Are Personal Finance Bloggers Some Of The Sexiest People On Earth?

Personal Finance Bloggers Are SexyI was eating dinner at my local Indian joint when a late 20s couple sat at the table right next to me. The guy, a new pharmacy graduate from UCSF was with a female pharmacy student. He was buttering her up with praise about how she’s so popular now that her research report got published in some pharmacy journal. She blushed with pride.

I tuned out their entire conversation for 20 minutes as I stuffed my face with chicken tikka masala until I couldn’t help but overhear one phrase. He awkwardly said, “I think I’ve gotta build myself an emergency fund, you know? I hear it’s a good idea to build this emergency fund so I don’t go into high interest credit card debt.”

Wahoo! Music to my ears and music to his date’s ears as well. As soon as he started talking about securing his financial future, the female pharmacist started leaning into the table all excited. “Tell me more,” she said with a sultry, but incredibly nasally voice. I’m pretty observant – like CIA observant – where I can tell you what color your shoelaces are and point out the stain on the lower side of your shirt 30 minutes after our meeting is over if questioned.

It’s pretty clear to me they’re both getting lucky tonight all thanks to some personal finance dialogue.

So I got to wondering: Are personal finance bloggers (and readers) just abnormal because we talk about money all the time? Or are we simply some of the sexiest people on Earth?

Let’s discuss!

Documents Needed To Refinance A Rental Property Mortgage

Mortgage Rates Today for 30 year fixed, 5/1 ARM, 3/1 ARM, 1/1 ARM

If you haven’t refinanced your property in the past several years, it’s worth checking the latest rates today. The 10-year yield is back below 2.5% as Wall Street economists scurry to revise down their interest rate assumptions once again. I swear they have the best jobs on Earth because they never, ever have to be right.

I am a firm believer that interest rates will stay at these levels +/- 1% for years. Information transfer is instant nowadays thanks to the internet, and policy makers are much more adept at managing inflation and unemployment in America. As a result, go with an ARM rather than a 30-year fixed mortgage to save yourself money.

The general rule is that any time you can lower your interest rate by 50 basis points (0.5%) and break even within two years, you should refinance. Nothing is more beautiful than locking in a low rate and paying down the loan with ever-weakening dollars thanks to inflation.

Unfortunately for landlords, refinancing a primary mortgage is simple compared to refinancing a rental property. The reason being that refinancing a rental not only requires various Home Owners Association board members to cooperate with the process if you own a condo, the bank does much more due diligence.

From the banks point of view, lending money for a rental is riskier because the default assumption is that you require rental income in order to pay back the mortgage. Therefore, the bank needs to add an added margin of safety in the form of a higher mortgage rate to compensate for their risk. Rental mortgages are usually 25-50 bps higher than a primary residence mortgage.

I just rented out my primary residence this summer at a rent that’s almost double all my costs because I’ve lived there for 10 years. But banks still quoted me for mortgage rates at least 25 basis points higher than the primary mortgage I took out for my new home. As a result, I kept my 2.625% 5/1 ARM mortgage with three years left on the fixed term. 

Steps To Get Out Of MASSIVE Credit Card Debt Due To Lifestyle Inflation

Lifestyle inflation and a mega yachtI don’t discuss too much about credit cards on Financial Samurai because I’ve only got three (a travel rewards card, a generic rewards card, and a corporate card) and nothing much happens except for racking up rewards points. Definitely use a credit card for convenience, safety, rewards points, and insurance protection if you can control yourself. But if you’re not careful, thanks to the ease of use and absurdly high interest rates, problems may ensue.

The following is a guest post by Debs, a middle income earning new grandmother who was able to amass over $140,000 in credit card debt! I asked her to share her story on how she did it, and how she is getting herself out of debt. Kudos to Debs for having the courage to share her story.

It’s embarrassing to admit, but I tell this tale as a warning to all people like me who are on the bandwagon of lifestyle inflation, “I deserve” and family struggles that may cause you to take your eyes off the ball and wake up one day to say “How did I get here?”.

We weren’t addicted gamblers or smokers. We didn’t have a lot of fancy toys. We drank moderately and yes, we had four kids and a large home to boot (purchased in 1991). Maybe a few travels thrown in here and there, but not excessive. There was some shopping for work clothes and things for our home. Maybe a bit of stress relief shopping, but nothing extravagant. That is my first message.

Our debt crept up on us without even realizing it. At least I didn’t realize the size it had grown to. I wasn’t watching the finances. I was only working hard to contribute to the family income. That was enough, or so I thought.

Should I Go To Court And Fight My Speeding Ticket?

Speeding Ticket

Back at the scene of the crime

Speed racer is in the house! I got a speeding ticket for going 35 mph in a 25 mph zone the other day and I’m pretty ticked.

The cop pulled me over after I sped up in the middle of a yellow light and asked me whether I knew why he pulled me over. I innocently responded, “Because I went through a yellow light?

He looked at me a little funny and said, “No. Do you know what the speed limit is here on Masonic Avenue?”

I’m not sure officer. 35 mph?” I responded.

No, it’s 25 mph and I got you on the gun going 45 mph,” said the officer.

First I was shocked that a five lane artery (2 lanes going south, 3 lanes going north) would have a speed limit of only 25 mph. I wasn’t blowing by anybody at all. Second, I was super surprised the officer said he clocked me at 45 mph!

Moose is slow as molasses as a 14 year old Land Rover Discovery II. There is NO WAY Moose could reach 45mph in two blocks. His 0 – 60 mph time is 11.4 seconds new and surely he’s lost a step over the years. 45 mph = 66 feet / second. Average city block is around 400 feet. I would have to be putting my pedal to the metal to get to 45 mph, which I wasn’t because that action guzzles more gas.

I looked at the officer when he told me I was going 45 mph and said, “You mean this car? I don’t think so. I haven’t had a speeding ticket in 8 years since my car is so slow and old.

He kinda laughed and asked me for my license and registration.

When he came back three minutes later, he handed me a ticket and said, “I’m not going to write you up for 20 mph over the speed limit because that’s not good for your insurance and I don’t want to hammer you. I’ll just do 35 mph in a 25 mph instead.

Gee thanks. What a nice guy! I was actually hoping he’d let me off with a warning as two other cops did in the past six years when I was driving Moose. Who gives a speeding ticket for 35 mph in a 25 mph zone when everybody is driving 35 mph?

What Is Capitalism? To Understand Let’s First Explore Communist China

Chongqing, ChinaWhat is Capitalism but a way of life for many who want to get rich. Communism gets a bad rap for its ability to stifle innovation and effort. However, when you look at Communist China, growing at 7-9% GDP per year, do you really think its citizens have no desire to improve their living standards beyond what is generally proposed?

We all have an inherent nature of wanting to do better. Not only do we want to continue improving, we also want to one-up our peers! After all, what’s the point of making $100,000 dollars a year if everybody else makes the same?

We learned a good amount about how the happiest people on Earth live after my 2.5 week trip to Scandinavia. So, I decided to take a trip to Chongqing, one of the fastest growing cities in China to learn more.

THE CHONGQING FIREBALL