Archives for February 2008

February 2008 Financial Status / Net Worth Update

Posted on February 4, 2008 // 18 Comments

Net Worth Chart February 2008

Credit Card Debt
If you’ve recently starting reading, you may have some concerns about my high levels of credit card debt. I’m actually taking money from 0% APR balance transfer offers and instead of spending it, I am placing it in high yield savings accounts that actually earn me 5% interest or more, and keeping the difference as profit! :D

Along with other deals that I write about, this helps me earn extra side income of thousands of dollars a year. Recently I put together a series of step-by-step posts on how I do this. Please check it out first if you have any questions. This is why, although I have the ability to pay the balances off, I choose not to.

Cash Savings, Home Purchase
We’re still in the process of buying a home. There will be big drops on the cash column soon as we finally spend our down payment funds as well as pay for things like closing costs and home improvements for our home.

$5,000 was put towards the earnest deposit, and I just marked it as spent. But I will have to decide on how to account for my home value in my net worth. I’m leaning towards just keeping it simple and taking option #2, but that may be considered a cop-out if my home value drops.

Retirement and Brokerage accounts
For the third month in a row, our investments overall have dropped in value by 2-3%. Good thing I only check in once a month. I gloomily predict that things will get significantly worse before they get better… but I don’t actually risk my money on guesses. I continue to “stay the course” and keep making regular investments into my asset allocation.

New Midterm Goals?
Although I still want to visit Brazil, Australia, and Southeast Asia, it looks like we’ll probably be spending the next 6 months instead installing hardwood floors, remodeling bathrooms, and jackhammering some concrete. I don’t know if we’ll have the time or money to visit any other place besides the wonderful world of Home Depot. We’ll have to see.

You can see our previous net worth updates here.

Filed Under: Goals //

Homeowners: Where Did You Get Your Mortgage?

Posted on February 4, 2008 // 67 Comments

I’m curious as to where people initially found their mortgage loans, even if later on it was sold to someone else. Here are the options, along with a brief and very generalized impression of their pros and cons.

  • National Banks. In general have above-average rates, but may have special programs for certain groups of people. May be more comfortable and/or reputable. Relatively rigid lending standards. Examples: Bank of America, Wells Fargo.
  • Local Bank. May have a good relationship and be easier to communicate with, and may be more flexible with underwriting.
  • Online Bank. May offer competitive rates, but the communication and service might not be as good. Example: Capital One Consumer Bank.
  • Local Broker. May offer a better rate by shopping around for a wholesale rate and adding their commission. However, the quality and honesty of these brokers can vary wildly from great to subpar. The rates quoted might not actually materialize.
  • Credit Union. Limited membership field, but may still offer good rates to members. Example: Navy Federal Credit Union.
  • Online Broker. You can compare lenders online at a distance. However, the service again might not be that great. Example: LendingTree.com.

Here’s is the poll:

Who Did You Get Your Mortgage Through?

View Results

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Feel free to explain your decision in the comments if you have time!

Filed Under: Real Estate //

Deep Thoughts While Driving A $150,000 Maserati

Posted on February 3, 2008 // 37 Comments

For some reason, my friend received a postcard from Maserati offering him some Omaha Steaks if he came in for a test drive. You’d think buyers of $150,000 luxury vehicles couldn’t be convinced to do a test drive for $50 worth of meat, but I guess not. Anyways, I convinced him to go – and of course to let me tag along. 😀

I wasn’t really familiar with the car, but the Maserati Quattroporte does look sexy. You may have seen it on the HBO show Entourage. Designed by Pininfarina and engineered by Ferrari, with a base price of $110,000 it could almost be seen as a bargain… compared to the $250,000 F430 it was sitting next to in the showroom. Here’s a video review from the UK:

Deep Thoughts…
One realization I had while cruising down the road – caressed by supple leather and listening to the Ferrari engine – was that I was getting more comfortable in my own “financial skin”. Before, I might have felt self-conscious on going to this test drive. Now I don’t care what people think of me. If I really wanted to, I could probably buy such a car some day. But I already have my priorities and they are nothing to be ashamed of.

At the same time, I also started to understand that there is nothing wrong with someone who does buy such things. Sure, they might be mortgaging their future in order to look cool now. But they also might be successful people with a solid financial plan and also appreciate fine Italian cars. I asked the saleperson who the typical buyer of a Maserati was. While many people were business owners or corporate executives, he also said his last sale was to an 82-year-old government retiree who finally decided “what the hell” and bought something nice for himself. In other words, perhaps us frugal folks shouldn’t judge others either.

I know I’ve been guilty of this. To this day, whenever I see someone under 25 and driving a shiny new BMW, the words “paid for by the Bank of Mom and Dad” pop into my head!

Filed Under: Frugal Living //

NotchUp: Get Paid to Interview For Jobs

Posted on February 1, 2008 // 22 Comments

You read it correctly, a new site called NotchUp is trying to replace pricey headhunters by actually paying people hundreds of dollars to interview. The twist is that they are actually looking for people who are already happily employed! From this article at NetworkWorld:

You say you wouldn’t interview with Company X if they paid you?

A startup called NotchUp is betting that’s a bluff.

Debuting this morning at Network World’s DEMO 08 in Palm Desert, Calif., NotchUp founders Jim Ambras and Rob Ellis tell me that 15,000 people a day are signing up for their new eBay-like employment service – based solely on word of mouth. The founders are convinced employers will pay hundreds of dollars directly to people they would like to interview — especially those not actively in the job market — because it will bring them better candidates faster.

So how does it work?

To get started, simply register, create a profile (which is similar to an online resume), and set an interview price. Your interview price is the price at which you’ll talk to prospective employers. Once you’ve created your profile, companies will search it and make you paid offers to interview if you have the skills and experience they’re looking for. Accept the offers you’re interested in, go to the interviews, and we’ll collect the money and transfer it to you.

It’s free to join, and you can even estimate how much you should ask for an interview with their calculator. For the type of professionals that they are targeting, I would actually say the price is about right. You’d still have to be careful about your current employer though, don’t want to ruffle any feathers. It’d be cool if this company merged with LinkedIn or something. Thanks to Stephen for the tip.

Filed Under: General //
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