Am I the only one who just noticed that it’s Wednesday? The holiday week with the free day is completely screwing me up.
Just to make this a relevant post:
Spend less!
Save more!
Invest!
Wee!
Colorado Insurance Laws: Do you have the Right Coverage?
Car insurance is mandatory in Colorado. Colorado law on car insurance changed in 2003 when the state changed to a fault-based system from a no-fault system. Even more requirements were added in 2009 for drivers, namely, a mandatory $5,000 in medical payments coverage.
Many of the other changes made to Colorado car insurance requirements were made to help prevent claim abuses and reduce the cost of insurance premiums for drivers in the city. The ‘tort’ or fault-based system requires that fault must be established before a claim is paid by an insurance company.
According to data released by the National Association of Insurance Commissioners, the average cost of auto insurance in Colorado was $777. This is way below the national average of $841 and far below the most expensive state, New Jersey, which had an average expenditure of $1,254 in annual premiums.
Colorado Insurance requirements
The state requires all drivers to have liability coverage at the least. This ensures that the other party and their property will be compensated in an accident that is your fault. According to insurance-comparison site, CoverHound, the minimum coverage for car insurance in Colorado should include:
- Bodily injury coverage of $25,000 for each person involved in the accident
- Bodily injury coverage of at least $50,000 for each accident the motorist is involved in
- Property damage coverage of $15,000 for each accident
Additional car insurance
Having insurance coverage meeting the minimum requirements of the law in Colorado will save you from being arrested for inadequate insurance. However, your insurance may not provide you with adequate coverage in case of an accident. Therefore, it’s important to consider the following car insurance options.
- Uninsured/Underinsured motorist coverage
While car insurance is a mandatory in Colorado, several drivers still drive without auto insurance. Figures released by the Insurance Research Council estimate that 16.2 percent of motorists in the state are uninsured. This is slightly above the 12.6 percent national average. The scary thing about not having this coverage is you never know when you’re going to get in an accident, let alone an accident with someone who’s underinsured, or uninsured altogether. As you can probably guess, if someone isn’t willing to pay an insurance premium to protect their financial means, they probably don’t have much financial means to protect in the first place, thus leaving you destitute in the event of an accident, regardless of fault. Bottom line: uninsured/underinsured motorist coverage protects your expenses in this situation.
- Medical Payments Coverage
Due to the aforementioned legislation passed in 2009, insurance providers are required to offer motorists $5,000 in med pay coverage as part of their insurance coverage. This is offered as part of every car insurance policy, and can be adjusted in $1,000 increments. You however, have the choice of opting out, but you have to send a rejection form. You can also choose to up your coverage to as much as $100,000.
- Collision coverage
Liability coverage ensures that the other party’s expenses are covered in the event you cause an accident, but what about damage to your own car? Collision coverage takes care of any damages to your car regardless of who’s at fault. The insurance also covers you for damage caused by hitting other objects with your car, such as a tree, or streetlight.
- Comprehensive cover
This ensures that you are covered for any damage that is caused to your car that doesn’t involve a collision (e.g. fire, falling objects, flood and hail). It also provides cover for the loss of your car through theft and other perils such as explosions.
If you purchase your car through a loan, your lender may require you to take out a comprehensive coverage policy. You can choose to have a higher deductible in order to reduce the cost of your premium.
Cost of violations
There are various penalties set by the state to ensure that motorists have adequate insurance. You may be penalized for failing to provide evidence of insurance or for purchasing inadequate insurance. Some of the penalties and fines include:
- A minimum fine of $500 for violations
- The addition of 4 points to your driver’s license
- The suspension of your license for up to 8 months
- Community service
It is important to understand your state laws and your own financial situation when choosing insurance. Your policy should not only meet state law requirements but your personal requirements as well. If it doesn’t, then what’s the point of having it in the first place?
This is a guest post.
Not the Center of the Universe
On Sunday, I dropped Punk #3 off at a birthday party. She walked into the yard, saw her friends and took off running. I confirmed times with the birthday girl’s mother and left. I went home and had Punk #2 help me with repairs to Coffin #1. It is Halloween season, after all.
When I came back two hours later, they had just finished eating cake and were about to open up presents, so I got to hang around for a while.
I noticed some amazing things:
- Fully 75% of this family’s living room was devoted to play space for the kid. As you walk in the front door, you get to see a giant pile of toys and kid-craft crap. Most of what is traditionally a gathering area was taken over by kid.
- Of the dozen or so children who came to the party, close to half of the parents stayed. Really, is your precious little snowflake so endangered by her friends that you can’t come up with something better to do that watch her play with her friends and ignore you for two hours while under the supervision of the resident parent?
- Clowns. Ok, it wasn’t technically a clown, but a guy named Mr. Fun who hands out whoopie cushions and entertains kids while wearing odd clothes counts as a clown, to me. I get it, you want your special little snowflake to have a memorable birthday, but if every party is big and over-the-top, which one will she remember? Maybe she’ll only remember a sense of entitlement.
I very firmly believe that children should not be raised to feel like they are the center of the universe. Not even to Mom & Dad. They need to know that we have lives and interests that aren’t them.
Mothers and fathers NEED to have lives and interests that are entirely separate from their children. If your entire focus for 20+years is on the lives of your little brats, what is going to happen to you when they move out? Are you prepared to abandon two decades of self-training and suddenly become your own person again?
Husbands and wives need to have time to themselves that excludes the children. When the monsters finally leave, you need to be able to have a relationship that doesn’t revolve around who spilled what where and who’s turn is it to clean it up.
Children are not–and should not be–the focal point of a household. Leave them at a birthday party. Let them find a way to entertain themselves for a few hours. Go on a date.
I promise you, letting your kids see their parents happily doing things together–even if it’s gleefully leaving them with a sitter–will do more for their long-term well-being than knowing you’re standing in the corner at a birthday party watching her fake a fart with a 25 cent toy.
Let her be independent. Let her know that other priorities do exist for other people. Let her fall down and scrape her knees. Let her figure out how things work for herself.
That is life, after all. Let her live it and don’t forget to live it for yourself.
Birthdays on the Cheap
Birthdays are expensive. Shoot, I’ve said that before. It’s usually true, but it doesn’t have to be. Here are five ways to cut birthday party costs. Note: If you’re trying to cut costs on an adult party, just replace the word “kid” with “guest of honor”.
1. Location, location, location. The amusement park/pizza place is nice if you like bad pizza, but it’s certainly not cheap. The inflatable playground may be the talk of the school for a day or two, but it’ll flex your debit card in ways it’s just not used to. Why? Kids, being kids, are capable of entertaining themselves. They’ve got imaginations that should make most adults weep with envy. If that fails, make them play a board game or in the worst case, some video games. Lock the wild young’ns in the basement and let ’em go nuts for a couple of hours. It’ll be a blast, I promise.
2. Why invite the world? How many friends does your kid actually have? I’m not talking about all of the kids in school he’s not fighting with or every kid on the block that hasn’t TP’d your house. I mean actual friendship. If they don’t play together regularly, nobody will be offended about missing an invitation. Invite the entire class? That’s just nuts. Thirty ankle-biters smearing cupcakes on the wall? No thank you. You kid will have more fun with 2-3 close friends than 20-30 acquaintances.
3. Toy flood. What was the last toy your kid played with? The last 10? How many toys have been completely neglected for months or years? How many stuffed animals are buried so deep in the pile in the corner that they are wishing for a fluffy Grim Reaper to come put them out of their misery? Don’t buy your kid clutter. It’s a hassle to clean up–and you will–and it trains them into bad habits for a lifetime. One or two things that they will treasure(or, better yet, wear!) will work our much better for everyone than a dozen things to forget in a toy box. Too many toys guarantees that the kid won’t get attached to any of them. Down with kid-clutter!
4. Designer Cake. Who needs a fancy cake? Correct me if I’m wrong, but aren’t you going to start a fire on the thing, then cut it up and give it to a dozen little runts to rub in their hair? If you can’t bake it yourself, a quarter sheet is cheap at the big box grocery stores and will guarantee leftovers. Nothing starts the week better than chocolate marble cake for breakfast on Monday.
5. Food. Don’t. That was easy. Scheduling is an important way to keep costs down. Don’t have the party at lunch time. For small children, 1:30 PM is about perfect. The parents won’t stick around once the kids are ready for a nap. For older kids, 4PM means they will need to be home for dinner. That cuts the menu down to kool-aid, light snack food, and cake. It also ensures that the party won’t drag on forever.
It’s possible to have a budget birthday party without being totally lame. Give it a shot. Your kids won’t mind.
This post is a blast from the past.
Five Signs You Don’t Need That
Everybody occasionally buys things they don’t need, from DVDs to luxury cars. There are signs that what you’re buy may not be an actual necessity.
Here are five signs you should put that back:
- You’re buying that sweater or video game for the endorphin hit, you’re shopping for the addictive high not to fill an actual need. It’s a habit that’s as hard to break as smoking, if not harder. You can’t, after all, stop shopping altogether.
- You already have one. Or 10. A relative can’t turn down a sale and she buys for life. She regularly buys 3 of whatever useful gadget is available on the shopping channel. Her house has turned into a sad story of compulsive hoarding.
- The rationalizations for your purchase include “It’s cool” or “My friends all have one.” If you are buying something just for the bragging rights, it has become an ego purchase, which is something to avoid. The insidious part of an ego purchase is that you have to keep topping your last purchase and the last purchase of your social circle, or the purchases lose value. It’s a vicious circle.
- It doesn’t have a “place”. Where are you going to put it? Is it going to go in the corner, or is there a drawer or shelf it can live on. If there’s no play to consider “away”, you’re just buying clutter. If you must have it, go home and toss, sell, or donate 2 things to make room. If possible, do that before you actually by the new toy. If it’s important, you’ll come back for it.
- You didn’t know you needed it 10 minutes ago. If you actually need it, it’s on your list, right? Impulse purchases have been the biggest budget-killer in my house. That’s why we use Alice for the household goods. If we don’t see the it, we can’t throw it in the cart at the last minute. We no longer shop with the debit card, so we have to watch what we buy. It’s embarrassing to have to undo a purchase at the checkout because I didn’t bring enough cash.
What did I miss?
Business Failure: Learn From My Mistakes
I am a failure.
Ten years ago, I started a small web-design company with a friend. I had a larger-than-average stack of geek points and the ability to build a decent website.
We lacked two things.
- Design talent. For me, design–whether graphic, web, or print–is a very iterative process. I build something, even if it’s crap, and incrementally improve it into something good. I understand the technical details of good design, but lack that particular creative spark.
- Sales skill. I’m an introvert. As such, sales–particularly the act of initiating a sale–doesn’t come naturally to me. I’m bad at cold-calling and door-knocking. This was supposed to be my partner’s responsibility. As it turns out, his main talent was convincing me that he had one.
In short, we were trying to launch a tech company on a shoestring budget with nothing but technical skill.
The missing elements doomed us. We never had more than a couple of customers and eventually surrendered to the inevitable.
Ah, well. My investment was time.
The time investment came with some valuable lessons.
- Get complementary talent. You have weaknesses. Find partners who are strong where you are weak and weak where you are strong. That guarantees every will realize actual value in the partnership. The whole will be greater than merely the sum of its parts.
- Hire the skills you need. Make an honest assessment of your talents and skills. Do the same for your partners. If that talent pool is lacking something you need, buy it. If you need a graphic designer, a writer, or a marketer, spend the money to get it. If you lack something truly necessary, your business will stagnate.
- Learn the skills you need. Sales is a learnable skill. So is almost everything else. Even if you lack the talent and won’t be doing the work, you need to have a solid understanding of the skills necessary to run your business. Fluency isn’t necessary, but understanding is. Learn about the principles of good design, the art of cold-calling, and whatever else you are going to be relying on others to handle.
Starting a business can be rewarding, both emotionally and financially. I’ve never let myself be limited to just one income stream, but I try not to let my emotional investment cloud my judgment. Do things right and you’ll stand a better chance of making your business a success.
