This post is from new staff writer Sierra Black. Sierra has provided several great guest posts over the last few months, so I asked her to come aboard as a semi-regular staff writer. Good thing, too. I’m swamped with final book preparations, so my post for this morning wasn’t ready to go! Sierra writes about frugality, sustainable living, and getting her kids to eat kale at Childwild.com.

The most important trick to managing your finances — and maybe the hardest — is just getting started. My household finances were like an impenetrable jungle of budget formulas and investment accounts and bank policies and tax codes; not knowing where to start kept me broke and confused for years.

There are as many systems of thought for tackling spending as there are people managing their finances. Some people are avid fans of budgets while others swear they never work. Some will tell you to save up an emergency fund first while others zero in on debt reduction at all costs.

Finding a starting point can be a challenge. The trick is to begin where you are: Find something you’re already good at and apply it to your financial life.

Getting started
To find your path through the financial forest, look for something that is:

• A small step. You’re not going to completely remake your financial life in one day. Choose something bite-sized that you can do with relatively little effort or expense.
• Self-contained. “Get out of debt” isn’t a first step to managing your money. Tracking your spending can be. Calculating your net worth might be. Reading a personal finance book or taking a community education class are good choices. Choose a single step that will help you work toward a larger goal.
• Comfortable. The skill you use to make the first step should be a familiar one. Now’s not the time to learn how to create an Excel spreadsheet or read a stock ticker. Start with what you already know.
• Pleasurable. Ideally, start with something you enjoy doing. You’re more likely to persist with your new financial strategy if you’re doing something you enjoy and are good at.

For me, the first useful step after years of false starts was joining a Your Money or Your Life study group. I’m a big nerd at heart. Sitting in a class taking notes on a textbook and doing homework was something I knew how to do well. Using those skills to do a class about managing my personal finances let me get a grip on the information in a way no other format had.

By starting with what I already knew, I was able to sidestep my fear about money. Those voices in my head that told me I wasn’t able to understand my finances and I’d never be any good at it fell silent when I put my “student brain” in gear. I basically tricked myself into learning how to manage my finances by focusing on a skill set I had long mastered: being a good student.

Learning new skills
Once you’ve started down the path and are making some progress, you’ll want to stretch and learn new skills. The new skills you’re reaching for should:

• Build on what you know and are doing well. Once you get into the flow of it, it will be easier to see what new skills you’ll need to learn. Then you can build on what you’re doing, instead of starting from scratch with a brand-new skillset.
• Apply directly to the work you’re doing. Don’t distract yourself learning to make that Excel spreadsheet if it’s not going to solve a problem for you. Stay on task and pick up the knowledge you need to reach your goals.
• Be steady and repeatable. At this stage of the game, do something small, slow and steady that you can keep doing over time. Focus your energy on the daily habits that will help you reach your goals. That kind of personal change is powerful stuff.

For me, the new skills that fostered personal change came at the end of the YMoYL group, when I was out on my own doing this stuff in the boring, workaday world. There was no teacher to show off for anymore. I just had to do it.

The new skill I picked up was the relatively basic one of tracking my finances. I’d tried it many times and floundered. This time it stuck, because I was building off of what I’d learned in the class. I started a cash notebook, using the same type of small pocket notebook I’d carried for years to jot down creative ideas.

Things started going pretty well for me, financially. My money was getting organized. I was saving more, spending less, and paying down our debts. So far so good. I wondered what else I could be doing with the new tricks I’d learned. Then things got really exciting.

Cross-training your skills
Once you’ve mastered your new money skills, you can apply them to other areas of your life. I was never able to keep a daily record of activities before I began tracking every cent that passed through my household. Now I know how to do it.

Since mastering that skill, I’ve used the same tracking system to keep a log of freelance writing submissions and contracts. That’s been a huge boon to my career. I’ve also used it to keep a food journal that helped me radically change my diet. I am now starting an exercise log using the same set of skills.

No matter what you want to change about your financial life, you already have some of the tools you’ll need to do it. This is true whether you’re staring down a mountain of debt or starting to pile up some investments.

Look around at your life now: What’s working well? What are you really good at? How can you apply that to the financial problems you’re trying to solve? Success breeds success: Beginning with what you know lets you start by succeeding, and makes it easier to continue doing so.

For nearly a decade, I lived without a personal credit card. In 1998, I destroyed all my cards and canceled my accounts in a last-ditch effort to curb my compulsive spending. It worked (sort of), and it wasn’t until 2007 that I finally felt like I was responsible enough to use credit wisely without going into debt. (And so far, it’s been smooth sailing.)

What was it like without credit? Surprisingly easy, actually. Though a lot of folks will tell you that it’s impossible to rent cars or get a hotel room without a credit card, that’s just not so. A debit card lets you do all of these things, too. (Though, to be fair, companies will often put “holds” of several hundred dollars on a debit card when you rent cars or stay in hotels.)

To be honest, I didn’t miss having a credit card when I was living without one. I never encountered a situation where a credit card was required. Not once.

Writing in this morning’s USA Today, Sandra Block says that more and more consumers are saying “no” to credit cards:

In a country where the average consumer owns five credit cards, [folks without credit cards] may seem somewhat quaint, like an Amish farmer who drives a horse-drawn buggy. But proponents of a no-credit-card lifestyle say there’s nothing old-fashioned about their choices. And they’re convinced that their numbers will grow as consumers become increasingly disenchanted with credit card industry practices.

The author points out that credit card usage is slowing rapidly. National credit card debt fell by nearly 20% in November; new credit card accounts are down almost 50% from a year ago; and even folks who do use credit (73% of Americans, according to the Federal Reserve) are using credit less often.

Block’s article profiles several Americans who have decided to declare: “No credit needed!” Among them:

• Emily Maddox (24 years old), who has never had a credit card and has no plans to get one. They make her nervous.
• Dann Zinke (22), who is saving for college. He thinks credit cards are a hassle.
• Our very own GRS staff writer, Adam Baker (25), who opts to live without credit cards because it’s easier to track spending and helps him live a simpler lifestyle.
• Luis Rosas-Guyon (37), who finds that since he gave up credit cards ten yeas ago, his life is less stressful.
• Tim McFarlin (34), who ditched credit cards because he thinks the industry’s practices are unfair to consumers.

There are tons of different reasons to live without credit cards. (For my book, I interviewed three different folks who live by the “no credit needed” motto, and each had a different motivation.) The policy has some drawbacks — credit cards do offer consumer protection and other benefits, and they help you build your credit score — but I know from first-hand experience that living without them is a perfectly valid choice. It’s not only possible, but can be profitable as well.

How many of you live without credit or have done so in the past? I know from past conversations that there are some die-hard credit-card users around here (and these are folks who use them wisely, not irresponsibly), and there are also some die-hard “no credit needed” folks. I think both camps have merit, and the important thing, as always, is to do what works for you.

[USA Today: More consumers just say no to credit cards]

Welcome to the 243rd Carnival of Personal Finance!

What in the world does that mean? Well, a blog carnival is a weekly round-up of articles on a particular subject (in this case, money). The carnival moves from blog to blog, and gives readers a chance to find new writers they may enjoy.

It’s been over two years since Get Rich Slowly last hosted a carnival (it takes many, many hours to put this together), but I wanted to do one for old time’s sake. Besides, it’s a great way to support up-and-coming financial bloggers. I found several great new money blogs while looking through the submissions this week.

So how does this carnival work? I received submissions from 72 other personal-finance blogs. Yes, I read every one of these articles. Yes, it took forever. I’ve cut out the worst of the submissions, as well as any that don’t apply to personal finance.(Come on, folks: “the economic link between China and Canada” has nothing to do with the day-to-day financial life of the average person.) The 61 articles that remain are included in this carnival.

I’ve organized the articles by topic. The categories below are listed in alphabetical order — except for Relationships, which I bumped to the front in honor of Valentine’s Day! Within each topic, I’ve ranked the articles in order of how much I liked them. (So, the first article in the investing category was my favorite investing article this week.) And if I really liked an article, I marked it with a happy star: . If you’re looking for just the best, skim through and find the starred posts.

Which of these articles is your favorite?

Relationships
Mr. Cheap at Four Pillars has a mind-boggling look at two views on the economics of dating. He explains how a man he knows literally keeps score of how much he spends on the women he dates; and how a woman he knows who tries to get men to spend as much as possible on her. This is “personal” finance in the true sense of the term.

Ray from Financial Highway, whose site slows my browser to a crawl, has a look at frugal Valentine’s Day gift ideas.

Jason at One Money Design also has some inexpensive Valentine’s Day ideas. (Although, I don’t know: Pizza can be romantic? Really?)

Joe from Personal Finance by the Book has a short look at Love and Money, just in time for Valentine’s Day!

Budgeting
Dough Roller has a great article about improving your finances by using an overall financial goal. We have so many financial goals, many of which won’t be met for years or decades, that it can be easy to get discouraged by our progress. Borrowing an idea from David at MoneyNing, DR says that instead of focusing on the future, we should strive to simply do a little better every month. Doubleplusgood.

Darwin at Darwin’s Finance wonders, “How much could you reduce your budget if you were laid off?” Running the numbers on his own life, Darwin finds he could save over $1,000 per month if he had to. As you know from my own experience, I too was able to save $1,000/month when I cut my spending and paid off my debts. I wonder how many other folks could do this if they had to…

At the Canadian Finance Blog, Tom urges readers to control spending with a budget. It’s basic stuff, but it’s important.

Anastasia from Living on a Budget is a 36-year-old Russian woman living in London. This week, she has a short quiz to help you figure out which budget personality you are. (I scored a 55, by the way.)

(more…)

Thomas wrote in on Monday to share a comic strip related to our discussion last week about whether renting makes sense:

Click on image to open a larger version in a new window.

Ah, Dinosaur Comics — you gotta love them.

As a reminder, I’m not opposed to owning a home. I own one myself and have no plans to move. But my recent research persuaded me that renting isn’t as bad as it’s been made out to be. Both renting and owning can be good choices; it just depends on your situation. (And how many dinosaurs you have roaming the neighborhood.)

This guest post from Lizzie is part of a new feature here at Get Rich Slowly. Every Sunday will include a reader story (in the new “reader stories” category). Some will be general “how I did X” stories, and others will be examples of how a GRS reader achieved financial success.

Confession time: I read Get Rich Slowly on a daily basis. Phew, that was easier than I thought! Two years ago the major confession would have been the balance on my credit cards. I found this blog about the time I was just starting my own personal finance journey. Like many new college grads, I was in major credit card debt with a salary that barely covered rent and food — not that I ever really tried living within its confines.

Before I paid off my credit cards, I worried needlessly about things that were out of my control. Oddly, they were not all related to money. I worried that my dad would have a heart attack (he’s in fine health). I worried that my bus would get me to work late (never happened). But the big worry was that people would learn how much debt I was in and think I was living a lie (which I was).

The wakeup my 23-year old self needed was realizing how much I disliked my current job. I was terrified of leaving, couldn’t imagine staying and felt stuck. Looking back, it’s easy to say the rest is history after that moment, but every single day of paying off my debt was a challenge. I needed drastic action in order to change the course of my financial life, and here’s what I did:

1. I moved in with Mom and Dad. This was weird, embarrassing and uncomfortable at first. But I love my parents dearly and we learned to cohabitate in a way that didn’t make me feel 16 again. I spent 15 months saving on rent to pay off my credit cards.
2. I took a high-paying administrative job. It’s not like I dreamed of graduating college to become an assistant, but I found a corporate assistant position (that did not require I transport kids, cook diner or manage a household for someone else) and now I get all the same gold-plated benefits as my bosses.
3. I make a budget. I don’t do anything fancy. I prefer to use a post-it note and map out my spending plan for each of the next four weeks. Weekly budgeting is key for me since I’m paid every Friday.
4. I use cash as often as possible. I do my best to keep spending money in cash form, a popular technique for those trying to spend less. It “hurts more” to use paper money than plastic debit or credit cards.

Now that I’m on stable footing again, I’ve resumed my life as a normal 20-something. I moved to an apartment that I share with two roommates. Together we can afford more apartment that anyone could separately and it works. I have let credit back in, by using my Banana Republic card in a way that maximizes my reward potential and lowers the cost of my work clothes. I don’t worry about my financial future anymore because I know I’ve learned some very powerful lessons.

The best part of paying off debt is that I can dream again. This fall I applied to graduate school. Next I’ll be starting a side business based on my administrative skills. Most importantly, I’ll continue to read Get Rich Slowly because I like being part of a community of people constantly working to better themselves!

Reminder: This is a story from one of your fellow readers. Please be nice. After nearly a decade of blogging, I have a thick skin, but it can be scary to put your story out in public for the first time. Remember that this guest author isn’t a professional writer, and is just learning about money like you are.

This post is from GRS staff writer April Dykman.

We all know that cooking meals at home can save money. For some (like me), it’s a lot of fun, too, but it’s easy to get in a rut — which is where I found myself last year.

Brown rice was my go-to side dish, but there are only so many ways to cook the stuff before your taste buds get bored. That’s when I discovered a whole new world of grains that got me excited to cook again, many of which are now kitchen staples. If you’re ready for something new, try out these under-appreciated grains, each with a distinct texture and flavor.

Barley
Before combat, Roman gladiators ate barley, which was believed to give great strength and stamina. Non-gladiators can just enjoy it for its rich, nut-like flavor and health benefits. Barley is a good source of fiber, selenium, phosphorus, copper, and manganese.

Barley is often thrown into a beef stew, but it is certainly worthy to be a dish all on its own. Try Barley Stew with Leeks, Mushrooms, and Greens or Barley Salad.

Kasha
Kasha is roasted whole-grain buckwheat or buckwheat oats and is commonly eaten in Eastern Europe (though in Slavic countries, the word kasha refers to porridge in general). Kasha is close to wheat in its nutrition content, though it’s gluten-free, and is high in protein, B vitamins, phosphorus, potassium, iron, and calcium.

Kasha is cooked the same way as rice, and it’s just as versatile. For a couple of ideas, try Wild Mushroom and Onion Kasha or Kasha with Browned Onions and Walnuts.

Millet
In the US, millet is most often recognized as the main ingredient in bird seed. But millet isn’t just for the birds; it’s a staple grain in Africa, India, and Asia.

Millet is high in protein—1/2 cup of cooked millet provides 4.2 grams. It is also rich in niacin, B6, calcium, iron, potassium, magnesium, and zinc. Like kasha, millet is a good option for those with gluten allergies.

To start cooking with millet, try out Curried Millet, Shiitake, and Corn Salad Restey or keep it simple with Hot Millet Cereal.

Quinoa
Quinoa (pronounced keen-wa) isn’t actually a grain, but I had to include it anyway, and I’ve saved my favorite for last. While it is commonly thought of as a grain, it’s more closely related to leafy greens, such as spinach and chard. Quinoa, however, is grown for its seeds, not its greens. Quinoa is a 5,000-year-old crop that was a diet staple for the Andean Incas, who referred to it as “chisaya mama,” or “mother of all grains.” It has a light, soft texture and a delicately nutty flavor when cooked.

Quinoa is full of nutitional value, containing all of the essential amino acids and more protein than grains. It is a good source of dietary fiber, magnesium, phosphorus, calcium, iron, vitamin E and several B vitamins, and omega-3 fatty acids. Quinoa also is another gluten-free option.

One of my favorite recipes for quinoa comes from La Tartine Gourmande, a gorgeous food blog by Béatrice Peltre. (And by gorgeous, I mean that if it was possible to live inside a blog, I’d live in hers.) Béatrice was kind enough to provide the beautiful photos in this article and to let me share her black quinoa salad recipe on GRS. So, to get you started on some culinary experimentation, here is Béatrice’s quinoa recipe. Feel free to experiment and make it your own!

Note: Most quinoa comes pre-rinsed to remove the saponin, which is a natural, but bitter, resin-like coating. It’s a good idea to give it an extra rinse in cold water before cooking it, as recommended in this recipe.