Here we are, a perfectly beautiful Saturday day, and what am I doing? Filing my tax returns. Why oh why did I choose to do this right now?

Albeit, I'm doing it a bit "late", because I've always made it a point to try to get it done by the end of January.

Still, 2008 promised to be super easy-- and for the most part, it was-- so I thought I could just crank that out real fast, and go out and play.

But much to surprise and dismay, it also turns out that I owe $85 in taxes. I've never had a year where I owed money before. I guess it shouldn't bother me either, but for some reason, it does.

Is it because we had that stimulus check and that got taxed? Is this something I have to adjust my withholdings for, or is this just a fluke year? My withholding is already a 1.

Oh well, anyway, what's done is done, and I want to move on and enjoy the rest of the day.

I don't know if any readers recall, but one of my 2009 goals is to increase my earnings. I think I've done just about all that I can on the frugality front. Well, I could do more, but I'm essentially debt-free and trouble-free right now, and all that's left is just to keep moving forward on my usual saving and investing regiment (which averages at about 60% of gross).

So, what about increasing my income? Well, because I am changing employers, my old employer is trying to retain me and referred me to another site they contract with for a job opening.

Well, I just got back from an interview at the other company, and I am very excited about how it went! In fact, I think it's the best interview I've ever had with anyone!

By the way, it's a $20 billion agricultural research and development company, so it looks stable enough. And yet, this particular site is small enough that everybody goes by their first names, which I really like.

Best of all, the people who interviewed me confided up front that they desperately need someone right now, because the old employee is several months pregnant and will eventually be on maternity leave.

Actually, that's not the best part. The best part is I know I am a perfect fit for the job, I am certain they feel that way as well, and the interviewer even said, "We know you already have an offer from the other employer, and while we can't guarantee anything at the moment, I promise you that our offer will be extremely competitive!"

So! They want to get this done quickly, I hope they believe I am the perfect guy for the job, and they're willing pay up for it. I can't wait to find out what they have in mind!

Even if this doesn't pan out, the new employer at my current job has already re-hired me with a slight pay bump so... smells like a win-win to me!

There's just one thing that concerns me about this new offer. I asked what would happen to me when the old employee comes back from maternity leave. The interviewer basically said that they can't guarantee anything, but the workload is big enough for two people. Hmm.

Anyways, I have one last place I want to try to look into. Another pharmaceutical company that's really stable (makes generics), and I have a great contact there. Will have to see what happens with that one.

But yeah, Woohoo!

Ok, first, let me just say that this is most definitely not the best title I've ever came up with. However, I do have a slightly interesting "problem" on my hands.

For literally years, I've worn the work clothes that my employer has issued to me. For both on and off work.

And why not? Polo-like shirts and khaki pants? It actually looks pretty good. Best of all, it's free. It even comes with free dry cleaning!

But now that I am switching employers, I have to turn it back in soon. Supposedly, the new employers have their own "uniform", but what will that look like? When will I get it? What do I wear in the meantime?

And besides, I really do need clothes of my own anyways, in the remote chance that this new employer doesn't work out and I have to job hunt.

Oh, and in case you're wondering? No, my old clothes won't work. Not unless my merry collection of gag T-shirts ranging from, "Kiss me because I'm Irish" (I'm not), "I love mushrooms" (Mario Bros. video game joke), "I do my own stunts" (that one is true), and the ever-popular "I'm not a doctor, but I'll take a look at it" will win over prospective employers and women alike, then yes, I suppose I could wear them.

But something tells me I need clothes that are a bit more... formal. Something I can wear to interviews. Something that I can wear at work. Something I can wear while out at town.

Is such a thing possible? I'm a guy so, I really just need one set of clothes that I can wear anywhere for most if not all occasions.

And of course, I'm also hoping to pull this off for as little money as possible.... Or is clothing something that I should probably spend a little bit on quality?

Oh, and if it helps, I already have some navy blue slacks that I can keep wearing. But, if I have to ditch them because they're mismatched somehow, then... well, so be it.

So, based on all this, can anyone here make any recommendations on what kind of outfit I should wear? I don't know anything about clothing or where to even shop for stuff like this....

Also,

what do you guys think of this outfit?

Well, good news! I just got official word that the new employer will indeed be re-hiring me, and with a slight pay increase as well!

They probably want me to take on more work for this "slight pay increase", but I don't care. In this tough economy, I'm just glad that I still have a job and they even want to pay me more for it! And anyway, taking on more work right now is just "job security".

Yeah, more pay! I'll take it!

Wells Fargo
I didn't mention this before, but a little while back, I bought Wells Fargo stock when they were at their 52-week low. Despite the spike in trading activity, there was no support and the trade failed miserably.

Today, Wells' earnings report is coming out and I was expecting a lot more bleeding. Preliminary report suggests that they are looking at a 20% loss in earnings. So, what do I find when I looked up the ticker? The stock went up overnight by nearly 20%!

Can somebody please tell me what in the world is going on here? This makes no sense to me. But you know what happens when a stock spikes up on bad news that makes no sense to me. That's right, SELL!

Sadly, I'm still going to lose money on this trade, but the good news is, I won't lose too much. Which comes to another point I've been pondering.

Stock trading hiatus
I am seriously considering getting out of stock trading for a while. It's not so much that I don't want to trade stocks anymore, but just knowing that the money I am trading with is mid-term money for a house some day.

Due to the nature of this money and my personal housing situation, it would be wisest to put it all in a bond fund or some kind of income/cash investment. I just haven't because I really, really wanted to learn more about the stock market and trading stocks in general.

But at this point, I have. I may not be good at it, but it's still a good learning experience. And it doesn't mean I can't come back to it later. By yeah, the point is I may need to re-think this because I don't think I am putting this money where it really belongs. I know that if this was a question that came up in the forums, I would have advised against stock trading.

So, yeah, I'm looking at a different path for this money.... Maybe bonds.

The new boss
I learned something more about the new contractor and their 401(k). First of all, it turns out that they're a Fortune 100 company that has been around for more than a century. I checked their ticker and they are currently an $8 billion company. They lost a lot of value in 2008, but the trend is consistent with the Dow so I don't think it's them.

Anyway, they had an after-work meet-and-greet where we got to know the people and they even fed us delicious barbeque ribs and chicken! So free dinner last night. And for what appears to be a conservative company, the management seem like really cool people.

The 401(k) is a fairly typical $0.40 per dollar match, at 6% of gross. But here's the really cool part: The company that's handling the 401(k) is Fidelity! Fidelity! I'm going to be with Fidelity!

Well, I mean, I don't know for sure that I am re-hired just yet. The official announcement won't be until Friday, but I am quite confident that they're going to keep us incumbent employees.

But yeah, I really don't like my current 401(k) and I'll be looking forward to rolling that money into Vanguard as well. Even though Fidelity is great and I could roll it there, I still prefer Vanguard. It's not so much that I think one is better than the other, but it's just a matter of personal preference here.

Wow, so these quickies are not as quick as I thought.

Sooo, I haven't done these for a while, and I figure, why not?

Milestones
I don't like talking about milestones anymore because I think after a certain point, well, I feel like I would only be bragging a whole lot about very little.

Still, I did reach an important one recently. You see, when I first came on board on SA, I was in the hole for nearly -$40k. As of this point, my net worth has now flip-flopped to nearly $40k up!

Of course, most of it is in retirement, and I've still got a long way to go, but it just feels so great to be able to get out of that stinkin' hole and see the light for once!

Stimulus
On a slightly bummer kind of a note, my stimulus check money finally ran out.

Some readers may or may not remember that I converted my entire 2008 stimulus check to grocery gift cards, and in return, the grocery chain offered to add an additional 10% to the total! 10% extra free money for something that I needed to begin with was simply too good to pass up.

I kinda liked having "free money" for groceries, but sadly, now I have to go back to using my regular pool of money, which is a bummer.

Dummy
Ok, you guys will think I'm crazy, and I won't blame you at all. In fact, even *I* think I am crazy. But you know, I've always wanted a punching dummy. Hehe, yeah... a punching dummy. But not just any dummy! (Why are you looking at me like that?) It's one of those really fancy kinds that's actually shaped like a real guy. The brochure calls it a "manikin" and it allows you to train for more accurate strikes.

In fact, this thing normally costs a premium price of $249.99, but I found it on sale at a local sporting goods store that is selling it for $99.99! HIYA! Chop!

Yes, it's crazy, and yes, $100 is still $100. In fact, this is the part where I would really feel guilty coming home with this giant thing standing in the middle of the living room, and I guess I should be glad that there is not a woman there with her arms crossed looking very... cross. Like she's going to use ME as a "manikin".

But so long as I am still single, and even though I'm on the 401(k) challenge, I thought the discount was too good to pass up. In fact, they had to hold me up at the register for nearly 15 minutes just to double check the price because they couldn't believe the discount either.

But anyways, I admit it's a guilty pleasure, and ultimately, I don't have a good excuse for spending that kind of money. Please forgive me! ;-)

Normally, I'd wait until pay day to update, but seeing as how I am currently not receiving a paycheck (with it going to 401(k) instead), I decided that now is as good as any!

January. Not surprisingly, my net worth went up because January is when my employer's 401(k) match hits my account. It kind of skews things, but I'm not complaining!

I was heartened when I looked at my net worth list, seeing the pit from where I started, all the way to where I am currently. It gives me a sense of hope that maybe, just maybe, I can make it after all.

Especially in light of the fact that there's all this upheaval going on at the workplace. It just goes to show that the only financial security is the one you create for yourself.

You'll have to pardon my overall lack of enthusiasm today. Just another Monday blues kind of day I think.

Some may recall my uh experience last year trying to learn the guitar, but only made a test recording. In any case, I finally got the time, inclination, and all the gear in place to make a "full" recording of Jack Johnson's Belle.

Now, I know it's far from perfect, but you know, I've never tried to be perfect with these things. I just do it strictly for fun so....

With that in mind,

here's my full recording for Belle.

Now I can finally move on to a different song....

has begun in earnest. I received my paycheck stub earlier (which had no pay), and I just doubled checked my 401(k) website and saw that my full contribution has gone through.

I did not do 100% however. I rolled it back down to about 80%, because I think it'll make me feel better knowing that enough money is going to make sure that my insurance is paid. I assume that it is even if I did 100% and my paycheck stub seems to confirm it, but I still want to play it safe.... Besides, 80% is plenty anyways.

As for my budget, well, I admit it's slightly unnerving seeing my emergency fund dip in noticeable chunks at a time. I mean, I know it's temporary, and I can also stop this anytime I want. But, I guess it's just the psychological mindset of it all. It's amazing how when you get used to a certain level of funds as backup, you no longer see it as some kind of "free extra money" but more like "necessary survival money". Kinda funny like that eh?

The weather has cooled considerably, and the forecast is that we're going to be hit with a particularly cold blast of arctic air front soon.

At the same time, I paid my gas bill earlier today, and by my standards, they were astronomical.

Also, did I mention that I should be living on only savings in the upcoming days? In fact, it's probably started and I don't even know it yet. (I won't know for sure until tomorrow, which is my pay day.)

Put it all together, and well, I am back staring thoughtfully at the closet again. Hehehe.

But I started recalling my closet-living days. I remembered the upside, which was a savings of roughly $30 per month in gas bills. However, I also remembered how it had gotten so cold that taking showers, cooking in the kitchen, and just staying at home at all was quite unpleasant. In other words, it also resulted in a lot of hidden costs in terms of me not staying home and cooking for example. Instead, I was wasting more car gas being out longer, eating out more, and was more likely to buy something while I was out.

So, for $30 a month, I no longer think it is worth me trying to get by living in my closet again.

I know, I know. I'm sure many of you dear readers are quite disappointed with this decision to forego months of potential comic relief. I'll try to make it up to you guys in the upcoming 401(k) Challenge. (Yes, it's got a name now.)

So yeah anyways, this post is basically about nothing. What can I say except that, Yes I Am, Master of My Domain!

Most of the time, I really do think people don't give frugality enough credit. However, I also realize that even frugality has its limits. Theoretically.

That is, I never thought I'd even see an example of its limits...

until I read this.

I mean, this guy really has me scratching my head. Work a little so you can quit, travel, and even gamble until money runs out and you're forced to go back to work? You're 40 years old and you don't think you have the time to fix this issue? Is this guy even frugal?

Suze has a new book out. I haven't read it yet, but it's free! Grab it before the offer ends on Jan 15th.

LINK

I have to share something, because I think

this could be one of the best blog entries I've ever read. Please feel free to jump there first before finishing this entry.

To add, I do think happiness is fleeting, and when it arrives, we don't always register it as such, because often times, it's the little things. Well, at least I don't notice because I can be dense sometimes.

But the upside is that I believe happiness is also always right around the corner. You're never far from it, if you work towards it.

I also think happiness is, or rather should be internal. You can't hold out and wait for someone else or something else to make you happy. Otherwise, you could end up waiting forever.

Most relevant of all, I don't think there is a conflict between happiness and money. There are rich happy people, and there are poor happy people. There are also rich unhappy people, and there are poor unhappy people. (Although, statistically, the rich tend to be happier, especially if the goal is financial security, not worldly possessions.)

To be honest, happiness is something that has been elusive to me for years. So, for 2009, among other things, I'm going to pursue a happier, more meaningful year.

Double post today, but something's come up that requires my attention and perhaps your assistance.

Long story short, our contract got bought out by another contractor. Although nothing is for certain, the new contractor said that it's only a management change, and they plan to keep all of us regular employees.

In any case, I've checked the 401(k) plan for the new contractor, and they have a performance-based match (which appears to be around $0.50 to $.65 per dollar dollar), but with a match limit of "only" up to 6% of gross.

Now, I realize this is fairly typical, but my current employer has NO LIMIT on their employer match (at $0.28 per dollar).

So, here's what I am thinking of doing (and perhaps this is the part where I once again live up to my name). I'm thinking of giving 100% of my paycheck for the next two months to my current 401(k). Two months because that's how long the current contractor has before their contract expires. That way, I can take advantage of as much of their employer match as I can, while I still can. After that, I'll ease up considerably to both replenish the EF, as well as adjust to the new contractor's terms.

My EF is more than enough to cover expenses for the next two months, so I don't think this is completely insane. Just the same, I would have to be super-careful because I would be living on emergency savings alone. Then again, if it turns out to be undoable, then I'll just dial the contributions back down.

Soooo, what do you guys think about this idea? Too crazy, or just crazy enough that it might work? (Actually, I've already switched it over to 100%, BUT if someone thinks this is a really bad idea, I can always switch it back.)

I've been using minutes a lot faster than I realize, and it's got me looking at my cellphone situation again.

Again, the best rates comes down to Tracfone and Net10. Carlos Slim owns both of these, and is probably why they are so similar.

Although the differences are subtle, Tracfone typically costs a bit more, whereas Net10-- as their name implies-- guarantees no more than $0.10 per minute, but at the cost of your length of service.

I originally went with Tracfone because it's ideal for someone who rarely uses the a phone (thus favoring length of service over a slightly lower rate). However, since I am using more minutes than I thought, it would seem that Net10 would be a better fit (since a better rate is more important than length in this case).

So, once the minutes are used up on this phone, I am thinking of transferring my number over to Net10 instead. We'll have to see. In fact, if I get Net10's highest minutes (4000 for $400), they'll add an additional 1000 minutes, making it the cheapest rates of them all (at $0.08 per minute). The only slight downside is having to pony up $400 up front, for a pre-pay phone.

Anyway, just thinking out loud. Anybody know of an even better deal than this?

After spending years living where I am and dealing with some glare on my computer screen, I finally got around to doing something about it by getting some bedroom curtains.

The bedroom windows are interesting in that the previous owner decided to weld his own curtain hanging frame out of small copper piping. I don't know why, but that's what he did. This also presents an interesting challenge because many of the conventional curtains out there would not work.

It just happens so that I also have a set of leftover shower curtain hooks that is collecting dust in my closet. Put two and two together, and you've got another mad-cap, zany idea brewing in my head.

Yes, I thought, "Hey, what about shower curtains? Why not?" I've tried stranger things before, so why not indeed! I headed over to Bed Bath and Beyond to take a look at what my options are out there.

You know, I never realized until now that there are some very plush shower curtains out there! The one I settled on is made out of 100% polyester, but it feels unnaturally good! Very fabricky, not plasticky!

I bought it, gave it a try and lo and behold, it worked out great! It blocks out just enough light to not cause a glare problem, and yet, still lets enough sunlight into the room to make a very distinctive "warm glow" that I find very soothing!

Yeah, so the idea is crazy, but I really love how it turned out! (Either that, or I'm just easy like Sunday morning.) Of course, I can't simply describe this with just words alone, so here's a quick picture of my room (taken at night).

Here's the curtain pattern that I selected.



Oh yeah, and here are the leftover hooks that I used.

I found a few people I've known since back in high school, and it's interesting to see more recent photos of them, as well as a glimpse of where they might be today.

I could be wrong (because they'd have to approve me for me to be able to see their profile) but it seems like they've moved on to much bigger and better things. One of them works at Microsoft now. Another graduated from Wesleyen and yet another graduated from Havard. One of them, surprisingly enough, ended up in the same city that I am in!

But when I look at this, I can't help but feel that somehow I've become a colossal failure. I mean, I graduated high school with honors, and even got special mention by the Principle himself. And yet, these people seems to have done so much better. Where did I go wrong? Why am I a complete screw-up?

I'm sorry, perhaps it's the late night talking, and perhaps it's the fact that I can even doubt myself like this that partially answers my own question. I don't know.

But it doesn't change reality. Good or bad, thick or thin, I still must go on.... I still have to live my life. I just... wish I amounted to something more that's all.

LinkedIn is timing out right now. Not entirely sure why, but I'm going to see how that works out before I decide on what I want to use in order to establish an online resume. That was the original intention anyway, before I got side-tracked and started looking up people I used to know. Hehe. Sigh.

Monkeymama's entry made me realize that I did a year-end update, but didn't update my monthly in NetworthIQ.

Wow, I'm actually shocked, but my December turned out to be a pretty substantial jump. The stock market staged a rather nice relief rally recently, but the overall trading volume has been so low that I frankly can't take it seriously. Individual investors have been scared away, and institutional has been on vacation. I am bracing myself for a January slaughter, and I recommend others to do the same.

This light trading is also the reason why I haven't touched stock trading at all in the last month. I just went straight into hibernation. That and I just didn't want to be involved in the automaker bailout, although hindsight being 20/20, there was a point where I felt relatively confident that they were going to get bailed. In retrospect, I should have played that. I shouldn't let my personal opinions in the matter cloud my trades. But then, it wasn't a bad idea to stay out at this point anyway.

Speaking of stock trading, I was watching Jim Cramer's Mad Money on MSNBC not too long ago, and he was talking about how it might not be a bad thing to do a little bit of speculation on the side. It keeps you interested, motivated, learning the market and the economy at large, and frankly, that's not a bad thing so long as you do it with money you can afford to lose.

You know what? I fully agree with him! So long as you're not betting the farm or even your retirement, a little bit of cat and mouse wouldn't hurt.

But again, I'm also in no rush. I want to see how January turns out. I am beginning to learn that it's not the quantity of trades that matter, but the quality of the trades. After all, it's better to made a few good calls rather than several bad ones, especially when you factor in trading fees. But don't worry Jim (Cramer)! I'm still in the game! 2009 is a whole new year for me to lose Mad Money! Heh.

"What would you do if you had received $10k? Or $100k? Or $1 million?"

Ah, those question never seems to get old do they? How nice it would be to dream. Oh, don't get me wrong though. I'm not complaining. It never gets old for me either.

Unfortunately, I think many overestimate the buying power of their windfalls....

For example, a common response to the windfall question is, "I'd take some and buy a reasonable car." Certainly, it would be wise to not have a car payment, but the expenses doesn't stop there, right? At the very least, you'll still need money to put gas in the tank, oil changes, tire replacements, insurance, tag, inspection, so on and so forth. That too is a part of the total cost of ownership, and wouldn't it be nice to be able to pay that with your windfall as well?

And how much does all that add up to? Well, for the sake of this conversation, let's just assume that it's an average of $200 per month, or $2400 a year. I'm low-balling this by the way, and some could be paying that much on insurance alone.

Now, because this is a frequent, recurring expense, it's going to have to be in some kind of taxable investment in order to generate a monthly income. Let's pretend that you can find an average of 4% somewhere fairly guaranteed.

That means you'll need an investment principal of $60,000 to generate about $200 a month at 4%. Yikes.

Now, I admit, that's a concept in generating the money in perpetuity. While I love the idea of perpetuity, in real life, it's not easy to achieve at all. But if you really care about perpetuity-- which again, would really be nice-- then you'll also want to factor in the historical rate of inflation, which could be another 3%. But to be nice and continue low-balling this figure, I'm going to skip this part.

What we can't get away from is the fact that the interest will also be taxed. Let's again make this easy and low ball the capital gains tax at, oh say, 15%. The capital gains taxes on the interest then is $360, which means the total passive income you have to generate each year is $2760. That increases the investment principal you need to more like $70k total.

Whew! Scary. Are we done yet? Sadly no, because realistically, our car can't last forever right? But it would sure be nice if our car fund also has the power to generate enough money to replace our car as well. And how much would that be?

Let's pretend that you want to buy a $10k car every 10 years, or $1k of extra income each year. To be nice, let's pretend you found a way to minimize your taxes, and feeling especially generous, I won't factor that in. Aren't I a nice low-baller? So, you "only" have to add an additional $25K into your car fund, pushing up the total principal to about $95k.

Now, let's revisit the windfall question again: What would you do if you received a nice windfall of $100k? For me, based on the above, I would simply say, "Well, I'd buy a car." and that's it. Hehe. And it wouldn't be a bad way to go either because cars are a terrible depreciating asset to begin with, and you'll always have a car knowing that you'd never have pay a single dime in car loan interest again.

But now, imagine how much money you'll need to cover the rest of your life's expenses. Just the thought of it is enough to make this man's skin crawl.

I suppose if there is a moral of this story, it would be not to underestimate the amount of money you really need just to survive. I think not realizing this is why so many lottery winners fail in the end. It also illustrates the tremendous power of earned income.

I happened to be tinkering with a free illustration program, and made a chart for somewhere else. Anyways, I thought it'd be fun to share it here as well:



And by the way, it's just making a very basic point that it's important to have a stated goal first, because your goals are what determines the best type of saving and investment bucket to use for that goal.

Also, please realize that it's just a simple example, not in any way set in stone or is entirely accurate. For example, I'm not really using a Roth IRA entirely to fund a house, although part of the money can and will probably come from that....

Kind of a poor play on words, but I thought that I'd take some time to take a quick look at the idea of buying a house again.

My thing is that I really, really don't want to pay a whole lot for a house at this time. The idea is to have a "starter home" that meets my needs. Then, maybe some day when I build up enough savings, perhaps then I will afford what I really want.

But first thing's first I say.

Using Zillow, I've narrowed it down to four potential candidates. All of them are cheap condos in the $70k to $80k price range. However, they are near a college campus so they should be able to hold some kind of value.

I then went over to

mortgagecalculator.org to get an idea of what I can expect in terms of monthly payments.

Can I just say that, when the total cost of ownership is calculated, it's absolutely frightening? Even on a 70k property, by the time you finish paying, the final cost would be more like 125k! Wow! WOW! I've looked at the numbers before and know what to expect, but it still stuns me every time I see it.

It's also why I THANK MY FAMILY to be able to live rent-free right now. The financial impact of this temporary arrangement is immense, and I do not want to waste it! I'm going to save as much as I can and re-visit my options for increasing my earnings!

Let me warn you up front that this is a parody but that it could be very politically incorrect. Still, it's also too funny not to share.

Here's Hitler and the Housing bubble.

Have I mentioned how much I love overtime? Only the umpteenth time? Heh.

This week has been nothing but overtime. It's almost sickening, sometimes getting home with just enough time to shower and then go to bed.

But I'm not complaining! In fact, I wish I could work overtime more often.

On a separate note,

what do you guys think of this? Here's his rather provocative opening quote, "The wrong way to think: 'spend less than you earn.'"

Basically, the author believes that we should focus on earning more rather than spending less, because there's always a limit on spending less.

But to me, it's like debating that one arm is more important than the other arm. Why? Aren't they BOTH important? Shouldn't we all do BOTH? Earn more AND Spend less?

To me, it's almost as comical as the popular Miller beer commercial, where people argue over which is more prominent, "Tastes Great" or "Less Filling". Only, these blog authors are actually serious. Personally, I don't see why such hair-splitting is even necessary.

I don't know, what do you guys think of it?

I saw this fun checklist elsewhere, and decided to copy and paste it here to share. So, what do you think? Could you "survive"?


Could you survive in middle class?
1. I know how to get my children into Little League, piano lessons, etc.
2. I know how to set a table properly.
3. I know which stores carry the clothing brands my family wears.
4. My children know the best name brands in clothing.
5. I know how to order in a nice restaurant.
6. I know how to use a credit card, checking account and savings account, and I understand an annuity. I understand term life insurance, disability insurance and 20/80 medical insurance as well as house, flood and replacement insurances.
7. I talk to my children about going to college.
8. I know how to get one of the best interest rates on my new car loan.
9. I understand the difference among the principal, interest, and escrow statements on my house payment.
10. I know how to help my children with their homework and do not hesitate to call the school if I need additional information.
11. I know how to decorate the house for the different holidays.
12. I know how to get a library card.
13. I know how to use most of the tools in the garage.
14. I repair items in my house almost immediately when they break, or know a repair service and call it.


Could you survive in poverty?
1. I know which churches and sections of town have the best rummage sales.
2. I know which rummage sales have "bag sales" and when.
3. I know which grocery stores' garbage bins can be accessed for thrown away food.
4. I know how to get someone out of jail.
5. I know how to fight and defend myself physically.
6. I know how to get a gun, even if I have a police record.
7. I know how to keep my clothes from being stolen at the Laundromat.
8. I know what problems to look for in a used car.
9. I know how to live without a checking account.
10. I know how to live without electricity and a phone.
11. I know how to use a knife as scissors.
12. I can entertain a group of friends with my personality and my stories.
13. I know what to do when I don't have money to pay the bills.
14. I know how to move in half a day.
15. I know how to get and use food stamps or an electronic card for benefits.
16. I know where the free medical clinics are.
17. I am very good at trading and bartering
18. I can get by without a car.


Could you survive in wealth?
1. I can read a menu in French, English and another language.
2. I have several favorite restaurants in different countries of the world.
3. During the holidays, I know how to hire a decorator to identify the appropriate themes and items with which to decorate the house.
4. I know who my preferred financial advisor, legal service, designer, domestic employment service, and hairdresser are.
5. I have at least two residences that are staffed and maintained.
6. I know how to ensure confidentiality and loyalty from my domestic staff.
7. I have at least two or three "screens" that keep people whom I do to wish to see away from me.
8. I fly in my own plane or the company plane.
9. I know how to enroll my children in the preferred private schools
10. I know how to host the parties that "key" people attend.
11. I am on the boards of at least two charities.
12. I know the hidden rules of the Junior League.
13. I support or buy the work of a particular artist.
14. I know how to read a corporate financial statement and analyze my own financial statements.

Although the end of the year is not here yet, by now, I have a pretty good idea of where things are at. And I'm pleased to say that the year turned out better than I had hoped!

Originally, I'd be happy if I could just max out 401(k) and Roth IRA, and if I'm really lucky, I'd also be able to beef up my emergency fund.

Well, both are already maxed out, and if all goes well, my emergency fund should hit the full 12 month level by the end of this year! Yes!

I actually kept a lot of liquid on hand because I thought I was going to have to pay a bunch of legal fees (due to issues that I didn't think could be resolved amicably with my ex). But since that didn't happen, that money is able to stay as a part of my emergency fund.

Anyways, next year is a similar set of goals, but because the emergency fund should be full soon, my next goal is to expand towards a car replacement fund. We'll see how that goes.

For next year, I might also open up a separate Roth IRA, probably with Vanguard and their index funds.... Honestly, the amount of "play money" I have for stock trading right now is enough, and though I've had a miraculous year, I really don't want to risk any more of it.

Oh yeah, and 401(k) contribution is going to go up next year by another $1k, so I have to adjust my contributions, which will affect my budget a little bit. But otherwise, I think that's basically it.

Unrelated side note: Some employees are throwing out more plants. I thought long and hard about saving them, but... these ones are harder for me to maintain. Sooo... sadly, I've decided to let it go.

There was another set of pothos that an employee wanted to throw away. It was indeed in very sad shape, but at least one pot was still alive and well, and the rest was clinging on to its dear life.

So, when I found out about it, I asked if I can take it home with me. I don't know, the idea of throwing away even plant life without trying to save them just didn't sit well with me.

I had to fill out paperwork just to remove "office property", even if it was slated for the dump. But it's worth it.

I don't have a picture of it right now, but I spent last night pruning and watering it. Hopefully, it'll have a speedy recovery.

But hey, free house plants!

If there is one silver lining to this bleak economy, it is that companies out there are just dying for your business.

My personal favorite is Bed Bath & Beyond right now. They used to send 20% off single item coupons, which isn't that bad in itself, but now, they're also resorting to $10 off for at least $30 of purchases, regardless of how many items you pick up.

That's a 33.3% return! Guaranteed!

I've already went on a happy little spree with the first one, buying up basic toiletries such as toothbrushes, toothpastes, and shampoo. But seeing as how BB&B is nice to send another one of these coupons, I've decided to go back for more!

This time, I may hit the soaps, TPs, and paper towels if they have them. I don't know how long they intend to keep this madness up, but if they keep sending it, I'll keep buying! I'll stock the entire closet full of TPs if I have to. Woohoo!

The was the question

Smart Money magazine posed to the general public, and here are some of the humorus answers:

Example 1:
$4600 - 4 Front Row Outfield Season Tickets, Tampa Bay Rays
$2400 - 1964 Fender Deluxe Reverb Guitar Amp
$2000 - 1996 Fender Relic '60 Stratocaster Guitar
$3000 - 1968 Gibson Dove Acoustic Guitar
$2000 - 1942 Gibson Banner Logo LG-0 Acoustic Guitar
$7000 - 1982 Fender USA Reissue 62 Strat, 57 Strat, 52 Tele, 62 Jazz Bass
$3000 - 1975 Gibson Les Paul Custom Guitar, White
$2000 - 1993 Gibson '57 Reissue Les Paul Guitar, Goldtop
$2000 - 1991 Gibson Les Paul Classic Guitar, Cunburst Flametop
$3500 - 1968 Gibson ES-335 Guitar, Cherry
$3500 - 1964 Gibson SG Special, Cherry
$2000 - 1962 Hammond A-100 Organ
$40,000 - 1/3 Acre Lot w/Canal Access To St John's River, Florida
$15,000 - Used Houseboat
$2000 - Small Boat, 2 Kayaks, Fishing Gear
$1000 - 2 Metal Detectors
$3000 - 2000 Ford Windstar Minivan

Example 2:
Own a stake in some Asian massage palors in New York, New Jersey. They reap $4million a year Tax free!
Then buy the investments.

Example 3:
I would pay all my bills and take all the rest and bury it in my back yard!

Example 4:
Invest in a new prtfolio, last year's was up 137%. Thanks to your magazine.
Leave my wife and run away to a tropical island with my girlfriend.

Ok, maybe that last one isn't so humorous. In any case, there are also very intelligent answers, ranging from the conservative to the aggressive. So, if you were to receive 100k tomorrow, how would you manage it and why?