Personal Finance Challenge!!

I'm in! I'll PM my email address. 

I'm currently working on eliminating my credit card debt (which I have done in leaps and bounds in the past couple of months) and create my emergancy fund.  I would like to work more aggressively towards my retirement funding.

Excellent idea, Jess!

I am not in...but do work in finance and just want to share what my husband and I have done to be even more secure financially in these unsettling times. 

For starters we titled 2009 "The Year of Living Frugally."  We have two trips we intend to pay cash for and must either cut unnecessary items out of our budget or dip into savings. 

 We have committed to NOT paying for Starbucks, or any other coffee house coffee, this year.  If we get a gift card...fine, but otherwise we will not be buying $4 cups of coffee.  Second, we truly ask if we everything we buy is a want or a need.  If the dress is a great price but I don't actually need a new dress I'm not buying it.  You must QUIT buying things because it is a great price if you don't need it.  Even if it's only a $1, those dollars add up.  Believe me, it's okay to say no to your kids....they don't need $1 chachka that probably contains lead and breaks within days anyway...think of how much nicer your house will look.

I'm going to try and color my own hair.  If successful, I'll save over $600 this year alone! 

I find many triathletes spend a disporportionate amount of their income on their sport.  I have two races I'll be paying for this year and two that I get free registration (from the industry I work in.)  I'd love to complete a race a month, but for what it's worth, all I really get a another t-shirt and sometimes a medal.  I'd love a new bike, wetsuit, etc...but no I don't NEED it.  I will replace my running shoes as NEEDED, not just because a particular shoe is on sale or 'cause it's the latest and greatest.  Two years ago I had a friend who couldn't afford to take his kids to the dentist sign up for a $250 race because he got shoes valued at $100!  In his mind he only spent $150!?!

We eat dinner at home all but one day a month.

We pay our credit cards IN FULL every month.

Find free things to do with your kids.  We have a list of free days at different museums for 2009 in Denver.

In January, due to our reduced impulse buying we saved $1000....an amount we will set aside for our vacations. 

I'm not telling you this to brag...we didn't get here overnight....it takes work, determination and in some cases sacrifice.  Please notice we do lots of nice things and take great vacations, but only because we worked hard to get our assets in order.

Best of luck to all of you.  You can not imagine how freeing it is to lighten up your debt and secure your finances.  It will probably make you a better athlete because you'll have less stress!!

A few more things...

Continue chartible spending...it can lower your tax burden.

Put as much money in your 401k or company retirement plan at work.  If you don't work, but your spouse does, try to put money in an IRA.  At the very least, take full advantage of your company match.  If you don't you are losing out on free money.  This year's max is $16,500 which is probably not a realistic number if you are participating in this challenge.  Start with 3-6% and increase it by 1% every six months.  Leary about the stock market?  Defer you money into the Money Market Fund in the 401k.  However, lots of people think this a buying opportunity in the stock market because everything is selling at an all time low.  There a lots of tools out there to help you determine they type of investor you are.

Again, best of luck...I'll be checking in to support because financial fitness is every bit as important as physical fitness!

If you want to keep me in the loop I'll PM you my e-mail address.  Every once in a while one of the vendors I work with will send me items that might really help the participants in this challenge.