This is quite a Thursday-Friday-Saturday combination of events.  Thursday was the 200th birthday of both Abraham Lincoln and Charles Darwin.  Today is Friday the 13th.  Saturday is Valentine’s Day.  Let’s get a personal finance quick-hit on each!

Abraham Lincoln:  Preserve the Union

Lincoln knew that ultimately for the nation to succeed, the Union and it’s ideals needed to be preserved at all costs.  In his judgment, both the Civil War and Reconstruction of the South were necessary to move forward.  Nearly 150 years later, our Union remains solid.

In our own lives, we have many trials.  Money mistakes, family break-ups, fights, competition, recessions — they all take their toll.  Take Lincoln’s advice and preserve your ideals.  What fundamentals are  you willing to fight for to preservation of your financial Union? Is it preserving your marriage by communicating on money issues with your spouse?  Paying down debt to enable you to weather the storms that lay-offs and recessions bring?  The tenants of your faith which prompt you to help those in need?  Teaching your children financial responsibility so the fundamentals of your Union are passed on to the next generation?

Charles Darwin:  Survival of the Fittest

Darwin was instrumental in documenting the theory of natural selection.   Favorable traits are passed on as a need for survival, while unfavorable traits die off as they can’t compete.  We don’t need to have a debate on the theory of evolution to take away one huge concept:  the world is vastly changing, and we need to adapt or we’ll be left behind.

So what are ways you are adapting to survive in these tough economic times? In our household, I do contract work, so I’m working as many hours as I can to bank up money.  These project-based jobs do not last forever, and who knows when another will come up?  With the sacrifice of longer hours comes extra income, which we can use to pay off debts, build an emergency fund, and overall reduce risk to our household should our household income take a hit.

Americans are saving more.  It seems that with this credit crunch crisis, we’re getting back to the basics of getting rich slow, building wealth moderately, and saving money.  Get prepared — put aside those unfavorable traits and survive!

Friday the 13th — my 13th Post!

Well it’s my 13th post, and it falls on Friday the 13th!  I wish I could take credit for the stunning coincidence, but I can’t.    So is having a 13th post on Friday the 13th the digital equivalent to crossing the path of a black cat, breaking a mirror, or stepping on a crack?  Stick around and find out!

Do you have any superstitions?  Share them in the comments below!

Valentine’s Day

Yes, I made that heading red on purpose

With the big day of romance tomorrow, the pressure is on.  Do you have anything planned for Valentine’s Day?

Actually, the Lovely Miss H is taking a few single friends out to hang with tomorrow.  She’s a great friend, isn’t she?  Also a great wife, because I’m off the hook for coming up with plans!  We’ll have dinner out tonight and keep it low-key.  Besides, every day is Valentine’s Day with me, right H?

Any Valentine’s Day plans?  Do you feel like your significant other places unhealthy expectations on this holiday?

photos by:

chainedreactions

CATR

Zanastardust

geishaboy500

Personal Finance darwin, emergency fund, friday the 13th, fundamentals, lincoln, superstition

While the U.S. House and Senate near a deal on the 2009 Economic Stimulus plan, looks like the private sector is not waiting around for the government to fix all our woes.

Enter Mark Cuban, dot-com billionaire, HD television entrepreneur, and owner of the NBA’s Dallas Mavericks.  He has proposed to invest his own money into private-sector ideas that need funding to get them over the hump and begin making money.

Open Source Funding

To get the economy moving, there are a few stipulations attached to submitting a proposal for funding.  Primarily, it involves an open source funding environment — you must make available your business plan details for all to see online.  Also, business ideas must break even after 60 days and become profitable in 90 days.

Here is Cuban’s “rules of the game”, if you will.  Violate these, and receive a double-technical and get ejected from the game:

1. It can be an existing business or a start up.
2. It can not be a business that generates any revenue from advertising. Why ? Because I want this to be a business where you sell something and get paid for it. Thats the only way to get and stay profitable in such a short period of time.
3. It MUST BE CASH FLOW BREAK EVEN within 60 days
4. It must be profitable within 90 days.
5. Funding will be on a monthly basis. If you dont make your numbers, the funding stops
6. You must demonstrate as part of your plan that you sell your product or service for more than what it costs you to produce, fully encumbered
7. Everyone must work. The organization is completely flat. There are no employees reporting to managers. There is the founder/owners and everyone else
8.  You must post your business plan here, or you can post it on slideshare.com , scribd.com or google docs, all completely public for anyone to see and/or download
9. I make no promises that if your business is profitable, that I will invest more money. Once you get the initial funding you are on your own
10. I will make no promises that I will be available to offer help. If I want to , I will. If not, I wont.
11. If you do get money, it goes into a bank that I specify, and I have the ability to watch the funds flow and the opportunity to require that I cosign any outflows.
12. In your business plan , make sure to specify how much equity I will receive or how I will get a return on my money.
13. No mult-level marketing programs.

The Beauty of it all?

The beauty of it all is the private sector trying to come up with the solutions to economic problems.  Fundamentally, it just makes sense to allow the private sector to flourish before the government invests or spends taxpayer money.  Also, this is open to anyone who has an idea and a plan.

On Mark Cuban

Cuban is a very polarizing figure.  As full disclosure, I am a huge San Antonio Spurs fan.  My favorite basketball franchise has been the bane of Cuban’s existence for a decade now.  I do love his passion for the Mavs, HDNet, broadcast.com — he puts his heart & soul into his projects.

Love him or hate him, I can appreciate his entrepreneurial spirit.

So can your business plan impress Mark Cuban enough to receive investment seed money??  Let me know about it in the comments!

photo by mil8

Politics economic, entrepreneur, Mark Cuban, mavs, open source funding, SPURS, stimulus, venture capital

I posted an article over the weekend, so today I’ll give you a few links to check out instead of a detailed post.  Hope your Monday is off to a solid start!

Links

My article asking How Would You Invest the Economic Stimulus Portfolio was included in the 191st Carnival of Personal Finance.  Thanks to Brooke at Dollar Frugal for the inclusion!

Bargaineering has a great article with tips on satisfying requirements for high-interest checking accounts.

Michael James Money shares what he learned about money from poker.  Read the comments too — great discussion and insight!

Scordo debates the strategy of using a HELOC as an Emergency Fund.  Personally, I think using debt to bail you out of a financial mess is not the first option I’d pursue; but read the article and contribute to the discussion — on my page or Scordo’s!

Hope your week is off to a great start!

Photo by lizjones112

Links O' The Week carnival, checking, emergency fund, HELOC, poker, stimulus

Happy 30th Birthday, David

My friend David would have turned 30 years old today.

On September 22, 2005, David was tragically killed in an automobile accident, leaving behind a wife and three young children.  The following, which I posted on his memorial site, is a glimpse of how David’s life has impacted mine:

David was my first friend ever. My memories of David seem too numerous to write down. They range from swimming at his aunt’s pool as little kids, spending the night what seemed like every weekend at his house when we were kids, watching his high school football games, and meeting up with him in between the times we were away at college.

David was passionate, and never did anything half-hearted. He worked harder than anyone I’ve ever seen – be it in school, on the job, or even in a hobby – he was always motivated and driven to accomplish more. He never was satisfied with sliding by on his natural talents. He also played harder than anyone else, always willing to live life to its extremes. He would light up and bring life to any room he entered. David also cared for and loved all those within his reach. His sphere of influence seemed to grow with each passing day. David was truly most happy when he was able to serve others.

For David, there was no middle ground. He simply did not live a lukewarm life. It brings me great fulfillment to know that he took the struggles life gave him, and channeled them for the glory of God. His life is a great testimony of what the Lord can do through you when you make the decision to surrender your life to Him.

I reflect back and feel lucky that God blessed me with David’s friendship for a season of our lives, and I feel most fortunate to see his story unfold from the beginning. He has had a profound effect on my life like few others have. I see bits and pieces of his character in myself and all around me nearly every single day. He simply made those around him better, and when around me, he made me a better person too. The only way to repay God for the wonderful memories is to pass along his love, passion, and drive to others. To do anything less would do David a disservice.

What I’ve Learned

There are many emotions that surround a tragic situation or unexpected loss of a loved one.  With time & perspective come an opportunity to learn from such an unfortunate event.  Here are a few things that come to mind given who David was and how his life was cut short:

1. Pursue your passion.

David was a passionate, all-or-nothing type of guy.  What do I take away from it?  Follow your passions and work hard to see them through.  To do less is a disservice to those that came before us, and those who didn’t have a chance to see their vision completed.

2. Fundamentals!

I enjoy — really enjoy — talking about all things money.  It is so intertwined into all we do and a representation of who we are and what values we possess.  I find it fascinating.  But money is only a medium, or a conduit, for goods & services.

It is important to take a step back from bailouts, financial struggles, and budgets, and remember the fundamentals of life do not involve greenbacks or stuff you bought with that money.  Rather, what’s fundamental to life are those relationships we have and seek with others. Relationships — with God, family, and friends — are what make up who we are and what values we possess.  Money is a mere reflection of your values, but it is not a fundamental value of life.

3. Practical Applications:  Be Prepared for Tragedy

Life Insurance

By virtue of happenstance more than methodical planning, David’s company – a local bank – had a life insurance policy on him.  It wasn’t millions of dollars, but it was enough to cover the costs on the home David’s family had just built.  With young kids to take care of, David’s wife is in a position financially where she was not reliant upon an immediate income, but could stay home and care for her children.  If you are married, have substantial debts or assets, or have children — you need a responsible amount of term life insurance.  Do not wait until it is too late.

Estate Planning

I do not know if David had a will, or who was responsible for the household finances in his relationship.  What I do know, is that you need to be prepared.  Some basic things:

• Get a Will — whether you seek out an attorney or buy a cheap-o online template, get a will.  It makes the financial transition smoother on those that survive you.
• Prepare a simplified household budget, list of accounts, and usernames & passwords for all relevant accounts — banking, credit cards, retirement, e-mail addresses, online charitable giving accounts, etc.

How About You?

What are your thoughts?  Has a personal tragedy affected your perspective, financially or life in general??

Personal Finance estate planning, influence, life insurance, perspective, tragedy, will

Well another week has gone by, and there were many great articles I read out in the blogosphere.  Here’s the highlights!

189th Carnival of Personal Finance:  Super Bowl Edition 

My article proclaiming that it’s never too late for New Years Resolutions was selected as part of the 189th Carnival of Personal Finance:  Super Bowl Edition!  Thanks to Emily Starbuck Gerson and her crew at creditcards.com for adding my article.  Drop by and check out the Carnival!

My Top Picks This Week

Got Jobs?

PT at PrimeTime Money put together a great list with the help of his Twitter followers of 52 Ways to Make Extra Money.  There’s always a way to come up with some cash.  Nice work, PT!

Christian PF found that even though the economy is tough, many companies are still hiring.  With these and others hiring, you can help avoid the 10 ways to become or stay poor.

Once you find a job to apply for, Squawkfox gives you tips on the 6 words that make your resume suck.  I’ve gotta say, I’m guilty of a few of these!  This is a great reference tool that I’ll return to and access from time to time.

Hopefully the job you apply for is better than MoneyMateKate’s list of the weirdest jobs she’s ever done.  You have to see these!

Parents & Children

FrugalDad writes an excellent article on contributing to a Roth IRA for teenagers.  It is never too early to use the power of compound interest.

Get Rich Slowly invites us to try out the Young Money Stock Market Game.

Finally, prayers go out to Paid Twice and his family, as he lost his father this month.  Remarkably with all that’s going on with taking care of his mother and family in this unfortunate time, he’s found time to compile a list of things he’s learned losing a parent. 

This list is a must for every family to complete so the financial and procedural details don’t add to your stress and time of grief.

Have a great weekend!

Photo by Lauren Nelson

Links O' The Week Carnival of Personal Finance, games, income, jobs, new years resolutions, resume, Roth IRA

To Be or Not To Be — What kind of question is that?

I hope to make this a recurring segment for controversial personal finance issues that come up from time to time; some serious, some not so serious.

The first up is relevant to me because tomorrow, along with the Lovely Miss H, I’m heading to Playa del Carmen, Mexico, for a 4-night getaway.  So the question before us:  is it worth it to go to an all-inclusive resort?

TBONTB:  All-Inclusive Resorts

For those not sure, all-inclusive resorts typically include all your meals, entertainment, and drinks for free, except specialty entertainment, such as parasailing, or spa treatments, etc.

To Be:

All is included for one set price, so you don’t have to worry about bringing your wallet everywhere.  You don’t like the drink they just served you?  Give it back and order another one without worrying about dropping another $10 for that fruit-flavored, tasty alcoholic treat.  Want to eat a snack?  Head over to the snack hut or the buffet for a mini-meal and don’t worry about extra costs.  All your worries are left on the mainland as you chill by the beach, sipping on a margarita, catching some rays, enjoying the surf, without a care in the world.

Also, there’s usually a variety of meal options available.  Total costs for all-inclusives are not super high either, once the services, food, entertainment, and convenience options are factored in.  The one all-inclusive resort I stayed at previously (Sandals in St. Lucia), the personal service was tremendous.

Not To Be:

Regardless of the services that are ‘included’, what you are paying for is the extra convenience.  If you correctly plan out your vacation, you can get just as memorable of a trip at a fraction of the cost.  Many all-inclusive complaints from patrons are for having bland and lukewarm buffet-style food.  If you choose a non-inclusive resort, you can enjoy the cuisine on a more local level at a restaurant, and avoid the generic “touristy” option that all-inclusives provide.

Bottom line, for a more genuine experience, the non-inclusive resorts allow and encourage you to delve into the local culture and scenery more than what the all-inclusive does.

Let Us Discuss:

Well, in this instance I think it depends on what you are looking for (cop-out, I know!).  If all you want is to lounge around the beach for a few days and unwind without a care in the world, the all-inclusive might be your best bet.

If you want to have a more “active” vacation and check out more of the local cuisine, and spend much of your time away from the resort in the local town, then a non-inclusive is probably for you.

Another factor — type of all-inclusive.  I’ve been to a Sandals resort, and thought it was top-of-the-line with service, food, amenities, and entertainment.  NO regrets, but pricey.  So pricey that we also went to another off-brand all-inclusive for the first half of our trip.  It was nice to relax, but the quality of food, amenities, and entertainment was lacking compared to the pricier Sandals.

We will be staying at an Iberostar property.  Certainly not as well-known as Sandals resorts, so I’ll report back on my findings.  Financially, we feel that we found a good deal and most importantly from a personal finance point of view, we paid cash for it.  This trip’s cost won’t be coming home with us

But as it stands, when we get away to a beach, we want to relax and not think about the details.  The convenience of not having to worry about bar tabs and restaurant bills is definitely worth the couple hundred bucks you would “save” by going the non-inclusive route.

My Verdict:

For now, I’ll side with All-Inclusive firmly in the “To Be” category.  The financial savings simply do not outweigh the convenience.

Others have a different take on the All-Inclusive debate.  What do you say?  Is an all-inclusive resort worth it to you?  What factors do you consider in making  your decision?

Photo by Battle Group, Mar Hotels, Majestic-Resorts

To Be or Not To Be all inclusive, Mexico, Vacation

U.S. House Passes One-Sided Economic Stimulus Bill

Yesterday, the House Democrats passed an $819 billion Economic Stimulus Bill.  Despite lobbying by President Obama for bi-partisanship & House Democrat leaders insistence on following party line, no Republicans joined in support of the bill, while 11 Democrats voiced opposition to their party’s wishes.  The final vote on H.R. 1 was 244-188.  A parallel bill is now in the Senate, which is expected to increase the size of the stimulus bill, which will already be the biggest federal expenditure in history upon passage.  In the 10-year plan, nearly two-thirds of the stimulus money will be injected within the first 18 months.

Highlights of the bill include:

• $90 billion for construction projects (roads & infrastructure)
• $142 billion to rebuild public schools (no money given to private schools)
• $54 billion for renewable energy
• Boost Medicaid & state law enforcement — $91 billion
• Extend unemployment benefits, and increase COBRA, WIC, and school lunch programs — $102 billion
• Tax cuts of $500/$1,000 per year for individuals/couples (capped at incomes exceeding $75k single/$150k couple); total cost $145 billion
• Increase to $250k the amount a small business can write off; estimated up to $17 billion savings

Okay, I’ve got to admit — I’m a political junkie.  It runs in my veins, and even when I’m not politically active, my political brain is always running on the back-burner.  First off, I have had a tough time digesting the rate at which our congress has spent money.  Increased revenues & the War on Terror notwithstanding, we have spent way to much over the last decade.

How Would YOU Diversify This Portfolio?

Currently, here’s how the House’s Stimulus Bill portfolio is diversified.  Click on each respective picture to enlarge:

(in $ billions)

(by percentage)

Balancing Act

If a stimulus package is needed, government should use our money to create an environment where dependency is not further created on the government for more public jobs.  Rather, more of the stimulus money should be invested in private businesses, which can regenerate the money and use the free market to grow and expand upon ideas and serving their clientele.  Government construction projects seem like a one-time fix; yet another patch job on a huge problem.

While it is good to invest in public works and extend support to those currently feeling the economy’s effects, perhaps this stimulus bill needs to properly diversified between direct spending (safety net programs), public investment (federal & state spending), and private investment (individual & business tax policy).

Nearly 60% is projected to be invested on federal & state public works (not long-term jobs), 14.6% on safety net programs, and 26% spent on private-sector investments.  Just as if I were analyzing an investment portfolio, I would say too many eggs are in one basket, and that this stimulus bill needs to be re-balanced a bit.

How about you?  Would you “re-balance” the Economic Stimulus Bill?

Politics COBRA, congress, construction, democrat, economic, economy, Energy, medicaid, Obama, Politics, renewable, republican, school lunch, small business, stimulus, tax cuts, taxes, unemployment, WIC

Goodbye, 20s…

Well, I officially only have a few hours left as a twenty-something, and while age (feeling old or young) hasn’t ever really bothered me, it gives one pause and provides time to reflect on the past decade of my life.  I don’t know about you, but my 20s have been very action-packed, and a whirlwind time in my life.  There was simply so much going on!  Here’s a sampling of life events to take place in the last ten years:

• Met the Lovely Miss H through a friend of a friend just after I turned 20.  That means I’ve known her for a third of my life now.  Wow!
• Moved away from home and went away to college.  I enjoyed the small, liberal-arts atmosphere, and met some great people there.
• Worked for a politician who is now a United States Congressman.
• Became an uncle.
• Graduated college.
• Experienced the death of my grandmother to cancer, and the untimely death of my childhood best friend to a car accident.
• Moved to San Diego for a job on campus where I wanted to go to graduate school.  I was accepted & attended a year later.
• Traveled the world:  Mexico, Canada, Korea & Japan.
• Studied abroad in grad school for 10 weeks in Western Europe.
• Married the Lovely Miss H in a hot but beautiful lakeside mountain resort with 200 of our closest friends & family in attendance.
• Honeymooned on the island of St. Lucia in the Caribbean.
• Bought a house and moved from California to Texas.  Picked up 3 dogs, great new friends, and countless memories in the process.
• Finished grad school and am still trying to figure out this whole career thing

To me it has seemed so action-packed.  A lot of moving, new friendships, loads of travel, numerous smiles, a few tears, and ever-increasing responsibility with each year!

Hello, 30s!

A new decade of my life makes me take a step back and ponder where my life has been and where it is going.  I do value all those experiences and events in my life listed above.  I value all the friendships I’ve developed, all the advice I’ve received, and all the opportunities to give back. 

Regrets? Nah.  My twenties were a wonderful adventure.  But to use some bowling terminology, there’s certainly been some strikes & gutters, ups & downs.

Strikes

Personally, I really hit the jackpot with the Lovely Miss H.  I could go on for days about it, but just know that she’s everything I could’ve hoped for in a wife, and more.

Financially, I’m pleased that the personal finance bug has bitten me.  We went from wandering in the wilderness to pretty much on the same page together with a plan to pay off our debts and build wealth.

Gutters

Personally & Professionally, I’d say my biggest gutterball is not figuring out what I want to do when I grow up   I have many interests and skills, but have yet to find my niche I guess.  For one that has always thrived on stability, it sure has been an unstable development of a career path for me.  Funny how life teaches you those lessons, eh?  I am looking forward to the continued adventure, however — and now I’ll get to write about it for the world to see!

What about you??

Have you taken the opportunity to reflect personally or financially lately?  What are your “strikes & gutters”?

Photo by clairity & tsschuel

Personal Finance birthday, career, The Big Picture

WHAT’S ON TAP THIS WEEK?

I’m in the middle of a very busy stretch of life these days, some of it planned & some of it not!  Here’s a few QuickHits to give you an idea of what’s on my mind, and what I plan on blogging about this week.  Take a look and enjoy!

Pet Insurance

As I wrote about last week, one of my dogs swallowed an entire sock, had to have surgery to remove it, and may force the use of our emergency fund this week.  While I was at the vet spending my future kids’ college fund to save my dog’s life, I picked up some brochures on pet insurance.

So to briefly continue my pet-related theme here at MyMoneyMinute, I’d like to discuss the benefits and drawbacks of purchasing pet insurance vs. self-insuring through these times of calamity with our furry loved ones.  I guess that’s the beauty of blogging — you never know what life will throw at you (or in this case, what it will swallow).  So you get to adapt with me in these quick changes in life!  A scripted life would be quite boring anyway, wouldn’t it?

Happy Birthday to Me!

Wednesday is a landmark day in the MyMoneyMinute household, as I hit the big 3-0.  That’s right, I’ll be turning 30!  I’m sure I’ll provide some obvious self-reflection on that day, and somehow I’ll shoehorn in something that’s money-themed with it.  This may fall under the “and all that implies” part of MyMoneyMinute.  We’ll see.

Vacation to Mexico

It has been quite a while since we have been able to take a vacation that didn’t involve flying home to see family.  Don’t get me wrong, I love our families, but it will be nice for the two of us to just get away and recharge the batteries without any other responsibilities or obligations.  We’re flying off to Riviera Maya, near Cancun, on Saturday!  Four nights of all-inclusive resort bliss.  Expect a vacation-related post this week.

New Edition on Website — Find Cheap Gas!

All right, I guess I’m misleading you a bit here.  I am not interviewing New Edition, the pop group from the ’80s.  But I do have a new addition to my website.  Available on the tabs at the top of my page is a link that allows you to search for the lowest gas prices in your area, courtesy of gasbuddy.com! I’ll probably post a QuickHit on this later in the week, but feel free to navigate over and see where the lowest gas prices are in your city.

That’s about it for now.  I’m looking forward to this week’s batch of posts.  Here’s hoping it all goes according to schedule!

Photos by:

COmfH & Toots Fontaine

What's On Tap Energy, Gas, Pets, Travel, Vacation

I read a ton of blogs each week.  So many inspiring stories and wonderful ideas come from the people on the ‘Net.  Here’s a few that caught my eye:

Education

The Wisdom Journal posted 10 Ways College Made Him Rich & 10 Ways College Made Him Poor.  This is a great read for those at or near college age.

The Degerati Life had a guest post by Studenomics on How To Work Full Time While In College.  I wish I would’ve taken some of this advice!

Vehicles

PT @ Prime Time Money paid off his car last week!  Now what does he do? If there’s ca$h burnin’ a hole in your pocket, PT, you can certainly send some dough to my student loan accounts

Clever Dude posted an article on which model automobiles receive the most speeding tickets.

Get Rich Slowly explains to us all why he drives a 13 year old car!  I don’t think I could rock a Geo like that (I’ve got long legs, for one thing), but a fascinating personal finance story and analysis on vehicle expense.

The Big Picture

Christian Personal Finance posted on becoming richer than Rockefeller, and how our standard of living today blows away the richest man in the world’s living standards from 100 years ago.  This is an older post, but I surfed across it this week and thought it was important to share.

That’s it for today, folks.  Enjoy those links.  I’ve got a few news articles that caught my eye, but I’ll probably cover those in posts next week.

Have a great weekend!

photo by brandi666

Links O' The Week Cars, Education, The Big Picture