3 Psychology Traps to Avoid While Shopping

Hi everyone! Today I have a special guest blogging for me - my friend Vince Favilla! Check out his site where he teaches entrepreneurs how to find more clients, pursue their passions, and eliminate stress. He runs the positive psychology blog, Soon I Will Be Successful. He's going to be sharing some psychology traps that marketers use to lure us into buying things we don't need. I actually fall prey to these traps as well, but being able to recognize them will make it easier for me to understand why I'm wanting to spend and buy certain items that I don't need.

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As our understanding of psychology and the decision-making process continues to deepen, retailers will increasingly use underhanded tactics to get you to spend more money than you might intend to. What follows are 3 mental traps that you’ll start to see exploited everywhere once you understand them. And simply being aware of them can help — not always a lot, but sometimes enough to make you think twice before pulling out your credit card.

1. Anchoring

We’ve all had experiences with anchoring before. When you see a jacket marked down to $40 from $99, your brain screams at you that this is a great deal. How can you afford not to get it?! It’s 60% off! Plus you needed a new jacket anyway! (Kinda...)

This is an example of anchoring, and what’s particularly sneaky about it is that it works even when you know it’s happening. Not only that; you can become anchored to a number that’s not even related the price. A study by renowned psychologist Dan Ariely asked participants to write down the last two digits of their social security number. They were then asked to “bid” on a wireless keyboard. Those who wrote down numbers between 1 and 20 bid an average of $16, while those with numbers between 80 and 99 bid an average of $56.

Your brain is constantly being influenced by cues in your environment, and most of the time you’re not even consciously aware of them. Retailers will take advantage of this fact, and do everything in their power to convince you that something is a better deal than it actually is. But when you see a price markdown, it’s a flashing-neon-sign of a clue that you’re being manipulated. So step away from the jacket, and ask yourself if you’d feel the same way if it were marked down to $40 from $40.99.

2. Scarcity

Pull up a product page on Amazon.com and you’ll sometimes see a message like “Only 3 left! Order soon.” This is the psychological principle of scarcity at work, and it was originally described by Robert Cialdini.

The term “loss aversion” refers to our tendency to hate losing things. Let’s go back to our jacket example; what if this jacket was the only 40-dollar one left in the store? When every other jacket is much more expensive, it begins to feel like this your only opportunity to secure such a good deal. So what do you do? You buy it, of course.

It’s funny; we’re afraid of losing things that don’t even belong to us yet. And, not surprisingly, retailers employ scarcity to great effect.

What’s your best defense as an educated consumer? Take a moment to evaluate whether there actually is a shortage or not. Is Amazon going to order more books after they sell out? Or are these books the only ones they’re ever going to get? It’s probably the former, so don’t panic when retailers create artificial shortages. The world is an abundant place.

3. Consistency

Like scarcity, consistency is a psychological principle made famous by Robert Cialdini. It’s simply the idea that we don’t like to appear hypocritical. Whenever we take action or make a decision, it says something about us as a person. We tend to stick with that decision and do things that are consistent with it.

Consistency can be used in a variety of ways, and some are more ethical than others. Let me illustrate with an example of when I fell victim to consistency myself:

My keyboard story...

As a musician, I really wanted a professional keyboard several years ago. Not the kind you find at Best Buy; I wanted a Korg Triton, which costs 2-3 thousand dollars. But that was a lot of money and I wasn’t sure I could afford it.

Then one day I found a high-end refurbished model available for half price: $1500. Scarcity and anchoring kicked in to full effect; I whipped out my wallet and entered my billing information into the website as fast as I could. This was a heck of a deal and I wanted my Triton.

Then I got a call the next day saying they were sold out of the refurbished Tritons but could sell me the $3200 model for $200 off.

In my mind, I was already a serious musician and Korg Triton owner. I wanted that keyboard, and no one was going to stop me from getting it.

But that was still a lot of money. I grumbled and thought about it a little, but in the end I agreed to buy the more expensive model. I was behaving consistently with my past actions. Yet if, a week before, you asked me if I was interested in the top-of-the-line keyboard, I would have said there’s no way I’d spend that kind of money.

Some retailers use consistency in harmless ways and give their customers incentives to keep doing business with them. If your local coffee shop stamps your card every time you go in, you identify as a patron of that cafe and continue going there. No problem, right?

But other times, you might end up in situations like mine. Imagine ordering some custom jewelry and you’re quoted a price of $200. Then you get a phone call right as you’re expecting it to ship:

“Sorry, this is going to require more custom work than we expected, and we’re going to have to charge you $220 instead. Is that okay?”

Yeah, sure. It’s only 20 bucks, and you’re already committed to getting that ring. So you go along with it.

Fortunately, you don’t often see consistency used in a way that blatantly rips off customers. But when you do, it’s worth taking your business elsewhere. Try not to put too much thought into your past actions; they’re irrelevant now (and a “sunk cost” as economists like to say).

Summary

I’ve discussed three mental traps that cause you to spend more than you’d like: anchoring, scarcity, and consistency. And even when you’re fully aware of them, they can still overpower your better judgment. So what’s a shopper to do?

As we saw in the example of anchoring, it’s often useful to imagine a slightly different situation and ask yourself what you would do. Would you still buy this if it were marked down 5% rather than 50%? Would you still want this if they had 200 left rather than 2?

Let’s say you’re buying a used car and drive 50 miles to go check it out. The paint is a little chipped and there’s a stain on the seat. Would you still be interested in it even if you hadn’t made that 50-mile commitment?

Even if you can’t fully inoculate yourself to these traps, simply being aware of your thought processes can go a long way. So always ask yourself why you’re making that purchase.

Sunglasses: A Status Symbol

Personally speaking, I don't believe in what a status symbol is "supposed" to represent. I don't believe in the idea that a status symbol should equate happiness and success, but I definitely don't doubt the idea that status symbols represent those things for many people.

As I was growing up, my mom was a single mother and also an immigrant to the USA at the age of 18. She was duped into believing in status symbols such as big house, nice car, and expensive clothes and shoes would make you look and feel rich. I don't think she went overboard, thankfully she is an accountant so she is very good with budgeting, saving, and investing. However, I think this notion of status symbols played a huge role in my life since my childhood in addition to the way the media throws it in our faces.

My mom had a huge closet with fancy dresses for when she would go out with her friends and go ballroom dancing, Vegas trips with her girlfriends, and business trips. We lived in a modest house that she bought herself when she first started working here, and she saved a lot for retirement. Somehow, the big house and nice car weren't status symbols that I considered necessary in my life, but one thing I've always wanted are a perfect pair of sunglasses. 

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Designer sunglasses have a way of making every woman look so glamorous to me. I'm not sure if it's the way my mom wore her sunglasses everyday, or the way the sunlight shone off the glossy lenses, or the way women look so fashionable with sunglasses pushed up against their hair when they aren't wearing them over their eyes. When I was younger, all celebrities had designer sunglasses and the sunglasses got even bigger and bigger (in size and in trend haha).

Today, I've learned that it's not about the brand of sunglasses that you are wearing, but more importantly, how they make you feel. I could be wearing the cheapest brand of sunglasses and no one would know! I could still do all of the things that I could do with designer sunglasses.

I think everyone has a certain type of "status symbol" that's personal to their lives, whether it's considered a status symbol to others. For example, my dad told me a story about how his dad carried a briefcase everywhere, even though he never needed to carry one. A briefcase made you look important, he said. My dad then grew up wanting a briefcase, and he of course snagged one as soon as he could....and he still has his first briefcase until this day!

Do you have something that represents a status symbol to you, but it may not be that big of a deal to anyone else?

Networking vs. Resumes and Work Experience

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Competitive. It's a word that has brought a new meaning into my life since going to law school. 

This semester, competition is fierce. People got cocky from getting high grades last semester (it's like winning the lottery honestly..most of the time just luck), from the interviews they're scoring, the summer jobs they're getting, the scholarships they're being awarded, the new business cards and membership cards they're flashing, etc. Everything is a big rat race.

I, along with all of my classmates, get caught up in volunteering, stressing about grades, finding the perfect summer job, going to networking events, being part of the board of several clubs, going to professors' office hours, reading the best supplements, making the best outlines, etc. I feel like every move is calculated to a tee. It's to the point where everything I do is to boost my resume or make myself more marketable for a job.

Everyone brags about interviews at school, but you also have to be careful because people will just end up applying to the same jobs as you, thus in effect creating more competition for yourself. 

Competition honestly turns people into crazies sometimes. 

At the end of the day, people are only watching out for themselves. Technically, I know we are all vying for the same internships, and one of my friends said, "It all comes down to networking and your resume doesn't really mean anything anymore." I agree that networking is important, but I don't think experience and especially your resume means nothing. 

Experience is extremely important and gives you more to talk about during the interview.I still think networking is important (I am forming mentor relationships with some attorneys) but your work experience and especially your resume play huge roles as well.

What are your thoughts on networking vs. your resume/work experience? 

How much importance would you give each one when job hunting?

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Would You Teach Your Kids To Fight Back?

I heard an interesting conversation on the radio the other day, and I'd really like to hear more input and see what others think.

The radio station djs were arguing about whether you should teach your children to fight back if they are threatened or hurt in school by other classmates.

What would you do if your child was threatened, being bullied, or hit by another classmate during school hours? Would you tell your child to fight back or would you tell them not to? 

Obviously, as a parent, I'm sure you would want your child to be safe and so you would teach your child to defend themselves. It would be devastating for any child to endure being tortured at school, harassed, threatened, for doing nothing wrong. On the other hand, by teaching them how to fight back, are you teaching them violence and that it's okay to hit people? Will they understand the difference between hitting someone in self defense and when they're not?

There was a heated argument on air between two of the djs, and I can see why they were both caught up in their arguments, but I wanted to hear other people's thoughts.

Since I'm not a parent, I can't imagine what it would feel like if my kids were being bullied, threatened, or harassed at school. These days, you never know what could happen in school and sadly it's not as safe a place as it once was with the reality of school shootings taking place around the country.

I think I can side with teaching my future kids how to defend themselves and how to fight back, but at the same time stress the importance of values, letting others know what's going on (like teachers and other adults like myself) in hopes of a physical attack could be avoided. I'm just not sure how I would go about this. I think it would have to depend on the child too, and what his/her personality is like to begin with.

If you would teach them how to fight back, I'm curious to know how you would do this and how you would try to teach them that violence is otherwise not okay. I think it would have to be taught when they are a bit older so they could fully understand, but I'm not sure what age would be appropriate. I guess that would have to be on a case-by-case basis.

Thoughts?

2013 Goals and Life in Pics

Since I'm on a roll with procrastinating, I thought I'd FINALLY share some 2013 goals. I know we're rapidly creeping into April right now, but better late than never right?

I don't have specifics like increase my savings by $______ amount of money, because I don't have a job right now (hopefully I can save money in summer), and also because I'll be draining my savings to pay for school next year (post to come later on that). My 401k and roth IRAs are still sitting pretty, and I'm happy to see them grow even though I stopped contributing.

2013 Goals

For 2013, I want to focus on eating clean, getting active, stressing less, smiling more, and staying positive. All very cliche I know, but I absolutely need all of these things in my life right now. 2012 was an awesome year, with the latter half of it running me to the ground. I didn't have a social life, had lots of breakdowns, cried often, and spent almost every waking minute of each day studying and trying to be perfect. When this happens, I don't do my best because I tend to lose sight of other priorities. It reminded me that life is too short to grow grey hair early, and life is meant to be enjoyed. There's always light at the end of the tunnel...and someone, somewhere in the world definitely has it worse than me, always.

The hardest part of goal setting this year is that I'm doing it alone. The BF and I lived together for a long time. He's always been part of my everyday life, and we formed our own routines and traditions together. Now I'm meal planning for one, workouts for one, basically I lost a teammate and this team of one struggled to keep up on her own. Although I've made goals for myself in the past, the BF was always such a motivational push to help me keep going -- having him not physically around is such a drastic change. We're coping with long distance, and seeing him more than once every 2 months is definitely better these days.

I've decided that I'll be blogging more about daily life, health and fitness, food, and recipes because I really need to keep track and stay accountable. I also want to share my life with you guys more, because I've always been really passionate about health and fitness, and it's hard having a blog where you don't talk about your other passions once in awhile. By sharing my ups and downs with personal finance, I was able to move forward and achieve goals, and I'd like to do the same with other parts of my life. Hope you don't mind!

So far, this year has been awesome. I've changed my approach for the semester and I'm learning how to manage the heavy workload and volunteering sessions. I take zumba classes every Tuesday and Thursday with my mom, go running every other day, cook my own food with lots of veggies, and spent more time with friends and family. I also want to get back to blogging, because I love this community :)

So here's to starting off 2013 on the right foot :)

With that, I'll leave you with some pictures of what's been going on in my life!

not even half of my books, my back is sad

chicken, jalapenos, avocado = my fave

chicken, broccoli, green beans

what reunions with my dog look like

a favorite pasttime, cuddling with my dog

we get lots of free stuff in law school

gorgeous hike in San Diego

my sister and I are froyo diehards

in law school, you waste paper on research

the first thing you do when you get to San Diego is get margaritas in old town.

from our hike in SD

when in doubt, make omelettes

another favorite salad - chicken, guac, salsa, crushed tortilla chips

watching my bro's varsity volleyball game

vegan "chicken" thai salad with vegan "mac & cheese"

prepping veggies so they're easier to cook

smoothies are my fave

Expect more post like these in the future =) Pictures speak louder than words....I think?! If you have any recipes you think I should try, please let me know! I have a lot of snap peas, green beans, mushrooms, and asparagus in the fridge. Also if you have any juicing recipes, I'd love to hear them too - my mom got a new juicer that I'm itching to try out.

Happy Friday!

How Can Technology Help with Household Costs?

Hi everyone! I've been busy, and I have this super long memo due tonight at midnight...finished all the research but now I have 12 pages of writing to do. I was also up until 2am applying to summer internships. Now I'm up early reading for property...oh the joys of being a student again! Anyway, please enjoy this sponsored post about how technology can help with household costs, definitely useful with all of the options we have out there. Hope you are all having a great week! :)

Household technology has come on such a long way over recent years to the point where people can carry out all manner of tasks from their laptop, tablet or smartphone. 

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However, far from these devices simply being a medium for listening, watching or reading various forms of media, they also have the ability to save people a good deal of money each month.

There are countless tools, programmes and apps that can help curb your spending, allowing you to make significant inroads when it comes to a debt payment plan.

Obviously technology can't solve all your financial problems but it can lend a helping hand. Below are a number of tips on how to use various forms of technology to cut your expenditure each month.

Price comparison sites

Price comparison sites are invaluable when it comes to getting the best value for money in a wide range of areas.

If you are looking for essential products that can cost a good deal of money such as insurance then these sites should most definitely be bookmarked.

With firms such as MoneySupmarket and Confused.com, you can input your specific details and what you require. Then simply press enter and the website will come up with a list of quotes, from which you can select the one for you.

Just don't be complacent in thinking that the cheapest product is necessarily the best.

It's about ensuring you get everything you require for the best price; doing this can help alleviate the pressures of balancing the books.

Budgeting

In the old days, household budgeting would be done in a big notepad with pen and paper.

While for the traditionalists that still remains the best way, times have moved on and it's no longer ideal for keeping tabs on what you bring in and spend each month.

Instead, people are much better off using programmes on their laptop or computer such as Excel. Not only do these provide more flexibility in terms of alterations and changes, but the documents can also be backed up.

Hence, should you see a rise or fall in any form of income or expenditure, you are able to quickly alter it, giving you a much more accurate view of your finances.

From this clearer picture, you are then able to see what your biggest expenses are and where you could do with boosting your income.

Saving energy

Energy is one of the biggest drains on household finances, not helped by the recent price hikes by many of the major providers.

One of the best ways to cut the amount you spend on fuel and gas is by, firstly, ensuring you are on the cheapest tariff, but also be making sure you don't waste energy.

There are apps available that can turn off lights and other appliances when they are left idle, meaning you don't waste energy and run up higher bills than you need to.

Primarily, this should be used as a last resort for when you forget to turn appliances off, as you should always ensure you are savvy when it comes not leaving things turned on unnecessarily.

However, it's a handy tool for when it slips your mind and it can save you a good deal of money too.

Advice and research

Finally, surfing your tablets, smartphones and laptops can provide you with a vast amount of information when it comes to financial issues and saving money.

As well as obtaining debt advice from a company such as debtfreedirect.co.uk, the information superhighway is your one-stop shop for all sorts of facts, figures and guidance on improving your domestic finances.

The idea of taking on advice to reduce the chances of debt has rarely been more relevant, with a recent Office for National Statistics survey revealing the true extent to which people have struggled with debt during the recession.

It found that between 2008 and 2010, arguably the worst period of the recent downturn, the average household owed £3,200 on credit cards, overdrafts or loans.

What's more, Howard Archer, the chief economist at IHS Global Insight, told the Guardian it is likely to have gotten worse for many people since 2010.

"It seems reasonable to suspect that household debt has risen further since 2008-10, with people's purchasing power being squeezed by extended weak income growth and elevated inflation," he concluded.

The Herd Mentality

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I've been wanting to talk about something that's been on my mind for quite awhile now. You all hear about the "rat race" we're in right? If you've read Rich Dad, Poor Dad, you know what I mean. We're all in this rat race and just trying to get ahead, but to me I honestly think it's more like a herd effect, and I was recently hit with the herd mentality. Yep, that's what I'm coining it.

Prior to law school, I've always yearned to be different. I never wanted to follow the crowd. I wanted to do my own things, follow my own career path, and just be unique. For some reason, law school was turning me into someone else I didn't like, someone who was getting sucked into the herd mentality.

I've analyzed it a lot and had to pinch myself really hard (figuratively, but maybe I should have done it for real) just to get out of it, and I'm still trying to convince myself sometimes that I need not follow the herd to be successful. When I think about it, this way of thinking really applies itself to everything else, especially personal finance.

Let me explain...

I felt like I was just another sheep in the herd, but I'm now convinced that it's okay and possibly even better to be the dog (in the picture I posted above, it doesn't make sense if you don't look at that picture).

Last semester, everyone in my class section (roughly 80 students) all started at the same place. We learned the same subjects together, tried to keep up with each other, studied together, and just generally just meshed into one big group because we have all of our classes together. Like one big dysfunctional family. When one person would stress out, we'd all stress out. It was (is?) a nightmare.

This semester, we're starting fresh, and I'm realizing that I don't need to compare myself to others. I'm not going to all of the lunchtime meetings and after-school networking events. I'm doing what I believe is right for me, and really - this is what life is all about, being yourself and doing what works for you at the pace you feel most comfortable with. When the semester first started, everyone and their moms signed up and participated in a moot court competition. You get a week to write a brief and then move on to 4 rounds of oral arguments if you are selected. I went back and forth on participating. In the end, I decided not to because the only reason why I wanted to do it was because everyone else was doing it. Not so much a valid reason.

While a lot of people were stressing, losing sleep, missing classes, and avoiding homework, I got so much accomplished that better fit my needs and my career path:

• I was able to meet with my legal writing professor to edit my cover letters and resume and I applied to several summer internships.
• I had a mock interview with the public defender of our County and the tips I received were priceless, and he now remembers me as "the girl who thinks he looks like Rick from The Walking Dead," which he totally did! 
• I kept a steady pace of my readings and I was also able to secure 2 volunteering positions for this semester!
• The first volunteering position is something I am SO interested in -  relating to landlord/tenant law (is that a thing?) and it gives me the opportunity to practice my oral skills as well as working with translators. I'll be giving 2-hour long presentations at community workshops at local organizations focusing on tenants' rights. It's so me right?
• The other volunteering position is at an organization that helps the underprivileged community with legal services relating to civil rights, domestic violence, immigration issues, etc. 

I've always been into helping out the community and I can't think of a better way to get immersed into the law this semester. This is what I came to law school to do. I'm lucky that I got selected as only a handful of law students were able to get it. If I was doing moot court, I would probably not have even noticed these opportunities. I've already put these 2 positions on my resume and I think it will give me that competitive edge I need! As you can tell, I'm really excited and I am already less stressed out.

So as I started thinking this way about law school activities, I also applied it to career path and personal finance. 

You know what else? I can always do moot court next year. I am happy for those that did  moot court because it's something that they can put on their resume and they also gain valuable experience from it as well. It's all about priorities and what you want to do. You don't have to get stuck in the herd and have the mentality...for example, just because everyone else is saving for a down payment, you don't have to too. Just because everyone else is budgeting, you don't have to do it the same way. You don't have to use Mint.com to be on top of your finances (though I think it's a pretty sweet site).

Instead, think of a way to get out of it and to be yourself. I feel like the only way to really succeed and to flourish in whatever you do is to personalize it and tailor it to your personality, to your hobbies, your schedule, and your lifestyle :)

Have you gotten stuck in the herd mentality? In what ways? How did you get out of it?

Time to Buy New Shoes

I know I promised that my next post would be my 2013 goals but I'm honestly still thinking about them. I've also just started classes again yesterday and getting back into the groove with my new schedule, new and old classes, and settling back in again at home. I got all of my grades back finally, and I'm happy to say that I passed all of my classes! I'm not too disappointed with them, especially with the mandatory curve and all, but I take comfort in knowing that I tried my darned hardest and studied my butt off and I have zero regrets. This semester, I'll take into account everything that worked and learn from mistakes, plan early, and just enjoy myself more by stressing out less.

BF's New Job

Today I just really needed to blog about a life-changing event because it's something that I thought would never happen, or that I thought might happen in the future but definitely didn't think it would happen any time soon. The boyfriend and I have always been realists. We've prepared and expected for the worst. We know how much debt he has from student loans and we know how much I'm adding to that pile (and trust me, it's a lot). We save a lot, barely go out, barely eat out, don't travel (unless it's to see family close-by), and we just have a very frugal mindset. We're not unhappy though, it's just the lifestyle we choose to adopt because we've always shared a goal of being debt-free one day. Today, we were blessed with some amazing news.

He's going to get an almost 50% pay increase in salary for a job that he loves!

The whirlwind of events all started last Thursday when BF got a suspicious email from a hiring recruiter in the military (BF's not in the military btw). Apparently it was for a job he applied for a few weeks ago. We were apprehensive at first and actually thought it was spam mail. He ended up filling out a bunch of paperwork and then everything just happened so quickly. On Friday, the recruiter scheduled a phone interview with someone in Afghanistan, and on Monday he received salary information. Today he received an offer letter!

We honestly thought this would never happen to us, and I'm so shocked and excited and proud that he's accomplishing his dreams. He'll be getting back to cost estimating for National Security (military training and tracking systems and other stuff like that) and it just makes me really excited that he's happy and doing what he wants to do. This burden has been sitting on his shoulders for the past 5 years. Ever since he graduated he's struggled to find a job that he liked and that paid him even decently. He couldn't even move out of his parents house since the salary he was always making wasn't even enough to live off of with all of his student loans. He made the decision to stay at home and save as much as he could instead of moving out and spending all of his money on rent and putting more on credit cards just to get by.

I'm a firm believer in things happening for a reason. There were so many times when I listened to him and his struggles at work, all of the times he went unappreciated, treated badly, outcasted, treated like dirt by upper management, racially harassed, being forced into unethical situations (a huge reason why he left his last job was because he didn't want to be part of it). He's had such bad luck with his previous jobs and I thought he would never catch a break. There were lots of times when I saw him frustrated because he had to stay at his job for money reasons, because of the loans, and because he was tied down. This fierce passion to do better in life came from these experiences and I think he grew into a more humble and hard-working person because of it. He became more financially savvy by saving as much as he could because he wanted to own property even though he wasn't making a lot. He never bought expensive items, heck, he never shopped for himself. I think in the past 5 years he's only purchased 1 cheap suit, 5 pairs of pants at Wal-Mart, and basic necessities like underwear and socks.

The first thing he said when he got the offer letter was, "I can finally buy new shoes." He's been holding off on buying dress shoes for so long. I swear he's worn the same pair that he's had since high school, which was over 13 years ago haha! I still can't believe that this is all happening in such a bad economy, and when there are hardly any jobs available, especially for his industry and the specific job he was looking for that catered to his background. He's been rejected so many times within these past 5 years from several "dream jobs" but he finally found the job he's been looking and waiting for.

The job is located in San Diego so we'll still be doing long-distance, but I'm just honestly so happy for him. I can't remember the last time I saw him this happy, it affects me so much. He was just talking about how worried he was because his savings was running low. It just goes to show that you should never, ever give up on chasing your dreams...even when things seem like they are just getting worse. Oh, and always keep saving for a rainy day...you seriously never know when you'll need it. If the BF didn't have savings, he wouldn't have been able to quit his job a few months ago. He would have been stressed out and would have had to take the first job he could find, one not related to his career path or interests, and one that did not pay him for what he's worth.

He seriously inspires me and I hope his story inspired some of you!

2012 Wrap-Up and Goals Recap

It's that time again...can you believe it? It seems like just yesterday when I started blogging and did my 2010 recap, my 2011 recap and listed my 2012 goals.

It also shows just how unorganized I've been ever since I returned to school. I admit this blog has fallen off the wayside a bit, but yesterday I had the pleasure of meeting some of my favorite SoCal bloggers (Budget and the Beach, Nurse Frugal, Newlyweds on a Budget, and The Random Path) and realized that we all start our blogs for a reason, and most of the time it's to be held accountable, to stay organized, and for fun. We had a ton of fun just chatting about blogging and life. I was a bit nervous since I haven't met anyone online in real life before, but it felt like meeting ol' pals! I honestly feel like these are friends I'll have for a long time, and it's because of this blog! After meeting with these ladies, I want to continue strong into next year. 2013 will be the year that I will be trying to maintain more balance with it.

The evolution of the blog...

In 2010, I felt like this blog was created to help me learn how to budget, how to save, and how to be accountable.

In 2011, this blog helped me reach many savings goals, was an outlet for the ups and downs of condo shopping in a crazy market.

In 2012, this blog started to grow and I started focusing on stats, numbers, advertising, and guest posts. Halfway through the year, I stopped focusing on growth and numbers, and instead it served as an outlet for the law school application process as well as an outlet for the transition and beginning of my law school journey.

Looking back, I love being able to remember these moments and to share them all with such like-minded people. It's amazing to connect to people that offer unsolicited advice or just an ear to listen to what I have to say, so thank you for sticking around!

I'm not sure what will happen in 2013 but I'd like to get back to talking about my saving and spending habits, as well as general thoughts about school and something I've been thinking a lot about lately..my career path and future, and all of the debt I've acquired (and am still acquiring) through my student loans. So here's to a new year!

2012 Recap

So I pulled up my post from January 1st, 2012. It's crazy how much has changed in only a YEAR! I have to chuckle at some of these goals right now, because I wrote them during a time when I just submitted law school apps, and I was earning a steady paycheck at my full-time job. What I miss the most about working (aside from the paycheck) is that I had so much time at work to get organized, and to stay organized.

Being a full-time student again with zero time while the semester is going in full-speed, priorities shifted and goals fell off of the radar since they were replaced with new goals. Regardless, I'll still rehash these goals and definitely switch them up for my current life situation for 2013.

2012 Financial Goals Recap

1. Max out Roth IRA
Lol! It's kind of hard to max out a roth IRA when you don't have a job. I was planning to do this but I had to stop contributing to my roth as of August 2012. I used to automatically deposit $300 into it every month, so for 2012 I at least got $2,400 into that account.

2. $3,000 in Travel Fund.

My travel fund sits with ING and it currently sits at $1,025. Definitely nowhere near the $3,000 I hoped for, but I don't have any plans of traveling for leisure any time soon. I should have gone on a vacation before school started but it was so busy with work and other family trips.

3. Buy an investment property with 20-25% down.

So glad this one never came to fruition. We almost bought a condo in beautiful Rancho Bernarndo (northern SD), but we backed out due to some issues that would have costed us a lot of money in repairs and headaches in the future. I'm glad this didn't happen though, since BF would have needed to stay at his job to pay the mortgage. We knew that if I was going to go to school he would have to either a) get renters or b) pay the mortgage on his own. It was possible but not ideal, especially risky, since he didn't like his job or his supervisor. He quit a few months ago so it looks like things turned out for the better.

4. Rent out investment property so monthly rent covers monthly mortgage.

Great idea in theory, but at the same time I'm glad I'm not a landlord right now. I can't handle that!

5. Vacation in cash.

Lovely dreams I had huh? I don't see a vacay coming up any time soon, but maybe in a year or 2, I'll finally get to own up to this goal.

6. Open up some sort of interest savings accounts or investment accounts for my little brother & sister.

Fail. I will instead push my parents to do this. They're at the stage right now where the only gifts they want are material items like clothes, shoes, and games.

2012 Personal Goals Recap

1. Get healthy. 

Hmmm, not sure if I hit this goal this year, but I was definitely on track during the first half of the year. I was going to turbo kick classes consistently, and gymming it everyday during my lunch breaks. When school began the stress ate me alive and I didn't make it to the gym at all, but got back into it with a new gym membership in October. Now that I'm in SD for break, I'm back at my old gym which feel so nice, and I've been cooking a lot at home and eating out less. I guess I almost obtained this goal...would like to have more time to run more and of course to cut out sweets.

2. Get into law school. Whether it's this cycle or next cycle, 2012 will be the year I get this accomplished!

Probably the only goal I can safely say I accomplished this year, haha woohoo!

3. Go home as much as possible. I love my family and I hate living 8 hours away, but it's only a 1 hour plane ride away.

Oh wait, this one too. I live with the fambam again. It's been a rollercoaster ride but a fun one nonetheless. I'm lucky to have them.

4. Go on a vacation with the BF.

Wow, when I wrote these goals I must have been itching for a vacation. That didn't happen but this year was filled with lots of family trips with the BF so that's always fun. I shall count that as reaching this goal haha.

5. Read more. I didn't get to read as much this year but I just got back into reading again. I read fiction mostly because I like to get away when I read.

Oh man, really laughing at this goal. I sure did get to read more all right. Law school = read all day errrrrday. So I guess I accomplished that.

Lol, looks like I only completed 3.5ish personal goals this year. However, I'm glad the world didn't end, but at the same time, kinda sad it didn't since I have to pay back my student loans now. I also feel like I'm at a good place in my life right now, hopefully on the right track, and just pushing to keep going.

2012 was a a great year with lots of happenings:

• New beginnings - I moved back to my hometown and with my family again. It's so nice to be around them again, and to get closer to my siblings.
• I started law school in August, and what a whirlwind it's been. My life 360'd on me, in a good way of course.
• Finished finals even while I was sick, a superb accomplishment in my book.
• No big purchases really...my BF bought me a PC laptop and I gave him my old Macbook. He also bought me a new Samsung monitor for when I'm at home and studying (and skyping with him).
• Went to my sister's junior olympics in Ohio for the junior national volleyball championships back in July. That was fun!
• Went on a family trip with cousins to Disneyland in the summer instead of our annual camping trip.
• Had a family BBQ in Coronado with my family and BF's family before I moved...it was the first time our parents ever met. Can you believe that?!
• I became addicted to gel highlighters, post-its, and other office supplies.
• Black Ops 2 came out. Zombies is still my favorite game mode to play.
• I dyed my hair dark after being light brown/blondeish for many years. Yay!
• When I was working at my FT job, I really missed being around people and meeting new friends. 2012 delivered in that respect, and I gained so many new lifelong friends...from school and also from this blog!
• Celebrated 7 years with the bf. My grandma keeps asking when we'll get married but that won't happen until I graduate. I don't think I can handle wedding planning until then, but I'm excited to spend more years with the bf, he's a good guy and he's always been good to me.
• Celebrated my 25th birthday...writing my legal writing final paper. Honestly never thought this day would come...now I feel like I have so much to do before my next milestone of turning 30. Cheers to getting older.

I'll be back to post up my 2013 goals in a few days but for now let's all relish in the last 2 days of the year. Hope you all enjoy the new year safely with lots of friends, food, or family :)

How did you all do for 2012?