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Entering My 3rd Year Of Graduate School

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Target Semester School
I really liked these pillows (Target calls them “Poufs”). Not buying one at $45 — that’s for sure!

As the upcoming academic semester approaches (now two days away), I can’t help but notice how much worse my body feels. Nervousness affects me in atypical ways — mostly subconscious and physiological. But it’s this same undercurrent of stress that can sometimes lead to outsized spending. I need to be careful during these periods.

Yesterday, I saw sweaty, dew-soaked windows of the frozen food aisle and thought, “This is a perfect reflection of my toiling stomach.” I was a young whippersnapper when I first realized I had lactose intolerance. Then there were strange “allergies,” the removal of certain food groups, and tests to see what was wrong with me.

The best answer that doctors ever gave me was that I have Irritable Bowel Syndrome (IBS). This cantankerous medical condition wreaks havoc on my insides. I can feel food traveling through my system and doing battle with my intestines — harmony be damned. At the beginning and end of every semester, I have horrific flare-ups.

Like Drake’s recent single, life goes from 0 to 100 real quick when the semester starts. The world seems to enter hyperdrive, and I begin to notice significant changes:

  • I spend less time in the mirror (good).
  • I don’t floss as often (bad).
  • My hair gets crazier (take it or leave it).
  • I drink more coffee (probably exacerbating the hyper feeling).
  • I pack lunches (good).
  • I’m surrounded by people all the time (as an ambivert, a pleasure and challenge).
  • Procrastination increases, as academic projects feel less important when compared to working with clients (ambivalent).
  • I’m distracted by due dates (bad).

This semester will be the busiest schedule of my life, and I must trek all over the city to make it happen. I’ll be on the westside to eastside to southside of the city almost every day — and all by bike. The responsibilities and hours won’t cease for the next 3.5 months.

At the beginning of every year I panic, apply to/fantasize about other jobs, and think about whether I can handle it. My insides erupt and argue with me; screaming, “not again.” Despite these physical, emotional, and psychological challenges to come, life has never been more full.

I’m lucky to have incredible friends around me. They give me a positive energy and purpose. Likewise, I have this website, which is a wonderful distraction. I love being able to write to you all, save money together, and share our successes and failures. I paid off all my debt this year, and completely revamped my financial life. The stress of debt is no longer!

Graduate school is a challenge — every day — and I wouldn’t change it for the world.

Good luck to all of you who are headed back to school!

Stop Wasting Money On Your Commute

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Traffic Jam Commute

We all want to maximize our take-home-pay, but with the constant increase in fuel prices, getting to work is costing a fortune. Thankfully, there are some easy, fun, and fast ways to reduce your commuting costs. Here are 7 ways that will put more money in your pocket:

1. Carpool Partner(s)

Find someone who lives near you and set up a deal to take turns driving to work. My co-worker lives 40 miles from work and has been fortunate enough to find someone to commute with.

Pros:

  • You’ll get to know a fellow employee better
  • You save on gas
  • You have a little flexibility since you are working with someone you know
  • Accountability, as you are more likely to be on time or early with someone else counting on you

Cons:

  • You don’t have your own transportation during the day
  • If you or your co-worker needs to stay late, someone has to wait
  • If you have an emergency and need to leave early, you may need to pay for expensive transportation

2. Third-Party Carpool Service

If you can’t find someone on your own, perhaps your area offers a carpool matching service. St. Louis and surrounding areas can take advantage of the RideFinders program. This program is free to use and funded by the Department of Transportation as a clean air initiative. RideFinders matches people with similar commutes.

Pros:

  • Potentially large commuter base
  • Someone else does the matchmaking for you

Cons:

  • You don’t have your own transportation during the day
  • Little to no flexibility as the arrangement is more formal

3. Vanpool Services

If there are enough commuters, you may way to consider the vanpool option. Vanpools are most economical for groups of 7-12 commuters that commute over 30 miles to work. One person volunteers to be the primary driver/coordinator for the vanpool. In exchange for all the coordination, the driver gets to use the van for personal transportation on nights and weekends!

Pros:

  • Driver can use the van for personal trips
  • You don’t have to use your personal vehicle
  • Meet new people (7-12 in typical vanpool)
  • RideFinders offers a Guaranteed Ride Home if you have an emergency or need to stay late
  • Commuters eligible for tax deduction though IRS Commuter Choice fringe benefit plan

Cons:

  • Driver has added responsibility of coordination (possibly time consuming)
  • Limited eligibility (most programs require certain number of people and distance)
  • Little flexibility in emergencies
  • Price split between commuters can cause price to fluctuate (30-day notice is requested before leaving)

4. Public Transportation

If you live in a city with a decent public transportation system, the bus/rail/subway could save money on your commute to/from work. Some employers will even pay for a monthly bus pass. A few years ago, I had a position in downtown St. Louis where parking was non-existent. The building was right across from a Metro Rail station, and taking the train to work made perfect sense.

Pros:

  • Save on gas and vehicle wear/tear
  • You’ll have to do a little walking, which is good for your health
  • Typically, public transportation runs frequently during work hours
  • Employers may provide public transportation subsidies; subsidizing or eliminating the cost

Cons:

  • Little privacy
  • Public transportation can be crowded and noisy
  • Not available in all areas

5. Bicycle

Perhaps you only live a few miles from your job…consider biking to work! You will shed some weight and keep more cash in your wallet. Personally, I live too far from my job for this option, but our Metro System has an accompanying bike trail. Many commuters bike to the nearest metro station, take the rail, and ride into work. If I didn’t have to pick up my son from day care, I would explore that option from time to time!

Many employers encourage health and wellness, and may provide lockers and shower facilities. Some people are invigorated by morning exercise. If you are one of those people, this may be a great option.

Pros:

  • No gas expense or wear/tear on your vehicle
  • You’re getting exercise

Cons:

  • You need to invest in a quality bike and safety gear (not really a bad thing…but an expense)
  • Limited by distance and environment (make sure your commute is safe!)
  • You need physical stamina
  • Forced to travel light
  • Dependent on weather
  • Need a backup plan in case you’re too tired to pedal home, emergencies, or inclement weather

6. Compressed/Alternative Work Schedule

The compressed work schedule is a wonderful thing! I currently take advantage of this and absolutely love it. Basically, in an 80-hour workweek, I get every other Friday off by working 9 hours (instead of the typical 8) Monday – Thursday, then Fridays I alternate between short days (8 hours) and being off. Count it – it’s still 80 hours.

Alternative work schedules (sometimes called flex) allow for variation from the employees core hours without altering the total number of hours worked in a pay period. A common alternative work schedule is 4 10-hour days. This means employees would have 1 weekday off every week. Most choose Friday or Monday to have a 3-day weekend. Another common day is Wednesday, because you are only working a max of 2 days in a row.

Entire states have implemented 4-day work weeks in the past (California and Utah come to mind), but this is a benefit many employers will offer if you ask.

Pros:

  • Break up the monotony of a 5-day work week
  • Employers benefit from extended work hour coverage
  • Quality of life benefit that makes employers competitive for best employees
  • 1 day a week you don’t have to drive to work
  • Potential flexibility

Cons:

  • You’re working longer hours when you are at work
  • Not available unless your employer approves

7. Telework

The last technique on the list is to save money by not commuting at all. If you are able to telework full or part-time, you can save money at the gas pump. Telework is basically working from home. Organizations are split on if teleworking employees are productive. If you take advantage of this option, be sure to show results! Also, full-time teleworkers often complain of being overlooked by their company.

Networking goes a long way and that is hard to do if you’re not in the office. Employees may have the option to use a hybrid approach, and telework once a week or pay period. I’m not eligible for a regular teleworking schedule because of the nature of my work; however, I can telework sporadically with supervisor approval. Usually if there is reporting or paperwork that I know will keep me in front of my desk all day, I request teleworking on that day. I haven’t been turned down yet!

Pros:

  • Immediate savings on cost of driving to work
  • Potential savings on clothes (dress in what you’d like!)
  • Save time for yourself and your company, as you can begin working faster

Cons:

  • Not available to all employees
  • Not suitable to all industries
  • Requires discipline
  • Full-time telework employees are often overlooked/report feeling detached

What about you?

There is not a one size fits all method for saving on the commute to work. You have to factor in what is available and your personal preference. I use the compressed work schedule with an occasional telework day (averaging once per quarter).

  • Do you employ any of the methods listed above to save money on your work commute?
  • Are there additional methods that you can employ?
  • If so, what are they?

MomCents is a 30-something Christian, wife, and mother of a 2-year-old son who is jumping back into the wonderful world of blogging with her attempt to create a personal finance/mom blog. If you’re looking for expert advice, she advises you to stay away! But, if you want to follow the ups, downs, twists, and turns of a real person who will make mistakes along the way…stop on by. Hopefully you’ll find a laugh, encouragement, or both! Find MomCents on Twitter and Facebook.

10 Unexpected Benefits Of Buying A Bike

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Last week, I bought a bike. It’s the best decision I’ve made in a long time. Economical, healthy, simple, and everything in between, my bike is the embodiment of this website and my frugal journey. After two weeks of riding, I decided to write up the 10 unexpected benefits of buying a bike. Enjoy!

1. Feel like a kid again

OoooOoo
Somebody is happy!

The breeze is blowing through my helmet — cooling my scalp. Sometimes I let go of the handlebars and feel free; albeit, for shorter periods than when I was a kid. It’s been too long since I raced my self — pushing to reach the top of a hill faster or make that light.

Or, how about zooming down a hill, with your head tucked, and chest near the handlebars? That rush! Hands wrapped tight around the grips — holding on for dear life. It’s a physiological thrill that never gets old. My bike calls me to jump off a sidewalk or climb a hill. There isn’t one path, only your path. Just don’t forget your helmet, kid.

2. Save money on commutes

Bike Path
The bike path less traveled…

Last semester, when I had my car, I consistently missed the bus. This timing and planning error would always result in a simple, but costly decision to drive. Even though the commute to school was only about 4-5 miles each way, that adds up really quick.

The federal government suggests that driving costs on average about 50 cents per mile (after you account for insurance, gas, depreciation, etc.). At that rate, I was burning serious dough with my poor planning. Potentially, my commute would cost me about $5 round trip, and even more when including parking (at $1 per hour).

This was a leaky part of my budget, and buying a bike patched that right up. I don’t have an excuse to drive. I never worry about missing the bus. I just hop on my bike!

3. Save time on car or bus commutes

I plan on riding my bike far more often. Frankly, I’m actively avoiding the bus, which takes a circuitous, tedious route all throughout the western part of my city. All I have to do is snap on my helmet, hop on my bike, and 7-10 minutes later, I’m at school, work, etc.

Despite living about 4-5 miles from campus, my bus commute takes about 25 minutes. I’ve grown to like the route and bus, as it’s afforded me down time and an opportunity to read. But now I get the best of both worlds: the bike takes about 10 minutes at most — saving me 15 minutes in commute time — and offers meditative exercise. The extra time is now mine to enjoy.

4. Get healthy and feel more positive

Sweating bike commute healthy
Get this man a towel!

Despite living in the midwest (read: flat), my city is hilly. Biking to and from campus is a nice little workout. By the time I make it, I’ve got a nice sweat worked up.

Yeah, I probably need to apply more deodorant now, but I’m feeling exceptionally healthy by biking. In a way, biking to and from work offers me a period of time to get in the zone and let loose before undetermined periods of inactivity. The benefits extend far beyond anything physical, visual. Biking has honed my mind, and I feel better focused at work.

5. Put extra funds into retirement accounts

Saving Money Buying A Bike

It turns out that the secret to securing the rich, leisurely social life depicted in car ads is to not own a car. –Sydney Morning Herald

Every day I ride my bike is more money in my pocket. Between car loan payments ($196), insurance ($42), and gas (about $35-40) each month, I suddenly have a tremendous budgetary surplus. I’m shocked that as a meager graduate student, I’ll begin saving about $300 per month.

Building a savings and surplus is wonderful, but what I do with the money is essential. I can’t just start spending more on eating out, vacations, and discretionary goods. Over the last couple months I’ve restructured my retirement accounts to benefit from increased income, but also to prepare for a significant end-of-year self-employment tax.

With about $300 per month, I’ll be using commission-free ETFs within a traditional IRA to maximize my 2014 tax refund, while minimizing trading costs on small trades. As the budget settles, I’ll make the payments and trades automatic to benefit from regular, compounded interest — finally!

This is all possible because I downgraded to a bike. But suddenly, it doesn’t feel like a downgrade at all.

6. Slow down your pace of life

Unlike driving or taking a bus, my pace and speed is my own. The independence is empowering. Oftentimes, I use it to slow down and become more mindful of the world around me. I appreciate every moment much more.

Even if I’m commuting to work, the bike ride is a break from it all. There’s a peace as the wind passes over my ears. I guess I didn’t realize how calming it would be — nor did I realize how relaxed I’d feel after a long adventure. Life slows down ever so slightly when phones aren’t checked and the watch is left at home.

7. Develop an environmental awareness

It’s a cliche of biking and green communities, but I definitely feel like I’m helping the environment by opting for a bike. The carbon emissions produced from riding and maintaining a bike are miniscule compared to a car. I’m contributing to a positive change: reduced impact.

After reading countless articles about climate change, I felt compelled to make a serious individual change. It motivated me to sell my car and change my spending habits. Buying a bike is one of the final steps.

The world would look very different if everyone just rode bikes, but our economy is not designed for this singular transportation method. Nonetheless, I realized that the city I live in would allow for this switch. I jumped at the opportunity to change my lifestyle.

8. Join a community of cyclists

In my first two weeks of ownership, I’ve already gone on two longer bike rides with friends. I wasn’t doing this with my car. It costs nothing to bike around the city with friends.

There’s a friendly respect between bikers — from the head nod, wave, or “hello.” This doesn’t happen in cars (see point 10). Vehicles are impersonal by nature, and bikes are open. Your face can be seen.

In a way, biking links you to a community of riders without ever formally signing up. The personal nature helps connect the group and you can trust that if something went wrong, fellow bikers would likely pull over to help you.

9. Your body is the fuel — treat it right

Batman Commute GIF Bike

No more trips to gas stations! Gas prices on an individual level are no longer important (yes, they are still important on a macro level as they affect food prices). I’m not spending time squeezing the handle of a pump for a few minutes every couple weeks. I’m done going out of my way to find a station or check for the cheapest prices.

More than fossil fuel savings is the greater joy of realizing that my body is being used. Afterall, we are incredibly complex, biological machines. Producing energy from our food intake is necessary for a long life. My muscles activate when I bike. It’s a simple realization: I need to take care of my body — it’s the only fuel source I have. Better treat it well.

10. Build an empathy for others on the road

This is a positive and negative point. Sharing the road with cars is inevitable, but it’s almost always a horrible experience. Cars don’t give you enough room, trail too close behind, and stories of road-ragers hating bikers are scary. Sitting in your two-ton vehicle, riding a bikers ass is a terrible assault. Whenever I feel that pressure, I feel like slowing down even further.

It’s been a while since I was on a bike this much. By joining the ranks, I’ve quickly developed an empathy for the many people who share the road. We’ve all got to make it work. If only the horrible drivers decided to bike more often, maybe they’d realize what it’s like to be on roads with rain gutters, potholes, and drivers crowding the shared road.

Beyond The Home: Surprising Things You Can And Should Rent

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Citibike Bikesharing Rental Rent
Photo: edwardhblake/flickr

This is a guest article from Stefanie! She’s trying to find ways to stretch her budget in one of the most expensive cities out there, New York City. A graduate of New York University’s drama and psychology programs at the height of the financial crisis, Stefanie discovered the world of financial planning out of necessity. Thanks for sharing your insight, Stefanie!

When we discuss renting versus buying, it’s typically in the context of the housing market. Today, we’re going to look at it from a different angle. Thanks to the Internet, what you should and can be rented has expanded to include just about everything. Whether you’re looking for an extra income opportunity or you need a specialized tool for a one-time project, be sure to consider all rental opportunities.

Should you rent, lease, or buy a car?

While I would never recommend leasing a car, buying a car (used or new) isn’t always the most cost effective alternative. For those of us who live in big cities, where parking comes at a premium and public transit is readily accessible, short-term car rental may be a better option. The following are some terrific options to get you started:

Relayrides / Getaround. Relayrides and Getaround facilitate person-to-person car rentals. The car owner posts information about their vehicle along with availability and price. When the renter finds a vehicle that suits their needs, they can request a trip time. Once a mutual agreement is made and booked, the renter picks up the car and returns it as discussed. Both sites have a peer review system to rate both renters and vehicle owners.

Zipcar. Zipcar offers car rentals through a membership program. With the flexibility to rent by the hour or the day and many convenient locations, Zipcar is a great option for someone who needs occasional automobile access.

Lyft. Skip the rental altogether and opt for on-demand ridesharing with the touch of a button. Lyft is an app that allows passengers to connect with nearby drivers to get where they need to go.  Depending on the city, Lyft rides are donation based or have a set price.

Of course, if you own a car (and you can tolerate the risk of a stranger driving your vehicle or riding alongside you), you can get in on the other side of the equation and bring in some side income.

Should you rent or buy a bike?

As a city dweller, I prefer to use a bike as my primary mode of transportation, but I have yet to take the plunge on buying my own. I opt for the city bikeshare program that saves me from worrying about storage, theft, maintenance, and traveling with a heavy lock and chain all over town.

When I travel out of town, I prefer to scour craigslist for bike rentals rather than the expensive, local retailers. Sites like loanables and zilok also make it easy to find a bike near you. Alternatively, as a bike owner, you can create your own listing and start generating income off your two wheeler.

Should you rent or buy certain clothing?

There are certain articles of clothing that are only necessary for special occasions. Do you really want to spend a fortune on something you’ll wear once? Rather than splurging on an evening gown that you have to store in your limited closet space, you now have the option of renting designer labels.

Rent the Runway. Rent the Runway offers over 50,000 designer dresses and accessories for short-term rental delivered right to your door.  If black tie occasions are not a norm, this is a great option for getting glam for a fraction of the price.

Despite the awesomeness that is rent the runway, I have to go for the buy option on my formal apparel. I have between one and three black tie affairs to attend annually.  Each of my evening gowns have seen enough wear to cover the cost of a one-time rental. And for the men, no one will bat an eye if you wear the same tux twice.  Go ahead and buy one already – just remember to maintain your figure!

What about equipment, tools, and everything else?

In addition to bikes, loanables and zilok allow you to rent just about anything. From Xboxes (which can be up to $500!) to sewing machines to ladders to kitchen aid mixers, determining which items to rent, which to buy, and which to list, will always depend on your specific needs, circumstances, and risk tolerance.

Whatever you’re considering, think about these questions:

  • What is your projected cost per use of the item?
  • Are you willing to invest the time and energy to make a rental income off your item?
  • Do you trust strangers to keep your rental in good condition?
  • Do you prefer the convenience of renting?
  • Do you prefer the convenience of ownership?
  • Lastly, is it worth the cost?

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