Posts
Woo Hoo! Good news everybody, I've had my first guest post published today. My Life ROI published a post I wrote, How to get Ahead of the Game, during his out of country vacation. It's simply some advice for current high school students that I wish someone had told me ten years ago.
Of course, there are other financial columns out there that I didn't write. They might not be as clever, witty, or entertaining as what you're used to here, but they are still worth reading. Some of the more thought-provoking pieces I've read this week:
New Study on Emergency Fund Importance - Flexo on Consumerism Commentary was one of several commentators to note the recent study by the Consumer Federation of American. The primary conclusion of the study? That having an emergency fund leads to greater mental security. This is an excellent lesson to be reinforced, and does have an impact on how you should rank your financial priorities, in this case, favoring putting savings aside for a rainy day over paying down debts without a cushion, for example.
Protect Your Home from Bumping and Bump Keys - Clever Dude has posted a video taken from a local news channel about burgulars 'bumping' keys in locks to force open doors. An interesting video, and something to think about when shopping for locks. You have to stay ahead of the bad guys in the home security arms race.
Learning to Love Generics - Stephanie makes the point that genericfood stuffs will save you money and tend to be just as delicious as brand names. She also teases us with some delicious looking cookies but refuses to share them. Boo!
20 Free Online Finance Courses - A listing of different online sources of information from Generation X Finance. I'll admit, I don't usually follow this blog, but I'm always looking for more good sources of information. Which means this is a doubly useful post, letting me know about plenty good financial information online, as well as cluing me in to another good blogger.
Showing posts with label Thoughtful Thursday. Show all posts
Showing posts with label Thoughtful Thursday. Show all posts
Thursday, March 19, 2009
Thursday, March 12, 2009
Thoughtful Thursday: The Government Is Not Giving You Money
Alas, it seems that everywhere you turn, someone is trying to rip you off. With the recently passed stimulus bill, the scammers, conners, and other rip-off artists have a whole new avenue to abuse. Mrs. Micah reminds us all that the government is NOT going to be sending you a check. (This time around; maybe if we need yet another stimulus in a few months or so...) Be vigilante, be intelligent, and be careful; the best person to watch out for your money is YOU. (Or possibly your mom; but even she can't watch out for you forever.)
Some of the other good posts I've seen in the past week:
How to File Your Taxes for a Recent Graduate - MyLifeROI writes about some of the basics of filing your taxes. He covers several different options, from filing yourself to using professional services, covering the good and bad about each. Personally, given my relatively simple financial situation and low funds, I opted for filing a paper return on my own, but if you have a more complex situation (investments, owning your own business, etc.) you should probably consider professional help.
College Money Tip #12: Free Stuff, Part I - Stephanie of Poorer than You notes several free services that available. She focuses on several budgeting tools, like mint and wesabe as well as some other useful sites. She also mentions NetworthIQ, which I'm particularly interested in (don't be surprised if a little NetworthIQ icon shows up on the side of my blog; as you might be able to tell from my Saturday posts, I like to track how much money I have). Plus, the Part I indicates there will be a Part II coming soon.
I could have kept that $20 (Ethical Quandry) - We heard a story of CleverDude returning money to a confused couple. He raises an interesting ethical question, about what situations we attempt to return money lost by other people, and what lengths we go to do so. Personally, I respect him for making the effort to return the money; ethics are what you do when nobody is forcing you.
Save Money on Television - Lazy Man and Money gives some interesting suggestions on how to save money on your television. The first one I particularly liked, spending more money on your television to save money. Although it's counter intuitive, if you can cut down on the expenses for other entertainment (like going out to the movies) by paying a bit more for television, you'll ultimately save money.
Some of the other good posts I've seen in the past week:
How to File Your Taxes for a Recent Graduate - MyLifeROI writes about some of the basics of filing your taxes. He covers several different options, from filing yourself to using professional services, covering the good and bad about each. Personally, given my relatively simple financial situation and low funds, I opted for filing a paper return on my own, but if you have a more complex situation (investments, owning your own business, etc.) you should probably consider professional help.
College Money Tip #12: Free Stuff, Part I - Stephanie of Poorer than You notes several free services that available. She focuses on several budgeting tools, like mint and wesabe as well as some other useful sites. She also mentions NetworthIQ, which I'm particularly interested in (don't be surprised if a little NetworthIQ icon shows up on the side of my blog; as you might be able to tell from my Saturday posts, I like to track how much money I have). Plus, the Part I indicates there will be a Part II coming soon.
I could have kept that $20 (Ethical Quandry) - We heard a story of CleverDude returning money to a confused couple. He raises an interesting ethical question, about what situations we attempt to return money lost by other people, and what lengths we go to do so. Personally, I respect him for making the effort to return the money; ethics are what you do when nobody is forcing you.
Save Money on Television - Lazy Man and Money gives some interesting suggestions on how to save money on your television. The first one I particularly liked, spending more money on your television to save money. Although it's counter intuitive, if you can cut down on the expenses for other entertainment (like going out to the movies) by paying a bit more for television, you'll ultimately save money.
Thursday, February 26, 2009
Thoughtful Thursday: Cats as Stock Analysts?
J.D. of Get Rich Slowly made me laugh by posting about cats as stock market analysts. Honestly, it's one of the better (or at least, more entertaining) suggestions of how to reform Wall Street that I've heard lately. At the very least, it would make for more interesting shows on CNBC:
"Now, Mittens, if the Dow is going up, bat the rubber mouse; if it's going down, pounce on the ball of yarn."
But that's not the only thing that made me think this week:
Young People in Debt - Studenomics writes about several of the societal forces that lead young people to get into debt, specifically credit card debt. He touched on convenience, media pressure, and the feeling many young people have that they need to reward themselves. I would add in some of the practices of the credit card companies (only requiring you to pay a tiny amount of the total debt each month) as a major contributing factor.
10 Things You Must Do After College - My Life ROI (a relatively new blogger, whom I have begun to follow) gives several useful actions you should take while you're young, such as starting a Roth IRA, building your network, and start a rainy day fund. All very reasonable actions to take, and my only quibble is that you should be doing most of these things during college, if not before. If you're old enough to hold a job and you haven't started checking things off this list, what are you waiting for?
Three Financial Lessons Learned the Hard Way - The current market conditions are proving a harsh and brutal teacher, as Lazy Man and his wife are discovering. One big thing I took away from his story is the importance of establishing your risk tolerance well before investing, and being willing to follow it, even in bad times. It's easy to say you'll be able to handle a drop in your portfolio's worth, but much harder to actually resist pulling out when it happens to you (as I can certainly attest).
"Now, Mittens, if the Dow is going up, bat the rubber mouse; if it's going down, pounce on the ball of yarn."
But that's not the only thing that made me think this week:
Young People in Debt - Studenomics writes about several of the societal forces that lead young people to get into debt, specifically credit card debt. He touched on convenience, media pressure, and the feeling many young people have that they need to reward themselves. I would add in some of the practices of the credit card companies (only requiring you to pay a tiny amount of the total debt each month) as a major contributing factor.
10 Things You Must Do After College - My Life ROI (a relatively new blogger, whom I have begun to follow) gives several useful actions you should take while you're young, such as starting a Roth IRA, building your network, and start a rainy day fund. All very reasonable actions to take, and my only quibble is that you should be doing most of these things during college, if not before. If you're old enough to hold a job and you haven't started checking things off this list, what are you waiting for?
Three Financial Lessons Learned the Hard Way - The current market conditions are proving a harsh and brutal teacher, as Lazy Man and his wife are discovering. One big thing I took away from his story is the importance of establishing your risk tolerance well before investing, and being willing to follow it, even in bad times. It's easy to say you'll be able to handle a drop in your portfolio's worth, but much harder to actually resist pulling out when it happens to you (as I can certainly attest).
The Magic of No-Spend Days - Mrs. Micah, as part of her Where's My Money Going? Month, writes about the joy and awe of days when you don't spend any money. This is an excellent concept; one of the greatest pleasures I had when I kept a written log of my credit card purchases was seeing how long I could stretch between using my cards. Which reminds me, I need to start using my credit book again...
Lending Club Experiment: Starting Out - Stephanie of Poorer Than You writes about her first steps into using Lending Club, a Peer to Peer lending website, allowing people to make small loans to strangers (or vice versa) and collect interest for their troubles. It's a really, REALLY interesting concept, and I'm planning on taking her up on her offer. (The offer of a getting a referral and, as a result, an added $50 bonus, that is).
101 Tax Deductions for Bloggers and Freelancers - Paul Michael on Wise Bread lists a truly impressive amount of blogging related tax deductions. I had no idea about most of these; it doesn't do me much good for this year's tax return, but some of these suggestions might help me out next year.
The Giving Pocket - Trent of The Simple Dollar relays his tendency to carry extra money in his wallet, in order to help people in desperate need (not a bad idea). He tells a story about helping a child he found eating out of a garbage can by leaving a meal from McDonald's by a dumpster. I just have no words for this; God bless anyone who helps others in this fashion.
Lending Club Experiment: Starting Out - Stephanie of Poorer Than You writes about her first steps into using Lending Club, a Peer to Peer lending website, allowing people to make small loans to strangers (or vice versa) and collect interest for their troubles. It's a really, REALLY interesting concept, and I'm planning on taking her up on her offer. (The offer of a getting a referral and, as a result, an added $50 bonus, that is).
101 Tax Deductions for Bloggers and Freelancers - Paul Michael on Wise Bread lists a truly impressive amount of blogging related tax deductions. I had no idea about most of these; it doesn't do me much good for this year's tax return, but some of these suggestions might help me out next year.
The Giving Pocket - Trent of The Simple Dollar relays his tendency to carry extra money in his wallet, in order to help people in desperate need (not a bad idea). He tells a story about helping a child he found eating out of a garbage can by leaving a meal from McDonald's by a dumpster. I just have no words for this; God bless anyone who helps others in this fashion.
Thursday, February 19, 2009
Thoughtful Thursday: Tax Time
It's that time of year again, when a young man's fancy turns to thoughts of... taxes. Yes, the only certain thing in life (besides death, of course) is the inevitable pinch of taxes, whether on our income, on our sales, or on our own heads (the per capita taxes). And almost as certain is attempts by tax payers to cut down on what they owe. Fortunately, there are plenty of resources out there for the diligent tax cutters; one particularly good example is that J.D. of Get Rich Slowly wrote a post about Bankrate's 2009 Tax Guide.
There's so much information there, it's going to take a day or so just to get through it all. I usually just take the standard deduction when filing my taxes; since I live at home, don't have my own business, and until last year, wasn't doing any investing, there didn't seem to be much I could do to get a bigger deduction. This year, though, I'm going to attempt to itemize, and see if that method will yield a higher refund.
Onto some other interesting links:
Real Estate: Asset or Liability? - Mighty Bargain Hunter takes a look at the difference between the financial community's definition of an asset (something that is owned and has value) and Robert Kiyosaki's recasting (as asset is something the brings in money).
My Thoughts: While both definitions are good points to keep in mind, attempts to redefine a word tend to lead to confusion. It's better to think of Kiyosaki-style assets by a different name, like 'passive income sources,' and understand the mindset behind thinking of them as assets. Particularly during tax time, knowing what the IRS considers an asset is important, however much you might disagree with their definition.
Investing with Minimal Risk - Trent at The Simple Dollar answers a reader's question about ways to invest without the chance of losing the investment (even if it means very low returns). He recommends investing in yourself and becoming self-sufficient, as well as putting your money in Treasury notes and high-yield savings accounts.
My Thoughts: I think it's not generally a good idea to focus on capital preservation to such an extent that you give up all chance of growth; Treasury notes and high-yield accounts will barely be able to keep up with inflation. Still, better a steady hand with low yields than shooting for the moon and pulling out after your investments have decreased in value. I also recommended investing in a stable value or money market fund via a 401(k); if your company gives you a match on your contributions, it's about the only safe way to get a 100% return on your money.
How to Save Money on Cell Phone Insurance - Cody Hebden writes a guest post on Queercents, relaying an interesting way to get around high-cost, high-deductible insurance plans on personal items like cell phones and laptops. The method involves taking out a “inland marine policy” for the replacement costs of the item, whether as a separate policy or as a rider on an existing home policy.
My Thoughts: It sounds like a really interesting, and frugal, method of cutting down on replacement costs for personal electronics. I'm going to look into it a bit more, though, as the math described seems to favor the policy holder way too much. (The complete cost of replacement insurance for a $400 iPhone? $35 a year; which enables you to be fully reimbursed should the iPhone be lost, damaged or stolen. I think one (or more) of these events is quite likely to happen within the 12 years it would take the insurer to recoup the expense of the replacement coss, so I'm a bit suspicious about these policies...)
How to earn an extra $1000 - Studenomics is currently taking a short vacation, but before he left, he wrote a post about how earned some money for the trip. His methods included dividends, blogging proceeds, selling some of your stuff on eBay and reselling tickets for popular events.
My Thoughts: It's a good list, with plenty of useful suggestions (although, as mentioned by others in his comment section, you have to be careful and aware of local laws if you are trying to buy and resell tickets, as you may end up pegged for a scalper). Most require a significant amount of time to set-up, though, so you shouldn't rely on them for money to make a last minute trip.
Top 6 Reasons High School Students Think You Should Invest - Jeff Ross of GoodFinancialCents lists reasons students gave for investing at a local high school . Most are forward thinking (retirement, college expenses), a few are more straight forward (making money) and at least one I hadn't even considered (bragging rights; which are few and far between in this market).
My Thoughts: I'm impressed with some of the reasons that came up during Jeff's talks with these kids, as well with the kids themselves for thinking about their future like this. (How many 17-year olds do you know who are thinking about retirement, even in passing?) I just wish I had more of this sort of financial exposure when I was a high-school student, so I could have gotten an earlier jump on controlling my money and planning for the future.
There's so much information there, it's going to take a day or so just to get through it all. I usually just take the standard deduction when filing my taxes; since I live at home, don't have my own business, and until last year, wasn't doing any investing, there didn't seem to be much I could do to get a bigger deduction. This year, though, I'm going to attempt to itemize, and see if that method will yield a higher refund.
Onto some other interesting links:
Real Estate: Asset or Liability? - Mighty Bargain Hunter takes a look at the difference between the financial community's definition of an asset (something that is owned and has value) and Robert Kiyosaki's recasting (as asset is something the brings in money).
My Thoughts: While both definitions are good points to keep in mind, attempts to redefine a word tend to lead to confusion. It's better to think of Kiyosaki-style assets by a different name, like 'passive income sources,' and understand the mindset behind thinking of them as assets. Particularly during tax time, knowing what the IRS considers an asset is important, however much you might disagree with their definition.
Investing with Minimal Risk - Trent at The Simple Dollar answers a reader's question about ways to invest without the chance of losing the investment (even if it means very low returns). He recommends investing in yourself and becoming self-sufficient, as well as putting your money in Treasury notes and high-yield savings accounts.
My Thoughts: I think it's not generally a good idea to focus on capital preservation to such an extent that you give up all chance of growth; Treasury notes and high-yield accounts will barely be able to keep up with inflation. Still, better a steady hand with low yields than shooting for the moon and pulling out after your investments have decreased in value. I also recommended investing in a stable value or money market fund via a 401(k); if your company gives you a match on your contributions, it's about the only safe way to get a 100% return on your money.
How to Save Money on Cell Phone Insurance - Cody Hebden writes a guest post on Queercents, relaying an interesting way to get around high-cost, high-deductible insurance plans on personal items like cell phones and laptops. The method involves taking out a “inland marine policy” for the replacement costs of the item, whether as a separate policy or as a rider on an existing home policy.
My Thoughts: It sounds like a really interesting, and frugal, method of cutting down on replacement costs for personal electronics. I'm going to look into it a bit more, though, as the math described seems to favor the policy holder way too much. (The complete cost of replacement insurance for a $400 iPhone? $35 a year; which enables you to be fully reimbursed should the iPhone be lost, damaged or stolen. I think one (or more) of these events is quite likely to happen within the 12 years it would take the insurer to recoup the expense of the replacement coss, so I'm a bit suspicious about these policies...)
How to earn an extra $1000 - Studenomics is currently taking a short vacation, but before he left, he wrote a post about how earned some money for the trip. His methods included dividends, blogging proceeds, selling some of your stuff on eBay and reselling tickets for popular events.
My Thoughts: It's a good list, with plenty of useful suggestions (although, as mentioned by others in his comment section, you have to be careful and aware of local laws if you are trying to buy and resell tickets, as you may end up pegged for a scalper). Most require a significant amount of time to set-up, though, so you shouldn't rely on them for money to make a last minute trip.
Top 6 Reasons High School Students Think You Should Invest - Jeff Ross of GoodFinancialCents lists reasons students gave for investing at a local high school . Most are forward thinking (retirement, college expenses), a few are more straight forward (making money) and at least one I hadn't even considered (bragging rights; which are few and far between in this market).
My Thoughts: I'm impressed with some of the reasons that came up during Jeff's talks with these kids, as well with the kids themselves for thinking about their future like this. (How many 17-year olds do you know who are thinking about retirement, even in passing?) I just wish I had more of this sort of financial exposure when I was a high-school student, so I could have gotten an earlier jump on controlling my money and planning for the future.
Thursday, February 12, 2009
Thoughtful Thursday: What Next?
One of the problems with being under-employed, besides the obvious problem of 'not having a regular, full-time job', is that you frequently wonder what's next in your life. Do I look for another job? Do I go back to school for a master's degree? Do I try to get into a professional program like medicine or pharmacy? The confusion is sometimes overwhelming.
Of course, there are other bloggers who engage in these sorts of soul-searching, and here's a few of the blogs that have made me think lately:
What Next? by J.D. An excellent article about what to do when you've become financially sound and moved past the stage of your life where you are simply trying to apply the basics of finance advice (spend less than you earn, invest regularly, concentrate on the long term and use tax-advantaged retirement vehicles) and wonder, what do I do now? He notes that there isn't much main-stream literature out there for this stage of your life, and is setting out to learn all he can (and share what he learns with us).
My Thoughts: Once you've gotten the basics of saving and investing down well enough that you no longer worry about your financial future, there are many possibilities for how you spend the rest of your life. These range from the traditional model of retirement (years of rest and relaxation) to philanthropic goals and giving to our children. With such a wide-range of possible goals, it's hard to find appropriate advice on what is best for you. Good luck to J.D. in his quest to find out what's next.
It's Not My Fault... by Studenomics Considers a question that frequently arises when talking about finances and fiscal responsibility: are we responsible for our financial decisions, even if our parents didn't teach how to budget and use money properly?
My Thoughts: Certainly your parents have an immense influence on your life, including your finances. But, ultimately, you are your own person, and can go above and beyond what your parents taught you, and learn and act for yourself. The sooner you can accept this fact, the easier it will be to take control of your own life.
I Will Not Be Able to Afford My Student Loans by Stephanie She's facing larger than expected payments on her student loans, and is modifying her plans for her post-college life as a result.
My Thoughts: I really feel for Stephanie; currently, my only outstanding debt is my student loans, and making the necessary payments to pay down the debt is a persistent worry. The only plus is that Stephanie realized her financial situation before she found herself unable to meet all her needs; she is already making plans to accommodate her situation. Good luck, Stephanie!
How are we not frugal by Clever Dude One of the rarest of PF blog topics, an admission of how he is not always the most frugal person in his life. Includes such examples as keeping his thermostat at 72, eating out regularly, and getting his and his wife's work clothes dry cleaned frequently.
My Thoughts: It's always nice to get proof that PF bloggers are real people, too. Everyone has ways in which they're not fully thrifty; the key is to limit your indulgences, and be sure to stay on track with the rest of your savings.
Of course, there are other bloggers who engage in these sorts of soul-searching, and here's a few of the blogs that have made me think lately:
What Next? by J.D. An excellent article about what to do when you've become financially sound and moved past the stage of your life where you are simply trying to apply the basics of finance advice (spend less than you earn, invest regularly, concentrate on the long term and use tax-advantaged retirement vehicles) and wonder, what do I do now? He notes that there isn't much main-stream literature out there for this stage of your life, and is setting out to learn all he can (and share what he learns with us).
My Thoughts: Once you've gotten the basics of saving and investing down well enough that you no longer worry about your financial future, there are many possibilities for how you spend the rest of your life. These range from the traditional model of retirement (years of rest and relaxation) to philanthropic goals and giving to our children. With such a wide-range of possible goals, it's hard to find appropriate advice on what is best for you. Good luck to J.D. in his quest to find out what's next.
It's Not My Fault... by Studenomics Considers a question that frequently arises when talking about finances and fiscal responsibility: are we responsible for our financial decisions, even if our parents didn't teach how to budget and use money properly?
My Thoughts: Certainly your parents have an immense influence on your life, including your finances. But, ultimately, you are your own person, and can go above and beyond what your parents taught you, and learn and act for yourself. The sooner you can accept this fact, the easier it will be to take control of your own life.
I Will Not Be Able to Afford My Student Loans by Stephanie She's facing larger than expected payments on her student loans, and is modifying her plans for her post-college life as a result.
My Thoughts: I really feel for Stephanie; currently, my only outstanding debt is my student loans, and making the necessary payments to pay down the debt is a persistent worry. The only plus is that Stephanie realized her financial situation before she found herself unable to meet all her needs; she is already making plans to accommodate her situation. Good luck, Stephanie!
How are we not frugal by Clever Dude One of the rarest of PF blog topics, an admission of how he is not always the most frugal person in his life. Includes such examples as keeping his thermostat at 72, eating out regularly, and getting his and his wife's work clothes dry cleaned frequently.
My Thoughts: It's always nice to get proof that PF bloggers are real people, too. Everyone has ways in which they're not fully thrifty; the key is to limit your indulgences, and be sure to stay on track with the rest of your savings.
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