Carnival of Financial Independence – 32nd – October 12th, 2013 Edition

Welcome to the 32nd edition of the Carnival of Financial Independence, a selection of the best articles related to Financial Independence this week. If you would like to be included next week, please submit your post via Blogger Carnivals.

Thanks for stopping by and enjoy the great reads!

Travel and Lifestyle

Pauline @ Reach Financial Independence writes I can’t complain – I realize that I have complained a lot lately about how slow things have been and how frustrating it is to deal with Guatemalan bureaucracy and the red tape. But really, there are many reasons why I can’t complain

SFB @ Simple Finance Blog writes How to Get Ready (Financially) For a Baby – Now that you got the good news and are eagerly awaiting the arrival of your bundle of joy, you will soon realize that the nine month long period is never enough to be fully ready for a baby.

Mike @ Personal Finance Journey writes The Financial Benefits of Sharing a House – How sharing a house or apartment can benefit you financially and save money for bills rates and repayments.

Christopher @ This That and The MBA writes 3 Money Mistakes I’ve Made and How to Avoid Them – If y’all remember my first post here, I confessed that while I’ve never been in debt, until recently I had absolutely no credit history. While I consider that my most major money mistake, I’ve made a few more that I’m sure others could learn from.

Little House @ Little House in the Valley writes The Heat and the Home: Why Solar Panels Are a Good Idea – By installing a solar panel over your home, you and your family will be making a wise and morally responsible decision to be symbiotic with the natural world.

Amy @ Money Mishaps writes Are you Throwing Money Away? If You do These 3 Things, Yes – Science magazine just published a study that found that, if you are poor and also mismanage your money, it is possible that you might be able to make good financial decisions but more than likely you have trapped yourself into a vicious circle and cannot.

Lisa E. @ Lisa Vs. The Loans writes The Future You – Are you making life easier or more difficult for Future You? What things do you need to sacrifice in order for Future You to be content?

Harry Campbell @ Your PF Pro writes Is Going Green Worth It? – I’m not sure what’s so attractive about farmer’s markets but I love going just to check out all the cool vendors, sample food and of course I usually end up buying a ton of stuff. Farmer’s markets in my area have evolved from selling just groceries to all different types of products like cheeses, butter, nuts and even restaurants are getting in on the action now.

Miss T. @ Prairie Eco Thrifter writes How Denim Can Be Bad for the Environment – How we spend our money on consumable goods should match the things we are concerned about in life. The environment is one of my biggest concerns, and as such I want to do what I can to help keep it healthy. Buying well-made, American-made denim jeans is one way I can make a difference, and hopefully you can too.

Lauren @ L Bee and the Money Tree writes Budgeting an Irregular Income – How We Make It Work – Budgeting an irregular income doesn’t have to be as complicated as it seems. Here are some tips for keeping it easy for you and your family.

Crystal @ Married (with Debt) writes 7 Money “Things” I’m Thankful For – Lately I’ve been bummed/stressed/anxious about money. That’s because we just finished up our first month living on only one income. My wife is/was a teacher, which means she can be paid over twelve months for work done over nine.

Eva Baker @ TeensGotCents writes Ted Talks and Ignite – Influence Your Community – Spark an idea – but make it quick! Ignite is a shorter version of the TED talk and is a great way to share ideas and influence your community!

Wealth and Passive Income

CAPI @ Creating a Passive Income writes The Importance of Knowing Your Net Worth – Most people may not necessarily know what their net worth is. Your net worth is the difference between the value of what you own and what you owe.

SBB @ Simple Budget Blog writes Balancing Act – Why Reconciling Your Bank Accounts is so Important – Balancing your bank accounts is an important part of your budget. Don’t believe us? Read here to learn why it can help you.

Matt @ Budget Snob writes Guard Your Retirement Income with these Comprehensive Tips – One sad fact that all people nearing or already in retirement have to deal with today is that income during retirement is lower than it has ever been in the last 60 years.

Corey @ 20s Finances writes Why You Should NOT Calculate Retirement Income off based on Income – When calculating how much you need in retirement, you should not use your current income. Find out what you should use to be prepared.

Emily @ Evolving Personal Finance writes The 3 to 6 Month Emergency Fund – The 3 to 6 Month Emergency Fund

Jon @ Novel Investor writes Roth IRA Rules: Everything You Need To Know – The Roth IRA has its advantages. But is it a good fit for you? This guide covers everything you need to know about the Roth IRA rules and more.

JC @ Passive-Income-Pursuit writes Dividend Update – September 2013 – It was a record month of dividends that ended up covering over 27% of my monthly expenses. Building up a passive income stream is great as it just continues to build month after month and will eventually lead to that all important FINANCIAL INDEPENDENCE!

Ben Luthi @ The Wealth Gospel writes How Giving Can Make Your Richer – Cites a study showing that those who give, whether money or with other means, tend to be more successful and earn more money

Anton Ivanov @ Dreams Cash True writes The Best Finance Books of All Time – This list of the best finance books is a great place to start learning more about personal finance and investing. There is so much to learn from these 10 awesome books!

Daniel @ Make Money Make Cents writes The Boom in Posh Pawnbrokers – If you watch any TV at all you have probably at least glanced at some of the myriad Pawn reality shows that have become so popular as of late. Cash poor but asset rich Americans are turning to pawn brokers for short-term loans, something that has been dubbed “high-class pawn brokering.”

Real Estate and Investing

Mrs. Accountability @ Out of Debt Again writes 6 Common Mistakes to Avoid with Annuities – Annuities are one of the most popular investments made by investors under 44 years of age.

Chuck @ The Tortoise Banker writes Protect Your ASSets and Income – Generating meaningful wealth is tough enough, doing it more than once is enough to break anyone. Follow these important tips to assure you put a buffer between the world and your income and assets.

Monica @ Monica On Money writes Government Shutdown: Everyone Needs An Emergency Fund – At this point, we all know about the Government Shutdown and how much it affects us directly and indirectly. But for now, on the positive side, this is a reminder to reflect on our own personal finances.

Maria @ The Money Principle writes The Best Ways to Start Investing While Still in College – It is never too late to start investing so you may as well start while in college; still have to do it right.

Roger the Amateur Financier @ The Amateur Financier writes 6 Investment Strategies to Generate Retirement Income – A guide to methods to generate retirement income with the money that you save during your life, covering things like regular withdrawals, interest, and annuities.

Holly @ Club Thrifty writes And……We’re Renting a Home – We have not found a house we want to buy….we were renting a home instead.

Brian @ Luke1428 @ Luke1428 writes Our Nightmare on Rental Street: Evicting a Tenant – Rental real estate investing offers tremendous financial benefits. One of its darker issues is dealing with tenants that refuse to pay the rent. Here are some lessons I learned by going through such an experience.

Daisy @ Suburban Finance writes Buying Your First Home – Home buying advice for buyers to follow for a successful purchase of a home.

Rich @ Growing Money Smart writes What is a Stock? – What is a stock, is one of the first financial lessons I taught my kids!

Mr. Frenzy @ Frenzied Finances writes Moving Out: When You’re Ready to Buy a Home – Home-owning can quickly turn into a nightmare when not prepared. There are several factors to consider when deciding when you’re ready to buy a home.

Debt Guru @ Debt Free Blog writes Mortgage Hunters: How to Find an Affordable Mortgage – Are you looking for ways to secure an affordable mortgage? It may seem daunting, but it is actually quite attainable, so long as you know where to start.

Michelle @ Diversified Finances writes Renting Out A Spare Room For Money – Have you ever thought about renting out a room in your house? We have thought about it and we currently do rent out a room in our home.

Danielle @ Saving Without a Budget writes Buying a Home? These Tips will make it Easier – Even though it is a bigger dream than ever before, home ownership is still a dream for many Americans.

Lenny @ Best Money Saving Blog writes Investments That Aren’t Really A Very Good Investment – Everyone wants to make as much money as possible with as little effort. That is not always possible of course and, when it comes to financial planning, you need to be aware that all investments are definitely not created equal.

Hadley @ Epic Finances writes As stocks approach record highs, the market is looking rather complacent – As the market nears a historic high on the S&P 500 some analysts are concerned that it is looking a bit complacent. Maybe even bored.

Lily @ Paying Debt Down writes How to Invest like an Old Pro (even if you’re a Young Amateur). – Something that your Wall Street broker never wants you to find out is that investing like a Pro is actually pretty easy. The fact is, practically anyone can put together a portfolio that’s well diversified with stocks, bonds and other investments with only a small amount of effort.

Self employment and Career

Grayson @ Debt Roundup writes When Opportunity Knocks – I had an opportunity to score a new to me Jeep Wrangler. I thought about it and ended up getting a used auto loan. There are some reasons why and I lay them out here.

Don @ Money Reasons writes Was the Removal of the Uptick Rule Stupid? – The “Uptick Rule” was removed back in 2007 after a pilot study said that no manipulations occurred.This is what the pilot study found “The general consensus from these analyses and the roundtable was that the Commission should remove price test restrictions because they modestly reduce liquidity and do not appear necessary to prevent manipulation.

Hank @ Money Q&A writes 7 Steps For Financial Success To Build A Solid Future – Achieving financial success is a great part of the American dream, but it’s not easy to do if you aren’t focused on the goal. Real financial security doesn’t come about by accident. These careful steps for financial success will help you build a solid financial future.

Jon Haver @ Pay My Student Loans writes 3 Biggest Money Mistakes Recent Graduates Make – Your student loan is the most important thing you have to worry about. It’s the worst debt you can have. Why? Because it’s non-forgivable. If you run into trouble, become unemployed or have your wages garnished for some reason, the student loan stays right where it is, and even accrues more interest, making your life even more miserable.

Lazy Man @ Lazy Man and Money writes Government Shutdown – Emergency Fund Win! – For our family a prolonged government shutdown is more financially dangerous . My wife’s military status means she has to work to pick up the slack from the government workers who are prohibited from working in a shutdown. Because the government can’t pay people in a shutdown, she’ll get IOUs from the government.

Sam @ Grad Money Matters writes Making Money on Etsy – Thinking about who your target customers is very important when thinking about how you will make money on Etsy. Advertising on young women’s blogs but your target market is grandparents is not exactly the wisest thing to do. This is most likely just wasted money since your target market most likely will never see your advertisements.

Michelle @ Making Sense of Cents writes $12,334 in September Side Income – Time for Self-Employment – I definitely reached my September goal and passed it by a good amount. September was a great month for income, and I was able to add a few new clients, and there are also a couple of new services that I am offering as well.

Natalie @ Debt and the Girl writes Building my Brand in Freelance Writing – I consider myself extremely lucky. I have had this blog for over a year and its finally a place that it making money.

Alexa @ Single Moms Income writes How to Write a Blog Post in Twenty Minutes – As a freelance blogger one of your big income factors is your speed. If you charge $20 for a blog post and it takes you an hour to complete it you’ll only make $20 an hour. If you can complete two or more blog posts in an hour you’ll easily be able to make $40 an hour or more.

Harry Campbell @ The Four Hour Work Day writes “Unpaid Vacation vs. Regular Vacation “ – One of the perks of having a day job is getting paid when you go on vacation. Most companies start employees off by giving them 2 weeks of vacation plus holidays but that never seems to be enough. A lot of employers(especially in my field: engineering) are actually starting to give an extra week around Christmas time to New Years since not much work gets done during that time anyways. So that’s about 3-4 weeks of combined vacation and holidays for the average worker.

Sustainable PF @ Sustainable Personal Finance writes What Would You Do With a Financial Windfall? – As a freelance writer, I occasionally end up with what might be considered a windfall. A large project might fall in my lap, or a rush job that I can charge a premium for.

Tushar @ Earn More and Save writes 5 Ways to Earn Money on the Side – You’re busy. I get it. You want to earn extra money but don’t have enough time to dig through a pile of ideas to find the perfect one. Luckily, choosing a side job doesn’t have to be hard. You can and should do something you enjoy to bring in money on the side.

Bargain Babe @ BargainBabe.com writes Is Living at Home After College Better Than Paying Rent? – Is Living at Home After College Better Than Paying Rent? offers tips on saving money every day.

Dollar @ Easy Extra Dollar writes Start An Online Business – A successful an rewarding business can really be a dream, giving you both the ability to work from home and an income. However just like any other business, beginning an online business that will show success is going to take some effort and planning.

Cat Alford @ Budget Blonde writes The Government Shutdown and The Extreme Importantance of Emergency Funds – If you’ve been reading my blog for a few years, you might know that I was a United States park ranger before I moved to Grenada. I was an interpretive ranger, which meant that I worked at numerous sites around Richmond, Virginia creating history programs and giving battlefield tours. It was really awesome.

Saving and Simple Living

Don @ MoneySmartGuides writes Saving Money and Saving the Environment – Regardless of whether you feel that the global warming phenomenon is real or made up, you cannot argue that we throw away and waste a lot of stuff.

Marissa @ Finance Triggers writes Saving Money on Gluten Free Products – Gluten is wreaking havoc on diets these days. Most people think that this is a new trendy diet, and while it is not really a new ailment, but one that has been plaguing people for years.

Andrea @ So Over This writes 3 Tips for Saving Money on Your Internet – Anyone who pays for Internet knows how costly it can be to stay on top of the bills each month, especially in a society that leaves a lot of web surfing to be desired.

Bob @ Dwindling Debt writes Is there a Money Wasting Hole in your Budget? – The possibility that you have flaws or holes in your budget is actually quite high and, sort of like a leak under your sink that you do not know is there until you start smelling the stink of rotting plywood, you probably haven’t even noticed them.

Stuart Laing @ Daily Money Bucket writes The Easiest Way To Get Started Saving – Despite your best intentions, it’s really easy to delay the time when you start saving. So here’s the easiest way to get out of the rut and start saving.

Tushar Mathur @ Everything Finance writes Ideas for Cheap Halloween Costumes – Whether you’re thinking of putting together a cheap Halloween costume for your company potluck or needs some ideas for Halloween costumes for your children

Corey @ Steadfast Finances writes Money Doesn’t Grow On Trees: What to Do When You Need More Cash – It’s a horrible feeling when you’re short on cash but still have the household bills to pay. You’re probably starting to worry about how you are going to afford them, as skipping payments could cause irreparable damage to your credit rating. Unfortunately, money doesn’t grow on trees – but there are a few things you can do to get more cash and make it through your monthly bill cycle.

Connie @ Savvy With Saving writes How To Save At Starbucks – If I have one vice when it comes to money, it is coffee. While I try to be frugal, I still need my morning cup (or two) of coffee everyday.

Kurt @ Money Counselor writes Add $100,000 to Your Nest Egg AND Indulge Your Taste for Lattes! – I’ve discovered a way you can boost your nest egg by $100,000 over 40 years without denying yourself a single thing you can pay for with cash. A scam? Nope.

Mr.CBB @ canadianbudgetbinder writes Bust our Budget: September 2013 Budget update: Canadian Budget Binder Budget Spreadshee – Get a copy of our free excel budget spreadsheet that we use in the CBB family. Although a budget is not meant for everyone if you are serious about getting your finances back on track and want to use a simple budgeting system to get you there check this one out and see if it’s right for you. In September we spent more than we earned. Come find out why and how we handled the situation. Happy Budgeting.

Thank you for reading, have a great weekend!

-Jacob

***Photo courtesy of http://www.flickr.com/photos/zeevveez/8451896693/sizes/m/in

How to Save Money When Hiring a Tradesman For Your Home

The following article is by MPFJ staff writer, Miss T from Prairie Eco-Thrifter. If you want to learn how to live your dream life in a sustainable, healthy, and money savvy way, check out her site here.

I don’t know about you, but I find there are times when something breaks down around the house that is beyond my “handyperson” skills.

I mean, I think I’m pretty handy around the house when it comes to simple repairs and maintenance, but even I know when something is out of my league. An expert is needed when the job is difficult, needs tools I don’t have, or when the job is covered by law like electrical work. This is when you need to think about hiring a tradesman.

Tradesmen have, rightly or wrongly, earned a reputation for charging through the nose for just turning up. I remember several years ago when I hired a plumber for the first time, discovering that he charged more than my doctor! Anyway, whatever the reason people believe that tradesmen are expensive, when you need one, you don’t have a lot of choice. There are, however, several ways you can save money when hiring a tradesman and this is what we’ll look at here in this article.

First, Know When Hiring Someone is Required

Make sure you understand when a job demands more than your skills allow; it is going to cost you a whole lot more cash to fix your mistakes than it would have to have just hired the expert in the first place. Be realistic; know your limitations and hire the tradesman when necessary. Playing around with something you don’t fully understand like electricity, can be dangerous as well as expensive. Some renovation and repair work needs to be completed and signed off by a qualified person by law. You can save yourself time and money by hiring the professional to do the work.

Check Their Certifications

When looking for a tradesman, it’s really important to check their credentials. That friend of a mate’s neighbor might do electrical or plumbing work on the cheap but is he properly trained, qualified, insured and licensed? Never employ anyone who cannot show you their license. Always ask about the level of insurance they carry as well as what warranties and guarantees they offer. It can be really expensive having to fix up the bad workmanship of an unqualified tradesman. Always get any certificates of compliance that are needed for the work you have done, so that you are able to prove the work was carried out according to legal requirements.

Before you make the phone call to any tradesman, make sure you really do need one. Any licensed electrician can tell you of numerous occasions when they had been called to a home to fix something that wasn’t broken in the first place; and of course, they still want to be paid for the call-out. This is simply wasted money, so don’t get caught out like this.

Some of the most common unnecessary call-outs occur when a power socket was reported to have failed but it was actually the appliance plugged into it that was faulty; always check with a different appliance. If a light doesn’t turn on, check the bulb before calling an electrician. If all your power goes off, check the fuse box as it might just be a switch that needs flicking back on, or again, it might be a faulty appliance. If a toilet won’t flush, check that the faucet hasn’t been turned off. If you find a leak during a rain storm, check that the gutters aren’t blocked.

Get Written Quotes From Several Different Sources

The best way to save money when hiring a professional is to get quotes from different tradespeople. This ensures that you know exactly how much the job will cost you before work is started but also allows you to select the best person for the job, based on price. Common advice is to never go with the cheapest or the most expensive but to choose a quote from the middle of the range. This is why it’s a good idea to get at least three or four quotes for comparison.

Any quotes you get need to be in writing to be reliable and for you to be able to hold the tradesman to the quoted price. You also need to have an understanding of exactly what is covered by the quote to avoid any nasty little surprises at the end. Asking lots of questions will not only help to understand what is involved in the quote but can often also give you a better impression of how the tradesman works.

Hiring a tradesman can be fraught with problems and I’m sure you know of people who have horror stories to tell about their own experiences. By following these few tips on how to save money when you need to have a professional do some repair or maintenance work for you, you can be confident that you will get a good job while keeping cash in your pocket.

How about you all? Have you ever hired anyone to do work around your house? How did you make sure they were both reliable and affordable?

Share your experiences by commenting below! 

How To Make Extra Money As a Part-Time Tutor

The following is a post by MPFJ staff writer, Kevin Mercadante, who is a professional personal finance blogger, and the owner of his own personal finance blog, OutOfYourRut.com. He has backgrounds in both accounting and the mortgage industry.

If you need to make extra money, one of the best ways to do it is as a part-time tutor.

This is a business you can start that will require no upfront capital, in addition to the fact that it plays into your natural skills and talents.

The income that you can earn as a part-time tutor can be very generous too. Where I live, tutors who work with high school students charge anywhere from $30-$50 per hour. You wouldn’t have to work too many hours, in order to make a decent part-time paycheck with that kind of hourly rate.

What to teach

This is probably the single biggest obstacle to anyone who is considering tutoring. But, it is best resolved by choosing the subject were you have the most aptitude and interest.

Choose a subject where you are particularly strong. Math, science, and writing seem to be the perennial favorites. In fact, there will be a stream of students that you can tutor in those subjects. Others include foreign language, history and even certain specialty subjects.

Music is another popular subject area for students. This can involve everything from singing to the various musical instruments. If you have any talent with a particular instrument, you can tutor students who are learning to play, and need help beyond the training they are getting in school.

Moving beyond academic subjects

When it comes to tutoring, don’t think strictly in terms of school-age students. There are adults looking for training in a variety of different subjects. Many adults learn better in a one-on-one situation, than in a group setting like a classroom. And they will be willing to pay you to provide that one-on-one training.

Subject areas can be vocational. If you can teach business topics, like bookkeeping, administration, bill collecting, basic computer usage, public speaking, sales, and the various popular software programs for business, you may find clientele in the business world.

There can also be a market for personal tutoring. Teaching English as a second language is one very large possibility. An entire industry is building up based on this very subject. You can also teach a foreign language that you know – French, Spanish, Korean, German, or any one of a number of Asian languages.

Music and musical instruments are another area where you can become a tutor for adults. Many adults begin learning a musical instrument late in life, and need someone to work with them closely in order to master it.

What to charge

Earlier, I provided the pay range for tutors in my area, but you’ll have to test your local market to determine exactly what the range is. Check websites for tutors in your area, as well as the classified ads and Craigslist. You may have to call in on some ads in order to find out what their rates are, as many will not list them in the ad itself.

You can also check with local schools and ask for flyers that could provide more information. Once again, it will be worth making a few phone calls speaking to tutors themselves to find specifically what they charge and also what services they provide.

Where to find clients

If you are looking to tutor students, finding clients can be as easy as contacting the schools in your area. Decide what age group you will specialize in – elementary school students, high school students, or even college students. Contact each of those schools to let them know you are available for tutoring. Prepare a one-page flyer that will explain your services, and even your rates. You may decide to leave your rates out, and have the issue discussed when a prospective student calls you.

If you’re going to tutor in the adult/business market, finding clients will be more complicated. Definitely advertise on Craigslist – the ads are free, and a lot of people go to that site now that local newspaper classified advertising is fast disappearing.

You may also want to create flyers that you can place in senior citizen centers, grocery stores, Laundromats, apartment complexes or anywhere that will allow you to post them. If you’re looking specifically to provide services for businesses, you may have to find a way to contact them directly. This may mean contacting them through their websites, or even calling to offer your services.

If you are prepared to invest some money on the marketing side, you can even do a direct mail campaign. Mail your flyer out to businesses in your area that are likely to need your services. It will cost you for stationary and postage, but you will be approaching a very specialized market with a relatively high level of response.

Converting it to a full-time venture

If you can begin building a business as a tutor on a part-time basis, there really is potential to convert it into a full-time venture. This can be particularly true if you can tutor into a business niche. It’s often just a matter of finding enough clients, and increasing the number of billable hours that you spend each month tutoring.

Once you get your marketing going, you can begin getting a substantial amount of referral business if clients are satisfied with your work. Between continued marketing efforts and ongoing referrals, you may be able get enough business to start doing it full-time. And since the marketing will be running essentially on automatic pilot, you’ll be free to perfect your craft as a tutor, and to concentrate your efforts in giving the best performance that you can. That will lead to still more referrals.

Not everyone is cut out to be a full-time teacher in a school, but many people have the qualifications and talent to become a personal coach – which is really what a tutor is.
If you have a passion for being a tutor, jump in and get started. Push it hard, and you could be launching an entirely new career for yourself, as well as a business venture that would give you much greater control of both your time and your income.

How about you all? Have you ever considered tutoring as a business venture?

Share your experiences by commenting below! 

***Photo courtesy of http://www.flickr.com/photos/tulanesally/3349979270/

Why I’m Renting For 10 More Years

The following post is by MPFJ staff writer, Catherine Alford. Cat is a freelance personal finance writer who blogs at www.BudgetBlonde.com. 

All around me, friends and family members who are my age are buying houses, but there’s just no way I’m ready for that yet. I’m actually a little bit jealous of them because houses mean putting down roots and getting nice and settled in life.

However, even though I’m craving some stability, I would never take back the experiences I’ve had over the past two years. Moving to the Caribbean was the opportunity of a lifetime, and it’s completely changed my life in more ways than one. Now that this journey is coming to a close, it’s time to look towards the future, leave the apartment we’ve called home for so long, and move on to a different life.

However, we are definitely still going to rent, probably for about 10 more years, and here’s why:

1.    We’re Moving Too Much

Like I said previously, in just a few months, my husband and I are moving back to the United States. Then, a few months after that, we are moving to a totally new city. We have no idea what that city that will be, but his medical school will notify us 4 weeks ahead of the move date. We’ll live in that city for two years, and then my husband will do residency interviews. Again, we won’t know where we’ll be living until match day (where 4^th year medical school students find out where they will be completing their residencies.) Then, we’ll move again for 3-4 more years and possibly again if my husband wants to do a fellowship.

Not only is that a crazy amount of school and training, but it’s a lot of moving. The housing market, although it’s getting stronger, is still to delicate for me to be interested in making an investment and hoping to sell in just two years. Even during the height of the real estate boom, houses still needed a few years to really, truly appreciate enough to make a profit.

2.    We Want to Make a Huge Down Payment

When I buy a house, I want it to be a really comfortable financial decision. I don’t want to agonize over closing costs or fixing a water heater or buying a new roof. I want to have enough money saved to put more than 20% down. Also, I do not want to take out such an enormous loan without a massive savings account that’s there for emergencies.

Plus, if you think about it, we’ve already purchased a big, imaginary house with my husband’s medical school loans, and we’re really going to have to concentrate on paying off the $300,000+ that we’ve accrued. While some people will pay off mortgages at that price, we have to pay off my husband’s education before even thinking about taking out an amount that big again.

3.    Landlords Handle the Difficult Tasks

Being married to someone in the medical field is much like being married to a police officer or a firefighter. Their schedules are crazy and hard to predict. If there is something that needs to be fixed in the house, chances are my husband won’t be able to help me. For that reason, it’s extremely convenient to rent because a landlord is responsible for all of the big repairs. Sure, we are helping them build their investment without making one of our own. However, they would be giving us much needed peace of mind, something that we desperately need during this hectic time in our lives.

4.    It Makes It Easy To Explore & Move

Even though there are many downsides to moving constantly, it can also be fun and exciting. Renting, although there are contracts, is much less permanent than buying a home. If a new work opportunity came up or my husband wanted to do a fellowship across the country, we could pick up and do that. In many ways, I feel like owning a home weighs you down and prevents you from freely pursing many opportunities. I’m sure there is a great feeling of ownership when you have a piece of Earth to call your own, but for right now, I’m craving the ease and flexibility of a rental.

I truly hope to be a homeowner one day, even though it will be many years down the road. Still, I look forward to finally picking the city that we’ll call home for many years and either finding or building our dream home. I’m still a little jealous of the path that many of my friends have taken in terms of home ownership. Yet, even though their path looks nice and safe, I’m also kind of enjoying my bumpy ride.

How about you all? Do you currently rent? Or, if you are a homeowner, what are some things that you love and hate about it?

Share your experiences by commenting below! 

***Photo courtesy of http://www.flickr.com/photos/csessums/4589510413/

$109.82 Giveaway – Community and Charity 10% Monthly Blog Income Give Back # 25 – October 2013 Edition

The 10% give back giveaway fun rolls on for the month of October!

In case you missed the first 24 editions of the 10% Blog Income Give Back, after doing some thinking at the beginning of October 2011 about what direction I want this blog to grow and evolve towards in the future, I decided that any income made from this blog would have more significance to me at a personal life values level if I knew that a portion were being given back to the following places:

• 1) The readers – Obviously, without you here to read my articles and interact with my ideas, there would be no blog in the first place (let alone blog income). As such, it is only fitting that you receive a portion of any blog income.
• 2) Charitable organizations – If you’ve read my blog before, you know that I’m a big believer in donating a portion of my money to charity. Each year, I donate between 5-10% of my income to the National Multiple Sclerosis Society as part of the Bike for MS fundraiser that I do. Beyond the good that is done by donating your money, getting used to contributing to charity is also a good practice to emulate the actions of affluent individuals (T. Harv Eker discusses this in his book, Secrets of the Millionaire Mind, which I would definitely recommend reading if you have a few hours).

Because of these considerations, I’ve decided that each month going forward, I’m going to give away 10% of my net (after-tax) blogging income/profit to My Personal Finance Journey readers (5%) and to charity (5%). Listed below is how the process will work:

• After each calendar month passes, I’ll tally up my net blog income and determine what Dollar value correlates to 10%.
• I’ll post the giveaway (similar to this post you’re reading now), and you’ll have approximately 2-3+ weeks to enter.
• Once the giveaway is over, a grand prize winner will be announced, and that winner will then select what charity they’d like to have 5% of my blog income sent to. Once the giveaway entry window ends, I’ll send out the money to the blog reader winner(s) and personally drop off the charity donation, if possible.
• So far, I’ve been very happy with the success of the October 2011 – September 2013 give backs. Listed below is a summary of what we’ve accomplished so far with the give backs.
  • Current total given to charity = $2,218
  • Current total given to blog readers = $947 

Details of October 2013 10% Blog Income Giveaway

How to Enter the Giveaway – Deadline to Enter is 11:59 PM, October 31st, 2013

Like previous months, I’ve decided to use the RaffleCopter giveaway management tool to handle sign-up facilitation for this giveaway, so simply go through the steps listed in the widget below to enter the running for the prize and accumulate entry points.

There is no limit to the amount of points you can earn. If you refer 10 subscribers – your name will have accumulated 170 entry points! Or, if you link to the giveaway more than once, you can accumulate those 10 entry points multiple times. You can also retweet the giveaway and/or share other My Personal Finance Journey articles via social media sites once per day. In the event of a tie, I will be using a random number generator to select the winner.

Important instructions: After you complete an entry method, make sure to click and fill out the “I Did This” or “Enter” button in the widget so that I have a record of your points.

a Rafflecopter giveaway

Remember, the deadline for entries will end at 11:59 PM, October 31st, 2013 (a little over 3 weeks from today – the start of the give back). Good luck to you all! Please contact me if you have any questions. After the deadline for entries passes, the winner (one with the most points accumulated) will be contacted via email to receive their prize.

How to Save Money With the Heating and Cooling of Your Home

The following article is by MPFJ staff writer, Miss T from Prairie Eco-Thrifter. If you want to learn how to live your dream life in a sustainable, healthy, and money savvy way, check out her site here.

Did you know that heating and cooling your home takes more energy than other household systems and accounts for between 45 and 55 percent of your utility bills, on average? This means that it’s an area where you could be able to save some money and often all that is needed is just a few simple strategies or changes put in place.

I’ve found that the simpler something is to use, the easier it is to set and forget, and this applies to many of the methods we use these days to heat and cool our homes. I mean, back in the days when the only form of home heating was a wood fire, you had to keep loading in those logs or the fire would go out and the warmth would go with it! This meant that you were very aware of just how much energy was being used, especially if you were the one chopping the wood!

The Whole-House Approach

The trick to saving money with heating and cooling in the home is to adopt a ‘whole-house’ approach. It is simply not effective to just focus on one room or area of the house; it is important to think of the building as one entity. It is possible to enjoy a saving in cash, as well as those nasty environmental emissions, of between 20 and 50 percent.

Don’t Forget to Optimize the Thermostat

The simplest strategy, and one you have probably heard before, is to adjust the thermostat that controls the temperature in the house. Just by lowering it 2 or 3 degrees in winter and raising it the same amount in summer will quickly show up as savings in next your utility bill. Now, I don’t like sitting around the house feeling cold in winter or sweltering in summer, but I’ve implemented this strategy and truly haven’t noticed much difference.

The thing is, you probably won’t even notice those few degrees’ difference either, on most days. In winter, if you are feeling a little cool, go add another layer of clothing; you really don’t need to be sitting around the house in short sleeves anyway. In summer, if you’re feeling a bit warm, grab a cool drink with loads of ice to help cool yourself down. These are much cheaper options than fiddling with that thermostat.

There are times when you don’t need to have the house cooling or warming to the extent that you do when everyone is home and hanging out. The ambient temperature at night certainly doesn’t need to very warm because everyone is snuggled up in their nice warm cozy beds. Save money by setting the thermostat lower during the night and set the timer to raise the temperature an hour before the first person gets up in the morning and an hour before the last person usually goes to bed at night. You will be amazed at the savings just this one simple strategy will achieve.

Likewise, when there is no one home during the day, the empty house certainly doesn’t need to be as warm as when people are home. Again, set the timer to reduce the heat before the last person leaves and to raise the temperature about an hour before the first person in the household is expected home. If you have pets indoors during the day, buy them a coat to keep them warm. Always use the ‘auto’ setting rather than the ‘on’ setting; this allows the appliance to cut in and out to maintain the set temperature, so there are times when it isn’t using power. The ‘on’ setting keeps the unit working constantly, obviously using much more power.

Keep Up With Appliance Maintenance

Air conditioners and furnaces have filters to keep the air clean and these get pretty dirty from time to time. Mark a date on the calendar to clean the filters every month and you will again notice a big saving off your power bills. The appliance has to work harder, using more power, when the filters are clogged and dirty.

Make sure that all the supply and return vents, baseboard heaters and warm air registers are clear and are not blocked by carpeting, furniture, drapes or anything else. Allow a free-flow of warm or cool air into and around the room to get the full benefit, with the least input of power. Don’t shut off vents to some rooms as this actually causes the unit to work harder, using extra power in doing so. When using exhaust fans in either the bathroom or the kitchen, make sure you turn them off after you have finished. Leaving them running unnecessarily is just wasted money.

Drapes / Window Dressings Are Your Friends!

A couple of years ago we fitted heavy drapes in our house, on all the windows that face south. During winter, they are open during the warmest daylight hours to let the warmth of the sun in and closed from mid-afternoon to morning to help maintain the warmth indoors. In summer, we keep them closed when the sun is on that wall of the house but open them late in the afternoon, as well as the windows, to catch the cool afternoon and evening breezes we are lucky enough to get here. We have had two winters and one summer since the drapes were fitted and the difference in our power usage was incredible. The savings have already paid for some of the drapes!

Buy Energy-Efficient Appliances

When you need to replace heating and cooling appliances, look for the most energy-efficient models that suit your purpose. These days it is quite easy to compare different models with the Energy Star rating system. These few simple strategies will really help you save money with the heating and cooling of your home and your household will also be helping the planet.

How about you all?

Share your experiences by commenting below! 

***Image courtesy of http://prairieecothrifter.com/wp-content/uploads/2013/08/iStock_000019284584XSmall-300×193.jpg

Being Honest Almost Cost Me Money

The following post is by MPFJ staff writer Travis.  Travis is a customer blogger for CareOne Debt Relief Services, and also appears weekly at Enemy of Debt.  Travis candidly shares his personal journey to pay off $109,000 of credit card debt and the tips he’s learned along the way. As a father and husband he provides a unique perspective on balancing debt, finances, and family.

“Honesty is the best policy.”

I’ve heard this phrase a million times, but apparently my cable company didn’t get the memo.

In preparation to move into our new home several years ago, I called our cable company to inform them of our move date.  They assured me that they would activate the service at our new address one day before they turned it off at our old address to avoid any kind of interruption of service.  The account would simply switch addresses, with the addition of activation fees for the new location.

I thought for a moment to argue the activation fees, but the excitement of moving into our brand new home far outweighed my need to question my cable company’s business practices.

The first bill came, and it was obviously not the same amount that I had been paying.   I just assumed that it had to do with the activation fees, and other things they likely didn’t tell me about regarding the location change of my account. I had too many other things to worry about at the time, so I just paid the bill.

When the second bill arrived, I assumed the amount due would be the normal amount I was used to paying.   To my surprise, it was actually significantly lower.  I examined the bill line by line and discovered that they were not charging me for cable internet. By looking online, I found that they hadn’t charged me for it the previous month either.

I heard that voice in my head repeat the phrase, “Honesty is the best policy!” so I called my cable company and told them what had occurred.   They corrected the mistake in their system, and confirmed that my next bill would include charges for my cable internet service.

Unfortunately, that’s not the end of my story.

When bill number  three came, it was sky high.  My mind raced as I poured through the pages of the bill.  They certainly did charge me for cable internet that month, plus the two previous months.  I hadn’t expected them to do that, but it seemed reasonable since I did indeed use the service. So I wrote out the check and paid the bill, and expected month four to be back on track.

 Wrong.

Month four’s bill featured broadband charges for BOTH our old address AND our new address.   It would take three more months to get my bill 100% accurate and to be refunded what they had overcharged me.  We were in our new home for 8 months before we received a correct cable bill.

Looking back at the ordeal, I certainly don’t regret calling to correct the initial mistake.  I couldn’t in good conscious accept having broadband service and not paying for it.  If I could do it all over again, I would have handled it slightly differently:

• I would examined the first bill and caught the mistake immediately
• I would have asked questions to ensure I knew what they were going to charge me for after the mistake had been uncovered.
• I honestly don’t know how I could have avoided the double charge.

I do wish I would have played the “What are you going to do to make this right?” card after they screwed up my bill as a result of me being honest.  My wife certainly would have, but my negotiating skills are not as finely tuned as hers.

How about you readers, have you ever had a situation where being honest ended up seemingly not being worth it?  How did it turn out for you?

Share your experiences by commenting below! 

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

Financial Mistakes New Parents Make: Have You Done Any of These?

The following post is by MPFJ staff writer, Melissa Batai.  Melissa is a freelance writer who covers topics ranging from personal finance to business to organics to food.  She blogs at Mom’s Plans where she shares her family’s journey to healthier living and paying down debt.

Most people know from a young age that there are certain life milestones they want to hit–graduating high school, getting their first job, graduating college, getting married, having children.  In addition, they have an idea of how they want these milestones to look (in no small part thanks to advertising).

Think of wedding preparations.  There are at least a handful of magazines entirely devoted to the wedding itself as well as two television shows (Say Yes to the Dress and Say Yes to the Dress Atlanta).  Note that I didn’t say marriage, because let’s be real, there’s not much money to be had in marriage–the money for businesses and advertisers is all in the big day.  A bride and groom who aren’t careful can easily spend over $20,000 having the “ideal” wedding.  It may not actually be the bride and groom’s ideal, but the ideal they are sold on thanks to advertisers.

Unfortunately, advertisers also get their hands into raising a child.  There are even more magazines aimed at pregnant women and parents.  There are no less than 6 magazines (likely more) catering exclusively to pregnant women.

While these publications have parenting articles, they are also filled with advertisements from the practical (such as baby monitors) to the impractical (such as wee wee tee pees to put over  a little boy’s private area when you’re changing him to avoid getting an unexpected spray).  Then, there are the many parenting magazines, once again rife without advertisements as well as articles about how to parent (which, of course, usually contain ways to spend money on your child).

Advertisers Shaped Me and I Had No Idea

I’m no different than others in that I imagined reaching these milestones long before I ever did and imagined what my life would be like.  Though I may have taken longer than many of my peers to reach the milestone of having a child (I had my first at 33), both my husband and I knew we wanted to do parenthood right.  For us, though we didn’t realize it then, it meant largely following parenting norms in the United States, without question. 

That was a huge financial mistake.

From the moment our son was born 9 years ago, we made a series of financial mistakes that affected our bottom line.  We made these financial mistakes even when we were trying to be financially conservative and not spend a lot of money.  For instance, I bought used cloth diapers and used them exclusively for my son.  I bought many of his baby and toddler clothes at garage sales.

Falling Into the Must-Have Trap

But even while making these smart financial moves, I was wasting money on other “must haves” according to advertisers.  Here are just a few:

1.  Having a theme for the nursery.  We tried to go low cost on decorating the nursery.  We painted the room a neutral yellow, but we bought a crib for $300.  Since all 3 of our kids used it, that wasn’t such a bad investment, but I could have easily spent a lot less buying used.  I chose a teddy bear theme and bought the throw rug, lamp, and wall paper off eBay.  Still, that was $100 I didn’t need to spend.

2.  Formula feeding.  My son was born weighing almost 10 pounds.  He had a big appetite (and still does).  I breastfed him for the first 11 months, but others around me convinced me that I wasn’t meeting all of his needs and that he’d do better with formula.  For 12 months, he was supplemented with formula, which easily cost us $500 to $1,000 that first year.

3.  Moving to a larger apartment (or house).  We were living in a one bedroom apartment, which was a great fit for us.  However, knowing that we were going to try for a baby, we moved into a two bedroom apartment a full two years before our son was born.  The one bedroom could have been a good fit through our son’s first year.  Therefore, we spent 3 years paying more for an apartment that was bigger than we needed.

4.  Buying a new vehicle.  This is the most egregious of all of our purchases.  My husband and I had bought a practical Toyota Echo three years before our son was born.  The car was almost paid off and had a manageable car payment of $250 a month.

Still, since we planned on having more kids and the Echo was a tight fit with a baby and all of his gear, we decided to buy a new Toyota Sienna mini van.  Our new car payment was $470 a month, which was difficult to swing on our income.  To make matters worse, we didn’t have our second child for another 4.5 years!

The smart move would have been to keep the Echo until we had our next baby.  Not only would the Echo have been paid off, but we would have been able to drive it for 2.5 years free and clear and save for a larger car.  My husband and I both still kick ourselves over this dumb financial move.

Other Must-Haves that People Fall For

The four mistakes we made had a significant effect on our finances.  However, there are plenty of other financial mistakes new parents make that thankfully we didn’t make.  Do you recognize any of these if you’re a parent?

1.  Buying designer kids’ clothes.  Yes, the brand name clothes from Gap, Janie and Jack and other retailers are adorable, but they’re also pricey, and your child will only wear them for a short while.  Chances are also high he’ll stain them up.

2.  Buying baby equipment you don’t need.  There are so many duplicate items out there for parents to choose.  Do you buy a crib, a playpen, a bassinet or a side bed co-sleeper?  Some parents buy all four.  What about a bouncy seat or a swing?  Likely your child will prefer one over the other, but you’ve likely bought both.  Baby gear and equipment can add up quickly, and you may not even end up using the majority of it.

3.  Quitting work too early.  Many moms quit work as soon as they find out they are pregnant when, barring medical issues, they could work up through their 8th or even 9th month and sock away some money in preparation for the child’s birth.

4.  Contributing to a college fund.  Some people set up a college fund and start contributing as soon as the baby is born.  While this is generally a smart idea, if you’re not contributing fully to your own retirement, it’s better to save for yourself rather than funding Junior’s retirement.  You know the saying–your child can borrow for his education, but you can’t borrow for retirement.

So parents, let’s hear it.  Have you made any big financial mistakes because you’ve inadvertently been affected by the advertising executives who make you feel that certain products or lifestyles are a necessity?  What’s your biggest purchase or money move that you regret after becoming a parent?

Share your experiences by commenting below! 

***Photo courtesy of http://www.flickr.com/photos/paparutzi/1062532768/sizes/m/in/

Yakezie Carnival – September 29th, 2013 Edition!

Welcome everyone to the September 29th, 2013 edition of the Yakezie Carnival!

About This Carnival

For those of you unfamiliar with the Yakezie Personal Finance Blog Network, it is the web’s largest, most involved, and most organized group of personal finance and lifestyle bloggers. Participants in the network collaborate multiple times throughout each day on the Yakezie forums and through other mediums. You can view all of the details at the “About Yakezie” page by clicking here.

Each week, the members and challengers of the Yakezie Network submit their best articles to be featured in the Yakezie Carnival. And, today, it is My Personal Finance Journey’s honor to be the host!

Don @ MoneySmartGuides writes Top Money Saving Tips for the Techy Generation – There are many money saving tips but with the changing of technology, new tips are commonplace. Here are a handful of money saving tips for the techies.

Suba @ Broke Professionals writes Save on Entertainment Costs with Cable or Satellite – The price of everything is going up. Child care, groceries, transportation costs; you name it, you are paying more for it now than you have in the past.

Don @ Money Reasons writes Why Are Auto Insurance Rates Different In Some States? – You even wonder why auto insurance rates differ in some state dramatically than in others? Read more to find out why, and please comment on what you think!

LaTisha @ Young Finances writes Will I Have to Buy Health Insurance? – The Affordable Health Care for America Act was signed into law on March 23, 2010. The Supreme Court ruled that Obamacare is constitutional.

Ryan @ Cash Money Life writes Could a Splurge Be a Positive Thing? – Sometimes it is OK to splurge and spend a little extra on something fun or frivolous. But it’s important to know when to spend the money, and when not to.

krantcents @ KrantCents writes Financially Preparing for Future Goals – Life is expensive and meeting various financial demands often calls for early preparation. Maybe you’re planning an upcoming vacation. Or perhaps you want to save for your kid’s college education or plan your retirement. Regardless of your life goals, here are tips to prepare your finances.

Wayne @ Young Family Finance writes Easing the Pain of Student Loan Debt – With tuition prices getting higher, debts are hard to pay off. Here are some things you can do to ease the pressure of student loan payments.

Hank @ Money Q&A writes How To Save Money On Your Mobile Phone Bill – Mobile phone bills can be a burden on anyone trying to live on a tight budget. But, you can save money on your mobile phone bill with these great tips.

Maria @ The Money Principle writes Smart driving can be cheap – Smart have introduced another car in their range that specially targets the 21 year olds. Driving with Smart can be cheap, stylish and trendy.

Eva Baker @ TeensGotCents writes Starbucks Coupons – Shopping With Sarah – Sarah has found a way to get a great deal on her favorite drink. Did you know that you can buy Starbucks coupons – all sorts of coupons – even gift cards?

Crystal @ Married (with Debt) writes I Don’t Care if My Wife Hits the Lottery – I am going to discuss the things that I evaluated when I purchased my term-life insurance policy with a death benefit of $2 million.

Cindy @ MidLife Finance writes 10 Travel Tips I Learned During Summer Vacation…So You Don’t Have To – We actually had many great trips this summer — but learned several things (and avoided some problems) through research, experience and some fancy footwork.

Kyle @ The Penny Hoarder writes 5 Quirky Businesses Posting Growth in Difficult Climate For Retailers – Given how difficult it has been for many companies to get ahead, bosses and marketing teams have had to ensure that they come up with killer ideas in order to try and expand.

Roger the Amateur Financier @ The Amateur Financier writes 10 Truly Unusual Investments – A list of unusual investments, including collectibles, peer-to-peer, and crowdsourcing, as a means of diversifying investments and providing profits in the future.

Tushar Mathur @ Everything Finance writes Time Is Money So Invest It Wisely – Time is money, so invest it wisely. Do this by creating time to better yourself whether through reading, exercise or spending time with those you love most.

Corey @ 20s Finances writes How to Get Raise – If you want to earn more money, there are a number of things you should do.

Cindy @ MidLife Finance writes Flying Solo – Go when you want, and do what you please while you’re there. No arguing with someone else about food or pillows; if you’re in the mood for Mexican or an extra soft-top, you’ve got it.

Cat Alford @ Budget Blonde writes 5 Money Saving Tips for DIY and Design Projects – Want some money saving tips for DIY and design projects? Well, look no further than today’s post! I really miss doing DIY projects!

Michelle @ The Shop My Closet Project writes One Month until FinCon13! So excited! – I bought a ticket for this conference. I’d never gone to a conference outside of work conferences and I’d barely gone to conferences for work. I had no idea what to expect. It was the best $100 I spent last year.

Ted Jenkin @ Your Smart Money Moves writes Here’s Why Your Friends Are Going Broke – Most of the time when we talk about personal finance, topics including credit card debt, savings, investments, insurance, and coupons creep into the

Crystal @ Budgeting in the Fun Stuff writes The Art of Choosing Between An Experience And A Possession – So you have extra money – do you buy stuff with it or buy an experience with it? Here is my argument for the experience.

Michelle @ Diversified Finances writes My Emergency Fund Is Fully Funded – Our emergency fund is finally fully funded. WHEW! Since I am switching to full-time self-employment, we have been really focused on building it back up. A couple of months ago, I drained our emergency fund completely so that we could pay the ol’ student loans.

Michelle @ Making Sense of Cents writes Are you going to FinCon2013? Here are some fun things to do in St. Louis! – As some of you might know, the 2013 Financial Blogger Conference starts on October 17 (one month to go!). I am very excited, and it will be my first time meeting other bloggers, which still makes me sad that it’s been this long.

Emily @ Evolving Personal Finance writes How Much Effort Do You Put into Getting Rewards or Deals? – We went down a rabbit hole finding discounts for a department store purchase, but I’m not so sure it’s worth the time.

Kurt @ Money Counselor @ Money Counselor writes Buy a Foreclosed Home? – The U.S. home real estate market is recovering, but plenty of foreclosed homes remain on the market. Is now a good time to consider buying a foreclosure?

Anton Ivanov @ Dreams Cash True writes How to Get a Free Credit Score – Your credit score is just as important as your credit report. Our guide explains how to get a free credit score from Credit Sesame in just a few minutes.

Andrea @ So Over This writes Saving Up for a Down Payment by Yourself – As many potential homebuyers are quickly discovering, buying a house nowadays requires a down payment.

Buck @ Buck Inspire writes Backup Your Data Regularly To Prevent Data Loss Seth Brundle! – Last Labor Day, I had a delightful chat, for the podcast, with Benny Hsu of the Get Busy Living Blog and the creator of iPhone apps like Photo 365 and Gratitude 365. Ironically, he asked about my interview breaks and I told him how the Podcast Answer Man (Cliff Ravenscraft) freaked me out about using computers and software to do podcasts.

Monica @ Monica On Money writes Why You Don’t Need The iPhone 5S – Before I became frugal, I bought the iPhone 4, iPhone 4s, iPad, and Macbook Pro on the day that they were released! BUT, the iPhone 5S is different and you don’t need it.

Holly @ Club Thrifty writes Saying Goodbye To My Dream House – Even though we have the money, we cannot buy our dream house. Read more about the tragic details in this post.

Barbara Friedberg @ Barbara Friedberg Personal Finance writes Investing & The Fed: How Will My Portfolio Be Impacted? – The Feds actions are directly related to your investment portfolio. Learn what investing moves to make now.

Daniel @ Sweating The Big Stuff writes One Way Car Rentals Are Really Cheap – I rented a car from Boston to New York because it was significantly cheaper and more convenient than taking buses and shuttles to all the places I needed to go.

FI Pilgrim @ FI Journey writes How To Create A Strategic Plan For Your Finances – If you have ever been in business, you have probably been exposed to a strategic plan in some form. Here is how to create a strategic plan for yourself!

Ray @ Squirrelers writes International Diversification with Stocks – Diversification is often seen as important when considering asset classes for investments. But what about geographic diversification?

TTMK @ Tie the Money Knot writes What Should You Do if Your Spouse Can’t Quit Spending Money – Have a spouse that can’t control spending? This post discusses the topic and how people can approach different styles

Matt Becker @ Mom and Dad Money writes Buying a Car: How to Negotiate With the Dealers – Check out my exact step-by-step process for negotiating a killer price on your next car. The best part: it can all be done through email!

Robert @ The College Investor writes 3 Ways to Find More Money to Invest – If you’re looking to cut some costs so that you have more money to throw at your investments, here are three easy ways you can do just that

Robert @ Entrepreneurship Life writes Metrics to Measure Your Business Website – Every business today should have a website. Whether you run a restaurant, retail store, or service business, you should have a modern, functioning website. Here are some metrics to track to help you know if your website is making it to customer eyes and if it is meeting customer needs.

Mr. Utopia @ Personal Finance Utopia writes Are Frugal People Loners? – Does a frugal lifestyle inherently conflict with an active social life? Social activities can be expensive, so how does a frugal person stay on track?

Christopher @ This That and The MBA writes The Best Financial Lesson I Ever Learned – My bond funds have returned about 7% per year and my stock funds have returned about 4% per year. During the craziness of 2008, when the market crashed again, my colleagues were in a panic because they lost 40% of their money.

Mr. MWD @ My Wealth Desire writes 13 Ways to Solve Not Having Enough Money to Live on – I prefer making more rather than spending less, but I try to do both. Keeping bills low is certainly part of my financial plan.

Brian @ Luke1428 writes Plan Your Budget Around These 5 Expenses – Knowing how to allocate money to all your budget categories can be overwhelming. So for starters, begin your budget by looking at the Big Five expenses.

Little House @ Little House in the Valley writes Prefab Method Homes – Recently I found Method Homes, a prefab home company that has reasonable priced homes and great designs.

John S @ Frugal Rules writes Christmas Shopping That Won’t Break the Bank – It may a bit early to think of Christmas as it’s a little over four months away, but by planning out your spending you have a much better chance of buying gifts everyone will love and still be frugal and thus not busting your budget.

Miss T. @ Prairie Eco Thrifter writes 5 Ways to Cope with Moving Back Home – Here are 5 ways to help you cope with moving back home.

Deacon @ Well Kept Wallet writes Getting Out of Debt: 5 Steps to Eliminate Your Debt Quickly – When your are looking to accomplish something, it is a lot easier to make progress when you have some steps to take. Otherwise it can be challenging to even figure out where to start. You also don’t want to have too many steps, you want to keep it simple so that you don’t get frustrated in the process.

Pauline @ Reach Financial Independence writes Interview with Jason Hull, a $397 money course and $25 Amazon gift card giveaway! – Today I am delighted to welcome Jason Hull from Hull Financial Planning. I’ll let him introduce himself and his new Winning with Money course.

Pauline @ Make Money Your Way writes How to make money as a TV/Movies extra – Tonya shares how she made money as a TV extra and how it really is behind the scenes.

KK @ Student Debt Survivor writes Please Seat Us in the Happy Hour Section – Half price drinks taste so much sweeter. Sitting in the bar might save you, just ask your hostess before you sit down.

Anton Ivanov @ Dreams Cash True writes Portfolio Planning Basics – Opening Appropriate Investment Accounts – Learn about the different types of investment accounts, including retirement, taxable, Traditional, Roth, 401k Plan and IRA accounts.

Jessica Moorhouse @ Mo’ Money Mo’ Houses writes For Love & Money Friday – Financial Topics Every Couple Should Discuss – In order to get our finances all organized, my husband and I have decided to get together every Friday to discuss a new money topic. Here are just a few topics we’ve planned on discussing in the coming weeks.

Well, that wraps up this week’s Yakezie Carnival. Next week’s edition will be hosted by Jen @ The Happy Homeowner. You can submit your post entries at Blogger Carnivals.

Until next time!

-Jacob

Reverse Mortgage – What Is It And Can It Help You?

The following is a post by MPFJ staff writer, Kevin Mercadante, who is a professional personal finance blogger, and the owner of his own personal finance blog, OutOfYourRut.com. He has backgrounds in both accounting and the mortgage industry.

You’ve undoubtedly seen the ads on TV for reverse mortgages – former Tennessee State Sen. Fred Thompson is doing one of the more common commercials right now. It seems like a made to order situation for a senior citizen who is struggling with finances but doesn’t want to sell their home.

Reverse mortgages have their advocates – and no small number of critics too. But all of the hype aside, what is a reverse mortgage, and how can it help you or a loved one?

How does a reverse mortgage work?

Reverse mortgages are available from several different sources, but by far the most common is the US Department of Housing and Urban Development’s (HUD) mortgage arm, the Federal Housing Administration (FHA). They offer federally insured reverse mortgages in the form of Home Equity Conversion Mortgages (HECM).

Reverse mortgages work in opposite fashion from traditional mortgages. Instead of you paying the lender for the loan on a monthly basis, the lender makes monthly payments to you, as the borrower. As it does, the amount of your mortgage increases. And unlike a traditional mortgage, you do not have to repay the loan until you die, sell the house or move from it as your primary residence.

You have to be 62 years old or older, and use the money as an extra source of income, to make home improvements, or to pay for medical expenses. In order to do this, you have to either own the home free and clear, or have a very small remaining mortgage balance left.

The proceeds of the loan are tax-free, and there are no income restrictions for qualification purposes. The amount of the mortgage you can borrow is determined by the value of your home, your age (the older you are the more you can borrow), and of course the rate of interest. HUD has a reverse mortgage calculator that will help you to determine the amount you can borrow under the program.

According to the US Department of Housing and Urban Development, you can select from five payment plans:

1. Tenure – equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
2. Term – equal monthly payments for a fixed period of months selected.
3. Line of Credit – unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is exhausted.
4. Modified Tenure – combination of line of credit and scheduled monthly payments for as long as you remain in the home.
5. Modified Term – combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.

Should you or a loved one take a reverse mortgage? Let’s take a look at both sides of that question…

The case for a reverse mortgage

Given the right combination of circumstances, a reverse mortgage can be worth considering. Some of the many advantages include:

• It gives you access to the equity in your home to pay for living expenses.
• It can allow you to stay in your home if you don’t have enough money otherwise.
• The proceeds can be used to repair the home or cover medical expenses
• You are not required to verify income.
• No monthly payments are required – the program pays you based on the payment plan you select (see the list of five payment plans above).
• In the HECM program, a borrower can live in a nursing home or other medical facility for up to 12 consecutive months before the loan must be repaid.

A reverse mortgage may work best if the purpose is to pay for home improvements, or to satisfy medical expenses, and in the smallest loan amount possible. This will avoid the complete stripping out of equity that a large loan amount will result in, or the ultimate destruction of equity that could result from the need for a steady income for many years.

The case against a reverse mortgage

Unfortunately, there are at least as many reasons to avoid reverse mortgages. Some of the more significant negatives include:

• You will have to pay mortgage insurance on the loan.
• The loan will ultimately cause you to lose equity in your home.
• If you change residences (other than the above mentioned move to a nursing home for up to 12 months) you will have to repay the loan.
• The amount you can borrow against the house will be less than what you will get on an outright sale of the property.
• You will have to pay origination fees in order to obtain the loan.
• If the equity is drained and you still can’t afford the house, you will have to sell, but with less equity coming out of the sale
• The loan will leave less money in your estate for your heirs.
• There are lenders who prey on the elderly and are less than reputable; the Federal Trade Commission offers some warnings and guidelines on this issue.

As a general consideration, if a senior citizen is in a position of not being able to afford to keep his or her home, it may be best to sell the property and avoid the reverse mortgage altogether. The sale of the home will result in a greater amount of proceeds, as well as avoiding the restrictions that come with a reverse mortgage.

How about you all? Have you taken a reverse mortgage, or do you know of anyone who has? Do you believe that it is an option worth taking – or disaster in the making?

Share your experiences by commenting below!