Archive for the ‘Personal Finance 101’ Category

« Older Entries
Newer Entries »

Battery Talk: Ten Facts You Need To Know

Thursday, August 18th, 2011

Auto Batteries

The usual story.

My wife was headed out of town.  Turn the key on my truck she was borrowing for the trip.  Nothing.

Turn again…Nothing.  One more time, nnnnnnhhhhhnnnnnhhhhh vroom, vroom!!!!

The truck was running.  The small-minded among you who use stereotypes would say my bride would then head off into the sunset and not think a thing about it.

My wife fits few stereotypes.

Battery Cemetary

She headed to O’Reilly Auto parts-the closest auto-parts store on her way.

The battery tester showed one core was as dead as a 90 year old without his Viagra….

She heard  the spiel, bought the  battery the sales guy recommended, and was on her way with only about 45 minutes lost. Cost be damned!

Ripped Off?

This personal finance guy was ready to pounce when he heard this story.

Buying a battery.  No research. No price comparison.  Emergency purchase.

All the ingredients were there for a foolish waste of our hard-earned cash.

I did what I had to do….  Research auto batteries and prove her wrong!

What did I find out?

Auto Battery Facts:

  • 90% of the batteries are made by three manufacturers-Exide, Johnson Controls, and East Penn.
  • Batteries have to be matched to your vehicle-most online sites have a battery matching algorithm to go through.  There are top post and side post batteries.
  • Batteries now come with a 3 year free replacement and up to 84 months pro-rated warranty.
  • Many online reviews highly recommended Costco who sell Kirkland Batteries, manufactured by Exide, or East Penn, depending on who you read.
  • Batteries are rated on their cold starting ability (CCA)and their time to die when the alternator quits or you leave the radio or lights on.
  • FastStart made by East Penn is the O’Reilly battery we bought. Don’t be confused with EverStart made by Johnson Control sold at Wal Mart.
  • Bill Darden has a serious battery website/FAQ page for those of you who want to get to the science of batteries.  Sailors take batteries very seriously.  I used to be a sailor.
  • Try to find batteries that have not been on the shelf long-as they do have a shelf life- Just like beer. Manufacturers dates are usually on the battery.  Don’t buy from the local shop that sells two batteries a year as it may already be partially discharged.
  • You folks that live in extreme cold weather, your batteries have it a lot rougher.  We don’t deal with re-chargers or heaters in the south.
  • High temps  shortens  battery life- as does that extreme cold.

The Results? Best Battery Buy:

  • My wife’s  105 bucks for a 3 yr free replacement,  84 month pro-rated battery warranty beat the prices at Auto-Zone and  NAPA, although it is hard to compare apples to apples when it comes to batteries.  Their stats and warranties are all just a little different.
  • Online reviews consistently touted Costco and even Wal-Mart for great battery replacement prices.  Wal-Mart and Costco’s websites were much more difficult to search and would not quote a battery price. So how can I compare?  If you need a battery and live near Costco or Wal-Mart, and are not in a hurry, check ‘em out.

As it turns out, my wife’s emergency battery purchase was at a competitive price and quality.  Whoo Hoo!

I sure wasn’t looking forward to telling her she made a bad purchase.  I think, rather I know, I would have just kept it to myself-you learn something after 30 years together.

Battery Comments:

You bought a new battery lately? Where did you buy it and what did it cost?

{Photo Credit: Spatulated c.c.}

Speakin’ of Google + I’m there as  Dean Burke….they wouldn’t let me use Dr Dean…  Put me in one of your circles, I’ll feel so special….

Make sure you follow me on Twitter @DrDeanBurke- quick links on the side of the blog!  And let’s not miss a post-sign up for email special delivery or the RSS feed!

Friends, I love friends-check out my Facebook page, and I’m definitely Linked-In-use the shortcuts on the side-that’s why I paid my Web Master of the Universe-Ben-the big bucks to put ‘em there-saves you time!

 

 

Tags: , , ,
Posted in personal finance, Personal Finance 101 | No Comments »

Home Buying:11 Tips In The Obama Economy!

Tuesday, August 9th, 2011

Home Buying 2011 Style:

Fear is paralyzing, it’s gut wrenching. It can make your toes curl like a dew claw….

But life must go on.  Even with all the economic turmoil we have jobs  or school to deal with.  We have a living to earn, families to feed.

As it has been famously said, “The show must go on!”

Reading at The Nerdy Nurse reminded me that even in this time of “the worse housing recession since  the Grapes of Wrath” there remain families who are buying houses.

They have grown out of their current living arrangement.  Maybe it’s a new job, or a new baby.  Maybe the fears about job losses and the world ending have faded enough to end your paralysis by analysis.  It’s time to pull the trigger, baby! 

Best Home Buying Time

Many are being drawn by the siren song of cheap housing prices and low interest rates.  It truly is the best time in the last 40 years to buy a home…….IF……IF……IF!

Why the 3 ifs??? Cause they are important and I wanted your attention:

  1. If:  You have a down payment-this lowers your risk.  Having to move due to job transfer, divorce, or other event is a real risk!  You need to have wiggle room to sell in a hurry when life happens.
  2. If:  You have a good credit history/score-otherwise you just can’t buy in this market-unless you are paying cash…..
  3. If:  You will be living there at least 5 years-this gives time for the market to recover and equity to build.   There aren’t many buyers  meeting the first two criteria.  So don’t put yourself in a bind by buying a home you know you’ll be selling soon.

Wheww…. OK, You got past that gauntlet.

Yo, you like…. got monee in yo pocket, yo credit is sick, an like, yo life plans are smooooth. (I’ve been getting a lot of hip hop spam comments-so I figured I’d play along, Yo!)

11 House Buying Tips:

Then what’s next?

  • You make money on real estate WHEN YOU BUY, not when you sell.  So get that one special bargain. Price per heated/cooled sq foot is a useful comp. tool.
  • The right neighborhood.  McMansions are out, mixed development is in.  People want to get to work and to play without spending hours in traffic. They want to spend money on iPads not gas…
  • School districts remain important-but not in some areas with vouchers, homeschooling, and online schools being more prevalent. Ask a lot of questions.
  • Don’t buy a Hummer in a neighborhood filled with Camrys.   Unless you have money to burn, don’t buy a statement….Save your individualism for paint, art work, or maybe just a tattoo hidden only you know where.
  • Many urban area neighborhoods or new suburban developments have dirt cheap foreclosed homes by the dozens…  But many of those will become rentals.  Don’t let a bad purchase decision make looking at your home be like a mobster looking at a concrete block….  If you want to buy a foreclosure or short sale, buy  that one foreclosure in a vibrant neighborhood.
  • Get several loan quotes.  Don’t just let your cousin give you a “great deal” .  Make him prove it by getting at least 3 quotes.  Don’t forget credit unions and online banks.
  • Get pre-approved so if you spot a great buy, you’re ready.
  • Read your paperwork.  All these new regulations have made it much harder for you to get bamboozled (old fashion word for screwed) at the closing.  But it can still happen.  I know it’s boring.  I know it’s still hard to understand.  Make your Realtor, closing attorney, CPA or your Uncle Vinnie explain it in a language you understand.
  • Don’t depend on a home inspection-get one, but do your own due diligence.  Poke around in the attic, basement, crawl space.  Turn on all the lights in the house, and then turn on the heat, microwave, and oven.  See if the lights dim or fuses fuse….If you’re buying a fixer-upper, make sure you’re a fixer upper.  It’s unlikely you’ll turn into Tim the Toolman or Polly Plumber as a new homeowner-more likely you’re like me, Dean the Checkwriter…..Know thyself!
  • Don’t forget to put taxes, condo or neighborhood fees, escrow, and upkeep expenses  into your planned spending (overestimate these costs) before you pull the trigger.
  • Experienced Realtor and Attorney: if you are buying a foreclosure-use experts- as that row can be tough to hoe….

Many folks out their have been soured on The American Dream of Homeownership…thinking it’s more like Friday the 13th on steroids. Or as my aging hippy friends like to say, “That was one baaaad trip, man!”

Buying the right home at the right price increases your chances of having a home that truly houses a happy heart.  Where great memories can be made!

{photo credit: respres c.c.}

Carnivals this week:

Best of Money is at Funny About Money-Thanks for putting me in the top ten!

Totally Money Carnival is at Not Made Of Money

Festival of Frugality at Mom’s Plan

Speakin of Google + I’m there as Dr Dean.  Put me in one of your circles, I’ll feel so special….

Make sure you follow me on Twitter @DrDeanBurke- quick links on the side of the blog!  And let’s not miss a post-sign up for email special delivery or the RSS feed!

Friends, I love friends-check out my Facebook page, and I’m definitely Linked-In-use the shortcuts on the side-that’s why I paid my Web Master of the Universe-Ben-the big bucks to put ‘em there-saves you time!

Tags: , , ,
Posted in Personal Finance 101 | 3 Comments »

Women Investors: An Oxymoron?

Monday, May 23rd, 2011

Women and Investing

The word “Investing” sends chills down the spine of many women.

This article on women and investing-Girls Just Want To Have Funds- (love the title Ms Blumenthal!) in the Wall Street Journal raises a few of the issues why women are not investing in the same proportion  as men.

Are you women thinking of those stock salesmen on the trading floors seen in movies like Wall Street with testosterone driven competition to make billions off the little people (us)?  The cigar chomping Gordon Gekko’s of the world squashing all on the other side of his deals?  None of that win/win crap.  It’s win for him and death for the rest……

If a child can tame the bull, so can you!

Invest: the definition.

Invest.…it means to commit (money)  to earn a financial return.  It also means to make use of something  for future benefits or advantage-such as investing in an education.

To emotionally engage is yet another definition.  As in: Investing your time in raising a child.

Let’s just get over the fear that comes with the word.  Don’t confuse investing with speculating.

On the other hand, respect the word invest.  If you invest inappropriately you increase your risk.  Risk is all around us.  Driving to work, eating food, even breathing can be risky if you live in the wrong part of the world.

You make decisions everyday at work that have risk, and don’t even think about it.  You make educated decisions because you understand what you’re doing.

Can NOT investing be RISKY?

Just as investing can be risky, not investing may be even more risky…

Consider those people scared to death by the onset of recession 3 years ago. The stock market was crashing and it seemed our financial world was upside down.

If you had panicked and stopped investing after the initial market fall and transferred your savings that were invested in stocks/stock mutual funds and moved into “safe” investments like cash or money market funds where would you be now?

For every thousand in your cash/money market account three years ago-you would have about $1,010 at most.  Cash earning and money market accounts have earned less than 1%.  With inflation running at least 2-3%, and some think it may be as high as 5%-you are going backwards in a hurry!

If you had left your money in your scary  stock investments……chicken little…. where would you be?

Don’t miss market re-bounds!

If you are like me, I put in additional investments during the recession years.  I invested just like I did before the crash.  But I was buying more shares for each dollar of investing compared to before the crash as prices were lower…..I bought Caterpillar, Home Depot, and others when they were bargains-now they are up nicely.

My retirement accounts are now back to pre-crash levels, and some accounts are actually ahead.  I’m up over 30% overall from the bottom.

If I had switched to cash I would have missed all those gains.   Statistics show most of the stock market gains occur in less than 10% of the days in the year.  The market shoots up like a rocket-then settles in a narrow range for a while, then does it again…..  You cannot time these moves-you just have to always be in the game to take advantage.

Women not investing for their future are risking:

  • Poverty in their old age.
  • Not being able to care for themselves.
  • Lower lifestyle after retirement than before.
  • Their husband/SO dying before them, and being more lost trying to play catch-up learning what to do with their savings/investments.

What should non-investing women be doing now?

  • Learning-you invested in your education for your career.  You need to invest in your post-career needs-learn about your retirement fund management.
  • Respect your limitations. If you don’t want to become an expert, at least become competent/knowledgeable enough to know a load of crap when you hear it from your so-called adviser….
  • Study your adviser’s recommendations/purchases-make sure you understand both where your money is going and why.  Are you buying a certain fund to diversify your portfolio, or is it a high commission purchase and is helping your brokers retirement fund more than your own.
  • Know what the fees and commissions are. My son says “Google” if you get stuck.  Check resources for comparable fees.  If 1-3% is the norm for your size account, and your guy is costing 5%-what does that mean?  If he is beating the market by more than 2% year in/year out-he/she may be worth it.  If not you are being ripped.
  • Experience is the best teacher!
  • Get Your Head Out Your A….If your spouse does all the investing decisions-make sure you talk about it every quarter or so.  You need to understand where your money is and why it’s there.  If your spouse can’t tell you how much you are making/losing in your retirement account each year-maybe you need to fire him and take over.  If you are behind the overall market consistently ask questions.   Men frequently trade/speculate more-and therefore suffer more losses than women investors as the article above describes.  You may balance the decisions perfectly.

Get out there and learn about investing.  It can be a lot more fun than watching reality show re-runs this summer.  Take a book on investing to the beach with you.  Your friends,  husband and children will be impressed.  If they make fun of you, make ‘em read this article.  (it will help my numbers too!)  Win/Win…..

Reader Questions:

If you aren’t helping manage your own retirement account why not?  What do you think you need to do to learn the ropes?  Anything I can do to help?

{Photo Credit: Aranha c.c.}

Carnivals featuring my posts…

Best of Money Carnival-top ten pick at How We Prevent Wealth

Carnival of Wealth at Personal Dividends

Totally Money Blog Carnival is at Outlaw Money

Integrated Finance Carnival is at Integrated Loans

Make sure you follow me on Twitter @DrDeanBurke- quick links on the side of the blog!  And let’s not miss a post-sign up for email special delivery or the RSS feed!

Friends, I love friends-check out my Facebook page, and I’m definitely Linked-In-use the shortcuts on the side-that’s why I paid my Web Master of the Universe-Ben-the big bucks to put ‘em there-saves you time!

Tags: , , , ,
Posted in Investing, Personal Finance 101 | 5 Comments »

Millionaire: Three Easy Steps in 100 Words!

Wednesday, April 13th, 2011

Millionaire

That word brings out the emotions in so many people.

Ask anyone on the street, “Would you like to be a millionaire?” I’m sure 99% would say yes. But a majority think it won’t happen without the lottery.

Free Money Finance wrote a commentary on an article from CNN Money about the:

Three Easy Steps To Become A Millionaire.

  1. Save money regularly-Automatic savings before you see your check.
  2. For enough time-Early in your working life.
  3. At a decent rate of return-using Index or growth mutual funds with proven track record!

Time’s passing,  Start Now!

One step, every day!

Million in Ones!

(Thanks to Len Penzo for the idea of the 100 word format!-and no these words of acknowledgment don’t count in the word count! It’s my blog and I make the rules!)

{photo credit: suburbandollar c.c.}

Sign up for my free newsletter at the upper right.  You get extra stuff, and freebies from time to time… I also throw in an e-book and a mini-course by weekly emails to get you started! Check it out.

You can also sign up to receive our posts without worrying about missing one. Either E-mail or RSS Feed is top right. And feel free to like us on Facebook.

I try to make it easy for you with all those shortcuts on the right…  And follow me @DrDeanBurke-twitter is cool!  I promise you I won’t tweet you just to tell you stupid stuff!

Tags: , , ,
Posted in Investing, Personal Finance 101, Quality of Life | 5 Comments »

How To Take Charge Of Your Credit Card Debt!

Tuesday, March 29th, 2011

Paying off your credit card

{The second in a weekly series of articles on credit card tips.  These posts cover  many common credit card topics  with action steps you can put to work immediately.}

Remember, you vowed you were going to get out of credit card debt.  You’ve had it up to you know where with making decent money, but having nothing to show for it.

The first few weeks, you went happily along with the plan.  Then reality set in:  You realize your  measly payment will get your credit card debt paid off about the time you move from assisted living to the nursing home…

You decide to ask the right questions in the right way…

“Maybe I need to use a little critical thinking here.  Do a little research, and make better choices?  What is the difference  between success and failure?”

“Yes I know it was my fault, but now I want my Citibank Card and Visa accounts  to  be as empty Muammar Gaddafi’s conscience.  They are history, baby!

Critical Factors in Payoff Success

You have probably figured out (without my brilliant analysis) your payment amount and your interest rate are the critical factors in paying off your cards.

Before starting this journey on your own, however, you need to prevent crisis management. Being in crisis mode makes smart decisions impossible.  Like throwing a drowning man a beer.  He may appreciate the gesture, but he remains a drowning man!

Crisis management

That’s what got you in credit card debt in the first place.  Oops, can’t pay for my books, put it on my card.  Oops, need new clothes for work-swipe away…

Living with credit card debt hanging over your head is not living, it may be an adventure—if you think constant stress and strain are adventurous.

Getting Started On Card Payoff

The American Way?

I know you want to jump in and start killing Citi-but even the Hulk will think before he leaps!

Let’s review  your pre-credit card payoff steps.

  • Have a small emergency or mad money fund-for the next crisis. Don’t take one step forward and two back cause you had no cash….
  • Cut up, freeze, or otherwise keep the cards in your wallet from adding to your credit card debt
  • Decide which card to pay off first.  Smallest balance seems to be recommended by many, but highest rate card has math on its side.  Use your judgment, but read both sides of the argument and pick one.  Don’t wait for hell to freeze over while you choose.

Jump Start the Process

Now that you have the preliminaries down, it’s easy to become frustrated by the lack of progress.  What can you do?

Only one thing to do: Earn more money.

For you nurses, I wrote a post on earning extra money as a nurse.

For you non-nurses-read the post anyway cause it may give you a few ideas for side jobs or check out this other post for 10 tips on earning extra moolah.

Action Steps:

  • Get on a spending plan-use Mint, Quicken,  or other systems.
  • Throw every extra dollar at your credit cards- bonuses, raises, e-bay, or  yard sale money.
  • If your card has a high interest rate, try to find a  lower rate card. It will cost you a fee to switch, but it’s worth it if you can pay off the new card quickly.  If you don’t know what a debt snowball, avalanche,  DOLP, or bucket of hot water are then do your homework.
  • When you pay one off, reward yourself with an appropriate level reward.  That might be a night out at McD’s , Olive Garden, or your  favorite gourmet restaurant-if you paid off the BIG ONE!
  • Then get started on the next one.

Other things to keep in mind:

  • If you transfer a balance to a new card, it may ding your credit temporarily.
  • If you use all the available credit on your card by consolidating  two balances-it may hurt your credit.
  • If you get a lower rate card using the techniques I described last week for getting your credit card rate lowered, being late for a payment will jack the interest rate back up.
  • If you are not making progress or can’t even make minimum payments-you may need to either negotiate a settlement or consider debt consolidation. These are topics for another post.

Success with Credit Card Debt Reduction

Getting out of credit card debt  has two parts that are amazingly difficult:

1.       Getting started: It is so much easier to just not rock the boat.  You can’t admit to your family or yourself  you don’t know how to manage your money.  You feel  like such a failure and you don’t deserve financial success anyway….

2.       Sticking with it: Diets, exercise resolutions, and making headway on debts are all in the same category.  They require lifestyle surgery.  You can’t just say, “Tomorrow will be different.”

To make tomorrow  different than today, you have to start.  And if you don’t have your stuff together before starting, you will be doomed to failure.

Remember, there will be setbacks along the way-just keep after it.  Learn to visualize your life after debt.  Use that vision to get you through the black days.  Get a buddy or friend that understands your situation and call them when you are frustrated.

Questions/comments: Tell us your story.  How did you get out of credit card debt?  What worked for you?  What are your frustrations?

(Photo Credit: Martinez, Carlos c.c.)

Carnivals featuring my articles this week:

Editor’s pick at the Carnival of Personal Finance at Money Beagle! Yes! (and thanks!)

The Yakezie Carnival is at Control Your Cash, with great commentary!

Totally Money Carnival is at Debt Free Divas

Remember the RSS Feed is top right.  You can sign up to receive our posts without worrying about missing one.  And feel free to like us on Facebook.  I try to make it easy for you.  And follow us @DrDeanBurke

Tags: , , ,
Posted in credit cards, Personal Finance 101 | 5 Comments »

Buy and Hold: Is It Dead?

Tuesday, March 15th, 2011

Buy and Hold

Buy and hold is a stock investing strategy that is probably as old as stock investing itself.

Just like many years ago when both Time Magazine and the New York Times decided God was Dead-many talking heads now consider Buy and Hold is Dead!

Before we do the autopsy, what is buy and hold?

Buy And Hold

Purchase a stock, or mutual fund after considerable study and then-nothing!

Let it sit and grow.

Now I don’t mean ignore your holdings.  Review your holdings on a schedule.  At a minimum of once per year.

Always have a list of those stocks that you want to buy-new ones or dollar cost averaging with your present holdings.  Be ready for the dips in the market to add to your holdings at a good price.

What are the buy and hold is dead crowd crowing about?  “Long live trading!”

Buy and Hold Problems

Buy and Hold Is Boring?

What are the knocks on buy and hold?

  • People don’t hold, they get nervous and trade.
  • With the rapid pace of change and new technology, companies are rising like the space shuttle one day, and falling like hail the next.
  • Costs of trading has gone down.
  • Loss of faith in the market.

If you are going to stop buying and holding, then what is left?  Buying and selling.  AKA Trading

Trading, not buy and hold

Why does buying and selling (trading) doom you to failure?

  • Fees-every time you buy or sell there is a fee involved-doesn’t take long to add up.
  • Emotions-there are reasons the market rises and falls week to week and month to month.  And frequently it doesn’t have anything to do with reality of the company you bought.
  • Lack of knowledge-trading stocks frequently means you have to have knowledge of many more stocks or funds.  Turning your portfolio over frequently requires something to replace it with.  Do you have the time to spend studying the stock market that much?
  • Most traders use market timing, options, and selling the market short.  Do you want to do this?

Buy and Hold

(with apologies to Shakespeare)

The talking heads say

buy and hold

Should be ignored

and given up for dead.

But  I say

“Give me proof!”

They whine and complain

about the last 10 years

and their lack of gains.

Ignoring a century

while giving 10 years your focus

is like exchanging science

for hocus-pocus.

Buffett and  Bogle-

They aren’t stupid.

Their billions are real.

Calling em out

is not too too cool.

As the masses shrill

the sky is falling

I want to yell

“wake up from your dream!”

To those who doubt

buy and hold wisdom:

Take a Valium

or something more drastic!

As for me,

I will continue to add

(with dollar cost averaging)

to my long-term portfolio.

Keep my expenses,

and taxes oh so low.

When I want to speculate

it will be with a small percent

of my gains.

My plan:

slooow and steady.

No race for me!

When the crowd yells “sell!”

I’ll be ready.

I’ll have plenty of cash,

To ring the crowd’s bell!

In summary, Buy and Hold isn’t dead.  Buy and forget should never have lived.  Buy stocks that have  good value, monitor their progress, and remember it’s ok to sell.

Sell  if you decide you made a mistake or the long-term value of the company changes.

Comments: What are your thoughts? Do you buy and hold?  Do you buy options, and trade daily?  Please let me know your reasons and success.

Carnivals I have been in this week:

Carnival of Personal Finance at Magical Penny

Totally Money Carnival at The Canadian Finance Blog

Carnival of Money Stories at Complex Search

Festival of Frugality is at Praire Eco Thrifter

Remember, my signing up to my RSS feed is up at the top right.  New posts delivered as soon as they are published, cool huh!  And follow me on Twitter @DrDeanBurke, and  use the shortcuts on the sidebar to friend on facebook.  And feel free to share what you read.  I love tweets, stumble upons, likes, Tips…..

Tags: , , ,
Posted in Investing, Personal Finance 101 | 6 Comments »

« Older Entries
Newer Entries »