Almost 3 weeks ago, I was offered an interview for a position that would support my applications for dental school. It was a coincidence that the interview was on my birthday and I had hoped it would provide some luck for this birthday boy. And certainly enough, I got the job!

As my first full-time job coming out of college, I was fully devoted to it. Since the position would be an essential stepping stone towards my dream career, I’m not going to disappoint my boss and, most importantly, myself.

Honestly, the first few days of work were quite an overload on my body and mind. I was expected to learn everything from the previous employee in about one and a half days. I’ve always thought of myself as a quick learner so it wasn’t so bad. Also, 12-hours workdays were quite overwhelming. I return home ready to crash the bed. With the many responsibilities put on me, I believe I’ve become a valuable part of the office.

Everything has gotten to be routine for me at work and that makes it much easier. My boss has expressed much content with my performance and the great part is that I’m learning a lot. A boss that is easy to talk to and is willing to teach is very hard to come by nowadays. After 3 weeks, I am now helping to train others.

Ups

• Learning a lot.
• Stable source of income.
• Adds to my dental school applications.
• Flexibility in work hours.

Downs

• Less time for family and friends (especially after long days).
• Deprived attention for the blog.

Now that I’m somewhat acclimated to work, I should be able to make the most of the time that I do have. With income, I also should be saving for a large payment towards my college debt (first payment in December), which I expect to deviate from the set repayment plan.

Photo credit: Joe Mabel

I was watching an episode of Leverage the other day regarding a Ponzi scheme and there was scene where a line was quite thought-provoking. Nate (Timothy Hutton) tells his team that people invest in these scams because of the so-called “guaranteed” higher-than-average returns. He says that people do not fear that they will lose their money, but that they fear they will miss out on the opportunity to strike it rich.

What he said is indeed very true. When people buy that lottery ticket, purchase that stock, invest in a fund, participate in MLM or order those “Secrets to Millions” informational kits from TV, their primary focus is placed on the potential profits that those things can bring.

We’ve all heard of how there is a higher possibility of being killed by a number of things while making that 5 minute trip to buy that lotto ticket. We’ve all seen those ads about how buying this or that stock is a guaranteed to increase in share price and find that it takes a dive the moment you buy it. And, we’ve seen the many programs out there that portray people raking in $20,000 in 1 week from following “their simple steps” and end up with different results when you buy it for yourself.

Think A Little

Taking a few seconds to stop and wonder might help save yourself some grief when your hard earned money disappears. While walking by a store and I see the jackpot of $200 million, putting $5 for chance to have it doesn’t seem like such a nonsensical thing to do until I find that I’ve put in about $100 per month for that chance to get rich. Then again, not buying a ticket means I have no chance at hitting the lotto. Just make sure that it doesn’t get out of hand.

When dealing with the stock market, nothing is guaranteed. A promised annual ROI of 20% from an investment fund is bogus. Let past performances with research and analysis prove to you that there is something worth investing in.

The validity of methods of making thousands per week can easily shot down by asking myself one question:

If these discs can show me how to make up to $100,000 a week without doing anything, why are you selling me this idea when you can make millions yourself (and if you were a smart businessman, you should keep this to yourself)? And for only $19.99?

If I knew the secret to being rich in one year’s time, I certainly wouldn’t reveal it to anyone (though I don’t mind sharing the wealth).

Who isn’t looking for the fastest route to millions?

These dreams of a luxurious care-free lifestyle overshadow the conscious mind telling them that it is too good to be true. A glimpse of hope is all that is needed to become trapped in a continuous cycle that keeps them paying for the possibility that they make a lot of money.

Photo credit: Lisa Brewster

Welcome to the Carnival of Twenty Something Finances: The Personal Finance Communities Edition!

Ever since I started this blog on personal finance, I’ve been introduced to many of the personal finance communities on the Internet. I am lucky to have found them in my low 20’s. They served not only to grow Realm of Prosperity but they have been sources of education, information, and inspiration for my own financial goals. What is so great is that you will never come into contact with someone who isn’t willing to help and teach you when dealing with personal finance matters.

Personal finance communities are places where people from all walks of life help each other solve their financial problems and if a young adult can learn the money lessons of a wiser, more prosperous individual, that young adult is a step ahead of the many other young adults. That is why I chose to share some of these communities that I’m a part of because they’ve been of value to me.

David presents Balance Transfer for Life Offers posted at Credit Card Offers IQ.

The Dough Roller presents Freecreditreport.com vesus myFICO.com: Do you know the difference? posted at The Dough Roller, saying, “Review of freecreditreport.com versus myfico.com”

Ben presents Actively Managed Exchange Traded Funds posted at Money Smart Life.

Matt Jabs presents Grocery Hacks – How To Save Money on Groceries posted at Debt Free Adventure!.

Patrick @ Cash Money Life presents Is Your Car Eligible for the Cash For Clunkers Program? posted at Cash Money Life.

Steve Patterson presents Cisco Systems (CSCO) No Longer a Growth Stock posted at FastSwings.com – Steve Patterson.

Silicon Valley Blogger presents What Are The Best Credit Card Rewards Programs? posted at The Digerati Life, saying, “Thanks!”

The Smarter Wallet presents YNAB (You Need A Budget) Review, Financial Budgeting Software posted at The Smarter Wallet.

Banker Saver presents TARP Bailout Funds: How Have Banks Used Taxpayers’ Money? posted at Banker Saver.

Investing Toolkit presents Why Should I Start Investing? posted at Investing Toolkit.

Jae Jun presents Investment Spreadsheet: How to Use Tutorial | Old School Value posted at Old School Value.

Baker presents The Power of Resourcefulness: A Guide to Peeing in the Shower posted at Man Vs. Debt.

Stock Trading Brokers presents Investing Basics – Work With an Online Broker For The Right Reasons posted at Stock Trading Brokers.

d. ninja presents Get your grubby hands off my money posted at Punch Debt In The Face.

Jeff Rose presents Changing Careers? How To Become a Certified Financial Planner posted at Jeff Rose.

BrandonLaughridge presents Credit Scores: How Important Are They? posted at Mortgage Loan Place Blog.

Tom Tessin presents What to Look for in Student Loans posted at FCC Student Blog.

Manshu presents Green ETF List posted at OneMint.

Deposit Accounts presents Maintain Your IRA With an Annual Checkup posted at Deposit Accounts.

Len Penzo presents Personal Finance Decisions: The Good, the Bad, and the Ugly posted at Len Penzo . Com.

CreditCardAssist.com presents Using Your Credit Card Online: The Risks and Benefits posted at Credit Cards Blog | CreditCardAssist.com.

Tyler Tervooren presents Improve Your Water Heater Efficiency And Save $125 A Year posted at Frugally Green.

Barbara Williams presents 100 Productive Ways to Spend Your Summer Vacation posted at Online Courses.org.

oneadvice presents What to do when your Credit Card Debt is Unaffordable posted at One Advice.

James Williamson presents Instant Approval Unsecured Credit Cards posted at Spare Dollars.

Jon presents Lessons Learned…From Living in My Parents’ Basement posted at The Wandering Generalist.

Dan at Everydayfinance presents Child Costs 2008-2009: $221,000 thru 17 (Before College Costs!) posted at Everyday Finance.

Darwin presents How do Stock Options Work? Trade Calls and Puts – Part 1 posted at Darwin’s Finance.

Lazy Man and Money presents How I Saved Hundreds in a Half Hour posted at Lazy Man and Money.

Rohit presents Dump your savings account..! posted at eMoneyLog.

Pinyo presents 33 College Budget Calculators for Students: Budget Now to Reduce Your Debt posted at Moolanomy.

ChristianPF presents Is the iPhone coming to verizon? posted at Money in the Bible | Christian Personal Finance Blog.

MoneyNing presents Rental Property vs REIT posted at Money Ning.

Bouch presents My Wife’s Spending is out of Control posted at MoneyStance – Money Making Opportunity Reviews.

Raj Patel presents Consumer Bankruptcy Peak… Debt and Employment Related posted at DebtGoal.

FIRE Getters presents New Money Rules for Financial Security – #4. Handling Debt posted at FIRE Finance.

J. Savings presents Interview w/ Ramit Sethi: NY Times Best Seller & Blogger! posted at Budgets are Sexy.

PT presents Details About the $8,000 First-Time Home Buyer Tax Credit posted at Prime Time Money.

That concludes this edition. Submit your blog article to the next edition of twenty something finances using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

This method of debt reduction is not some extravagant new idea nor is it miracle work. It employs the same tactics that businesses use to make you more likely to spend money.

The essence of how it works is that it builds the psychological momentum and confidence that many consumers lack when they are reluctant to repay their loans. This method of debt repayment mimics the process that a customer undergoes to buy a product often seen in an infomercial.

The common strategies are:

• Breaking into multiple payments. You always hear, “Get this for only 4 easy payments of $19.99″. They don’t want you to see what you are actually paying. The whole point is tricking you into not knowing how much you’ll end up spending. The total payment of $80 plus taxes and shipping will not show up anywhere in your bills.
• Create the illusion of a smaller amount through the use of many “9”s. Seeing a smaller first digit just makes the number look smaller. The difference between $20.01 and $19.99 may only be two pennies, but people feel much more comfortable with paying $19.99, psychologically.
• Create the illusion of a smaller amount through the use of fewer digits. This is very much like the tactic above. It works on the premise that fewer numbers means less money. Once again, it makes a customer feel that paying $999 a less overwhelming than $1,000.

The Infomercial Copycat

1. Take the balance of your current credit card statement and divide it by the maximum number of online payments per billing cycle that is allowed by your credit card company.
2. Round up to the nearest $10 if your statement balance is less than $400. Round up to the nearest $100 if your statement balance is $400 or more.
3. If your mini-payment is $100 or less, subtract $0.01 from that amount. If your mini-payment is more than $100, subtract $1 from that amount.
4. Divide the calendar month by the number of maximum payments per billing cycle. This gives you the days on which you will make the mini-payments.
5. Set up reminders and make the payments as scheduled.

Here is an example of how the Infomercial Copycat should look like:

Why It Works

Besides being a financial burden, debt also has a major psychological impact. The Infomercial Copycat changes nothing about your financial situation but it will do wonders for your morale. You will feel like debt has less of a strangle on you. When you do something and it doesn’t feel too bad after you do it, you are less afraid of it the next time. This is the drive and momentum that this method is trying to instill.

If you look once again at the image at the top of this article, it is more comforting to see your debt as four parts of $49.99 each than a whole $200. If you agree with the previous statement, then you should definitely give the Infomercial Copycat method of debt reduction a try. I know it will work because I use it!

I suggest everyone to use this method except for those who are truly unable to make the mini-payments as scheduled. Because it requires that you stick to the schedule and not miss a mini-payment after the first one. It is, without a doubt, a more tedious method of debt repayment but you will feel the relief when that bill is paid.

Also, the Infomercial Copycat method works in tandem with other popular debt reduction techniques such as the Debt Snowball and the Debt Avalanche.

So, no matter who you are, as long as you have credit card debt, you can give it a try. Let me know whether or not it has worked for you.