I am not a financial whiz. If I were, you would not see my words on this blog, as I would be touring the world on a more-or-less permanent basis. I make a lot of mistakes with my money, thankfully most of them small ones (note to self at 18: don’t cash out that retirement plan your job made you get! You’ll regret it much later!).
Even though I consider myself only an average money manager in terms of ability, it still hurts my brain so much to read things like this. If you don’t feel like reading the article, let me summarize it for you:
1. Family lives in home that, due to whatever circumstances, is falling apart
2. TV show comes in and saves the day by giving family a COMPLETELY FREE home, along with LOTS OF CASH.
3. Family decides that best way to use this newfound stroke of luck is to take out a $450,000 loan on the FREE HOME to pay for a “construction business.”
4. Three years later, family is in foreclosure on the FREE HOME.
Now, let me just get on my soapbox. I know I’m not a money whiz. However, common sense is really not common when it comes to money these days. Let me just spell it out for those who would follow in the footsteps of this family:
- If your house is paid for, and you decide you want to start a business, your house does not then become a magic ATM. If you take money out, you have to be able to put the money back in–and the banks won’t wait for you to hit that lucky 7. Want to start a business? Save cash, take out a regular small business loan, or sell your house and downsize–use the money from the sale that you don’t use on the smaller home for the business.
- If someone gives you a free large house and a lot of money, and you’ve never had either of these things before, consult someone that does know what they’re doing. Not me. Not any blogger out there. Talk to a person that has a business card that says “Financial Planner” and has a lot of certifications on it. Do some research and get a person that doesn’t charge you an arm and a leg to make your money work for you.
- If you can’t or aren’t willing to do any of the above with your free/paid-for home and extra cash, then give it to me. I promise to do a better job with it.
Posted in Life of K
Next week, I will be hosting the Make-it-From-Scratch Carnival on my other blog, <a href=”http://novelexperiences.blogspot.com”>Novel Experiences</a>. If you have a great posts that details something that you made from scratch, please <a href=”http://blogcarnival.com/bc/submit_1123.html”>submit!</a> This is a great carnival and the entries are always so inspiring. I’ll post a link here as well when it goes up.
Spouse works full-time and goes to school. I take care of all his textbook purchases and such, because left to his own devices he would just go to the school bookstore while I, the Pennywise Librarian, will scour the entire internets to get the best penny-saving deal.
That is what I found myself doing yesterday, when I found this site. It was as if the heavens had opened. Chegg.com lets you rent your textbooks!!! What a fantastic idea! No more paying way more than you wanted to, only to later be stuck with a book that you can only sell for a quarter. I was quite excited. They don’t have everything, but they have enough to make a major impact on our book-buying budget.
Now, I haven’t used their service yet, so I can’t officially recommend them, but I can at least spread the word and save other starving college students some cash.
Good morning! And what a morning it is. Personally, I stayed up too late last night watching DVDs of Buffy the Vampire Slayer and so my creative energies this morning are only up to sharing the fruits of others. Hence, I guide you to these great carnivals, both of which were kind enough to include our small efforts in the blogosphere:
First, the Carnival of Debt Reduction which included my post on how I need to have more self-control. This carnival is hosted at Destroy Debt which, holy cow, I’ve never come across before but it looks like a great resource. I’m particularly excited by the articles in this week’s carnival, as there are a lot of really creative and helpful ideas out there.
Secondly, my article on how much I paid for a People Magazine subscription was included in the massive Carnival of Personal Finance hosted at Greener Pastures. In this carnival as well, there are some awesome ideas. I can’t just pick a few favorites.
I’m honored that we were included in both blogs, and I hope you enjoy all the posts!
I am addicted to the local resale shoppe (it’s spelled shoppe – which apparently means it’s in a different league than the other consignment shop? i dunno). There are days that my car just magically turns into the parking lot. Must resist the pull of the wheel…but all red tags are 50% off…it is beyond my will power…and there is a parking spot RIGHT THERE!!!!
I live in a nouveau-riche community, the type with McMansions and an abnormally high number of those pet boutiques that sell diamond studded dog collars. (Somehow my 1970s Tudor style apartment complex and a shabby Amoco snuck into the mix)
Anyways, the resale stores in the area are teeming with beautiful clothing that I would never buy first-hand because they are so very far from my current buying power. And after reading “Not Buying It: My Year Without Shopping” by Judith Levine (next post will be a review) I like to think that I am reducing my ecological footprint by buying something that might be “new” for me, but did not have to be made from scratch. (Green Cotton describes it a bit better than I can…)
I find myself making purchases and muttering, “Ann Taylor, J. Jill, Liz Claiborne…you are such sluts. And you’ve seduced me!!!!!” I am a resale pimp, and I have a lovely wardrobe to show for it. 🙂 Hence, the $4.99 Ann Taylor skirt with the tags still on it:
W Magazine Article on Consignment Shopping
Can’t wait to hear about other people’s best finds…do tell…it’s the thrill of the hunt, you know!