Sunday, May 31, 2009

Getting Out of Your Routine

Getting out of your routine not only helps you appreciate what you are used to but it also sheds light on whether you are on the right track with life. May was a very busy month for me, as I went on two separate vacations in addition to a multi-day conference. Don’t get me wrong - the time was well spent as they were both fun and engaging but it also meant a total change from my usual schedule.

Morning coffee was no longer available with a touch of a button, a good night’s sleep was just not possible and more importantly, a relaxed environment was no where to be seen as I write to my favorite people (that’s you!).

As I try to settle down from all the hoopla of the month on a Sunday morning, reflecting on the experience told me that:

  • I miss my wife when she’s not with me.
  • I love writing to my readers and what I’m doing everyday.
  • and I really need to keep telling you that if you hate what you are doing, you need to change professions.

You are probably thinking right now “Is this guy nuts?  We are in a recession and I’m just happy I still have my job!”  Hey, no one is doubting that jobs are scarce, but realize that no one is keeping you from taking a class or two on what you actually enjoy to gain the skillset to switch careers.  No time?  How about making some.  Just two days ago, I heard of a person who worked from 8-6pm, spent time with his family from 6-10pm and then had tons of time from 10pm to 2am every single day to work on his business.  Do you really not have enough time or do you rather spent the time watching TV?

The life is yours.  Don’t be afraid to take steps to make it better, and don’t be lazy and live life like everyone else.  You deserve better and it can be done.


Related Articles at Personal Finance Blog by Money Ning:


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Saturday, May 30, 2009

Investment Performance April 2009 (+10.88%)

This is an ongoing monthly update on how our equity investments are performing. Please see this background on the investment tool I developed and how I am using it to track our performance against a benchmark to measure our progress or lack thereof.

Its still a work in progress, any feedback is appreciated and may be incorporated into future monthly reports. The only equity investments not covered are:
1) my 401k which is invested in institutional index funds through my employer that I haven’t found a tracking symbol for.
2) investments roughly worth less than $400-$500, simply because I don’t have the time and energy to keep up with them. I am thinking I will sell these off at some point and add the proceeds to my current investment portfolio because they are too much work to track.

April Highlights:

  • April turned out to provide a terrific upswing on top of the big gains in March. For the 2nd month in a row, our benchmark and our portfolio posted the best returns since I started tracking our monthly return over a year ago.
  • Our portfolio did not beat our benchmark this month, but the difference is pretty much a rounding error - given that we have beat the benchmark for the last 5 months, I’m still pretty happy we our current portfolio returns.
  • Dow’s aquisition of Rohm & Haas closed at the beginning of the month, netting us a very nice return on our small investment. We netted a 35.2% return on our investment in 4 months. That would be over a 150% annualized return - not bad! Turned out to be a very good investment, but hindsight is always 20/20.
  • We made a couple other small incremental investments this month including Pfizer, Conoco Phillips, KBW Banking Index with the Rohm & Haas proceeds.

April 2009 Investment Report:

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The GRS Garden Project: May 2009 Update

Every month, my wife and I track how much time and money we spend growing food. This is the report for May 2009. (Here are the results for 2008.)

What a difference a year makes! Our fruits, berries, and vegetables had a slow start last year (and then were further slowed by a cold, cold June). This May was warm — very warm. Our food crops loved the weather, and they’ve shown explosive growth.

As a reminder, here’s what the garden looked like at the end of April:


A blank slate…

And here’s what it looks like now:


Tomatoes, onions, peas, cucumbers, squash…they’re all here!

First harvest
The sunny weather produced lots of growth. The peas and raspberries and blueberries and fruit trees all look amazing. We’re going to have huge crops. We have a couple of small snow peas on the vine, and the tomatoes are blossoming. But only three crops have yielded fruit through the end of May:

  • In its fourth year, our asparagus finally produced a crop. It wasn’t much of a crop, but it was a crop. We harvested 31 spears (about 520 grams). I went to the grocery store last night and measured five bunches of asparagus. They averaged 20 spears, about 500 grams, and cost $2.99 each. I figured that our asparagus was worth $3.11.
  • Kris added some strawberry plants to our patch. (Our strawberries live intermingled with the roses.) They’ve been producing fruit for several days, which means they’re a week earlier than last year. So far, we’ve harvested 325 grams (0.72 pounds) of strawberries worth about $2.86.
  • We’ve also begun to harvest radishes. “The radishes are a failed experiment,” Kris told me today. “They’re easy to grow, but we don’t like them, so we can’t count them for the project. In fact, I hate the radishes so much that I have to spit them out in the sink whenever I try them.” So, we won’t count this third crop as worth anything.

That puts our May harvest at $5.97, which isn’t much, but it is still $5.97 more than we harvested in May last year.

Challenges
Though our garden is going well this year, we’ve experienced some minor annoyances:

  • For the second year, the gooseberry sawfly larvae stripped the leaves from the gooseberries. Kris is cutting her losses. She says the gooseberries can come out, which makes me happy. Those things have nasty thorns. Besides, I can now plant two more blueberry bushes! (I love my Toro blueberries — very productive in a small space.)
  • Kris is still waging a war against the slugs. This is an annual battle, one in which she’s tried nearly every recommended remedy. The slugs are threatening her precious cucumbers, marigolds, and sunflowers. But this year she’s trying a new strategy: she’s losing the battle to win the war. She planted more of each variety than usual, and is just accepting that she’ll lose a certain number.
  • Finally, we’ve had some equipment failures. Our spray nozzle broke. Kris tried to fix it, but it was beyond repair. The same is true of the soaker hose, which sprung a gusher at the connector.

These aren’t major problems, obviously — they’re just minor annoyances. We try to take care of our equipment, but there are a few failures every year. Partly because of this, May was an expensive month. (It was also expensive in 2008.) We spent $98.55 on garden supplies, including herbs and vegetable starts.

Summary
I spent zero hours in the garden this month. I did a few quick tasks, but no major work. Kris made up for that. She tells me she spent 15 hours on food-producing activities last month. I’m skeptical. That’s 40% more than our busiest month in 2008 (July). On the other hand, she did do a lot of work out there. (She tells me that just as some GRS readers warned, the horse manure we spread last fall has produced a fine carpet of weeds, which she hoes daily.)

Here’s the monthly summary for May, including comparison data from 2008.

Month Time Cost Harvest    Month Time Cost Harvest
Jan 09 3.0 hrs $131.15    Jan 08 4.0 hrs $27.30
Feb 09 12.0 hrs $36.67 $10.00    Feb 08 2.5 hrs
Mar 09 4.0 hrs $1.00 $5.00    Mar 08 3.5 hrs $130.00
Apr 09 3.0 hrs    Apr 08 5.5 hrs $28.51
May 09 15.0 hrs $98.55 $5.97    May 08 5.5 hrs $110.89
Total 09 32.0 hrs $197.08 $20.97    Total 08 21.0 hrs $296.70
Share your progress! I’d love to hear about other people’s gardens. Especially if this is your first time growing your own food, please chime in with what you’re doing and what you’re learning.

Final word
This garden project is not a formal experiment. Kris and I are long-time hobby gardeners, and we have set ways that we do things. This year, we’re trying to incorporate some new ideas from GRS readers, but most of the time we’ll do things the way we have for nearly 15 years.

We’re not trying to be 100% organic (though we are mostly organic through our normal practices). Nor are we trying to be 100% frugal. Instead, we’re trying to see just what our garden costs and produces based on our normal habits. We hope the results of this experiment will help us find new ways to economize and to improve our crops.

You can read about my goals for this series in The year-long GRS project: How much does a garden really save?


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Friday, May 29, 2009

Divvy Up Savings to Maximize Goals

Americans have finally gotten religion when it comes to savings. After dropping to 0 percent in recent years, the personal-savings rate jumped to more than 4 percent early in 2009.


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Housing Bust Leaves Most Sellers at a Loss

Never mind a profit. Breaking even would have been nice.


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Father's Day 2009 Date Coming Up, Get Ready!

Father’s Day 2009 Date Approaches

Do you really think Dad wants another ugly tie this year?

Do you really think Dad wants another ugly tie this year?

It’s that time of year again, when you know the Father’s Day 2009 date is coming  up, but you’re not quite sure how soon. The Father’s Day 2009 date is June 21, which gives you about three weeks to prepare. You don’t want to have to rush out on June 19, get a cash til payday loan and buy him something at the last minute.

Sometimes the best gifts take a little planning time. Fortunately, the most thoughtful gifts usually are also the least expensive. I scoured the web to find some great Father’s Day gifts using these criteria: thoughtful, useful and inexpensive.

Spirit of service

This first gift idea has a great price tag attached: free. Plus, it’s something that every father will appreciate and enjoy: doing yard work. Mowing the lawn, weeding, keeping the yard free of debris and many other little tasks are taken for granted while Dear Old Dad maintains the yard. Show your appreciation and give Dad a much-needed break by dedicating an afternoon or three to doing yard work.

Maybe you have a father who likes doing yardwork. If that’s the case, then help him! You’ll get to spend time together, the tasks will be finished more quickly and you’ll learn about the hard work your dad does to keep your family’s yard nice. June is a fantastic month for working outside, so hop to it!

A fatherly path

“Missy” made a suggestion on Living A Better Life, which describes itself as  “the free money-saving tips ezine.” Missy’s idea is inexpensive, thoughtful and touching. She says: ... click here to read the rest of the article titled "Father's Day 2009 Date Coming Up, Get Ready!"

Smithee’s First Stock Sale

Well, I sold my first stock. I agonized over when would be the right time, but then I just pulled the trigger, anyway.

Earlier this year, I started using the “free money” I was getting from this credit card to buy some stocks.

In March, we paid our tax bill of over $3,300 using that card, so the 2% rewards were higher than normal. I asked a friend of mine who knows a lot more about the stock market than me what stocks were catching her eye, and on her unofficial recommendation I bought 60 shares of CAR, the Avis car rental people.

That was April 17th. The stock price was $1.50. With a $9.95 commission at Sharebuilder, I ended up “spending” a total of $99.95.

And then I watched as the stock price just rose and rose and rose.

Avis stock performance since Apr 17th

On about May 20th I started wondering if I should sell my proceeds. We’ve had rather more pet problems than usual and I was a little worried that our upcoming vacation might suffer as a result. The “overall return” on that investment, according to Google Finance, was hovering around 200%, which is a heck of a lot more than the 7 to 9% we’re taught to expect from long-term investments.

So I sold it on May 27th. I was a bit alarmed to see that there was yet another commission of $9.95. To me, that’s like paying a toll over a bridge going in each direction.

Stock proceeds: $282.24
Minus original investment of $99.95: $182.29

Now, if I’m reading this Capital Gains Tax table correctly, we’re going to be hit with a 25% of the “cost basis” come next April. If the cost basis is the amount I spent on the investment, that’d be the $99.95 number again, which means a tax of about $25.

Profit minus upcoming tax: $157.29

So I spent $99.95 and got $157.29, a real profit of 157%. Not the nearly 200% that Google Finance was teasing me with, but not shabby, either.

The other way to look at it is that since the $99.95 was free money in the first place, I made a profit of infinity dollars.

More importantly, when we take our vacation next month, we’ll have $157 that we otherwise wouldn’t have had. That’s one fancy dinner with some very good wine. I’m looking forward to it.

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Smithee’s First Stock Sale



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Thursday, May 28, 2009

Credit Union Service Centers Provide Shared Branching

Chris M. sent me e-mail last week to share some thoughts on rewards checking and on credit unions. I’m a fan of both. In his message, Chris offered a handy tip for those of us who use credit unions instead of banks:

In reviewing your past posts, I realized that you might not know about something I use to get around going out of your way to the credit union all the time. I always work during banking hours, so I make all my deposits via ATM. I use a CU Service Center. The one I use has only two-day hold on deposits, like the credit union. Other credit unions may have five-day hold, which is not so nice. Here’s where I found my credit union service center.

Credit unions are a fantastic option for many people. They’re member-owned not-for-profit financial institutions that usually have strong ties to a local community. They tend to cooperate with each other instead of compete.

Despite the great rates and excellent service, credit unions do have drawbacks. Huge national banks provide hundreds (or thousands) of branches around the country, and there are often dozens within a single city. It’s easy to find help when you need it.

However, credit unions tend to be local. You’re not likely to find offices all over your city. I chose my credit union because it has two branches near my home, a branch near the family business, and two additional branches nearby. But if I’m on the other side of Portland and need to do some banking, there’s no office available.

Fortunately, most credit unions in the United States offer shared branching. It’s as if they’re all a member of one enormous banking network. The website Chris M. sent me last week offers a list of shared credit union service centers, making it easy to find a nearby credit union, even when you’re on the road.


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I love scarves

I wear them all winter long. This last winter, I bought so many scarves that I didn't know what to do with them. I like to color coordinate them with my outfit. Of course there is definitely a standard for the scarves that needs to be met. I also have made a few scarves before. It was actually kind of enjoyable. Everyone said that crocheting wouldn't be fun and that I would hate it but I don't. It actually keeps my quite calm. I can't wait till next winter when I can wear all my scarves.



Vector Scam |Hear Both Sides of Marketing Company Story

Is Vector a scam?

The Cutco cleaver

The Cutco cleaver

Rumors are circulating about the latest version of the “Vector scam,” otherwise known as Vector Marketing Company, are once again circulating the Internet. We’ve all heard of “work from home” scams, and many people believe that this is one of those.

Of course, others out there will tell you working for Vector is a lucrative job. In fact, there are plenty of online testimonials from people who say they have earned great money, learned a lot and been “pleasantly surprised.”

Claims tied to Vector scam

Here’s the basic scenario: Vector Marketing advertises online that it is looking for salespeople. The job offers $15 to $16 per hour, flexible schedule, be your own boss, etc. You’ve seen it before.

The job is selling Cutco cutlery — in other words, knives. However, the jobless people who decide to pursue a career with Vector soon find out they might need some quick personal loans just to get the gig going. The money will come later, or so they think.

Why pay for a job?

Vector Marketing requires salespeople to pay for a demonstration kit, meaning they must purchase a set of the knives themselves and use them to sell said cutlery. Also, and this is where it gets shady to me, they are required to pay for training.

I don’t know about you, but I have had several jobs and in each case the company paid me for training, not the other way around. But, still, Vector says if you pay for knives and sales training you can be an independent contractor and you’ll be allowed the privilege of selling Vector’s Cutco knives. ... click here to read the rest of the article titled "Vector Scam |Hear Both Sides of Marketing Company Story"

$100 Bonus For Opening a Chase Checking Account With Coupon Code

Chase is offering a $100 bonus if you open a checking account by July 7, 2009. There is no maintenance fee with this checking account as long as you activate a direct deposit or use your debit card for purchases five times each statement period. There is no minimum balance requirement, but an initial deposit of $100 within sixty days is required to qualify for the bonus.

If you live near a Chase branch, you can take this code with you when you open your account. Otherwise, you can open your account online at Chase’s website.

You will not qualify for the bonus if you currently hold an account at Chase or any of its affiliates, which could include Washington Mutual.

The coupon codes are good for one use only, so if you want to earn this bonus you must be quick to act.

3471822349438807 (Expires July 7, 2009)

If you have received coupons on the mail which you do not intend to use, please post the codes in the comments so others can take advantage of the bonus. I’ll add any posted bonus codes to this article.

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

$100 Bonus For Opening a Chase Checking Account With Coupon Code



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