Monday, March 30, 2009

Bring Out Your Dead Electronics!

Procrastination has plagued me for years, but now, after merely talking the talk for so long, I'm finally ready to walk the GreenDisk walk.

GreenDisk is a Washington-based company that recycles a wide range of computer and technology-related products. The company originated around two main concerns: (1) protecting privacy via the secure destruction of private information contained in "technotrash" (i.e., obsolete and unwanted computer/electronic materials); and (2) recycling these materials in an environmentally responsible manner. Accepted items include CDs, DVDs, ink cartridges, cell phones, iPods, VHS tapes, computer cables, laptops, and more (full list here).

I first discovered GreenDisk a few years ago (whilst surfing the web for a way to recycle burned CDs), but only now—amid some long overdue spring cleaning—am I at last preparing to send them a big barrowload of e-crap. With that in mind, if you have some "technotrash" of your own that you'd like to get rid of, please let me know and I'll gladly include it in my shipment.

Wednesday, March 18, 2009

Greenspankonomics 101

This pie graph depicts the relative amount of money I spent between Dec '08 and Feb '09 on cat food/litter (blue), coffee (yellow), and laundry (green). As you can see, the cost of caring for 2 cats was roughly equivalent to the combined cost of supporting my caffeine addiction and washing my skivvies. Based on these numbers, one conclusion is that I could financially justify the adoption of 2 additional cats simply by giving up coffee and laundry...

The above example is just one of countless insights that money management software packages like Quicken and Microsoft Money can provide. Another insight they offer concerns the topic I've chosen to blog about today: budgets!

The tri-MOLE goal
Any graduate of the Greenspankian school of personal finance can tell you that my most basic recommended savings objective is the "Tri-MOLE Goal": that is, to amass at least 3 (and ideally 6) Months Of Living Expenses (aka "MOLEs") inside a liquid savings or checking account. Of course, to do this, one first needs to know what their personal MOLE actually amounts to. In my opinion, the simplest and most logical way to determine this figure is to create a budget.

While the old-fashioned way of crafting a budget—pen, paper, calculator—certainly remains a respectable option, if you own a personal computer I'd highly recommend using the abovementioned Money or Quicken software instead (note: one or the other is usually included with a new computer). Both programs allow users to set up electronic ledgers (corresponding to checking accounts, credit cards, etc) in which the amounts, dates, and categories of transactions can be easily entered and organized. What's more, transactions can typically be downloaded directly from a bank's website, too.

Once you've entered transactions from, say, the past 3 months, the software can then use that information to automatically generate a breakdown of your average monthly income and expenses and—voila!—you've got yourself a budget, mon ami! With this new data at one's disposal, it's much easier to calculate just how much 3-6 MOLEs really amounts to, and therefore how much money should ideally be tucked away into an emergency savings fund.

Of budgeting and bartering
OK, the time required to read this article is quickly approaching 90 seconds (i.e., the average attention span for reading a financial blog post written by complete tool), so I'd best wrap it up. In conclusion, let me just add that if there's anyone out there who'd like more info about budgeting with Money or Quicken (or even a tutorial), please let me know. I don't charge for my services, although I am now accepting free coffee and laundry.

Monday, March 9, 2009

Can You Rear(end) Me Now?

In many ways, I've always been a 60-year-old man in an under-30-year-old body. Take, for instance, my instinctively uptight and resolute "they just didn't do that when I was a boy" aversion to using a cell phone while driving.

If I'm conversing with a loved one and realize they're on the road, I feel nervous; if I'm driving and spot a fellow motorist on their phone, I feel less safe; and if I talk on the phone while driving (warning: hypocrite alert!), I feel more dangerous than Iceman accused Maverick of being in Top Gun (see here). Thus, count me among those disappointed by a recent article alleging that a proposed state ban on using handheld cell phones while driving "will likely die in the Iowa legislature this year".

My rationale for supporting such a ban initially stemmed from an intuitive, unscientific assumption that talking on the phone makes drivers (including myself) less cautious behind the wheel. A subsequent review of the scientific literature leads me to the same conclusion. For example, one recent report, which provided a statistical summary of 33 prior studies, concluded unequivocally that "cell phone conversation while driving increases reaction time to events and stimuli".

Thus, I do hope that the state legislature has a change of heart and votes to make Iowa the sixth US state (behind California, Connecticut, New Jersey, New York and Washington) to pass a handheld cell phone ban for all drivers. Can anyone think of a compelling reason why they should not?