got ignored.

When making an important financial decision (or important decision in any area, for that matter) ask the opinion of the important people in your life.  Write down each opinion and give each opinion equal weight in your final decision.

2. You shouldn’t have to create a sales pitch on why something is a good idea.

Before telling people I was considering buying a motorcycle, I first came up with all kinds of reasons it was a “good” idea.  I came up with all kinds of reasons I should buy it, from saving money on gas (that baby did get 85 miles to the gallon!) to puting less miles on my car, I was positive this was a good idea.  By the time I was done, I had come up with a formula that showed I would be saving money by purchasing a $4,900 motorcycle! 

If a financial decision is a good idea, it will usually sell itself.  Look at both sides of the equation, not just the “benefits”.

3. If you have to lie in order to qualify for a loan, you can’t afford the loan.

When the credit department had to tell Kawasaki that I made $36,000 a year in order for me to afford the loan, that should have set off some HUGE warning bells.  If people who issue the credit had determined that you need to make at least $36,000 a year to afford their motorcycle, and I was currently making somewhere around $5,000 a year doing summer work, how in the world did I think it was a wise investment for me?

Look at the qualifications for a loan, if you have to lie to meet any of those qualifications, you can’t afford it (not that being able to meet all the qualifications means you can afford it).

4. Take an emotional cooling off period before making a large purchase.

When I bought my motorcycle, I went to the store, found one I wanted, got the financing, and bought it the next day.  Had I waited a week after seeing the motorcycle, my senses may have kicked in and realized it was an awful, awful decision.

By taking some time to let your emotions settle down from the excitement of a big purchase, you may realize it is actually a bad idea.

Even the most financially successful people have and continue to make many mistakes in their financial lives.  Mistakes are a natural part of the process.  By learning from your financial mistakes you can turn them into a positive experience in your journey to financial success.

My $3,500 motorcycle mistake is still painful to think about.  But I have learned several lessons from it and if it is the largest financial mistake I ever make I will be very happy.

What’s the dumbest financial decision you have ever made?  What did you learn from it?

Please continue sending any personal finance related questions, suggestions and tips to centsabilitytowealth@gmail.com.

If this is your first time visiting Centsability to Wealth you may want to see what we are about , read about me, or read our introductory post.

There are few skills in life more important than “people skills”.  Your ability to interact with others will affect your job, your happiness and everything in between.  Worried about losing your job in the tough economy?  Build a better relationship with your boss.  Already lost your job and having trouble finding a new one?  Network your way to better relationships with those in a position to hire you.  Want to live a happier life?  Build better relationships with your family and friends.

Success magazine (I received a subscription to this for Christmas,  excellent magazine) recently ran an article about Dale Cargnegie, author of the best book ever written on building relationships, How to Win Friends and Influence People.  The article highlights several of Carnegie’s keys to influencing and leading people, including the following:

• Avoid arguments.
• Don’t point out when people are wrong.  Respect differing viewpoints.
• When you are wrong, admit it emphatically and move on.
• You will get more in business with honey than vinegar.  Be friendly and gentle.
• When you begin a conversation with someone–even if it is an opponent–focus on things upon which you agree.
• Let the other person talk more than you do.  Listen fully.
• Lead people to the conclusion you want by making suggestions, but ultimately let a person feel the idea was his or hers.
• Try honestly to see things from the other person’s viewpoint.
• Believe people are inherently good and honest.
• Use showmanship or dramatic techniques to sell your product.
• Create competition in the spirit of a desire to excell to get the best out of your people.
• When pointing out someone’s mistakes, talk about them indirectly.
• Talk about your own fallibility before pointing out someone else’s.
• Use questions to lead people instead of giving direct orders.
• Let other people maintain their pride.
• Lavish praise anytime you see an improvement.
• See the best in people and then they will rise to your expectation.
• Be supportive and make mistakes seem easy to correct.
• When you want people to do things the way you suggest, point out the benefits.

I received a copy of Carnegie’s book for Christmas, and these tips and the rest of the article from Success make me want to start reading it write now.

We’ve all heard the expression “it’s not what you know, but who you know”.  I think that should be taken a step further.  It’s not necessarily who you know either, but how good your relationship with them is.  By implementing the above strategies, you can help build strong relationships with the people you know, which in turn could present opportunities to provide a huge boost to your finances.

Please continue sending any personal finance related questions, suggestions and story tips to centsabilitytowealth@gmail.com

Technorati Tags: personal finance, dale carnegie, success magazine, relationships, economy

This week I will be on my first week of unpaid furlough at work, so I will have a lot of free time on my hands.  I plan to use it working on this site and writing a lot of good articles for the coming weeks.  If you have any story ideas you would like to see my write about, please feel free to send them to me at centsabilitytowealth@gmail.com.

In the meantime, here are the top personal finance blog posts from the past week.

JD at Get Rich Slowly had an article up about the difference between the national economy vs. your personal economy.  JD was a speaker at a local financial planners assocation and the article highlights what some of the financial planners are saying in the current environment.  Very interesting stuff.

Penelope at Brazen Careerist had an article about how to talk to a friend who has been laid off.  With layoffs happening left and right these days, chances are you know someone who has been a victim of it.  The article has tips on what to say and what not to say to people looking for jobs right now.

Ramit at I Will Teach You to Be Rich had a guest post from Carl Richards of Behavior Gap about why average is not normal.  The post highlights why average investment returns can be misleading.  While I don’t necessarily agree with the concept, it is a very interesting subject and very well written.

Erica at Eric.biz wrote an article about why you should blog.  Everyone should have a blog.  Very few people will make money off them, but the secondary benefits are nearly endless, and Erica highlights several of these.

Check out the articles above and let us know if you read any other personal finance related articles this week.

Please continue sending any personal finance related questions, suggestions and tips to centsabilitytowealth@gmail.com