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

Spending too much? Try cash

Posted by Tad Johnson - Apr 21st, 2008 at 21:04

First, a short story :

When I was a sophomore in high school, I wanted a CD burner very badly. This was back in the late nineties, and CDs were still a hot commodity (as the iPod was still just a glimmer in Steve’s eye). I went to BestBuy with some friends and found an open box burner for a [then reasonable] $130. I didn’t have a credit card, so I went to the ATM and pulled out seven crisp, $20 bills. I paid for the drive in cash and walked out a happy man.

Holding that much money ($140 was a lot of mowed yards) in cash makes you appreciate the amount–much more than a quick credit card transaction. I still spent it, but it made me really think hard about the purchase. And, it made me really value what I had bought (I made legal copies of all my store-bought CDs, naturally).

cash1.jpg

This is a personal finance hack that you can use at any age. If you’re having trouble tracing down where your money is going, try switching to cash for awhile. You get instant feedback on your spending as you watch your wallet shrink.

I’ve written before about the benefits of using credit cards, but that’s only after you’ve mastered the art of personal finance and budgeting. Going on a cash-only plan for a few weeks is the perfect crash course to get your finances back in shape.

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