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Carnival of Retirement – February 18th, 2013 Edition
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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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This edition includes many retirement articles along with posts that will help us get there. Enjoy these great posts from around the Internet!
Top 5 Editor’s Picks
1. Roger Wohlner @ The Chicago Financial Planner writes 4 Signs of a Lousy 401(k) Plan – It is important that you make the most of any workplace retirement plan available to you. New required disclosures about the costs of the plan and the underlying investments were introduced in 2012 and are a good start. However, 401(k) plans are still a mystery to many of the workers who participate in them and sadly to many of the employers sponsoring these plans. Here are 4 signs that your 401(k) plan might be lousy.
2. FMF @ Free Money Finance writes Real Estate 101: Summary – Throughout the Real Estate 101 Series my goal has been to introduce prospective and beginning investors to the world of real estate investing. Specifically I have tried to answer some basic questions, dispel some myths and misconceptions, and give actionable advice that can be used to move towards becoming a successful investor. As I finish the series I hope that the information provided here has mostly met that goal.
3. Jason @ Work Save Live writes Best Online Tax Preparation Software – H&R Block, TurboTax, TaxACT, FreeTaxUSA – To take the guesswork out of which online tax software is right for you, we’ve taken a tremendous amount of time to examine the best – and most popular – online tax preparation companies to determine which has the best software for your particular tax situation. See the differences between TurboTax, H&R Block, TaxACT, and FreeTaxUSA.
4. Paul Vachon @ The Frugal Toad writes Winter Storm Nemo and the Importance of an Emergency Fund – What does the massive Winter Storm Nemo have to do with the need to have an emergency fund? In short, everything. Nemo is symbolic of any un-foreseen event that may disrupt one’s income or cause a financial hardship. From a simple power outage to a long-term illness, being prepared to handle an emergency can mean the difference between peace of mind and having your family’s world turned upside down.
5. Emily @ Evolving Personal Finance writes Should You Count Your Employer’s Contribution into Your Retirement Savings Percentage? – If you get an employer match to your 401(k), do you count it toward your target savings percentage or ignore it? I have a new suggestion for how to account for it.
And listed below are the best of the rest!
Marvin @ Brick By Brick Investing writes Selling Options — How To Start Your Own Casino – A brief description detailing the benefits of selling options.
James Petzke @ This Is Common Cents writes Financial Superpowers: The Automagic Climate Controlled Super Suit – If you want to retire earlier, considering adapting to different temperatures to save money on heating and cooling.
Michael Kitces @ Nerd’s Eye View writes Safe Withdrawal Rates In Today’s Low Yield Environment – Walking On The Edge Of A Cliff? – What’s a safe spending amount in retirement, given today’s low-yield environment? Is the 4% rule still safe, or does it need to be trimmed given today’s market conditions?
Mary Rhodes @ Fine Tune Finances writes Are you Saving Money Just to Save? Or are You saving With Purpose? – Human nature dictates much time and money is wasted when we don’t have a goal. This also applies to our financial life, in short your goal your reason for saving, or purpose. If you are saving money just to build up a bank balance you are not likely to be successful at it.
Jen @ Master the Art of Saving writes Preparing To Buy A House: The Score – Buying your first home can be an exciting and stressful experience all in one. When we bought our first house, I really didn’t know what to expect. Maybe I should have done a little bit of research ahead of time, but what’s done is done.
SFB @ Simple Finance Blog writes 4 Money Management Tips For College Graduates – You have just graduated from college, and you are about to join the working class. Here are 4 Money Management Tips to set you up on the right path.
harry campbell @ Your Personal Finance Pro writes My First Default With Lending Club – With today’s pitiful interest rates, it’s hard to sit there and invest your money in CD’s that are returning 1 or 2 percent. So if you’ve been searching for alternative investments you may already know about Lending Club. But if you’re new to the peer to peer lending scene, you can read my first review of Lending Club here.
Crystal @ Budgeting in the Fun Stuff writes Why I Use a Credit Card (And How To Leverage Yours) – If you can’t be disciplined enough to pay off your balance in full every month, then you probably shouldn’t have a credit card. But it works for me.
Passive Income Earner @ The Passive Income Earner writes Pay Your Mortgage or Invest It – Do you pay your mortgage down first or do you invest? Which one gets you ahead further?
MMD @ My Money Design writes Believing In Yourself After Finding Out That You Suck – Despite what other people think of you, believing in yourself will have to come from your own hunger and ambition. Only you know what you’re capable of accomplishing.
Wayne @ Young Family Finance writes Money and Relationships: Some Advice to Keep in Mind – Talking about money with your spouse can be difficult, but it doesn’t have to be. There are many successful strategies to broach the topic.
Evan @ My Journey to Millions writes Maybe There Is Yield Out There! Bank Bonuses Offered by Kasasa – I couldn’t ignore a recent article from CNBC on the topic titled, “4% Interest, Without Fees: Too Good to be Checking.” The article highlights a new type of checking account that works with local banks and credit unions.
Corey @ 20s Finances writes Five Ways to Achieve Your Financial Goals – Very rarely do I meet someone who doesn’t care about achieving financial success. Simply put, everyone wants to have more money than they know what to do with. Who doesn’t right? That’s why so many people waste their money on lottery tickets. Yet, as we all know, very few achieve this goal. But, it isn’t for a lack of trying.
Peter @ Bible Money Matters writes Scottrade Review: Top Rated Brokerage for Customer Service, Low Fees and Commissions – When I’ve been searching for which brokerage company to use, one of the companies that kept coming up with positive reviews from others I know was Scottrade. No only do the have low costs when it comes to fees and commissions, they also have great customer service, a wide range of research and tools available to all users, and an easy to use interface on the web and mobile. So let’s do a Scottrade review.
Alice @ Hurricanes, Panties & Dollars writes Shopaholics are like Superheros – I ended up spending around 9 hours shopping (with an official shopaholic) by my side. When I finally got home, I was freakin’ exhausted; not to mention broke as…
Lazy Man @ Lazy Man and Money writes Your 401(k) Is Costing You $155,000!?!? – No one really knows how much the 401(k) investing fees are going to cost you and everyone is different. However, even conservative estimates from Wall Street sources in that article pin it at $20,000.
Bryan @ BryanMaltier.com writes How I Plan To Generate Passive Income This Year – This article is a guest post from MyMoneyDesign.com and is focused on detailing his plans this year to generate additional passive income. In it, MMD discusses his 4 main opportunities – to continue building up his blog, build a niche site, write an E-Book, and invest in dividend stocks.
Matt @ Living in Financial Excellence writes The Wow Factor: Getting the Most Bang for Your Buck – When you think about making a purchase, have you ever thought about rating it on a scale of 1 to 10, with 1 barely moving the needle and 10 being a big, exciting WOW?
Amanda L Grossman @ Frugal Confessions writes My Frugal Resume: Contributing to Our Household’s Finances in More Ways than Earning – It’s no secret that I enjoy funneling as much of our income as possible into our savings accounts.
Ted Jenkin @ Your Smart Money Moves writes How To Read Your Investment Statements – You have a college degree from a good four year school. Perhaps you went on to get an MBA from a fantastic post graduate program.
Kyle @ The Penny Hoarder writes 5 Mortgage Saving Ideas – When it comes to cutting your budget, you probably start with incidental expenses like eating out or having digital cable. But it’s also important to pay attention to what kind of money you can save even on the necessities, like your housing payment.
Miss T. @ Prairie Eco Thrifter writes 5 Investment Strategies for the Wary Beginner – You might be surprised that you can get started in investing fairly easily, and that it doesn’t have to be all that complicated. Here are some ideas that the wary beginner can use to get started:
Suba @ Broke Professionals writes How to Watch Your Expenses Like a Hawk – You’ve heard it before, saving money – like losing weight – is as simple as watching your inputs and outputs.
Joe @ Midlife Finance writes Money Secrets – Have a bad money secret in your life? Confessing feels great…but what are you doing to make it better? (Feel free to comment anonymously — we’re all friends here.)
Little House @ Little House in the Valley writes Recognizing Financial Patterns – The other day I had a moment of clarity; I was speaking to someone as interested about personal finance as myself, and realized I keep repeating a bad pattern. Until that moment, I hadn’t been able to see the pattern or even acknowledge that I had a repeating financial pattern.
Roger the Amateur Financier @ The Amateur Financier writes Money and Child Raising: Preschool, Yay or Nay? – If you’ve been reading the past several weeks of these Monday posts here at The Amateur Financier, you’ve noticed that I’ve been covering some of the choices
A Blinkin @ Funancials writes 99 Problems: Are You a Sort-Of Good Saver? – You may remember me (and other bloggers) mentioning the $999.99 giveaway. Believe it or not, the dollar amount is not completely random. There is a purpose for it.
Grayson @ Debt Roundup writes The First Step to Recovery is to Admit You Don’t Have a Budget – When you have any problem, the first step to recovering is to admit the problem. The same goes with money. The first step to getting your finances in order is to admit that you don’t have a budget.
NoTrustFund @ Where’s My Trust Fund writes Financial Wisdom From A Nonagenarian – Words of wisdom from a lady who has been around the block a few times.
Tony @ We Only Do This Once writes We Are All Experts – Many people have spent a ton of life energy in a quest to discover their passion. And for many of them, once they found it, that was enough. Finding the thing that lights them up inside satisfies the quest. But some people want more than that—they want to live their passion.
CAPI @ Creating a Passive Income writes Playing the Inheritance Game for Passive Income – When it comes to inheriting money, there is no other way to do less, or in some cases, more work for what will be considered a passive income. For those who are blessed to be part of a family that has a fortune to pass on, then your entire job in life becomes maintaining your place to inherit the goods.
BARBARA FRIEDBERG @ Barbara Friedberg Personal Finance writes HOW TO MEASURE RISK & PROTECT AGAINST IT – Measure investment performance, investment risk, & protect against investment risk.
Jules Wilson @ Faithful With a Few writes Why You Need to Diversify Your Income Sources – Diversifying your income is the best way to protect your financial future in this economy. Learn why you should and how best to diversify your income sources!
MR @ Money Reasons writes 2013 Late To The Stock Market Strategy – I’m going to share my Late to the Stock Market Strategy that I’m hoping will make 2013 a block buster year for me!
Jon @ Novel Investor writes IRA Contribution Deadline Almost Here – There is one important thing you need to do before you file your taxes. Don’t miss the IRA contribution deadline for the 2012 tax year.
John S @ Frugal Rules writes 4 Reasons Why Having an Investment Plan Will Save Your Butt – Investing in the stock market can be difficult for many, especially if they have no plan in place. An investment plan can help guide your investing decisions so you’re working smarter and not harder, which will in turn help your long term investing approach.
Darwin @ Darwin’s Money writes These Mutual Funds Actually Beat The Index. And “The Market” – Mutual funds rarely beat their index, but in this niche, managers returned over 20% in 2012 while besting their index as well – is it worth switching back from ETFs to mutual funds?
Don @ MoneySmartGuides writes 3 Secrets to Retiring Well – I read an article recently in Money Magazine regarding retirement. The author pointed out three secrets to retire well. They include: Embrace Change: As life happens, sometimes our plans need to change and we have to rethink retirement.
Ashley @ Money Talks Coaching writes Video: Reaching Your Goals – Hey there! I have another video for you today. Today I’m reviewing a great tool I’ve been using that will help you reach your goals.
Daniel @ Sweating the Big Stuff writes What Was Your First Passion Project? – My first passion project was my blog that I worked on for 40 hours a week while bored at my day job. What was yours?
Maria @ The Money Principle writes My Father’s only investment – My Dad made only one investment in his life: my education.
Glen Craig @ Free From Broke writes Signs You Have a Bad 401(k) Plan and What to Do About It – A 401(k) plan is generally a good thing to have at work. But not all plans are created equal. You may have a bad 401(k). See how to spot a bad 401(k).
Jason Hull @ Hull Financial Planning writes The Value of Mortgage Shopping – Most people would rather spend a weekend shopping for a car than spend the same amount of time shopping for a mortgage. Here’s why they should reconsider.
***Photo courtesy of http://farm7.staticflickr.com/6007/5962693743_7e2e9eb152.jpg
How To Save Money In The Garage
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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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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.
To be honest with you, I never really thought about finding ways to save money in the garage.
I mean, it’s just a place for the car, yard tools, and to store things we don’t want in the house, right? I guess our garage looks pretty much like everyone else’s; full of all sorts of odds and ends, a bit of a mess – with only just enough room for the cars.
Getting Started – Cleaning it Out
It was when I got sick and tired of seeing the mess every day that I found there were in fact ways I could save some cash here. I decided to clean the whole thing out and I set aside a weekend to do the task. Let me tell you now, one weekend was not nearly enough time! We ended up with piles of sporting and camping equipment, bikes and scooters, old toys, boxes, tools and all manner of extraneous objects, spread all over the yard. Emptying the garage was the easy bit; we then had to sort, organize and repack things.
Anyway, I’m not here to tell you about the horror time I had cleaning out my garage. I want to tell you some of the ways I discovered I could save money there.
Money-Saving Idea #1 – Check for Proper Insulation
Firstly, it was high summer when I decided to clean out the space, and what I discovered was just how hot it was in there. It was more noticeable when the space was empty and the longer I was in there, the hotter it became. Compared to the rest of the house, the temperature in the garage had to have been between 10 and 15 degrees higher.
Looking around, I figured out why; there was absolutely no insulation in the space. This apparently is quite common; builders save money by cutting corners like this in a garage. There was no lining on the walls or ceiling at all and the heat just poured in. The garage door had gaps on either side and underneath which would let in both heat and cold drafts. When I checked the wall that was common to the house, I could feel the heat radiating through that inside wall. This meant, of course, that we were using extra power (i.e.: wasting money) to cool this room because of the heat passing through the wall from the garage. When I thought about it, I realized the same would be true in winter; the cold from the garage would be coming through this common wall as well and costing us extra to heat the house. So, making sure your garage is lined and/or insulated, and your garage door has draft strips fitted, are both great ways to save money.
One trip to the local hardware store later, and I had enough insulated lining boards to do the whole space. While I was there, I also bought supplies to fit a mezzanine shelf under half the ceiling to store some of the ‘stuff’ that we just had to keep. I figured this would help with the insulation as well as provide extra storage. I hope this will mean that the garage will be tidier in future. Being a bit of a home handyman, I was confident I could do the job myself, but I called in a friend to lend a hand. Even if you had to hire a tradesman, I think you would still be ahead financially, over time.
Money-Saving Idea #2 – Don’t Waste Money Buying Duplicate Items
During this extensive clean-up job, I realized one very important thing. Not only did we keep too much junk, but we also had multiples of some items. What did this mean? Obviously, because the garage was in such a mess, we didn’t know exactly what we had and therefore, had gone out and bought items that were already stored away in the messy garage! So, money-saving tip number two – a tidy, organized garage saves you money because you can see what you have. When the mezzanine was up, I wrote an inventory of what we stored up there, laminated it and stuck it to the garage wall. Now, we know exactly what is stored there and so we won’t waste money buying duplicate items.
Money-Saving Idea #3 – Hold a Yard/Garage Sale to Make Some Money from Your Excess Items
At the end of this exercise, we had loads of stuff left that we didn’t want to keep anymore, that the kids had outgrown or was broken. A neighbor suggested holding a garage sale to get rid of the excess. I wasn’t too sure about this, but the rest of the family decided it was a good idea – I think they all saw dollar signs in their eyes! Anyway, long story short, we did hold a garage sale which proved to be very popular. We put up notices about it around the neighborhood and in local shops and had a huge turnout on the day. Would you believe, we made more than $400!
So this is the final tip on how to save money in your garage; hold a yard sale and make money after de-cluttering and sorting out your garage. I’m certainly glad we did.
How about you all? Have you ever realized that more money than you thought was being wasted/spent in your garage? Have you used any of the tips above?
Share your experiences by commenting below!
***Photo courtesy of http://prairieecothrifter.com/wp-content/uploads/2013/02/iStock_000013133864XSmall.jpg
Banking Options After Moving to a New Country
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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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The following is a guest post. Enjoy!
However, inevitably, if you plan on working or even having a long term stay with family, you will require banking facilities in your new country. There are many good reasons to hold banking products in your new country, such as a safe holding for your money so as to avoid carrying high amounts of physical cash or avoiding foreign currency usage/conversion fees.
How about you all? Have you ever opened a bank account in a new country? Was the process more or less difficult than you expected it to be?
Share your experiences by commenting below!
***Photo courtesy of http://s0.geograph.org.uk/photos/12/24/122440_5b5c0462.jpg
Reader Profile – John from Frugal Rules
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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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Today, in the ongoing Reader Profile Series, we’re getting to know MPFJ.com reader and enthusiastic commenter, John, from the site, Frugal Rules (also shown in the picture to the right – Sorry to disappoint ladies, he says he’s married in the 2nd paragraph below). Let’s all give John a big round of applause for sharing his life with us and listen to his story. Enjoy!
Also, if you’re interested in sharing your own financial story/journey with us in a reader profile of your own, just shoot me a quick email, and we can get the ball rolling!
1. PLEASE TELL EVERYONE A LITTLE BIT ABOUT YOURSELF (BACKGROUND, EDUCATION, FAMILY SITUATION, ETC).
A veteran of the financial services industry, I have an MBA in Finance and experience as a licensed stockbroker. I’m married with three young children and run an advertising business from my home with my wife. I left my former position nine months ago to grow our advertising business, which my wife started three years ago.
2. DESCRIBE YOUR CURRENT FINANCIAL SITUATION (WHO WORKS IN YOUR FAMILY, HOW YOUR INCOME IS, YOUR EXPENSES, ETC.).
3. WHAT ARE THE CURRENT FINANCIAL CHALLENGES YOU ARE FACING (SAVING, PAYING OFF DEBT, STUDENT LOANS, MERGING FINANCES AFTER RECENTLY BEING MARRIED, ETC.)?
4. WHAT ARE YOUR PLANS FOR THE FUTURE (RETIRE EARLY; BUILD YOUR CAREER, ETC.)?
Our plans are to continue to build our business and see it grow to new levels of success. We’re actively working toward the point where we can be managing our own advertising agency.
5. WHAT’S YOUR BEST PIECE(S) OF FINANCIAL ADVICE AND/OR YOUR GENERAL PHILOSOPHY ON PERSONAL FINANCES?
My basic financial philosophy is simple – make your money work for you.
Whether you call it a “money plan” or a “budget,” it’s critical to know where your money is going and what it is, or isn’t, doing for you. Be wise about your spending and look for ways to make additional income with an eye toward the future. Life is meant to be fun, but that desire for entertainment has to be balanced with a thoughtful outlook that keeps the future in view.
Today should be enjoyed, but not at the expense of the future. Save now, invest now, and be wise with your money now so that you can afford to live how you want in the future, particularly after you retire.
***Photo courtesy of http://www.frugalrules.com/wp-content/uploads/2012/07/Profile-Picture.jpg
Getting Your Security Deposit Back after Renting an Apartment
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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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The following is a post by MPFJ staff writer, SK. SK writes about the reasons we get into debt, changing the patterns that get us into debt, and examines small business ownership and real estate investing at her blog, American Debt Project.
All of those moving costs, new furniture, and security deposits have added up over the years. But when it comes to security deposits, I have finally figured out how to protect myself as a tenant in order to receive the maximum security deposit when I move out. Here are the lessons I have learned over the years when it comes to getting your landlord to refund your deposit promptly:
Know Your Rights
- How long the landlord has to return your security deposit (In California it is 21 days)
- What can and can’t be taken out from your security deposit (unpaid rent-yes, replacing a carpet with normal wear and tear-no)
- How much can be charged for certain items: In California, landlords can deduct the cost of cleaning or repairs to original condition up to $125 without sending you an itemized invoice. If you knew this, it would be a lot easier to dispute a $175 cleaning fee.
Document Everything
Before you relinquish the keys, take note of every possible item that you might be charged for and if possible, have an approach to not getting charged for it. I was really nervous that my landlord would charge me for the damage to the corner of a cabinet that my dog had chewed. Thankfully, she didn’t charge me anything, but if she had, I would be protected from paying the entire cost of the cabinet, since the cabinet was not new upon move-in. Knowing these things made me more comfortable and ready to handle any charges that might come my way.
Start with the Friendly Approach
However, in the apartment before this one, the process was not as easy. The management company not only didn’t want to return my $300 security deposit, they wanted another $600, most of which was for replacing a carpet and damage to the paint. When I got that notice, I was inflamed. I tended to get more angry back then! I immediately started writing an angry, righteous letter detailing all of the reasons why I didn’t owe them, they owed me. Later that day, I told my friend, who is a politician, about the issue. He spends all day negotiating with people and making people feel good. I figured whatever advice he gave me would probably work. He immediately told me not to send the letter. “Why don’t you go down there and talk with them?” He told me to go in with an easy, friendly approach, and if I showed them I hoped they would help me, they would be more willing to be reasonable than if I had sent an angry letter.
So, I went in and spoke with one of the community managers (it was a huge complex) and it worked! They charged me $100 for cleaning, and I got my $200 security deposit refund back a couple weeks later. Lesson learned: don’t start off on the defensive when someone is holding your money. If you’re reasonable, they can be reasonable too (most of the time).
How about you all? Do you have any great tips on getting your maximum security deposit back?
Share your experiences by commenting below!
***Photo courtesy of http://www.sxc.hu/photo/1365469
How to Avoid Being Fleeced by Contractors
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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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But, scam contractors are clever. They exist because they know how to push people’s buttons. How can homeowners protect themselves from being suckered into what seems like a great deal, only to realize their mistake too late?
Here are some of the top warning signs to look for when considering a contractor:
He does a surface inspection. Even if your repair or renovation seems like standard fair, a good contractor should do a thorough study of what will need to be done and then explain it to you. What’s the problem? What needs to be done, and how will he do it? Does he foresee any potential issues cropping up down the line? If he just does a quick once-over and says, “Yep, pretty basic…”, be wary.
You want to know a) that your contractor really does know how to handle this project, and b) that he’s willing to be upfront with you about the work involved so that you don’t get socked with any unexpected “extra” expenses as he starts working.
He won’t give you anything in writing. No matter the size of your project, your contractor should provide you with a detailed written estimate outlining all labor and parts costs anticipated, potential extra work that may need to be done and its cost, and several options if you’ve asked for price levels (say, premium counter tops versus basic ones).
If your guy gives you a verbal quote, insist he put it in writing. Anyone who’s hesitant to do so should be immediately scratched off your list.
He’s dismissive of the need to have permits. By law, contractors must have all applicable permits, licenses, and registrations for the types of work they perform in the towns they perform it. This is for homeowners’ protection, to ensure that contractors are properly insured and will do the work to code.
You can verify whether your contractor’s permits are up to date by calling the building department of your town, city, or village. If your guy dismisses your project as “too small to need a permit” or tries to persuade you to take out a homeowner’s building permit (which places all the liability on you), send him packing.
He uses pressure tactics. Shady contractors, just like shady salesmen, have plenty of tricks up their sleeves to force you to commit now, even if you’re not ready. If someone is dangling “limited time” promotions in your face, claiming you can get a massive discount because it’s their slow season (which is conveniently about to end), or pushing for financing options you don’t want to sign up for, it’s a sign that they’re not on the up and up.
My husband and I once invited a pair of contractors to give us an estimate on our roof because we were trying to get an idea of how much we’d need to save up. (We didn’t plan on having the work done for a few years yet.) When we explained this to them, saying that we had some debts to pay down first, they actually tried to persuade us to take out a home equity line of credit on our house so they could do the work that week, while materials costs were still low. (They were about to go way up, of course.) We showed them the door.
He offers to do the work “off the books.” Never agree to pay a contractor under the table. He may claim he can give you a discount for paying in cash (without a written contract) because he works for a big contractor but is doing a little work on the side to earn some extra income for himself, etc., etc. But most likely, he’s trying to a) avoid having to pay taxes on his work, and/or b) avoid a written agreement that would hold him responsible for a certain level of work.
He “just happens” to be in the neighborhood. Our house is in a predominantly older community; most of our neighbors are the original homeowners in their 70s and 80s. And I have never, in the dozen neighborhoods I’ve lived in, seen such an array of contractors and utility providers and cable companies trying to hock their services door-to-door. Why? Because my neighborhood is a prime target for people looking to talk their way into a shoddy deal.
If someone comes to your door and can point to their company’s sign on your neighbor’s lawn, saying “We just did work over at the Jones’s and wanted to let you know we’re available,” this is potentially alright, and they should be happy to leave a card or a brochure with you and leave it at that. If someone shows up on your step saying, “I just finished a project around the corner and have all this material left over I need to unload. If you let me do your roof, I’ll give you a huge discount,” shut the door in his face. Legitimate contractors don’t buy way more material than they need for a project, and they certainly don’t go door to door trying to foist those materials off on random people on the spot. If it feels odd or off, it probably is.
How about you all? Have you seen any other shady contractor tactics that homeowners should be wary of?
Share your experiences by commenting below!
***Photo courtesy of http://www.flickr.com/photos/tstadler/477625147/
Making a Career Change…Gracefully
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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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Click here to enter my free $51.95 giveaway for a chance to win 5% of My Personal Finance Journey blog income and give another 5% to a charity of your choosing! Deadline to enter is January 31st, 2013.
The following is a post by MPFJ staff writer, Kevin Mercadante, who is 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.
Many people would like nothing better than to quit their current job – and leave their career entirely – in favor of one that they’re sure they would like better. If you are unemployed, or certain that you will be in the coming weeks, that might be a winning strategy. But if you’re career is fairly stable, and your main reason for wanting to go into a new one is because you are not happy doing what you’re doing, then your best bet is to make the change gradually and gracefully.
Taking a career plunge comes with enormous risks, especially if you have a family to support. By making the move gradually, you can reduce or even remove those risks entirely. It will take some patience, but will be worth the effort.
If you want to make a career change with less risk, try some of the following…
Taking full advantage of your “highest and best use”
This is actually a term used in real estate appraising. An appraiser is assigned the task of providing a value for a property based on its “highest and best use”. People are just like property – we have multiple abilities, or “uses” – but there is usually one that represents our highest and best. That is the career in which you have the highest earning capability.
Chances are, your highest and best use as a career is the one you have right now. This is because your current career is almost certainly where you have the greatest earning potential. That’s why you’re still in that field. But rather than run away from this, you should plan to use it to your advantage.
If you’re earning a comfortable income, you can use that to bridge your self into the new career, and there several ways that you can and should do this.
Get your finances ready
We don’t often think about personal finances in connection with a career change, but it’s actually more important than it seems at first glance. More often than not, a career change involves a reduction in income. You’ll need to be prepared for this every bit as much as you will need to master the skills of your new career.
Making your career change gracefully will give you a huge advantage here. It will give you the time that you need to payoff any lingering debts, and to build up your savings. The elimination of debts will enable you to live on less money, while additional savings will provide a cushion that will help you to survive on the new, lower income.
If you decide to make a career change, one of your first steps should be moving as much money as you can into both debt reduction and savings. Success on both fronts will not only make the financial transition easier, but it will also give you confidence that your finances can withstand the move.
Make constructive use of your spare time
The best way to make a career change is to start right from where you’re at right now. That will mean making constructive use of your spare time.
It’s not uncommon to sense being out of control when it comes to time, and this is particularly true if you have a fairly demanding career. But, perhaps the first step toward making a career change will be precisely to get control of your time.
There are certain steps you will have to take in order to make a career change, and you will have to make sure that you have the time to take those steps. Take a close look at your schedule and see where you can free up as much time as possible to do what you need to do to make a career change. You’ll be surprised what you can accomplish in just two or three hours a day, or just 10 to 15 hours per week.
What do you need to spare time for?
Get any training you can before making the jump
If you are changing careers, you’ll probably need to get additional training that will at least get you up to the minimum qualifications required for the field. Use your spare time – while you’re still in your current career – to both investigate and to pursue any training and/or qualification requirements that you will need for the new field.
This may mean taking courses, doing home study, or even working out some sort of apprenticeship. Whatever it is that you will need, take advantage of the time you have now – as well as your current employer’s paycheck – to acquire it. As a rule, it will be easier and less expensive to obtain training and qualifications before entering the new field than it will be once you’re in.
Online courses are a great way to achieve this additional training because they allow you to complete a university degree in your spare time. For example, if you feel trapped within your current career and want to begin applying for management positions, an advanced degree like the Master of Public Administration and Policy, might be a great option. This particular degree provides you with skills in administration, economics, budgeting, organizational analysis, managing assets, project management, and leadership. If you are looking to break into management, a program like this might be the best way to go.
Take advantage of the time that you have right now.
Get to know people in your new career ahead of time
In order to enter any new career field it will be essential that you have viable contacts within the new field. That’s another task that you can accomplish before leaving your current job.
The Internet makes that easier than ever. Surf the web and look for networks centered around the new career field. Get to know as many people as you can, as they can not only be potential leads for jobs, but they might also point you in the right direction as far as your career development is concerned. The more people you know in the field you’re going into the easier the transition will be.
There is one caveat here however. You have to find a way to network outside your career field without making it obvious to your current employer. Any indication that you may be looking to jump ship could cause you lose your job ahead of schedule. For this reason, you may want to start the networking venture until you are closer to the time you actually want to make the change.
Start with a part-time arrangement
Still another potential spare time application will be getting into a part-time arrangement in the new career field. This is not possible in all jobs, or in all career fields, but where it is possible to arrange, it will prove the be a huge advantage.
In many career fields, having at least some experience will open doors that will otherwise be closed. A part-time arrangement will not only give you hands-on experience, but it will also teach you the “language” of the new field (every field has one), as well as giving you some valuable contacts within the industry. If a part-time option is open take full advantage of it.
Making the leap of faith
If you’ve done at least most of the steps above, when the time comes to make a break from your current career, you should be able do so with a lot more confidence. You’ll have the training and qualifications that you need, your finances will be prepared, you’ll have networking contacts and hopefully, at least some light experience.
All of that will come about because you will have taken advantage of the time while you’re still in your current career. Does that sound like a plan?
How about you all? Have you had to make a career change in the past? If so, how did you make the transition so that you didn’t upset anyone?
Share your experiences by commenting below!
***Photo courtesy of http://www.flickr.com/photos/usfsregion5/5931918596/
Couch Surfing – How Does it Work and Is it Right for You?
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The following post is by MPFJ staff writer, Shondell of Call Me What You Want, Even Cheap. She blogs about her recent car loan and mortgage pay off and a whole bunch more. Check out her blog right here.
Last month, I wrote about house swapping, which is a fascinating way to travel and have the luxury of being in a home. There is also couch surfing, which is another great way to travel.
Couch surfing is a common expression used to refer to home stay networks, accommodation sharing, and hospitality services. These groups are essentially comprised of a network of travelers who serve as guides or hosts for people who are visiting their country.
Couch surfers are people who travel a lot. They love to see different places and meet people who share the same passion. Through the information and help that members get from the community, they get an inside look of the best places to visit and the most interesting things to do while in the city or country. The best part about couch surfing is that hosts allow travelers to stay at their homes during their visit.
How It All Began
In 1999, Casey Fenton came up with the Couch Surfing Project. The idea sprang from his experience when he found a cheap flight from Boston to Iceland. He sent random emails to students from the University of Iceland looking for a place to stay and got over 50 replies with students offering him accommodations. During his flight back to Boston, he started to develop the ideas which soon materialized as the Couch Surfing Project.
During the early stages in 2004, the site had more than 6,000 members. The years that followed, he had an increasing number of members. By 2011, CouchSurfing became the most widely used free accommodation site with approximately one million active members.
The Relationship Between the Hosts and the Surfers
With couch surfing, the hosts act as the community’s backbone since they go to great lengths just to make travels easier and more convenient for the surfers. They provide a place to stay, meals, and even take the visitors out on tours. Surfers, on the other hand, are those who travel to many different places around the globe and make connections in a foreign land.
Fees and Charges
Unlike hotels that often charge exorbitant amounts, the accommodation and hospitality services offered by the hosts are absolutely free. Members who are reported charging their surfers would be eliminated from the community. Registration is also free. Members can post their pictures, the accommodations they offer and other information that would make them trustworthy.
Verification of the Security of Members
In terms of security, networking often establishes the reference. Several factors like gender, age, location and activity may also be considered by members who are looking for possible accommodations.
The couch surfing community increases trust and security through three methods and these are all visible on the profiles of the members who will be the potential hosts or the surfers. It includes the following information:
- A Personal Vouching Method
This is where a member gets vouched by other members who had the chance to meet him or her through couch surfing. A member normally starts getting vouched from site founders. Being vouched for three times or more simply means that the person has already gained the trust of several others within the community.
- Personal References
After using the service, both surfers and hosts are given the option to leave personal references. The user may also give negative references if deemed necessary.
- Credit Card Verification (Optional)
Members may use credit card verification as a way of ensuring security while using the hospitality services offered by the couch surfing community. This is the primary income-generating source for the community. The verification fee may vary depending on the country of registration in order to promote economic fairness.
Who Are Qualified to Become Ambassadors
In general, any member who wants to help promote the services of the couch surfing community and volunteer for different duties on the site can become an ambassador. As ambassadors, the members are expected to act as role models and follow the group’s code of conduct. Ambassadors are delegated with certain tasks like welcoming new members, performing administrative roles, promoting the use of the site and answering questions from members.
Over the years, the couch surfing community has developed a culture that aims to make travelers feel welcome and safe, even in a city far away from home. Those who want to feel more secure while enjoying their travels abroad would surely be thankful for the existence of such a community that offers hospitality services. If you love to travel and see the beauty of the world at a lesser cost, couch surfing would be a great option for you.
How about you all? Have you ever couch surfed? If so, how did you like it?
Share your experiences by commenting below!
***Photo courtesy of http://pixabay.com/static/uploads/photo/2012/04/13/11/50/sleeping-32057_640.png
Life Insurance: At What Age Do I Need It, and How Much?
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The following is a guest post. Enjoy!
A BRIEF SYNOPSIS OF AGE-BASED COVERAGE
HOW MUCH COVERAGE DO I NEED? QUESTIONS TO ASK
- How much of the income generated by your family do you supply?
- If tragedy were to strike, by what means would your family get by? Do they have any support other than what you provide?
- Do you financially support any family members that aren’t an immediate part of your household? (i.e. grandmother in a nursing home, a home nurse for another relative, etc.)
- How much money do you want set aside for your children to attend college?
- Do you currently have any debt that you’re paying down? If you were to pass, would your family inherit the responsibility of that debt?
- Are there trusts for your children, or grandchildren, you want to establish?
- Is there a charitable organization that you support that you wish to leave money to?
- Will your family inherit any applicable estate taxes, if you were to pass?
- Have you considered how inflation will affect the future needs of your family?
No matter your age or where you live, it’s important to get the right information when considering coverage. Life insurance shoppers should do their research before pulling the trigger and always use a trusted provider.
How about you all? Do you have life insurance yet? If so, how did you make the decision that you needed the coverage? What type of coverage do you have – term, whole, or universal?
Share your experiences by commenting below!
***Photo courtesy of http://farm4.staticflickr.com/3579/3684862431_73e0e0cf5a.jpg
Living Like No One Else, So Later We Can Live Like No One Else
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Welcome to My Personal Finance Journey! If you are new here, please read the “About” or “First-Time Visitor” pages to find out more about us. If you would like to receive free updates on articles like this by email, then sign up here or you can subscribe to the RSS feed. Also, check us out on Twitter or Facebook. Thanks for visiting! Keep on learning!
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Rebounding from Very Limited Income
Part of the reason our income was so low was because I launched a new freelance writing career, and my husband was finishing his Ph.D.
Money was VERY tight for both 2010 and 2011, which is part of the reason we now have debt. Honestly, though, another part of the reason we have so much debt is because we weren’t as careful financially as we should have been.
We weren’t as careful as we are being now.
The Future Looks Bright
That time just isn’t here yet.
However, we are getting some breathing room; our tax returns this year will show that we are finally at the median income level.
Living Like No One Else
We’ve learned from our past mistakes, and we’re now not spending money we don’t have. Even though our income has grown, we still have to pay the piper, so to speak.
Since we were so broke before, we put off things. We have an 8.5 year old car with 113,000 miles on it. We put off any non-necessary car repairs for over a year, and now we can’t put them off any longer. We need to find $2,000 to replace the bald tires, change the spark plugs and brakes, and add brake fluid, to name just a few of the repairs.
Our television, that we have had for 12 years, just died. We don’t have the luxury of replacing it right now.
Our blender is a garage sale find that I bought 14 years ago for $3. It is on its last legs, as is our microwave.
Our couch is 9 years old and is definitely no longer as comfortable as it used to be.
Our dining room table, which we bought 13 years ago for $25 at a consignment shop, only seats 4. We have 4 mismatched chairs, and my husband pulls up a folding chair that is missing the back. It fell off a few months ago.
I have recently lost a lot of weight, and I don’t have the luxury of going on a big shopping spree for clothes. Instead, we shopped at Goodwill and spent $50 on clothes that fit my new size.
Finding Power in Living Like No One Else
It’d be easy to be depressed, but instead, we’re encouraged.
Because we’re being smart and conservative with our money now, we know better times are ahead. We’ll happily scrimp now and work on paying down debt. Then, when we’re earning a good salary 3 years from now, we’ll be very comfortable. We’ll probably look back on this time and laugh.
I’m happy to live like no one else right now so later we can live like no one else.
Share your experiences by commenting below!
***Photo courtesy of http://www.flickr.com/photos/irrezolut/5662003627/sizes/m/