PerkStreet Financial

This post is by guest writer Kevin Mulligan. Kevin is developing a freelance writing career focused on personal finance.

photo credit: Triple Tri

If you’ve ever followed me on Twitter you’ve noticed my profile photo is me standing outside the glorious Neyland Stadium in Knoxville, Tennessee. I’m sporting my UT hat, and (you can’t see it) a UT sweatshirt.

There’s a great personal finance story behind that photo that I’ll get to in a minute.

But as you can tell I’ve got a passion for college football just like millions of other Americans. The question remains: how do you balance your passion for sports with the ups and downs of your personal finances?

Have no fear sports fans because I’m here to tell you it can be done. You can enjoy your team without going broke.

When Is It Okay to Spend on Sports?

It is never okay to splurge on any hobby or passion if you can’t afford it. You’ve got to have your budget and personal finances on the up and up first. As Dave Ramsey points out you need to start with the basics: food/water, shelter, clothing, and transportation. Then move on to your emergency fund and the rest of your saving categories.

When my wife and I decide to integrate a sports event into our budget we simply start saving up for it. It feels a lot better paying for tickets when we know we already have the money. No worrying about payments or credit card interest for this family.

How to Support Your Sports Team Without Bankrupting Your Home Team

If you’re the person with season tickets in the first row on the 50 yard line this post is simply not for you. You’ve got more money than I can imagine.

For the rest of us that can’t afford a $10,000 donation to a university each year, there are a couple of different strategies you can use to avoid paying through the nose while still getting to enjoy a game or two.

• Buy and Split Season Tickets

This is a strategy my wife and I used in 2008. She surprised me by wanting to take me to our first Tennessee football game. Since we live in Alabama and have to listen to their smack talk all year long we thought we’d go see the Vols play them in Knoxville.

Unfortunately tickets were running $200 to $400 per pair — and for terrible seats. We weren’t ready to pay that much.

Then I learned there are two different types of season tickets: renewable (you get the same seats each year) and non-renewable (your seats could change from year to year). While both season ticket types require a donation to the University the non-renewable donation was 50% less ($250). The total cost for 2 tickets to 7 home games was $880.

We hatched a plan.

We did some research on eBay and found that Florida at Tennessee tickets were going for upwards of $400. That was well over face value and would cover 45% of the cost of the tickets. If we sold the rest at face value we would at worst pay face value ($70 per ticket) for the Alabama game. That alone would save us $60 to $340 dollars based on what we were seeing tickets go for.

We ended up giving some tickets to family, selling a pair to a couple of friends, and eBaying the rest all successfully. We got to go to the game for about $25 per ticket — well below what we would have paid elsewhere.

It was a calculated risk and we planned ahead. It worked out really well!

• Buy Individual Tickets Close to Gameday

If you aren’t comfortable with taking a calculated risk with several hundred dollars just hop on the other side of the equation and buy some tickets from friends that are looking to split a season. At worst you can hop on eBay or StubHub to buy tickets. You obviously won’t make money off of this, but you can limit your financial risk by getting a set price.

• Enjoy Big Games from Home

One thing to know about college football tickets is that the while smaller games are usually still available directly from the University for face value, big games may end up costing you way more than just the cost of one ticket. Tennessee requires you to either buy a mini-pack of the big games or season tickets to get access to the really big games.

So you’re not comfortable paying $300 for a lower end zone ticket? No big deal. Just stay home. With all the technology available today staying home can be a better experience than being at the stadium.

Even if your game isn’t covered on any of the networks you can always Pay Per View it for $20 to $30. Invite 4 friends over and split the cost of the game (and the snacks) — everyone wins.

Keep Your Perspective… If You Can

Sure, everyone wins. Everyone, that is, except for Tennessee when Alabama came to town. We got rolled 29-9.

You know what took a little bit of the sting out of the loss? It was our first Neyland experience together and we didn’t pay through the nose to watch our team get beat.

That and a little bit of perspective… because it’s just a game, right?

“I’d love to, but it’s just not in the budget.” I’ve had to say this quite a bit lately but for some reason it’s never met with, “I understand. Maybe next time!” I’m often left feeling defensive about my spending choices, guilty for not choosing the one that includes what someone else thinks it should, and horrible for in the end giving in and not having enough money to cover my own priorities.

Dear Spendy Friends, here are some tips from your Frugal Friends on how NOT to respond to “I can’t afford it.”

photo credit: besighyawn

1. “Don’t worry, I’ll cover you.” Impromptu office burrito lunches happen, as does grabbing a beer with a friend who needs an ear. Personally, I don’t mind someone covering a few dollars here and there, because I do it for others and those sorts of things usually even out in the wash among friends and co-workers. But when it’s a large cost item, one that isn’t remotely in the budget in the first place, it’s a really uncomfortable situation to have someone take care of it. Don’t insist. If you offer to pay his way and your frugal friend still declines, respect their decision and move on. Pressing just makes it uncomfortable.

2. “If you invite my friend, I’ll pay for their costs.” Never say this to someone planning an event, especially not to a bride regarding her wedding. Just don’t. There are two lists many couples make when planning a large event or wedding, the “Invited” and “If we can afford it we’d love to invite” lists. If your candidate isn’t on either list, it’s not because of money. Please don’t try to turn someone’s dinner party or wedding into a ticketed event, or make them have to say aloud, “I don’t like your crazy aunt Mildred and I don’t want her or her cats at our wedding.”

3. “So you can’t afford to do this, but you went out to dinner last night.” Great discussion on Budgeting In The Fun Stuff the other day about being called out for being too cheap or too spendy, which comes down to the same issue here. It’s other people passing judgment on your spending priorities and it is absolutely never ok. Think it all you want in the privacy of your own home, but know that if you say this to a friend, you are a bad friend.

4. “Can’t you just borrow some money?” I’ve never heard this from a friend but threw this in because you all are not going to believe this story. I was falling behind on my student loans right after college, and the company I had my loans with was not budging on the monthly amount owed. The customer service rep said to me, “Can’t you just borrow some money from your parents or something?” I’m not even going to begin to get into the ways in which that is a horrible thing to say to someone, and I know you probably wouldn’t say this, Spendy Friends, but let this be a reminder to seriously never EVER say this.

5. “You could if you wanted to.” See also, “If you loved me you’d know what I was thinking.” This is a completely unreasonable thing to say designed to cause guilt and get your way. Stop that.

Spendy Friends, please know that we love you very much and value your friendship. We appreciate your generosity, and that you want so much to have us join you for burritos and beer and weddings that you won’t let money stand in your way. Let’s here and now agree to respect each others’ decisions about money, even when they don’t align, and focus on the conversation and laughter that made us friends in the first place.

What have your Spendy Friends said to you that burns your cheese? Make sure to include how you handled it. I am working on a post about that, and I would love to include your answers!

photo credit: Caitlin Childs

While you read this, I’m moving! As you may recall from previous posts, I hate moving. Today’s move is especially frustrating because we’re going a whole 4 blocks from where we are now, which means it’s a lot of effort packing and unpacking to go literally around the corner.

I’ll be back in September, but in the meantime send good moving vibes my way and enjoy some of my favorite moving info:

• Frugal Mama covers all the bases with her Ultimate Moving Checklist for Families. Trust me, there’s plenty of good stuff in there for a family of two to use. I’m a big fan of her idea to choose an online bank to alleviate the need to find a new bank after you move, of course!

• Kelly from Life, Love and Frugality gets some moving advice from the best frugal bloggers around over at Blog Frog.

• If you’re in Boston or San Francisco, try using TaskRabbit to help you find movers. You set the price and the stipulations (do you need a van or just a pair of hands?) and choose the bid you want to accept. Also a stress-free and affordable way to pick up last minute items from IKEA, or ask someone to make a grocery run to fill your new kitchen with food.

Ways we’ve kept our move cheap?

• We’re doing it ourselves. This was not a choice, exactly. I begged to hire movers, but September 1 in Boston is a huge moving day (lots of students in the area) and there was no room for negotiation on price. I couldn’t stomach paying $700 to go 4 blocks. U-Haul and our own (and our friend Paul’s!) brute strength it is.

• We didn’t buy boxes. Luckily Jason gave me all the boxes that his wedding gifts came in, and every time something was shipped to PerkStreet, the boxes came to me. We’re also borrowing boxes from a friend’s recent move. Finally, we got an absolute steal on large plastic bins at Target – thanks back to school sales! – which come in handy for all kinds of things and store easily once we’re all moved in.

Ways we are being wasteful:

• Food. I didn’t plan a grocery trip for things that would be fast and easy and not require dishes or pans, so we’re eating a lot of takeout. Not good on the wallet or the waistline.

For the most part it’s a frugal move. Not so sure about fabulous, though I know I’ll be thrilled once we’re moved into our new place and I get to do laundry without having to go outside and down the block with pockets full of quarters.

Got any moving horror stories/awesome stories to share? Leave them here! Not moving? Revisit Rev Up Your Rental to make inexpensive but impactful changes to your current home.

Parker, a PerkStreet pet

Many people love having a pet. But pets can be really expensive. The ASPCA estimates that large dogs can cost at much at $1,800 in the first year alone, and several hundred dollars each year after that. This isn’t a decision to be made lightly. You should never get a pet unless you fully understand, and can plan for, the proper care and feeding of the animal. That said, there are some ways to reduce the cost of pet ownership:

This week, enjoy sweet pet deals from Savings.com! And on Thursday, National Dog Day, get an extra savings boost with 5% cash back on non-PIN purchases at these stores as well!

• Petsmart: Save 10% on any order
• Petco: Save 10% on any order
• Dog.com: 20% off of dog toys

Get your pet from the local shelter. You will have to pay for shots and other initial treatments. But that cost is nothing compared to the expensive breeding fees of the pure bred kennels.

Groom your pet on your own. Skip the expensive pet spa treatment and invest in some clippers.

Buy all your medicines, litter, and food online in bulk. Look to sites like Savings.com to find extra coupons.

Bring your pet in for regular check-ups and preventative treatments. Spend a little to avoid the big expenses.

Get your pet toys at the local thrift shop or at garage sales.

Consider a small pet insurance policy the first year. To insure against getting a sickly pet, it might be wise to invest in a small pet insurance policy for the first year of ownership.

Finally, you need to make sure you can handle the big medical expenses when they come. Create a pet emergency fund to account for big cash outlays for your pet.

Do you have a pet? How do you save on pet expenses?

Details: The Savings.com discounts are good from Monday, August 23, 2010 through Saturday, August 28, 2010. This PerkStreet 5% cash back Daily Deal is only valid on Thursday, August 26, 2010. The amount you can earn at the 5% cash back bonus rate is limited to $500 per household annually (starting on the day your account was opened). After that, your cat should probably start paying rent. The total amount of cash back you can earn remains unlimited.

This guest post is from Pete Anderson of Bible Money Matters. Pete believes that everyone can live a life free of debt and financial strain, they just need to have a plan.

While I’ve never considered myself a big spender, over the years I’ve come to realize that I’m not exactly a skin-flint either. In the past I’ve always allowed myself to buy the things that I wanted, even when I didn’t necessarily have the money. I figured I could always pay things off within a month or two, so it was no big deal. Over time, however, small things have a way of adding up.

I didn’t really start coming around on how I viewed debt until after I married my beautiful wife Maria. She came into the marriage with absolutely no debt except for the mortgage on her townhouse. I quickly realized that my debt was an anchor holding us down; our monthly obligations and debts were quickly getting out of control. We had to take charge and get rid of it once and for all.

It took us nearly 4 years to pay off around $32,000 in debt, but because I had no plan it took a lot longer for us to get out of debt than it should have. If we had to do it over again, here are the steps I would have taken to get out of debt.

How To Get Out Of Debt

• Save up a small emergency fund: One thing that we did wrong was that we didn’t save up any kind of emergency fund. So anytime something would go wrong (and it did), we would end up having to incur new debt on the credit card. Instead of living in that vicious debt circle, save up $1,000-2,000 in a liquid checking account that you can access if an emergency arises. That way you can stop worrying about small emergencies like a car repair, root canal or needing to repair the furnace.

• Do a zero based budget: As a family sit down and do a budget where you allocate every dollar of income to either a spending, saving or giving category. Once you actually write down all your monthly expenses you may be surprised at how much waste is to be found in every day spending. For us we found we were overspending by hundreds of dollars in the “dining out” category. Adjust your spending where you can, cut back and assign found (wasted) money towards your debt payments.

• Create new income: Get a part time job or start a side business (without debt) and create extra income that you can put towards your debts. Your part time gig will probably only be temporary until you can get your debts paid off. So work hard now so you can prosper later!

• Pay off debts: Pay off all your debts using a proven debt reduction program like the debt snowball or debt avalanche. With the debt snowball you just list all your debts, make the minimum payments on each and then use any extra income you have to pay extra on your smallest debt. You continue doing this until all debts are paid. With the debt avalanche method you list all your debts and use extra income to pay more on your highest interest debt. You continue doing this until all are paid off. Each method has its advantages, so do your research and pick the method that works best for you.

• Build up a larger emergency fund: After you have your debt all paid off, it’s time to make sure you don’t find yourself in that situation again. To do that, save up a larger emergency savings of 6 or more months of household expenses. Now you should be able to insulate yourself against the possibility of a job loss, medical issue or other major life event.

Getting out of debt isn’t easy, but it can be done. It just takes hard work, perseverance and a bit of self control. If you set your mind to it and make a plan, you can get out of debt and live free – just like we have.

Are you trying to get out from under debt? What steps have you taken? What’s worked best for you so far?