I feel sorry for pennies. They’re always getting tossed aside and talked down to. Unfortunately, with good reason; pennies just aren’t a viable form of currency anymore. Watch the video for a compelling argument as to why the government should abolish pennies (and how our own military no longer uses pennies).

It’s been swell, little penny! We’ll miss you.

Happy New Year!

I spent the morning contemplating my 2011 financial year in review and deciding what I want to accomplish in 2012. Even though I’m pleased with my progress this past year, I realize now that I set my goals too high and became discouraged along the way, so I decided to do things a little differently this year. First, I wanted to establish some golden rules to help guide me through 2012. Then I chose three big (but attainable) financial goals to work towards. I’m hoping this big picture approach will help me be more successful in achieving my ultimate goal of being debt-free.

2012 Golden Rules

• Absolutely, positively, no credit card usage allowed.
• Any and all tax returns, bonuses, or other windfalls (wishful thinking?) are to be applied towards credit card debt.
• Any money made from blogging will be deposited into the emergency fund.
• No new purses. No exceptions.

2012 Financial Goals

• Pay computer in full. (I broke down and bought an iMac after Christmas. Part necessity, part impulse.)
• Double emergency fund, bringing total to $6,000.
• Reduce credit card debt by 25%.

Do you have any financial goals for 2012? Any advice for me? Please share!

Real Simple has a great article this month (I always love their money features – so straightforward and easy to put into practice) about cutbacks that have saved people the most money but have changed their lives the least, which got me thinking about how I prioritize expenses and what I’ve whittled down over the years.

Here’s what I came up with off the top of my head:

Things I’ve cutback and don’t miss:

• I haven’t paid for cable since 2002 thanks to a mix of online streaming and apartment provided basic channels.
• I started using my cell phone as my primary line around 2000 and cut the landline a few months after.
• I do go in spurts, but I’ve largely stopped coloring my hair. Talk to me again when the grays really start coming in.
• Tanning is bad for your skin and your checkbook. I’ve been embracing my pale legs since 2005.
• Since moving to Texas, I’ve replaced the using the furnace with using an electric blanket. My wiener dog also approves.
• Now that I’m only commuting 15-20 minutes to work, I canceled XM radio. It was a luxury that I enjoyed, but just wasn’t necessary anymore.

Things I tried to cutback but couldn’t live without:

• When I was fresh out of grad school I went without home internet for two years. TWO YEARS! Granted it was more of a necessity than a choice, but as soon as I was making enough money I had it reinstalled and I can’t imagine living without it again.
• Manicures and pedicures are so relaxing and they do a much better job than I could.
• Fresh bread and organic veggies. If I’m able, I always opt for both.

Things I could probably cutback but haven’t made the plunge:

• I love going to the movies alone on a Sunday afternoon, and I usually go once or twice a month at $20 a pop (our theater has table service).
• I have plenty of tea-towels and dishtowels, yet I still have a bad habit of using paper towels to cleanup. (Though I do use dishtowels to wipe my hands.)
• If I wasn’t such a chicken (I live alone) I’d turn off the AC and open the windows at night (it’s October and still 85+ degrees in Austin during the day).

Have you made any cutbacks that have made a big difference in checkbook but not so much in your daily life? If you were going to start making cutbacks, what would be the first thing to go?

Oh boy. Those financial goals I laid out in January are really coming back to haunt me. In April, I gave an optimistic Q1 update. In July, the Q2 update was peppered with a reality check. And here we are headed into the home stretch.

Just like the previous quarters, they’ll be some adjustments going forward. The divorce is almost final, finances are 90% separated, and October is the first month that I’m back to a single paycheck (and an ex-husband that hopefully fulfills his commitment to helping me pay down our joint debt).

Here’s what I had planned for July, August, and September:

• Pay car loan (Corolla) in full
• Pay Chase (1 of 3) in full
• Continue regular contributions to 401k
• Hold emergency fund steady at $2,000
• Begin separating finances and saving independently

Here’s what I accomplished.

• Car loan ( Corolla) paid in full
• Maximized 401k contributions (4% annually with company matching)
• Increased emergency fund to $3,000
• Finances 90% separated

Things have definitely improved on several fronts, but there are still some big goals left to tackle in Q4:

• Pay Chase (1 of 3) down by 50%
• Continue regular contributions to 401k
• Increase emergency fund to $4,000

And if I happen to win the lottery before the end of the year:

• Max out year Roth IRA contribution
• Pay Chase (1 of 3) in full

So, how have you done reaching your financial goals this year? Do you have any goals for the rest of the year?

True to my words, I did not leave the house this holiday weekend (besides a quick trip to the grocery down the street to get some fresh fruit for my new juicer).

• $165 Sallie Mae
• $490 car payment – Prius
• $132 utilities
• $47 internet
• $30 haircut
• $935 rent
• $400 Chase
• $85 Sprint
• $162 Costco
• $24 gas
• $26 Petsmart
• $259 county clerk – divorce paperwork
• $100 ING – him
• $250 ING – me

How was your holiday?

So, I laid out our financial goals in January. In April, I gave a Q1 update. Now it’s time to see how we did in Q2.

Just like last quarter, they’ll be some adjustments going forward. The biggest stems from our impending divorce and how we’re going to handle paying off our debt and separating finances. It’s not fun, but it’s (dare I say) friendly.

Here’s what we had planned for April, May, and June:

• Increase emergency fund to $4,000
• Pay Chase (1 of 3) in full
• Begin regular contributions to Roth IRA

Here’s what we accomplished:

• Emergency fund steady at $2,000
• Began making regular contributions to 401k account

Not exactly what we had in mind, but it’s better than a sharp stick in the eye. Here’s the plan for the rest of the year:

2011 Q3 Goals

• Pay car loan (Corolla) in full
• Pay Chase (1 of 3) in full
• Continue regular contributions to 401k
• Hold emergency fund steady at $2,000
• Begin separating finances and saving independently

2011 Q4 Goals

• Pay Chase (2 of 3) in full
• Continue regular contributions to 401k
• Continue saving independently

And if I happen to become independently wealthy before the end of the year:

• Max out year Roth IRA contribution
• Pay Chase (3 of 3) in full

So, how have you done reaching your financial goals this year? Do you have any goals for the rest of the year?

Have a few seconds? I’d love your vote in the RetailMeNot BlogHer giveaway!

My trip to BlogHer has been booked for months, but I’d be positively giddy if I could put some of the money I’ve saved for my trip ($20 a week for the last 10 months!)  towards some nasty credit card bills and winning a ticket would do just that!

All you have to do is click over to RetailMeNot, check my entry, and click vote! Entries appear randomly on the page, so here’s what you’re looking for…

Did I mention you’re looking especially thrifty lately?

Thanks for your vote!