Guest blogger from Heros of Capitalism writes about why he still buys books as opposed to going to the local library. via Get Rich Slowly.
Have a Happy New Year from Scordo.com (go 2009!)!
December 2008 Archives
Fixing It Versus Buying New: Finding Experts to Make Your Stuff Last Longer
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It's no surprise that given the current state of the economy people are hanging on to their stuff longer and not opting to buy new. The events taking place in the car industry currently (with record low unit sales for both domestic and foreign manufactures) serve as a perfect example of individuals not buying or leasing new vehicles but rather repairing and maintaining their current vehicles.
The idea of making your stuff last longer can be applied to many consumer product categories. So, before you decide to throw away that old refrigerator and opt for a new model, see if you can leverage the services of the following "subject matter experts:"
1. Shoe Repair Person
Most high quality footwear can be made to look new quite easily. Any leather shoe with a leather sole can be resoled (including a new heel). An expert shoe repair person can also buff and repair your leather shoes. On the buffing side, this is something you can easily do yourself and all you need is some Kiwi shoe polish to match your shoe color, a good shoe shine brush, and a little bit of white vinegar/water solution to first clean your shoe.
2. Handyman
A good handyman can repair an aging deck, paint and repair cracking walls and ceiling, fix an old light fixture, repair your front brick steps, and clean your gutters. With any home repair, make sure that a fix is what you need versus a replacement. For example, if your furnace is 20+ years old it's probably a good idea to consider replacing the whole unit as it will run more efficiently and give you peace of mind (you really don't want to repair an old unit and have to worry about it breaking down in the middle of winter). The same principle applies to your roof and roof shingles (if a few shingles are showing wear <viz., your typical asphalt shingle> then it's probably a good idea to replace the entire roof).
3. Mechanic
A good mechanic is invaluable. And given that most modern cars are designed to run without too much maintenance you shouldn't need your mechanic too often before, say, your car reaches 100,000 miles. However, preventative maintenance is key to keeping a car for the long term; so be sure to change your oil and filter according to manufacturer specs, replace tires and worn brake pads, as well as belts and fluids.
4. Appliance Repair Person
It used to be the case that a refrigerator could last 20+ years. Nowadays many families just buy a new appliance if their old one stops working or if the family decides to renovate their kitchen. However, must consumer appliances can be fixed and be made to work like new provided you hire a good appliance person. An appliance repair person can replace a faulty water line in your refrigerator, look at the pump assembly in your dishwasher, or fix an oven that is not heating properly. So, skip the manufacturer extended warranty and ask around for a good local repair person.
You'll be surprised at how empowering it feels to be able to fix something (or have someone else fix it for you) so that you do not have to run to the store and hand over $500 for a new washing machine, for example. Also, remember to always consider the repair cost of the item you're trying to bring back to life (if the repair cost is huge compared to the price of a new item, then you may want to simply purchase that $30 coffeemaker for example <versus trying to fix it>)
Calling All Parents: Establish A Financial Foundation For Your Children
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I come from a very giving family, as is the case for most recent immigrants. My mother and father, while lower middle class, have always provided their children with whatever was in their means. As a small child, my parents purchased hi-quality clothes and shoes for us, paid for braces, prepared wonderful meals, purchased our first used car, and paid for about 2/3rds of our college educations (including our books). My parents continue to be very giving (even as we've purchased our own homes and established our families); my mother will often pick up a few items at the grocery store if she sees a good deal and my father, as I've posted in the past, has acted as our general contractor on numerous occasions (painting, re-wiring, running copper water lines, installing windows, etc.).
Given the above I'm wondering if it's generally a good thing for parents to help their adult children? I know, for example, that if I had to pay contractors to do work on our home our personal savings rate would be much lower than it is today. I also believe that if I had to foot a larger portion of my undergraduate tuition, and purchase my first used vehicle, I would not have been in a position to buy my first home in my mid twenties with a 20 percent down payment (as well as buy my first new vehicle in cash). Some critics would argue that parents should let their adult children fend for themselves and that as soon as the child leaves the home at 18 to attend college they should provide for themselves. Well, I think the aforementioned notion is silly and that getting ahead financially can't be done without a strong family network.
Given my experience, I think it's critical for parents to provide a stable financial foundation for their children; in fact, I think parents who force their kids to fend for themselves once they turn 18 is akin to financial child abuse! Here are five tips on how parents can help their children/young adults get off on the right financial foot:
1. Pay for your child's college education. With tuition rising at 4 year colleges and universities at an astronomical rate, it's not uncommon for students to graduate with $20,000 - $30,000 in debt, not including credit card debt (see an older article from USA Today entitled, "Students Suffocate Under Tens of Thousands in Loans"). Now imagine starting your adult life (at the age of 22) in debt and with no promise of a job to pay off loans! Don't get me wrong, I think students should hold a part time job during their undergraduate years (especially if it's related to what the student is studying) and apply for a few low interest loans, but the more a parent contributes towards tuition and living expenses, the better off the new grad will be come graduation.
2. Help your young adult child purchase his/her first used car. One of the best things my parents did for me was purchase a 1991 Honda Civic with about 75,000 miles on it (for about $3000). I used the car to get to my first job after graduating from college and it was a huge relief to not have to make car payments so that I could focus on paying off my college loans. The vehicle was reliable and bare bones and it got me where I needed to go. I paid my parents for insurance and bought gas, but my parents did not require that I contribute towards the purchase of the vehicle. The same vehicle was later used by my younger sister for the same purposes.
3. Offer to house your children once they graduate from college. Paying rent and utilities can be a huge expensive, especially if you live in or around a large city, so if you have the means to continue to allow your recent grad to live in the house it can be a huge money saver. Some parents charge rent or even have their recent grad take care of a few of the utility bills, but if he or she is well intentioned and independent they will probably move out within a year or so (so asking him or her to contribute financially kind of defeats the purpose of living at home and saving).
4. DO NOT offer to help pay for the young adult's first home. Preparing to buy a home requires a great deal of discipline and sacrifice; more specifically buying a home requires, at a minimum, a 20 percent down payment and saving for a down payment is a great lesson in living below your means. In turn, I think every parent (or close relative) should resist the urge to turn over a large sum of cash for a home purchase. Moreover, saving for a down payment on a home is only the first step in the home ownership lifecycle, the home owner will need to save for costly repairs and maintenance, inevitable renovations, etc., so letting the young adult come up with his or her own down payment builds the necessary "saving" mentality needed for home ownership (a good general rule is that if you can't come up with the down payment then you shouldn't be a homeowner). Plus, if you've helped by way of the three tips above your child should be in a good position to save for a decent down payment.
5. If you have more than one child, provide the same financial help with each child regardless of financial situation. One of the worst things any parent can do is play favorites, especially in a family with multiple siblings. My view on parents helping their children is simple: give the same to each child regardless of need (this will keep things fair and prevent unwanted resentment).
I want to reiterate that I'm not advocating parents support their kids outright through early adulthood, but rather strategically help with life steps that can make or break a young adult's financial foundation. After all, once a young person accumulates debt it's very hard to get back on track. Parents should also be very aware of the type of young adult they are dealing with; obviously, you do not want to buy an irresponsible child his or her first used car (use common sense and know your children).
Scordo.com is away! Normal postings will resume on Monday December 29th, 2008! Happy Holidays.
Vince
Vince
- Alison offers advice on decoupling Christmas from spending. via Diamondcutlife.org- FrugalDad touches on a key topic: Breaking the Monthly Payment Mentality. via Frugaldad.com
- NYC blogger FreeFromBroke asks an interesting question: If You Were Rich How Frugal Would You Be. via FreeFromBroke.com
- FreeMoneyFinance provides some insight on avoiding a used car-lemon. via FreeMoneyFinance
- Finally, Lynnae has a neat entry on her favorite frugal, Christmas tradition. via BeingFrugal.net
Have a wonderful holiday!
Are you're struggling to find a few last minute gifts for your relatives and friends and have totally given up (are you asking yourself if mom was really that good to me this year?)? Well, the perfect gift is actually not at some mall or a web site with a discount code, rather it's right in your head or a byproduct of what you can do with your hands (it's what you're good at!).
Up until the proliferation of department stores, malls, downtown shops, and eCommerce, most folks made Christmas presents or gave away what they did well (namely, their special skill). A farmer would give away a ham, a carpenter would build a hutch, and a homemaker would bake items. The products were often of superior quality and truly "from the heart." In today's age, most of us don't have the skill to build an elaborate piece of furniture of butcher our own meat, but we all do posses some special skill that we can turn into a fabulous Christmas gift. Here are five areas and gifts that come to mind:
1. Baked Goods
Can you make bread, cakes, or pasta? If so, put together a gift containing a chocolate cake and a pound of homemade linguine, for example,. Add a bottle of wine to the package and you have a "dinner at home" gift basket.
2. Photography / Art
Do you take good photos? If so, look for a nice wood frame, mate mount, and pick a special photo from your collection. If you're an amateur or semi-pro artist then give away some of your work (it will get the word out on your work and getting original, hi-quality, artwork is always appreciated).
3. Cooking
Can you make food taste good? Put together a "gift certificate" for dinner at your place and include what you'll be cooking for the guest. Include the name of the wine you will be serving on the certificate as well as the date and time for dinner. Trust me, if you can cook well, folks will love this gift! Alternatively, if you can make soups, make three batches of your favorite type and put them in large Mason jars and wrap each one with a bow (no one says no to homemade soup!)
4. Unique Homemade Stuff
Do you make your own wine or beer, canned tomatoes, barbecue sauce, cured meats, chocolate, etc. ? Put one or two of the homemade items in a nice box along with a note on how you made the product.
5. Handyman Skills
Are you a trained electrician, plumber, carpenter, painter, cabinetmaker, mechanic, etc.? If so, then you have a special skill that can be "gifted." Just think of all your close friends and family who cannot do their own home repair! So, include a hand written note offering to paint a room, fix a leaking pipe , or install a new light fixture (maybe include an inexpensive tool for the project as well, such as a screwdriver or paintbrush). This is especially nice if you notice that something needs fixing in a friend's home (just be subtle about how you make the offer, no one likes to be told that their home is in need of repair)
Maria Laurino of the NY Times recently published an article on the Italian-American tradition of serving seven fishes during the holiday season. Here is Laurino on why many Italian-Americans prepare fish on Christmas Eve:
"The significance of seven types of fish has yielded numerous theories, including a correspondence to the number of sacraments in the church, the seven days of creation, the seven virtues of Christian theology, and a reminder of the seven deadly sins. Families have their own interpretations, perhaps based on the region from which their ancestors came; and the number of dishes prepared can vary widely -- from 3, representing the number of wise men, to 13, signifying Jesus and the apostles."
Like Laurino, I easily identify with eating fish during the holiday. Ever since I can remember, my own Italian born parents/family have prepared the following type of fish on Christmas Eve:
1. Baked shrimp with breadcrumbs.
2. Bacala (or salt cod) mixed with olive oil, red onion, and parsley.
3. Seafood salad with fresh sconciglio (or scungelli in Italian-American parlance), scallops, shrimp, calamari, celery, and onion.
4. Baked flounder.
5. Pasta with clam sauce.
6. Raw clams.
7. Shrimp cocktail.
8. Fried calamari (there is an 8th!).
8. Fried calamari (there is an 8th!).
In addition to the fish above, our family fries fresh zeppoli for Christmas Eve dinner. There are also a few vegetables that make an appearance (baked broccoli with red pepper flakes, sautéed string beans with garlic, and a tossed salad), but they are really afterthoughts as the fish take center stage.
Laurino's article reminds me of an important personal finance tip: good food can quell material desire. That is to say, if you fill your belly with good food on a consistent basis (along with a nice glass of wine) you are all of sudden really satisfied with life and can maybe even get away with not having a 42 inch flat screen TV, a gas guzzling SUV parked in the driveway, and the desire to head to the mall every weekend to buy stuff. Try eating really well for a month and see if your life satisfaction level goes up!
If you're looking for a hardy salad to satisfy your hunger during the winter months, look no further than my all time favorite snow-month salad: Fennel, Honey Crisp Apple, and arugula Salad. Lets start with the ingredients:
- 1 medium sized fennel (you should be able to find this vegetable at most markets; here on the East coast it's readily available, but you may need to ask around if you live outside a large city).
- 1 bunch of arugula (taste it as it should have a bitter flavor).
- 1 medium sized golden crisp apple (this type of apple has a nice firm texture, but delivers great, sweet, flavor and offers a nice contrast with the bitter arugula).
- ¼ cup of good olive oil.
- 3 tablespoons of balsamic vinegar
- 1 tablespoon of Dijon mustard
- Salt and pepper to taste
Start by washing the arugula well (1-2 times in cold water is best) and pat drying the green leafy parts. Remove the stems and hand tear the leaves. Next, wash and peel the apple and cut in half (removing the core and seeds). Cut the apple again so you have 4 quarters and thinly slice each piece (you want enough thickness to give a nice crunch, but don't cut the slices to thick). Next, cut the stalk off the fennel bulb (you can save the bulb for making stock, but it doesn't have too many uses) and remove the first, outer, layer. I like to cut the fennel bulb in half and cut the bottom portion off of each half that hold the layers together. Thereafter, you can lay each of the halved bulbs on your cutting board and cut think pieces (here you'll want to cut as thinly as possible.
In terms of the dressing, click here for my basic vinaigrette recipe (using the above ingredients and substituting red wine vinegar for balsamic vinegar; you can also omit the thyme if you'd like).
Enjoy the salad with braised short ribs or with a bowl of steaming lentil soup. Here's a variation of the above fennel salad served with fish.
A September New York Times article argued that the key to "wedded bliss" is a shared viewpoint on money matters and I couldn't agree more with the basic premise. I'm sure you all know couples who couldn't be more different: she likes Prada and drives a shiny black Lexus, while he dresses like he just returned from Woodstock and eats peanut butter and jelly sandwiches 6 nights a week. Big differences in marriage (whether they be about raising kids, time spent with family, or money matters) often lead to big arguments and, at times, divorce. So, it's vital that successful partners have the same basic goals in life and can identify with the same "value proposition" (marketing speak for what makes a product special). In terms of couples with successful personal finance lives, they often follow a few basic tenants:
1. Communication. Do you and your spouse talk often about important issues? Do you talk like adults about money, the kids, and how annoying certain family members can be at times? If you don't lay things out and speak frankly, say, about how much money you'd like to be investing each month, then you're both not communicating.
2. Money goals. Do you both have money goals? Every couple should have similar thoughts on: how much money to save, what makes up healthy monthly, household, expenditures, how much to spend on Christmas gifts, how many lessons or after school activates the kids truly need, etc. Simply put, your money goals need to have alignment.
3. Process. Do you and your wife have a plan in place for who is in charge of investments, monthly bills, home maintenance, etc.? You can't reach any personal finance goals unless you have a plan in place with dates and who is in charge of getting things done. In some ways, a marriage needs to be run like a corporation (sorry to all you romantic types!) and you can't have one employee doing all the work while the guy in Accounting sits on his butt all day.
4. Have Fun and Make Sure Your Love Evolves. It's always a good idea to invest in your love. This means going out and doing special things on occasion or treating your spouse to a gift or a dozen roses. Being cheap with your husband or wife is not a good move. If your budget allows for a yearly vacation, maybe without the kids, then go and have fun (your marriage and life will be revitalized when you return).
5. Independence. I know some couples who are tied to the hip both in terms of finances and friends/social activities/etc. and this is not good. I believe that married couples need to preserve some individuality, including attending events with close friends or just going out for a drink with a college buddy on occasion (it's ok to have some differences in your social lives). On the money side, it's also important for both partners to have their own spending money (just as long as one partner is not abusing the privilege by making purchases from the web each night, for example.).
Update: Mike from CleverDude.com hosted this week's Carnival of Personal Finance and this blog entry was included. Click here to read the carnival! A carnival is a collection of submitted links presented in a format decided by the host.
Graduating from college is a big adjustment for most students as s/he has to trade-in an insulated, academic, environment for the so-called "real world." The transition from student to working adult is critical, especially in regard to getting your personal finances off on the right foot. The foundation a recent grad lays in the 2-3 years after graduation often predicts how s/he will lead the rest of their economic life. If the recent grad is interested in a flashy new car, eating out, and living in an expensive city, for example, then s/he often delays saving money, paying off student debt, finding the right career, and being financially independent overall.
Graduating from college is a big adjustment for most students as s/he has to trade-in an insulated, academic, environment for the so-called "real world." The transition from student to working adult is critical, especially in regard to getting your personal finances off on the right foot. The foundation a recent grad lays in the 2-3 years after graduation often predicts how s/he will lead the rest of their economic life. If the recent grad is interested in a flashy new car, eating out, and living in an expensive city, for example, then s/he often delays saving money, paying off student debt, finding the right career, and being financially independent overall.
Here are some practical steps the recent grad can take to ensure that their personal finance life gets off on the right track (after all, you don't want to be worrying about credit card debt by the time you're 25, right?):
1. Begin paying off your student debt as soon as possible. It's tempting to pay the minimum amount each month (especially if you have a low rate), but debt (outside a home mortgage) is a bad thing, so focus first on paying off your student loans (do this at all costs, no one wants to be paying off student debt at the same time they see their first gray hair!).
2. Continue to live with your parents and do not get an apartment. If you're lucky enough to have parents who do not force you out (just because you're over 18) or charge you to live at home, then you've hit the lottery (just think: free food, heat, water, TV, Internet, etc.). Your parents can actually be cool to hang out with (just make sure to have plenty of wine in the house)
3. Do not buy a new car. As I've said before, a new car is a colossal waste of money (whether you are 22 or 60) given that most new vehicles depreciate an average of 45 percent in the first three years! Take the bus or mass transit or look for a bare bones used car that has basic safety feature like stability control, airbags, ABS, etc.
4. Pay for things in cash and if you don't have cash then don't buy it. This tip is really about controlling how you use your credit card. It's ok to have one and use it but be sure to pay off the full balance each month (this will actually help you build a good credit score so that when you go and buy a house you'll get a better mortgage rate and don't have to ask Aunt Peggy for the down payment).
5. Max out your 401K contribution immediately, especially if your company offers a match. There's plenty of data that states that the sooner you start saving the faster your money will compound. And remember that you're saying no to free money if your employer offers a company match!
6. Create an emergency cash fund. I like to have 6 months of living expenses as an emergency fund, some folks say 3 months but having more money in the bank makes me feel all tingly and safe at night.
7. Take risks with your career / job. Now is the time to develop a business or work extra hard at work and demand more responsibility. Just think, there is really nothing at risk: most new grads do not have a family, mortgage, car payment, etc. so you can let your career or business idea be at the center of your universe.
8. Network. Keep in close contact with ex-student friends, professors, etc. The ex-Prof you had beers with may help you land a job or know of alumni that can help.
9. Think like an entrepreneur and don't settle. Your brain is actually sharper in your early twenties and things like critical thought, logic, and creativity will only worsen with age so think big and try to develop the next great consumer product, web site, information product, non-profit, etc. Oh, on the settling part, if you think you have a certain feeling that you would be good at something, but see a direct path to be a lawyer or teacher don't settle for a teaching gig, for example, just because it's safe. Anything that's worth something requires failure and not settling for mediocrity (nothing against lawyers and teachers!).
10. Delay getting married and starting a family. This one may be subjective, but I don't see any reason to rush into getting married and starting a family. If you get married you'll need your own place and kids are often a close second (and those little guys require $$$)
Are there things I've missed or that I've gotten totally wrong?
Lynnae at BeingFrugal.net posted on 12 steps to a prosperous New Year. Via BeingFrugal.net
4 Things we are duped into thinking we need. Via BluePrint For Financial Prosperity.
Arguments for paying off your mortgage early. Via The Greenest Dollar
Paul from CrackerJack Greenback has a series on how to deal with being laid off. Via CrackerJackGreenBack
36 ways to earn extra money. Via FiveCentNickel
I came across some old philosophy books in my study this morning and it got me thinking about the value of an undergraduate degree in philosophy. And I can already hear the jokes, so please keep them to yourself! ; - ) At first glance, a Bachelor of Arts degree in philosophy provides no real practical application in the real world. After all, you will not receive any specific training that can lead to a job, are required to read esoteric texts, and will never arrive at a "right answer" during a final exam or short quiz. So, why on earth are US colleges and universities struggling to keep up with the demand from students wanting to both take courses and major in philosophy?
As an ex-Philosophy major, I can tell you that my degree is invaluable and I would certainly study the same subject if I had to start all over again (I would maybe throw in a degree in Economics as well). If we cut to the chase, a degree in philosophy provides the following benefits
1. How to read critically (i.e., a book, magazine article, newspaper, P&L statement, web traffic report, etc.).
2. How to write well. (this could be an email, letter, report, blog, or living will).
3. How to debate and speak in front of large audiences.
4. How to create impromptu arguments and analysis (this may be the number one business skill of all time and I'd hire someone with this skill set versus a Harvard graduate any day).
5. How to figure out what is right and wrong (ethics) and identify with different sorts of people and cultures (this is critical in the modern workforce, think how different your job is from what you see on Mad Men each week).
6. How to apply logic to any problem.
7. How to think strategically or see the "big picture."
8. How to think about a problem by deconstructing the big picture and looking at the details.
I could go on and on, but I think you get the picture. A degree in philosophy is not a degree in electrical engineering; that is to say, the degree will not train you specifically to go out into the world and be an electrical engineer but it will equip you to do really well in the workforce by adapting to any work situation.
Philosophy also provides excellent training for a professional degree. Considering the benefits I stated above, philosophy majors score in the very top percentiles on the GRE, LSAT, and GMAT exams. "For example, in a recent GRE study, philosophy majors were ranked among the very top majors in their mean scores on the verbal, analytic, and quantitative components of the exam; in a recent LSAT study, philosophy majors had a higher mean score than even pre-law majors; and for recent GMAT tests, the mean score for philosophy majors exceeded that of any type of business major. Virtually no other major does this well on such a wide cross-section of standardized exams.(quote from the University of New Hampshire Philosophy Department web site http://www.unh.edu/philosophy/index.cfm?id=39F7EBE2-C029-7E5B-F1371DFC37778362)."
Did you study philosophy, let everyone know about your experience by commenting above.
I'm often asked what my favorite meals or recipes are and folks are shocked or confused when I say something like sautéed escarole or baked broccoli or that I treasure a ripe organic pear over a well marbled sirloin steak. However, it's true, I like my food simple and fresh (preferring fish over red meat, raw nuts over processed snacks and chips, and sautéed green vegetables over friend potatoes).
My favorite vegetable dish is sautéed escarole. Escarole is a type of endive with very broad leaves, but without the bitter taste. Escarole is incredibly hearty and stores well in your refrigerator crisper drawer. Escarole is high in fiber, vitamin K and A, and folic acid. It's also very difficult to overcook escarole; here's a time tested recipe, but first the ingredients:
- One head of escarole
- Salt and pepper to taste
- 3-4 tablespoons of olive oil
- 4-5 cloves of garlic
- 1 tablespoon of dry red pepper flakes (optional)
The best method for preparing escarole includes a light boil and then sauté. Begin by cutting the bottom ½ inch of the escarole (removing the stem) so all of the individual leaves are exposed. Next wash the leaves in a large bowl with water. NOTE: You'll need to submerge and drain the leaves no less than 3X in order to remove all of the excess dirt and grit. After you've thoroughly cleaned your escarole you can move the greens to a 6 quart sauté pan with about a ¼ of inch of water. Place the lid on the pan and gently steam the leaves for about 5-10 minutes (the leaves will dramatically reduce in volume). After the leaves have wilted, remove the excess liquid and add salt and pepper to taste as well as 3-4 tablespoons of olive oil. Toss the ingredients well and add your thinly sliced garlic (you can the red pepper flakes at this point as well). Finally, sauté the mixture for 8-10 minutes and serve in a medium sized bowl. I like roast chicken and a nice glass of Aglianico with sautéed escarole.
According to an Indiana Business Review article, individuals in the US between the ages of 25-54 spend an average of $2833.00 each year on eating out (this is according to 2004 data). While the number is not surprising, it did get me thinking about personal finance and daily eating habits.
Given the current economy, many personal finance blogs and magazines are offering advice on money saving products, deals, coupons, investment strategies, etc., but I've yet to see a piece on the importance of NOT eating out often. Don't get me wrong, I'd love to eat at a fine restaurant each and every night (provided I could find some healthy dishes on occasion!), but I don't do it because:
1. Eating out is a colossal waste of money (most food and beverage items have a huge markup).
2. Eating out is not healthy (you don't have direct control over ingredients and the amount of fat, salt, etc. used in the cooking process).
3. Eating out, often, leads to a reduction in the quality of ingredients used/consumed (unless you're eating at a four star Michelin restaurant each night).
4. Eating out is a waste of time (think about the process: figuring out where to go, figuring out how to get there, waiting for your food, leaving a tip/paying, getting back to your home/apartment, etc.).
5. Eating out is lazy (going to a restaurant other than for a special event breeds the type of behavior that is all about immediate satisfaction).
6. Eating out can rob you of personal time with family and/or spouse (think about the teamwork needed to prepare a nice meal - it's the kind of behavior that makes families and couples bond).
7. Eating out does not allow me to build leftovers into my weekly food planning process (read: do not buy lunch at work!).
Many people make statements like, "I don't know how to cook" or that "cooking is hard" in response to eating out often, but cooking quality meals is NOT hard (see my getting started to cooking at home guide here) and after you've been doing it for a while you can get really efficient at putting together healthy and great tasting meals (including food for lunch at work the next day). Also related, see my essential kitchen tools guide here as well as a guide on buying fruit, vegetables, and fish here
Over the last couple of months I've been posting simple and tasty recipes and I thought now would be a good time to summarize the entries given the financial crunch. So, try and avoid making reservations and opt to make a few of the dishes below (they're really not hard to prepare and you'll be happy you didn't go out after your belly is full!):
1. Perfect Omelet
2. Oven Baked BBQ Ribs with Dry Rub
3. Black Bean and White Corn Salad
4. Pasta with garlic, olive oil, and parsley
5. Perfect Grilled Chicken Sandwich
6. Tomato Salad
7. Roasted Pork Tenderloin
8. Fava Bean Gazpacho
9. Eggplant Parmigiana
10. Scallops with Pan Simmered Tomatoes
11. Roasted Peppers
12. Chicken Thighs and Mint
13. Classic Salad Dressing
14. Baked Flounder with Fennel Salad
15. Couscous with Feta and Tomatoes
16. Lamb and Beef Kufta Kebab
17. Braised Short Ribs in Red Wine
18. Lentil Soup
19, Onion and Potato Fritatta
20. Oven Roasted Vegetables
Finally, if you're looking for food items you can consume often, I have a quick series on "foods I live on" http://www.scordo.com/blog/2008/10/foods-i-live-on-part-3-de-cecc.html Looking for a nice bottle of wine, here's my guide on buying wine!
I like using our oven as often as possible during the winter months because not only do roasted vegetables, meats, etc. taste great but your oven adds a little bit of heat to your kitchen.One oven recipe I turn to often is roasted winter vegetables. Here is what you'll need:
- 1 large red onion
- 2 medium sized sweet potatoes
- 1 medium sized potato
- Half a head of garlic
- 1 large carrot
- 1 ten ounce package of baby bella mushrooms
- Salt and pepper
- Olive oil
- Fresh parsley
Recently, our extended family has been going through a difficult period caring for my 89 year old grandfather (Nonno Vincenzo). Nonno Vincenzo has been housebound for the last year suffering from dementia, et. al. I was named after Nonno Vincenzo and we share many of the same traits (including being calm most of the time with the occasional loss of temper).
Nonno's physical decline got me thinking about how personal identity is shaped by family and whether it's a good thing? For example, in most large cities in the Western world, people cherish the ability to create their own identity and the personal freedom that comes along with such a choice. In Ancient Greece, however, a newborn male became a citizen only after being acknowledge as a member of a particular family. The newborn was also, in most cases, named after the paternal grandfather. So, in many ways, identity in Ancient Greek culture was shaped by the family the individual was born into.
Family, as I've said in other posts, is critical if you're interested in money matters and living a frugal life. The way I see it, an extended family can help with:
1. Raising and caring for children (this has been the model for thousands of years and it's only in Western countries where we've moved away from this idea).
2. Managing a home (including home repairs and maintenance). This is especially true if you live in an older home and have family members who are handy.
3. Maintaining a social life. OK, hanging out with your 90 year old grandfather on a Friday night may not be that much fun, but the occasional dinner and party with family is really nice. I try to have dinner my parents once a week and I like having family over for a coffee and light snacks every month or so.
4. General advice. Think of Uncle Frank and Aunt Maria as pro bono attorneys and psychotherapists who can offer advice on tough life decisions. Making a decision in a vacuum is not good and I like to shop ideas and possible solutions around with family before acting on an item, so I think this tip is particularly important.
Let me know what you think in terms of family, identity, and how you've managed to stay close to your extended family.
An investing 101 entry that describes index funds, ETF's, etc. Via Get Rich Slowly
How do children affect financial goals and priorities? Most folks don't think of this issue until after they have children (then it's too late). Via Get Rich Slowly
A pros and cons of credit card use debate; to me, the answer is obvious, but don't take my word for it. Via Frugal Dad
Everyone should learn how to love books and reading, but it can be an expensive hobby if you buy books new. Learn how to not buy books. Via DumbLittleMan
Green Living 101 - great tips! Via The Greenest Dollar.
The debate about what you want given what you have (or are you a capitalist when you are rich and a socialist when you are poor). Via the Toa of Making Money.
Finally, while totally off-topic, TwitterVision is intoxicating - warning this could get you dizzy. Via a person on Twitter I can't remember.
One of the most important life skills you can teach your child is how to save or, more specifically, why it's important to save. My parents would often bring me to the bank as a small child and I observed my mother writing and cashing checks, depositing money, etc. By the time I was 7 or 8 my parents told me about a little blue passbook they had opened for me when I was born. The passbook (or savings account) contained some regular deposits and a healthy amount of money. I had no sense of the value of the account or what the cash really represented, but I do remember my parents telling me:
- This is where you will (not can) save any money you should come across (birthday, holiday, etc.).
- Once you put money into the little blue book you really do not want to take it out (unless you need something).
- The bank will give you some money in return for keeping a little blue book full of money.
Along with making our own wine, my family also cans fresh plum tomatoes every August. The canned tomatoes are used mostly for making tomatoe sauce. Canning your tomatoes produces a better tasting tomato sauce and, of course, saves you money over the long term (especially after you've owned the canning equipment for several years). Tomato canning should be done outdoors and with a large group (you'll want to set up stations to work efficiently). Pasta with tomato sauce is probably one of the most popular dishes made at home in the US, so you'll definitely go through the jars you produce. Let's get into the details:
If you ever feel like there is nothing in the house to cook for dinner, but you have a few eggs in the refrigerator, then a frittata might be what you're looking for. It is a simple meal that gives you the protein that you need to help you feel satisfied at dinner. Here is a recipe for an easy onion and potato frittata:Heat up a Teflon pan with about a tablespoon of olive oil. Because you are going to have to put it in the oven to finish cooking you will need an oven proof pan. Thinly slice an onion and peeled potato and saute until both the onion and potato are cooked. This usually takes about 10-15 minutes depending on the thickness of the onion and potato. Season with salt and pepper.
While the potato and onions are cooking, beat two eggs and two egg whites together with salt and pepper. When the onions and potatoes are cooked, pour the eggs on top of them. Cook for about five minutes. To finish cooking the top of the frittata, put it under the broiler but keep on checking it. It is done when the frittata is browned nicely on top. You can sprinkle some Parmigiano-Reggiano on the top if you would like.
You can cut the frittata into slices and serve it with a fresh spinach salad. Enjoy (hope you enjoy the recipe, Jen)!
Shhh, insider secret: Consumer product companies want you to be slaves to trends. Companies that produce automobiles, clothes, furniture, electronics, etc. are all dependent on repeat business (in marketing terms: retention rates) and the only way they can get customers to buy a product again is to argue that their older product is outdated and now has a newer version available.
You see the above happening every year in late summer / early fall as car companies roll out "newly re-designed" and "all new" sedans and trucks. The auto manufactures argue that you have to have the latest model because it boasts new safety features, a bigger engine, and technological advancement (think of Acura's slogan: "Advance").
The truth is, however, that in most consumer product categories you are better off not buying into the hype of chasing the latest redesign or product enhancement. What you can do is buy products that have a classic design and good reliability/quality. So, for example:
There's something about Warren Buffett that makes me feel warm and tingly all over and it's not his net worth of $62 billion! Rather it's a combination of his personality, habits, and life philosophy. I first saw Warren Buffett on Charlie Rose (he and Charlie are very good friends) and become captivated with him from the get go (I remember thinking, how could this affable and happy Midwestern man be the world's richest person?).Recently, I've started reading a new biography on Buffet by Alice Schroeder entitled, The Snowball: Warren Buffett and the Business of Life. Schroeder was an insurance analyst that covered Berkshire Hathaway (Buffett's company that basically buys other companies) and she got to know Buffett well over a number of years, so they collaborated on a rather bulky biography. Reading through the first couple of chapters got me thinking: if Buffett leads a frugal and thrifty life then why in the world isn't every other person in this country not living like him? Buffett's habits and life philosophy are classic "Millionaire (or in his case, Billionaire) Next Door"; here's a little about how he lives his life:
With temperatures beginning to drop and cold winds battering against our 83 year old house, we've been giving serious consideration to replacing our original, single pane, wood windows. Our windows also include storm windows that, at one point, guarded against strong gusts of wind (but they are pretty much non-functional at this point).
We do like the aesthetics of our original single pane, wood, windows and most of the 35+ windows in our home are functional. But there is a long list of cons, including:
- Windows are NOT efficient (they let tons of air through the bottom and upper sashes and also along the side of the unit) and are single pane (versus two and three pane for modern windows)
- Windows do not have gas filled panes which help with efficiency.
- Windows are difficult to clean.
I love soup. And pretty much every soup variety suits me just fine. I like chicken, pea, vegetable, barley, onion, etc. I do have a couple of pet peeves about soup, however:
1. Soup must be homemade (I'm actually vehemently opposed to canned soup).
2. Homemade soup must start with water and not chicken, beef, or vegetable stock.
3. If you're going to have soup for dinner you need to include a nice, as we say in Italian, "secondi" (a second dish or entree that can help fill you up and provide a complete meal).
Given the above prerequisites, the undisputed "king of soups" for me is Lentil. Lentils are tasty, packed full of proteins, and fairly straightforward to prepare.
Here's a simple Lentil soup recipe:
- Finely dice one medium onion, 2-3 medium sized celery stalks, and 1-2 medium sized carrots, and a single clove of garlic
- Sauté the above mixture (add salt and pepper to taste) for 8-10 minutes (depending on strength of flame) with 2 teaspoons of olive oil.
- Next, add one cup of dry lentils and about two cups of pureed canned tomatoes (not tomato sauce, but rather canned tomatoes). You could substitute the canned tomatoes with tomato paste, but the flavor component will be completely different.
- Thereafter, add 4 cups of fresh water (filtered or purified water is best; remember water is the main ingredient in soups so it should be of good quality)
- Finally, cook ingredients for an hour and serve!
That's it, there's no magic to preparing soup (other soup recipes vary, but the basic steps are the same for many soups). Oh, I also like to add freshly grated Parmeggiono Reggiano just before serving!.
There have been some great blog posts on the web this past week focused on happiness and savings, frugal living, how to talk about sensitive money/job issues, etc. and here are the best of the lot:
- Trent @TheSimpleDollar talks about Happiness and Saving for the Future
- JD @ Get Rich Slowly posted a nice article on great wine buys and even had a guest video blog by Gary Vaynerchuk from the WineLibrary.com . JD also had a great entry on the ROI of gardening (part of a series)
- The MSN Smart Money blog has several blog entries on "8 Questions Not To Ask In This Economy" , "Netflix: Frugal or Not" and "50 Financial Skills Every Person Needs to Have"
- Frugal Dad has an article on "Budget Avoidance Syndrome" and the "Black Friday Sales Emotional Trap"
One of the first things I do in the morning (even before I have a cup of coffee and say good morning to my wife!) is turn on NPR (National Public Radio). Listening to the news wakes me up and gets my brain going in the morning and I'm grateful that NPR is available as a free (well, somewhat free; more on this later) resource.
I started listening to NPR as a freshman in college and have been hooked ever since. I not only listen to my local NPR affiliate (WNYC), but I scour the web for the best NPR shows and programming. I listen because, like a good puzzle or game, it really forces your brain to concentrate and follow arguments and logic via language (as opposed to TV which, of course, is partly visual and not as deep given the 30 and 60 second TV spot formula)
NPR provides tremendous value; it is technically free, but the organization and the affiliate stations rely on both fundraising and government funds (the latter being the smaller portion/source of operating cash, so you should contribute if you can). Here is a bit more on how NPR works; I really encourage folks to donate to their local NPR affiliate station.
NPR programming provides:
I received a recent email from Dee asking how to prepare real meals (i.e., not your standard sandwiches, tuna, and fast food items) in a practical way and I've been giving the question some thought.
Cooking is not rocket science, but it does require that you 1., care about the quality of the food you purchase and 2., set aside the the time needed to prepare a meal. I learned to cook by watching my mother; her meals, for the most part, were simple and prepared from scratch. Some of my favorite meals included pasta with olive oil, garlic, and freshly grated Parmigiano-Reggiano, frittata with onions and potatoes, and baked flounder with bread crumbs and hot pepper flakes. My mother made more elaborate meals for holidays or birthdays but her everyday style was more simple and fresh then fancy and exotic.
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Scordo.com is a weblog about living a practical life, including tips and thoughts on "how-to" and saving money. Scordo.com is run by Vince, a regular guy who, raised by immigrant (Italian) parents in the US, saw first hand how to live a frugal life, save money, and not live like everyone else. You can read more about me here.
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