I came across this article about real estate negotiation (primarily with examples from Manhattan). It has some interesting points, of which I find the most intriguing the idea that you shouldn't (as a buyer) tell your broker what your upper limit is. The article points out that both the buyer's and seller's realtor have a vested interest in a higher selling price.
There are a lot of anecdotes in the article which give it an interesting perspective. Check it out and let me know what you think.
(The article requires free registration with The New York Times)
Thursday, August 24, 2006
More Money Saving Tips
Another great article from Bankrate that has 10 tips for saving money, each worth $500 or more a year for a total of $5,000 savings a year if you follow them all. This article had a lot of great ideas and that's why I'm posting it here, so I'll have access to it in the future.
So which one do I like best, but am not currently using? Buying more generic household products like toilet paper, paper towels, plastic cups, etc. The hard part about implementing this one will be trying to convince my wife that the generic toilet paper is the same as the name brand (or at least more economical). Wish me luck!
So which one do I like best, but am not currently using? Buying more generic household products like toilet paper, paper towels, plastic cups, etc. The hard part about implementing this one will be trying to convince my wife that the generic toilet paper is the same as the name brand (or at least more economical). Wish me luck!
Saving Money on Energy and Groceries
If you've read Cashtalk for some time, you know that I'm always on the lookout for good deals. I came across two different articles from different sources today about ways to save money. The first is how to get the most for your dollar at the grocery store. I like the introduction because it says that the very fact that you're buying your dinners at the store, rather than eating out results in financial savings. The article goes further with tips on maximizing your dollars at the store by interviewing different chefs, caterers and cookbook authors on ways they save money when picking up supplies.
The second article was at CNET.com and focuses on ways to eliminate wasteful uses of energy and hopefully decrease your monthly energy bill. According to the article, 10 percent of our energy bills are made up of electronics "invisibly" sucking up energy in standby mode or when we think they aren't "on." However, the bulk of our energy bill is to keep our house at a certain temperature. Going through the audit on this site might help you identify ways to cut that bill a little.
The second article was at CNET.com and focuses on ways to eliminate wasteful uses of energy and hopefully decrease your monthly energy bill. According to the article, 10 percent of our energy bills are made up of electronics "invisibly" sucking up energy in standby mode or when we think they aren't "on." However, the bulk of our energy bill is to keep our house at a certain temperature. Going through the audit on this site might help you identify ways to cut that bill a little.
Does More Money Make You Happier?
I've been spending a lot of time at the Bankrate site because of the possibility of me buying a house. I want to stay on top of interest rates to know what they will most likely be when I decide on a house to purchase.
Anyway, I came across this article about whether or not more money can make you happy. One observation from the article says that going from shear poverty to the middle class can significantly increase happiness, but if you are increasing your yearly income from $100,000 to $100 million a year, the benefits concerning happiness are negligible.
More telling as to whether you are happy with your income or not, is how your neighbors live. The amount of happiness tied to the amount you make is relative to how much the people around you make. If you make more than the people you know, then you will probably be happy, even if you're poor by definition. If you live in Beverly Hills and you are the one making the least, you will most likely be unhappy, even if your income is in the millions.
So when is enough enough? When you reach a point where you realize that making more won't make you happier. If you already the highest earner in your peer group, nothing more will make you happy.
Other interesting observations cited in the article (actually from a Pew Research study) are: Republicans are happier than Democrats, Married people are happier than Unmarried, Churchgoers are happier than non-Churchgoers, and "Sunbelt" residents are happier than people living elsewhere. Contrary findings: Retirees are no happier than workers, and pet owners are no happier than non-pet owners.
So what does "happy" mean? In the Pew study, the respondents could define it however they saw fit. An interesting technique and one that allows a more accurate reading. It recognizes that happiness can be relative, but our own perception of that happiness (and whether we achieve it) is what is compared in the study.
So what is more important than money? According to Bruce Weinstein, after basic needs are met, money and material goods are not what make us happy. Being loved and having meaningful friends and having someone to love are what make people have happy lives.
One important point recognized in the article, too, is that it is not important to be happy all the time. We strive for that, but actually happiness is guided by emotions more than anything. People who try and suppress certain emotions might find it unhealthy. Emotions can guide us and give us appropriate reactions to our environment. If we were happy all the time, then we may miss something that our brain is trying to tell us.
Enough rambling. Check out the article and let me know if you're happy!
Anyway, I came across this article about whether or not more money can make you happy. One observation from the article says that going from shear poverty to the middle class can significantly increase happiness, but if you are increasing your yearly income from $100,000 to $100 million a year, the benefits concerning happiness are negligible.
More telling as to whether you are happy with your income or not, is how your neighbors live. The amount of happiness tied to the amount you make is relative to how much the people around you make. If you make more than the people you know, then you will probably be happy, even if you're poor by definition. If you live in Beverly Hills and you are the one making the least, you will most likely be unhappy, even if your income is in the millions.
So when is enough enough? When you reach a point where you realize that making more won't make you happier. If you already the highest earner in your peer group, nothing more will make you happy.
Other interesting observations cited in the article (actually from a Pew Research study) are: Republicans are happier than Democrats, Married people are happier than Unmarried, Churchgoers are happier than non-Churchgoers, and "Sunbelt" residents are happier than people living elsewhere. Contrary findings: Retirees are no happier than workers, and pet owners are no happier than non-pet owners.
So what does "happy" mean? In the Pew study, the respondents could define it however they saw fit. An interesting technique and one that allows a more accurate reading. It recognizes that happiness can be relative, but our own perception of that happiness (and whether we achieve it) is what is compared in the study.
So what is more important than money? According to Bruce Weinstein, after basic needs are met, money and material goods are not what make us happy. Being loved and having meaningful friends and having someone to love are what make people have happy lives.
One important point recognized in the article, too, is that it is not important to be happy all the time. We strive for that, but actually happiness is guided by emotions more than anything. People who try and suppress certain emotions might find it unhealthy. Emotions can guide us and give us appropriate reactions to our environment. If we were happy all the time, then we may miss something that our brain is trying to tell us.
Enough rambling. Check out the article and let me know if you're happy!
Thursday, August 17, 2006
Buying a Home
It has been more than a month since my last post to Cashtalk. I've started a new job in marketing and have begun looking for a new home. I've never bought a home before and have had to learn what most of you probably already know. What type of mortgage to get? Which bank can give me the best deal? What to look for in a house? Will it be easy to "fix up"? Will there be any problems when I try to resell (in which case, I probably shouldn't buy it in the first place)?
I've looked at probably about 20 houses in this area and before that, I pre-established a limit that I do not (or cannot) want to spend more than. It is certainly a buyer's market. Homes that have been on the market for a few months have reduced their price. Almost every realtor I talk to at open houses always ends the conversation with, "The sellers are motivated. They might be willing to talk about the price or closing costs."
I guess that's great for us, but I don't want to just buy a house because it's a good price. I want to live in a neighborhood that's quiet and has easy access to the amenities that I've grown accustomed to (going downtown, close to a grocery store, being able to go to a park, and close to the local pool for swimming). I don't want a house that is right next to the freeway. I'm not excited about houses that are mirror images of those around them (even though inside they are really, really nice). These tend to be newer houses, which don't often hold their value really well.
So, how did you buy your house? What was important to you when deciding to make an offer? Did you know it was the one when you did buy it? Were you happy with your decision, or did you discover something wrong after you'd already closed? I'd love to hear your stories and learn from them.
I've looked at probably about 20 houses in this area and before that, I pre-established a limit that I do not (or cannot) want to spend more than. It is certainly a buyer's market. Homes that have been on the market for a few months have reduced their price. Almost every realtor I talk to at open houses always ends the conversation with, "The sellers are motivated. They might be willing to talk about the price or closing costs."
I guess that's great for us, but I don't want to just buy a house because it's a good price. I want to live in a neighborhood that's quiet and has easy access to the amenities that I've grown accustomed to (going downtown, close to a grocery store, being able to go to a park, and close to the local pool for swimming). I don't want a house that is right next to the freeway. I'm not excited about houses that are mirror images of those around them (even though inside they are really, really nice). These tend to be newer houses, which don't often hold their value really well.
So, how did you buy your house? What was important to you when deciding to make an offer? Did you know it was the one when you did buy it? Were you happy with your decision, or did you discover something wrong after you'd already closed? I'd love to hear your stories and learn from them.
New Tax Changes: Some Good, Some Bad
Bankrate.com has an article about new tax laws that will mostly take effect in 2007.
I'm most impressed with extending the contribution limits to Roth IRAs. Previously, these limits would have expired in 2010. Now, in 2008, if you qualify, you'll be able to contribute up to $5,000 a year to a Roth IRA. After that, the limits will be adjusted for inflation. That's great news for savers who want to build up a retirement fund from which they won't have to pay taxes when they withdraw (after 59 1/2 of course).
Another provision extended the tax-free distributions from 529 savings accounts (you know, the education funds). This tool was expected to expire in 2010, too, but Congress made them permanent. So if you have children and expect them to attend college, this would be a great way to invest some money and try to keep on top of tuition inflation (currently around 7% a year).
There are 10 distinct changes to the tax code that the bill from Congress addressed. Read the article to see how these could effect you.
I'm most impressed with extending the contribution limits to Roth IRAs. Previously, these limits would have expired in 2010. Now, in 2008, if you qualify, you'll be able to contribute up to $5,000 a year to a Roth IRA. After that, the limits will be adjusted for inflation. That's great news for savers who want to build up a retirement fund from which they won't have to pay taxes when they withdraw (after 59 1/2 of course).
Another provision extended the tax-free distributions from 529 savings accounts (you know, the education funds). This tool was expected to expire in 2010, too, but Congress made them permanent. So if you have children and expect them to attend college, this would be a great way to invest some money and try to keep on top of tuition inflation (currently around 7% a year).
There are 10 distinct changes to the tax code that the bill from Congress addressed. Read the article to see how these could effect you.
Company Social Events: Don't Get Drunk!
I came across this article at Monster.com about how to act during a company social event (you know, parties, Christmas celebrations, dinner at the boss' house, etc.).
One of the most important is: Socialize Outside your Group. Get to know others. Put yourself out there, don't just hang out with the people you work with or feel comfortable with. Who knows, in the future when you apply for a job, they might just remember you being friendly and that could help!
One of the most important is: Socialize Outside your Group. Get to know others. Put yourself out there, don't just hang out with the people you work with or feel comfortable with. Who knows, in the future when you apply for a job, they might just remember you being friendly and that could help!
Housing Sales Decline in 28 States
It looks like the real estate market is beginning to be saturated with homes. This article identifies a number of states where housing sales have declined over a previous period. That doesn't mean houses aren't being sold, however. Alaska, Vermont, North Carolina and Texas have all had sales increases.
The writer speculates that booming areas a year ago are slowing, while previously stagnant areas are doing well.
While it most certainly is a buyers market now, some people are estimating the slowdown is through the worst already. What do you think?
The writer speculates that booming areas a year ago are slowing, while previously stagnant areas are doing well.
While it most certainly is a buyers market now, some people are estimating the slowdown is through the worst already. What do you think?
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