Loved your post and I agree, it seems like there are more ways than ever to make your miles add up. I don't like credit cards and I don't have one. But, with my bank, I can get the same frequent flyer miles with all my card purchases on a debit card. It's the best of both worlds for me...the miles program like a credit card but still no bill at the end of the month and no overspending. I use it for my rent, my bills, whatever I would have to pay anyway. The miles are adding up and I got a bonus 20,000 miles just for opening the checking account and getting the card!
Xin--yes, you're right about financial risks and vacancies. I had in mind a future post about our big landlording disaster, as sort of an object lesson in how bad things can get. There is definitely more to say on that subject.
Brett--I have to say I disagree with a give-em-an-inch-they'll-take-a-mile style of landlording in general. I found that if you picked your tenants well, you can be "nice" as long as they are "nice." However, you didn't get a chance to screen your tenants, so you had to deal with what you ended up with.
Kelja--you can't time the real estate market. No one knows whether prices will go up or down, especially in the short term. That's why I specified real estate as a long term investment. There are a lot of bargain-priced houses out there right now, and a lot of people who have been foreclosed, but still need housing. If I had more cash to play with, and if my husband were more interested, I would be looking at real estate investment right now. And a lot of people are stuck with property they would rather not sell at a loss, but want or need to move. Renting is a realistic option for them, and I have some positive things to say about it in the future.
Thanks for writing about this topic, Catherine. I know enough (so far) about rental property that I knew I didn't want to be a landlord. Nevertheless, it might be something I will do later as I have a family member who has a couple of high-end properties (one is a vacation home) that she rents and so I have been thinking about it more. I look forward to Part 2!
For a year lease, I rather pay a $10-15 a month pet fee than pay a $300 non refundable deposit (seems contradictory to call it that, it's really a fee).
That should not be puzzling. Demand isn't the only factor affecting price. Supply does too. Otherwise, how would you explain that air and water are both even cheaper than gasoline when you need the former to survive? Note however that gasoline is likely to become dearer than some of the other liquids on your list in the future. We've already gone past peak oil production and thus, supply will tighten, causing prices to rise to clear the market.
This is a good comparison...though, who is going to use a gallon of Krazy Glue or even milk as fast as they use a gallon of gas?
Gas is $3.50 a gallon, I use about 10 gallons per week costing roughly $35 per week. I buy milk by the 1/2 gallon for roughly $3 and it lasts 2 weeks--that's pretty cheap compared to the gas. Then, if you look at the Krazy Glue...it'd take me two lifetimes to use that much glue--making that $2300 number look pretty small.
Actually, my key point is that since the demand for gasoline is much greater than all these other liquids, gasoline should be more expensive. Gasoline has to be refined from crude oil and transported to all over the world as well. It is not that different from any other consumable product.
I think the packaging and branding is a good reason why a lot of sodas are more expensive. We don't exactly sell gasoline in cans and colorful glass and plastic bottles. There is a little bit of branding involved, though. For example, Shell gas is always more expensive than a Chevron near where I live.
Gas is also cheap in America because we don't have as many taxes as European countries on it. This makes people drive more.
I'm not surprised all the packaged foods are the most costly. Brand marketing, promotion, packaging, and general marketing muckity muck all cost big bucks. When did we ever need product packaging tell us what an apple is? Personally, I don't buy any of the packaged crap.
Sorry, but the comparison is not helpful. You mentioned the key reason. Because of manufacturing and transportation costs, an increase in the price of gasoline will increase the price of every other liquid mentioned on your list. A price increase of any other liquid on your list will not increase the price of gasoline.
another alternative - if the circuit breakers are easily accessible (ie. in your apt or condo), clearly label them and turn them on/off as your using whatever you're using (or not using)
As someone who "inherited" tenants, my advice is to NEVER bend on due dates, rules, or other things to be the "nice guy." I had tenants that ran all over the landlord previously, and I granted a firmly stated "One Time ONLY" courtesy, and that inch I gave turned into them trying to take a mile. In the end, they were unable to pay their rent because someone did not follow the advice above, and they were evicted. Come to find out, they borrowed money to pay part of their rent in the last couple months from the previous landlord, and they ended up stiffing him for a couple grand.
It doesn't pay to be nice, when it comes to your money, reputation, and credit rating.
Buying any real estate as the bubble bursts is a dangerous; akin to catching falling knives out of the drawer. Prices are dropping fast but seem as though they have far to go.
Pay attention to the GRM (Gross Rent Multiplier). If you don't know what that is or how it's calculated, you have no business even considering buying real estate.
This approach makes sense, but I suppose the onus is on us (ahem) to imagine what the company needs? Any company wants to save money, to increase efficiency, to grow. But some very specific needs, we can either find someone inside (networking) and pick their brain or try to imagine ourselves on the inside... Then it becomes a little more of a shot in the dark. Well, maybe the dusk, if we're good with our heads.
But perhaps just the step of presenting oneself as a problem-solver rather than as a hopeful will work wonders. Anyway, good post-- lots to think about.
DST YEAH! I live on the far east side of a time zone and look forward to DST each year. I hate having dark skys just after 4 pm in winter. When can we go to this all year ahs been my motto.
Here is a better idea. Let's split the time zones. Have eight instead of 4 across the contental US. I see no reason why Michigan and NYC should be in the same time zones much less Wisconsin and parts of Montana. That brings up another thing we can fix. Time Zones should be on state lines! Why should Indiana, Kentucy, Montana, etc. be in two time zones? And then We would not have to worry about Hawaii, Arizona and the others taht still do not observe DST.
Having worked in the financial planning industry, I occasionally had clients that needed help digging themselves out from under a pile of debt. And if they needed credit counseling, I needed to be able to determine if they were candidates and know where to send them.
I guess this is just part I and you didn't discuss the financial risks yet. When your rental property isn't occupied for a couple months out of the year you could lose money. Here in the Bay Area the cap rate is only 4% so it is easier to just buy a treasury bond than to deal with a rental property.
A lot of people advocate becoming a landlord, both in general, and to me in particular. (I can't count the number of people who have suggested that I buy a duplex and rent out half of it.) But I realized early--before making that terrible mistake--that I do not have the right nature to be a landlord, pretty much for just the reasons that you spell out here.
I'm with you on pets--accepting them expands your pool of tenants, and having pets (at least, healthy, happy ones) may well be an indicator of good character. Besides that, around here places treat them as profit centers. My apartment charges an extra "pet depost," against damage caused by the pet, part of which is a non-refundable cleaning fee for when you move out. It seemed fair to me. The last time we looked to move, though, lots of places charged a "pet rent," adding an extra $10 or $15 a month for people with pets. I'd hate to think of paying that year after year--unless I was a landlord.
This post had some great info! I really agree with the "use credit cards" for everything point. Of course, this only works if you view the money as part of you budget. I deduct the money from my checking account register in my personal finance software, and then when I pay off the credit card balance every month, it all works out. It keeps me honest, living within my means, and helps me avoid paying any interest. And I get all the rewards!
1) Points.com is a very exploitative service. The value you get for most exchanges is so poor that it is really not worth pursuing.
2) A better option is to use Starwood's Preferred Guest program, which allows transfers to virtually all major airlines with a 1/1 transfer ratio (United is an exception). The program also gives you a 20-25% bonus upon transfer.
3) The Starwood PG program is also good for infrequent travelers, because points do not expire and you can use as few as 2,000 points for hotel stays in category 1 or 2 Starwood properties. Of course, the "good" SW properties require 7,000-10,000 points, but they can still be a great deal.
Are always so difficult to pin down appropriateness. Thank you so much for addressing this tough and touchy topic! We moved a few hours away from our homtown several years ago for many reasons, and one among them was the constant gift giving madness. I am not kidding.
Every two weeks or so, we had to go to a gift-giving dinner at my parent's or my mother-in-law's house, and you were amost excommunicated if you missed one event. We finally were able to convince most of the family that lumping a few birthdays or other gift-giving occasions into a single event would really be easier on the budget and time constraints. Call me scrooge, but with ten grandkids under the age of eight, Christmas was a nightmare of loud, plastic useless toys, with millions of tiny pieces and packaging.
Generally, the car would be stuffed to the gills on the way home, and I would select the three best gifts for each of our children from the ransom as they slept, and bring them into the house for after- Christmas Day play. The rest would either be packed (while they were asleep or already being entertained with their new toys the next day) in boxes and stored until a boring day in Febrary when I needed to make a zillion phone calls, or immediately packed into the Goodwill bag. SOMEone's kid would appreciate it, I reasoned. Very rarely, they would ask about something we had stored, and we'd "find" it for them.
When we moved, we sent a list of requested educational magazine subscriptions, and have since tended to only visit during nongift holidays (New Year's or St. Patrick's for instance), since it is impossible for most of our relatives to stop shopping, no matter what their financial situation is.
It is sad to say that their gift-giving tendencies helped drive us away, but we constantly told them it was only their PRESENCE, not their presents that we wished for, and we had a teeny house with almost no storage space. We really could not afford these events, either. Some people just don't get it.
We left after the Christmas that my sister-in-law insisted we all pitch in for a leaf blower for my Father-in-law. Not only did the gift go against our principles (how about a nice rake instead and we all come and help?) but she made us feel that if we refused, we were utterly cheap and not team players. Ugh.
These days, we also either give magazine subscriptions (after clearing it with the recipient) or give locally produced food baskets, wine or chocolate. Always appreciated, simple and surprisingly affordable and classy.
I definitely agree about houses. I'm a real estate agent, and I can attest to the fact that almost everyone wants a new one, even if they're massively stretching their budget to be able to do it. You ususally have a much better negotiating position with an existing home. Even in the current climate, in my area (East Tennessee), most builders do not negotiate their asking price.
Loved your post and I agree, it seems like there are more ways than ever to make your miles add up. I don't like credit cards and I don't have one. But, with my bank, I can get the same frequent flyer miles with all my card purchases on a debit card. It's the best of both worlds for me...the miles program like a credit card but still no bill at the end of the month and no overspending. I use it for my rent, my bills, whatever I would have to pay anyway. The miles are adding up and I got a bonus 20,000 miles just for opening the checking account and getting the card!
Xin--yes, you're right about financial risks and vacancies. I had in mind a future post about our big landlording disaster, as sort of an object lesson in how bad things can get. There is definitely more to say on that subject.
Brett--I have to say I disagree with a give-em-an-inch-they'll-take-a-mile style of landlording in general. I found that if you picked your tenants well, you can be "nice" as long as they are "nice." However, you didn't get a chance to screen your tenants, so you had to deal with what you ended up with.
Kelja--you can't time the real estate market. No one knows whether prices will go up or down, especially in the short term. That's why I specified real estate as a long term investment. There are a lot of bargain-priced houses out there right now, and a lot of people who have been foreclosed, but still need housing. If I had more cash to play with, and if my husband were more interested, I would be looking at real estate investment right now. And a lot of people are stuck with property they would rather not sell at a loss, but want or need to move. Renting is a realistic option for them, and I have some positive things to say about it in the future.
Catherine Shaffer
Wise Bread Contributor
Thanks for writing about this topic, Catherine. I know enough (so far) about rental property that I knew I didn't want to be a landlord. Nevertheless, it might be something I will do later as I have a family member who has a couple of high-end properties (one is a vacation home) that she rents and so I have been thinking about it more. I look forward to Part 2!
For a year lease, I rather pay a $10-15 a month pet fee than pay a $300 non refundable deposit (seems contradictory to call it that, it's really a fee).
That should not be puzzling. Demand isn't the only factor affecting price. Supply does too. Otherwise, how would you explain that air and water are both even cheaper than gasoline when you need the former to survive? Note however that gasoline is likely to become dearer than some of the other liquids on your list in the future. We've already gone past peak oil production and thus, supply will tighten, causing prices to rise to clear the market.
This is a good comparison...though, who is going to use a gallon of Krazy Glue or even milk as fast as they use a gallon of gas?
Gas is $3.50 a gallon, I use about 10 gallons per week costing roughly $35 per week. I buy milk by the 1/2 gallon for roughly $3 and it lasts 2 weeks--that's pretty cheap compared to the gas. Then, if you look at the Krazy Glue...it'd take me two lifetimes to use that much glue--making that $2300 number look pretty small.
Summer
I wish clocks had built in batteries. This would be great.
Actually, my key point is that since the demand for gasoline is much greater than all these other liquids, gasoline should be more expensive. Gasoline has to be refined from crude oil and transported to all over the world as well. It is not that different from any other consumable product.
I think the packaging and branding is a good reason why a lot of sodas are more expensive. We don't exactly sell gasoline in cans and colorful glass and plastic bottles. There is a little bit of branding involved, though. For example, Shell gas is always more expensive than a Chevron near where I live.
Gas is also cheap in America because we don't have as many taxes as European countries on it. This makes people drive more.
...if I could get a car that could make a gallon of gas stretch as far with as much efficacy as I can stretch a gallon Dawn Dish Detergent.
And what Guest @ #1 said.
I'm not surprised all the packaged foods are the most costly. Brand marketing, promotion, packaging, and general marketing muckity muck all cost big bucks. When did we ever need product packaging tell us what an apple is? Personally, I don't buy any of the packaged crap.
Sorry, but the comparison is not helpful. You mentioned the key reason. Because of manufacturing and transportation costs, an increase in the price of gasoline will increase the price of every other liquid mentioned on your list. A price increase of any other liquid on your list will not increase the price of gasoline.
Apples and oranges.
another alternative - if the circuit breakers are easily accessible (ie. in your apt or condo), clearly label them and turn them on/off as your using whatever you're using (or not using)
As someone who "inherited" tenants, my advice is to NEVER bend on due dates, rules, or other things to be the "nice guy." I had tenants that ran all over the landlord previously, and I granted a firmly stated "One Time ONLY" courtesy, and that inch I gave turned into them trying to take a mile. In the end, they were unable to pay their rent because someone did not follow the advice above, and they were evicted. Come to find out, they borrowed money to pay part of their rent in the last couple months from the previous landlord, and they ended up stiffing him for a couple grand.
It doesn't pay to be nice, when it comes to your money, reputation, and credit rating.
Buying any real estate as the bubble bursts is a dangerous; akin to catching falling knives out of the drawer. Prices are dropping fast but seem as though they have far to go.
Pay attention to the GRM (Gross Rent Multiplier). If you don't know what that is or how it's calculated, you have no business even considering buying real estate.
2 words: ramen noodles!
This approach makes sense, but I suppose the onus is on us (ahem) to imagine what the company needs? Any company wants to save money, to increase efficiency, to grow. But some very specific needs, we can either find someone inside (networking) and pick their brain or try to imagine ourselves on the inside... Then it becomes a little more of a shot in the dark. Well, maybe the dusk, if we're good with our heads.
But perhaps just the step of presenting oneself as a problem-solver rather than as a hopeful will work wonders. Anyway, good post-- lots to think about.
DST YEAH! I live on the far east side of a time zone and look forward to DST each year. I hate having dark skys just after 4 pm in winter. When can we go to this all year ahs been my motto.
Here is a better idea. Let's split the time zones. Have eight instead of 4 across the contental US. I see no reason why Michigan and NYC should be in the same time zones much less Wisconsin and parts of Montana. That brings up another thing we can fix. Time Zones should be on state lines! Why should Indiana, Kentucy, Montana, etc. be in two time zones? And then We would not have to worry about Hawaii, Arizona and the others taht still do not observe DST.
Having worked in the financial planning industry, I occasionally had clients that needed help digging themselves out from under a pile of debt. And if they needed credit counseling, I needed to be able to determine if they were candidates and know where to send them.
I guess this is just part I and you didn't discuss the financial risks yet. When your rental property isn't occupied for a couple months out of the year you could lose money. Here in the Bay Area the cap rate is only 4% so it is easier to just buy a treasury bond than to deal with a rental property.
A lot of people advocate becoming a landlord, both in general, and to me in particular. (I can't count the number of people who have suggested that I buy a duplex and rent out half of it.) But I realized early--before making that terrible mistake--that I do not have the right nature to be a landlord, pretty much for just the reasons that you spell out here.
I'm with you on pets--accepting them expands your pool of tenants, and having pets (at least, healthy, happy ones) may well be an indicator of good character. Besides that, around here places treat them as profit centers. My apartment charges an extra "pet depost," against damage caused by the pet, part of which is a non-refundable cleaning fee for when you move out. It seemed fair to me. The last time we looked to move, though, lots of places charged a "pet rent," adding an extra $10 or $15 a month for people with pets. I'd hate to think of paying that year after year--unless I was a landlord.
This post had some great info! I really agree with the "use credit cards" for everything point. Of course, this only works if you view the money as part of you budget. I deduct the money from my checking account register in my personal finance software, and then when I pay off the credit card balance every month, it all works out. It keeps me honest, living within my means, and helps me avoid paying any interest. And I get all the rewards!
1) Points.com is a very exploitative service. The value you get for most exchanges is so poor that it is really not worth pursuing.
2) A better option is to use Starwood's Preferred Guest program, which allows transfers to virtually all major airlines with a 1/1 transfer ratio (United is an exception). The program also gives you a 20-25% bonus upon transfer.
3) The Starwood PG program is also good for infrequent travelers, because points do not expire and you can use as few as 2,000 points for hotel stays in category 1 or 2 Starwood properties. Of course, the "good" SW properties require 7,000-10,000 points, but they can still be a great deal.
Thanks for the post! It has some good info.
Are always so difficult to pin down appropriateness. Thank you so much for addressing this tough and touchy topic! We moved a few hours away from our homtown several years ago for many reasons, and one among them was the constant gift giving madness. I am not kidding.
Every two weeks or so, we had to go to a gift-giving dinner at my parent's or my mother-in-law's house, and you were amost excommunicated if you missed one event. We finally were able to convince most of the family that lumping a few birthdays or other gift-giving occasions into a single event would really be easier on the budget and time constraints. Call me scrooge, but with ten grandkids under the age of eight, Christmas was a nightmare of loud, plastic useless toys, with millions of tiny pieces and packaging.
Generally, the car would be stuffed to the gills on the way home, and I would select the three best gifts for each of our children from the ransom as they slept, and bring them into the house for after- Christmas Day play. The rest would either be packed (while they were asleep or already being entertained with their new toys the next day) in boxes and stored until a boring day in Febrary when I needed to make a zillion phone calls, or immediately packed into the Goodwill bag. SOMEone's kid would appreciate it, I reasoned. Very rarely, they would ask about something we had stored, and we'd "find" it for them.
When we moved, we sent a list of requested educational magazine subscriptions, and have since tended to only visit during nongift holidays (New Year's or St. Patrick's for instance), since it is impossible for most of our relatives to stop shopping, no matter what their financial situation is.
It is sad to say that their gift-giving tendencies helped drive us away, but we constantly told them it was only their PRESENCE, not their presents that we wished for, and we had a teeny house with almost no storage space. We really could not afford these events, either. Some people just don't get it.
We left after the Christmas that my sister-in-law insisted we all pitch in for a leaf blower for my Father-in-law. Not only did the gift go against our principles (how about a nice rake instead and we all come and help?) but she made us feel that if we refused, we were utterly cheap and not team players. Ugh.
These days, we also either give magazine subscriptions (after clearing it with the recipient) or give locally produced food baskets, wine or chocolate. Always appreciated, simple and surprisingly affordable and classy.
That's what I was looking for. :)
I definitely agree about houses. I'm a real estate agent, and I can attest to the fact that almost everyone wants a new one, even if they're massively stretching their budget to be able to do it. You ususally have a much better negotiating position with an existing home. Even in the current climate, in my area (East Tennessee), most builders do not negotiate their asking price.
I just wrote a post about why you should learn to love the split foyer and one of the reasons is because you can usually get a great deal on them.