Festival of Frugality: 92nd Edition
Posted on September 19, 2007
The 92nd Edition of the Festival of Frugality is out at No Credit Needed. Lots of relevant content this week spanning numerous categories of personal finance. Take a look at some of the highlights that caught my attention:
- How To Save On Realtor Fees. Always negotiate realtor fees. I did not fully understand this concept and did not do this with when buying my first house. Sometimes the market dictates if it is possible to negotiate, but in this slow housing market I will definitely do it next time.
- Cancel Blockbuster Online In Favor Of… I have heard about RedBox but have not seen them in my area yet. I saw a machine at a grocery store that was very similar. An interesting concept, but I don’t think it is something I will use due to the fact you still have to go to the store to return it which is the reason I hated Blockbuster stores. Netflix has a very cheap plan that is like $4.99 a month and you get up to 2 rentals a month, up to 1 movie out at a time. So that equals out to $2.50 per movie, for me the convenience would be worth it. I still get the traditional three movies out at a time and we pay like $17 for the convenience. I love Netflix though and probably will not trade it out at any point until it all goes digital.
- Is my Materialism Out of Control? An introspective look into personal spending. Definitely worth the read.
- Money Saving Monday Tip #9 - Use Craigslist. Comprehensive look at how to make the most out of posting an ad on Craigslist. I have used Craigslist for everything from selling items to finding a roommate and have done well across the board.
» Filed Under Festival of Frugality | 3 Comments
Carnival of Personal Finance: 118th Edition
Posted on September 18, 2007
The 118th edition of the Carnival of Personal Finance was released by Money, Matter, and More Musings and has tons of great content. Check out some of the posts that caught my attention:
- A Look at Salary Data (from an MBA perspective). Interesting and well researched numbers documenting salary in relation to gaining an MBA. I am heavily weighing my options with going back for an MBA and articles like this always appeal to me.
- The Cost of Fear. Sometimes just asking can make all the difference in the world.
- Why Zero Down is a Big Fat Zero for You. I see these zero down advertisements all the time and often times it can be tempting. My thought process is if you do one zero percent down offer, then it’s so easy to just do them all because from a monthly payment perspective it looks so much more affordable than as a whole.
- Are Annual Fees Worth The Rewards. There is one instance where annual fees are worth the rewards and that is for a business traveler that uses the product/company consistently. The first commenter in the post captures this as well. I was a very frequent traveler and had a Delta Gold SkyMiles card that I used consistently to purchase tickets, hotel, rooms, and rental cars. I earned double rewards very frequently and racked up a ton of miles. I would have never got even a fraction of the rewards with a basic card due to all the double and tripling of points. With my new job I rarely travel, and as a result have canceled all the annual fee cards because they are no longer worth the cost.
» Filed Under Carnival of Personal Finance | Leave a Comment
Whirlwind Trip To Chicago
Posted on September 16, 2007
Went to Chicago on a quick weekend trip for a friend of the family’s wedding. Having not been there since I was a very young kid it was interesting checking out the sites on a really quick tour of the city. Definitely looking forward to spending some more time there and checking out the sites more in depth. My Dad and I hit Wrigley Field, Lincoln Park, Marshall Fields (now Macy’s), and other downtown attractions all in the span of about 8 hours. Worked out well getting a feel for the city and the weather was perfect. Check out a few of the pictures: Read more
» Filed Under Extra | 1 Comment
Prepayment Penalty On Mortgages
Posted on September 14, 2007
There are certain times when you come across blatantly obvious unethical tactics used by corporate America to squeeze out more profit by misleading consumers. One of the most sinister tactics of the subprime loan industry was the burying of a prepayment penalty in the mass of documents signed at a house closing. FreddieMac describes a prepayment penalty as “an option that requires you to pay a penalty or fee if all or most of loan amount is repaid within a certain time period, generally ranging from 2 to 5 years from the start of the loan.”
Anyone that has bought a house knows that a closing can be overwhelming, confusing, and always rushed. Dozens upon dozens of papers are placed in front of you to sign and even if reading each one might be possible, fully understanding the ramifications of each page is very difficult, if not impossible for the average consumer. The prepayment penalties essentially made it impossible for home owners to get out of a mortgage early without taking a huge hit financially.
Federal (Senator Dodd) and some state governments are beginning to introduce legislation to curb the predatory lending tactics to include eliminating prepayment penalties.
The NY Times recently documented examples of the trials and tribulations home owners with interest rates skyrocketing needing to sell their homes unable to get out of the mortgage.
» Filed Under Loans, Debt, Real Estate, Credit Report, Unexpected Expenses | 1 Comment
6 Small Businesses I Should Have Started In College
Posted on September 13, 2007
In college I had a lot of free time. I was one of the lucky ones that after serving four years in the Marines received the GI Bill to go to college. It was enough money that by going to a state school I could live very comfortably off the money. The free time was great, and I did work a few odd jobs off and on. I lifeguarded one summer, refereed high school basketball games, and did a few other odd jobs when the occasion presented itself. Nothing too time consuming though and definitely nothing in Corporate America, at least until late my senior year when I realized I probably should get an internship so I can have a job waiting for me when I graduated. Sometimes I reflect on the college years when I had the opportunity and time to do pretty much whatever I wanted and think I should have looked into starting one of these very small businesses just for the experience of it:
- Hot dog stand. My girlfriend hates that I still entertain the notion of doing this sometime. I think it would be pretty cool to set up at football games, carnivals, or late night outside the clubs and see how I could do. I priced out the hot dog stands and equipment and there is a somewhat sizable amount of overhead to get started.
- Landscaping business. I mowed yards in middle school and early high school and made a few dollars doing this. It is nice being able to set your schedule, but in Florida it is killer hot.
- Cleaning service. We have a commercial service that comes in and cleans our office at work and it has to be one of the easiest contracts. Our office is very clean to begin with and all they do is empty the garbage and maybe vacuum once a month. Either way I can never tell if it has been vacuumed or not.
- Vending business. A little tough to break into but has a lot of potential.
- Lunch box catering business. At a lot of workplaces I see people going out to lunch spending $5-$10 each day so they are already spending the money. There are services that will provide a good, healthy lunch delivered to your workplace each day. Does require some early morning work getting everything ready, as long as you don’t take on too many customers it could be a good source of income.
- Pedicab driver. These just got big in Orlando about four years ago and have taken off since then, annoying car drivers to no end. The pedicab drivers rent the bikes each night from an owner/vendor who sells advertising spots on the bike. The pedicab driver keeps all the tips and the owner keeps the advertising profits. You can find these bikes for sale used all the time (craigslist/ebay). If I were a freshman going into college I would save up and buy one of the bikes, ride it each night downtown, and bank off the tips while staying in shape riding people around for a few hours. Friday and/or Saturday night alone would pay for a lot of textbooks.
» Filed Under Entrepreneurship, Income | 4 Comments
HOW TO: Earn $450 In 15 Minutes
Posted on September 12, 2007
Credit card bonuses are becoming bigger than ever. With some organization and a little understanding of the system it can be pretty simple to gain a decent amount of gift cards or cash. These rewards are a lot better than that T-shirt you usually get at a college or pro sports game. Keep in mind that if you are planning to use your credit for a major purchase like a home soon you may want to wait until after the purchase before apply for a few new cards. Here is a way to get $450 from credit card introductory offers:
American Express Business Gold Rewards Card
What you get: 25,000 bonus points equating to a $250 gift card at many major retailers or a $125 credit on your statement.
Annual Fee: Waived for the first year and then $125 after that.
Extras: Car Rental Loss and Damage Insurance, Return Protection, Travel Accident Insurance Policy, No pre-set spending limit
Note: Any one can apply for this card, not just businesses.
What you get: $50 jump start
Annual Fee: Waived for the first year and $35 after that.
Extras: The Savings AcceleratorSM Plan contributes 1% of eligible purchases into an FDIC-insured High-Yield Savings Account in your name.
The Knot Credit Card from American Express
What you get: $50 gift card
Annual Fee: None
Extras: Exclusive Welcome Gift: Plan every detail of your wedding with The Knot Wedding Planning Kit, including The Knot wedding binder, where you can manage wedding ideas, budgets, guest lists, to-do’s and more.
Starwood Preferred Guest Credit Card from American Express
What you get: $10,000 points or $100 in gift cards
Annual Fee: First year waived and $45 after that.
Extras: Earn one Starpoint for every dollar of eligible spending and double Starpoints at participating Starwood properties and retail outlets.
Men used to their free business cards may actually be over-using their credit card. To apply for a credit card, you don’t need to show much documents, but to get out of a tiff involving you card, you may be force to do a lot more. This is why banking people favor insurance quote before the actual deal and this is why card consolidation is not a good debt solution at all.
» Filed Under Credit Cards, How To | Leave a Comment
Financial Pressures Of What Could Happen
Posted on September 11, 2007
In many ways, the financial anxieties expressed by the middle class are more about the threat of what could be rather than what is, reports CNNMoney.com.
“Most people are fine. Most are doing better,” Jacobs said. “But the potential that the sky could fall feels a lot more real than it was in the past because it is.”
Observe these specific notes from the article:
“The median income in the United States is $46,326. But that is dragged down by young adults and retirees. ThirdWay, a centrist think tank, looked at the numbers for those households headed by someone of working age, 25 to 59.”
Median Income: $61,629
With two wage earners: $81,265
Percentage making $100,000-plus: 24%
» Filed Under Net Worth, Income | Leave a Comment
11 Money Tips For College Students
Posted on September 10, 2007
It’s September again and time for the fall semester to start back up, and yet again it makes me realize I have only been out of college for three years now. It seems like so much longer. Working for two small growth companies so much changes and evolves in a year, both for the company and individually, and it has created tons of experiences and memories. Staying up all night fixing technical issues, last minute plane flights to help calm troubled clients, and learning the ropes of junior management have all attributed to an at times intense three years. However, thinking back on my college years the way I handled money then and now have become vastly different. I handled some money issues pretty well back then and others served as valuable lessons in which I learned from my mistakes. Here are ten money tips I learned from my college years:
- Use credit cards with extreme caution. This has to be number one. Credit cards are marketed so heavily to college students that it is inevitable that most college students will apply and get approved for one sooner or later. Never in my life was credit so easily available and the temptation to spend so high. My friends and I were going out all the time, and using credit cards was a way of life for some to sustain that lifestyle. Try and get a second job or skip one of the nights going out to ensure you are spending in line with what you have. It is never a good sign to get into a habit of using the credit card to float yourself.
- Organize your expenses. Track your expenses and try to understand early on where your money is going to be spent. Break this down by semester for simplicity.
- Track your income. Know where your money is coming in from. This may include part time work, parents, scholarships, work study, or grants. Try to leave student loans out of this category and treat them more like a loan than an income. Even though it may not feel like it at the time, they will have to be paid back.
- Attempt a budget. Budgets can be a pain, but your expenses can be complex during this time as everything relating to incoming money is irregular. Most people do not have a steady monthly income but rather have savings, student loans, or scholarships paying at specific intervals. Document all income and expenses ensuring you know what is coming in and going out. It can be very easy to let a ton of money go out, not completely understanding what is coming in.
- Save. Almost no one can save while in college because of the high expenses, however saving even a small portion would help make it a habit as well as ensure you have a little something to help if an emergency does arise. Start small. Try just a few dollars each paycheck from your part time job into a separate savings account.
- Get a decent bike. Most college campuses are pedestrian and bike friendly due to the high density of people. Get a bike that is good enough to last you the four (hopefully not five) years for your undergrad. Make sure to lock it up. Theft is incredibly high on and around college campuses.
- Cook at least sometimes. I ate out everyday and often for at least two meals a day. Eating out can at times be necessary with the tight schedules and always being on the go. However, give cooking or packing a meal a shot at least a few times a week and pack snacks for the in between times. I wish I would have learned that a little earlier on.
- Shoot for graduation in four years. That fifth year can add a significant amount of cost to an already expensive degree. Sometimes a fifth year can be necessary if you are pursuing a specific degree, but in most cases four is enough. Research the major extensively before declaring and listen to people more experienced than you for advice. Switching majors can be very expensive.
- Skip the car if possible. A lot of college campuses in urban environments are built for students without cars. Unfortunately going to the University of Central Florida, the campus design made cars a necessity. However, visiting dozens of college campuses since then it can be possible to not have a car.
- Get a job that allows you to socialize. Most people want to go out at night as much as possible in college. Try getting a job as a bartender or server in a favorite bar, restaurant, or club so you can attend for free, make some money, and be out with everyone else. I always wanted to try the bartender thing but never got a chance.
- Know who your real friends are. Peer pressure can be very high during college. If you need to stay home one night to study or just save money and your friends are not understanding, it may be a chance to assess who your real friends are.
» Filed Under Saving, Income, Spending | 5 Comments
Cheap Trading: Zecco.com
Posted on September 7, 2007
I have been seeing other bloggers writing about Zecco and was curious to investigate the company for myself. Over the years stock trading has come down tremendously in price. I remember having an account with Morgan Stanley in the late 90s and over the course of a few years the fees went through the roof. I quickly got out of that and put my entire portfolio in Ameritrade. I liked their service and ease of use, as well as low cost trades and reasonable minimum balance requirements. It seems now Ameritrade has been “one-up’ed” by a new comer to the low cost investing and trading arena.
With rock bottom prices “you can make up to 10 trades in any one day up to a total of 40 trades a month at no cost, and after that you only have to pay a paltry $3.50 per stock trade. Option trades only cost $3.50 plus $.60 a contract.” I am more of a long term investor, but every now and then even the long term guys have to make a trade. When I was with Morgan Stanley that was about a $40 task, with Ameritrade a $10 task, and now with Zecco.com that cost is eliminated.
Advantages of Zecco.com:
- Ten free market/limit trades per day with a maximum of 40 free trades per month.
- There are no minimum opening requirements for standard accounts, and no minimum balance needed to ensure fees are not assessed.
- No inactivity fees.
Disadvantages of Zecco.com:
- New and has little past performance record.
- There is a $30 annual fee for IRAs.
- Margin accounts require a $2000 minimum.
- Possibility of increasing fees at later date.
See what other bloggers are saying about Zecco.com:
- First Trading Experience With Zecco
- Zecco Trading Experience, My First Trades, And Other Investing Thoughts
- ZECCO - When Free Trades Can Cost You Your Sanity
- Zecco Free Trades Broker Review, Part 1: Introduction and Opening Process Overview
» Filed Under Investing | 2 Comments
Cheap Flights: AirFareWatchDog.com
Posted on September 4, 2007
One of the major downsides of Expedia, Orbitz, and Travelocity is they only search the major codeshare airlines while excluding the smaller, cheaper, and regional options. I came across a new site, AirFareWatchDog.com that provides search options for locating fares on almost all airlines including JetBlue, Southwest, Spirit, and Allegiant plus many other smaller regional airlines. I have known many people to fly the smaller budget airlines like Allegiant that provide a nonstop flight to smaller and often more convenient airports that have far less traffic and congestion than the major hubs. Give it a try if the opportunity presents itself.
