- Watching Gamers:Dorkness Rising #
- Charisma? Weee! #
- Tweeting a dork movie? I'm a bit of a geek. #
- We just met and the first thing you do, after boinking a stranger in the presence of the king, is to murder a peasant? #
- Every movie needs a PvN interlude. #
- Everything's better with pirates. #
- Waffles? Recognize. #
- The Spatula of Purity shall scramble the eggs of your malfeasance. #
- Checkout clerks licking their fingers to separate bags or count change is gross. #
- Watching Sparkles the Vampire, Part 2: Bella's Moodswing. #twilight #
- @penfed was a waste of money. $20 down the drain to join, wouldn't give a worthwhile limit, so I can't transfer a balance. #
- @JAlanGrey It's pretty lame. The first one was ok. This one didn't improve on the original. in reply to JAlanGrey #
- RT @tferriss: Are you taking snake oil? Beautiful data visualization of scientific evidence for popular supplements: http://ping.fm/pqaDi #
- Don't need more shelves, more storage, more organization. Just need less stuff. #
- @BeatingBroke is hosting the Festival of Frugality #226 http://su.pr/80Osvn #
- RT @tferriss: Cool. RT @cjbruce link directly to a time in a YouTube video by adding #t 2m50s to end of the URL (change the time). #
- RT @tferriss: From learning shorthand to fast mental math – The Mentat Wiki: http://ping.fm/fFbhJ #
- RT @wisebread: How rich are you? Check out this list (It may shock you!!!) http://www.globalrichlist.com/ #
- RT @tferriss: RT @aysegul_c free alternative to RosettS: livemocha.com for classes, forvo.com for pronunc., lang8.com for writing correction #
- Childish isn't an insult. http://su.pr/ABUziY #
- Canceled the Dish tonight. #
The Luxury of Vacation
This was a guest post I wrote last year to answer the question posed by the Yakezie blog swap, “Name a time you splurged and were glad you did.”
There are so many things that I’ve wanted to spend my money on, and quite a few that I have. Just this week, we went a little nuts when we found out that the owner of the game store near us was retiring and had his entire stock 40% off. Another time, we splurged long-term and bought smartphones, more than doubling our monthly cell phone bill.
This isn’t about those extravagances. This is about a time I splurged and was glad I did. Sure, I enjoy using my cell phone and I will definitely get a lot of use out of our new games, but they aren’t enough to make me really happy.
The splurge that makes me happiest is the vacation we took last year.
Vacations are clearly a luxury. Nonessential. Unnecessary. A splurge.
When we were just a year into our debt repayment, we realized that, not only is debt burnout a problem, but our kids’ childhoods weren’t conveniently pausing themselves while we cut every possible extra expense to get out of debt. No matter how we begged, they insisted on continuing to grow.
Nothing we will do will ever bring back their childhoods once they grow up or—more importantly—their childhood memories. They’ll only be children for eighteen years. That sounds like a long time, but that time flies by so quickly.
We decided it was necessary to reduce our debt repayment and start saving for family vacations.
Last summer, we spent a week in a city a few hours away. This was a week with no internet access, no playdates, no work, and no chores. We hit a number of museums, which went surprisingly well for our small children. Our kids got to climb high over a waterfall and hike miles through the forest. We spent time every day teaching them to swim and play games. Six months later, my two year old still talks about the scenic train ride and my eleven year old still plays poker with us.
We spent a week together, with no distractions and nothing to do but enjoy each other’s company. And we did. The week cost us several extra months of remaining in debt, but it was worth every cent. Memories like we made can’t be bought or faked and can, in fact, be treasured forever.
Save Your Family
I don’t attach much importance to dreams. They are just there to make sleepy-time less boring. Last night, I had a dream where I spent most of my time trying to prepare my wife to run our finances before telling my son that I wouldn’t be around to watch him grow up. That’s an unpleasant thought to wake up with. Lying there, trying to digest this dream, I started thinking about the transition from “I deal with the bills” to “I’m not there to deal with it”. We aren’t prepared for that transition. Last year, we started putting together our “In case of death” file, but that project fell short. The highest priorities are done. We have wills and health directives, but how would my wife pay the bills? Everything is electronic. Does she know how to log in to the bank’s billpay system? Which bills are only in my name, and will go away if I die? Is there a list of our life insurance policies?
I checked the incomplete file that contains this information. It hasn’t been updated since September. It’s time to get that finished. Procrastinating is inappropriate and denial is futile. Here’s a news flash: You are going to die. Hopefully, it won’t happen soon, but it will happen. Is your family prepared for that?
The questions are “What do I need?” and “What do I have?”
First and foremost, you need a will. If you have children and do not have a will, take a moment–right now– to slap yourself. A judge is not the best person to determine where your children should go if you die. The rest of it is minor, if you’re married. Let your next-of-kin, your spouse keep it. I don’t care. Just take care of your kids! Set up a trust to pay for the care of your children. Their new guardians will appreciate it. How hard is it to set up? I use Quicken Willmaker and have been very pleased. Of course, the true test is in probate court, and I won’t be there for it. If you are more comfortable getting an attorney, then do so. I’ve done it each way. You can cut some costs by using Willmaker, then taking it to an attorney for review.
It’s a sad fact that often, before you die, you spend some time dying. Do you have a health care directive? Does your family know, in writing, if and when you want the plug pulled? Who gets to make that decision? Have you set up a medical power of attorney, so someone can make medical decisions on your behalf if you aren’t able? Do you want, and if so, do you have a Do-Not-Resuscitate order? Willmaker will handle all of this, too.
What’s going to happen to your bank accounts? I’m personally a fan of keeping both of our names on all of our accounts. I share my life and my heart, I’d better be able to trust her with our money. If that’s not an option, for whatever reason, fill out the “Payable on Death” information for your accounts, establishing a beneficiary who can get access to your money if you die. Do you want your spouse to lose the house or the car if you die? Should your kids have to miss meals? Make sure necessary access to your money exists.
Does anybody know what you have for life insurance? Get a copy of the policy and make sure your spouse and someone else knows what company holds it and how much it is worth.
Now, it’s time to make some lists. You need to gather account numbers and contact information for everything.
- Bank accounts. List every bank and account you own. Checking, savings, CDs.
- Investment accounts. Again, every company, every account.
- Mortgage and car payment information.
- Life insurance. Get your policy numbers, contact information, beneficiaries, and amount of coverage all in one place.
- Credit card accounts. Every card, every company. If it’s just your name on the account, your spouse will need to send certified death certificates to stop collections. Otherwise, she’ll need to pay the bills.
- Utilities. Get the account number for the electric bill, the gas bill, water/sewer/garbage, cable and phones.
- Other bills. These include car/home insurance, Netflix, memberships and anything else you pay.
- I’ve included the account information for my web host, registrars and websites. Some of it is salable, some of it is income-generating.
- Car titles. Put the actual titles in the pile of lists.
- Property deeds. Keep these here, too.
Non-financial information to list:
- Online accounts. Any financial sites that would be useful, or any community sites you would like to have informed about your death. Your online presence is a part of who you are.
- Email accounts. Will your survivors need to interact with anybody potentially contacting you? They will need your username and password, or most big providers won’t let them in.
- Social media. How many networks do you participate in? Do you want to disappear, or should all of your Facebook friends know your dead?
- Blogs. Do you have a blog that needs an announcement? Does it generate income? Could it be sold?
- Contact list. Who else needs to be informed of your demise? Don’t make your loved ones hunt for the information.
Now, take all of this information and put it in a nice, fat envelope and lock it in the fireproof safe you have bolted to the floor. Make a copy and give it to someone you trust absolutely. Make sure someone knows the combination to the safe or where to find the key.
Your loved ones will appreciate it.
Protection for your Loved Ones
This is a guest post.
Life cover insurance acts as a safety net to pay for a family’s expenses should a wage earner become critically ill or die prematurely. Life cover includes life insurance as well as disability, critical illness, mortgage and income protection insurance policies.
Importance of life cover insurance
In most families, at least one adult is a wage earner and uses their income to pay for necessities such as food, clothing and rent or mortgage. If the wage earner becomes disabled, too ill to work, or dies, life cover insurance can pay for these expenses.
Stay-at-home parents provide valuable, though unpaid, services to the family. Without that person, the family would have to pay for childcare, household upkeep, errand running, and every other chore the stay-at-home parent did. If the stay-at-home parent has life insurance, these expenses can be covered.
Life cover insurance can pay off mortgages and education loans.
Live cover insurance policies will pay funeral costs, which can be substantial.
Family owned businesses can be insured and protected if the owner dies.
Objections
Life cover insurance is too expensive.
Insurance companies have plans to suit every budget and life circumstance. While young and healthy adults will generally receive the most affordable policies, older adults have plenty of reasonably priced options as well.
Disability or severe illness is unlikely.
Actually, 32% of men and 25% of women, ages 40 to 70, will experience a critical illness or disability. http://www.healthinsuranceguide.co.uk/statistics_mainbody.asp
Discussing disability or death is awkward and uncomfortable.
Agreed, but avoiding the topic puts loved ones into economic jeopardy. Without the wage earner’s life cover, a family could lose their home and have to lower their standard of living.
Variety of life cover insurances
Life Insurance
Term insurance is a protection policy, paid for during a specific time period (term), and is active during that time only. Permanent, whole, variable, universal and universal variable life insurance policies all are investment policies. They combine a death benefit (the amount paid out when the insured person dies) with an investment account. Licensed and experienced life insurance agents can help individuals make the best choice for their life situation.
Critical Illness/Disability Insurance
This type of insurance pays for living expenses if a person is diagnosed with a serious illness or disabled and can no longer work.
Mortgage Insurance
This is paid when the mortgage owner dies. This could help prevent the surviving family from having to sell the home.
The time to buy life cover insurance is now!
A 2010 survey (http://www.prnewswire.com/news-releases/ownership-of-individual-life-insurance-falls-to-50-year-low-limra-reports-101789323.html) stated that individual life insurance ownership was at a 50 year low in the United States. An estimated 35 million (30% of households) Americans do not have life insurance, and 11 million of these households have children under 18. Already living paycheck to paycheck, any debilitating injury or death of a wage earning adult could spell financial disaster to the family. Buying life cover insurance is a vital part of caring for loved ones. Just as a wage earner provides a home, food and daily necessities for their family, life cover insurance can take over and provide for the family if the wage earner unable to do so.
Lamar Odom: The Cost of Addiction
Rumours swirl around Lamar Odom and Khloe Kardashian that their marriage is in trouble due to the basketball star’s addiction to recreational drugs. The couple has not been spotted together since June, and Kardashian has been photographed recently not wearing her wedding ring. On Sunday, August 25, TMZ reported that Odom had been missing for 72 hours after a dispute with Kardashian that some say was a failed intervention.
On Monday, August 26, ESPN reported that Odom’s agent, Jeff Schwartz, claimed that Odom was in a Los Angeles hotel and that friends were attempting to get him help for a drug problem that the agent declined to explain further. The agent also said that Kardashian knew Odom’s whereabouts. Kardashian herself tweeted that she was unhappy with the news reports about her family, but failed to elaborate on whether the reports were true or false. ( http://espn.go.com/nba/story/_/id/9601746/agent-disputes-report-saying-lamar-odom-missing)
History of Drug Probems
In 2001, Odom violated NBA drug policies twice in eight months, apologizing at a press conference after the second offense. Odom claimed he did not have a drug problem and was only guilty of smoking marijuana. Odom often speaks of losing his mother to colon cancer at the age of 12 and his father’s heroin addiction, eventually moving in with his grandmother. In 2006, Odom’s son, Jayden, died of sudden infant death syndrome. In 2011, a cousin who Odom was close to died of gunshot wounds in New York, and just two days after the cousin’s funeral, Odom was involved in a car accident that resulted in the death of a teenager. Odom’s chauffer driven SUV collided with a motorcycle, causing the bike to go out of control and strike a 15-year old pedestrian who died of head injuries the next day. (http://articles.latimes.com/2011/aug/02/sports/la-sp-lamar-odom-accident-20110803). Odom took a 10-day leave of absence from the Dallas Mavericks, claiming his father was ill right after the incident.
Clash over Partying
According to insiders, Odom and Kardashian have often clashed over his partying, but that she had kept his addictions secret from her family. According to many who have known Odom well, when things are difficult for him, he likes to get away and hide, which is what some say he did when he took leave from the Mavericks and just recently when he disappeared for a few days. (http://www.people.com/people/article/0,,20728355,00.html) Insiders are reporting that Kardashian is contemplating divorce, which will be costly for Odom as there is a strong infidelity clause in the couple’s prenuptial agreement, and there are rumors that Odom has been unfaithful.
High Cost of Addiction
Most of the rumors surrounding the Kardashian Odom marriage are related to the fact that two women have come forward claiming affairs with Odom while he was married to Kardashian, and not due to his drug use. However, the fact that there is a strong fidelity clause in the prenuptial agreement indicates that Kardashian may be unwilling to ignore his dalliances. If it is proven that Odom committed adultry and the couple divorces, Kardashian retains the Tarzana mansion the couple share, $500,000 for every year they were married, two vehicles, shopping money and spousal support. However, many reports continue that infidelity is not the problem in the marriage, but Odom’s continued use of drugs. Odom checked into a San Diego rehab in 2012, but left after only three weeks, and insiders claim that Odom’s recent disappearance was related to an intervention, staged by Kardashian, to encourage him to return to rehab.
Regardless of whether the marriage ends due to infidelity or drug use, it appears that addiction may be a costly proposition for Odom due to the clause in his prenuptial agreement.
Carnival of Personal Finance #270, the Elvis is Dead Edition
Today is the 33rd anniversary of the death of Elvis, so I’m bringing you the “Elvis is Dead” edition of the Carnival of Personal Finance.
What can the King teach us about finance? The immediate lesson is, of course, to not let success destroy you or your life. Always remember what is important.
“Adversity is sometimes hard upon a man; but for one man who can stand prosperity, there are a hundred that will stand adversity.” -Elvis Presley
Before we get into the carnival, please take a moment to subscribe, either by rss or by email. If you are on twitter, please follow me at @LiveRealNow.
Editor’s Picks
“When I was a child, ladies and gentlemen, I was a dreamer. I read comic books, and I was the hero of the comic book. I saw movies, and I was the hero in the movie. So every dream I ever dreamed has come true a hundred times…I learned very early in life that: ‘Without a song, the day would never end; without a song, a man ain’t got a friend; without a song, the road would never bend – without a song.’ So I keep singing a song. Goodnight. Thank you.”
-From his acceptance speech for the 1970 Ten Outstanding Young Men of the Nation Award. Given at a ceremony on January 16, 1971
Craig Ford from Money Help For Christians presents How to Buy Cars With Cash. This is great advice. My car will be paid off in the next few months and I will be doing exactly this.
FMF from Free Money Finance presents Are Tattoos at Work Really That Acceptable? Do tattoos limit your career? I reference this graphic when thinking about a tattoo.
Pop from Pop Economics presents Getting a raise: The negotiation. It’s always best to raise your top line as high as possible. Bringing in more money is far more effective that simply reducing your expenses.