I was reading some posts around the web discussing how it’s common place to live at home with mom and dad. Is it really that common? Have I lost touch with reality, yet again? After four years of college, where there are just ridiculous amounts of parties and unspoken amounts of fun, who on earth goes home and lives back with mom and dad?
Even if I was unemployed, I’d pay several hundred bucks and rent the sofa in my buddy’s living room or something. Is there no shame in living at home with parents as a grown adult? Perhaps not. Right on my street, live three 26-27 year old young bucks with grandma. Come on, how can these guys live with themselves living with grandma? After 25 years old, that’s 3 years after college to find independence. So I got to thinking, perhaps it is feasible to live at home with mom and dad, or grandma and still get girls!
STRATEGIES FOR GETTING GIRLS WHILE LIVING WITH MOM & DAD Read more…
The Bay Area is full of entrepreneurs. There’s something in the air that creates an almost godly electric spirit that causes people to work hard and innovate. As 2011 nears, more and more I hear about how small business owners are clamping down in preparation for next year’s tax hikes. Clamping down is generally not a good term to use if you are a politician who wants to create job growth.
Let’s say you make roughly $3 million in annual gross revenue from your internet business like my friend Zach does. Not bad, but not exactly big money if you take into account his cost structure. If his pre-tax operating profit margin is 25% after he pays the salaries of all his employees, the rent, and so on, Zach is left with roughly $750,000 subject to taxes. If his tax rate goes up from 36% to 39.6%, for every dollar he makes over $375,000, he will pay roughly $25,000 more in taxes a year in 2011.
Well guess what? My friend is letting go of one of his junior programmers who makes roughly $85,000 to pay for next year’s $25,000-$35,000 tax increase! My friend feels bad letting his 2006 college graduate employee go, but he has no choice since revenue has declined since 2007, and the government is tightening the screws. Zach believes that 2011 revenue will be worse next year than this year, and is budgeting a decline. Thank goodness for 99 weeks of unemployment insurance! And no, it’s not reasonable for the junior programmer to just go work in fast food after only several weeks of looking.
DON’T LISTEN TO THEIR LIES. THEY AREN’T IN IT FOR YOU. Read more…
There’s a whole world out there of financial products I have very little understanding about. Apparently, there’s a market for buying and selling “structured settlements” for cash after you win big money after a court case. The following is a guest post by Jason from JG Wentworth which pays people cash now for settlements which are paid over time. Interesting concept and something which is worth learning about.
When a plaintiff settles a court case and is awarded a large amount of money, it may be decided that the settlement will be paid over time in installments rather than a single lump sum payment. This type of arrangement is called a “structured settlement”.
The advantage to having a structured settlement is that the money is tax-free if set up properly. Structured settlements can also be beneficial because they provide a source of income for the recipient well into the future, where as lump sum payments will more likely be spent if the recipient does not manage their money responsibly.
Structured settlement payments can also be a disadvantage, trapping the recipient into periodic payments when they may want cash now. Many settlement recipients choose to sell their settlement payments for a lump sum of cash to start a business, pay for college tuition, purchase a home or other various financial reasons.
Handling a large lump sum of cash can be exhilarating. And it can be a little unsettling, too. Money causes people to worry, and worry spins half-truths or unfounded myths about financial issues at hand. Selling your structured settlement into a lump-sum payment is an opportunity to increase your net worth — not limit it. All it takes is a little guidance from a reputable structured settlement buyer and a plan of action for your cash to breakthrough any doubts.
Apparently there must be some controversy about structured settlements and Jason is here to help clear the air.
MYTHS ABOUT SELLING A STRUCTURED SETTLEMENT FOR CASH Read more…
I ran into one of my golfing buddies the other day while waiting for a colleague. Greg the golfer is an every day fella who so happens to be worth north of $20 million dollars. I don’t know exactly how much he makes a year, but it’s likely at least $3 million during normal economic times. He’s a powerful man who deserves everything he earns, but sometimes he’s just vexing.
We got to catching up about the latest gossip on tour when he asked me if I wanted to grab a coffee at Starbucks. I told him I was good, largely because coffee hurts my stomach, not to mention I’m supposed to be waiting for my colleague at this exact spot and time to attend a meeting. Greg responds, “Of course not, you are so cheap!” in a snide, but joking sort of way. Unfortunately, every joke has a meaning, and being called cheap is one of the most annoying things to ever hear.
The reason why Warren Buffet is so great is because he’s able to distill the most complicated financial topics into very simple terms. Lucky for us, there is someone like Warren in the economics world. Regular reader, Investor Junkie who disagrees with the government’s unemployment insurance extension, but agrees with the cessation of rising taxes, highlights a fantastic video by the great economist Milton Friedman about four different ways of spending money.
Professor Friedman’s examples are simple and perfectly to the point. In an environment where we are spending other people’s money on someone else (deciding how other people’s tax dollars are spent), we don’t maximize the value of the dollar because we simply don’t have much at stake.
Professor Friedman highlights that people spending someone else’s money on others is a “distributor of welfare funds.” Strong words with a certain amount of truth wouldn’t you agree? In “The Ultimate Solution To A Fair Tax Policy In America”, I discuss the concept of limiting the voting ability of the 47% of non tax paying Americans on raising taxes for the other 53%. Don’t worry, voting rights for everything else is status quo. The reason why I suggest this rational solution is because it makes sure the country isn’t overrun by those who have their cake (don’t pay taxes) and get to eat it too (enjoy the benefits).
One can easily see an America where 90%+ of citizens don’t pay taxes and stick it to the 10% rich because it’s rational to look out for your own interests. It’s up to balanced people who believe in equity to continue fighting for those who perpetually get unfairly blamed for our economy’s problems. It really is ironic, because if everybody studied hard in school, volunteered their time to help others, and were self-sufficient (doesn’t have to be wealthy), America wouldn’t have nearly the amount of problems we have now!
The 4 Ways Of Spending
1) Spend your own money on yourself.
2) Spend your own money on somebody else.
3) Spend somebody else’s money on yourself.
4) Spend somebody else’s money on somebody else.
Readers, do you agree or disagree with Professor Friedman’s thesis that the 4th way of spending is the worst way of spending? If you do agree, why do you think people feel it’s OK to spend other people’s money as they wish?
Regards,
Sam @ Financial Samurai – “Slicing Through Money’s Mysteries”
As far as I’m concerned, the US economy is recovering handsomely. How could it not with packed restaurants, and traffic that makes me want to pull your hair out? The most anticipated IPO of the year is Facebook, which may very well go public for $20 billion plus dollars. Meanwhile, the whole world is hooked on Apple products with iPads ($500-800) and iPhones ($200-300) selling like hotcakes. Who needs yet another computing device? I guess millions do!
There is so much money flowing into the Bay Area, it’s hard to imagine another financial crisis on the wing. Yet, I’ve read plenty of posts on “steps to take when the next financial crisis comes” and I’m scratching my head. Am I living in a parallel universe where every other car I see is a fancy German vehicle, and I can never get a reservation at my favorite sushi joint? I feel like I’m living in a little optimistic bubble where the world isn’t falling off a cliff and is actually doing well. Tell me if I am, because bubble living is delusional living at its finest.
The stock markets, although highly volatile have recovered some 50% from the bottom and generally serve as as a leading indicator for the economy. Yet people are still talking about a double dip recession. Yes, the biggest worry is stubbornly high unemployment, but you’ll never be able to tell if you walk the streets of San Francisco.
My nose plugs up and I can hardly breathe when I’m around cats too long. I don’t know why I’m allergic, I just am. One time I stayed over a friend’s place with three cats, and I woke up with red hives. It was a surprise that I was able to fall asleep at all, because I could have sworn I sneezed over 100 times until the underside of my nose bled.
One of my best friends invited me over to visit her childhood home this fall. Her mother lives near Boston, and unlucky for me another downside of East Coast living is the enormous pollen count. I remember countless days when I couldn’t go to work because my allergies were so bad. Ever since moving out West, my reactions have been much tamer. The San Francisco Bay acts as a natural filter, sucking out stagnant air to sea.
In addition to being out East, my friend’s mother also has a couple of dogs and cats! She sees this trip as a fun homecoming to introduce me to where she grew up. To me, I have no attachment there and it’s like going to a gas chamber for vacation. Imagine only being able to breathe through your two front teeth. That’s how I feel sometimes when allergies attack. You can’t get enough oxygen, so you aren’t able to speak. You lose energy and let sleep take over even though it’s in the middle of the day.
Whoever said, “money can’t buy happiness” is either poor or wealthy beyond their wildest dreams. The incessant amount of studies by researchers trying to prove money can’t buy happiness is simply a result of the researcher’s own poverty. Because they are financially mediocre, researchers are trying to console themselves that it’s OK not being wealthy. Generally, researchers have a higher sense of self because they have more educational training. Hence, it tears them up when they see other “lesser beings” make more than them. Meanwhile, those who continue to highlight research stating that money can’t buy happiness are trying to justify their own financially unspectacular selves as well!
You see, the financially mediocre are all in cahoots with each other. They’ve banded together to proclaim that being middle class is good enough. It probably is good enough for most people, but not for these unsatisfied folks! If being middle class or poor was good enough, then they’d leave well enough alone and be happy in their financial mediocrity. It’s a hard pill to swallow, but swallow they must. Not everybody can make multiple six figures, live in million dollar houses, and pay cash for luxury automobiles. That’s just life and they are trying to bring you down. Don’t let them!
Pick any private school. The cost is about $200,000 over four years. These figures don’t surprise anybody anymore given the ever rising application volume to storied institutions such as Harvard, Yale, and Princeton. That said, there have to be some who believe $200,000 for a private school is a hard pill to swallow over an excellent public school for just $40,000.
With an estimate 17% of people aged 20 through 24 unemployed, swallowing a bowling ball may be easier than finding a desirable job post graduation. Let’s say you are one of the unlucky few who can’t find a job after a $200,000 education. Does it really matter? Let’s think about why it doesn’t really matter from the eyes of several recent graduates.
A fantastic topic came up over dinner one day regarding how to increase job security in today’s highly volatile economy. The usual tips came up, such as: be invaluable, develop strong internal relationships, and never call in sick on a Friday (slacker). All tips were logical, but the more we drank, the more out of the box we thought until we reached the best employment insurance strategy of them all: Make babies and start a family!
Starting a family could be the #1 way to ensure long term employment. With a family, your employer must not only consider your situation, but the situation of every single person you support. The more kids you have, the more bullet proof you become! Imagine a scenario where your boss is faced with firing 10 employees out of 100, or 10%. How do you think she chooses?
Insensitive statements by Senate Majority Leader Harry Reid (D) not only infuriates many, but also raises one titillating question: Why isn’t President Obama considered white? Obama’s mother is white, and his father is black. He relates more to his white side of the family given his father left him as a child. Hence, isn’t it logical to think Obama is more white than black? Let’s see if we can change Obama’s default setting to the world.
THREE SUGGESTIONS AS TO WHY
1) “He doesn’t look white.”
Well, what does “white” look like? Yes, Obama doesn’t look like a Norwegian Viking, but you can still tell he’s mixed. Since when does being half black mean that he’s full black? If a white person is only supposed to look like Tiger Wood’s wife Elin, then we need to revise what the definition of white is. Read more…
The poker game ends and the team of entrepreneurs and new media types say their good-byes. I leave up $51 bucks, which is a nice return given my $100 buy-in, but it’s a pittance against others leaving with wads of cash big enough to substitute for butt-cheek implants if so desired.
The last time I was out until 3:30am was when George W. proclaimed we won the war. There are so few cars on the road, when I do see one, I wonder what trickery lies ahead. There’s a certain tranquility one feels when others are sleeping. Dim yellow lights glow in San Francisco’s misty haze. Nobody bothers you because nobody is conscious enough to care.
Almost home, I decide to instead drive towards the Bay and take in the silence of black murky waters and a revolving spotlight that perpetually emits from Alcatraz. I wondered if this calm is how Frank Lee Morris felt before he tried escaping The Rock some 48 years ago.
Congratulations to the Democrats for passing a smaller, less corrupt version of Obama’s health care plan to cover the 30 million+ Americans who are uninsured. I’ve read numerous articles about the pros and cons of this plan, and I still can’t figure it all out. An Associated Press article writes, “Obama practically needs a spreadsheet to tell people what’s going on and when.“ That said, progress has been made. I’d like to go over some of the basics, and end with a discussion.
If I have one pet peeve in life, it’s when people are late. I absolutely cannot stand it when people are late. My face starts contorting after 5 minutes, and I think about walking out and rescheduling on my own damn time after 15 minutes. If I don’t get a text, e-mail or a phone call with a heads up, you are on my sh*t list until you do something to make it up.
Someone important, let’s call him Dr. Shivago, asked if he could speak to me at 7pm this past Sunday. Given the importance of this individual, I decided to cut my dinner short to focus on this business call. At 7:20pm still no call. At 7:25 I get an e-mail from his secretary apologizing that Dr. Shivago needs to reschedule for another time. WTF! Who does Dr. Shivago think he is, a C-level executive of a Fortune 500 firm? Yes, that he may be, but I don’t care.
All was going well with the business proposal until this incident. I refuse to even consider doing any business with Dr. Shivago until he sends a personal note apologizing for his inconsiderateness. Don’t go asking your secretary to reschedule and apologize on your behalf. Apologize directly to me. Have honor.
One of the best things about living in a big city is the diversity of people. Minorities are actually a 51% majority, leading to an abundance of food, culture, and festivities. Most importantly, a diverse community teaches us acceptance and understanding of each other.
Canadian-Indian comedian, Russell Peters recently visited San Francisco where I got to see him perform. He is an absolute riot! Russell pokes fun at the incredible ability by both Indian and Chinese to drive hard bargains. It’s interesting to witness what happens when they negotiate with each other! Keep an open mind, and I hope you enjoy the skit.
Money Loan Where would we be without the rolling and the folding! Borrow and get your self a nice roll. Great Rates!
Home Owner Insurance This is insurance for home owners you can get great cover rates so search and check out what you can be offered.
HOUSE VALUE This site shows very accurate current market pricing for almost ANY property in the UK.
Compare Mortgages Online In order to choose the best deal for your situation, compare mortgages online.
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I was reading some posts around the web discussing how it’s common place to live at home with mom and dad. Is it really that common? Have I lost touch with reality, yet again? After four years of college, where there are just ridiculous amounts of parties and unspoken amounts of fun, who on earth goes home and lives back with mom and dad?
