Airport Food Hack

Today I'm happy to share with you one of my favorite saving-money tips when it comes to traveling by air: Cup Noodles. Yep! Best thing EVER!

Here's why:

I always go for the cheap tickets, which means more layovers. Airports charge a ridiculous amount of money for their food, and many airlines in America don't feed you meals anymore (at least none that I've been on in a while). If they do have food, you have to buy it at the same ridiculous prices. Like $7 for a few crackers and cheese. If you're hungry, one of those isn't enough to even take the edge off! I'm poor, and can't afford $8 for a BK burger at the airport or $28 worth of cheese and crackers to actually feel fed, so the best thing is usually to bring my own food. But what to bring? Sandwiches and things like that are good and filling but are perishable, so you can't truck along a ham and cheese sandwich to eat at the next airport after traveling 6 hours. Plus they get easily squished, unless you bring a container, but then you have a container you have to wash out and keep carrying with you. Most packaged snacks are non-perishable, so they're good, but when you're traveling for a LONG time, you kinda want something more filling than chips or cookies.

So here's the top 5 reasons why Cup Noodles is the BOMB:

1. It's small and easy to carry. It's packages relatively well, so it can handle being jostled around in your bag without breaking or, in the case of an unprotected sandwich, getting squished. Plus, once you're done, everything left goes straight in the trash and clean-up is easy.

2. No microwave required. Most other brands of easy-ramen type stuff usually require a microwave, which isn't always available in airports. I've never seen one, though I haven't looked. I'm assuming the people who have them are the restaurants, and I don't know how much they'd be willing to let you use theirs for your own food.

3. All you need is hot water, so by extension, a coffee place. And EVERY airport will have some kind of coffee place, Starbucks or no. All you have to do is walk up to the counter and ask for a small cup of hot water and most places are happy to oblige. The usual fare for this is $0.00 but sometimes I've been charged 25 cents or at most *once* a dollar. Still. Not bad! That combined with about 86 cents for the Cup Noodles makes the MOST I pay for a meal at the airport is $1.86.

4. They are filling. For me, anyways. Just one of these is usually enough to get me by until the next layover or until I get on a plane that will actually give me some food.

5. Time. Once you pour in that hot water, it only takes 3 minutes to be completely cooked and ready for your enjoyment. If you're SUPER pressed for time and you need to get on the plane, use the coffee cup you got for the hot water and poor the cooked noodles and broth back into that. Just put the lid back on, and take it with you. Easy.

Frugal Friday! Give & Take

My school has a unique culture. First of all, almost half (like 43-47%) of the student body are international students. Many are from poorer countries (in terms of education and/or economic wealth) like Tonga, Samoa, Fiji, Tahiti, Marquesas, the Phillipines, Mongolia, India, Ghana, Zambia, Uganda etc. Even students from "wealthier" countries like the United States, Japan, Korea, Hong Kong, etc come from economically disadvantaged homes.

But, nevertheless, we have made it here to Hawaii for school. Many things are more expensive here, so as students, we have to watch our costs even more. Things can be pretty expensive, especially when you first arrive and you have a lot of things you need to get. Things like trips home have to be considered very carefully for most. I haven't gone home for Christmas any of the years I've been here. I've only ever paid for one trip home.

Because it's difficult and expensive for ourselves--and luggage!--to come and go, we have to face decisions about how much we want to bring with us when we come, if we want to ship somethings over or if it is cheaper to purchases new things here, etc. It's the same when students graduate, transfer or leave. Many items are not worth the cost of taking back home.

Students have been pretty creative at finding ways to take advantage of our turnover times between semesters to make a buck or two selling unneeded items to new students for cheap prices, or even just giving things away to friends. Anything else gets thrown away.

The Problem: you have to know people who happen to be giving away (or selling for cheap) the things you want. Also, most students leave before the new students come in, so there is a gap in the opportunity to exchange goods.

The Solution: Campus Give and Take Center.

How it works:

You gain access by either serving there (sorting clothes, books, etc) or by donating items in exchange for "new" ones.

I always stop to take a look at the books. Books are expensive! And I found one of my required textbooks brand-new here!

And this little outfit below is brought to you by the number "0" (dollars) as in everything you see was F-R-E-E

What opportunities are in your area? You'd be surprised at what you can find if you ask around. Or, if there's nothing like this around, maybe you can help start your own community Give and Take!

Frugal Friday!

Introducing a new, hopefully regular feature on my blog!

I don't know if I can say what the most crucial element of financial stability and wealth is, but I bet frugal living is a good candidate. So for this feature I will highlight stories, tips, and my own attempts on saving money.

Today I will highlight people who are PROS at saving money. Zions Bank, a small bank (mine incidentally) with locations primarily in Utah and Idaho hosted its own reality mini-series called Cheapster. Ten college students battle it out for $10,000 prize money over different challenges to see not only who saves the most money, but also who get the most value. Challenges included things like cheap (but delicious & nutritious) meals, dollar-store decor, thrift store fashion, home-made gifts, and dumpster-diving.

Each of these Cheapsters have their own take on how to live life fully AND cheaply. Watch the video for the best overview of their cheap ways!

*Disclaimer: I am not endorsing Zions Bank or receiving any kind of benefit, monetary or otherwise. They happen to be my bank at the moment, which is why I know about this competition.

Micro Loans, Macro Difference

Today I introduce a new topic to my blog: a way to give. I don't want my blog to be entirely focused on GETTING money and saving it. I think giving is an important part of living life to its fullest potential. Service in any form heals and improves our own souls, along with those receiving it. So today I want to highlight a giving opportunity.

We know how poor people can be both abroad in third-world countries, and here at home (for me, US soil). It's easy to get overwhelmed with the shear number of people in need and to feel like there's no way to help, especially when we are so far away and all we know is what we see in the news. We have no real connection to what we are seeing on TV. It's easy to say, "There's nothing I can do," or the slightly better, "I wish I could help but I just don't know how I could make a difference."

Well, there is something you can do!

By lending (that's right, you'd get it back!) as little as $25 at a time, you can help fund micro-credit loans to budding entrepreneurs in these countries (or even here in the US).

How? Through kiva.org.

My first Kiva loan of $25 went to Dugersuren in Mongolia.

Kiva is a non-profit organization based in California. It connects would-be donors with entrepreneurs all over the world. You can browse profiles of all the people needing loans and you get to choose who you donate to. Want to support women entrepreneurs? You can do that. Want to donate to a business in a specific country? You can do that too. Want to donate to a specific business in a specific industry? Kiva lets you decide.

How does it work?

You go on Kiva's website and browse through people in need of loans. Donate however much you want (min $25) to who you want to fund. That money (100% of it!) goes through Kiva to a local micro-finance institution (MFI) that funds the entrepreneur. They receive the funds, and use it to purchase whatever equipment they need (already predetermined at the time they apply for the loan.) With the increase in revenue, they pay back the loan bit by bit, a few dollars at a time. You can check on the status of repayment at anytime on kiva's website. The payments are paid back to your Kiva account. Once the loan is paid back in full, Kiva lets you know and you have the option of withdrawing the money to get your $25 back, or re-donating to someone else. That same $25 can be used again and again to make a HUGE difference in many people's lives! How easy is that?

Maria Isabel in Nicaragua. In repayment. 75% repaid.

Painless, right? Wait, it gets even better, because Kiva is running a promotion. Through a generous sponsor, you and I can both get $25 to lend to a venture for FREE. Why? Because it's so easy to make a difference that once you try it, you'll want to keep doing it! The current promotion works through a referral system. Since I am already a member of the Kiva community (I've donated $75 to entrepreneurs), by clicking on any of the links in my blog or in the top box in the left column, (or if that's too difficult, here).



If you still have questions about how it works, check out the following video from kiva.org or check out the story PBS Frontline aired about the organization.

Time is limited, so please make a difference, educate yourself about the process more if you want and just CLICK!

Giving Up on the iPad 2

Well folks,

I guess today is a financial success in frugal living. After much inner debate over enough time to soften the blow, I've decided NOT to upgrade my first generation ipad for a new(er) sleeker iPad 2.

It's ok iPad. We will be together a little longer.

How do I feel about this?

I'm not sure. Sometimes when I decide not to buy something (especially if it's expensive), I feel really good about it. I'm like, "Yeah! Rock on! Way to NOT waste my money!" Other times it's not so easy. 

Becoming financially secure requires many skills, one of them living frugally. Millionaire Next Door says that the lifestyles of the truly wealthy can be described as "Frugal, frugal, frugal." Consumerism and buying the latest gadgets is a topic often referred to throughout the book, and even though it was written before smart phones, mp3 players, and tablets became big, I'm sure the authors would have included them as examples.

"It is easier to purchase products that denote superiority than to be actually superior in economic achievement. Allocating time and money in the pursuit of looking superior often has a predictable outcome: inferior economic achievement." 

I agree with this statement although my (almost) purchase of an iPad 2--and even my current iPad for that matter--were not done to look superior or to be on top of having the latest gadgets. Still, even though my reasons for buying my iPad weren't to show off, I don't want to get caught in the trap of feeling like I "need" a new one or any other gadget.

I still feel a little down about not being able to afford the iPad 2 with it's slimmer design, better graphics, and most especially the camera. I'm being honest.

But on the UP side, I have a little more breathing room with my semester budget since I re-allocated $450 to other budget categories. I feel less stressed about my finances and my ability to stay within my budget. 

Credit Card Debt Free!

I just wanna say that...

I PAID OFF MY CREDIT CARD!

And I'm NOT going to use it to "tide me over" anymore!

Education Postpones Wealth-Building

So I'm (hopefully) getting ready to graduate by April of 2013.  So now I'm getting those uncomfortable questions about what exactly I'm going to do with my life afterwards. Especially when they hear my major is Cultural Studies.  What am I going to do with that?  I. Have. No. Idea.  But there is one question I can answer easily without hesitation.  "Are you going to grad school?"  The answer is a resounding, "NO."

Here's why: I want to make money. I don't want to accumulate more school debt. I want to get out there and get started with my life.

So here's a little tidbit from Millionaire Next Door that made  me feel all good inside and validated about my opinion:

"The "some college," "four-year college graduate," and "no college" types who have high incomes often had a head start on many well-educated workers.  Doctors and other well-educated professionals get a very late start in the earnings race.  It is difficult to accumulate wealth when one is in school. [No kidding!] The longer one stays in school, the longer one postpones producing an income and building wealth."

So there you have it. Ah, the sweet sound of justification.

Goals!

Ok!  I did it!  I made some goals!

It actually took me a couple of hours (and I still don't feel quite finished) but it was a super-good experience. Almost like therapy. I really got down to thinking what I want my life to be like now and in the future and started writing it all down. They weren't all financial goals, but the majority were, which is part of the reason why my goal-setting probably feels "unfinished"--there's more to life than just money! So, I'll keep working on those goals, but since this is my financial blog, I'll fill you in on the relevant ones.

The Vision:

I want to become financially secure by paying off ALL my debts as soon as possible, 

living comfortably within my means, saving a regular percent of my income, 

investing some, and donating some. 

By now you've caught on that I'm religious, so paying tithing (10% of my income) to my church is important to me. Something else my church does is called Fast Offerings.  It's where we fast for two meals (usually for 24 hours) and we donate the money we would have spent on food to the poor.  Most offerings stay local and help needy families in the areas the money was gathered in. In the past, I've been the recipient of some of these funds, so I feel very strongly about contributing to this.  I had always contributed offerings before, so I view this with a sense of karma. I donated when I could to needy families, so one day, when I was the needy one, there was some money to help me out too. Now, I hope I can just continue to contribute but never have to need any myself again. I'd be totally cool with that.  

So tithing and offerings always come first, no matter what. That's the number one goal. What I do with the money after that depends on what my financial status is. I've made several goals for where I want to be in different stages of my life. In goal-setting, you should always start with the end result you want to accomplish and structure your goals to meet that end, so that's why I started with my vision statement up above.

So I started typing out all of my goals for this post, but it was getting a little long, and I wasn't really sure exactly how interesting all my own goals would be to my readers. I had them all listed by length of time: goals to reach within one year, three to five years, 5-15 years and 15+. I realized that a lot of them fall into different categories, so I'll just share the gist of my goals.

The first category is debts. My short-term goals involved paying off my credit card, with longer-term goals involving all my students loans and eventual mortgage.  I want to pay them off as soon as possible.

Another theme of mine is saving and investing. My goal is to get an emergency fund up ($500 for now, $1,000 by this time next year) and a small cushion of savings before using extra money to obliterate remaining debts. After credit cards and loans are taken care of, then I'll build up my savings and start contributing to my Roth IRA again. When I get a little saved up, I'm going to hire a financial adviser (wealthy, with little or no debt) and start diversifying my portfolio.



Another area is my children's financial education. I plan on teaching them how to handle money at a young age and provide opportunities for them to get a handle on their own finances by the time they leave home. I also want to start savings funds for them for things like college, missions, or marriage.


The last area (not least) is in charitable contributions. I will keep paying tithes and offerings, but once I get more stable I want to donate to other worthy causes like education, women's rights, health, etc. My church has a program called the Perpetual Education Fund which provides interest-free loans for people who can't afford school, mostly in third-world countries. They pay the loan back when they can, and so far, most people have paid it back. I also like kiva.org (check it out!) that allows people to help fund beginning entrepreneurs all over the world. I've already donated $50 ($25 was re-donated after it was paid back), so I think I'll definitely keep that going.

What are your goals? Remember to think them through and organize them by time and don't forget measurability. Get them typed-up or written down, and put somewhere that you can review them often! Best of luck to me and you!

Definition of Wealthy

So this post is supposed to be on goals, but I'm not ready yet.  But have something else to talk about.  So I like to read books about finances becaue they give me new ideas, help me to stretch out my mind, and just plain motivate me.  So now I'm re-reading The Millionaire Next Door. It's based on studies of people who have a net worth of $1 million or more, but there is also a more flexible definition of "wealthy" based on your current income.  So they have this neat little formula for what your net worth should be:

Age x Annual Income (pretax, but not including inheritances) /10

So, I decided to plug in my numbers just for fun.  I'm 26 and this year, my total earned income will be a whopping $600.  So,

26 x 600 / 10 = $1,560

Amazing, huh?  A net worth of a mere $1,560 would make me "wealthy" based on $600 a year.  What was my net worth again?  Oh yeah. -20 grand. This would make me what the book calls an under accumulator of wealth.

It's kind of an interesting formula.  Interesting because age is used when you do not work your whole life.  So it's only counting your total earnings for a tenth of your age, but when you are older your working years are a much larger percent of your entire life than when you are younger.  I got my first job at 16, and I've pretty much been working in some regard or another (I spent 18 months volunteering as a missionary for my church so no bucks there) since then, so I calculate my earning-money working life to be about 34% of my entire life so far.  I think the highest I've made in a year was almost $20,000 and the lowest, well, except for the missionary work, it would have to be my current rate.  But let's fast-forward to when I'm say 50.  Then my working life would be 66% of my entire life.

At any rate, the formula seems to work out ok anyway, and it's fun to give it a try.  What happens when YOU plug the numbers in?  Are you wealthy?

The Truth

Ok, so this is the "bare all" part.  In order to fix the state of my finances, I have to first understand the state I'm in. Well, I kinda already know it's bad, but I mean, crunch-the-numbers, stare-reality-in-the-face kind of action here.  

So here it goes:


ASSETS: 

Current cash........................45.17
Roth IRA fund...................2,581.73

Total:............................2,626.90





LIABILITIES:

Student Loans: 

UHEAA..........................8,752.64 

Nelnet.........................12,678.21 

Family...........................1,214.10

Credit Card.......................358.72

Total Debt....................-23,003.67

Total NET WORTH...........-20,376.77

Yikes.

So there's the ugly truth of it all.

So the question you're all asking right now is probably "So what are you going to do about it?"  And I think that's a fantastic question.  I shall let you know when I figure it out myself. See my next post on goals! 

Hello! And Welcome to Fiscally [Ir]Responsible!

Ok, so I've decided to bare all to get myself out of the financial rut I'm in.  I have way too much student loan debt, some credit card debt, no assets whatsoever, and pretty much no income.  I grew up poor, and I'm doing a good job keeping up the status quo.  

The thing is, I'm kinda tired of the status quo.  I wanna be RICH.  And by that I mean stably wealthy: more assets than liabilities, debt-free, able to pay the bills and then some, enough savings to get through any crises, sufficient retirement savings, and a good investment portfolio.  I have to be honest though. Even phrases like "good investment portfolio" sound like a foreign language on my tongue.

With that, let me introduce myself.  This is me:

and I'm a college student here:

...in Hawaii.

Now before you get all judgmental and say, "You live in Hawaii?  I'm not going to feel ONE BIT sorry for you and your financial situation!" just hold on a sec and give me a chance to 'splain, ok?

First off, I'm not living the high life, ok?  According to savingforcollege.com  average tuition for four years at a public institution as of 2010 was $33,300 ($119,400 for private) for just tuition and fees.  This number does NOT include things like room and board, books, food or personal and transportation expenses.  My total tuition costs for four years at the current tuition rate is only $18,520.  And it's a private school.  And I'm only attending for three years! (But before you get impressed that I'm getting my degree after only 3 years, I should confess that I already came with an Associate's degree from a community college, so technically it's 5 years.  Also, I'm 26.)

Secondly, I'm also working.  I'm not the take 20-credits and work two jobs full-time type, so I work part time as a Resident Assistant at a dormitory (called a "hale" /ha-leh/ from the Hawaiian word for "house") AND it's one of the best jobs on campus financially-speaking because I save more from free rent and meals at the cafeteria than I would earn from a regular on-campus wage-paying job.  So I should get smart points for that, right? 

Thirdly, I'm here because I really like this school and what it stands for, and I love the program here for my major.  You'll probably hear more about these things in later posts.  

So I hope you enjoy my blog and can learn from it.  I'll be posting more and adding new features as I can, like book reviews of financial books, entrepreneur spotlights (especially from college.)  Feel free to comment and give ideas/feedback for post ideas or my financial decisions.