To order your free sample of Herbal Essences, click on "Free Sample" in the More From Herbal Essences box on the upper right-hand corner of this page. - Enjoy!
This week the PBS show P.O.V. (Point of View) aired Waging a Living. It was an excellent documentary and moving to watch.
If you work hard, you get ahead. That's the American Dream in a nutshell — no matter what your race, color, creed or economic starting point, hard work will improve your life and increase your children's opportunities. Yet, this widely held dream is out of reach for an increasing number of working Americans.
Roger Weisberg's alarming and heart-wrenching new documentary, "Waging a Living," puts a human face on the growing economic squeeze that is forcing millions of workers into the ranks of the poor. Shot in the Northeast and California, the film profiles four very different Americans who work full-time but still can't make ends meet. Despite their hard work and determination, these four find themselves, as one of them observes, "hustling backwards."
If you have not seen the show, the website has some great information. Start with the "About the Film" section and then head over to the "For Educators" section. The "For Educators" section has film clips about one of the four people profiled.
Each of the four minimum wage workers stressed how important education is in getting them higher incomes. It makes me realize how lucky I was to have a family which always stressed education. To this day, my Father boasts to anyone who will listen that he has five children and all are college graduates. He now tells his Grandchildren that the only thing that could make him prouder is to be able to also say "and all my children's children are also college graduates"! But I digress... It was an excellent documentary and the website is well worth spending some time exploring.
According to this CNN.com story: America's smartest cities, Boston is in the top ten of America's smartest cities. Nice to know I am surrounded by so many well educated folk. Of course, the Boston driver does seem to leave behind whatever intelligence he or she may have when they get behind the wheel. Or at least I find myself noting their general lack of intelligence and eye/hand coordination when driving amongst them...
NPR.org has a great little story in the Your Money section - Paper Girl: Small-Time Media Mogul. It brought back some memories of my early years (see link below) as a papergirl. While the story was sweet, what struck me was the comment about paying her paper dealer weekly, regardless of whether her collections cover the bill or not.
I remember that feeling well. It was terrible handing over cash to my dealer knowing that I had to dip into my savings to pay the bill. I had my paper route for years and I found over time that I could identify the odds of a new customer's paying me weekly or not. If the customer was elderly I was almost guaranteed of my weekly payment. They always seemed to have my money already counted out - either in a small envelope or in a neat pile near the front door. They knew what I came to collect and always seemed prepared.
Collecting from young families was a 50/50 proposition. If the family seemed to have a system set-up for paying me - either a change bowl near the door or an "open wallet" policy where no matter who answered the door - Mother, Father, Child, Babysitter, Grandparent, etc. they seemed to know where to look for the money and pay me for the week. However, if the young family had one person in charge of the bill paying, my likelihood of weekly payments went down. The worst was when it was the Father of the household who was expected to pay me. More often than not I was shown a wallet either stuffed with high denomination bills which I could not break or worse was the silk inner lining of the empty wallet.
I had one customer who was notorious for showing me the empty wallet and telling me to come back next week. This went on for almost 3 months before I finally figured out how to make him pay. He was probably 40 years old or so and I was maybe 10 years old at the time. He had the nicest car and the biggest house in the neighborhood. His children always had the best clothes and newest toys. Something finally clicked in my young mind that he might not want it known around the neighborhood that he was failing to pay his little papergirl. So I started casually bringing up the failure to pay to my other customers. If someone was short and apologized and said they would pay me next week I would say something like "Sure, no problem, but don't become like Mr. "B", he has not paid me in three months." The next week when I went to his house he had my money and he gave me a big tip and said "Now be sure to tell your other customer's what a big tipper Mr. "B" is!" I never had a customer string me along for such a long time again.
She is so grown-up - She is getting an online savings account!
My niece is fourteen years old and this summer started her first "paycheck" job. She is a life guard at her local town pool, working between 10 - 20 hours per week and earning minimum wage ($6.75 here in Massachusetts). While she has been earning money for years (babysitting, mowing lawns, and odd chores) the formality of set hours and a "real" paycheck has prompted her to view this money differently.
Her old passbook savings account earning a paltry sub-2% interest rate has got to go she declares! She is ready for her "real" money to start earning some "real returns". That means entering the world of online saving accounts. But there is a problem. She is a minor and that makes establishing her personal finance independence a bit of a challenge. In the online interest-rate-rich world your required to have a checking account. To open a checking account most banks seem to require a government issued id card with photo. Since my niece is too young to drive and you need to be 16 years old to get a state identity card, she has only one option left - she needs a passport.
So next week, she is heading into the city with a parent, $40, her birth certificate, and two passport photos (all required according to: How to Apply in Person for a Passport). Once she has that passport she can begin to establish her financial presence.
Step One will be opening that checking account. Her current passbook savings account is at Bank of America. To keep things simple, she will be opening her checking account with the same bank. Luckily they have a CampusEdge Checking account which is available to high school and college students (my niece will be a high school sophomore next year). It gives her free checking for five years, requires no minimum balance, gives her an ATM card, and if she opens the account with the promotional code '50campus' she gets a $50 bonus.
Step Two will be to fund that checking account with an additional $200. Once she has a total balance of $250 she will open an ING Direct account. Using one of the handy referral links for a $25 opening bonus. She will then start earning 4.35% on her savings!
Once she has that checking account and gets used to online saving accounts, she will be well positioned to take advantage of other high interest rate accounts as the opportunities become available (who knows what the ongoing rate wars could produce?).
At first I was a bit leery when I heard she would be getting an ATM card along with that checkbook. But then I realized how difficult it has been for my niece to deposit her paychecks. Since she only has a passbook savings account, she has to deposit her checks the old fashioned way - during normal banking hours using the teller window. Since she is reliant on her parents for transportation, she has been accumulating checks - unsigned and uncashed sitting on her desk in her bedroom. With the ATM card, she can walk to a nearby Bank of America ATM machine and deposit her paychecks herself at any time.
While it is true that the ease of depositing her money also means she will have equal ease in withdrawing it, I figure she has to learn that lesson at some point. Perhaps it is best that she learn how to control her ATM withdrawals now while under her parents roof rather than later, when living away from home at a college campus where there are so many more temptations to spend, spend, spend!
I tried a little experiment last night. I found a set of kitchen chairs I wanted which are no longer sold at Pottery Barn. I purchased them used on craigslist. However, I only wanted two chairs and the owner was trying to sell four chairs with a table. I could not get her to agree to break-up the set, so I ended up negotiating down the price and purchased the whole set. So now I have an extra table and two chairs that I don't need. My plan is to list them as a set back on craigslist and see if I can resell them so that my two chairs are now either free or cost just a few dollars. I will let you know how the experiment goes...
I had a really tough time renting my investment condo this year. It was not from lack of interest. I must have shown the unit to at least 75 people. The most I had ever shown it to before was 30 before renting it. The two bedroom unit was slightly under-priced for the neighborhood and had features tenants are looking for (updated appliances, hardwood floors, new bathroom, etc.) So what was the problem?
My current tenants design skills - or I should say total lack of design skills. The apartment had a total of 5 pieces of furniture. Two beds (just mattress and boxspring on frame), a desk, a card table, and one folding chair. No curtains, pictures on the walls, rugs, or anything "homey". The folding chair seemed to migrate between the card table and the desk. It was the only place to sit in the apartment. Walking into the place it felt very temporary and unlived-in.
People looking at the apartment would comment on the lack of TV and the lack of couch or easy chair. More time was spent trying to figure out how the current tenants lived than in noticing the apartment itself. A number of people wondered if getting furniture into the apartment was the reason for the lack of it - folks sent me follow-up emails asking for doorway and hallway dimensions. The set-up and decor was so bad at one point I contemplated taking it off the market and reshowing it in September once it was empty. Luckily just before I gave up a prospect came to see the apartment and had the vision to look beyond the "stuff" and imagine the place with her furniture and her things.
I am not sure what I could have done to avoid this problem. While you can check a prospective tenant's credit report and previous landlord referrals, you can't screen their furniture.
In terms of the percent of its population living at or below the poverty line, for instance, the US ranks worst among 16 wealthy countries, according to the Luxembourg Income Study. That study found that 17 percent of Americans are poor. As for child poverty, the US also sits on the bottom, with 21.9 percent.
While I don't enjoy having our economy bashed by the Europeans, I do think it important to know how we stand when compared to them. Comparing the US to Finland looks good on paper (for Finland at least) but when you look at the size, complexity, and diversity of the US population vrs. the Finnish population things get more complicated. This is not just an apples to oranges comparison, it is more like an apples to fruit salad comparison...
Periodically I receive emails directly from readers. Usually I just answer them privately and don't post the question. However, this one really got me thinking, so I figured I would turn the answer into a post. To paraphrase the question, the reader asked, if I did not already own my home, and it was on the market today, would I still purchase it?
My first reaction, after reading the question, was Yes, of course! But then I really thought about it. When I purchased my home in the Spring of 2004 the Boston housing market was red hot. Homes were selling fast and affordable homes seemed to sell overnight - the realtor sign would be planted in the front yard with the "Sale Pending" notice already attached!
So I took some time to search for homes priced at what I paid for my home back in 2004 in my area. As expected I found a lot of inventory at my price point. Back in 2004 I was lucky if 2 or 3 homes appeared on the market in my price point. Today I found 12. Unfortunately none of them had an in-law apartment in the basement. However a couple did have potential for me to make an in-law apartment (full, walk-out basements with 3/4 or full bathrooms and finished family room or rooms). Also, none had a "feature" to the lot - my lot is across the street from a park, so I have something pretty to look at from my windows and my home is flooded with sunlight since I am surrounded by so much open space.
What some of the homes that are on the market today have is charm. Details like period moldings, fireplaces, and in some cases more square footage. Some have garages and more off-street parking spaces. All things that are appealing. While I might be somewhat seduced by these features, I still think if I was in the market to buy a home now I would still end up with my house.
It all comes down to the math in the end. Extra parking and a fireplace can't compete with the monthly rent checks from my basement apartment which make my mortgage payment very affordable. This is particularly true now since if I was financing my home purchase at today's interest rates I would be paying about $185.00 more each month.
So after much thinking and some research I do think my initial reaction was correct! Yes, I would buy my home today if it was on the market and I was shopping!
It is a cloudy and rainy Sunday in Boston. With a weekend free from showing the investment condo (it is rented - I have a signed lease and everything!) I pretty much blew my Saturday by just lounging around and enjoying the mild and sunny weather. So today I am resolved to finally listing a large group of paperback books and some misc. items on eBay. I plan on only selling and not buying - but listening to the eBay song is definitely motivating me to get moving on listing my items!
Don't have a lot of money but want to give your home a unique design presence? The web has some amazing examples of what folks have done with everyday items. Pictured is the Chardonnay Chandelier from the Carlo Rossi Jug Simple line.
Then there is Jose's FedExFurniture site. Since he is paying rent for two apartments (old one he moved out of and new one in new city) he could not afford to furnish his new place. So he utilized FedEx boxes to make a bed, couch, desk, and dining table. Maybe not the most comfortable or pretty looking stuff, but I am sure the price is right!
If you have come across some interesting reuse or design stuff drop me a comment - I love looking at this stuff :)
Last October an elderly man picking garbage at a White Hen Pantry found a winning scratch ticket - a $1 Million Dollar winning scratch ticket. Once news of this trash picking find got out another man stepped forward and said the ticket was his - he accidently discarded it. As this story in the Boston Globe reports - Lottery ticket finder to keep most winnings - a settlement has finally been reached and the finder does get most, but not all, of the money.
In Blackstone, a small town on the Rhode Island border, the issue has resonated for almost a year, said Ambler and the owner of the franchise where the ticket was sold, Joe Varin. It's a tightknit town where residents know each other and have often spotted St. John walking around with his cane, rummaging through refuse with rich dreams.
While I feel sorry for the man who threw away a million dollars, I do feel that the trash picker deserved to get all the money. I guess you could say I am a firm believer in "Finder's Keepers, Loser's Weepers" style of justice! It must have something to do with growing up in a household with so many siblings - I was taught at an early age to be careful what I discard - and "give backs" was never an option.
Twenty-something's juggling loan payments, credit card debt and their first house may be on the wrong track. It may be a smarter move to keep your financial feet under you at 22 so that you can afford to buy a house at 32.
I agree that one of the best financial moves I made in my 20's was focusing on paying off my student loans, credit cards, and car loan. By learning to live beneath my means and reducing my debt, as I advanced through my 20's everytime my salary increased I was able to save more and more instead of just elevating my lifestyle (and my debt) to my new salary.
ABC News Nightline had this story last night: More Women Choosing Single Motherhood about the growing trend of 30 and 40 something single women using donor sperm to have a child on their own.
With more women focusing on their educations and careers, relationships are often put on the back burner. That is until a woman's biological clock goes off, usually around age 35.
The women interviewed in the video seemed to all be from New York, very well spoken, well educated, and given the expense involved in donor insemination, well off financially. Since I am single and 35 this story definitely struck a cord.
Ah, another Friday, another sale! My pick this week is the carpenter fit jeans - does this mean they are guaranteed to show a bit of "crack" when you bend over? Or am I thinking of plumber fit jeans?
Money Magazine reports: After the flood, profiling Jennifer and Darryl Hazelwood (both 34) parents of two children (Emily, 21 months, Dylan, 5 months) who have just purchased a two family home in Lakeview for $198,000 (home needs extensive renovations before they can move in).
But the Hazelwoods aren't complaining. Including a few other payouts from their insurance policies, the amount they've collected so far is more than $140,000 - enough to pay off the $109,000 mortgage on their old house, erase $15,000 in credit-card debt and set aside $5,500 in a savings account. The rest went toward clothes, some furniture and dining out, especially on comfort food (creating what locals call their Katrina weight). Their food bills alone now run nearly $1,000 a month.
I love that Money Magazine focused on a Katrina couple. I have wondered how folks are making it down there and reading this gave me a better understanding of the opportunities and struggles these folks are facing while trying to rebuild their lives.
Marissa Ignatowich, 35, is a married Darien, Conn., stay-at-home mother with two children. She once worked in the financial industry in New York. Ms. Ignatowich says she began investing in real estate in 2002 as a "defensive" move against a slowing stock market and owns three investment properties.
What I don't quite understand about this investor is her sudden decision to sell her investment property. She seems to have no problem finding tenants and her property is making her money every month. You would think the income stream for a stay-at-home Mom would be a good thing. The only negative she has to say about the property is rising taxes. I guess I just don't agree that selling is the best move since it is unclear where she will be investing her cash.
The National Association of Realtors reported Wednesday that sales of existing homes and condominiums dropped by 4.1 percent in July from June to a seasonally adjusted annual rate of 6.33 million. That was the lowest level since January 2004.
Within the video they reference the fact that in Boston statues of St. Joseph are flying off the shelves - When sales fall, they call St. Joe. I purchased my home in Boston in the Spring of 2004. The photo is of the little St. Joseph saint I dug up in my front yard when doing some gardening. It looks like the previous owners worried even at the height of the Boston market about selling this house :)
*Sigh* Figures it was too good to be true. I was really enjoying my 5% cash back Citi Dividend Select Mastercard. I switched from a Citi airline reward card to the Citi cash back card back in October 2005. Since then I have trained myself to pay for all groceries, gas, and drugstore purchases with the card (no matter how small the transaction). Since I pay my balance in full each month this reward was gravy and I looked at it as an easy way to get a 5% discount on gas, grocery and drugstore purchases.
It appears Citi is lowering the reward percentage to 2% on October 13, 2006 (poor date choice by the Marketing department in my opinion). To soften the (loss of 3%) blow, they are adding the ability to earn 2% from your utility and cable bill payments.
So now what? Just take the lower cash back rate or fight back by switching to another card? I started exploring my options. First I looked at the MSN Money Credit Card Analyzer and plugged in a search for Cash Back Credit Cards. Looking at the list a couple stood out:
For those of you who do carry a credit card balance (something I am not a fan of, but realize that not everyone has managed to pay down all their debt yet) you may want to look at the Bank of America Money Return Visa® Platinum. You get 10% cash back on your yearly interest charges.
For those who don't carry a balance an interesting credit card to look at is the National City Everyday Rewards Elite Visa. The cash back rewards are not simple to understand but here are the highlights:
4% cash back on gasoline at the pump Up to $250 in monthly purchases
3% cash back on cinema and video rentals Up to $150 in monthly purchases
2% cash back on groceries, restaurants and fast food Up to $750 in monthly purchases
1 % -- Up to 1% on everything else Earn .25% on your first $10,000 in purchases each year; 1% thereafter with no limitations. Your yearly spend is based on open date anniversary.
Once you’ve accumulated $100 in rebates, we’ll automatically send you a check attached to your next monthly billing statement. It’s that simple.
I will continue to look around for the best cash back credit card I can find. If anyone has a good alternative to the Citi Dividend Platinum card please leave me a comment and let me know!
A series of recent events have exacerbated the differences in their financial styles. In January, Michael was offered a job in Phoenix, prompting the couple to move there from Chicago with their daughter Ava, 19 months. But Michael's new position pays mostly on a commission basis, and Brittany's hunt for part-time work has been stymied by the news that she's expecting their second child in January.
Although Michael expects to be earning six figures again in a few years, at the moment their once comfortable $135,000-a-year dual income has dropped by more than half.
To make ends meet, they've burned through $11,000 of their $15,000 emergency savings and tapped $15,000 of a home-equity line of credit on their soon-to-be-sold Chicago condo.
And Brittany is increasingly nervous about managing their spender-saver tendencies on an unpredictable income. "I'm constantly stressed out about it," she says.
It is nice to see a story where the woman is the saver and the man is the spender for once :)
This story hit the blogosphere a few weeks ago, but this morning NPR.org did a story about it: Northwest's Advice to the Laid Off: Dumpster Dive. We get to hear from one of the worker's who received the letter and Northwest's response to the furor.
But earlier this month, Northwest Airlines made things even worse. The company gave pink-slipped employees a tip sheet on how to cut living expenses. Among the suggestions: Rummage through other people's garbage (Tip# 46: "Don't be shy about pulling something you like out of the trash").
I hate waking up late. I never feel like I can adequately catch-up if I oversleep. Strolling into the office late is the worst. I think I may need to invest in a Sonic Alarm Clock - perhaps that will ensure this does not happen again!
The Business 2.0 Magazine article: Blogging for big bucks got me thinking about my little blog here. While it would be lovely to make $60,000 a month in ad revenue (as Michael Arrington, owner of TechCrunch is reported to make) that just seems impossible to me. I am strictly in the "hobby" category for blogging. I have not diversified as other bloggers have done (set up multiple blogs on multiple topics to increase ad revenue), this is my one and only foray into the blogosphere.
So why do I do it? That is really hard to explain. I do get some financial compensation from ads, referrals, sponsored links, etc. but when I average out the earnings per day I make almost enough to sponsor a child as those TV commercials are always begging us to do. In other words not enough to really make the time and effort I put into this worthwhile - so again, why?
The community is a big part of it. Leaving comments, receiving comments - having a dialogue with others who share the same interests that I do. I find that the most rewarding part of the whole blogging thing.
I have also received a great education while blogging. One that has prompted me in many cases to make small changes that have financially benefited me. As I have read tips or suggestions that proved useful, I became more motivated to find equally useful tips or suggestions to post about that could benefit others. The feeling of helping myself while at the same time helping others is another huge benefit.
Lastly I love the accessibility of the whole blogging platform. My blog is free. It was simple to set up and easy to maintain. While the technology has not always been perfect, in the long run it has been fine. Readers around the world (and close to home) have visited my blog - some have been nice enough to leave comments or send me emails. I have my own version of the Soapbox (Speaker's Corner in Hyde Park, London) and as I stand on it I chose the topic of Personal Finance and ramble on about that - Thank you everyone who comes by and listens to me do it! I may not be blogging for big bucks but I am blogging and grateful to have an audience to do it for.
Making $160,000? You qualify for subsidized housing!
Today's Boston Globe is running the story: Affordable housing -- for affluent about a proposed housing development in Santa Barbara, CA. Subsidized housing is nothing new - it is the people who will qualify for the subsidies that raised my eyebrows - folks making up to $160,000! My favorite quote for the story is this one:
Prospective buyers would probably be ``a cop married to a teacher, a nurse married to a guy who owns a plumbing store," Councilwoman Iya Falcone said during a recent City Council meeting. ``Some of the people who are going to buy the higher-priced units are doctors and lawyers. But lawyers are people, too. . . . I love this project."
I guess cops and teachers make a good salary in Santa Barbara!
Kiplinger's Personal Finance Magazine's article: SOLVED: What Can a Middle-Class Family Do to Get Ahead? profiles Jon and Beverly Auvil (each 44 years old) of Huntington, W.Va. who have three daughter's (16, 14, & 6), two jobs, and make about $100,000 combined per year.
The Auvils are actually doing a fine job of balancing current needs with long-term goals, and with a few minor adjustments they can do even better. They're in the sweet spot to take advantage of a slew of middle-class tax breaks that begin to disappear once family income tops $100,000.
It seems this family is doing fine. They live in a relatively low-cost area and they bring home a good salary.
I was paying some bills at my desk at work (Shhh!) I had taken the pile of bills from my desk at home, dumped them into my bag along with my checkbook and stamps. In my rush to get out the door this morning I did not first sort the mail, just grabbed the (surprisingly large) stack of unopened mail and headed out the door. Once in the office I pulled the pile out and started sorting. One of the envelopes was from my mortgage company. They send me a statement every month, but the payment is electronically withdrawn from my checking account. Usually I don't even open the envelope, I just throw it into my mortgage folder in my file cabinet. But I was at my work desk, and was already in a rhythm of opening the stack of mail, so I opened the statement. I was surprised to find a check included with the expected statement. It appears I paid too much into my escrow account and was being reimbursed for over payments! I almost filed away a check for $224! So once again, I repeat for my readers as well as myself - OPEN ALL OF YOUR MAIL - you never know what pleasant surprises are lurking in those #10 envelopes!
Money Magazine has this month's Money Makeover: Time to stop playing it safe. This couple (ages 43 & 40) are holding most of their money in cash - with only a small amount in the stock market.
Concerned about a housing bubble, the Kerkbashians sold their home in Northern California last fall and moved with daughter Grace, 2, to a Twin Cities suburb near Kim's family.
But they didn't buy - instead, they rent a two-bedroom apartment and keep the bulk of their assets, over $400,000, in savings accounts.
I thought I had a lot of cash in saving accounts - but these folks blow me away :) I agree with the advisors who recommended that they start moving more cash into higher yield investments. It would be a shame if their fear causes their nest egg to be eroded by inflation.
The Christian Science Monitor today reports: Fed reduces recession threat. Reading the article it appears inflation is in check, oil prices are dropping a bit, and company profits are up. All good things. But then you read this:
In recent weeks, investors have been less optimistic about the bond market. Long-term bonds now yield less than short-term bonds. In Wall Street parlance, this is known as an "inverted yield curve," since long-term bonds have historically had higher returns. If this were to continue for several more weeks, Zandi says, it could augur a recession because banks will become reticent to loan money given the low long-term returns compared to their short-term borrowing costs.
"It has always presaged a downturn and never falsely presaged one," he says.
Based on the stock market, the yield curve, and other economic indicators, Zandi estimates the odds of a recession to be about 25 percent.
NPR.org has a great story: Johnny Cupcakes Finds Sweet Success in T-Shirts, about 24 year old John Earle who is selling T-shirts and doing well. Seems like something you have heard before. At some point every young entrepreneur seems to try making money selling T-shirts (it is the college version of the grade school lemonade stand). What is interesting about this story is the clever and simple designs he is using and the "buzz" he has been able to generate. His T-shirts are selling for $40 - $70 each!
Lipkin has been pursuing pricing errors and the free merchandise they yield at a variety of retailers for close to nine years, usually three to four times a week. She calls what she does a hobby, but others who know her describe her as a professional shopper.
At a Shaw's in Ashland recently, Lipkin said she snared products worth more than $1,200. Her car is filled to the roof with shopping bags full of cups, sponges, toys, candles, and hand creams -- all obtained for free.
Once or twice I have benefited from the grocery store policy of full refund if the item you purchased rung up incorrectly at the cash register. However, the few times I have gone to customer service to get my money back has generally been after I was home, had unpacked my groceries, looked over the sales slip and only then realized the mistake. If it is just a few cents off I don't bother. But if it is a big pricing error, then I make the trip back to the store.
One other pricing issue I remember I posted about here: Missing Price Tags at Stop & Shop. I brought the issue to the customer service counter immediately after paying for my groceries, but because the price tag was missing, the scanner correctly charged me, but I did not know what the price should have been because neither the item nor the shelf was marked with the price. I ended up getting the item for 1/2 off instead of for free.
Divorce has wiped out much of the couple's respective savings, a 401(k) for McCullough and $30,000 in savings for Kelly. The couple's combined net worth is about $150,000, derived largely from Kelly's $45,000 California Teachers' pension and the equity in a 200-year-old brick colonial in Westford that Kelly purchased for $460,000. At their ages, McCullough and Kelly's net worth should be four to five times their income, or about $700,000, according to Dollard's guidelines.
- Parents spent $32.50 for a marriage license. They have 60 days to get officially hitched (again!). The first marriage license they purchased 47 years ago cost them $2.00. Mom was amused that they don't do blood tests anymore. Dad had a fun time answering the clerk about why the bride and groom already share the same last name. Married for 20 years, divorced for 27 years, and soon to be married again - yikes! Give me strength....
- I am STILL working on getting that elusive tenant. This is really wearing me down this year. I have already had two lease signings fall apart at the last minute. I need lots of positive thoughs sent my way to help me get this thing done soon.
- I finally tackled a chore I hate this weekend - I redeemed all of the Diet Coke cans that have been stacking up in my back hall. My hall looks cleaner and I am $5.95 richer!
I can't wait for the rental unit stuff to be over so I can look forward to getting away from the city for a weekend. I love Boston, but sometimes I just really need a break to rediscover the rest of New England :)
If you missed the Wal-Mart sample giveaways or want to get a second set, you can now request a free sample of Tide Simple Pleasures and Downy Simple Pleasures directly from the Tide website. - Enjoy!
Da Costa set out to discover whether lowly pigeons, often considered a public nuisance, could be enlisted to do some public good by monitoring air pollution with tiny tracking devices on their backs.
It's Friday! Amazon.com is once again celebrating with it's weekly sale. My pick this week is the remote controlled mouse. While I don't own a cat myself, I do know plenty of cat owners who would love to torment play with their pet and this toy.
According to this news release: Tweeter launches iPod trade-in program We have Tweeter stores around Boston - sounds like an easy way to get rid of an old, unwanted iPod - of course you may make more by selling it yourself on Ebay...
"Our iPod trade-in program reflects our desire to offer our customers a hassle-free way to capture the current value of their iPods and apply it to new technologies or products they're shopping for," said Jonathan Magasanik, vice president and general merchandise manager for Tweeter. "We accept a customer's iPod in just about any condition, inspect it and award the customer credit -- on the spot."
"The water sector is going to grow two to three times the global economy over the next 20 years," says Rod Parsley, who runs the $50 million Water Fund, which invests solely in water-related businesses. "By buying the companies that source, treat, distribute and monitor our water supply, you're pretty likely to have a strong investment over the next decade or so."
I guess it makes sense, but talk about betting on a fairly narrow market.
I stumbled across this video and loved it because it appeals to my geeky love of data, cool use of computer technology to increase learning and understanding, and my insatiable curiosity about global economics. If you are watching this at work you may want to put your headphones on because you will probably have to increase the volume to understand the speaker (he has a thick Swedish accent).
Hans Rosling is professor of international health at Sweden's world-renowned Karolinska Institute, and founder of Gapminder, a non-profit that brings vital global data to life. With the drama and urgency of a sportscaster, he debunks a few myths about the "developing" world. (Recorded February, 2006 in Monterey, CA.)
According to this article in the Christian Science Monitor: Homes for sale, but not for a song the standoff between home buyers and sellers continues. Buyers are waiting for prices to drop, but sellers are still holding firm. Meanwhile interest rates have risen, so buyers now may be facing higher monthly payments.
Mortgage rates are up, so the cost of owning a home is actually higher for many people than it was a year ago. And median prices are still rising, not falling. Markdowns are now common in some once-hot markets, but from the Carolinas to Colorado, many metro areas remain strong.
Since I already own and have not plans to sell, I am just a spectator in all this. What I can say is I am glad I am not trying to make a decision in this market.
This Friday (August 18, 2006) is the twice-annual Filene's Basement "Running of the Brides" sale where $900 to $9,000 bridal gowns are sold for $249, $499, and $699. Bargain brides invade the city bringing family and friends who's only job is to grab and hold as many gowns as possible in the brides size while she strips down and tries on gown after gown relying on her entourage to tell her if she looks good or not in this or that gown (you are not always lucky enough to get access to a mirror - they are as jealously guarded as the gowns).
"I was afraid to go out on my own," says Manning, 64, of Memphis, who now works full time in communications at the University of Tennessee Health Science Center. Through the buyout, she received an enhanced pension deal, which credited her with more years than she'd actually worked. "The difficulty factor of the decision-making process was greater than going through my divorce."
So much of my saving projections for retirement assume I will be working until I am 67 years old. If I found myself faced suddenly with a buyout offer I am not sure what I would do. I can sympathize with the stress such a decision could cause...
Boston August 15 - September 15 - Trash Treasures!
Boston has an interesting little tradition called moving day. It is that time between August 15 - September 15 when a large number of residents move out of current homes and into new ones. The insanity of moving day reaches its peak on September 1 when the largest number of folks play a bizarre musical chairs like game with apartments and rental trucks. With so many people emptying out the contents of their homes in this short time period a large number of great items get thrown out. Either it won't fit in the truck or up the stairs and into the new apartment. Driving around the Back Bay, Beacon Hill, and other expensive areas of the city is a worth while thing to do this time of year. Who knows what treasures might be waiting for you on the sidewalks?
For the truly frugal decorator who wants to meet other dumpster divers you can sign-up for Email alerts for Dumpster Diving Meetup Boston
I used to spend a LOT of money on my hair. For some reason, back in my 20's, when I could not afford things like dental insurance, I still felt it necessary to spend hundreds of dollars every other month at the salon. I justified it by convincing myself it was worth the money to get a "good" haircut and the products I was buying was good for my hair (and we all know hair is so much more important in the long run than say - teeth?) When I stopped carrying a balance on my credit cards and forced myself to pay them off each month was when I finally broke myself of the beauty salon habit.
I learned to color my hair myself at home. I would have stopped coloring all together, only I started going prematurely white in my 20's. I am not the vainest person around, but still, I am far too young to walk around with white hair. It generally costs between $5 and $10 for a home coloring kit. At the saloon it costs between $30 - $100 for a colorist (in Boston). So I save (conservatively) about $300 per year doing this myself.
While I can color my own hair, I can't cut it. I found it was cheaper to maintain long hair than short - so I allowed my hair to grow out. I eliminated bangs and invested in some hair elastics, clips, head bands, barrettes, etc. However, that does not mean I don't still enjoy a good haircut. Currently, one of my favorite ways to save is to make an appointment for a cut only. I shampoo my hair at home and head to the salon with wet hair. Generally they re-wet my hair and I sit in the chair and get a great haircut. I then leave the chair without having my hair blown dry or styled. So an appointment that should have cost $85 instead costs $25. I am in and out faster and the stylist generally does my hair while another client is having a foil set or whatever. It works well for the stylist and for me.
Other great ways to save on haircuts:
Go to a Beauty School and have a student cut your hair. Here is a list of Massachusetts Schools of Cosmetology (pdf). You can call and see what day/times they have training hours.
I have had my hair cut at the Blaine Beauty Schools salon near downtown crossing. You pay $5 for a shampoo, cut, & blow dry! All of the students are supervised by instructors. On busy days be prepared to wait, so bring a good book.
If you have long hair and are planning on cutting 10 inches or more off, consider donating your hair to Locks of Love. Some salons will give you a free haircut or a deeply discounted one if you donate.
Lastly search on craigslist and look for ads for free haircuts. I generally search on the word "hair" in the community section or the free section under for sale. You tend to see two types of free haircut offers. Students who need a hair model for a test or licensing exam and experienced hair dressers looking for hair models for a skills demonstration, product demonstration, or trade show.
USA Today's article: $1 million: What's our infatuation with this number? It is interesting the power that number has. I admit I would be pretty pleased to achieve that Net Worth number (but then I would still need to keep savings since I figure I need $3,376,500.00)
"A million dollars represents the American Dream," says NBC Senior Vice President Craig Plestis, explaining the wide appeal of Deal or No Deal to all ages. "A million dollars changes your life."
Not sure it would change my life. It would certainly change my tax bracket :)
My blogging is getting sporadic lately, and I am having a tough time finding time to document and create some planned posts (I want to do something about my investments). What is distracting me? Work is busy. I am still trying to find that elusive tenant for my investment condo. My parents have set the date for the upcoming wedding (long story) and it is fast approaching. Out of town visitors. It is summer and the weather is fabulous!
Not only is my blogging suffering, but so is my house. Before heading to work I took a moment to look around. Laundry is piling up. My bed has not been made (*cough* in a few days). I think something is growing in my fridge. My lawn desperately needs a visit from my mower. Feeling overwhelmed by it all I did dash into my bedroom and turn Roomba on before heading off to work (if only Roomba could make the bed as well...)
Seeing the state of my house and yard, I have a feeling I should check in with my bills and accounts tonight. If I am feeling messy and disorganized, I am sure something is going undone in my financial house as well.
Topsy Turvey Upside Down Tomato Plant Update - Ripe!
As you can see by the picture, my Topsy Turvey is now yielding vine ripened tomatoes. I have already plucked 8 tomatoes since my last update. As you can see I have a few more that are ready for picking!
According to this blurb in the Boston Globe (scroll down to bottom of page).
Staples vouchers Staples Inc. has selected Sept. 25 as the day it will hand out $7.50 vouchers as part of a settlement resolving charges that it violated the state's item-pricing regulation. The first 1,200 shoppers age 15 or older at each of the chain's 64 Massachusetts stores will receive the vouchers, which can be used to buy anything except gift cards, postage stamps, or store service. No minimum purchase is required, but no change will be returned for items purchased costing less than $7.50.
Staples denied any wrongdoing but agreed to the settlement to resolve the issue. It's the first item-pricing settlement where consumers will receive a direct benefit. In previous cases involving Home Depot, Wal-Mart, and Target, settlement money went to various groups or causes.
Regular readers of my blog know I like shopping at Staples. Looks like I will have to note this on my calendar to be sure I can benefit from the voucher hand-out.
Today's Boston Globe has a great article about adjustable rate loans and why, for some, refinancing into a fixed rate loan is not the clear choice - Adjusting expectations
Nilsen, regional manager of Chase Home Finance in Braintree, is facing a $900 monthly payment increase to $3,650 from $2,750.
But rates for fixed loans are currently higher than the flat 6 percent next-step in Nilsen's ARM. So he is trying to decide whether the certainty of the fixed-rate mortgage is worth the extra cost.
``The question is: Do I want to refinance today to eliminate the risk of what will happen to my mortgage or do I want to wait to see what interest rates will be?" he said.
I drove 40 minutes, walked that large maze of a store, and managed to only buy one item this time - the Iserud ceiling lamp for $19.99. I am still kind of in shock that I managed to spend so little! But the main purpose of the trip was to look at kitchen cabinets and help price out a kitchen remodel. While I dream and plan for my eventual new kitchen, I can at least soon get rid of my tacky old kitchen light and replace it with this one :)
In the past, the home mortgage "was a steadying influence; it neither rose nor fell over time," says Elizabeth Warren, a Harvard Law School professor who has studied consumer bankruptcies. "All that has changed in the last half-dozen years," she adds. "The mortgage payment is now more variable than any other expense for millions of people. We're working in completely uncharted territory."
It does sometimes seems a bit hard to swallow, the story many struggling ARM holders have, that they did not really know what they were getting into when they agreed to this type of loan. All I do know is these stories are going to appear more frequently as more and more people are impacted. It is the earliest adopters who are feeling the 2 year adjust pinch now. Many more will soon be feeling the same pain...
It is FRIDAY! Which means Amazon.com is having another sale. My pick this week? This pillow with a speaker, because I always wanted to try to influence my subconscious while I sleep "I will save more money, I will spend less than I earn, I will become a better and wiser investor!" Now that should make for sweet dreams :)
USAToday's article: For some, renting makes more sense, talks about some owners in high priced real estate markets (like San Francisco) who are looking to sell and become renters.
To me this smacks of trying to time the housing market. Never a very smart thing to do. While it may make sense in some cases to sell your home and downsize to a rental for economic reasons (going back to school, starting a business, etc.) generally I would not think this was a great idea. Personally I prefer the idea of being both an owner and a landlord. Owning a two family home seems like a way to hedge your bets against both the home owner market and the rental market. If more people are buying rather than renting, then your house appreciates. However, if more people are selling and renting, then your home may depreciate in value, but the amount you charge for rent should increase (since more people are looking to rent).
I am sure this is not a fool proof idea - but an interesting one to explore. What are your thoughts? Is the owner-occupied two family home the best way to get the best of both worlds (owning a home while getting the benefit of a renter helping you make your mortgage payments)?
CBS Nightly News had the story the other night: Avoiding Foreclosure, Strapped Homeowners Can Take Steps To Keep Their Homes. With the average foreclosure costing banks on average $50,000 and with the housing market slowing down, the good news for folks in trouble is that banks appear more willing to work with homeowners so they can keep their home and work through the rough patch.
Back in May I purchased an iRobot Roomba Red for $123.00 (after discounts). Amazon.com has now dropped the price to $129.99. Use coupon code AUGSAVER for an additional $25.00 off. Your purchase qualifies for free shipping. So you can now get a Roomba Red for $104.99!
Qualify for the A9 Instant Reward of 1.57% off? Then you will save an additional $1.65 and pay only $103.34!
I use my Roomba weekly and am still in love with it. It has been one of my favorite purchases of the year. I have already purchased two more as gifts. I am thinking of picking up another for another gift (for a young cousin heading off to college in the fall).
Today's Christian Science Monitor article: Pension reform aims to boost savings reports that President Bush is close to signing a law which will:
- Tightens rules for companies that provide defined benefit pension plans to employees. Now they will actually have to set aside 100% of the amount needed to meet promised pension obligations (Hum, interesting that they did not have to do that before).
- Special breaks for the Airline industry
- Companies can now freely convert traditional pension plans into cash-balance plans. (may or may not be good for the workers).
- Companies can now opt-in workers into the 401(k) plan without fear of anti wage garnishing laws.
- Companies can now make the default option stock funds (instead of a money market fund).
- Companies can now offer investment advice to workers.
Staples has one free after rebate deal this week - the pack of Pentel pens. Some other good deals in the circular are the $0.09 Elmer's Glue and $0.44 Pencil boxes (great for organizing my junk drawer).
Today's Boston Globe has an interesting story about two Northeastern University drop-outs who went from selling "Yankees Suck" T-shirts outside Fenway Park to civilian workers of the provisional government in Iraq. Totally unqualified to rebuild Iraq is an entertaining article to read and looks like a good book and maybe mini-series will come out of it for the two Beantown boys...
``At the end of all of that, I realized I wasn't living my life the way that I wanted or should have been," Neumann says. `` I'm 30 years old now, definitely not old, but I can't be running around acting like I'm 18. Being in Iraq was a major, major reality check. As corny as it sounds, it put a lot of things in perspective. It made me rethink how I've been living so far."
My local NPR station - WBUR - ran a great series called Boston @ The Crossroads. I thought they did a great job focusing on the local economy and the challenges that Boston faces.
Glaeser and economist Richard Florida, at George Mason University, have found that skilled, talented, creative people are willing to pay a premium to live in places such as Boston, in large part because they want to be with other people like them. They're willing to endure a lower net income if they find the work and the environment stimulating.
That is good news, because with housing costs what they are, having folks willing to compromise on that is something Boston definitely needs.
If you are interested in Boston and where it is headed, this is a series well worth checking out.
This Reuters article: Little summer savings that add up, has some good advice. But I disagree with the "buy a big car (SUV?)" bullet point - it may be discounted now, but with gas prices seemingly only going up (pipelines can leak?!?) I would think whatever short-term discount you may get would be eaten up by the higher gas consumption. Also, what will the resale value of an SUV be as prices continue to escalate? Your depreciating asset may depreciate much faster than expected...
-- Consider the gas guzzler. This is controversial advice, but if you're car shopping don't rule something out simply because it's not gas efficient. Some big cars are deeply discounted now, while you'll pay top dollar for the hybrid or tiny gas-miser. The difference in price could keep you in gas for a couple of years.
I would think better advice would be to purchase a sedan or station wagon with good gas milage.
OK, This looks like a bargain to me. Amazon.com is charging just $14.99 for a twin sized feather down comforter. At this price you can buy two for JR. who is heading off to college - At the end of the first semester just dispose of the first one and break out the second for the second half of the school year. Dry cleaning probably costs more than this item!
I am looking for a warm blanket to keep in my car (part of the winter survival kit we New Englanders should all have) and this item looks like just the thing!
To order your free sample of Infusium 23 Original Shampoo and Conditioner, click on "Free Sample" in the More From Infusium 23 box in the upper right-hand corner of the page. - Enjoy!
This couple needs to focus on retirement and savings...
USATodays.com monthly series Your Portfolio is up. This month's edition: Couple seek help in prioritizing profiles a Texas couple who are 38 & 40, have $25,000 in retirement funds, and $69,000 in student loan debt. The good news is their current salaries:
In her new job, Kuykendall, who is 40, is earning $90,000 a year. Yoes, a programmer analyst at the University of Texas in El Paso, earns an annual salary of $40,000.
The "standard unit" for time off has increasingly become the long weekend, says Joe Robinson, founder of Work to Live, a group in Santa Monica, Calif., advocating for a minimum paid leave law and longer vacations given by business. Yet with cellphones, Blackberries, and laptop computers often invading our weekends and evenings, "we have a nation on the verge of a nervous breakdown," he says.
I am entitled to 3 weeks of paid vacation as well as 2 "floating" holidays. I generally try to take one week of vacation per year and use some days to make long weekends. Even so, in the past I have rarely used all of the vacation time I am entitled to. This year I am trying to be better about taking days off. One of my goals is to use all of my vacation days and holiday days this year. We shall see if I can do it :)
NPR.org's report: Partners in Life, Partners in Home Buying tells of the growing number of unmarried couples, partners, or friends who are purchasing property together. If the relationship does not last this can cause some significant financial problems for those involved...
Perhaps most significant, many men without college degrees are not marrying because the pool of women in their social circles — those without college degrees — has shrunk. And the dwindling pool of women in this category often look for a mate with more education and hence better financial prospects.
It is interesting that so many of the men interviewed feared divorce and loss of assets more than commitment or marriage itself.
Today the mailman delivered an unexpected surprise. A plain envelope which contained a $12.00 check. It was a settlement payment from an AT&T Wireless class action lawsuit. A few months ago I received a letter from a lawfirm informing me that I was eligible to be part of this class suit and did I want to join? I returned the pre-paid postcard and checked yes. So now I am $12.00 richer! It really does pay to open and read ALL of your mail. I could have easily ignored the initial letter thinking it was junk mail, and today's check also could have been overlooked. So Thank you:
Mark Rolnik, Richard Goldweit, German Godoy, Deborah Dalton, Andrea Neal, Scott A. Morris, and Matthew Logue
You read the fine print of the AT&T Wireless contract and discovered that they had overcharged their customers. Now everyone who joined the class action lawsuit are getting money back :)
Mark Rolnik, Richard Goldweit, German Godoy, Deborah Dalton, Andrea Neal, Scott A. Morris, and Matthew Logue v. AT&T Wireless Services, Inc. Docket No. L-180-04 Superior Court of New Jersey
Don't expect to live like your parents. It took them 25 or 30 years in the work force to achieve their current standard of living. If you're eating out as often as they do or taking equally extravagant vacations, you're probably spending too much.
I would add to that, if you find yourself purchasing household items equal to your parents you are probably overspending.
Somehow I was talked into entertaining three of my siblings progeny overnight. I have two fourteen year olds and an eleven year old staying with me. Due to the lingering high humidity and heat Boston is experiencing I decided to entertain them indoors by watching a movie. Unfortunately I asked the niece and nephews to pick the movie. They chose The Lord of the Rings Trilogy! Yup - I am watching all three movies back to back to back.
So I am taking a vacation day from the office tomorrow. My guests should be dropped off at my house early tonight armed with pillows, sleeping bags, and popcorn. I invested $75 in purchasing the three DVD set. Spent another $40 at the grocery store last night purchasing required teenager food (ice cream, ice cream bars, ice cream sandwiches, sugary cereal, salty snacks, and drinks like Gatoraid, Sprite, and Mountain Dew). I picked up some adult movie snack food like grapes, strawberries, snap peas, and cheese and crackers.
So the pizza man will be providing dinner tonight and the TV and DVD player will be getting a workout!
If all goes according to plan we watch all three movies, sleep some, then emerge from the house to nice weather on Friday and recuperate at a nearby beach before I have to drive them all back home in the evening.
RealEstateJournal.com's recent article: Family Sells Beach House For Double What They Paid shows how buying in the right location (and let's face it, at the right time) can really pay off. The regret they express at the end of the article about having sold is something I can sympathize with. It must be hard to sell a home that you were using and enjoyed just to pocket the money. It must be easier if you are immediately purchasing a replacement. But still, having all that cash to bolster your retirement savings is brilliant!
Once again I have surprised myself. I really thought this was going to be a terrible Net Worth month. Instead I have something to celebrate - I have finally crossed the $400,000 threshold! That was pretty exciting.
[Click on image to see larger]
However, there is plenty of bad news in the numbers. Some of my investments took a hit. I have had a request from a reader to post about my investment mix and performance. I think that may be something I will look into doing this weekend. I don't want to be seen as recommending specific stocks or funds - but I think I can be more open about my asset allocation mix and how that has been working for me (or not) so far.
I checked Edmunds.com this month and adjusted my car value down. I use the lowest value number Edmunds gives for my cars make, model, and year. So my depreciating asset continues to depreciate...
I am still sticking with ING Direct and HSBC Direct for saving accounts. However, I have been funneling most of my new saving dollars to HSBC because of the juicy 5.05% interest rate. I thought about dropping ING Direct and shifting all savings over to HSBC Direct, but just could not do it. I really like ING Direct and want to stick with them. However, I have decided to explore putting money into some ING Direct CD's. The 12 month 5.25% CD is attractive. I think I may want to start creating a CD ladder. That way I can stay with ING Direct AND get a better interest rate.
However, as always, I do recommend ING Direct as a great place to start if you are new to online saving accounts. The $25 Opening Bonus helps offset the lower interest rate.
The Final Installment of the Boston Globe's spotlight series Debtors' Hell is: National Crisis, Official Silence. Today's article points out what is happening outside Massachusetts with debtors, collection agencies, the courts, and other officials. I wish I could say these abuses and practices the series has uncovered only occur in Massachusetts, but as we learn today that is not the case. This is a nationwide problem.
A big problem is the amount of debt owed. My favorite quote from today's article:
And Cormier did not get that card by accident. Since the 1990s, credit card vendors have aggressively courted customers among lower-income, higher-risk consumers. It is the industry equivalent of tobacco companies marketing to minors.
Everytime I see this commercial I am transported back in time to my grade school days in Catholic school. One of the elderly nuns who used to roam the halls would periodically pop into a classroom and demand the class repeat some fact or equation three times aloud. After listening to the thrice repeated chorus of "Christopher Columbus sailed the ocean blue in 1492, Christopher Columbus sailed the ocean blue in 1492, Christopher Columbus sailed the ocean blue in 1492" she would then sing out "Three times for the normal mind children. Remember that! Say a fact or figure three times aloud and you will never forget it!"
Now, I wonder if that marketing genius that came up with the HeadOn commercial attended my grade school????
But their more aggressive colleagues do much, much better than that, thanks to a 1990 amendment to state law that allows them to charge whatever they like for auto seizures. The result is price-gouging: Constables charge debtors between $600 and $900 to accompany the tow truck that arrives to hook a car. The fee used to be capped at $25.
If you missed the Wal-Mart sample giveaways or want to get a second set, you can now request a free sample of 
