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42 | § ¶Frugal Family Vacations
-- Our Government Helps Us
When the modern American Family thinks about a Family Vacation I bet they think about Disney World and nearby attractions – no wonder my mom's Real Estate appreciates so much in that area. If they do not think about Orlando, Florida they probably think about other places where there will be Hotels, Restaurants, and hefty entrance fees.
National Parks are as beautiful as they have ever been, but now more accessible than ever. CNN Published an article on them today. Most have been afforded amenities to accommodate everyone from the roughing-it to the one that can't or doesn't want to rough anything and would rather be pampered. Most important, they are still cheap as they have ever been: low to no entrance fees, low camping permit fees, you can cook your own meals, and if you feel like it you can do plenty of healthy and fun exercise.
This year we have scheduled two vacations on National Parks: Acadia National Park and The Grand Canyon National Park.
Continue Reading The Article... 32 27 | § ¶This Year’s Vacation Trip Scheduled
-- Lithuania and Dublin – Miles and Discounters
Whenever possible, wife and I like to travel internationally every year. This year a friend is marrying in Lithuania, which is a great opportunity to visit the world behind the now fallen iron wall. Most importantly, Lithuania is one of the most westernized Eastern Europe countries – hopefully there won’t be such a dramatic culture shock.
What we found is that, not being a premiere tourism destination, it is quite difficult to reach it frugally!
Since we are going to cross the pond already, we decided to combine the vacation with one that covers more countries, namely Ireland and UK: more value for our money.
Continue Reading The Article... 24 28 | § ¶Educate People
-- For your own good!
Both Mr. Snow (U.S. Treasury Secretary) and Mr. Bernanke (the new Federal Reserve Board Chairman) agree on the fact that Financial Education for everyone is America is important. CnnFn.com reported their comments today: “People are better able to improve their own economic situations if they understand the basics of personal finance“ and “Because financial literacy leads to better outcomes for individual consumers, continued effort in this area is highly desirable.” -- They told the congress, respectively.
By helping people be better prepared to take financial decisions you are helping them achieve financial stability or even growth. A financially stable family is able to contribute positively to our economy as producers (employees or self employed), consumers, and taxpayers. Financially unstable people are not only more likely to suffer, but also prone to become resource drain to our society.
As parents, husbands, wives, friends, or even acquaintances, it is our duty to them and to our nation to educate people to be financially savvy. Our school system is doing very little in this regard, and even when the Federal Reserve Board is trying, they can't be the only ones responsible for such task.
The very fact you are reading financial press and blogs makes me think your financial knowledge is above the average American. Teach everyone the power of compounding, saving, retirement planning, insurance, and equity building. Teach everyone that they have to take control of their finances for their own good and for the good of our nation.
Other resources:
26 31 | § ¶Make Sure You Can Own a Home
-- That is, if you don’t
I am a big advocate of home ownership. In the US, around 70% of the families own their residence, and for a reason: it is the easier step towards financial independence. I have even advocated my tenants to buy a residence – not the best business strategy, I must stay: I have lost two tenants to home-ownership. I am not the only one advocating homeownership: Uncle Sam does, in the way of a better tax refund for most homeowners, due to the interest and real estate tax itemized deductions.
For as many home owning benefits as there are, I still get excuses from friends, family and coworkers that haven’t purchased their own home. Some of them say they don’t want to tie themselves to a property yet – too young they say. Others say that the real estate markets have peaked and there is some kind of end of the world bubble bursting ahead. And there are those who have destroyed their credit and are rebuilding it before they can buy one.
Whichever the reason for not buying a home, if you do not have a home you must make sure you can buy one!
Continue Reading The Article... 25 33 | § ¶LandLord’s Market?
-- Finally?
For a long time it has been a home buying market. Sellers where having a party, but so did buyers – or I should say “lenders”. Flexible lending schemes and low interest rates made it possible for all but those with the worst credit and financial conditions to be approved for a loan that enabled them to buy the house of their dreams.
Interest rates have been steadily climbing. A few years ago it was easy to get 5% fixed on a real estate mortgage – I did! Today, it is back to the mid 6’s. It is still low compared to the 7.25% that I had on my first mortgage ever, but when you recognize the doubling or tripling of house prices since then you start to see that it is getting difficult for people without cash to buy a property. (It used to be common to amass 20% of a property price before buying it, as opposed to the 5% down payment loans that are common nowadays).
Some market analysts have been arguing that the reason for the surprise inflation observed was a rise on rents, a rise on rental property demand, or simple the fact that people can’t buy properties anymore and have to rent.
”Housing prices do not figure directly into the CPI data, Vitner explains. The government recognizes that homes are not only shelter, but assets that add to individuals' wealth, just as stocks and bonds do. “This is again a proof that buying a house with a fixed interest loan is a hedge against inflation – assuming you do not make the common mistake of maxing out credit cards and paying them down with a home equity line.
“Steve Stanley, chief economist at RBS Greenwich Capital, said he expects owners' equivalent rent to increase 0.3% on a steady basis in the coming months.” --CBS Marketwatch
Could it be that after half a decade of housing boom, we Landlords can enjoy a steady stream of potential clients for our properties? A rise in fair rental prices could be welcome as well, as right now we do not break even in at least one of the properties.
23 33 | § ¶NEED is a Four Letter Word
-- Pay Yourself For Saying It!
Humans need air, potable tap water, food, and warm shelter. Humans want a TV, designer jeans, a 4,000 sqft. house, an iPod, and a Nissan Pathfinder.
There is nothing wrong in wanting something. It is natural to work hard to acquire or do the things you want. Buy what you want, just don’t fool yourself.
Continue Reading The Article... 34 36 | § ¶Reducing Debt: The Healthy Way
-- Loosing Debt is Like Loosing Wheight
(Free Money Finance is Hosting this weeks Carnival of Debt Reduction. On it you will find a posting from Mighty Bargain Hunter that complements this one. I am republishing an old article that is still relevant.)
Sooner or later almost all of us end up with more debt that we feel comfortable with. Sooner or later we also gain weight by having a life style that is less than perfect. I have a philosophy in life: Loosing Debt is Like Loosing Weight. Let me explain why in the following paragraphs.
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