Black Friday Fast Approaching

Black FridayI think I took last year off, but in the past, I’ve always been in the parking lot of Walmart at 4:30 am waiting for the doors to open on the Friday after American Thanksgiving.

No, I don’t line up outside in a lawn chair with a thermos full of hot cocoa. In fact, I don’t line up at all. I sit in my nice warm car (with a can of coke) and walk in at a regular pace once they open the doors.

Not once, using this method, have I not been able to get my hands on one of their “specials”.

Sure, they only have 10 of the fancy televisions, or five of the laptops in stock at each store, but every year, I’ve been able to get to them before they’re gone. (Hint — they usually hide the “good” stuff in the aisles of the women’s clothing department).

The funny thing is, even with these opportunities, I’ve never bought anything from Walmart on Black Friday.

Part of it is that I’m a morning person anyway and it’s neat to have “company” for a change in the morning. I also think it has something to do with my tendancy to want to be “part of the excitement” — even if it’s not my own.

Anyway, with Thanksgiving rolling around next week, the Christmas season is nearly upon us and that means it’s time to start making plans to ensure that it’s a non-debt incurring event.

I remember last Christmas being pretty low key in our house. We’d just gotten married and the roof of our house had just been completed — though the payments for it had just begun. There just wasn’t any money around to splurge on the holidays.

This year, the situation is looking a lot different. I don’t forsee any huge expenditures in the near future. Maybe six-seven months down the road, but I’ll get to that later…

Christmas could be a big event this year — under the new budget, the money will be there, if needed, but I don’t think we’ll take advantage of the available cash. I’d have to ask my wife, but looking back, I didn’t have a problem with how Christmas went last year. No, there wasn’t a lot under the tree, but the payload of new socks is still holding strong today — and that’s good enough for me.

So, with that, it should be business as usual over the holidays in our battle to pay down debt.

Okay, fine, I want a Wii — but I know it will never get the use to justify the cost in our house.

Posted on November 14th, 2007 at 8:13 am by Brainy Smurf
Current Events, Bargains | No Comments »

What Drives the Markets Down?

Naive Lemmings?

Could it be the the Clairvoyant Prashant Bhatia? Who?

You know, with all of the headlines on CNBC about the “Credit Crunch”, “Housing Slump”, all around doom and gloom, it’s tough to feel good about the financial future. I’ve always kinda wondered what causes these huge dips in the markets and one of the articles on CNBC raised my brow.

This one is about E*Trade’s falling share price due to an analyst downgrading the stock.

Read that again.

Yep, “an” analyst.

One guy, from a third party, can come in out of no where and wipe you out.

Citi Investment Research analyst Prashant A. Bhatia cut his rating on the stock to sell from hold and lowered his price target to $7.50 from $13. E-Trade shares were down 34% at $5.65 in recent premarket trading.

Bhatia said there’s a 15% chance that E-Trade will declare bankruptcy and said management may be forced to sell loans and securities at significant discounts.

Um… okay.

I guess what bothers me the most is that Bhatia works for another investment group. A rival of E*Trade, to a certain degree. And if memory serves me correctly, it was just last week that Citi was in the crosshairs.

Pretty nifty way to deflect attention, if you ask me.

Further, being that these are “number” guys, how on earth did he come up with a stat like “there’s a 15% chance that E-Trade will declare bankruptcy?”

Seriously.

He’s not much of a soothsayer in my book. C’mon, 15%? Not a real definite prediction there…

I mean, I’d say with certainty that I have a 15% chance of getting food poisoning today — but that’s the thing, that’s such a low percentage that I’m not going to let it bother me.

But the scary part is that Bhatia’s comments actually caused E*Trade to plummet.

The way the markets sway on tiny little snippets like this — it’s unreal?!

Are they as naïve as lemmings?

Posted on November 13th, 2007 at 8:50 am by Brainy Smurf
Rants, Current Events | No Comments »

State To Help Subprime Borrowers

From today’s Hartford Courant…

The state of Connecticut is unveiling a $50 million program to help first-time homebuyers caught up in the subprime mortgage mess.

The Connecticut Housing Finance Authority is offering to help low- and moderate-income borrowers by refinancing their adjustable rate, subprime mortgages into 30-year, fixed rate loans. The authority will begin taking applications on Dec. 10.

Subprime mortgages are typically targeted at borrowers with risky credit.

First-time homebuyers who cannot make their mortgage payment and currently live in the home can apply for the refinancing. The housing authority will work with the homeowner to make sure the new mortgage payments fit with their budgets.

About 300 to 400 families are expected to be helped by the program.

This really irks me.

Not just from a taxpayer perspective.

Take the $50 million and divide it by the 400 families which the program will help. That works out to $125k for each family.

That’s about what I owe on my home right now.

But you know what? Because I was smart when I went out and found a mortgage as a first-time homebuyer, I didn’t go for an adjustable rate. I was informed of the risks, and I wasn’t willing to take them. Essentially, the risks outweighed the benefits.

Based on the past few months, it was a wise move.

But now, it was evidently the wrong move. I could have been paying a nice limited time offer promo-rate mortagage bill all this time (interest-only would have cut my mortgage bill in half?!) and the State would have come to bail me out in the end. That… is not right.

I don’t know the specifics of the program, but I truly hope that these folks end up paying well beyond the traditional 30 years. And that the little equity they may have in their homes is wiped clean.

Posted on November 8th, 2007 at 3:57 pm by Brainy Smurf
Rants, Current Events, Mortgage | 1 Comment »

Debt Payment Plan: So far, so good…

SmurfJust one week into the new debt reduction plan and things are going just fine.

Actually, it’s been a pretty uneventful week on the financial front — ignoring the markets, of course.

I’ve sent payment out for the three smaller debts already, tomorrow’s paycheck will put a dent in the larger debt, and by the end of the week, according to the debt snowball payment schedule, I’ll be done for the month of November.

That probably means the $2000 per month number was too conservative on my debt reduction plan. Whatever — this way I’ll still have the cash cushion I’ve be *so* wanting for the last few months.

Attacking the beast from both sides, expenses are also way down this month.

November will be the first month where I’ll notice the lack of a cell phone bill. The jump to Virgin Mobile was a great money saving move. Instead of a $40 bill to Verizon each month, I’ll just be sending Virgin $20 every 3 months.

At the end of October, after much delay, we *finally* moved all of our stuff out of the storage unit we had been renting for nearly a year. We’d originally rented it to clear out the attic before we had the roof done last December. Before we knew it, it was just an extra off-site closet costing us $140 per month. Not any more.

In addition, the annual Escrow Analysis that Countrywide did on my mortgage lowered my payments $40 each month.

All of these together, in the span of one month, trimmed $220 from my monthly expenses. Over an entire year, that will be $2640 more that I can throw at debt, or even better, savings.

Posted on November 7th, 2007 at 9:16 am by Brainy Smurf
Finance, Cutting Costs | 2 Comments »

O Canada!

Canadian LoonieWow.

This morning, the Canadian dollar opened at 108.17 cents US, up 0.99 of a cent from Monday’s close. The U.S. dollar stood at 92.45 cents CDN, down 0.85 of a cent.

As a proud Canadian, that puts a smile on my face.

At the same time, as someone who lives in the States and intends to long term, it makes me a little uneasy. In the grand scheme of things, it’s probably not a good thing when the pendulum swings this direction.

But again, on the upside, it makes it even nicer when co-workers toss their “worthless” Canadian change my way. Oh, if they only knew.

Too bad it’s so difficult to exchange Canadian change at a US bank… though if the exchange rate gets much higher, I just may have to stop in and ruin an unsuspecting teller’s day!

Posted on November 6th, 2007 at 9:54 am by Brainy Smurf
Current Events | No Comments »

Making Your Mark?

Slim GoodbodyFrom an article in Forbes last week by Steve McGookin:

With the changing nature of today’s workplace–and workforce–it’s a fair bet that there are plenty of questions you ask every day that maybe your parents didn’t.

One of them might be: “Is my tattoo holding me back as I climb the corporate ladder”?

And perhaps unsurprisingly, the answer is: It depends where you work.

My answer? Well, it certainly won’t help you climb the ladder.

With surveys indicating that anywhere between a quarter and a third of all Americans under 40 now have some form of body art–what the Pew Research Center calls the “Look At Me” generation–the adornments that traditionally marked a rite of passage have increasingly become part of society’s mainstream. A 2003 Harris poll also showed that roughly the same percentage of men and women were being tattooed.

But is body art still frowned upon in the workplace? And does it work against you from a career perspective?

Obviously company policies will vary, as will office dress and appearance codes. According to a study a few years ago by CareerBuilder and Vault.com for Salary.com, 42% of managers interviewed said that their opinion of someone “would be lowered by that person’s visible body art.”

Yet about the same number of managers, 44%, said they themselves had tattoos or other body art that was not “visible.”

I love the double standard of the “Look at Me” generation. I’m a professional by day, wannabe tramp/ex-con by night. It’s almost laughable.

Attitudes will depend on your industry and on your company. The popularity of television shows like Miami Ink and its subsequent spin-off, L.A. Ink, as well as the prominence of body art among sports figures, singers and other entertainers have meant a wider ubiquity and acceptance for adornments.

So fields that encourage individuality and creativity, clearly, will be more open to personal expression. But in an environment where conformity is frequently the norm, especially in many client-focused workplaces with a high level of interaction with the public, you’d expect corporate policies to be somewhat more restrictive.

Companies have to decide what image they want to present, both externally and internally. Where they draw a line is often what they consider “offensive.” So as well as the industry and employer, acceptance can also depend largely on the art itself.

The key word seems to be “appropriate”–but it seems more true than ever that there is a tolerance in the modern workplace for personal expression through discreet body art, particularly, according to the American Society for Dermatological Surgery, where no one sees it if you don’t want them to.

“A good tip is to place it in an area that can be covered by clothing traditionally worn in the workplace. For example, a belly button piercing can easily be covered but shown off if you wish, whereas an eyebrow piercing can not.”

What if, for whatever reason–career-related or not–you experience “tattoo regret”? According to the American Academy of Dermatology, it’s not unusual for a removal process to take several sessions and cost anything up to 10 times what you paid for the original artwork. Surveys seem to suggest that in many cases removals or amendments are because of someone’s name.

Businesses like Dr Tattoff or Rethink Your Ink offer increasingly sophisticated removal techniques.

And with the growing numbers of outlets–there are now more than 20,000 parlors in the U.S.–tattooing itself is an expanding career area. You can find some tips on getting into the field and improving your skills at ExpertVillage, which–since like any other art form it’s obviously better to see than be told–features a series of videos by Arizona-based artist Rick Wycoff.

So if you’re thinking of becoming one of the many Americans every year who get a new tattoo, how your boss will react–if he or she ever sees it–is just one more thing you’ll have to think about. But, of course, the chances are if you have a tattoo already, it’s unlikely you’re going to feel any differently about it by being told it might hamper your prospects.

I dunno. Even in my 30+ year lifetime, the amount that society has spiralled downward is a little frightening. Earrings on men, make-up on men, plastic surgery for everyone, coloured hair, mohawks, facial piercings, facial tattoos, botox, cross dressing, sex changes, etc…

Really, if you think about it, guys like Boy George and Mr. T were way ahead of their time. They’d be accepted now as “normal” everyday folks. That’s downright hilarious.

In some ways though, I do look forward to the day I have to take my children to swimming lessons so I can see the regret on the faces of all of the aging parents with huge angel wings on their backs… All I’ll have to be embarrassed about is a farmer tan and maybe a little extra weight.

On the brightside, maybe the next Slim Goodbody won’t need to wear a spandex body suit! Wouldn’t that be a sight!

Posted on November 5th, 2007 at 12:27 pm by Brainy Smurf
Rants, Retro | No Comments »

Britney Spends Big & Saves Nothing

Britney SpearsFrom an AP story last week that puts things in perspective:

The pop princess is a big spender.

Court papers released Thursday in Britney Spears’ custody dispute with Kevin Federline show she spends lavishly on clothes and entertainment and doesn’t save or invest any of her roughly $737,000 monthly income. Spears’ monthly expenses include $49,267 in mortgage for two houses, $16,000 for clothes and $102,000 on entertainment, gifts and vacation, her financial declaration shows.

Although she’s often photographed eating fast food, Spears declares she spends about $4,758 per month dining out. Meanwhile, she spends zero on education, savings and investments and gives $500 a month in charitable contributions, the documents said.

She has to pay her ex-husband $15,000 a month in child support and $20,000 in spousal support. Spousal support will end Nov. 15.

As for Federline, his biggest monthly expenses include $7,500 in rent and $6,000 in security, his financial declaration shows.

The dancer-turned-rapper has a comparably modest monthly budget for clothes - just $2,000. He also spends about $5,000 on entertainment, gifts and vacation, and $1,500 eating out.

Federline, earned more than a half-million dollars in 2006, mainly from entertainment and endorsement deals but grossed only $7,436 that year. He receives $15,000 a month in child support.

It blows my mind that someone from such humble beginings, and someone who didn’t exactly “fall” into the money suddenly, is so careless with their wealth…

Seriously, you have to wonder who her agent is, or was, to not advise her to put a little aside for when her career comes crashing down. I mean, she must have nearly 16 years left of those child support payments — a cool $2.8 million.

There is a bit of an unfair negative slant to the story though…

Her $4758 per month dining out budget sounds really high, but if you divide that out, it works out to around $52 per meal. Yeah, that’s a lot, but even I’ve had a more expensive meal than that from time to time. For a “star” with an income that high, I don’t think that number is real out of line or even irresponsible.

The clothing budget doesn’t seem too crazy either. Okay, yeah, for me, my yearly clothing budget is likely under $500, but I’m in a position where I can get away with wearing the same pair of pants 3 days per week. That, and my pants aren’t custom made to fit my butt. I’d imagine that’s not cheap.

I also wasn’t too keen on how they threw in the “gives $500 a month in charitable contributions” line in there like it’s a bad thing.

I never like it when people are made to feel guilty for not giving to charity. Or giving a small amount, To each his own. But I would guess that $500/month is a lot more than your typical American. I’m not going to fault her for that.

But c’mon Britney… You have to invest something?!

(And in some ways, you need to give K-Fed some credit. He could live lavishly for the rest of his life on the child support checks alone…)

Posted on November 4th, 2007 at 9:47 pm by Brainy Smurf
Current Events | No Comments »

I Can Afford What?

This can be yours… for $816 per month
On the “Your Money” message boards over on MSN Money, there has been a “Please Explain how Folks Afford these Homes” discussion going on for the past few days.I, myself, often wonder that exact same thing. You know, seeing people, even a few years younger than me and my wife moving into the new developments full of McMansions with 3-car garages, finished basements, and 30 foot ceilings in the entryway. Where did I go wrong? Did I make a wrong turn somewhere?

Once you make your way through the typical “Get a better job” or “Move somewhere cheaper” comments that some of the knuckle-draggers over there post in every single thread, there are some pretty decent real world examples among the responses.

One of the eye openers for me was that a number of people whole-heartedly agreed that, for instance, “a $267k home on a $100k income is quite affordable”.

Um… it is?

My first response to that, and a few other posters mentioned it as well, is that after taxes, a $100k income is really only around $60k. On top of that, where I live, insurance and property taxes add an additional $500-700 to the mortgage payment every month. For the fictitious $267k home, that just doubled the mortgage payment.

Among the reponses:

The payment for a 200k loan @ 6.5% is $1264/mo. You can’t afford that at 100k/yr? What else is going on?

I agree, with an income of $100k, you should be able to “afford” a $300k purchase, with about $250k mortgage (about 2.5 x your salary)

Am I crazy? Or are these folks crazy? Are the 20-somethings moving into these beautiful houses the crazy ones? I’m really confused.

On thing I will say is that, even with a combined income over $100k, my wife and I never even would have considered looking at homes in that range. No way. Not a chance. Why?

We can’t afford it.

I see that, “2 and a half times your salary” line thrown about from time to time when it comes to shopping for a home. I’m glad I didn’t take that seriously when I bought the house we live in.

I’m also glad that I had an honest mortgage agent that informed me that just because the good faith estimate says it’s only $816/month, when you get the first bill in the mail, expect it to be double that… cause it was.

On the other hand, the discussion on the message board got me questioning my own expenses…

I mean, your mortgage is supposed to be your biggest monthly bill by far, right? Ours, well, it isn’t.

Don’t get me wrong, it accounts for a large percentage of our monthly income, but could we afford a mortgage that was, oh, say twice as high?

I suppose we *could* do it, but why on earth would we?

I’ve come to the conclusion that I’m not crazy.

And I made one of the wisest decisions in my life inadvertently. Hooray for me!

Posted on November 1st, 2007 at 3:41 pm by Brainy Smurf
Rants, Mortgage | 1 Comment »