Becoming & Staying Debt Free

Families go green to save big

2009-11-20T08:04:00.001-06:00

Recently, NBC's Today show had a great story on ways to save money by greening up your home. Take a look at the video below and share your thoughts in the comments.

Visit msnbc.com for Breaking News, World News, and News about the Economy

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Neurofibromatosis

2009-11-05T22:23:00.000-06:00

I found it interesting that the ninth most searched word (or term) on Google today was neurofibromatosis. Why? Because, it is a condition that I have lived with all my life and never heard anything about, except in the doctors office.

When I mention it, and the two spots on my brain, that are included in this condition, I get blank stares and questions like, "what's neurofibromatosis?"

So when I seen it show up in the top 10, I was amazed.

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New Job for the Fiance

2009-11-04T16:19:00.001-06:00

Yesterday, the fiance started her new job. She will be working at a call center the answer calls from Sprint customers. It is something that she has done before, with a previous call center that was located in the same building a few years back (before it closed the local location). Previously, the call center was for Verizon customers. Still though it would be very simaler.
Between the two jobs she answered customer calls for the largest insurance company in the state of Kansas. As mentioned before though, she lost that job 3 days before she and I got engaged. The unemployment office told her there was an 11-week wait before she would see any benefits, so it is great news that she is now back to work within a month of the job loss.

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Family Reunion

2009-11-04T14:15:00.002-06:00

This weekend is my family reunion. It will be the first opportunity for most of my family to meet my fiance. So, we will make the one hour trek to the little town in rural Kansas to meet with family members that I haven't seen in a year.

We are planning on taking my corn pudding and rice krispy treats. Two things I love. I only discovered corn pudding 2-3 years ago, but it quickly became one of my favorite side dishes.

Besides seeing family that you don't see in awhile, family reunions are great on a budget, because it is potluck and there is plenty to eat, with all the food being served.

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Buying a Railroad and a 50-1 Stock Split

2009-11-03T13:50:00.001-06:00

CNN has reported that my favorite investment guru, Warren Buffett's company, Berkshire Hathaway (BRKA, BRKB), is buying railroad corporation Burlington Northern Sante Fe ("BNSF") for $44 billion.

NEW YORK (CNNMoney.com) -- Warren Buffett's Berkshire Hathaway said Tuesday it will buy railroad operator Burlington Northern Santa Fe for $44 billion.

Berkshire (BRKA, Fortune 500), which already has major stake in Burlington Northern, said it would acquire the remaining 77.4% of the company in a cash-and-stock offer worth $100 per share.

Widely regarded as both one of the world's richest men and the investment community's more brilliant minds, Buffett called his firm's investment an "all-in wager on the economic future of the United States."
- CNN

The railroad giant is also of special interest to me as has offices and shops here in my own hometown, and a number of people here work for the company. I think this a good move for Buffett, whose company already owned 22% of BNSF). Of course the purchase still most face shareholder approval and regulatory review by the Justice Department.

On another note Buffett also announced that class B shareholders (which includes me) would see a 50 to 1 stock split.

OMAHA, Neb.--(BUSINESS WIRE)--Berkshire Hathaway Inc. (NYSE: BRK.A; BRK.B) today announced that its Board of Directors approved a 50-for-1 split of its Class B Common Stock. The stock split is subject to the approval of Berkshire’s shareholders, who must approve an amendment to Berkshire’s certificate of incorporation to increase Berkshire’s total number of authorized shares of common stock, as well as the total number of authorized shares of Class B Common Stock, in order to permit the consummation of this split. Berkshire’s Class A Common Stock is not being split. Berkshire has not yet set the date for the special meeting of its shareholders to vote on the amendment to its certificate of incorporation, or the record date for the stock split.
- Yahoo Finance

That means, if approved my 0.0321 shares would finally be over 1 share, as that fraction of a share would become 1.605 shares. That, in my opinion would be so awesome. I am looking forward to that. As for shareholder approval, I will certainly be sending my proxy vote back in favor of both of these.

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Wedding Dress Update

2009-10-29T08:21:00.003-05:00

Tuesday afternoon, my fiance and I meet up with a couple in the parking lot of the public library, who had advertised their wedding dress on Craig's list. I am happy to say, that we liked the wedding dress very much. The dress, which was bought a few months ago by the other couple (for their June 2009 wedding) for $600 was sold to us for only $100.

My fiance absolutely loves the dress. Now that we have the dress, we will have to find a seamstress to make the necessary alterations to shorten it, so that it will fit her.

For now, it is hanging in the closet, but for now we are one step closer and we paid cash for that item.

As for my tux, that will be another post, as I don't need to buy the whole suit.

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Should You Be Debt Free Before Getting Married?

2009-10-27T10:50:00.000-05:00

Since, I announced my engagement there has been one or two people commenting anonymously that my fiance and I should become completely debt free before walking down the aisle. However, is that what most readers feel to? More importantly, what do the financial experts think?

I started my research, with a search of Google. During that search I found the following article on the LA Times website.

To hear Summer Brown and Briana Biddle talk about it, their upcoming wedding and civil commitment will be a fairy tale, complete with happily ever after.

But fairy tales can turn dark pretty quickly, and a look at the couple's finances shows that the poisoned apple in this story could be money.

Let's start with the wedding: Brown has a $986 wedding dress and a $2,600 engagement ring, both bought on credit. Then there are older debts: a $20,000 time share on which Biddle is not making payments and $17,000 in student loans for Brown, among others.

To the rescue rides financial planner Alfred McIntosh, who has agreed to look at the couple's finances as part of The Times' Money Makeover series.

Before the wedding, couple need to cut debts and stop overspending -- LA Times

As the article correctly pointed out latter in the article, domestic partnerships between two people of the same sex is not legally considered to be a marriage in California, but this couple would assume many of the same risks that married couples run, such as the higher earner potentially becoming responsible for spousal support of the other.

Now to the real issue. The debt going into marriage. This particular couple has a combined income of $79,000. Besides the money borrowed for the wedding items mentioned above there is more debt that was revealed to the financial counselor.

Brown has saved $2,200 in a retirement account, and they have $57 in their joint savings account. But their balance sheet is dominated by debt.

Biddle carries about $11,250 in debt on two credit cards, at interest rates of 25% and 30%, and $553 in a line of credit associated with her checking account. Brown carries about $1,450 on one card at a 7.23% interest rate.

They're racking up 45.2% interest on the credit line they took out to buy the engagement ring because they stopped making payments and the rate jumped. And they owe $3,000 on two more credit cards that they hold together.

Brown also has $17,000 in student loans at 2.48% and a $21,000 car loan at 4.99%.

It was during the discussion of debt that the meeting with the financial planner became tense. With a hollow look on her face, Biddle confessed that she hadn't been completely straightforward about her debts and spending.

Brown became upset.

"I'm bitter now," Brown said, "because I've done everything I was supposed to do financially and she didn't."

McIntosh slipped into his therapist role.

"Since you don't like letting her down," he told Biddle, "and you want to do better at this, you have one choice: to get better at this."

All that debt -- and its continued accumulation -- is the most pressing problem and the first thing the pair need to address, McIntosh said. "Stop using those cards," he told them.

I agree 100%, it is a problem that the pair must address and address now. However, does that mean that you have to be totally debt free before entering into the bonds of marriage?

McIntosh told them to pay for their wedding with money earned outside of their regular salaries. Brown believes she can bring in about $1,000 a month by throwing parties to sell products out of her home. Biddle predicts she can bring in $1,300 extra a month by doing freelance interpreting for the deaf.

"You should get married only at the time that you can pay for your wedding without taking out any more debt," he said. "This is making a dream come true."

Again, I agree totally with this financial counselor, but what to do with debt accumulated before marriage?

Since the LA Times article really didn't answer this question, I turn to another page. This time I land on a document from Utah State University.

Debt can be addressed prior to getting married or after you get married, but either way it must be addressed. But remember that the less debt you have going into marriage, the greater your chances for success and happiness in marriage (Schramm & Lee, 2003). So consider paying off your debt before tying the knot. Here’s how one person did it.

I think, we finally have an answer. A couple should reduce as much debt as possible. Yes being totally debt free is best, but is not the answer. The most important thing is that the entire wedding (and honeymoon) needs to be paid in cash. The other thing is that e couple should set down together and discuss their finances, being totally open about what debt they are bringing into this relationship. To quote one of the best known financial gurus, Dave Ramsey, "plan your work, work your plan." To help you (and Pat and I) with this USU has included a worksheet in the linked pdf file to print off so you can list all of the debts that you would be bring into the marriage. In so doing you can have complete knowledge of each others debts. Which is very important, because the last thing you want is to accumulate more debt. Rather, you and your new spouse want to build wealth so that you can fulfill your dreams together.

Steve Bayer, the local representative (in Topeka, KS) for Crown Financial Ministries, had this to say, "I saw a survey that said 86% of divorces listed finances as the #1 or 2 reason for that divorce...hmmm. In this case Kevin you describe that they are continuing not only to apparently ignore their debt but they are adding more to it based on the dollars being spent on the planned wedding.

God's Word has 2,350 verses in the bible on money and possessions...that's a lot! It must be important based on the volume contained there!

So, do they value God's opinion? See Joshua 1:8, Prov 11:28, Prv 28:25, Lk 16:2, 11-13
Let's not forget Luke 16:10 "He who is faithful in what is least is faithful also in much ..."
By the way Psalm 37:21 is a pretty direct verse about not paying ones debt."

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Walnut Pumpkin Pie

2009-10-21T09:59:00.001-05:00

A slightly different pumpkin pie as it has a crumb topping. Prep time does not include making a homemade pie crust.

SERVES 8

Ingredients

* 1 (9 inch) unbaked pie shells

Filling

* 1 (15 ounce) can pumpkin

* 1 (14 ounce) can sweetened condensed milk (NOT evaporated milk)
* 1 egg
* 3/4 teaspoon ground cinnamon
* 1/2 teaspoon ground ginger
* 1/2 teaspoon nutmeg
* 1/2 teaspoon salt

Topping

* 1/4 cup brown sugar, firmly packed
* 2 tablespoons unsifted flour
* 1/2 teaspoon cinnamon
* 2 tablespoons butter, cold
* 3/4 cup walnuts, chopped

Directions

1. Preheat oven to 425°F.
2. In large mixing bowl, combine pumpkin, milk, egg, 3/4 teaspoon cinnamon, ginger, nutmeg and salt; mix well. Pour into 9-inch, unbaked pie crust.
3. Bake 15 minutes.
4. Meanwhile, in small bowl, combine sugar, flour and remaining 1/2 teaspoon cinnamon; using a pastry blender, cut in butter (as you would for biscuits) until crumbly. Stir in walnuts.
5. Reduce oven temperature to 350°F.
6. Sprinkle walnut mixture evenly over pie.
7. Bake 40 minutes or until knife inserted 1 inch from edge comes out clean.
8. Cool. Garnish as desired.
9. Refrigerate leftovers.

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Sweet Potato Pie With Walnut Crunch Topping

2009-10-21T09:50:00.000-05:00

This pie is so good, I had to share it.

1 9″ unbaked pie crust
2 16 oz. cans sweet potatoes, drained
1/2 cup packed brown sugar
1/2 cup milk
2 eggs
2 T butter or margarine
2 T lemon juice
3/4 tsp salt
1/4 tsp ground cinnamon

Walnut crunch topping:

2 T butter or margarine
1 cup chopped walnuts
1/2 cup packed brown sugar

In large bowl with potato masher, mix sweet potatoes with the remaining pie ingredients until smooth; spoon mixture into pie crust.

Bake 45 minutes at 400°F or until knife inserted comes out clean. Remove to wire rack to cool.

Prepare walnut topping; In pan over low heat, melt butter. Remove from heat, stir in walnuts and brown sugar.

Preheat broiler; spoon walnut crunch topping evenly over pie. Broil for 2 minutes. Cool on rack.
Share and Enjoy

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Wedding Dress

2009-10-21T08:13:00.000-05:00

My fiance and I are committed to paying cash for our entire wedding. I have already mentioned looking at the possibility of putting a tux on layaway to make this happen. Yesterday, she and I went and looked wedding dresses at the Salvation Army Thrift Shop. One of the three was beautiful and would really need to altered a lot to fit her (as any dress we looked at would). The problem is the store was selling any one of the dresses for $200. Even the crummiest one that looks like it has a stain on it. On the other hand a new dress at David's Bridal start at $249. Would buying a used one for almost the same price as a new one, really be economical? Besides, the alterations for her should be included, if we went the new route. Still though, there might be someplace to find a used one much cheaper then those at the Salvation Army Thrift Shop.

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Bathroom Repairs

2009-10-20T14:13:00.000-05:00

For some time, my bathroom has needed a bunch of repairs. Keeping to my goal of paying for cash (including my wedding), I went to Lowe's to look for a new toilet last Wednesday. My fiance and I found one that was clearance for $46, however when we got to the register with the toilet, lid and wax ring, the toilet rang up for $29. Not only that the lid rang up as on sale for $1.88 off to. So over all, I got the entire toilet set for less then the marked toilet price on the shelf (including tax).

I also had a tub faucet that no longer diverted the water to the shower head like it was suppose to. So today, I went out and bought a replacement faucet for $16, while there I also bought the two additional pieces to install on the shower arm, so that a hand-held could be used by the fiance. Preparing for when she actually moves into this house. All in all I spent an additional $57 cash today to get the bathroom closer to completion. I still need to paint, tile and put in new vinyl flooring. Thankfully the bathroom is getting closer to being done. All with cash.

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More Wedding Thoughts - Tux and Dress

2009-10-19T08:46:00.003-05:00

The other day, my fiance and I went to Mens Warehouse to look at
Tuxedos. We actually found one that was only $199. However, that was just for the suit. The shirt and vest are extra. Since we had decided red, black and white would be the wedding colors, we briefly looked at the ties, which are also extra, but decided since we both liked a full tie rather then a bow tie, that we really didn't need a tie. Especially, since I already own a solid red tie. The nice thing is they do offer a layaway option. So, Tuesday, after I pay my regular bills, I think I may go back out and start the layaway process. Which is 20% down now, and the rest paid off in the next 60 days. That will also give me something to those occasional formal dinners that I get invitations to.

As for the wedding dress, we are not sure where or what to do there. We heard about a giveaway in Florida for brides like her that are unemployed. However, neither of us live in Florida or anywhere close. So that doesn't seem to be an option. Though, it would be nice, that option seems to be only a pipe dream.

Currently though, we have $1.44 saved up for the wedding and honeymoon. Our plans are for a simple wedding, without anything to extravagant. In fact, the planned honeymoon destination, would cost more then the planed wedding.

Current Weddings Savings: $1.44
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Lost Your Job? Wait 11 Weeks For a Check

2009-10-13T09:22:00.003-05:00

State and federal unemployment systems are facing rock-bottom funding, forcing states to distribute benefit checks with money they do not have. According to the New York Times, sixteen states are relying on borrowed money to fund their unemployment programs. That number is expected to double by the end of the year.

The unemployment system also is failing to comply with federal standards. Thirty-eight states have failed to make jobless benefits decisions by the federal deadline.
- New York Daily News

I first became aware of how serious of a problem our unemployment system was having, when my fiance became unemployed about two days, before we got engaged. When she called to get her benifits started, she was told that they were 11-weeks behind.

Eleven weeks? Almost 3 months, how is a person to survive that long with no resources of any kind? Obviously, her best bet is to find a job before her unemployment even begins. Still though, that is way to long to make the unemployed wait.

Sure, once the unemployment starts, there is 26-weeks of payments, but what good is that if you are homeless by the time the checks start.

Of course there is another angle to look at this to. One which, Dave Ramsey preaches relentlessly. That is having an emergency fund of 3-6 months saved up. If she had that savings, she would have that to fall on while she waits on the unemployment office and looks for the new job. Unfortunately she finds herself in the same boat as millions of others, with no savings, due in large part because of their spend now, pay later lifestyles that have left them deeply in debt.

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Economic Crash

2009-10-09T09:33:00.000-05:00

I received my quarterly statement from TransAmerica yesterday. It shows that I have not fully recovered from the crash yet, in that fund. The fund, which I have not added any additional funds to since, I rolled over my 401k, at one point $4,761.93, but as of 9/30/2009 it was only $3817.19, which is up from the last quarterly statement by $512.48. Which is good, but still a long way from where it should be.

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The Royal Courtship: How We Meet & More

2009-10-07T09:14:00.060-05:00

Cheryl commented on my engagement announcement, asking,

Congrats!
Where did you meet her?
What does she do?
How long were you dating?
How about a picture?
Inquiring minds want to know!

So I guess, I should tell the story of our "Royal Courtship."

Where did we meet?

As many of you know I am the assistant manager in a local grocery store. I had seen this cute lady several times and on numerous occasions had talked with her about many things. Fast forward to Labor Day weekend 2008. She came in to shop like every other weekend, and she needed buns on the top shelf. She seen me and told me, "I need some buns up there on the top shelf." For some reason, I didn't just grab them for her. Instead, I mad a funny comment, that became the first of a number of weekly flirts back and forth. I asked her if she wanted me to lift her up, so she could reach them. Smiling (really big) she just looks up at me and says, "noooooo."

Fast forward again, it was now June of this year. I had won tickets to the movie, Land of the Lost. I decided to heck with, my self-imposed order of not asking customers out and was going to go for it. Wouldn't you, that was the day that she came in to shop and we totally missed each other. Neither of us seen the other. So when she got back home, she called the store and asked for me. Asking me, if I wanted her number or not. Since then we have been together like glue.

I guess that answered several of the other questions that Cheryl asked. As for what she does. She is currently unemployed and is looking for a new job. We both hope that it will be a short process. A picture will be forthcoming, in the near future. As for the honeymoon plans, my thoughts is going to New York (her 1st trip, my 2nd) but I still have to get her thoughts about that.

Wedding Plans
We have not set a wedding date, but have began to actively save every penny we can to pay for the wedding. From the from the Tux and dress, to the small wedding itself, to the reception and caterer. In fact just like Dollars For a Wedding and Wedding on a Penny, we have set up a paypal account for those who wish to contribute a few pennies (or dollars) to the wedding savings.

Current Weddings Savings: $0

Julie Cook has volunteered her Photography services as her wedding present to us.

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Royal Engagement

2009-10-05T13:53:00.001-05:00

This past Saturday was the big day. The day I asked my girlfriend to marry me. Here is how it went down.

After work, I slipped out of the work clothes and quickly went to her place (in my Jeans & t-shirt) to pick her up for the big night. We started by having dinner at Speck's Bar and Grill, a Topeka landmark for many years. After dinner, we headed to the Topeka Roadrunners Hockey game. Half way through the third period, during what they call the media time-out (when the radio station broadcasting the game goes to commercial break), the announcer came over under the guise that I was going to be a contestant on their trivia contest. When the appointed time came, the announcer announced that it was time for Roadrunner Trivia.

"We don't have a question though," he said, "but we think Kevin might." Handing me me mic i got down on one knee as best as I could and asked Pat, if she would marry me. As I opened the box containing the ring. (The question was also displayed on the message board, which most of the crowd could see, though it wasn't visable to our section).

Her reaction was one of surprise and shock. After, what seemed like an eternity, the announcer took the mic back and announced that she was in a little bit of shock. Then asked her if we had an answer. At which point she replied into the microphone a strong and happy, Yes."

After which several fans, who we didn't know came up and congratulated us. In addition, her best friend happened to be in the stands and came over to hug and congratulate us both.

Even as we left, with the Runners having won 8-2, people were still congratulating us. It was most certainly the happiest day of my life. I look forward to introducing the future Princess of Thrift in the near future.

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Get An Easy 150 Free American Airlines Miles

2009-10-02T09:11:00.001-05:00

Hey, I just found this link to get an easy 150 American (AA) frequent flier miles. Do use American Airlines? You can get 150 free frequent flier miles from American Airlines just by watching a two-minute video for Bose headphones.

This is great way to reset the expiration date of miles if you don’t fly frequently. Currently, AA miles expire after 18 months of non-activity. So any way you can create activity is great, because it will extend the life of those miles. Not to mention, you will be that much closer to a free flight, by building your mileage balance (for free this time).

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My Dream Trip: Presidential Library & Museum Tour

2009-09-30T09:35:00.006-05:00

I wrote most of this about a year ago, although, it wasn't complete. So Once again, here is the updated post, that I originally wrote in July 2008.

One of my goals is to visit every Presidential Library and Museum. Since, not every President has one, it's really not that hard of a goal to meet. There are only 12, unless you count the duplicates. Nixon and Ford have two locations, so if you count both of those then there are 14. Fords 2 are the only ones that are in the same state. Nixon, has one in Maryland and one in California. Of course there are also other museums that include Presidential homes that aren't part of the Presidential Library and Museum System. Such Museums includes George Washington's home and also Thomas Jefferson's home, Monticello.

So far, the Presidential places I have visited:

Jimmy Carter Presidential Library, Atlanta, GA

Dwight D. Eisenhower Presidential Library, Abilene, KS

Ronald Reagan Birthplace, Tampico, IL

There is also the Ronald Reagan boyhood home, in Dixon, IL. OK, so now the list of the remaining Presidential Libraries (& Museums) and Presidential attractions that are on my list to visit eventually. One of which is only about 75 miles from me.

Ronald Reagan Presidential Library and Museum, Simi Valley, CA
Richard Nixon Presidential Museum, Yorba Linda, CA
Lyndon B. Johnson Library, Austin, TX
George Bush Library, College Station, TX
Rutherford B. Hayes Presidential Museum
Harry S. Truman Library, Independence, MO
William J Clinton Library, Little Rock, AR
Herbert Hoover Library, West Branch, IA
Gerald Ford Library, Ann Arbor, MI
Gerald Ford Museum, Grand Rapids, MI
Richard Nixon Library, College Park, MD
Franklin D, Roosevelt Presidential Center, Hyde Park, NY
John F. Kennedy Presidential Center, Boston, MA
George H. W. Bush Presidential Center, College Station, TX
Bill Clinton Presidential Center, Little Rock, AR
George W. Bush Presidential Center, Dallas, TX

In addition, I would love to get to these other locations that aren't part of the National Archives.

Ronald Reagan boyhood home, Dixon, IL

Thomas Jefferson's Montecillo, Charlottesville, VA

George Washngton's home/plantation (Mount Vernon), Mount Vernon, Virginia

Of course, I don't know how I would fund such a trip. Still it is my dream. I certainly want to get back to New York, in the near future, and during that trip visit the FDR museum. Perhaps in the near future, I can make it up the road (70 miles) to the Truman Museum for the first time in my life.
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Irwin Kellner: Diet COLA for Social Security recipients - MarketWatch

2009-09-29T08:07:00.015-05:00

Last night, I was checking my Sharebuilder account, when I came across the following article that concerns not just the seniors who are currently retired, but also those of us who hope to retire at some point in the future.

PORT WASHINGTON, N.Y. (MarketWatch) -- For the first time in a generation, Social Security recipients will not get a cost-of-living increase in their monthly checks -- not next year nor the year after.

As you can imagine, this is bad news for the millions of retirees who depend on their Social Security checks for their main source of income.

Most seniors are struggling to maintain their standard of living in the face of soaring health care costs combined with the drop in the stock market, which has decimated their retirement accounts, and the record low interest rates they get on whatever savings they might have left.

Because of the confluence of these factors, seniors had been especially looking forward to next year's cost-of-living adjustment (COLA) to help them cope. Now they will have to figure out how to live on less.

The government has been adjusting their monthly checks for 35 years to ensure that seniors don't wind up eating dog food -- as many were forced to do in the high-inflation years of the 1970s, when Social Security monthly payments were fixed.

But after receiving an increase each year since 1975 to compensate for the rise in the cost of living, seniors won't get a raise in 2010 or in 2011 because the trustees who oversee Social Security are projecting declines in the consumer price index (CPI) -- the basis for these cost-of-living adjustments.

What is more, some seniors in the Medicare prescription drug program will actually see their monthly payments decline because the premiums are scheduled to rise.

In today's low-inflation environment, some might see this as much ado about nothing. After all, seniors did get a one-time payment of $250 last spring. And this year's decline in consumer prices combined with last year's 6% COLA adjustment for 2009 gave many seniors' buying power a lift.

But the issue is more than what happens over the course of this year or next. It has to do with the way seniors' cost of living is calculated.

Understand that the CPI does not measure everyone's cost of living -- especially that of seniors. Their cost of living is mostly affected by what they spend the most money on: food and health care, such as insurance, doctors, prescription drugs, hospitals and nursing homes.

These costs are rising rapidly, as has been pointed out time and again in the intense debate over health care reform. For example, while the CPI may be down, year-over-year, medical costs are actually up by more than 3%.

Indeed, health care costs are one of the few items in the consumer's market basket that did not dip for even one month during the recession. Local taxes are up as well.

Those items that are pulling the CPI down -- lower prices of cars, homes and energy -- don't affect seniors all that much. The same can be said for computers, cell phones and personal digital assistants.

If the government is serious about protecting seniors' buying power, it will base its adjustments on increases in their actual cost of living.

This way seniors will get the real thing -- not a diet COLA.

- Irwin Kellner: 'Diet COLA' for Social Security recipients - MarketWatch

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So why does it affect everyone. Put simply, we all must realize that we cannot depend on social security, we must plan and invest wisely to build a strong savings for retirement. Further, I think when I retire, if not at a point before, I would move all my "risky" investments to more secure investments, to protect myself from another possible collapse in the market after I quit working.

Updated Financial Figures

2009-09-24T08:16:00.005-05:00

I finally updated the financial figures posted in the right sidebar. At the same time, I updated my progress at the No Credit Needed Network and Net Worth IQ.

Beginning Balance: $19,591.80
Current Balance: $4,581.85
Credit Card: $0 (paid off $1,000)
Home Improv.: $0 (Paid Off $5,000)
Car Balance: $2,987.88
Chase Bank (Balance Transfer): $1,593.97
Finger Hut: $0 (Transferred)
Attic Insulation: $0 (paid off $500)
Paid Off: $15,009.15
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Car Repair

2009-09-23T13:12:00.002-05:00

For the better part of the last 2-3 years, my check engine light has been coming on intermittently. Now, it is becoming more and more steady. Which means it is becoming easier to get it diagnosed. The problem in the past, when I would get the car in to have it checked, the light would go out, translating into them not being able to get a reading.

Today, I took it by Advanced Auto and got it hooked up to the hand held computer for free. Once I got the diagnoses, I was able to start calling around to get prices. One place wanted to charge me over $200 plus tax to replace the front oxygen sensor. Another place, said they needed to know what type of engine my car had and then hung up on me before I could respond. Finally, I called the Chevrolet dealer and they told me it would be $125 plus tax. So that is where I am heading.

****update: When I arrived, the same person who gave me the quote made the call to get the price for the part and there was about a $50 difference between the price the computer gave him and what the parts place told him. That means the repair is now $175 plus tax at the dealer. I will have to wait until next Wednesday to have the cash to get the repair. Oh well so be it. Still I will get it done. It's just that I am about $40 short at the moment. *****

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New Siding

2009-09-18T08:43:00.002-05:00

I have mentioned my new siding a little. Now is the time to really discuss it and tell all my readers about it. As you can see in the on the right, when I bought the house a number of years ago, the house was in serious need of repair. A few months later, the house had a new paint job along with a new porch. Fast forward ten years, and the water damaged siding was in much more need of attention. Simply painting over it again, was not going to work this time. Still though, from a distance the house still looked fairly decent (picture 3). However, once work began (picture 4) the house really began to take shape. With the finished project seen in the last picture. Due to my own personal finances, we are waiting until next year to finish the trims, sofets (under the guttering) and bay window area.

So why did, I chose the company I went with? First they are the largest home remodelers in the country. More importantly though, the siding is durable and has a lifetime guarantee against chipping, cracking, and peeling. In addition since it is vinyl, I will need to paint the house again.

Most importantly to me though, is the fact that my walls never had insulation in them. Before they put on the new siding, the contractor installed insulation over the old siding and under the new (as seen in picture 4). Which means my energy costs should sharply decrease this winter. Not to mention the home energy tax credit I will be able to claim on my taxes come April. Which means more money in my pocket.

The gentleman, who came and performed the job was first rate. He was professional and courteous the entire length of the project. With the new siding, I should be shoe-win for the most improved house next spring.

Still though I need to get focused on the next aspects of my home. Making it more handicapped accessible. Including the porch, parking and moving of the utility room from the basement.

Perhaps one day, I can even get the windows replaced even. However, first things first.

***This is an unsolicited review***
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Engagement Rings

2009-09-11T09:02:00.004-05:00

The other day, I began casually browsing engagement rings online, I found one for $22 at Target.com. Yes, I said $22. Of course my biggest concern is that it wouldn't be able to be re-sized to fit my girlfriends petite fingers. Not to mention, the concern that it might turn her finger green, as they say.

Then Labor Day Monday, after I got off work, she and I went to Chick-fil-a in the local mall for dinner. The reason, they were giving away chick-fil-a sandwiches to those who wore some kind of sports team apparel.

After our evening meal, we were walking past Zales, and spontaneously decided to drag her inside their store, to look at the rings. We found one that she liked that normally sales for $299 but is on sale for $189 plus $40 for lifetime protection and $10 for a 2 year theft replacement package. I must say, I certainly like that ring from Zales, but at this time is out of my price range. Still, I will have to get the ring somehow. This is an important step in my relationship with the woman, I want to spend the rest of my life with.

Of course, I will also check out a couple of other jewelers to.

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Health Care Debate

2009-09-10T09:00:00.004-05:00

There has been much debate recently over health care reform. So many opinions out there, who do you believe. I certainly believe that we desperately need reform in the health care arena. How though, is the question. No matter what anyone says to the contrary, there will be an increase in taxes to pay for public funded health care. As such, I really don't want to pay higher taxes if I can't drop my employers health coverage in exchange for the public one. Especially, if it is cheaper then the $10/bi-weekly that I am paying currently. Still though, even if I am paying anything at all to taxes to fund it, I don't want to paying premiums to a private company on top of those taxes.

There is so many proposals, it is hard to decide which to support. As a long time advocate for the poor, I know something must be done. However, the rest of us can't be taxed to death to pay for it. Two of my followers say the best option is to take care of yourself.

Craig (aka BudgetPulse on Twitter) said,

Take good care of yourself early and exercise, eat right cause medical costs are expensive.

Rick Kuhlman said,

take as best care of yourself or you will pay dearly.

But, how do you take care of yourself? One option available to some people is flat rate health care, as described on a recent NBC Newscast (see video below).

Visit msnbc.com for Breaking News, World News, and News about the Economy

Then of course there is the public option.

“We’re trying to provide choice and competition for individuals and small business owners,” Mr. Gibbs said when asked if the public option was “essential.”

“The president strongly believes we need to provide choice and competition,” he said. Pressed on whether Mr. Obama would demand that a government insurance program be included in legislation, Mr. Gibbs said that it could be a “valuable component” of any health plan. And asked whether the president would reject a plan that did not include government insurance, Mr. Gibbs responded: “We are not going to prejudge where the process will be.”
- NY TIMES

Here is what some readers had to say about health care reform when approached Wednesday.

Rick Kuhlman said,

I'm all for it--I paid $0 one year and $120 for dentist appointment the next. $120 in two years now that was affordable--i choose not to have health care for two years--because I had that choice.

During those two years I cared for myself health wise more than ever! I brushed my teeth and flossed daily--not every other day every single day! never got sick for two years! worked out at gym and at home 3-5 days every week...every week. I felt like a million bucks--so I kept doing it."

Mike Broemmel said,

I think reforming the health care system in the U.S. is a top priority. It simply is not working effectively. The vast majority of people without health insurance coverage have not voluntarily elected to go without -- they cannot afford coverage and they need it. I support doing away with waiting periods, I support portability and, yes, I support the public option. This is not some radical proposition. The majority of U.S. Presidents in the past 60 years supported significant health care reform ... and not just the Democrats. President Nixon seriously considered implementing a type of universal health care for the American people. If our agricultural delivery system failed at distributing basic food stuffs to the American people as poorly as the health system has provided basic medical care (both life sustaining issues) people would have been up in arms. There is too much misinformation being spewed about by those opposed to reforming the system.

Republican Senator Pat Roberts, the Junior Senator from Kansas, was quoted on NPR and WIBW-TV as saying,

I have taken a hard look at the proposals before the Congress and I will not support ill-considered legislation that hurts those it intends to help. Many of the proposals will have dire consequences for patients – denying access to quality, affordable health care, raising taxes and rationing care. The unprecedented cost of a public plan will have a staggering effect on our economy.

So what is your opinion? Did you here the Presidents speech last night? Do you agree with him? What is your opinion on making health care more affordable to all Americans?

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Living Without Credit

2009-09-09T08:59:00.004-05:00

Craig (aka BudgetPulse) has the opinion of majority of Americans,

Living on cash only is not realistic and you need to build a good FICO score for loans and big item purchases.

However, is that accurate? Many Americans have found that they can live without debt as reported by a recent NBC story. The reasons vary, but thousands, maybe millions have found it can be done. Lets take a look.

Lisa Brough was forced into a debt-free life by medical disaster.

Her husband has Huntington’s disease, a degenerative brain disorder, and has been unable to work since 1999. The couple, who have three children, saw their finances suffer as a result. They ended up with $50,000 worth of credit card debt as Brough worked two jobs and still struggled to pay the bills and the high property taxes on their home in Westchester County, N.Y.

“I said to myself, ‘I can’t do this anymore,’ ” she recalled. “He was going downhill, and I had to figure out a way to get out of this. I couldn’t count on tomorrow because I didn’t know what tomorrow would bring.”

In 2005, she took drastic measures. She decided to sell her $350,000 home, pay off all the family’s debt, and move to lower-cost Cary, N.C., where she was able to buy a house for $164,000 house in cash.

Since then it’s been cash and debit cards only for Brough, 50, who has no debt of any kind.

How does she do it? She buys secondhand furniture and electronics, gets her husband’s medicines from Canada at cut rates, has a $10,000 emergency fund and thinks long and hard before she opens up her wallet.
- MSNBC Business Desk

That comment, she couldn't count on tomorrow is the same argument that Dave Ramsey uses (or one of them) to urge his listeners to go cash only. She took the step to sell a more expensive house to pay cash for a house that was more in price range. Basically, she stopped trying to impress those around her and instead, just bought what she needed.

JD Roth, who writes the “Get Rich Slowly” blog, says more of his readers want to move in the debt-free direction. “It’s this whole movement back to basics,” he says.
- MSNBC Business Desk
Roth continues by telling NBC that the idea may not be so simple (or realistic) for everyone, because they have the mentality of I want it and I want it now. How true that is. However, it is my firm opinion that it is very realistic, but we do need to get rid of the attitude that we deserve everything that we see. We can't have eyes bigger then our stomach, or in this case wallet.

Indeed, going debt-free is no cakewalk.

“We have to always plan ahead now and make sure we have the cash,” says Jeff Pelletier, who stopped using credit cards after a series of unfortunate financial events. He lost his job nine months ago producing training videos for a St. Louis company, lost his house to foreclosure, ended up $50,000 in debt and filed for personal bankruptcy late last year.

Without credit cards, he has been unable to make major purchases. “We’re sort of living hand to mouth,” says Pelletier, who relocated to Boise, Idaho, for a job with a general contractor and is renting a home with his wife and two sons.

“The thing that hit me the hardest was that plastic has no emotion to it. Whip it out, use it, done,” he says. “Cash is harder to part with.”
- MSNBC Business Desk

Yes, big purchases may be more difficult as BudgetPulse mentioned earlier. However, not impossible. Those of us whose grandparents grew up in the great depression know that they scrimped and saved and bought everything, including their homes with cash. They also did a lot of the work themselves, when building those homes to. If you think about it, if you borrow, you pay 2 to 3 times the value of that home or car or whatever you are buying on credit. So to pay cash for said item, can be done, if you save that money instead. In a sense make that interest payment to yourself. For example, on the car, if you can afford that payment of $300-$400/month for 4-5 years. Why can't you put it in a savings? In the time that it would take to pay off the bank note, you could have a savings account large enough to buy 2-3 cars. Then if you keep the car for a minimum of 10 years, better yet drive it until it falls apart. Those 3 cars that you have saved up for, will be the only 3 cars you need in your entire life. Warren Buffett, currently the second richest man in the world, doesn't borrow to buy his cars. He also doesn't drive flashy cars. If he spent his money like so many Americans do, he would not have the money that he does.

Still, some worry about their credit score, and going debt free will hurt that. No credit history can as bad as having a bad credit history. However Howard Dvorkin, founder of Consolidated Credit Counseling Services Inc. and author of “Credit Hell – How to Dig Out of Debt,” was quoted in the same article,

But even if you stop using credit right now it will take eight years before you have no credit history. In any case, the positive impact of being debt free on overall economic health generally outweighs any negatives.
- MSNBC Business Desk

I agree, and that is my goal to. I want to be completely debt free. Unfortunately, that will take a little longer for me now, because I borrowed to reside the house. Still, I will get there. I just took a detour.

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