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Do you have what it takes to be wealthy?

Finance, Life

I saw this quiz and thought it would be fun to liveblog taking it.   Yes, I’m lame.   I’m going to take the quiz here.   I’m copying the questions over before reading the answers and answering each question before reading the next.

1.  How optimistic are you?

I have to go with A, the glass is half full, but I like to think I’m more of a “That’s half of a glass of water” kind of guy.

2.  When you grew up, your parents were:

A & C.  We owned a home, but money was always tight.   I’m picking C.   We always had everything we needed, so we certainly weren’t poor, but I also didn’t have every video game system in existence.

3.  How healthy are you?

A.  I can’t complain.  I’m borderline on a few issues, but overall, I’m pretty healthy.

4.  How smart are you?

I’d bet very few people consider themselves stupid, regardless of evidence to the contrary.  I’ll take B, smarter than most, and hope it doesn’t sound arrogant.

5.  What level of education did you complete?

B.  College.   I went to a tech school and took a diploma program.  That’s working out well for me, so far.

6.  Physically, you are:

A, B, & C.  I’m tall, heavy, and pretty darn sexy!

7.  What’s your sibling situation?

I have two and I’m the middle child.

8.  Are you married?

A.  Yes, to spouse #1.

9.  Do you have kids?

3 of the little monsters.  They are a money-drain, but worth every penny.  Most days.

10.  Do you exercise?

D.  I neither smoke nor exercise.   There’s no middle-of-the-road answer to this one.  You either hit the gym regularly, or you are a lump on the couch.

11.  People describe you as:

B.  Persistent.  I think the actual word used is “obsessive”.

12.  Do you believe a woman’s place is in the home.

A.  I may joke about it, but that’s not a choice for me to make.

13.  When it comes to work:

A, B & C.   I have a day job, but I’m also regularly pursuing side-hustles, including one that is 4 years old and relatively profitable.  Since I can only choose one, it’s A, because that’s my primary income.

14.  How would you like to jump out of a plane?

A.  I want to, but promised my wife I’d wait until the kids were out of the house.

15.  Who would you rather emulate?

B.  I’m not into an entourage, and have no urge to surround myself with 500 of my closest leeches.   Good times with good friends is enough for me.

I scored 39 out of 72, which puts me in “You’ve got a shot at real money!”   My financial outlook puts me at comfortable, but not care-free, which is an okay place to be.

What’s your score?

Getting Out of Bed

Life

Costa Rica... No artificial ingredients!
Image by Wha’ppen via Flickr

Why do you get out of bed in the morning?  Is it so you can exercise the privilege of spending 8 hours in a cubicle?

I didn’t think so.

In Okinawa, it’s call the ikigai.  In Costa Rica, it’s the plan de vida.  It’s your sense of purpose–the reason you get out of bed in the  morning.  In these cultures, having a strong ikigai can be directly correlated to a statistically extreme lifespan*.  All around the world, the plan de vida is the single factor most likely to cause someone to feel they have lived a fulfilled life.

Do you know your ikigai?

For some people, their plan de vida is to successfully raise their children, then their grandchildren.  For others, it is charity.  Some folks are serial entrepreneurs, always looking for the next deal, the next business.  For still others, it is a collection or an urge to travel.  There are even some whose sole reason for getting out of bed(other than potty breaks) is  work.

The last category is most common with teachers, soldiers, and police.  The problem with wrapping so much of your identity up in your profession is retirement.  What do you do when your ikigai–your reason to wake up–goes away?  In Okinawa, teachers and police tend to have very short retirements because they lose their reason to for living.

What is your plan de vida, your passion?  What drives you to keep going?  Do you live to write, or to raise your children?  Do you <shudder> live solely for someone else’s happiness?  When you find it, it will resonate as “this is you”.   Finding it is a deep soul-searching, not a light-hearted explanation or a new fad.

Your reasons can, and should, change over time.  You can’t live for raising your children years after they have grown up and moved away.  Finding  this one factor in your life can be the thing that leaves you on your deathbed looking back with a smile instead of regret.

What is your plan de vida?

* From The Blue Zones: Lessons for Living Longer From the People Who’ve Lived the Longest

Actions Have Consequences

Finance, Parenting

Image by reidmix via Flickr

Six months ago, my laptop quit charging.  This particular model has a history of having the power jack come loose inside the laptop, so I ordered the part and waited.  When it came, I disassembled the computer, carefully tracking where each screw went.   I installed the part, the put it back together, with only a few extra pieces.

It didn’t work.

After spending the money and doing the work, I tested the external power cord.   I could have saved myself a few hours of work if I would have done that first.  It was trash, so I ordered a new one.   That’s time and money down the drain due to my poor research.

As an adult, I know that I am responsible for my actions, even if the consequences aren’t readily apparent.   If I tap another car in a parking lot, I am going to have to pay for the damages, even if I didn’t see the car.   This has manifested itself in credit card statements I didn’t read, speed limits signs I didn’t notice(or ignored!), and–on occasion–my wife and I not communicating about how much money we’ve spent.

Kids have a much harder time grasping that concept.

My son enjoys playing games online.  Some of the games are multiplayer games  he plays online with his friends, others are flash games he plays at home while his friends watch.   They like to take the laptop into the dining room where they can play without being in the way.   A small herd of 10 and 11 year old kids hopping around expensive electronics can’t be a good idea.

Yesterday, we saw that the power cord was fraying at the computer end from being dragged all over the house and jerked by kids tripping on the cord.   We got six months of life out of the cord because of kids who should have known better not acting appropriately around the cord and the computer.    Not happy.

My son got grounded for a week and honored with the privilege of replacing the cord.   Now he isn’t happy, but he understands that he needs to pay for the damage he causes, even if he didn’t know that what he was doing could cause the damage.    If it was something he would have had no way of knowing, there would have been no punishment, but he should have known not to jerk on the cord of leave it where it can be tripped over.

What do you think?

Things You Should Buy Online to Save Money

Finance

Article written by money supermarket.

Sometimes the price you pay in-store for a product or service can change dramatically if you find the same product online, and in most cases the price in-store can be considerably higher. There’s nothing worse than getting home from a shopping trip thinking you have a bargain, until you realise that you could have saved a lot more had you have waited until you got home. Here are a few examples of things you should buy online to save money:

    1. DVD’s and Blu Rays

All movies, whether on DVD or Blu Ray format, are generally cheaper if bought online, it’s a fact that I have learned over the years. I’ve always found that searching the sites of film selling giants Amazon and Play, I can always find a movie that little bit cheaper and some considerably so. There are also some websites such as dvdpricesearch that compare prices of all of the big merchants for you; it’s a great way to save time and money.

    1. Flights and Holidays

In my opinion, the day of buying flights face to face is slowly on the decline, I seem to find considerably cheaper prices by searching online at home. I think the main reason for this is that, travel or holiday agents just do what we do, they search online for the best prices, and unless they have any exclusive deals then they will just be getting the same prices as us. I tend to use some online travel comparison websites that again do the searching for you; however, some work better than others so make sure you do your research.

    1. Books

I always purchase books online, whether in the standard physical format or in the form of an e-book. Books are just one of those things that always seem to be cheaper, with the likes of Amazon and Borders available online and offering fantastic discounts. There are also many websites that sell niche or rare books online that can be considerably cheaper than going direct to a book seller.

    1. Auto Insurance

Auto insurance is one of those things that we all hate purchasing, but if you want to drive your vehicle on the road, then by law we have to spend our hard earned cash on it. Getting your auto insurance online can save you a lot of money. Using price comparison sites, you only have to fill in one form as if you’re applying for one quote, you will then be provided with a list of pricing options available to you.

    1. Cell Phones

Whether you are just buying a handset or if you’re looking for a monthly cell phone price plan, I always seem to find better deals online than I can in-store. Of course in-store you have the ability to try and haggle but I’ve found that the deals I get offered are never as good as those that I can find online. Online you can also search by provider website which is another great way to save money, and it would take you a lot of time to visit each store!

Jason’s note: I shop online a lot.  I buy things that most people don’t realize are available online.   An interesting counterpoint question: What should you buy in-person to save money?

Black Friday

Finance

Image by Getty Images via @daylife

Today being the biggest shopping day of the year, I thought I’d get in the game.

First, instead of helping you spend money, I’m going to help you save it.  As I’ve mentioned before, I am a big fan of INGDirect.   They make it easy to create savings accounts for specific savings goals and they have a decent interest rate.  I’ve never had a problem with any of my accounts.

For Black Friday(through Sunday!), they are offering the following:

  • Earn $103. Open Electric Orange November 26th – 28th, and make a total of 7 purchases using your Electric Orange Card or Person2Person Payments (or any combination of the two) within 45 days.
  • Open a Kids Savings Account November 26th – 28th and we’ll(ING) put a $25 bonus into your new account.
  • Use your Electric Orange Debit MasterCard® at least one time from  8:00 AM ET, November 26th – 7:59 PM ET, November 26th, and you’ll be automatically entered into the 100% Cash Back Giveaway.
  • Open a 36-month IRA CD with ING DIRECT November 26th – November 28th and get 2.00% Annual Percentage Yield (APY). Ask them about work at home moms and dads spousal IRA.
  • Apply online November 26th – 28th for Easy Orange or the Orange Mortgage or call a Mortgage Specialist at 1-866-327-4599 and get up to $2,000 off closing costs. If your costs are less than $2,000, you pay nothing.
  • 25% rebate on Sharebuilder trades that execute today or Monday.

Click here to open an account with the best bank to ever hold my money.

Now, to help you spend some money.

All of my websites are hosted by HostGator.   I’ve never had noticeable downtime or any technical problems.  The one issue I had that couldn’t be controlled by their interface was fixed by technical support in minutes.  Not hours, minutes.  They are having an amazing deal today.   From 5AM to 9AM CST, all of their products are 80% off.    The rest of the day, it’s all 50% off.  Unfortunately, this doesn’t apply to existing customers, but if you are looking for a website host, paying $35 for 3 years of hosting can’t be beat.

Click here to open an account.

3 Things You Need to Know About Homeowner’s Insurance

Finance

Six Shooter Flood
Image by ecstaticist via Flickr

If you are a homeowner, you need homeowner’s insurance. Period.   Protecting what is mostly likely the biggest investment of your life with a relatively small monthly payment is so important, that, if you disagree, I’m afraid we are so fundamentally opposed on the most basic elements of personal finance that nothing I say will register with you.

If, however, you have homeowner’s insurance, or–through some innocent lapse–need homeowner’s insurance and you just want some more information, welcome!

The basic principle of insurance is simple.  You bet against the insurance company that you or your property are going to get hurt.  If you’re right, you win whatever your policy limit is.  If you’re wrong, the insurance company cleans up with your monthly premium.  Insurance is gambling that something bad will happen to you. If you lose, you win!

Now, there are some things about homeowner’s insurance that you may not realize.

1.  Homeowner’s insurance will not protect you against a flood. For that you need flood insurance.  The easiest way to tell which policy covers water damage is to see if the water touched the ground before your house.  An overflowing river, or heavy rain that seeps through the ground and your foundation are both considered flooding.    On the other hand, hail breaking your windows and allowing the rain in or a broken pipe are both generally covered by your homeowner’s policy.

Do you need flood insurance?  I would say that, if you live on the coast below sea level, you should have flood insurance.  If you’re on a flood plain, you need flood insurance.   If you’re not sure, use the handy tool at http://www.floodsmart.gov to rate your risk and get an estimate on premium costs.   My home is in moderate-to-low risk of flooding, so full coverage starts at $120.

2.  You can negotiate an insurance claim. When you have an insurance adjuster inspecting your home after you file a claim, most of the time they will lowball you.   Generous adjusters don’t get brought in for the next round of claims.  If you know the replacement costs are higher than they are offering, or even if you aren’t sure, don’t sign!   Once you sign, you are locked into a contract with the insurance company.  Take your time and do your research. Get a contractor out to give you a damage estimate, if you can.

3.  Your deductible is too low. If you’ve built up an emergency fund, you can safely boost your deductible to a sizable percentage of that fund and save yourself a bunch of money.    When we got our emergency fund up to about $2000, we raised our deductible from $500 to $1000 and saved a couple of hundred dollars per year.   That change pays for itself every 2 years we don’t have a claim.  I absolutely wouldn’t recommend this if you don’t have the money to cover your deductible, but, if you do, it can be a great money-saver.

Bonus tip: If you get angry that your homeowner’s insurance doesn’t cover flooding, even if you haven’t had to deal with a flood, and you cancel your insurance out of spite, and you subsequently have a ton of hail damage, your insurance company won’t cover the crap that happened during the window where you weren’t their customer.

Are you one of the misguided masses who prefer to trust their home to fate?

Do you have an insurance horror story?

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