- Guide to finding cheap airfare: http://su.pr/2pyOIq #
- As part of my effort to improve every part of my life, I have decided to get back in shape. Twelve years ago, I wor… http://su.pr/6HO81g #
- While jogging with my wife a few days ago, we had a conversation that we haven’t had in years. We discussed ou… http://su.pr/2n9hjj #
- In April, my wife and I decided that debt was done. We have hopefully closed that chapter in our lives. I borrowed… http://su.pr/19j98f #
- Arrrgh! Double-posts irritate me. Especially separated by 6 hours. #
- My problem lies in reconciling my gross habits with my net income. ~Errol Flynn #
- RT: @ScottATaylor: 11 Ways to Protect Yourself from Identity Theft | Business Pundit http://j.mp/5F7UNq #
- They who are of the opinion that Money will do everything, may very well be suspected to do everything for Money. ~George Savile #
- It is an unfortunate human failing that a full pocketbook often groans more loudly than an empty stomach. ~Franklin Delano Roosevelt #
- The real measure of your wealth is how much you'd be worth if you lost all your money. ~Author Unknown #
- The only reason [many] American families don't own an elephant is that they have never been offered an elephant for [a dollar down]~Mad Mag. #
- I'd like to live as a poor man with lots of money. ~Pablo Picasso #
- Waste your money and you're only out of money, but waste your time and you've lost a part of your life. ~Michael Leboeuf #
- We can tell our values by looking at our checkbook stubs. ~Gloria Steinem #
- There are people who have money and people who are rich. ~Coco Chanel #
- It's good to have [things that money can buy], but…[make] sure that you haven't lost the things that money can't buy. ~George Lorimer #
- The only thing that can console one for being poor is extravagance. ~Oscar Wilde #
- Money will buy you a pretty good dog, but it won't buy the wag of his tail. ~Henry Wheeler Shaw #
- I wish I'd said it first, and I don't even know who did: The only problems that money can solve are money problems. ~Mignon McLaughlin #
- Mnemonic tricks. #
- The Wilbur and Orville Wright Papers http://su.pr/4GAc52 #
- Champagne primer: http://su.pr/1elMS9 #
- Bank of Mom and Dad starts in 15 minutes. The only thing worth watching on SoapNet. http://su.pr/29OX7y #
- @prosperousfool That's normal this time of year, all around the country. Tis the season for violence. Sad. in reply to prosperousfool #
- In the old days a man who saved money was a miser; nowadays he's a wonder. ~Author Unknown #
- Empty pockets never held anyone back. Only empty heads and empty hearts can do that. ~Norman Vincent Peale #
- RT @MattJabs: RT @fcn: What do the FTC disclosure rules mean for bloggers? And what constitutes an endorsement? – http://bit.ly/70DLkE #
- Ordinary riches can be stolen; real riches cannot. In your soul are infinitely precious things that cannot be taken from you. ~Oscar Wilde #
- Today's quotes courtesy of the Quote Garden http://su.pr/7LK8aW #
- RT: @ChristianPF: 5 Ways to Show Love to Your Kids Without Spending a Dollar http://bit.ly/6sNaPF #
- FTC tips for buying, giving, and using gift cards. http://su.pr/1Yqu0S #
- .gov insulation primer. Insulation is one of the easiest ways to save money in a house. http://su.pr/9ow4yX #
- @krystalatwork It's primarily just chat and collaborative writing. I'm waiting for someone more innovative than I to make some stellar. in reply to krystalatwork #
- What a worthless tweet that was. How to tie the perfect tie: http://su.pr/1GcTcB #
- @WellHeeledBlog is giving away 5 copies of Get Financially Naked here http://bit.ly/5kRu44 #
- RT: @BSimple: RT @arohan The 3 Most Neglected Aspects of Preparing for Retirement http://su.pr/2qj4dK #
- RT: @bargainr: Unemployment FELL… 10.2% -> 10% http://bit.ly/5iGUdf #
- RT: @moolanomy: How to Break Bad Money Habits http://bit.ly/7sNYvo (via @InvestorGuide) #
- @ChristianPF is giving away a Lifetime Membership to Dave Ramsey’s Financial Peace University! RT to enter to win… http://su.pr/2lEXIT #
- @The_Weakonomist At $1173, it's only lost 2 weeks. I'd call it popped when it drops back under $1k. in reply to The_Weakonomist #
- @mymoneyshrugged It's worse than it looks. Less than 10% of Obama's Cabinet has ever been in the private sector. http://su.pr/93hspJ in reply to mymoneyshrugged #
- RT: @ScottATaylor: 43 Things Actually Said in Job Interviews http://ff.im/-crKxp #
- @ScottATaylor I'm following you and not being followed back. 🙁 in reply to ScottATaylor #
Selling Your Home: The Real Estate Agent
If you are not able or willing to sell your home yourself, you’ll need to find a real estate agent. A realtor is someone who deals with all of the hassles involved in selling your home in exchange for a fee of up to 7% of the selling price.
The hassles include marketing, an objective price analysis, advertising on the internet and in newspapers, providing a yard sign, negotiating the sale price, reviewing and filling out the contracts, and navigating the entire process for you. The aren’t meaningless duties, so make sure you are getting what you pay for. You need to find the right realtor for you.
The key to to ask questions, particularly the right questions. You can ask the wrong ones if you’d like, but they tend not to help much.
Helpful questions include:
- “Can I call your previous clients?” If the answer is no, run away! If the answer is yes, get the list and call them.
- “Have you sold any homes near here recently?” Get the names and numbers of the customers and call them. Find out how it went and what they wish would have happened differently. If the realtor hasn’t sold nearby homes recently, keep looking.
- “Will you put your sales strategy in writing?” If it’s not in writing, you may be left paying the full commission, without getting the full promised service.
- “What will you tell a potential buyer that wants to negotiate?” Make sure you and your realtor are on the same page.
Now for some secrets that realtors will not volunteer.
- The selling fee is negotiable. If you live in a popular development, or if nearby homes have sold quickly, you should be able to get your fee reduced a couple of points.
- You don’t have to sign an exclusive listing agreement. With an exclusive agreement, you will pay the realtor a fee if the house sells. Period. With a non-exclusive agreement, you can list with several agents and only pay the one who actually sells your house. If you find the buyer, you won’t pay a selling commission at all.
Selling your house can be intimidating and realtors are there to make the task easier for you. Have you had any problems with real estate agents?
My Favorite Present
My favorite Christmas present this year was the one I gave to my 13 year old son.
Allow me to walk you through his evening….
First, he opened one of his presents. It was just a small box, about 3 inches by 4. A Japanese puzzle box. Inside the box was a note that read:
Closed off in the smallest room you will find a clue to bring you closer to your prize.
When he checked the cabinet below the sink in our basement bathroom, he found another note that sent him to my business website one a page with a url that contained “the square of my children”. When he eventually figured out that I meant their ages, not their quantity, he found a clue on my website.
This lead him to a section of his Minecraft server. It’s effectively a no-man’s land because he and his friends set off a nuke and turned it into a giant pit. They fall down and die there. Inside the pit was a cave. Inside the cave was a clue. The clue read:
Grandma and Grandpa love you.
What do you do when someone says they love you? You either get scared of the commitment and end a perfectly good relationship, or you say “I love you, too”. When the kid finally called his grandparents to tell them he loves them, they told him to give his parents a kiss.
I’m a jerk.
He came over and gave me a hug and a kiss. I handed him a piece of paper. When he looked at it, he asked if it was supposed to be torn in half. I reminded him that he has two parents, so Mom got a hug and a kiss, too. The resulting clue read:
The Answer to the Question of Life, the Universe, and Everything
Naturally, this points to The Hitchhiker’s Guide to the Galaxy, but the boy hadn’t read far enough into the book to understand the reference, so he had to hit google. After spending time looking for chapter 42, he finally thought to look at page 42, which had this clue:
My Little Pegasus
Two steps to the right
Two steps forward
Two steps up
This clue started at the My Little Pony I set next to a Pegasus in my daughters’ room. The boy was in dense mode because he had to ask his sister what a Pegasus was. She also had to suggest he open the closet door when one step forward made him bump his nose on it.
For all of that work, he got the Ticket to Ride game. He laughed the entire way through the treasure hunt, then decided he hated the whole process. However, for two nights running, he’s stopped the video games to play his new game with his family.
It’s a present he’ll remember forever.
Investing Basics
If you’ve got your debt paid off, or at least paid down enough to start thinking about using your money for the future instead of the past, it’s time to consider investing your money. If you invest your money, it can grow and start building wealth for you, preferably without your active intervention. Passive income is the best income.
Before you invest in anything, you need to understand the investment completely. In the words of Dave Ramsey, you need to own the investment. There are some questions to ask to get to that level of understanding.
What kind of return can you expect? Will the income come from renters, dividends, or interest? Is the income reliable?
How risky is the investment? Generally, more risk comes with the potential for more income, but that is merely potential. It’s called risk for a reason. If your renters leave, can you make the payments on the property? Will you be financially devastated if the investment tanks? Companies like Standard & Poor’s rate the risk of corporate and municipal bonds.
How liquid is it? How hard will it be to get your money out of the investment? Stocks and bonds can usually be sold at will, but CDs and IRAs almost always come with restrictions. Property requires a seller before you can get your money back out.
Is there a tax advantage? Some investments, like U.S. Savings bonds and municipal bonds, are exempt from varying levels of taxes. Others, such as some IRAs, allow your wealth to grow tax-deferred and can, in some cases, be withdrawn tax-free. Other investments, like a 401k paid out of pre-tax income, can lower your taxable income and actually increase your take-home pay while building your retirement fund. Do you understand the 401k alternatives?
When you are looking at an investment vehicle, make sure it is legitimate. Don’t believe get-rich-quick promises and always back away from high-pressure sales tactics. Always take the time to investigate your investments.
A Bit of Christmas Magic
On Thursday, my wife left with my kids and dog. I had to work all day on Friday, so she took off to get an early start on Christmas at my brother’s house. I followed Saturday morning.
Two nights with no whining, and a bed to myself.
Friday afternoon, my wife called to tell me about her day.
When she got to my brother’s, she took her tailgate down to get the suitcases out of the back of her truck. She left the plastic container full of presents in her truck, since we’d be exchanging presents at my parent’s house nearby.
Friday morning, she left to feed her shopping addiction for a few hours.
When she got to the giant store that had our new car seats on sale, she discovered that she had neglected to put the tailgate back up on the truck when she unpacked. This was the box that held most of our budgeting overspend.
Gone.
When she called me, she was retracing her steps, hoping to find the box.
I was upset.
She didn’t find the box on the side of the road.
Gone.
Normally, this would be a strong object lesson in the futility of rampant consumerism. A lot of zen-like “the stuff you own is fleeting”, amidst the wailing of children who are discovering that their Christmas presents evaporated in a ditch somewhere.
Somebody found the box. I don’t know who.
Whoever it was, opened the box and saw the tears of small children inside. She read the name tags and, amazingly, recognized enough of the first names to place the family.
Keep in mind that I live more than 100 miles away, and moved out of the town 15 years ago.
This anonymous Christmas elf brought the box into a nearby gas station, and asked them to call my parents, since the names on the tags matched those of my parents’ grandchildren.
Everything was still in the box.
Everything was still intact.
Anonymous Christmas Elf saved Christmas for my family
.
Reason #45,682 Why It’s Good To Have An Emergency Fund
My mother-in-law died two weeks ago.
It’s sad, but I’m not going to get into the emotional devastation that comes with the death of a loved one here. At least, not today.
Today, I’m going to talk about the money, but not the funeral expenses.
I’m talking about the expense of taking over her stuff. When she died, she was living in her own home, paying her own bills.
Now, we have a small stack of expenses we weren’t planning for.
She had 2 cars. She actively drove one, and kept storage insurance on one that was parked in the driveway. Combined with the homeowner’s insurance, that’s $110/month.
One of the cars has a loan. The car is worth $4000 more than the loan, so it’s not worth letting the bank repossess it. That’s another $200/month.
The gas and electric add $50 to the monthly tab.
Setting aside money for the property tax adds nearly another $200 per month and the first half is due next week.
I rounded the numbers off here, but that’s $562.58 that’s outside of our regular budget and doesn’t address some bills that we paid off instead of arguing with bill collectors while we straighten out the estate.
This is the kind of scenario that makes me happy to have an emergency fund. We are able to pay the property taxes and keep the lights on because of it. A few years ago? The car would have been gone and the house dark within a month.
Now? The emergency fund covers the immediate expenses and we have some breathing room to adjust our budget. For example, the money we were setting aside for our next car is now being earmarked for paying off our surprise car loan.
