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Real Estate decisions require knowledge. Better knowledge produces better investment decisions. Investments provide maximum Return on Investment with two essential factors:
Asset Appreciation: the asset grows in value over time.
Capital Preservation: reduce your cash costs of holding the asset.
Whereas a home used to be a place to raise a family in a nice neighborhood, Real Estate today is this PLUS a:
significant investment;
long-term financial commitment;
income tax shelter;
asset with risk (value decline) and reward (value growth);
high cost to maintain;
environmental (CO2) footprint impact.
We are all crazy about money. We spend too much of it and save too little. We hoard it and we sink into debt over it. We lavish it and are stingy with it. We lie about it and fight over it. We think about it all the time and we avoid thinking about it at all.
What makes most of us so crazy when it comes to money? We like to believe that our choices and actions are guided by rationality. But in fact, reason often has little to do with our money behavior. Rather, our decisions are governed by our emotions and money beliefs.
If our money emotions and beliefs are balanced and clear, we will act wisely with it. If our feelings/beliefs are confused, we will make poor decisions, creating financial havoc and deep unhappiness. Crazy About Money helps readers identify the unconscious emotions and beliefs that usually come from childhood and drive money decisions as adults. It also shows readers how to change misguided attitudes that lead so many into money trouble.
Crazy About Money, by Maggie Baker, PhD., uses real and composite cases drawn from the author’s 30 years of psychology practice. Readers learn about Mary, who has a basement full of Internet purchases she made to get even with her seemingly indifferent husband. And about Harry, an 89-year-old multimillionaire bachelor who nearly decided to move into a state assisted living facility for fear he would run out of money. Readers also meet others who, like themselves, over-spend, under-save and make poor investment decisions.
In-depth discussions detail how many people, once they understand their motivations, are able to break short-sighted or destructive money attitudes and patterns of behavior. Exercises at the end of each chapter will help readers examine their own feelings and actions and point the way toward smarter choices with money, whether in saving, investing, spending, giving or sharing.
A good credit score can save you thousands of dollars in interest on everything from a home loan to a car loan, and from school loans to credit cards. But, how much do you really know about the factors that go into determining your credit score? A FICO (Fair Isaac Company) score, otherwise known as a credit score, is used by potential creditors to determine the financial trustworthiness of a consumer. Anyone who has a credit account has a FICO score.
Your FICO score is determined based on the following data:
If you live in one of the large, expensive metropolitan areas, you’ve probably fantasized about how much farther your dollar would go if you chose a different place to live. I remember distinctly when my husband and I purchased our second home in Santa Barbara, and my mother (Alice) sent me a clipping from the Indianapolis Star that showed the Governor’s Mansion had recently sold for the same price. But how would you go about choosing another place to live?
To answer that question, I did a little research and found two articles on the subject that give good advice on some great cities to live in using different criteria. The first source, Forbes online, used violent crime rate, unemployment rate, average salary for college graduates and cultural opportunity as criteria. Redbook magazine also had some suggestions, using “reasonably priced home(s) in good locales” as their criteria. Here’s the list they came up with:
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We understand. As frugal as you may be trying to be, it IS possible that you absolutely need a new car. Some people (you know who you are and you might even be contributors to our website), drive their old “beaters” as a badge of honor. My girlfriend Karen has a Ford Expedition that is so old that the auto mirrors and seat don’t work and she routinely gets “gas hog” written in the dirt on her back window because she lives in green-loving Palo Alto. I would say that she is a candidate for a new car.
If you are in the same boat with Karen, it is a great time to bite the bullet because there are so many good financing deals and some of the most generally reliable car companies (Toyota and Ford) are in trouble financially. We are definitely not car experts at rubbingnickels.com but we’ve searched the web for some advice from reliable sources like Forbes.com on what you can do to make sure that you make a smart car purchase. And we’ve filed this article under “Investing and Saving” because buying a care is certainly an investment. 
Here’s some advice that we found on buying a new car:
To save money on gas, buy the SMALLEST car that will meet your daily needs. If you only drive a large soccer carpool once a month, don’t get an 8 passenger SUV!
ALWAYS use Kelley Blue Book to know what the invoice price is on the car you want. This will help you immensely in your negotiations with dealers.
Don’t EVER buy a car at the beginning of the year when the newest model is in the lot (unless you are the heir to Saudi Oil money). You will pay a premium for the car.
Put down as much of a down payment as you can possibly afford and if you can avoid it, and finance for the shortest period possible to save money on finance charges.
We this helps you and we’re truly sorry about your old car!
Darcy Ratner
Rubbingnickels.com
I knew from the title that this book and I were going to be fast friends. What I didn’t understand was how laugh-out-loud funny Annie Korzen could be. From shopping to eating out, decorating to traveling, or bartering to selling, Korzen gives great advice while making light-hearted fun of herself and how “thrifty” (cheap) she is.
One of Korzen’s strengths is her insight into the Bargainista culture as she gives useful descriptions of the different things you can hope to find at yard sales, rummage sale, thrift shops, consignment, Craigs List, Ebay and flea markets. She also has great advice for bargaining in any situation, for example, she says that saying “How much? That’s ridiculous. I could get it cheaper at Kmart” is not nearly as effective as saying “You have such cool stuff. If I buy a lot, can you give me something off?”
Throughout the book, there are little snippets of her great sense of humor. One of the funniest things I read was in her section on “re-using and repurposing” in which she admits that she “occasionally flip(s) her underwear to save on washing machine use” and that she’s sure that it’s on one of these days that she’s going to take a visit to the emergency room. She also has a funny section called “Friends with Benefits” in which she discusses the pros and cons of having friends that are much wealthier than you. At the end of the chapter, she has a number of questions about her wealthy friends that are hilarious and include: “Why do so many rich women think it’s attractive to look like they’ve had face transplants?” and “where do rich people hide all their electric cords?” These are questions I’ve asked myself.
Overall, I learned a lot from Korzen’s book and had a good laugh along the way. I would recommend it, especially to anyone who is new to the Bargainista culture and needs some info to jump-start their money-saving adventures. You can get her book at amazon.com.
Enjoy!
Darcy Ratner
Rubbingnickels.com
You want to be philanthropic this holiday season, but your current budget doesn’t allow for writing checks to charities or sipping champagne at charity balls. Besides tossing your coins to the Salvation Army Santa, how can you still contribute to those causes about which you are passionate? Check out these websites that have been designed to help you give:
GoodSearch.com – GoodSearch is a search engine which donates 50-percent of its revenue to the charities and schools designated by its users. You use GoodSearch exactly as you would any other search engine. Because it’s powered by Yahoo!, you get proven search results. The money GoodSearch donates to your cause comes from its advertisers — the users and the organizations do not spend a dime.
OneCause.com – Simply shop online at hundreds of well-known merchants, save money with valuable Coupons & Deals and earn contributions for your chosen cause or school on every eligible purchase. Similar to Schoolpop, you may also register your credit and debit cards to earn contributions when you shop at your favorite neighborhood stores and service providers, including local dry cleaners, pizza shops, and even hair and nail salons.
Volunteermatch.org – This online service helps people find local volunteer opportunities by location, area of interest, and/or keyword. A national nonprofit themselves, they have relationships with over 60,000+ non-profits needing volunteer assistance. In addition to helping others, volunteering your time is a great way to connect with your community, meet new people and explore new areas of interest.
Thegivelist.org – The Give List is a wonderful list of 71 Ways to Give Without Opening Your Wallet. Suggestions such as Share a Skill, Donate clothes, Send a Free Holiday Card to a Hero, all remind you how easy and inexpensive it can be to be charitable.
If you DO have a little extra cash, consider donating to your local food bank. They are expecting to have one of their neediest years and hope to help as many people as they can. As always, we are interested in hearing your experiences and ideas so please post your ideas to this blog.
Julie Arnheim
Founder, Rubbingnickels.com
Coming Soon.
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