A Personal Finance and Money Saving Blog in Alaska

My Graduation Commencement Address

On May 16, 2016

This week is high school graduation week up here in Anchorage, so I decided to take Steve’s (Think Save Retire) challenge to write a commencement address to college graduates. And now, we will hear from Maggie Banks (round of applause):

Hello Students! Take a minute to look around. There are a lot of you. You’ll notice you’re all sitting together and you’re all wearing the same thing and at the end of this speech, you’ll each get the very same piece of paper. Despite this moment of convergence, each of your paths to this precise moment have been completely different. Some of you barely made it to this moment. You took out loans. You worked. You studied. You pulled those grades up. You retook that class. And you did it. You’re here! For others, the path was easier. The cost of college wasn’t a huge burden and you’re graduating without debt. Finances aside, maybe you breezed through classes and this day came only at the end of a series of accomplishments.

Northern Expressions: Have A Plan

By MaggieBanks

On May 13, 2016

In Northern Expressions

“Have a plan so amazing, so glowing, that you’re willing to walk blurry-eyed to work every day to make the money necessary to achieve it.”

I love today’s inspiration! This quote is from J.D. Roth in his awesome (and free!) The Money Boss Manual. It’s a fabulous way of saying what I’m always saying: Your future self will still be you! Get a better dream, make it awesome, and then work toward that. Spend this weekend dreaming big so you’re ready to walk blurry-eyed back to work on Monday. Happy Friday, friends.

Love, Maggie

A Simpler Life

By MaggieBanks

On May 11, 2016

In Plan Updates

Since the beginning of the year, Mr. T and I have been focusing on simplifying. 2015 was a year of crazy home improvements as we checked off all the items on the Alaska Energy Rebate Program. Every free evening was spent in the crawlspace or garage painting, insulating, piping, etc. (I should emphasize that I was somewhat involved after the kids were in bed, but most of this was done by Mr. T.) We were spending lots of money (most of which we got back as a rebate), plotting our next move, and under a strict deadline to finish all the things on the list. When we finally finished it all last December, we were tired. We didn’t want to plan anything specific for 2016 because we just wanted to calm down.

The Brand Name Deception

By MaggieBanks

On May 9, 2016

In Research Highlights

You should avoid most name brands and go straight for the generic.

There, I said it. Post over. …If only it were that easy. The fact is, we all know that we are deceived by a name brand. We know we shouldn’t get addicted to the brand, but we do anyway!

Penny’s annual science fair was this month. As I was perusing the other boards, I came across this one:

Roth IRA Challenge: After You’ve Crushed It!

By MaggieBanks

On May 6, 2016

In Roth IRA Challenge

I’m really excited about today’s Roth IRA Challenge! Mr. Groovy is joining us today from over at Freedom is Groovy where he and his wife write about their collective journey to leave the rat race to “Take a Hit of Freedom” (as their blog tagline declares). They are hilarious writers with fascinating, original takes on the same topics we all discuss. Today’s guest post is a perfect example. Mr. Groovy asked if he could do a new twist on the Roth IRA Challenge – what to do with the money AFTER you max out a Roth IRA (“Of Course!” I said. “What a brilliant idea!”). So, he’s here today to give a great guide to investing with an awesome asset allocation tool for all of you! Take it away Mr. Groovy:

The Gazingus Pin: Your Spending Weakness

By MaggieBanks

On May 4, 2016

In Personal Finance

It’s no secret that one of my all-time favorite books is Your Money or Your Life. The book constantly talks about the Gazingus Pin. The Gazingus Pin is the ridiculous thing you continue to spend your money on. The book couldn’t say “clothes” or “movies” because specific items would be too close to home for many readers. As I read that book, I kept thinking “I don’t go to the mall. I’ve stopped going to Target and Target clearance was my Gazingus Pin. I’ve already solved my problem!” Maybe you’re thinking that, too. You’ve stopped getting coffee on the way to work. Congratulations! Unfortunately, the problem with the Gazingus Pin is that it’s not usually the thing that’s easy to cut out. It’s that thing you need that you never realized you buy in quantities too large to be useful.

April 2016 Plan Update

By MaggieBanks

On May 2, 2016

In Plan Updates

Is there ever a dull month? This month involved a broken water pipe and a flooded crawlspace, entertaining both sets of parents for a week, and finding out I’m severely anemic (explains the chronic fatigue for the past several months – Me to doctor: “Not everyone blacks out every time they stand up? I assumed that was normal”). As April wraps up, we have only 5 weeks to go until our big UK/Paris adventure. To say I’m excited would be a tremendous understatement. But at least the trip is forcing us to get some estate planning done (finally! right?). Don’t worry, there’s a whole post coming up on the process and how to save money (you were worried, I know).

Northern Expressions: Savings Muscles

By MaggieBanks

On April 29, 2016

In Northern Expressions

“The savings habit is like a muscle. The more you use it, the stronger it will be. No one expects you to start with a fifty-pound weight when you first go to the gym. That’s why the one-pound weight exists.”

Today’s Northern Expression comes from The Index Card by Helaine Olen and Harold Pollack. I really enjoyed this book and think it is a perfect book to recommend to financial newbies. It introduces all of the important things in simple, actionable sections. I hope you’re inspired to start small and grow big savings muscles! Happy Friday, friends!

Love, Maggie

Do You Know Your Financial Reflexes?

By MaggieBanks

On April 27, 2016

In Personal Finance

A reflex is defined as an “an action that is performed as a response to a stimulus without conscious thought.” When the doctor hits your knee, your leg goes up. You don’t will it to do so. It just does. I was at a friends’ house last month. She had a broken toe. She walked into her kitchen and accidentally kicked a Lego with her broken toe that her kid had left on the floor that she didn’t see. Her reaction: Deep breath, pick up the Lego, and walk away. WHAT?! No cussing. No yelling. No throwing things. She just took a deep breath and moved on. Now, I’m a yeller. My kids know I’m working on it and they are very good about reminding me to calm down. But you know what my reflex is if I were to kick a Lego with a broken toe? YELL AND SCREAM! I don’t consciously think “I’m going to yell about this painful, frustrating experience now” and then yell. It is my automatic response. The stimulus hits and I respond with yelling without conscious thought.

Everyone has reflexes/defaults/automatic responses. These are the things you do without consciously deciding to do so. Unfortunately, some aren’t quite as obvious as yelling in a frustrating experience. A lot of financial reflexes are ones we can’t pinpoint and that often causes problems. Tracking your spending to the penny helps identify these things, but think about different scenarios. I’ll present a few, but there are thousands! Instead of thinking about what you THINK you would do or what you know you SHOULD do in these situations, try to stick with your instincts. Try to identify what your default would be. I’m also not necessarily saying there are right answers to your reactions here. They will be different for everyone based on your priorities.

Designing Our Kaleidoscope

By MaggieBanks

On April 25, 2016

In The Ride

Last month, Harmony over at Creating My Kaleidoscope, offered a challenge to design your own Kaleidoscope. In short, the challenge is to discuss what you see when you look at your future through your kaleidoscope and how you’ll get there. Since I’m a planner and a schemer, I love this idea, but I also love the imagery she’s created. There is a big difference between a telescope and a kaleidoscope. The telescope allows us to see things that are far away close up. Through the telescope, we can see details as if we were right there. Through the kaleidoscope, you see something that isn’t really there. Most kaleidoscopes show just color and shape and when you turn it, those colors and shapes dance and change and create something that wasn’t there before. In some kaleidoscopes, you can actually see what is on the other end of it, but through a distorted, fragmented lens. You might be able to see a face. Sometimes 30 images of the same face. And sometimes, when you turn it, the face disappears completely.