Money Reasons

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Archive for August, 2011

Am I Really Uncomfortably Poor?

August 10th, 2011

On a recent trip to the library, I noticed a book called “How to Get Rich: One of the World’s Greatest Entrepreneurs Shares His Secrets” by Felix Dennis and on a whim I decided to borrow it (in the true sense) from the library.

It’s an interesting book because the author isn’t writing the book to become rich, so in my opinion that give him instant credibility. The book has been a good read so far, but what really fascinated me and what I’m going to focus on was his table that reflect his interpretation of Net Worth Wealth Scale.

Wealth Scale (measured by Total Assets):

Millions of Dollars	Category
2 – 4	The comfortably poor
4 – 10	The comfortably off
10 – 30	The comfortably weathy
30 – 80	The lesser rich
80 – 150	The comfortably rich
150 – 200	The rich
200 – 400	The seriously rich
400 – 800	The truly rich
800 – 1,998	The filthy rich
Over 1,998	The super rich

So based off his wealth scale I’m not even at the level of “The Comfortably Poor“, so obviously if I’m not “Comfortably Poor“, then I must be “Uncomfortably Poor“. Now granted Felix Dennis (the publisher of Maxim Magazine and other mags) is a Billionaire, so in comparison to his level of wealth, I definitely could be considered “Uncomfortably Poor”… Still this got me thinking about my current financial state and if I am truly “Uncomfortably Poor.

Being Uncomfortably Poor!

If I were to lose my job right here and now, I would be uncomfortable, that’s a given… and here’s why. I have a family of four to support, but without my current job, I really don’t make enough in dividends and side income to feed and cloth my family, let alone pay taxes. This means that I would have to liquidate my investment assets and starting the downward spiral on the value of my net worth. I would guess that after ten years of no salary, I would be penniless and extremely uncomfortable!

That said, I don’t think I would need a minimum of 2 million to be comfortably poor. I think I could probably get by with 1.6 million, especially considering how frugal I would try to be. Healthcare would be my main worry…

So while I don’t live paycheck to paycheck, I still have a large dependency on the paycheck provided by my employer. Eventually I would be uncomfortable, but not immediately…

So what do you think of the Wealth Scale provided by Felix Dennis? Are you (like most of us) uncomfortably poor?

Bests,

MR

20 comments »

Posted in Wealth

Tags: comfortably poor Felix Dennis How To Get Rich book poor

End of Summer – Last Night at the Drive-In

August 9th, 2011

Yeah, it’s only the start of August, but for my kids school will start early this year (in mid-August).

Drive-In

We just got back from Vacation and already it’s time for us to go on our last Drive-In theater experience for the year. Boy, this year really flew by…

Another reasons that we want to go now instead of some later movie is because “The Smurfs” are playing, and we thought it would be something that entire family would enjoy. So far, it’s pretty cool (I’m watching it and typing at the same time). I still have a hard time imagining Katy Perry as Smurfette, to me it seems like Jeniffer Aniston would be the more likely pick for that role.

Well, the movie has just concluded and to my surprise, it was much better than I expected. Admittedly, I came in with very low expectations…

I’m somewhat sad that this is the last movies this year that we will see at the Drive-In, but at least I’m not disappointed with the quality, it was a great conclusion!

Today, I decided to take a closer look at the wiring of the speaker system on the Drive-In poles. I was lucky because the particular pole that we used had it’s wires exposed. Based on the wiring, I’m guessing that it’s like an old christmas light string, where if one of the wires gets cut, the entire row goes out. What a fascinating system that had to use back in the old days.

Well, I’m back at home now, everybody had a great time.

Cheers,

MR

8 comments »

Posted in Entertainment

Tags: 50s drive in theater back to school Drive-In Theater end of summer

Anticipating A Large Drop in the Stock Market From the US Losing the AAA Credit Rating

August 8th, 2011

I’ve never heard of the US Credit Rating dropping from Triple A before, it’s a first in my lifetime.

I personally think that it’s the government’s fault for not being in touch with reality. For instance, while I can see the benefits in the healthcare reform, it comes at a bad time. In my opinion, it’s like throwing gasoline on a forest fire, obviously it’s not going to help and will definitely make matters worse. I also think it’s a bit silly to attack the restrict the banks. The banks provide the blood lines for our country. To attack them is like a dog biting the person feeding it. Then we have all of those lovely layers upon layers of complex innovation-restricting compliance laws… Like those are going to help, geez… Even the politicians can’t keep them straight…

Then we have the war that was based on preventing Iraq’s former leader (Saddam Hussein) from developing WMD (weapsons of mass destruction). It seems like we picked the one country that didn’t have such a program (but who really knows?). Do we really believe that a true democratic society will stay in existence in Iraq? Really? Or eventually will a Muslim Theocracy or another dictator come into power and pretty much control things from that point on? Democracy is like a plant than needs certain conditions to exists, and I don’t believe those conditions are in Iraq. Hopefully I’m wrong, but…

To me, it seems like both the republican and the democrats are going after their own agendas and casting a blind eye to the real problems in the US, which is the inability of the US worker to compete and acquire jobs, and obviously control our own debt.

Instead of looking around and solving problems, they are looking at their own party agendas with a level of tunnel vision that I’ve never seen before. The problem is that both parties represent different classes other than the middle class which seems to be getting a raw deal from both!

The government need to wake up and stop making excuses. The parties need to stop following their party agendas and look around and come up with new, smarter ideas from a global perspective. After all, the game has changed and both parties need to consider the up and comers like China and other emerging countries.

In the meant time, the US stock markets are going to get pummeled tomorrow (Monday). I wonder how much the markets will retreat and what, if anything, will stop a long continuous decline?

Update (still Monday): The market dropped as expected and surprisingly, I decided to buy some stocks. While not a huge position, I have to wonder if I’m trying to catch a falling knife?…

MR

12 comments »

Posted in Problems

Tags: losing AAA Credit Rating losing triple A credit rating

Yakezie Carnival Newbie Edition Spillover

August 7th, 2011

Here are a few posts from the Yakezie Carnival Newbie Edition that didn’t make the initial carnival because I was on vacation.

Sometimes errors to the spreadsheet happens and this one was caused by me being out of town with limited access to internet resources.

Isn’t it amazing how much we all depend on the internet for everything these day?!?

Without further ado, here is the rest of the carnival:

Sustainable Life Blog: Exercise Goal Setting – How do you set goals for exercise? Do you think they help at keeping you motivated?

PT Money Personal Finance: How to Find Time to Make Extra Money – Offers several strategies for finding time in your day for extra income earning activities.

Outlaw Finance: Where to Invest Your Money – Offers investment advice based on personal experience.

Deliver Away Debt: 10 Terrific Tips to Help You Stay Out of Credit Card Debt – 10 tips to help you stay out of credit card debt, even before you get there.

Stock Market Basics: Learn How to Invest Wisely – The article details the basics steps needed to start investing and the various forms of investment avenues that are available in the market today.

Little House in the Valley: Should Your Rent or Buy Your Textbooks? – An analysis on which is better; renting or buying textbooks. A cost analysis and some things to consider.

Free From Broke: The Best Credit Cards for College Students – What are the best credit cards for college students? I’ve listed some great student credit cards that offer up everything from cash back to rewards programs to low intro APR. See which credit card for college students is right for you.

krantcents: It Is Good To Be King! – It is good to be king or queen because you set the rules.

Our Journey To Zero: 130 Feet of Fun – What happens when my neighbors and I get together on a hot day? 130 foot slip n slide!

KNS Financial: The Treasury Department’s New Regulation To Protect Social Security Benefits – To garnish Social Security benefits can put many people in a financial nightmare. Find out how the Treasury Department plans to protect SS recipients from creditors!

Fat Guy, Skinny Wallet: How We Handled Emergency Travel Expenses – Recently, my grandmother passed away, and my wife and I had to travel out of town to attend the funeral. Find out what we did to cut costs, and avoid tapping into our emergency fund!

My Personal Finance Journey: Petsmart vs. Petco – Which Is More Affordable? – For many of us, our pets can be just as much a part of the family as a child (I am a dog-lover myself). As a valued member of the family, it can be very easy to spend large amounts of money on toys, clothes, bedding, food, and health care products for your pets. Two very common sources for these products are the stores Petco and Petsmart. This post takes a look at trying to determine which store will actually save you more money.

FamilyMoneyValues: Investing Basics – History of Wall Street – Investing in the stock market has historically meant using stock market exchanges (and for now – still does). What are exchanges and how did the big ones used today get started? Read this post for a short history of Wall Street and how it relates to today’s electronic market platforms.

Big thanks to the blogger at nodebtmba.com! Sorry, my bad for missing these excellent financial posts and bloggers!

Still reeling from vacation,

MR

3 comments »

Posted in Carnival

Tags: Yakezie Carnival

Money Saving Tips For The Summer

August 6th, 2011

In the current economic climate, most people don’t have as much spare cash as they would like. Indeed, debt management is a pressing issue for many families. If you want to make the most of the summer without overstretching yourself financially, there are plenty of things you can do. Reducing waste and taking advantage of the warm weather can save you money in a variety of ways.

Electricity and gas bills should always be lower in the summer. There is no need
to have your heating on at this time of year – if you do get cold in the evenings, simply put an extra layer on. If you’re too warm, on the other hand, try opening some windows before you resort to using fans or air conditioning systems. Also, make the most of the longer days by turning lights off and letting the sun illuminate your home. Making sure you’re on the best tariff for the amount of energy you use will also help keep your bills to a minimum.

One of the greatest pleasures of summer is, without doubt, the food. You can’t beat a lazy picnic in the park or a barbeque with friends and family when the sun’s out, but this isn’t always cheap, and there is always potential for waste. If you’re having a barbeque and you’re inviting lots of people, ask everyone to RSVP so you know exactly how many people you’re cooking for. You might also want to ask people to bring their own dishes such as a salad or dessert. However well you plan, there will probably be some leftovers, so use them imaginatively. In the long term, it’s cheaper to invest in a proper barbeque, rather than buying disposable ones.

During the summer months, you can also save money on transport. If you can get somewhere on foot or on a bike rather than using your car, you can cut costs and get a tan at the same time. If you’re heading to the seaside or somewhere else for a day out with the family, consider taking the train instead of driving. It may well prove less stressful, and you’ll get to take in some interesting scenery along the way. If you do need to use your car, ensure your tire pressure is correct, and improve fuel efficiency by keeping an eye on your speed.

If you haven’t arranged you’re summer vacation yet, why not consider a ‘staycation’? Instead of spending money traveling abroad, you could rent a cabin for a week or go camping. Make the most of the natural beauty on your doorstep – there are probably some amazing spots you’ve never even thought of visiting before. If you do decide to get out of the country, use price comparison websites to find the best deals on flights and accommodation. Don’t let your summer be ruined by debt problems – start putting these money saving principles into practice today.

This guest post was brought to you by Joel

Cheers,

MR

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Posted in Frugality

Tags: money saving tips saving money