Great resource! I found an additional cheap costumes resource looking for a Christmas play costume for this year's pageant. This site - affordablehalloweencostumes.com - carries thousands of kids costumes all for under $40. Some of them were even less than $10!
We got a surfin' santa anamatronic one year. I'm sure they thought it would be great. Actually, I think they wanted it themselves, but could not justify the purchase except as a gift during the holidays.
It just was not our cup of tea. If we could have re-gifted it to the giver, we would have (see above), but we put it into a gift exchange at work and let karma find it a new home.
I used 3 years of tracking expenses/spending habits to find out how much I could spend per month on housing without making much change to the way I had been living. I also did not want to be in debt for 30 years or rely on future raises (there are no guarantees) to help pay it off earlier. I calculated what it would take to pay off in 10 years and this is what I could afford. If I do get any raises the benefit will be I can now pay off my mortgage in less than 10 years.
I could have borrowed $300K but only borrowed $185K.
My wife and I are each 29 years old and just purchased our first home in June 2009. We lived on the cheap (and took our time) through college and grad school and had school (for both of us) paid off by the time we graduated. Then we both got jobs, rented for two years and maintained our low living standards while stashing away all the excess money we could for a home down-payment.
In June 2009, we bought a foreclosure (that needed some work, but not a ton) in a great historic neighborhood in Richmond, Virginia for $88,000. According to mortgage calculators, we could "afford" between $200,000 and $250,000. But I agree with you that affordability is extremely inflated when the people telling you your affordability are the lenders and sellers.
We took out a 15-year 4.875% mortgage for $55,000 with the other $33,000 as downpayment. We got the $8,000 from the government and have been throwing more excess money at the mortgage for the past 5 months. As of December 2009, we have $17,500 left on the mortgage. We plan to have it paid in full by June 2010 (12 months after purchasing the house).
I wanted to buy a house with cash (becase that is to truly "afford" something), but it was hard to pass on this deal we got. Thanks for a great article.
I think for many people -- being able to take care of their families and being respected on the job are their passions. But being able to think creatively about using a passion in a profitable way is something that should take careful consideration -- finding work with snowboarding? I know a guy who sells snowboarding equipment; finding work with hiking or cycling? I know someone else, who after struggling for years to find the right fit, is now representing high-end technical apparel and gear companies.
Your comments are right on the mark! A large part of our current housing crisis was our own doing: Believing what others tell us we can afford. I've read articles about people buying houses they didn't think they could afford without "creative" financing or “no docs” loan approval in the "feeding frenzy" of 2004-2006.
This is not a new experience. As a Realtor in the early 80’s I saw people wanting to buy a house so much they went for the creative financing packages available. It was all predicated on incomes rising and interest rates falling – which they didn’t for a long time.
That was a smaller version of the same circumstances we see today. Apartments were converted to condos. Unscrupulous salesmen were qualifying buyers on the 1st year payments of an adjustable rate mortgage or one where the developer “bought down” the interest rate for a year or more. When the rate adjusted the new owners could not afford the payments. We saw one case where a condo was sold to an elderly woman on a fixed income. Needless to say she lost her home after 2 years.
I returned to real estate in 2006, just as the market started grinding to a halt. Fortunately I was not involved in any of the creative financing then. I do my best to serve as a counselor to my clients. My goal is to keep the joy of buying a home or investment property while maintaining a cool head about the realities of their financial situation. Oh yes - and to make a living for me as well.
Owning a home is a privilege and a great responsibility. Not everyone should be a home owner (hope I don’t get thrown out of the Realtor’s organization for that). Yes, this is a great time to buy but the first question should be is it the right time for you to buy. If your life situation does not allow you to buy now you will miss some opportunities but you may save yourself a lot of heartache by waiting until the time is right for you.
Prices are at or near the bottom in our market but they are not going anywhere fast. This is the time to determine if home ownership is for you. If it is then see what your finances and personal goals in life allow you to spend and limit it to that. There will be appreciation again but it will go back to a much slower rate of 3-4% in a few years. That will allow you to get into the home market, build some equity, improve your finances and buy your dream home when the time is right.
First step is to talk to a mortgage/financial expert interested in long term clients, not quick sales. Next step is to talk to a Realtor who listens and understands your situation. Be loyal to both and you will succeed.
This is a great analysis. During the housing boom I often stood with mouth open and in great shock when I head of some of the prices close friends were paying for houses(given that I had a sense of how much they put down, what they were making, lifestyle choices, etc.) I couldn't believe what the new homeowner thought they could afford. The problem wasn't about banks providing easy money via adjusting rates, but rather what the buyer thought they could afford.
I put together a more qualitative piece on what first time home buyers should consider in terms of affordability here: http://bit.ly/xdQ8N
There are plenty of reasons not to make a job out of your passion. That was one of the topics of the recent post I linked to, Dream Job or Day Job. A day job--one that pays the bills without draining you of the energy to do what you care about--is a reasonable option.
On the other hand, life to too precious to spend half your waking hours working at a job you hate.
It's worth putting some work into finding something in between. I call it work worth doing.
I guess these are lessons from Runescape. I am more impressed though with the lessons that come from other games like Monopoly, and Rich Dad Poor Dad's "cash flow" game.
I have to depend on my gf getting free drinks. Similar to the post above, if she looks like she is by herself, the free drinks start flowing her way. I snag the overflow.
I believe that a lot of people are afraid that if they try to do what they love and fail, they will be bereft of their dreams. Some people would rather do something "safe" that doesn't inspire them and be always able to say, "I could have been an astronaut, if I'd really tried", than to seriously try to accomplish something, fail, and have to confront the fact that their dream is dead.
I wonder if part of the problem is the word "passion," with its implications of ecstasy and all that.
Anyone who writes knows that there are hours of sheer drudgery involved, not to mention the awful moment when you have to discard page upon page of material.
From the moment I set foot in kindergarten, I wanted to be a teacher. Literature is my passion. But my day-to-day life is pretty steady, with some great "highs" now and then, and just as many "lows."
If you're considering a group gift for this year, visit from: Everyone (www.fromeveryone.com). No more passing around the hat or running out to the store in search of the perfect gift. Organize, invite, collect, send, ONLINE - it really is that simple. And we don't hide anything - you pay a meager 10% service fee to us for making your life easy. So for a $10 contribution, we tag on a buck for our troubles (including packaging and shipping)- trust me, busy people know it's a dollar well spent! Paula Cho, Co-Founder
I don't equate passions with my career and don't like working. Hate working but I have to and probably will have to for the next 30 years. My passion would be to not work, not good at selling or having my own business. Tried that numerous times, just doesn't work for me. I just take a job to make money for my passions though.
In High School there was never anything I wanted to make a career of. After college (Business Administration) still nothing I was interested in making a career of.
Sure there were the dreamy type wouldn't it be cool to be a ..... Everyone doesn't want a career, they just want to enjoy life as it is. That thing called work gets in the way though.
I wouldn't want to turn those passions into a career. Not depressed I have never been interested in a career or working. I know this topic is about passions but it seems to overlap with careers.
I'm a first time poster here, and just wanted to say that I found this blog entry to be quite interesting, particularly as someone who continues to struggle to find his passion in life (and no, I am not depressed!)
However, what would you make of people - such as myself - who simply state that their passion in life is to make money, and that they will enjoy doing whatever activity that helps them accomplish that?
For example, I have switched several activities and even fields of work in my life when they offered better payouts. I can't say I was ever strongly attached to any of them, and I found a strong correlation between how passionate I felt about my work and how much I was getting paid.
When contemplating career choices in high school, I narrowed it down to graphic/industrial design or genetics. Since genetics required a masters (at least) and I was working my way through with no help from home, graphic design become the clear choice.
By laying out all my passions I've found common threads between them. As long as these threads are part of how I spend time the work is satisfying. So it could be reading up on abnormal genetics, understanding neurotransmitters, higher math, making a kid's costume, building a tree fort, or graphic design. All these have visual, problem solving, solitary aspects to them.
Pursuing common threads in one's interests allows for a great deal of flexibility and satisfaction as life circumstances change. Grandma Moses didn't start painting until she was 81. I guess that gives us all a bit of time to try a few more things.
Only my husband drinks coffee in our house, so I sewed him a tea bag that he dunks in boiling water, just like you would tea. I wash it out when I do dishes and he reuses it daily.
At first glance, you might think this post doesn't have much to do with finances, but it really does.
Finding your passion and going after it will give you the motivation that you need to give your professional life its all, which in the end, will result in more financial stability.
Its true, and its all great advice.
It is something that I have personally experienced over the last several months.
And by the way, in my estimation, EVERYONE has a passion....you just need to find it. I don't think we were put on this Earth without passions. It may take awhile to identify it, but we all have them
I have a lot of passions, most around various arts, and they all give me a deep sense of satisfaction when I pursue them. This allows me to have several outlets which makes them more practical, but also has me wondering if I should be focusing on one above the others and bring it to the next level.
Well how about that! I was checking my account balance with netspend today after have posted a day or two ago about how I use it to protect my bank account while making online purchases. I think maybe the original poster of this thread should know that you can refer a friend. Is it possible that all the posts in this thread could have been sparked by one of your friends referring you to netspend without informing you? roflmfao...................
By the way, they are back online. appearently they were updating.
I have hiked the GA section of the Appalachian trail several times. Something I always find is that people leave gear (and food) at hostels. It is a case of inexperienced hikers bringing way too much. Just something about carrying unnecessary weight for a few days makes people prioritize what is important. Of course it is hit or miss with gear. Dry food is almost always to be had. However, this may just be characteristic of trails in the "early" miles (<80-90miles).
Also, do research on hostels. If you are hiking any kind of distance you will want to treat yourself every 7-14 days depending on your finances. For instance, if you get a chance to hike the AT I highly recommend the The Blueberry Patch in Hiawassee, GA. I am not affiliated with them in any way. Just an awesome inexpensive place to stop. The owners are amazing.
@Finavigation: I take on your same approach (Thanks to a Randy Komisar).
Instead of thinking about it as finding your one passion, open yourself up to a "portfolio of passions". List them out, get rid of your faux-passions*, and align your passions with the opportunities around you.
My first blog post was called "A Life of Passions". I really believe in this stuff.
Yeah that's great! Now can we maybe get a man's point of view on how to survive a job that sucks? I don't care about having to 'Feel' my feelings. I want real strategy from a MAN! You know, the people having do deal with crappy jobs and whining families since the begining of TIME! If you tell a woman she has to work on the weekend and suddenly she starts crying...well that's to be expected. What if a man did that? It would be followed by his boss saying, "Hey dude, uh...don't bother coming in on Monday, I don't think we need you anymore." How about this, if your job sucks...just kill everybody!
Great resource! I found an additional cheap costumes resource looking for a Christmas play costume for this year's pageant. This site - affordablehalloweencostumes.com - carries thousands of kids costumes all for under $40. Some of them were even less than $10!
We got a surfin' santa anamatronic one year. I'm sure they thought it would be great. Actually, I think they wanted it themselves, but could not justify the purchase except as a gift during the holidays.
It just was not our cup of tea. If we could have re-gifted it to the giver, we would have (see above), but we put it into a gift exchange at work and let karma find it a new home.
I used 3 years of tracking expenses/spending habits to find out how much I could spend per month on housing without making much change to the way I had been living. I also did not want to be in debt for 30 years or rely on future raises (there are no guarantees) to help pay it off earlier. I calculated what it would take to pay off in 10 years and this is what I could afford. If I do get any raises the benefit will be I can now pay off my mortgage in less than 10 years.
I could have borrowed $300K but only borrowed $185K.
It's almost standard that people end up with a mortgage that they really can't afford. High expectations of future income and rising taxes etc.
My wife and I are each 29 years old and just purchased our first home in June 2009. We lived on the cheap (and took our time) through college and grad school and had school (for both of us) paid off by the time we graduated. Then we both got jobs, rented for two years and maintained our low living standards while stashing away all the excess money we could for a home down-payment.
In June 2009, we bought a foreclosure (that needed some work, but not a ton) in a great historic neighborhood in Richmond, Virginia for $88,000. According to mortgage calculators, we could "afford" between $200,000 and $250,000. But I agree with you that affordability is extremely inflated when the people telling you your affordability are the lenders and sellers.
We took out a 15-year 4.875% mortgage for $55,000 with the other $33,000 as downpayment. We got the $8,000 from the government and have been throwing more excess money at the mortgage for the past 5 months. As of December 2009, we have $17,500 left on the mortgage. We plan to have it paid in full by June 2010 (12 months after purchasing the house).
I wanted to buy a house with cash (becase that is to truly "afford" something), but it was hard to pass on this deal we got. Thanks for a great article.
I think for many people -- being able to take care of their families and being respected on the job are their passions. But being able to think creatively about using a passion in a profitable way is something that should take careful consideration -- finding work with snowboarding? I know a guy who sells snowboarding equipment; finding work with hiking or cycling? I know someone else, who after struggling for years to find the right fit, is now representing high-end technical apparel and gear companies.
Your comments are right on the mark! A large part of our current housing crisis was our own doing: Believing what others tell us we can afford. I've read articles about people buying houses they didn't think they could afford without "creative" financing or “no docs” loan approval in the "feeding frenzy" of 2004-2006.
This is not a new experience. As a Realtor in the early 80’s I saw people wanting to buy a house so much they went for the creative financing packages available. It was all predicated on incomes rising and interest rates falling – which they didn’t for a long time.
That was a smaller version of the same circumstances we see today. Apartments were converted to condos. Unscrupulous salesmen were qualifying buyers on the 1st year payments of an adjustable rate mortgage or one where the developer “bought down” the interest rate for a year or more. When the rate adjusted the new owners could not afford the payments. We saw one case where a condo was sold to an elderly woman on a fixed income. Needless to say she lost her home after 2 years.
I returned to real estate in 2006, just as the market started grinding to a halt. Fortunately I was not involved in any of the creative financing then. I do my best to serve as a counselor to my clients. My goal is to keep the joy of buying a home or investment property while maintaining a cool head about the realities of their financial situation. Oh yes - and to make a living for me as well.
Owning a home is a privilege and a great responsibility. Not everyone should be a home owner (hope I don’t get thrown out of the Realtor’s organization for that). Yes, this is a great time to buy but the first question should be is it the right time for you to buy. If your life situation does not allow you to buy now you will miss some opportunities but you may save yourself a lot of heartache by waiting until the time is right for you.
Prices are at or near the bottom in our market but they are not going anywhere fast. This is the time to determine if home ownership is for you. If it is then see what your finances and personal goals in life allow you to spend and limit it to that. There will be appreciation again but it will go back to a much slower rate of 3-4% in a few years. That will allow you to get into the home market, build some equity, improve your finances and buy your dream home when the time is right.
First step is to talk to a mortgage/financial expert interested in long term clients, not quick sales. Next step is to talk to a Realtor who listens and understands your situation. Be loyal to both and you will succeed.
This is a great analysis. During the housing boom I often stood with mouth open and in great shock when I head of some of the prices close friends were paying for houses(given that I had a sense of how much they put down, what they were making, lifestyle choices, etc.) I couldn't believe what the new homeowner thought they could afford. The problem wasn't about banks providing easy money via adjusting rates, but rather what the buyer thought they could afford.
I put together a more qualitative piece on what first time home buyers should consider in terms of affordability here: http://bit.ly/xdQ8N
Best,
Vince
@ Uchatome:
There are plenty of reasons not to make a job out of your passion. That was one of the topics of the recent post I linked to, Dream Job or Day Job. A day job--one that pays the bills without draining you of the energy to do what you care about--is a reasonable option.
On the other hand, life to too precious to spend half your waking hours working at a job you hate.
It's worth putting some work into finding something in between. I call it work worth doing.
I guess these are lessons from Runescape. I am more impressed though with the lessons that come from other games like Monopoly, and Rich Dad Poor Dad's "cash flow" game.
I have to depend on my gf getting free drinks. Similar to the post above, if she looks like she is by herself, the free drinks start flowing her way. I snag the overflow.
I believe that a lot of people are afraid that if they try to do what they love and fail, they will be bereft of their dreams. Some people would rather do something "safe" that doesn't inspire them and be always able to say, "I could have been an astronaut, if I'd really tried", than to seriously try to accomplish something, fail, and have to confront the fact that their dream is dead.
I wonder if part of the problem is the word "passion," with its implications of ecstasy and all that.
Anyone who writes knows that there are hours of sheer drudgery involved, not to mention the awful moment when you have to discard page upon page of material.
From the moment I set foot in kindergarten, I wanted to be a teacher. Literature is my passion. But my day-to-day life is pretty steady, with some great "highs" now and then, and just as many "lows."
If you're considering a group gift for this year, visit from: Everyone (www.fromeveryone.com). No more passing around the hat or running out to the store in search of the perfect gift. Organize, invite, collect, send, ONLINE - it really is that simple. And we don't hide anything - you pay a meager 10% service fee to us for making your life easy. So for a $10 contribution, we tag on a buck for our troubles (including packaging and shipping)- trust me, busy people know it's a dollar well spent! Paula Cho, Co-Founder
I don't equate passions with my career and don't like working. Hate working but I have to and probably will have to for the next 30 years. My passion would be to not work, not good at selling or having my own business. Tried that numerous times, just doesn't work for me. I just take a job to make money for my passions though.
In High School there was never anything I wanted to make a career of. After college (Business Administration) still nothing I was interested in making a career of.
Sure there were the dreamy type wouldn't it be cool to be a ..... Everyone doesn't want a career, they just want to enjoy life as it is. That thing called work gets in the way though.
I wouldn't want to turn those passions into a career. Not depressed I have never been interested in a career or working. I know this topic is about passions but it seems to overlap with careers.
Hi Philip,
I'm a first time poster here, and just wanted to say that I found this blog entry to be quite interesting, particularly as someone who continues to struggle to find his passion in life (and no, I am not depressed!)
However, what would you make of people - such as myself - who simply state that their passion in life is to make money, and that they will enjoy doing whatever activity that helps them accomplish that?
For example, I have switched several activities and even fields of work in my life when they offered better payouts. I can't say I was ever strongly attached to any of them, and I found a strong correlation between how passionate I felt about my work and how much I was getting paid.
When contemplating career choices in high school, I narrowed it down to graphic/industrial design or genetics. Since genetics required a masters (at least) and I was working my way through with no help from home, graphic design become the clear choice.
By laying out all my passions I've found common threads between them. As long as these threads are part of how I spend time the work is satisfying. So it could be reading up on abnormal genetics, understanding neurotransmitters, higher math, making a kid's costume, building a tree fort, or graphic design. All these have visual, problem solving, solitary aspects to them.
Pursuing common threads in one's interests allows for a great deal of flexibility and satisfaction as life circumstances change. Grandma Moses didn't start painting until she was 81. I guess that gives us all a bit of time to try a few more things.
Only my husband drinks coffee in our house, so I sewed him a tea bag that he dunks in boiling water, just like you would tea. I wash it out when I do dishes and he reuses it daily.
At first glance, you might think this post doesn't have much to do with finances, but it really does.
Finding your passion and going after it will give you the motivation that you need to give your professional life its all, which in the end, will result in more financial stability.
Its true, and its all great advice.
It is something that I have personally experienced over the last several months.
And by the way, in my estimation, EVERYONE has a passion....you just need to find it. I don't think we were put on this Earth without passions. It may take awhile to identify it, but we all have them
I have a lot of passions, most around various arts, and they all give me a deep sense of satisfaction when I pursue them. This allows me to have several outlets which makes them more practical, but also has me wondering if I should be focusing on one above the others and bring it to the next level.
http://just-a-phone-call-away.blogspot.com/
Well how about that! I was checking my account balance with netspend today after have posted a day or two ago about how I use it to protect my bank account while making online purchases. I think maybe the original poster of this thread should know that you can refer a friend. Is it possible that all the posts in this thread could have been sparked by one of your friends referring you to netspend without informing you? roflmfao...................
By the way, they are back online. appearently they were updating.
I have hiked the GA section of the Appalachian trail several times. Something I always find is that people leave gear (and food) at hostels. It is a case of inexperienced hikers bringing way too much. Just something about carrying unnecessary weight for a few days makes people prioritize what is important. Of course it is hit or miss with gear. Dry food is almost always to be had. However, this may just be characteristic of trails in the "early" miles (<80-90miles).
Also, do research on hostels. If you are hiking any kind of distance you will want to treat yourself every 7-14 days depending on your finances. For instance, if you get a chance to hike the AT I highly recommend the The Blueberry Patch in Hiawassee, GA. I am not affiliated with them in any way. Just an awesome inexpensive place to stop. The owners are amazing.
Great post Philip!
@Finavigation: I take on your same approach (Thanks to a Randy Komisar).
Instead of thinking about it as finding your one passion, open yourself up to a "portfolio of passions". List them out, get rid of your faux-passions*, and align your passions with the opportunities around you.
My first blog post was called "A Life of Passions". I really believe in this stuff.
Yeah that's great! Now can we maybe get a man's point of view on how to survive a job that sucks? I don't care about having to 'Feel' my feelings. I want real strategy from a MAN! You know, the people having do deal with crappy jobs and whining families since the begining of TIME! If you tell a woman she has to work on the weekend and suddenly she starts crying...well that's to be expected. What if a man did that? It would be followed by his boss saying, "Hey dude, uh...don't bother coming in on Monday, I don't think we need you anymore." How about this, if your job sucks...just kill everybody!