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I’m trying to contact jerichohill. I’m assuming you’re looking at JD’s email. Can you send me an email so I can drop you a note in response?
Hey JD,
Long time reader, and first wanted to say thank you for all the advice. Thanks to you I’m not putting off my IRA anymore.
Saw your post a week ago about finance videos on youtube and wanted to give you a heads up on a site a friend and I launched in the past few weeks.
http://chime.tv
It combines 10 of the top video sites around the web into one place.
More specifically I think you’d find the following finance-related documentaries interesting:
The Money Masters: How International Bankers Gained Control Of America: http://chime.tv/doc/j4l2
Money As Debt: http://chime.tv/doc/j4kx
And any of the TEDTalks (which I recommend to everyone I meet)
http://chime.tv/tedtalks/
Take care and keep up the fantastic work
Your fan,
Taylor M
Hey JD,
Great site. I wanted to drop a line to give you a possible article lead. Recently I was going through my mortgage and noticed that our home owners insurance had crept up to $1500/yr. At that point we put together all of our insurance bills and it totaled over $4000 (car, home, life, umbrella, etc.)
After gathering up all our details we shopped around and brought the total down
a whole $1000).
It might be worth writing about. Perhaps with details about researching where to find insurance company ratings, and any pitfalls.
I am wanting to know more about tax-free municipal bonds.
How do I find and obtain them?
What are the ups and downs of owning them?
Thanks
Hi. I just read your blog for the first time. I am thrilled with it because I am hoping to start teaching financial literacy to at risk youth ( mostly teenagers who are ex-gang members or who live in very violent areas ). Your blog puts things succinctly and very simply and very applicable to life. What a great starting point !!!!!
Thanks you !
I have recently come into somewhat of a windfall - $25,000 lump sum payment with $3,000 monthly payments for the next 47 months (total value = $165k).
What would you do with this money to maximize what you get out of it?
Hi JD, I’ve been following your site and learning a lot of information. At age 28 I know I need to invest in retirement other than my company 401K. After reading your article on Roth IRA, I figured that would be my best option (index funds), but I also have an option to contribute to the Ohio Deferred Compensation Program at work (457 account). Which is the best option for long term growth? I do like that contributions can be withdrawn from the Roth if needed for buying my first house or other emergencies. I’m at a loss for which to pursue! Thanks!
http://www.43folders.com/2007/08/13/hanger-trick/
i know you’re on a kick to rid yourself of clutter, this seemed like a good fit.
I really like the articles posted here and
great post on health insurance. Now that I am planning to take a term / whole life insurance for me and my spouse, would appreciate any pointers in that direction. How do you decide which is right for you?
Hello from a reader.
I don’t know if you’ve already seen this, but today’s “Dinosaur Comics” from Ryan North (http://www.qwantz.com/) definitely takes a look at the lighter side of personal finance. Though you might enjoy.
Regarding farmer’s markets.
I went to my local one last weekend. I’ve been on a “reduce my footprint” kick lately, and I’ve been reading “A Year Without ‘Made in China’” so this time I paid more attention to where the goods are from.
While some of the goods were from within 100 miles, many were not. I found grapefruit that were from the Palm Springs area, about 400 miles away. About 2/3 of the items were truly local, but that was less than I had expected.
I believe if you are not in the Central Valley of California as I am, your choice in truly local produce would be considerably less.
Looking back, I remember going to the Seattle Public Market with my grandmother in the 60s. I remember getting avocados….and they don’t grow anywhere in
the PNW.
Bottom line is you have to ask where it was grown. Just because it’s at your local Farmer’s Market doesn’t mean the farmer (or more likely, middleman) is local.
Hi,
I was wondering if there are any fees/taxes that might make a Roth IRA
unattractive to a foreigner. I have a social security number and a
local bank account but will be returning to my home country next year.
Is it worthwhile to open a Roth?
Thanks for your time!
What are some of the current titles that you collect, JD? Love to hear about what you read.
Also, what plugin are you using for followup comments via email? I’m trying to find the same plugin to use for my blog. Help a comic lovin’ brothah out?
Hey, JD! I was wondering if you could review the following book, “Cheap Ways To…”. You can find it on Amazon or just do a quick search for it. I think it’s a nice book on how to save on stuff, and I’d love to see your review and spin on it.
Thanks!
Can you discuss pre-nuptial agreements? I know a lot of your readers are very financially savvy, and I’m wondering what their take on pre-nups is. Maybe a pros/cons type of discussion. Thank you.
How do I get the VIP code, to sign up for the forum ?
Do you take submissions for guest writers? I’d like to write an article for your blog about saving money by getting rid of cable in favor of antennas, and why digital TV makes this a very viable option.
In a bigger sense, it would be an article about up-front costs, versus monthly charges.
http://cornerscribe.com/wordpress/2007/10/17/financial-planning-and-writing/
Thanks for the great site and contest. Above is my entry for the Wii drawing.
http://lisetiffner.blogspot.com/2007/10/get-rich-slowly-writing-project.html
I wanted to enter the contest for the HOW TO GET RICH FORUM. However, the system is saying I have to call or contact them to activate my account. Anyways I wanted to join the contest…See below…my story…
Thank You!
Kimberly Labra
Back in 1970’s life was hard.Mother told us stories how hard it was to earn sleazy dollar. Fathers on the other hand blessed with inheritance. Parents wed 1972 couple months later father enlisted in the military. Each time they rec’d paychecks deposit to bank. They were precise at spendin money. They purchased their home in 1973 & had leased house out & till this day. They also saved efficiently not outsourcing agents; & father’s brother portray in management. Imagine their profitable gains & top it of they’d both work everyday of their life. Finally they decided it was time a wealthy retirement. Father at 62 is retired military with indefinite military privileges & also lookin into retirement with US Gov’t & planning to withdraw investments.Mother at 60 also retired from Hilton Hotel & collecting benefits from SSI for Disability. Still reluctant on how they spend their money. I would say,it took a while to get there & with the hard work & investments its payed off. They’d set their goals, analysis their budgets,created a plan & stuck by it until the end. They are now living off from their investment & their retirement. I have learned much from my parents. “The apple never falls far from the tree.”
same question
How do I get the VIP code, to sign up for the forum ?
thanks rob in madrid
How to avoid getting extra dollars added onto your tip at a restaurant. Use a simple checksum.
http://www.punny.org/money/fight-thieving-restaurant-servers-with-checksum-tips/
Fast, easy, and can save you real dollars.
I just saw a 30 minute DVD ad about Money Merge Account which was introduced to me through friend. It is another way to reduce your mortgage interest but at a faster rate than the biweekly program or by paying extra funds towards your principle. I just want your opinion about this program. What are the pros and cons.
Thanks,
Bobbi
“fast and without cash, that’s how I play”
Not sure if you’ve seen the commercial for the new monopoly game, but that’s the tagline by a little girl.
For the ad:
http://www.youtube.com/watch?v=yS_APB09Ndc
On a side note, been following you for a few months now; great site, posts and tips, thanks! Heard you’ve dropped your day job and now a full time blogger, congrats!!!
http://www.groceryguide.com/
http://www.seat61.com/
I love your site and am in the process of starting a blog detailing my fiance and I financial journey. What hosting service do you use, and do you use wordpress or is this blog offered by your hosting company? There are so many to choose from and I would appreciate your opinion.
I just recently began looking at your site. I like what I’ve seen but I need to know about your legitimacy, safety, reliability, and trustworthiness. Can you provide me with ways to accomplish this?
Thank you,
Gayle
Hi JD. I love your blog. I have begun keeping track of my personal finances and will be out of credit card debt as of 01/15/07!!!! The most important things I’ve learned from your community are: 1. Pay yourself 1st, 2. Snowball method for repayment of old debt, 3. Stop acquiring new debt. I came across this list of 101 new uses for everyday items that I wanted to share with the gang! http://www.realsimple.com/realsimple/gallery/0,21863,1030084,00.html
Thanks for your inspiration!
Freddie
i am having a major financial awakening from what can only be described as the worst financial nightmare of my life. i am buried unfiled taxes, paperwork that includes receipts, statements, ect, and the worst part, credit card debt w/HIGH interest (over 30%) to the tune of $40,000. please advise me as to my logical 1st step. i spent yesterday looking back through my bank account and the past 3 mths of expenses so i have a pretty good idea where my $ is going. however, i want to stop the bloodletting asap.
thanks for any advise, comments or recommendations!
a few days ago the significant other and i were discussing our current 401(k) paycheck with-holdings, as a kind of side note she said “and then there’s also a little bit of social security too.”
my question: i’ve always just assumed ssi would not be there by the time i retire (we are both 27); i’m wondering though, do others?
I was hoping you would contact me to discuss Forbes.com’s new initiative-
Forbes.com is building a blog network, comprising of best-of-breed financial and business blogs- there will be many advantages to this network, including the targeted financial/business ads that Forbes.com will be serving across the network. The purpose of this network is twofold: one to provide users with Forbes.com, with unique content while driving more traffic to you —as well as ability for you to further monetize your blog with higher CPM, etc.
Please let me know when you’re available for chat- but please be specific as to time in the next day or two–
many thanks
Printer Friendly buttons would be nice. I like reading your blogs/stories, but reading everyone’s comments below the blog isn’t something I have time for (or want to print out).
Okay so im sitting here at 11:41 Est time and reading your blog for the first time. I found your site via Lifehacker.com. I too am in debt far beyond I ever thought I would be. Currently we are $130,000 dollars in debt including mortage. I have cut all my non essential expenses. The only bad thing we are living pay check to pay check. I cant seem to be able to put anything in savings with collections calling daily pushing me to pay off some of my debt. Last year we rolled a car payment and 2nd mortage along with most of our credit card debt into a 2nd home equity loan to the tune of $76,000. Thank god for my parents we were headed for bankrupcy. I started a tech blog to help raise a little extra money. I also do Computer Consulting on the side plus my full time job. I dont have much time for sleep, let alone be able to sleep because of the constant burden that my wife and I have brought upon ourselves. Do you have any suggestions on how I should get started on turning everything around. I feel like I’m drowning a very slow and painful death. Thank you in advance for any help.
I have been enjoying reading your blog on a daily basis. Thank you for
taking the time for the insight and information.
I did some search through your articles, but didn’t see much reference
to saving for a eduction and what options their are out there. Do you
have children? I have not done much research on this subject, but I
have a 4 year old and 2 year old and this is one thing that worries
me.
I feel that I am much like you and can relate very well. We have a
mortgage, car payment, student loans, a little credit card debt (which
will be paid off in Feb), and a small savings rat holed away for each
child and us. This last year my wife and I have been determined to
reduce our debt and build a future for us, with a year of diligent
money tracking and analyst, we are starting to see the light at the
end of the tunnel and gaining ground.
It would be great if you could post some info about saving for
education and what options are out there for the average guy like you
and I.
Hope all is well and wish the best for you and your family this
Holiday Season. Keep up the good work
Setup a Sharebuilder account today!
JL
I’ve been following GRS for the past few months, I enjoy the posts and I’m glad to see Get Fit Slowly, this is exactly what I need! I got out of all debt except my mortgage this year but the extra pounds still linger and it’s time to get rid of those too. It might be interesting to see if there’s a correlation between being in debt and being out of shape/overweight. For me, I’ve been in debt since I enrolled in post-graduate school in my mid-20’s and finally broke free at the age of 46. I’ve been thin, a triathlete, and overweight while being in debt, but it feels much worse to be overweight and in debt. Like all areas of your life are out of control at the same time. I plan to follow your fitness journey picking up helpful tips for my own. Best of luck, jd, I value the work that you’re doing!
I thought you may enjoy this video of Credit Card National bank — a parody of bank commercials with the reality of debt repayment.
http://www.youtube.com/watch?v=lgu6NcgE2ek
Hi,
I have been reading your blog for a while. Im in the England. I wanted to start organising my accounts / finances but am unable to use quicken as they have stopped publishing the software in the UK. Can anyone suggest another bit of software to help me?
Thanks in advance.
Tony
JD,
Congrats on being featured in the Jan. 08 issue of Money Magazine (page 68)!
I have been a longtime reader of GRS and truly enjoy. Keep up the good work!
Rob
I think it would be a good idea to put a link to get fit slowly on the front page here.
Hey there. I have a question for you. A little bit about myself first. I am a first year pharmacy student at a top 10 Pharmacy school here in the US. I am 21 years old. When I graduate school in 4 years, I will be earning anywhere around $70,000-$110,000 a year. I have no debt besides a few student loans, which arent a problem.
I was wondering if you could recommend a good book about finance in your twenties. This is a fair amount of money and I would like to invest at least 30% of it. However, I am relatively new to the whole finance scene, and need a book geared towards someone my age. Any suggestions would be appreciated. Thanks. -SAC
Sac,
I highly recommend “Get a Financial Life” by Beth Kobliner. She has a companion website: http://www.kobliner.com/. I read this book and it is a wonderful starting point.
Rob
I’m 19 years old and have been frequenting your blog for about a month now. I’ve read a lot of the archives and done some personal investigating on my own about investing firms and what not.
I have a few quetions that pertain to advice I’ve read on your blog posts.
1. I have a Shell card, cash back discover card, Victoria’s secret card and my debit card.
I buy gas about twice a month and pay it off as soon as it hits the statement, I use the Discover card for rather large purchases mainly because I know I’ll have to watch the bill and I am attempting to earn the cash back. I got the VS card because the salewoman haggled me into it but I haven’t used it yet. I do these “buy it” then pay it off before they get any interest out of me because it is my attempt to build credit. Would I be achieveing the same goal by leaving the accounts in good standing without ever using them…?
2. Health Insurance. My job does not provide, but I make good money. My university plan is more major medical and not a good plan. I bought a Blue Cross “HMO” point of service plan for $175 a month that gives prescription coverage, decent copays, out of network coverage, hospital & out patient, ETC. It seems like a really good plan.. but my question to YOU is what about a low cost high deductible plan?
I enjoy your blogs, keep em coming! I look forward to your response..
N
I was just thinking about holiday budgets (and realized it must have been ask metafilter rather than grs that I was reading about that, but I thought you’d be interested). I guess it’s sort of a money hack.
In my family, we’ve always had the rule that you couldn’t buy anything for yourself in December. The rule was to keep you from ruining any surprises that people had gotten you, but I just recently realized it also helps divert that same money that you’d spend on yourself to presents for other people. (This probably helps more for people who don’t save for gifts year round.)
Anyways, just felt like sharing.
Re Ultimate Cheapskate….I’ve heard of a guy,
to save on his electric bill: recharges his cell
phone at the office! That’s a cheapskate!
My “cheap trick” is to ask the Supermarket baggers to DOUBLE BAG (in plastic bags) my
groceries. I re-use said bags for garbage
discards, hence never have to buy garbage sacks.
please STOP the e-mails….too many!
I tried the link…said I was unauthorized!
PLEASE STOP your e-mail copies!
STOP the e-mails!
Hey JD, I just wanted to ask you how long you’ve been writing this blog. If you have any tips for how you’ve accumulated so much traffic in a short time, I’d love to hear it. I know all of the stuff about writing quality content that people want to read and all of that good stuff. But, moneycrashers.com has not seen 1/1000 of the amount of growth that yours has seen, and I just wanted to know if you had any ideas for the site that you could give me. I enjoy reading the blog. Take care.
JD - Like others, I commented on one thread and clicked the “notify me of updates” checkbox for that thread. I occaisionally get email updates for new comments on *all* threads. Not all the time, but enough to be annoying.
Could you post something on your front page blog alerting people that you’re at least aware of this problem (as I assume you are by this point)? It’s very frustrating since this has been occurring for awhile now but I’ve seen no notice or indication that it’s a known problem. Letting people know you’re aware of this issue (even if it takes awhile to track down and fix) would definitely help.
I really enjoy your blog and the discussions in the threads. I would prefer not to have to unsubscribe to the threads I want to follow but I don’t want unnecessary storms of emails everytime any of the threads here get additional comments.
JD,
I just stumbled onto our site and I’m glad I found it. In February my wife and I will just have a house payment to make. We will be free from the car payment and we don’t have credit cards. I’m not boasting, I’m actually concerned about what is next…extra money. We need to continue to make our money work for us and I’m not sure where to start. We have two kids and some retirement and we need to be able to help others. What would you do next?
thanks and God bless,
dc
I’ve registered on the forum but can’t sign in. What’s wrong? Have tried several times for the last 5-6 days. Still no luck. Fix it please.
Hey J.D.,
I’ve been reading your daily postings for a few months now and I love it. You keep me grounded and it helps me ward off the temptation to spend too much money. I’m right out of law school and recently married. I’m paying off my student line of credit, but also trying to save for the future.
I know that one is supposed to keep throwing money into their ETFs during a downturn, but it seems like the downturn has just begun and the market is going to continue to fall further.
Maybe it would be prudent to save the money I would invest and hold off purchasing my ETF shares until the market plummets further.
Its risky, because it may not plummet further, but I just have a hard time investing in something when I’m fairly certain its on a downwards slide.
Any comments or suggestions?
I was looking to open an online brokerage account and wanted to know what you think is a good place to start. I have heard Etrade, Sharebuilder, or Zecco. What do you think? Also having little investing knowledge, what investing book do you recommend reading first. I saw the list of 25 recommended books, and am still undecided which one to pick up first.
Thanks
Jason
Hey I needed some advice…
I have an average amount of credit card debt…is it better if i pay off the whole amount in one go (tht would leave me with no savings for feb) or should i make installment based payments. I realise the upmaking month bill is goin to be considerable so i was wondering if i shud just pya it off in one go….or save some then pay it off in parts…
wht wud u suggest? can u contact me via email please
Hi JD,
I am planning on opening an ING savings account this weekend with a portion of my tax return(!), and I remembered that you had an offer for referrals, and wanted to know if I could do that, that way we both can get credit for it! I know that I read it, but didn’t know how to locate the post!
Thanks!
Greg,
Was your problem resolved?
May I ask, what is your first and last name?
I thought maybe I’d find it somewhere on this site, but I can’t. Or do you always go by JD?
Love the blog… Thought you might be interested in this link:
http://lifehacker.com/350190/always-check-for-recalls-on-your-broken-gear
Roger
Hi,
I left a comment on a blog entry here a couple of weeks ago. My name is Pamela Capalad and I started a blog recently called wealthygrad.com and I expressed interest in possibly becoming a guest blogger.
I just posted a blog entry you might be interested in called “Why You Need a Financial Planner and How to Find a Good One.” I just taught a women’s financial literacy seminar this past weekend and it was the number one piece of advice we gave them.
Anyway, if you have time in your busy schedule, please check it out: http://www.wealthygrad.com.
Thanks.
Pamela Capalad.
Hello,
I am the founder of DollarCamp, a crash course seminar for high school students about money. We teach kids how to stay out of credit card debt, control their spending, and begin building wealth.
I am interested in networking with people interested in financial literacy and in spreading the word about our program.
We have two websites:
1) DollarCamp Seminars: http://www.DollarCamp.com
2) DollarCamp Books: http://www.DollarCampBooks.com
Many thanks,
Stephen Epstein, DollarCamp
JD,
I was searching for a site that would lead me to the investments of our US politicians and found your thread from 2006 about the subject. I have never really subscribed to a blog, so forgive me for some of my inexperience.
Anyway, the reason I got onto this subject is that I have one of those friends that is “the man on a hill”. I don’t know if you have heard that term in all of your financial readings but I read it somewhere when I was on the path you were when you were reading everything about wealth (Millionare, Rich Dad, etc) Anyway, short story he is a friend from church who bought a janitorial franchise when he was 25 with $8k he borrowed from family and then worked he backside off and retired at age 32 with a $10k per month passive income whcih continues to this day. He is now in his 50s and loves to give free advice and share his stories (as well as marriage counseling, etc) anyway, my point is that he told me when he first started making good $ he subscribed to what he thinks was Kiplingers and they had a service that provided the investments of our politicians, along with full copies of their tax filings. He said at that time (the early 80’s) that a majority of politicians had owned gold and real estate…I came home today to see if I could find current information to see what was happening today and I couldnt find anything about what politicians invest in except common mutual funds and a few large real estate trusts, or private notes…I couldnt locate the tax returns in detail, just a couple for Bush and Cheney that were only two pages…I would like to be able to link up with the information I am trying to find on the non stock market types of investments that politicians are holding today. Also its a bit ironic that I found you, I am just south of Salem, and if you know the area, my friend owns 100+ acres on Ankeny Hill, which has a full view of the refuge… its very cool and he is a great friend anyway, I hope you get this and someone out there can help me in my little research project. My friend invested as the politicians were and has come out very nicely over the years. He says they always protect themselves and that was his philosophy on investing… thanks!
Hey JD,
Great site! It’s become a daily reader for me. For the past year we’ve been trying to get our monthly expenses down as low as possible and we’ve had varying success. One thing we’ve done is work on our cable and internet bill. Through introductory deals and haggling, we’ve been able to cut $360 off the next 6 months, for the same services! Thanks for your advice. I just have to remember to keep on it in 6 months time when the deals run out.
Also, for the past year we’ve been saving a ton of money on our grocery bill by running a little co-op. About twice a month we collect about $30 from 5 or 6 other families and go down to our state farmer’s market. The local farmers have some good stuff but the farmer’s market is also where the local produce wholesalers are. After asking around, we found one that will sell to us at wholesale prices and just charge the sales tax. We’ll buy about $200 worth of produce and split it up between the families. For $30 each family gets tons of fresh fruit and veggies. A great example of the deals we get is bananas. A case of about 16 bunches costs about $11. But who will eat 16 bunches before they turn brown? We split the cost and the bananas up 5 ways and everyone gets 3 bunches for a cost of only $3.20/family. Compare that with the grocery store price! Peppers, apples, tomatoes, lettuce, you name it they have it. It’s also usually fresher than in a store and we understand the seasonality of some items better in relation to their price. We also eat much better for snacking because there is more fresh fruit in the kitchen. We cook and eat at home more because we have to use up the vegetables before they go bad. We have found that larger families and those with growing kids work the best for our group because there is always so much every time we go. Even with 5 in our family we often have to put some bananas in the freezer for banana bread because we couldn’t eat them all before they got soft. Then we have nice homemade banana bread!
Keep up the good work!
~james
I recently read an article about the popularity of retiring overseas because the cost of living in many countries is lower than in the US allowing you to retire with less in the bank. I would love to spend my years abroad (Rome in particular) but is this feasible? Just curious if you (or your readers) have any thoughts on the subject.
Hi There,
I’m writing to let you know about a great program that Real Simple magazine has created called Manage Your Money, Manage Your Life. This 14 month program is sponsored by Discover Card and features a wealth of tools and tips to help organize personal finances. Monthly topics range from holiday shopping to preparing for tax time and a dedicated website (www.realsimplerewards.com/Discovercard ) hosts downloadable forms and checklists as well as videos from Real Simple and Money editors as well as independent financial experts in upcoming months. I hope you’ll take a moment to explore the site or pick up an issue of Real Simple where you can see our monthly insert. We really want to spread the word about financial organization and empowerment to women but the information available is really great for anyone looking for advice/tools. If you have any questions or would like more information please don’t hesitate to contact me.
All the best,
Thom
Frugality for Star Wars Geeks:
JD you do a lot of excellent posts on frugality and maybe you want to link to this for your geekier readers:
http://www.wisebread.com/9-ways-star-wars-can-inspire-you-to-save-money
Hello JD
I really like your blog. It’s good you keep it consistently updated and provide useful advice for your readers.
Just curious, I have a friend who has written a personal financial handbook which is very straightforward and simple. Its a practical, easy read for most folks. If you have any extra time could be so kind to check out http://www.ask-a-financial-planner.com and tell me what you think?
Thanks!
Chad
Where can we find “Ditch your bank for a credit union”
Hey JD, was wondering if you can get your readers (or yourself) to help me decide something. I’m in the process of buying a home and would like to know if it makes sense to take money out of my 401k to use as down payment. I’ve heard the argument of possibly missing out of potential earnings if you were to take money out, but at this point in my 401k, i’m actually losing money (-7.3% currently). And I expect it to be negative for a while until the market gets better. So with this in mind, does it makes sense to borrow from 401k and use it as down payment? I will be a first-time homeowner and made an offer on a 3/2 condo for $195K in southern cal (foreclosed home).
Hey JD - can you write something about the pro’s and con’s of long-term disability insurance? I’m getting very mixed advice about whether or not to buy it I’m 35, single with no dependents and I have a white-color job.
Thanks much, read the blog every day and love it!
Hi! I am really enjoying your blog. Thank you for inspiring me to reconsider the way I live my life. I was wondering if you had advice for people who remain in debt from visiting family (plane tickets), or keeping up with the social demands of my friends. It seems like I end up scraping the barrel because I feel obligated to my community. How can we keep family and friends happy without the embarrassment of saying ‘no’ to group events because of the money involved?
Hey JD … over in square foot gardening I tried to edit an entry but took too long, so I can’t save the changes. I posted them to a subsequent comment … please delete the first one - it is too long. The second one might be too long, too, but I’m out of time to edit it. See ya’ round!
Bill
Hi,
I like this site and the articles being discussed here.
Good Work.
I have a small suggestion.
I know lot of discussion is being made about saving and investing money.
Can you also discuss and talk about small businesses and woman enterpreneurs who have been sucessful and unsuccessful so that it can be an example for others who are interested to follow that path.
Thanks,
welcome
I thought this would be of interest to you and your readers:
http://www.gsb.stanford.edu/news/research/khan_shopping.html
I think the psychology of “shopping momentum” is probably pretty similar to other bad habits that manifest themselves in binges.
John
hey guys,
your blog is AMAAAAZING !!!! I am about to start my very first Roth IRA along with starting my portfolio. After doing some reading, I’ve learned that Fidelity, Vanguard and T. Rowe Price are the three largest and easiest companies to start out in.
I’d like to you know from you - and the rest of your readers if one is better than the other ? I’m wondering which company is easier to deal with, customer service etc….
Any personal experience on this topic would be greatly appreciated -
thanks so much,
Deb
Deb - I would say Vanguard, no doubt. Lowest fees, and great service. Search the blog for more on Vanguard, but every smart person I know has their money at Vanguard.
Cheers!
Hello!
I would like to commend you on your website and newsletters first off. I was just referred to you. Fitness Together (if you have not heard of us) is the worlds largest personal training organization. We have very high end, exclusive personal training studios – over 600 sold world wide. We have over a 98% success rate with our franchise. Our web site is http://www.fitnesstogether.com and http://www.ftareadirector.com. If you approve of what we do I would like to speak to you about being on your web site.
I look forward to hearing from you soon!
JD,
I signed up the other day for your forums and I think the activation e-mail may have gone into my spam (which gets deleted immediately), I turned that off and have been checking my bulk folder, but so far none from this web site to activate. If the e-mail to activate is sent right away, I have a feeling that’s what happened. Otherwise, maybe it gets sent out later, although I’ve seen registered users with posts join after me.
Thanks,
I am a college student looking for a credit card that would be the most beneficial to me in terms of rewards. I am not trying to ruin my credit and go on ridiculous shopping sprees that I can’t afford. I’m just looking for the most rewarding credit cards. Could you be so kind and write an article about that sometime in the near future? Thanks!
Hey - quick question about your blog. What software/site do you use to manage it? I’ve been thinking about starting a blog of my own so I’m polling a few of my favorites to see what they use.
Thanks!
Dear JD,
As the Vice President and co-owner of East Side Athletic Clubs, in Milwaukie and Clackamas, I am writing to address the blog you authored titled “Ads I Hate: East Side Athletic Club”. After reading your detailed description of your less-than-positive experience in deciphering joining fees it is quite apparent that both our verbage and our fee classifications are confusing. (at least to you and possible to others as well). Obviously our team member was unable to explain the difference between an enrollment fee and a set-up fee, moreover, possibly the labeling is just too complicated. I appreciate your thoughts and intend to re-phrase our discount programs with clarity as a primary focus. This extremely competitive market finds all clubs discounting much too much (in my opinion) and the consumer, at some point, will suffer with lack of service, cleanliness and professionalism overall. Our community-minded facilities have been servicing all generations for more than 30 years in this marketplace and we continue to work hard to improve with each new year. Our fees, as you stated, are higher than some but as you well know with any purchase decision….you get what you pay for and I believe we are positioned differently from our lower priced competitors. Regardless, I appreciate your opinions related to pricing and do hope that you, personally, elect to continue exercising “somewhere”…..because in the long run that’s what it’s all about. Don’t “pay and never go”….stay ACTIVE….in any and every way. I’m grateful for our more “positive” reviews but also know that we can only improve as we hear all “voices”. Be well.
Hey, JD, I am not sure of whether I have commented here before, but I love GRS! Just thought I would send you a link to a current index card graph on “Indexed”:
http://indexed.blogspot.com/
that I thought you would like:
http://indexed.blogspot.com/2008/02/joy.html
I think it captures the essence of GRS and spending less than you make.
JD I thought you and the readers would like this idea behind this story http://wcco.com/consumer/frugal.february.save.2.667520.html
The basic overview is this family stops spending money in the month of Februay this lets them look at spending behaviors and clean out stocked up food items they have collect over the year ect. Its a short read.
I’m 22 and have started working on obtaining financial freedom. I am finishing my Bachelors Degree, am paying off all my debt, and have started funding a roth IRA based on advice from your blog. I enjoy reading the articles on this site, but I recently stumbled on some credit card information I didn’t know about.
My first card was a student visa with a high rate (14.9% Apr). I had this card since I moved out and decided it was time to replace it. I got an offer for a Chase Visa with 1 year of 0% apr and a 8.9% fixed apr after that. I have now paid off the student visa and no longer use it, but I am carrying a balance on the Chase as I am working to pay it off.
What I didn’t realize (my mistake for not reading into the fine print), is that while the card is 0/8.9% apr on purchases, it is 21.9% apr on cash advances. This means I have $140 accruing high interest which I can not do anything about until I pay off the $860 I have at 0% apr. I consider myself to be financially aware and always learning, but this seems like a big caveat most people may miss.
Hope this inspires others to read more carefully.
Just so you know, there’s a technical error on the “How To Inoculate Your Children Against Advertising” story. Every time I click on the comments (or click on the headline that links me to the article with comments), it takes me to the page logged in as you, giving me the power to edit the story and to edit, spam, or delete the comments. I’m pretty certain you don’t want me to have this power.
Hi JD,
Awesome website, super helpful! I had a question that I was hoping you might be able to help me out with…maybe find some info on it I haven’t been able to. I’ve been spending a ton of my time as a volunteer for a nonprofit (read, 0.00 pay) and i was wondering if there was some way to write that off somehow??
Rock on.
Hi JD,
I have been reading your blog for a couple of months and find it very
informative and motivating. I came across this documentary and wondered if you knew about it. I haven’t seen it yet, so I can’t give my opinion, but it sounds like it could be a good documentary to review.
http://www.indebtwetrust.org/index.php
Hi JD,
I’ve been very impressed with your blog and Zen Habits, both of which I subscribe to. I’m trying to learn from you both. I have a question: when you have a guest writer, who do you this? Do you contact the writer and ask permission? Do they contact you? How does this work exactly.
Thanks for you help and good luck with your new full-time venture.
Hi JD:
I have been a long time reader of your site (although I don’t think I’ve ever left a comment on here). In fact, I liked it so much I started a site of my own: http://building-our-empire.blogspot.com. It has a little bit of a different angle than yours, but is centered on building wealth, ridding yourself of credit card debt, and increasing revenue streams. If you would take a look and give me a shoutout I’d be more than happy to link to your site on my site and give you a great review (truthfully I’ll actually probably do this anyway).
Anyway, great site, keep up the good work!
JD:
Imagine: I’m in debt up to my neck, say hundred’s of thousands of dollars. All my credit cards/lines are maxed out, and I don’t have cash to make payments on these debts. Another creditor steps forward and says, “OK, I’ll issue you another $100K of credit so you can maintain your lifestyle and make minimum payments on your other credit accounts.”
Of course we’d label this as absurd - all for the sake of “liquidity”. It is just compounding the problem many times over, and making the impending crash that much more catastrophic.
Why, then, does the FED take this approach with regard to our national economy? See: http://www.reuters.com/article/ousiv/idUSN1155480820080311
Dear J.D.:
Your post about “A Tree Grows in Brooklyn” brought back some sweet memories of old-fashioned saving. By coincidence I wrote something similar this week on a blog I do for freelancers, independent workers, and anyone who is self-employed, entitled freelance-finance.com. The post deals with a famous work of non-fiction that won a Pulitzer. Here’s the post:
http://freelance-finance.com/2008/03/08/how-to-save-money-the-old-fashioned-way/#more-48
Thank you for such an enriching website. Best wishes,
JD aka “Muck”
Hi JD,
The latest episode of the wonderful comic Cat and Girl (by struggling artist Dorothy Gambrell) is about needs and wants. Might be appropriate material for your blog:
http://catandgirl.com/
Cheers,
Jan
Hi JD - at a library booksale yesterday, I found a like-new copy of “Bogle on Investing” for 50 cents! I’m not interested in it, but I’d like to offer it to you or a reader as a prize if you’re running any contests. I’ll ship it anywhere you tell me to.
I do this because I feel I owe the community something for all the help I’ve received over the last year and a half. My credit card debt has been shredded, my wife and I are on the same page about expenses and budgeting, I’ve got 10% of my salary going towards retirement, and I sleep a hell of a lot better than I used to. A huge part of that is due to you and the other folks that make GRS great.
trb
I see your article on Pear Budget. I was wondering if you’ve tried the Budget program put out by Snow Mint http://www.snowmintcs.com. I’ve been using it for a year now, and they seem to do very similar things. Do you know which is better?
Thanks,
NB
Great blog. You’re in my top 3 blogs. I’m 16 and wondering what I can’t and can do or should and shouldn’t as on now. I think this would be a wonderful article.
Peace,
Jeffrey
I found Moneyless World blog, by a guy who lives with absolutely no money, mostly through camping and housesitting. You might be interested: http://zerocurrency.blogspot.com/
Help, we have always sent out mortage payment on time and lately they have received it late. Now they want to make us pay late fees. They get in time they just don’t process it till it’s late. Hlpe anyone. We want to know the law that protects us, we can tell the bak to kiss our a**es
amid the ongoing meltdown, the only option has been lowering and more lowering of the fed rate. i’m wondering what the effect would be if they tried Raising it? maybe a future post? thanks
First of all, I love the site. Lots of good information there for someone wanting to dig his way out of debt. It’s become one of the sites I visit daily.
I had one comment about your hyperlinks. While I can appreciate the need for an aesthetically pleasing color scheme for your site, I find the green-colored hyperlinks to be almost invisible because they look so much like the black text. There have been a few times when I’ve gone back to a post and realized I missed clicking on something because I didn’t realize the text was actually a link. Have you considered underlining all your hyperlinks so that you can keep the color scheme while still making the hyperlinks easier to find?
Hi JD,
Just thought I would send an interesting link your way….
http://blog.mint.com/blog/finance-core/30-free-ebooks-to-learn-everything-you-want-to-know-about-personal-finance/
…. “30 Free eBooks To Learn Everything You Want to Know About Personal Finance”
I have only downloaded and read one of them so far so I can’t really give you a review of the quality of the eBooks.
I’ve noticed your posts are a lot longer now that you’ve moved to full time blogging. I’m not sure this is a benefit, the beauty of your site (and blogs in general) is that they are quick snacks of reading, not an entire meal (like a chapter in a book).
I’ve found that I pop over and read the title now and maybe the first paragraph - whereas before I would read the whole entry no matter what it was about. Just my constructive criticism.
I wanted to ask you about your blog startup. Did you use a free service at first, like wordpress or blogger, or did you go straight to buying a domain? I was curious if was possible to develop a solid reader base on a free site.
Thanks for the great blog.
Padma
This is a good documentary about the roots of American consumerism, mass marketing, and public relations among other things, and how psychology has played a large role in it, specifically Freud’s ideas.
It’s four parts…here’s part 1:
http://video.google.com/videoplay?docid=8953172273825999151&q=the+century+of+self&total=1657&start=0&num=10&so=0&type=search&plindex=0
It’s called The Century of the Self. Very enlightening.
Hi JD,
As a fellow weight-losing, debt-fighting, blogging Portlander, can I request a shout out to my own blog.
I’m not sure if you saw Steven Levitt’s (of Freakonomics) article on stickk.com, but I’m blogging about using the service in my weight loss.
I’m not affiliated in any way but my new membership, but I’m offering a prize drawing to feedburner-registered readers over at my blog.
TIA
Joe Kennedy
Love reading your blog.
Spotted this today.
http://www.cnn.com/2008/LIVING/wayoflife/04/03/frugal.strategies.ap/index.html
I love your blog. You’ve made some excellent advices. Keep it up. I’ve suscribed for updates and I’ll add you in my favorites. By the way, I haven’t searched through your archives, but have you made a list of recommended “must read” financial books? I want to empower myself by acquiring additional financial knowledge.
J.D. excellent content.
Unfortunately, as “Is a Money Merge Account a Good Way to Pay Off Your Mortgage?” has climbed the Google rankings… it has been increasingly getting spammed by lying scamming shills attempting to promote their wares.
Post #671 is a perfect example of the “I’m not a client, but I know this is the greatest thing since sliced bread” con game… thought there are others.
I think some editorial/ ad ministerial oversight is likely warranted… at least the deletion of the most blatant shill postings like #671.
Thanks, and keep up the good work!
Hi JD -
I’m wondering what one must do to write a guest post on this blog. I understand that you have a gazillion readers (or, maybe, 54k, which is nothing to sniff at), and that you have loads of guest posts to sort through already… but that’s good, no? That means you can take a vacation sometimes!
ANYHOW - I would love to be contributing writer and have a guest post at some time on your blog. Should I just send one in and maybe see it in a year? Or do you prefer to contact only those writers that you’ve found yourself?
Any guidance would be great. I write about many topics over at my blog and would be happy to write on any topic you requested.
Thanks!
Cnn Personal Finance has a great credit card artical about the best cards. I know you dont like them but I have never carried a balance and love when you can get something for nothing. I am thinking about the Fidelity card where in you get money placed in an investment account of your choice. I think its a great way to get a little retirement account you dont have to think about puting money in.
JD,
Every time I try to post some ING links, it gets marked as spam. Is it something I am doing? I posted other comments and had no problem. It is only in the last 2 weeks that I have had the problem. Can you help?
Thanks
Congrats on May “Money” magazine’s Best Money Blog mention in their Best 100 listings. Page 120 Add to your clipfile.
“His smart, can-do postings are stuffed with helpful resources and contagious enthusiasm about the joys of financial freedom.”
Yea!
I was wondering what software, now that you are self employed, you will be using to manage your finances? I am looking at Quicken Home & Business, but I’d prefer an online soulution. Got any recommendations or products you would suggest evaluating?
Enjoyed having lunch with you today…that is, reading Money Magazine while eating my salad. Kudos on the great shout out from Money for “most inspiring” money blog!
I am a 6th grade teacher who wants to do a month long lesson on financial education. I was wondering if you have any thoughts and/or ideas as to what you think should be stressed at such a young age? I have broken my lesson down into income, savings, and investing. I hear alot of people say it is important to teach financial education but I find hardly anyone doing anything about it. Do you have any tips or could you ask your readers to send in their thoughts? Anything would be appreciated.
Kindly,
Ryan
JD,
I keep reading that I should retire all of my debts as quickly as possible, but I wonder if this is always the best long-term solution.
For example, my student loans are at 6.73% interest. If I could invest my money at 9%, am I better off paying everything I’m able into the loans, or paying the minimum on the loans and investing the rest?
JD,
I’m having problems posting comments in ING referral thread. Every time I hit ’submit’ I get redirected to a blank page. I tried from two different computers and the result is the same.
This is odd, because I was able to post in that thread before (my last post was on April 5). Do you have any ideas? Thank you very much for your help, and for maintaining this wonderful blog.
Hey congrats on this! See third paragraph.
http://siliconflorist.com/2008/04/21/silicon-florists-links-arrangement-for-april-21/
EDIT: (looks like I am a bit late on the scene, now reading back on previous comments. Nevertheless, great to hear about this)
http://www.alternet.org/healthwellness/81773/
You might want to include this article in any discussion of the value of organic food. I hold an advanced degree in plant breeding and even I was startled by the differences in nutrition.
A while ago I read an article in either the NYTimes or Alternet.org about which organic foods one should buy which targeted the things we eat the most…potatoes, milk and eight others which I do not remember.
Hello,
I’m looking for either a post on this site or a post found through this site about creating an emergency fund and then gradually building. I remember it’s related to a book. Could you help me find the post?
Thanks!
First of all - I absolutely love reading your blog. I discovered it a couple months ago and am addicted.
Luckily, my father taught me the value of saving money and making smart decisions and ALWAYS keeping your credit score high. That’s how I’ve managed to buy two homes on my own before the age of 27, both with extremely low APR (due to my high credit score and with a stable, but very average paying job).
However, my new husband didn’t grow up with the same values and has an extremely low credit score. He’s made $90K for the past few years, but has nothing to show for it, except for some great memories of fun trips. All of the damage was done in the past (he has terrible spending habits but is okay with me handling all bills and financial planning) but he’s not even sure where he went wrong to create such a problem.
Now we’re being paired together when we apply for things (house, car, etc.). I have a few questions about this:
- Is it best if I continue to make all of our purchases (big items like houses and cars down to smaller things like home improvement loans and utilities) since I have the better credit and can get us the best rate? Or should he take some of this on in order to build a better payment history?
- Will my credit be harmed because it’s linked to his?
- What’s the best way for him to begin to increase his credit rating? He has zero debt and only one credit card (with no outstanding balance). His car is paid off and the loan was in his name.
We’re clueless as of where to start, but know we’ll have many financial encounters in the near future so we need to get on the right track soon. We also see how this could hinder us in the immediate future as we want to start a family in the next year or two, but know that I can’t quit my job to be with a kid simply because we need my income in order to be approved to make any large purchases (even though he technically makes enough to support a family).
Any advice from anyone would be greatly appreciated.
Hi JD,
I tried to register with GRS today, and it said that a confirmation email would be sent to me so I could log on. I haven’t received it yet - help!
JD,
I an always interested in energy efficiency. Althought I’m not a classic “tree hugger” I am a “wallet hugger”. Just kidding. Although I believe that global warming is a big sham, I TRUELY believe in keeping our air, water and land clean. But that’s a topic for another day…
On to my question… I live in Fresno, CA. Winters are pretty mild, but summers are HOT. Its not as bad as some places, but its enought to make cooling the house a major decision. I have a two story house (a mistake I would not make again) and the kids sleep upstairs. Last night it was 85 degrees up there when I put them to bed - its only April! Fortunately, it was cool outside, so I just opened the windows, but that won’t be an option much longer.
In the summer, out power bills SKYROCKET. Most of the usual advise does not help, because we already do it (I keep the thermostat at 85 degrees, we cook outside, I run appliances at night, I line dry…)
Two years ago I had our entire duct system pulled out and rebuilt to make it more efficient. Can anyone give us some “outside the box” ideas? Thanks!
JD, FYI, just got my Tax Rebate over the weekend (4/26) from the Fed. Knew it was gonna be pretty soon because of my low SSN.
Cash is pretty sweet, thank you to the Chinese and arabs for buying our treasuries and bonds…yeah this is gonna bail us out of a crisis. Out of the frying pan and into the fire.
I have enjoyed your blog for sometime now. I am a born again saver and find myself trapped in a situation and really have little clue as to how to get out. Read below:
Here is my situation. I am in a house that due to my own foolishness, I am paying more then I can truly afford for a mortgage. However I have not missed one payment. I am incredibly house poor. In any other market (michigan) I would have just sold the home, and moved, breaking even. However this market would cost me money I do not have to leave this home. I am in a mortage with a house that sold for 1/3 less its value across the street from me.
What I would like to know is what are some options I might have. Will I be able to move into another house if I were eligible for a short sale ect…With the bruising to my credit will a modest priced home be out of my reach due to a higher interest rate that I might be qualified for?
I emailed my creditor (Chase Bank) filled out a hardship form hoping for some creative restructuring of the loan. As of yet, 3 weeks, have not gained any replies.
Any suggestions would be helpful.
Thanks
House poor and imprisoned
I’m not sure what your policy is on listing your readers’ businesses in response posts, but I’ve seen a few other folks list their business ventures, so I will do the same. If this is not allowed, I will assume you will delete my response post!
You sent a newsletter discussing the problems of identity theft and the challenges around restoration. My company, Pre-Paid Legal Services, Inc., provides a service that addresses not just the financial ID Theft issue (which is actually only ~30% of all Identity Theft cases), but the 4 other areas:
1. Medical,
2. Criminal,
3. Social Security, and
4. Driver’s License
We have partnered with Kroll, Inc., the market leading risk management experts with over 30 years of experience. This may be worthwhile to you to look at further for your readers as a solution to the epidemic of identity theft.
Nicole A. Dunbar
Independent Associate
Prepaid Legal Services, Inc.
nicoleadunbar@prepaidlegal.com
http://www.prepaidlegal.com/hub/nicoleadunbar
Hi JD -
Your blog, in part, changed my life from living paycheck-to-paycheck to only having only one debt - my rapidly decreasing mortgage. I can’t thank you enough for your inspiration! I am an avid fan who reads every new article with my morning coffee.
I echo the question posted by Valerie (#7) about whether it is better to invest in a Roth IRA or an employer-sponsored 457. I fund my 401k to the tune of 10.5% (including my employer’s match). The only downside I see to a 457 is that it can only be rolled into another 457 if I leave this job (which, being so incredibly happily employed now, I probably won’t do).
I’m single, in my 50s, have my home (with a mortgage), a vacation home (with no mortgage), a Roth, a 401k, two annuities, a mutual fund invested in gold and precious metals, and a $5k emergency fund. Sounds good, but it isn’t enough to fund retirement.
Any guidance you can offer about the wisdom of funding a Roth IRA versus funding a 457 versus paying off my mortgage would be appreciated.
P-
I enjoy reading your website every day and get alot of valuable information out of it. One thing I wish you would write about in detail is on job loss. With the economy as weak as it it, there are many people losing their jobs. I will be one shortly, when the company I have been working for since 1997 closes down on 8/31/08, due to lack of orders. I would like to read about:
1. Coping with a job loss.
2. How to file for unemployment benefits.
3. Job search techniques, especially on-line job searching.
Keep up the good work!
Thanks,
Rick
I was looking to join a personal finance site like Mint.com, and was wondering if you preferred or would recommend a similar site over them?
Jason -
I signed up for Mint.com and really like it, but I can’t link to my local credit union where I have my checking and savings accounts. MAJOR bummer, and it defeats the purpose. I WAS able to link to my stock brokerage and the bank that sponsors my credit card. I inquired about it and they only link to banks that will bring them a fairly high number of customers. I fear that my credit union just isn’t that big.
Been a reader for a few months and love all the tips on saving. I also love all the number crunching that you do. I just graduated college and came into a “windfall” of about $500. What is the best thing to do with this money? My wife and I are both college grads with an acceptable savings account (can last about 3 months) and are planning to move to Mexico in August to do some work in an orphanage (minimum pay expected). Should we do something like ING Direct, invest somewhere, or just buy the guitar I’ve been looking at for a while?
Thanks in advance.
PS - I’m sure a lot of people this time of year could use some creative graduation money ideas
Hi JD,
I’ve been subscribed to your RSS Feed for a few months now. I want to thank you for all that you do. I’m 22 and getting this advice early is really setting me up for a successful future. I saw this article and thought about your blog. I don’t know if you’ve read anything on it but it could save readers some money. Thanks again!
http://www.usatoday.com/tech/products/services/2008-04-02-amazon-textbuyit_N.htm
Hi! I was wondering , if you could do something about your pages. They all run together & very hard to read. I used to read every word on your site, but then it got hard to read because of the overlapping words. THe big letters. THanks,Lisa
VERY odd, Lisa. I don’t have that problem at all. All of the pages look fine to me. Has something in your computer’s settings changed?
I love, love, love your blog. Keep up the excellent work!
Minor issue I’d like to see resolved if technically possible: the comments link for each entry is at the start of the article. I’d like to see it at the end: usually I want to look at comments after reading the entry, not before, so it seems to make more sense to put the link at the end (and perhaps the topic links too - I’m also more likely to be looking for similar articles after reading the current one, not before). Granted scrolling up is easy, but I think it’d add a small degree of usability to the site.
You don’t need me to tell you I think this is a great site; if I didn’t think so, I wouldn’t read it :).
Is Free Online Cash System like MLM?? Can you look into it? Everything I try to find online has a gooney talking about how great it is yet they never disclose what it is
JD:
Found this article from the NYT today and thought you might be interested.
http://www.nytimes.com/2008/05/17/business/yourmoney/17money.html?pagewanted=1&ei=5087&em&en=daa4a9ac68fbfc42&ex=1211342400
Apparently, there’s a new financial/PF editor taking over. Additionally, he even threw in what we’ve been talking about children and their parents’ finances. Well worth the read, although I did send in a comment saying he also needed to read *your* blog here, too. Keep up the good work!!
JD,
Love your blog! You’ve probably already seen this article. It reminded me of your post about identity protection marketing this company:
http://www.wvgazette.com/News/200805172662
Very ironic!!
Hi J.D,
I read how you were going to do a post about the drugstore game - I’ve done a breakdown of the savings and hidden costs for CVS-ing on my blog. It factors in a complete list of the products I’ve gotten over 3 weeks, how much time, trips, gas, etc. Check it out if you have time. Thanks
http://bethriftylikeus.blogspot.com/2008/05/true-cost-of-cvs-ing-for-3-weeks.html
S.B.
Be Thrifty Like Us
Hey JD,
I was wondering if there were any money talk radio shows that you recommend.
Thanks
Jason
Hi JD,
Since you are moving your car and vacation savings to ING Direct, (smart move!) you may as well open an Orange Checking account there as well. This will appear on the same screen as your other accounts under the customer number assigned to you. You should then be able to send the mortgage company a “check” using Orange. You type in the information inside ING, and they will print and MAIL a check for you for free! I use this option to pay one of my loans, the other bills I can pay through Orange using their electronic payment option.
Hi JD,
I would like to let you know that Zilok.com has launched this week in the USA. It’s an online rental marketplace, where anyone can offer just about anything for rent: bikes, snowboards, bbqs, strollers, vacation rentals… We call it peer-to-peer renting. It’s a great way to make money, save money, while tacking over-consumtion and the accumulation of stuff.
I could go on and on but will keep it short. Let me know if you want to investigate the concept, and please get in touch with me if there are advertising opportunities on GRS.
Thanks,
Jeff Boudier, Zilok.com
Hi would you have personal finance templates? Basically guides and recommended percentages for various types of investments: growth investments, capital preservation investments, life insurance, emergency fund etc.
Thanks
JD:
I posted this elsewhere, but thought you might also like to take a gander if you missed it there:
http://www.howispentmystimulus.com/
Yep, you got it, a website (complete with photos for some) of how people are spending their stimulus checks. Enjoy and keep up the good work here.
You recently wrote an article about lost money and I followed the advice! I ended up finding $1100 between my wife and I! I got the last checks from the state today for a whopping $913.00
We put it straight to our $4800 credit card debt!
Thanks!
Love the blog. Do you guys have any tips on how to deal with medical expenses that aren’t completely covered by insurance, like orthodontics?
Hey JD,
Long time reader…I was looking for something on coin counting, and instead of taking it to coin star and getting ripped of by paying 8.9% or turning them into gift certificates, you can take your loose change to commerce bank. I don’t know if there are any in the pacific west yet, but they are expanding on the east coast. You don’t have to be a member and they give you cash right away. I thought it was a pretty brilliant idea, b/c they got me into their bank when I normally would not.
Hi there,
I wanted to drop you a line about a book that a friend of a friend wrote, called “All the Way Home: Building a Family in a Falling-Down House.” It’s by a hometown writer, David Giffels, who, with his growing family, restored their dream home - a falling down house in Akron, Ohio. They rebuilt the crumbling pile by salvaging many materials from other people’s discarded bricks, railroad ties, and other building materials, and turned them into a treasure. This now family of four did with no loans, no credit cards–all over 12 years with just $65K out of pocket and the rest from sweat equity.
Anywho, the book goes on sale this Tuesday, 5/27. You can find details about the book here:
http://www.harpercollins.com/books/9780061362866/All_the_Way_Home/index.aspx
There’s also an article about the whole adventure here:
http://www.nytimes.com/2008/04/17/garden/17akron.html?ref=garden
He could use all the promotional help he could get and I just thought I’d drop you a line as it might appeal to your readers.
Thanks,
Alex
http://www.mentalfloss.com/blogs/archives/15241
Hillbilly recycling. Thought you’d enjoy it.
Hey J.D.,
I’ve been reading your blog for quite sometime now. I am 22, and I have lots of student loan debt (about $40,000). I am slowly working to get out of that debt. I just got engaged (on mother’s day) and we are planning a “frugal” wedding. Both me and the fiance are “artists” and we both do graphic design for a living. My fiance has horrible credit and because of my debt, I do as well. I was told to get a credit card and pay it off every month to build my credit (we do want to buy a house someday). Does that seem like a reasonable idea? I have had a gap card, but never use it and I also have a macmall card I used to get my computer, but paid that off as well. So I was looking into gas cards. What is your experience on them? I think it would be an easy way to build credit on something I already purchase and pay it off every month, because the last thing I wan to do is to get into credit card debt.
Thanks J.D.!
I love your blog, it is very encouraging.
Ashley
Hi J.D., I hope this hasn’t resulted in a quadruple (or more!) post, but I seem to be having a problem posting on your “Official GRS Referral Swapping” thread. Is it just me?
Hi J.D.
First and foremost, keep up the great work. Your writing is great and is very informative (even though I do not reside in the US!)
I was wondering what your thoughts were on margin loans. There is obviously some value/benefit in gearing but, how would you reconcile margin loans with returns from the market (I would likely invest in broad indices as opposed to individual stocks) especially at such a volatile time; this is probably more significant in Australia where the interest rates are quite high (margin loans @ around 10%, base rate at 7.25%). Further, there would be tax advantages as well but I would be motivated by building wealth as opposed to reducing taxes (although they could go hand-in-hand!)
I would love to hear your thoughts (and those of fellow readers of your site) regarding this.
Cheers,
Gerard
Hi,
I started getting a feed to your blog a few weeks ago and I love it.
Your post today sparked some questions I have about debt settlement. It’s regarding a situation my mom is in.
She got involved with someone and - long story made short - she now has hundreds of thousands of dollars in credit card debt. This happened about a year ago, and we’ve been able to eliminate all her secured debts besides her home, but there is still probably about 200k outstanding. In talking with various people about the situation, most of the advice we’ve been getting has been to wait about 2 years from the accumulation of all the debt to begin trying to settle everything. Do you have any resources you can point me towards or any words of wisdom?
If it sounds overwhelming now, just imagine what it was like when there were 6 vehicle purchases involved in addition to all the credit card debt. And, so you know, it’s not anything we can dispute; it was basically a situation where this guy capitalized on my mom’s naivety, loneliness, and immaculate credit and max’ed out on everything he possibly could.
Any info you could pass along would be much appreciated.
I checked out my credit reports from the 3 agencies online, and I saw on each of them that Verizon Wireless was a negative marker. My reports say that they “wrote off” approximately $200 for my account. This is not what I remember happening, but I have nothing in writing to confirm this. Verizon let me out of my contract because they misadvertised their coverage area. I was told that they would release me from the cancellation fees because I was assured that my phone would work in my home area. Needless to say, it didn’t. I thought I was getting a good deal and have had nothing but good things to say of Verizon because I considered this action to be very honorable. Now, I am extremely frustrated because this is a smear on my credit report, and I don’t understand how or why it is there if the information I was given was correct.
What steps do I need to take to ensure this negative report is taken off my report and to make sure this does not happen to me again?
For some reason, my comment in response to a question in the “Current Deals and Contests from Online Banks” post was marked as spam.
What gives?
JD, you MUST see this blog!
http://www.dailymail.co.uk/health/article-1024879/The-best-challenge—One-man-boldly-goes-use-dates-food.html
I had to share with you an ad that I found while flipping through the June 2008 issue of Smart Money today.
It’s a four minute workout machine that ooonly costs $14,615. The website for it is full of outlandish statements like “[the price]…still makes the ROM 4 minute workout the absolute least expensive method of exercise.”
It also calls doctors and personal trainers “so called experts.”
It’s a super entertaining ad and website (http://www.fastexercise.com/) but the full page ad in the center of Smart Money makes me worry that the company is actually selling enough of these to make a large enough profit that it can afford expensive ad space.
Enjoy!
I would like you to blog on online high yield savings accounts again. I have had a HORRIBLE experience with WaMu, and I’d really like to hear from you and others about other options. They charged me $10 per transaction after 6, even though they were transactions establishing additional accounts with WaMu, which WaMu encouraged as an option of funding the new accounts. I’ve paid $20 so far, and I’ll pay another $10 on Friday when my check is direct deposited, and probably another $10 at the end of the month when my 2nd monthly paycheck is deposited, plus $10 for ANY other transaction between now and the next billing cycle. I want to scream! Apparently if I had banked in person, these charges would not apply. HELLO!? Are you not an on-line bank? Aren’t you advertising the ease of using your account online? Aren’t you encouraging use of my current Wamu accounts to fund the new accounts? I feel as though I was tricked by the big, bad bank. I would really be interested to learn about any other online bank with a decent APY and GOOD customer service.
I am VERY disappointed in Wamu, and I recommend GRS readers to avoid them like the plague. This is NOT what they are looking for.
JD,
Thought you might be interested in this post for possible future use or ideas.
http://kblawson.wordpress.com/2008/06/06/rite-wrong-or-rite-aid/
Hey J.D., I’m an RSS subscriber and lurker here. You may have already come across this article, “A Nation in Debt,” in The American Interest at http://www.the-american-interest.com/ai2/article.cfm?Id=458&MId=20. The full article was free when I viewed it this morning, though the rest of the magazine was subscription.
It seems to echo some of the sentiments found on GRS, taking them to the societal level and then into policy.
I had an idea for something you might want to post someday…
I started driving 55 (or less on secondary roads)to save gas. The real payoff has been in less stress and a more pleasant commute. Now, instead of getting annoyed at drivers who go too slowly, cut me off, etc. I just go my pace and they all just go their merry way. Rather like the parting of the Red Sea. Also, there is no stress about looking out for cops to avoid speeding tickets.
I’m trying to lower my monthly cell phone bill. On this blog’s recommendation, I e-mailed my provider and asked for a discount. They offered a different calling plan that has the same services that I am currently using, but for less money. After doing some research, I have found that the major cell phone companies all have discounted plans that they do not market. How do we know if we have the lowest cost plan for our usage?
Also, I understand that the major companies will allow you get out of your contract (usually a 2 year commitment) if you can find someone else to ’sign’ over your remaining contract time to. Does this really work?
Thought you and your followers would be interested in this financial literacy system for teens that I launched today. The release is pasted below. Would love to send you more info. All the best, Stephen
For Immediate Release
THE STUDENT MONEY EXPERT™ LAUNCHES
THE DOLLARCAMP FINANCIAL SURVIVAL SYSTEM™,
THE FIRST-EVER PROGRAM TO TEACH HIGH SCHOOL
AND COLLEGE KIDS ABOUT BUDGETING, CREDIT CARDS
AND CREDIT SCORES
Just in time for graduation gift season, program can keep students from racking up credit card debt and ruining their credit scores
San Francisco, CA (June 10, 2008) — Stephen Epstein, the Student Money Expert™, today launched the first-ever financial literacy program to prevent young adults from racking up credit card debt and ruining their credit. The DollarCamp Financial Survival System™ (www.DollarCamp.com) is specifically designed to teach high school and college students how to control spending, how credit cards work and how to build strong credit scores.
Fifty percent of college students graduate with $5000 or more of high interest credit card debt (Sallie Mae), and nearly one-third of students admit that they were “not at all” or “not very well prepared” for managing their money once they got to college (KeyBank and Harris Interactive).
Through his San Francisco-based company, DollarCamp™, Epstein is doing something about this financial mess through a comprehensive, yet easy-to-understand crash course on financial literacy for high school and college kids.
“Unfortunately, most kids are absolutely clueless about money when they leave home and go to college and into the real world. Students have drug education, sex education and driver’s education, but no financial education,” said Epstein. “When I went to college, money wasn’t real to me, and I was oblivious to my credit score. I saw all my friends treat credit cards like they were free money. I have parents that were very vigilant, and I still managed to screw it up.”
After racking up credit card debt in college and in his early twenties, Epstein knew it was time to get his financial house in order. Yet nothing existed to help young adults understand budgeting, credit cards, credit scores and how to stay out of debt. So he consulted dozens of personal finance books and experts, spoke to accountants and certified financial planners. Based on his research, Epstein developed a system that helped him get out of debt and get on the road to great credit and a healthy savings and investment portfolio.
“I wanted to create a way to really get through to kids about money,” said Epstein. “Most teens, and adults for that matter, think that learning about personal finance is boring. What we’re doing at DollarCamp is exploding that myth.”
Decked out as his alter-ego, “Sir Broke-A-Lot,” and backed up by the catchy DollarCamp rap theme song, Epstein gave more than 100 packed seminars to California high schools, colleges and parent groups. After such an enthusiastic response from adults and students, he decided to create a system available to everyone.
The Financial Survival System’s entertaining three-step program consists of DVDs, illustrated course books, slideshows, audio guides, special reports, and unlimited online phone conference support.
Step 1: The DollarCamp Budgeting SystemTM explains why most budgets fail and shows how to create one that works along with foolproof tools for implementing a budget and tracking spending.
Step 2: The DollarCamp Foundations™ teaches students and parents critical lessons about credit cards and debt while pointing out avoidable money mistakes.
Step 3: The DollarCamp Credit Building System™ teaches students the importance of credit scores, how to build solid credit and how to save a fortune in wasted interest payments.
Through the at-home program, students watch the DVDs and work through the print materials, complete the assignments and join the weekly conference calls with Epstein. Parents enjoy access to the Financial Survival Network™ to collaborate with each other to change the way their kids handle money. Also part of the program, students can take an online exam to become DollarCamp Certified™, proving to parents and potential employers that they are serious about money management and financial literacy.
The DollarCamp Financial Survival System™ costs three payments of $300 or one payment of $837, with 100 percent satisfaction guarantee. It’s available exclusively through http://www.DollarCamp.com.
About Stephen Epstein, The Student Money Expert™
Since founding DollarCamp™ in 2006, Epstein has led more than 100 seminars for high school and college students on financial literacy. He is a Certified Educator in Personal Finance™ (CEPF) and co-host of “DollarTalk Radio” on KNBR 1050 AM in San Francisco. Epstein graduated from the University of Southern California with honors in 2003, where he racked up $4,000 in credit card debt, and then worked in real estate development as an analyst. He devised a system that helped him get out of debt and get on the road to great credit and a healthy savings and investment portfolio. Then Epstein developed the Financial Survival System™ to teach others how to control their spending, stay out of credit card debt and build good credit. Epstein, 27, enjoys living well and debt-free in San Francisco.
For more information, visit http://www.dollarcamp.com. To receive a media kit or to set up interviews with Stephen Epstein, please contact Romi Neustadt at rneustadt@gmail.com or 406-579-9947.
# # #
I know many of us are Warren Buffett fans. Its seems he is putting the GRS creed to the test.
http://money.cnn.com/2008/06/04/news/newsmakers/buffett_bet.fortune/index.htm
JD, you should have some polls on the site. Maybe weekly or something. It’d be a lot of fun to see the average financial profile of a GRS reader. You could have questions like:
Credit Cards:
() Use them
() Use them but hate them
() Don’t use them
Currently in Debt:
() $0-$5000
() $5000-$10,000
() …
Average age, amount in your 401k, monthly 401k contributions, number of cars, credit score etc.
So many things it’d be fun to learn!
You could make it anonymous so that no one is bragging or feeling bad. And yeah, it’d be an internet poll, and it’d be on a finance site so the results aren’t going to be completely accurate, but they could be interesting none the less.
As a bonus to you, it might help you understand your audience even better…although you seem to do a fine job writing good articles for us anyways.
Thanks,
Richard
I’m new to investments and I’ve been following this site. I’m just a regular working guy who is trying to simply save money for retirement. But, I would like to learn about how the stock marked really works and how if I can down the line get into really investing. I saw a segment on T.V. about a guy who no nothing about investing and now is a serious player in the marked. It sort of made me wonder; why not me. At any rate, if you could suggest any books or other publication besides your wonderful site I would be very grateful
Regards
I’ve read a couple of your articles, and I’d like to thank you for posting such great information on your blog. You make this stuff much easier to understand and a lot less scary for people like me!
I have another variation on the “pay down debt or invest?” question.
I’m a 52 year old single woman with a mortgage debt of about $170,000, interest rate of 5.5%, and, as of a couple months ago, stock/money market/mutual funds (non-IRA/retirement restricted) amounting to about $150,000. I’m extremely concerned (like everyone) about the way the market is going, and, unlike my financial advisor, I am not reasonably confident that the market will recover within the next 20 years. He believes that although values will drop for a little while longer, if I’m not going to retire within five years (ha ha ha), I should keep the stock, etc.
I think I should pay off the mortgage, but I know that I’m unusually pessimistic and extremely risk averse. My home is on 40 acres of farmable land: even if the economy tanks and I lose my job, I can still grow food and raise livestock on the property, but you can’t grow tomatoes on mutual funds. ;o)
If I sell the stock, etc., I’ll probably have to pay about $10,000 in capital gains and, of course, I won’t get a deduction of interest for income tax purposes any more. Another consideration is that the capital gains tax rate is relatively low right now – I would be surprised if it did not go up again, substantially, within the next five years.
I will be spending $1000 a month less, though, without the mortgage (I’ll still be paying about $500 a month for insurance and property taxes), and I could be putting that into something safe(r).
I apologize for the disorganization of this message! I hope you decide to consider my question, but even if you don’t, thank you for blogging!
I came across your blog about a month ago and in all truthfulness it is my favorite blog.
I started a blog about issues facing Americans and their money. I am writing about gas prices, foreclosures and unusual carpoolers.
I wanted to post something under the Money Merge account thread, but I see that you closed it. I was going to post that my wife and I are going to try this system and post about the results on my blog. I am hoping to share with people how it really works.
Hi JD,
I have been reading for almost a year, really helped me to pay off my credit card debt, yeah! I love your posts and was wondering if you have posted about a ledger book? Now that the debts are paid off, I am focusing more on budgeting and although I use a lot of computer tools (Quicken, PearBudget online, and PearBudget excel spreadsheet) after talking to a friend who said that she prefers the old-fashioned way of jotting receipts down by hand in a ledger book (having kids and not always being able to sit down at the computer uninterrupted). I was interested in trying this way too (I presently have a 17-month old on my lap right now!). Do any other readers have information about this? or have you ever used this? I’d love to hear what you or other readers have discovered on this subject!
Thanks,
Elizabeth
Hey J.D. - First let me say thanks for all your hard work at putting together this site! I read it everyday and love the articles you post.
I wanted to draw your attention to a story I heard on NPR on the way home yesterday: http://www.npr.org/templates/story/story.php?storyId=91556654
It’s about artists, who have yet to retire, living in New York City and being able to do so on minimal incomes and living frugally. It’s an interesting take on how to prioritize the things that are really important for you - for an artist, it’s their art.
I was reading the “No credit card” topic and was then curious about using my check/debit card for most purchases other than what rewards I get from my CC, which I pay in full. Can you get suggestions as to the best check/debit card for those day to day purchases that get some sort of bonus? I hate carrying cash around.
Hi! I recently had a look at the Zen Habits blog, specifically your guest post about eliminating debt -> http://zenhabits.net/2008/06/how-i-paid-off-35000-in-debt-and-how-you-can-too/.
I was curious about the subject of credit cards. In the post you suggest eliminated any ties I have to my credit cards. Right now, I’m 18 and I’ve never had one. My question is, without ever getting a credit card, how would I ‘build credit’? (so say, I could get a loan for a house someday)
I love the blog!
I am currently comparing Mint and Wesabe for online finance tools. I was wondering if you have any experience with either? Right now im leaning toward Wesabe due to the fact that account information is stored on my personal computer, not their servers.
I just wanted to know if you had much experience with either, and what you thought about each.
Thanks
Jason
Hi there. I’ve been reading your blog for more than 6 months now and receive daily updates via RSS. What you’ve got to say is fantastic and keep up the good work.
There are a couple of things I’d love to see you write about. First, how about addressing the ethics of putting frugal knowledge to use in dealings with others who may not be so knowledgeable? For instance, if people are willing to make poor financial choices, is it ethical to take advantage of that, or is it better to teach them to make better choices?
Second, I haven’t seen you discuss using one’s investment funds to become a lender, either a micro lender (loaning a few bucks to a 3rd world person to start a business) or lending through some vehicle like Prosper.com. What are the risks, advantages, disadvantages to these systems, do they work, do you know of any success stories? It’s something I’m considering, especially considering one could earn significant interest lending through Prosper.
Anyway, like I said, keep up the great work and I look forward to reading you for years to come.
Oprah is giving away Suze Orman’s book “Women & Money” on her website for free at the following link (shortened using Snipurl):
http://peek.snipurl.com/2pj70
I gave the preview link instead of the direct link for those thinking it’s some kind of trick.
While the book is targeted towards women I’m sure the tips she provides are good for any man. I haven’t yet had a chance to read the book myself, but it is rated very well on Amazon.
Just wanted to share the info with everyone!
Isaac
Hi there,
Ive been reading your articles for quite some time now, I have a question. I
make about 1700 a month and my wife makes about 800, so combined income is
about 2300 a month. All of our bills are paid and I still have at least a
1000 dollars left over each month, sometimes more. How would you invest this
Great blog! Thank you for all your work. I hope it goes well for you. You have inspired me to start my own blog, “Onwards, Ever Onwards” at blogger.com. I have nowhere near your level of expertise, but your writings have inspired me to get my own down on cyber-paper, as it were.
You focus on the “person” in “personal finance,” and that’s what makes your blog so unique. Thanks again,
Hogan
Has anyone bought the “Top 10 work from home” package advertised on this site? What were your results?
mygallons.com
Here’s a situation I would like your (or your reader’s) thoughts on.
When people talk about spending less than they earn (good advice, of course), what do you count as “spending”? Obviously bills/expenses/payments to others count as spending… but what about savings? Is retirement savings (401K, Roth IRA) “spending”? For instance, if you put $1000/month into each spouses’ retirement fund, is that savings? I treat it like a bill in my head (so that it gets paid every month), but if I wanted to make a graph of income v. expenses, should I count it as an expense?
To some degree, it’s overthinking to care, I suppose - we’re lucky to be able to save so much - but I often don’t keep a lot of cash on hand because of large contributions… that leaves me feeling stretched and as if I’m “spending” too much — when really, I’m saving a lot!
This isn’t formulated so well. It’s just a thought I had after I read this entry on another blog:
http://www.thesimpledollar.com/2008/07/01/the-net-worth-mentality-the-road-less-traveled/
Catherine,
Spending would be money that you give away, not money that you keep. Money that goes to savings, retirement is still yours. Treat it like a bill for your own mind game in commiting to it, but it isn’t spending because you still have it.
Hi! With oil prices going up and the US economy going down, how what would you recommend to prepare for the short (now-3 years) and long term (3-8 years)?
I’m currently employed so my income is from a salary and i’m single and I have house payments to make.
Would appreciate advice on disposable income in an economic crisis period like this.
Thanks and keep this site going! Its great resource
Hi JD! Really enjoy GRS and am turning my husband on to it as well.
Would you consider titling your daily posts with a hint to its contents (ie. Get Rich Slowly: Financial Success Stories), so that I can better identify specific emails within my archived GRS email folder?
Thank you!
I am wondering if you know of an online
calculator that will show how much money can be saved by paying more each month to one’s mortgage. I’ve seen a couple that already have certain values and interest rated set, but I’d like to find one that allows the user to enter their own data.
thanks so much,
Robyn
thought you might get a kick out of this comic about investing wisely… http://www.geekculture.com/joyoftech/joyarchives/1125.html
Your website is used in this article: http://www.hbindependent.com/articles/2008/07/10/blogs_and_columns/incidentally/hbi-cindy071008.txt
Hi,
Your site is fantastic. I have a question regarding 401k rebalancing. At the beginning of this year, I rebalanced my 401k and selected a few new funds which total about 5 now. I have rethought my strategy after finally trying to take care of my finances, and actually coming up with a plan other than “willy-nilly” picking funds.
Since the market is doing so poorly, and some of the funds are down significantly (as many are), is it wrong for me to rebalance and change investments to take on my new, actual plan for retirement? Or should I stay where they are until the end of the year?
Just curious if you have any thoughts.
Thanks,
Garrett
Yo JD. I love your site. its my favorite finance blog because you deliver good stuff a good handful of times a week.
I think im doing good financially, i just screwed up with my first credit card and got hit with a late fee (payed on the due date. didnt get processed til the day after. late fee city!!!) Other than that and im mostly good for a kid going to a commuter school.
I really want to say thanks and you got me hooked.
Tito
Here is a different take on what’s become the token phrase “save money by buying a late model used car”
http://dollarsandspence.wordpress.com/2008/07/07/the-late-model-used-myth-part-1-domestic/
http://dollarsandspence.wordpress.com/2008/07/09/the-late-model-used-myth-part-2-import/
JD
Here’s another Get Rich Quick Quack doing the rounds, Roger Hamilton and the XL Results Foundation Scam.
http://www.brilliant4biz.com/category/xl-results-foundation/
http://blog.datamanagementsolutions.biz/dms.html
http://www.stuff.co.nz/4287069a6442.html
http://www.brisbanetimes.com.au/articles/2007/05/30/11802053...
http://rogerhamilton-consumerwatch.blogspot.com/
http://rogerhamilton-xl.blogspot.com/
http://www.pyramidschemealert.org/
http://xlresultsfoundationscam.blogspot.com/
http://rogerhamiltonexposed.wordpress.com
http://www.businessesfromhell.com/topic.asp?TOPIC_ID=401
Hi,
Have you done any research into investing in European banks and funds? If so, do you recommend putting my US dollars into a European bank. If so, suggestions on which ones? Or who do you think I can talk to about this?
Thanks!
JD, just read your post on Back to Basics and you mentioned you and Kris are interested in aspects of Urban Homesteading. Have you checked out http://pathtofreedom.com?
It is amazing what this family is doing with their lot in the city. I’ve been following them for a couple of years now.
Hey J.D. hope you had an enjoyable weekend! I think your readers might be interested in a post about Upromise. I have been using the service in conjunction with a friend’s account (since I don’t have kids or young relatives) and I have found it to be a great way to help save for college. I wrote my own review: http://letsblogmoney.com/2008/07/18/worried-about-the-rising-cost-of-a-college-education-discover-upromise/ and think your own readers could benefit from a review of your own as well. Take care.
I have had a FNBO account for some time now. You have their current rate as 3.25% but it is actually 3.50%. When I opened the account it had a promotional rate of 6% which was great — but even now the rate is higher than most. It takes a little more time to transfer funds into my checking account so I have left some in my ING account (which has a lower rate) in case I need to transfer quickly. Both ING and FNBO are good — but why not get the higher rate at FNBO.
Hi. I would like to know how you decide on who you let guest post. I work for ETF MarketPro (www.etfmarketpro.com) and we are specifically focused on educating consumers on ETFs. Please let me know if we can schedule a time to speak or if you are interested.
Hi JD. I love reading GRS. Although I don’t read Get Fit Slowly I routing for you on that. I recently lost thirty pounds through exercise (30-50 miles of running a week on top of moderate amount of walking). It takes time and it’s hard at first but it is very much worth it. I just feel freer within my own body.
I find a lot of things relevant in your articles despite the fact that I’m 21, live in a very urban area, and have never had debt. You have universal good advice.
I have two comments/suggestions. One, If you ever get the chance to go to an Aldi (a discount grocery store), please go and review it. I’d be interested in hearing your thoughts. It’s a different kind of place - like a discount TJs. Two, If you could have more posts on GRS-ing in an urban environment, I’d appreciate it. I know it’s best to write what you know, but some things ways of living frugally just don’t apply in a city, while there’s a wealth of other resources not available to those in an suburban or even rural environment.
JD,
I just got an ad from Capital One in my email inbox. I have a card with them that has been empty for about 18 months. I thought I would share the ad with you:
Subject: Share Your Spending Power with Your Loved Ones
[...]
Adding your loved ones as authorized users to your account is an easy way to cover their everyday needs like textbooks, school activities, gas, car repairs—even a morning coffee.
Authorized users share your existing account, but they get their own card to use when they need it. And, you get everything you need to manage your account efficiently:
• All transactions on a single monthly billing statement
• Online access to your account to track activity any time
• Peace of mind knowing that your loved ones have access to credit 24/7
You can add up to five authorized users to your account [...]
Thanks for all you do,
KP
Hi JD - big fan of the blog & I have a first time question for you.
I’m 37 and have just been told I will be laid off at the end of August. I have been in the tv industry for 14 years - same company that entire time. In terms of health insurance - what should I do now to make sure I’m covered without breaking the bank? Cobra will cost me $450 a month! Seems steep - what other options should I be looking into? Thanks for any advice!
Thanks
sb in Seattle
I’ve read in some of your posts and the many subsequent comments that there’s a huge emotional component to personal finance. I know this isn’t a site for counseling, but since compulsive spending is a big issue keeping people (myself included) from saving, I thought I’d share something that’s been helping me for the past couple of years. It’s called The Work, and it gently guides you to analyze the beliefs that upset you and compel you to thoughtlessly spend more than your budget allows.
http://www.thework.com/index.asp
Might help someone. Good luck.
JD:
I would encourage you to do an entry on “commingled funds.” I notice that many 401K plans seem to offer these in place of mutual funds but fail to really explain the difference.
The basic difference, as I understand it, is that the commingled funds are simply a shared account from which a manager engages in investment activity as opposed to being a registered mutual fund. This should, in theory, keep costs lower since no advertising of the fund is required.
There seems to be a real transparency problem since these funds are named similar to mutual funds offered by the same companies. I’m thinking specifically of the SSgA commingled funds which go by the name “Life Solutions.” It wasn’t until today that I figured out the mutual funds carried under the same name are not the same thing as the commingled fund offered by my employer’s 401k plan. This means its impossible track the performance of these funds without the aid of statements from the fund manager.
This article discusses the recent phenomenon of commingled funds taking the place of mutual funds:
http://www.pionline.com/apps/pbcs.dll/article?AID=/20071029/PRINTSUB/71026050/1031/PIIssueAlert01
Perhaps you could do a post on this issue and get a discussion going. I’d be curious to know what others think.
Do you have any familiarity with these funds?
Feel free to email me.
-M
arcanethoughts@gmail.com
Hi JD,
Have been following you in the RSS - great blog and lots of good tips.
We are launching a project called “Open Car Price” that might be of great interest to your readers.
OpenCarPrice.com is a project that utilizes the “wisdom of crowd” to build a database of “actual paid prices” for new cars, based on sales records submitted by people who recently bought new cars. See an example of data here: http://www.opencarprice.com/example.php
Such a detailed database has never existed before. It can help consumers save hundreds or even thousands of $$$ in price negotiation
I include a quick overview below and more info can be found at http://www.OpencarPrice.com/faqs.html
I would appreciate if you can introduce this project to your readers.
Thank you very much!
Frank Wang
—————————————————————————————————————————
What is OpenCarPrice.com?
Have you ever wonder about this question: “why do people pay widely different prices for identical cars”?
The answer is quite simple: a consumer has no way of finding out what other people have paid for similar cars. This lack of price transparency gives car dealers to sell each and every car through a bargaining process that is more like haggling in an Egyptian Market. Facing a blizzard of negotiating tactics from car salesmen, nice people often got bad deals.
According to NADA, identical cars may be sold for prices that vary by hundreds, or even thousands of dollars, depending on buyer’s knowledge and negotiation skills.
OpenCarPrice.com has launched a project that tackles this problem with a unique approach: to use “crowdsourcing” to collect “actual paid price” data that car dealers would never share with you!
Car shoppers have submitted thousands of detailed sales records for new-cars that they recently bought. It is a good example of how the Internet and the collective knowledge of the “crowds” can do amazing things that otherwise difficult to do!
Armed with those sales records, consumers are much strong negotiation positions to get the same deals that other savvy car shoppers have managed to get. Car shopping also becomes a lot simpler - showing up with sales records of similar cars is often enough to make the dealers settle quickly without playing the “games” of negotiation.
Additional info about OpenCarPrice.com can be found at http://opencarprice.com/faqs.html
I’ve been following your blog for about six months now (since committing to getting my own financial house in order) and it’s my favorite PF site…
I wonder if I’ve missed a post about the credit card reform bill now under consideration at the Federal Reserve Board, #Docket No. R-1314?
The rules propose curtailing abusive credit card practices, the same practices that, along with predatory lending in the housing market have contributed to so many folks being in financial hell right now.
I hope that you’ll pass this information along to your readers… we only have until August 4th to speak on passing these reforms. The rules include:
Stop companies from hiking interest rates on existing balances (unless you pay 30 days late).
Stop them from applying your monthly payment to low-interest debt first.
Give you time between the bill and the due date so you can always pay on time.
Stop interest charges on debts paid off the previous month.
The credit card companies are going to be fighting this with everything they’ve got; the more of us that support the bill, the better the chances of it passing.
People can take action:
Visit http://creditcardreform.org/, a Web site maintained by Consumers Union, and tell your story in the box provided. (Consumers Union is the organization that publishes Consumer Reports.)
Visit the Federal Reserve’s comment site and scroll down to “Regulation AA - Unfair or Deceptive Acts or Practices (R-1314).”
E-mail regs.comments@federalreserve.gov, and type “Docket No. R-1314″ in the subject line.
Send a fax to 202-452-3819 or 202-452-3102, with “Docket No. R-1314″ at the top of your letter.
Send a letter by snail mail to Jennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th St. and Constitution Ave. N.W., Washington, DC 20551. Again, include “Docket No. R-1314″ on the top of your letter.
Thank you, JD, for all your hard work in creating and maintaining this blog!
Hi JD,
I’ve been a reader of yours and Trent’s at the Simple Dollar for about a year now. I like following both of your posts and I’ve been inspired to start blogging as well and I started yesterday. I posted my second article today where I talk about an interesting approach to credit cards, that I’ve never seen you or Trent cover before. Could I get your opinion on it?
http://www.needsorwants.com/2008/07/29/the-best-credit-card-ever/
Any other advice you could offer would be great as well.
Thanks,
Eric
Hi JD,
I am a poor 25 yr old graduate student that wants to start inventing. I am thinking about opening a VGSTX account, but have doubts since the markets seem all over the place lately.
Is this a good time to start investing or should I wait a year or two?
Thanks for your advice,
GradStudent
Hey Guys,
Love the web page! I’m trying to track down an article I saw and was going to “read later” and now can’t find. It was about a guy that makes money by licencing product ideas. One of his products was a spinning label for water bottles, if that helps. If anyone can tell me how to find it It would be appreciated.
Thanks,
Ben
What is your opinion on two things.
1) Rich Dad, Poor Dad: http://www.richdad.com/
2) 5 Linx: http://www.5linx.com/
If there is any opinions, please share.
Thank you,
- Antwan
Have you seen this:
http://www.mint.com/
Hi JD!
On March 14th you mentioned a “Cat and Girl” comic about needs and wants.
http://www.getrichslowly.org/blog/2008/03/14/cat-and-girl-on-wants-and-needs/
The latest one is also inspiring:
http://catandgirl.com/archive/cg0631valid.gif
Cheers,
Jan
J.D., I’m sorry to hear about your mom. My best wishes for your family.
Have you found Amazon’s ‘Subscribe & Save’ program yet? The basic idea is that you subscribe to regular deliveries of certain items with free shipping and no taxes.
I haven’t taken the time to analyze it yet, but I think it might be useful for brand favorites that people keep in the house. What do you think?
Out of courtesy I won’t post the link but a simple search should help people find the details.
Thank you!
Just wanted to say thanks for putting this together, although from what I’ve read so far, it seems it’s as much a pleasure to maintain as it is to read. I’m 36 and while my debt is just under 10K (and diminishing monthly), I am just now getting excited about taking control of my finances and learning as much as possible. Goals really do help fuel my enthusiasm. Thanks again!
JD
Please let me know if you received my reply to your e-mail. For some reason Iwas able to get yours, but when I replied I got an error stating that it could not be delivered.
Thanks for an amazing blog JD. I hope your mother is doing well and I wish you the best in the coming challenging weeks.
I read your blog regularly but have never commented. How do you recommend that college students (I am a rising junior) and new graduates handle ethical financial dilemmas in the workplace and at home? You’ve mentioned ID theft and other specific issues, but are there any other pieces of advice you have?
I recently made a correct financial decision in my internship - the situation wasn’t that grey, but there was a nuance or two. Any tips?
Thanks again,
- Genie
I like reading posts about your gardening project. Do you have any book recommendations related to gardening and food preservation? Maybe a post about how you preserver/can/dry your crops would be useful to your readers.
JD, just wanted to say thanks for the website. It’s really helped me to stay on point the last few months and I am happy to report that today, since my Orange account (which I opened because you recommended it on the blog) reached $500, I used my $2000 emergency fund to pay off my credit card totally. Until I build up my emergency fund again, I’ve got that $500 cushion. This is the first time I’ve been debt free since about 1992, when I graduated college. I’ve dug myself out of about $60K in debt (credit cards, school loans and a car loan) the last few years and your blog was a big help in keeping my eyes on the prize at the end, when I was getting really tired of being frugal.
JD, I share many of your values and am working on a project that I think you’d enjoy: http://www.capitalistcredo.com Check out the Capitalist Bill of Rights. I’d love to add you to the Blogroll as an early signer.
-Brendan
JD,
I have become a fan of your site over the past year and I think I’ve gained a lot from it… I have no debt. I have an emergency fund (3-months) in a high-interest savings account. I am considering two things: 1. Law School (next year) which will cause significant debt over the next 3 years but pay off large down the road, and 2. Living arrangements, currently I live with 3 roommates in a shared house for ~25% of my after-tax salary. The question: I am considering the purchase of a 30-40ft sailboat to live aboard. My estimated price would fall somewhere around 25-50K. I would then live aboard and be approx. 2.5 miles from my office rather than a 1.5 hour commute as I have now (btw, work pays my commuting expenses on public transportation). I have looked into slip fees, mooring fees, and anchoring… thinking that I might start at a slip and try to move to a mooring or anchor set up once I get accustomed to the lifestyle. I figure that I might enjoy owning a boat and living on it more than renting forever since I’m basically 100% priced out of any legitimate home in my zip code. What do you think? Would it be all that horrible to take on some debt to own a boat and live on the water closer to work? I’m thinking of a 1970’s sailboat so big gas expenses wouldn’t be too much of a concern. I can afford to pay approx. ~600/month into whatever living arrangement I have, be it renting or a boat loan slip/electricity or mooring fees.
Thanks for any thoughts you can provide!
Hi JD,
just wanted to let you know that you sounded great on On Point last week. I listened to the show twice, mostly because I couldn’t believe what the final guest was saying - can’t imagine who was paying that guy to defend credit card companies!
Talking of credit cards - I was just paying the July statment on my Bank of America card and noticed a finance charge even though I had paid the full balance last month (as I do every month). I was charged 12.99% on all purchases that month. And this occured the month before. I called immediately. Their new policy is that if you have a balance left over from month 1(in my case $200 because i was waiting for a store credit), in month 2 you will pay interest on the $200 plus all purchases and then in month 3 you will pay interest on all purchases even if you have paid off the total at the end of month 2. May be I’m naive thinking that if I pay in full each month, I won’t be charged! The interesting thing is that the customer service rep credited the charges within a nano second - I didn’t even have to ask - hmmmm. I think I’ll cut my card up later.
Hi,
I just started reading your blog this month and it’s great. I’m 26 y/o and went back to school for nursing. I graduated and now have about $35,000 in student loans with $10,000 of it in private loans. That’s the only debt I have. I’ve been researching consolidation but my lenders and most others have stopped that option. I would love ideas on the best way to pay back student loans and also any recommended sites/blogs about people who have paid back their loans. Thanks!
J.D.,
Just read the great write up on Yahoo Finance on your debt free journey and the decision to eschew credit cards. Hopefully this will bring more people to your website and get them started on the path to financial freedom. It was a similar mention last year that led me to Get Rich Slowly. Your blog has inspired me to get my financial house in order. I have a plan now and your blog is sort of a “daily affirmation” to keep me focused on the task at hand. Thanks for all that you do on here. And I wish your mother a speedy recovery.
JD,
I have been a faithful reader for a year now. I just paid off my first CC this week and will be out of debt by the end of October with quite a bit of savings…without getting into too much detail. If I ever feel like it, I will write it all out and be a success story on your site! That is my dream!
Thank you! The service you provide is invaluable.
Faith
PS I have also encouraged a friend to do the same. He sold his Porsche, asked for a raise, took on some freelance work, and hopes to be out of debt and moving to Spain by next year!
I want to invest my 401k in local (pacific northwest) companies with less than 10 employees in order to build my local economy and not a large companies big pockets. Do you have any suggestions?
Hi J.D. I just wanted to let you know that on August 28th, my company is hosting a free ETF webinar on international investing with ETFs. I think it may be of interest to you. Here is the link to sign up if you are interested https://www2.gotomeeting.com/island/webinar/registration.tmpl?id=900604178
J.D., just wanted to say that your blog is still my most favorite blog. I just read a bunch of garbage online, even from well-known pf bloggers, and sometimes they just get sooo annoying! Thanks for not being annoying. You’re not defensive, you tell stories very well, you don’t just give feel-good advice that’s copied and pasted everywhere, or 10 tips to do this and that, your stuff is well-researched so that you don’t contradict yourself, etc. Very, very good site, and please keep it up!
Question: Does paying off my full credit card balance monthly mean paying the amount shown on my statement or paying what is actually owed up until the payment due date? (that amt would include charges made after receiving the statement)
Thanks for a great site!
J.D.,
Have you seen this article? http://money.cnn.com/galleries/2008/moneymag/0808/gallery.rasie_cash.moneymag/index.html It is called the Best and Worst Ways to Raise Fast Cash. Its more like the bad and worse ways. Sheesh. Never suggests you should find a way to earn extra cash, selling things is like 13 or 14 and only listed for items valued over 5K.
I realize its about raising large sums of cash, and highlighting some things you may not have thought of, but man. It just feels like bad advice.
Christy
Hello
Was wondering if you do a promo for the iousa movie that is currently playing in us theaters about the current debt situation _ i saw this on 8/21 was amazing
JD,
I thought this article might be something that goes with this site:
http://abcnews.go.com/Business/PersonalFinance/story?id=5633733&page=1
BC
JD,
I am sure you get messages all the time but here is a great article titled “Is Debt Your Destiny?”
Well written article and the points really hit home from me. Although for the last few years (ok many years) I have juggled my debt, paid off, etc. my total debt has remained about the same. Only this year has my total started to really decline as I have changed my behavior.
http://articles.moneycentral.msn.com/SavingandDebt/ManageDebt/IsDebtYourDestiny.aspx
Hey,
New trick they are pulling at my Fred Meyers (the one on Interstate) they are now hiding the small baskets and only have carts at the entrance.
I am assuming they have noticed that people with carts tend to have more stuff in them then people with baskets… I think someone needs to explain correlation and causation to them.
Anyways in case it does have some sort of correlation, I just thought it might be a good tip.
Just wanted to write in and say thanks to you and your blog.
Your blog is one of the reasons we were able to reach our goal of paying off our credit card debt.
14K in 7 months!
http://jirafaestrella.blogspot.com/2008/08/no-more-credit-card-debt.html
now its on to bigger and better things
Could you change the links from dark yellow color to blue color? Your site is probably the only one that has links in dark yellow instead of blue. I might have missed some of the links because dark yellow has such a poor contrast to the rest of the black written texts. Thanks.
J.D., I am so impressed with the quality of your writing and research. Your personable and highly practical blog has become an essential part of my weekday reading.I saw this article & accompanying video on MarketWatch and thought they’d offer real encouragement to readers who face the challenge of trying to save on an income that’s been heavily impacted by debt or is just plain low to begin with. It’s not perfect–many people already refrain from buying coffee, lunches, new clothes, etc and still struggle–yet the main idea is still sound. http://www.marketwatch.com/News/Story/Story.aspx?guid=206b7d259e734903bac63da99dba389f&siteid=nwhpf&sguid=Pw7wmcYJ0kSHewI9HJ6V5Q
I just wanted to start off saying that I’m blown away by the quality and honesty of this site and all of your advice that I have read so far. Currently, I’m 19 and am planning on starting a Roth IRA — as they say, “Investing Sooner is Investing Smarter.” — using what little savings I can accumulate each month (around $400-500). I read over your earlier post on How to Start a Roth IRA, and decided to start with Vanguard. I filled out the forms and was looking over the STAR funds history, and after the start of ‘07, its been declining.
Since I’m a young kid, I haven’t been up to speed on anything financial until about a week ago, but is there some trend going on right now with mutual funds? And if so, is it still worth investing at my young age; even at a loss?
Any advice would be appreciated, thanks!
JD,
I just wanted to take the time to thank you for all your helpful advice.
I started reading your blog around the beginning of this year, hoping to find the answers to my sizable debt for someone my age (21). And slowly buy surely, I’m at the threshold of beings almost debt free.
Thanks to your advice, “snowballing”, and the unfortunate death of my father (a windfall) have helped me get rid of almost all of my high interest debt along with a stack of pesky medical bills. All this by doing the right things with my money.
Hopefully with this “do-over” I’ll make the right decisions this time and not get myself back into debt.
Again I just wanted to tell you thanks!
~Liz
You information is very helpful!!
I have a question…I am 19 years old, but I can spare some where around $2000 per year, but I dont konw where to even start? What kind of funds should I put my money into so I get the best rates, because I want to earn a million by retirement…(of course)…lol
Thanks so much for you help!
Long time reader, first time caller!
I have two unrelated questions that I would love to see posts/articles about (I also need to search your site more and see if you already covered them, hehe).
1- My fiancee and I are looking to open new joint checking and savings accounts either right before or after we are married (2 months from now). What are the things to look for when choosing a new bank, and are there good up-to-date sites online that can help? I am a sucker for hi-tech ATM machines, awesome online account access (and ability to work with Quicken and TurboTax), and of course decent interest rates. The wife is concerned with ATM location, finance and ATM fees, etc. It would be great to find a way to look at all of these things without going to a branch of each and hearing their sales pitch =)
2- I have two 401k plans; one from my current company that I put 10% into every paycheck, and one from a previous job that I did not roll over (I figured it wouldn’t hurt to keep my eggs in two separate baskets). However, the last time I looked at my quarterly reports (and this goes for my other standard investment account as well), I noticed I am Losing money. I know that the US economy has been pretty bad lately, but is there anything that can be done or planned for?
I hate thinking that I would have been better off putting that money under my mattress that putting it specifically into a retirement fund. Same with my money market accounts, etc. Even a normal bank account has a positive (but tiny) interest rate.
Thanks so much!
Hello,
I have been reading your site (along with some other financial blogs) for the past few months and they have really helped me change my spending and saving habits.
I would like to start listing my spending totals into a spreadsheet budget along with setting goals for ‘bigger things’ (trips, winter tires etc)… do you have a budget template that works for you or could you please recommend a few tips on getting started?
Thanks!
S.
Hey JD, I saw this on Lifehacker today and thought I would pass it along.
http://www.ratesurfer.com/
So my sister thought you might be able to give a bit of insight into my situation. I haven’t done this before so forgive me if i rambleor give you more info then you want.
About 7 months ago I purchased a 2004 Ford Expedition. Yeah…i know I am getting there! So I had hopes that a. we would utilize the vehicle for outdoor activities and piling the family in it, and b. i had just wrecked my explorer and needed something new. So here i am 7 months later with a gas hog of a vehicle tha i only take one child place in. I could do this on a scooter! When i bought the car 7 months ago it blue booked for almost $16,000. I thought ohh, no problem, i can just go trade it in. So in talking with several diffent car lots, i have discovered the car only now books at $8000 (if in excellent condition) and that if i wanted to get a different car with half the payments and/or better mpg, then i would be upside down $10,000!!! YIKES! I was told that no dealerships will give me what i owe, which is about $18,000 and that they don’t want those cars, becuase they can’t sell them.
My friend suggested craigs list but people in the interent world would also see that it blue books at $8000 so i wouldn’t be able to get anything else out of it anyways.
I am in a financial hard place (like the rest of the world) and need to cut my payments and/or my gas down to help with my budget. Just thought you might have some suggestions as to how to handle this situation. And maybe there are other folks out there who would benefit as well.
JD,
You’ve had some great posts recently about some of the “stuff” we keep, but I was wondering if you had anything in the works for another one of your “pyscology of money”. I only ask because I had a deer slam into my truck today going to work. Checked with my insurance and it will all be covered (only actually gonna cost me about $300 to cover the deductable-which is awesome if you saw the front-end of my truck). The problem is that I had a really tight savings goal for this year and this is throwing a bit of a wrench in the works. The $300 is not going to hurt much from the monetary stand point (more then enough in the emergency fund), but just the fact that I’ve been scrapping for a while and got a setback from some animal bounding into my car from nowhere is unnerving me a bit. Though you could get a post out on something similar in the next couple weeks.
Thanks.
JD,
I really love your site and it has inspired me to do think about a lot of things I never thought about before.
I’m in my late 20’s and just started funding my long-term savings last year. I’m not 100% sure if I’ll stay in the country forever so I’m not funding my 401k significantly.
I sort of understand the importance Asset Allocation and have settled on a 80% Stock, 20% Bond index fund
allocation that suited me just fine till yesterday. I pretty much put a little money every month and try to maintain this ratio by putting money where its lower. However given the current market is that wise? I
understand that market timing doesn’t work and the best idea is to follow my asset allocation. However it just pains me to pump in money into stocks only to watch it disappear a couple of days later. Today was a bad day and so I’m at my wits end. I mean is following an Asset Allocation blindly any better than common sense?
Wouldn’t a better strategy currently be to put all new money into bonds and then rebalance at the end of the year?
I guess my question is “Are there situations where deviating from my Asset Allocation is okay?” Putting
money into stocks now seems foolish. Or is this a time for a reality check and revise my allocation to something more conservative that I can stomach?
Hi JD,
I have a quick question relating to the Credit Card usage. I have heard that it is not good to use a large % of the available credit in your credit card because it will hurt your credit score. Is that true?
What if I have been able to pay off the large sum every month? Would that still affect my credit?
I have been using my Chase Freedom card for all type of purchase and payment as I get 3% back from all top purchases. Thus, I usually use a large % of my available credit.
Thanks in advance for the help and I look forward to your answer.
Cheers,
~Calvin
Did you know that your site is named/shown in a picture in this post: http://www.problogger.net/archives/2008/09/22/10-innovative-blog-business-models/
It’s under #8, bottom of the picture, second square.
How are you doing on the 100 things in a 1001 days you listed in March of last yr?
I’d really enjoy hearing/reading a follow up to that article as I made a similar but much smaller list for myself and pasted the article on to friends.
Just thought I’d share a buying tip I ran into today. The QFC I shop at sells cooking spices in bins and in the small containers. They post the prices in the bins by the lb and at first it seemed like they were pretty expensive… Slow as it was, the thought dawned on me finally that a lb of spice is ALOT of spice. I bought about 1.5 oz(a standard container’s worth) of dill and another 1.5 oz of onion powder. It cost under three dollars combined. A single 1.5 oz container of the dill would have cost about 8 bucks! I looked online and similar containers are still about 4 bucks. So, save your spice containers and refill them if there is a place to buy loose spice near you. Considering my cabinet houses around 50 or more containers and I go through them about once a year, some more than others, I can save hundreds of dollars every year just on spices. It blew my mind a little how much I was really spending on these because I don’t include spices in my normal budget. I just think about general grocery expenditures.
Hi JD,
I am part of the PR team that represents MoneyAisle.com, and since working with them, I have been reading your blog regularly. It’s both entertaining and informative, so keep up the good work!
College, Career, or Love?
I need some advice…perhaps you can help. Thanks in advance for reading this.
I’m 21 years old and I graduated first in my class when I was in high school back in my hometown in Pennsylvania. After high school I moved to NYC and I completed a year of college at Fordham University and another semester at Queens College, but had to stop school because I could no longer afford it. The first year that I attended Fordham, my father co-signed a $10,000 loan. The semester I completed at Queens College I paid for in cash ($2,500). I was offered a job at a media company through Newsweek Magazine after a brief internship, and because the pay was way more than I’d ever made waitressing, I had to take it.
I continue to live in NYC with my boyfriend of 4 years, and I am now an advertising sales rep for Newsweek, making a base pay of $33,000 a year plus commision (ends up being around 45-50K a year). I work on Wall Street and Broadway in Downtown Manhattan and I am gaining useful sales experience. I have full benefits and lots of vacation time. I’ve been here 6 months and although I enjoy it, I’ve always regretted not finishing school.
I recently went to visit my wealthy Grandparents in Florida this past week, and the two of them offered to pay for school and books, and provide me room and board if I agreed to move to Florida and complete my education. They said that if I provided a car to get to and from school, and got a part-time job to cover gas, clothes, and any recreational expenses, they would cover the rest.
I can’t tell you how generous and truly terrific this offer is, but I can’t convince myself to go because naturally I don’t want to be so far from my friends and family. Moving to NYC was a huge step for me, and being an hour and half from them still proves to be a challenge when I’m not able to always attend dance recitals and Trick-or-Treating. I also have a pretty decent job that I enjoy, and I’m acquiring great sales experience. Also, I’ve been with my boyfriend for nearly four years. He’s a terrific guy, we live together, and although I’m young (he’s 26) I am so in love and the thought of leaving him for nearly 4 years breaks my heart.
What am I to do?
Hey JD!
I live out in Florida and they have a bunch of new Aldi stores about to open around us. They sound like a great idea, but I’m worried that the store might be as dirty and low quality as the other discount stores around here.
Have you tried them before? What do you think?
http://www.aldifoods.com
Rachel
Hi JD
In my country (Australia), there are special rules surrounding the superannuation accounts that I believe are roughly equivalent to the 401K. Basically, employers put in a mandated amount (9%) as part of your salary package. You can put in additional amounts from pre-tax pay, that are taxed concessionally at 15% going in, and from post-tax pay which are tax-free. Employer and concessionally-taxed contributions are preserved until age 55 for income streams or 65 for lump sums. You can draw early for permanent disability, and you may be allowed to draw six month’s mortgage repayments if you’re in danger of foreclosure on your home.
The problem with all this is that it really takes away your ability to self-determine retirement. You could max out your contributions by thirty and have enough to fund the rest of your life by forty, but you can’t touch it.
This means people wishing to retire early (like me!) have to find a way of doing it from after-tax pay. We have a fairly socialised environment (subsidised health care for all citizens, generous welfare etc) and therefore pay high taxes. I don’t have a problem with this - we do get value for our money - but at this point in my life, the tax levels pose a logistic barrier to funding my retirement from after-tax dollars. Of my $78K I see about $50K.
I realise this is a bit of a crash course in the Australian context and it may not be of sufficient interest to your reader base, but I would be interested to know if you have any advice about getting the maximum retirement bang for my buck in those circumstances.
Hello JD,
Your forgot to mention that WAMU, now known as JP Morgan Chase Bank, still offers 4.0% interest through their Online Savings Account, provided they are linked to a Free Checking Account. I don’t know how long this will last, but I’m taking advantage of it until it changes.
JD - thought your readers would enjoy knowing that netflix just got the license to stream movies off the starz broadband network.
in other words: your ~$20/month now gets you unlimited access to a whole lot of new releases (and some classics) that are actually really good. i.e. Rushmore, Superbad, No Country For Old Men.
(Edit) At the risk of being a major fanboy I have to say: what a value!
Here’s a reuters article:
http://www.reuters.com/article/technologyNews/idUSTRE4900ZR20081001
JD,
I have two younger sisters, both entering college in the next year, that spend money like our parents taught us, i.e. when I have it, spend it. At 24, and 40k in debt (student loans and CCs), I finally changed my ways. I don’t want it to take so long for my sisters. What book would you recommend for them regarding personal finance? I have considered Suze Orman’s The Money Book for the Young, Fabulous, and Broke.
Hey JD,
I don’t know if you’ve noticed this, but ING recently dropped their rate from 3.00% to 2.75%; not shocking, but definitely irritating.
You’re famous! Check out the link to today’s Washington Post Magazine, Below the Beltway column:
http://www.washingtonpost.com/wp-dyn/content/article/2008/10/03/AR2008100302200.html
Hello JD,
I wanted to thank you for your blog. It has fundamentally changed my attitude and thinking about money. I have been an addict of personal finance articles for about a year or so and what is valuable to me is the never ending hope and dare I say optimism that is present in your advice.
My situation cannot be unique but it certainly feels that way. My husband and I were married 3 years ago, we are now 28, and about 6 months after we thought, “hey what the hell are we doing with our lives?”. I realize this may have been something we should have seen coming but we were comfortable. We both had mediocre jobs but they paid the bills and allowed us to play as we wished. After some soul searching we came to realize that we both wanted to go back to school.
It started slow, community college until we both discovered our college goals. My husband is in his last year at California State University, Northridge and will receive his B.A. in Deaf Studies (interpreting for the Deaf). My track has been less clear and as such more costly. I have two more years at UCLA as it took a difficult year to push me towards my current path in Education Studies.
Here is the deal. We are both committed to living frugally and within our means, but do you have any advice for dealing with the day to day? We both made the decision to go to school full time and as such have approximately $60,000 and climbing in student loans. Our credit card will be paid off within two months and we both work part time.
Do you have any thoughts or advice? I am considering a Master’s Degree but struggle with adding any more to our debt. Is it possible to accumulate more college debt and still be financially responsible? I struggle with not quitting school to try and pay the loans down.
Thanks again for your site. It’s nice, especially given the current state of the world, to read something that keeps me focused on my financial goals with a sense of hope!
Hello:
Could you please take into consideration reviewing this book for your blog- I think it would be a great fit certainly with the economic news we are receiving these days.
A summary of the book is 101 Ways to Magnetize Money. And the title says it all. Instead of worrying about our economy and where to save money, how about finding new ways of magnetizing money to oneself- The Law of Attraction.
I would also be welcome to send you a free copy of the book if you would like.
This book has been just published this year- and is doing great in sales.
http://www.101WaystoMagnetizeMoney.com
Thanks,
Christine Groth
I am 23 years old and began contributing to a Roth IRA about 8 months ago. I did not know about the phase out rule or anything of that nature. I will be making my maximum contribution this year of $5,000 and should fall under the phase out number. Next year however there is a good chance I will make enough money so that I will not be able to contribute to a Roth IRA what-so-ever, (My job is straight commission so I won’t know until the end of the year). My question is, if I contribute the maximum amount (lets say $5,000) and end up being ineligible to contribute and the value of my annual investment is now worth significantly less because of the market, (lets say $3000 for nice even numbers). What happens at the end of the year when I find out I’m ineligible and have to take the money out? Do I end up losing $2,000 because the $5,000 investment is only worth $3,000 at the time I had to take it back out? What other options would I have at this time to make sure the money I invested is going to be there PLUS interest when I retire someday? I want to start investing in my future, but I work too hard for my money to just throw it away so I am very concerned now about putting it into a Roth IRA and losing it.
I’m just dipping into this website. I discovered it through a search for “The Story of Stuff”. I found all the comments following your post fascinating. Perhaps you’ve done this already, but I would love to see you speak about expanding the definition of wealth.
We as a people should take regular audits of all aspects of the abundance in our lives. Most important I’d say is to measure our available time — with quality time amongst our loved ones holding the greatest value. What about our health? The work we do and the things we consume or bring into our homes have direct impact on our health.
What about beauty and spiritual connection? How do our personal resources and investments grow or diminish that which fill our lives with beauty, tranquility, love, harmony, purpose, and spiritual fulfillment?
And when we’re feeling financially abundant, don’t we then begin to think about ways to share our wealth with others? For some, that generosity is bestowed upon our children or relatives, for others it continues into our circle of friends, community members, or even to strangers in need throughout the world.
But how much more gratified we can feel if we use our resources (whether they be in the form of time, skills, experience, capability, or money) to increase the diversity of wealth all around us.
As a young woman, I was approached by a rather creepy looking street man late at night while getting off a subway. He asked me for some change. I normally cast my eyes away, quickly shake “no” and hurry off in another direction. But I had just come from a 2-day workshop on something related to creating your own wealth.
It was shortly after the song “Don’t Worry, Be Happy” hit the charts and we were each given a red apple with a message written on it. Mine happened to have the title of that song.
So, I gave the man my standard rejection and scurried off, but something caught me and I remembered I had an apple. Without stopping to think I turned around and shouted “Hey, do you want this?” His eyes lit up and he said, “Yes, thank you!” I tossed it to him and went on a few more steps before he called out to me, “Thank you, thank you! And God bless you!”
I was confused until I remembered the apple had on it the message, “Don’t worry, be happy.”. I turned around and looked at him. He had tears in his eyes.
What is the value of an apple? Do we stop at its price on the open market, or do we consider its potential value. I can’t begin to quantify the feeling that grew in me the night of my “gift apple”, but I am certain that the wealth that was created in that exchange far surpassed its market value.
JD, the world is on the brink of some real economic hardships. People are looking for advice and direction and you have an audience. You would serve your audience well to help them judge their wealth through a more all-encompassing lens. Investing our financial wealth in the development of our skills, character, and communities is a net increase in our wealth.
Let’s begin to give other forms of wealth equal play and reintroduce the once-American values of taking care of our communities. Our current competitive culture lives as if wealth is a limited resource — only gained through someone else’s loss. Though that may be the case with money, true wealth can grow exponentially just as a seed planted in poor soil given water, sunlight and time can yeild not only a great tree, but can also transform the ground below into a thriving ecology of rich soil. Yes, something great can be created with next to nothing–even if that something great is not valued as a part of the nation’s GNP.
When we can truly appreciate the many hues of wealth in our lives, we can then undersand how limited wealth, such as a simple apple, wisely invested can be transformed to riches. We only need to begin to see the wealth we do indeed already possess. Let’s count our blessings that they may grow.
Jennifer
Hey J.D.!
Long time lurker! But I came across this interview with Warren Buffett on the recent economic crisis. He talks about what people should do, politicians on the job, what he sees for the future and a variety of other things. I think seeing a man who built his fortune from scratch and is very easy to understand will help readers be more knowledgeable to the current situation.
http://www.charlierose.com/shows/2008/10/01/1/an-exclusive-conversation-with-warren-buffett
Also, I came across a video tutorial website that is pretty interesting. It’s like a youtube, but for practical stuff. Example, there is tons of videos on many recipes on that website. There is a whole range of subjects and the stuff there is pretty interesting.(a very extensive DIY for homes fixes and repairs, all on film!)
http://www.videojug.com/
A very cool example of the content, the toilet tank. Saves on water bill!
http://www.videojug.com/film/the-toilet-tank-trick
I think it would be a great reference site if ever there is the need.
Have a good one!
I’d like some help in figuring out how my credit card is making sure I get rich as slowly as possible. I made some very necessary purchases on my credit card. (No lecture on don’t use credit cards from anyone please) One of the purchases was given, unknown to me, a promotional rate of 1.99%, while the other purchase was at my current rate. They apply my payments to the lower rate first. Is there a way to calculate how much more this is costing me?
Hi,JD! I’m wanting to know if you would do a post on where families can live cheaply on about $1,400 a month bring home income. I would like to know if anyone knows of really cheap rural land , $300-$500 an acre. We live in Central Ohio now & would like to be able to find cheap land. I heard there is cheap land in Tenn. , but all the realty I’ve checked haven’t been what I call cheap. It doesn’t have to be Tenn. either, just country or remote country. Blessings, ohio
I saw this post on SQL Server Central of all places, and thought it was sort of appropriate for here.
http://www.sqlservercentral.com/articles/Editorial/64677/
I especially like the point of even though we all say we want to be “rich”, the fact is the great majority of us aren’t willing or motivated enough to put in the time to actually pull of great success. Sure, we may talk a big game, but that’s the difference between those who are truly successful and those who are content with being cogs in the machine. And let’s face it - the machine fails if there are no cogs, too.
JD, saw this article on money.cnn.com and thought it was inline with your blog:
http://money.cnn.com/galleries/2008/pf/0810/gallery.save_money/index.html
Enjoy!
Rob
JD, here’s another article on money.cnn.com, this one is about the personal savings rate going up to 3%.
http://money.cnn.com/2008/10/15/news/rainy.day.fortune/index.htm?postversion=2008101614
JD,
I have a question for you. After your article on Quicken online, I decided to give both Quicken and mint.com a shot to simplify my household accounting. For about a year I have been keeping separate spreadsheets for the checking and savings account and can note transfers in between. I especially like my savings spreadsheet b/c part of my budget includes setting aside money for annual-type payments, like property taxes, or putting money away for a new car. How do you keep track of this with an online program that lumps everything together. I don’t want my $300 car insurance included in this month’s spending when I already put money away for it. I’d also like to push my payroll checks forward, but that’s an entirely separate question. Thanks!! ~ Kay
SRI index funds…I want to go the index fund route AND the socially responsible route. Most of the funds I’ve found have very large minimums through specialized SRI brokers. Vanguard has a couple of options but their performance is less than stellar (in comparison to other index funds and not in comparison to the current state of finance). I don’t have a lot of money to invest but want to take advantage of getting in an index fund at a “good” place right now.
Oh wow, I didn’t realize the link would be so long.
J.D., from the Women in Red forums, they’re having a discussion about how much money is spent on kids’ x-mas presents. I started reading it, expecting people to say $25-100, however quickly was astounded by the enormous (to me) amount that’s spent on Christmas presents–for toddlers no less.
One specific comment sent me gagging: “God you guys are cheapsakes! I have two daughters and we spend about $700 each. My husband and I get about $450-$500 each. My two daughters get both of us a nice gift, around $30 and they get presents for eachother. We are not rich but compared to you guys we are.”
So from another site devoted to money-management, the answers were clearly more than I had anticipated. Am I crossing the line into “cheap” with the amounts I suggest? It would be great to see an entry about how much frugal people spend on x-mas presents. (*hint hint*)
http://moneycentral.msn.com/community/message/thread.asp?threadid=420879&boardname=Hide&header=SearchOnly&footer=Show&boardsparam=Page%3d1&linktarget=_parent&pagestyle=money1&forumid=18&board=womeninred
Oh wow, I didn’t realize the link would be so long.
JD,
Thought you might be interested in this WSJ.com piece. Would love to see a post about this by you.
http://online.wsj.com/article/SB122477680834462659.html
Interesting article on Slate today about saving & economic troubles
http://www.slate.com/id/2203026/?wpisrc=newsletter
Hi JD-
Been a subscriber and really enjoy your entries. From what I can tell, you appear to live in the Portland area. I just want to formally invite you to the Diehard Organizational Meeting @ 7:30pm Wednesday Oct-29 at McMenamins pub at 1716 NW 23rd, Portland. I’m new to the group but obviously we’re all believers of value of index funds and John Bogle’s investment philosophy. Love to see you there if you can make it.
I found this article interesting and thought you might as well. It marries investing with sustainable agriculture - good read.
http://www.odemagazine.com/doc/58/slow-and-steady-wins/
Drama in Real Life: Foreclosure!
New reader, just read the above entry.
While I am saddened by your brother’s misfortune (only a sadist rejoices over another’s misery), there is nothing that can or should be done. I am not unfeeling. It is simply that when Tony went from owning one home to two, he stopped being a homeowner and became a real estate speculator. Unfortunately he probably never even realized it.
Tony like many wanted to try to maximize his gain. I knew many that did the same thing to great advantage. Bought house 2 while prices were going up, sell house one 6 months later.
Look at the math. In a rising market, house 1 worth 250,000, with a 225,000 mortgage, held for an extra 6 months or 5% price increase goes up 12,500, or an extra 50% return on investment!!!
Now the 2nd house bought 2 months early, cost 350,000 but went to (5% increase) 367,500. So you are now in a 367,500 house, with a 312500 mortgage.
You have increased your net worth by 30,000, you own a property worth 167,500 more than the one you left, and your mortgage has increased by 87,500.
It is an incredibly seductive scenario, one that i am sure was sold by many mortgage brokers/bankers. But the first rule of investment, is that speculation isn’t investment, it’s gambling. You almost always lose, because the knowledgeable players have such a huge advantage
You should really lay it out there for people. In good times or bad don’t speculate.
The only thing that really makes me mad is that the rich and the powerful are getting bailed out on their speculations. no one ever re-imbursed me for my investment mistakes!
Starbucks is giving away free coffee to those who vote on Nov 4th! Check out their website for more details so that youc an get your coffee after you vote!
Hi J.D.
I just wanted to let you know that I picked you as one of my 5 Favorite Personal Finance blogs. Thanks for all the great content!
http://distilledrose.blogspot.com/2008/11/top-five-personal-finance-blogs.html
JD,
Just read this article about investing in the stock market that I thought you might be interested in:
http://www.ft.com/cms/s/0/ece0069c-a943-11dd-a19a-000077b07658.html
Keep up the awesomw work with the blog mate!
Andy Lynch
I canceled the grocery game back in March 08 you didn’t take any money out for a long time then in September 08 you started to take the money out 0f my checking account again. PLEASE cancel me. Carrol
I have to say that I have been receiving getrichslowly emails for a year now and I am so thankful to the person that started this blog/website. To share this kind of information is crucial to those who received it. Many blessing to you.
I would just like to know, what exactly is your income based off of? I know you’re a full-time blogger, but how exactly do you make your money? Is it based on ads alone? Please let me know, I’m very interested. Thank ya! =)
Hey J.D.,
So many comments!
Here is a pre-made grocery list I found today, pretty useful!
http://www.grocerylists.org/ultimatest/GrocerylistsDOTorg_v2_3_LTR.pdf
Enjoy,
Yvens
Hi JD,
I love your site and enjoy the wide variety of topics that you touch on.
I was going through your Archives and noticed that you don’t have any articles about renting apartments, but you do have many on purchasing homes (which will be great for me in a couple years). Right now buying a home isn’t practical for me since I am only 24 and am unsure where my career will have me located in the next few years, therefore I am waiting until I know I will be in a city for good, but am saving in the meantime.
However, I am in the process of searching for apartments for a move from California to Chicago and was wondering if you have advice about apartment searching, specifically haggling over rent prices. Is there proper protocol? Is it ok to haggle over rent prices for an apartment complex, not a private landlord? I would love to know if you have an opinion on this.
Thanks for all the great advice you give in your blog!
Sincerely,
Amanda
I’ve been an avid GRS reader for about a year and have implemented many of your ideas, loved reading about your gardening project, and emailed COUNTLESS articles to family and friends.
My husband and I just married three weeks a go and are planning a 2 week road trip for the end of the year from L.A. to Whidbey Island, WA and back. It’ll be a chance to visit random family/friends [and stay for free!], to see unique frugal sights and eateries AND to stop by various ‘tiny home’ companies [Tumbleweed and Tortoise Shell for sure!]. Anyway, we’ll be in Portland for a couple of days surrounding New Year’s and would LOVE any of your suggestions of places to see/eat/do, and frugally. And it would just be FABULOUS to meet you if possible, since our timing is a few week’s before the proposed MeetUp [which sounds like a terrific idea!]
Gena
hey there. First let me say my finances are a mess and I’m slowly working to clean up my debt. I admit I’m a creative guy that doesn’t like (even have a phobia) dealing with money. Is this common? I look at your tips and I have started following a few of them since I started reading over the summer. Since then the market has collapsed and many people are in the same boat as me now. I’m glad I started to think about my money as hard as it is to do.
Any words of encouragement for someone trying to get out of 20K in debt…
I’m over 40 and live alone. My income is actually pretty good but I’m spending most trying to pay off things and keep up with the mortgage and bills at the same time.
Greetings, JD -
A contemporary of your father, I’m a new Get Rich Slowly reader and not embarrassed to learn from the younger generation. I’m also a new blogger, thanks to my techy daughter, who set me up to document online a now-just-completed six-week trip to Africa and Israel. It - the blogging, not to mention the trip itself - was a rewarding experience, so I think I’m hooked. I’ll be following your postings primarily for blogging inspiration, although I’m also interested in personal finance tips. Thanks in advance.
I have $15,000 to invest in a CD ladder and my question is, is it better to do 3 CD’s at $5000 each or 5 CD’s at $3000 each?
Can you do an article on what things like inflation, deflation, stagflation, depression, recession, etc all mean (I’m sure there are others)? I’m all confused about these terms and am too lazy to look them all up. It seems like all are going on, but what is the worst and what is the best (not that any are good).
Thanks. Love the blog.
I tried using the address you gave for reporting phishing scams but it did not work. I did a search and the correct address is phishing-report@us-cert.gov
This is part of the Department of Homeland Security. US-CERT which stands for United States Computer Emergency Readiness Team. The main address for them if anyone is interested is http://www.us-cert.gov
Dear JD
My name is Franziskaand I am a military wife and brand new mother (my baby is six weeks old)
I read your blog daily and would like to write a few guest posts for it, my topics would include:
how to save on veterinary care
the problem of finding a realtor (we bought and sold three homes so far, at different duty stations)
what do you need to buy, when you expect your first child (there are so many things it’s confusing)
best bets on international calling (important for overseas calls, yes very important if you are military)
As I said, my baby is very young, so it would take me a few days for each post. Please, let me know if
you are interested in any of these topics and what format would be ok.
I really like your approach to personal finance and like that you let others give their opinion on it.
Franziska
Hi JD,
I (secretly) read your blog at work. It’s great! Today, all morning, my co-worker next-door has been on the phone with a long-distance telephone company trying to inquire why a “hard-hit” was placed on his account. I have NO idea what a “hard-hit” is (and what it does, why it is different than a “soft-hit”, etc.) and a search of the site didn’t yield any pertinent results. So, if i may suggest a post about hard- and soft-hits: their meanings, causes, and consequences. Thanks!
–Emily.
I’m currently working on a project for our client, Cornhill Direct insurance company in the UK, which is looking at the hidden value of the work that we do in the home. We conducted a survey earlier in the autumn where we asked 1000 people to give details of the kinds of chores and household tasks they do in their homes each week. Using data on average salaries from the Office for National Statistics we were able to calculate a value for all these tasks. Amazingly, this averages at around £19,000 per household each year.
We’ve created a calculator tool for people to be able to work out the value of their own household economy – and see which member of the household does the most valuable work.
I was wondering if you would be interested in hearing more about this – we’ve got a press release and so on that we could send to you if it was of interest for your blogging. The calculator tool I’ve mentioned can be found here: http://www.cornhilldirect.co.uk/household-economy-calculator.asp
Saw this interesting article about how liquidation pricing may not actually be a bargain:
http://abcnews.go.com/GMA/story?id=6326174&page=1
Dear JD,
Suppose a blogger (from overseas) makes money in the US by, say, advertising.
Is this blogger allowed to contribute in a Roth IRA? Or it also necessary to have a social security number?
Cheers,
Diogo
Hi JD,
I’m fairly new GRS reader and haven’t yet found the answer to my particular issue.
My husband and I both work for financial companies. Due to recent events we are feeling less than secure in our jobs. We make good money - about $200k annually and have about $30k in credit card debt. We are putting the maximum we can on our cards each month and should be credit card debt free in 12 months. In addition we have $6000 in savings.
My question is should we continue to pay off our credit cards or should we bulk up our cash position for a few months? Our emergency fund is a bit shy now. $6000 will only cover our expenses for 2 months. We could halve our credit card debt payments for a couple of months and put the difference into our emergency fund.
We rent and, until recently, our priorities were to get cc debt free, build our emergency savings, then build our down payment savings and buy a house. I just don’t know what to do.
Thanks!
Hi JD,
As interest rates creep lower and lower I felt inclined to run the numbers for my own mortgage. Unfortunately it’s proving very difficult since we have a 5yr ARM that is interest only for 10yrs. All the refi calculators I can find do not give your the option to factor in ARMs or I/O clauses when determining the break even point. Are there any calculators that take into account ARMs & the forgone equity when refinancing to a fixed fate mortgage?
Thanks,
Dominic
Hey JD,
Big fan of the site. Thanks for all of your hard work.
I always enjoy your topics but I think an interesting article would be to look at the phenomenon of many people like myself (early 30s investing/saving for retirement) who at this point are actually hoping the market goes down and stays for a while. The idea behind this being we’ve already lost 30-50% in the last year or so and figure we might as well make up for it (in time) by buying at ultra-low prices for a while.
Just a thought.
Take care,
Seth
Hello JD,
I recently published a simple, free web-based tool that I thought you might be interested in. The tool, called Job Comparator, allows users to enter compensation information about their current job and calculates their real wages. It also allows user to compare jobs, and will even calculate the present value of wages earned in the past.
The web application uses JavaScript and does not send any information over the web (unless you choose to log in and save your data).
Here is the URL: http://jobcomparator.appspot.com/
-Chris
Incident
I am mortified that Washington Mutual Card Services has changed my interest rate to 26.74% on a mere $1500.00 balance and I beleive that this is robbery in a time of such economic crisis and holiday season and there should be laws prohibiting them from being shylocks under the guise of a banks name. I am the mother of 5 children and I cannot believe that banks can get away with such robbery/oppression. Where can I make a complaint that might do some good in getting situations like mine noticed? If the people do not speak up and if the government does not help, yes there will be a depression and that is because of unfairness like this.
Damage Resulting
as mentioned above I am the mother if 5 children and I work very hard to make ends meet. the 26.74% interest rate on a $1500.00 balance means that out of my minimum payment of $48.00 they are charging me $36.20 in interest. This makes it impossible to pay off and is forcing me to write a payoff out of my home equity line which I am deperately trying to pay off in light of the economic recession that we are in. It is painful and my kids will have less of a Christmas this year as I cannot afford any of this at this time and do not wish to lose my home trying to stay a float.
Hey JD,
Just writing to offer my services as a guest blogger. If your readers might be interested in anything related to auto insurance, especially saving money, I’d be happy to provide. Some ideas are…
10 Signs You’re Getting Ripped Off By Your Car Insurance Company
What Is “Cut-Rate” Insurance - And Isn’t That a Good Thing?
The Fool-Proof Way to Save Money On Your Next Auto Insurance Bill
Let me know. You know where to find me. Keep up the good work!
Brandon
Austin, Texas
I thought you might be interested in “Quicken Online”. I’ve been using it in parallel with the regular version of Quicken, and I like it a lot. Currently it’s free, it keeps your data in the “Cloud”, but it is also simple enough for everyone in our family to understand and use.
John
I thought you would enjoy this ted conference video. It talks about what people are willing to pay for different things in context. http://www.ted.com/index.php/talks/dan_gilbert_researches_happiness.html
Hey JD, I have a suggestion for your rss feeds. I really enkoy reading your articles, but I don’t have the time to read four or five per day. Consequently, I haven’t been reading hardly any of them. Can you make a “Featured” RSS or something? I’d like to get about one per day, or one per two days.
Hey JD,
When do you say “that’s it, I’m saving enough, I’m not going to worry about my fun money so much”? I am thinking about recent posts you’ve made such as a good vs. great cup of cocoa.
I’m saving about 33-34% of my pre-tax income in 401k and for housing. But I’m spending 20% or so on fun, short term vacations, eating out, and “fixed” expenses that move around a bit especially lately like gas and groceries.
I feel like I’m saving enough theoretically, but the I feel so guilty! When is enough, enough? How do I deal with the guilt?
Hi JD,
When you get back from vacation, I’d love to have you do a post (or invite a guest) to talk about retirement savings strategies during this period of market craziness. Everything I’ve read suggests that I should stay the course and keep putting my 15% into well diversified retirement savings–but month after month after month I’m watching the money I put in lose value. In some of our retirement accounts we are down by almost 40% since last Dec. It is making me feel a bit INSANE to continue to “save” for retirement month after month in this way. I’d love to hear more perspectives on this. I don’t want to lock in my losses by pulling my money out (which I know will further exacerbate the problems if everyone does this), but am I just throwing good money after bad???
THANKS!
Hey JD,
My friend is an international PhD student who is trying to get a credit card to build her credit history in the US. However it seems that none of the major credit cards cater to non-US residents. Do you or your readers know of any credit cards available for international students with limited credit history?
Hi JD!
I’ve been reading GRS for about 2 months and have found some very helpful information. Something that I’m personally struggling with, that I would like to hear from the readers…is how do you talk to your parents about their finances. I’m not even talking about retirement; I’m just talking about getting out of debt. My mother is so far in debt, I don’t think she has a clue what her total debt is.
My husband and I are just about debt free and have been following Dave Ramsey’s plan. I feel that I can help my mom, but I don’t know how to bring it up to her and my stepdad. They just continue to make one bad financial decision after the next. Should I even say something? Is it any of my business? My feeling is that they won’t change habits or listen to me until they are READY to get debt free…. So I should just let it be. However, I worry about them making ends meet, and having something left for retirement.
Any suggestions from readers/yourself would be a great help!
Thanks, and keep up the great work!
I’m in the middle of refinancing my mortgage from 6.375% to…. something lower. I originally locked in my rate at 5.25% just in case it went higher. But the rate dropped to 5.0%. I realized my $300 application fee was less than what I’d save in just 9 months of interest at the lower rate, so I called up and they agreed to keep my application open, charge an extra application fee (instead of starting over with all the paperwork) and lower my rate. But now the rate has dropped to 4.875% and could go even lower. I guess I’ll just keep paying the $300 until the rate still drops. But it feels wasteful. It’s like paying to be sure I’m not gambling. If I hadn’t locked in originally, it could have gone up. So to avoid gambling, I locked it in. But now I keep having to pay more money, albeit a small amount compared to what I save in interest once the refinance is finalized.
Hey JD- Happy Holidays! I wanted to ask your advice/opinion. I recently received a large bonus from my employer. Half of it is going towards paying off my car. I have about $3000 left and I’m not sure if I should save it or pay off a credit card. Currently, my husband and I only have about $600 in savings. My husband works by commission only. I have a steady income and every single cent is allocated to a bill. We basically live paycheck to paycheck. I do want to pay off one of our credit cards with that remaining $3000. But we won’t have a substantial emergency fund to help us with rent and bills when business is slow and the paychecks are short. I wanted to save the $3000. But I do I want to get rid of our credit card debt. Your opinion/advice will be greatly appreciated. THANKS!
Hi JD:
First, I really enjoy reading your blog. It’s taught me (a young professional) a lot about being wise with my money.
My question pertains to the best way to allocate resources when you know that 1) you’ll be incurring a great expense in the next 9 months (gradute school accompanied by a cross-country move) and 2) wishing to pay off credit card debt (about $1800 on a 0 interest card) before becoming a full-time student again. One part of me would feel better going into school debt free but the other part of me wants to save as much money as possible for school expenses, apartment deposit, and still have some left over for emergencies. Any advice you could give on this would be much appreciated
Thanks and keep up the good writing!
I am a new fan of this website. I got here via Stumble! and found a wealth of information. So, thank you for this great site!
I also would like to show my hobby project on family budget (I hope it is not against site rules). It is called “Wallet Haven. Where all wallets can feel safe”. http://www.wallethaven.com
Thank you.
looking for life insurance advice.
my wife and i, both in our late twenties, just purchased a house and only have student loan debt.
we have been talking about buying life insurance and we believe this is the time to do it.
do you or any of your readers have any advice on what to look for, good/bad practices, etc….?
thanks.
Hi mig,
My wife an I used insure.com (geico owned company) and got a Return on Premium policy through AIG which means that you get back your entire principle at the end of the policy. It is a bit more expensive but we looked at it as if it were a forced savings account. Insure.com made the whole process pretty easy but you can always have them do the research and then go directly to the quoted company. We each ended up getting a 30yr $500K policy for about $600/yr. After 30yrs they will give us a check for ~$18K apiece.
Good luck,
Dom
Hi JD,
I have just written up a post on my personal blog regarding a method I just implemented using automatic transfers from my checking account to savings account(s) in order to achieve my goals. I think the principle is a great fit for your site (I do include a link here as well) and think it could benefit your readers. I would be honoured if you could use it as a “guest post” or used it in some other way.
Here is the link:
http://pbriscoe.com/2009/01/06/automate-your-savings-realize-your-goals-faster
P.S. Thanks for all of your great articles, I’m a faithful reader of your blog
Patrick
JD,
Long time listener, first time caller!
A friend of mine constantly disagrees with me on the necessity of credit cards as they relate to your future ability to get a loan. I would like to hear your insight into this issue, because I think that I might not have the right facts.
After an ugly episode with credit cards much earlier in my life, I have sworn off credit cards entirely. Completely zero cards, including no store cards or rewards or whatever, and now I have no debt of any type. I pay for everything with cash, and I am totally okay living like this. It keeps me living within my means and reduces the amount of paperwork and hassle within my life. I think I am doing the right thing for myself given my poor self-control.
My friend, on the other hand, owns several different credit cards and a staggering number of “Store Cards” (you know, for discounts and coupons at various retail outlets) and constantly hounds me about how foolish I am for not owning a credit card. Sometimes it’s a source of tension, since my refusal to buy anything I can’t afford stops me from doing fun stuff he wants me to do with him like spontaneous road trips or joining a sports team of his that requires expensive equipment.
He has a variety of arguments to encourage me to get a credit card, one of the most frequent of which is that I am not building credit history and I will never be able to obtain credit later in life (especially for a mortgage or buying a home one day). He claims that the banks won’t give a loan to somebody like me who hasn’t owned a credit card- or in fact been a debtor to ANYTHING in any sense for the last six years.
I think this can’t possibly true. Shouldn’t a bank be impressed that I have lived within my means my whole life? I understand that maybe a person with a longer credit history might get a slightly better deal, but I can’t think that the banks would turn down a solvent person just because I never had an Amex!
I plan on having $10-20K saved up as a BIG down payment for when I finally do buy a house. Is it really true that the banks would say no to a person like me even if i had a big down payment and everything? Or is my friend just trying to goad me into a credit card so he can drag me into his more lavish lifestyle?
i just read your footer, “This site is for entertainment purposes only. J.D. is not a financial advisor,
and nothing on this site should be construed as financial advice.”
dude.
> Heh.
> I’m not sure what that “dude” means. If I
> only I could hear your tone of
> voice and see your facial expression…
>
> –j.d.
Then I believe I am not conveying the enormous irony of a professional financial blogger claiming both “this site is for entertainment purposes only” and “nothing on this site should be construed as financial advice.”
People take what you say seriously and you should respect them enough to acknowledge that.
The real cost of home ownership.
I was approved for FHA backed financing, and I wanted to get more educated on the real cost of home ownership.
I understand Local Taxes, School Taxes, Tax on the tax. Mortgage insurance, property insurance. Is there anything else I need to know? I have some cash, but not the 20% down to get a home.
After looking at all of these costs, I am debating as to whether I just need to buy less house to compensate for the taxes and insurace.
Any posts, or referrals are really appreciated.
Hey JD…Just wanted to say thanks. Your post a few weeks ago (while you were supposed to be on vacation) about refinancing sort of lit a fire under me. My husband and I had casually talked about it a few times over the past few weeks but really hadn’t been paying attention to the rates. We didn’t actualy NEED to refinance…we had a good rate, a payment we can afford and only 8 1/2 years or so left to pay on a 15 year mortgage. However, my husband works for Wachovia and no one knows yet what is going to happen when Wells Fargo takes over. We are taking a hard look at our budget so that we will be prepared in the event that he gets laid off.
Anyway, we were able to refinance to another 15 year mortgage at about 1% lower than our current rate with no points or origination fees and very reasonable closing costs. Because of our large amount of equity in the house, this dropped our payment nearly $400 a month. Our plan is to continue paying the same payment we are paying now and still paying off the house in 8 years or so. We are very financially disciplined so I don’t see this being a problem at all. But, should something happen to my husbands job or should we have any other financial disaster, then we would have much more financial flexibility than we do now. I work very, very, very part time but with just a little bump up in my hours, I could cover the mortgage on my job alone.
So, thanks for getting me moving on this issue. We literally had the research done and the paperwork finished and in to the bank less than a week after your post. And my stress about the potential lay off is significantly less than it was before.
Hi there,
I just found your blog, and I’m glad I did. Not only do you provide valuable information on personal finance, but I’m also hoping to one day do the same thing (to write full-time).
Anyway, congrats on the recent move and good luck. I look forward to learning more from this blog and your other blog on physical fitness.
Cheers!
Hi JD -
I was considering submitting my blog to be on the PF Blog Aggregator. I noticed that you are on that list (along with 1.2 million others). I was just wondering whether there was a detriment to doing this. Would you mind letting me know if there is any reason I should not do this. I thought it might be a good way to get my blog out to a few more people. If you don’t mind and get an opportunity please email me your thoughts on this.
Thanks,
Todd
“What I’m trying to say is, “I’m NOT a financial professional! Don’t invest in Washington Mutual just because *I’m* investing in Washington Mutual. I’m learning this stuff along with you, and I’m bound to make mistakes. My goal here is not to offer financial advice, but to share what I learn along the way.”"
now THAT would be a great disclaimer for your site! it’s one i could buy into.
btw, i’ve been contacting you through comments instead of email because a while ago you said it was a better way to reach you than through email.
please, consider changing your disclaimer to what you shared above and in your email, that would be a disclaimer i could respect from a site that does a lot of good.
I’m a new reader, so this may be out of context. RE: Your post yesterday about not doing advertorials. I actually found your site through this link:
http://www.reviewme.com/Money-C53/Get-Rich-Slowly-22247.html?rmadv=
FYI
Hello, I love your blog. I am a Sales/Customer service representative for a major credit card company. I have noticed the recent posts about the credit card issue and I am willing to do a Q and A on the website if it would benefit your readers. Shoot me an email
@Ed (#314)
Yeah, I need to take that down my ReviewMe account. I signed up a couple of years ago just to see what I could earn with it. But then once I’d done so, I didn’t like the idea, so I’ve never followed through. I still get review offers now and then (I just got one last week), but I just ignore them.
Thanks for pointing this out. I’m going to deactivate my account since I have no intention on ever accepting a ReviewMe offer.
@creamcitian
You make a convincing case. I’ll see if I can’t draft a more appropriate disclaimer.
I know you’ve probably said, but I don’t know where . . . what do you use to track your spending and how often do you maintain that log? I find it hard to organize my receipts. Any tips for filing those? Which to keep, how to file them? How long to keep them?
Google Reader gets backed up ’cause I can’t seem to get to it every day, but I enjoy reading your blog.
– Thanks.
Hi J.D.
Thanks for writing a great blog with great content. I’ve been directing a lot of the college kids to whom I give seminars to visit your site.
2 questions:
1. Do you prefer Wesabe or Mint?
2. What would be the easiest way to track income and expenses for my Tupperware business? I don’t have a special account for it, so I would need to manually enter the amounts. I’d like something I can use online, since I would use it from both home and work.
Thank you!!!
Elena
Hi JD
I have been a regular reader of your blog for a few months now. I really like your site and your writing style. I want to ask you a question about the photos you use from Flickr or Google images. Do you actually ask the permission of the owner every time OR you just link their site ( or source) to the photos so the users, when click, know the original owner?
Thanks
Hi, DollarDream$.
For the past two years, I’ve consciously tried to avoid pulling stuff from Google images. I used to do that all the time until a copyright holder wrote to ask me to stop. Since then, I’ve made an effort to use only images I can legally use.
This means that I use my own photos, photos that I buy from iStockPhoto, and Flickr images with a Creative Commons license that allows commercial use. (Part of using a Flickr image in this way requires that you link to the original image, so I do that.)
Hope that helps.
Hey JD,
I wanted to know what would and how would you suggest to starting my blog. I’m a college student who is 23 with debt and I was thinking I should start something to do in the spare time that would be creative. At least even if it doesn’t bring any money in I will have something people can know me by. Also summer is here very soon in the states and I think it would be cool to be hanging out in the library or at home or in the street writing and sking others ideas for my blog. I would really appreciate the feedback.
I want to start a Roth IRA at vanguard. My question is: Should I put the money in an index fund or in a target age retirement fund? I already have a 401K that is invested in a target age retirement setup. Thanks! Michelle Thomason
Hello JD,
Do you know anything about lowermybills.com?
Thanks!
JD -
Thanks for all the great blogs and ideas on GRS. I am a regular follower. However, sometimes I find the blogs are often geared toward couples or single individuals and not necessary families. I’d like to see more blogs in the future on advice for families, by this I mean 2 parents and possibly 2 or 3 children living together. You give great tips on savings and goals but when you are raising a young family and already cutting corners everywhere goals for the future can be even harder to see and financial planning can take a back seat. Encouragement is often needed and reading a book can take months. Following a blog can be done much easier. Just an imput.
Hi J.D.,
I’ve been reading GRS for a little while now, and I appreciated the tips and food for thought you provide. I was working on our 2009 finances today and realized that, sort of quietly, my husband and I just passed the point where our assets are larger than our debts. We’d been slogging away at our debt for over 2 years, and suddenly we’re at the point where we can see the light at the end of the tunnel. It’s a great feeling.
Just wanted to say thanks for this blog: it’s been a big source of support for me as I’ve learned to navigate the world of personal finance. Like you, I didn’t learn any of this stuff when I was growing up, so I need all the help I can get!
Thanks again. I hope you and your family have a great 2009!
JD, I am very sorry for the loss of your friend Sparky. He sounds like quite a guy, a unique individual who lived his life freely and without guilt. My sympathy to you. I hope you plan a terrific memorial for your friend and send him out with a blaze of glory.
Thank you for sharing this and for your site and hard work.
JD-
I can’t belive the inauguation is costing $150 MIL! Talk about access and not being a good “frugal” leader (which is what we all need right now) for these hard times! This is Obama’s answer to helping the economy???It’s just sickening to me.
http://thechronicleherald.ca/News/1101431.html
I am truly sorry for your loss. I all o fyour wealth of information for living (financially) wisely, it is good to recognize that friendship is the wealth that falls into your lap.It is one of the few things you cannot buy, but is enriched exponentially by personal investment. I could be penniless, but be the richest person for the friends I surround myself with.
Do not ever forget Sparky, for he will ever be watching you and whispering secrets in your ear.
Thank you for sharing your knowledge and experiences with us!
Hi JD,
I was wondering if you or your readers have advice for choosing life insurance. I’m expecting my first child in June and my husband and I are clueless about good versus bad life insurance options. Both of us work full time but neither of our jobs offer life insurance (I’m so clueless I’m not sure if that’s something typically offered by employers). We have been contacted by many life insurance companies so it’s just a matter of learning which one has the best deal.
Any advice would be greatly appreciated!
Hi JD,
My name is Danielle and I work for Career Services at my college. You have some really helpful, and easy-to-understand, financial tips. I was wondering if I could repost one of your articles in the campus newsletter. We don’t sell it; it’s free and we would give you credit as the source. Just wanted to check with you on that. If you could e-mail me that would be great. Thanks!
I started checking out your blog after seeing clips here and there on Lifehacker. Great stuff. Especially for somebody like me: I screwed up my credit in college and when i started working parttime through school.
Basically, I was able to get my dad to cover the debt (of which i am paying him the principle and a bit of interest for screwing up, but its no longer negatively effecting my score). I am almost debt free now, and wanted to know about building credit.
I have a few friends that say that my method of using my card and immediately paying off the balance is no good. They say companies want to see you carry a portion of the balance over. This seems very counter-intuitive to me.
I spend a maximum of 20% of my credit line in a given month, which is all paid off. Any info on that little point would be greatly appreciated.
Thanks.
Hi JD,
Just a link I thought you and your readers might be interested in: the $50 rule:
http://mariazannini.blogspot.com/2009/01/more-for-less-detente.html
Cheers
Deb
Here’s a question for you regarding when to close or not close a credit card account.
My CC Company just gave me notice that my APR on Purchases (including existing balances) is going up by 5%. If I opt out, they close the account.
I’ve calculated that the extra interest will be about $30 per month.
I have excellent standing with this account, and my credit score is over 700. How badly will it reflect if this account is closed? Is it worth an extra $300-400 per year?
Hi JD! I was listening to NPR this morning and they had an intersting article on an ad campaign Finland is running right now - to get people to SPEND money, and quit saving so much, to stimulate the economy. Thought you’d find it interesting!
http://www.npr.org/templates/story/story.php?storyId=100029082
Finland is taking a novel approach to fighting the recession: a national ad campaign urges people, in this time of crisis, to spend money. Some of the posters feature a demonic-looking piggy bank and read, “Don’t feed the recession.”
Just think how contrary the ad’s message is to everything your mom told you. For instance, there is another ad running right now in the United States, which also shows a piggy bank, but urges the exact opposite: “Feed the pig.” In other words, saving is good.
JD, I recently used this calculator to help me decide whether to payoff my mortgage or invest the lump sum. Different than other calculators on the web, you can easily run multiple scenarios to see what the best (investment) use of your money might be.
Very ‘to the point’ calculator I thought others might find useful.
http://www.hughchou.org/calc/payoff_v_borrow.cgi
I’m sure you get this all the time but I wanted to add another to the pile. Thank you. Thank you so much for what you do. Your website is easily the best out of the financial tip websites out there. You, combined with my mint.com account have enabled me to completely change my financial habits. I was never in real trouble - never had more than $1000 in debt and never had an extremely expensive taste in goods. However, my habits were unsustainable. I was not actively contributing to my IRA, savings, or thinking long term at all. I’ve come to realize that saving money and eventually becoming “free” from financial worries is much more rewarding than that new couch or bigger TV. Thank you so much.
Justin
A dedicated reader
So, I just stumbled across your blog - in a random way (it was mentioned (not even linked) on slashfood.com). Glad I got curious and searched for ‘get rich slowly.’ I found a new feed for my Google Reader.
I’ve think a lot about the things you write about. Always good to know there’s someone else out there…who can verbalize the thoughts better than I can.
Funny thing is I showed my associate here at work, thinking I was the first person ever to discover your blog - and she says ‘yeah, I subscribe to that feed, too…my fiance turned me on to it.’ So, you’ve got some fans out there obviously. Add me to the list.
Thanks.
Hi,
I just wanted to tell you how sorry I was to hear about the passing away of Sparky. You are so lucky to have had a friend like him–he was one-in-a-million, wasn’t he?
Hi JD,
I’ve been reading you for a long time now, and LOVE your blog. Thanks for all the hard work you do!
Here’s a question for you: I changed jobs in September, and couldn’t immediately rollover my 403b into my new employer’s 403b. Now that I’m finally allowed in my new 403b plan, my investments from my original employer are down 40%. If I roll now, won’t I be taking the actual losses? Should I wait for my original investments to recover a bit before doing the rollover?
Thanks in advance for your answer.
Get Rich Slowly is one of the few blogs I continue to read even when I feel RSS burnout. Thanks, J.D. The blog evolves as you evolve, and that’s what makes it interesting. I evolve as I read the blog too. Which is why I have a question that I wouldn’t have even known about 2 years ago: What do you (and GRS readers) think about home warranties? I bought one when I bought my house last year for $495. It’s up for renewal at $600. Nothing has gone wrong with my 1926 house so far. I’m sure it will, but I wonder now if I should just start a home repair savings account with the $600. When I searched for “home warranty” on GRS, I felt a bit of anxiety at getting no results.
Reading some posts on this site reminded me of the time I went to the bank to pay off my car loan. My wife and I had no kids yet and she was still working, so we’d saved enough to pay off my car loan three years early. I handed them a check for the balance and they looked at me like I was from OUTER SPACE and asked me “was there some kind of a problem?!?” and I am thinking yes, there was, you are paying me 0.5% on my savings account and lending it back to me at 7.25%! Duh.
Hi JD,
I am currently reading “Maxed Out” by James Scurlock and I wondered if you had read this book before and what you thought of it. It seems to give a good history of the financial system and has the origin of credit cards (which I did not know), but the author seems to think that credit is so addicting that people have no choice but to be run over by the financial “machine”. He also seems to have a personal vendetta against Suze Orman which I don’t understand. He recently posted an “article” on MSN about how no one should listen to her or invest in the stock market ever because we are just feeding the financial beast. Now, I am even more confused! Is investing still the best option, or will I just be helping banks screw the little guy?
Hi JD! I love your blog! I am wondering what books you might recommend on general economics/finances. I’m not interested in learning about “investing” or personal finance, but to gain a better understanding of general economic topics and issues. I searched past blogs but didn’t see any books that seemed to fit this category (I’m sorry if I missed something).
Thanks!
Krista
Hi JD,
Love the site and am a loyal GRS reader. Wanted to get your thoughts on self-directed iras - the ones where you can invest in real estate, tax liens, loan money, small businesses just about anything. Seem to be growing in popularity because of the market craziness.
There is a whole week dedicated to them http://www.selfdirectediraweek.com.
Might be worth discussing, keep up the great work.
Hi! Long-time reader, love the site, etc.
This might be old news, but I suspect with the current financial mess, it’s happening to a lot of people and might bear repeating.
I was reading over my credit card statement from HSBC/Discover this morning, and noticed that that card’s rate had gone from 11.99% to 14.99% since my last statement. (And no, it wasn’t late or over-limit - that card had a zero balance the previous statement, and a whopping $35 balance this statement.)
Needless to say, I was nonplussed. So I called them to see what was up. They gave me a line about how it was a “business decision,” and how I wasn’t the only one affected, blah blah blah. So I told the guy “Look. This new rate means that I will never use this card, because it now has a higher interest rate than all my other credit cards. What can you do about it?” He hemmed and hawed for a bit, then said that they could offer me a 6-month promo rate of 6.99%. After the 6 months, it would go back up to 14.99%, but I could call again to have it “re-evaluated” at that time.
I’d be willing to bet that HSBC isn’t the only one sneaking in some rate hikes to try to reduce their losses from the economic debacle, and it’s a good time to remind your readers to ALWAYS read their statements carefully, and if they change something you don’t like, or even if you just happen to have a rate higher than you’d like it to be, ASK them to change it. They might laugh at you, but they also might be surprisingly flexible. Never hurts to ask.
Hi JD and fellow GRS readers. Long-time reader, second-time commenter. I am hoping fellow GRS thinkers can help me in my financial conundrum. My husband is a web designer and he just got laid off. He was the breadwinner of the family. My meager salary will be able to cover the majority of our monthly expenses (the necessities, no credit card debt), but we’ll probably have to withdraw $1k every month from our savings (we have a year’s worth of expenses saved) to help pay the rest. Our 1.5yr old daughter goes to daycare everyday and she loves it. However, tuition costs over $900 per month. (The daycare does not do a drop in service where you can leave the child at the day care every once in a while.) Should we continue to keep our toddler in daycare, thus withdrawing almost $2k a month from savings, just in case my husband gets freelance work? We do not expect the freelance income to cover the expense of daycare every month, but it may lead to full-time employment. (And no, my husband will not be able to juggle being both Mr. Mom and freelancer during the day. And no, we don’t have any family or friends that we can drop off the baby with time to time.) Thanks for any suggestions you can share.
Hey JD!
I’ve been in the shadows, faithfully reading your blog from day 1 - I’m up to Oct. 06 right now.
Here’s a ? - I lost my job, am receiving severance + unemployment. I have a small savings account & about $4200 in cc debt. I’m confused as to how to balance out saving a % of my income and what % to throw at my debt. Should I just save as much as possible & make the minimums on my cc or try to pay as much as possible on my cc & still save some money? In this economy & in my area (Stuart, FL) the job market is HORRIBLE!
Thanks - I just started a blog as well. I want to be accountable for my actions and thought I would do it publicly. Any words of wisdom to get my blog ‘out there’ would be helpful too.
Keep up the awesome job you do!
Thanks,
Jan
Dear JD:
Spotted this in the Seattle PI this morning…it originated in Indianapolis.
Love your site and read it regularly. Mike Diamanti Whidbey Island
http://seattlepi.nwsource.com/money/400213_financeliteracy16.html
Your article on “How to Build Confidence and Destroy Fear” is my favorite article that you’ve done. I def. get a lot out of these type of articles.
JD, I need some advice.
Right now I’m on a gap year- I’ve finished school and I’m taking time out before uni or more courses. I’ve been working full time on a ten month contract, earning about £960 ($1400) after tax, and so far I’ve saved £2300 in my ISA (british tax free account).
When my contract runs out in May, I’m hoping to do some travelling- a week in a Japan and then a week staying with a friend in Oregon. The current estimate for flights and accomadation is £2800.
My question is this- in my current account I will only have £1250 when I get paid this month and pay my rent- should I raid my ISA to pay for the holiday, or take out a loan I know I can cover with the rest of my salary up until my contract ends?
I know interest favours the young, and that’s why I have this saving’s account, but money is made to be enjoyed and I really want this travel experience.
Thanks,
Roo
I am recently engaged and am looking for the best plan to pay off our student loan debt. Combined we have about 150k(120k from her and 30k from me). Both of us have graduate degrees (Physical Therapy and MBA). We are both 26.
Currently, we are doing the debt snowball and have reduced our debt to 130k.
My question is should we stay focused and only pay off student loans? It will take approximatley 4 years at our current pace.
Are we hurting ourselves in the long run by not funding ROTH IRA’s until our student loans are paid off?
Hi there-
I currently have about $25k in credit card debt and my monthly income after taxes is $4400. My mortgage payment is $1850 and monthly bills totaling $2000.
My question to you is how should I set up a plan to get this debt down? I have transfered balances to 0% for a year or more but I have 4 different cards so the monthly payments are around $600 for all of them with not paying much more than the minimum.
I am willing to try anything to get rid of this debt but it seems like its not going down because after all expenses there is no money left. Any advice you can offer is much appreciated.
Thank you for your time.
Sincerely-
Stressed Smith
Every morning while I make myself a wonderful home brewed, hand crafted latte I think about the $1500.00 per year that I am saving by not going out to one of several local coffee shops. I mentioned having my own machine to one of my fellow bus riders and she thought having a home machine was too much of luxury. I say it’s a huge money saver. Once a week, my boyfriend and I go through a 7 dollar can of LaVazza coffee and 2 gallons of milk. For 12 dollars, we each enjoy at least one latte a day, and sometimes two. If we were puchasing these beverages at the corner coffee shop, we would pay out a minimum of 6 dollars/day X 7 days for 42.00/week. $12/wk X 52 = 624.00 and $42/wk X 52 = $2184.00 for an annual savins of 1560.00
We paid $230.00 for low end machine 2 years ago and have been saving every day since!
By the way, I purchased our machine at a wonderful Espresso machine shop in Lynnwood WA that has great show room and will let ou try out machines before you buy. They are also online at http://www.seattlecoffeegear.com
I have no association with these folks, just been a satisfied customer.
I hope other coffee enjoying folks will consider going home brew. Even if it’s part time, you will still save plenty of money.
Hi, JD. Was just reading the NY Times and saw this article. What do you think? It seems to me that the U.S. is beginning a paradigm shift in the realm of debt, credit, frugality and living within one’s means. I would like to see a healthy economy, however I do believe that we in the US need to consume less. Is there a happy medium, in your opinion?
sorry, forgot to send you the link:
“When Consumer’s Cut Back: A Lesson From Japan”
http://www.nytimes.com/2009/02/22/business/worldbusiness/22japan.html?hp
My current Roth IRA charges me a 5.15% sales charge for every deposit I make which are done monthly and are over $350/per month. Isn’t that a bit high? How easy is it to move funds from one IRA to another?
A link suggestion for you, from a personal blog I read occasionally. She is not a finance blogger, but has taken on the challenge of stopping buying “stuff” and instead spending her money on experiences. She really sums it up nicely here, after a co-worker asks how she could afford a recent trip to Madrid:
http://www.crazyauntpurl.com/archives/2009/02/mas_madrid.php
Anyways, I thought it was nice. Keep up the great work, JD, I love reading regularly.
I thought you might frind this article on Starving Artist Economics interesting:
http://adistantsoil.com/2009/02/26/starving-artist-economics/
I knew it was hard making a living as an artist, but this explains why.
J.D.,
From the looks of it, these folks need to read your post of earlier today concerning homesteading and such.
http://www.cnn.com/2009/LIVING/02/26/economy.survivor.farm/index.html
I am having trouble imbedding the link, but this is a bit of a sob story about a couple who had to leave Beverly Hills to live in, heaven forbid, Oregon!
P.S. I’ll take Oregon over So Cal any day of the week. Thank you for all of the inspiration that you have given us.
Hi,
Just a quick story idea.. Given the giant mess we are wading through, have you ever thought about writing an entry on how to negotiate a drop in rent: what to ask for, and how to calculate it.. how to go about it.. etc ?
Thanks
J
I am a 22 year old recent college grad, about 6 weeks into my first job (being paid rather well). I managed to emerge from college debt-free with over $10,000 in savings (also currently putting 90% of my paycheck into savings). Also, I have a COMPLETELY BLANK credit report. No credit cards, no student loans, no car payments, no rent payments, NOTHING. (How on earth did I get to this point? Well, it’s a long and unimportant story involving a very wealthy and very generous grandmother.)
With prices down and first-time home-buyers rewards up, I want to buy a house! Unfortunately, half a dozen banks have rejected me for loans, saying that I need 6-24 months of credit history before they can even THINK about giving me a loan!
So, I need to build credit. I thought the logical answer was to get a couple of credit cards and perhaps buy a car. But now credit card companies are rejecting me! They want to see a credit history too!
So my question is: How on earth can I build credit if seemingly all creditors want me to already have credit? Any advice would be much appreciated!
Hi - I just got the amazon kindle and would love to read your blog on it as I endure my long commute without a computer. Reading other blogs has been so easy on this device and they are delivered daily.
For more information…there’s a link “calling all bloggers.”
https://www.amazon.com/gp/html-forms-controller/Digital_Periodicals_Sign-up
Thanks!
Hey JD,
Found this gov’t site geared at younger people to manage their money from Quebec.
http://www.tesaffaires.com/en/
(The site name translates to “your business / life”)
Thought you might like it!
Hi, my mom and I are going to start canning this summer. Do you have any recommendations for a canner/pressure cooker? We have 9 people in our family.
Thanks,
Rebecca
Hi JD,
I’m a young woman who has decided not to end up in my parents’ situation: laid off, loaded with debt, and unable to afford retirement - ever. I’ve been making the maximum contributions to my 401k, and continue to do so in spite of the weak economy. I’ve paid off one of my credit cards, and have one more to go.
My question is this: I’m going to receive a $1,000 bonus through my job this month. What should I do with it? Pay off a substantial chunk of my remaining credit card debt; invest it; buy a CD; or start an IRA? I’m pretty much a novice when it comes to saving, but I want to learn!
Thanks for your help,
Janna in TX
Great site. Please consider adding your blog to the Kindle Blog list. That way, I can read your great articles on my Kindle without having to use the crappy browser. Here’s the link to the amazon blog adding form: https://www.amazon.com/gp/html-forms-controller/Digital_Periodicals_Sign-up
Hello J.D.
First of all, let me tell you that I am a HUGE fan of your blog. Keep up the good work! There is one BIG question that I need to ask you, and I hope that you will be able to provide me with some answers.
I just read your recent post about index funds and my mind is sooooo decided on investing using index funds. However, I live in canada and I have absolutely no idea of where to start, and can’t seem to find that information anywhere at all.
Do you know anything on the subject?
Thanks a bunch. Looking forward to getting an answer from you, it’d be awesome.
hi! i am wondering if you can write a topic on the places in usa that a person can buy for $30,000. i am interested in something like little house on the prarie or the modern home, open floor plan with maybe 800 square foot that is on 2 acres with low maintainance that i don’t need a lot of money to live on, and nice area. i am not looking for bad or foreclosure homes. i am thinking if big houses’s prices are down, shouldn’t little house be even cheaper. i want to live simple and be more like homestead people. i don’t need a lot of stuffs , just necessities, but i do want modern conveniences like up to date in door plumming, etc. i hope you can do a topic on this. thanks so much.
JD,
How about ING? Do you think they are a financially stong institution? With all these banks failing it has my wife and I a little spooked.
Thanks,
Jared
My husband reads your site all the time and you have great advice, so I thought that you would be a great person to ask my credit card question.
My husband and I are both 22 year old working adults with minimal debt. We just purchased our first home at the end of January. We both have credit scores above 750. We just recently got approved for and have used a new credit card with a $7500 limit with no payments or interest for 6 months (through BOA). That card is in both of our names. We each have a card with no more than a $2000 limit also from BOA. The only other cards we have we do not use and have not used in years. (They include a David’s Bridal card, IKEA, & a “funancing” card from GE).
We are getting ready to purchase a table and chair set for our dining room and they are offering a credit card that, if approved, offers 0% interest for a year and you get a $25 gc back for every $250 or so spent. We would be getting back roughly $100. So my question is, should we apply? I do not want to do anything to harm my credit score or his. Most of those cards mentioned above are in my name. My husband only has the Visa that has both our names and then his BOA Visa with a $2000 limit. Should we apply under his name? Thank you so much in advance for any advice!
Hi JD, I just started a new blog. I plan on writing articles about financial planning, retirement, and important financial decisions one may face during a job change.
I’m new to this but was curious to see if you would welcome a guest post or have an idea that perhaps I can write a post for. I am a Financial Planner. You can take a look at my blog at: http://www.davidfontaine.typepad.com/
Thanks,
David
Hey JD,
My name is Dan and I run BankVibe.com. I was wondering if you would be interested in having me as a guest writer for your blog. I have a few subjects I was thinking about writing about that would probably be of interest to your readers. Let me know either way, thanks!
Dan
BankVibe
PS. If you wanted to write for BankVibe.com I would certainly allow that as well
JD,
I’m curious about identity theft and identity theft protection-have you come across any good resources about these topics? I have an account with Wells Fargo and they recommend Trilegiant Identity Theft Protection (costs 9.99$ to 14.99$ per month). Does this seem worth it? I’m trying to find some second opinions…
Thanks.
JD, I love love LOVE your blog, it is awesome.
I was searching the internet a month or so ago for cheap cable and internet, and one of your posts came up in the search engine. I clicked on it, and have been a daily reader ever since.
A few months ago I decided to get my finances in order. I make about 3500 take home pay, live modestly, and still could not seem to pay all of my bills on time or save any money. Every month my account was in the negative, or had very little money in it, with nothing in savings.
I have known for a while that I should open a Roth IRA, save money, invest, cut down expenses, track my spending, etc… But I just put it off. I stumbled upon your blog in the beginning of my quest to save more money. Now I visit your blog first thing every morning when I come to work, and even throughout the day.
I have thoroughly scrubbed my bills to see where I was spending so much money. I have since switched my insurance, switched phone plans, and changed my cable package (I just couldn’t bring myself to get rid of it altogether). I paid off one loan that was a 12 month interest free loan, the payments were 340 a month. I also got a raise of about 250 a month after taxes. After calculating a few days ago, I went from not having anything left over to save as recent as December, to having about $1200 left over per month, give or take, and I know I could have much more. I have also opened an online savings account for an emergency fund, and I over pay on a credit card and will start on my car payment. A Roth IRA is next. I also started tracking my spending this month to ensure I do not have money going places that I do not know about or that I forgot about.
Thank you for all the wonderful tips and advice, and for keeping me motivated about personal finance!
Sarah
I was wondering if you had any advice for someone looking to start a business with no idea where to start, specifically, buying an existing self storage business. When applying for a commercial loan through a bank what is the process? What does the bank look at when considering a loan? Do they look at personal assets and finances just in case you default on the loan? Or would they consider selling this type of business enough to make their money back if you can’t pay? Thanks.
Hi, I havbe been reading everyones issues and advice, I realize I have not prepared myself. What to do? I will have a goverment pension 1/2 of my incomne.(18,000) I owe my morgage, a 3000 credit card. I haved 2 cd’s at 5.25% is all the savings I have. 6000. in a money market. a couple of hundred in other savings. I read this site and think “wowo” they are doing so good, and I am screwed!” I have been in my profession 24 years, Goverment employee. an environmenatist, which has low status, low paid. No stock options, never had that kind of money. I do not eat out. I eat the same meal for 2 days. I hang clothes on the line, I go no where. My big cost has been restoring my 1947 house deep in the woods. I love thesilence and beauty but I am scared. I grow ny own vegtables, can and freeze,. I do not travel. I have a truck (1999) cannot afford insurance or the payments, the old ram alwasys needs fuel, I cannot afford another. I do not buy the latest fads. I have dial up (9.95) internet my biggest investiment was a digital Tv - WOOWEE I get 30 \stations by antenna. How do I make get things right so I can retire in 5 Years. I do not mind being poor. I just want to quit workijng full time and do some other things in life - e.g work at the local parks, ect. any advice? I am at a low and need advise for the poor. no movies out, no eating out, no new electronis, no new clothes, advise - am I doing ok? Thank you - pearlea
Hey J.D., great site. I visit daily. You’re an inspiration! I just started a new site called BargainsMakeCents.com, check it out sometime if you get the chance.
Thanks!
R.G.
In response to Jared’s inquery about ING (comment #371), here is a good article from bankrate that should help.
http://beta.bankrate.com/rates/safe-sound/bank-ratings-search.aspx
Cheers,
Dom
Our daughter turned 16 last week, and she has $500 to invest. We’ve got her college tuition and fees paid for, and she’ll enroll in college in 2012. She wants a long-term, secure investment. What is the best investment she could make?
Hi JD,
Love love love your site. I have a budget-related question. I am in the middle of starting my first small business, and I was wondering if you had any advice/ideas on budget templates to use for a small business…? I was thinking of using Pear Budget, as that is what I use for my family’s budget, but I wanted to check with you first to see if you had any ideas. It’s a very small business and I would only really need broad categories such as marketing, administration, misc. Any suggestions? Thanks so much!
J.D., this one might be one for Kris’ Excel abilities.
We are trying to get out of debt desperately. We have $200 in savings, make 80k per year (but have 2 houses, both fixer-uppers, so we have huge mortgage/repair bills), and we owe 11k on a car worth 10k. Is it better to keep paying our minimum car payment ($310) for the life of the loan, and keep the car? Should we sell the car and take out a loan for a less expensive one? Or save up, like, 4k while paying on the old one before selling it and buying a new one? Thanks.
I just started reading the GRS website about a month ago. It is amazing how similar the problems in finance are compared to exercise and physical fitness. The ironic part is that I adhere to the physical fitness stuff yet neglected to address the financial side of my future and business until I began reading your website. Thanks for the guidance. If you ever need a guest writer for your exercise website, please let me know. Check out my videos on Youtube and please read some of my articles.
Hello JD!
I love this site — I’ve been reading daily for a couple months now.
I see you have some information about Lending Club. Have you ever heard of Pertuity Direct? I just read about it on another finance blog and wondered if anyone from GRS was using it?
It seems a bit simplier in that you don’t have the “bid” on loans — your investment is pooled with everyone elses…they compared it to a mutual fund.
The min. investment to get started is $250 and I don’t see a min. requirement on the lenders credit score, however the borrower must have at least 660 with the average borrower score being 740.
Kita
Somehow in trying to sign up for the Google feed, I am now getting inundated with emailed updates for a particular thread. I would like to get your very good stuff only through google - is that possible? can I get off the email list and just see everything on my google desktop?
Thanks,
Dallas Pottinger
JD, have you done any posts about starting saving for retirement later in life? I am 47 and have no assets, no retirement or retirement plan. I have a friend who is 55 and is in the same boat. I just started a great new job and want to get started building my retirement fund right away, and of course, it needs to be a good gainer, and yet be pretty stable, as I am starting so late. What’s your best advice for our situation? I am already planning to work as long as I can, but I need savings, too. Can you direct me to a post or place? Or would you write about this? Thanks for your great blog!
Hi, JD. You’ve probably already seen this particular article, but I thought I’d pass it on anyway.
“Half of us have one month of cash cushion if laid off” - by Jennifer Waters @ MarketWatch
http://seattletimes.nwsource.com/html/nationworld/2008898320_scared21.html
I think we as a society may benefit in the long run if this economy teaches us to pay more attention to our longer term financial stability.
Hey JD,
Thanks for creating this website. I see a lot of my 20’s in your 20’s. I’m 34 & married now finally getting my financial life back in order. With lots of inspiration and help from you and the readers of GRS. Two quick questions.. 1) Do you or anyone you know of have any experience with HUD 203(k) mortgages? We are looking to refinance our house and thought this would be a great way to invest in some needed renovations. Our house is about 40 years old and we’re looking to replace windows, increase our attic insulation and renovate our kitchen cabinets. The 203(k) mortgage would allow us to get a mortgage for the value of the house after the renovations are done. Sounds like a great plan but finding impartial information and advice on it is tough (even with the internet). I thought a post from you might flush out some more info. 2) I found a great way to trick myself into saving. This year I used my employers fexible savings account knowing we would have some fairly hefty medical bills coming in 2009. When I signed up for it I realized they offered direct deposit for reimbursments so I set my account up to go to my ING savings account. They way I see it, I’m going to spend the money anyway for the health needs (like years before) but this way I get reimbursed into my saving account and never see it enter our monthly budget (and able to spend again). Of course if we did need it I would just have to set up a transfer. Isn’t there also a tax savings in a sense with this as I am essentially putting non-taxed money in my savings account. My wife sees it differently and thinks it’s stupid because we’re essentially paying for something twice. I would love to hear your thoughts on these two questions. thanks again for all of your hard work!
~james
Another book I think everyone should read is by Zig Zigler, “Secrets of Closing the Sell”. While it IS mainly for salepeople, it’s about negotiation and persuasion techniques that everyone can use in all sorts of everyday situations. Not only is it informative but also entertaining….. I’ve read it at least 3 times so far!!
Employee stock purchase plans… what are they? How do they work? Are they worth it?
I’m thinking about starting a Self Directed IRA, How about something on that. You can buy stocks, funds, real estate, loans, all sort of things.
I checked out the Web Site “Guidant”, but there are more companies that do that.
See ya,
John
Hey JD -
Been reading for a while but do not comment very often. Did want to point something out to you though that is pretty important. Are you contributing monthly amounts into your Roth at Sharebuilder? If so, you may be actually making a big mistake. Its actually the most expensive may to contribute to an ira if you are buying stocks. If mutual funds is where you are at - then you still are probably paying too much for a poor fund selection. If you would me to explain - shoot me an email and I will elaborate.
Hi J.D.
I’ve noticed some new ads on your website - which is fine by me since I remember you defined a policy on ads. But I don’t get how the kind of ad that screams : ‘I make 300K$ per month - Click here to learn how to get rich’ matches GRS philosophy…
Hey JD,
I’ve been addicted to your blog since I found it a few weeks ago. I’m obsessed with getting out of debt. I’m in the process of buying my first home, for which the government has decided to pay off my auto loan ($8k credit). I have substantial student loans, and this is my querry for you.
Where should I go to consolidate these loans?
I have 9 in total, the rates range from 4.2% - 6.5%, all with differing balances. Any clues?
Hi, have you posted the winners for your magazine giveaway?
(I enjoyed that post about the “Smart Money” magazine and the problems you had with the subscription.)
Just making sure I didn’t miss it somehow. Thanks.
Since its tax season, I’m trying to decide whether to open an IRA. I already have one $4,000 IRA with TD Ameritrade, and its hard to figure out whether I should open a new IRA at someplace like INGdirect, add $ to my current IRA, and once its in an IRA how do I “manage” it?? I’m in my early 30s and making low six figures, and not sure how/where i should be investing.
I am interested in this too, but question the need for another Roth IRA at the age of 60. I just stopped monthly payments to my current IRA because they were charging me 5.25 percent per payment as a sales charge.
I want to start investing in some Vanguard Index funds - however I’m unsure whether to go with several individual funds (Shares, Bonds, Property, Cash), or the single diversified ‘LifeStrategy’ fund?
I have about $5000 to invest, which is the minimum balance for any of the funds - so if I go with the LifeStrategy, I would be immediately diversified, however if I go with the individual funds I could only get one now, and have to wait until I save more money to get into the others.
What would you suggest?
P.S - I’m in Australia - so it would be Vanguard Australia.
Wondering if you heard about this: http://grannymillerblog.blogspot.com/2009/03/uncle-sam-in-your-garden-hr-875.html
Hi JD, I love your site and very practical, applicable advice. I thought I would share my interesting experience with you. I have all my bank accounts at one bank (savings, checking, and visa card) and I have the visa paid automatically out of my checking each month. Since it’s automatic I didn’t pay much attention to it until today when I went to view my online statement and I found they had been charging me a late fee for each automatic payment, total charges of $150. When they set up my automatic payment for me, they purposely set it up for one day AFTER the due date so they could charge me the fee each month. Furious, I called them and they quickly refunded all $150 to me, but I thought it’s an interesting note to make that even automatic payments that should take the worry and hassle out of bill paying can end up being a headache and costing you extra. Maybe this is obvious advice for everyone else, but I had no idea! I thought all was well and good since it was automatic and I watched it get paid through my account activity each month. I just thought that was an interesting note to make.
Thanks for your hard work in making this site so great!
Hi,
I am about two years out of college and my current job gives me the option of contributing to a 401K. While they will match contributions, I only get to keep those matching funds if I stay at this job for 3 years.
However, in the next year or two I plan to go to grad school, which will require a decent amount of student loans. Therefore, rather than contribute to a retirement account, I have been socking away half of my salary in a savings account so that I can use it for grad school and take out less student loans.
my logic is that interest on student loans tends to be 6.5% and would cancel out any gains that investments would make. Does this make sense? I’d love a second opinion
If you’re interested I’d love to share with you a free copy of our just released e-book called “Eat and Grow Rich”, less on your waist, more in your wallet!
Along with our suite of digital goodies. So if my email has peaked your interest just tell me an email address that I should send it to.
This one? jdroth @ this domain.
The e-book is a 3.5 MG file
I look forward to your reply.
Sincerely,
Jennifer
Hey JD,
Just curious if you are still working on an article about finding a meaningful career that can allow you to Get Rich Slowly. I had posted a few weeks ago about my frustrating career experiences and you wrote back saying you were working on an article. I’ve been looking for it! Let me know!
Katie
Hi JD,
I’m a new reader to your blog, and very much enjoying it! Thanks for all the great information. This has been sparking a lot of thoughtful conversations among my friends and family.
I’d like to toss in a suggestion for an article topic from my own experience, if I may!
While still back in high school, I figured I would learn from my parents’ costly credit card mistakes and start my finances off right. I eschewed all forms of credit, paying cash from my part-time job for my first car (which I drove until my mid-20s), refusing to open a credit card, and even starting a Roth IRA. I thought I was doing everything the smart way.
In my late 20s, after marrying my Prince Charming, I found the fatal flaw in my plan when we began shopping for a house: I simply had no credit history.
This proved to be even worse than if I’d had *bad* credit. If I had a load of debt and a bad credit score, the banks would still have added me to the home loan, and our combined incomes would have gotten us a better term. But because I had never used credit, they refused to even consider my income when qualifying us for the loan.
I was outraged, of course. By being frugal, living entirely within my means, and carefully saving, I was now being punished?
We did purchase a house on the strength of my husband’s income and (very good) credit score, although we had to resort to a sub-prime mortgage to do so. After closing, I quickly aquired a credit card and spent the next two years building up a score (charging just gasoline purchases and paying them off the same day), so upon refinancing 2 years later, I was finally able to get my name on my own house.
I’d like to spread the word to those early in their financial planning stages that playing the credit game is worth it in the end. It does take discipline to not take advantage of the “free money” credit cards offer, but if you ever plan to make a big ticket purchase using credit in your lifetime, it’s worth it to jump in.
I’d love to read a little more about ways to build good credit from scratch (as opposed to coming out of debt), and hear other people’s experiences on how they got started!
JD,
I wanted to know more about Self-Directed IRA’s and your thoughts regarding them. Perhaps an article since I didn’t really find anything on the site. I am a regular ready and huge believer of what you preach. Thank you for devoting your time to such an important cause. I wanted to invest in a friends start-up company. I have had an IRA since I was 16 years old (24 now) and have built some a pretty good nest egg (even with a 40% cut over the last year) and I wanted to support my best friend in starting his career.
Thanks,
Derek
Hey JD,
I’ve been reading your blog for a while now, and enjoy your wisdom, and wit. Have you thought about writing an entry on buying clubs? They are springing up all over the place as an alternative to grocery stores. Participating in one is a great way to be sustainable, and save money as products are way below retail, and usually wholesale. I coordinate one such club in SE PDX, and know at least three others who so the same.
Let me know if you’d like to know more, and keep up the good work.
Joan Chakwin
http://groups.yahoo.com/group/Foodbuyingclub/
Hi there,
I would be interested in any feedback from you and other readers on my latest vlog - Turning Debt into Wealth in Five Minutes or Less
http://www.selfgrowth.com/blog/turning_debt_wealth_five_minutes_or_less.html
Hi there, we’re on a non-accelerated variable mortgage which has a steady semi-montly payment of $1,000 and (about $2000/mnth) an interest rate between 3.0% and 1.7% over the past 2 years. When the mortgage rate was drawn up it was around 3.75% and a 30 year term. Upon paying into it it almost immediately went down to 3.0% and now sits at 1.7%. Is there a calculator that we can use to see how many years less we’re going to have to pay considering the interest rates have gone down? It seems the only calculators available are for the actual payment, in our case this is going to be a constant. Thank you,
N
you should post this up on your site.
Personal Finance Hour
Jim Wang
Date / Time: 4/13/2009 3:00 PM
Category: Finance
Call-in Number: (347) 327-9144
Join Get Rich Slowly’s JD Roth and Bargaineering’s Jim Wang for a discussion on how to handle finances as a couple. Separate accounts? Joint accounts? We discuss them all!
Upcoming Episodes
4/20/2009 3:00 PM - Personal Finance Hour
4/27/2009 3:00 PM - Personal Finance Hour
I’m sure lots of us would tune in =)
I just spent an hour and a half on the phone with at&t to get my bill reduced by $15/month for the next year. Having read your blog helped me to think of it as a game (imagine what I can do with my $180!) rather than giving up and/or getting super hostile with the customer service folks.
Little victories. Thanks.
JD,
Here is an article on a lady in St. Louis who got rich slowly on a social worker’s income:
http://www.stltoday.com/stltoday/news/stories.nsf/stlouiscitycounty/story/95052F7B696733CA8625759500189E1C?OpenDocument#tp_newCommentAnchor
I need some advice on where to start with book keeping for a small business. We have someone else right now that is terminal ill. I have no clue where to start. I am just scared to mess up. All I know how to do is personal bills. So I would need to start at the bottom and learn very basic first. We have 8 employees. Help!
Thanks!
Rene
http://baconcamp.org/Bacone
I know how much you like bacon. Someone sent me this, I thought you might find it funny!
Hi JD. Thanks for all the info…your open minded way of looking at all the options is great for us readers! I read your blog daily and look forward to new posts. I’m a big fan of Gail Vaz-Oxlade too, I’m happy to see a Canadian expert on your blog! Between my partner and I we have paid off over $45,000 in debt over the last 2 years. We still have approximately $30,000 to go! My goal is to be debt free by December 2010. If we can do it, anyone can! By the way, this wasn’t CC debt, it is Student Loans and Car Loans. Keep up the great posts!
JD, have you read “Wealth-Less Effect: Earning Well, Feeling Otherwise” http://finance.yahoo.com/retirement/article/106934/Wealth-Less-Effect-Earning-Well-Feeling-Otherwise
at Yahoo Finance? I find it difficult to see how someone could have trouble living well on $250,000/year, and I wondered what other GRS readers think? I personally have never made more than $40k. (I am single.) I doubt my parents ever made more than $100k/year. (At least, not until very late in their working lives, with two incomes.) My brother makes six figures, but I don’t think he brings home over $200K (His wife is a stay-at-home mom)and they live very comfortably in southern Californis, notorious for higher cost of living. He also lived on the about the same wage in Boston, another infamously expensive place to live.
What do you and GRS readers think?
JD,
I have been reding GRS for several months now, and am enjoying it a lot. I am based in Australia, so a lot of the discussion aout Roth IRA’s and 401k etc I skim read for learnings rather than specifics,g iven we obviously have a different system.
I wanted to drop you a quick email regarding blogging. I am just in the process of exploring blogging as an option, and would welcome your thoughts and experiences. I have several questions so far, and hoped to drop you a direct email if appropriate. Please let me know.
Many thanks for your time.
Hi JD,
Fantastic site, thank you for your work over the years.
I’m interested in writing an article for GRS, and I’m curious how you handle that. You can check out my writing on http://www.mydebtfreecountdown.com.
I’ve got a few topics in mind and I’m open to ideas.
I look forward to hearing from you.
Thanks!
-Devin
Hi JD! I love your blog and have learned immensely from it.
I just wanted to pop by and comment on the state of the credit situation. I’ve recently been able to pay off 2 of our 3 credit cards, and am months away from paying off the 3rd. However, no sooner do I pay them off do I get a letter in the mail stating “We’ve lowered your credit limit…” Blah blah blah. Just very frustrating. We work to get ourselves out of a hole to create a better situation for ourselves, then they turn around and slap us on the wrists.
Thank you so much for continuing to produce such a great and informative blog.
JD,
Love your site, and spending way too much time reading old posts. I was looking at TreasuryDirect, and they have I bonds that have 5% rate until April 30th. Some of your readers may want to have a look. Keep up the great work. Tim
I host a weekly radio show on personal finance issues. Would you be interested in being a guest?
Love the blog, but PLEASE remember that periods and commas go INSIDE the quotation marks. I admit, I’m a grammar Nazi and this is a biggie for me.
For example from your recent post of New Age of Thrift:
People who once lived beyond their means, financing their lifestyle with debt, have “found religion”. Should be “found religion.”
Hello, My name is Donny Gamble and I work in the marketing department for realestateinvestor.com and I wanted to write an article for your site to give your readers some real estate advice from a different perspective. I think it will be a tremendous benefit to your readers because we work with real estate professionals who write all of our content for are site. So if you are interested, please email me back and I will send the article right over. I appreciate your time.
Saw a story at the NYT regarding “The Story of Stuff.” You can find the underlying site here: http://storyofstuff.com/. It’s environmentally focused, but the economic/frugality argument lurks just below the surface. Thought you might like to comment on it.
Thank you for this awesome website! I read it religiously. My husband and I are expecting our first baby in September. We have been saving up for my time off from work, but want to know how to financially plan for the future (after about 4 months of paid leave with benefits). We live in Portland, and wondered if you had any suggestions for a local financial planner. Preferably not a big corporate deal. Just a face to face conversation to assist us in being creative with our situation. Ideas?? Where do we start looking?? Thanks for your time!
I have an “Ask The Readers” question:
What do you do when your allowance isn’t enough?
My wife and I have allocated $400 each, per month, for “fun money.” This is money we allow ourselves to spend on whatever we want, without having to justify it to each other. It covers all personal spending that doesn’t fall into any other category in the budget.
The problem I’m having is, I’m finding it difficult to stick to this budget. Intuitively, it seems to me that $400/month should be more than enough for a personal allowance. However, a look at my spending log shows it getting chipped away by several small things. $20 for a haircut, $30 for a celebratory lunch with co-workers, $120 for a new pair of running shoes, $15 to buy a used Blu-Ray movie … I think I’m being frugal, but who can’t live on a $400/month allowance?
How do other people cope with this kind of spending? Do you have budget categories for borderline personal expenses like those? Or am I simply not as frugal as I thought I was?
I also have a suggestion for a future blog post. Several times, people have mentioned that when you send in an extra payment for your mortgage, that you must specify that it’s for the principal only. I think a lot of readers (myself included) would appreciate a breakdown of why this would make a difference, and what other ways the bank could interpret an extra payment (ways that are obviously less beneficial to the borrower). I don’t think I’ve seen this kind of a breakdown on GRS before.
Hey Kevin (post 20 May 2009 at 9:46 am),
My wife and I use a similar approach and we too are failing to stay within our alloted extra spending budgets. I’m interested to read the feedback/suggestions from the readers.. We also find it hard to determine what should be considered a “budgetable” expense. We have recurring expenses like starbucks, groceries, eating out, extra toddler clothes, etc but they are by no means consistent. Should we budget for them? Is it possible given the large monthly fluctuations? How do other readers budget for these types of fluctuating expenses?
-Dom
JD
I am not a regular reader, but do read an occasional post and have recently posted on one particular link. There appears to me to be an organized attack on a Mr. Bennett that goes well beyond the ideas he posts and has become very personal. One post even attacked me because I agreed, at least partially, with Mr. Bennett’s ideas. So far you have stayed out of it and for the most part I am glad you did. However, for many posters and readers it totally destroys whatever value we receive from the post to have to wade through dozens of personal attacks. Would it not make sense to perform some sort of warning and then censure if it continues? Posts attacking ideas are fine, posts attacking individuals is not.
There is a new FDIC rule change that threatens to dramatically effect interest rates. You should follow up on it. There is a short discussion on it at:
https://www.blogger.com/comment.g?blogID=11103840&postID=8043424558834315790&page=1
A great author to introduce to the get rich slowly audience would be CPA Lawyer and former IRS Attorney Sandy Botkin. He wrote a book called Lower Your Taxes Big Time which helped one of my associates (and his wife) get a refund of $8,000 dollars when him and his wife both had 10 Witholding on their W-4. It truly is an amazing book. A word of advice, don’t go to H & R Block when you start researching this book, get a great CPA who has been studying taxes and tax laws for over 10 years.
Hi JD,
I would like to suggest, given how often the charity question comes up in your posts, that you explore and write about Network for Good (www.networkforgood.org). I just joined; I have been working on making a habit of giving money to causes I value, now that I’m out of consumer debt and no longer living so close to the bone as I used to - just a little now and then, a far cry from the 10% so many advocate, but I like to think I’m getting there. I had a couple of barriers to giving resolved by Network for Good: one, the immense amount of paper junk mail I receive from organizations I’ve given to in the past; the other, not knowing how much good my dollar does, whether it goes to the cause or to the organization’s upkeep, and being too lazy to do all the research myself. Network for Good takes care of these and many other considerations: It includes hundreds if not thousands of organizations, including local favorites like the Community Cycling Center. It has researched all these organizations and includes their charity rating with info about each. It provides e-cards if you want to make your donation a gift. It does not give your personal info to the charity unless you OK it. It tells you right up front how much $ is required for admin and offers the opportunity to pay it in addition or subtract it from your donation. It keeps all your giving records together for tax purposes. And it also offers volunteer opportunities for folks not ready to give money.
Check it out and let us know what you think.
I get your feed and your most recent discussion asked about Windfalls. I have just finished figuring it all out and implementing it, for & by myself.
I had a sizable cash windfall about the time I learned there is a diference between Asset Allocation & Divesification of asset classes. I had all my retirement money in stocks, bond and mutual funds…nothing in cash… I divided the windfall up as follows:
20% = Pay off bills
15% = new car the old one had 200k on it and needed about $5-10k of work
25% = put in Close End Muni Bond funds for my State for the monthly tax free dividends that are being reinvested until my retirement at which time it will supplement my monthly retirement income.
15% = 1st year of my new Roth IRA CD put in 2008 & 2009 to at the same time to maximize the yield
25% = Hi Yield Bank account to store my next few years of Roth IRA contributions and my 6 month emergency fund.
Hi,
I noticed you advertise Ally on your site, so I assume you think highly of them. I am not familiar with this bank but their CD interest rates are better than some I’ve researched. Could you offer any more information about them?
thanks,
Robyn
Hi Robyn (#436),
Ally Bank is the former GMAC Bank which is the financial arm of GM. I’ve been using them for the last 9 months and have been happy so far. Good rates and website.
Cheers,
Dominic