Scordo.com

Guide to Olive Oil

2009-01-04T21:18:31Z

Italians consume olive oil like it's water. My grandparents used olive oil for cooking, shining shoes, preserving food, lubricating machinery (including various shotguns), curing various ailments (including stomach ulcers), etc. I wouldn't recommend you use olive oil to lubricate your shotgun given other alternatives on the market, but if you produced your own olive oil (as my grandparents once did) you'd probably find alternative uses for the golden liquid as well!

If you're going to stick to olive oil for preparing and eating food, then you have plenty of good choices on the US market. First, let's start with some basics about olive oil (including extra virgin olive oil):

1. Olive oil DOES NOT get better with age. In fact, olive is meant to be consumed as quickly as possible (fresh=good).

2. Olive oil DOES NOT like light or warm temperatures. In turn, it should be stored in a cool, dry, and dark environment.

3. Olive oil is a type of fat (like butter and lard) and has a good amount of calories.

4. Unlike butter, for example, olive oil has wonderful health benefits due to its high content of monounsaturated fatty acids as well as high content of antioxidative substances.

5. Olive oil helps lower bad cholesterol and helps with good cholesterol.

6. Extra virgin olive oil is produced without using heat or chemicals (extra virgin olive oil also must have an acidity level of less than one percent).

7. Olive oil is extracted from crushed olives.

Both my grandparents and parents have told me wonderful stories about harvesting olives on the family farm in southern Italy and the process involved to produce both first press olive oil (that is, the first batch of olive oil produced via an old fashioned press. Nowadays, most olive oil is produced via continuous centrifugal presses) and extra virgin olive oil. I've tasted much of the olive oil produced by my family in Italy and to be perfectly honest the olive oil is extremely intense and almost too flavorful and viscous for everyday use (at least for my American palette).

In terms of everyday olive oil that can be purchased in most supermarkets in the US, I have a couple of favorites:

- Filippio Berio Olive Oil for everyday use- I find this olive great for both cooking (frying, sautéing, etc.) and using raw in salads and for finishing dishes (like bruschetta, any type of sauce for meat, etc.). There is a definite olive taste to Berio and it's not overly oily like many mediocre olive oils on the market today.

- Colovita Exta Virgin Olive Oil for items that don't require cooking - I use Colovita Extra Virgin Olive Oil (EVOO as Rachel Ray like to say) for pasta sauces, tomato salads, and for dunging soft crusty bread from my favorite bakery (Sullivan Street!). Unlike celebrity chefs such as Mario Batali, I don't believe in using extra virgin olive oil exclusively in my kitchen (that is to say, for cooking, finishing, raw, etc.).

- Bertolli Olive Oil - Bertolli is very similar to Berio in terms of quality, taste, and use. In fact, I have a hard time discerning between the two, however I do have a preference for Berio if I'm faced with a choice at my local supermarket.

In terms of high end olive oils from small producers, it's really a hit or miss type of thing. I can't recommend a specific brand because of location and distribution. For example, here on the East coast I often buy my extra virgin olive oil from Bartolomeo's Italian Food Emporium (click here for a review of the shop from Jason Perlow at Off the Broiler) that imports the oil from the owner's olive orchards in Puglia (the olive oil is fresh and has a nice balance of flavor and viscosity without being too overpowering or thick). My recommendation on finding specialty olive oil is to try different producers and stick with a brand once you find something you like (also be sure to buy in small quantities unless you plan on using the oil every day). Also, price doesn't equal quality. In fact, I would opt for a fresh, recently produced bottle over an expensive extra virgin, first pressed, olive oil that has been sitting on the shelf for months.

Finally, as I've said about wine, you should only buy and use what you like (don't listen to critics unless you've tried the product yourself).

What Money Can Buy

2009-01-03T01:28:05Z

They say that money can't buy happiness and I certainly agree. However, did you ever stop to think about what money can, indeed, buy?

Here is a list of ten things that money can help you buy:

1. Money can buy peace of mind. Do you have trouble sleeping at night because you are worried about bills or your current job status? Well having enough money in the bank to not worry about your job for a year or two will let you sleep like a baby.

2. Money can buy you comfort. Do you live in a small cramped apartment with two kids and neighbors above you constantly screaming? Money can allow you to put a 20 percent down payment on a comfortable, quiet, home in a safe neighborhood.

3. Money can buy you a reliable and safe car. Do you drive a late model vehicle that is constantly breaking down or in need of monthly maintenance? Is your vehicle equipped with anti-lock brakes, stability control, and at the least 4-6 airbags? Money can allow you to buy a quality used (or new) vehicle from a reliable manufacturer.

4. Money can buy you a future. Would you like to not work and live well at some future point? If the answer is yes, then money will let you prepare for a future without a boss and making income without working. In short, you can use money to buy stock, mutual funds, index funds, CDs, etc.

5. Money can buy you confidence. Do you swallow your pride and work for an organization or boss that you do not respect or just plain hate? Well, if you have money in a bank account money can give you the courage to walk away from a bad situation and start fresh.

6. Money can buy you the ability to give. Do you wish you could help a not so well off sister or brother or contribute to your local Red Cross? Well, money can help you be more charitable and giving.

7. Money can buy you time. Do you often find yourself wishing you could spend more time exercising, reading, learning to cook, traveling, spending time with family, et. al. ? Retiring early by way of making the right financial moves in life can give you the time to do the above.

8. Money can buy you nice food. Do you clip coupons to the point that you will not buy something you are craving? Do you buy sub par ingredients and generic store brands even when you know quality is poor? Money can help enjoy great meals (including wine).

9. Money can buy you experiences. Do you not travel because you're worried about airline fares and hotel prices? Do you decide often against a trip into the city to enjoy the opera and a glass of champagne? Money can help you expand your mind and bring you places beyond the town you were born in.

10. Money can buy you opportunity. Do you wish you could buy a home in today's economic environment because interest rates are low and home prices have been dramatically reduced? Do you wish you could buy GE stock because it's under $20 and inevitably will rebound to record highs in the near future? Money can help you leverage opportunities that would normally not be able available in ordinary times

How Much Money Is Enough For Your Emergency Cash Fund

2009-01-02T14:36:40Z

Now more than ever the idea of an emergency cash fund is critical. Many personal finance gurus recommend that individuals and/or families put aside at least 3 months of living expenses in a conservative vehicle (such as a CD, money market fund, or traditional savings account). Living expenses include: mortgage, taxes, utilities, food, gas, and car payments.

An emergency cash fund is a must in any economic environment (including good times) as you never know when you may lose your job, need to make an emergency home repair, etc. I also believe that establishing an emergency cash fund should be done early (that is, within the first six months of your first job) and ahead of any other money matter (even before funding your 401K). Having cash at the ready provides a sense of security and freedom and also builds discipline in terms of saving for the cash fund.

I like to have well over 3 months of emergency cash on hand and I would recommend an amount closer to 6-9 months of living expenses. Look for an online money market fund via ING or Vanguard and connect it with your checking account (this way transferring money to your emergency fund is easy and convenient).

Scordo's Link Round Up for December 31, 2008

2008-12-31T16:22:20Z

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.

Top four money fights for couples. via FreeMoneyFinance.

Best personal finance books for your bookshelves. via Blue Print for Financial Prosperity.

6 simple household hacks. via MSN Money Blog guest blogger WiseBread.

Tips for saving money when eating out at a restaurant. via WiseBread.

Have a Happy New Year from Scordo.com (go 2009!)!

Fixing It Versus Buying New: Finding Experts to Make Your Stuff Last Longer

2008-12-30T17:30:02Z

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 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 )

Calling All Parents: Establish A Financial Foundation For Your Children

2008-12-29T18:22:24Z

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 Will Return On Monday

2008-12-26T21:25:57Z

Scordo.com is away! Normal postings will resume on Monday December 29th, 2008! Happy Holidays.

Vince

Scordo's Link Round Up for December 24, 2008

2008-12-24T15:53:32Z

- 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!

Last Minute Gift Ideas: Give What You're Good At

2008-12-23T13:35:18Z

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)

Feast of the Seven Fishes and Material Satisfaction

2008-12-22T18:12:33Z

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!).

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!

Recipe: Hardy Winter Salad with Fennel, Apple, and Arugula

2008-12-19T20:02:51Z

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.

Marriage and Money: 5 Tips

2008-12-18T13:11:34Z

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.).

Ten Big Tips for Recent College Graduates

2008-12-17T18:33:56Z

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.

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?

Scordo's Link Round Up for December 17, 2008

2008-12-17T13:18:18Z

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

Reasons why young people fail in college. Via Studenomics.

Why Major In Philosophy?

2008-12-16T19:58:11Z

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.