Need advice about how to handle your personal finances? Whether the struggle is saving for retirement, organizing your bank files, talking about money responsibility with your spouse or loved one, Post personal finance columnist Michelle Singletary offers her advice and answers your tough questions.

The transcript follows.

Read Michelle's latest columns, check out her Color of Money Book Club selection archive or sign up for her weekly e-mail newsletter.

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Michelle Singletary: Hello everyone, thanks for joining me today. I'll try to get to as many questions as possible.

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Washington, D.C.: Hi Michelle--You've probably answered this before, but I'm looking to set up an emergency fund, as you suggest. I'm trying to decide between a high interest savings account and a money market fund, but am not sure what I should take into account to do so. Any advice? Thanks!

Michelle Singletary: Would love to address this again. With such an account just look out for any monthly fee. Otherwise, you can focus on finding one with the best interest rate. You may try an online-only financial institution such as ING. I'm not endorsing ING, just mentioning it as one possible place to check for higher rates. You might want to search on www.bankrate.com.

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Bowie, Md.: Dear Michelle, Tomorrow I'm going to my second interview for a my dream job at my dream organization. The only hitch is that I'll have to take a pay cut of about 20 percent, since I'll be moving to the non-profit sector from the private sector.

Do you have any tips or links for people in my situation? Is this just a dumb move (I'm married, very financially stable, 29, and a homeowner)? I will love this job, and we'll still be able to pay the bills and save. We just won't be saving as much as before. Should I try to negotiate a reduced work week and get a second job? Should I just aim for the very top of their salary range and make do? My husband supports whatever decision I make. What's your honest advice?

Michelle Singletary: First, glad to know your "boo" suports you on this. That's huge and shouldn't be overlooked. And if it were me I would definitely try to negotiate the best salary. But you know what, life is tough and you should work at a job you enjoy even if the money is 20 percent less than what you are used to. Good for you for choosing to serve via a nonprofit. Does this mean you have to pinch those pennies a littler harder. Yup. But the price of price is worth it in my book.

Here's a site with lots of links about saving and such www.choosetosave.org.

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Washington, D.C.: My wife and I would like to start a family soon, but I'm not sure what it would take for us to be financially ready for a baby. We own our home, but have some credit card debt and other than what we put aside for retirement, we are far from our saving goals. We don't want to wait too long (we're not getting any younger), but we want to make sure we start our family off on the right foot. Any advice?

Michelle Singletary: I'm not sure there is ever the right time to have a baby. Heck if I had thought about all the money my three kids would cost me I would have just got a dog -- one of the kind you can tuck in your purse :)

But you are right to go about this thinking about your financial situation. Without waiting too long since you say you aren't getting any younger, at least try to pay off that credit card debt. And I would definitely try to save at least a few months worth of emergency money in case one of you wants to stay home longer.

When the baby is born start putting money away for his or her college fund. I suggest the 529 plan. But basically my advice for you is to keep the debt to a minimal (house only) so that you have options for what you can do for the baby.

Good luck!

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Annandale, Va.: Hi Michelle, I recently changed my 401(k) allocations and chose to put everything in a Life-Cycle (Target Date) fund. Historically, I know the wisdom in diversification and was following this logic until now. However, I thought the Life-Cycle fund was supposed to do the diversifying for me without worry. I now receive a message when I log onto my retirement account stating "You have 1 equity fund(s). A diversified equity portfolio includes three different asset classes within your stock fund choices."

Now I'm worried I've made a mistake. Or have I? Should I go back to choosing my own funds and how they are allocated? If so, would it be wise to still include this Life-Cycle fund as part of of my plan? I thought the goal of these new funds was to take the guess work out of retirement investing. But I have more questions now than before. Can you please shed some light on these funds for me, and for the rest of the chatters that may have the same question? Thanks!

washingtonpost.com: Financial Futures: Life-Cycle Funds: Targets, Not Guarantees

Michelle Singletary: First here's a definition of lifecycle funds from "www.investorwords.com" an online financial glossary.

"A highly diversified mutual fund designed to remain appropriate for investors in terms of risk throughout a variety of life circumstances.They can contain any mix of stocks, bonds, and cash."

Now as you see from the definition you are a little too hyper about what you did. You didn't make a "grave" mistake.

Recently my colleague Martha Hamilton wrote about these funds (I've included the link).

There many pros and cons to this way of investing. Personally, I don't mind them if you are the type of person who just WILL NOT rebalance your retirement plan as you should. But critics worry investors will put money in the funds and just forgetaboutit. The problem is the funds set a target date for retirement and hopefully if managed right you will have a good sum for retirement. But what if the mix is off or the fund has an idiot choosing the options. If you set it and forget it, you won't meet your target goal of having enough money in retirement.

So calm down. Read up about life cycle funds. Look at the one you have and it's holdings. Is there a good mix of stocks, bonds and cash. The longer you have to retirement the more equities you might want to have. But you also want exposure to asset classes within equities (large cap, small cap, mid-cap, foreign, etc.)

If you think the fund you choose might perform well stay put. But don't just set it and forget it.

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Arlington, Va.: Michelle: Love your common-sense approach to money management. My wife and I try to practice many of the same core values of spending less and saving more (debt = bad!). Of course, there is some debt we need to take on - mortgage being the primary (and sole) debt we have. Lately, I have been intrigued by all those ads saying that there are ways to restructure debt to have it paid off in a fraction of the time (i.e., 30 year mortgage paid off in 3 years!). I just don't see how that is possible and wanted your take. What are these scams (I am positive they are scams) trying to sell?

Michelle Singletary: Thank you and interesting you should ask. Recently I did a column on paying off your mortgage early and why so many fools think we all should take our mortgages to our graves.

Since that I've gotten a ton of e-mail from folks pushing mortgage manage accounts or something similar. I will be checking out this system and writing about it in an upcoming column.

But I have to say my spider senses tingle when I read the promotions, some of which ask you to buy expensive software (some costing in the thousands) or take out a home equity loan.

My question is why shouldn't I just take the money for the software or interest I would pay on the home equity line and pay down my darn mortgage.

But I shall see. Stay tune.

And if any of you have done this (NOT PEOPLE SELLING IT PLEASE) e-mail me and let me know what you think. Has it worked for you (singletarym@washpost.com

AGAIN DO NOT SEND ME AN E-MAIL IF YOU STAND TO MAKE MONEY FROM THIS SYSTEM. The word is called "bias."

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For Bowie: I just took a job in a field I love and took a pay cut too. When negotiating, once they say you've maxed out on salary, definitely see if they can budge on vacation time, and ask for a review in 6 months rather than a year. (For me, the pay cut was offset by schedule flexibility to allow me to take classes, plus shaving 45 minutes off my commute each way!). And remember that if you really love the job, you'll be happier in your non-work time - can't put a price on that.

Michelle Singletary: Amen. I love your idea of reminding folks about non-salary stuff.

I did just that when I came to the Post. Couldn't get all the money I wanted but negotiated more vacation time, which I would spend with my boo, the sexiest, nicest, kindest, sweetest, hunkiest, -- did mention fine -- brother around.

Oh, sorry got carried away!

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Wacky wedding world: My sister is getting married next spring, and I'll be a bridesmaid. She doesn't seem to quite understand that she and her fiance make 4-5x as much as I do (plus they live in a place with a much lower cost of living than DC). For me the expenses associated with being in the wedding are rather scary. Finances can be such as touchy and tricky topic in families; do you or any of your readers have any suggestions?

Michelle Singletary: OOOH girl dangerous territory.

But here's what you do. TALK TO YOUR SISTER.

Very nicely and politely and with much love, say (seriously you can use this script):

"Sis, I love you and I really, really want to be part of your wedding. But I don't have it like that. So here's what I can afford. I will not put anything on a credit card that I can't pay off the next month. Think you can stay within this budget (include travel, etc.) If the costs are more than this, I'll be happy to attend and help in any other capacity. Or I'll welcome a donation. But I do hope you understand I'm trying to be responsible with the money I have. Did I mention I love you!"

Now, once you say all that, how she responds will tell what kind of child your parents raised. An understanding adult or a bridezilla.

But be honest and stick to what you can afford. Afterall it's one darn day for goodness sake.

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Midwest: Hi Michelle, my adjustable mortgage comes up in December. I'm leaning towards not trying to refinance this year, as the market is so bad lately, I'm afraid the appraisal may not equal or exceed what I still owe and I'll be turned down anyway. Do you think that major loan providers will be forced into finding (in the next year or so)a possible solution to help the millions of us on shaky ground? Are you hearing anything at all that may be a ray of hope for us?

Michelle Singletary: Honestly, you never know until you find out. So start now checking out rates and seeing what your house might fetch. You don't have to do a full blown appraisal. Check with some real estate agents in your area to see what homes are going for.

If after you do your research you find you can't refinance well at least you know.

And about this market. I think people with very, very good credit scores, good jobs and equity will still be able to find the best rates available.

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Formerly Washington, D.C.: Hi Michelle, LOVE your chats and columns. Keep up the excellent work! I am currently saving for a house. At this point, I have saved up enough to have six months of living expenses and enough to furnish the house and pay closing costs. My largest debt is my student loans. The APR for one of the loans is 4.5 percent fixed. I was wondering if I should take the money that I was planning to use for furniture and instead pay off that student loan. I am having a harder time than I expected finding a home I like, which may be good because it has allowed me to build up my savings even more (once I buy a home the amount I am able to save each month will be cut in half). Like you, I hate being in debt and though the APR is low, I would love to be able to get rid of the loan. The issue is that once I do buy a home, since the amount of money I will be able to save will be cut in half, it will take me longer to build up enough to buy furniture. Thoughts?

Michelle Singletary: Sit on the floor and pay off the student loan debt.

I'm serious.

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Rockville, Md.: My credit union (NFCU) has a bill paying service that is free. I think that I am much safer when paying credit cards and insurance and even rent payments, because they have an organization and records to show that my payments are on time or early. I think they can do a better job of proving payment. Do you see this as an advantage in our world of "cut throat" credit cards? How much or an advantage is it?

Michelle Singletary: My husband and I do online bill paying. If you stay on top of it and plan your automatic bills paying right, it's a great feature.

And I love free. And credit unions. Go for it.

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Babies and money: Michelle- Can I just offer some advice to the couple worrying about being able to afford a child? With my wealth of experience as dad of three years, I can only suggest that as long as you have a certain amount of financial stability there is really no significant financial hardship to having a kid. For all the new expenditures you are facing (diapers, toys, baby food, 529 plan), the cost will be offset by all the things you are no longer spending money on (nice dinners out, entertainment expenses, etc). My 2 cents...

Michelle Singletary: I would say it's worth three cents :)Goot point.

But I do have to quibble a bit with you that having a baby cannot lead to financial hardship --even when you have some money. You only have three years under your belt.

My friend I have 12 and three kids. Sometimes people underestimate their financial safety net. You can be taken down by having a kid.

What if that child becomes gravely ill. My oldest did. Both my husband and I had to take off about two months to care for her. Then I spent a year taking off time every week to take her to get chemo at Children's Hospital (one of the best hospitals and staff I might add in the country).

Had we not had good jobs, savings and stored up vacation time, it would have been a financial nightmare. But even people with good jobs may not have two-months worth of time saved up. Or enough to weather a long-term illness.

And what if you live in an area with horrible public schools? If you have savings you can afford another option.

What if you just decide you know what, the heck with working I want to stay home with my kids. Without savings or proper money management skills, can't do that.

So folks what I'm saying if before you get your groove on and make a baby, make sure you know how to make do with the money you have. And even then that may not be enough.

Not saying don't have kids. But plan for the worse, hope for the best.

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Alexandria: I took a pay cut for my job and have not regretted it. It was hard, but with reviews and the fact the Board likes my work, I am back up to where I was before and beyond. But the best part? I love my work, I love my boss, and I was just told that since its quiet and lovely day - to go and work from home. Awesome. For me, the quality of life is worth it.

Michelle Singletary: I'm so jealous!

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Washington, D.C.: I have a follow-up to the baby question. I know that your monthly costs are going to increase (a lot). And that somehow we'll have to save more (college, etc.), but what about start-up costs? I keep telling my wife that we need 10,000 a separate fund (not the emergency fund) before we get pregnant. I'm just worried there is SO much to buy, and I don't really have a firm grasp as to what the hidden costs may be. What do you think? Am I overreacting?

Michelle Singletary: I've heard of, "Honey I have a headache."

But, "Honey, we ain't got that $10,000 yet."

Talk about a mood crusher.

Okay, just kidding. You may, just may be over doing it a bit.

First, babies need very little --diapers, good car seat, crib, stroller. But after that -- much of which you might get at a shower -- you don't have to spend so much.

The major costs come with daycare if needed, and hopefully you will fund that with income.

In my case, we stock pile a little extra of living expenses because I wanted to stay home 6 months with my kids before returning to work.

So, yes you might be overreacting a bit.

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hanover: I'm with your entire speech to bridezilla saying "I love you but I can't afford all this," except when you said "Or I'll welcome a donation." THAT is tacky, even among family members.

Michelle Singletary: Not tacky, if her sister wants her to participate and she can't afford above a certain limit.

You say it nicely something, "like, I may need financial help if you really want me in the wedding however."

I certainly helped some of my bridesmaids afford some things when they say they were having financial trouble. They said, would you mind helping me. I said sure.

It's all in how you ask and receive.

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re: Sit on the floor and pay off the student loan debt: Tomorrow in the lunch room, ask if anyone has any old furniture they need to get rid of. You'll pick it up and take it off their hands. You'll be surprised how soon you'll have decent furniture to serve you while you save for your dream furniture. make some slipcovers and you'll barely realize it's 2nd hand.

Michelle Singletary: Good idea.

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Buffalo, N.Y.: What's a boo?

Michelle Singletary: honey, pookey, baby, boo or bo...whatever floats your boat.

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Brookland, D.C.: My husband and I have been married for five years and he has never been great with money but recently he's gotten worse. Because I make more money, a larger proportion of my salary goes towards our expenses and I am ok with that. However, he has begun to do things like make purchases for himself (electronics, jewelry) without discussing with me and as a result even more of my salary is used to cover our living expenses (which means less money for our savings and college savings for our children). How do I discuss this with my husband in a way that doesn't deteriorate into an argument. Thanks.

Michelle Singletary: First, have a heart to heart talk with him. Share what you just shared with me.

Next get on a budget. Go to my page on the Post site and download the budget template. If you give ALL the income --yours and his -- a purpose perhaps he will stop overspending.

Merge all the money. Start realizing that all the income and bills belong to both of you -- "OURS."

Then each of you decide on an amount you can spend monthly as say an allowance. It's not a parent/child thing. Just a way to control the discretionary spending.

If this goes deeper than this, get help. Go to counseling.

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Alexandria, Va.: For the person freaking out about their lifestyle 401k fund not being diversified -- first, that message you get when you log in is computer-generated. Pay it no mind! Second, the lifestyle fund is specifically diversified for you based on your age/target retirement date. IF- the fund is well-designed, please, PLEASE do not go messing with your overall allocation by investing in other funds through your 401k. Do that and you throw off your whole diversification. -Just be sure to do independent research on how you should be diversified, compare that against your lifestyle fund, and if it's suitable, just leave it and then re-check in six months. It drives me nuts when people get a lifestyle fund as well as other funds that mirror the same asset classes in the lifestyle fund... defeats the purpose!

Michelle Singletary: Isn't this what I said. But you said it well too.

So do what we said.

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baby costs: Its not baby stuff that gets costly, you can get hand me downs and gifts, but look at your insurance plans. If you have a ppo, you might need to pay 20 percent of costs. Also if you're a woman, does your company pay for medical insurance when you're out on leave or do you have to pay that. These are things I didn't think of the first time around, but was smarter and saved better with my second.

Michelle Singletary: Good point. Lot of smart people on with me today.

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Washington, D.C.: Michelle, As someone with lots of education and experience in the financial industry, I want to commend you on your approach to financial health. You always seem to get detractors who make finance arguments for not paying down debt but taking the money and investing it. The circumstance is always a low interest rate debt (5 percent) compared to the average return of the stock market (7 or 8 percent). The main thing they are ignoring is that paying down the debt gives you 5 percent RISK FREE. That extra you would (or not) earn in the market is a premium for risking the money. If they could point to a RISK FREE way of earning more than the debt, they may have a point, but that would be extremely rare. One more thing, a tax deduction on interest is NEVER more than the interest you are paying. Paying interest to get a tax deduction is like trading a dollar to get a quarter. Keep it up!

Michelle Singletary: I LOVE YOU!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

You said it so well.

This is what I've been trying to tell certain knuckleheads.

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babies and stuff: Non-parent chiming in on the cost of child-bearing/rearing. From observations of several friends who recently had kids, there is a whole industry out there (not unlike the so-called bridal-industrial complex) that is geared to selling you stuff you don't need for your kid. A lot of it is cute, but not necessary. The parents I know who've done it on the cheap are those who stick to what's needed, shop yard sales, and avoid extreme amounts of toys: some toys yes, a thousand toys, no. Kids are messy and they break stuff: they don't need Baby Gucci to spit up on.

Michelle Singletary: I'm telling you, get boxes. The kids love to play with boxes.

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bridesmaids: I realize I'm veering into potentially dangerous territory (not to mention it might be more Hax territory), but whoever decided that bridesmaids should not only pay for a shower, their own travel, but also some dress they'll never wear again, along with painful shoes....well, that person needs to be tarred and feathered. If it is important for a bride that I (the person) be in her wedding, it should not come with a long list of financial demands that I (not being made of money) may not be able to afford!

Michelle Singletary: I totally agree.

Weddings are a money sinkhole. Love marriage, hate all the waste.

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Arlington, Va.: Michelle: How much financial assistance should a parent give to a 38-year-old divorced daughter (my stepdaughter) who has five children (four of them in custody of their father), not put forth much effort to look for a job in the last five years, finally admitted to being an alcoholic, and basically not helping herself to become financially independent? My 72-year-old husband who is not in good health (former stroke victim, pacemaker, etc.), but still working, has sent her thousands of dollars for the past five years. He has substantial resources (investments, IRAs, good pension, etc.) and can afford to help her while he is working, but there has to be an end to this, doesn't there? I do not want to be the mean stepmother, but I want my husband to retire and enjoy life. Her mother (who is on good terms with my husband and me) thinks that the financial assistance should stop. What do you think?

Michelle Singletary: I think you are going to lose this argument. I totally agree with you but bad, bad enabling habits are hard to break.

Keep trying but I'm afraid you may have lost this battle.

But you are right, triflin people will not change when people keep giving them money to continue their bad habits or feed their illness.

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Washington, D.C.: Michelle, what do you do when you really, really want to spend money on your kids but the little drips and drops add up to more than you can pay off each month? The expenses are more for sporting equipment, activities fees and the like, not gameboys and designer handbags.

Michelle Singletary: Secure your finances first before doing the extras. Seriously.

I know we think our kids will not make it in this world if they don't do soccer, basketball, ballet, expensive camps, etc.

But they do better if you get a handle on your finances and create a stable and secure home without the stress of bills.

Put them in free programs at the communty center. Let them play outside.

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Merging Money: Michelle, I've been reading your chats for quite a while and know how you feel about married couples having joint accounts. In a perfect world, I'd agree with you. I was married to an abusive man for nine years who regularly cleaned out our joint account. I finally gave up and opened a separate account that I used to pay all our bills. If I hadn't he would have ruined us financially. When I finally worked up the courage to divorce him, I was in good financial shape, because I kept a separate account. Sad story, but too common.

Michelle Singletary: I totally understand that you had to do what you had to do.

But your case is the extreme. You see when you do what I do, you can't always give people a "but." Because they will gravate to the but first.

So, I have to preach the absolute -- merge accounts, think of your income and expenses as one.

Then the normal people will do the right thing. They won't say, Well Michelle said it's okay to have separate accounts sometimes."

However when you are faced with an exteme situation you have to leave the normal or usual or average and survive. That's what you do and I wouldn't fault you for that.

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Washington, D.C.: Michelle, how can I convince my fiance that spending $4,000 do wrap the chairs at our wedding in white table clothes is not a good use of of 15 percent of our wedding budget? The caterer has said that "90 percent" of the people who use this venue do not wrap their chairs. FWIW, we do not own a home and still have car payments.

Michelle Singletary: How about, this kind of spending concerns me and perhaps we should call off the wedding.

And I'm not joking.

This is a serious red flag. Treat it as such.

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Greenbelt:"Eighty percent of black women age 40 and older are overweight..."

And most of the rest smoke cigarettes. Isn't that even worse for both your health and pocketbook, except for reducing the need for retirement savings?

Michelle Singletary: Smoking, overweight -- both bad for your finances.

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Hate the advertisement: I want to throw something at my TV when those "cash instantly" ads come on. I especially hate the one where the woman chirps "Sales start today and I needed cash to shop!" Rule one: If the money is not already in your wallet - don't go into the store. I feel like the dependence on credit and time payments is a crash waiting to happen to the US economy.

Michelle Singletary: Totally agree. But you can keep people from making stupid moves. I try. All the time.

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Bethesda, Md.: Michelle, I am a late twentysomething trying to get on track to pay for an upcoming wedding (by myself, my parents can't help), buy a house in the next few years, pay off student loans and save for retirement. Right now I have about as much in various forms of savings as I do in student loans. I have $40K in a savings account that I am not sure what to do with to make sure I accomplish my short and long term goals. How do I decide where to put my money? Can a financial planner help me with these decisions or am I not wealthy enough for a planner to be worthwhile?

Michelle Singletary: Pay off the student loan debt. Start off your married life debt-free.

That's worth more than a 12-hour party (wedding reception).

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West Coast: Hi Michelle-

First of all, thank you for your columns and chats. I don't always heed your advice, but I guess it has sunk in somewhat--as of this month I am free of debt, have retirement savings, and I save money every month.

Recently I tried to access my free credit report and couldn't. I don't know if the information I gave didn't match (depending on what previous addresses are on file) or if my credit profile has been frozen for another reason. I've requested my credit report by mail, but in the meantime, is there anything else I should be doing, or a number at the FTC I should be calling? Thanks!

Michelle Singletary: Thought this was a good queston to end on.

I love debt-free stories. What a feeling! What empowerment.

So about that credit report. You are probably right. The security measures they put in place is likely why you couldn't get it online. I was trying to help a friend get hers online and she couldn't recall a previous address that would have opened it up.

Just wait for them in the mail. You should be fine.

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Michelle Singletary: Well folks, I have got to run. Thanks to all of you who joined me today. Loved your comments and questions. As always, I'm so, so sorry if I didn't get to your question.

But I do keep them and either use them in my print column or in my e-letter. So keep reading both. If you haven't signed up for the e-letter please do. I try to alert you to all the latest personal finance news, in addition to my columns.

Also, please join me every Sunday from 8 p.m. to 10 p.m on XM radio. I have a live radio show that airs on XM 169 The Power!

I know many of you may not have XM but call anyway. It's your chance to get an answer to your question live.

You can all me on Sunday from 8 p.m to 10 p.m. at (866) 801-8255.

Take care, keep saving and get rid of that debt!

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