Meta Post : 5 great comments

Posted by Tad Johnson - May 5th, 2008 at 20:05

I’ve been impressed by the quality of comments lately. In case you missed them, here are five comments and my response. 

1) In response to backing up your finances, Presh wrote :

“I would add one more suggestion for younger people: talk to your parents about their financial information and ask if they have all their financial information backed up. We don’t like to think about it, but we might need to help them in a medical or physical emergency”

This is a great point to add and an important consideration. Chances are, you have parents. Have you talked to them about their finances? It may be an uncomfortable conversation, but it’s important none the less. 

2) On the subject of real estate, and the falling suburb house prices, jrandom42 added this: 

 ”Notice it said MOST. Not happening in the Puget Sound area. Prices are still sky high. There are radio commercials for places in the “mid 700s” as if those were really bargains. Even an hour and a half away from Seattle, prices are still in the mid-300s.”

This is a really important point for anyone considering a real estate investment. The U.S. economy is continually shifting and picking the right area is crucial for any long term investment like a house. 30 years ago, Detroit seemed like a pretty great place. Today it’s a ghost town in some parts. Flint is even worse. Pick an area with a strong economy that is likely to remain strong throughout the coming energy shift.

3) Glen shared his personal experience with using cash : 

 ”I normally swipe my debit card for everything, only using cash for parking decks and restaurants that won’t take cards.

While I was in Europe earlier this year, however, I found that carrying Euros was far easier than hoping that a store would accept a card, and I was amazed at how much more conscious I was of what I was spending.

I’m normally a tightwad, so I rarely worry about going over my limit - with 150 Euros draped around my neck though, I could literally feel the impact of every three or four Euros spent (especially via coins).”

Going cash-only not only helps your everyday personal finances, it can really help while on vacation.

4) Quick hit–Eric suggested another credit card for gas rebates : 

 ”I’ll just add that the Discover Open Road Card includes 5% back on gas purchases as well as the above mentioned ‘Auto maintenance.’”

5)  Dan achieves the ultimate gas savings zen : 

 ”I think there is one obvious tip for saving money on gas … take fewer trips. I think our culture is too comfortable with this on-demand lifestyle. In the old days, people would keep a grocery list and then go shopping on the weekend to stock up for the week to come. Now we are constantly making trips to the super market or over to pick this up or run that errand. I think we could all save some gas and some stress if we slowed down, planned, made lists, and stocked up.”

This is a great point that can be said often enough. We need to rethink our relationship with automobiles. If nothing else, $4 gas should teach us that we don’t need to drive for every errand or every outing. Most of the other 6 billion of our neighbors on Earth manage to live without cars. . . why can’t we?

 

Do this today : back up your financial data

Posted by Tad Johnson - Apr 30th, 2008 at 20:04

You have strong passwords on all your financial accounts. (Right?)

You have an emergency cash account that you could access in an emergency. (Right?)

You have car insurance and/or renter’s insurance. (Right?)

But, do you have copies of your important financial data? Sure you can access everything online, but it’s a whole lot easier to consolidate everything in one place. Take ten minutes out of your day tomorrow and do this:

  • Make scans of all the cards in your wallet (front and back). Store it as a .pdf or .jpg somewhere secure (like in your gmail account).
  • Write down all your important contacts & account numbers for your banking/investment accounts. Store it securely online.
  • Get $100 from the ATM and hide it somewhere in your house (hey, you never know).

With these three simple steps, you’re preparing for the worst possible situation. Hopefully, you’ll never have to access your “backups” but if you ever do, you’ll thank yourself big time.

Today’s Mandatory Reading

Posted by T.W. Hanson - Apr 30th, 2008 at 20:04

energy

Thomas Friedman has a few words about U.S. energy policy.

Enjoy!

Consumer Confidence

Posted by T.W. Hanson - Apr 27th, 2008 at 17:04

Consumer Confidence

One of the economic indicators economists and Wall Street types follow is the result of a monthly University of Michigan survey on consumer confidence. The most recent report came out on Friday, April 25. It was the lowest level of the past 26 years. Many people, myself included, have no memory of an America with consumers this depressed. Even fewer have been working in the financial world when the numbers were previously this low. The uniform lack of knowing about this resulted in a muted response in the markets. We will see in the months ahead if this was appropriate.

I do not know what the direct impact of this sentiment divot means. Will people continue spending? Will companies reduce inventories? Is this only the beginning of the recession in the real economy, not just the financial sector? Will stimulus checks save us?

Smart real estate investments

Posted by Tad Johnson - Apr 23rd, 2008 at 19:04

Thinking about buying your first home? Be careful where you buy. As we’ve already seen, future home price appreciation (and depreciation) will vary greatly depending on location. With gasoline prices rising and no relief in site, distance from the city center is becoming a crucial determinant for home prices.

For years, home size and features (like 1/4 acre yards) drove home prices. Suburban mansions popped up all over the country in cheap converted farmland. With an ever-expanding highway system and cheap gas, many thought this was a great deal.

Now that’s all changing. With environmental and economic factors pointing home buyers toward the city, suburbs are diminishing in value. But don’t take my word for it, read on below.

http://www.npr.org/templates/story/story.php?storyId=89803663

Home Prices Drop Most in Areas with Long Commute : NPR via kwout

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