Personal Finance News Wednesday 2/13

Phil's Personal Finance Tip of the Day:

First Person: I Had No Savings at 40, but I Retired by 60

By Augustine St. Claire | Yahoo! Contributor Network – Thu, Feb 7, 2013

I was living in Los Angeles. Had a great job at 40 and was not putting one penny away in savings. I was spending money faster than I was making it, living the single life. I knew every bar and restaurant along Hollywood Boulevard, and bartenders and waitresses knew me by name.

Now I'm living a comfortable retirement. What turned me around?

Reality. I noticed my co-workers and friends moving on with their lives. While I was stuck in a small apartment, they were getting married, buying homes and establishing a life beyond the nightclub. I knew I had to get serious and start saving.

I tore up all of my 13 credit cards

At the time I owed over $30,000 in credit card bills and my interest was over 19% on each card. Each card had a limit of $10,000. I cut them all up and started using a debit card.

I got on a budget

I created a budget. I paid off several cards in two years and reduced my expenses and saved over $900 a month. My income was $40,000 a year I was 40 which was a net of around $2,500 month. However, I charged everything. When I tore up my credit cards I put myself on strict budget: rent $440 per month, car note $275, and credit card $400 a month. I took all the extra cash and paid off my lowest balance credit card first, then second. I also put over 20% of my gross into the 401(k) and profit sharing programs and stock options at work.

To read the entire article from Augustine St. Claire | Yahoo! Contributor Network:

http://finance.yahoo.com/news/first-person-had-no-savings-40-retired-60-180400536--finance.html;_ylt=AoBmkBerp92KzO_Txur1E0miuYdG;_ylu=X3oDMTQ0aGZlMWVqBG1pdANGUCBQZXJzb25hbCBGaW5hbmNlBHBrZwNhNDU5ZDg3YS00ZjgwLTM4Y2ItYjY4Zi0zNGM2NmZhZGFhN2MEcG9zAzIEc2VjA01lZGlhU2VjdGlvbkxpc3QEdmVyA2M5OTI3OWRmLTcxNmQtMTFlMi1iNzRmLTgyZmM2ZGRjNmZmMA--;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3

Inspirational Quotes@Inspire_Us from Twitter:

The only disability in life is a bad attitude. -Scott Hamilton

Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com