My current preferences pretty much align with yours, Silicon Valley Blogger, although some strategies were different when my income was very low and I lived much closer to the edge.
I'd say it is possible for people to change their relationship with credit cards for the better. My husband is, nowadays, an extremely level-headed guy when it comes to finances. He refinanced his house not long after we started dating, and he was pretty proud to show me his 820 credit score :-) I never would have guessed he had trouble in the past, but recently he confessed that in the days not long after high school he actually did get into a bad CC debt mess.
He took over the housecleaner's job at his parent's house for about a year to earn extra money and dig himself out. He's kept his finances in order ever since--I think to avoid having to repeat such an unpleasant and embarrassing situation!
Regarding point #4, emergency fund or pay down debt. I lean in favor of savings before debt.
I had an old friend many years ago who said, "your view of life is very different if your vault is full".
Savings--the full vault--can give you the sense of strength and security you'll need to even begin paying down debt in a meaningful way. The ability to save provides tangible evidence that you can live beneath your means, which paves the way to pay off debt.
@Elizabeth - I think you may find even though you can produce a 20% down payment, that simply showing records of paying rent will not create a sufficient credit record to quality for a mortgage. Does anybody else want to weigh in on this?
Has anyone noticed that despite all the claims about how bad this restaurant food is, or how bad fast food is in general, that no one seems to be getting scared off?
People might back off frequenting a restaurant on a list somewhere, but head over to another that isn't any better.
The best advice is to cut down/cut out as much eating out as possible. You'll be thinner, healthier and have more money. None of them are healthy because we can never know exactly what special sauce or how much fat they're using. And typically the more of either that they use, the better the food tastes. It's a cruel irony.
I love number 7! However, I am not exactly coordinated with a needle and thread in my hands. My best friend is instant hem. It's like a strip of glue that you can use with an iron to hem things together that's is extremely sturdy. Everyone should have some on hand for minor emergencies, but its great for creating new clothes as well! Another fave of mine is double sided tape, works like a charm.
Hands down, I have found that the best way to save is to do it automatically. You learn to live on what your pay is after you pay yourself. If you don't put some money away first, you will always end using it for something else.
Knowing which restaurants have high calories, fat & salt content is useful information. We should all decide for ourselves where to eat and what to eat but having the nutritional information available if we want it is a useful part of that decision. Frankly I'm a little surprised that Macaroni Grill & Baja Fresh are on the list and KFC, McDonalds, Wendys', Burger King and various other fast food joints are not on the list.
But one thing I'd point out is if you're looking at total calorie and fat content of a meal then also look at PORTION SIZE. When we go to Macaroni Grill we usually eat about 1/2 of the entree because they have fairly large portion sizes. Larger portions will give you higher calories per meal. Its hard for me to fault a restaurant for giving me more food. And of course more food = more caloires. But I don't have to eat it all..
Is it only me or does having Baskins & Robbins on this list make no sense? Since when are they a restaurant? Don't they just serve ice cream or do they actually serve food now too?
If your 401(k) plan has one or two good choices, but is missing something significant, an IRA can give you a tax-advantaged place to buy whatever is missing. (Lots of plans don't have a REIT option, for example, but that'd be easy to buy in an IRA).
IRAs are also really important for people who don't have a 401(k)--people who are self-employed or work for a really small company.
If you've got a really good 401(k)--one with a good selection of investments and high enough limits that you can tax shelter as much money as you want--and especially one with a good corporate match--then you probably don't get much benefit from having an IRA as well. In that circumstance, I'd probably go with a Roth IRA instead.
IF YOU HAD NO IDEA THAT A PROGRAM LIKE THIS EXISTED, WHAT ARE YOUR ALTERNATIVES. IT IS DIFFICULT FOR ME TO APPLY FOR ANY KIND OF CREDIT OR EVEN GET A HOUSE BECAUSE OF MY MEDICAL DEBT, AND CONSOLIDATING COMPANIES WON'T HELP ME, BECAUSE IT IS NOT AN "UNSECURED DEBT" MEANING IT IS NOT FROM CREDIT CARDS. WHA WOULD YOU SUGGEST
That's part of the reason I pay myself last. On a bad month I may not hardly get to put anything away in savings, but it saves me the negative psychological effect of having to pull money out of savings when it comes time to pay the bills.
If you've got notes, the higher the domination the higher the loss for you. Lets say you have €20 million in €500 bank notes, the money is located in Northern Ireland- you got it to Northern Ireland via South Africa- (Harare-Morocco-Spain-Northern Ireland) by stashing vodka bottles with notes, and refilling them up with water- re-glueing the bottles, they now look like normal vodka bottles with pretty designs on the sides, and if customs open'em a clear liquid will flow out. Alternatively you could stash the notes in computer cpu units, sofas, the list is endless.
The easiest way to change this money into credit would be to to buy shares in a mining company in Zimbabwe such as CAMEC. They would naturally want some money in exchange for 1) exchanging all those notes into shares and laundering it 2) making files in the companies accounts which claims you are a legitimate shareholder of the business and made the money in Zimbabwe in lucrative mining deals. Once this is all done, you should end up with €14 million worth of shares in CAMEC. It should be noted big companies are better at laundering notes than any individual could ever be.
Give it a few years, enjoy your shares. tell their associates in the British Virigin Islands you want your shares back- in the form of credit(money). And there you go. There is a few flaws, one you'd have to live in Zimbabwe for a number of years (no bad thing if you're rich, chill out with boys and drink whiskey whilst driving your Toyota Land Cruiser at 100MPH down some country lane) You will be wanted by Interpol (you'd be seen as funding Robert Mugabe)- but you'll make friends and associates which will make these problems disappear.
GOOD LUCK
I have found many mentors as well, I take what I need and leave the rest. Different mentors for different facets and stages. My mentors and advisors change and grow with my business!
I produce health diaries for weightloss, fitness and diabetes management so there are vast amounts of people to look to for advice...and I appreciate all of them!
I find that it is appropriate to budget about $1K per dog/cat or large bird per year. Between flea medication, teeth cleanings, shots (parrots need shots, too!), food, toys (for the parrots again -- they need constant mental stimulation), and unplanned health emergencies (especially with older pets), it really adds up.
So when my DH gives me the "googly eyes of love" for a new pet, I squint at him and ask for the $1K up front.
Yes, I would like to hear your thoughts concerning traditional IRA's. I have total stock, bond and reit funds in mine. I assume I will be in a higher tax bracket in retirement because of the IRA, as I am low income (today).
Hobbies are tax deductible!! u can claim x-penses on your hobby..like that new computer you bought and were planning to create something artistic with...if u made no profits on your hobby u can claim it as a loss to deduct from your income. Taking of advantage of this loss is only allowed for 4 year in a row I believe (check w/accountant or irs).
"Hmm. Not even close to Fascism. Have you ever read a history book or anything resembling a Poli Sci book? Our private sector has failed us. Can't you see that? The govt is getting involved because that's all we have left. Wake up!"
Here is the definition of fascism:
A political regime, usually totalitarian, ideologically based on centralized government, government control of business, repression of criticism or opposition, a leader cult and exalting the state and/or religion above individual rights.
This definition should include a picture of the United States, because we define fascism.
You're the one who needs to wake up, my friend, and I say that not as an insult, but as the most sincere of warnings. The private sector has not failed us at all, as there has not really been a private sector for quite some time due to all the federal government's regulation on business, not to mention the federal reserve's control over the value and distribution of our "money". I hate when people say the free market has failed us. Big government killed the free market.
Do some research, and get yourself a copy of the Constitution and Bill Of Rights.
This program pushed my husband and I into buying this year. We have great income, steady jobs and good savings. We are using the 8,000 as a boost for IRA savings and furniture. We were thinking of holding off but this talked us off of "the fence". We decided to get a co-op on the edge of Queens, NYC instead of streatching for a house right now and we did 10% down. It frees up our money for retirement, backup savings, daily life and allows us to not be at the edge of our budget and be "house poor". We can also still go out to eat and have vacations unlike our friends who got houses. When money needs to be spread around to keep the economy going (or in harder hit areas GET it going) this is a good thing to encourage people like my husband and I to stop holding our money on the sidelines.
We are holding off on the new car b/c hubby car didn't qualify for cash for clunkers (by ONE MPG) and we weren't comfortable with a first time mortgage AND another car payment.
As for the person who saved up 100% of their down payment and didn't have a mortgage- you need to learn that smart and responsible debt management is the way to make money grow- if budget was an issue you should still have been able to buy when you had 50% to put down! Any wealthy person I know uses SMART and SAFE money management to make money grow, take advantage of programs etc. Safe loans keep the money flowing in the economy. Subprimes were just irresponsible!!
This helped me understand the accounts and allocations our financial adviser has been recommending to us. I had a general "this sounds like a good idea" feeling before, and your explanation made it more concrete. Thank you, Philip.
I did not see a traditional IRA mentioned anywhere. Would you ever recommend them as part of the mix? I have one because I rolled over my 401k from a previous employer into an IRA, rather than moving it to my new employer's 401k (I have more investment options in the IRA). Is there an income bracket the traditional IRA is most appropriate for?
Im glad not to live in California and be isssued an IOU insted of a refund , We try to make sure we are not getting a lot back, it just means our money is not available to work for us
Sigh. This is the kind of frothing at the mouth attack on food that turns people off to good nutritional information. Many of these restaurants also offer better alternatives. It isn't necessary to scream about "worst" when it may be more helpful to offer helpful suggestions and recognize that occasionally people want to splurge.
As for portion size, when my wife and I eat at Chevy's we split an order of fajitas. We also visit some of the other restaurants listed here, but I don't think either of us has ever had any of the "worst" items listed. When we order hamburgers, we tend to get something relatively plain, without cheese or sauce.
This article assumes people gravitate to the highest calorie and fat items on the menu. I don't believe this is necessarily the case, and even if it was, the tone of the article will not likely win many people over to healthier options.
My current preferences pretty much align with yours, Silicon Valley Blogger, although some strategies were different when my income was very low and I lived much closer to the edge.
I'd say it is possible for people to change their relationship with credit cards for the better. My husband is, nowadays, an extremely level-headed guy when it comes to finances. He refinanced his house not long after we started dating, and he was pretty proud to show me his 820 credit score :-) I never would have guessed he had trouble in the past, but recently he confessed that in the days not long after high school he actually did get into a bad CC debt mess.
He took over the housecleaner's job at his parent's house for about a year to earn extra money and dig himself out. He's kept his finances in order ever since--I think to avoid having to repeat such an unpleasant and embarrassing situation!
Regarding point #4, emergency fund or pay down debt. I lean in favor of savings before debt.
I had an old friend many years ago who said, "your view of life is very different if your vault is full".
Savings--the full vault--can give you the sense of strength and security you'll need to even begin paying down debt in a meaningful way. The ability to save provides tangible evidence that you can live beneath your means, which paves the way to pay off debt.
@Elizabeth - I think you may find even though you can produce a 20% down payment, that simply showing records of paying rent will not create a sufficient credit record to quality for a mortgage. Does anybody else want to weigh in on this?
Here's a little more information on credit scores and how you are rated when applying for loans and mortgages.
Has anyone noticed that despite all the claims about how bad this restaurant food is, or how bad fast food is in general, that no one seems to be getting scared off?
People might back off frequenting a restaurant on a list somewhere, but head over to another that isn't any better.
The best advice is to cut down/cut out as much eating out as possible. You'll be thinner, healthier and have more money. None of them are healthy because we can never know exactly what special sauce or how much fat they're using. And typically the more of either that they use, the better the food tastes. It's a cruel irony.
I love number 7! However, I am not exactly coordinated with a needle and thread in my hands. My best friend is instant hem. It's like a strip of glue that you can use with an iron to hem things together that's is extremely sturdy. Everyone should have some on hand for minor emergencies, but its great for creating new clothes as well! Another fave of mine is double sided tape, works like a charm.
merriam-webster definition of restaurant
: a business establishment where meals or refreshments may be purchased
Refreshments may be purchased at Baskin-Robbins
Great post!
Hands down, I have found that the best way to save is to do it automatically. You learn to live on what your pay is after you pay yourself. If you don't put some money away first, you will always end using it for something else.
Where's Chipotle on that list?
Knowing which restaurants have high calories, fat & salt content is useful information. We should all decide for ourselves where to eat and what to eat but having the nutritional information available if we want it is a useful part of that decision. Frankly I'm a little surprised that Macaroni Grill & Baja Fresh are on the list and KFC, McDonalds, Wendys', Burger King and various other fast food joints are not on the list.
But one thing I'd point out is if you're looking at total calorie and fat content of a meal then also look at PORTION SIZE. When we go to Macaroni Grill we usually eat about 1/2 of the entree because they have fairly large portion sizes. Larger portions will give you higher calories per meal. Its hard for me to fault a restaurant for giving me more food. And of course more food = more caloires. But I don't have to eat it all..
Is it only me or does having Baskins & Robbins on this list make no sense? Since when are they a restaurant? Don't they just serve ice cream or do they actually serve food now too?
If your 401(k) plan has one or two good choices, but is missing something significant, an IRA can give you a tax-advantaged place to buy whatever is missing. (Lots of plans don't have a REIT option, for example, but that'd be easy to buy in an IRA).
IRAs are also really important for people who don't have a 401(k)--people who are self-employed or work for a really small company.
If you've got a really good 401(k)--one with a good selection of investments and high enough limits that you can tax shelter as much money as you want--and especially one with a good corporate match--then you probably don't get much benefit from having an IRA as well. In that circumstance, I'd probably go with a Roth IRA instead.
IF YOU HAD NO IDEA THAT A PROGRAM LIKE THIS EXISTED, WHAT ARE YOUR ALTERNATIVES. IT IS DIFFICULT FOR ME TO APPLY FOR ANY KIND OF CREDIT OR EVEN GET A HOUSE BECAUSE OF MY MEDICAL DEBT, AND CONSOLIDATING COMPANIES WON'T HELP ME, BECAUSE IT IS NOT AN "UNSECURED DEBT" MEANING IT IS NOT FROM CREDIT CARDS. WHA WOULD YOU SUGGEST
Shirts with prints should be turned inside-out to reduce abrasive rubbing. The prints last much longer.
That's part of the reason I pay myself last. On a bad month I may not hardly get to put anything away in savings, but it saves me the negative psychological effect of having to pull money out of savings when it comes time to pay the bills.
WRONG-
If you've got notes, the higher the domination the higher the loss for you. Lets say you have €20 million in €500 bank notes, the money is located in Northern Ireland- you got it to Northern Ireland via South Africa- (Harare-Morocco-Spain-Northern Ireland) by stashing vodka bottles with notes, and refilling them up with water- re-glueing the bottles, they now look like normal vodka bottles with pretty designs on the sides, and if customs open'em a clear liquid will flow out. Alternatively you could stash the notes in computer cpu units, sofas, the list is endless.
The easiest way to change this money into credit would be to to buy shares in a mining company in Zimbabwe such as CAMEC. They would naturally want some money in exchange for 1) exchanging all those notes into shares and laundering it 2) making files in the companies accounts which claims you are a legitimate shareholder of the business and made the money in Zimbabwe in lucrative mining deals. Once this is all done, you should end up with €14 million worth of shares in CAMEC. It should be noted big companies are better at laundering notes than any individual could ever be.
Give it a few years, enjoy your shares. tell their associates in the British Virigin Islands you want your shares back- in the form of credit(money). And there you go. There is a few flaws, one you'd have to live in Zimbabwe for a number of years (no bad thing if you're rich, chill out with boys and drink whiskey whilst driving your Toyota Land Cruiser at 100MPH down some country lane) You will be wanted by Interpol (you'd be seen as funding Robert Mugabe)- but you'll make friends and associates which will make these problems disappear.
GOOD LUCK
I have found many mentors as well, I take what I need and leave the rest. Different mentors for different facets and stages. My mentors and advisors change and grow with my business!
I produce health diaries for weightloss, fitness and diabetes management so there are vast amounts of people to look to for advice...and I appreciate all of them!
I find that it is appropriate to budget about $1K per dog/cat or large bird per year. Between flea medication, teeth cleanings, shots (parrots need shots, too!), food, toys (for the parrots again -- they need constant mental stimulation), and unplanned health emergencies (especially with older pets), it really adds up.
So when my DH gives me the "googly eyes of love" for a new pet, I squint at him and ask for the $1K up front.
I am working on paying myself first. I always end up dipping in my savings though. I hate doing this! I need to work on not doing this.
Yes, I would like to hear your thoughts concerning traditional IRA's. I have total stock, bond and reit funds in mine. I assume I will be in a higher tax bracket in retirement because of the IRA, as I am low income (today).
Hobbies are tax deductible!! u can claim x-penses on your hobby..like that new computer you bought and were planning to create something artistic with...if u made no profits on your hobby u can claim it as a loss to deduct from your income. Taking of advantage of this loss is only allowed for 4 year in a row I believe (check w/accountant or irs).
"Hmm. Not even close to Fascism. Have you ever read a history book or anything resembling a Poli Sci book? Our private sector has failed us. Can't you see that? The govt is getting involved because that's all we have left. Wake up!"
Here is the definition of fascism:
A political regime, usually totalitarian, ideologically based on centralized government, government control of business, repression of criticism or opposition, a leader cult and exalting the state and/or religion above individual rights.
This definition should include a picture of the United States, because we define fascism.
You're the one who needs to wake up, my friend, and I say that not as an insult, but as the most sincere of warnings. The private sector has not failed us at all, as there has not really been a private sector for quite some time due to all the federal government's regulation on business, not to mention the federal reserve's control over the value and distribution of our "money". I hate when people say the free market has failed us. Big government killed the free market.
Do some research, and get yourself a copy of the Constitution and Bill Of Rights.
This program pushed my husband and I into buying this year. We have great income, steady jobs and good savings. We are using the 8,000 as a boost for IRA savings and furniture. We were thinking of holding off but this talked us off of "the fence". We decided to get a co-op on the edge of Queens, NYC instead of streatching for a house right now and we did 10% down. It frees up our money for retirement, backup savings, daily life and allows us to not be at the edge of our budget and be "house poor". We can also still go out to eat and have vacations unlike our friends who got houses. When money needs to be spread around to keep the economy going (or in harder hit areas GET it going) this is a good thing to encourage people like my husband and I to stop holding our money on the sidelines.
We are holding off on the new car b/c hubby car didn't qualify for cash for clunkers (by ONE MPG) and we weren't comfortable with a first time mortgage AND another car payment.
As for the person who saved up 100% of their down payment and didn't have a mortgage- you need to learn that smart and responsible debt management is the way to make money grow- if budget was an issue you should still have been able to buy when you had 50% to put down! Any wealthy person I know uses SMART and SAFE money management to make money grow, take advantage of programs etc. Safe loans keep the money flowing in the economy. Subprimes were just irresponsible!!
This helped me understand the accounts and allocations our financial adviser has been recommending to us. I had a general "this sounds like a good idea" feeling before, and your explanation made it more concrete. Thank you, Philip.
I did not see a traditional IRA mentioned anywhere. Would you ever recommend them as part of the mix? I have one because I rolled over my 401k from a previous employer into an IRA, rather than moving it to my new employer's 401k (I have more investment options in the IRA). Is there an income bracket the traditional IRA is most appropriate for?
Im glad not to live in California and be isssued an IOU insted of a refund , We try to make sure we are not getting a lot back, it just means our money is not available to work for us
Thanks for the blogs, I'll check some more out! I always appreciate the reccomendations.
Sigh. This is the kind of frothing at the mouth attack on food that turns people off to good nutritional information. Many of these restaurants also offer better alternatives. It isn't necessary to scream about "worst" when it may be more helpful to offer helpful suggestions and recognize that occasionally people want to splurge.
As for portion size, when my wife and I eat at Chevy's we split an order of fajitas. We also visit some of the other restaurants listed here, but I don't think either of us has ever had any of the "worst" items listed. When we order hamburgers, we tend to get something relatively plain, without cheese or sauce.
This article assumes people gravitate to the highest calorie and fat items on the menu. I don't believe this is necessarily the case, and even if it was, the tone of the article will not likely win many people over to healthier options.