Live Real, Now

The no-pants guide to spending, saving, and thriving in the real world.

Search Results for: travel-expenses-why-i-splurge/slow-carb-diet-how-to-avoid-going-bat-crazy/ignore-your-budget/5-steps-to-save/budget-lesson-part-1/budget4/what-happens-when-you-save/budget-lesson-part-2/how-to-complain-the-squeaky-wheel-gets-the-grease/subscribe-by-email

Don’t Screw Future-You

Finance, Life

A conversation between me and my temporally displaced self.
Future Me: Excuse me, Jason?
Me: Yes?
FMe: <Slap!>
Me: May I ask what that was for?
FMe: Of course.
Me: What was that for, jerk?
FMe: That was payback for all of the hell you have put me through.
Me: What?!?  I’ve never even met you, before.
FMe: Of course you have.  I am future-you, and I’m sick of getting screwed by past-me, that is, you.
Me: Huh?
FMe: Listen close.  You’re not  the sharpest brick in the box and I don’t want to explain this twice.
Me: ???
FMe: A long time ago, when you first met our wife, you were dumb.
Me: I don’t appreciate….
FMe: Shut up.  I was dumb then, too.  Remember?  You…err…we bought a new truck, built an addition on our…err…your…err…whomever’s house, got married in the same year.  On top of many other expensive decisions.  Do your recall?
Me: Yes, I do.  So what?
FMe: If that wasn’t enough, you and your smoking-hot bride are still shopping like you’re rich. You drive a new car.  Your kids wear new clothes.  You’ve got a house full of new furniture.  How did you pay for all of that?
Me: Naturally, I charged it.  Zero payments, zero interest for a year!  Pretty smart, huh?
FMe: What happens in a year?
Me: I don’t know.  I’ve got a full year to figure that out.
FMe: <Slap!>  I’ll tell you what happens!  Future-you, that’s me, gets screwed!   Your raise didn’t come through.  You had a baby. The truck broke down.  Your wife took maternity leave.  A roommate moved out.  You took a loss in the stock market.  You didn’t plan!  You had no savings to cover any of those problems because you were too busy servicing debt to pay for your current life.
Me: How was I to know?
FMe: <Slap!>  Life happens!  You never know what is coming next.  You need to plan and save for what might happen.  Otherwise, you’ll just accumulate more debt to be serviced by yours-truly.  That is not acceptable.
Me:  So?  What are you going to do about it?
FMe: <Slap!>
Me: Really?  Again?
FMe: <Slap!>  I’m struggling to pay your debt. Your son starts college next year, but you’ve left me completely unable to help.  Your daughter wants to get married in a couple of years, but the Father-of-the-Bride can’t afford a tux.  My wife, your beatiful bride, wants a vacation that I can’t afford.   You’ve screwed me, dude.
Me: I’m sorry.  What can I do to fix it?
FMe: Buy me dinner, first.
Me: Huh?!?!?
FMe: Stop the excess spending. Spend less than you make, for a change.  No credit.
Me: None?
FMe: None.  Nada.  Zip.  Zilch.  Only spend what you can afford. Budget.  Pay off those nasty bills.  Don’t leave me hanging.
Me: So, what you’re saying is that, if I don’t have the money, I shouldn’t buy it?
FMe: Exactly.  That’s the path to wealth, freedom, and financial independence.  Live in the real world.
Me: Gee, thanks, Future-Me!  Now I know.
FMe: And knowing is half the battle.

What would your future-you have to say to you?

 

Carnivals

Finance

I’ve been a bit of a slacker when it comes to posting the carnivals I’ve been included in.   This is me playing catch-up.

Live Real, Now was included in five carnivals last week:

Prior to last week, I was included in:
Thanks to all of the hosts for including my posts and my apologies for not posting the links sooner.  If I missed you, please let me know.

Get More Out of Live Real, Now

There are so many ways you can read and interact with this site.

You can subscribe by RSS and get the posts in your favorite news reader.  I prefer Google Reader.

You can subscribe by email and get, not only the posts delivered to your inbox, but occasional giveaways and tidbits not available elsewhere.

You can ‘Like’ LRN on Facebook.   Facebook gets more use than Google.  It can’t hurt to see what you want where you want.

You can follow LRN on Twitter.   This comes with some nearly-instant interaction.

You can send me an email, telling me what you liked, what you didn’t like, or what you’d like to see more(or less) of.   I promise to reply to any email that isn’t purely spam.

Have a great week!

How to Save Money On Anything

Finance

Haggling
Haggling (Photo credit: pritzkerphoto.com)

There is a little-known secret to saving money on almost anything.  If you want to know what it is, please send a case of beer and a self-addressed, stamped envelope to my house.

No takers?

In that case, I will share the secret that has been passed down from father to son since the Mesopotamians landed the Santa Maria at Plymouth Rock.

Ready?

The secret is to…ask.

That’s right, just suck it up and say “Pretty Please”.

How does it work?

In the easiest version, you call up one of the companies you pay regularly and you say “How can I save some money?”

Allow me to give you some examples.

How to save money on insurance

Call up your insurance company and ask, “How can I save some money with you?”  You may be offered a multi-line discount if you let them insure your home and your car or you might be told to raise your deductible.  If you have a $1000 emergency fund, you can afford a $500 deductible.   They may recommend that you drop some coverages that you don’t need or they may ask you some questions that will allow them to lower your rate.  For many years, I lived 2 miles from work and got a discount for the low mileage.

How to save money on utilities

When you call your electric company to ask the magic question, they may offer to conduct a home energy audit to determine where you home is leaking energy.  If they try to charge you for the audit, remind them how long you’ve been a customer in good standing.

Another option they may offer is to install a remotely-triggered switch on your air-conditioner.  Around here, that switch is good for a 15% discount off of my bill in the summer.

How to save money on your cell phone

If you are out of a contract or near the end of your contract you have leverage.  Look up the best comparable deal from another company.  Then, call your cell phone provider, ask to be transferred to the retention department, then ask them to convince you to stay.  They will.

If you aren’t near the end of your contract, you can still call and ask.  If that doesn’t work, watch the mail and any emails from the company.  If they change the terms of your contract, you can get out of it without paying a penalty.  If you get that opportunity, call and ask for the retention department.

How to save money on credit cards

I am assuming you have a credit card with a balance that gets carried from month to month.

Credit card companies are competitive.  Find a competing deal and call your company.  Ask them to beat the deal.  If the competitor is offering 9%, ask for 8%.  If they refuse, call up the competitor.  Tell them you will transfer your balance over if they will waive the transfer fee.    A surprising number of companies will be happy to do so.

Most bills can be reduced in some way.  All you have to do is ask.

Have you had any luck pointing the shrink ray at your bills?

Enhanced by Zemanta

Negotiating 101

Finance

In the US, haggling is something that makes a lot of people twitch and wet their pants.  It’s too hard/scary/intimidating, so most of us just take whatever price is offered, with a smile.

A Chinese gilt bronze stand and statuette of t...
A Chinese gilt bronze stand and statuette of the historical buddha on a lion throne, from Northern China, dated to the Northern Wei Dynasty, c. 480 AD. (Photo credit: Wikipedia)

The truth is, you can negotiate in almost any situation.   Sure, big-box retailers with low-price goods–like Walmart or a grocery store–aren’t going to go for it, but a lot of other businesses will.  Did you know you can haggle at Best Buy?  It’s true, but only on the bigger ticket items.

You can also easily negotiate at place like these:

  • Credit card interest rates and annual fees
  • Luxury utilities like cable
  • Rent
  • Hotel rates
  • Airline tickets
  • Gym memberships

“Great”, you say.  “Anyone can do it?”, you say.  “But how, jerk?”

No need to call names, I’m getting to that part.

I am about to share the First Secret Lesson of Negotiating.   This secret has been passed down from father to son among the celibate Shaolin monks for generations.   Breaking the code of secrecy may be putting my life in danger, but I’m willing to do that for you, no matter the risk.

I rock like that.

Are you ready to be initiated into the secrets of the Ancient Masters?  When our first abbot, Buddhabhadra, first wandered into the Northern Wei Dynasty branch of Best Buy in 477 A.D., he discovered the phrase most likely to break price barriers.

Are you ready, Grasshopper?  This is the “Wax on, wax off” of effective negotiation.

When you are given a price, no matter what it is, say “Is that the best you can do?”

“This T.V. costs $7495.” “Is that the best you can do?”

“That comes to $56.95.” “Is that the best you can do?”

“$149,499 for the Ferrari.” “Is that the best you can do?”

“$12,000 for the kidney.” “Is that the best you can do?”

“Only $8.50 for this set of 10 tupperware lids that have been warped in the dishwasher.” “Is that the best you can do?”

“$50 an hour, honey.” “Is that the best you can do?”

“The salary for this position is $50,000 per year.” “Is that the best you can do?”

It is magical, it’s easy to remember, and it’s low stress.  This is a non-combative question.  The worst possible scenario involves the other side saying, “Yes, that is the best I can do.”  No sweat.

Negotiating Lesson 101.2:

After saying  “Is that the best you can do?”, shut up.   The other party gets to be the next person to say something.

Go out and practice this over the weekend.   Master the First Secret Lesson of Negotiating.  I’ll be fighting off Shaolin ninjas for sharing the ancient secrets.

 

Enhanced by Zemanta

How Refinancing Your Student Loans Can Save You Thousands

Finance

Students who graduated college in 2015 were said to have graduated with an estimated $35,000 in student loan debt. Of course, some students will have less and some more depending on what you did throughout your time in college. Either way, it is a lot of money and money that must be paid back whether you want to or not.

Student loan refinancing is an available option for many students and it will provide them with some of the relief they need financially. Did you know that refinancing your student loans can save you thousands of dollars? It’s okay if you didn’t – I will show you just how it can save you money and ease the strain on your budget.

Student Loan Refinancing: What the Heck Is It?

Before you can apply for refinancing, you need to understand what it is. When you refinance your student loan, your new lender will pay off your old loans and gives you a new loan with updated terms and rates.

Most student loan refinancing is done through a private lender, which means that there may be eligibility requirements that need to be met before you can actually go through with the refinancing.

How Can Refinancing Save Me Thousands?

There are a couple of different ways that refinancing can help save you thousands. First and foremost, you will receive a new interest rate. The rate itself will often vary depending on your situation, but usually falls somewhere between 2-5% for most students. The jump from a 6-8% interest rate to a 2-5% interest rate it immense. Let’s take a look.

For example, if you have a student loan balance of $25,000 at a 6.5% interest rate and your term is 10 years, you will pay a total of $9,065 in interest over the course of the term. Now, if we change the interest rate down to 3.5%, you will only pay $4,665 in interest payments over the course of the 10 years. That is a savings of $4,400!

The second way that you can save thousands is by adjusting the length of your payback period. Often times, the default is set at 10 years, but students often extend it out to 20 or 25 years. This will increase the amount you pay in the long run because you now need to pay interest over that extended period.

When you refinance your student loans, you are able to shorten the term of your loan, which means you pay thousands less because you do not have to continue to pay interest over the extended length of the loan.

Final Thoughts on Student Loan Refinancing

Student loan refinancing is a great option for students looking to destroy their debt, but it is not always an option for everyone. You do need to qualify, which means you need a good credit score or a cosigner with a good credit score. Refinancing your student loans can help save you thousands of dollars over time, so if you do have the option to do it, you should.

Daytrading Bitcoin and Cryptocurrency

Business

For the past 6 weeks, I’ve been playing with Bitcoin and Litecoin.

The bitcoin logo
The bitcoin logo (Photo credit: Wikipedia)

I can hear you from across the internet.   You’re asking, “What the hell is Bitcoin?”

I’m glad you asked.  It’s a cryptocurrency.

And now you know as much as you did before.

Cryptocurrencies are anonymous internet-based money.   You spend it just like money, though granted, there are fewer places that accept cryptocurrency.

The big name in cryptocurrency is Bitcoin.   In second place, trying to play silver to Bitcoin’s gold, is Litecoin.

So what do I mean by “playing with” Bitcoin and Litecoin?

I’ve been daytrading, which is generally a horrible idea…when you’re doing it with stocks.   Daytrading is gambling.  It’s the art of doing short-term flips on a stock.  You buy it today to sell tomorrow, hoping it goes up.   With stocks, I play a long game.  I buy and hold.   I buy a stock that I believe has long-term value, and I hold it for months or years.

That’s not the game I play with BTC and LTC.    I play a short game, rarely longer than a week.  When the coins are at a low price, I buy, then I immediately sell when they price is higher.   When it’s high, I short the coin, essentially selling coins I don’t own to trade back when the dollar-price is lower.   When I’m paying attention, I make money as the coins go up and I make money when the coins go down.

Why is this a good strategy for cryptocoins?

Because they are extremely volatile.   As I’m writing this, Litecoin has had a 10% swing today, from $4.03 at midnight, to a current price of $4.16, with a peak of $4.36.  On Thursday, it was floating around $4.60 all day.   In the last 30 days, it’s been as high as $8.65 and as low as $3.18.  Go back to May and the low is $1.29.

Traditional wisdom says that volatile investments are bad.   In traditional investments, that’s true.  But when a stock is this volatile, nearly every bet is a good one, as long as you’re patient.   If I buy LTC at $4.20 and it drops to $3.90, that’s bad.  I lost money.   But, if I wait a couple of days, it’s almost definitely going to climb back up.   Except for large-scale sell-offs, it’s usually going to bounce 10% in a given day.     You can buy in the dips and sell at the peaks all day long, turning 5-10% profits with each time.   If you’re brave or stupid, you can short at the peaks and make 5-10% on every downturn, too.

For example, today started at $4.03.  Buy.  Today’s peak was at 7:15AM at $4.36.   When the graphs start swinging down, sell short.   Two hours later, it bottomed out at $4.20 for a 4% return.   Then, buy while it’s low.  Ninety minutes later, it was at $4.31, another 3% return.  Short it again, then close the position at 7PM for $4.13.

Let’s walk through this.

Buy $10 worth of Litecoin at midnight, sell at 7:15AM.    You have $10.81.

Turn around and short the same amount until 9AM.   You have $11.22.

Buy that same amount to sell at 10:30AM.   You have $11.51.

Short it again before closing out at 7PM and going to bed.  You have 12.01.   That’s almost a 12% return in 12 hours, assuming you guessed all of the major swings right.  If you guessed some wrong, you’d just have to wait until the next time it swung your way, and it will.   Did I do that well?  No.  I bought in at $4.008 yesterday and sold today-once-for $4.32.   I will not complain at an 8% return over 12 hours.

The only exception to that is during major buying and selling streaks.  On July 5th, a major buying run started.  By July 8th, the price was run up to $8.65.   A huge sell-off happened then, dropping the price to $4.36 on July 9th.

If you bought at $8.65 you’d be hosed.

The lesson there is, don’t buy at the peak.   I’ve had a number of trades that could have been huge scores if I would have held onto them longer, but I’m a wimp.   I sell as soon as I’ve gotten enough money to make me smile, then I refuse to regret the decision.   That also prevents me from holding on to my positions too long.  I avoid all of the crashes that way.  That giant buy-in happened while I was on vacation, so I wasn’t paying attention.  When I’m not paying attention, I leave my money in US dollars, so there’s no risk…and also no reward.

Also, an important caveat:  while I am learning the cryptocurrency ropes, I’m playing with a non-critical amount of money.  I put $75 into the exchange in June.   Not enough to cry over losing, but enough I can play with all of the different investment options.  As I said, I’m a wimp, although a 30% return in 7 weeks is pretty sweet.

Next up, I’ll show you how to get started investing/gambling with Bitcoin.