Archive for February, 2010

Creating Priceless Bedtime Stories For Kids

February 10th, 2010
This post is something that could potentially be of great value to you  in your future and more importantly in your child’s future.  The value is more in a memories category though, not monetary value.  That said, I would have paid a decent amout of money to have recorded them. 
Creating memories and stories

Creating memories and stories

The Background: 

When my son was 5, every Friday, I tried to tell him original bedtime stories.  Unfortunately, I was bad at it.  So I did what any creatively struggling Dad would do with his son…  I made up a story about a superhero (I our case Batman, my first attempt was Spiderman, but that flopped)…  Batman was easy, because of the dual identity, the cool gadgets and vehicles, and of course the Batcave! 

My partially made up Batman stories were a hit, my son looked forward to hearing them each Friday.  I even tried to imbed morals and a bit of a life lessons in some of them.  It was so much easier then trying to come up with an original story about of the blue.  Don’t get me wrong, even using the Batman themed stories, was tough, after all I was making the stories up in real time (I had a lot of Ummms and pauses initially, but I got better).  After a while, he started in on the creative process telling his own stories after mine.  Surprisingly, he liked to tell Spongebob Squarepants stories.  He started these when he was six.  We had a great time, and we have some solid memories!  I wish I had recorded them, but unfortunately, I didn’t (please consider Camcording these stories if you decide to try this)!  I would pay a pretty penny to have all of his stories in a recorded format today (and I’m sure I would be will to pay a lot more in the future, this “miss” is truly a lost treasure). 

As he turned 6, then 7, the stories moved to every other Friday and I had to change the format (he no longer liked Batman as much).  So we had some Fireman, and the Star Wars Jedi stories… and then when his life became busier (sports, pokemon, homework, legos and Nintendo DS…) we eventually stopped all together. 

Now it’s my daughter’s turn.  This time things are different, I’m not using a popular character like Dora or My little Petshop animal (although she probably would enjoy those type of stories too).  Instead, I’m creating different worlds and travelling back in time to tell my stories.  Now we talk about a girl in a magical castle that looks a lot like my daughter, or we teleport to the world of “Azul”, where this word is completely water covered except for 1 small island.  In Azul, our human equivalents live in the water and are mermaid-like creatures.  It’s also different this time too, because periodically, my daughter will create illustrations (that’s what she calls them instead of pictures) that go with her stories (she does this earlier in the day), in anticipation.  Like my son, we do a story exchange.  Great memories…  I still need to camcord or at least audio record the storytelling.  Now that I’m writing this, I think I will do that for the next storytime sessions (they occur on every other Friday).  It’s funny how by my writing about it now, I finally realize that these story sessions are worth a lot to me.  Not to mention my wife, perhaps she would like to hear a story that our daughter created! 

I know this isn’t a typical financial post, but I would like to say that the bonding with your child and the memories formed while telling such stories could someday be a great treasure your child will cherish in their adult lives. 

Even if you don’t want to expend the energy on creating your own stories (although I would encourage doing so), just reading stories at night time once a week could be a great experience too!  My wife reads the kids a story every night except Fridays (that’s my night), and they seem to really enjoy it. 

I really enjoyed hearing my kid’s made up stories.  Some of the ones my daughter has told me has floored me!  She’s getting pretty good at it!

The Difference Between Lifestyle Creep and Lifestyle Inflation

February 9th, 2010

This is how I define the following:

Lifestyle Creep is when you expand your lifestyle by purchasing things or activities that are more expensive or better in some way.  Here is a list that I would use to describe events that can only be called Lifestyle Creep:

  • You go out and buy a boat, when you didn’t previously have a boat. 
  • You go skiing, which you’ve never done before.
  • You buy a third trophy car, but previously you only had 1 or 2 cars.
  • You buy a vacation home for the first time
  • You vacation overseas for the first time.

Lifestyle Creep is a superset of things you buy for the first time, and the set of items that “Lifestyle Inflation” represents.

Lifestyle Inflation is when you increase the cost of something that you have done before or owned before.  Here is a list that I would use to describe Lifestyle Inflation:

  • you have a small used cheap boat, and now you go out and buy a boat twice as expensive or better yet, a very expensive yacht
  • you replace your cheap watch with a Rolex
  • you replace your Chevy Malibu with a Lexus (wish I could…)
  • You replace your 36″ CRT Television set with a new 60″ LED HDTV.

With Lifestyle Inflation, you are replacing an existing object with one that is more expensive and usually better, an improvement.  All of these are also include in the Lifestyle creep catagory!

 

Why am I pointing these difference out?

I’ve been reading articles where people are using “Lifestyle Inflation” instead of “Lifestyle Creep” (or expansion).  And I just wanted to distinguish what I think the difference is between the two.

Today, there many misuses of the means of words.  For example when Columbus came over to the Americas, he called the native Americans “Indians” because he though he had landed in India.  Opps, very embarrassing, and yet we continue to still use that word to describe native Americans, even as it’s obviously incorrect.

Here are other ways we misuse words:

  • Turn on the TV- at one time TVs had a knob that you turned to make the TV come on.  Why do we still say this? (same with wall lights).  Wouldn’t it make more sense to say “switch on the lights” or “power on the TV“?  Foreigners probably think we’re stupid for saying it that way…
  • I got electrocuted touching that live wire – Electrocuted means killed by electricity.  The person is clearly alive though if they are telling us what happened to them…

Today I’m going to conclude by asking questions in the format that our friend the Financial Samurai would use:

Readers, With The Lifestyle definitions above, do they make sense to you?  Wouldn’t it make more sense to use the language in the truest meaning of our words, or should we continue to use them inaccurately? 

Do you think people just repeat and use what they hear even though they know that the word is being using incorrectly when someone famous say them?

Tell me if you think I’m being too picky or missing some bigger picture?

Thanks,

-D

The Catch With Winning A Free House

February 8th, 2010

My friend that won the house ran into one problem with her great score!  

Big time taxes

Taxes!!!

The $200,000 that my friend won in the post “My friend won a house“, had the taxman at her door wanting his fair share!  

Luckily my friend “Sis” wasn’t making as much money as she does now.  But still the capital gains on $200,000 is quite substantial.  I’m not privy to the actual tax amount she paid, but from what I read it would have been taxed as if it were regular federal income tax rate, and then the state tax rates too…  So I’m sure it turned out to be a pretty penny, but not 50% like I’ve heard in the past.  

(Check out this funny and informational post by www.bargaineering.com: “Prize Winnings Tax” ) 

So how did she pay for the winnings?  

To start, she sold the new car that was part of the prize package (it was a hyundai).  Next she sold some of the gift certificates to friends.  She used some of the money that she had in savings, but I doubt that was enough either.  I’m guessing that she probably borrowed the rest from her parents.  I do know that she was pretty stressed out coming up with the money for the taxes.  

So I started wondering what would I do in her case?  

  • First, I’d have to liquidate all of my regular stock account holdings.
  • then I’d have to take a $50,000 loan against my 401(k).
  • I would expect that should do it, but if it didn’t, then I’d also take a home equity loan against the house I just won :( .

I guess in this case, every silver lining has it cloud.  ;)  

But hey, it’s still good!

MoneyReasons Weekly Cache 2010, Feb 07

February 7th, 2010

Weekly Cache - 2010, Feb 07

Random Thoughts:

Some people are much luckier than others, I can’t explain it but they are.

Like my friend’s sister who won a house, even to this day I’m still shocked (and jealous, but happy for her) over that one.  I’m one of the slightly unlucky ones, but I know that and have learned to adjust to my type of luck.  It’s almost like it’s a scale…  So to describe my luck, I think that I’m lucky 45% of the time, and unlucky 55% of the time. 

Note the following change, I’ve decided to post every other day or so This will give me more time to experiment and read other blogs (which I’ve been doing for years, and is one of my favorite pasttimes).  If you don’t think this is a good idea, please email me at moneyreasons.com [at] gmail [dot] com.

My Favorite Top 3 PF Blogger Posts For The Week:

PF Blogger’s Three Interesting Club To Join (or at least check out):

  • FinancialSamurai.com‘s post  ”Creating Powerful Friends: Samurai’s Alexa Ranking Challenge” - The Financial Shogun Samurai’s club is the one to beat for the ultimate in self-improvement.  By issuing this noble challenge, the financial samurai is encouraging self improvement in the blog world.  Read his post for more information.  (Sam is using the sword instead of carrots as motivators in this challenge ;) ).  sweatingthebigstuff.com has been tracking the progress of the members that are in this club at: “samurai-alexa-ranking-challenge“.
  • Budgetsaresexy.com‘s post  “Millionaire Club - J.Money’s club is for aspiring millionaire’s!  Each member states a pledge that they will use to accomplish there goal.  Sounds like a great idea, and the millionaire club badges is awesome (yes I’m thinking about joining)…
  • WellHeeledBlog.com‘s post  “My Honey, My Money“ - Okay, this is really a club.  It’s a series that WellHeeled has created that takes articles written by others about stories that they want share about money & relationships.  She already has some decent sized blog author’s lined up to submit their stories.  Should be a great read!!!

My Favorite Post From MoneyReasons This Week:

  • My favorite post this week is ”My Close Friend Won A House” which is a story about my best friend’s Sister (she’s a close friend of mine too) and how she literally won a brand new house (really a townhouse).

Status on other thing’s I’m involved in:

  • I graded my work self (only 2.88 or C+ average).  I got to improve this!
  • My stock pick in the ”The Samurai Fundis doing a little better, but nothing to blog about (yet ;) )
  • It turns out my son just had a regular cold, no pink eye (whew)
  • You might think I’ve turned pessimistic for the year, but I haven’t!  Hopefully it gets better from here on out.

 Goal #1: 2010 Resolution #1, Losing Weight While Saving Money

             
  Date   Weight/lbs.   Loss/Gain  
             
  02/07/10   231    1  
             
  02/14/10          
             
  02/21/10          
             
  02/28/10      
 
 
             
             
             
  Total Loss for the Month : 1  
             

As for my other goals (#2,#3)

  • Not much happening here, I’ve been focusing on my work settings, I’ve graded myself and really going thru my folders organizing everything.  My sister is going to have her baby any day now, next week is going to be hectic…

-D

My Close Friend Won A House

February 6th, 2010

A few years back, my best friend’s sister (my close friend too, let’s call her Sis) won a new house (a townhouse), car, and other prizes that added up to a tune of about $200,000.

What is her secret?

Sis (and her boyfriend) filled out 50 postcards and snail mailed them to a radio show contest.  At the radio show, 100 winners were selected (obviously, Sis was one of them), and each of those winners won $100 if they immediately called the radio show (which Sis did of course…).  A few weeks later, those winners were entered into a contest to win a “Dream Life” contest.  In this contest, the 100 winners competed for a house, and other “Dream Life” amenities.  So the prizes included a house, car, big screen tv, ticket to the theatre, etc…  to compete, the $100 winners were to show up at the prize house, choose a key from a box, and if the key opened the door to the house, the key holder won the house!

Now the story goes that the day of the “Dream Life” showdown, Sis was scheduled to leave for vacation with her family.  Half of the family went to the vacation location, but Sis, her dad and boyfriend stayed behind (at Sis’s insistence) so she could compete in that contest. 

My friend knew statistically, her chances were a bit better than 1% in winning the house.  Why a bit better?  Because there is always someone that can’t make such contests (maybe because they were going on vacation too).  1% doesn’t sound like much of a chance to win (and in normal matters it isn’t), but when compared to the chances to win via a state lottery ticket!!!  Well, it was definitely worth a shot!

Sis was the 47th person to try.  She put in the key and started to turn expecting to be a miss, but it kept turning (probably that second seemed like a lifetime), and turning, and turning… until the door opened!  She was ecstatic (I saw the pictures of her online).  I couldn’t imagine just graduating from college and winning a house!  Talk about jump starting your financial life!  As an analogy, it would be like Sis is in a race with everybody else that graduated from college, expect that everybody else starts at the start line, but Sis is allowed to start a quarter ahead of everybody else!  I’m a little jealous!

The point of this story is never give up, make your own luck by trying the best you can and going the extra distance to make it happen.  I’ll be honest, I wouldn’t have won that house if I were in her shoes.  I’m sure I wouldn’t have inconvenience my family’s vacation.  I would have skipped it thinking I probably wouldn’t win.  But if you don’t believe and try, then you definitely won’t win!!!

Always remember, you already won a big lottery just being born.  And if you are from the United States, you won another big lottery being born in a free country.

You will never know what you are capable of ,if you don’t believe in yourself and try your hardest in whatever you do!!!  I know this now!!!

And now to you readers, do you personally know someone who has won at least $100,000 dollars or other big amounts?

-D

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