I have fallen into the "tomorrow" trap so many times, always with similar consequences. I have swayed from one end of the spending spectrum to the other, but always telling myself either I'll pay that off later, or I'll start my retirement savings when ..., or I'll have "extra" money someday.
This is a well crafted post that cuts to the heart of the matter!
What if, instead of distilling the mixture in a still you worked on the opposite side of the spectrum with the cider jacking principle in mind? (freezing and picking out water in the form of ice) Instead of heat, could you use the cold to partially purify the mixture of water and not have to worry about someone finding a still in the odd event your house was searched?
Just a thought... Has anyone tried something of the sort?
I could imagine it wouldn't taste the same but, then again, I could maybe try the charcoal trick on my result... Just thinking out loud here.
This was very timely; I just finished reading a book called 'Middle Class Millionaire'. The authors described unique differences between 'regular' (i.e. non-millionaire) middle-classers and those who have a net worth (including home equity) between $1 and $10 million. Most of it was very positive and and thought-provoking. However, there were some variables that worried me.
For example, middle-class millionaires work on average 70 hours a week! Compared to 41 hours per week for non-millionairs! This begs the question: when do these people see their families? When do they help make dinner with their kids, read to their kids, visit their parents and siblings, hang out with non-business friends?
I do want financial independence someday, and I AM working toward that every day in small ways, by saving and investing. But I also want a LIFE. I want to say that I knew my family and they knew me. That's more important than paying off my mortgage or being a 'middle-class millionaire'.
Honestly if one more person says bus to me I think I will throw up. OK - for those of us who live in areas to rural to have bus transportation this is my plan. I am checking the mileage to all our activities & work from our house. Some will be walkable, some will be bikeable. But how someone walks 6 blocks to scouts with a stroller, a toddler & the craft project plus maybe cupcakes...I'm sorry...I like to drive my car. And when your town has everything big boxed out to the outer rim of the community (not my end of course) I don't really want to figure out the logistics of that weekly or daily grocery run. Should we talk about the weather? 9 months out the year we would be walking literally a mile up hill in the snow both ways. Now I don't want anyone to fill sorry for me because I did choose to live in South Dakota & should have seen this coming & moved somewhere incredibly expensive but more convenient before the market fell out of real estate. We own a very small family business, my husband works for the school district full time so we could have health insurance, we have no hummer or suv and both carry education/job experence which seems to be of no value unless we relocate to some where they are hiring (maybe India?). So I combine errands(which I have always done), try to get other parents to carpool to out of town activities (near to impossible because of work schedules etc) & generally feel rather depressed about how we (America) got to this place that feels like we are the last ones hoping to get a lifeboat on the Titanic for our children. And yes - I still drive by people with BRAND NEW SUV'S everyday who I know don't have kids, do scouts, transport soccer players or need to go somewhere really important like to the hospital in the middle of a blizzard. But I bet they got a great deal on that sucker...I'm thinking of buying a few chickens and expanding the garden this year. Hope we are zoned for chickens, heck maybe I can get a gov't subsidy!
Stephen brings up an important issue: it's not just about whether or not you can afford to and from work in a personal vehicle. Fuel prices affect everything. Have you taken a close look at your grocery bill lately? How about the prices on the menu at the local tacqueria? Ouch!
I've been thinking that our next step after moving might be to buy a share of the local CSA or, gasp, start a Jim Crockett victory garden like the one my parents had when I was growing up in the 70's.
Great post. This is what I used to teach my clients as a Professional Organizer, especially with their things - that "I might need it someday" on its own is not a sufficient reason to keep something.
I feel so strongly about removing someday from my vocabulary that I moved to Europe (France and now Spain) because I always said that "someday" I would live in Europe and write.
I've never been happier or felt more fulfilled in my life.
Yep, #2 is my favorite, but I've learned not to lend people stuff just because I would like them to borrow it. If it turns out they are not interested, they forget all about it and you never get it back.
But I also like #2 because I expand it to include all kinds of other things that are easy for you to do but fulfill a big need you are noticing in someone else. Some things are obvious, like a person with their hands full is approaching a closed door. Letting people vent is a common one. I like finding things others have misplaced. Gardeners like to share produce, seeds, cuttings, etc. And letting people in, in traffic, can make their whole day because it's so rare. One thing about this method is that it requires paying attention (so you notice what other people are wanting), which I'm not that great at.
At work we used to have "treasure bucks" we would give to each other when we went above and beyond the call, and then we could trade these for things like pencils, cups, umbrellas, and binders. I didn't care about the shopping, but I really liked giving those things away. So now I look online for certificate templates and give people certificates for things like Leaping Tall Problems in a Single Bound. Or of course you could write a traditional thank-you note.
I've been taking ballroom dance classes for a while, and that's a situation where you can really feel like an idiot. I find that just smiling when people goof up, pointing out the parts they didn't goof up, learning when to back-lead (when they are totally lost) and when to follow (when they basically get it), ending the move in an exaggeratedly dramatic or elegant position (as if we have been this awesome the whole time) and other similar skills can make a big difference. I guess the general tip is don't take things that aren't serious too seriously, and try to help others do the same.
And I've finally realized that my family really likes to get birthday cards and holiday cards, so I do that now. (This is relatively inexpensive if you get two cards for $1 at a dollar store or if you make your own cards--using affordable supplies--to fit into standard envelopes.)
Complimenting people on things you like is fun, too, plus you often get to learn more about the thing you like.
Well I'll probably continue doing what I have been over the past 3 years. Take public transit, ride my bike and walk. If the area I'm going is too far away and isn't served by public transit, then I'll drive.
Dependency on oil has become painfully acute in recent months here in the Northwest, causing the price of all food items to explode. The same stuff today that used to cost $19 to purchase is now $26. An alternative isn't just needed on the personal scale, but on an industrial wide scale. With diesel at over $4 a gallon, and an industry that supplies all our goods in probably the least efficient way possible, I'd like to see the jump to some other fuel or engine to transport the goods we all depend on.
I was just about to post a similar comment about the CD's.
It is illegal to have music copied onto your computer/music device if you no longer own the CD. If you buy it off of iTunes, that's different.
We are selling a bunch of CD's we don't listen to anymore on eBay. If they don't sell there, we take them to a used CD store. If we can't get anything for them there, we drop them off at Goodwill. But we keep the ones we listen to.
Otherwise, great post! You're definitely inspiring me to cut out some of my books that I'm not necessarily going to re-read anytime soon. I have way too many paperbacks.
1.Take it, and do nothing, which is what I have been doing, and several other people.
2.Change how you live your life. Move closer to work, walk, public transportation, etc.
3.I have had this idea for a while, while on a grand scale boycotting isn't rational. NO WAY can we live without gas. So we can't boycott gas altogether. However, what if everyone, all of you, me, and everyone we told were to stop using particular types of gas. Stop using say Mobil, or Hess, or Sunoco. Pick one, and NO ONE, NO ONE, uses that brand of gas. It would be tough for sure. I particularly prefer Mobil, but for the sake of this I'd give it up and go some place else. It would be a long hard road, but I think that if we could get a small group of committed individuals, and spread the word to all our friends and family, we could make a difference, and force Oil Companies to pay attention.
Boycotts can work in a different way. We do pick and choose our choices. For example, I boycott Starbucks when I'm in San Francisco. With all the wonderful coffee places there, it's just not necessary to patronize a giant faceless corporation. But when I'm in the sticks and the nearest coffee tastes like old grounds and chalk, I do go to Starbucks.
I grew up in a boycott family that followed the UFW boycotts. I boycott Wal-Mart (or Evil as we call it here). In the 80s I boycotted all the companies supporting apartheid by investing in South Africa. I do the same for Myanmar now.
It's a clean conscious thing. Part of walking lightly on the earth. Was I part of the problem today or part of the solution? That's the way I look at it. It's not about how effective it is monetarily. It's about saving your own soul.
The collapse of the dollar and resulting super-high inflation isn't something to take lightly. Expect all those necessary things: food, clothing, energy, to take big price hikes. This hurts low earners the most. Tax revenues will drop precipitously and perhaps some government programs will be cut.
The enormity of the financial crisis is understood by very few people on main street. The entire financial system is teetering on the edge right this moment. The Fed themselves came out just a couple of weeks ago and said the entire financial system was in danger of collapse within 24 hours! This was the reason given as they bailed out Bear Stearns. The Fed wasn't lying.
Think Bear Stearns was the only problem, the only major bank in trouble? Think again. At this moment, there are thousands of fingers in the dike holding back the deluge. And I'm hoping for the best but prepared for the worse.
Most of the money men and women on Wall Street are very, very frightened. Make sure you're protected.
What can we do? I've already changed my driving style - I'm coasting a little more, not accelerating so fast. I live in a large city and its flat - its hard to conserve gas that way. I'll probably do a little less "entertainment driving". I play a lot of tennis, but I doubt I'll be willing to drive out to the suburbs 3 times a week to play - maybe just once a week. I'm also a baseball addict and sometimes drive 100 miles to see a minor league game - won't do that as much, I'll just stick with my home team. Other than that where else can I cut back - gotta do things neccessary for life - like work, gym, etc.
I certainly won't sell my V6 that takes premium gas. I own the car, why sell it and buy something else or make payments on a new car? That would cost more money in my situation. I just don't have a long enough communte to justify something that gets 40 mpg when I already get 20 in the city and 30 on the hwy. I'm trapped - I'll just have to pay the gas increase and cut back on other consumer spending.
There isn't much you can do about high fuel prices. It is going to get pretty ugly this summer. Just remember that the cost of oil is based on the value of the dollar, so as our country keeps printing more money the amound of oil it buys is less. Utill the people in washington learn to have a balanced budget we are all going to be hurting from high oil prices.
Thanks everyone for your kind comments. I didn't realize that waving would be so popular. Amy, listening is a great way to be nice -- and asking questions that you then actually listen to the response (Nora mentioned this in a recent post on attending parties). Remembering people's names (which is easy for me if I see the name written) is also nice.
Another thing that is similar, cheaper, and more practical from a fighting perspective is wrestling. It provides a better physical benefit, its cheaper (free) in terms of cost, and if he sticks with it, can get him into college for free.
I do the first one ALL THE TIME. Especially if someone in front of me was rude to the cashier or pushy, I'll make sure when it's my turn that they understand I will NOT be the same way and they can use my turn to take a deep breath. Maybe this is from a few cashier jobs...
There's a guy in my area who leans on his bike, on the sidewalk close to a medium-sized traffic intersection, and just waves hello to drivers who pass by. He's always got a smile on his face. And his grin gets REALLY wide when people actually wave back.
I saw someone try to give him money one time, thinking he was homeless (I don't know if he is or not, but he doesn't look like it) and he refused. Said he just wanted to wish that person a good day by waving. He brightens my day every time I drive by.
i love this post, and it truly could not have come at a better time. in the essence of #3, i want to mention to you a project i've been working on.
i'm a senior at the otis college of art and design, and for the senior thesis, myself and 2 other students wanted to do something good for the world. we came up with http://www.thegoodsideof.us, a place to share and talk about little good deeds, to inspire people, and to make the world a little bit better.
we just got it online a few days ago, and there are some kinks to work out. but considering the topic, i thought everyone here might be interested in checking it out.
I juts wanted to say that this is such a great article. I think people need some reminding sometimes about these very easy to achieve ways of being nice.
My favourite has to be number 5. So simple but so effective.
Mortage interest is tax deductible, you want to take advantage of this as well. I say stretch the loan out for as long as you can as long as you have a separate investment earning a higher interest rate which is definitely doable. You funnel money into the investment and let the investment pay for your loan. Maximize tax advantages with mortgage interest. Also pay with a credit card and you can take advantage of 0%apr deals or at the very least earn an extra 20-30 days where your money is earning interest elsewhere, and then you can take advantage of rewards points on your credit card as well as they add up. You can make it even more fun if you have multiple cards with 0% apr deals and just keep on transferring the funds over between cards all the while your money is earning interest somewhere like an online high % savings account like ingdirect.com, hsbc..etc. Being rich is all about working the existing system, it doesn't take brains, it just takes a little creative engineering with your finances and using debt to your advantage. It's also about being able to keep the habit that even though you're saving 400 bucks by stretching it ut over 30 years that you're going to invest those savings as well. This same principle could be applied to student loans as well. If you have a debt at 8% and you qualif for a loan at 5% doesn't it make sense to take out the loan at 5% and use that to pay off a portio of the 8% loan? If the stock market earns roughly 8% a year and you have debt at interest less than 8%, where should your money go first?? There are risks involved so it's important to have some liquid cash available and you can always sell stocks to liquidate funds. The possibilities are endless and even better if you're rotating 3 credit cards, all the while earning rewards points that you can use towards flights etc. You can say it's risky and get nowhere, if yu take the plunge, you 1 earn money, 2 draw even, 3 lose money, 2/3 cases you're in good shape, if not better, worst case scenario you lost someone elses money and more than likely you still have the cash anyway to be buying whatever it is in the first place.
Key points:
Know your means, don't buy a house greater than 2.5 times your income.....if not rent and invest the savings until you can afford the house you want.
Take advantage of tax benefits. Use savings to maximize retirement accounts, hsa...and other advantages the goverment may be giving you in your situation that betters you off in the long run anyway.
Use credit to your advantage, shift accoutns wisely...(put money in an interest accruing investment that's higher in the positive than your debt's interest in the negative, and use less expensive debt to fund more expensive debt. Rotate credit cards making sure you meet minimum payments...thus creating money out of thin air even if you have the money in the first place.
I say hello and thank you everytime I get on and off the bus, I think I must be in a minority for that because drivers frequently recognize me days later.
The other thing is if you are in a store or bank and the person serving you is obviously new, no matter how big of a rush you are in, just keep smiling. Everyone has had a first day somewhere- they suck, don't add to their stress.
I loved this article Nora. Sometimes people don't know which goals to tackle first or just choose to ignore it completely.
I have fallen into the "tomorrow" trap so many times, always with similar consequences. I have swayed from one end of the spending spectrum to the other, but always telling myself either I'll pay that off later, or I'll start my retirement savings when ..., or I'll have "extra" money someday.
This is a well crafted post that cuts to the heart of the matter!
What if, instead of distilling the mixture in a still you worked on the opposite side of the spectrum with the cider jacking principle in mind? (freezing and picking out water in the form of ice) Instead of heat, could you use the cold to partially purify the mixture of water and not have to worry about someone finding a still in the odd event your house was searched?
Just a thought... Has anyone tried something of the sort?
I could imagine it wouldn't taste the same but, then again, I could maybe try the charcoal trick on my result... Just thinking out loud here.
This was very timely; I just finished reading a book called 'Middle Class Millionaire'. The authors described unique differences between 'regular' (i.e. non-millionaire) middle-classers and those who have a net worth (including home equity) between $1 and $10 million. Most of it was very positive and and thought-provoking. However, there were some variables that worried me.
For example, middle-class millionaires work on average 70 hours a week! Compared to 41 hours per week for non-millionairs! This begs the question: when do these people see their families? When do they help make dinner with their kids, read to their kids, visit their parents and siblings, hang out with non-business friends?
I do want financial independence someday, and I AM working toward that every day in small ways, by saving and investing. But I also want a LIFE. I want to say that I knew my family and they knew me. That's more important than paying off my mortgage or being a 'middle-class millionaire'.
Thanks for a great post!
Honestly if one more person says bus to me I think I will throw up. OK - for those of us who live in areas to rural to have bus transportation this is my plan. I am checking the mileage to all our activities & work from our house. Some will be walkable, some will be bikeable. But how someone walks 6 blocks to scouts with a stroller, a toddler & the craft project plus maybe cupcakes...I'm sorry...I like to drive my car. And when your town has everything big boxed out to the outer rim of the community (not my end of course) I don't really want to figure out the logistics of that weekly or daily grocery run. Should we talk about the weather? 9 months out the year we would be walking literally a mile up hill in the snow both ways. Now I don't want anyone to fill sorry for me because I did choose to live in South Dakota & should have seen this coming & moved somewhere incredibly expensive but more convenient before the market fell out of real estate. We own a very small family business, my husband works for the school district full time so we could have health insurance, we have no hummer or suv and both carry education/job experence which seems to be of no value unless we relocate to some where they are hiring (maybe India?). So I combine errands(which I have always done), try to get other parents to carpool to out of town activities (near to impossible because of work schedules etc) & generally feel rather depressed about how we (America) got to this place that feels like we are the last ones hoping to get a lifeboat on the Titanic for our children. And yes - I still drive by people with BRAND NEW SUV'S everyday who I know don't have kids, do scouts, transport soccer players or need to go somewhere really important like to the hospital in the middle of a blizzard. But I bet they got a great deal on that sucker...I'm thinking of buying a few chickens and expanding the garden this year. Hope we are zoned for chickens, heck maybe I can get a gov't subsidy!
Stephen brings up an important issue: it's not just about whether or not you can afford to and from work in a personal vehicle. Fuel prices affect everything. Have you taken a close look at your grocery bill lately? How about the prices on the menu at the local tacqueria? Ouch!
I've been thinking that our next step after moving might be to buy a share of the local CSA or, gasp, start a Jim Crockett victory garden like the one my parents had when I was growing up in the 70's.
Great post. This is what I used to teach my clients as a Professional Organizer, especially with their things - that "I might need it someday" on its own is not a sufficient reason to keep something.
I feel so strongly about removing someday from my vocabulary that I moved to Europe (France and now Spain) because I always said that "someday" I would live in Europe and write.
I've never been happier or felt more fulfilled in my life.
Cheers,
Alex
Yep, #2 is my favorite, but I've learned not to lend people stuff just because I would like them to borrow it. If it turns out they are not interested, they forget all about it and you never get it back.
But I also like #2 because I expand it to include all kinds of other things that are easy for you to do but fulfill a big need you are noticing in someone else. Some things are obvious, like a person with their hands full is approaching a closed door. Letting people vent is a common one. I like finding things others have misplaced. Gardeners like to share produce, seeds, cuttings, etc. And letting people in, in traffic, can make their whole day because it's so rare. One thing about this method is that it requires paying attention (so you notice what other people are wanting), which I'm not that great at.
At work we used to have "treasure bucks" we would give to each other when we went above and beyond the call, and then we could trade these for things like pencils, cups, umbrellas, and binders. I didn't care about the shopping, but I really liked giving those things away. So now I look online for certificate templates and give people certificates for things like Leaping Tall Problems in a Single Bound. Or of course you could write a traditional thank-you note.
I've been taking ballroom dance classes for a while, and that's a situation where you can really feel like an idiot. I find that just smiling when people goof up, pointing out the parts they didn't goof up, learning when to back-lead (when they are totally lost) and when to follow (when they basically get it), ending the move in an exaggeratedly dramatic or elegant position (as if we have been this awesome the whole time) and other similar skills can make a big difference. I guess the general tip is don't take things that aren't serious too seriously, and try to help others do the same.
And I've finally realized that my family really likes to get birthday cards and holiday cards, so I do that now. (This is relatively inexpensive if you get two cards for $1 at a dollar store or if you make your own cards--using affordable supplies--to fit into standard envelopes.)
Complimenting people on things you like is fun, too, plus you often get to learn more about the thing you like.
Well I'll probably continue doing what I have been over the past 3 years. Take public transit, ride my bike and walk. If the area I'm going is too far away and isn't served by public transit, then I'll drive.
Dependency on oil has become painfully acute in recent months here in the Northwest, causing the price of all food items to explode. The same stuff today that used to cost $19 to purchase is now $26. An alternative isn't just needed on the personal scale, but on an industrial wide scale. With diesel at over $4 a gallon, and an industry that supplies all our goods in probably the least efficient way possible, I'd like to see the jump to some other fuel or engine to transport the goods we all depend on.
I was just about to post a similar comment about the CD's.
It is illegal to have music copied onto your computer/music device if you no longer own the CD. If you buy it off of iTunes, that's different.
We are selling a bunch of CD's we don't listen to anymore on eBay. If they don't sell there, we take them to a used CD store. If we can't get anything for them there, we drop them off at Goodwill. But we keep the ones we listen to.
Otherwise, great post! You're definitely inspiring me to cut out some of my books that I'm not necessarily going to re-read anytime soon. I have way too many paperbacks.
Also, another great site for swapping is www.paperbackswap.com
With this issue there are a few choices.
1.Take it, and do nothing, which is what I have been doing, and several other people.
2.Change how you live your life. Move closer to work, walk, public transportation, etc.
3.I have had this idea for a while, while on a grand scale boycotting isn't rational. NO WAY can we live without gas. So we can't boycott gas altogether. However, what if everyone, all of you, me, and everyone we told were to stop using particular types of gas. Stop using say Mobil, or Hess, or Sunoco. Pick one, and NO ONE, NO ONE, uses that brand of gas. It would be tough for sure. I particularly prefer Mobil, but for the sake of this I'd give it up and go some place else. It would be a long hard road, but I think that if we could get a small group of committed individuals, and spread the word to all our friends and family, we could make a difference, and force Oil Companies to pay attention.
Whose with me?
-Nate
For #2 better hope your friends follow #8 or it might be costing you money ;)
Boycotts can work in a different way. We do pick and choose our choices. For example, I boycott Starbucks when I'm in San Francisco. With all the wonderful coffee places there, it's just not necessary to patronize a giant faceless corporation. But when I'm in the sticks and the nearest coffee tastes like old grounds and chalk, I do go to Starbucks.
I grew up in a boycott family that followed the UFW boycotts. I boycott Wal-Mart (or Evil as we call it here). In the 80s I boycotted all the companies supporting apartheid by investing in South Africa. I do the same for Myanmar now.
It's a clean conscious thing. Part of walking lightly on the earth. Was I part of the problem today or part of the solution? That's the way I look at it. It's not about how effective it is monetarily. It's about saving your own soul.
Margaret Garcia-Couoh
The collapse of the dollar and resulting super-high inflation isn't something to take lightly. Expect all those necessary things: food, clothing, energy, to take big price hikes. This hurts low earners the most. Tax revenues will drop precipitously and perhaps some government programs will be cut.
The enormity of the financial crisis is understood by very few people on main street. The entire financial system is teetering on the edge right this moment. The Fed themselves came out just a couple of weeks ago and said the entire financial system was in danger of collapse within 24 hours! This was the reason given as they bailed out Bear Stearns. The Fed wasn't lying.
Think Bear Stearns was the only problem, the only major bank in trouble? Think again. At this moment, there are thousands of fingers in the dike holding back the deluge. And I'm hoping for the best but prepared for the worse.
Most of the money men and women on Wall Street are very, very frightened. Make sure you're protected.
What can we do? I've already changed my driving style - I'm coasting a little more, not accelerating so fast. I live in a large city and its flat - its hard to conserve gas that way. I'll probably do a little less "entertainment driving". I play a lot of tennis, but I doubt I'll be willing to drive out to the suburbs 3 times a week to play - maybe just once a week. I'm also a baseball addict and sometimes drive 100 miles to see a minor league game - won't do that as much, I'll just stick with my home team. Other than that where else can I cut back - gotta do things neccessary for life - like work, gym, etc.
I certainly won't sell my V6 that takes premium gas. I own the car, why sell it and buy something else or make payments on a new car? That would cost more money in my situation. I just don't have a long enough communte to justify something that gets 40 mpg when I already get 20 in the city and 30 on the hwy. I'm trapped - I'll just have to pay the gas increase and cut back on other consumer spending.
There isn't much you can do about high fuel prices. It is going to get pretty ugly this summer. Just remember that the cost of oil is based on the value of the dollar, so as our country keeps printing more money the amound of oil it buys is less. Utill the people in washington learn to have a balanced budget we are all going to be hurting from high oil prices.
Thanks everyone for your kind comments. I didn't realize that waving would be so popular. Amy, listening is a great way to be nice -- and asking questions that you then actually listen to the response (Nora mentioned this in a recent post on attending parties). Remembering people's names (which is easy for me if I see the name written) is also nice.
Another thing that is similar, cheaper, and more practical from a fighting perspective is wrestling. It provides a better physical benefit, its cheaper (free) in terms of cost, and if he sticks with it, can get him into college for free.
I do the first one ALL THE TIME. Especially if someone in front of me was rude to the cashier or pushy, I'll make sure when it's my turn that they understand I will NOT be the same way and they can use my turn to take a deep breath. Maybe this is from a few cashier jobs...
Another way to be nice is to just be there for someone and listen to what they have to say, even if you may not agree with them.
There's a guy in my area who leans on his bike, on the sidewalk close to a medium-sized traffic intersection, and just waves hello to drivers who pass by. He's always got a smile on his face. And his grin gets REALLY wide when people actually wave back.
I saw someone try to give him money one time, thinking he was homeless (I don't know if he is or not, but he doesn't look like it) and he refused. Said he just wanted to wish that person a good day by waving. He brightens my day every time I drive by.
i love this post, and it truly could not have come at a better time. in the essence of #3, i want to mention to you a project i've been working on.
i'm a senior at the otis college of art and design, and for the senior thesis, myself and 2 other students wanted to do something good for the world. we came up with http://www.thegoodsideof.us, a place to share and talk about little good deeds, to inspire people, and to make the world a little bit better.
we just got it online a few days ago, and there are some kinks to work out. but considering the topic, i thought everyone here might be interested in checking it out.
:-)
love, micah.
I juts wanted to say that this is such a great article. I think people need some reminding sometimes about these very easy to achieve ways of being nice.
My favourite has to be number 5. So simple but so effective.
Mortage interest is tax deductible, you want to take advantage of this as well. I say stretch the loan out for as long as you can as long as you have a separate investment earning a higher interest rate which is definitely doable. You funnel money into the investment and let the investment pay for your loan. Maximize tax advantages with mortgage interest. Also pay with a credit card and you can take advantage of 0%apr deals or at the very least earn an extra 20-30 days where your money is earning interest elsewhere, and then you can take advantage of rewards points on your credit card as well as they add up. You can make it even more fun if you have multiple cards with 0% apr deals and just keep on transferring the funds over between cards all the while your money is earning interest somewhere like an online high % savings account like ingdirect.com, hsbc..etc. Being rich is all about working the existing system, it doesn't take brains, it just takes a little creative engineering with your finances and using debt to your advantage. It's also about being able to keep the habit that even though you're saving 400 bucks by stretching it ut over 30 years that you're going to invest those savings as well. This same principle could be applied to student loans as well. If you have a debt at 8% and you qualif for a loan at 5% doesn't it make sense to take out the loan at 5% and use that to pay off a portio of the 8% loan? If the stock market earns roughly 8% a year and you have debt at interest less than 8%, where should your money go first?? There are risks involved so it's important to have some liquid cash available and you can always sell stocks to liquidate funds. The possibilities are endless and even better if you're rotating 3 credit cards, all the while earning rewards points that you can use towards flights etc. You can say it's risky and get nowhere, if yu take the plunge, you 1 earn money, 2 draw even, 3 lose money, 2/3 cases you're in good shape, if not better, worst case scenario you lost someone elses money and more than likely you still have the cash anyway to be buying whatever it is in the first place.
Key points:
Know your means, don't buy a house greater than 2.5 times your income.....if not rent and invest the savings until you can afford the house you want.
Take advantage of tax benefits. Use savings to maximize retirement accounts, hsa...and other advantages the goverment may be giving you in your situation that betters you off in the long run anyway.
Use credit to your advantage, shift accoutns wisely...(put money in an interest accruing investment that's higher in the positive than your debt's interest in the negative, and use less expensive debt to fund more expensive debt. Rotate credit cards making sure you meet minimum payments...thus creating money out of thin air even if you have the money in the first place.
I say hello and thank you everytime I get on and off the bus, I think I must be in a minority for that because drivers frequently recognize me days later.
The other thing is if you are in a store or bank and the person serving you is obviously new, no matter how big of a rush you are in, just keep smiling. Everyone has had a first day somewhere- they suck, don't add to their stress.