I use paper coupons from time to time for groceries, but what about some discounts for items you may purchase online, like clothes, electronics, etc.?

Well, enter CouponChief.com.  Certainly not the only website that offers this type of service, but a slick place to come look for coupon codes that you enter in when you are purchasing items online. It has hundreds, if not thousands, of different stores of all types, so you can find virtually anything you’d need here.

In case you’re not entirely sure how this whole coupon thing works, don’t worry. CouponChief.com’s got you covered. It has a page that lists the process step by step, and even a video that gives further explanation.

Another cool feature is its “Pays-2-Share” offer. Basically, you can upload coupons and receive 2 percent for every sale made by someone who utilizes your coupon. Not bad if you can swing it.

Now, I don’t want you to believe that your entire personal finance strategy should involve coupons, but every little bit can help. Websites like CouponChief.com can help streamline the process of saving some money, and even make you some in the process if you feel so inclined.

That’s a win-win most people can ill afford to pass up ever, especially today. Do you search for coupon codes online? Where do you look? How has it worked for you thus far?

(Legal/Ethical Disclaimer: While I was approached by a company representative to take a look and possibly review CouponChief.com, I was not compensated in any way for this review. My thoughts and conclusions are entirely my own, and this post was not sent to CouponChief.com for viewing before being published on my blog.)

I never took a formal personal course when I was in school; it wasn’t offered. The closest we came to it was when I was in seventh grade and I was in a “Home and Careers” class. It wasn’t really heavy on the economics; it was more about how to cook basic meals, sew, and the like. We had a unit on caring for a family. We were paired off into husbands and wives, and we had to care for a fake egg. The fake egg was a baby, and we were randomly chosen to have particular careers in different locations, salaries, etc. We had to budget for our home and raise the egg, er, I mean child.

I think I passed, but it didn’t really teach me much about personal finance. We all would fudge the numbers and concoct dream scenarios to ensure we would have enough money to survive. The real world doesn’t let one concoct dream scenarios. It has a penchant to just slap you in the face.

With that said, I gave some thought as to what kind of personal finance course I think would do a great deal of good. Check out this site for actual assignments and courses one organization, the National Endowment for Financial Education, put together for schools that want to take the plunge into personal finance courses.

After the jump, check out my personal finance curriculum.

Personal Finance Curriculum

First Course: So How Much Are You Really Worth?

This would teach children about what constitutes assets (what you own/possess) and liabilities (what you owe/debt). You can’t do anything else worth anything with your personal finances if you don’t know what you’re truly worth. I’d break down a sample scenario for the children and show them what I mean.

For example, assets:

• Checking account: $5,000
• Savings account: $10,000
• Home: $100,000
• Bonds: $1,000

Liabilities (debt):

• College loans: $35,000
• Mortgage: $50,000
• Car Loan: $6,500
• Credit Card Debt: $1,000

Besides just teaching the different types of assets and liabilities, this course would also explain what it means to either be “in the black” or “in the red”. Especially when people are younger, it’s OK for them to technically have a net worth in the negative. The idea is that you will gain more worth as you get older, work more, and make more money. In a perfect world, you’re net worth will generally improve as you age.

Not sure what some of those terms mean, kids? I thought so. Instead of quizzing kids on basic terms, I would provide them with a sheet with terms and definitions they can refer to at all times. This isn’t a course set up to trick you. Rather, it’s a course to give you the resources and skills to craft a personal finance plan you can use and tweak intelligently the rest of your life.

Second: Hopes, Dreams, and Goals on Paper

Once kids know how much they are truly worth, whether they have a personal net worth of $25,000 or -$15,000, they can then start to create realistic goals for themselves. It’s important to break down goals into short, medium, and long-term ones, and this course would explain the differences between all of them.

Third: Good Debt, Bad Debt: What’s the Difference?

There are some types of debt classified as “good”: education and mortgages for a home come to mind. Others, not so good. Credit card debt … woof.

This course would talk about why some debt is OK, and why some isn’t good to have. I’d explain the snowball strategy to paying off debt, because whether it’s good or bad, you don’t want it the rest of your life.

Fourth: Can I Really Afford That?

Now that you know what net worth is all about, your personal finance goals, and what good/bad debt entails, you can now look at how much money you have coming in each month, your bills, and how you can intelligently route your cash flow to pay your bills, loans, and work toward your savings goals.

Smart budgeting and planning will be discussed.

Fifth: Credit is a Tool, Not a Crutch

Many financial gurus will have you scared to ever get a credit card. Yes, if used improperly, credit cards can get you in trouble quickly. However, when used intelligently, they can not only open the door to lower interest rates for loans and mortgages, you can get rewards.

A basic look at how to use credit cards, charge cards, and debit cards will be discussed.

Sixth: Buy Low, Sell High

A practical, high-level primer on investing will be discussed here. Essentially, I’d try to drive home the importance of having a broad portfolio of stocks, bonds, and other funds. It’s high level because I don’t have a deep knowledge here. My main lesson would be to make sure you are setting aside for your bills and loans first, then an emergency fund, then max out company-sponsored retirement plans before you begin dabbling in individual stocks.

Seventh: Use Your Money … Wisely

If you hoard all your money for a rainy day that could never come, and struggle unnecessarily, you will hate your finances and eventually blow it all in one shot. It’s like crash dieting – if you eat strictly all the time without allowing for some cheating here and there, you will probably stop the regime all together and go back to your unhealthy ways whole hog (pun slightly intended).

The same can be said for money. You need to splurge within reason, and go about it intelligently so that you do not ruin other savings goals. This course would discuss saving to use your money, not saving purely for the sake of saving.

I’ve probably missed a few vital courses here, but that’s for you all to decide. Which courses do you believe are best for young people? What topic not mentioned here do you believe should be discussed, and why?

In the past week, there have been several fantastic personal finance-related stories in both the New York Times and Wall Street Journal.

No, none of these have anything to do with income taxes. Do make sure you file by April 15^th, though, or else the big bad taxman just may come after you.

If you have the time this weekend, definitely peruse these not-so-long stories. I’ll give a quick summary and my thoughts on each one after the jump.

Bank of Mom and Dad Shuts Amid White Collar Struggle

Summary: Basically, the story talks about parents making more than $100,000 per year in salary that had been saving money to give their kids the quality of life they always wanted to give: good schools, opportunity to travel, etc. Well, with a lot of parents at these high-paying positions getting the heave-ho when the recession first hit, while many have already assured their retirement is OK, the money flowing to their children is coming to a screeching halt.

My Take: I don’t have children of my own, but I’d imagine I’d want them to have the best life possible when I do eventually have little Musicos. While it is noble to give them everything that you never had, I don’t necessarily believe throwing money at them is the best way to accomplish this. How did many of these parents get to where they were (six-figure jobs) before the recession? Hard work, probably took out loans, and had to sacrifice some things in the short term. Children should be doing the same thing. I firmly believe if you tell them they have to find a way to pay for their education and pocket money while they’re there – they will apply for scholarships, take out loans, make good grades, and find a part-time job. Not only will it save you from having to bankroll your kids, your kids will learn responsibility and the real world won’t hit them as hard when they graduate and have to start, well, funding their lives.

I know this because that’s how I learned. My parents didn’t bankroll my entire time at Seton Hall – they made a deal with me that they would pay the interest on my private loans while I was in school, but once I graduated the responsibility to pay for my education would be entirely mine. When times got really lean when I was at my last job, I knew I could draw upon the lessons I learned in budgeting as a poor college student to get me through. And I did.

Go Your Own Way

Summary: This article talks about a successful entrepreneur that had a passion to do something entirely different than what his job at the time entailed. He worked to make it more than a passion, and when the time was right he stepped away from his conventional job and went out on his own. Friends thought he was crazy, but now he’s making a great living doing exactly what he wants to do.

My Take: I think that many of us would like to escape the corporate 9-to-5. The problem many of us have is that we’ve learned for so long that this is the life we’re supposed to live. Work for 40 years. Save in a 401(k). Have a home. Kids. Retire at 65, buy retirement home. All that stuff.

When something comes along that deviates one from that path, like leaving a job to do something that looks eminently risky and stupid, people recoil. The article says to stay away from those people and only keep like-minded individuals around you. Well, duh. The recession and massive layoff spree was an excuse for many people to do what they always wanted to do, because they lost their conventional jobs. Even if you didn’t, work on your passions on the side while you continue collecting paychecks. If you want to escape, make an escape plan. Save your money. Get ready for potentially lean times. But don’t lose that dream, and when you do ultimately strike out on your own and make it, remember who supported you and who didn’t.

Financial Tuneup: On Increasing Your Student Loan Payment

Summary: This blog post highlights a couple of people that decided to pay a little extra principal on their student loans instead of paying minimums each month. Conventional wisdom tells you to pay off bad debt, but only pay minimums on good debt like student loans while you build up retirement savings and the like. These people didn’t, and they feel better about their lives.

My Take: Yes, education debt is good debt. But debt is debt. If you have already allocated for your regular savings goals, paid off all bad debt, and make minimum payments to your student loans, take any extra money you have and pay off extra principal. Even if it’s a few bucks here and there, pay it off as quickly as you can and get that load off of your back. The past few years have shown that gains in the stock market are not guaranteed. Don’t place all your bets in making extra money in the stock market when, really, it’s a crapshoot. Contribute what you think is right, but it’s never a bad idea to pay off debt. Your credit score improves, you become less of a slave to “the man”, and once it’s paid off you can take the money you had been paying and start using it for other goals. Paying off debt is the closest you’ll ever get to a sure thing. It’s never a bad idea. Ever.

Why so Glum? Numbers Point to a Recovery.

Summary: This column looks at all of the objective numbers and statistics that technically point to a recovering economy. Yet, people are still talking in very glum terms about the recovery, some saying that we are still in a recession. The writer wonders why this is, and has his own conclusions definitely worth reading.

My Take: Technicalities or not, don’t allow politicians and think tanks dictate how you run your personal finances. Take a hard look at your assets, debts, and cash flow and make your own decisions. We could technically be out of a recession, but have a major correction in the stock market. Unemployment could take years to lower to a point that is acceptable to people. How long? Who knows?

No one.

Don’t let people who do not know you personally affect your personal finances. They’re yours. Plan according to your specific needs, and let the prognosticators pontificate and argue. You’ll be the one who eventually laughs all the way to the bank.

Well, it can be the same for saving money. When the economy was flying high and the stock market made everyone look like a genius, savings rates were at all-time lows, sometimes even below 0 percent. Unsurprisingly, interest rates on savings accounts were also decent. Now that the recession hit and more people are saving money, guess what: Interest rates are pathetic. One percent here, .5 percent there, 2 percent for a 5-year certificate of deposit, et al.

Basically, when the Fed sets the interest rate soul-crushingly low as they are right now, it’s good for people looking for good rates on mortgages and other loans, but really bad for savers.

For those who are looking to get higher percentages of interest on their savings accounts, here are two sites to check out that constantly update the best rates on savings accounts, checking accounts, CDs, etc.:

• Bankrate.com (http://www.bankrate.com/checking.aspx)
• Money Rates (http://www.money-rates.com/savings.htm)

Personally, I’m pretty conservative when it comes to money and I don’t like the idea of moving my savings around to get a .3 percentage increase in interest here and there. I don’t think it’s worth it, but there’s no harm in trying.

Just moving money around isn’t the only way to try and maximize savings, though. Instead of just conventional savings accounts, consider bank-based money markets and certificates of deposit. While you may not be able to always take money out, that’s not the point of savings, anyway.

Many people like to try and “ladder” CDs and spread their money among shorter-term CDs and longer-term ones in order to get the most money. Here’s a link to an article about it from the credit union I still use for my savings account: https://www.hvfcu.org/savings/certificates#laddering-tool

To be honest, I think laddering is good in theory but only really works if you have beaucoup money to spread around. I believe that the best option would be to diversify your savings, much like you would with stocks and bonds. Have a bank-based savings account, open up a certificate of deposit for money you know you don’t need to touch for a period of time, and contribute to the retirement plan at your job (or an IRA for those who don’t have that option).

Also, another thing to consider is a checking account that offers interest. Very few do without charging you a fee, but smaller regional banks sometimes do it (my old bank in Wallkill used to offer it, for example). That’s another good way to make some extra money.

Very few banks do this, though. A quick way to make a few extra dollars is to only keep enough money in your checking account to pay a couple of month’s worth of bills, and put the rest into a savings account to gain interest until you need to use it. You work hard for your money, and you should expect your money to work hard for you as well.

On to the numbers …

My overall net worth as of March 1st is $71,566. In sum, it marks a $15,630 (27.94 percent) increase from January.

For the purpose of this post, I’m going to split up my assessment into five different areas: cash, stocks, retirement, stalwarts, and college loans. The percentages and amounts are coming from the calculations in my NetworthIQ profile.

Cash:

This seems like it increased a great deal, jumping about 20 percent to a total of $45,738 — which was by design. Part of the increase has to do with my boosted salary, and the other part has to do with my being more specific as to what is in my Schwab account. Right now, half of it is stock and the other half is cash until I decide to invest it.

Stock:

It looks like I lost half, but that was because my Schwab account is split in half-stock, half-cash — so I simply was making my allocations more accurate. I didn’t gain or lose enough with my stocks to make it worthwhile over the past month. Everything is relatively steady.

Retirement:

My retirement accounts — right now my Roth IRA and what will be a money market (rolled over from my old 401(k) account) — gained approximately 2 percent, which is good. I’m continuing to conduct dollar cost averaging, which basically means I am contributing the same amount to my Roth IRA (and will for my money market and new 401(k) plan) each month regardless of stock prices. That way, I am not “missing out” when stocks are low or buying less shares because prices are high.

Stalwarts:

My life insurance increased $15,000, which is where most of my gains came from. The bonds remained the same.

Loans:

This is continuing to go down. I made a big extra payment a few days ago, which isn’t reflected here. It will be next month.

Overall:

I’m still progressing toward my goals quite well. Even though most of my net worth gain in the past month was due to the boost in life insurance, calculating without that I still increased my net worth by 1-2 percent. As my roll over finally comes through and my new 401(k) plan begins, I look forward to continuing my increase in retirement money while making large payments to the principle of my student loans. Onward and upward.

The Kiplinger.com article gives 10 really great “tricks” to save. My favorites of the 10 include:

• Don’t trust yourself to pay yourself first (automated savings deposits from paychecks, i.e. for direct deposit take 10 percent and transfer it to a savings account, with the other 90 percent going to checking);
• Limit yourself to one ATM withdrawal per week;
• Record all credit-card purchases immediately; and
• Pay yourself after paying off a debt.

Personally, I have fairly good self-discipline when it comes to saving — so I don’t feel the need to automatically have money transferred to my savings account with each paycheck. Also, sometimes I save more than my standard 10 percent for various reasons, and I like to have the control of putting in my desired savings amount myself. But, for those who will spend money as soon as they receive it, automatic deductions are viable options.

What I think this article didn’t go into — and to be fair, it wasn’t the main point — was determining the reasons why you should save. Yes, saving money is good — but to what end? If you are blindly saving money because someone tells you it’s a good idea, or you feel this pressure to do so, there is a very good possibility one of two things may happen:

1. You’ll harbor bitterness and resentment, ultimately binging on spending unnecessairly and stop saving entirely.
2. You’ll tailspin and feel terrible whenever you spend money, because it is detracting from this out-there goal of pooling X amount of money for ??

The “??” is important here. I wrote a post awhile back about having tangible savings goals, and I think it is more important than ever to have some realistic end-goals for saving your money. Not just long-term ones, but short and medium term markers along the way that will help you track your progress and keep you motivated to continue saving.

Definitely check out the aforementioned link for a more detailed explanation, but essentially, this is what I mean:

• Long-term goal = Cruise to Carribbean — $4,000 (I made up this number, it could cost more or less)
• Medium goal = $500 per month to go toward cruise
• Short-term goal = $250 per bi-monthly paycheck set aside for said cruise

See what we’ve done here? We’ve established a tangible goal for ourselves (awesome, fun-in-the-sun cruise), set mid-term markers ($500 per month) to ensure we are making progress toward the end-goal, and setting really short markers (per paycheck) to make sure we are disciplined enough to set aside money.

The same can be done for retirement, emergency funds, cars, etc. The idea is that your savings will eventually need to be used for something. You’re not just stashing away money for the sake of stashing it away. That’s pointless, as money’s supposed to be used (properly). Figure out what you’re saving for, and then figure out the best ways to successfully reach those savings goals. The discipline will be easier to come by when you have a purpose for saving.

Essentially, the article in NYT does a good job of looking at all different situations – whether or not you have your child immediately sign up for their own credit card and checking account, only allow them to have a debit card, or a healthy combination of these two extremes.

While I can’t really talk about this from the parents’ point of view, since I’m not one yet, I will try to tailor my view as to how I felt when I was turning 18 years old seven (!) years ago. God, I’m getting old.

Anyway, it obviously depends on the maturity level of the child. If they’re a crazy free spirit, giving them access to “free” money may be a bad idea right away. They might have to be weaned into it by first just having a debit card that will only enable you to spend what you have, and then move on to the world of credit. (Or even a charge card.)

When I was about to turn 18, I was a senior in high school and had a part-time job as a front-end clerk at Price Chopper, a local supermarket. While I wasn’t making a great deal of money, I was making some money and only had a savings account (and envelopes hidden in my room) to stash my earnings. My birthday is in late October, and I had already been accepted to a couple of colleges by that time – so I knew I would be moving away to school and have to pay some bills while away. This would require me to have a checking account, since I loathe putting cash into the mail. I was planning on having a work study job while at college, and I was also sure I’d need to make some purchases here and there. Consequently, it would be convenient for me to have a credit card and checking account instead of constantly carrying around wads of cash.

So, I really wanted to get my own checking account and credit card when I turned 18. I’d feel more like the adult I figured I’d eventually become, and have more control over my finances. While I hadn’t had much experience yet, I had been relatively good at managing what little money I made. Thankfully, my mother felt the same way and gave me permission to get a checking account and credit card once I turned 18.

We sat down and she showed me the basics of budgeting, much like the steps I show you, and was always around if I had any questions (of which I’ve had plenty) along the way. I don’t specifically remember us talking about ramifications if I found myself spending more money than I had or overdrawing my account, but I’m sure that it was clear if I did that it would be primarily up to me to fix it. While my parents may have loaned me the money in the short term to fix the problem, I’m sure I would have had to pay it back – and quickly.

Since then, I’ve grown and evolved as a person professionally, personally, and financially. Speaking about the final one, I can confidently say that if I didn’t get such an early start with being responsible for my own finances, I’d be in a lot of trouble today … now that I’m responsible for paying rent, utilities, cell phone, food, college loans, etc.

I think that’s the most important thing here as it relates to giving teenagers the reins to their financial lives. It’s necessary, even if it is scary. Plenty of adults screw up and find themselves mired in debt, and they should know better. Teenagers need time and experience before they “know better”. Whether that means giving them access to a credit card right away, tethering it to parents’ credit cards, or only giving them access to a debit card … do something. Finances are becoming more and more complicated and vital than ever before, and if nothing else, money management is one thing the next generation must have a decent grasp on before starting their lives after high school or college.

Most places have you wait at least three to six months before you’re eligible to apply for insurance, but my new job so happened to only make me wait 30 calendar days. So, I just had to fill out forms for a 401(k), medical insurance, and dental insurance late last week.

Let me tell you, at first it can seem dauting to fill out all of the forms. Much like anything else, things are always more complicated than they have to be. For example, the form to roll over my old 401(k) to this new one made me want to crawl under my desk and cry. First, it takes two different sets of forms from your former and current employers. You have to fill out the ones from your former employer within 30 days, and then have to figure out which rule applies to you — do I have to pay 20 percent withdrawal tax or not?

I decided that I didn’t want to devote the time and effort it would take to figure out everything and work between both parties in a short amount of time. (My 30-day anniversary was on 2/4, the 401(k) forms were due 2/5.) So, I decided to roll my old 401(k) into a money market fund within the same holding company (Nationwide), and just start fresh with the  new 401(k).

I think it’s a good move, especially in the short-term to preserve the money I was able to accumulate in the old 401(k) — the market is starting to tumble a bit. I intend on setting aside money to contribute to the money market in addition to my Roth IRA (the 401(k) will be automatically deducted) once the transfers are all complete.

Then, the next move: How should I allocate my new 401(k) contributions? When I started my last job, I vividly remember spreading out numerous sheets of paper on the Metro-North train back home late one night, trying to determine which funds were performing well, if they constituted a well-balanced portfolio, and how much I could actually afford to contribute out of every (shrinking) paycheck.

Shuddering at that thought, I was pleased to find that my new 401(k) provider has the option to do a target date fund. Phew. Bascially, a target date fund will be more aggressive for younger professionals, and automatically reallocate to become more conservative as you become older (and closer to retirement).

For example — for the 29-and-younger year old group, the target fund is allocated like this:

• Intermediate Bond Index I ….. 0 percent
• Large Growth Equity X ……….. 30 percent
• Large Value Equity Index I …. 30 percent
• Small Growth Equity XII …….. 10 percent
• Small Value Equity IX ………… 10 percent
• International Core I …………… 20 percent

Now, for those right at the cusp of retirement — between 65 and 66 years old:

• Intermediate Bond Index I ….. 55 percent
• Large Growth Equity X ……….. 14 percent
• Large Value Equity Index I …. 14 percent
• Small Growth Equity XII …….. 4 percent
• Small Value Equity IX ………… 4 percent
• International Core I …………… 9 percent

While I don’t have full control over which funds I pick with this option, let’s be honest: I don’t have any expertise when it comes to picking stocks and funds. If I did, I wouldn’t be working anymore. I agree that I am younger, and therefore have more time to bet on the market. So, I’m OK with an aggressive 401(k) portfolio spread in the up-to-29-year-old asset class. Mind you, I have a money market, another target fund, treasury funds, utilities stock, and cash as well to help have a very diversified portfolio already.

So, that was decided. Now I had to figure out how much money pre-tax I wanted to set aside for the 401(k). A lot of places have employer match up to a certain percent, so the rule of thumb is to contribute that same percentage to get the full match (and free money) from your employer. My new job doesn’t do a match yet, so I was on my own. I already automatically save 10 percent of my paycheck, which goes to various savings goals, retirement included. Fortunately, I’m now in the position to not take part of that 10 percent for the 401(k) as I had to at my last job. I decided on 5 percent for now — this leaves me continued left-over money from each paycheck to cover my medical expenses (foreshadowing!) and pay extra principal down on my student debt.

I thought all of that thought condensed down to about two hours one night after work was enough, but I still had more — dental and medical forms. Thankfully, these are a bit easier when it comes to contributions: you’re essentially told what you have to pay. If you don’t want to pay it, then … well … you don’t get the insurance. I pay for 20 percent of my medical and none of my dental now, which is absolutely fine by me.

Since the dental plan at my new job is only one plan, and it’s free, all I had to do was fill out my vital contact information and be done with it. It’s actually the same dental insurance provider as at my last job, so I can continue going to the same dentist. All I’ll have to do when I’m due for my cleaning is update my insurance information with them — no big deal.

With the medical insurance, usually you have several plans from which to choose — some more expensive than others. The more difficult part is figuring out which plan is right for you. Sometimes, it is necessary to take the more expensive plan. Usually, this is for several reasons:

• you have small children and want to give them the best care possible;
• you find yourself going to specialists and other doctors often; or
• you have particular prescriptions and doctors that you require on a regular basis.

I don’t, so I usually pick the cheapest option. As long as it has a prescription plan, basic things like check-ups with a small co-pay and the like, I’m fine. Also, I haven’t seen a doctor since the summer before I graduated from college. This may be right or wrong, but it plays a factor in these decisions. Why get all the bells and whistles for medical insurance if it’s really not necessary? I’m all for sacrificing extra money to make sure I am covered, but within reason.

OK, so this was a crazy-long post — but an important one. For those who are employed, it’s important to make sure you have the right plans for you. It can make a tremendous difference in your retirement strategies down the road, and both short and long-term health for you and your family.

For those that are unemployed and considering new jobs, consider this: Even if your starting salary may not be as high as you’d like, take a real close look at the benefits package the prospective company offers. If it’s a good one, it’s worth at least several thousand dollars. Benefits are that important.

I’m continuing to make great gains in my net worth — after gains in December and January, I’m continuing on the right path. My net worth increased another 2.95 percent in the last month.

On to the numbers …

My overall net worth as of January 4th is $55,936. In sum, it marks a $1,605 (2.95 percent) increase from January.

For the purpose of this post, I’m going to split up my assessment into five different areas: cash, stocks, retirement, stalwarts, and college loans. The percentages and amounts are coming from the calculations in my NetworthIQ profile.

Cash:

This increased a great deal — more than $10,000, so now around $38,000 — which was by design. I realized that I was very stock heavy in the past few months, and wanted to make some moves to lower my exposure. With the recent stock market dip, this has turned out to be a good decision so far. I sold off 2/3rds of my inherited stock, and took half of that for cash and the other half is sitting in my Schwab account right now until I decide exactly where to invest it. I’m thinking I’m going to invest in a precious metals exchange traded fund, but we’ll see.

Stock:

The market took a dip, but because I sold a lot of my inherited stock I didn’t lose as much as I would have. I wanted to become more cash-heavy, while continuing to invest in my diversified retirement funds.

Retirement:

My retirement accounts — the Roth IRA and company-sponsored 401(k) — unsurprisingly dipped, as they are aggressive and move the way the overall market does. That said, it did not decline that much — only 1.26 percent.

I just signed up for the 401(k) plan at my new job, which I’ve decided to invest in a target fund. Basically, it is fairly aggressive now and as I get older it reallocates to become more conservative. This option wasn’t available at my last job, but I’m glad it is here. I am not an expert on different stocks and funds, and I took my best guesses and lucked out with my old 401(k). The breakdown of asset diversification for the target fund closely aligns with what I would have wanted, anyway. The old 401(k) I’m rolling over into a money market fund so I have another pile of safe money that will continue to grow, albeit slowly. When that rollover is complete, I plan on setting aside some money to contribute to that, as well as the Roth IRA (the 401(k) will have automatic paycheck contributions set up).

Stalwarts:

The life insurance and bonds remain as is.

Loans:

This is continuing to go down. I made a big extra payment a few days ago, which isn’t reflected here. It will be next month. This is one of my larger goals — to pay this down as quickly as possible. I’m sacrificing saving some money for my other goals in the short-term, but the lower interest I’ll eventually have to pay on this loan is worth it to me.

Overall:

I’m still progressing toward my goals quite well. I feel much better that I have more cash available in the case that I wanted need liquidity. Furthermore, I feel that I am moving toward a more diversified stock portfolio all the way around and that makes me feel better as well. In the end, that’s what personal finance is all about — being able to sleep at night knowing the decisions you’ve made are the best ones possible for you.

For example, I called my mother and told her I was going to not join a gym or get a BlackBerry (my Verizon Wireless contract was coming toward the renewal point) because I wanted to buy a house and provide for my family in five years.

Now, mind you: I’m single with no kids or family. I had all of this money saved up with no intention of spending it because I had this long, far-off idea in my head of what I’d need in life. A large part of this was because I watched my parents have to scrimp, save, and struggle for awhile to provide my brother, sister, and I with a life they wanted for us. I saw what they went through and ratcheted up my crazy meter by about 100.

Thankfully, my mother was able to talk me off of a financial ledge and remind me that money is to be used. Used wisely, but used nonetheless. It’s not like my money market is FDIC insured in Heaven … I’m just bringing myself. Going home that next weekend and going through my budget with my mother, I figured out that I could afford to go to the gym, and pay for the BlackBerry plan — and still have money to set aside for retirement and other savings goals I had in mind (like a house).

A year later, I would have never thought I’d be at a new job paying me 50 percent more than my last one. I also never would have thought I’d be able to save at least 10 percent for savings goals and an additional percentage for a 401(k), but I can. I think I’ve avoided a rent increase this year, too.

I realize now that the struggling has helped me better utilize the money I have now. I have more firm goals in mind with regard to savings, and a healthier (not perfect, but working on it) attitude toward spending money. I also realize that I need to run my own race, financially. Comparing myself to other people is pointless, because everyone has a unique situation. Some people can save 25 percent of their paychecks. Others can only save 4 percent. Some people seem to have it all … but beneath the surface it includes gobs of debt. I’ve had to learn to trust the plan I’ve set up for myself is the right one for me, and that God will let me know if and when that needs to change or be tweaked. That’s a work in progress, but I believe I’m closer to getting there than I ever have before.