It's Friday, so I thought you might like a bit of a lighter post today -- something cheery to get the weekend started in the right way. So I thought I would post some money commercials that I've found to be cute/entertaining throughout the years. (FYI, I'm not sure how the formatting on this will turn out -- it could be kind of sloppy based on how it looked in my blog software -- but I'm hopeful all the videos are at least included.)
We'll start with a couple pieces for a self-storage company. The first:
And here's its "sister" commercial:
I love the "you've become the mayor of Stuffville" part. :)
Next we move to a funny but oh-so-true situation many Americans find themselves in when it comes to debt:
This next commercial is probably familiar to most of you. It's the best IMO of a series talking about getting credit reports (which, by the way, is NOT the way to get them -- you do not need to buy them from this company when you can get them for free). But the commercial is still fun:
Next is a snappy commercial touting ways to turn assets into cash (which I don't know much about, but I'm guessing would not be a great deal):
Here's a cute one with a funny twist at the end:
This one is not really about money, but they do get something for free and there's a career angle. Plus, I love it, so here goes:
Of course there are the Geico "rhetorical questions" series. Here's a compilation (I LOVE the little piggy at the end):
And, of course, there's the king of all money "commercials", this skit from Saturday Night Live:
Enjoy!!!!
The following book excerpt is reprinted with permission from Emotional Currency: A Woman's Guide to Building a Healthy Relationship with Money. Copyright © 2011 by Kate Levinson, PhD, Celestial Arts, an imprint of Ten Speed Press, a division of the Crown Publishing Group, Berkeley, CA.
The ancient Greeks threw coins into their wells to keep them from going dry. Today, we toss coins into wells and fountains for good fortune.
If the palm of your right hand is itchy, money will come to you. But if you scratch it, the money won’t come. If your left palm is itchy, it means you will have to pay for something—so by all means scratch it!
When you give a wallet or purse to someone as a gift, placing money in it, even a penny, ensures that the recipient will never be without.
It is said that money attracts money, so never leave your pockets, purse, or wallet completely empty and never completely empty your bank account. Always keep at least a coin or two with you.
When you find money, even if it’s only a penny, it means you’ll receive more money soon. If you are walking in the street and you see a coin or a bill, always pick it up as it will attract more your way.
A bee landing on your hand indicates that wealth is on its way to you.
Naming a child Penny ensures that she will enjoy good fortune throughout her life.
Carrying a penny wrapped in brown paper will help you avoid your debtors.
Placing your handbag on the floor or on the ground guarantees that you will never have enough cash.
On her wedding day, a traditional bride would place a penny in her shoe to promote a prosperous life with her husband.
Writing with green ink whenever you can means profits will flow freely from your hand.
Unless you've been hiding under a rock for the past several weeks you know that today is the first day of the World Cup (which is the world championship of soccer tournament for those of your really out of it.) I thought I'd share with you some interesting facts about money and the World Cup (as well as a few other tidbits) as we celebrate the kick-off of this great competition. Here goes:
Fun Money Facts
Other Interesting Pieces
And if you're a newbie (or not so new and just want more information on the World Cup), here are some pieces you might be interested in:
So, who will be watching the World Cup? And who's your favorite? I like the US (of course) but they don't have much of a chance (though I do think they'll get out of the group stage) and England (most of the players I watch all year play for England), but if I was betting I'd go for either Spain or Brazil to take it all.
Here's a fun diversion for a Thursday -- Forbes' list of the richest fictional characters. Their top 10:
No. 1 Carlisle Cullen, Net Worth: $34.1 billion
No. 2 Scrooge McDuck, Net Worth: $33.5 billion
No. 3 Richie Rich, Net Worth: $11.5 billion
No. 4 Tony Stark, Net Worth: $8.8 billion
No. 5 Jed Clampett, Net Worth: $7.2 billion
No. 6 Adrian "Ozymandias" Veidt, Net Worth: $7 billion
No. 7 Bruce Wayne, Net Worth: $6.5 billion
No. 8 Tooth Fairy, Net Worth: $3.9 billion
No. 9 Thurston Howell III, Net Worth: $2.1 billion
No. 10 Sir Topham Hatt, Net Worth: $2 billion
A few comments:
Does the list look good to you? Anyone obviously missing?
Very funny, IMO.
I am probably the last person on earth to see this, but in case you haven't, I thought I'd share. Enjoy!
Hat tip: AllFinancialMatters
Is this really how mutual fund companies work? I wouldn't be surprised. :-)
A couple weeks ago I took a business trip in my car for a meeting. I drove 5 1/2 hours one way, had a two-hour meeting, then drove back 5 1/2 hours. It was a nice drive and I got to catch up on a lot of audio books I've wanted to read.
Part of the drive was on the Ohio Turnpike. At the end of each turnpike leg, I had to pay a toll. So I reached into my ash tray to pull out some change. It was jam-packed with all sorts of coins, and I sorted through them to get the correct amount I needed. On a later stop, I also looked in my coin tray which was also packed with all sorts of coins. Just like the ash tray, it was so full of a hodge podge that it was hard to find what I wanted. So I resolved to empty them both out a bit when I got home.
The next day I did just that -- emptied both the ash and coin trays completely. I put $25 in gold dollar coins in one, and a few quarters, dimes and nickels in the other. Now it's a lot easier to get the change out of both of them.
I counted the change I had dumped out of the two trays just out of curiosity to see how much I had. Coinstar says that the average household has $90 in change in different spots and since this is one of my two main sources of change (the other is our change jar inside our house), I figured it would be a good amount. Anyone want to guess how much it was? Ok, I'll tell you. The total amount I took out of may car was $28.83. Wow.
My wife put it in rolls in our change jar and we're now up to about $60 in coins there. I think we'll take it to the bank soon and deposit the proceeds.
BTW, we have $1,500 of the gold coins in "change" at home too. We probably need to take some of those to the bank as well.
How about you? Do any of you have big amounts of change around your house?
On Wednesday I asked you what your three money do-overs would be. Today, I'm talking about three money home runs -- steps we've all taken that have helped out our finances the most. I'll list mine and then you can do the same.
Here are my three money home runs:
1. My career. The #1 financial step in growing my net worth has been developing and growing my career. Going to grad school was a GREAT investment that got me an awesome first job. From there, I've worked hard to make the most of my career, and it's paid off financially.
2. Marrying my wife. My wife is a vital asset in two ways financially: she has a lot of wisdom when it comes to handling money and she can squeeze 25 cents out of a nickel. Since a key part of financial success is that both spouses need to be frugal (at least relative to income), marrying right was a huge home run for me financially.
3. Never falling for that "keep up with the Joneses" mentality. Sure, I like nice things and I have nice things. But I don't need a huge big screen TV, a new car every three years, a fancy (and expensive) vacation every few months, a house I can't afford and so on. I'm happy with the simpler things in life. Guess I have my parents to thank for that.
So, what about you? What have been the three money home runs in your life?
Your Money Relationship lists what he would do-over financially if a genie gave him three things to go back and change. I thought it would be fun to list my do-overs as well as ask for yours.
Here are the three things I'd do over financially:
1. I'd start saving/investing sooner. I didn't really start saving and investing heavily until a few years into our marriage and I probably lost four to five prime years of good returns. Ouch!
2. I'd start with index funds sooner. I wasted a few more years trying to buy and sell stocks on my own. I probably broke even, but I certainly didn't make anything (or at least much.)
3. I would have rented a bit before buying my first house (a condo.) I didn't know anything about real estate and was new to the city (Pittsburgh) and yet I plunged right in and bought a condo anyway. I took a fairly big loss on it since I ended up selling it two years later when I got married, and I would have been better off simply renting (it worked out for the best though as I attended a nearby church and met my wife there.) ;-)
So, what about you? What would be the three money-related steps you'd do over if you had the chance?
When I posted Facts on the Penny and Coins, one of the facts that stood out to me the most was this:
According to Coinstar there’s more than $10 billion in loose change hiding in homes across the U.S., which is roughly $90 per household!
Ok, I thought, if we all have extra change hanging around, where is it all? Luckily, I didn't have to think long because I soon ran into a post from NCN listing ten places to look when scrounging for change. Here's his list:
Then he adds a few suggestions from his readers as follows:
So to add my two cents (pun intended) to this conversation, I thought I'd list all the places I know we have change in our household. They are:
In my car's ashtray -- What else do you use a car's ashtray for?
I think that just about covers it. How about you? Where do you keep all your change?
Coinstar just sent me the following:
With today being Abraham Lincoln’s 200th birthday and the 100th anniversary of the Lincoln penny we thought we’d pass on some fun penny facts from Coinstar for you to share with your readers!
Fun Facts About Pennies & Coins:
According to a 2006 Coinstar study, almost two-thirds of Americans (63 percent) still feel the penny should be retained as an important symbol of American culture, history and the economy.
According to a Coinstar study, two-thirds (66%) of Americans say they tend to accumulate loose change. And of those who accumulate change, 32 percent say they are recycling or cashing in their change more now than a year ago.
Coinstar asked Americans which group of well-known figures beyond presidents they’d like to see on a U.S. coin. The poll revealed that more than 25 percent of Americans rank Notable Scientists and Inventors as their top choice.
According to the Coinstar National Currency Poll, 81 percent of Americans said that they don’t feel guilty about having change sitting around, not being put to use. However, 78 percent of poll respondents said they would make more of an effort to put coins back into circulation if they knew it would reduce environmental impacts.
The Lincoln cent was the first U.S. circulating coin to bear a president's image.
Forty-two percent of the change you get back every day is handed out in pennies.
A penny stays in circulation for 30 years.
It costs the U.S. government 1.2 cents to make a 1-cent penny.
According to Coinstar there’s more than $10 billion in loose change hiding in homes across the U.S., which is roughly $90 per household!
I live in west Michigan -- an area that was (at some point) founded/established by a large group of Dutch people. I never knew this until I moved here, but the Dutch (at least here) are "known" to be, well, let's say "frugal" (some would say "cheap"). I guess that's why I like them so much. ;-)
Then I run into this post fro Ramit where he says:
Because I’m Indian, I love Ross and TJ Maxx.
Ok, so what's that mean? Are Indians like the Dutch? Or does he mean they just like "good deals?" Or maybe they like shopping?
Then, of course, there are the various stereotypes about Jews -- they're good with money, they're all rich, they control the financial system, etc.
Anyway, when you think of it, it seems like there are a ton of money-related stereotypes. Have you heard of any other than the ones above? Or maybe you've heard something a bit different than the ones above? Share your thoughts in the comments below.
BTW, I'm not saying any of these are true, just saying that they are general stereotypes in our culture.
Probably no one interested in this but me, but since it's my blog, I'm going with it. :-)
Just found a couple pieces on what top chess champions earn for a big tournament win. Check out these:
Winning the world chess championship nets you about $1 million (FYI, losing it gets you the same.)
A blitz (speed) chess championship nets the winner only $70k.
Quite a difference, huh?
This piece got me to thinking about collecting and the costs associated with it.
In the past, I've collected and/or known people who have collected lots of items. For example:
This leads me to some questions for you regarding collecting and finances:
Should be an interesting discussion!
Ha! Here's a list of overpaid actors -- not a list anyone's excited to be on I bet! ;-)
...made me laugh -- especially as a potential home buyer.
Today in celebration of April Fools Day I'll be featuring some personal finance stories that are less-than-true (translation: they're made up), but offer a humorous take on some of the money issues we all face. The following is a guest post from FMF reader, and humor writer extraordinaire, Kev at Special Kind of Stupid.
Worried you will not have enough money for retirement? Your worry may be unnecessary. In a recently released study, researchers at The SKOS Institute predict money will have no real value by the time many of us reach retirement age.
“What most people do not realize is society in the future will be very different than it is today,” remarked Gene Shallot, who was the lead researcher in the study.
“The balance in your bank account isn’t going to matter. Your being able to balance finding food and shelter, and avoiding those d*mn, dirty apes is what will matter.”
After seven years of intense research, Shallot and his colleagues formulated a series of scenarios for the future of mankind. In each, money did not play a significant role in a healthy retirement.
“A world ruled by evil, talking ape overlords was one scenario,” noted researcher Roger Ebert. “Another scenario involves the polar ice caps melting and most of the Earth being underwater. Another is a post-apocalyptic America without a government.
“In that one, the hope of mankind will rest on the shoulders of an unlikely hero carrying a bag of mail, who will look a lot like Kevin Costner.”
What role, if any, money will play in the future depends on the scenario.
“If we’re talking about a future where the earth is underwater, paper will be very hard to come by,” said Shallot. “In that scenario, money will have all sorts of handy uses.
“But otherwise, all money will really be good for is kindling for fire and giving apes paper cuts.”
Ultimately, the Institute concluded the key to a healthy, long retirement is diversification. The old adage, “don’t put all your eggs in one basket,” holds true even in a post-apocalyptic society.
“You need to plan for every possible outcome,” explained researcher Jay Sherman.
“If the Earth is going to be underwater, you need to learn how to swim. If you already know how to swim, begin saving dirt in airtight jars. Dirt will be very valuable in a water-filled society.
“To prepare for a future ruled by apes, go to the zoo every weekend and befriend the monkeys. Feed them bananas. You will be thankful to have them as allies when the apes eventually rise to power.
“And to prepare for a government-less America with a Postman in charge… well, I’m not exactly sure how you can prepare for that one. Buy stamps maybe?”
Today in celebration of April Fools Day I'll be featuring some personal finance stories that are less-than-true (translation: they're made up), but offer a humorous take on some of the money issues we all face. The following is a guest post from FMF reader, and humor writer extraordinaire, Kev at Special Kind of Stupid.
Jeff Valentine knows promotion. The owner of two extremely successful night clubs, Valentine has perfected the art of turning something without value into something the consumer cannot do without. His secret? Tell people they can’t have your product.
Looking for a new challenge, Valentine is now using his skills in the real estate market.
“Look, babe, the secret to success is being aloof,” said Valentine as he smacked loudly on chewing gum.
“You’ve got to make it seem like you have numerous options. If you’re on a date and you’re too anxious or needy, what happens? That’s right. She goes to the restroom and sneaks out the window!
“You’ve got to play it cool, my man. The same is true when you’re selling a house. You want people to want to buy your home? Make them think you think they’re not good enough.”
Valentine’s track record suggests he knows what he’s talking about. His first club, “Club You’re Not on the List,” was a wreck when he bought it.
There was no air conditioning, no lighting, and the east-facing wall had collapsed. Also, there wasn’t a ceiling. But instead of paying money to fix it up, Valentine put a velvet rope out front and hired a bouncer. The bouncer’s job? Don’t let anyone inside.
“I didn’t let anyone inside for the first six months,” Valentine said. “Before, people walked on the other side of the street just to avoid the club. But once they weren’t allowed to go to the club, those same people would stand in line for hours hoping to get inside.”
Valentine now uses that same strategy when selling real estate.
“I put up a ‘For Sale’ sign in the front yard and then have Bruno, my bouncer, stand right beside it,” explains Valentine. “Whenever someone comes up to look at the house, Bruno puts out his hand, looks down at the clipboard he’s holding, and says, ’sorry… you’re not on the list.’
“I don’t believe there’s actually anything written on the clipboard. You’d have to ask Bruno. I think one time he told me he wrote down his hopes and dreams on it or something.”
Turned away, the interested buyer usually calls his or her real estate agent to inquire about the property. The agent then calls Valentine, who after a few seconds will put the agent on hold and make himself a sandwich or go take a thirty-minute power nap. Any agent still on the line when Valentine returns, or any that calls back later, is easy prey.
“At that point, I got them. They’re like my toys. I play with them for my amusement. And then I sell them a house for 10% above asking price.”
Because he is a giver, Valentine has written a book to help real estate agents and home owners sell their properties. The book, “No You Cannot Buy This House,” costs $19.95 and is steadily moving up the best seller ranks.
Among the tips offered in the book:
Valentine is already at work on his next book. It is tentatively titled, “No You Cannot Buy This Book.”
He expects it to be an all-time best seller.
Today in celebration of April Fools Day I'll be featuring some personal finance stories that are less-than-true (translation: they're made up), but offer a humorous take on some of the money issues we all face. The following is a guest post from FMF reader, and humor writer extraordinaire, Kev at Special Kind of Stupid.
John Bogle, founder of Vanguard, has finally come clean on a practical joke he started over thirty years ago: index funds do not really exist.
“I got you guys good,” shouted Bogle during his morning press conference. “The look on all your faces is priceless!”
The idea of starting the Vanguard 500 fund, the very first index fund, in 1976 was made after Bogle and Warren Buffet made a friendly wager.
“Buffet bet me 500 smackers that he could punk the world better than I could,” exclaimed an exuberant Bogle as he sprayed champaign all over nearby reporters.
Warren Buffet’s practical joke was buying into GEICO and shutting it down, but making the rest of the world believe the insurance company was still up and running.
“He’s still at it too,” remarked Bogle. “Buffet doesn’t want to admit defeat. He’s got a GEICO commercial on television every ten seconds. I’m like, ‘dude… when are you going to tell those poor GEICO customers they don’t really have insurance?’”
Bogle’s scheme was a bit more subtle. He invented a new investment vehicle.
The idea behind index funds is to replicate the movements of a specific financial market, or to simply set rules of ownership that never waver.
However, in practice, Bogle, as he put it, “just made junk up.”
“I invested the money in whatever,” admitted Bogle. “One time I invested in cattle. Lost a bundle on that one. Their teeth fell out or something. I never really got a clear answer what happened.
“Another time I used some of the money to help produce a movie. A science fiction epic starring John Travolta? Well, it sounded like a good idea at the time. They told me he was going to dance in the film, so I figured it was a sure thing.”
Asked to explain how the Vanguard 500 and subsequent index funds at Vanguard have been so successful over the years, Bogle beamed with pride.
“That’s the beauty of it all. I invested most of the money in Buffet’s Berkshire Hathaway. That stock’s been so successful, no amount of rotting cow teeth or John Travolta could sink my portfolio. In fact, I usually had a surplus.
“I gave investors their 8% to 12% profit or whatever each year, and I pocketed the rest. It’s been awesome!”
When informed his revelations will likely result in charges of fraud, Bogle smiled.
“You’ll have to catch me first.”
Today in celebration of April Fools Day I'll be featuring some personal finance stories that are less-than-true (translation: they're made up), but offer a humorous take on some of the money issues we all face. The following is a guest post from FMF reader, and humor writer extraordinaire, Kev at Special Kind of Stupid.
On the heels of his plan to freeze interest rates on subprime mortgages for responsible homeowners who simply needed a helping hand, President Bush announced today he is ready to shift his attention to assisting the “stupid, irresponsible homeowners who knowingly bought houses they couldn’t possibly afford at variable interest rates only a slow-witted monkey would accept.”
If put into law, the plan, tentatively titled Operation: I’m With Stupid, would assign a government agent to every homeowner who fits the above criteria. The agent would assist the homeowner with cutting their food, walking their children to school, dressing them for work each day and other remedial tasks that are likely too much for the homeowner to handle alone.
“These people obviously need our help in areas beyond their ridiculous home mortgages,” Bush told reporters.
“How are they getting to work each day? Are they driving themselves? That’s a scary thought. And who buys their groceries? Who helps them calculate tips at restaurants? Who stops them from running around in open fields with aluminum baseball bats in the middle of lightning storms?”
The plan is not without its critics.
“Why are our tax dollars being spent helping these people,” asked Omaha resident and homeowner Shelly Anderson. “They got themselves into this subprime mortgage mess. They should have to pay the consequences.”
Delaware resident and homeowner Clive Johnson agreed.
“The government shouldn’t reward those who make bad choices. It penalizes those of us who have done things the right, smart way.”
When informed this plan would, among other things, prevent these homeowners from driving, holding up lines at grocery stores, malls and banks, and reproducing, Anderson and Johnson changed their tunes.
“This is the best idea I have ever heard,” remarked Anderson. “You have restored my faith in the government,” replied Johnson.
To those who believe this plan is simply a band-aid approach to a much larger issue, Bush sympathizes.
“Look, if it were possible to round up all these people, put them in a rocket and send them to the moon, we’d do it. Unfortunately, NASA hasn’t invented a rocket big enough. This is the next best option.
“We can’t make these people any smarter, but we can have a government agent watching their every move. If they try to stick a fork in an electric socket, our agent will be there to stop them. If they try to rent a Paris Hilton movie at the video store, our agent will be there to take the movie out of their hands.
“And if they try to buy another home with a variable-rate mortgage that would comprise over 80% of their gross salary, our agent will be there with a rolled-up newspaper to hit them over the head and firmly say, ‘NO.’”
Want to play a little word association? You know, I name a term (money related in this case) and you say the first word(s) that pops into your mind. Here are some words/names/phrases to play with:
If you want to leave your results below, go ahead and do so now (before you look at my responses.)
Here's what I came up with for each of the terms above:
So, what do those responses tell you about me? ;-)
As he says, some of you may not find this funny. To say the least, it's an interesting perspective on a hot topic.
I recently received a newsletter from a friend and it contained some funny sayings about taxes that I thought many of you would enjoy. Here they are:
Here's a fun piece from Money Central on what the super-rich are giving as gifts this holiday season (from the Neiman Marcus catalog). The highlights:
Isn't there a saying about some people having more money than they know what to do with?
I can't imagine buying ANY of these, even if I was super rich. Now a $10,000 road bicycle, that's a different story. ;-)
This should be a fun post.
The other day while I was reviewing The Celebrity 100 (Forbes' annual list of the most powerful celebrities), I started thinking about the celebrities I've met in my lifetime. I thought it would be fun to share them with you. Then you could tell everyone (in the comments below or on your blog if you have one) what famous people you've met. Kind of a fun way to break up the money-talk, huh?
Before I developed my list, I had to set some criteria. I decided to limit my list to famous people that I'd actually met -- spoken to, shaken hands with etc. I did NOT include special events I attended (for example, I was at the welcoming ceremony for the Chinese leader when he visited President Reagan -- I was part of a group of 200 people or so who got to see him pull up, get out, greet Reagan, etc. at the White House -- I had special security clearance -- but since I didn't meet anyone personally there, I'm not including it). So here's a list of who I HAVE met personally and a few details behind the meeting:
I'm probably forgetting one or two, but that's a good list to start huh?
Now, how about you? What famous people have you met? Tell us your story in the comments below.
OK, stick with me on this one.
Here's a study that says chocolate may boost brain power. Details:
"Chocolate contains many substances that act as stimulants, such as theobromine, phenethylamine, and caffeine," Dr. Bryan Raudenbush from Wheeling Jesuit University in West Virginia noted in comments to Reuters Health.
"These substances by themselves have previously been found to increase alertness and attention and what we have found is that by consuming chocolate you can get the stimulating effects, which then lead to increased mental performance."
And since chocolate boosts your brain power, it will make you smarter, right?
And we know that smarter people live longer, are in better health and are better off financially.
Here I've been trying to do it the hard way all along and work at growing my net worth myself when all I had to do was eat more chocolate! ;-)
You now have permission to eat all the Moose Tracks ice cream you want. Seems to me like it will make you healthier and wealthier. ;-)
This is a "joke post" if there ever was one. Especially for me -- someone who believes most people can get rich but you need to do so over time. Anyway, here's a list of four ways to get rich quick with no work from Smart Money:
Of all of these options, I think "marry rich" has the best chance of working. Or, maybe just "get married" is fine -- because we all know that marrying for money actually works. ;-)
Here's a cute piece I found on Yahoo titled 9 weirdest tax write-offs. It details the stories of people who tried to take, well, let's just say "very unusual" tax deductions. My two personal favorites:
If you want a few laughs, or at least a smile or two, check these out today.
Here's a piece from Money Central that tells what most people do when they get a raise: they spend more. It also suggests what you should consider instead -- how you should best spend a raise. The piece rambles a bit, but when you sift through it, they suggest the following ways to spend a raise:
The author then goes on to detail how the group of women she's been following doesn't do much of any of these -- they simply spend more. ;-)
Here are my thoughts on six great ways to spend a raise:
2. Fully fund your 401k -- at least to the point where you get the entire employer match.
3. Pay off debt -- especially credit card debt.
4. Sock some away for college.
5. Splurge some!
6. Give.
How about you -- what do you with your raises? How does that differ from what you actually do?
Remember camp in the summers of your childhood? The fun, the friends, the mosquitoes, the broken bones. Ahhhh, those were the days! ;-)
I don't know why it surprises me, but there are camps for adults (probably a ba-zillion of them, though we're only going to cover a few). This piece from Kiplinger's highlights a few including:
Well, I guess whatever floats your boat. But none of these really appealed to me, so I did a Google search on "adult camps" and found Grown Up Camps. They have a TON of camps (mostly sports-related) that I'd like to attend. I'm sure I could find more, but I only have so much time to poke around looking for "adult camps." ;-)
So, how does this post deal with money? It gives you a list of new things you might want to splurge on. ;-) (Be sure to read the comments on this post -- lots of interesting ones. And if you haven't posted yet on what you splurge on, add yours to the list.)
Here's a fun piece I found at yahoo about how billionaires travel. I know there are probably zero billionaires reading this blog, but we're all billionaire wannabes, aren't we? :-)
Well take a look into your future, here are some of the exciting perks you'll get when you're a billionaire traveler:
Being ultra-wealthy not only enables billionaires to travel, stay and eat anywhere they please--within reason, of course--but more important, it allows them to do so with minimal hassles or discomfort. Theirs is a life full of limousines purring at the front door, helicopters ready to go on a moment's notice, private planes waiting on the tarmac, hotel managers rubbing their hands in anticipation and maitre d's hovering by the door.
Topping the list is a private plane -- the luxury that actually becomes a necessity when one is a billionaire. Bought, leased or fractional, jet or prop, because they are safer, faster and more reliable, private planes keep everyone happy--from family to clients and even shareholders.
Almost as useful is a little black card, weighing less than an ounce, that lets billionaires do just about anything. Cardholders must be invited to apply for the Centurion Card from American Express, and the company won't say how many cardholders there are or how they are chosen. Once signed up, subscribers pay an annual fee of $2,500 and have access to a dedicated personal concierge as well as a travel agent, private-jet charter program, chauffeured limo service and international emergency health care. They can also get tickets to "By Invitation Only" events, like seats onstage at a recent Rolling Stones concert, which cost $5,800 per pair.
Fischer [exclusive travel agent] can arrange once-in-a-lifetime experiences, like meals cooked personally by celebrity chef Jean-Georges Vongerichten or golf lessons with pros like Tiger Woods.
Notice that the Stones concert tickets discussed above were ONSTAGE tickets. How cool would that be?
Well, once this blog hits the big time, I'm ready to get my Centurion Card, grab a private flight and see if Tiger's up for 18. Yeah, right. Knowing me, I'd just save the money for a rainy day. ;-)
But let's dream a bit -- what would you do if you became wealthy? Let's not say you're extremely wealthy (link a couple billion) but just semi-wealthy (like $50 million or so). How would your life be different? What would you do for yourself, your family, your friends?
Those of you who regularly read Free Money Finance know how frequently I write about saving money. It's saving money this, saving money that, and saving money all around. In fact, my most posted to category here at Free Money Finance is, you guessed it, saving money.
Well with this post, I'm going to take a totally different direction. After all, if all we do is save, save, save, there's no room for fun in life. You can't save on everything, all the time. If you did, you'd be wealthy -- but you'd also be really, really bored.
All of my savings tips are meant to provide options. Options that you can choose to apply or ignore. But the idea is that you'll apply many of them, which will allow you to save money for retirement, to pay down debt, fund your kids' education, etc. as well as have some left over to have some fun with.
That's what I want to talk about today -- what you and I spend "fun money" on. Specifically, I want to know what you splurge on. What do you spend money on that makes all that saving worth it? What little (or big!) things do you splurge on to make life fun and interesting?
I was thinking of this topic the other day as I was taking my bicycle into the shop. I thought about how I'd spent about $1,500 last year on a new Trek bike, bike rack for my SUV, specialized bike clothes, hydration packs, nutritional bars, maintenance equipment and on and on. All of this stuff is necessary when you ride like I do (around 4,000 miles last year), but it's certainly not a necessity of life. It's an area I splurge on because it makes life fun (and keeps me in shape).
Not only did I spend a lot last year, but I'm off to a fast start this year as well. I've already spent $200 on bike shoes and $150 on new pedals and cleats (so I can lock my shoes into the pedals -- it provides more pedaling power). I don't think I'll come close to what I spent last year (after all, I won't need a new bike or a bike rack), but I may need a few more semi-expensive items like new tires/wheels, heart rate monitor (the one I have is "ok", but not great), and a few more jerseys.
I also thought about what area my wife splurges on -- and I really couldn't think of any. (If you think I'm a saver, she's REALLY a saver.) In fact, I have to encourage, almost force, her to spend any money on herself. "Why do I need that?" she'll ask. Or, "What I already have works fine -- I don't need a new one." And heaven forbid I splurge on her. When we were first married, I brought home flowers for her and she immediately asked, "How much did those cost?" (in a kind but firm way -- I now grow my own roses because you can get dozens of roses out of a live plant for the cost of half a dozen at the florist). My wife even has clothes she's worn forever. One pair of jeans she's had since she was in college 20 years ago. The benefit for me (other than the low cost of her clothing) is that she can still fit into jeans she wore in college. ;-)
But every once in awhile, she'll crack and then I can really treat her. I took her to Russia with me this past fall and she had a blast. My company paid my way and she came along for just the cost of a flight and some document fees. We're doing the same thing this fall -- except it's a cruise this time. But other than that, she won't splurge at all. And it's one of the main reasons our net worth has climbed so rapidly (just as it was noted in the Millionaire Next Door -- not to mention that just being married itself leads to a better net worth).
So, I've rambled on long enough -- now it's your turn -- what do you splurge on? Come on, come clean, we're all friends here. We won't make too much fun of you. ;-)
Here's a piece from H&R Block and their National Tax Advice Day on the most unusual tax deductions ever:
Every year, taxpayers test the limits of the Internal Revenue Service (IRS). Scrap yard owners deducting cat food? Clowns deducting travel expenses? How about a deduction for your hot tub as a medical expense? H&R Block, after 50 years and more than 400 million tax returns, has scoured the archives and compiled a list of the most outlandish deductions ever submitted to the IRS.
Did a bold pro bodybuilder get the green light to deduct high protein buffalo meat as a business expense? Was a wily exotic dancer allowed to deduct her size 56 FF breast implants? Read on to get the answers to these and other bizarre tax-related questions.
You won't believe some of the deductions that were actually approved by the IRS! But remember, it's always better to be safe than sorry. When in doubt, always consult a tax professional about questionable deductions.
Better Luck Next Time
You can't blame these folks for trying but the IRS gave them a swift smack-down when attempting to deduct the following "medical expenses":
No one can accuse the following business professionals of lacking creativity. Unfortunately, the IRS didn't agree with their perspectives on "business expenses":
Unbelievable, but Approved
The following tax-paying citizens prove that reality is a state of mind. While their tax deductions might make you do a double-take, the IRS actually approved their daring medical expenses:
A certain multi-millionaire might want to consider casting the following business-savvy tax payers in one of his TV shows. They convinced the IRS to accept their bizarre but valid business deductions hook, line, and sinker.
There's a "series" going around where personal finance bloggers are posting what's in their wallets. (see AllThingsFinancial, Consumerism Commentary, and Stop Buying Crap for examples). It's a bit of fun (especially compared to our usually serious money-talk pieces), and I thought I'd join in.
However, I don't carry a wallet. I carry a metal (yeah, great for airport security checks, I know) combo money clip/card holder that fits nicely in my front left pocket. Here's what it currently holds:
That's it. Quite an assortment, huh? I'll enter the receipts into Quicken tonight and file/trash them, but the rest of the stuff is always with me.
What's in your wallet? Leave a comment below or post on your own blog and leave a link via comments or trackback.
Here's part 2 of a very fun article from CareerBuilder.com on the top ten most fun jobs available:
Job: Proposition Player
It's fun because: Poker night with the guys or gals is just another day at the office. Employed as regular casino employees, "props" start games, fill chairs when the tables get short and keep the action moving. Best of all, they get to keep all their winnings.
The not-so-fun side: Props don't get to pick and choose their own games, gamble with their own money, and do not get reimbursed for their losses.
The payoff: An article in Los Angeles CityBeat reports that prop players cash in at up to $30 an hour (the average salary of most regular casino workers) and get health benefits in return for a regular working week.
Here's the problem with this job: they "do not get reimbursed for their losses." I could lose MUCH more than $30 per hour. This sounds like a money-losing job to me -- and hence not that much "fun."
Free Money Finance recommends Emigrant Direct.
Here's a very fun article from CareerBuilder.com on the top ten most fun jobs available. We're going to be covering these one-by-one so we can prolong the fun. ;-)
Here's part 1:
Job: Hollywood Wardrobe Stylist
It's fun because: The world is your closet. You get to shop for a living, pick out clothes and accessories for film studios or individual artists, and spend someone else's money. It's the ultimate form of retail therapy.
The not-so-fun side: Because the job is freelance, there's no job security, wardrobe stylists can go for weeks between gigs, and they aren't always entitled to benefits like health insurance and retirement.
The payoff: According to Salary.com, day rates for one job can range from $600 to $1000.
Wow! So this job is not only fun, but it can help you ring up some serious cash!!!!
Let's say you earn the mid-point $800 per day. Assuming 250 working days in a year, that's $200,000! Even if you work only half the year, that's still $100,000.
In addition, you may get to meet a STAR or two! Oooooooooooohhhhhhhhh!
This job is getting more and more fun the more I think about it! (except for the no benefits and going weeks without work parts) ;-)
Free Money Finance recommends Emigrant Direct.
Here's a piece from Yahoo that covers a bit of the new book Dave Barry's Money Secrets. I wanted to share some of Dave's funny takes on money -- they're perfect for a Friday post. Here are a couple good quotes:
Here's a tax-saving opportunity few taxpayers take advantage of: Instead of simply writing your name, write your name plus the word DECEASED.
The gross national product is several trillion dollars, of which one-third is sent to the government in the form of taxes for the express purpose of being wasted. Another third goes directly to Bill Gates. The remaining third is divided up into wages and prices, which go up and sometimes, in the case of wages, down, in response to the law of supply and demand, which states that if there are fewer than two outs with runners on first and second base ... no, sorry, that's the infield-fly rule.
Cute. If you're looking for some lighter, money-related reading Dave Barry's Money Secrets might be just what you're looking for.
Here's part 5 of a series from Money magazine that lists their 10 New Years Money Resolutions:
Resolution 5: Spring for a splurge
Everyone deserves an occasional indulgence. What's more, says April Benson, a psychologist who specializes in compulsive shoppers, "if you deprive yourself too much, you're set up for future binges." In other words, rewarding yourself with a planned purchase now helps stop you from blowing your budget with impulse buys later.
1. Pick the prize.
2. Make it real.
3. Create your game plan.
4. Stay on track.
5. Buy it.
My thoughts:
I'm more of the "buck up" sort of guy, so this isn't my favorite resolution, but I understand how those with money challenges need this. Just don't let it get out of control. I have a family member who makes a habit of rewarding herself and never makes any progress financially as a result. Too much of a good thing is not good for your finances.
That said, saving up for a special purchase is a good idea. We just did this and went to the Great Wolf Lodge. It wasn't money-related (it was a reward to our kids for doing well in school), but it could have been. Anyway, since we'd been there before, our kids were highly motivated to do well and they did everything they could to earn the trip. ;-)
As you might imagine, I'm not a big fan of the lottery. Talk about wasting your money. (FYI -- the average player nationwide spends $150 a year, according to the 1998 National Survey on Gambling. Some states have averages several times higher than that.) But if you consider it an "entertainment" expense (just like going to the movies) and get enjoyment from "just the chance to win", that's your prerogative.
But I do like unusual stories about money, and here's one from Money Central that just so happens to revolve around the lottery. It starts by asking some unusual lottery questions:
Would one more ticket improve our odds?
Is there a better set of numbers to play?
Why do hotel maids and ditch-diggers always seem to win?
Then the piece goes on to reveal a lot of misconceptions about lotteries like:
Statement: Maids and ditch-diggers always seem to win.
False. Consider already-affluent Jack Whitaker of West Virginia, who won a $314.9 million Powerball jackpot -- still the largest single U.S. lottery payoff -- on Christmas Day 2002. In fact, lottery officials in several states say big jackpots tend to bring out a more affluent crowd. But studies show that the heaviest lottery players -- the 20% of players who contribute 82% of lottery revenue -- disproportionately are low-income, minority men who have less than a college education. That has fueled a vociferous anti-lottery movement. “It really is government undercutting what government’s role should be,” which is encouraging people in financial straits to be responsible with their money, says Tom Grey of the National Coalition Against Legalized Gambling.
Statement: You’ve got to play a lot to win.
False. Spending lots of money doesn’t always do much for your chances. For instance, the odds of winning the Mega Millions are 1 in 135,145,920. Buying two tickets bumps your odds only to 2 in 135,145,920.
Statement: A lottery ticket is your best shot at riches.
False. Sadly, this isn’t the no-brainer that it should be.
In a 1999 survey by the Consumer Federation of America and financial services firm Primerica, 40% of Americans with incomes between $25,000 and $35,000 -- and nearly one-half of respondents with an income of $15,000 to $25,000 -- thought winning the lottery would give them their retirement nest egg. Overall, 27% of respondents said that their best chance to gain $500,000 in their lifetime is via a sweepstakes or lottery win, the survey said.
Consider this: If you take that $150 a year and put it into a 401(k) or IRA at age 30, you’ll have $28,000 by age 65, assuming a reasonable 8% rate of return, says Jim Holtzman, an accountant and certified financial planner with Legend Financial Advisors, in Pittsburgh. That figure doesn't even consider the added boost of contributing to a plan in which a company matches contributions.
To save that $500,000 nest egg, you'd have to tuck away a little less than $100 a month starting at age 21. What's more likely: that you can find an extra $100 a month -- or that the 1-in-several-million odds of even the smallest seven-figure jackpot suddenly tilt in your favor?
Then they come to the conclusion that I made (sort of) at the top of this piece:
In short, there are two golden rules, say those who have studied lottery players: Play only if you can afford it, and play only for fun.
“If you’re playing because you think you’re gonna get rich, then don’t play,” says Don Feeney, research director for the Minnesota State Lottery.
The article admits that you can’t noticeably improve your odds at winning a lottery, but there are some things to be aware of before you do buy:
Know the odds. Many people are surprised to learn that the odds in the big lotteries don’t change when the number of ticket-buyers surges. Your odds of winning huge in the Powerball are 1 in 120,526,770 no matter how many people play. Likewise, the Mega Millions odds remain 1 in 135,145,920. The lesson: If you’re going to throw away $5 on lottery tickets, you might want to wait until the jackpot climbs to $200 million from $10 million (although either win would be nice). One downside: A bigger jackpot means more people playing and a higher probability of having to share the prize.
Be random. “The only thing you can do, really, to give yourself a slight edge -- and I’m saying really slight here -- is that you don’t want to play numbers that are frequently played by other people,” says Don Catlin, a retired mathematics professor, author of "The Lottery Book: The Truth Behind the Numbers" and monthly math columnist for the online magazine Casino City. “I would guess that is numbers like 7, 11, 13, 19 (the first two numbers in everyone’s birth years). The reason for that is not because it’s going to increase the chance of hitting, but it will slightly increase the chance that you won’t have to share the jackpot.” Choosing birthdates also limits your options because days and months only go up to 31 and 12, respectively -- which increases your odds of having the same numbers as other players, says Feeney of the Minnesota State Lottery. The solution: Let the “Quick Pick” computer randomly generate your numbers.
Go ahead, scratch in public. “In just about every case, the scratch tickets are a better bet than the lottery,” Catlin says. Why? The lottery usually returns about half of the money to the players. By contrast, most states’ scratch games return close to 60% or more.
Beware the stale game. People often don’t realize that scratch games aren’t finished when someone wins the biggest prize; the tickets are left out until they’re all sold. That means you might be buying a ticket to a game in which there’s no chance for a juicy payday, says Chris Gudgeon, co-author of “Luck of the Draw: True-Life Tales of Lottery Winners and Losers.” Gudgeon’s advice: Avoid scratch games that have been lingering near the Slurpee machine for ages. “If you’re buying the scratch-and-wins, particularly the seasonal ones, don’t buy a Christmas one at the following Halloween,” he says. “There’s a very good chance that all of the prizes are gone.”
Watch for promotions. Rarely, a state lottery will offer promotions that are worth chasing. The goal, says Catlin, is to find a 2-for-1 deal (like a buy-one-get-one-free offer) in a game that returns more than 50% to the player. That doubles your return, to more than 100% -- which means you’ll make more, on average, than you invest. This strategy assumes, however, that you can play the game many times, so your outcomes can approach the long-term average.
If you do buy, here are some ways to protect your "investment":
Photocopy your ticket. Keep the original in a safe place, apart from the copy. Write your name on the ticket somewhere, with the words “ticket owner.” People have been awarded prizes by being able to prove that they indeed owned the destroyed ticket, says Catlin. If you buy tickets with a group of people, photocopy the tickets and give everyone a copy.
Legalize it. If you pool your tickets with others -- better coworkers than family members, says Gudgeon -- keep a written agreement signed by all participants describing any special arrangements in a safe place. Everyone should have a copy. Alter the agreement if the group changes, says Catlin. Rob Sanford, a certified financial planner, has another suggestion for groups of people who play often together: Form a legal partnership, using one of those computer legal programs, have a lawyer ensure that it’s appropriate. Then, get a Federal Employer Identification Number (FEIN) by filling out IRS form SS-4, which is available on TurboTax, and sending it in. Why? If you hit it big, the winners can each pay their taxes to the partnership. Complications (and extra gift taxes) can result when one group member claims the prize and then doles out the money.
Check the numbers. An estimated 12% of lottery prizes go unclaimed, according to the Multi-State Lottery Association. In 1998, someone forgot to claim a $34 million Lotto payout. Check your ticket.
Take candy from a baby. Beware when Grandma gives Junior a scratch ticket at Christmas. Minors aren’t supposed to buy lottery tickets or even play the lottery. The worst-case scenario: A million-dollar ticket could be rendered invalid if the minor shows up to claim the prize. That’s what would happen in Massachusetts, says Massachusetts State Lottery’s Amy Morris.
A lesser evil is that a big prize could be locked up for years. In British Columbia, if a minor is given a ticket and then shows up to claim the jackpot, the money would be retained by a public trustee until the child reaches age 19, says Alison Lester, a spokesperson for B.C. Lottery. How to avoid these problems: “Play it for him,” and claim any prize for Junior, too, says Gudgeon, a Canadian.
Now, isn't that just a bit more than you wanted to know about lotteries? ;-)
I found a site that tracks Bill Gates' net worth and it's loaded with fun facts about how much money he's got. Here are some of them:
Some fun stuff for a Sunday. Stop by the site for more. Enjoy!
Here's a fun post to help you dream a bit on a Friday.
Forbes has a story on the most expensive homes in the world. Here are the details:
"The most expensive homes in the world are, for the most part, pretty much what you would expect: opulent, private and capable of making the neighbors sick with jealousy. What is surprising, however, is that in some parts of the world, they can be relatively modest, and even a bargain. Forbes.com has compiled the first comprehensive list of the priciest residences on the planet—the top five per continent, excluding Antarctica, to be precise. We combed through thousands of property listings, compared hundreds of homes and contacted dozens of brokers and owners in our quest."
They then go on to show pictures of each "house" (I think "stadium" might be a better word). Stop by if you want to do a little dreaming this afternoon. :-)
Here's a post good for a few yuks on a Friday.
It's from USA Today and tells about Amy Borkowsky's new book, Statements: True Tales of Life, Love, and Credit Card Bills. Borkowsky is a comic who's writing about personal finances (Now there's a change. I've been called a clown, but I've never heard of a comic writing about money.) Here are some tidbits from the book:
The lust to accumulate enough airline miles for free round-trip tickets is what sets her free to present her plastic for a $6.22 pair of panties from Victoria's Secret and $2,988 for a powder-pink leather couch. Dining out is a colossal chunk of her monthly spending, from take-out Chinese cuisine to posh dinners at Tavern on the Green. She dives for checks: Technically, she's treating her friends to dinner at hip New York restaurants. But they hand her the cash for their share, and she pockets the miles. "I charged enough group meals to earn the title of 1995 Northeast Division Check Diving Champion," she writes.
Her dealings with men and money are amusing. She's convinced that spending $3.75 to have chicken soup delivered to an ailing boyfriend was enough to scare him away. Stereo shopping with an audiophile boyfriend is sublimely ridiculous. Borkowsky slides her Amex to the tune of $3,212.10. The next day, she calls and cancels it. He's "shell shocked."
Her chapter, "The Cost of Children" is sure to bring a smile to anyone without kids. "It seems like every other year or so, the newsmagazines run a cover story on how much parents will need to raise a child," she writes. "So far as I know, nobody has published a study about how much you'll have to shell out once your friends start having kids." Then she reveals a list of what she has spent on gifts for her married friends' children. For example: Bloomingdales, $19.49, newborn apparel; Macy's, $31.39, toddlers wear; FAO Schwarz, $34.64, toys/hobbies/games. "What I resent are the friends I haven't spoken to in years who send out announcements that seem to be official requests for gifts," she snips. Yep.
Hope this brightens up your day a bit and gets you ready for a great weekend. ;-)
Here's something hard to believe from News of the Weird:
"In June, Co-President Stephen S. Crawford of the financial giant Morgan Stanley (who was installed in the job in order to ensure management "stability" during the company's currently shaky status with investors) signed a two-year contract at $16 million a year which allowed him, if he changed his mind, to resign and promptly collect all $32 million. A few days later, he resigned. The "stability" was needed at faltering Morgan Stanley because longtime CEO Philip J. Purcell had just been eased out, but his contract called for $113 million in severance pay. [New York Times, 7-11-05]"
Here's a quotation I found while surfing the web the other day that I thought you all would appreciate:
You cannot strengthen the weak by weakening the strong.
You cannot help small men by tearing down big men.
You cannot help the poor by destroying the rich.
You cannot lift the wage earner by pulling down the wage payer.
You cannot keep out of trouble by spending more than your income.
You cannot further the brotherhood of man by inciting class hatreds.
You cannot establish security on borrowed money.
You cannot build character and courage by taking away a man's initiative and independence.
You cannot help men permanently by doing for them what they could and should do for themselves.
William J. H. Boetcker, 1916 (often attributed to Lincoln)
Here's a fun, interesting post for a Friday (have you noticed that I like to keep Friday's "light"?)
Anyway, do you want to teach your kids about money in a fun way? Check out Educational Learning Games. They have lots of fun, learning games including several on how to handle and manage money.