Live for Improvement

The Twenty Dollar Micro Business Challenge

2010-10-29T10:09:00.000-07:00

Everyone dreams about making additional income, but the idea of setting up a your own business can be overwhelming. That's the problem! Before making a single dollar, we tend to buy business cards, start building websites, designing logos, writing business plans, looking for investors, and scouting for employees. We burn out because this "additional income" just became another full time job. Stop it! There is no need to open 40 Jamba Juice locations, when a simple lemonade stand would suffice. Start small and let your business grow as needed.

How Small? Well....$20 dollars goes farther than you think.

Go to the bank and withdrawal $20 bucks cash. Put it in an envelope and write the date on it. You now have everything you need to start your own micro business. Below are some examples of micro businesses to get your creative juices flowing:

Antiquing-Go to a garage sale to see what you can find for under $20 bucks. Resell this item on Craigslist or Ebay for a profit.

Walk dogs - Buy some poop bags, doggy treats, and make some cheap fliers.

Hauling- Got a Truck? Put an add on craigslist offering to help someone move, or to take a load to the dump for a profit. Dump fees are $20 in my area, but Yard waste is free, you do the math.

Car Washing - Get some soap, an old towel and a Soft sponge.

Tour Guide- Do you live near a tourist hot spot? Try showing out-of-towners to the local must see sights.

Hobbies - If you already have a hobby like knitting, painting, photography, pottery, tying fly-fishing lures, or have a vegetable garden. Use the $20 to market these products.

Skills - Do you speak another language, know how to cook, understand Math, or great with computers? Try becoming a tutor for others that do not posses the same skill set.

Shine Shoes- Try hanging out in the financial district with some shoe polish, a cloth and a brush.

Bakery- Spread the word to co-workers, friends and family that you are willing to make custom baked goods for any PTA meeting, retirement party, or birthday for a nominal fee.

Find a Micro Business that works for you, and try running it for one month. If you are successful, than you can think about how to earn more. The simplicity of a micro business will earn you money quickly, without the complexities of a small business.

IVI Inc. Brings Live TV to the Internet

2010-09-30T10:50:00.001-07:00

The Seattle based company IVI Inc. may have finally bridged the gap between Television and the Internet. For years we have been able to watch previously recorded episodes of network TV on Youtube/Hulu. Then Slingbox came along and offered a way to stream your local cable channels from one location to any laptop or desktop. But until now we haven't been able to stream live local network TV from various locations around the country, to any computer in the country.

After downloading the IVI Player a Redsox fan living in Arizona can now watch the same live local NY broadcast of the game just like he was a block away from the stadium. During the commercials he can flip channels to check out the Mariners game and get local Seattle news and weather. Various local channels are now just a click away, no matter where you are. IVI lets you choose which brocast location of Fox you want to watch. It also allows you to pause fast forward and rewind live TV.

IVI makes it possible for me to watch live TV on my laptop during my commute on the train, just like I was sitting at home.

Here are some of the Pros and cons that I found:

1.) User interface is very easy to use.

2.) Picture is Clear, but not yet HD.

3.) Currently limited to NY and Seattle but more stations are coming.

4.) No buffer delay or pause when flipping channels.

5.) First month is free, but it costs $4.99 or $5.99 per month. (Still cheaper than basic cable)

6.) No Box or Equipment.

7.) It can be installed on multiple computers, but only one will play at a time.

8.) Includes all the major networks ABC, NBC, CBS, FOX

9.) Does not yet have all the regular cable channels.

Overall I am very impressed with the IVI player, and recommend it for couch potatoes on the go.

Emergency Waterproof iPhone Case

2010-09-20T15:08:00.001-07:00

My friend and I regularly go salmon fishing on the local rivers. While wading across the river he accidentally submerge his iphone. Now the screen is dark and the button doesn't work.

On our next outing I decided to carry my phone in a zip-lock bag as a safety precaution. I was pleasantly surprised to find that the touch screen still works while inside. The display can also be easily viewed through the plastic. This no-brainer actually works quite well.

The next time you go near water, try putting your cell phone in a zip-lock bag. It is a cheap way of avoiding a costly mistake.

Fight Quasimodo with a Yoga Ball

2010-09-20T13:47:00.000-07:00

Minding your posture can be a difficult and daunting task, especially if you are tall like me. At 6'3" I've started to realized that my old high school slouch is becoming a full on Montgomery Burns. I've never had back problems growing up, but as I get older there will be days when I feel soreness and tension. I consulted a Chiropractor, who recommended arching my back over a yoga ball twice a day. As embarassing as it was, I went out and bought a yoga ball. Now it has become my new favorite past time. After a long day, I look forward to coming home and stretching out my back. I've been sleeping better at night and my posture is improving.

How much time do you spend lounging on a couch, leaning over a desk, or stuck in traffic? When was the last time you stretched out your back. Maybe its time to swallow your pride, be a man, and buy a yoga ball.

RFID blocker

2010-05-14T08:22:00.000-07:00

Maybe I am just overly paranoid, but these days RFIDs are everywhere. They're in your credit cards, your cell phone, employment badges, public transportation passes, electronic toll booths, retail packaging. They are used to find lost pets, track livestock, and in some cases implanted in you.

If you are worried about someone stealing your identity or credit card information using a RFID reader, here is a simple trick for you:

Cut a piece of aluminum foil about the size of a dollar bill, and place it in your wallet. When your wallet is folded up in your pocket, any credit cards or ID badges wrapped inside the foil will be impervious to an RFID reader. I experimented at work, and sure enough my proximity card won't open my office door if there's a sheet in aluminum foil between the card and the reader.

Great Marinades and Seasoning for Free

2010-05-13T08:45:00.000-07:00

The summer grilling season is almost here, and the only thing better a marinated tri-tip, is not paying $4.00 for a bottle of marinade. Here's how:

We've all seen the marinaded meats behind the glass at our local grocery store, but what you may not know is that most butchers will happily add your choice of marinades, and seasonings to any meat you buy for free.

Our local Safeway, has a very friendly butcher. He's always talking about what's on sale, grilling techniques, and all his must try recipes. It seems like every time we go in he's got a new marinade. Routinely we'll select a nice package of ribs, steak, or chops, and bring it to the butcher counter. He'll ask us what kind of marinade we want, put the meat in a zip lock bag, and add a generous portion of marinade. The marinade begins soaking into the meat before we have even finished shopping, and it is usually ready to cook when we get home.

So, the next time you buy grilling meat, try having the butcher add a marinade or seasonings.

Understanding Time Constraints

2010-05-11T13:56:00.000-07:00

Always strive to do your best, but take into consideration uncontrollable factors like time.

Suppose we are entering a sand castle making contest, and the lucky winner will receive a new pick-up truck. You are probably already thinking about how to build your castle. Now ask yourself how time can affect the quality of your castle. If you were given a week to build the castle, it would probably include a tower, a mote, windows, and a working drawbridge. If you were only given 30 seconds, the castle would probably resemble a square shaped ant hill. In this example, time plays a significant role in the outcome of your castle, regardless of your effort. This concept carries over to many situations in life.

When you are confronted with any task, the first question to ask yourself is how much time and effort is needed to accomplish it. If while hiking, you come across a stream, you may want to use a log to make a temporary bridge. But if this stream was on your property and used daily to get to your house, it might make more sense to construct a proper bridge.

Trying to build the Great Wall of China in a day will surely lead to disappointment, just like using chewing gum to fix a plumbing leak is a bad idea. The appropriate time and effort must be factored into every task to get adequate results.

If my boss asks when I'll have a report ready, I usually estimate the time and add another day or two. This way when I finish early, I look like a hero, and if I run into problems I can still get it to him on time.

By understanding time constraints, you can better allocate you time and paved the way to achievable success.

Give Yourself a Raise by Managing Your Expenses

2010-04-02T09:18:00.000-07:00

Whether it's working overtime, or getting a second job, most people will do what ever it takes to maximize their income. Unfortunately hardly anyone pays attention to their spending habits. I'm here to tell you that earning and saving are one of the same. If you want to make more money, you don't have to impress your boss. You can just as easily pass on a night out with friends, or refrain from impulse buying dvds.

To put it in perspective, think about how excited you would you be if your boss raised you salary by $100/week. You would probably do cart-wheels down the hall. Now think if you went out for dinner and drinks with friends to celebrate, that same $100.00 could disappear in a matter of hours.

We need to looked at our expenses like we look at our income. If your boss shorted you an hour on your paycheck, you would probably march into his office and demand that it was fixed. Now how you would react if on the way home you noticed the grocery store accidentally charged you twice for a 24 pack of toilet paper. You may go back in and tell them, but then again it might just be more effort than it is worth.

Just remember whether your earning or spending, money-is-money-is-money. Finding a $5 bill on the on the ground, should be just as exciting as using a coupon.

Know Your home

2010-04-02T07:51:00.000-07:00

While making dinner the other day, half of our house lost power. All the lights in the the guest bedrooms, office, den and garage went out. But strangeley the lights in the kitchen, master, and living room still worked fine. After tracing the electricity back to the breaker panel, I found that it was not the wiring in the house but one of the power companies leads coming in that failed. I called PSE, and they came out within a few hours to restored power. It turns out there was a problem with one of the underground supply lines. This got me thinking about all the important things people should know about their home:

Be Able to Locate Your Utility Panels
Many people don't know where their electrical panel is, let alone how to shut off the water or gas in an emergency. Take a few moments to locate these items. Also consider buying a gas shut off wrench and keeping accessible.

Have it when you need it
Everyone knows how frustrating it can be to find a working flash light in the dark, but what about a fire extinguisher? If your house caught on fire, do you even have one to grab? Having a fire extinguisher can be the difference between a small kitchen fire and losing your home. At a cost of $15-$30 it is worth it. Most homeowner insurance companies will even give a discount for having one.

Lighting Pilots
Learn how to light the pilot on your water heater, fire place, or other applicable appliances. If the gas is ever shut off temporarily, you don't want to rely on a technician for warmth.

Important Documents
If you had to evacuate your home, how long would it take to gather all your important documents. Consider keeping your birth/marriage certificates, car pink slips, house title, social security card, emergency credit card, tax info, and any other important documents in a safe place that can be accessed quickly.

By taking a few moments to know your home, and organize the things inside it, you could save yourself some serious headaches in the future.

Find Your Motivators

2010-03-26T08:19:00.000-07:00

What gets you out of bed in the morning, makes you go to work, or inspires you to clean your house? The simple answer is motivation, but a more precise answer is each individual motivator. You get out of bed for that cup of coffee, or because its better than listening to a buzzing alarm clock. You go to work so you can provide for your kids. You clean your house because you in-laws are coming over. These are the behind the scenes motivators. Motivators are the reason that we do the things we do.

Suppose you have a co-worker who is notoriously late to work. Even with an important early morning meeting, he or she is 15 minutes late. Now suppose there's a $8,000.00 incentive for them to arrive on time each day for a week. I gaurantee that same person will find a way to be there on time. The difference in this scenario is the money motivator. Normally, the co-worker prefers the extra sleep, or the relaxed commute to being punctual. Negative motivators can also have the same affect. A boss could say "If you're not on time every day this week then you are fired!"

Everyday we do hundreds of tasks without fully understanding the motivators behind them. By taking the time to identify these motivators it helps us to validate our actions. If you don't want to take out the trash, find the motivator. Would you rather live with flies and the pungent smell of rotting food wafting through your house? Of course not, so take out the trash. Are you dreading doing your laundry? You'll be the one forced to go out in public looking like Steve Urkel because you ran out of clean close that fit. Are you avoiding the gym? It may be harder to avoid your swim suit this summer or the health hazards later in life. Do you hate sitting in traffic? Try sitting at home unemployed. There are reasons why we do things that we don't enjoy. If there wasn't, the action would be a wasted effort and meaningless.

Like a dog that sits for a treat, a job hunter dressing up for an interview, or the friendliness of a car salesmen, there are motivators behind all actions. Learn what your motivators are and these actions will have meaning. Chores and hardships will become logical.

Please feel free to comment, your input motivates me to continue writing articles.

Sell Your Old Books for Cash

2010-02-15T10:55:00.000-08:00

Today I tripped over a big heavy box in the garage. I vaguely remember crating it around with me from house to house in college, but never once opened it to see the contents. When finally got around to opening it this morning, I found a ton of old books.

My first reaction was to take them to the Goodwill or a used book store, but while Googling the nearest used book store I found:

http://www.cash4books.net/

Cash4 books buys used books. This easy to use site lets you type in the ISBN # located on ever book bar code for an instant quote. I only got a few dollars per book, but shipping is free with the sites printable shipping labels. After they get your books you will receive a check or Paypal deposit.

So if you have a ton of old books weighing you down, and cluttering up your house, check Cash4books before you donate them to Goodwill, you could stand make some easy money.

Stop Bad Mouthing Your Employer

2010-02-08T08:06:00.000-08:00

If you're stressed out, and having a bad day at work, don't vent your frustration with co-workers. It not only makes you look bad, but it makes your employer look bad as well. Bad mouthing only adds to an already stressful situation. It defames your character and does not speak very highly of your integrity. Bad mouthing your boss doesn't accomplish anything, and could even get you fired. This doesn't mean that you have to shoulder all the burdens at work. There is a big difference between complaining about your boss, and proposing solutions.

Complaining About Your Boss

It's easy to say "This is a poor way to run a business," or " We wouldn't have these problems if I was in charge." In reality, you are not in charge, and without proposing any solution, you are just complaining. Anytime you feel the need to lower your voice, you are probably bad mouthing. Finding faults in other people's actions is a spineless act, and should left up to gossipers and villains.

Proposing solutions

If you know how to make the business run more efficiently, by all means speak up. Suggest your improvement to the boss and your co-workers. If everyone is in agreement, you could be the hero of the company. A problem solver will advance within a company, while a bad mouther will fester in their own misery.

Avoid getting caught up in office politics, and stop bad mouthing your employer.

Quick Tip: Keep a Stash of Cash at Home

2010-02-02T08:16:00.000-08:00

I don't normally carry cash. I use my debit card for almost everything. Unfortunately their are times when cash is nessesary. Whether it's tipping the pizza guy, making change for poker night, or wheelin-and-dealing at a neighbors garage sale, it is always good to have at least some cash at home. There is no need to stuff your life savings in a matteress, but having access to $100 in small bills comes in handy.

Turbo Tax Online

2010-01-31T15:31:00.000-08:00

Today my wife and I went to Best Buy and bought the latest version of TurboTax, just like we do every year. Just before the installation, we discovered that Turbo Tax is available online for $20 less. Since our software was unopened, we were able to return it.

We used the online version for the first time, and highly recomend it. You don't have to install any sofware, and can access your tax filing from any computer. All of the version like Basic, Deluxe, Primere, Home Business, and Business are all available online.

Pay Paper Bills Upon Receipt

2010-01-28T10:34:00.000-08:00

We all have bills that are can't be automated. My local water company for example, doesn't have the technology to deduct money from my "Bills" bank Account, and the amount varies each month, so I can't use my banks reoccurring bill pay to issue a check.

The easiest way to pay these bills is upon receipt. If I'm thumbing through the mail and come across these type of bills, I whip out my check book right then and there. I slap a stamp on the envelope, and put it by the door for mailing. If I set it down on the counter, odds are that I'll forget to pay it. There is nothing more frustrating than getting a late fee on a bill that you had the money to pay for.

So try making it a rule to pay these un-automated bills upon receipt, you'll never be late again.

Quick tip: Life without the Snooze Bar

2010-01-25T09:14:00.000-08:00

Does it take the "Jaws-of-life" to get you out of bed in the morning? Consider changing your sleep habits. Here is a trick that I use to make my mornings easier:

Monday through Friday I get up at 5:15 am. I'm usually out the door just before 6:00 to catch the train. If motivating myself to get up at this time becomes problematic, I will plan a "sleep attack."

The Early Alarm Sleep Attack

Set your alarm an hour early, and crank up the volume. The next morning after you put your heart back in your chest, and return to DEFCON 5, go through your regular morning routine as usual. If everything goes correctly you should be walking out the door exactly 1 hour ahead of schedule.

Make sure you leave the house. Either go to work early, or stop at a coffee shop and read the paper. If you go to work early it might impress your boss, and help to compensate for your temporary sleep deprived zombie state. Do what ever it takes to get through the day. When you get home, you must stay up until an hour before you regular bed time. Before you go to bed remember to return your alarm clock to it regular settings.

The next morning you will wake up at your normal time feeling refreshed and life will be wonderful. Even 5:15am can feel like sleeping in.

Long Car Trips are Better with Audio Books

2010-01-22T07:56:00.000-08:00

Over the holidays, My Wife and I drove to California twice to see friends and family. We prefer to leave around 6:00 am, drive straight through and arrive just after 7:00 pm. To maintain our sanity during this 13+ hour drive, we listen to audio books cover to cover. A good audio book like Dan Brown's Deception Point can make the hands of a clock spin like airplane propellers while whisking you off to a far away land.

Passively listening to an audio book is much safer than chatting on a cell phone. "Drivers who talk on either handheld or hands-free cellular phones are as impaired as drunken drivers," according to experimental research conducted by Drs. Frank Drews, David Strayer, and Dennis L. Crouch of the University of Utah.

Instead of just staring at the road listening to the radio, you might consider an educational audio books. You could learn Thai, investment strategies, or even how to win an argument. If you are going to be stuck in the car for hours on end, you might as well get something out of it.

The next time you have a long drive ahead of you, try listening to an audio book and tell me what you think.

Quick Tip: $100 Tradeking Referrals

2010-01-19T15:39:00.000-08:00

Right now Tradeking is offering $100 for friend referrals. Provide them with the email address of your friend, and if they open an account, deposit over $1,000.00 and make their first trade, you get $100.00.

Any of you thinking about opening an account let me know. I'll even split it with you.

The Extreme Credit Card Challenge

2010-01-19T13:48:00.000-08:00

Get ready for my new Extreme Credit Card Challenge. It's the Nicorette for bad Credit Card spending habits, and if you are tired of unwanted credit card debt, than listen up.

Credit card debt is not a way of life! Don't become complacent with having it. Credit Card debt is a horrible addiction just like drinking or smoking. The only way to get rid of it is to stop spending, and start paying. Unfortunately most people just don't have the will power. There is another term for these people called addicts.

To combat the lack of will power I challenge you to a month without your credit card. See how many consecutive days you can leave your credit card at home. Many Alcoholics can easily go a day or two without a drink, but to abstain for a week or a month takes dedication. It is the same with your credit card. Are you such a junkie that you are actually depend on a credit card fix? Would your life really change if you were to only use a debit card or cash?

Starting tomorrow, take all credit cards out of your wallet and purposely leave them at home to test your addiction. Can you to survive a day without it? how about a week, or a month?

But what if there is an emergency?

Now you're talking! This is why starting and emergency fund is so important. Using a credit card in an emergency is the worst idea ever. Why would you want to pay interest on an already bad situation?

Comment on your progress, and how many days you've been credit card sober.

ADT Yard Signs: The Poor Man's Security System

2010-01-12T12:55:00.001-08:00

Recently a co-worker's home was burglarized. I use the term "burglarized" not robbed, because technically a robbery only occurs if the owner is present, and forced to turn over possessions. This misfortune, however got me to re-evaluate my own security.

According to ADT, "Homes with ADT® monitored security systems are three times less likely to be broken into than those homes without a security system." This does not surprise me, because the average burglar will not go near a home with an ADT yard sign, or window decals. The interesting part is that the signs and window decals are the cheapest part of owning a security system.

A yard sign and decals can be purchased on ebay for around $30-$50. These identifiers obviously don't provide the protection of an actual system, but it can greatly affect the odds of a break in. There are even companies that specialize in making fake security signs, but I heard burglars can tell the difference.

So, if you don't currently have a functioning security system at home, consider getting some authentic signs. It could be the best $30 you ever spent.

Never Buy less than $500 of Stock at a time.

2010-01-05T11:50:00.000-08:00

A while back I opened a Roth Ira Account, as should any financially responsible 29 year old. My contributions are automatically deducted from each paycheck, and deposited into my Tradeking account. I like Tradeking because they only charge $4.99 per trade, and make trading easy for a novice like me. I plan to max out my Roth IRA contributions once I get out of credit card debt, but for now I contribute $200.00 a month.

Since I am fairly new to investing, I would just invest the money as soon as it cleared the bank. I thought that the sooner it was invested the faster it would make money. The problem is that I would pay $4.99 each time I bought more stock. This greatly affected my earnings for each small purchase, especially since I'm paid bi-weekly. Here's why:

Scenario 1.)
A modest $100 is deposited into my Tradeking account bi-weekly. I use to invest it as soon as it cleared. After doing this for six months, I was paying $59.40 in commission fees for a mere $1200.00 invested. Those commission fees eat up 4.95% of earnings.

Scenario 2.)

Now the same $100 is deposited into my Tradeking account bi-weekly, but instead I wait to six months to invest. After six months I make a single trade. For that one trade I only pay $4.95 in commission. I still have $1200.00 invested, but the commission only consumes 0.4125% of my total investment. That is only a fraction of a percent and almost unnoticeable.

Buying less than $500.00 of stock it isn't worth the commission to me. Below is my breakdown:

I believe spending 1% to invest $500 is an acceptable cost, but ideally you want to save up as much as possible and buy in bulk. How do you regularly invest your Roth IRA contributions?

Allowance Formula for Kids

2010-01-04T12:23:00.001-08:00

My wife and I don't have any kids yet, but we are planning to in the next few years. With that being said, I came up with an idea that I wanted to run by all you parents out there.

After reading the article "Should You Pay Your Kids for Good Grades" on fivecentnickel, I developed a formula to calculate a weekly allowance for kids based on their grades.

[GPA-Unacceptable] x Rate = Allowance

Using this formula, each report card could set the tone for allowance payments. This enables an allowance to increase or decrease with the grades on each passing report card. I have no idea what the average allowance is for children these days, but changing the rate provides flexibility.

Example 1:
Your son Michael brings home a report card with a 3.29 GPA. He is not allowed to get less than a 2.5 GPA (C average). His pay rate is $10. And his allowance is paid weekly.

[3.29 - 2.5] x $10 = $7.90 per week

Example 2:
Your daughter Rachel brings home a report card with a 3.50 GPA. she is not allowed to get less than a 2.5 GPA (C average). Her Pay rate is $10. And her allowance is paid weekly.

[3.5 - 2.5] x $10 = $10 per week

Example 3:
Your other son Paul brings home a report card with a 4.0 GPA. He is not allowed to get less than a 2.5 GPA (C average). His Pay rate is $10. And his allowance is paid weekly.

[4.0 - 2.5] x $10 = $15 per week

Example 4:
Your oldest daughter Megan is starting high school, and brings home a report card with a 3.50 GPA. she is not allowed to get less than a 2.5 GPA (C average). Her Pay rate is $15 because she is older. And her allowance is paid weekly.

[3.5 - 2.5] x $15 = $15 per week

Example 5:
If you want to be really mean, you could even charge or fine your kids if they get less than an acceptable GPA.

[2.36 - 2.5] x $15 = -$2.10 fee per week

This formula rewards kids for working hard, and teaches them that there are consequences for their actions. It could also provide a platform for teaching personal finance and money management.

Please comment on whether this formula could work for your kids.

Don't Celebrate Victories Until You Cross the Finish Line

2010-01-04T10:00:00.000-08:00

It's easy to fall short of your dreams, if you don't follow through in your efforts. Whether you're a politician leading the polls, a boxer winning a fight, or a Nascar driver with one lap to go, something can always go wrong at the last second. It's Murphy's law to have a catastrophic failure just before the smell of victory. The phrase "it's not over, until it's over" is applicable in all aspects of life.

Focusing beyond goals, will usually ensure success. In football, it's much better to run a touch down into the locker room like Forrest Gump, than to get tackled on the 1 yard line doing your victory dance. Never assume the win until you've actually won.

In Hollywood movies, villains are unable to grasp this concept. With the hero captured, and the planet doomed, the villain decides to go off and relish in his own dastardly deeds. This often allows the hero time to escape and save the day. If only the villain would see his evil plans to the bitter end, he would be much more successful.

When buying or selling a house don't break out the champagne until the paperwork is signed and the new owner has possession of the keys. All too often, couples get there heart broken because a technicality prevents them from buying their dream home. It can be equally devastating to have a buyer back out last minute. Only, once the sale is final should you start dancing in the street.

New Years Resolution's

2009-12-31T08:32:00.001-08:00

Happy New Years Eve, enjoy time with your friends and family, and remember to stay safe! We'll be enjoying a low-key evening at a friends house playing Wii.

I haven't given my New Years resolution much thought, this year. It seems like the time is passing more quickly now. Below are a few things that I want to accomplish in 2010.

1. Enjoy more time with my wife, and our puppy Teagan
2. Pay off the last of my credit card debt, and be completely debt free.
3. Get rid of my gut that is starting to form.
4. Knock out the den wall, and maybe even put in some hardwood floors.
5. Live for improvement!

Forget Saving and Start Paying

2009-12-16T08:06:00.000-08:00

Everywhere you turn, people are recommending ways to save money shopping, but unless you actually use that money to pay off credit card debt, or contribute it towards an emergency found you aren't making progress. We all have a habit of living paycheck to paycheck, and when additional expenses like car repairs come-up, we grit our teeth and find a way to over come it.

Its time to start creating our own additional expenses, and forcing our lifestyles to compensate. Working backwards is a sure fire way to guarantee success. After all, you can't spend what you don't have.

Here how:

Start automating your credit card payments to an uncomfortable amount. If you regularly pay $300 dollars each month, crank it up to $500. You will definitely feel a lifestyle shock, but it might be the wake up call you need. Do you contribute $100 dollars per month to a saving account only when you remember to do so. Set up an automated monthly transfer of $300.00. The money will get zapped from your account whether you like it or not. Your lifestyle will change out of survival instead of at will. It's time to get serious with your finances. Implement the "30 day Zero rule." Lets get rid of debt once an for all, instead of just chipping away at it in your spare time.

Now is a perfect time to ramp up the amount you pay towards debt or an emergency fund. You can start 2010 with a bang, and directly see all you hard work in each larger payment.

Personal Finance and the Land of Make Believe

2009-12-15T12:41:00.000-08:00

"Fewer than four of 10 American adults have an emergency fund to fall back on in the event of some financial disaster," according to a nationwide Bankrate.com poll. And yet nobody seems to be the slightest bit worried. We still go about our daily routines buying lattes, going out to movies, and purchasing the latest gadgets. Who cares if we have a little credit card debt, or maybe a lot. It's not worth changing our lifestyle, right?

Wrong! As children we are raised to believe in happy endings, and fairy tales. Unfortunately as adults we learn that life isn't always fair, and bad things can happen to good people. You could lose your job tomorrow, then what? If a leaking pipe creates a breading ground for hazardous mold, could you pay to clean it up? What if you need a new transmission costing $3,500.00? What if Fido gets hit by a car and needs a $5,000.00 surgery? Can you afford those $6,000.00 braces for junior? Why did I have to get that $200.00 seat belt ticket? Emergencies happen all the time. We are all playing financial roulette with our lives, and everyone is thinking the same thing: I won't happen to me.

Well.... What if it does? Stop living in the land of make believe and start building you emergency fund now. If you don't you'll be sorry.

Take The Money

2009-12-15T07:58:00.000-08:00

In life we are sometimes faced with the decision to accept a sure thing, or risk it all for more. Just yesterday Jake Locker of the Washington Huskies announced that he will pass up an opportunity to enter the NFL draft next year. This would have guaranteed him a $12-$23 million dollar contract. Instead he will finish his senior year playing college football, with plans to enter the NFL the following season. This shows incredible heart and dedication to his team, but it could be the worst decision of his life if he's injured.

You see it all the time on a game shows like "Cash Cab", or "Deal or no Deal". The contestants chooses between walking away with a substantial amounts of money, or betting it all on hopes of hitting the jackpot. Clouded by greed and the excitement of the show, contestants go for the jackpot and lose.

In casinos, gamblers on a hot streaks also rarely stop to leave with their winnings. Instead they give in to temptation and continue playing. Soon all of the winnings are gone.

The rational decision is to humbly accept good fortune for what it is, and to not sacrifice windfalls in the name of greed. So, the next time you find yourself in this situation remember just take the sure money and walk away. I guarantee its better than nothing.

The 30 Day Zero Rule

2009-12-14T14:55:00.000-08:00

It amazes me that "the average outstanding credit card debt for households that have a credit card was $10,679 at the end of 2008." (Source: Nilson Report, April 2009) And yet we still use our credit cards regularly without remorse.

I am fed up with trying to pay down credit cards, that continue to grow in size. It's pointless!! That is why I am encouraging everyone to start using the "30 day zero rule."

30 Day Zero Rule:
From this point forward I will not allow myself to use a credit card unless that card had a Zero balance within the last 30 days. If you pay your credit card off each month, than you can use that card; but if you carry a balance for more than a month, you cannot use that card again until is has been paid off in full.

Any credit cards that currently have a revolving balance are subjected to this rule and therefore cannot be used. This is the only way to guarantee that your payments will actually decrease your debt.

Extra Alaska Air Miles at Safeway

2009-12-14T09:09:00.000-08:00

We live a block away from a Safeway, and do most of our grocery shopping there. It turns out that in Alaska, Washington, Idaho and Montanna, Safeway will contribute 125 Alaskan frequent flyer miles for every $250 dollars spent. My wife and I do have an Alaskan Credit card, that we could also use for additional frequent flyer miles, but our Chase Debit Rewards provides a better cash back reward. Since groceries is one of our biggest expenses, we can rack up points pretty quick.

During a single transaction at Safeway, our Credit Card-Fu is to use a Chase debit Rewards card, Safeway Club Card, the Safeway Alaskan Frequent Flyer Miles, and the Safeway gas discount.

For every $100.00 spent we get:
400 pts, 20% off on applicable items, 50 miles, and 3 cents off gas.

What are some of your Credit Card-Fu moves?

Quick Tip: Alway Bring a Pen and Paper to a Meeting

2009-12-11T11:50:00.000-08:00

Though obvious to most, it never ceases to amaze me how many people show up to business meetings without a pen and paper. Even if you don't take any notes, at least be prepared. Having the proper tools shows professionalism, while showing up empty handed implies that the meeting is a waste of your time.

I alway carry a pen on me, even when I'm just stepping away from my desk for a momment, but I have OCD problems. My little black book is also great for taking quick notes.

Secret Cash Stash

2009-12-07T08:34:00.000-08:00

According to balancedweightmanagement.com, the average American family goes out to eat 50% of the time. During the holidays, it's also customary to dine out more frequently with friends, family, and co-workers. Unfortunately, dividing the bill among large groups can prove to be a hassle. The restaurant may split the bill, but usually somebody gets stuck paying more than their fair share. In the spirit of Christmas, phrases like "I'll get you next time" and "mine is only 8.99, so here's $10" are nonchalantly exchanged like cheap white elephant gifts until those with only credit cards are left to make up the difference. After table negotiates, the waiter is presented with an array of cards resembling a jigsaw puzzle with vague instructions like"$25 on my card, $47 on his blue Visa, and here is the rest in cash." Most people forget to add tax and tip when adding up their menu items. Needless to say, friends are begrudged for having to cover for others, and the waiters almost always get screwed.

Having personally been on both sides of this transaction, my advice is to always carry a secret stash of cash in your wallet. Keep the stash separate from your regular spending cash, and use it specifically for these kind of situations. When the bill comes around, look at it carefully. Make sure to contribute enough for all of you consumptions, plus tax, plus tip, and maybe a little extra as a friendly gesture. By using cash responsibly, you won't be forced to pay for everyones elses meal, and you won't be placing a burden on others at the table.

10 Great Movies That You Never Knew Existed

2009-12-03T15:17:00.001-08:00

Below are some of my favorite indie films of all time. Don't be surprised if you've never heard of them. Many of these movie never made it to main stream theaters, but they are definately worth renting.

Surely there are more that I forgot, but this is off the top of my head.

Quick Trick: Keep Toilet Paper at Your Desk

2009-12-03T14:10:00.000-08:00

Take a roll of toilet paper from the bathroom at work and keep it in your desk drawer. It will come in handy for blowing your nose, cleaning up spills, or as an eraser for a dry erase board. Best of all it's free. No more spending money on a box of kleenex. Just a quick trick.

The Cost of Clutter

2009-12-02T07:51:00.001-08:00

When buying a house, we want to maximize the amount of space for our money. Real estate agents commonly do this by determining the "cost per square foot" when comparing homes. Determining the cost per square foot is simple, just divide the price of the house by it's size.

Price ÷ Square feet = Cost per square Foot

According to census.gov, the average price of a new home in the U.S. is $292,600, and the average size is 2,215 sq ft. This means that a square foot of space on your floor deems a value of $132.00. I don't know about you, but junk filled boxes occupy many square feet of my garage floor and the contents of each box are not worth $132.00. Now try to imagine all of the surface area of clutter in your house. How many boxes could you fill? Think of each box costing you $132.00. All the space you worked so hard to buy is currently being wasted by clutter.

Clutter is simply a poor allocation of resources. Would you allow a stranger to occupy a room without paying rent? Of course not, so why waste a room storing junk that will never be used. In either case you are paying rent or a mortgage for unusable space.

So don't ask yourself if the clutter "is worth keeping", ask yourself "is it worth paying $132.00 to keep?"

Send Your Finances on a Camping Trip

2009-12-01T08:08:00.000-08:00

Ever wonder why we spend our precious vacation time camping in the woods? Why we voluntarily sleep on an uncomfortable inflatable mattress inside a dirty tent? Well...Its because it makes our regular bed feel that much more comfortable when we return home. Camping gives us an appreciation for the modern conveniences that we normally take for granted.

Our spending habits, are another thing that many of us take for granted. With Christmas just around the corner, now is a perfect time to send your finances on a camping trip.

Financial Camping
After paying your mortgage, credit cards, utilities, and any other regular bills, try temporarily living off only 10% of your paycheck. This experience can be humbling, and only leaves room for the bare essentials. You may be spending more time at home living off rice and beans, but remember its only temporary.

While "Financial Camping" you may also have to pass up a night out with friends, and the sweatshirt on sale at the mall. You will have to prioritize your trips in the car, and pack a lunch to work. You will have to scrape to make artificial ends meet, but after its over, you will be left with a large amount of unspent money.

Unexpected expenses like car repairs and medical bills happen to all of us. We some how find a way to get past them. I have faith that you can survive a Financial Camping trip, and you'll be better off for it. Plan a Financial Camping trip on your calendar today, you won't even need time off from work.

2009-11-24T12:33:00.001-08:00

If you haven't already pulled your Thanksgiving turkey out of the freezer, than today is the day. According to USDA the following time is necessary to thaw a turkey:

Let's Talk Turkey—A Consumer Guide to Safely Roasting a Turkey

Fresh or Frozen?

Fresh Turkeys

Allow 1 pound of turkey per person.
Buy your turkey only 1 to 2 days before you plan to cook it.
Keep it stored in the refrigerator until you're ready to cook it. Place it on a tray or in a pan to catch any juices that may leak.
Do not buy fresh pre-stuffed turkeys. If not handled properly, any harmful bacteria that may be in the stuffing can multiply very quickly.

Frozen Turkeys

Allow 1 pound of turkey per person.
Keep frozen until you're ready to thaw it.
Turkeys can be kept frozen in the freezer indefinitely; however, cook within 1 year for best quality.
See "Thawing Your Turkey" for thawing instructions.

Frozen Pre-Stuffed Turkeys

USDA recommends only buying frozen pre-stuffed turkeys that display the USDA or State mark of inspection on the packaging. These turkeys are safe because they have been processed under controlled conditions.

DO NOT THAW before cooking. Cook from the frozen state. Follow package directions for proper handling and cooking.

Allow 1¼ pounds of turkey per person.
Thawing Your Turkey

There are three ways to thaw your turkey safely — in the refrigerator, in cold water, or in the microwave oven.

In the Refrigerator (40 °F or below) Allow approximately 24 hours for every 4 to 5 pounds
4 to 12 pounds	1 to 3 days
12 to 16 pounds	3 to 4 days
16 to 20 pounds	4 to 5 days
20 to 24 pounds	5 to 6 days

Keep the turkey in its original wrapper. Place it on a tray or in a pan to catch any juices that may leak. A thawed turkey can remain in the refrigerator for 1 to 2 days. If necessary, a turkey that has been properly thawed in the refrigerator may be refrozen.

In Cold Water Allow approximately 30 minutes per pound
4 to 12 pounds	2 to 6 hours
12 to 16 pounds	6 to 8 hours
16 to 20 pounds	8 to 10 hours
20 to 24 pounds	10 to 12 hours

Wrap your turkey securely, making sure the water is not able to leak through the wrapping. Submerge your wrapped turkey in cold tap water. Change the water every 30 minutes. Cook the turkey immediately after it is thawed. Do not refreeze.

In the Microwave Oven

Check your owner's manual for the size turkey that will fit in your microwave oven, the minutes per pound, and power level to use for thawing.
Remove all outside wrapping.
Place on a microwave-safe dish to catch any juices that may leak.
Cook your turkey immediately. Do not refreeze or refrigerate your turkey after thawing in the microwave oven.

REMINDER: Remove the giblets from the turkey cavities after thawing. Cook separately.

10 things that you didn't know Google could do!

2009-11-20T07:53:00.000-08:00

Everyone knows Google! Even the verb to "google" was added to the Oxford English Dictionary on June 15, 2006. It's the standard for searching information on the internet. But few people are aware of how powerful it really is. Here is a list of tricks that you probably didn't know google can do in addtion to regular website searches, shopping and Gmail.
(Click on Pics to enlarge)

1.) Calculations- google can perform basic math functions.

2.) Conversions-Most units of measure can be converted.

3.) Spellcheck- Just type a word in google, and it will present you with the right spelling.

4.) Correct addresses - If you type a partial address in Google it can correct it for you.

5.) Translate- google has the ability to translate phrases and documents in maost major languages.

6.) Flight Status- You can check a flight Status right from google.

7.) Stock Quotes- You can Type Ticker Symbols Directly into google.

8.) Population- Google can identify populations of Citys, States, Country's, ect.

9.) Bus Routes- Google can provide public transportation info.

10.) Free 411- google has its own free directory service like 411.

And if thats not enough, they also Store Medical Records, create and share online docs, Host Blogging, provide voice over IP chat, a virtual library, and even more.

Now we just need it to make me us toast in the morning. How do you use google?

The Budgeteer

2009-11-18T22:12:00.000-08:00

I never really understood budgeting until recently, but now "Budgeting" is my new hero. It allows me to easily set aside money for large expenses, and prevents me from running out of cash before each payday.

With tools like my Ginzu Paycheck Slicer, I can confidently spend money without worrying about over drawing my account. It's so simple, that I don't know how I ever lived without it.

"Budgeting Guarantees that you only spend what you have, and nothing more."

How to become a Budgeteer:

Making a Budget is simple, all you have to do is plan how to spend you money before you spend it. Some people use envelopes, others may manage an elaborate spreadsheet. Below is the method that works for me:

On each payday I simply transfer my cost of living from each paycheck into a bill pay account where my reoccurring monthly expenses are automatically deducted. Anything left over is put into the Ginzu Paycheck Slicer, where it can be divided up to accommodate all my irregular expenses and spending. I can list any upcoming expenses, and then distribute the money that I have accordingly. I also include a line item for personal spending money, and a line item for miscellaneous or unforeseen expenses to act as a just-in-case buffer. After a few minutes of working with my Ginzu Paycheck Slicer my Budget is complete. I know where all of my money is going, and that everything has been accounted for, without spending a single penny.

Are you a "Budgeteer?" Comment on methods that work for you.

Commercial Staging Areas

2009-11-13T13:08:00.000-08:00

This weekend, I'll be trying a new decluttering/money making technique called "Staging Areas." Sounds cool right! It involves marking three 4' x 4' squares on the floor of the garage with blue painters tape. These squares designate items to be Sold, Donated, or Thrown Away. Next, I'll search the house for items to fit each staging area.

Sold
Items that are no longer wanted, but may be of value to sombody else, can be sold by:

Ebay -Small niche items easily shipped
Craigslist -Large bulky items difficult to ship
Garage Sale -Big ticket items that can be sold quickly

Donate
Anything that can't be sold should be put in the Donate area. Consider going through your closet and boxing up anything that you can no longer wear, or that you haven't worn in the last year. When you have enough for a trip to the goodwill, just back up you car to the staging area, and load up. Remember to get a reciept for the tax write off.

Throw Away/Recycle
Anything that the can't be donated should be place in the Throw Away/Recycle area. This are should be disposed of weekly with you garbage or with frequent trips to the dump. There is absolutely no reason to hang on to trash. Recycle if possible some places my even pay you for items such as scrap metal.

The Gas Money Metaphor

2009-11-10T10:03:00.000-08:00

I believe that a car's fuel gauge is coincidentally accurate at depicting personal finance habits. Like a checking account, the contents of your gas tank fluctuate. If you just filled up on payday, the sky is the limit and money grows on trees. But towards the end of the pay period, you might be praying not to run out of gas, while trying to locate change in the seat cushions.

Most of us have experienced both extremes, but we usually have a low gas comfort limit before refueling. Below are some typical limits and my interpretations of correlating spending habits. How long do you wait before refilling on average?

Rolling on Fumes

If you're known for coasting up to the pump in neutral on the cars last breath of gas, than you probably also known for blowing your paycheck within a few days, and find youself scrounging until next payday. Don't worry you're are not alone.

No need to stop for gas, there's still a quarter tank

You probably pay you bills on time, and can manage your day to day expenses, but you still live paycheck to paycheck, and have little to no savings. Congratulations you are part of the majority.

I've got a half tank but who knows how far to the next station

Not only are you in complete control of your finances, but you also have a little nest egg of savings. You are better at managing your finances than most, and could probably teach others a thing or two.

I'm already at three quarters of a tank, I thought I just filled up?

You live well below your means and in addition to savings, you have a little spending money for hobbies and capital ventures.You are part of an elite group of well balanced personal finance aficionados.

Its a rental..... filled to the brim or else they'll charge me

You're a paranoid penny pincher, you save all of your money and don't do anything fun for yourself. You may even plan your routes on Gasbuddy.com to maximize every refueling. Its nice to have a full tank, but feel free to let your hair down.

There's an extra gas can fastened to the bumper

In addition to the other limits, there are those uber prepared who carry an extra gas can for emergencies. Carrying an extra gas can shows your willingness to be prepared for the unknown, but does not guarantee that you are financially responsible.

Again these are only my observations. Feel free to comment on how you drive, and whether I'm on target or out in left field.

How to turn $100 into a Partime Job

2009-11-06T11:55:00.000-08:00

After reading "Best Ways To Invest Small Amounts of Money" on The Digerati Life, I started thinking about what to do with $100.00, and how to earn the best return on such a small investment.

"A lot of us don’t have much money to spare. Sometimes you may find yourself with an extra $100; maybe someone finally paid you back for a long-forgotten debt (it’s happened to me!) or your mom sent you over a cash gift for your birthday. Or chances are, it’s just an extra $100 rattling around in your bank account that could find better use somewhere else." -By Silicon Valley Blogger-

$100 is a perfect number. It is enough money to be substantial, but not enough to be out of reach for most people. If have ever come across $100 dollars and asked yourself what to do with it, than here is my list of how to turn $100 into income."

Valet Car Wash- Get yourself some cheap business cards, and print some fliers offering to wash peoples cars while they are at work. Provide a copy of your license and proof that you are insured to drive their car. Take it to a public hand wash or a "touchless" car wash. Then return with a nice shiny car to collect payment.

Buy a vending Machine- A simple gumball machine can be purchased used or new for around $100. Convince a local mom and pop restaurant or convenience store to keep it by their front counter for a percentage of the profits.

Walk/Feed Dogs- Make some fliers, get yourself a leash, poop bags, and dog treats. You could walk/feed dogs for people on vacation or at work.

Become a Barber - In college, I knew a guy who bought some clippers, scissors and supplies for cutting hair. All of us starving college students lined up around the block to get a cheap buzz cut.

Start Blogging- Build yourself a blog using Blogger, and start using adsense. If it becomes popular, buy a domain name and/or web hosting.

Be a Handyman -If you have basic tools laying around the house and are handy, consider doing simple handyman repairs. Post signs on telephone poles in retirement communities.

Dance/fitness/martial arts instructor - If you are athletic try holding classes in a public park and advertise.

English tutor- If you are fortunate enough to speak another language, consider teaching English to non native speakers, at public meeting areas or your local Starbucks.

Computer Tech Support- Setting up a Pay per minute phone is easy and only costs a few dollars a month. Just Google it and you'll find tons of companies willing to get you started.

Window Washer- Get some industrial sized bottles of Windex and a squeegee and print some fliers.

Knife Sharpener- Purchase a electric sharpener and a inverter for the car, or a nice hand sharpener. Show up at restaurants at off peak hours, and offer to sharpen their cutlery.

Furniture Mover- This works better if you have a friend, but many people appreciate a helping hand when moving, especially if you have a truck.

Ride to the Airport- If you are a punctual person with a car, consider picking up people from their house and driving them to the airport. All you need is a cell phone, email address, and advertising.

House Cleaning- Load your vacuum in the car, and by some cleaning supplies. With a little word of mouth advertising you could make some extra cash on a regular basis.

Some times the best ideas are the simplest, with just a little creativite advertizing and you could have a secondary income for under $100.

Using the "F" Word in Public

2009-10-29T08:46:00.000-07:00

No I'm not talking about the word %$#^! Swearing in public is just a way of exemplifying ignorance. I'm talking about discussing our "Finances" with others.

Traditionally we were taught not talk about our finances. The reason was probably because people felt insecure about how much they earned in compared to others. In the old days, it was also inappropriate for women to show their ankles in public. Now that its the 21st century, we need to encourage change. Not talking about money over the years is probably the reason why so many people have problems managing it.

I'm not encouraging you shout out your annual salary in a crowded subway, I am merely advocating the communication between friends and family for money management advice. Discussing dollar amounts, or salary levels, is irrelevant and may make others feel uncomfortable. Instead focus on learning techniques for better money management. Some good topics could be:

Asking a homeowner how to buy a house?
Ask a retiree how you should save for retirement?
See if any of your friends make a formal budget?
Does anyone balance a check book, or use personal finance software?
Who makes a shopping list before getting groceries?
Ask your parents if they auto pay their bills?
What investment strategies have worked for people you know?
How accounts are structure for money managing couples?
Bill payment responsibilities, who pays what?
How to responsibly manage credit card usage?

The idea is not to interrogate the people in your life, but to learn from their experiences and to share ideas about how to improve your financial health. Sharing ideas will benefit everyone.

Little Black Book

2009-10-28T07:54:00.000-07:00

In an effort to improve my life through organization, I plan to start carrying around a small memo pad. I already write myself notes constantly so I don't forget things, just like the guy in Momento. Over the years, I've learn to trust my handwriting more than my memory. My "To Do lists" are written on scratch paper and either folded, or crumpled up in my back pocket. A little notepad might allow me to keep these same notes in a more organized fashion, and provide me with an simple archiving system. It would also keep me supplied with scratch paper for notes on the fly.

I considered downloading the latest organizer/planner app for my iphone, but the simplicity of a pen and paper is much more practical. I am to lazy to navigate through fields and text-type tiny messages. For now I'll keep it simple, and save the option to upgrade to my iphone for later.

Black Book uses:

Memos/Notes
To do list
Directions/Locations
Calendar Updates
Names/Contacts
License Plate Numbers
Sketch Diagrams
Time Stamp
Accident report
Statistics

The standard for Military/Police Field Notes are 3" x 5" spiral notebooks with graph paper, and some even have a leather covers. My notes will be organized by date with a line-break separating each day.

All Weather

I may get waterproof notepads from Rite in the Rain. They're priced pretty reasonably and provide a additional protection from the elements. They even offer custom notebooks.

I will let everyone know how it works out, but I figure it's a small price to pay to get more organized.

How to Remember Everything

2009-10-23T20:23:00.000-07:00

If you haven't already heard, ohdontforget.com allows you to write text messages from any computer, and schedule when they're sent for free. This site is worth Bookmarking, and a great tool for sending yourself reminders. The next time you need to pick up milk from the grocery store on your way home from work. Just click, type, and submit. While driving home you'll get a text message reminding you to stop at the store.

Many cell phones already have an alarm feature, but I find it more practical if you're sitting in front of a computer.

Don't Wait to Get Your Halloween Costume

2009-10-21T08:07:00.000-07:00

The clock is ticking, with only 10 days left to find a Halloween costume. You're probably planning to pick up something last minute at the Halloween Store ...... And then it hits you. Do you remember what the Halloween store is like the night before Halloween? It can only be described as pure and utter Chaos. Screaming unsupervised children run rampant as parents viciously wrestle over the last incomplete Spiderman costume. Emo high school kids are hanging around in numbers hoping to pocket the last pieces for their costumes. The Cashier, who is not even old enough to drive, is scrambling to fix the malfunctioning registers. The checkout lines snake across the sales floor with bleak hopes of ever getting to the counter. And the lucky people that make it out alive, with costumes, will soon find that they were swindled out of a small fortune. Their cheaply made costume will start to rip and unravel before the Halloween party begins.

This is why I always recommend the thrift store. Its in expensive, the textiles are usually better in quality, and you're only limited to your imagination. But you better get there quick, because the good stuff goes fast.

Calculating the Value of Rewards Points

2009-10-20T08:19:00.000-07:00

If you have ever redeemed rewards points, you probably know getting your money's worth isn't always easy. Credit Card companies do this on purpose. They would much rather sell you a cheap knock off item that could be found at Sharper Image, or in a Sky Mall catalog, than give you straight cash.

Gift Certificates
Credit card companies receive advertising discounts for selling gift cards to stores and restaurants. This is why a $10 gift certificate at Burger Barn, costs fewer points than a $10 Visa Gift card. Burger Barn is basically paying the difference to guarantee your business. With a Visa Gift card $10 is $10 anywhere you spend it.

So which is better to get?
Ask yourself a few simple questions before reedeming store specific gift cards:

Do you regularly shop at this store on a weekly or monthly basis?
Would you make the same purchase if instead you could just have the cash?
Were you already planing to shop with this vendor?
Are you 100% positive the store didn't just catch your attention, and make you think of something to buy?

If you answered No to any of these questions; consider getting the Cash Reward or Visa Gift Card. The lure of impulse buying is too strong, and odds are you are trying to justify an irrational purchase.

If you answered Yes to all of the questions; you could be making a rational decision to take advantage of the additional store or restaurant specific discounts.

When To Redeem
You may be wondering when is the best time to cash in your growing reward point bounty.

Visa Gift Cards
Most of the Rewards programs grow at a fairly linear pace in regards to Visa Gift Cards. This means there is no real difference between buying a $5 dollar gift card every time you hit the limit, versus saving all of your points for that $50 gift card.
Store and Restaurant Specific Gift Cards
The larger store and restaurant specific gift cards tend to be a slightly better value, if you can rack-up a lot of points. However, it's extremely important to always check to make sure your points do not have an expiration date.

Actual Point Value
Now for the technical stuff! To Maximize your redemption spending, you must understand the value of your points.

Gift Card Validation- Gift cards are easy to validate just divide the dollar amount of the gift card by the total number of points it cost to purchase.

Example 1 : $25 Burger Barn Gift Card ÷ 11,000 points = $0.00227 Cents Per Point
Example 2 : $25 Visa Gift Card ÷ 15,000 points = $0.00166 Cents Per Point
Example 3 : $15 Cash Rewards ÷ 7,500 points = $0.00200 Cents Per Point

When comparing gift cards, you want the largest Cents Per Point. If you are a regular at the Burger Barn, and can answer yes to all the questions above, then Burger Barn is the best gift card for you. For the majority of us, the Cash Rewards is the best value because it makes the most cents per point, without influencing you to spend at an establishment that you wouldn't normally.

Buying Items, Vacations, or Airfare
If you insist on buying items like that toaster with a built in back scratcher, you need to evaluate whether its worth your points. This formula starts by using a known Cents Per Point from a Cash reward or Visa gift card, and multiplying it to the number of points for the desired item. If the toaster costs 20,000 points and you know that the same points are worth $0.00200 each, then the actual price your are paying for your toaster is $40. Now check to see if you can find it cheaper online.

Example 4 : Cost of Toaster 20,000 x the known CPP $0.002 = $40

Who Cares if its free money?
You should! Many of these cards have a annual charge that is almost equal to the average persons rewards earning. This means that you are essentially investing $25 to have the opportunity of redeeming $20-$30 worth of points. Even without an annual charge, the actual earning are microscopic compared to the spending it encourages. It is a way for credit card companies to make money. They wouldn't provide this service if they didn't. So be smart don't frivolously spend you points.

Throwing Away is Therapeutic

2009-09-24T07:49:00.000-07:00

If you tend to horde junk, and you know who you are, consider launching an all out attack on your cluttered lifestyle. The best way to get the ball rolling is to Schedule a Cleaning day. Plan to spend the entire day cleaning and throwing things away, without interruption. A good rule of thumb is to think big. Don't spend the day dusting nick-knacks, and sorting file cabinets. Go for the jobs with the most impact. Decide to finally park your car in the garage, or to completely empty a bedroom and starting over from a blank slate. Remember the goal is to throw out as much as possible, otherwise you are just moving junk from one part of the house to another, in a wasted effort.

If you are wondering whether or not to keep an item, odds are you should just get rid of it. Try to understand that you subconsciously hold a higher unrealistic value for your belongings. If you honestly believe that an item is worth taking the time to sell, than stop what you're doing immediately and go sell it. Posting something on Craigslist should take no more than 10 minutes. If it takes you more than 10 minutes, than you are wasting time, and as punishment you should sacrifice the item to the trash for avoiding work.

Renting a dumpster is another good way to force yourself to throw out Junk. Its the "American Way" that if you rent a dumpster, you are going to fill it to the brim because it's paid for, and we want our moneys worth.

Work at a face pace and be quick to make decisions. Your first instincts are usually right. It's only when you stop and think that your brain has time to coerce you into keeping stuff.

After a full day of clutter carnage, sit back and enjoy the fruits of your labor. You will feel at peace and relieved from a burden you never even knew you had. After I simplified my life and got rid of my junk, it astounding to me that people can live any other way.

Picking Up Pennies

2009-09-17T13:44:00.000-07:00

An article on WiseBread asked readers if they picked up fallen pennies, and if it's even worth your time? This got me thinking......What is my time worth.

I know that if a neighbor offered to pay me $5.00 to mow his lawn, I would probably tell him to take a hike. But if he offered to pay me $100.00, I might just do it. This tells me that Time and Effort are important factors.

As far as penny reconnaissance, testing these factors was quite simple. With a stop watch I timed myself picking up a penny. I after a couple of tries from a standing position it took about 2 seconds to pick a penny off the floor. So for 2 seconds of my time, I earned $0.01. That equates to a wage of about $18.00 an hour. According to Monster.com that is the equivalent wages of a sushi restaurant supervisor in San Jose, CA. On the other hand if you pick up a dime, you are earning the same wages as a highly qualified Neurosurgeon, or about $374K a year. Granted you are only working for a few seconds at a time, but I don't know many people that would pass up those kind of wages. Here a calculation breakdown:

$0.01 @ 2 seconds = $18/hour
$0.05 @ 2 seconds = $90/hour

$0.10 @ 2 seconds = $180/hour
$0.25 @ 2 seconds = $450/hour
$1.00 @ 2 seconds = $1,800/hour
$5.00 @ 2 seconds = $9,000/hour
$10.00 @ 2 seconds = $18,000/hour
$20.00 @ 2 seconds = $36,000/hour
$50.00 @ 2 seconds = $90,000/hour
$100.00 @ 2 seconds = $180,000/hour

After seeing the results of these calculations, I will always pick up dropped change.

Too bad I only pick up "heads", I'm superstitious like that.

Understanding Personal Cash Flow

2009-09-16T08:36:00.000-07:00

Do you always run out of money right before you get paid? Are you constantly broke from overwhelming bills? It's because as Americans we stereotypically live just outside our means. We tend to want things that we can't afford, and are willing to spend every last penny trying to get them.

Despite what you may think, a raise in salary won't solve your money problems. If you made more money, you would just spend more money. In order to improve your situation, you must first understand the fundamental principles cash flow .

Cash Flow
Cash Flow is the difference between how much money you make vs how much money you spend. Improving your Cash flow is the key to solving your financial all problems:

(+) A positive Cash flow occurs if you are diligent enough to set aside portions of money in a savings account.

(0) If you spend every last penny of your paycheck, and are unable to save, than you have a Zero Cash Flow.

(-) If you spend more than you make, and your credit card debt is growing, than you have a negative cash flow.

Budgeting
The best way to improve cash flow is by budgeting. Make a practical budget and stick to it. Consider using a budgeting tool like my Ginzu Paycheck Slicer to help plan and organize your spending habits. By defining your expenditures, it will help you to track and isolate the problematic areas.

Saving
Make a decision right now to regularly set aside and save a certain portion of money as soon as you get paid. By setting aside this money for savings you are less likely to spend it, and it will force you to exist on a lower income level. Saving money from every paycheck and not touching requires disicpline but is crucial to generating a positive cash flow. Many experts recomend saving a minimum of 10% of your income.

Learn When Not to Speak

2009-09-11T12:01:00.000-07:00

Dealing with your own bad habits, can twinge nerves like fingernails on a chalkboard......Let's face it, nobody likes to admit their faults. For me, I am just now learning the art of keeping my mouth shut.

I have bad habits of unintentionally speaking in a round about manner, and occasionally voicing unwanted opinions. In the past, I always felt confident speaking up in business meetings, and I could effectively convey ideas. I attribute many of my accomplishments in business to this assertive attitude. Unfortunately there is a time and place for everything.

The first time I had this epiphany, I was in one of those classic long table Big-Wig conference room meetings. As usual, I was expressing my thoughts on the discussion topic. After I finnished, one of the big bosses thanked me for my valuable input, and in front of the entire group, commented on how I talk a lot. Slightly embarrassed I made an effort to monitor my future interjections.

Not saying anything can:

Be a powerful tool when negotiating sales
Be a way of diffusing altercation
Provide valuable time to think before you speak
Camouflage uncertainty
Insinuate stoicism and strength
Add emphasis on words spoken
Curb excessive generosity
Avoid incrimination
Make room to listen

So make an effort to speak concisely, because "silence can be more powerful than words," or so the expression goes.

Re-Check Your Receipts for Discounts

2009-09-08T11:59:00.000-07:00

Running errands with my wife, we randomly stopped at Old Navy to both find some amazing deals on the clearance rack. I got a bunch of $5 T-shirts, and a few pairs of nice Khaki pants for around $7 a each. It helps that I am 6'3 and 210 lbs; I can take advantage of all the XL sizes that nobody else wants.

Walking out of the store, my wife mentioned that her bill seemed higher than estimated. We stopped and re-checked the receipt and sure enough the clerk missed about $19.00 in discount savings. We went back inside and the store promptly fixed the error.

We went to another store and made a few more purchases. An item rang-up at full price even though it was on sale, but the luckily clerk caught it.

Both transactions happened less than 20 minutes apart, which to me is statistically significant. I wonder how many other items I mistakenly paid full price for because I didn't think to re-check my receipt.

So if you are buying a lot of clearance stuff, or something just doesn't seem right make a point to stop and re-check your receipt.

Debit or Credit? which is better for you?

2009-08-06T14:57:00.000-07:00

If you regularly purchase items with your "Debit Card" than you probably know that transactions can either be processed 1 of 2 ways. The cashiers can ask you "debit or credit?" If you choose debit you enter in your pin to finalize the transaction. If you choose Credit it requires you to sign your name. So whats the difference? Either way you are still using an ATM check card.

Well the difference is actually quite significant:

Debit (enter you pin)

When you enter your pin your bank is responsible for immediately transferring the funds to the stores merchant account. You can buy groceries, go home, and view the transaction online before the chicken even starts to thaw. The transaction is processed through an electronic funds Transfer similar to entering you pin at an ATM, but only provides limited liability protection against fraud. Just like ATM it also allows the option for cash back.

Credit (sign you name)

When you sign your name, you will notice that the transaction can take a few days to process and may appear first as pending. By signing your name, you are actually conducting the transaction on a network that provides additional liability protection from fraud. Banks can charge a higher fee for these transactions. Chase even now offers a check card rewards program, for this very reason.

Either transaction types costs you the same amount of money, but I am now starting to use my check card as "Credit" to take advantage of the Chase reward points which are about a 1% savings. It's too bad that it's at the stores expense.

Beware of the "Cash for Clunkers" Bill

2009-07-30T14:20:00.000-07:00

Everyone is talking about the new "Cash for Clunkers" bill, but becareful or you might be sorry. The Cash for Clunkers voucher is great if you are already looking to buy a new car. It’s important to remember that getting a good deal on a new car doesn’t automatically mean that you can afford it.

I have a old Ford "Exploder" with 160K miles on its last leg, and want to buy a new F150 4x4. I considered trading in my clunker, but decided to pass it up because spending money to save money is pointless, when it equals a net loss.

Don't get me wrong, I would love to drive around in a brand new truck, but I know better than to bring unneeded financial stress on myself and my family. I don’t need another car payment. Instead I will build up my emergency savings, and payoff my credit card debt. When my clunker does die in the near future, I will probably buy a cheap used truck for a lot less than the price of a new car with the voucher.

Don’t get suckered into buying something you can’t afford because it’s on sale.

What is $5 worth to you?

2009-07-24T14:00:00.000-07:00

$5 dollars can buy many things these days, but it's interesting to see exactly how far it will stretch in certain situations. Here is my personal opinion on what is worth five dollars, and what is not.

Worth $5

A Car Wash - If an old car already has scratches in it, I would rather spend $5 to drive it through a Machine Car Wash, than wash it myself.
Wine Tasting - Some wineries charge $5, others don't. Who cares! You are having a good time and drinking wine.
A Flashlight - When you are fumbling around in the dark, what is $5.00
Parking - If there is no where to park after the first few passes, I would rather pay for $5 for parking than circle the block for 30 minutes waiting for a space.
Maps - If you get lost like I do, $5 is a small price to pay to reach your destination.
Foot Long sandwich - OK, So I've been brain washed by the Subway commercials.

Not Worth $5

Snacks at Movies Theaters - After paying $10 per ticket, I rarely spend $5 for snack at the movies.
Extended Warranties - I won't spend an extra $5, for an extended warranty on small electronics like an alarm clock.
Valet Parking - When choosing between tipping the Valet guy, and self parking; I would much rather park my own car and save the money.
On Demand - Don't spend $5 dollars to watch the cable companies suggested movies, when you can subscribe to Net Flix or Block Busters unlimited monthly rental program.
Magazines - Since most magazines publish their articles online anyway, it is difficult for me to buy a printed magazine.
Ring tones - I keep my phone on vibrate, and don't feel the need to bother others with annoying jingles.
Lottery Tickets - You are 20 times more likely of getting struck by lightning, So don't get your hopes up.

Please comment on what $5 is worth to you!

Count Up to Impulse Buys

2009-07-23T23:06:00.000-07:00

We are all guilty of buying things on impulse, and specifically some of us more than others. Usually something catches our eye see, and we immediately justify the purchase by convincing ourselves that it's a necessity. That split second decision driven by emotion can often be detoured with a simple pause or hesitation. According to The Five Cent Nickle, "simply stopping to question your buying decisions can go a long way toward cutting down on frivolous expenditures." That is why I have developed a unique system called "Counting Up to Impulse Buys" which caters to the severity of each impulse.

The next time you see an item that walks the fine line between impulse and necessity, try counting up to the total dollar amount in your head before deciding whether to purchase it. The more expensive the item, the longer you will be counting. You might think twice before buying a $60 pair of shoes if you must first mentally count to sixty. Counting engages your brain in another activity, and removes your focus from the desired item.

I am not saying that when you finish counting the purchase will magically become rational, but it is a good way create a pause long enough to encourage a rational descison.

Save Big on Home Depot Tool Rentals

2009-07-20T07:39:00.000-07:00

Whether you're a weekend warrior, or a contractor by trade, renting equipment from Home Depot can be a lifesaver. Home Depot has a variety of things to rent, the prices are reasonable, and the labor time saved can be priceless. Renting tools is a fairly quick and painless process.

I recently demolished a thin concrete slab in our backyard. At first I considered just buying a manual breaker bar, but after comparing the cost of the breaker bar with the price of a jackhammer rental, I ended renting the jackhammer. The jackhammer cost $45.00, and I was able to break up the concrete, hauled it away, and returned the rental within 4 hours. If I bought the breaker bar, I would have paid more and would be sentenced to doing hard labor all weekend long.

Last Saturday, I also had to rent a 32' extension ladder to clean out my gutters. I found out that Home depot has a policy that equipment rented after 6pm can be used until 9AM the following morning for the cost of a regular 4 hour rental. So if you plan on working late in the evening, and early the next morning, take advantage of this extended 4 hour rental (actually 15 hours).

So, without trying to sound like Tim "The Tool Man" Taylor, consider renting bigger and better equipment to get your next project done sooner. It will usually save time and money in the long run.

The Universal Importance of a Buffer

2009-07-16T11:11:00.001-07:00

In life, it's very important to establish a good buffer. A buffer will help cushion the consequences of minor problems, and prevent them from becoming major problems. It's especially important when dealing with time and money. Not having a proper buffer is the easiest way to provoke problems with catastrophic consequences. So what exactly is a buffer?

Buffers
A buffer is leaving a half an hour early for a job interview 10 minutes away. A buffer is always keeping an extra $500 in you checking account, to avoid accidental over draft fees. A buffer is buying 350 sq ft of floor tiles, when the actual area is only 300 sq ft. It’s following 5 car lengths behind, when you know you could stop in 4. A buffer can be as simple as bringing a coat, when the forecast is good; or not letting your gas gauge needle dip below a quarter tank. It’s understanding limitations, and being smart enough to plan for unexpected problems.

Murphy's Law
When the unexpected happens, it usually compounds with other problems. Usually your car breaks down the day you forgot your cell phone. You lock you self out of the house while getting the morning paper in a bathrobe. You forget your wallet during a important business luncheon. Some of these situations are just a fact of life and cannot be changed, but in some situations a buffer may help to delay the domino effect. Get the help of 2 friends, even if you only need 1 to help set up the decorations for your wife’s surprise birthday. This way you don’t fall off the ladder while frantically trying to hang streamers. I'm sure your wife won’t want to blow out her birthday candles in the ER.

Pet Airways: Pets Fly with You in the Cabin

2009-07-15T14:07:00.000-07:00

Scooby and Garfield can now travel with you when you fly. Well technically they always could, just not in the passenger cabin. But today is the dawn of a new era, and a new company called Pet Airways allows your pet to come on the plane with you and fly across the country.

The website is currently bogged down from all the publicity it receiving, so I have not seen the exact terms and conditions. The only available page is where they fly. It appears that their destinations are limited to a hand full of locations across the country. Having seen Snakes on a plane, I am interested to know what type of animals are allowed, and even more so how the animals will react being in such close proximity.

My wife and I are planning take our new puppy Teagan to my "In-laws" during Thanksgiving, but unfortunately Pet Airways doesn't fly out of Seattle. Alaska Airlines wants to charge us an additional $100.00 each way to transport our pooch in cargo, but we may end up driving anyway.

Only time will tell if this radical new concept, will be a success or a flop.

Out of Sight Out of Mind

2009-07-14T13:38:00.001-07:00

If you are anything like me, you struggle with the discipline of saving money. The trick is to decide right now how much you want to save, and to do it. Pick any number that you can comfortably pay on a regular basis without impacting you bills. It could be $50.00 a month, or it could be $500.00 a month. Once you have your number, take a few minutes and open a free online savings account. Most online savings accounts like ING Orange Savings, or a Tradeking Roth IRA, can be opened in about the same amount of time it takes to make an online purchase with a credit card.

Now that you have an account, go to your regular banking web site, and set up a re-occurring bill pay to transfer your decided savings amount 1-2 days after each payday. You won't even notice the difference in salary, and since the account is not as easily accessible, you will forget that money is accruing. Before you know it there will be a nice little nest egg of savings. All it take is few minutes and a little will power.

Truly Free Credit Score Anytime with Credit Karma

2009-07-07T09:06:00.001-07:00

Recently, I learned about a new site called creditkarma.com. It's a quick and easy way to continually monitor your averaged credit score for free. It summarizes your credit report, shows how you compare to others, how to improve your credit, and even has a simulator to see how your score will change in certain situations. Credit Karma is a reputable site that requires you to register, and yes it asks for you ssn. This does not concern me since they boast many security certificates, and we learned recently that your 9 digit SSN can be deciphered with public information anyway.

After a free account is established with creditkarma.com, you can log in anytime to see your current credit score. You can check it every day if you want. In the FAQs, credit karma states that the inquiries are on your behalf, and will not be shown to creditors or affect your credit.

So check out Credit Karma, I was very impressed and highly recommend it. It is a great tool to see where you stand before buying a house, car, or applying for a loan.

Lessons Learned from Homeless People

2009-07-06T09:33:00.000-07:00

When people are forced into a financial hardship, like being homeless, they often survive only by making the best of their situation, no mater how bleak it is. This humbling experience can also illustrate the value of money, or lack of it, in a crystal clear manner. If only the average consumer looked at their finances like a homeless person trying to survive, they would probably be better off.

For simplicity lets take a look at the value of $5.00.

Scenario 1:
While walking by the corner store, one sweltering hot day, Trevor decided to buy a soda. Unfortunately the clerk only accepted cash, but pointed him to the ATM located in back. On the way to the ATM, Trevor noticed a water fountain by the bathrooms, but he decided the soda sounded more refreshing. After accepting the $2.50 ATM fee, he withdrew $20.00 and returned to the counter to buy the $2.50 soda. He stepped outside took a big gulp and continued his walk hardly skipping a beat.

Scenario 2:
Perry was laid off a while back, and has been without adequate income for a while. He sleeps under a bridge, and can't remember the last time he changed his clothes. He walks 2 miles everyday to the corner of Main street and Union to beg for change. Today it happens to be raining. Perry stands in his regular spot with a cardboard sign in one hand, and holds his garbage bag poncho over his head with the other. Since most drivers don't want to roll down their window in the rain, Perry only receives a handful spare change, and a few dollar bills. After standing on the corner for a couple of hours, he counts his earnings which total $5.00. He staggers into a grocery store to buy breakfast. He first walks into the bathroom to wash his hands, and to fill his water bottle from the sink. He then proceeds to gather his items: A banana for $0.59, an orange for $0.67, a loaf of day old bread for $0.99, a can of tuna for $0.99, a can of stew for $1.29. The total at the checkout counter is $4.94 including the 9% sales tax. It is a familiar total, and leaves him with $0.06 to save for later. Outside he sits against the wall of the building, and eats his fruit. He patiently looks forward to the tuna sandwiches for lunch, and the stew for dinner. Any day that Perry gets to eat is a good one.

The amount spent is exactly the same in both scenarios the only difference is the the way each person perceives money. In the first scenario Trevor chooses soda over water without giving it a second thought. While in the second scenario, Perry stands in the rain for hours for the same amount of money. Five dollars has a much different value in each of their hands. It is too bad that Trevor does not spend money as frugally as Perry, because Trevor owes 22k in credit card debt, while Perry has positive net worth of $0.06.

Happy 4th of July

2009-07-04T16:45:00.000-07:00

Here are some emergency instructions in case your celebration gets a little out of control. Be safe, and please be respectful of your neighbors. They might not think lighting M80's at after midnight is as cool as you do. If you plan on lighting off fireworks, make sure you have a fire extinguisher. It can come in handy, and will even decrease your home owners insurance premium.

Now Might be a Good Time to Learn About Stocks

2009-07-02T10:52:00.000-07:00

It's hard to go anywhere these days without hearing horror stories about the economy. Many long time investors and retirees have suffered huge losses as the market reached record lows. On the other side of the coin, if you have never invested in the stock market before, then you've never lost anything, and now might be an exceptional time to learn how it all works.

The market will have to recover sooner or later, and right now you can pickup shares at a fraction of the cost, compared to what most shareholders paid. Rumors are also starting to circulate about the economy beginning to recover, but there is no way to know if the worst is over. Consider investing a small amount of play money, that will not lead to your demise if lost. The odds of financial gain in the stock market are much better than going to a Casino or buying lottery tickets and can be just as exciting.

It's impossible to know everything about investing, and learning the basics can be intimidating. A good place to start is CNN's Money 101. It contains a wealth of information on various financial topics, and Lessons 4-5 are specific to Investing. When I started Investing not too long ago, I simply opened a Roth IRA at Tradeking.com, which I found to be the cheapest at $4.95 per trade, and invested $100.00.

I decided to invest in Ford (F) purely on intuition, and was lucky enough to more than double my investment over the past 3-4 months. As a 28 year old, with hardly any money, it was a great way to get my feet wet. I also made a few mistakes as seen in my article Stop Order vs. Limit Order, but it has given me the drive to start learning more and more about how the stock market works. I am now exploring more advanced trading techniques and learning what to look for in companies.

The most important rule when starting out is: to realize that you don't yet know what you're doing, and should never invest more than you can afford to loose. It is also important to realize that paying off debt usually is a better investment than trying to earn a return on stocks.

Overall the stock market really isn't that scary, and by getting in now, you might make a pretty penny when the markets recover.

Defacing Credit Cards to Save Money

2009-06-30T11:44:00.000-07:00

When money is tight, plastic is cheap; or so they say. We've all been there, your checking account is low, but you see something that you just can't live without. You quickly whip out your credit card for an impulse buy with the intention of paying it off the next time you get paid.

Unfortunately for most people this happens much to often, and can quickly cause severe credit card debt. The Internet is riddled with ways to detour people from using their credit cards, like the classic freezing your credit card in a block of ice. I, on the other hand, have a more practical solution I call "Credit Card Defacing." If you are currently trying to pay off a credit card with revolving debt, take a sharpie and write something embarrassing like "I am an idiot for using this card", "emergency only", or "Don't let me buy this" in big letters on the front of the card. The next time you use the card, you will be scrutinized by the person behind the counter. They will probably laugh at you, creating an extra humility barrier between you and your purchases. In a true emergency situation, the graffiti will not hinder the use of the card. Although keeping a credit card for emergencies is ridiculous and unnecessary anyway. People should instead have an emergency savings account linked to a debit card, but that is their decision.

"Defacing your Credit Card" is a great deterrent that allows you to cater the card message to the severity of you spending habits. If you have a really big problem you could even try writing offensive stuff like "Screw You" on the card. If the cashier does not have the thickest of skin, he or she might not even do business with you.

Every time you feel the urge to buy something with that credit card, you will stop and ask yourself is it really worth having to deal with the clerk. That will ultimately help curb spending.

Anonymous Web Surfing with Portable Opera+Tor

2009-06-29T09:17:00.000-07:00

*This information is for educational purpose only. Live for Improvement does not condone any illegal activity, or side stepping of security parameters.*

Many businesses allow employees to use the Internet during breaks to check email, or to safely surf the web. You may, however, not want your co-workers to know that you're considering hair transplant surgery, searching E-harmony for special someone, or paying bills using sensitive banking information. If you fit this criteria or similar, then check out Opera Tor.

Opera Tor is one of the securest portable browsers available, and its free. By downloading the file, and installing it on a portable thumb drive, you can surf the Internet anywhere with peace of mind and privacy. It uses data encryption and proxy servers to securely transmit data. It also prevents any data from being stored on the local computer. It is nearly impossible for anyone to know what you are doing or where you have been.

The only draw back is that Opera Tor is extremely slow, and should only be used when necessary. It can also make things interesting when you go to international sites like Google and the German version is displayed because it thinks you are in Düsseldorf.

So if you are extra paranoid that big brother is looking over your shoulder, this is the app for you.

Have a Family Duress Code

2009-06-25T15:14:00.001-07:00

Whether it's signalling to leave a boring dinner party, or being held at gunpoint while answering your wife's phone call, it is a good idea to establish a duress code. Take a few moments with your loved ones to agree on a specific word, phrase, and body language that can be used during such occasions. It could really be the difference between life and death, or at least minimize the discomfort of attending a function where you don't know anyone.

Picking a Duress Code:

Words - Try picking words that don't come up regularly in conversation, and will not sound strange when used. Your friends might become suspicious if you start saying "Abbra Cadabara" every time you are about to leave. You might consider choosing a less conspicuous word like automobile, newspaper, heartbeat, or streetlight that can easily be inserted into a sentence. To be even more subtle, have a secret pet name for your significant other like hunny, or sweetheart to be used only in the perils of danger. It may seem silly to dedicate a special word, when most couples have a knack for reading each other, but it could be crucial in a telephone or email conversation. Its better to have a duress code word and not need it, than to need it and not have it.
Phrases - Using a phrase can simply be a sentence with your secret word in it, but it can also be a metaphor. Suppose your secret phrase is the "car trouble". This allows you to use the different words every time. You could say the cars making noises, having trouble starting, acting funny, or the battery is won't hold a charge. This gives you much more variety in dialogue, and could be used to interpret the severity of a situation. If you want to leave a party, you might say that you recently noticed the tires look low. If you are being held at gun point you might say that yesterday the car started making loud grinding noises during gear shifts.
Body Language - Simple gestures like scratching your elbow, or cracking your knuckles can also relay the message of duress. It doesn't have to be as elaborate as a major league catcher signaling the pitcher, just enough to get your point across to the intended recipient. Being able to signal your wife could come in pretty handy the next time someone invites you to attend their child's fifth grade piano recital, and expects an on the spot answer.

It is a good idea to incorporated all three of these methods when creating your duress code. This allows for the most flexibility for sending signals. Use some creativity to determine your own personal duress codes, and never tell anyone.

Is PMI Really as Bad as They Say?

2009-06-24T07:46:00.000-07:00

The voice of Suze Orman rings out in my head warning me not to buy a house without at least a 20% down payment to avoid paying Private Mortgage Insurance (PMI). But, if we truly investigate PMI in regards to the average first time home buyer is it really that bad? Most of you probably feel that throwing away hundreds of dollars a month is crazy, but it might be the lesser of two evils when it comes to renting, and here is my rational why.

PMI is a fee that lenders charge to cover the risk of financing a home with less than 20% down. Once the home has accumulated 20% in equity, the fee can be cancelled, but not refunded. Since most first time home buyers don't have $59,000.00 laying around to put down on a $292,600.00 home [National Average used per Census.com], many of us resort to paying PMI.

I unfortunately have to pay PMI, which cost about $200.00 a month until the house appreciates 20%, or until I gradually pay off 20% of the principle which should take about 11years. This means that I am potentially throwing away $26,400.00. It may sound absurd, but lets see what would have happened if my wife and I decided to continue renting to save money instead.

Our old modest 2 bedroom apartment was nowhere near as nice as our home, but for the sake of argument it cost us about $1200.00 a month to rent. Like PMI, once that rent money was paid it would never be seen again. The longer it takes to save up for the down payment, the more we would be spending in rent. Just to break even, we would have to save $59,000.00 in 22 months. I don't know about you, but setting aside an extra $2600.00 a month for a down payment is not even feasible at my current pay scale.

Here is a closer look at the break even point:

$200[PMI] x 12 [Months] x 11 [Years] = $26,400.00 [Total Cost]

$1200 [Rent] x 22 [Months] = $26,400.00 [Total Cost]

Here is a closer look at the rate of money needed to be saved before the break even point to be beneficial:

$59,000.00 [Down Payment] ÷ 22 [Months] = $2,600.00 [Per Month]

Let me know if I am crazy, but it appears that it's better for first time buyers without down money to just pay PMI rather than spend years renting and saving. What do you think? Am I missing something?

DIY: Free Paint Color Chart

2009-06-22T10:33:00.000-07:00

Some of my friends showed me a neat trick the other day. While painting and decorating their recently purchased home, they had the ingenuity to make their own color chart for free.

Anyone who has ever painted, knows the intricacy of picking paint colors, and has probably made countless trips to Home Depot or Sherwin Williams with handfuls of paint samples trying to match that perfect shade of sea foam green.

Since none of the nearby stores would simply sell or provide a color chart, they discreetly picked up one free sample from each of the shades covering the entire color spectrum. Back at home the samples were hole punched and bound together with a steal ring making their very own reusable color flip book chart for any future projects.

As a garage tool junky myself, this is a must have for my own home. After I get my samples, I plan on clamping the samples between to thin pieces of wood and trying to drill all the holes at once, instead of hole punching them individually, like they did. So if you are planning to do a bunch of painting, consider making your own free color chart. Even if it only saves you one trip to the hardware store, it's worth it.

Open a Super Secret Swiss Bank Acount

2009-06-18T15:15:00.000-07:00

Let me start out by saying that I do not condone money laundering, or tax evasion. This article is purely to show how you too can have your own super secret Swiss bank account for security or nostalgic reason's fairly easy.

Movies always depict the luxury and romance of having a Swiss bank account as being reserved for criminals, and the über-wealthy. And it is true that "top secret numbered accounts," require an in person visit to Switzerland with an $100,000.00 initial deposit, and a cost of about $300 a year to maintain [statistics by Fortune]. However, the average Joe can also open a regular Swiss bank account fairly easily. Start by contacting the bank, check the term and conditions, fill out an application, and send in a copy of a passport via postal mail or fax. Regular Swiss accounts are still very secure and kept secret from prying eyes under Swedish Law. That includes blood sucking lawyers, Ex-wives, and greedy family members, the repo-man, and even the U.S. Federal Government; unless you are involved in an ongoing criminal investigation. In Switzerland it is a serious crime to divulge any Banking information, and foreign monetary laws are considered a private matter.

According to howtoadvice.com "The Swiss currently charge a hefty 35% tax on interest earned in Swiss accounts, but Americans get 30% of that tax refunded by showing that they're not Swiss residents." Many Swiss banks also conduct transactions in multiple currencies, allowing members to take advantage of the exchange and interest rates of other countries.

Out of the enormous list of Swiss banks, here are some of the more popular ones:

- The Union Bank of Switzerland
- The Bank Leu (AG) in Zurich
- The Swiss Credit Bank in Zurich

Currently, I am focused on paying off my credit cards, but I do plan opening a Swiss bank account when I have the liquidity to dabble in Foreign Banking ventures. Until then, I will just have to leave the cloak and dagger repertoire to the professionals.

The 5 Year Question

2009-06-17T10:33:00.000-07:00

Do you know where you want to be in 5 years? We've all encounter this question plenty of times. You probably thought about it briefly and then went on about your day, oblivious to the actual power of this question. In order to achieve goals in life, each goal must first be clearly identified, and that is the true nature of this question. It is not enough to "want to make more money," or "want to be happy." Goals must be defined on a granular level, and only then can steps be taken to achieve them. Here an example:

Suppose your answer is to "become a homeowner," that's fine and dandy, but unless you elaborate, it's not likely to come true. Ask yourself a series of follow up questions, like which neighborhood do want to live in? How many bedrooms can you afford? how does you credit score compare to what is needed? If you start thinking about these little details, you have already subconsciously started house shopping, and achieving your goal. You may be years away from owning a home, but it's a start and you're closer than you were a few minutes ago. The next step is to take action towards your goal. Since, you've already made up your mind to buy a house, taking action is now justified. You have a reason to pay down your credit cards, to improve your credit score, to save money, to begin looking at homes in your desired area, and to immerse yourself in housing culture. Learning about real estate, and house hunting will help you stay on track. The hardest part of achieving any goal is simply taking the first step, but eventually you can be a home owner.

By really contemplating the answers to this question, it will create a spark of hope and direction to better your life. So take the time right now and decide where in life you want to be in 5 years. Do you want to complete a marathon, start a family, start a business, learn a language, travel Europe, get a degree, get out of Debt? Strive to accomplish your answer and don't take no for an answer.

Shutterfly Photo Album Books

2009-06-16T09:43:00.000-07:00

If your family is anything like ours, they take pictures of everything. My Dad once took a record 1400 pictures during a 10 day vacation overseas. My wife is also quite the photographer. She is known for taking pictures of her exotic cocktails and martini's when we're out for a night on the town. When we go hiking, she takes great macro pictures of plants and insects. At the aquarium she is the master of snapping tropical fish without using the flash. It seems like whenever a perfect photo opportunity arises, she always has our camera ready. So as you can imagine, we have ludicrous amount of pictures on our computer. Unfortunately, nobody ever gets to see them, unless they are using our computer, or receive them in an email.

That was until my wife opened a free Shutterfly account, and started making photo books. The first couple books were of our wedding and came out phenomenal. Shutterfly easily allows the sizing/placement of the pictures with capabilities inserting blocks of texts and selecting different backgrounds. The books were fairly inexpensive and gratifying to design. We decided to display under our coffee table for for visiting guests to see.

A photo book can also make a great gift, that is a little more personal and creative than shopping at the mall. Consider a photo book for birthdays, Christmas, Anniversarys or Valentines day.

Explore the Foods of Other Cultures

2009-06-15T14:54:00.000-07:00

Do you tend to cook the same meals, or eat at the same restaurant, over and over? Do you constantly find yourself asking what to do for dinner, and end up settling for something familiar or easy? Most people never explore the endless options of cultural cuisine.

With the invention of the Internet, it's easier than ever to find recipes, or restaurant locations, for exotic food. Try your hand at making your own sushi, it's easier than it looks. After exploring some Szechuan Recipes, I found that I can make a mean stir fry. My wife and I enjoy getting $2 pizza doughs at Trader Joes, and making our own exotic pizzas. Consider visiting a Brazilian Restaurant like the Ipanema Grill in Seattle,WA; the Puerta Rican Restaurant Sol Food in San Rafael, CA; or the Flavor of India in Santa Barbara, CA.

The next time you're wondering where to eat, try spinning a globe and blindly picking a random country with your finger. Then, use Google or Yelp to find recomended restaurants in the area with similar styles or themes.

Be adventurous and spuratically try something new. Finding good places to eat in your area, and trying new receipies will not only broaden you horizons, but it can bring excitement to an otherwise routine evening.

No More Analog TV

2009-06-12T07:59:00.000-07:00

Remarkably, the average American watches about 7 hours of TV a day. That might prove difficult for some, considering that analog TV will be shut off permanently today! Hopefully you already got your digital box, or an adapter.

What does this mean for me?

Most people have at least one TV with digital cable in there home, which will not be affected by this conversion. Any additional TV's without a cable box, like the one in your bedroom, will no longer receive signals without a digital box or Adapter. Comcast, the major service provider here in Seattle, sent me an adapter for free after I gave them a call. I believe they give up to 2 adapters per house hold is free, and charge for 3 or more.

Despite the hassle of converting, All digital TV is actually a good thing. It will give viewers a clearer picture, and even allowed the government to make some much needed extra cash. According to CNN.com, The federal government raked in $20 billion in auctions by selling licenses for the frequencies vacated by local television stations for other commercial uses.

Like all superseded technologies, the old ways will become a thing of the past. Future generations will never fiddle with positioning Rabbit Ear antennas. They will never use tin foil and coat hangers to increase a weak signal. They won't understand the concept of "snow," in regards to bad reception, just as many of us today are unfamiliar with terms UHF and VHF.

So long analog R.I.P!

Free Criminal Searches

2009-06-10T13:42:00.000-07:00

The information found on the Internet never ceases to amaze me. In past articles I have talked about using search engines like Zabasearch to re-establish contact with long lost friends, but just the other day I found a new site criminalsearches.com. This site allows you to search people's criminal history. Crimalsearches.com lists individual case numbers the and categorizes the type of crimes committed. Now it's easier than ever to find out whether your next door neighbor is a chainsaw wielding serial killer.

However, the information doesn't appear to be completely accurate or conclusive. I tried to search some of my own brief encounters with the law, and could not find them. Try conducting your own searches and comment on what you find.

Open a Junk Email Account

2009-06-08T15:20:00.000-07:00

Whether its signing up for a the newest social network, or posting a comment on your favorite blog, it seems like just about everything asks for your email address. It's no wonder we get so many spam emails trying to sell magic pills, online subscriptions, or "As Seen On TV" gadgets. Just like the regular junk mail from the post office, spam email are an unfortunate part of life.

However, it is fairly easy to set up alternate junk email account. Just go to hotmail, yahoo, gmail, or any other free email client of your choice. Open an account under some easy to remember name like yourjunkemailaddress@gmail.com. Start using this new address for all the random requests, and save you real email address for emergency contacts, banking, and personal correspondences. It will take you all of about 5 minutes to set up and your inbox will no longer be filled with spam.

Switch to Cheaper Dog Food

2009-06-04T07:49:00.000-07:00

As featured in the Savings section of "Moneyunder30.com's 208th Carnival of Personal Finance."

The Internet is riddled with ways to save money by reducing your monthly bills. This can be applied to all of your monthly expenses, regardless of whether or not you receive an invoice. A perfect example is spending $50.00 per month on dog food, which cost about the same as many utility bills. Most people don't bother to shop around to for better deals on dog food or even considers using a cheaper brand. Ironically, if I said you could save $10.00 a month on all of your future cell phone bills by jumping once through a flaming hoop on a unicycle, you would probably consider it.

What to get?
Companies try to capitalize on our emotional attachment to our pets by competing for the title of healthiest dog food. They know we all subconsciously want that absolute best for our little fur ball. The reality is compared to all the other things that dogs eat when we aren't looking, I don't think kibble type really makes that much of a difference. Obviously this excludes recalls and food that makes your dog ill. Research and compare price vs. name recognition to determine what is appropriate for your pooch.

Where to get it?
The price of dog food will vary depending on where you live. Here in Washington I have found that the cheapest place to get dog food is Dells Farm Supply, which carries all of the top name brand foods at a fraction of the price of PetCo or Petsmart. Another good place to buy dog food is Costco. If your only option is to shop at the high priced pet shops, at least see if they have any deals like buy 10 bags over a year, get 1 free. Many Petshops are offering some kind of rewards program.

How to make the switch?
Your dog has probably become accustom to its food. In order to make a switch to a less expensive brand, you must gradually blend in the new stuff. Start by feeding your dog a split portion of 25% cheaper food and 75% regular food. Do this for a few days, and then increase to 50% cheaper food and 50% regular for a few more days. Next feed the dog 75% cheaper food and 25% regular for a few days. Finally start feeding only the less expensive food and you are on your way. The gradual switch should take about a week.

Your furry friend won't know the difference, but your wallet will.

Wamu has "Become" Chase

2009-05-28T13:41:00.000-07:00

If you are a current Washington Mutual Customer, you've probably heard for months that Wamu is becoming Chase. It appears that the other day Wamu infact "became" Chase. I recently went to Wamu.com to do some online banking, and ran into some complications. I could log in and see my balances, but it wouldn't allow me to transfer any money. In order make the transfer, I had to log in at Chase.com. Now I can no longer log in to Wamu.com, and must do all online banking through Chase. The user interface seems to be pretty similar, and I haven't come across any problems yet. Good bye Wamu and hello Chase!

The Simple Credit Score Breakdown

2009-05-27T08:06:00.000-07:00

All the information regarding your credit score on the Internet can be overwhelming. According to a simple Google search, there are 66,500,000 pages on this topic alone. Instead of having to swim through all the articles trying to figure out what hurts credit, and how to improve credit, here is a simple breakdown of how your score is determined:

35% Payment history- Not making a payment, or making late payments will severely damage your credit score.

30% Total debt owed to available credit ratio- It's good to have at least 75% available credit on all credit cards. Car loans and mortgages are also a factored in you score.

15% Length of time establishing credit- Keep established credit cards open with a zero balance, the longer the better.

10% Types of credit established- Try to have at least few different credit cards, and maybe a car loan or mortgage.

10% Inquiries and New accounts- Running a credit check, and opening new credit cards will temporarily affect you score in a negative way. Running multiple credit checks in a short period of time can be interpreted as one credit check. Checking your own credit does not affect your credit score.

These are the factors the determine your credit score and hopefully this article will give you a better understanding of how to maintain your credit.

Only use Cash when Traveling

2009-05-26T12:26:00.000-07:00

Despite the economy, some of you decided to travel this memorial day weekend. After returning to work today, you probably checked your account balances and found yourself up to you eyeballs in debt. The harsh reality of having to eat macaroni & cheese with ketchup until your next paycheck is probably starting to set in.

Unfortunately I can't go back in time to unspend your money, but I can show you the benefits of traveling with cash:

If you want to survive your next vacation without spending more than you can afford, it is crucial to save as much money as possible before trip. Once you have saved up some cash, take the total amount of the money saved and divide it by the number of vacation days to determine the your daily spending limit.

$500 Saved ÷ 5 days = $100 per Day

Cash is Good-If you're confident that you won't misplace the money or be robbed, I recommend withdrawing all of it at once, and putting each days ration in a separate envelopes. As you venture out from the hotel each day, grab you allocated money envelope. This will provide a ceiling or cap for your daily spending. If you get back to the hotel with money left over, then you can roll it over to the following day. If you run out of money, then you're vacationing outside your means, and you probably shouldn't buy the matching "I'm with Stupid" souvenir T-shirts anyway.

Credit Cards are Bad-The modern convenience of credit cards make it way too easy to rack up an enormous debt regardless of whether you have the means to pay. It is amazing how fast your debt will increase after paying for breakfast, the forgotten bottle of sunscreen, parking, admission to the attraction, souvenirs, lunch, gas, and dinner on the way home. All these small purchases will sneak up on you until WHAM!!!! You are confronted with a credit card bill that looks more like an overgrown ogre with a club, than a monetary exchange medium.

We take vacations to escape the demands of daily life, but if these vacations cause more financial stress upon return, we are better off without them.

Stop Working Late

2009-05-21T12:40:00.000-07:00

Many of us feel the need to sacrifice our lunch breaks and stay late at the office, but is it really necessary? Will it really solve world hunger and bring peace on earth? Odds are probably not; it will only build resentment towards the workplace and feelings of discontent. Granted there are times when it might be critical to stay late to finish a major project, but these occurrences should be far an few. Take control of you life stop burning the midnight oil.

How you're paid can make a difference
Hourly- If you are paid hourly, overtime is a way to make some extra cash. Especially if you don't have anything else better to do. Just be careful because the greed of overtime dollars can quickly consume your life.
Salary-If you receive a salary, it's simple "stop working for free." It is easy to think that the well being of the company rests on your shoulders, but I assure you it doesn't. The reality is: If you were hit by a car tomorrow, the business would continue to function without you. On top of that, most bosses won't even notice your extra effort, and if they do, it won't be to the extent that you're expecting.

No Self Esteem
Employees that lack self esteem can easily be coerced into working extra hours, because they are too nice to say no. Be assertive and stand up for yourself. Don't allow everyone in the office to nominate you as the scapegoat for tying up loose ends.

Have Plans Outside of Work
Ever noticed how certain people never work late because they have kids to pick up from soccer practice, a bus to catch, or some other kind of plans outside of work? Nobody seems to give it a second thought. After all, they are put in a full day just like everyone else. They're just not getting suckered into working the extra long hours. This is why it's so important to always have a top secret ninja back up plan. If your boss asks if you can come in on Saturday, tell him that you have plans with some friends, or that you have some important errands to run. More than likely he will think nothing of it and ask someone else.

Someone Always has to Play the Martyr
I've worked alongside plenty of people who volunteer to work late unnecessarily, and then hold it against everyone later. They eventually get upset with co-workers because they feel under-appreciated, and constantly complain about the unfair work load. A martyr is the kind of person that spends the whole shift gossiping over coffee, and then tries to save the day by putting in some extra hours after everyone else went home. A true hero doesn't have to advertize.

What is Actually Getting Done
Working late is never as productive as it seems. It's easy to burnout after too many consecutive hours at the office, and it will diminish your quality of life. It's pointless to work late, especially if it makes you a zombie the next day.

Look at the Bigger picture
If you have the kind of job that regularly requires you to work late and sacrifice your lunch breaks, then consider a procedural change like a redistribution of the work load, working more efficiently, or hiring some extra help. Things that may seem important are usually not, and most job tasks can wait until tomorrow.

Get Advice from an Expert

2009-05-18T12:44:00.001-07:00

In order to succeed in life one must learn when to put pride aside and ask for advice from an expert. When remodeling your home, or assembling your child's bicycle, it's easy to pretend that you know what you're doing. Unfortunately, not listening to that little glimmer of doubt can quickly cause catastrophic damage.

WHEN TO ASK:
A good rule of thumb is "If the thought crosses your mind to ask, ask!" You can choose not to take the advice, but two heads are always better than one. Sometimes I will even ask an expert for advice on important decisions just to confirm what I already know.

WHO TO ASK:

Google - I have found that the all seeing, all knowing, expert of everything is Google. I constantly use google to conduct Internet searches which can unleash tidal waves of knowledge.
Friends - If you are having trouble hanging ten with Google, sometimes simply seeking advice from a knowledgeable friend can prove very valuable.
Networking - When your small group of friends can't solve your problems, consider seeking advice from a friend of a friend. Social Groups like Myspace and Facebook are proof that we are all connect to each other in some way.
Ask the Pros - If you aren't acquainted with anyone that can help, pick up the phone an call someone in the related field or industry. Call your local Bike shop to find out the proper way to put a tire on a rim, or visit your local hardware store to find out the difference between Spackle, and joint compound.

By constantly seeking the advice of others, it will not only help you from making unnecessary mistakes in life, but it can also provide a viewpoint not clouded by your own personal feeling and emotions. It is better to have someone show you how to unload a gun than trying to figure it out on your own.

AT&T Gives .Gov .Edu .Mil Discounts

2009-05-15T21:56:00.000-07:00

If you are lucky enough to have and email address that ends in .gov, .edu, .mil than you will be happy to know that many companies like AT&T gives discounts. The discount can be like 15% off you bill or on accessories. Just enter you email address to qualify in the box on the right of the page for discounts.

If your email address doesn't qualify you instantly like mine, you can still get the discount by bringing proof to an AT&T store.

Also, many hotels have Government discounts, and some office supply stores will have teacher discounts.

I heard that Comcast might even offers some kind of discount for those of us in the Public Sector, but I haven't been able to find anything online.

Get Rid of Your LAN Line Phone

2009-05-13T13:00:00.000-07:00

I have not had a lanline phone for over 7 years and haven't even noticed. Most people these days have a cell phone able to accomodate all of their calling needs. According to the Los Angeles Times, the average lanline phone bill is about $40.00. That means that over the last 7 years, I have save roughly $3,360.00. Occasionally when filling out forms, I am asked for my home phone number. I just put my cell phone number instead, and haven't had a problem yet. Having a lanline is only justified if you live somewhere with little to no cell phone reception, but for most of us a lanline is just a waste of money.

Some cable companies will try to sell you there lanline phone service by incorporating it in their Internet and Cable package. This isn't always cheaper, especially if you don't need the lanline, so make sure to understand the contract before you sign up.

Stamps are Now $0.44

2009-05-13T07:43:00.000-07:00

Starting May 11, 2009 postage for a standard envelope went up to $0.44. Hopefully you stocked up on the Forever stamps. If you pay your bills online as mentioned in Never Worry About Bills Again, then it's no be a big deal. I just thought I would let everyone know.

Stop Orders vs. Limit Orders

2009-05-12T09:16:00.000-07:00

As a beginner investor, I just learned a valuable lesson. I purchased my first shares of stock a few months back and they have actually been performing quite well. Ford (F), which I started buying at $2.19, dropped a little today from over $6.08 to $5.26. Feeling adventurous, I tried to place a more advanced type of order to sell my shares if the stock dropped below my determined price of $5.00. I accidentally placed a Limit Order instead of a Stop Order, and since Ford stock was already above the limit, it sold all my shares instantly at $5.26. After I realized my mistake, I bought them all back, but ended up paying $5.46 per share plus commission fees. Since I only have a small amount invested it only cost me about $30.00, but I will never make that mistake again.

Stop Orders
As mentioned above, a Stop Order is used to "buy or sell a certain quantity of a certain security if a specified price (the stop price) is reached" according to investorwords.com.

[Example from Investopedia.com] If you own stock ABC, which currently trades at $20, and you place a stop order to sell it at $15, your order will only be filled once stock ABC drops below $15.

Limit Orders
Are used to "buy a specific quantity of a security at or below a specific price, or to sell it at or above a specific price (called the limit price) according to investorwords.com.

[Example from Invetopedia.com] If you want to buy stock ABC, which is trading at $12, you can set a limit order for $10. This guarantees that you will pay no more than $10 to buy this stock. Once the stock reaches $10 or less, you will automatically buy a predetermined amount of shares. On the other hand, if you own stock ABC and it is trading at $12, you could place a limit order to sell it at $15. This guarantees that the stock will be sold at $15 or more.

I really like using Tradeking.com because it makes everything so easy, but next time I won't just click on things without knowing exactly what I'm doing.

The Art of Email

2009-05-11T10:35:00.000-07:00

It seems like emailing has become the primary way to conduct business these days. Nobody calls each other, or walks over to their co-workers' desk. Simple one line messages are fired back and forth like lightning bolts containing easily misinterpreted information.

Sample Conversation

Tony: " Out of office, be back next week"
Megan: "Sorry Not sure maybe Tony"
Travis: "Cc: Megan see if she can"
Glen: "don't know, maybe on the website."
Travis: "Who idea was that? I need info ASAP"

Unfortunately, these types of conversations are very common even in the business world. Just because it sounds alright in your head, doesn't mean a readers will have a slightest clue of what you mean. A poorly written email can make even an educated professional look like a babbling 5 year old.

In emails, words are easily taken out of context, and can portray the wrong emotions. A misinterpreted message can quickly escalate office drama, and causing co-worker rivalry.

Think of an email like a formal letter. Try to write in complete sentences, and state whatever "it" is clearly. Write the messages so that even a complete stranger could understand it if necessary.

Too many important business decisions are fouled up everywhere due to the misinterpretation of emails. Do everyone a favor, and take the extra time to state exactly what you mean. Proof reading doesn't hurt either.

The Ginzu Paycheck Slicer

2009-05-08T07:50:00.000-07:00

Do you ever wonder where all the money from your paycheck went? Are you bad at budgeting? With the new Ginzu Paycheck Slicer from Live for Improvement, you can enter the dollar amount of your paycheck to quickly calculate how much money to set aside for bills. The Ginzu Paycheck Slicer can even show how big a bite each expense takes from your paycheck. Download it for Free by clicking on the link and selecting Download File:

No Limp Hand Shakes

2009-05-07T13:12:00.000-07:00

Whether it's a simple introduction, or sealing a multi-billion dollar deal, shaking hands is a customary form of acknowledgement here in the United States. We've all experienced shaking someone's hand that feels more like a rubber glove filled with spaghetti than a part of their skeletal structure. It's very uncomfortable, and can be construed as a sign of weakness.

Make an effort to look people in the eyes, and shake their hand firmly. People will inadvertently consider you more sincere and speak higher of you character. On the other hand, If your body type is the kind that makes approaching people cross the street, then be careful not to cause injury with your gorilla like grip strength.

If you are someone who gets clammy hands, try running your wrists under cold water before meetings, as mentioned in Nailing a Job Interviews. This will constrict the blood flow in your an keep your hands from sweating.

The act of shaking hands may seem trivial, but not being able to shake hands properly is just poor manners.

Look More Productive By Walking Fast

2009-05-06T08:17:00.000-07:00

Simple mannerisms can greatly affect how people perceive you, and can even change the outcome of events. As mentioned in the first step of my article How to Own the Night, it's important to be assertive and have confidence in yourself. This is especially important in the workplace when you want to get ahead. If your boss constantly sees you on your cell phone making personal calls or always on break, he may wonder how much work you are actually getting done. If you appear to be more productive and always doing stuff, you might be considered among others for a promotion.

One of the best ways to look productive is to walk around the office at a faster pace. I am not suggesting doing laps all day long in a jogging suit. Just walk with a purpose. If you retrieve documents from the central printer, don't casually saunter over hoping that someone will stop and chat with you. Walk as if you have things to do, and time is critical. People will notice, and you will gain an underlying form of respect from your peers.

Is Pet Insurance Worth It?

2009-04-30T15:12:00.000-07:00

My wife and I are in the process of adopting a yellow lab puppy. We are considering pet insurance for this new addition to our family. Especially, after our cat Gabby had a hyperthyroid problem that cost us over $900 last year.

I have done some preliminary research and found that the average life expectancy of a dog is about 12 years according to the SPCA. The statistics from the AAHA, APPMA, and the AVMA show the average health care costs for dogs to be about $550 annually. Approximately $146 of that is directly due to annual physicals. This amount seems extremely high to me, but it was sourced on many sites.

Utilizing this data, the average cost to maintain a dogs health is about $45 a month.

[12 years x $550 per year = $6,600 per lifespan = $45 per month ]

Pet Health Insurance Plans range between $25-$50 a month depending on the size of dog, and type of coverage. Each plan has deductibles, and exceptions that are not covered.

If this is correct then I would pay roughly same amount regardless of whether I had pet insurance plan or not. Also, by having insurance plan I limits myself to the terms of the plan, and lock myself into a $6,600 debt even if my dog require less medical care. If I were to put that same $45.00 a month into a savings account, then it could grow to $7800 at 3% after 12 years. I know that expensive operations exist, but they are rare, and usually just prolong the inevitable.

In order to test other variables, I conducted a brief survey with my friends and family about their dogs. Only a few had one or two times they might have spent $300-$400 dollars for an injury during the lifespan of the dogs. That is nowhere near the amount to justify pet insurance. I also learned by recomendation that programs like 1-800- Petmeds really can save you money, since a veterinarian will charge you top dollar for prescription medications. This supports my notion that Pet Insurance is not necessary.

After everything I have learned, we will not be getting Pet Insurance for the puppy. Some people feel the need to spend $20,000 dollars to keep their 18 year old cancer ridden dog alive for another 6-12 months out of guilt, but this is more of a emotional decision and not practical.

It may sound heartless to choose saving money over pet insurance, but remember whether my dogs medical bill costs a few hundred dollars, or a $20,000 treatment is always an option.

Free Credit Report, Not Free Credit Score

2009-04-27T07:45:00.000-07:00

You've all seen the guys on TV with the pirate hats advertising free credit reports, but there is a big difference between a free credit "report", and a credit "score". The Fair Credit Act entitles you to a free credit report once a year. This will allow you to review your payment history with creditors, and see an overview of your various credit accounts. The problem is that most people want to know their credit score which costs money.

A credit score is a number between 850-300 that ranks your creditworthiness. Your credit score is calculated by the three separate credit bureaus Experian, Equifax and Transunion. Each credit bureaus can have a different score. It is important know all three scores to help identify errors, and give you an overall average.

With that being said, AnnualCreditReport.com is the ONLY authorized source to get your free annual credit report under federal law.

*Beware of sites that claim to have free credit reports and free scores, they will usually lure you into subscribing to some kind of credit monitoring program that will end up costing you money.*

A good website to purchase your credit score is MyFico.com. They offer a fairly encompassing evaluation of your credit, including your all three credit scores for around $50.00. MyFico.com is also highly recommended by Suze Orman.

It is good to check your credit at least once a year.

Stop Living Paycheck to Paycheck

2009-04-26T08:20:00.000-07:00

According to a Career Builder Survey 47% of people live paycheck to paycheck. 40% also say that they could live comfortably with an extra $500 a month, even though 21% of people making $100,000 or more still spend their entire paycheck before their next pay day.

Many people don't understand, that it's not how much money you make, but what you do with that money. Complaining about not making ends meet is useless, if you are unwilling to change your standard of living. Changing you spending habits is the only way to stop living paycheck to paycheck.

Test Your Standard of Living

Try setting aside 20% of your paycheck next month. Could you survive and still pay all your expenses like rent, car payments, grocery bill, utilities, gas, and credit cards? If not, you are probably living outside of your means. A 20% decrease in pay is not fun for anyone, but you should never require more than 80% of your paycheck for regular living costs. With 20% less income you may have to put you social life on hold, and temporarily eat less expensive food, but you should still be able to pay your bills. If you cannot survive one month with a 20% decrease in pay, you may want to consider reducing your expenses like making a grocery budget, driving a less expensive car, or even considering living in a less expensive home. Most personal finance consultants recommend saving at least 10% of your income. I am a strong believer that having 20% less income, even though unpleasant, should not be detrimental to you survival.

The stress of living day to day is self induced, and has nothing to do with how much you make. Being unemployed is a different story entirely, but as long as you have a job, there are plenty of people in the world that would be happy to earn what you do. If they can be perfectly content, so can you.

Happy Earth Day Challenge

2009-04-22T12:43:00.000-07:00

I am challenging everyone today to do at least one small thing to help out our planet. Just between you and me, I didn't take a shower this morning and hope my co-workers don't notice.

Tell me what you are doing to save the planet one small step at a time.

For the history of Earth Day check out the article presented by National Geographic News.

Cover Your Pin at the Checkout Stand

2009-04-21T10:33:00.000-07:00

Whether it's Costco, Shell gas, AMPM, MacDonald's, or Starbucks most people are now using debit cards as their primary form of payment. The amount of people conducting debit card pin transactions is growing [Pin Payments Blog]. After analysing the last few months of my own bank statement, it appears that I use my debit card on average about 50 times a month, or 1.7 times per day. With this frequency it doesn't surprise me how some people can be oblivious, and nonchalantly enter their 4 digit pin in plain view of strangers.

Keeping you card number secure is one thing, but not covering your pin is asking for trouble.

How to tactfully cover your pin at the checkout stand, without looking paranoid

I like to use my left hand to cup over the key pad device as if I am shielding the light to better read the LCD screen. I simultaneously take my right hand and type in the code. It is actually quite seamless. If anything, people might assume I am having difficulty reading the screen. It is nothing personal against the clerks, or other people in line, it is just common sense.

Getting Out of a Traffic Ticket

2009-04-17T08:13:00.000-07:00

In my lifetime, I have received my fair share of traffic tickets. I have dodged some, and paid dearly for others. Below are some tips to minimize the consequences of getting a traffic ticket:

*Take these tips at face value, I am not a lawyer*

1. Show respect to the officer when pulled over- The initial issuing of the ticket is ultimately at the discretion of the officer. He might let you off with a warning if you don't make his day more difficult.

2. Contact the Court Clerk or Prosecuting Attorney- If you can get on good terms with these people, they might be able to come to agreement or settle outside of court, usually with traffic school or some kind of probation.

3. In Washington request for Deferred Findings- If you have a clean record, and are a responsible driver, deferred findings will place you on a probation for a year. If you don't have any other citations in that year, the charges will be dismissed without appearing on your driving record after the $150 administration fee is paid. Deferred findings can only be administered once every 7 years.

4. See the Judge - By checking the "mitigation" box you can go see the judge, and humbly ask for a fine reduction or to have the violation not reflect on your record.

5. Fight it, if you can - If you have any kind of case against the ticket, fight it. If the officer doesn't show up to court the case will be dismissed.

Anytime you are dealing with law enforcement or the courts, it's imperative to be polite and respectful. Arguing with a judge or a police officer is just asking for more trouble.

Last Day For Taxes

2009-04-15T07:45:00.000-07:00

Hopefully none of you waited til the last day to file your taxes. If you did, you have until midnight tonight to file, before feeling the wrath of the IRS.

Here are some interesting Tax facts according to the [Daily Chronicle]:

1. The Internal Revenue Service estimates that 20 percent of taxpayers wait until the last week, and 5 percent to 10 percent wait until April 15 to file.

2. Just over 92 million returns were filed with the IRS through Friday, about two-thirds of the 141.2 million expected this year. The total is expected to be about 10 percent less than last year, when many people who weren’t required to file sent in returns so they could claim economic stimulus checks.

3. Taxpayers who owe taxes and don’t file their tax return by the deadline may face interest on the unpaid taxes and a failure-to-file penalty.

Emergency Fund Before Credit Card Debt

2009-04-14T08:13:00.000-07:00

In past years, financial experts such as Suze Orman have encouraged people to pay off their credit card debt as a top priority. It was considered foolish to put extra money into a savings account earning 5%, when you have a credit card debt costing you 19%. Well times have changed.

Due to the volatile nature of the current economy, people are finding it much more advantageous to pay the minimum on their credit cards, and instead build up their emergency fund. Having a paid off credit card, and no emergency saving, does not provide the liquidity necessary to survive a lay-off. With the unemployment rate reaching 8.5 in March [NPR.org], I don't blame them.

I believe the number one priority should be to have an emergency fund, then focus on credit cards. The size of an adequate emergency fund depends on your job stability, dependents, and asset portfolio. A sufficient emergency fund can range from $1000 to a 1 year's salary [Getrichslowly.org]. It all depends on your personal comfort level. If don't have kids, I would still recommend having at least 1 months salary before paying more than the minimum on your credit cards in today's economy.

Automate Your Minimum Credit Card Payment

2009-04-13T06:00:00.001-07:00

Forgetting to pay the minimum amount due on your credit card by its due date can generate all kinds of problems. Some of the problems that can occur are late fees, poor credit, limit reductions, and it can even cause you to forfeit the current 0% introductory rate or special terms.

If you lack the discipline to consistently pay your credit card bill on time, you might want to automated your finances, as described in Never Worry About Paying Bills Again. By simply logging onto the website of most credit card companies, you can enroll in a reoccurring direct payment plan. Set up the payment so each month the minimum amount is paid automatically from your checking account. If you forget, hopefully your checking account can absorb the minimum payment. If some months you want to pay more than the minimum amount, just make that payment. When the billing period cycles, the minimum amount due will be $0.00, and you will not be billed twice.

Now you will never default on your credit card payments.

Free Quick Books

2009-04-12T15:25:00.002-07:00

QuickBook's is now offering a "simple start free" edition of their software to encourage small businesses to learn their product. QuickBook's in general is a great way for small businesses to evolve from bulky spreadsheets and word documents to more advanced accounting software. QuickBooks "simple start free" software allows small businesses to create invoices, track sales, track expenses, pay bills, print checks, organize data for customers/vendors/employees all in one easy to use program.

If you are still cutting and pasting customer information into an invoice created in Word, get Quick Books now!!!!!!!! Too many companies try to reinvent the wheel by making spreadsheets to manage their data. Don't waste your time when a pefectly good business management tool exists for free.

Quick Books can be downloaded safely from Cnet

Happy Easter

2009-04-12T11:21:00.000-07:00