Archive for July, 2010

Is It Time To Buy A New House?

July 12th, 2010

Housing was hit fairly hard!  with home prices down more that half in some locations (for example, Nevada)…

My friend with that won the $200,000 dollar  house and things is  moving.  To help provide the best environment (including school system) for her future children, she (they) decided to upgrade to a more expensive, and much bigger house.

We estimate that she’s going to triple her current living space with the move.  And since she lived in a townhouse before, her lot size has increased by an even larger amount.

I also mentioned the “Joneses” of our neighborhood has already moved to a bigger and better place.  While they aren’t moving for the reasons as my friend is moving, they too are taking advantage of the reduces home prices (and at the time, the home buyers incentives) that are around.  In their particular scenario, they are increasing the living space by 1,000 to 1,500 square feet.

If my wife and kids weren’t so happy with the house we live in, I too, would have jumped on the “buy a larger house while they are cheap” bandwagon.  Of course, I’d upgrade our square footage by a much smaller amount.  I estimate that I would only increase the amount by a range of 400 to 600 square feet.  The important thing to realize is that this environment might be a once in the lifetime opportunity to buy a house at a reduced costs.

After all, if the house prices don’t start increasing, we have much more serious problems.  Perhaps the logic is if we go are going down in flames, why not go down in flames with a bit of style?

Readers, what do you think?  Is the housing market so depressed that now it a great time to buy?  You have heard the stories of three people that are moving or would like to move (yeah that’s me).

-MR

Money Weekly Cache 2010, July 11th Son's Birthday

July 11th, 2010

Weekly Thoughts:

This week I’m just so proud of my son.  He’s getting so big so fast!  I wanted to go a little overboard with my son’s birthday, since he’ll be 10.  But we ended up not doing anything out of the ordinary.

One small thing we are doing differently is that fact that we don’t have a birthday cake this year.  Instead, my son wanted 2 peanut butter chocolate pies (his favorite dessert) and ice cream.  In the past, his grandmother has made the cakes, and they were awesome.  She made cakes such as a 3 dimensional fire truck, an ocean with a 3 dimensional octopus, clone wars Anakin, and other cool things…

My Favorite Reads of the Week:

 Financial SamuraiEven Lebron Doesn’t Listen To President Obama - Interesting perspective on Lebron’s move… But more importantly, Sam bring up the fact that the government wants us to practice financially austerity, while they are is spending like there is an endless supply of money.

Everyday Thoughts and TipsA Casting Call – An Interesting Experience - Sometimes actions and efforts speak louder that words.  And I think that the fact that Kris went through such an exercise to give her son a chance to be in a movie is great!  I’m very impressed!

Free Money FinanceGreat Offense AND Great Defense are the Keys to Wealth - This is just so true!  Excellent writeup on the topic!

Little House in the Valley“Bliss Box” Contents Explained - Little House explains her reasoning in getting this as a wedding gift.  I think it’s a great idea especially for those that have the desire to learn finances.

Get Rich SlowlyWhat Should You Buy Used? What Should You Buy New?  Great list of things that you should buy used and things that you should buy new!  A must read article!

My Favorite Post from Money Reasons:

My favorite post this week is:  Giving My Kids A Head Start In Building Wealth.  With this post I reveal my plans on helping my kids become wealthy by seeding the appropriate investments for them to build upon.

Closing Thoughts:

As we grow older, birthdays pass more quickly.  While we dread our own birthdays…  It’s still brings great excitement for young kids!  So I try to make their birthdays the best that I can for my kids.  This year, while my son will still enjoy it, I feel like I dropped the ball by not planning something a bit more spectacular.  After all, he’s now double digits!!!

-MR

My Son Turns 10, Thoughts and Regrets

July 9th, 2010

My son has recently turned double digits!  He’s now 10, and the time just flew by…

I think he’s had a good childhood to this point, but there are things that I didn’t get to do with him that I wanted to do. 

So I thought I’d list some of my regrets:

  • Playing scientist:  I envisioned my son and I doing experiments down in the basement, inventing things and learning the properties of various materials.  While I still might have a little time left, some of the magic is gone.
  • Building a FireHouse:  I always wanted to build my son a firehouse for his fire engines.  I procrastinated and he got a pre-assembled wooden firestation for a present from a grandparent.  I did build an additional extension that attaches to the initial structure.
  • Motorcycle or Go Kart Riding:  I always wanted to get my son a minibike, small motorcycle, or a go kart…  But since I don’t have the land to run these, I never did this.  So my son had to settle for his grandpa’s riding lawnmower  and occassioinally driving my car in the junior high parking lot.  We also raced gocarts at a paid place.
  • Reading the Harry Potter book:  I wanted to read this with my son, but life got busy and complicated so we only got to start it and it fell by the wayside.  We did read a few encylopedia brown books thought!

After thinking about it, I haven’t done as bad as I thought!  But the time has gone quickly!  For the next project, we are going to build a fort roof for his swing (for shade).

Would you like to join a contest for a free book called “Enjoy your Money” if so click here to learn more!

-MR

Enjoy Your Money (Book Review & Giveaway)

July 8th, 2010

When I received the book “Enjoy Your Money” by J. Steve Miller, I didn’t read it right away.  At that point, I was already reading another book. 

The cover was so compelling though that I had to start reading the first few pages.  Boy, I was surprised!  It definitely started in a way that I hadn’t imagined…  needless to say, I was hooked.

In some ways, the book reminds me of a movie I saw when I was really young called “The Breakfast Club“, except with finances as the central topic, and a teacher was the leader of the club.

Unlike typical books, this book doesn’t really have chapters, instead it used breakfast meeting numbers.  Yes, the Breakfast numbers are the same as chapters, but it takes out that rigid format of a typical book and this makes it feels like you are reading notes that were left in a cafe by someone that was careless.  It’s pretty cool.

The Review:

Like the breakfast club, all of the members meet in detention.  The were all complaining about money, and the aggressive one “Akashi” blurted out to the coach about the problems that they were having and if he could help them since he was a teacher.  The coach that was monitoring the detention session, told the kids to see Mrs. Kramer (not related to Jim Cramer… the different spelling give that away!). 

Mrs. Kramer (a widowed teacher at their school), established a weekly breakfast meeting with the 4 members (Akashi, Antonio, Amy & James).  At these meetings, she goes on to teach them something new each session.  She also discusses some of the problems that she encountered along the way. 

The dialogue is conversational, so you’ll hear James and the rest of the conversation in words that each member would speak them!  This was a fun exciting book to read, nothing dry in this book.  Plus each chapter had references to additional books that are also excellent to read.  I was very impressed with Mr. Miller’s selection.

So did I like the book?

Yes!  It was a quick and easy read, that I’m sure any high/college age student would enjoy.  Nobody like to be buried reading company annual reports when they are at that age!  This book was reading a story that just happen to have finances interwoven in!  Many of the things that run as a central theme here at money reasons is within his book!  He advocates a balance when it comes to finances too!

Mr. Miller sent me 2 books (both autographed), but I’m only going to give away 1 book.  I’m keeping the other book for my kids to read (yeah, I think it’s that good). 

To be entered into the contest, please leave a comment, and you will be automatically entered!  Even if you don’t want the book for yourself, it’s still makes a great gift for a younger person. 

Next week, I’ll announce the winner!

-MR

Birthday Dividend Funds For My Kids

July 6th, 2010

For my son and daughter’s birthdays, they each get $10 for every year that they are old.  Actually, that’s not entirely true.  I’ve given them $50 for every birthday until their 6th.  On their 6th, I then give $10 for every year that they are old…  Once they hit 10 years old, I’m increasing the amount above age 10 by $20 instead of $10 per age.  So when they are 11, they will get $120 instead of $110 as before.

My Birthday Money Gift Schedule is below:

           
  Age Money      
  1 $50      
  2 $50      
  3 $50      
  4 $50      
  5 $50      
  6 $60      
  7 $70      
  8 $80      
  9 $90      
  10 $100      
  11 $120      
  12 $140      
  13 $160      
  14 $180      
  15 $200      
  16 $220      
  17 $240      
  18 $260      

this is simple enough, I’d like to make it more interesting.  So what I decided to do is start to invest my money into a stock that pays a dividend.  Then once the dividend provided by the stock is high enough, I’ll use that money to pay for my son and daughter’s birthday money gift.

I don’t expect to have enough money initially in the first few years, so that’s where the challenge will come from.  I need to find a source of money to put into the Stock Dividend Fund :)

Perhaps I will try to sell stuff on eBay again (I did this in the past).  That would be a fun challenge!  Or perhaps I’ll try to get a side job working at something.  What I don’t want to do is channel my earned income into the fund.  Between my kid’s 529s and brokerage accounts…  I’m pretty tapped!

Do you think this is a good idea?  And do you think that what I contribute for birthday money is enough?

-MR

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