It’s March 8th, 2008! That means The Hungry Dollar has been up and running for an entire month now! I know, it isn’t exactly a milestone but I wanted to take this opportunity to open the floor up to my readers anyway. Without you, The Hungry Dollar would cease to exist! So please, take a minute to let me know how I’m doing. What do you like? What do you not like? What would you like to see more of? Etc, etc.

To those of you who subscribe to my RSS feed or email subscription thank you! I want you to know that I’m working hard toward my goal of bringing you daily updates. Also on the horizon is The Hungry Dollar MySpace profile (currently under construction). Stop by and check it out! (If you don’t have a MySpace account you can get started here.)

Cody

There are many different opinions out there about whether or not there is such a thing as good debt. Many financial advisers believe that no debt is good debt. You should pay cash for everything! Other, more liberal financial advisers will argue that an affordable home or vehicle loan is an acceptable form of debt. If paid on time, these loans will actually help your credit standing.

I lean more towards the liberal side on this topic. I feel there are certain forms of debt that are acceptable as long as they are managed correctly. Let me give you a few examples…

• An Affordable Home: I support making an additional mortgage payment annually, but that’s it! Rather than focusing on paying off my mortgage, I would rather put that money in an investment that will get a much higher return over time than I would get from the equity in my home.

• Real Estate/Rental Property Investment: Real estate has proven time and time again to be a sound investment if researched properly.

• Education: The earning power you attain with a college education will more than compensate for the student loans you acquired along the way.

• An Affordable Vehicle: I realize this is typically bad debt as it depreciates in value, but many of us don’t have the cash necessary to purchase a safe, reliable vehicle. If a loan is required to purchase a vehicle that will get me where I need to go without leaving me stranded on the side of the road, then so be it!

As for bad debt, a good rule of thumb is if you consume it, feed it, or it loses value over time, its bad debt! These are all things you should be purchasing with cash. Putting these expenses on a credit card adds up quickly, and before you know it, you don’t have the funds in your checking account to cover the bill at the end of the month. This leftover balance now rolls over into the next month’s statement and interest is applied. So begins the downward spiral!

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For those of you who don’t know, Quicken has just released their online service Quicken Online (Quicken Online Edition – Try it out for free). This new service is available for just $2.99 a month! If you’re as excited about this as I am and want to get all the details, read my interview with Jodi Reinman, Quicken’s PR Manager…

Cody: How much does it cost to use Quicken Online?

Jodi: $2.99 per month.

Cody: What advantages does it offer over the current software?

Jodi:

• It’s ideal for people who prefer a web-based service over desktop software.

• It’s fast and easier for most since it’s focused on solving the core jobs of personal finance - show me where my money is going, tell me when my bills are due, and how much money do I really have.

• It leverages user-contributed data. For example, when it comes to categorizing spending, QOL will automatically categorize your spending based on the work that others have done. For example, if someone categorizes a local boutique (let’s just say it’s called “Her Store” as “Clothing” it will automatically get categorized that way when you spend money there. Of course you can edit the category if you like.

• It’s always accessible - anywhere and anytime — even by phone. Quicken Online is optimized for the iPhone, so wherever your phone works, you can use Quicken Online.

• It’s faster and easier to add new functionality since it’s on the Web.

Cody: What versions of Quicken software does it purpose to replace?

Jodi: We have more than 14 million Quicken Personal Finance Software customers. For many, Quicken Online is not a replacement because they enjoy the rich functionality of the desktop software - and having all their data on their computer. So it wasn’t really designed to replace the software, but to address the needs of those who were looking for an online solution. These folks tend to be younger and first-time users of a personal finance solution, e.g., young folks who have grown up on the Web and college students. But that’s not to say that some desktop users of Quicken - particularly Quicken Starter Edition may not also be attracted to Quicken Online.

Cody: Would you recommend it to a personal finance novice?

Jodi: YES!!!

Cody: Can I pay my bills with it?

Jodi: Currently, QOL can send you reminders for when your bills are due - even send you a text message if you choose. We are working on adding the bill pay functionality later.

Cody: Can I access it from any computer?

Jodi: Yes, wherever there is a Web connection.

Cody: Will my private information be secure with it?

Jodi: Our software products, including Quicken, protect transactions with multiple layers of security so customers can bank online with confidence. Quicken online financial features take advantage of industry standard encryption and authentication technologies. We’ve even added an extra layer of security by adding an additional question during the sign-in process.

Cody: If I am currently using Quicken software, can I export my existing data?

Jodi: At this time, that is not possible. Quicken Online does not integrate with Quicken desktop software.

Cody: What kind of customer support do I receive with it?

Jodi: There is a Quicken Community support button within the offering that allows you to ask other users and Quicken staff for answers to your questions. This is available around the clock.

Cody: What happens if I sign up and decide I don’t like it?

Jodi: We would recommend using the 30-day free trial offer first to see if you like it. And once you sign up, if you don’t like it, you can stop subscribing.

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I know many of you who frequent financial blog sites may have already visited NetworthIQ, but for those of you who have not, I recommend doing so. Especially if you are a visual person like myself! NetworthIQ is a personal finance tool that allows you to create a profile (which other members can view) to track your net worth. After plugging in a few numbers, your assets and debts will be added together to figure your total net worth. It even breaks this information down into percentages and graphs for your viewing pleasure. All for free! It truly is an inspiration!

Initially I was turned off by the fact that this information is publicly displayed for all to see, but after I created my own profile I realized it’s actually quite liberating. Whether you’re in the black or the red, it’s like your telling the world, “My name is (insert name here), and here is what I’m worth!” For some it’s a visual representation of all their hard work, while for others it’s like the first step towards admitting they need to make some changes in their life.

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For those of you who don’t know this about me, I’m a bit of a perfectionist. Now while this benefits me in many aspects of my life, it has become quite a hindrance in others. One of those being my finances! I would spend entire evenings building excel documents to track my finances, when I should have been paying my bills or searching for ways to free up money to send to my debt (learn more about freeing up money to send to debt in my article Not So Mandatory Expenses). It took quite some time, but I finally realized the error in my ways. I figured out that finances are one of those things in life that can never truly be perfected. You can spend your whole life trying, but you’d be wasting your time. This is time that could have been spent in other, more important, facets of your life.

I wanted to write an article on this (how I was able to put my perfectionism aside with regards to finances), but then I stumbled across an article on Paid Twice. The article is titled Perfection is the Enemy of Progress and it said it all! As I was reading it, I remember thinking “Wow, this is the exact same problem I had.” So rather then recreate what has already been done, I encourage those of you suffering from perfectionism and finances to read this article. It really helps put things into perspective.

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