Sep
3
Why First Time Home Buyer Programs Are a Bad Idea
September 3, 2008 | 1 Comment
… hunt. I did some research and found that our state offers a first time home buyers program through FHA. FHA is a government agency that underwrites (subsidizes) home loans to poor people. These loans have a lower interest rate and require almost no money down. No money down was good (or so I thought) because I didn't have much.
I also discovered that we probably wouldn't qualify once we were married. Our income would push us over the limit. So I was in a hurry to …
Aug
11
Should I Buy a New House?
August 11, 2008 | 4 Comments
… work at a fast food restaurant and still maintain my lifestyle (at least for a year or two or three).
I keep coming back to the freedom aspect. I could certainly afford a larger house but I would lose my freedom. So for now, we are staying put in our starter home.
It's not easy. I feel social pressure just like everyone else. My friends are moving into larger homes. Some have asked me when I'm going to move. Luckily I'm antisocial so I don't take the pressure too seriously.
I …
Aug
8
Fooled By Randomness - Overview
August 8, 2008 | 1 Comment
… background. Taleb makes the math of probability make sense. His use of conversational tone throughout the book is excellent. I get the impression that he is one of those story tellers that could make a tale about a trip to the grocery store interesting.
I'd have a hard time covering all the concepts he covered in the book in one post. What I'll do instead is cover the book chapter by chapter. It's one of those books where every chapter is interesting and adds something to the …
Jul
31
How Much Do You Spend On Gas Every Month?
July 31, 2008 | 1 Comment
… talk about the wisdom (or lack thereof?) of buying a new car to save money on gas. I'll run through various gas price scenarios (higher, lower and flat gas prices).
Stay tuned…
Jul
29
More Reasons to Pay Off Your Mortgage
July 29, 2008 | 4 Comments
… keeping an open mind on this topic. If I can find a convincing argument as to the merits of a mortgage, I'll post it.
Comment by The Real Reason I Paid Off My Mortgage - Wealthy Reader: … Recent Comments Chris on IRS Stimulus Payment: What if …
Jul
25
The Smartest Advice I Ever Got
July 25, 2008 | 12 Comments
… when stocks rise and some protection when they fall. It also enables you to "stay the course" through thick and thin. Come to think of it, that's also a pretty good piece of advice.
Bill Nygren:
Back when I was in college, I remember watching Johnny Carson interview Andrew Tobias, who was giving personal financial advice. Johnny asked: "What's the best investment for someone who has only $1,000?" Mr. Tobias said, "Nonperishable consumer staples."
Of course, the audience roared. …
Comment by Elan Vital: … it appears that Christo may be better suited to discuss …
Jul
24
The Parable of Wealth
July 24, 2008 | Leave a Comment
… been friends since childhood.
Every working day Mark and John go out to their boats. John has three fine ships. Mark has one that it's good repair but it's seen it's better days. John has a full crew for each ship. Mark has a few good men that work for him.
Mark's nets are mended and patched, John always has new nets and new equipment.
When their nets are full both men return to shore with their catch. As the townspeople watch the fishermen come in they often remark about …
Jul
23
… payment.
According to the MSN article:
[I]f you leased a new Chevrolet Malibu LTZ for three years, your monthly payments could be $489. When you turned in the car at the end of the lease, you'd pay a "turn-in" fee of $395 and then walk away. If, however, you bought the Malibu with a five-year loan at 7.9%, your monthly payments would be $546, and after five years you'd own the car free and clear.
In my parents' case, the difference is over $100/month.
You can add …
Jul
21
How Long Should I Keep Credit Card Statments?
July 21, 2008 | Leave a Comment
… to keep your old statements and why.
When deciding what financial records to keep and what to throw away, there are several important criteria. Do you use your credit card for business expenses ? Do you have any tax deductible purchases ? If you answered yes to these questions, you'll need to hold onto your credit card statements for 7 to 10 years.
However, if you only use your credit for normal expenses than you'll only want to keep your paper statements for a year at the most. …
Jul
18
How Uninformed Investors Keep the Stock Market Moving
July 18, 2008 | Leave a Comment
… tried to explain the sound his coworker made when she discovered that fact. Sort of like a shrieking cat, I believe.
On top of that the company announced an increase in dividends (of which she would be receiving none). This lady had been employed for close to 20 years. We're assuming she had a lot of stock.
The Democratization of the Market
What's the point? More people than ever are in the stock market. 401(k) and profit sharing plans have introduced stocks and bonds to a …