June 30th, 2006

What’s the Single Attribute Most Important For Achieving Personal Wealth and Success?

What’s the single attribute that has helped you get to where you are today? Whether you are a millionaire or millions in debt (hopefully not millions), whether you are in high school or retired.

There is no wrong or right answer. Duplicate attributes are fine.

For me personally, it’s resourcefulness:

Meaning #1: the quality of being able to cope with a difficult situation
Meaning #2: the ability to deal resourcefully with unusual problems 

I could name a ton of others, but, for me, resourcefulness seems to always pop up as something that has allowed me to excel in my career, schooling, and life. If working smart and thinking out of the box could be combined, resourcefulness would be the resulting attribute. I’ll be the first to admit, in a room of academic thinkers, I would look like an idiot. I don’t really enjoying reading books–Harry Potter and the Prisoner of Azkaban (3rd book) being the last book I read–although I do love reading articles on the web and newspapers. But put me in a situation where I have to figure out a way to fix it, and I’ll give you a ton of possibilities. So if I didn’t have the ability to figure out creative ways to solve problems, I would not be where I am today. I’m not great at standardized tests, but I’m really good at hands on, applied lab work. I tend to see things in a way that others don’t. Sometimes that makes me the black sheep, but most of the time it has helped me succeed.

What about you? What do you think is the single most important attribute for achieving personal wealth and success? Whether you feel you are already there or are working to achieve success. Just one! It’s harder than you think.

Attribute, Submitted by (linked to blog if available):
- Vision, SingleMa
- Resourcefulness, Freedumb

June 30th, 2006

Hey Anonymous, Yeah You…Macs Suck.

Anonymous comments are always interesting. Everytime I see a comment by an Anonymous poster, it gets my juices flowing…is it going to be critical? Is it going to be an outright bashing? Is it going to be something real? I always hope it’s the later…something I can learn from. However, I do get comments that make me wonder if they even read my post in the first place…

For example, take this comment about my recent post on tip jars:

At 28/6/06 23:14, Anonymous said…
i hope you’re joking. don’t tip if you don’t want to. it’s really that simple. 

Now really, as if I didn’t know that. The point is, the tip jar is excessive. It should be put where a transaction is concluded, not where it begins. It’s really that simple.

Or take this example, in my post on a deceptive 0% offer, I wrote, “Sure it’s my fault for mis-reading the offer, but still it just doesn’t make sense.” So I get a comment:

At 15/6/06 23:17, Anonymous said…
It IS your fault. I would not have waived that. You got lucky. 

Did I miss something here? Uhhh, I said, “it’s my fault.”

And finally, in response to my post on commercials I despise

At 21/6/06 10:31, Anonymous said…
The Mac commercials are amazing. What I am finding interesting is how many PC users get upset at the Mac commercials? Is it striking a nerve…? 

Let’s face it. Macs are a superior machine. Hands down.

Let me ask you this, Anonymous, what’s your goal in posting something like that? To stir up a childish “PCs are better than Macs” war? Hah, please. The proof is in the pudding(?). Just look around…there’s a reason why PCs are much more common…and the reason why Macs now share PC hardware. So hah, Anonymous. Take that! :) (Really, I like Macs…)

June 30th, 2006

Friday! Update: 61 Comments, College is CHEAP, Walking Away, and Of Course…The Housing Bubble

Yes! For many of us US citizens, the long weekend awaits! For those not in the US, hey why don’t you celebrate with us! Take the long weekend, tell them Freedumb said so.

So let’s recap the week…How many savings accounts are too many? It’s pretty hard to slip any inaccurate info by the PF Blogging community. Sorry for the slip up with savings accounts, but I did clarify. If you have a dog, plan on getting a dog, be sure to read my story about Brownie and his poop. It’s not just about poop. I hate Tip Jars, don’t you? Finally, read the dumb perspective on the housing bubble.

Now on to the good stuff…

LAMoneyGuy suggests we get our “lazy butts up, and start running.” I will! As soon as Brownie turns 1.5 years old. :) I have been walking though.

Jonathan argues college can be had on the cheap. It’s generated a ton of dialog.

This is an interesting one by Keith @ Housing Panic. This post has no words, just one image and at this moment 61 comments!

Congrats to 2million for having the kahonas to walk away from a closing.

Be sure to watch your teens this weekend! They could be texting “Happy 4th” to a few hundred people as SingleMa can attest to.

Have a safe and awesome weekend everyone!

June 30th, 2006

Found a Great Article, “Three Things I Did Not Learn In High School (But Wish I Did)”

I recently found an interesting article written by a local musician turned realtor in Hawaii, Jon Yamasato.

In his article he talks about 3 things he wished he learned in high school:

1. Humans generally think in the “now,” but need to plan for the future.
2. The rule of 72
3. How to set up a budget (knowing where your money goes).

It’s a great read. Check it out, and tell him freedumb sent ya.

June 29th, 2006

My Airline Ticket Purchasing Tip = Cheating the System? My Response To a Comment.

I wrote a post earlier about buying airline tickets, and I received one comment, but it was a good one, from Anonymous:

you actually post tips like this? 

I took that comment as sort of a jab at the fact that my post suggests cheating or taking advantage of a site like Expedia or Orbitz, but a comment I appreciate none the less. In fact, so much so, that I’m going to respond in its own post. I definitely don’t condone “using” another site simply to, well, take advantage of them. However, I do believe in the mantra, “the marketplace drives all decisions.” Even if I didn’t post it, I’m sure others have already been doing it.

So that being the case, the question becomes, “Is it okay to use _______ travel site for the sole purpose of finding the best price, and then booking it to the airline’s site to actually purchase the ticket(s)?”

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To me, the answer is a firm, YES! One of the reasons I blog is to share my knowledge of how I save money, not to benefit an airline or travel agency. If consumers start taking advantage of a service made available on a site like Expedia, Orbitz, etc. and then go and purchase tickets at the airline site, then maybe the business model at Expedia, Orbitz, etc. needs to change. For example, they could charge for the service of finding the cheapest flight. In any event, I definitely don’t condone cheating. To me this is not “cheating” the system, as consumers, we are the marketplace for travel sites like Orbitz and Expedia. Thus, if informed consumers start doing this more frequently, than the travel agencies need to make the change, not us. Wouldn’t you agree?

June 29th, 2006

What My Dog and His Poop Taught Me About Saving Money…Lessons In Doggie Frugality Maybe?

Sometimes money saving tips are found in the strangest places…in this case Brownie’s poop. But this post is not only about Brownie and his poop. It’s about a lot of things I’ve learned in the past 8 months of raising this little monster that I love so much.

What inspired me to write this post? Well, this past Sunday, I took Brownie to the dog park. He ate a branch, and I didn’t think much of it. On top of that, I later fed him a pig ear. Two things that normally don’t cause any problems, although each can cause bowel irratability by itself, the combo just caused double the irritation. Especially bad when large chunks get swallowed, which happened to Brownie. This led to lots and lots of diarrhea and one instance of puke. I took him to the vet yesterday morning, after 2 days of bad diarrhea (a little blood too), and the vet confirmed, I just have to let it pass. It wasn’t a full blown obstruction, because if it was nothing would have been coming out. I was relieved. Later that day, I took him to the dog park and a big pile of $#!+ came out…Never in my life would I have thought that I’d be so happy to see a pile of $#!+. It’s like I struck gold…uhhh, black gold? I have to update doggie costs later, but yes, this whole incident inspired me to write about the lessons Brownie has taught me, and how some of them relates to money. So here we go.  By the way, if you’re looking for info on treating diarrhea or doggie allergies, check out my post on home remedies.

Read the rest of this entry »

June 28th, 2006

My Home: The Dumb Perspective On “The Housing Bubble”

Sure feels like I’m still in a sellers market. Just saw a house, looked pretty good…6 days on market, and it’s sold.

I’ve written about it in the past…the freaky, scary, world economy ending housing bubble, but let’s take another simple, logical view at the housing prices because I just don’t understand what’s going on. With all this press about housing prices going up, yet the bubble bursting, what’s a prospective house buyer or seller to think! Definitely not “buy now!” Right?

Let me give you the dumb perspective. Here are the facts, at least relative to my location…

- Median housing prices are generally going up.
- Average days on market is increasing.
- Interest rates are going up.
- More “non-traditional” loans are being taken out.

There’s something there that just doesn’t make sense…

If interest rates are going up, then less people can afford loans, means less people buying. Thus more homes available, thus increase in the average days on the market..

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Also, folks with non-traditional loans are feeling or going to feel the pinch in a few years. Thus more homes available, thus increase in the average days on the market.

More non-traditional loans are taken out because people can’t really afford what they want to buy.

So far everything makes sense…to me at least.

Now it gets fuzzy…what explains the increase in median housing prices then? My guess is, as Alan Greenspan would say, “irrational exuhberance.” What do I mean by this? Sellers still think they can get premium dollar for their homes, and buyers are still buying! Buyers are taking out non-traditional loans. If you’re telling me that housing prices will continue to rise, you’ve got to be kidding me!

Here’s a link to CNNMoney.com that lists the Honolulu, HI as one of the best places to live in 2005. In it, you’ll see “Median household income (per year)” = $50,974. You’ll also notice “Median home price” = $280,771. Their data must have been from around 2003. That’s the only time median household prices were around $280k based on data from the Honolulu Board of REALTORS.

Well in 2005, that sites reports median home prices of $590k! Now if we take dumb math, and consider, if the median household income in 2003 = $51k (I’ll throw in an extra $26) and median household prices in 2003 = $280k, then in 2005 the median house hold income should have increased to $107k. Uhhh, I don’t think so. So, how are people affording these homes?

Credit and more credit. That’s the only explanation. Folks, we are just setting ourselves up for a major economic slap to the forehead. The sky is falling, the sky if falling! But then who listens to chickens? Am I just being dumb? Or maybe the housing bubble paranoia is the real bubble. Please tell me…I want to buy a house already…I hope I don’t lose a few readers because of the advertisment in this post…I love irony.

June 27th, 2006

How Many Savings Accounts Are Too Many Savings Accounts?

So I’m debating whether to open a Citi eSavings account. On top of that, they have a 6 Month CD @ 5.5%, but I worry that having too many savings accounts hurts my credit and opens me up for more potential fraud.

Right now, I have 3 savings accounts, 2 checkings accounts opened.

How many savings, and checking accounts for that matter, would you open? How many do you have open?

EDIT: I’d like to clarify that it’s not the savings accounts that hurt credit, in fact having accounts opened for long periods of time may actually benefit your credit score. Rather it’s the hard credit check that sometimes happens, depending on who you are opening the account with, that actually would lower your credit score.

Also, to clarify “opens me up for more potential fraud,” I mean that having more accounts means more “holes” that could be attacked.

June 27th, 2006

A Horrible Trip To the Car Dealership. I Almost Lost It.

This story includes threats to call the police, 3 levels of dealership management, key theft, and something very close to extortion.

About 4 years ago, shortly after I moved to California (I’m back in Hawaii now), I wanted to buy a more economical car, so I went to look at some used cars at the Honda dealership near my new apartment. As I looked around, I found a used Acura Integra. Manual transmission, fairly low miles, not a bad sticker price, decent condition, and most importantly, more gas efficient than my SUV. I took the car on a test drive, and the horror story begins. I didn’t have a plan before I headed into this dealership…I just wanted to “look around.” I really didn’t think I’d buy anything. I was pretty naive about the whole auto buying process. Never did I think I would go through what I did.

After the test drive, I thought, this car is not bad. So I told them, “Yeah, I’m interested.” So we go inside, sit down, and out comes the “grid.” The first set of numbers are all worked out, and they said the car was $14,500 (or so). I forget what my monthly payments would be. They haven’t even pulled my credit yet.

Hmmm, not interested. So they asked, am I trading in? I said, “Most likely.” They then asked if they could have my keys to appraise my car, and I gave it to them. Didn’t think much of it, actually. This was the biggest mistake of the night. Once they invest in looking at the car, coming out with a $$$ value, they will try everything to sell you the car.

Well, they came back with a revised offer, giving me something like $17,000 for my SUV, so if I went ahead with the deal, I would leave with another car and a check for $2,500. I thought, “That’s not too bad…I wonder if I can get more.” Well, now I looked interested. It just got worse. They asked the classic question, “What would convince you to take this car home today?” And I gave them a number, $13,000 for the car, and $17,000 for my trade in. Five minutes later, this “manager” comes out and says, “Sorry, we can’t do that, but we will give you the car for $14,000.” I thought, “Wow! $500 more dollars. /sarcasm” I still didn’t feel comfortable.

I made a few calls, and everyone told me, “Don’t do it. You can easily find other cars for less.” I agreed. I went back, and told them, “You know what? Sorry, but I’m not interested. I’ll come back later.” Now this is where it gets ugly.

The salesman says, “Hold on, let me go and see if we can work out an even better deal.” Again, five minutes later he comes back, this time with the dealership GM. The gm says, “It’s your lucky day! We need to make this sale happen. We’ll give you the used car for $13,000, and pay you $17,000 for your trade-in.” Uhhh, salesman, did you not hear what I just said earlier? Some conversation goes on, and they said, “Why don’t you think about it.” I said, “No thanks, I’d like to go.” Continuing to disregard my statements, the guy keeps blabbing away. Finally I said, “Can I just have my keys?” The guy says, “Sure.” Twenty minutes later, still no keys. At this point, it’s late, and I just want to go home. The gm comes back and tells me, “You sure you don’t want to do this? Is there anything I can do?” And I replied, “No, I’d like to go home…where are my keys?” To that he said, “It’s coming.” Another twenty minutes passes, and at this point, I’m pissed. So I go up to the GM, and said, “Where’s my keys?” He said, “It’s coming.” And that’s when crap hits the ceiling.

I said, “Listen, I want my keys right now, or I am going to call the police.” To that he replies, “I’m getting it right now, just hold on.” Already huffing and puffing, I waited a few more minutes. Finally, the salesman pulls me on the side and says, “Look, let’s just go in and fake like you’re filling out the paperwork, and I’ll get the keys, and you just go.” I couldn’t believe it! Is this really happening to me in a dealership?

So we go in and sit down. He grabs the paperwork for me, and I continue to fill it out while he steps away to get my keys. I wrote some things on that form that would not be appropriate for my blog. It was harsh. Five minutes later, he brings my keys to the table. I was relieved to get my own damn car back! Finally, he says, “Just hold on a few minutes until my GM walks away…” I said, “Okay.” Then he tells me, “Alright, go. Sorry man.” And I leave.

That was by far the worst dealership experience ever. This Honda used car dealership is in San Jose. If you’d like to know which one, email me. Anyone else have a horror story to share?

On second thought, the dealership was Capitol Honda Used Car on Capitol Expressway, San Jose, CA.

June 26th, 2006

I Hate Those Tip Jars @ [put name of establishment here]! A Rant Letter.

Dear [put name of establishment here],

Everytime I visit your establishment, I see a little jar that says, “tips…thanks!” On top of that, if I pay with a credit card, sometimes I am faced with another line right before the total that reads, “Tip: ___________.” Now, don’t get me wrong, I appreciate great customer service, but this “tip” thing is just getting a little out of hand. When I buy my coffee, I don’t think a simple, “Hi, how are you doing?,” “Do you want room for cream?,” and “Anything else for you today?” deserves a tip. Come on, I mean I’m already paying you at least 50% margin on what I’m buying! At a restaurant, service entails seating, taking my order, filling my drinks, cooking, bringing my order, cleaning up, desserts…Now that, I think, deserves a tip, but come on, taking my order, my money, and giving me my change back does not deserve a tip.

So please, [put in name of establishment here] make it policy to remove these “tip” jars from your stores. I feel bad because some of your employees “expect” a tip, which to me is just ridiculous. Or at the very least, put it by where I pick up my order. Not at the register after you’ve just taken my money. I haven’t even received my order yet! Thank you.

Sincerely,
Freedumb
P.S. (Tips…thanks!) ->

————END LETTER

If you (blog reader) are interested, It’s Just Money has a post on tipping guidelines.