Archive for November, 2009

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Mortgage Adjustments: Is it Right For You

Friday, November 20th, 2009

The federal government has issued incentives for mortgage holders to work with those homeowners who may be behind on their mortgage, to renegotiate.  The renegotiating may involve reduction of principal, adjusted payment amounts, and delayed interest.

The problem with this situation, is there is no easy mechanism to handle this sort of problem.  It has to be done by the mortgage holder, after being asked by the homeowner for assistance.

This report shows that the mortgage adjustment departments of many of the nations biggest banks, such as Bank of America, and Wells Fargo, are actually hiring a lot of new people to handle the volume.  One of the few areas of growth in employment in the country right now.

Another issue with this situation is  it frequently just delays the inevitable.  If you have lost your job, it may not matter if your mortgage payment is 25% less than it was-”can’t get blood from a turnip” as we say here in the South.

What does this have to do with Millionaire Nurse wannabe’s-well mainly as a cautionary tale.  Don’t let your eyes fool your stomach, to keep up  the southern sayings-and buy a bigger house than you can afford.  Many suggest keeping your mortgage at less than 25% of your salary.  Buy the house with a large down payment that gives you equity in case you do have to sell sooner than you intend.

If you are in trouble regarding paying your mortgage, then make sure you call your mortgage holder sooner rather than later, before the money runs out in these federal programs that are helping the banks with these mortgage adjustments.

Develop that emergency fund I keep posting aboutbecause it is so important to give you a cushion when times are tough.  Cut out non-essential expenses, keeping your spending to a bare minimum until you decide if you can stay in your home or have to sell or renegotiate.

And remember, if you haven’t signed up for my free ebook, “Emergency Money Resuscitation” you can do so here.  As part of my mission to help nurses with their finances, we will also email you a mini-course over the next 6 weeks or so on improving your personal finances,-free too, of course.

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Posted in personal finance | 1 Comment »

Time is Money-Money is Time

Thursday, November 19th, 2009

One of the chapters in my soon to be released book deals with the time we spend daily on things that may not be important enough to merit the time and stress related to them.  Many of these things cost money, with very little benefit.  Others may not cost money directly, but because of  the stress related to over scheduling-the costs are more emotional than monetary.

One of the most common causes of nurses leaving the field of nursing is burnout.  With a job as emotionally stressful as nursing, any other strains added to the normal job strain, can push good nurses “over the edge” so to speak, and lead them to quit.

What are  a few of those strains?

So please take the time to do a life inventory.  Begin to read,  study,  and discuss with your family what is truly important, and begin to whittle away at the “stuff” we let get in the way.

Let me hear your time and money concerns, questions, and your recommendations if you have made progress in these areas.

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Posted in Quality of Life | No Comments »

Emergency Money-Five Ways to Raise Money in a Hurry!

Wednesday, November 18th, 2009

One of my strongest recommendations for people trying to get out of debt, beside goal setting, and planning is the emergency fund.

See this post for more information about the super-duper emergency fund, that I recommend all  of you have and the reasons why.  For today’s post, I want to give you a few options for how to raise an emergency fund account in a hurry.

  1. For nurses, overtime is frequently available.  On one of the wards that I work, there was a sign about overtime available to work the night shift, because of a temporary nursing shortage on that wing.  Two or three extra shifts at time and a half, can raise a thousand bucks for a small emergency fund in a hurry.
  2. Sell books and text books.  See this blog post from Money Blue Book on helpful hints for those of you who haven’t sold any books online before.
  3. Have a yard sale-while this tried and true method for raising a few bucks may seem old hat, in this economy people are shopping more than ever for a bargain.  Go in with friends, and make it a fun day, in addition it will  help clean out a few closets.
  4. A second job-if overtime is not available-and these days those overtime shifts can be harder to come by, a second job working an extra weekend a month, or a couple of shifts extra on your off days-can help you pile up emergency cash.  Most nurses can find work in their field, but if not delivering pizzas or other short term work can help fill the coffers-remember this is for emergencies!
  5. Sell a toy-(no I didn’t say sell your boy).  If you have a Harley, boat, extra vehicle, jet ski ……. You get the idea.  Put it on the block.  Do an internet search to find out the going price and get it gone.  If you have no emergency money, you have no business with a toy or toys anyway-and you need to be working extra right now, not playing.

So look at the above list and find which way suits you to help build your emergency fund.  Maybe do some of it all-having a cash cushion or margin can be a life saver for those of you trying to work your way out of debt.  It can be the difference between just a bad day-having to dip into savings for a new set of tires, or an expensive medical emergency. Compare that to blowing weeks or months of hard work trying to lower your debt, then having to reach for the old credit card to pay for an emergency expense-then having to start all over.

Good luck!

For more ideas for “Emergency Money Resucitation” go to my website for my free ebook, packed with money-saving ideas.

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Posted in credit cards, debt reduction, personal finance | No Comments »

Buying a New Computer-the Millionaire Nurse Way!

Monday, November 16th, 2009

If you are like me, buying a new computer is similar to the way I felt as a new student in the hospital-every one around you knows more than you do, and they know it.  So they are standing around, with a smirk on their face, watching and waiting on you to ask a dumb question, or do a dumb thing and look like a fool.

The older I am, the less I care whether I look like a fool, as long as I get my questions answered.  I would rather look like a fool in the computer store, than know I was a fool, when I figure out I wasted money and bought the wrong thing.

Now there are a lot of decisions to make regarding computers that I can’t cover in a short blog post, so please let me know your suggestions, or recommendations.

  • Mac or Windows:  Mac pro’s: less virus prone, easier to manage media, such as pics and video, cool factor (not worth much for Millionaire Nurse wannabe’s).  Mac Con’s: more expensive.  (I choose Windows   because my son is a Windows expert-if you have a computer expert in the family-do not buy something that will allow him or her to say-sorry can’t help I’m a (Windows or Mac) man!!!
  • Netbook, Notebook, laptop or desktop:  The new netbooks have a great “cute” factor-so my grown daughter says.  They work great for a lot of folks who are not into games, or media-but use them mostly for email and web-surfing.
  • Notebooks and laptops, can be more full service-if portability is important, and you need pics and video management-these are great choices.
  • Desktops-you get more bang for your buck here.
  • Brands-among windows versions, brands are numerous.  I go to http:// www. cnet.com  for reviews of specific brands-get an opinion from your IT friends on what your particular needs are.  Go to the computer stores to test-drive and make sure you are comfortable with them.

I bought my last laptop at Wal-Mart-they have gotten more involved in computers with a special push on pricing competitiveness in the last year or so.  If you don’t need a lot of technical support, or have it available like I do “in the family” then go with Wal-Mart or your local wholesale club.

If you do need support, then the computer stores, both local and chains, Best Buys etc may be better for you-just make sure they are financially stable and will be around next year if you need something-remember Circuit City.

Just an aside for those of you who have computer nerds in the family or close friends-they will want you to buy the fastest, coolest machine you can afford-they just will.  So remind them over and over that you don’t want more machine than you need.

The hardest part in computer buying to me is being sure you are comparing apples to apples-make sure the specs you are comparing match.  If you are not sure, then keep asking questions until you are.  Write down the RAM and ROM, chip speed, video-card-note whether it has a built in camera if that is important to you.  It doesn’t matter if you don’t know what those things are-just make sure you compare computers of similar specs.

Screen size of the monitor may matter if you are like me and do a lot of writing and reading on the computer.

Also make sure you know the stores return policy, before you leave.  For a review on the pluses and minuses of warranties see this post.  I don’t usually buy extended warranties-but there are times when you may feel it is worth it.

For those of you who haven’t shopped for a computer in some time, here is a range of prices for what we have discussed above:

Netbooks: $300-500

Laptops: $400-1200 for Windows-900-1500 for Macbooks.

Desktops $400-1200 for Windows versions-  Macs start at $900 but go up quickly from there.

So remember when computer shopping-don’t let bells and whistles overwhelm you, get the computer you need for the next 24-36 months-not one for 5 years-doesnt’ mean you trade in 2 years, just don’t buy so much more computer than you need  now because you “may need it” in the future-cover just the present.  Technology changes so fast, if you tried to predict what you need 5 years from now-well you can’t!

And it should go without saying-your computer purchase should be with cash you have saved for this purpose.  It should be part of you or your families planned spending-not an impulse.

And if you need Emergency Financial Resucitation-go to my website and sign up for my free ebook.  And remember to send your nursing friends our way-to learn about personal finance topics-all questions welcome.

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Posted in Planned spending aka budget, Uncategorized | 1 Comment »

Home Buyer Tax Credit-Not Just for Home Buying Virgins Anymore

Saturday, November 14th, 2009

 

How to Save Thousands on Your New Home Purchase

The First Time Home Buyers tax credit law was just recently extended through May 1, 2010.  The part of the new law that has been under-reported is that the new law extends tax credit to those who are veterans of home buying.

Millionaire Nurse wannabe’s need to meet additional criteria, before buying a home.  I will give my home buying suggestions in another post.  Be on the look-out.

The first time home buyer tax credits basically remain the same as the one that was supposed to have expired November 30, 2009.  It provides first time home buyers with an eight thousand dollar tax credit on the purchase of a qualifying home.  The rules for repeat buyers are a little different-so read on to get the details.

Here is a quick review of the pertinent points of the Home Buyer Tax Credit for the first time home buyer:

  • Up to 10% tax credit on the purchase price of a new home-maxing out at $8,000.00
  • Must not have owned a home for at least the three years before the qualifying purchase.
  • If a couple, both individuals must meet above criteria.
  • They must live in the new home for three years as their principal residence.
  • You cannot purchase the home from a parent, grandparent or your children.
  • If your tax credit is above your tax liability, you may receive a refund check for the balance. (If you qualify for 8,000 dollar credit and your tax bill is 4,000, you may receive a refund in cash for the balance.
  • Home purchase price is capped at $800,000.

The pertinent points for repeat home buyers:

  • Must have been living in one residence for five of the last eight years.
  • The tax credit is up to 10% of the purchase price, but is capped at $6,500 for repeat buyers.
  • Married couples modified income limit begins to phase out at $225,000 and is capped at $245,000.
  • No retroactivity- Must purchase between November 6, 2009 and close before July 1, 2010 with a contract in hand before May 1, 2010.

To qualify for both first and repeat buyers credits you must provide proof of purchase-usually a HUD-1 form with your tax return. Your new home does not have to be a detached single family home, but you do have to live there as your principal dwelling-and proof of occupancy may be required if you get audited.

So for those of you who thought the gravy train of a large tax credit was over, this gives you new life to find that qualifying new home-go forth and do your part for the real estate community and buy a new home-but only buy what you can afford.  That tax credit will be of no benefit to you in a year or two if you are struggling to make your payment.  The F-word (foreclosure) is no fun, and that new home can become a burden instead of your new castle.

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Posted in personal finance | 1 Comment »

Debt: How Much Does Yours Cost

Friday, November 13th, 2009

Matt at the Five Cent Nickle has a great post today on determining how much your debt is costing you in real money this year.

The idea here is to add up your interest costs on your credit cards, your mortgage, your car payment, and any other loans you may have.  You will need a little time, a calculator, and your statements or bills.  If your statement doesn’t separate your interest from principle, then you may have to call the holder of that debt to get the information.

When you add up the numbers and see the amount of interest you are paying during a year, it can open up your eyes to the true cost of debt.

I had a patient this week, a long time smoker, who decided she was ready to quit.  Why, after thirty plus years ,did she make up her mind this week?  She had in a sense “looked at her debt”.  In this case, she was watching her older sister, on a ventilator from COPD, (a chronic lung condition common in smokers for you non-nurses) suffering and unable to breathe on her own.  In her case it allowed her to look into her own  future- so to speak.  She was seeing herself, 10 years down the road, if she didn’t quit the cigarettes.

So, after years of encouraging her to stop smoking-she finally was ready to talk about it.

So let this weekend be the time you find out what you are spending on your debt-how much the interest on your debt is costing you-and vow to make changes in how you manage your finances.

If you think you don’t know how, go to www.themillionairenurse.com, sign up for my free ebook, “Emergency Money Resucitation”.  An additional freebie will be an emailed mini-course on managing your finances.

Let me know here how much interest is costing you on your debt this year, and did it open your eyes on why you need to eliminate it as fast as possible.

And again, please send our blog link to your friends and family, who you think may benefit from our advice or who you think may just enjoy our writing….

 

PS If you want an email reminder of a new post-sign in in the box on the bottom right of the blog.

Have a great weekend.

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Posted in debt reduction, personal finance | 1 Comment »

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