Author Archives: Money Reasons

About Money Reasons

A offbeat personal finance blogger that comes from the tech world.

Is Blogging The Ultimate Mobile Business Model?

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As frequent readers might know, I sometimes go to local coffee houses to write articles for my blog.  I usually go to a small local chain called Arabic Coffee House, but today I am going to Panera Bread instead because I’m meeting a friend for lunch and it just so happens that Panera is one of his favorite restaurants for lunch.

Panera Bread

Panera

Now you might be thinking, “What does this have to do with Business or Personal Finance”?

Well, if I were a full-time blogger, the point is I can work from anywhere that an internet connections exists.  Today, you can find internet access points almost everywhere!  I’ve even heard of entire cities providing internet access for their community for free, talk about flexibility!!!  This means I don’t have to incur the cost of having a traditional office (just a post office box).

Some of you might be thinking, what about a phone line?

Well, my phone number is a Google Voice phone number, which is free and very powerful!  It’s powerful because the Google number is configurable to ring any phone I configure the call to route to within Google Voice, even multiple phones (cell or land-line).

Back to the friend I’m meeting:

Unfortunately, my friend lives over an hour away, so it will take him a while to meet me at Panera.  If I had a regular business, the time waiting for him would be mostly wasted, but this is NOT so with my blogging business!

Here is what I am doing while waiting:

  • Writing:  I’m writing this article (obvious huh)…  That is one of the best feature of blogging!  All I need to write an article is: my brain, my laptop (or similar device), and my hands.  I don’t even need an internet connection to write the articles!  Granted I can’t post my article without an internet connection, but posting to my site only take a few minutes tops.
  • Twittering:  Checking my blog’s twitter account, responding to tweets, retweeting interesting articles, and later tweeting this article once it’s posted.  Twitter didn’t start out this big when I started blogging, but now I’m very active on this social channel.
  • Emailing:  I’m responding to emails that I have received in my mailbox.  I get a constant stream of emails now, so this has become a critical part of blogging for me.
  • Analytics:  Periodically checking my stats.  This is generally considered bad, but really it’s a quick and easy way to check to make sure my site is up and functioning normally.  It’s just a quick refresh of the screen.  I also look for abnormal behavior!  I’ve used these stats to block bad guys hitting my site before.
  • Facebooking:  Facebook, activities…  I’m just starting to get into this, but it’s one of the largest social channels out there!
  • Thinking:  Learning to think and observe better in public.  Thinking in my guest room at home is great, but sometimes going out in public, and just watching and listening (or typing and half listening) can spark an idea for a new article (I say this because I came up with two ideas while typing this article).

<My friend has arrived, so I will stop here and finish up this article at home>

It was a great time meeting my friend (I haven’t seen him in over a year), and now I’m at home and wrapping up this post.  That’s another nice thing about a blogging business, I don’t have to worry about picking up where I left off.  I just open my article and go to the bottom and continue to type the article out!

So, I hope I demonstrated that blogging is the ultimate mobile business!  An added perk is that in addition to being the ultimate mobile business, it’s also cheap to start and run!  I love these win-win scenarios!

Cheers,

MR

Lifestyle Creep Checkup

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Well, I decided to give myself a Lifestyle Creep checkup and report back my findings!

Now a lot of you are more familiar with the phrase: Lifestyle Inflation, but I prefer the more precise phrase: “Lifestyle Creep”. The two concepts are slight different and to me the more accurate representation of my experience is Lifestyle Creep. If you are interested in the differences between the two terms, check out my article called “The Difference Between Lifestyle Creep and Lifestyle Inflation“.

Before I go into my lifestyle creep checkup, let me discuss what has enabled lifestyle creep to come into my life in the first place.

At the beginning of 2010, I finally became totally debt-free! By totally debt-free, I mean no credit card debt, no car loans, no home mortgages or any other type of debt! Eliminating all of my debt increased my income stream by so much at I wrote an article about it called: Paying Off Your Mortgage is Like Working at a Second Job! This increased discretionary income stream is the source that has been fueling my slow lifestyle creep advancement. Now onto the checkup!

My Lifestyle Creep Checkup

  1. Increase in more expensive vacations, versus in the past occasionally skipping vacations for certain years. (I’m okay with this, and I totally accept and want this!)
  2. Increased consumption at gourmet coffee shops (This lifestyle creep element has to be stopped or reduced!)
  3. Lack of concern about sudden expenses. My wife got a speeding ticket recently and we just below it off. In the past, we should try to account for the expense (not to mention the increase in our car insurance payments). (complacency is enemy of those trying to become wealthy, this is not acceptable!)
  4. Kids are entered into sports without cost considerations (I’m half and half on this. If the program offers value to my kids, then “lifestyle creep” be damned, if not then I need to cut it out!)
  5. Dinning out, multiple times during the weekend. Sometimes, we go out to eat up to three times in one weekend. (This is horrible! Need to sharpen the Axe)
  6. Both my wife and I go out and spend money with friends on movies, lunch, golf and special trips. (I’m half and half on this too, some lifestyle increase is good since we derive a lot of value out of these experiences)
  7. I didn’t carpool with a friend from work when gas prices went over $3! See this post: Carpooling to Save Money and Reduce Gas Prices! I found that I enjoy my personal time too much to share it anymore. Plus, when I drive to work, I think of blogging ideas. (This is horrible, but I accept it anyway!)

Overall, for this past year, I would give myself a “B+” on my Lifestyle Creep Checkup, and here’s why:

  1. I’ve been able to pay my credit card bill in full each month.
  2. I increased my contribution to my 401(k) to near the max that is allowable. I didn’t max it out totally because of the unpredictability of bonuses and other extra monetary rewards.
  3. I’m participating on my employer’s ESPP! Read this article: Getting Over 15% Return By Saving Money In An ESPP for a way to make better money than the typical stock returns, with little to no risk (It’s been all up for me!). I consider this one of the more intelligent moves I’ve made recently!!!
  4. I’ve been able to make a little money by blogging. This is a win-win scenario for me because I get money for doing something that I really enjoy!!!

Lifestyle Creep Checkup Conclusion

Yes, I have some lifestyle creep in my life, but I’m still saving over 25% of my income and investing it. I’m also living a more balanced life and really enjoying my vacations without worrying about how I’m going to be able to afford them!

I will have to cut out some fat in my lifestyle if I want to remain debt-free, but I don’t think it will be that difficult to accomplish.

Hope you enjoyed my lifestyle creep checkup. How are you going, are you experiencing any such phenomena?

MR

 

 

Are Star Wars Lego Sets An Investment?

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Three Years Ago, We Started Buying Lego “Star Wars” Sets…

We bought my son the Lego’s Star Wars “Republic Attack Gunship” (model 7676) for almost $100.

Lego Star Wars Republic Attack Gunship 7676

Lego Star Wars Ship

At the time, both my wife and I cringe at the purchase price, thinking that it was money down the drain. At the time that was all my son wanted, that has since changed!  Oh I tried to push the XBox 360 or other cool things that I want… erh, that I thought that he would enjoy!  But he insisted that the Lego Star War “Republic Attack Gunship” set was the primary gift that he wanted for Christmas.  I was very surprised when he even knew the model number was 7676 (he got it on ebay somehow)!

So even though we didn’t want to pay close to a hundred buck, we bought it because that was one of the few things that he asked for.  I admit, once it came to the house, the packaging looked cool, and after he opened it for Christmas, it was pretty awesome putting it together, especially since the entire family helped.  This particular model has over 1,000 pieces and is actually very challenging and fun to put together.

A Room Overrun with Lego Star Wars Kits

Now my son is 11 years old, and has grown beyond the Star Wars Lego kits!  He still has an interest in Lego, and have a few Lego city models, but the Star Wars models have gone the way of Woody from the movie Toy Story where they just sit on a shelf in his room collecting dust… or did.  He has decided to take it upon him self to sell some of the Lego Star Wars models on eBay so he can get enough money to buy a decent laptop.  He told me that he wants to watch TV and play online computer games at the same time.  He studies this way too, and is still able to get straight As… go figure!

So after asking him if he was sure three for four times, I got online and decided to see what they were going for on eBay!

Legos Hold Their Value, and Then Some!!!

I expected to see prices from the range of $40 to a high of $75, but much to my surprised, they were going for $180 to about $200!  And for new ones over $200 and I even seen a few priced at $256!  I was amazed!  In three short years, the used models practically doubled in value!  Who would have guessed?

I suggested that if he wait, it might appreciate more by next year, but he thought that $200 was plenty for him!  Now we are going thru and checking to make sure all the pieces are there, and then we are going to list it on eBay (October and November are the best months to see toys on eBay).

Anyway, I thought it was impressive that a Lego Star Wars kit could appreciated so much in such a short time!

If you have kids that have Lego Star Wars sets, you might want to check the value of them just for fun.

Cheers,

MR

Last Day of Golfing For The Year

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Usually, I’m the happy-go-lucky type around friends.  I’m usually goofing off or just being crazy, childish yes, but still fun.

That said, this past Saturday, I was sick and it was obvious.  So when my dad called up to invite me and my son to golf, at first I said sure, my son would love to go.  My son really does like to play golf and he is pretty good for being 11 years old.

After my dad came up, I felt worse, but thought I’d tag along, just to see them play and enjoy the conversation.  Of course I took my golf clubs just in case…  As you might have guessed once I go there, I had to play too (sick but so what), so off we went.  Since I was lethargic and didn’t talk or joke around too much, I was able to focus and played my best game of the year.  How’s that for a twist!

I guess sometimes when you don’t have the energy for side distractions, you can concentrate and play a better game than your would normally, even when you are sick.  Go figure.

Overall, we had a great time, making fun of the bad swings that we all made, and cheering and complimenting each other on the great shots we had too.  It’s a fun process, especially when you don’t take the game too seriously.

 

Now on to interesting articles I read this week:

Watson, Inc:  Young People Avoiding Investing In Record Numbers –  This is a sad trend, but with unemployment so high among recent graduates, perhaps not to incredible surprising?  Mr. Watson does an excellent job of explaining the important of investing, especially if you are young!  This is a must read article if you a young person (or really any age)!

20s Finances: Obama’s Finances: How to Solve the Debt Crisis – Americans are left wondering how we as a country are going to get out of this financial burden. Read more about my proposal to solve the debt crisis that involves Obama’s finances.

Everything Finance: How to Save a Bundle on Your Auto Insurance – Car insurance is typically required by law. Most people pick their favorite company or the one their friend or family member uses and then set about paying their policy every 6 months. People often keep the same insurance company for decades, but doing so can cost you extra money.

Everyday Tips & Thoughts: Questioning the Panic Over Under-Water Mortgages – President Obama is amending the Home Affordable Refinance Program so those who are under water can refinance their homes. Is this new bail out really necessary?

Budgeting in the Fun Stuff:  Budgeting in the Undead Stuff –  What a fun article…  Sounds like they really know how to enjoy Halloween!

Prairie Ecothrifter: How to Save Money at the Supermarket – If you’re anything like most people, you’re probably feeling the pinch thanks to rising food prices. There is some good news though – you can bring your food shopping costs down with some careful planning. Here are some tips to help you to save money on your supermarket shopping.

Beating the Index: Investing in Oil: 5 Junior Oil Stocks for 2012 – Discover what makes these 5 junior oil stocks top picks for 2012.

Okay, enough reading, not to go out and enjoy when is left of the last few warm days of the season (at least in my neck of the woods)!

Hope you weekend was as rocking as mine was (minus the part about me being sick)…

MR