Thursday, February 1, 2007

Rich Woman

I am almost ready to give my final review of the book.

So far I am deep into it. I like the style of writing, however I just finished chapter 19 & all I really know is that she has a really large group of old friends & that women can & should invest... She made her own money investing in realestate, more specifically rentals. This generates cashflow, which is good. She does address the "flipping" phenomenon by pointing out that once it is sold, what ever you made (or didn't) is it, where renting gives you monthly cash flow. There are formulas for determining what is a good buy, good cash flow, etc.

Being a landlord myself (1 property, our home) I can say that only having a couple of apartments is more work than profit. We were looking for income to offset our mortgage & taxes. Except our local taxes went up $1000 since we acquired the property & our rents are barely covering our escrow. I would like to invest in at least 1-2 more apartment buildings, we are just waiting for the right one in the right area at te right time :D.

Hopefully the next few chapters of the book will give a little bit of the "how", not like I expect a diagram or anything, but some direction would be nice.

Wednesday, January 31, 2007

If...

My Personal Finance Blog
asks If......you could turn back time, what would you have changed financially?


Well, I'd have to say that I would change a few thingsif I could go back knowing what I know now & knowing what to change to get the desired results.

(Hind site being 20/20 and all aside)

I would have definitely still signed up into "the MLM", I just would have been smarter about thinking for myself & not blindly spending money we didn't have to do things we didn't need to do. I would have operated it more as a casual business & spent less out of pocket for things that were not necessary. Maybe not even the MLM (it was just the first business idea offered to us as a couple), it gave us knowledge about business & how we are better off having one. So without our involvement in "the business" I don't think we'd have the ice cream shop or our corporation today.

So I would have saved tons of money not going to 4 major functions a year for 5 years = $6000 ( should be 8000 but I figured we would have gone to at least one a year, tax deductible vacation!). Tools savings =$3000, we would have not gotten standing order tape & bought our books used or from cheaper sources (I am aware of the current business tools issues & I can say that I knew everything coming out now, then & did it anyways, it just didn't seem so malicious then... DUH)

I would have graduated college, I wouldn't be doing what I started for, it would have taken an extra semester, but I'd have the diploma. I could have gotten a better paying job for the few years I did work & it would make going back to the workforce easier when the Princess starts school full time. Savings = $20,000+ interest. Because I would have had a higher paying job I could have paid down my student loans faster, instead of them still being unpaid-off today.

I would not have let dh talk me into getting my 401K disbursed under the hardship clause. Not my fault that he was unemployed & now I have 4 shares of GE stock in a Roth IRA...instead of the thousands $$ it would be if I had left them alone, I could have transferred them all to one fund.

I would have continued to use my credit responsibly, by only using them to get the rewards of cash back & paying them off monthly.

I would have kept control of our family finances even though I wasn't working. I let dh take over, because as he said I wasn't contributing. I have a better head for $ than he does, I am also better at being a realist. ~Can you believe he actually was going to book us an overnight for Valentine's Day & get tickets for a winery tour...I am not sure how we will pay the mortgage this month & he wants to go on vacation, grrr~ I really can see where money if the number one fight among couples (those that have it & those that don't, just different reasons to argue).

I think my ultimate I would have, is I would have waited to get married until I graduated college. We waited until he graduated thinking he could be working & I could finish school. It didn't happen that way & he has never let me forget it. Except he was the one that lost job after job (I think he went through 5 jobs in the first 2 years of marriage, with lengthy bouts of unemployment in between). So knowing what I know today I would have prepared myself better for our family's future. I think he was too insecure to go off by himself & find a place for his career, and at that time to insecure to let me go do what I needed to do to be where he wants me to be today (I didn't pick that route because I didn't want to have to work overseas & I would have 100% guaranteed)

Tuesday, January 30, 2007

Writing again...

Check out my recently published content on AC:What to Do in Chautauqua County, New York in February 2007

Festival of Frugality

Festival of Frugality #59

GO check it out, there are so many great posts there I'll be here all day reading them!

Monday, January 29, 2007

Tackle it Tuesday

Tackle It Tuesday Meme



My Tackle it for today is going to be:

To tackle the pile on my desk in the office.
I started to get it cleared off, then all of the sudden everything that needed filing, or a new home just got piled up there. It's not that I am against piles, but I'd like a place to be able to sit & write something!!!!

So my Tackle it of this Tuesday is to get half of the desk cleared off completely.



Before:



Look I see Desk top:


After:




I only have a couple boxes of things to put away left on the desk (game pieces, toys & some recipes I had by the computer)


Finished product, I think I can consider this tackled!!!



The Ultimate Blog Party

Ultimate Blog Party

Get Ready cuz it's gonna be off the hook!!!

Valentine's Day Swap




Sign up before Jan31st to participate!

Questionnaire:

What is your idea of a romantic Valentine’s Day?
Overnight at the hotel we had our wedding at, with champagne brunch in the AM.

In reality, what is your Valentine’s Day really like?
Lucky if we get out to dinner at Applebee's without children.

If you could have a lifetime supply of your favorite sweet indulgence, what would it be?
My homemade truffles (without me having to make them)

Is there any sweet treat you absolutely do not like?
I do not think so, unless you count the new extreme sour stuff (yuck)

If you fell into a pool of chocolate, how would you get out?
I'm sure eventually I would eat my way out, after all it is a pool, not a never ending supply!

January goal update

1. Kids money - We have decided on our method of distribution & recording, now I have to get the system set up so they are putting their money into the proper jars for saving/spending/giving. Pay day is Friday so well deal with that then!

2. Save money - I put my $ into a saving account $45, The kids we haven't done yet, I still need to get to fill in the forms & go to their bank & get the initial $50 deposits out.

3. Exercise & eat right - We didn't walk much this month, but I have remained active, shoveling snow is great exercise! I don't think we ate out or ordered out nearly as much as usual. And one time I went to McDs was with my Dad (he paid & it was breakfast which I split with the Princess).

4. Clothes that fit: well, I made some headbands!!! I really need to get down to the sewing room & start altering some of my clothes, maybe this week it won't be so cold down there!

5. Managing my time better - I find I am spending about 4 hours a day on the computer. It may seem like a lot, but I am constantly fighting distractions, getting up to do laundry, get snacks, change channels on the TV, or attending a tea party or picnic! I have started making lists of things I need to do but didn't get to the first time I sit down, so the next time I'm not starting from scratch. I have also started writing on our other computer & just saving it to the notebook, then I can add it to whatever blog or publisher I need to when I can get back into the office.

6. Potty training & bed training - So I bought "Cars" pullups thinking that she wouldn't want to get Lightning all wet, BIG MISTAKE, now she changes them constantly, but isn't keeping them dry.... And sleepng in her bed, I think I might buy one of those "real life" dolls so she will have someone elses hair to pull all night. (kidding, really I am)

7. Emergency Kit - I have the tote, 4 blankets, and am starting to add clothes this week.

8. Routine - I am getting to where things are routine again, just not necessarily what I want to be routine...my computer time is routine, laundry, cleaning the bathroom, etc. but the living room is a mess & my hot spot fire drills have all but disappeared, where did my shiny sink go??? (www.flylady.net)

Why the rich get richer???

From Robert Kiyosaki Why the Rich Get Richer



"Fight Debt with Debt


Whenever anyone asks me how to solve the credit card problem, I tell them to fight fire with fire -- and debt with debt. The way I solve my increasing needs for cash is to go deeper into debt -- good debt, not bad debt.

For example, I use debt -- which is essentially tax-free money -- to invest in real estate, which in turn increases my cash flow. Not only do I not pay taxes on my debt, I could also pay no taxes (or very little in taxes) on the income from the debt. Hence I earn more but pay less in taxes.

Obviously, in order to do this you need to know how to use debt wisely and responsibly, and must be able to find great investments that increase cash flow."


Ok, I get how this works, I understand the principle, however I am lost as to how to begin!!! We have looked into traditional mortgages, hard money lenders, etc. We live in NY which is apparently opposed to anyone else making any money here, they have capped the amount of interest that can be collected on a hard money loan, therefore it is unattractive to lend money here (they could get almost twice the interest rates elsewhere...). Not that I am about paying interest I just don't have the capital to start.

Sure, if I could be homeless & not putting any money into utilities, expenses, maintenance, etc. I'd have a lot more a month left in the bank account. Of course there wouldn't be a pay check, cuz I'm pretty sure dh wouldn't be able to work (unless we invaded McDonalds & used their wi-fi...hmmm. That may not be viable with 2 kids though...) So we wouldn't have a paycheck from that either. We are trying to grow our existing ice cream shop (we lost our 1st store due to loss of lease. New owner wanted something more compatible with a photo studio) Our 2nd store had a terrible start last year, high gas prices kept people home. So we are hoping our 3rd year in business will turn us around. Of course we are much smarter now than when we started :D. (~hehehehehe~)

I guess there can't be a cut & dry answer here, if it were easy everyone would do it, right?

Saturday, January 27, 2007

Tag Sale Tales Blog



I am a huge fan of tag sales/yard sales/rummage sales what ever you call them. I do find that I am limited in the amount of time I can spend on them though now that we have started the ice cream shop (my summers are just a tad busy). I miss them, and my Mom & Sister & I are usually itching to get to one starting about March!

I have gotten some great things at tag sales, my sis got the best score, a writing desk. She has gotten a ton of use out of it. I usually stock up on clothes for the kiddos, but I haven't been doing as well lately, since I haven't been able to get to any good kids sales.

My best finds... not sure, I would have to say the milk glass vase collection I have, I don't think I've ever paid more than $1 for any piece!

Dh's best find...5 tables for the ice cream shop for $25. We had to paint the bases & re-attach the tops.

Writing Contest up at Owlhaven

I am or I am From

I put mine up over at Sew What's Up?

Wednesday, January 24, 2007

My Very Very Best Frugal Tip:

Ok, I want in too. Now I just have to think of the best tip possible...

Ok, it would have to be recycling clothing into something else.

A) Cut the fabric into squares, sew together & make blankets
B) Use the fabric to cut out patterns for childrens clothes. (I got 2 jumpers for DD out of a pair of dh's old pants)
C) Use pockets from old jeans to create a storage unit, just sew onto larger piece of fabric (like a store bought pocket wall hanger) you can hang using a dowel, wood strip, reinforce with cardboard
D) Old Socks make great dust rags
E) Old flannel can be used to make "swiffer" covers
F) Old sweaters can be turned into pillows, gloves, hats.
G) I use old clothes I don't have another use for to sew hanger covers for my plastic hangers (How to Sew Hanger Covers)
H) There are other no sew uses as well, pantyhose has enough uses for it's own tip!!!

You can veiw the other submitted tips at Frugal For Life

Goals 2007 - Organizing Update

On the organizing front:

~ I have flung 250 pounds worth of stuff, old hangers from kids clothes, broken toys, ripped books, catalogs, magazines, old papers in the file drawers, hole-y socks & underwear. (super fling boogie is on over at www.flylady.net)

~ I winterized the Prince's windows & rearranged his room, he & Dad built a barn for his tractor collection, so I cut back his wheeled toy collection to fit in it (it is still quite large), fixed his closet, so we can hang clothes again, sorted all toys into bins by category, sorted through his old school papers so we are only keeping a few from each year, put all clothes that don't fit anymore into sell/toss/recycle piles. Still need to finish the corner by the closet, go through more school papers, move bed now that he started sleeping in the top bunk, we can put the trundle away.

~ In the MBR I cleared off the dresser, tossed anything that was garbage, started a donation box for anything I don't want anymore, cleared out under the bed. Still need to run new outlet so we can eliminate the miles of extension cords to the lamp on the dresser, find a way to move most of the clothes out of the large dresser, so we can get rid of it (we'd like to replace it with something more stylish/appropriate), sew a curtain to cover the nook we turned into closet space.

~ In the pantry I cleared off the dryer, moved the laundry sorter, tossed a couple of old food items (ok, so the cake mix I got from my Grandma was dated 1999, ewwww, don't know how I missed that), regrouped like items (they tend to wander when more than one person is putting things away), put more infrequently used items into long term storage (the upper cabinets, where I need a ladder to get to), grouped the painting supplies & paint under the sink, restocked the tool box with the basic tools (hammer, screwdrivers, pliers, tape measure) that were found all over the place. Still need to finish clearing floor, wash blankets, vacuum, put more stuff in long term storage. We want to be able to put down some new flooring this spring (right now it is carpet, not really my first choice for a laundry room (or kitchen, or bathroom, but that is what we got with the Money Pit.

~ In the dressing room (off bathroom, more like overgrown closet), we took the mirror doors off, took out the tracks, put shoes on shoe rack, moved my purse & gym bag to a shelf in the closet, they were on a hook in the kitchen, designated a shelf for folded towels, tossed anything old that wouldn't or couldn't be used, old catalogs, magazines from bathroom, outdated cosmetics & medicines. Still need to clear up floor in closet, find home for stuff, replace flooring (we ripped out carpet to look for crawl space door.

~ In the kitchen, I cleared off the counter to start from scratch with what appliances I wanted out, cleaned out under the sink, set up paper collection area at top of basement stairs (to be burned), finished putting away decorations, got out Valentine's Day stuff. Still need to clear off table in corner (we want to turn it into cabinets/counter in the future, for now it houses a table), organize spice cabinet.

~ In the living room, cleared off surfaces to "start over", especially on top the piano, it just begs for clutter, picked up all of the corners & under the furniture (found lots of little toys, blocks, legos, etc). Still need to put away the movies & games that get left on TV, shampoo carpets.

~ In the playroom/front room I sorted all the toys into bins, moved in a bigger table (was in the Prince's room, he got the smaller table back), moved a book shelf (videos, DVDs, video games & books). Still need to find a new home for the old couch (it's antique, so can't be used by the children), go through the other book shelves, shampoo carpets.

~ I haven't started in the Princess's room yet. I need to put away her clothes (in drawers, I do this regularly but she regularly empties them), some kind of toy storage need to be found, place for dress up clothes, sort stuff into sell/toss/recycle piles.

~ Office: sorted through a couple of files, tossed some old stuff, finished ice cream business's books, set up in box & to be filed box, still need to go through stuff on top of desks (lots out, but the drawers are empty???)

~ Basement: sewing room is almost complete, shipping center is started, holiday decor is in bins, furnace area is still full of coal ash, but dh threw his back out so it will be there for a bit, there are still a couple items that aren't organized yet. Still need to finish organizing shelves, put up doors to sewing room, get ash out.

~ Garage: work area is set up, all of the tools & benches are workable, the storage area is ok. Hard to do much out there now that it is cold & snowy.

We have made progress, but I still have a long way to go!!! Thankfully there are 11 months left :D.

Wow!

I just did the math to figure what I save us a year, since I do 90% of the haircuts (I just had mine done in a salon (December), because I wanted something different, the Prince went with the Granny & she paid, & dh got tired of waiting for it to be convenient & went). If I didn't cut any hair at all & we all went every 6 weeks & spent an average of $20 (I included tip) we'd spend $700 a year.

So guess I'm going to keep on cutting hair, sigh!

Got the idea to check my savings from Stop the Ride's submission to Festival of Frugality #58.