InvestorBlogger » Finances

Get Started with Reading Personal Finance Blogs

InvestorBlogger — Tue, 09 Sep 2008 17:39:50 +0000

For Alan

A friend recently asked me where to start with this personal finance reading, and so it got me thinking: how would I start if I had to start again. In fact, I’d simply choose five better known feeds, and read them for a while. A lot also would depend on the angle… Am I in debt? Am I seeking to invest? Am I trying to make money in business? …

Given his standings, I thought I would choose five good feeds that I read for someone who is a busy, successful teacher with not much time on his hands:

#1: Simple Dollar (feed)
#2: Bargaineering (feed)
#3: MyMoneyBlog (feed)
#4: Consumerism Commentary (feed)
#5: … it’s pretty difficult to choose the fifth one.

But you can visit PFBlogs.org to check out the most recent updated blogs and find one of the many good ones listed. (And, no my own blog isn’t listed. Why? I don’t have a clue!)

Do you have a favorite? What would you recommend Alan read? Why?

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Welcome to Personal Finance – InvestorBlogger Style

InvestorBlogger — Mon, 02 Jun 2008 04:28:59 +0000

his is my new blog, and all it’s all about Personal Finance. We’ll be exploring the world of money, savings, budgeting, expenses, and much more in the world of Personal Finance. I’ll be asking one question and looking at different answers as I ask the question:

How far does your dollar travel these days?

Stay tuned. Many of the posts before July 1st, 2008 can be found in the archives in the Expenses, Making Money, and Expenses categories.

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Seinfeld Reruns: George Costanza’s Wallet!

InvestorBlogger — Wed, 12 Mar 2008 15:54:01 +0000

On StarWorld TV, we’re being treated to reruns of Seinfeld, a lot of which I have never seen. After publishing pictures of my wallet earlier, I was (not!) surprised to learn that George Costanza also has big wallet syndrome.

photo credit: destinelee

If you haven’t seen that episode, you really should. It’s hilarious. (Sorry, there’s no segment for the ‘wallet explosion’ at the end of the episode on YouTube!). Kyle MacDonald also has a great George-type wallet on his blog. It seems he left it behind with the words, “I left THIS wallet in El Segundo”. Wonder if he got it back!

Here’s one solution found by AskArora on YouTube. Enjoy his sensible advice! Of course, I’m trying to cram much more into my wallet, including a Cruzer stick, SD Cards, etc..

So how ratty is your wallet?

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Car Depreciation

InvestorBlogger — Tue, 12 Sep 2006 13:54:43 +0000

I found a great website that helps value your car’s depreciation. Obviously a lot depends on condition, driver, mileage, etc… but it might help figure a base value to start from:

http://www.ncbuy.com/auto/calc.html?show=1007

I’m not sure exactly how the depreciation is calculated but anyway, it’s a start. But the initial year’s depreciation is quite a shocker.

Kenneth

Assets vs. Liabilities

InvestorBlogger — Mon, 11 Sep 2006 11:27:15 +0000

A reprise of Rich Dad Poor Dad.There has been much discussion of the authenticity of RDPD’s and the background of the author. You can read about that at other blogs: Rich Dad, Poor Dad, Liar Dad, Thief. However, one criticism of the book is below along with my own interpretation of RDPD’s theories.

Jeff writes – “You tried to demonstrate that a house is a liability because you pay property tax on it. That is irrelevant. You also have to pay a tax on your car (license fee). Does that make your car a liability? You pay taxes on your income. Does that mean that earned income is a liability?”

Actually, RDPD clearly defines an asset as something that puts money in your pocket and a liability as something that takes money out of your pocket. So, if you live in your house, you pay a mortgage, taxes, etc., it is effectively a liability because the money comes out of your salary to pay this stuff. In other words, the house is costing YOU money.

Whereas if you rent out a house to someone who pays rent, as long as the rental income covers ALL expenses (inc. taxes) plus a little, the house becomes an ASSET, ie. it is making money for you.

In truth, this is a simplification of the situation, as in a balance sheet, a house with a mortgage would be recorded twice, as an Asset and a Liability. Anyway, he makes an interesting point that our passion for buying houses to live in really isn’t such a great way to make wealth (except through capital gains) as it produces no regular benefit.

But I do think he makes an interesting point: somethings that we attribute as having asset value aren’t really assets at all. A Car is a quickly depreciating asset, and if you are paying car loans, some of the time, the net difference between the value of your car and your outstanding loan may turn it into a clear liability on your personal balance sheet, esp. in the first six months where you haven’t paid anything off, and the car has suffered the sharpest decline in its value.

“A house is an asset, period. ”

Another point that RDPD makes is that yes, the house is an asset, but the question is whose? If you buy a house and its price decreases, your mortgage (assuming you have one) shifts into negative equity position, ie. if you sold, you would still have to repay the amount of the loan beyond the sale price of the house. Could it be said to be an asset then?

And if you don’t believe, do you honestly think that housing prices will keep heading up as they have been doing soÃ¢â‚¬Â¦ MmmÃ¢â‚¬Â¦

Does this clarify things a little?

What I admire is RDPD’s ability to string simple observations out to a whole book! That’s quite an achievement. I did enjoy playing the game, though it is pricy.

Kenneth

Should I go back to work?

InvestorBlogger — Wed, 06 Sep 2006 21:55:28 +0000

What do my readers think? Should I go back to work or keep working on my business?

Our school is now not really able to pay me much of a salary, because of the lack of profits in the coming six months. We’re facing a cash shortfall at home as well in the short term, because both of our incomes are dependent on the business.

I have considered going back to work, to stabilize our family income, but I wonder if that would take away from the experience of, and need to, looking at our business and trying to make the machine work better.

I’d appreciate some input on this matter from readers… so comment away.

Kenneth

Financial Blogs

InvestorBlogger — Wed, 06 Sep 2006 12:27:30 +0000

I’ve been roaming the internet, and discovered that a lot of people are currently using the Internet to help them cure their financial woes, find encouragement and solace, and help plan their financial lives. It’s a really interesting phenomenon that people who would never even tell their best friend how much they make, are now splurging on the Internet the real situation.
I do believe that this will be very empowering. Too often, we are not “permitted” by others to discuss our pay packages, our benefits, (even Google has a stupid clause that precludes discussion of their adsense TOS), our financial situation, our personal financial mistakes, our successes, and whatnot.

I think that the way things are is very unhealthy. We should, have to, be able to discuss these as freely as some people seem to enjoy discussing their sex lives. It will help shift the clouds that surround financial wisdom, dispel the ignorance endorsed by our financial institutions (think credit cards, mortgages, etc..) and engender people to take responsibility for their own finances and the decisions that they make.

We are all responsible for our own financial situation, no matter how good or bad it is. We are all victims of our own choices in these matters.

We all need to realize that we can take back this power, this right, this obligation, whenever we need to.

Kenneth

Salary Slaves: Are you one?

InvestorBlogger — Tue, 05 Sep 2006 14:06:50 +0000

Well, to explain: I don’t want to work for money per hour, I think loretta said “wage slave. Right now, I part own my own business, but I’m too busy working at it as a teacher, that I don’t have time to create more opportunities. This is not what I had in mind as a business.

Also, I had to pass up some opportunities because I didn’t have the time or money to invest in expanding my own opportunities. So then I began to think of how to raise capital without working at a job, ie. having remuneration based on how many hours you work or a boss’ (unfortunately, some of the posters fell into the bear trap and tried to answer by saying getting a job or working more not my point, guys! but then I should have had more context.)

Do you want to have it to invest in something else œreal estate, stocks, mutual funds?

Yes, I do. I want to invest in expanding my business. Developing new business(es), perhaps real estate, too. I just don’t see much future for the stock market right now. I’d only invest there as a place of last resort, i.e. can’t find better chances.

>>>As mentioned in other posts, it would certainly be possible to save a million NT$ by living frugally over the course of a few years. If you have two incomes and no kids then this could probably be done in a year.

I agree that can be done, but sorry not my point, but thanks.

I like some of the other ideas, posted as well. Keep at it.

Kenneth