Here are the risk involved should you decide to tap into your home equity.
# The collateral is your house.
Yikes! You always knew that you could lose your house if you stopped paying your mortgage. But, your home equity loan is also a mortgage, so your house is at risk if you stop paying that, also. It is worth it for a fabulous new bathroom or some fancy landscaping?
# It can be a slippery slope.
If you use it to pay off credit card debt and you think you may be apt to repeat this, think again. Approximately 45% of all home equity loans are taken out to pay off credit card debt. Perhaps a credit card with a short-term super-low interest rate will be better for you to pay off the debt, as it won't tempt you to keep piling up the purchases.
# Bigger bills.
Obviously, taking out a loan for whatever reason is going to increase your monthly bills and give you less wiggle room. If you have the option of not taking on more debt, consider it.
Private loans depend on credit rating... either student's or, more likely, parent's. If parent's don't have the credit, there won't be a private loan. Combine that with the declining value of need-based grant aid and relatively low caps on federally backed student loans and you have students getting priced right out of higher ed.
If you take a relative low cost money source (HELOC or refinance) and invest it in something where your profits are more than the cost of the investment you're definitely making headway and should absolutely do it!
There are two kinds of people:
Ones who want to pay off their house as soon as possible
Ones who want to invest as much money as possible and spend as little as they can get away with on their house
You comments, while making certain quality points, are missing the bigger problem.
The problem is not where the money comes from (ie. Home Equity or Pawn Shop) the problem lies in what people use their home equity for.
If they use it to buy more assets (stocks, real estate, etc.) that have a return on investment greater than the cost of funds (loan interest rate)then there is no problem. In fact, this is how exponential wealth is created.
If, however, the funds are used to purchase depreciating goods such as electronics, automobiles, vacations etc. we end up with a serious wealth deterioration problem. The sad fact is that our consumer driven society makes the latter example much more common than the former.
Thanks for a good read!
-Tyler
Great post! Here's one that isn't exactly free but it does help you save money without sacrificing your lifestyle.
If Your Company Offers Free Money, Take It
Would you like to get an instant 125% return on your savings plus a bigger tax return? Many company have 401k Matching programs of up to $5,000. This means that they'll match you dollar for dollar on every penny that you contribute. That's a 100% free return for any money that they agree to match.
In addition to this free match, all of your 401k contributions reduce your taxable income so you will get a bigger tax return next year. If you're in a 25% tax bracket, you avoid that 25% tax on every dollar you contribute. If you're not contributing, I can promise with 100% confidence that you can contribute at least 2 or 3% of your income without even noticing the difference.
For example, if you bring home $2,500 per month and decide to contribute 3% to your 401k to take advantage of this free money, you will still bring home $2,425. What do you get in return? 125% instant gain on your money plus a bigger tax return. The average return on the S&P 500 since 1975 has been 10.75% so a 125% return is a pretty good deal. (keep in mind that this article is about "painless" ways to save, I would normally recommend contributing a much higher percentage. You should contribute at least as much as your company matches, it's free money!)
to a reply to the posting labled " I was cheated by comcast and can't get help". Depending on what area you live in ( I work @ the WV call center ) triple play installation is usually just the 29.95 activation fee for the phone portion of the triple play. Any activation of any additional cable lines ( regardless if they are already in the home or just needed turned on) runs 17.60 per cable line( this price is for " additional same trip ") you would have too look at the bill that first had the triple play on it or your work order that the tech had you sigh. I don't have your particular rates for activating additional lines in Fla, but customer service can tell you ( make sure you ask the rate for activating a cable line same trip ) considering the date of the post, it is to late to dispute anything about that now... another common problem w/ the t/p setting up ( on customer service end ) some install fees auto populate on the system we use ( Comtrac ) and many reps do not take those off when setting up a Triple Play. Me personally, after anything I change on a customer account ( weather removing a channel or adding a service) I always save the account for one billing period to make sure that no errors have occurred ( as described above). If any error has occured, I will get a credit issued and call the customer back and follow through. that is what we are suppose to do, but most Comcast CAE's do not do this.... Always get the CAE's extension or operator ID, name, and write dates and times of conversations with any CAE you speak with... if any more postings are on this thread, I am more than willing to try and help.....
Wow Randy, concession stand food is expensive. You're a friggin genius. How long did it take you to figure that one out? I bet you're the tard at the fair arguing with your kid over getting the ice cream cone.
Are always good, but I'm not sure you need them sterile. Since the pickles are only recommended to be in the fridge for a couple of weeks, I think you can just have them washed in the hot cycle before you prepare the pickels. My brother-in-law cheats and doesn't even make his own brine or spices -- he just adds cut up cukes and onions to the leftover juice in his store bought pickle jars! He swears they are good, but I don't know.....
One thing my wife and I have learned is buying the generic brands (for most things) taste pretty close to the more expensive name brands. The pennies we save start to add up.
I am a Brita user myself (although I will also do tap water with lemon or lime juice to cover the chlorine taste) and recently came across this tutorial on instructables dot com about how to refill your Brita filters. I may have to give it a try. Of course my complaints about the Brita pitcher are that it doesn't hold much water, it is top heavy (my kids are always pouring the whole top segment onto the floor when they try to pour a cup of water) and it is hard to keep all the components in place. I wish there were a better option. Reverse osmosis is definitely a great option (my parents have had the same system for close to 30 years, and it still produces great tasting water), but I don't have the funds right now. I can't get the link to show up but just search the words: instructables refill brita filter, and it will show right up.
Our entire family loves pickles!!! I am going to try this recipe on them and see how I do!!! Do the pickles last longer if you use sterile canning jars? Or doesn't it matter, in your experience? (I'm thinking I'd like to make enough to last a couple of weeks, would that work?) Very cool post!
I have a friend who is learning to cut hair, and she cuts my hair for free so she can get some experience. Also, my wife gets her hair cut for free every couple years by donating to Locks for Love.
Kelja, you sound very bitter. Wouldn't you be better off if you didn't have to work "EXTRA" hard for yoru healthcare? You would have extra time for yoru family and hobbies, essentially a better life. I am sorry that you must work so hard to live.
Also, hard work and wealth does not equate to healthcare. Many work very hard, but their companies do not provide coverage. BTW/How do you feel about paying for the healthcare of your wealthy elected representitives?
The opposite of shaving your head is also frugal: growing your hair out long. Virtually anyone can be trusted to cut my hair straight across the back a couple of times a year. In the past this has been my mother; various roommates, friends, and boyfriends; and now I do it myself.
I do use more shampoo and conditioner than regular people and my hair takes forever to air dry. In return, the laws of gravity help keep my crazy hair from sticking out every which way.
Also, if your grey hair is not growing in evenly, you can try parting your hair in different ways to get different effects. Most of mine is growing out of the middle of the top of my head, which I didn't realize for some time because I part my hair on the side. But if I want dramatic coloring, I can just part my hair in the middle and get two streaks coming down the sides!
i second the shampoo frequency in #13. it's personal for all, but my hair does best shampooing only once or twice a week!
also, a product recommendation: sally hershberger (swank NY stylist) has a great line of products available only at wallgreens, reasonably priced around 10$ per product. (btw, wavy-haired friends, check it out - the stuff is better than products i've spent twice that on).
1.) Take a multivitamin, especially pre-natal ones - it's the best kind of vitamin a woman can take. It's great for hair and nails!
2.) When dying your hair: rinse the dye out with cool water. The cool water will help keep the dye in while hot water opens the strands, hence less dye "clings" to it. This will have you going back and doing touch-ups frequently.
I definitely agree with beauty schools. They get some practice while you pay less for a haircut or other services.
Great suggestions from everyone.
No. 1 for me, though, is a great cut.
It took me YEARS to find the person who can make my mousy hair look fabulous. I reward her generously. Still a bargain, considering the complimentary comments I've had!
I saved correspondences from a scientist friend muddling through Peristroika in Russia (the time of the collapse) and think the Russians have a thing or two to teach us about getting by when the rug gets pulled out from under society at large. Until the collapse, the government controlled all food production by having the less educated slave on communal farms not so very different than the way big agribusiness imports hispanic "sharecroppers" to slave on US corporate farms. When peristroika declared people were free, the first thing the "slave-farmers" did was walk off the communal farms (most kept walking right out of Russia) and leave millions of people with no food to eat. The economy collapsed, nobody could find work, and families began to start "dachas" (kitchen gardens) in the countryside to grow and store their own food. Today, even though the Russian economy has recovered (thanks to their gas and oil industry), most Russian families view it a point of pride to travel from the cities to their "dachas" to work the gardens and stay in little huts every weekend. What most people don't realize about the collapse of the Soviet Economy is that it was very closely tied to the fall in oil prices at the end of the 1970's/early 1980's. No oil money, no money to prop up their bloated government, and whalah! collapse. Sound familiar? I'll definately get this book from my library!
Here are the risk involved should you decide to tap into your home equity.
# The collateral is your house.
Yikes! You always knew that you could lose your house if you stopped paying your mortgage. But, your home equity loan is also a mortgage, so your house is at risk if you stop paying that, also. It is worth it for a fabulous new bathroom or some fancy landscaping?
# It can be a slippery slope.
If you use it to pay off credit card debt and you think you may be apt to repeat this, think again. Approximately 45% of all home equity loans are taken out to pay off credit card debt. Perhaps a credit card with a short-term super-low interest rate will be better for you to pay off the debt, as it won't tempt you to keep piling up the purchases.
# Bigger bills.
Obviously, taking out a loan for whatever reason is going to increase your monthly bills and give you less wiggle room. If you have the option of not taking on more debt, consider it.
Sam
Fix My Personal Finance
http://fixmypersonalfinance.com
Private loans depend on credit rating... either student's or, more likely, parent's. If parent's don't have the credit, there won't be a private loan. Combine that with the declining value of need-based grant aid and relatively low caps on federally backed student loans and you have students getting priced right out of higher ed.
If you take a relative low cost money source (HELOC or refinance) and invest it in something where your profits are more than the cost of the investment you're definitely making headway and should absolutely do it!
There are two kinds of people:
I see nothing wrong with the latter.
You comments, while making certain quality points, are missing the bigger problem.
The problem is not where the money comes from (ie. Home Equity or Pawn Shop) the problem lies in what people use their home equity for.
If they use it to buy more assets (stocks, real estate, etc.) that have a return on investment greater than the cost of funds (loan interest rate)then there is no problem. In fact, this is how exponential wealth is created.
If, however, the funds are used to purchase depreciating goods such as electronics, automobiles, vacations etc. we end up with a serious wealth deterioration problem. The sad fact is that our consumer driven society makes the latter example much more common than the former.
Thanks for a good read!
-Tyler
Great post! Here's one that isn't exactly free but it does help you save money without sacrificing your lifestyle.
If Your Company Offers Free Money, Take It
Would you like to get an instant 125% return on your savings plus a bigger tax return? Many company have 401k Matching programs of up to $5,000. This means that they'll match you dollar for dollar on every penny that you contribute. That's a 100% free return for any money that they agree to match.
In addition to this free match, all of your 401k contributions reduce your taxable income so you will get a bigger tax return next year. If you're in a 25% tax bracket, you avoid that 25% tax on every dollar you contribute. If you're not contributing, I can promise with 100% confidence that you can contribute at least 2 or 3% of your income without even noticing the difference.
For example, if you bring home $2,500 per month and decide to contribute 3% to your 401k to take advantage of this free money, you will still bring home $2,425. What do you get in return? 125% instant gain on your money plus a bigger tax return. The average return on the S&P 500 since 1975 has been 10.75% so a 125% return is a pretty good deal. (keep in mind that this article is about "painless" ways to save, I would normally recommend contributing a much higher percentage. You should contribute at least as much as your company matches, it's free money!)
Great post, thank you for all the great tips, I'm always looking for more ways to save. (-:
Cheers!
Odd Lot
http://www.blog.Money-and-Investing.com
to a reply to the posting labled " I was cheated by comcast and can't get help". Depending on what area you live in ( I work @ the WV call center ) triple play installation is usually just the 29.95 activation fee for the phone portion of the triple play. Any activation of any additional cable lines ( regardless if they are already in the home or just needed turned on) runs 17.60 per cable line( this price is for " additional same trip ") you would have too look at the bill that first had the triple play on it or your work order that the tech had you sigh. I don't have your particular rates for activating additional lines in Fla, but customer service can tell you ( make sure you ask the rate for activating a cable line same trip ) considering the date of the post, it is to late to dispute anything about that now... another common problem w/ the t/p setting up ( on customer service end ) some install fees auto populate on the system we use ( Comtrac ) and many reps do not take those off when setting up a Triple Play. Me personally, after anything I change on a customer account ( weather removing a channel or adding a service) I always save the account for one billing period to make sure that no errors have occurred ( as described above). If any error has occured, I will get a credit issued and call the customer back and follow through. that is what we are suppose to do, but most Comcast CAE's do not do this.... Always get the CAE's extension or operator ID, name, and write dates and times of conversations with any CAE you speak with... if any more postings are on this thread, I am more than willing to try and help.....
Wow Randy, concession stand food is expensive. You're a friggin genius. How long did it take you to figure that one out? I bet you're the tard at the fair arguing with your kid over getting the ice cream cone.
Are always good, but I'm not sure you need them sterile. Since the pickles are only recommended to be in the fridge for a couple of weeks, I think you can just have them washed in the hot cycle before you prepare the pickels. My brother-in-law cheats and doesn't even make his own brine or spices -- he just adds cut up cukes and onions to the leftover juice in his store bought pickle jars! He swears they are good, but I don't know.....
One thing my wife and I have learned is buying the generic brands (for most things) taste pretty close to the more expensive name brands. The pennies we save start to add up.
I am a Brita user myself (although I will also do tap water with lemon or lime juice to cover the chlorine taste) and recently came across this tutorial on instructables dot com about how to refill your Brita filters. I may have to give it a try. Of course my complaints about the Brita pitcher are that it doesn't hold much water, it is top heavy (my kids are always pouring the whole top segment onto the floor when they try to pour a cup of water) and it is hard to keep all the components in place. I wish there were a better option. Reverse osmosis is definitely a great option (my parents have had the same system for close to 30 years, and it still produces great tasting water), but I don't have the funds right now. I can't get the link to show up but just search the words: instructables refill brita filter, and it will show right up.
"My point is still if you give people more responsibility for their own health, it will inevitably drive costs down."
Then why are our costs the highest compared to nations with single-payer system?
Our entire family loves pickles!!! I am going to try this recipe on them and see how I do!!! Do the pickles last longer if you use sterile canning jars? Or doesn't it matter, in your experience? (I'm thinking I'd like to make enough to last a couple of weeks, would that work?) Very cool post!
Chuckle . . . Steve, I was wondering how long it would take . . .
au contraire, you are so wrong!!--pickle making DEFinitely sexy!
I have a friend who is learning to cut hair, and she cuts my hair for free so she can get some experience. Also, my wife gets her hair cut for free every couple years by donating to Locks for Love.
Kelja, you sound very bitter. Wouldn't you be better off if you didn't have to work "EXTRA" hard for yoru healthcare? You would have extra time for yoru family and hobbies, essentially a better life. I am sorry that you must work so hard to live.
Also, hard work and wealth does not equate to healthcare. Many work very hard, but their companies do not provide coverage. BTW/How do you feel about paying for the healthcare of your wealthy elected representitives?
OMG, I LOVE pickles, too. I'm going to try this, although good pickling cukes go fast here.
Prenatal vitamins kep my hair stronger, and make my nails grow faster, too.
The opposite of shaving your head is also frugal: growing your hair out long. Virtually anyone can be trusted to cut my hair straight across the back a couple of times a year. In the past this has been my mother; various roommates, friends, and boyfriends; and now I do it myself.
I do use more shampoo and conditioner than regular people and my hair takes forever to air dry. In return, the laws of gravity help keep my crazy hair from sticking out every which way.
Also, if your grey hair is not growing in evenly, you can try parting your hair in different ways to get different effects. Most of mine is growing out of the middle of the top of my head, which I didn't realize for some time because I part my hair on the side. But if I want dramatic coloring, I can just part my hair in the middle and get two streaks coming down the sides!
i second the shampoo frequency in #13. it's personal for all, but my hair does best shampooing only once or twice a week!
also, a product recommendation: sally hershberger (swank NY stylist) has a great line of products available only at wallgreens, reasonably priced around 10$ per product. (btw, wavy-haired friends, check it out - the stuff is better than products i've spent twice that on).
1.) Take a multivitamin, especially pre-natal ones - it's the best kind of vitamin a woman can take. It's great for hair and nails!
2.) When dying your hair: rinse the dye out with cool water. The cool water will help keep the dye in while hot water opens the strands, hence less dye "clings" to it. This will have you going back and doing touch-ups frequently.
I definitely agree with beauty schools. They get some practice while you pay less for a haircut or other services.
but a close friend of mine swears by refrigerator pickles as the only way to go. Sounds like she's not alone . . .
Great suggestions from everyone.
No. 1 for me, though, is a great cut.
It took me YEARS to find the person who can make my mousy hair look fabulous. I reward her generously. Still a bargain, considering the complimentary comments I've had!
I saved correspondences from a scientist friend muddling through Peristroika in Russia (the time of the collapse) and think the Russians have a thing or two to teach us about getting by when the rug gets pulled out from under society at large. Until the collapse, the government controlled all food production by having the less educated slave on communal farms not so very different than the way big agribusiness imports hispanic "sharecroppers" to slave on US corporate farms. When peristroika declared people were free, the first thing the "slave-farmers" did was walk off the communal farms (most kept walking right out of Russia) and leave millions of people with no food to eat. The economy collapsed, nobody could find work, and families began to start "dachas" (kitchen gardens) in the countryside to grow and store their own food. Today, even though the Russian economy has recovered (thanks to their gas and oil industry), most Russian families view it a point of pride to travel from the cities to their "dachas" to work the gardens and stay in little huts every weekend. What most people don't realize about the collapse of the Soviet Economy is that it was very closely tied to the fall in oil prices at the end of the 1970's/early 1980's. No oil money, no money to prop up their bloated government, and whalah! collapse. Sound familiar? I'll definately get this book from my library!
I also have BF Goodrich tires with an odd looking number;
DOT TBHVFTU31
I plan to research this further, but my tires do have some dry rot.