- @Elle_CM Natalie's raid looked like it was filmed with a strobe light. Lame CGI in reply to Elle_CM #
- I want to get a toto portable bidet and a roomba. Combine them and I'll have outsourced some of the least tasteful parts of my day. #
- RT @freefrombroke: RT @moneybeagle: New Blog Post: Money Hacks Carnival #115 http://goo.gl/fb/AqhWf #
- TED.com: The neurons that shaped civilization. http://su.pr/2Qv4Ay #
- Last night, fell in the driveway: twisted ankle and skinned knee. Today, fell down the stairs: bruise makes sitting hurt. Bad morning. #
- RT @FrugalDad: And to moms, please be more selective about the creeps you let around your child. Takes a special guy to be a dad to another' #
- First Rule of Blogging: Don't let real life get in the way. Epic fail 2 Fridays in a row. But the garage sale is going well. #
Saturday Roundup – Side Hustles Rock
- Image via Wikipedia
We’re busy cleaning for our party next weekend, followed by spending an evening lying in a coffin in my yard, scaring the crap out of kids and giving them candy.
The best posts of the week:
Right now, I am actively pursuing 4 separate side hustles, 3 of which are generating actual cash. It’s about $500 a month at the moment, but each of them are growing. My goal is to hit $1500 a month by spring and have full replacement income within 2 years. Everybody should have some kind of side income, just as a safety net.
One of my side hustles involves training in a niche with 200 companies competing for about 10,000 one-day students each year. I could try to compete on price, but that’s an arms race to bargain-basement pricing. Instead, we compete on value, and as such, we’re on track to bring in several multiples of our share of students this year, with growth projected to go well beyond that next year.
Knowing how much more I enjoy my side projects over my straight job, I want to encourage my kids to develop their own lines of income that will allow them to live the lives they want to live, without being a leech on society.
If they can start to get some of their own income, they can learn the value of the things they own, instead of assuming that everything is free. I will not spoil my kids.
Finally, a list of the carnivals I’ve participated in:
Actions Have Consequences has been included in the Festival of Frugality.
If I missed anyone, please let me know. Thanks for including me!
Mortgage Race
I spent last week at the Financial Blogger Conference. Saturday night was the big debauch, a 90s themed hip-hop dance party.
Yeah.
Instead, Crystal, Suba, and I hosted a super-secret pizza party to let some of the less “dance party” inclined attendees discuss things like the sanitary concerns of group body shots, sex toys, and horror movies.
During the course of the party, Crystal and I decided to race to pay off our mortgages.
Her balance is just under $25,000.
My balance is $26,266.40.
We both technically have the cash to pay off the balances right now, but we are both dealing with secondary housing issues. She’s building a new one, and I’m updating an inherited house. Neither of us is willing to use our cash reserves to pay off the balance right this moment.
Now that my credit card is paid off, I’ve moved that money to an extra interest-only payment on my mortgage, effectively doubling my mortgage payment, which puts my projected payoff date as about the end of next year. Crystal’s aiming for June, so I’ll have to hurry.
We do have tenants lined up for February, and all of the non-expense related rent will go to the mortgage.
I think I can win.
Update:
I forgot to mention the terms of the bet. The loser has to go visit the winner. When I win, Crystal’s going to fly to Minnesota to experience snow.
Fighting Evil by Phone
A few years ago, I was under the control of the Local Worthless Telephone Company(LWTC), and forced to use their long-distance provider, Evil Telephones & Thieves (ET&T). There was never a month that didn’t involve calling LWTC to get our bill corrected. Every month, something was wrong.
One month, we got a bill for $800 more than expected. Another month, another mistake. I called LWTC to get it corrected. This wasn’t a big deal, just another screwup in long list. They refused. They had never refused before. They informed me that the charge came from ET&T, not their system, preventing them from doing anything about it. There went an hour of hold time I’ll never get back.
I called the Evil Mother of All Telcos, The Malevolent Bastard Offspring of a Government-Shattered Monopoly, the Unholy Source of All Communications-Related Errors and Communicable Social Diseases. Hold. Hold for soul-rending abuse. Do you sense a pattern? Evil abounds. The inspiration for Wolfram & Hart. Employee meetings open with ritual sacrifice and close with the desecration of the holy symbols of obscure religions from distant corners of the globe.
When the customer service rep came on the line, I asked for an explanation of the charge. I was informed that I had made a 30 minute call to Niue Island. I politely reminded them that I had long-distance blocking on my phone. They couldn’t explain how the call went through, but it had, so I was obviously responsible. They refused to consider doing anything about the charge. The next day, I called back. I explained the situation to a new rep, one who hadn’t yet been trained in the art of stealing the souls of the living. She recognized the logical impossibility of international calls through the block and reversed the charge. She was swell.
Ten minutes later, her supervisor called to explain that the good witch didn’t have the authority to reverse those charges. I was responsible for paying the bill, even though she couldn’t explain how I was responsible for making the call. I explained the situation, again. I begged. I pleaded. Nothing. I was informed that I had to pay the bill. If I didn’t, they would take me to court to make me pay. She swore their computer system was solid enough to pass as evidence in court. She was angry, rude and snotty. She told me there was nothing I could do.
That wasn’t going to work for me.
I started gathering papers. The next day, a certified letter was sent to both ET&T and the Evil Para-Monopoly Telco. The contents of this letter were golden.
I sent:
- A dispute letter crafted using every bit of my experience in one of the largest collection agencies in the world.
- A copy of the problem bill, with the impossible charge and the long-distance blocking highlighted.
- A copy of a Minnesota Attorney General complaint.
- A copy of a Minnesota Public Utilities Commission complaint.
- A copy of an FCC complaint.
That was the end of it. There was no follow-up call, no collections notice, no court notice. There was nothing. The following month, there was no mention of the unpaid balance. The bill disappeared. Victory! I had conquered evil, driven a righteous stake through its beating, dust-filled heart, and poured garlic salt in the wound. I never even had to submit the complaints to their respective agencies.
That was the month we dropped our home phone line to eliminate that headache. At the time, the cell phone with the best family plan gave us $300 shared minutes for $75. It was worth it to get away from the Abomination That was the Union of LWTC and ET&T. A year later, when a business telephone provider decided to expand into the residential market in our area, we had our home phone reinstated. In the nine years since, we’ve never had to dispute a bill with McLeod USA.
Lesson learned: When you are battling evil, go big or go home. It’s better to swat a mosquito with a sledgehammer than to poke a dragon with a safety pin.
Corporate Bankruptcy Hurts Employee’s Most
This is a guest post from Hunter Montgomery. He writes for Financially Consumed on every-day personal finance issues. He is married to a Navy meteorologist, proud father of 3, a mad cyclist, and recently graduated with a Master’s degree in Family Financial Planning. Read his blog at financiallyconsumed.com.
Bankruptcy has evolved from something that people and businesses were deeply ashamed of a few decades ago, to a seemingly acceptable path to restructuring; towards a more sustainable future. Bankruptcy is so common in corporate America that it is referred to by some as an acceptable and necessary business tool.
This bothers me on a number of levels, but mainly because corporate bankruptcies hurt the humble employee the most. The laws are supposedly designed to help the company stay in business, and continue to provide jobs. But at what cost to those employees?
When a company declares bankruptcy, they are essentially admitting to the world that they failed to compete. Their business model was flawed, they were poorly managed, and they simply did not organize their resources appropriately to meet their consumer needs.
Given this failure, it shocks me, that bankruptcy laws are designed to allow management to get together with their bankers. They essentially protect each other. Management is obsessed with holding on to power. The bankers are obsessed with avoiding a loss.
The bankruptcy produces a document called first-day-orders. This is a blueprint for guiding the organization towards future prosperity. But this is essentially drafted by the existing company management, and their bankers. Do you see any conflict of interest emerging here?
Bankers are given super-priority claims to the money they have loaned the company. Even before employee pension fund obligations. This is absurd. Surely if they loaned money to an enterprise that failed, they deserve to lose their money.
Management generally rewards itself with large bonuses, after declaring failure, paying off their bankers, shafting the employees, and finally re-emerging with a vastly smaller company. This is ridiculous.
The humble employee pays the highest price. Assuming there is even a job to return to after restructuring they have likely given up pay, working conditions, healthcare benefits, and pension benefits.
This is exactly what happened at United Airlines in 2002 after they filed for chapter 11 bankruptcy protections. The CEO received bonuses, and was entitled to the full retirement package. The banker’s enjoyed super-priority claims over company assets to cover their loans. Meanwhile, the employees lost wages, working conditions, healthcare benefits, and a 30% reduction in pension benefits.
An adjustment like this would force a serious re-evaluation of retirement plans. For most people, it would require additional years in the workforce before retirement could even be considered a real possibility.
Employees of General Motors, which recently went through bankruptcy proceedings, also had to give up significant healthcare benefits, and life insurance benefits. Entering bankruptcy, it was the objective to reduce retiree obligations by two-thirds. That’s a massive cut.
The warning to all of us here is that we must do everything possible not to fall victim to corporate restructuring. Save all you can, outside of your expected pension plan, because you never know when poor management, or a terrible economy, will force your employer to file bankruptcy. Always plan for the worst possible outcome.
It’s a competitive world and it’s quite possible that the traditional American system of benefits is uncompetitive, and unsustainable in the global market place. The tragedy of adjusting to a more sustainable system is that the employee suffers the most.
Link Roundup
What has happened to this week? It’s already Friday afternoon, and I’m short a post today. Since I skipped the link roundup last week while I was off with family, I’ll do it early this week and cheat you out of a real post today.
Finance links:
I enjoy trying new foods and eating out. Christian PF provides tips on doing that frugally.
Trent talks about “Family Dinner Night”. Invite a bunch of friends over to help prep and eat a buffet-style meal. Good time for everyone on the cheap.
Free Money Finance shares his 14 Money Principles.
MoneyNing shares how to buy school supplies for less.
Miscellaneous links:
Netflix just volunteered to shaft its customers again. There’s a 28 day wait to get most new releases, now. If I didn’t have almost 500 movies in my queue, I’d be royally ticked.
Mother Earth News has plans for a smoker/grill/stove/oven. I’d love to build a brick oven with a grill and smoker. A complete, wood-fired cooking center would be perfect for my house.
Major kitchen cleaning on Lifehacker. We’re doing this tomorrow, as part of our April Declutter.
That’s the highlight of my trip around the internet this week.
